CMAA 2010 Owners Forum Joe P. Gionfriddo

May 3, 2010

Corporate Engineering Global Construction Manager

The Procter & Gamble Company

Agenda:

• Business • Success Drivers • Practices • Leveraging scale • Innovation / Breakthrough• In touch & connected • Questions

We build the business, safely!

Global Consumer Products Industry Leader

• 76.7 Billion Sales • Employees: 135,000, Engineers: 2000• Operations: >80 countries • Trusted Brands touch the lives of consumers

>180 countries. • 22 - Billion dollar brands w/ > $1Billion in sales. • Global Business Unit Structure

Success Drivers Power of People, Mind, & Agility

• Purpose, Values, & Principles (PVP)

• Promote & develop internally.

• Horizontal Work Process.

• Internal / External Skill Development.

• Rotational Assignments.

• Technical / Managerial Career Paths.

Capital Management More with less.

Capital Spending (> $3.0 Billion)

11%

40%

11%

38%

Asia - Pacific

North America

Latin America

Europe - Middle East -Africa

> $3.0 Billion Capital

40 % Construction

Highest Growth in P&G History

Safety Nothing we do is worth getting hurt for!

• Global Total Incident Rate: .38 TIR • P&G / Contractor Safety Networks. • Principle based behavioral focused. • Safety Blue print foundation. (CURT

Construction User Round table)• Raising the expectation bar globally. • Going Beyond Zero.

Best Practices P&G Construction: Touching >600 practitioners/yr.

• Foundation – Built from CII best practices. – Workshops– Networks – Community of Practice– Mentoring / Coaching– Instructor Lead Face

to Face – Web based

• Challenges: – Knowing your people– Virtual interface. – Travel budget

reductions

Leveraging Scale

• Engineering – Global • Equipment – Global • Labor – Local / Regional • Raising the global bar in expectations

– Safety– Quality– Schedule – Cost

Innovation Journey

• Opportunities:

– Focus on optimizing the whole.

– Getting back to basics. – Integration of new

emerging technologies. – Attraction of the future

generations.

• Challenges:

– Rapidly moving a company our size on a dime.

– Mging. continuous work flow.

– Less Mobile workforce.

Constructability

Modularization

E-Technologies

Loss EliminationAnalysis

Peer Reviews

Lean Project Delivery (LPD)

Pri

ncip

les

Focu

s A

reas

Modularization (PPMSOF) = Preassembly – Prefabrication – Module

– Skid – Off site Fabrication

1

Increased project participants interactions

Projects are networks of commitments

Optimize the project, not the pieces

Tightly couple learning with the continuous improvement cycle

P&G and Supplier Collaboration

2

3

45

Our Journey to Competitive Advantage!

(End 2 End)

VSUConstruction Driven Engineering Concepts

Where to play?

Deliver Specific Projects w/LPD

Horizontal Transformation

Expand Knowledge Via Regional COPs

Award Contracts toInnovative Proposal Options applying LEAN Tools & Concepts

Project Loss Analysis Work Process Simplification

TARGETED LEAN STRATEGY APPROACH to Delivery System Improvement Productivity Savings of Capital Project Cost

Drive Supplier Relation Collaboration top to top Discussions.

CII + CMAA Alliance “Best Practices & Best Practitioners”

• Networking• Trusted Communication• CII Leading Industry Research • Leadership & Professional growth via

Certified Construction Mgrs.(CCM) certification technical competence.

• Body of knowledge combination breadth. • Access to best practices, information forums,

events, & more…..

“In touch & connected”

Questions

CMAA Owners

Forum