CMP 1.0Corporate Mentoring Program (CMP)

System Overview(Short Format)

2

CMP Education and Training Series

CMP Integrated Education and Training SystemAn Integrated Learn by Doing Approach to Supply Chain Strategy Development and Implementation

CMP 1.0 System Overview

CMP 2.0 Performance

BenchmarkingReadiness

CMP 3.0 Performance Benchmarking

CMP 4.0Analysis and Deployment

CMP 5.0 Development, Expansion, and

Continuous improvement CMP System

Education and Training Series

Provides OVERVIEW of Supply Chain Strategy approach and Suppliers’ requirements for CMP 2.0 to CMP 5.0 engagement

Focused on Supply Chain STRATEGY development and DESIGN training including the “how to “ of collecting information and data for obtaining SCORcard and “what” do to with it once attained

Focused on MANAGEMENT of the performance data, collected after CMP 2.0 for the Suppliers who independently obtain a SCORcard (s) for applicable Business Platforms. (One SCORcard is required)

Focused on DEPLOYMENT of solutions based on SCORcard data, metric root cause analysis and determining best practice to address closure of performance gaps

Focused on process IMPROVEMENT and performance MONITORING and includes In-Plant/Facility Assessment and deployment of development , scorecards (including a Sustainability Scorecard) , and Performance Dashboards

4

X

Consolidated CMP Education and Training Series

Details shown for CMP 2.0 through CMP 5.0 will be

addressed during the appropriate training and or

associated exercises.

5

Corporate Member Bulletin Board

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Corporate Member Strategic Sourcing Bulletin Board*

Automotive/Commercial Truck/Aerospace• Listings of sourcing opportunities

Food and Beverage• Listings of sourcing opportunities

Pharmaceutical and Medical Devices • Listings of sourcing opportunities

Industrial and Office Supplies• Listings of sourcing opportunities

Consumer Goods and Personal Care• Listings of sourcing opportunities

Telecommunications/Computer/ Consumer Electronics• Listings of sourcing opportunities

Utilities and Energy• Listings of sourcing opportunities

Listings of 1-3 Year Projected Sourcing Opportunity for CMP SuppliersSuppliers must have completed CMP 3.0Special Page to be located on secured DMSCA Web Page

* 10/1/11

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Supplier Supply Chain Maturation Self-Assessment

8

Performance Maturity Assessments

Performance Maturation

---------Self Assessment

CMP 2.0/CMP 5.0

Performance Maturity

-------DMSCA Engineering

Assessment

CMP 5.0

Self AssessmentAssessment Areas:1. Commitment to Continuous Improvement2. Performance and Results3. Management Systems and Planning4. Support for New Product Development5. Process Quality Management6. Mfg. Capability & Improvement Process7. Subtler Relationship and Control8. Financial and Material Control9. Quality Systems

(Conducted at conclusion of CMP 2.0)

DMSCA EngineeringAssessment Areas:1. Commitment to Continuous Improvement2. Performance and Results3. Management Systems and Planning4. Support for New Product Development5. Process Quality Management6. Mfg. Capability & Improvement Process7. Subtler Relationship and Control8. Financial and Material Control9. Quality Systems

(Conducted as part of CMP 5.0 In-Plant Assessment)

As part of Organizational Readiness, this Assessment is done in sub-areas under each area listed on a 1-5 scale.

The first Self-Assessment is done at the conclusion of CMP 2.0 and done again by CMP 5.0. The Assessment done by DMSCA Engineers in CMP 5.0 is part of the performance certification requirement.

9

Supplier Supply Chain Performance Certification and Recognition

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Supplier Performance Maturity Certification Requirements

SCORmark™ Performance Benchmarking SCORcard™

------------

CMP 3.0

Supply Chain Performance Maturation

---------DMSCA Engineering

CMP 5.0

CMP System ProgressionCMP 1.0 –CMP 5.0

----------

CMP 5.0

Supply Chain Performance Attributes Areas Level 1-2 Metrics:

-Reliability -Responsiveness-Agility-Cost-Assets

Supplier closure of measured performance gap and reaching milestones is integral to Supply Chain Strategy and is a factor in determination of maturation.

Assessment Areas 1-5 Rating Scale:

1. Commitment to Continuous Improvement2. Performance and Results3. Management Systems and Planning4. Support for New Product Development5. Process Quality Management6. Mfg. Capability & Improvement Process7. Subtler Relationship and Control8. Financial and Material Control9. Quality Systems

Summary scoring is conducted in above areas factor into numeric calculation fordetermination of performance maturation.

CMP System Progression:

CMP 1.0: Strategy; Design

CMP 3.0: Management

CMP 4.0: Deployment

CMP 5.0:Improvement: Monitor

Supplier progression through the CMP System is a basis of determining maturity and certification.

Certification is based on: 1. Supply Chain Council SCORcard Performance Metric Gap Closure

2. Supply Chain Performance Maturation Areas

3. CMP System Progression Requirements---------------------------------------------------

Certification is based on a scale linked to the Capability Maturity Model Integration (CMMI) model.

11

CMP 5.0 Sustainability and Green Metrics

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CMP 3.0SCOR SCORmark™

Executive SCORcard™(SCOR Best Practice) CMP 5.0

CMP Lean Scorecard(SCOR Best Practice)

CMP 5.0CMP Sustainability Green Metric GreenSCORcard

(SCOR Best Practice)

CMP 5.0Optional CMP Supplier

Strategic Scorecard(Supplier Integrated Scorecard)

Performance Benchmarking

Scorecards

Objective:

Develop for internal

performance

management and to

provide to

Customer

performance

differentiating

scorecards (and

dashboards ) for

strategic purposes

and compliance with

applicable Business

Platforms

Performance Benchmarking Scorecards

13

CMP 5.0 Sustainability GreenSCOR™ Scorecard(SCOR Best Practice)

Objective :

Aligning business strategies with resources to promote conservation and energy efficiency and optimization of supply chain operations for low carbon environment and development of a Sustainability Plan within context of overall Supply chain Excellence.

X

Activities Example of Metric AREASPlan Compliance cost

Emissions cost per unit

Source % of orders received with correct packaging % of suppliers with current EMS system

Make Energy cost as a % of production cost Waste produced as % of products produced

Deliver Fuel cost as % of delivery cost % of carriers meeting environmental criteria

Return Products returned as % of products delivered Return products disposed of versus remanufactured

Enable Facility energy cost as % of total cost Down time due to non-compliance issues

Major SCOR Metrics Units BasisCarbon Emission Tons CO₂ Unit of measure currently used for green house gas emissions and is a

measure of the climate impact from CO₂ and other global warming air emissions

Air Pollutant Emissions Tons or kg Includes emission of major air pollutants (Cox, NOx, Sox, Volatile Organics [VOC] and Particulate)

Liquid Waste Generated Tons or kg Includes liquid waste that is either disposed of or released to open water or sewer systems (these emission are generally listed on water emissions permits

Solid Waste Generated Tons or kg The total solid waste generated by the process

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CMP 5.0 Supplier Lean Scorecard(SCOR Best Practice)

Monthly Performance by Facility Site

Category Facility Site A +Other Facilities

Goal Actual % Goal Achieved

Score Goal Actual % Goal Achieved

Score

Selected SCOR Metrics 1. Perfect Order Fulfillment (POF) 98% 97% 98% 8 2. Order Fulfillment Cycle Time (OFCT) 4 Days 9 Days 44% 0 3. Cash-to-Cash Cycle Time (CCCT) 30 Days 35 Days 85% 0 Selected Lean /TOC/Six Sigma Metrics 1.Monthly cost reduction (% of operating budget) 0.5% 0.45% 82% 4 2. Percentage of products undergoing lean 25% 20% 80% 10 3. Improvement suggestions 25 23 84% 4 4. First Time Throughput (FTT) Quality 99% 92% 93% 6 5. On-Time-Delivery (OTD (shipped line items) 96% 97% 98% 8 6. Deck-to-Dock (DTD 10 days 12 days 83% 6

7. Build-to Schedule (BTS) 100% 75% 75% 2 Totals (out of a possible 100 points) 48

Scoring Goal Percentage of Goal Day to Complete 100% 10 points < 0 days- 10 points 95-98% 8 points + 1 day: 8 points 90-94% 6 points + 2 days 6 points 80-89% 4 points + 3 days 4 points 70-79% 2 points + 4 days 2 points <69% 0 points + 5 days 0 points Other scale /trend charting and graphics could be used for information reporting and sharing

The CMP 5.0 Supplier

Lean Scorecard

developed following

the In-Plant

Assessment is

customized entirely

to the Supplier’s

requirements.

While the

SCORmark™ and

GreenSCOR ™

scorecards are

required, the

Supplier Lean and

Strategic Scorecards

are recommended.

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CMP 2.0 through CMP 5.0 Performance Dashboards

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Dashboard Levels Managed By Viewed By

DMSCA Supplier Supplier SponsoringCorporate Member

CorporateMembers

Dashboard 1 - CMP Progression CMP 1.0 X - X X X

Dashboard 2 - SCORcard ™ Metrics CMP 3.0 X - X X X

Dashboard 3 - Customer Critical CMP 4.0 X - X X -

Dashboard 4 -Process Critical KPIs CMP 5.0 X - X X X

Dashboard 5 - Supplier Strategic KPIs CMP 5.0 X X X X -

Performance Dashboards are deployed throughout the CMP.

Corporate Sponsors can view a CMP Supplier’s Dashboard throughout the process. Other Corporate Members can view selected Dashboards.

In CMP 5.0 , Suppliers assume management control of their own Dashboard

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Performance Benchmarking Scorecards

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For more information, contact:

David BurtonDiverse Manufacturing Supply Chain Alliance 1700 Rockville MD, Suite 400Rockville, MD 20852301.998.6185 (o)888.643.9993 (o)803.318.0250 (m)dburton@dmsca.uswww.dmsca.us