CMP 1 0 Corporate Mentoring Program CMP System

CMP 1. 0 Corporate Mentoring Program (CMP) System Overview (Short Format)

CMP Education and Training Series 2

CMP Integrated Education and Training System An Integrated Learn by Doing Approach to Supply Chain Strategy Development and Implementation Provides OVERVIEW of Supply Chain Strategy approach and Suppliers’ requirements for CMP 2. 0 to CMP 5. 0 engagement CMP 1. 0 System Overview 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 CMP 5. 0 Development, Expansion, and Continuous improvement Focused on DEPLOYMENT of solutions based on SCORcard data, metric root cause analysis and determining best practice to address closure of performance gaps CMP 2. 0 Performance Benchmarking Readiness CMP System Education and Training Series CMP 4. 0 CMP 3. 0 Analysis and Deployment Performance Benchmarking 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)

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. 4 X

Corporate Member Bulletin Board 5

Corporate Member Strategic Sourcing Bulletin Board* Listings of 1 -3 Year Projected Sourcing Opportunity for CMP Suppliers Automotive/Commercial Truck/Aerospace Suppliers must have completed CMP 3. 0 opportunities • Listings of sourcing Special Page to be located on secured DMSCA Web Page 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 * 10/1/11 6

Supplier Supply Chain Maturation Self-Assessment 7

Performance Maturity Assessments Performance Maturation ----Self Assessment CMP 2. 0/CMP 5. 0 Performance Maturity ------DMSCA Engineering Assessment CMP 5. 0 Self Assessment Areas: 1. Commitment to Continuous Improvement 2. Performance and Results 3. Management Systems and Planning 4. Support for New Product Development 5. Process Quality Management 6. Mfg. Capability & Improvement Process 7. Subtler Relationship and Control 8. Financial and Material Control 9. Quality Systems DMSCA Engineering Assessment Areas: 1. Commitment to Continuous Improvement 2. Performance and Results 3. Management Systems and Planning 4. Support for New Product Development 5. Process Quality Management 6. Mfg. Capability & Improvement Process 7. Subtler Relationship and Control 8. Financial and Material Control 9. Quality Systems (Conducted at conclusion of CMP 2. 0) (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. 8

Supplier Supply Chain Performance Certification and Recognition 9

Supplier Performance Maturity Certification Requirements SCORmark™ Performance Benchmarking SCORcard™ ------ Supply Chain Performance Maturation ----DMSCA Engineering CMP System Progression CMP 1. 0 –CMP 5. 0 ----- CMP 3. 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 Improvement 2. Performance and Results 3. Management Systems and Planning 4. Support for New Product Development 5. Process Quality Management 6. Mfg. Capability & Improvement Process 7. Subtler Relationship and Control 8. Financial and Material Control 9. Quality Systems Summary scoring is conducted in above areas factor into numeric calculation for determination 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. 10

CMP 5. 0 Sustainability and Green Metrics 11

Performance Benchmarking Scorecards Objective: Develop for internal performance (SCOR Best Practice) CMP 5. 0 management and to SCORmark™ Executive SCORcard™ CMP Lean Scorecard provide to (SCOR Best Practice) Customer performance CMP Sustainability Green Metric Green. SCORcard (SCOR Best Practice) scorecards (and dashboards ) for strategic purposes and compliance with applicable Business Platforms CMP 5. 0 CMP 3. 0 CMP 5. 0 differentiating Optional CMP Supplier Strategic Scorecard (Supplier Integrated Scorecard) Performance Benchmarking Scorecards 12

CMP 5. 0 Sustainability Green. SCOR™ Scorecard (SCOR Best Practice) Activities Plan Source Make Deliver Return Enable Objective : Example of Metric AREAS Compliance cost Emissions cost per unit % of orders received with correct packaging % of suppliers with current EMS system Energy cost as a % of production cost Waste produced as % of products produced Fuel cost as % of delivery cost % of carriers meeting environmental criteria Products returned as % of products delivered Return products disposed of versus remanufactured Facility energy cost as % of total cost Down time due to non-compliance issues Major SCOR Metrics Carbon Emission Units Tons CO₂ Air Pollutant Emissions Tons or kg Liquid Waste Generated Tons or kg Solid Waste Generated Tons or kg Basis 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 Includes emission of major air pollutants (Cox, NOx, Sox, Volatile Organics [VOC] and Particulate) 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 The total solid waste generated by the process X 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. 13

CMP 5. 0 Supplier Lean Scorecard (SCOR Best Practice) 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 Green. SCOR ™ scorecards are required, the Supplier Lean and Strategic Scorecards are recommended. 14

CMP 2. 0 through CMP 5. 0 Performance Dashboards 15

Performance Dashboards are deployed throughout the CMP. Dashboard Levels Managed By Corporate Sponsors can view a CMP Supplier’s Dashboard throughout the process. Other Corporate Members can view selected Dashboards. Viewed By DMSCA Supplier Sponsoring Corporate Members 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 - In CMP 5. 0 , Suppliers assume management control of their own Dashboard 16

Performance Benchmarking Scorecards 17

For more information, contact: David Burton Diverse Manufacturing Supply Chain Alliance 1700 Rockville MD, Suite 400 Rockville, MD 20852 301. 998. 6185 (o) 888. 643. 9993 (o) 803. 318. 0250 (m) dburton@dmsca. us www. dmsca. us 18