Project Chartering & Approval Process Proj. Chap. Functional Cham. Black Belt Financial Analyst Steering Committee Oversight Committee * Who Functional Champ. Black Belts Proj. Champs. Sr. Leaders Other IKON Staff Steering Committee Proj. Chap. Functional Cham. Financial Analyst Oversight Committee* Proj. Chap. Functional Cham. Black Belt Financial Analyst Steering Committee Proj. Chap. Functional Cham. Black Belt Financial Analyst Steering Committee Proj. Chap. Functional Cham. Black Belt Financial Analyst Inputs Draft Charters Project Approval DMAIC Closure Completed What Y=f(x) Existing Projects Business Planning Project Description: Problem Statement Objective Scope Project Benefits Defect Definition Project Metric Financials Baseline & Forecast Benefits & Cost By Category Team Members Etc. – See project charter Project Description: Problem Statement Objective Scope Project Benefits Defect Definition Project Metric Financials Baseline & Forecast Benefits & Cost By Category Team Members Etc. – See project charter Phase updates Project Management Tasks Status Amendments: Scope Cancellations Benefits Measurements Review & Validation of results Operational Financial (Forecast & Actuals) Control Plan Approvals required Monitor, Review & Validation of results Operational Financial (Forecast & Actuals) Control Plan Project Champion Financial Analyst Steering Committee Project Champion Steering Committee Project Champion Financial Analyst Steering Committee Project Champion Financial Analyst Steering Committee Project Champion Approval

Project Charter Document Control Directory Structure Shared Network Drive A Sub-Directory is created for each project based on the Project Number. Individual files are stored in the Project Sub-Directory. As projects move through the approval stages & project phases, the documents are moved to the appropriate Directory. Copies of project documents are kept in restricted directories as the Steering Committee approves them D-M-A-I-C Completed In Development Approved - Define Approved - Completed 0703-O-023 0703-O-023.xls 0703-S-005 0703-S-005.xls 0703-O-001 0703-O-001.xls Data Contacts 0703-S-001 0703-S-001.xls 0703-O-002 0703-O-002.xls 0703-O-002-1.xls 0703-O-008 0703-O-008.xls 0703-O-008 0703-O-008.xls Data Contacts 0703-S-001 0703-S-001.xls 0703-O-002 0703-O-002.xls 0703-O-002-1.xls 0703-O-001 0703-O-001.xls Team Members Process Flow 0703-O-001 0703-O-001.xls Team Members Process Flow 0703-O-008-1 Month Year Cluster Sequential Project # Amendment (if applicable) Project Numbering: Directory File Key: Restricted Directory

Project Charter Approval – Document Control Shared Network Drive In Development D-M-A-I-C Completed Approved - Completed Approved - Define Proj. Champ. Store charters on shared drive when ready for Steering Committee approval Administrator Steering Committee Administrator scans & stores original in “Completed” directory and a copy of charter & signatures in restricted “Approved – Control” directory Steering Committee Steering Committee Approves completed projects by signing Charter document Administrator Black Belt Steering Committee Approves proposed projects by signing Charter document Administrator scans & stores original in “DMAIC” directory and a copy of charter & signatures in restricted “Approved – Define” directory During DMAIC process, Black Belt provides weekly updates to project status, manages through project phases. Presents completed project to Steering Committee for approval at end of Control phase

Project Charter Amendment Process Shared Network Drive In Development D-M-A-I-C Completed Approved - Completed Approved - Define NOTE: Projects with changes in scope, ownership, or ± 10% in Financial Benefits must follow these amendment procedures Administrator scans & stores original in “DMAIC” directory and a copy of charter & signatures in restricted “Approved – Define” directory. Amended document file names are stored with a “-” followed by the amendment # Proj. Champ. Works with Black Belt to document need for amendment to project. Uses “Amendment” tab in Excel Template to record need for change, scope impact. Modify charter template as required. Presents Project amendments to Steering Committee for review/approval. Administrator Steering Committee Steering Committee Approves amendment by signing Charter document

Project Charter Completed-Monitoring Process Shared Network Drive In Development D-M-A-I-C Completed Approved - Completed Approved - Define NOTE: Project Champions take control & responsibility for “Completed” projects. Project Champions monitor & manage process, record process performance & Financial Benefits each month. Projects with changes in scope, ownership, or ± 10% in Financial Benefits must follow these amendment procedures Process is reviewed during Operations reviews, Internal Audits, as appropriate Proj. Champ. Monitors ongoing process, manages Control Plan. Records “Actual” benefits on monthly basis, updates Forecast as necessary Presents Project amendments to Steering Committee for review/approval. Steering Committee Administrator scans & stores original in “Completed” directory and a copy of charter & signatures in restricted “Approved – Completed” directory. Amended document file names are stored with a “-” followed by the amendment # Administrator Steering Committee Approves amendment by signing Charter document

Project Example “Charter” Tab Page 1 – Correct 1. Enter Project “Header” Information 2. Document Team Member Information 3. Complete basic Project Charter Information including: Project Statement Project Objective Project Benefits Project Metric “Y” Defect Definition Note: A Project Charter Date Can NOT Be Entered Until The Steering Committee Has Approved The Project

Project Example “Charter” Tab Page 2 – Correct 1. Header Information automatically populates from the previous page 2. Do NOT enter information in Financial Summary section, as these fields will populate from other Worksheet Tabs 3. ALWAYS consider the potential LEVERAGABILITY of the project, to identify additional financial opportunities including: Upstream Savings Downstream Impact Replication Opportunities Cross-sales Potential Etc. 4. After documenting the leveragability potential, estimate the value in dollars Note: All Amounts Should Be Stated In Thousands Of U.S. Dollars $(000s)

Project Example “Benefits” Tab The “Benefits” Tab is used to characterize the cost savings opportunity represented by the Six Sigma Project. During the Project Selection process, the Project Champion will forecast the project’s potential. As the Black Belt conducts the project, original benefit forecasts should be validated at the end of each of the DMAIC Phases. If benefits change, revised amounts must be presented to the Steering Committee for approval.

Project Example “Benefits” Tab 1. Enter Baseline Period (preferably a Fiscal Year) 2. Enter Baseline Amounts (in this category, enter the entire amount to be realized during the Baseline Period – doing so ensures that benefits will tie back to an amount on the General Ledger) NOTE: DO NOT ENTER data into white cells – white cells automatically tally information from monthly details to the right (See item 3) 3. Enter an estimate (Forecast) of the portion of the benefit to be realized each month – add “Comments” to these cells to explain calculations Note: All amounts should be stated in thousands of U.S. dollars $(000s) Add “Comments” to cells to clarify sources of data, calculations, assumptions, etc.

Project Example “ROI” Tab The “ROI” Tab is used to analyze the benefits of the project relative to the incremental costs of implementing the solution. The “ROI” Tab should be updated by the Black Belt and Project Champion during the Improve Phase.

Project Example “ROI” Tab 1. Header Information will automatically populate from page one of the Charter Tab 2. “Benefits” information will automatically populate form the Benefits Tab NOTE: DO NOT ENTER data into white cells – white cells automatically tally information from monthly details to the right (See item 3) 3. Enter estimates (Forecast) of project costs for each month. Add “Comments” to cells to help explain calculations. ONLY record “incremental” costs of the project. Do NOT include the costs of Black Belts, salaried employees, T&E expense associated with conducting the project, etc. Note: All amounts should be stated in thousands of U.S. dollars $(000s)

Project Example “Amendment” Tab During the course of a Six Sigma DMAIC project, some of the initial assumptions might require revision as new details are learned. If aspects of the project change, especially forecasted benefits, the “Amendment” Tab should be used to document the revisions. All changes to the project are subject to review and approval by the Steering Committee. The “Amendment” Tab can duplicated in the workbook if more than one “Amendment” is required.

Project Example “Amendment” Tab 1. Indicate the date this amendment was approved by the Steering Committee 2. Provide an explanation of the reason for this amendment to the Project Charter. Consider and include as appropriate: Changes to Business Conditions Requested Changes to Measurement basis Project Scope Changes Adjustments in Expected Benefits Revisions to Implementation Costs Etc. 4. Steering Committee members names, contact information and dates each approves this amendment. 3. Indicate any changes to the financial benefits as a result of this amendment. In the “Most Recent” column indicate the expected benefits prior to this amendment request. In the “Amended” column, indicate the expected financial benefit if and after this amendment is approved. NOTE: All amounts are in thousands of U.S. Dollars $(000s) Note: Duplicate the “Amendment” worksheet in the workbook if multiple amendments are required