1. Evolving the EPMO Function Enterprise Program Management
Tom Dadmun
VP, Program Management Office
ADTRAN

2. Share with you the evolution of the ADTRAN Program Management Office
Purpose
Share with you the evolution of the ADTRAN Program Management Office
Expected Outcome
Understanding the potential benefits of strategic focus applied across the Enterprise

3. The Network Access Company

4. Corporate Statistics FY2008 Revenue: $500 Million
Large established Presence in Telecom Equipment Industry
Employees: ~1,800 total
Headquarters: Cummings Research Park, Huntsville, Alabama
Sales office throughout the US
In-house and outsourced manufacturing
Long Term Financial Strength

5. Reengineering the Supply Chain Program Objective
Basic Principles
The customer is our #1 Priority
Let’s give them what they want when they want it!
Inventory is a cost of doing business
Let’s make it affordable
Velocity is the name of the game
Let’s eliminate non value added processes and touches
World Class Performance through empowerment
Let’s unlock the true potential of our greatest asset…. The employee!
Re-define the existing business practices through the flawless execution of the basic principles of “ Total Supply Chain Management”
These basic principles will be the foundation on which the business will operate in achieving the new standards of “ World Class Excellence ”

6. Major Reason For Project Failures Slide 5
A – No Identified Project Champion
B – Funding Issues / Over Budget
C – Lack of Senior Management Commitment
D – Project Does Not Perform To Expectations

7. Senior Management Support
Steering Committee
President & COO
Sr VP Manufacturing
CIO
END Sr VP & Gen Mgr
CND Sr VP & Gen Mgr
CFO
VP Supply Chain Operations
Extended Committee
Program Manager
IT Program Manager
Formal Monthly Reviews
Senior Management
Commitment To Empower Task Force
Funding, Resources,
Mind Share & Accessibility
Importance to Adtran’s Future Growth and Profitability
World Class Company , World Class Supply Chain, World Class Employees

8. Time Line TIMELINE 90 Day Sprint Six - Nine Months Nine Months +
Phase One
Develop an “As Is” model to include the Good, the Bad and the Ugly
Develop an “ End Vision” with realistic interim stages
Perform a Gap Analysis between the two models
Phase Two
Review & Prioritize projects to close the gaps
Review priorities with Steering Committee
Review impact & prioritization of other internal projects
Execute tasks to close gaps in realistic interim stages
Phase Three
Review & Prioritize projects to reach End Vision with continuous improvement techniques
Attain World Class status comparing Adtran to “ Best In Class” comparable manufacturers
TIMELINE
90 Day Sprint Six - Nine Months Nine Months +

9. As is
To Be

10. The current business infrastructure provides limited visibility & synchronization
Suppliers
Manufacturing
Divisions
Channels
End Customer
Distributors
Carriers CN
ADTRAN
Enterprise
Distributors EN
Ingram
VARs

11. CN EN Suppliers Manufacturing Divisions Channels End Customer
Distributors
Factory Planner
Carriers CN
ADTRAN
Enterprise
Distributors EN
Ingram
VARs

12. CN EN Suppliers Manufacturing Divisions Channels End Customer
Distributors
Supply Chain Planning
Carriers CN
Supply Collaboration
ADTRAN
Enterprise
Distributors EN
Ingram
VARs

13. CN EN Suppliers Manufacturing Divisions Channels End Customer
Distributors
Supply Chain Planning
Carriers CN
Supply Collaboration
ADTRAN
Demand Planning
Enterprise
Distributors EN
Ingram
VARs

14. Supply Chain Visibility
Suppliers
Manufacturing
Divisions
Channels
End Customer
Distributors
Supply Chain Planning
Carriers CN
Supply Collaboration
ADTRAN
Demand Planning
Enterprise
Distributors EN
Transportation Mgt.
& Optimization
Ingram
VARs
Supply Chain Visibility

15. Order Allocation & Promising Supply Chain Visibility
Suppliers
Manufacturing
Divisions
Channels
End Customer
Distributors
Supply Chain Planning
Carriers
Order Allocation & Promising CN
Supply Collaboration
ADTRAN
Demand Planning
Enterprise
Distributors EN
Transportation Mgt.
& Optimization
Ingram
VARs
Supply Chain Visibility

16. Order Allocation & Promising Supply Chain Visibility
Suppliers
Manufacturing
Divisions
Channels
End Customer
Distributors
Supply Chain Planning
Carriers
Order Allocation & Promising CN
Supply Collaboration
ADTRAN
Demand Planning
Enterprise
Distributors EN
Demand Collaboration
Transportation Mgt.
& Optimization
Ingram
VARs
Supply Chain Visibility

17. Supply Chain Visibility
Suppliers
Manufacturing
Divisions
Channels
End Customer
Distributors
Supply Chain Planning
Carriers
Order Allocation & Promising CN
Supply Collaboration
ADTRAN
Demand Planning
Enterprise
Collaborative Sourcing
Distributors EN
Demand Collaboration
Transportation Mgt.
& Optimization
Ingram
VARs
Supply Chain Visibility

18. Complete Supply Chain Visibility & Synchronization
Suppliers
Manufacturing
Divisions
Channels
End Customer
Distributors
Supply Chain Planning
Carriers
Order Allocation & Promising CN
Supply Collaboration
ADTRAN
Demand Planning
Enterprise
Collaborative Sourcing
Distributors EN
Demand Collaboration
Transportation Mgt.
& Optimization
Ingram
VARs
Complete Supply Chain Visibility & Synchronization

19. Measuring Success ~~BREAKTHROUGHS~~ Inventory Reduced 64%
Order Responsiveness Reduced 14 Days to 2
Inventory Turns Increased 30%
Cycle Time Reduced 34%
Gross Margins Increased 37%
Delivery Performance Increased
To Request 84% to 92%
To Promise 85% to 96%
~~BREAKTHROUGHS~~

20. Proof Point - Inventory Reduction

21. Expected Favorable Impacts
Reduction in total responsiveness cycle time
1 - 2 Days
Days
Total Cycle Time:
1 – 5 Days
Communicate / Negotiate with Supplier:
Daily 24/7 Visibility
Report Review Process Time:
Daily
7 Days
Requirements Report Availability:
Factory Planner / Supplier Collaboration
BaaN MRP
Planning Process:
Procurement Cycle Time Comparison

23. Factory Planner Proof Points

24. How do I Duplicate this Success? How do I get “ Knowledge Turns” ?
Questions????
How do I Duplicate this Success?
How do I get “ Knowledge Turns” ?

25. ADTRAN’s Let’s duplicate our process methodology model and develop
Program Management Office

26. Enterprise Architecture
Project Management Builds Momentum
Strategize
Enterprise PMO
Enterprise Architecture
Collaborate
PMO’s
Program Management
Office
PMO Governance
Anticipate
Ad Hoc Projects
React
IT Councils
2000
2005
Time

27. Department Level Projects
EPMO Comes of Age
Program
Coordination
Project
Integration
Strategize
Enterprise
Projects
Project
Optimization
Cross Functional
Projects
Collaborate
Anticipate
Department Level Projects
React
Event Level Projects

28. PMO Models PMOs are organized around 4 missions
Coach
Auditor
Player
Advisor
Mission
Share Project
Management
Best Practices
Mission
Share Project
Management
Best Practices
Mission
Drive successful
Project on time
delivery
Mission
Facilitate Project
Portfolio Optimization
Tasks
Success
Compliance
On Budget
On Target
Alignment

29. Which Model Best Fits Your Culture? Slide 27
A – Coach
B – Auditor
C – Player
D – Advisor
E – None of the above

31. Best Fit For Your PMO Organization Slide 28
A – IT
B – Finance
C – Operations
D – Corporate CEO / COO
E – Supply Chain Operations

32. Adtran PMO Vision
Develop Scalable Systems, Processes and Solutions to enable Adtran management to achieve their goals.

33. PMO Mission
Develop an architectural roadmap that allows the Company to grow Revenue & Profit and expand Global Markets
To provide process methodologies for Strategic Visioning, Continuous Improvement, Problem Solving, and Management Training
Establish and facilitate a governing body to review progress of EPMO managed programs
Drive the Annual Business Planning Process

34. Enterprise Architecture
ERP – System Backbone
CRM – Customer Relationship Management
SRM – Sales Relationship Management
SCM – Supply Chain Management
PLM – Product Lifecycle Management
HRM – Human Resource Management
BI – Business Intelligence

35. Success Breeds Success
Project Management Training
Seed the Organization with Project Managers
COE – Develop Center of Excellence
Proving Ground for Future Leaders

36. Thank You!!!! Questions & Answers Thomas L. Dadmun
Office