Engineeing tries to improve….

1. Engineeing tries to improve…. Paris - 18/02/2006 Marketing Department, Tokheim Europe & Africa

2. Main actions • Timesheets Step 1 - Understanding - Done • Timesheets Step 2 - Securing - started • ABCD process, checklists on process - Done • ABCD process, get people to take ownership - started • Other checklists and tools - difficult to start • Engineering and Lean - testing tool - starting Marketing Department, Tokheim Europe & Africa

3. Timesheets - Step 1 • Step 1: get people to report hours, and make clear split between projects, sustaining, quality, other items... • Clear improvement on real energy dedicated to project over past year (went from 40% to 60% of team real effort) • With Timesheets • things get to be visible!!! Some people just understood they were spending huge amount of Energy on sustaining, or getting disturbed, and just missing every day commitments • people started reacting, focusing more on core activities • got people to be aware around them, showing clearly in Timesheets the name of main ‘ disturbing ’ disciplines • moved out part of team that was more dedicated to factory sustaining Marketing Department, Tokheim Europe & Africa

4. Timesheets - Level 1 Marketing Department, Tokheim Europe & Africa

5. Timesheets - Step 2 • Step 2: get people to anticipate (plan) from one week to next, and make keep clear split between projects, sustaining, quality, other items... • Clear feeling that this will get stability to 2005 results , improvement on real energy dedicated to project in future (target is to secure 60% to 70% of team real effort on projects) • Real gentlemen agreement weekly between leader and actor on reporting accurately the ‘disturbing’ facts and problems Marketing Department, Tokheim Europe & Africa

6. ABCD process • Converted understanding process to an easy to understand ABCD 4 step method • Build simple checklists to make people accept fact that we take short-cuts • Make people understand that short-cuts bring failures Marketing Department, Tokheim Europe & Africa

7. Module 1 and 2Phase A - Check list • Is situation understood clearly? Exhibit A in folder:  Done • Is scope of project put in writing? Exhibit B in folder:  Done • Are costs fully understood and described? Exhibit C in folder:  Done • see competition, and cross compare at matrix of functionality's level (need to go out, and visit sites with Tokheim product, and competition product, also do competition tear down and costing) Exhibit D in folder:  Done • Are customer’s wishes identified (explicit/implicit)? Exhibit E in folder:  Done • Are market implicit and explicit needs identified? Exhibit F in folder:  Done • Are safety requirements clearly identified? Pre-risk assessment? Exhibit G in folder:  Done • Is SSD position clear on product/market Exhibit H in folder:  Done • Are regulatory requirements clear (ATEX, W&M, other)? Exhibit I in folder:  Done • Is warranty cost in key SSDs understood and addressed? Exhibit J in folder:  Done • Is BOSCAR (see end of presentation)done now with Marketing? Exhibit K in folder:  Done • One to One meeting with (exhibit L, minutes of meeting) • Quality  Done Date of meeting: 14/06/05 • Marketing  Done Date of meeting: 09/06/05 • engineering team  Done Date of meeting: • SSD  Done Date of meeting: 14/06/05 • Purchasing  Done Date of meeting: Marketing Department, Tokheim Europe & Africa

8. About Checklists • We try to list simple questions, and make sure people feel comfortable to say ‘ yes ’, done…. • If question was answered ‘ yes ’ one day, you can cancell that ‘ yes ’ a few days or weeks after, if you feel it is not appropriate • we make a list of people part of the project team (they need to come from all relevant diciplines of business) • we open extendable check list, so ideas or important things that we should not forget are on a list, early stage Marketing Department, Tokheim Europe & Africa

9. Phase B - Project teamList of names proposed • Finance : _XXXXXXXX___________________ • Central Purchasing : _XXXXXXXX________________ • Factories (put 2 names if needed) : _XXXXXX / YYYYYY / ZZZZZZ / TTTTTT • Approvals (W&M, ATEX, risk assessment) : _AAAAA / BBBBBl _________ • SSDs (put 2 names if needed): : _ CCCCC / DDDDD_______ • Marketing : _RRRRRRRRR______________ • Quality : _MMMMMMMM _______________ • Electronics (if needed) : ____________________________ • Patents : _GGGGGGGGG __________________ Marketing Department, Tokheim Europe & Africa

10. Phase D - Check list(to be open at Phase C and feed continuously after. To be finished at production tollgate) • build, maintain and feed the Specific tool list to prevent missing final tooled parts at production tollgate  Started  Living  OK at end • build, maintain and feed the side projects list to be synchronized with this project to avoid missing final Rendez-vous targets  Started  Living  OK at end • build, maintain and feed the risk assessment file, and involve all key HSE players, and Engineering Services approval team  Started  Living  OK at end • value engineering (with competition analysis on main competitor  Started  Living  OK at end • ____________________________________________________ ____________________________________________________  Started  Living  OK at end • ____________________________________________________ ____________________________________________________  Started  Living  OK at end • ____________________________________________________ ____________________________________________________  Started  Living  OK at end • ____________________________________________________ ____________________________________________________  Started  Living  OK at end note: maybe need to think of Quality controls, W&M approvals in various countries, corrective action list from alpha+beta+audit+veteran+FMEA reviews, etc…. Responsibility of PL to build list during project. Marketing Department, Tokheim Europe & Africa

11. ABCD process - Team understanding • Work shop during Yearly Engineering meeting of team • Team more and more aware and understanding facts. On main Post-it work, top 3 key reasons of failures and late projects were listed as: • 1) Poor understanding of the full scope of the project - 29 votes • 2) Not enough resource & priorities not clear - 13 votes • 3) strategy & responsabilities unclear - 9 votes • On TOP 1, team considered that top reason for this to happen was a poor Phase A of today ’s project (phase A understood now as most critical phase of any project) • Main comments on next slide Marketing Department, Tokheim Europe & Africa

12. ABCD process • Seems everyone is more and more convinced that the ABCD process, specially the A phase, has to be emphasized. • All failures and main slippage linked to phase A uncompleted or not done correctly, leading problems and slippage • The right people have to be involved from the start. People to be involved also have to WANT to be involved! • All members of Team have to be aware of what is involved in the running of a Project at the start. Training may be required on Concurrent Engineering and Toyota Method. ABCD method to be explained more again. • Weekly (routine standard) meeting should take place even if there is very little to report. This will then become a habitual procedure. • Have team to take decisions (concensus), not leader unless forced to Marketing Department, Tokheim Europe & Africa

13. Other tools History on products Parero on problems (manufacturing and site) Marketing Department, Tokheim Europe & Africa

14. Other tools Products problem tracking Marketing Department, Tokheim Europe & Africa

15. Engineering and Lean - test tool • On the project, we identify the objectives (both generic, and marketing specifics for this project) • On Lean tool, we list all potentials Marketing Department, Tokheim Europe & Africa

16. Engineering and Lean - test tool • If a tool potentially helps to achieve the Objective, first tick identifies it (here, standardization can help reduce cost on material, or fool proof design help reduce quality rejects). • Depending of resources, select those we want to keep, make other Black. Marketing Department, Tokheim Europe & Africa

17. Engineering and Lean - test tool • Second tick, action initiated (comments on list and names), 3rd on work group and status, 4th when finished and part of project Marketing Department, Tokheim Europe & Africa