Denso Presentation - Voice

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Team Leader Application & Personal Recommendations Denso Air Systems M edical M anagement E xecutives Created by Steve Clement / September 2011

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Steve Clement – November 2011 M edical M anagement E xecutives© What I Am Not Engineer Denso Employee Factory employee Mechanic Fabricator Architect Human Resources Specialist Quality Control Specialist What I am! Successful & Effective Manager Proven Financial Manager Cost containment & revenue enhancement Received accolades from Fortune 500 Company & two large health sytems for success in staff management (Gallup Poll results) Proven Team-Builder ”Turn-Around” Manager Advantage Health Physicians Stryker Physiotherapy Associates BRUTALLY HONEST!!!! Passionate about the company I work for & my co-workers! Team Leader Position Proposal Denso Air Systems

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Steve Clement – November 2011 M edical M anagement E xecutives© Background @ ASMI Worked in Heater Pipe 100+ days Employment Group & Temp Employee Have offered to work OT whenever required & at every possible opportunity Have accepted ANY & ALL work positions within Heater Pipe offered Offered to become positive participant in meetings to address issues within the facility Like the co-workers in my department! Passionate about my performance & helping my co-workers Taken the time & effort to not only develop this presentation BUT develop a plan & strategy that will GUARANTEE improvement & positive results for the company! Team Leader Position Proposal Denso Air Systems

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Denso Air Systems Perceived & Actual Issues “The World According to Steve” Steve Clement – November 2011 M edical M anagement E xecutives © Employee Satisfaction & Turnover!!!!! Productivity Lack of definition for ”SUCCESS” with EVERYONE I have had discussions with including management Quality Personnel & Miscellaneous Expenses Training & Staff Development ✓ ✓ ✓ ✓ ✓ ✓ 1 2 3 4 5 6

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Steve Clement – November 2011 M edical M anagement E xecutives © Proposal Denso Air Systems 1 Help to define & address objectives which will not only benefit the dept, but can be utilized within the organization to achieve success Define & Address Objectives Elimination of ALL aforementioned problems / issues . Problem Elimination 3 GUARANTEE to show objective improvement within 120 days AND I will produce a signed letter of resignation upon hire that can be executed at any time. GUARANTEE!!!! Win – win situation What I will need to guarantee success YTD & prior year budget & financial information for respective area Latitude to conduct quarterly employee satisfaction surveys at my expense Productivity information for respective area Quality information for respective area Ability to structure compensation & bonus based on achieving corporate goals Latitude to ”cultivate” successful employees who report to me into potential management / supervisory positions Ability to create training & educational material for use in the facility & on-line Upper Management Support!!!!!! Promise for personal growth if successful 2

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Steve Clement – November 2011 M edical M anagement E xecutives© Identify & Develop Strategy for Addressing Each of 6 Perceived & Actual Issues Employee Satisfaction & Turnover Quality Productivity Personnel & Miscellaneous Expenses Lack of Definition for ”SUCCESS” Training & Staff Development Ironically, as many of these issues are identified & addressed, others will take care of themselves Defining ”SUCCESS” for Supervisory & Management staff, will result in an increase in Employee Satisfaction, correct Quality issues, increase overall productivity, and help to control Expenses! Addressing ALL of the issues, will result in more positive perception of the Corporate Culture Management Strategy for “Achieving Success” Denso Air Systems

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Addressing Key Issues Denso Air Systems Relatively easy to cheaply and effectively track satisfaction & turnover with software such as “ Zoomerang ” (www.zoomerang.com) Templates Important to FREQUENTLY (quarterly) measure & track Employee Satisfaction Employee Satisfaction & Turnover 1 1 2 Important to FREQUENTLY (quarterly) measure & track turnover Make “Employee Satisfaction / Turnover” a component of Team Leader & Sub-Leader bonus formula 3 4 Post results & goals in a “Dashboard Report” to be disseminated daily. Results will be humbling but important to identify what can be addressed 1 2 Addressing the issues causing Employee “dissatisfaction” & turnover will eventually result in higher productivity and decreased quality issues. Trained, productive & valued employees will remain with company. 3 Employee Satisfaction survey doesn’t have to be complex. It can include 2-3 questions such as “How satisfied are you with your supervisor” and “How satisfied are you with the company” Steve Clement – November 2011 M edical M anagement E xecutives©

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Addressing Key Issues Denso Air Systems Currently, this is being tracked, but the results are not clearly posted and compared with an acceptable goal Templates This should be measured daily with the results & goals posted for ALL to see Quality Issues 1 1 2 Results should be on a MTD & YTD basis with REALISTIC goals and objectives posted What is the definition of “Success” in this area? 3 4 In a perfect world, the achievement of this goal would be ABSOLUTELY necessary in order for anyone to qualify for a bonus 1 2 What is “SUCCESS” in this area? Are we allowed to have 1 defect over the period of a week or month, etc? 3 Results should be 1-2 measurements that are posted daily against what the goal(s) or objectives are. Steve Clement – November 2011 M edical M anagement E xecutives©

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Addressing Key Issues Denso Air Systems Currently, this is being tracked, but the results are not clearly posted and compared with an acceptable goal Templates This should be measured daily with the results & goals posted for ALL to see Productivity 1 1 2 Each individual employee should be aware of what their productivity goals and objectives are EACH & EVERY DAY! What is the definition of “Success” in this area? 3 4 In a perfect world, the achievement of this goal as a team would be a fairly large component of a bonus 1 2 What is “SUCCESS” in this area? In my world, “Success” is personally defined as packing 700-750 8650 parts in an 8 hour day. 3 Dashboard should show the results on a week-to-date and MTD basis with the respective goals Steve Clement – November 2011 M edical M anagement E xecutives©

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Addressing Key Issues Denso Air Systems Currently, there must be a budget that can be broken down & disseminated to respective Team Leaders & Sub-Leaders. Information should include MTD and YTD comparisons to budget & previous year. Templates To really & truly effectively manage a department, it is necessary to have access to a department budget Personnel & Miscellaneous Expenses 1 1 2 The ability for the Team Leader to effect changes in the cost per part, will depend greatly on the financial information provided to him/her What is the definition of “Success” in this area? Productivity will play a key role in cost per part information is tracked. 3 4 In a perfect world, any excess created by properly managing the respective finances could be utilized for the creation of a “bonus pool” to be disseminated quarterly 1 2 The creation of a “Denso University” to train management / supervisory staff in how to effectively manage their budget could be utilized for non-financial managers 3 Dashboard should show the results on a week-to-date and MTD basis with the respective goals. Weekly meetings to discuss cost/part, personnel expenses, OT & other expenses Steve Clement – November 2011 M edical M anagement E xecutives©

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Addressing Key Issues Denso Air Systems By creating goals & objectives for everyone AND a corresponding incentive for achieving SUCCESS, the company & employees all win! Templates EVERYONE should have their arms around what “SUCCESS” looks like on a personal basis, department basis & company perspective. Definition of “SUCCESS” 1 1 2 “Success” for staff members should include Quality, Productivity, & a positive variance in expenses IF a department is SUCCESSFUL with the aforementioned parameters, the bonus pool created by managing the expenses could be shared by ALL staff! 3 4 “Success” for supervisory staff and/or management should include Quality, Productivity, Employee Satisfaction, & a positive variance in expenses. 1 2 Defining SUCCESS and a corresponding reward will: Increase Employee Satisfaction Decrease Turnover Achieve Quality & Production goals Control personnel & operating expenses Motivate staff Move Corporate Culture in a positive direction Steve Clement – November 2011 M edical M anagement E xecutives©

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Addressing Key Issues Denso Air Systems Stryker’s plan Introduction (1 week) One-on-One Training with Supervisor 90 Day mentorship with Mentor Skill testing & sign off on training Written, personal & on-line training Templates What would the “Ideal” plan look like? Need consistency across company Training & Staff Development 1 1 2 The program / plan should be a strategy on how to take a new employee and make them a ”Master” of their respective position. Training should not be the responsibility of one or two employees over a short period of time but multiple people over several months 3 4 My personal plan: Introductory training meeting Hands on training with sub-leader Mentorship with “Master” employee Sign off on training 1 2 W hat made Stryker’s program extremely successful was: Only people who liked training were involved in the Mentorship program Mentors were compensated upon SUCCESSFUL completion & Sign off Mentors were the next line of management that was being developed Steve Clement – November 2011 M edical M anagement E xecutives©

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Steve Clement – November 2011 M edical M anagement E xecutives© Temp Employee Perspective Compensation Available Health Insurance is more than compensation Other benefits are not affordable Trial hire is few & far between Training is questionable but consequences for mistakes is high No PTO No holiday pay for first year Threat of being terminated if more than 1 sick day is utilized in 90 day period No positive feedback but significant amount of negative feedback Associates Compensation (lack of salary increase over several years) Lack of annual evaluations No positive feedback but significant amount of negative feedback Issues Contributing to Employee Dissatisfaction & Turnover Denso Air Systems

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Steve Clement – November 2011 M edical M anagement E xecutives© Information from Industrial Psychologist – Dr. Thomas Munn Corporate Goals Highest Quality Product Fiscally Responsible to Shareholders & Employees Ethical, Legal & Moral Obligations Motivation for Employees $$$$$ in the VAST majority of cases Personal Happiness Personal & Professional Growth Is there a reward system in place to motivate employees to achieve the Corporate goals? A case could be made that in order for an employee to achieve more personal income, they need to work OT OT is achieved only when resources aren’t sufficient to meet demand If employees can work ”less efficiently” to carry workload into weekends (particularly Sunday) The big question is how to create an incentive system which be a ”Win-Win” Scenario How do you reward & motivate the employees to achieve the Corporate Goals in a fiscally responsible manner? Corporate Goals vs Employee Reward Denso Air Systems

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Sample Incentive Program Denso Air Systems Steve Clement – November 2011 M edical M anagement E xecutives© IF the Quality goal is achieved, then the team qualifies for a quarterly bonus. The size of the quarterly bonus pool will be based on the positive variance from the current quarter and the previous year or budget. Achieving 100% of the productivity goal will result in the team getting the full bonus pool. Achieving 80% - 99% of the productivity goal will result in the team getting 50% of the bonus pool Less than 80% = $0.00 Bonus Pool & Components 1 Quality Team leader will receive 20% of bonus pool only if Emp Satisfaction Survey displays improvement or acceptable results Sub-leader will receive 10% of bonus pool only if Emp Satisfaction Survey displays improvement or acceptable results Staff will split 50% of pool Remaining 20% goes back to the company WIN - WIN – WIN SITUATION! Company achieves Quality, Productivity , Financial & Emp Satisfaction Objectives Distribution Since Quality is an important component of the Denso & Toyota culture, the Quality objective for the team MUST be met in order for the team to qualify for a bonus. Failure to achieve the goal for that quarter will result in forfeiture of the bonus for the team. 3 2

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MTD Defects Monthly Defect Goal MTD Productivity & MTD Productivity Goals Current price per part & price per part goal Payroll & Operating Expenses Payroll & Operating Expenses Budget Prior Year Payroll & Operating Expenses Current & Prior Year OT Hours Employee Satisfaction Survey results Employee Turnover information Sample Department “Snapshot” Denso Air Systems Employee Measures Financial Measures Quality Measures Steve Clement – November 2011 M edical M anagement E xecutives©

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Steve Clement – November 2011 M edical M anagement E xecutives © Denso Air Systems Proposal Thank you for your time!