Operational Excellence: Imperatives

FY09 TS Tactical Summit

Operational Excellence: Imperatives

Create an indispensable relationship w/ customers and suppliers by listening to and fully understanding their needs and desires,

incorporating them into our end-to-end process design.

Establish a continuous process improvement discipline by formalizing continual analysis and providing each employee with

transparency on each process.

Establish industry-leading productivity goals and create seamless process/workflows to drive and measure customer loyalty

on a global basis.

Enable OPX “Level 4” maturity by ensuring all leaders achieve expertise in change

management and reach “Mastery” certification within three years.

Indispensable

Process Improvement

Productivity

Level 4 Maturity

5% Incremental

Growth inOp Income

Appraisal / Performance

Alignment

100% of LeadersCertified in

Process Mastery

COMPANY CONFIDENTIAL

Operational Excellence

Usha ShahVP , TS Global Operational

Excellence

FY09 TS Tactical Summit

OPX Highlights – FY08 OPX Methodology & structure in place

► Common OPX methodology established & deployed► Change agents in Americas & EMEA► Change agents training completed (N.A.)

Increased OPX awareness► Leadership engagement sessions in all regions► Employees Lunch & Learn sessions in Americas► OPX workshops in EMEA and AP

OPX Review cadence established► Achieved $5 M in benefits through process re-engineering

projects and the Avnet Results program (N.A.)► 14 projects in pipeline with estimated $12.7M benefits (N.A.)► Several projects initiated in AP & EMEA

FY09 TS Tactical Summit

Looking Forward to FY09 Evaluate performance toward level 2 maturity

► Define process & complete assessments► Identify gaps and resolve► Communicate Results

Task Workers to Process performers► 100% of SLT to complete ‘Breakthrough Performance’ training► 100% of employees complete ‘Culture of Excellence’ training► Socialize common language, share success stories► Promote replication of benefits by utilizing “Results’ program

Improve E2E Core processes ► Involve suppliers and customers into process re-design efforts

• Identify high priority customer facing processes for re-design• Conduct pilot run in each region