1

ACE GOLD RECERTIFICATIONPRE-ASSESSMENT

DOMESTIC CASH MANAGEMENT

2

OVERVIEW

Description: Provide daily liquidity to all participating UTC entities

Customers: Legal Entity UsersBusiness Unit Finance Council UTC Treasury

Performance Measurements:

Net cashpool position is within head account external borrowing limit (Quality Metric)

Participants accounts are funded:

100% correct in terms of specified target balance (Quality Metric)

Daily (Delivery Metric)

Internal controls are SOX and internal audit compliant (Quality Metric)

3

ACE JOURNEY

II

PP

MM

II

dentify

rioritize

ap

tandardize

EFA, Benchmarking, Process Map

Process Mandate

SIPOC, VSM, Kaizen Identification

Project Management, Kaizen Event, MP Solution

ACE TOOLS UTILIZED

SS Standard Work

mplement

Value Stream (Process) Management

4

OVERVIEW

Flow

System

(Avg daily flow

$1.06B,

zero cash balance)

Periodic

Pull / Push

System

(Avg quarter-end cash $60M)

Daily

Pull / Push

System

Domestic Funding Current Structure

125 BU Entities379 Bank Accounts , 4 banks

JPMC (177), BOA (129), Mellon (38), Citibank (35)

Lockboxes

Deposit Accounts

DisbursementAccounts

Payroll Accounts

ZBA

ZBA ZBA

ZBA

Citibank

MellonBOA GlobalBOA Mass

JPM Chase

UTC Cash Concentration System

UTC Treasury Workstation

Quantum

Ebanking: Daily File Upload Per Bank (Prior Day Position)

Multiple Current Day reporting Per Bank

Automated FundingTo BU Domestic entities

Decentralized communications from

banks on collection files

90% managed by SBS

Communication to Banks on payment & Positive Pay files

Disbursement

Payroll

Petty Cash

Lockboxes

Deposit35 BU Entities & UTC

38 Banks94 Bank Accounts

5 UTC Concentration Bank Accounts

Non Integrated US Bank Accounts

Decentralized transmissions to banks on payment & positive

pay files

Commercial Paper / External

Investments

Wire

Manual Funding

Decentralized communications from

banks on collection files

CitibankLondon

Ebanking, WireInternational Funding

Managed by UTC Treasury

5

PROBLEM DEFINITION

Problem: UTC Cash Concentration SystemToo much manual transaction processing relating to data handoffs, creating opportunities for mistakes and turnbacks – Employee Feedback

• Technology change in the last few years eliminated SMARTPOLL which utilized an automated routine to dialup banks, download bank files, and upload files into Quantum

• No comparable internet-based substitute for SMARTPOLL

• Current Process – Manage multiple internet bank connections, each different

• Increased manual processes to manage different bank files

IIdentifydentify

6

BENCHMARKING

Benchmarking November 6 - 7, 2007:Engagement of Sungard Consulting

Review of Best Practices related to Quantum Treasury Workstation usage by other corporates

Preliminary Findings:

Automate data retrieval and import

Eliminate holidays and float due to improper system settings

Eliminate manual transaction entries – Use COM based uploads

Automate transaction identification and Matching using system transaction rules

Eliminate Manual intercompany entries through automated intercompany process or COM based uploads

Automate bank to bank wire entries ……..

IIdentifydentify

7

PROCESS MANDATE PPrioritizerioritize

8

SIPOC MMapap

9

CURRENT STATE -VSM

Per Funding Cycle Current UTC 2X

Number of Head Bank Accounts

4 Banks, 6 Head Accts

8 Banks, 12 Head Accts

Takt Time 480 mins 480 mins

Lead Time 480 mins 480 mins

Cycle Time

185 – 330 mins

340-620 mins

Funding / InvestmentLoop

1-2x per dayNeither

Excess Funds

Need Funds

Bank of America Direct

CitiDirect

iTelecash

JP Morgan Access

Import 1 directory

ZBABusiness Units

ControllersTreasury Center

UTC

JP Morgan Chase

Bank of America

BNY Mellon

Citi

Deal Doc.CHAP.RPT

MELP.RPT

BOAP.RPT

CITP.RPT

UTC Treasury

QUANTUM

Bank RecPreliminary

Cash Position

Funding / Investment

Issue CP

Invest Excess Cash

Updated Day Cash Position

Bank Transfers

Other Disburse

ments

Run Reports

PM Update

Funding Decision Loop

Invest Excess Cash (if any)

Citi for Securities

CP Brokers

Bank Invest Desks

45

Min Cycle Time

Mins

120

Max Cycle Time

Mins

50

Min Cycle Time

Mins

60

Max Cycle Time

Mins15

Min Cycle Time

Mins

30

Max Cycle Time

Mins

15

Min Cycle Time

Mins

30

Max Cycle Time

Mins

25

Min Cycle Time

Mins

35

Max Cycle Time

Mins

10

Min Cycle Time

Mins

20

Max Cycle Time

Mins

5

Min Cycle Time

Mins

5

Max Cycle Time

Mins

20

Min Cycle Time

Mins

30

Max Cycle Time

Mins

45 Mins

1 Required, 3 Trained

50 Mins 15 Mins 15 Mins 25 Mins 10 Mins 5 Mins 20 Mins

A10 A20 A30 A40 A50 A60 A70 A80

185mTotal

T100

330mMax TotalT110

Loop Exit (after update)

Dail y Domestic Cash ManagementCurrent State VSM, January 8, 2008

Loop Exit (after update)

SBS delay: 30% > 30 minutes

MMapap

10

NEAR FUTURE STATE -VSM

Per Funding Cycle

Near Future State UTC 2X

Number of Head Bank Accounts

4 Banks, 6 Head

Accts8 Banks, 12 Head Accts

Takt Time 480 mins 480 mins

Lead Time 480 mins 480 mins

Cycle Time175 – 275

mins299 – 472

minsFunding / InvestmentLoop

1-2x per dayNeither

Excess Funds

Need Funds

Bank of America Direct

CitiDirect

iTelecash

JP Morgan Access

Import 1 directory

ZBABusiness Units

ControllersTreasury Center

UTC

JP Morgan Chase

Bank of America

BNY Mellon

Citi

CHAP.RPT

MELP.RPT

BOAP.RPT

CITP.RPT

UTC Treasury

QUANTUM

Bank RecPreliminary

Cash Position

Funding / Investment

Issue CP

Invest Excess Cash

Updated Day Cash Position

Bank Transfers

Other Disburse

ments

Run Reports

PM Update

Funding Decision Loop

Invest Excess Cash (if any)

Citi for Securities

CP Brokers

Bank Invest Desks

45

Min Cycle Time

Mins

90

Max Cycle Time

Mins

45

Min Cycle Time

Mins

50

Max Cycle Time

Mins15

Min Cycle Time

Mins

26

Max Cycle Time

Mins

15

Min Cycle Time

Mins

29

Max Cycle Time

Mins

20

Min Cycle Time

Mins

25

Max Cycle Time

Mins

10

Min Cycle Time

Mins

20

Max Cycle Time

Mins

5

Min Cycle Time

Mins

5

Max Cycle Time

Mins

20

Min Cycle Time

Mins

30

Max Cycle Time

Mins

45 Mins

1 Required, 3 Trained

45 Mins 15 Mins 15 Mins 20 Mins 10 Mins 5 Mins 20 Mins

A10 A20 A30 A40 A50 A60 A70 A80

175mTotal

T100

275mMax Total

T110

Loop Exit (after update)

Dail y Domestic Cash ManagementNear Future State (JUNE 2008) VSM

Loop Exit (after update)

A

E

I

I

I

ID2

D1

C

B B

B

H

H

Deal Doc.

MMapap

11

KAIZEN ACTION PLAN

Projected flows – actual flows are now auto-matched

Burst

Kaizen Action Needed Best Practice (As Per External

Benchmarking)

Implementation Plan

Action Owner

Target completio

n date

% Complete

As of 3/12/08

Standardize communication with domestic BU entities on submission of daily funding req’ts

Communicate with the domestic business units on the standard communication with UTC Treasury on daily funding request using the cashroom email mailbox.

George Alipran

di

31 Jan 2008

100%

Eliminate waste on unnecessary paperwork / filings on US daily funding activities

Review the documentation requirements and eliminate any paperwork that is not necessary for Sarbanes Oxley or operational controls purposes.

Brian Refici

31 Jan 2008

100%

Create batch job for daily reports

Write a macro to facilitate the daily distribution of CP reports. Maryann

Santoro

31 Jan 2008

100%

Automate current day bank transfers entries (add’l items)

Work with Sungard to automate the current day bank transfer entries in QuantumReview and amend CashXplorer Worksheet to utilize Actual CF COM•Share RepurchaseBank FeesFarm Springs RentProcurement RebatesChargebacks/CreditsEvaluate automation of UTPV and UTIV ICN’s from Bank Rec.

√√

√

John Conte

31 March 2008

90%

Automate current day bank balance entries (holidays)

Utilize Quantum “Holiday” functionality to eliminate post holiday rework for the current day worksheet

√ John Conte

31 March 2008

100%

Automate prior day bank reconciliation items

Utilize knowledgeable treasury resources to create more transaction rules to automatch the prior day reconciling items in Quantum.

√ John Conte

31 March 2008

100%

Create more “COM” processes to facilitate efficient entry of information in Quantum

Work with Fred Pasler (UTC IT manager) to create more COM files to upload the following information into Quantum:Actual cashflows [COM complete, CashXplorer work needed]Sweeps & investments [complete]ICNs [complete] Projected cashflows [complete]Money market deals (CP, short term investment) [complete]

√ George Alipran

di

30 June 2008

100%

Streamline settlement documentation handoffs

Revise standard work on how cross functional teams in treasury communicate with domestic cash management on settlements

John Conte / Shanan Harkne

ss

30 September 2008

100%

A

I

E

D1

D2

C

B

H

IImplementmplement

12

KAIZEN IMPLEMENTATION

FX Group

Investments worksheet

Log into Quantum

Select “Projected /

Actual Cashflows” from

Main Menu

Toggle to “Actual

cashflow”

Enter “Edit Recall

Record”Save

Enter fields for 1 deal (9

per deal)

Any more investments

Change details*

* Amount, input date, maturity date, currency,

comments

Any more investments

End

Save

No

Yes

Yes

No

Quantum

FX Group

Investments worksheet

Log into Citrix

Copy and Paste on

COM sheet

Export COM sheet

Import successful?

No

Yes

End

Quantum

Access Prior Day BAI file

Import QID file

Input cashflow

details into QID file

Log in Critix and

Quantum

Save QID file

Execute macros

Run Automatch

QuantumEbanking

EndImport prior day BAI files

Access Prior Day BAI file

Run Automatch

Log into Citrix and Quantum

QuantumEbanking

EndImport prior day BAI files

Export Current Day

Cash Position W/S

Enter bank transfer into Quantum*

Copy and Paste

“Surplus / Deficit” line

Save Worksheet

in Excel

Print Wire Sheet

* 5 bank transfers per day, 6 fields

per transfer

Open another

worksheet “Wire Sheet”

Print Current Day Cash

Position W/S in Excel

Exit CitrixManually input wire amounts

Wire SheetCurrent Day

Cash Position Worksheet

Quantum

From Current Day Position Worksheet to Wire Sheet

Log into Citrix and Quantum

File

Save Wire Sheet

EndExport

Current Day Cash

Position W/S

Print Wire Sheet

Copy and Paste

“Surplus / Deficit” line

Open COM Sheet for

Bank Transfer

Export COM sheet

Wire Sheet

Quantum

From Current Day Position Worksheet to Wire Sheet

BEFOREAFTER

Potential for input errors

Potential for input errors

Potential for input errors

Potential for input errors

Potential for input errors

Mistake Proof: Level 1Quantum returns “deal number” on COM sheet

Mistake Proof: Level 1Straight Through Processing

Mistake Proof: Level 1COM Sheet Automatic calculation and Quantum input

UTPV Credit Suisse Investments

Automatch (Share Repurchase, Bank Fees, Farm Springs Rent)

Bank Transfers

D1CBWaste Elimination, Mistake Proof Solutions, Revised Standard Work

IImplementmplement

13

Settlement Communication - Cause & Effect

KAIZEN EVENT

Participants Function

Chris Witzky UTC Assistant Treasurer

Sok Cheng Soh UTC Treasury Director

Brad Thompson UTC Treasury Director

Kristen Pinchera Sr. Mgr, Foreign Exchange

Dennis Cao Manager, Foreign Exchange

Rumen Efremov Manager, Foreign Exchange

John Conte Sr. Mgr, Cash Management

Maryann Santoro Cash Management

George Aliprandi Sr. Mgr, Cash Management

Shanan Harkness Sr. Mgr, Treasury

Other members of Treasury

Kaizen Event in Feb/Mar 2008

Cause

Lack of clear standard process /

documentation for settlement between UTTC and the Daily

Domestic Cash Management

team for funding

People

Information Process

Systems / Equipment

MeasurementPolicy /

Controls

High Turnover

Multiple documents to support cash settlements

Funding deadlines are market imposted

Lack of visibility to when info is finalized

Multiple

Undefined

Lack of understanding as to what reports provide which info

Sometimes lack of supporting documentation

Informal

Lack of cross-functional understanding

Late requirements from customer

Inconsistent documention

Communication to internal 3rd party

Manual handoffs between Quantum and CitiDirect

Dual authorization

“CHAOTIC”

H

IImplementmplement

14

KAIZEN EVENT Settlement Communication - 5 Whys H

Domestic Cash Management Kaizen “H”“5 Why’s”

There is lack of clear standard process / documentation for settlement between UTTC and the Daily Domestic Cash Management team for funding

Lost due to employee turn-

over

Lack of sufficient details in standard

work documentation

Requirements changes (due to control

environments) not understood

Standard work did not address cross functional

coordination

Delayed (reactive) internal

communication

Standard work documentation lacks complete details of the following critical input / output requirements: 1) Who

2) What (type of documents) 3) When (timing)

4) Where

Lack of Cross Functional Understanding Multiple / inconsistent documentation to support settlements used

Changes in personnel

Process chaoticNew consolidated settlement documents not used cross

functionally

Lack of cross-group understanding of functionality

Lack of detailed standard work documentation

IImplementmplement

15

Corrective Action / Mistake Proofing

Cause Relentless Root Cause Analysis

Mistake Proof Solution MistakeProof Level

Lack of Cross Functional Understanding

Standard work documentation lacks complete details of the following critical input / output requirements:

1) Who

2) What (type of documents)

3) When (timing)

4) Where

Re-examine and revise standard work from a value stream perspective to include detailed input / output requirements

3

Multiple / inconsistent documentation to support settlements used

Level 1: Prevent an error from occurring at the source (e.g. one-way assemblies, automatic calculations) Level 2: Detect the error as it is being made (e.g. alarms sound) Level 3: Stop the defect from reaching the next operation providing the mistake proof solution is used (e.g. checklist)

Problem: Lack of clear standard process / documentation for settlement between UTTC and the Daily Domestic Cash Management team for funding

KAIZEN EVENT H

IImplementmplement

16

REVISED STANDARD WORK

Standard Work has been agreed and updated by the Domestic Cash Management and Foreign Exchange Groups:

•Standard documents

•Standard delivery location

•Standard mutually agreed timing

•Standard process across treasury operations and cash management

H

SStandardizetandardize

17

RESULTSNo. of communication processes for funding requests

4

1

0

1

2

3

4

5

Before After

•MP= Level 3•Improved standard work

•MP= Level 3•Improved standard work

A Waste Elimination

7550

0

5000

10000

Annual Paper savings

Nu

mb

er o

f S

hee

ts

E

Manual Quantum Adjustments

216

2520

1200

5600

0 0 12 250

3500

6250

0

1000

2000

3000

4000

5000

6000

7000

Holidays Actual Cashflow UTPV Credit SuisseInvestments

Bank Transfers Money MarketDealsType of Transaction

An

nu

al

# o

f M

an

nu

al

Ad

jus

tme

nts

BeforeAfter

B D2D1

•MP= Level 1•Automation

•MP= Level 1•Automation

•MP= Level 1•COM sheet•Reduce handoffs

•MP= Level 1•COM sheet•Reduce handoffs

•MP= Level 1•Reduce handoffs

•MP= Level 1•Reduce handoffs

MP= Level 1

MP= Level 1

Cycle Time Before

185

340330

620

0

100

200

300

400

500

600

700

Current UTC 2X

Tim

e (M

ins)

Min

Max

Cycle TIme After

175

299275

472

0

100

200

300

400

500

600

700

Current UTC 2X

Tim

e (

Min

s)

Min

Max

Takt: 480

Elimination of Unnecessary approvals

144

1080

0

200

400

600

800

1000

1200

Time saved (Mins) No. of Signatures eliminated

• Improved standard work

• Improved standard work

I H

•Automation•Improved efficiency of reporting

•Automation•Improved efficiency of reporting

18

NEXT STEPS

19

FUTURE STATE VALUE STREAM MAP

E-Treasur

y

Funding / InvestmentLoop

1-2x per dayNeither

Excess Funds

Need Funds

E-Treasury

ZBA Business UnitsControllers

Treasury CenterUTC

JP Morgan Chase

Bank of America

BNY Mellon

Citi

UTC Treasury

QUANTUM

Bank RecPreliminary

Cash Position

Funding / Investment

Issue CP

Invest Excess Cash

Updated Day Cash Position

Bank Transfers

Other Disburse

ments

Run Reports

PM Update

Funding Decision Loop

Invest Excess Cash (if any)

Citi for Securities

CP Brokers

Bank Invest Desks

1 Required, 3 Trained

A10 A20 A30 A40 A50 A60 A70 A80

Loop Exit (after update)

Dail y Domestic Cash ManagementFuTURE Future State VSM

Loop Exit (after update)G

E

A

A

G

A A

B

A AA

D

F

SWIFTNetSWIFTNet

Middleware

20

BENCHMARKING

Backups

21

BENCHMARKING

Root Cause: Multiple banking connectivity, each different, posing costs, compliance and risk issues

Continuous Initiatives

• Sungard (Quantum Treasury System Provider)

• DuPont (Quantum, SWIFTNet)

• Microsoft (SWIFTnet)

• GE (SWIFTnet)

Banks – JPMC, BOA, Mellon, Citibank

22

BACKUP

23

RESULTS

24

RESULTS (CONTINUED)

More Robust Standard Work, Waste Elimination, Mistake Proof Solutions

25

INTERNAL BENCHMARKING

Leverage the Automated “COM” processes of Intercompany Lending Program

Areas of Improvements Results

Money Market Deals -Short Term Investments / Sweeps / Commercial Paper

Reduces Handoffs

Cashflows – Projected / Actual Reduces Handoffs, Level 3 MP Solution

UTPV Credit Suisse Investments Waste Elimination, Level 1 MP Solution

Wire Transfers / Line Sheet / Bank Transfer

Level 1 MP Solution

26

BOA Direct

CitiDirect

JPM Access

Mellon Itelecash

Access Prior Day BAI2 file *

(UFD)

Access Prior Day BAI2 file *

Export file to

Vpluggin-Prior Day Directory

Access Prior Day BAI2 file *

Access Prior Day BAI2 file *

Export file to

Vpluggin-Prior Day directory

Export file to

Vpluggin – Prior Day directory

Once a day, at the beginning of the day

Any Difference End of process

Yes

Reconciledifference

Create Manual

Cashflows

COM Sheet

No

Export file to

Vpluggin – Prior Day directory

* Level of details of Prior Day BAI2 files include UTC bank accounts & BU bank accounts that ZBA to UTC

Access Quantum to import Prior Day

BAI2 files

Quantum Auto Match

Automatch cashflows are:1) ZBA flows (automatically updated into Quantum)2) Bank Account Transfers previously input 3) Maturing Money Market deals (ST investments / borrowings) previously input4) Bank Fees

Differences are typically:1) sweeps2) other receipts in UTC bank accounts3) other disbursements from UTC bank accounts

Manually match bank & Quantum flows in Quantum

Automatic Update 1) Opening day

balance2) Current day

float

Current Day Cash Position

WorksheetA

Prior Day Bank Reconciliation

BOA Direct

CitiDirect

JPM Access

Mellon Itelecash

Access Current

Day bank statement

Access Current

Day bank statement

Manual Update of

COM

Access Current

Day bank statement

Access Current

Day bank statement

Manual Update of

COM

Manual Update of

COM

Manual Update of

COM

Manual Update of

COM

Quantum

Every day, 3 to 4 times a day

Receipts & Disbursement

Cheatsheet (C)

Generate Report using Cash

Explorer

Current Day Cash Position

Worksheet

Import “ Current Day credits & Current Day

disbursements”

Via emails to mailbox received by

10:30 am in the morning.

Sometimes resubmissions during the day

UTC Forecast (Current Day

Wires)

UTPV Forecast (Current Day

Wires)

BU Forecast (Current Day

Wires)

BU Forecasts (Current Day

Wires)

BU Forecasts (Current Day

Wires)

Manual Update of

COM Sheet

Daily Business Units Funding Requests (Wires)

A

B

Current Day Cash Position

UTC Forecast (Current Day

Wires)

UTPV Forecast (Current Day

Wires)

BU Forecast (Current Day

Wires)

BU Forecasts (Current Day

Wires)

BU Forecasts (Current Day

Wires)

PROCESS MAPS – NEAR FUTURE STATE

Current Day Cash Position

WorksheetReview balance

Determine whether to invest or borrow

Call banks for rates

Manual Update

worksheet

Investment worksheet (see K)

Input investment / CP deals in Quantum

Quantum

Drawdown wire sheet

Execute Wires

CitiDirect

Update bank

transfers in

Quantum

Summary Wire Transfers (see G)

Generate reports and confirmations from Quantum (via Batch Job (Email))

Short Term Borrowing /

Investment (see I)

Cashflow by Currency (see H)

Update

Maturing Cashflows

Manual update ending

balances to COM

Print CitiDirect Reports

CP Issuance Bid Sheet

OR

Issuance Status Report (for CP)

B

FUNDING

Make Funding Decisions

Execute Wires (at End of Day)

Generate CP status reports from

CitiDirect

Make Funding Decision

Reporting / Confirmations

27

EXTERNAL BENCHMARKINGBest Practices

Suggested Areas of Improvements Results

Eliminate manual intervention of holidays and float adjustments

√ Done

Eliminate or reduce manually entered deals (move from QID to COM based uploads)

√ Done

Automate transaction identification and matching √ Done

Automate bank to bank wire entries √ Done (using COM based worksheet)

Automate notional bank account entries for intercompany notes

√ Done

Automate Date Retrieval and Import TBD – Future Kaizen (> 12 months horizon). External benchmarking understudy.

28

DESK PROCEDURES

Ensure – Implement Revised Standard Work

Standard Work has been updated by the Domestic Cash Management and Foreign Exchange Groups to reflect the following standard work items.

Loans (between UTILI and UTPV)For all future transactions, the Senior Manager, Foreign Exchange will deliver a copy of the Settlement Report containing the appropriate approvals (as defined by the standard work of the Foreign Exchange and Funding Group), to the Domestic Cash Management Physical Inbox. This inbox will initially be located in John Conte’s office on the corner of his credenza. Revisions will be communicated as soon as possible and in person to the Domestic Cash Management Group, but no later than by noon of the day prior to Value Date. This verbal communication should be followed or accompanied by a revised Settlement Report. The timing of the delivery of report copies and revisions to Domestic Cash Management should be consistent with delivery of these items to Treasury Operations. The Domestic Cash Management group will eliminate the cover sheet form (signed by Ed Widness and others) currently in use, and instead make a copy of the approved Settlement Report to deliver to Ed Widness.

FX on behalf of domestic BU’sFor all future transactions, the Senior Manager, Foreign Exchange will deliver a copy of the Settlement Report containing the appropriate approvals (as defined by the standard work of the Foreign Exchange and Funding Group), to the Domestic Cash Management Physical Inbox. This inbox will initially be located in John Conte’s office on the corner of his credenza. Revisions will be communicated as soon as possible and in person to the Domestic Cash Management Group, but no later than by noon of the day prior to Value Date, if at all possible. This verbal communication should be followed or accompanied by a revised Settlement Report The timing of the delivery of report copies and revisions to Domestic Cash Management should be consistent with delivery of these items to Treasury Operations.

Non-cash settlements between UTTC and UTC or UTPVThese transactions are included in the Excel netting worksheet emailed by the FX Group. Actions by designated individual are identified therein. Actual Cash deals within the Netting system schedule should be posted by “L” Day, otherwise, not later than Settlement Date. The Domestic Cash Management Group will update their standard work documents to reflect this workflow.

FWG TransactionsDetailed paperwork for FWG transactions not included in the reports identified above should be delivered to the Domestic Cash Management Physical Inbox as soon as possible, but no later than by noon of the day prior to the required disbursement of funds.

29

NEXT STEPS

Time Frame

Standard Work 6 Months

JPM / Bank One consolidation 6 – 9 Months

Integration of eligible dometic entities

On Going

E-Treasury 9 – 18 Months

Elimination of Multiple Banking Interfaces (SWIFTnet)

> 12 Months

Quantum Intra-Day Bank Reconciliation

> 12 Months

30

Lower costs

Higher STP

Improved control /compliance

Reduced risk

SWIFTNet

Customer

Accountspayable

Accountsreceivable

Treasury

Other

Single gateway

Corporates wish to access their banks over a highly secure and Corporates wish to access their banks over a highly secure and standardised channelstandardised channel

Standard platform

Standard communication

Standard security

Standard messaging

31

e-banking Y

host to host X

e-banking Z

VAN

“fax-banking”

Internet

Leased line

PSTN

Corporate client

Accountspayable

Accountsreceivable

Treasury

Other

Streamlining with heterogeneous systems is a challengeStreamlining with heterogeneous systems is a challenge

32

ACE JOURNEY

DD

II

VV

EE

efine

nvestigate

erify

nsure

EFA, Benchmarking, Process Mandate, SIPOC, VSM, Process Map

Benchmarking, VSM, RRCA

MP Solution

Standard Work

Continuous Improvement:Benchmarking, EFA, MFA

ACE TOOLS UTILIZED