LEAN METHODOLOGY VALUE STREAM MAPPING (VSM) Version: 1

1. LEAN METHODOLOGY VALUE STREAM MAPPING (VSM) Version: 1

2. Agenda • Brief Overview of LEAN & LEAN Values • What is Value Stream Mapping & Benefits • Case Study Value Stream Mapping – Case Study 1 & 2 • Various Examples Of Value Stream Mapping • AOB

3. Agenda • Brief Overview Of LEAN & LEAN Values • What is Value Stream Mapping & Benefits • Case Study Value Stream Mapping – Case Study 1 & 2 • Various Examples Of Value Stream Mapping • AOB

4. Brief Overview Of LEAN • Create more value with less work by eliminating waste (TIMWOODT) • Benefits include highly productive work force, satisfied customers and profitable operations • Creating a culture through continuous improvement Excellence Culture Plan Act • Accountability and Ownership • Ensure line management takes responsibility acting at top with functional support • Train and Involve • Provide customized ongoing training to close gaps in all Operations Excellence Building Blocks Do Check • Measure and Reward • Measuring stakeholder value by KPI’s • Employee incentives are linked to KPIs Lean • Operations Building Blocks • Apply Operations Excellence Building Blocks in day to day Operations Processes and people with passion is key to continuous improvement.

5. LEAN Values • Optimize The Whole • Eliminate Wastes • Learn Constantly • Deliver Fast • Engage Everyone • Keep Getting Better Through Continuous Improvement

6. What Is Value Stream Mapping & Benefits 1. Grasp current condition 2. Identify problems within current condition 3. Establish the ideal condition 4. Set future target condition Purpose Provides a detailed visual description of the current value stream Provides a detailed visual description of the current problems within the value stream Provides a detailed visual description of the ideal value stream achievable in an ideal world Provides a detailed visual description of a redesigned target value stream as a compromise between current and ideal conditions Objectives • Show a holistic view of the entire current system • Visualize material and information interactions • Provide common framework for discussion • Highlight waste and its sources throughout the system • Identify problems and their area • Provide common framework for discussion • Create a vision of an ideal lean value stream • Force best practice thinking end-to-end • Set baseline for tactical implementation planning by identifying value stream loops • Prioritize improvement efforts/actions • Assist in quantifying improvement potential • Allow target setting (short-mid-long term)

7. Agenda • Brief Overview Of LEAN & LEAN Values • What Is Value Stream Mapping & Benefits • Case Study Of Value Stream Mapping – Case Study 1 & 2 • Various Examples Of Value Stream Mapping • AOB

8. Case Study 1 Imports Gateway VSM – Current State (2008) CONSIGNEE ORIGINS CEVA LHR CUSTOMS Sometimes cargo Arr without Pre-alert EXCEL GSU PLUS DATA IMPATEX 1 Pre- Alert rcvd from Origin Check Impatex for Dox rcvd and R/N A/L sets status 1 on our bond store Rcv Original Dox from courier Open consol file If ours: Open Hawb file for Gen Imp See Gen Imp MIFA 1.6 R/N R/N AWB HAWB Open W/H file Receive P5 R/N Other Uk Offices: Capture in PLUS Do Inter Airport removal entry Make up pouch with docs & R/N – snd to W/H Adv dest that cargo ready Dest staion arrange collection R/N Gen Imp cannot process Their files before consol files Are opened and put Into Impatex Key out signed R/N and file Wkly bond check –match up with R/N Write collection note for drivers H/O to agents: Send docs to agents Capture charges and inv agent When pd – change agent name in Impatex Agent clears and coll from us If storage, agent pays COD 1 Too many uncontrolled buffers Driver fills vehicle log-collects Update GSU with DTB C/N 1 W/H check in Frt arrives back to w/h C/N rtnd – key manf to Impatex (stat 1) Update GSU with ATA, OHD Enter charges in PLUS Close and file away See Gen Imp MIFA Lead time – Approximately 4 days

9. Case Study 1 Import Gateway– VSM After (2013) Shipment Information Shipment Information Origin LHR Hounslow Departments Outlook MOFS Impatex Excel Coastwise Re-nominations on Impatex Receive Consol Pouch & Separate Docs Create Invoice for Handover Create ERTS file (ERTS Process) Place in heijunka Box(ERTS Process) Set in Status 1 Retrieve P5 (ERTS Process) Key Out Release Notes on Impatex Create Storage Invoice Create Customs records in Impatex Create Airline Col Notice (ERTS Process) OFS Doc’s for General imports Consol on MOFS WI : 0008 WI : 0003 WI : 0012 WI : 0013 WI : 0016 WI : 0018 WI : 0009 WI : 0005 WI : 0004 WI : 0006 WI : 0007 WI : 0010 WI : 0011 WI : 0012 CT : 240 CT : 95 CT : 20 CT : 90 CT : 120 CT : 60 CT : 95 CT : 35 CT : 90 CT : 95 CT : 30 CT : 95 CT : 90 CT : 35 Version 2. 27/1/2014 Lead Time 1 – 4 Days

10. Case Study 2 Pull and One Piece Flow Office -MIFAs updated, buffer symbols added and improvement bursts added -Target MIFA for Import and Export processes created - List of constraints generated 10

11. Case Study 2 Pull and One Piece Flow Current Level: What was done Next Steps • Mirror warehouse kanban signal for TNT Import process • Re-cycle time TNT Export sort process and calculate savings • Mirror office kanban signals for Export department • Processes observed and MIFAs updated for warehouse (FM, CL and Inventory) and FM office • Model department (warehouse) TNT Exports: • Target MIFA produced (Volume Dependant Hours info not available) • Constraint list to achieving one piece flow generated • Kanban signal for sort process introduced • Model department (office) Import: • Target MIFA produced (24% Volume Dependant Hours) for import and export • Constraint list to achieving one piece flow generated • Kanban signals for shipments to be filed and problem customers introduced • Stationery re-order kanban system implemented and satellite stationery cupboard added to reduce walking distance • Evidence of buffer management in place • Kanban signals in place for warehouse processes • Considerable constraints towards achieving one piece flow exist in FM environment 11 Showcase Steering Committee Meeting – LHR

12. Agenda • Brief Overview Of LEAN & LEAN Values • What Is Value Stream Mapping & Benefits • Case Study Of Value Stream Mapping – Import Gateway (Transition) • Various Examples Of Value Stream Mapping • AOB

13. EXCEL Outlook Implement Monitor Evaluate Engage Negotiate Lead time : 1 to 9 Months Global / UK Procurement – Tendering VSM UK Procurement Suppliers Site(s)

14. Finance Operations – VSM Shipment Information Shipment Information LHR Hounslow LHR Unbilled LHR P&LN LCRVO/DFM Intercompany WI:LHR002 WI : LHR003 WI : DM004 WI : DM001 EXCEL CT : 300 CT : 600 CT : 240 CT : 600 OUTLOOK SharePoint / Shared Drive Lead Time 5 – 48 hours Cycle Time Seconds Version 2. 27/1/2014

15. Export Gateway – VSM Shipment Information Shipment Information UK Branches LHR Gateway CEVA Destination IMPATEX Navigator Outlook OFS Accounting MAWB Complete HAWB Splitting Docs Complete & Close MUCR Entry Receive Booking Instructions Create MAWB Post Flight & Navigator WI : 006 WI : 001 WI : 002 WI : 005 WI : 007 WI : 004 WI : 003 CT : 120 CT : 120 CT : 240 CT : 240 CT : 300 CT : 240 CT : 120 Lead Time 1 – 4 Days Cycle Time 1380 Seconds Version 2. 27/1/2014

16. IS&S VSM User IS&S Support Center User Outlook OFS New User Change User System Enhancement Request IS&S Ticket Closed IS&S Ticket Quarterly User Review Printer Creation Deleting Bookings General Ticket Support Unlocking Bookings Standards Change Request Change Control 16

17. 1. LEAN – Standardized WorkVisible Work Instructions Standardized work instruction sheet Standard description of procedure Process step number Description of the process step Each step is illustrated with a picture Revision control

18. Agenda • Brief Overview Of LEAN & LEAN Values • What Is Value Stream Mapping & Benefits • Case Study Of Value Stream Mapping – Import Gateway (Transition) • Various Examples Of Value Stream Mapping • AOB