BT2 - Business Transformation Project Release 3 Executive Walkthrough May 5 , 2008

1. BT2 - Business Transformation ProjectRelease 3 Executive WalkthroughMay 5, 2008

2. Prospect to Customer

3. Prospect to Customer - Release 3 Business Requirements Prospect to Customer encompasses Lead and Sales Pipeline Management, Quoting/OI and New Customer Creation Sales Customer Master • Ability to initiate prospect creation when a lead is created • Ability to centrally store all Quality Cabinets prospects • Ability to have visibility to sales “pipeline” showing future sales volume • Ability to calculate win/loss ratio with competitor references by various parameters • Ability to standardize and track the qualification process • Ability to have a central repository for customer information • Ability to centrally store all customer information • Ability to maintain a flexible customer hierarchy • Ability to share addresses for multiple business purposes (Ship-To, Bill-To, etc.) • Ability to centrally store all customer attributes related to Order Management and Invoicing (Statement Preferences, Salesperson, Price list, etc.) • Ability to store attributes for business specific reporting requirements (BTA, Market, Customer Care Team, etc.) • Ability to centrally store credit information and place a customer on a credit hold

4. Prospect to Customer - Release 3 Business Requirements (cont’d) Quoting/OI (After Quality Construction Enhancement is complete) • Ability to integrate the OI and Quoting processes in one system • Ability to create a quote containing configured and discrete product across all brands/product lines and outside products (except Masterpiece) • Ability to quote a customer without an account • Ability to Import Designs (PlanIT & 20/20) • Ability to change factors at the plan and room level • Ability to have multiple price list years in one quote • Ability to have visibility to Quote status • Ability to Price Increase a quote by percentage and to adjust factors automatically • Ability to have the OI based on actual SKU’s quoted including installation and tops • Ability to track No Charge Changes • Ability to process all customers through the OI tool • Ability to escalate prices and costs to next year • Ability to utilize “What If” tool for Sales/Pricing to fine-tune prices/OIs • Ability to automatically load existing programs and costs

5. Prospect to Customer - Release 3Scope Business Processes • Qualify Leads and Manage Opportunities • Manage “Pipeline” Forecast • Create and Maintain Quotes and OI’s • Create and Maintain Customer Master Geography/Facilities/Departments • QID & Branch Sales Departments • Eastern and Western Contact Centers • Customer Financial Services New Account Coordinators (Adrian) • Marketing (Adrian Geo-demographics) Oracle Software Modules • Sales • Trading Community Architecture (TCA / Customer Master) • Quoting & OI Extensions (After Construction Enhancement)

6. Prospect to Customer - Release 3What’s NOT in Scope Sales • Consumer Leads for Dealer Customers • Oracle Sales Offline (Mobile Sales Application) • Oracle Trading Partner Management Module Customer Master • Automated customer setup process (until Quoting and OI are live) Quoting • Masterpiece product

7. Prospect to Customer - Release 3Sales Design Decisions Leads and Opportunities for all new Quality Cabinet trade customers will be entered into Oracle Sales Leads • All product inquiries or sales prospects for new trade customers will be initiated as a lead by Sales, Marketing, or Customer Service • Leads will automatically be assigned to Sales Representatives or Sales Management using geographic and brand parameters Opportunities and Sales “Pipeline” • All opportunities will have a forecast, no current customers will be included in the opportunity forecast • Sales Management will have summary and detail visibility to new trade customers • Predefined tasks have been established and embedded in the process to facilitate the Field Sales process

8. Prospect to Customer - Release 3Customer Master Design Decisions Customer setup will be initiated during the sales process and completed during the account creation process Account Setup • All customer setup approvals will remain manual until OI / Workflow Tool is available • New interim account setup form will be completed by sales • Faster customer setup process as most of the customer information will be entered during the sales process • Customer setup team will enter credit, collections, and transactional information • Quality Customers will be converted at go-live for each location • Customers will keep their existing customer numbers with the exception of duplicates. Legacy customer numbers will be stored on all Oracle records for cross reference purposes. Current Release 3 Process Design Book is available in eRoom

9. Dealer Channel Builder Channel Customer Account H Customer Account J OldenKamp Pulte Heather woods Bill to H J OldenKamp Merillat Bill to Pulte Heather woods Ship to Ship to Lot Ship to Bill to H J OldenKamp Ship to Lot QID Ship to Ship to Lot Ship to Ship to Lot Bill to H J OldenKamp Doors Ship to Ship to Prospect to Customer - Release 3Customer Master Design Decisions Customer structure represented using Oracle’s Trading Community Architecture (TCA)

10. Prospect to Customer - Release 3Quoting/OI Design Decisions Quotes/OI’s for Quality Cabinets customers will be entered using the future IntelliQuote after Construction Enhancement is completed. Quoting • Quotes may be created without a customer account • All quotes will need to have an Opportunity created before the Quoting/OI process can begin. • Sales will initiate the Quote/OI process by either accessing Oracle and entering information directly into Quoting tool or by completing the OI/Quote Worksheet and uploading the form into Oracle. • All Quotes/OI’s will be completed using Quoting tool • Quotes/OI’s will be work flowed automatically based on the status of the Quote/OI • All changes will result in a new revision of the Quote/OI • Users will have the ability to conduct a What If Analysis

11. Prospect to Customer - Release 3Quoting/OI Design Decisions OIs for Quality Cabinets customers will be entered using the future IntelliQuote after Construction Enhancement is completed. OI • OI processing occurs after quote detail is available • Thresholds for OIs to include upgrade steps as well as existing OI and factor thresholds • Utilize actual layouts to import SKU’s for true cabinet count, installation, tops and SKU information • Metreo tables to perform double duty – automatically load OI and Metreo Vision • Future structure to allow automatic approval of OIs (no Pricing up-front review) based on passing all thresholds and subject to audit rules • Include plan mix as well as product mix to improve quote/customer information • “What If” tool allows Sales/Pricing to adjust quote – automatically updates to live quote once decided

12. Prospect to Customer - Release 3Change Impacts Sales • Centralization of lead management in Oracle Sales regardless of source of lead • Sales Team • QID & Branch lead records (qualifying, assessment forms, and maintaining stages / statuses) will be managed in the Oracle Sales system • Sales process tasks (Geo-demographics recommendations, proposal changes, and approvals) will be managed using Oracle Sales • Leads assigned to Distributors, Dealers, and Representative Agencies will be managed and tracked • Interim account setup form will be completed until OI / Workflow Tool is available • Must access Oracle daily to identify all assigned leads • Users will sign on using their employee number (reports may have to be changed to see employee name) • Marketing • A Parent/Child Customer structure will be associated to a lead at time of lead creation • Geo-demographics analysis will be performed for new QID & Branch customers • Must access Oracle daily to identify all assigned tasks • New Account Coordinators • A high-level credit check and review with Field Sales will be conducted when a lead is converted to an opportunity • Must access Oracle daily to identify all assigned tasks

13. Prospect to Customer - Release 3Change Impacts (cont’d) Customer Master • All customers will have accounts and a generic “Miscellaneous” customer will not be utilized even for cash in advance customers • All new Quality Cabinet customer accounts will be created in Oracle?? Quoting/OI’s • Prior to Quoting/OI Process an Opportunity needs to be created • OI Approval Process occurs in the middle of the Quoting process – no longer in Excel • Quotes will not be converted into the future Quoting Solution • Designs will need to be converted to the new model level nomenclature • All customers will be processed through the OI Process • Quote revisions will flow through the OI Process • All Changes to a Quote or OI will cause a revision • Sales, Pricing, New Account Coordinators and BSC’s will receive workflow notifications

14. Order to Cash

15. Order to CashRelease 3 - Business Requirements Order to Cash uses the Lot Management and Dealer Order Entry Extensions for Order Management, Standard functionality is used for Pricing and Receivables Order Management • Ability to accept EZ-Cab orders as well as enter orders manually for QID customers until EZ-Cab replacement is available • Ability to manage a street address (aka Lot) including pre-order activities and manual order entry • Ability to acknowledge entry of order as well as acknowledge ship dates • Ability to double check and allow changes prior to booking order • Ability to price orders automatically • Ability to group orders by Truck ID • Ability to track Builder Models & Lots Remaining per Subdivision • Ability to send and receive information from OTM • Ability for Customer Care to create all new ship to sites as needed • Paper Sales Order Acknowledgement will have both old and new doorstyle nomenclature and can be sent either fax or email. EDI acknowledgements will only have new nomenclature.

16. Order to CashRelease 3 - Business Requirements Order Management (cont) • Ability to calculate ship and request (arrival) dates based on product and customer combinations • Ability to plan branch shipments from plants in truckload quantities • Ability to match the external sales order to the replenishment order (plant to branch) and capture the ESO information on plant paperwork • Ability to level load the plant and track how many times we have pushed the order • Branches will have two inventories (bone pile and service parts) • Spoke branches and Chicago will not be inventory organizations • Ability to recognize revenue at time install is complete but still invoice when builder requirements are met

17. Order to CashRelease 3 - Business Requirements Pricing • Ability to honor current list pricing to customers • Ability to apply discounts based on existing customer pricing groups • Ability to price based on customer-selected configurator product attributes post go-live • Ability to maintain multiple pricelists • Ability to create SOX audit reports for list prices, discounts, order price overrides and customer pricing groups • Ability to apply freight charges based on new standardized program • Ability to export and import prices for price increase or new product implementation • Ability to automatically move customers to appropriate pricelist at price increase implementation • Ability to price based on driver models and SKU relationships within specific pricing categories

18. Order to CashRelease 3 - Business Requirements Accounts Receivable • Ability to generate and send a standardized Customer Statement via fax or email • Ability to generate and send a standardized Customer Invoice via fax, email, or EDI which will have both old and new product nomenclature • Ability to process credit memos efficiently and effectively utilizing a workflow driven system • Ability to support a Centralized Billing Team • Ability to process Cash In Advance Receipts • Ability to automatically generate Receivables reports currently produced manually • Ability to apply funds to Customer Invoices and identify unapplied Cash Balances • Ability to Short Pay and Over Apply funds to Invoices • Ability to create Invoice Adjustments that require approval before they impact customer balances • Ability to place a Customer on a Credit Hold • Ability to have automatic credit check at the time of order entry • Ability to charge sales tax for taxable customers

19. Order to CashRelease 3 - Scope Business Processes • Create and Maintain Sales Orders, Create ship-to sites, and Apply and release holds • Create and Maintain Price Lists, Customer Discounts and Option Based Pricing Attributes • Manage Accounts Receivable Geography/Facilities/Departments • Quality Cabinets – Mt. Sterling, KY, Duncanville, Texas, All Branches selling Quality brand • Customer Financial Services Representatives – ECC & WCC • Customer Care Consultants – ECC & WCC • Pricing and Billing Teams – Adrian, Michigan Oracle Software Modules • Oracle Order Management, Lot Management Extension, Dealer Order Entry Extension • Oracle Advanced Pricing • Oracle Accounts Receivable

20. Order to CashRelease 3 - What’s NOT in Scope • Pre-Configurator and string interpreter extension • Rebates – Trade Management Module • Data warehouse/Business Intelligence • Automatic Application of Cash Receipts to Customer Invoices using Lockbox or EDI interface • Auto Upload of Receipt Applications • WIFOE • Masterpiece Ordering • Converting Quotes to Orders (postponed until after Construction Enhancement) • Systematically managing Customer’s Schedules & Changes

21. Order to CashRelease 3 - Design Decisions Order Management transaction type workflow will be customized to include all customer - specific order flows Order Flow • QID Customers will be able to continue to order through EZ Cab • Builder Customer Care Consultants will enter and double check orders via Lot Management • Order Management will automatically check Branch Inventory for those orders being cross docked • Dealer Customer Care Consultants will enter orders via Dealer Order Entry Extension • Draft and Final acknowledgments will be automatically EDI’d, faxed or emailed to customers and can be reprinted manually as necessary • Imported orders (EZ Cab, Lot Mgmt & Dealer OE) will come into Oracle Order Management at a Booked status. • Minimum order changes can be made after the order is booked such as dates. • Plant to Branch orders must be grouped in truckload quantities and must tie directly to ESO Current Industry Print is available in eRoom

22. Order to CashRelease 3 - Design Decisions Pricing for Quality Cabinets will be maintained in Oracle Pricing • Maintain multiple price lists for current and previous year; multiple years going forward • Price list will default from customer master • Customer discount group will default from customer master • Option-based pricing will be set up using formula and factor (attribute) lists in Oracle Applications post go-live at next pricing opportunity • Each model will be priced using SKU relationships, driver models and pricing categories • Existing customer list pricing will be converted (programmatically) to Oracle and set up as discrete lists? • Freight will be applied as a charge on the sales order line based on location from assembly plant and order volume by ship date Current Release 3 Industry Print is available in eRoom

23. Order to CashRelease 3 - Design Decisions Invoices will be created in Oracle and cash will be manually applied Receivables • Revenue will be recognized immediately upon invoicing for Dealers and delivery only Builders • Revenue will be recognized when installation is complete for Builders • Standardized Statement can be used for all brands • Manually create deductions with approval workflow • EDI (810) Invoice for customers requiring it • Over Application of Invoices to assist Collections team • Invoice includes same attributes as Sales Order Acknowledgement • Manual conversion for Open Receipts, CMRs, Deductions, and Back Charges • Automated conversion for Invoices and Credit Memo balances Current Release 3 Process Design Book is available in eRoom

24. Order to CashRelease 3 - Change Impacts The biggest changes are… • Limited changes can be made after orders are booked • Merillat Brand and Quality Cabinets Brand changing nomenclature • Order Numbers will not be limited to six digits • Users will sign on using their employee number (reports may have to be changed to see employee name) • Pricing restructured to attribute-based and resulting price changes – post go-live • Pricing groups will be used to group modifiers rather than each customer having their own record • Freight will be based on distance from main plant and shipment size for Dealers/Distributors • Billing Team will be located in Adrian • BCG will utilize one bank (PNC)

25. Schedule to Install

26. Schedule to InstallBusiness Requirements Requirements have not significantly changed from Vision Schedule to Install • Ability to schedule installs and service across multiple days • Ability to view technician install schedules systematically • Ability to grade installer • Ability to perform installation updates in one system • Ability to have one source for data collection and reporting of OTC & TTF • Ability to generate management reports • Ability to track profitability by lot or subdivision • Ability to produce a report confirmed installs that are happening farther than 1 day out • Eliminate the need to manually calculate box counts

27. Schedule to InstallWhat’s NOT in Scope • Installer Pay • Mobile Field Services

28. Oracle Software Modules • Oracle Field Services Schedule to InstallScope Business Processes • Schedule to Install • Manage Resource Schedules • Manage Service Workload • Manage Task Completion Geography/Facilities/Departments • Western & Eastern Contact Centers • Branches • Tampa • Orlando & Denver • Dallas, Houston, Phoenix and Las Vegas.

29. Schedule to InstallDesign Decisions Lot Management plus Oracle Field Service replaces SAM Schedule to Install • Chose Oracle Field Service over MCS Schedule to Dispatch extension • Schedules Resource not trucks • Closer match to SAM • Auto creation of Measure, Installation and Install w/Tops Service Requests • Based on triggers from Lot Management • OTC & TTF Reports will be Combined & Calculated Automatically • Revenue recognition will be tied to status changes within Installation and Installation with Tops tasks • Status triggers will be Installed and/or Installed & Complete on the install task. • Resource recommendation based on market, zone and installation grade • Grade definition will be determined by the markets uniqueness Current Release 3 Process Design Book is available in eRoom

30. Schedule to InstallChange Impacts Change Impact • Field Service with Lot Management = SAM • Resource scheduling on a calendar within the system. • Ability to handle multiple resources to a single task and/or multiple days installs • Resource recommendation based on task type and grade • Revenue Recognition at Installed or Installed & Complete • OTC and TTF will be automatically calculated • Deliver only markets will use Field Service for service trips

31. Transportation and Logistics

32. Transportation and LogisticsBusiness Requirements Requirements have not significantly changed from Vision Transportation Planning • Ability to plan LTL and truckload and multi stop truckload shipments • Ability to plan shipments to and from 3rd party cross docks • Ability to automatically send out freight tenders • The ability to auto accept tenders • The ability to be integrated with Oracle EBS • The ability to send information to one 3rd party freight payment company • The ability to see open AP

33. Transportation and LogisticsScope Business Processes • Transportation and Logistics • Manage Transportation • Manage Logistics data • Measure Logistics Performance • Manage Freight Audit and Accruals • EDI communications with carriers • MNFC codes used for LTL carriers Geography/Facilities/Departments • Masco BCG plants – outbound and interplant shipments • Branches – outbound shipments Oracle Software Modules • OTM

34. Transportation and LogisticsWhat’s NOT in Scope • Inbound logistics

35. Transportation and LogisticsDesign Decisions OTM for Quality Cabinet Plants consists primarily of outbound truckload shipments and some inter-plant shipments OTM • Will be integrated with EBS • Consolidation to one 3rd party freight audit company • Optimization for internal and external order shipments Current Release 3 Process Design Book is available in eRoom

36. Transportation and LogisticsChange Impacts Change Impact • All Quality Brand transportation planners will need to be trained • Transportation planning will move to a more automated process and will follow plant level loading • Cycle ship customers can be set up to automatically place orders on correct day of the week • New process in which carriers will communicate tender information.