LSG Impact Analysis

1. LSG Impact Analysis Multi-site Impact of LSG Baan Master Data Usage

2. In November, We Reviewed the Charter for the Multi-site Team and our Relation to Baan Initiatives • Increase efficiencies in future site implementations • Increase alignment to strategies and business requirements • Higher visibility of business information for the organization • Greater return on IT investment as more and more sites adopt the governance model and implement the solution • Higher clarity in downstream communications • Increase operational efficiencies and lower risk of error in business process execution • Lower risk of IT rework

3. The Team Goals Include a Look at Current LSG Baan Architecture and Configuration Plans • Define multi-site requirements, capabilities and functional fit/ gap • Define architectural plan and shared table matrix • Define key data management rules – master data and parameters • Implement standards and communications tool for use by all team members • Define best practice recommendations for business • Confirm future rollout scope and effort • Assess impact to current endeavors (e.g. LSG Project)

4. LSG Impacts Come From Three Related Multi-site Deliverables • Baan Architecture Plan – Complete • Data Management/ Master Data Analysis – Complete (results presented within this presentation) • Table Sharing Model – In Process

5. Master Data Analysis - Overview The Multi-site Team has reviewed 40 key data elements from four separate Baan instances (LSG, CDG, Germany, Italy). Below is a breakdown showing whether or not LSG should consider making a change to the naming standard and/or data set. As well, particular consideration was given during the analysis to the Bio-Rad global multi-site capability assessment, initial table sharing plans, and multi-site best practices for Baan.

6. No Change SuggestedTable List The naming convention for these tables should be adequate for Bio-Rad globally. A global data set is not necessarily defined at this point functionally, but LSG should go-forward with its plans without fear of re-migration.

7. No Change SuggestedTable List (cont’d)

8. Change SuggestedTable List The ten tables below should be reviewed by the LSG team in light of the multi-site recommendations documented in the following slides.

9. Table tccom130 LSG Usage 9-digit numeric, starting at 700000001. Based on ADD Number Group. Change SuggestedAddresses Recommendation • Create convention that minimizes risk of duplicates in a shared environment. 2-digit country code, plus 3-digit site code, plus 4-digit counter for internal Bio-Rad Addresses. • Business Partner Addresses should follow Bus. Partner conventions on next slide.

10. Table tccom100 LSG Usage Migrated customers will use same numbers as BOSS (to accommodate Clarify and BV interfacing). Customers start with 7 for new numbers and pick up where migration left off. Suppliers begin with another digit (8) and have numerical sequencing. Recommendation Recommended convention is 1-digit alphanumeric plus 8-digits sequential numeric. The above would work independent of suppliers and customers as per Baan best practice. Migrated customers should not use the same number. We should plan on building a translation table for Clarify/BV interfaces or re-migrate. Much work will be required for future Bio-Rad shared model (use of Interim Table and DM Tool). Change SuggestedBusiness Partners

11. Table tcccp010 LSG Usage 4-char alpha Based on Manufacturing Groups. Five entries: CHEMDISTINSTSERVSTD Recommendation Use a convention with 6 characters. 1st, 2nd, and 3rd char to indicate site (LS1). 4th, 5th and 6th char sequential numeric (or we can use one digit for manufacturing group like in Item Groups). This helps to distinguish in a shared environment. Change SuggestedCalendar Codes

12. Table tdpur097 LSG Usage No specific convention followed. 6-char alpha abbreviations apparent. Recommendation Should standardize in order to consolidate statistics on changes. Suggested use: 6 char alphanumeric. First 2 char indicating the function such as Planning (PL), Sales (SL), Purchasing (PU), etc, and the 3rd through 5th char indicating the type of change reason. Examples change (CHG), delete (DEL), and the last a numeric counter for sub-categorizations that may be required Change SuggestedChange Reason Code

13. Table tdsls097 LSG Usage Single entry: CUST - Customer Request Recommendation Should standardize in order to consolidate statistics on changes. Suggested use: 6 char alphanumeric. First 2 char indicating the function such as Planning (PL), Sales (SL), Purchasing (PU), etc, and the 3rd through 5th char indicating the type of change reason. Examples change (CHG), delete (DEL), and the last a numeric counter for sub-categorizations that may be required Change SuggestedChange Reason Codes

14. Table tcmcs065 LSG Usage Mostly 3- and 4-digit alphanumeric Alpha abbrev. + numeric identifier For work centers, 1st char indicates the group such as Instrument, Chemicals, etc, 2nd, 3rd indicates the work center such as 01 for EM1, 02 for EM2, etc, and last 3 char indicates Assembly, Packaging, Testing ,etc., with a running number from 001 thru 999. For all other departments such as Accounts, Purchase, Sales, the first alpha is taken followed by 3 numeric running digits such as A001 - for Accounts. Recommendation Need standard nomenclature for multi-site. 1-digit for type of department is okay but need 2 or 3-digit site code, plus 2-digit numerical counter. The convention should include Work Centers, Warehouses (see next slide), Purchase and Sales Offices to accommodate shared environment. Change SuggestedDepartments

15. Table tcmcs050 LSG Usage Varied usage by FFN. Basic segmentation is by Division/Manufacturing Group. Recommendation LSG segmentation appears to be desirable in most cases, however, we need to plan on this data element to exist in a shared environment. Ideally, we would like to add a 2 or 3 digit site code in the first positions of each FFN to segment data in a shared environment. Change SuggestedFirst Free Numbers

16. Table tcmcs003 LSG Usage 6-digit alpha-numeric Warehouses and Offices listed in this table with distinct naming conventions. Recommendation Need to use 2 digits for site code to accommodate shared environment. The requirement here is the same as for Departments. Need to discuss proposal for use of site code identifiers in naming convention. Change SuggestedWarehouses

17. Table tfgld008 LSG Usage In Progress Recommendation A Corporate Rollup Structure for the Chart of Accounts has been proposed and is currently under review at Corp. We recommend LSG proceed with this structure. Change SuggestedChart of Accounts

18. Table tfgld010 LSG Usage In Progress Recommendation Agreement has been reached on usage of Dimensions at Corp and the descriptions have been provided to LSG. The requirement has also been raised by Corp to have a standard Rollup Structure for Departments and Divisions (2 of the Dimensions). We are still working on this detailed definition to implement at LSG. Change SuggestedDimensions