Consulting Business Start-up Evaluation Progress Report #2

1. Consulting BusinessStart-up EvaluationProgress Report #2 EMMP Capstone Project Central Team 03/04/2003

2. Agenda: • Work Completed • Project Tools Created • Project Control Tools • Project Activities • Attention Areas • Summary • Next Steps

3. Work Completed: (Project Proposal from Report #1) Project Definition: Evaluate the start up of an engineering consulting business focusing on manufacturing improvements. • Deliverables include case study and business start-up analysis • Limited to 700 team work hours • Limited to $100 in expenses

4. Work Completed: (Current Project Proposal) Project Definition: Evaluate the start up of an engineering consulting business focusing on manufacturing improvements. • Change Notice 3 – Redefine the time and schedule for the Business Start-up Analysis. Time and Schedule change from 51.25 days to 59.5 days. New completion date is planned for 5/16/03.

5. Work Completed: (Schedule) Due to Change Notice 3, business case outline and schedule changed:

6. Project Control Tools: • Project Hours Spreadsheet (process owner - Jim Heimler) • MRCT - Master Revision Control Tracker (process owner - Tron Melzl) MRCT will be terminated by 3/04/2003. Project documents revision will be control on the team’s web page. • Change Notice Process (process owner - Tony Sciortino) • Schedule Update Process • Budget • Web Page - http://my.execpc.com/~tmelzl/ (process owner – Alex Sender)

7. Project Control Tools Created: • Budget • A $100 budget was set up at the beginning of the project for incidentals. • No budget forecast. • No spending to date.

8. Project Activities To Date:(Case Study) • As of Progress Report #1: • Chose, Researched, Analyzed, and Summarized Business Continuous Improvement Methodologies. • Summary • II. Processes • III. Deliverables • IV. Tools • V. Ease of Implementation and Sustainability in any Manufacturing Setting • VI. Miscellaneous

9. Project Activities To Date:(Case Study) • Continuing Case Study Work: • Established Research Conclusions • Identification of Core Continuous Improvement Methodologies (Lean Mfg. and Six Sigma) • All other methodologies should be considered as: • offshoot of “founding fathers” • a tool to assist with Lean Mfg. and Six Sigma programs • During research, realized ironic shift in Mfg. Sector towards Lean and Six Sigma as “Lean Six Sigma.”

10. Project Activities To Date:(Case Study) • Continuing Case Study Work: • Further Research Conclusions: • Lean and Six Sigma are complimentary but there are still more opportunities. • Led towards two additional research questions: • How can a company be certain that they are solving the right problem? • How could a company achieve extraordinary results with Lean or Six Sigma without an additional method to streamline creativity and innovation?

11. Project Activities To Date:(Case Study) • Continuing Case Study Work: • Development of AAR SIMPLE Methodology. • Best practices of Lean and Six Sigma. • Integrated TRIZ (Theory of Inventive Problem Solving) • Focus on • solving the correct problem (root cause identification methods) • creative and innovative solutions

12. Project Activities To Date:(Case Study) • Continuing Case Study Work: • Completed Case Study Deliverables • Detailed AAR SIMPLE Methodology • A full detail of the origins/development of the AAR SIMPLE Methodology • Introduction to SIMPLE Solutions and a detail of consulting Service Plans and Options • 8 step process flow detail with process outline and frequently used tools • Terms glossary • Bibliography

13. Project Activities To Date:(Business Start-Up Analysis) • Business Plan Outline for SIMPLE Solutions Limited Liability Company Completed • Company Start-up Summary Completed • Company start-up cost equal $26,925 • Company Ownership • Each individual will be entitled to 20% of the company and will be equally responsible for the company ownership. • Company location, Downtown Milwaukee, WI

14. Project Activities To Date:(Business Start-Up Analysis) • Company Product and Service Outline Reviewed. • Service Plan #1 SIMPLE Solutions will follow the AAR SIMPLE methodology through the Assess, Analyze, Redefine and Study steps. The resulting deliverables from Service Plan 1 are: • clear definition of the problem • full understanding of the “Critical to Quality” output factors (CTQ-Y’s) • project Solutions Document At the conclusion of Service Plan 1, the customer has an option of continuing with SIMPLE Solutions to the next service plan.

15. Project Activities To Date:(Business Start-Up Analysis) • Service Plan #2 Service Plan 2 is a continuation of the AAR SIMPLE methodology through the Investigate and Minimize steps. The resulting deliverables from Service Plan 2 are: • extensive statistical and experimental data analysis • a full understanding of the input factors (X’s) and relative importance of each • root casue(s) identified At this stage in the project, however, SIMPLE Solutions offers two different service plan options for the customer. Option 1: SIMPLE Solutions representatives will complete all required activities in the Investigate and Minimize steps. Deliverables are outlined above. Option 2: SIMPLE Solutions representatives will facilitate and train customer resources to complete all required activities in the Investigate and Minimize steps. Deliverables are outlined above. At the conclusion of Service Plan 2, the customer has an option of continuing with SIMPLE Solutions to the next service plan.

16. Project Activities To Date:(Business Start-Up Analysis) • Service Plan #3 Service Plan 3 is a continuation of the AAR SIMPLE methodology through the Perform and Lasting Effects steps. The resulting deliverables from Service Plan 3 are: • completion of the Implementation Plan • project performance review • a control plan for lasting effects.   At this stage in the project, SIMPLE Solutions offers the same two service plan options for the customer as outlined in Service Plan 2.   Option 1: SIMPLE Solutions representatives will complete all required activities of the Investigate and Minimize steps. Deliverables are outlined above. Option 2: SIMPLE Solutions representatives will facilitate and train customer resources to complete all required activities in the Investigate and Minimize steps. Deliverables are outlined above. • Future Services • Seminars, Additional Consulting,etc.

17. Project Activities To Date:(Business Start-Up Analysis) • Market Analysis • Overall Market • Geographic Area • Market Size • Market Segmentation • Company w/in Specific Industry Potential $ To Go After

18. Project Activities To Date:(Business Start-Up Analysis) • Market Analysis • Competitive Analysis • Major Competitors • Strengths & Weaknesses • Threats & Risks • Our Differences Potential Customers

19. Attention Areas: • Barriers To Overcome • Issues • UWM requirements • Deliverables for final presentation • Schedule • Close watch items, see if any further changes required to deliver on time.

20. Summary: • Time, Cost, Deliverables

21. Next Steps: • Completed Case Study Phase on 2/25/03 • Create real life example • Work on final presentation • Began Business Start Up on 2/3/03 • Continue progress on market analysis and rest of deliverables • Progress Report #3 scheduled 4/10/03.

22. Questions: