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Todays Roadmap

1. Inside Output: Making Quality Statements

2. The Management System

3. Begin With the End In Mind

4. The Standardization Tool

5. The Improvement Engine

6. Putting It All Together

7. The Dual Function of Work

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Who is DST Output?

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DST Output

High volume experience and capabilities

Comprehensive servicesInnovation and recognitionSize and stability

A top outsourcer of print and electronic customer communications

HARTFORD, CT

EL DORADO HILLS, CA

KANSAS CITY, MO

TORONTO & OTTAWACANADA

BRISTOLUNITED KINGDOM

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DST Output: High volume

experience and capabilities2.6 billion customer communications annually

Largest third-party First-Class mailer in U.S.

Worlds largest inkjet systems printer

Large scale facilities in key regions:East, West, Central, Canada and UK

Nearly 3,000 North American associates

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The Company We Keep

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DST Output Business

Output Options

Fold, Collate, Insert

Envelopes P r i n t

PresentmentPayment

Distribution E l e c t r o n i c

Address Express

Move Update

Mail Tracking, Processing P o s t a l File & Data Management

Design and Development

Campaign Management

Online Reporting

Monitoring

Disaster Recovery

Distributed Printing

A Common Platform

Market expertise in Communications, Financial Services, Insurance,Healthcare, Utilities and more

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Customer Platform

Optimizingclient outputrequirements Output Media Router

Data Receipt &

Management

Data Prep Campaign

Manager

Content

Composition

Document

Formatting

Requirements Gathering

ManufacturingSystems

Optimizing printand electronic

costs

InFact, Mfg Preparation,Execution & Control

eSolutions, Web Presentment,Payment & Distribution

Quality ValidationJob Release

TrackingReporting

eSolutionsCD/DVD

Presentment

CD / DVDOutput Delivery

Marketing,Ops, CSR

Consumers CSR,Intermediaries

DSTCustomer

Portal

Mail Delivery, Website,Secure e-mail, Portals

Client Data Files

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Operations Process

Fan FoldStack Cart

InsertInserter

Pkgfeeder

collatecutter foldmergesheetfeeder

Statement Assembly

Automated Container Line

USPS

InsertInserter Outstacker to

Mail Conveyor

Flats andSpecial Handling

Manufacturing System Control

Customer Data

FileReceipt

& Mgmt

Data Prep Ancillary Products

Formatting

AFPMetacode

Tracking and Reporting

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LEADERSHIP

STRATEGY

CUSTOMER &MARKET FOCUS

WORKFORCEFOCUS

PROCESSMANAGEMENT

RESULTS

MEASUREMENT, ANALYSIS & KNOWLEDGE MGT.

ResultsTriadLeadershipTriad

Bicycle System

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The Baldrige Award enjoys very broad, positive recognition amongleaders in each of the Baldrige Award-eligible sectors. ... More than 70percent of leaders surveyed among Fortune 1000 companies said they

are likely to use the Criteria for Performance Excellence.

Booz Allen Hamilton

Results: Better employee relations

Higher productivity

Greater customer loyalty Increased market share

Improved profitability

The Baldrige Framework

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What is Business Excellence? Business Excellence is a strategy that makes

quality an integral part of the way business is

designed Goes beyond the quality of products and services,

and takes on a broader meaning of maximizing theeffectiveness of the business in meeting orexceeding customer value expectations and usingcontinuous improvement to drive business results

It is the total quality of how the business operatesas a system.

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B EGIN WITH THE END IN MIND

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Key Excellence Indicators:Leadership

Communication of and role model for the

organizations values Legal and ethical behavior

Focus on learning at all levels of the organization

Good citizenship

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Traditional Thinking that

Drives Complexity Blanket solutionsManagers believethey know all

Focused on thefinal result, noton the means

Result-oriented

Knowers FragmentedThinking

Fragmented actionsLack of organization

wide strategy

Defensive Command& ControlFailure is notallowedEmployees feel

the need to justify

their actions Metrics and status reportsused as the primarymanagement tool 22

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Lean Thinking Drives Continuous

ImprovementLets identify theproblem and solve it togetherManagers are learnersand partners

Focused on themeans to achievethe results

Process and peopleare aligned toachieve organizational

goalsEngagingCreate an environment

where it is OK to fail and

experimentation is

encouraged Go See

Mentor people todevelop problem solvers

19

SystemsThinking

ProcessOriented

Leader asa teacher

Learner

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2020

Begin with the End in MindStrategy is the path for attaining the vision

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Key Excellence Indicators: StrategicPlanning

Balance of short- and long-term views

Aggressive goal setting Strong work system alignment with strategy

Systematic approach to addressing all sources ofrisk

Failing to Plan is Planning to Fail

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The Plan framework

Vision: We are the premierprovider of statement and

billing output solutions

Mission: Make every customerreference-able

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Our Strategic Goals Grow revenue and profitability

Improve customer and alliancesatisfaction

Achieve standardized infrastructureand tools across centers

Continue operational excellence

Institutionalize continuousimprovement

Develop high-performance culture

Institutionalize continuousimprovement

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S trategic Planning Category

Continueinstitutionalizingcontinuousimprovement

NGT 1 ppmincidents .72

G

Jan 1.01 April 1.32 July - .32Feb 1.05 May .57

Aug - .58Mar .37 June .52 Sept - .54

Hodlin

Restructure ELDP(Executive

LeadershipDevelopmentProgram)

Project PlanMilestones Q4 2009

G

Q2 finalize research for new content (6/09 on target)research phase on target

Q3 researching more content options with budget proposal to MCQ4 build content structure; assessment on target/2010 ELDP in proposed status in budget due to largefocus on training from Quality Culture both nationallyand KC pilot program.

Sutherland

()

Project PlanMilestones

Q1 2009(measures

through 09)G

Q1 - Complete curriculum build completeQ2 Rollout/Announcement to CS Department

CS managers & above training , curriculum in completeQ3/Q4 - Quarterly feedback; Q3 reminders andmanager documents shared with user. Planningmeeting schedule .Hand off meeting for maintenance on target.

Sutherland

Lower Costs and improve efficienciesImprovecommingling

profitability

$X profit$Y InFactrevenue

$Z legacyrevenue

x Profity InFactz Legacy

G

Profit. .InFact Revenue.Legacy Revenue. Salls / Tapke /Mason /

Sunset legacyapplications andcontinue toimplementstandardized

processes acrossOperations

Project PlanMilestones

&Audit non -

conformance toMPTQMinternal &

external audits

Met or Not G

MPTQM internal audits meet requirements EastUSPS audit scheduled for July passed.MPTQM internal audits meet requirements WestUSPS audit scheduled for AugustMPTQM audits meet requirements Central USPSaudit scheduled for Nov.17 of the top 20 TA2000 clients have migrated,remaining 3 planned; 50 additional client applicationsidentified and prioritized. MPTQM internal auditsmeet requirements.

Carnesecca /Hodlin

Optimize real estate

utilization Annualizedsavings $500K 124% YTD G

Hill top cafe building has been closed and lease was

terminated as of .YTD savings through end of Sept are approximately$620K.Associates have moved out of Crown Colony buildingin .

Burns

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Rolling Out Continuous

Improvement Exceed customer expectations

and drive results

Dual Function of Work Daily Work andImprovement Work

Strategy based BaldrigeCriteria for PerformanceExcellence

Six Sigma & Lean driveprocess improvement

ISO 9000 (MPTQM) to enablestandardization of processes

CMMi and TMM used toidentify development

improvement levels andopportunities

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Performance Indicators

Deliverables

Key Result AreasFinancial Deliverables-First Time Quality-Organizational

Effectiveness-Customer Satisfaction-Market Share

Strategy

VisionWhere is the organizationgoing?

How do we get there?

What do we need todo well to achievethe strategy?

How do wemeasurehow wellwe aredoing?

Strategy Deployment

27

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Key Excellence Indicators: Customer Focus

In-depth market knowledge and forecasts

Consideration of needs of current and potential

customers

Proactive customer contact

Multiple mechanisms to identify customer requirements

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Market Knowledge and Forecasts

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Key Excellence Indicators: CustomerFocus

Focus on enhancing customer relationships andloyalty

Effective and prompt resolution of complaints

High levels of customer satisfaction and repurchase

Overall Satisfaction

2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9

Likelihood to Recommend

2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9

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Key Excellence Indicators:

Measurement, Analysis, andKnowledge Management

Use of fact-based decision making

Collection of actionable data

Use of multiple aligned and interlinking measures

(internal and external) Wide deployment and accessibility of data and

information

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Key Excellence Indicators:

Measurement, Analysis, &Knowledge Management

Strong analysis capability Benchmarking of best-in-class processes and

results

Reliable, secure, and user-friendly systems

Organizational knowledge captured and sharedinternally and with key partners and suppliers

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Selecting Metrics The Formula

UnderstandEvaluateControlPredict

Attribute Of The EntityThe

InOrder

To

Goal(s)To

To Evaluate The

% Of KnownDefects CorrectedDuring Development

InOrder

To

Correct AllDefectsBefore

Shipping

Example

Running an organization is like

driving a car. You need thecorrect metrics to ensure youare on track towards meeting thegoal.

36

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Metrics Car Analogy

Odometer

Voltage Regulator

Speedometer Coolant TempTachometer

Fuel Gauge

Oil Pressure

Customer SatisfactionCustomer FeedbackCustomer Inquiries

Releases to ScheduleRequirements

Associate SatisfactionSelf-assessment

EfficiencyStandard Op. Procedures

Bugs per release/developer Tools

Development ReworkRepeat BugsErrorsFaultsFailures

Performance to BudgetResourcesTraining

Performance to Strategic GoalsMeasurements over timeCMMSDLCDST AuditSAS 70Self-assessment

Systems UptimeNetwork metricsSystem Response

Which are In-Process Measures?Which are Lagging Indicators?Are there Leading Indicators?

37

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Software SURVEY ANSWERS MAPPED TO CMM - TMM Model

38

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Results

39

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Results (contd)

40

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Key Excellence Indicators: WorkforceFocus

Recognition of your workforce as internal

customers Strong commitment to workforce satisfaction,

motivation, well-being, and morale

Reward system related to key organizationalchallenges and organizational performance

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OSHA Recordable RatesActual to Date = 2.4

Overall Goal = 4.0Rate is per 100 associates / year

1.60.02.04.06.08.0

10.012.0

WEST

1.4

0.02.04.06.08.0

10.012.0

CENTRAL

4.6

0.02.04.06.08.0

10.012.0

EAST

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Key Excellence Indicators: WorkforceFocus

Commitment to training, education, and

development Links between individual and organizational

learning

Empowered workforce members

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Transforming Culture Goal: Provide middle management with the

skills to begin the transformation toinstitutionalizing continuous improvement

Why?- Leaders must create the culture

Middle management leaders are closestto the daily work

- 4 components to culture Experiences: Foundation of the culture Beliefs: Experiences form the beliefs; beliefs

people hold about what they should do and howthey should do it drive the actions they take

Actions: Those actions produce the resultsthey achieve Results: Results achieved from experiences,

beliefs, and actions produce results, and formthe culture

Culture

Experiences

Beliefs

Actions

Results

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Alignment Experiences, Beliefs, and Actions must be aligned to achieve

new results

Avoid saying and doing things that put the culture out ofalignment

We can more significantly and permanently improve resultsby working at the level of associates beliefs

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The Vision: Dual Function of Work(Institutionalize Continuous Improvement )

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

IR

I

R

I

R

I

R

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Managementattention

Managing Resistance

Critical mass

Managementattention

Forcing Change

Increasingresistance

IncreasingcooperationNeutral

Increasingresistance

Increasingcooperation

Neutral

Early adopters

Traditional Situation

Anchordraggers

"UncommittedMass"

Strong pull

from earlyadopters

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Key Excellence Indicators: ProcessManagement

Well-defined product/service, business, andsupport processes

Focus on work systems and processes that createvalue for all key stakeholders

Quality designed into products, services, andprocesses

Focus on continuous improvement, cycle timereduction, innovation, and productivity

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Requirements ABCD

Design ABCD

Construct ABCD

Test ABC DDeploy ABC

Waterfall = One Big Bite

Opportunity cost ofStaff during project ABC

B

u s

i n e s s

V a l u e

Months 1 2 3 4 5

Scope:ABCD

Cut D? Ok.Change A,C?Too late.

How familiar is this?

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IterationsWaterfall

Stable requirements

Established technology

Few deployment windows

Can tolerate longer ROI

Dynamic requirements

Emerging technologies

Few or frequent deployment

Need for faster ROI

When to use which?

Effort to fix defects

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Effort to fix defects

20 Production

UAT16

Enterprise Test

12

System Test

8 Unit Test

Development Cost to fix increases4

Tech Design

Requirements 0

Lifecyc le Source:NIST

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S Q D C Board

Visual Management

Dayshift 1 23 4

5 6

7 8

9 10 11 12 13 14 15 16

17 18 19 20 21 22 23 24

25 26

April27 28 Green = Safe Day

Clyde Yarbro29 30 Orange = Near Miss

Month:

31 Red = First Aid or.... Recordable Injury

Owner:

1 2 3 4 5

6 7 8 9 10 11

12 13 14

15 16 17

18 19 20

21 22 23

24 25 26 27 28 29

30 31

1 2 3 4 5

6 7 8 9 10

11 12 13

14 15 16

17 18 19 20

21 22 23 24 25

26 27 28 29 30 31

S Q D C 6S

Measure

Analyze

Improve

Safety Quality Delivery Cost 6S

Counter measures

Daily6S Audit

Counter measures

Counter measures

Counter measures

Counter measures

1 2 3 4 5

6 7 8 9 10 11

12 13 14 15

16 17 18

19 20 21 22

23 24 25 26 27 28

29 30 31

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5858Slide 58

Visual Performance Tracking

Associates track and report theirown performance

SQDC board is a tool that enablesall to participate

Countermeasures (improvements)are listed to show problemsolving activities

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T HE STANDARDIZATIONTOOL

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Maturity Level Impact

CMM Level Process Maturity (Characteristic) Rework(% of Total Development)

Product Quality(Defect Density)

1 Immature50% or greater Double digit

2 Project Controlled 25% - 50% Single digit

3 Defined Organizational Process

15% - 25% 0.X

4 Managed by Fact5% - 15% 0.0X

5 Continuous Learning andImprovement

5% or less < 0.00X

Process Maturity vs. Rework Cost and Defect Rate 2

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- ISO 9001 (MPTQM *) Requirements

- The standardization tool- Turns tacit knowledge into articulated knowledge

* MPTQM (Mail Preparation Total Quality Management Program) combines:

- Malcolm Baldrige Performance Excellence Criteria- ISO 9001 Requirements

- Total Quality Management (TQM) Concepts

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ISO 9001 Standard-The Basics Generic- means that the same standard can be applied to any

organization , large or small, whatever its product or service, in any

sector of activity , and whether it is a business enterprise, a publicadministration, or a government department.

Management system standards- provide a model to follow in settingup and operating a management system. This model incorporates thefeatures on which experts in the field have reached a consensus as beingthe international state of the art.

The Plan Do Check Act (PDCA) cycle- is the operating principle

of ISO's management system standards. The Standard-Do-Check-Act (SDCA) cycle- another operating

principle of ISO 9001, for standardization of processes until changedthrough a PDCA cycle

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PLANDO

CHECK ACT

DO

CHECK ACT

Institutionalized Continuous Improvement

Dual Function of Work

Improvement Daily

PDCA & SDCA

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T HE IMPROVEMENTENGINES

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The Business Excellence Maturity Model

Launch, TrainMgt., BuildInfrastructureTrain BB,Initial Projects

6S, VSM,Lean Cert.,

Kaizens,expand into

softwaredevelopment

RefresherTraining;Improved

GBtraining;Harvestprojects

Expandtraining: GB,

BB, Lean Accelerate

projects,Material

LeanInitiative

BurningPlatformlaunchesBusinessExcellence

KeyGoals

Generate Enthusiasm

Demonstrate Success

Accelerate Benefit Delivery

Make Improvement Sustainable

Align Improvement With Strategy

2004 2005 2006 2007 2008

Decision toexpanddeployment

LSS results linkedto strategies Decision to Lead withLean and Follow withSix Sigma

Expand to Company WideBasis

2009Lead with

Lean,Follow

with SixSigma;expand

into clientservices

6S, VSMdriven

projects;expand intoother non

productionprocesses,

expand leantraining

Dual Function of Work-DNA

Shift Responsibilityto Process Owners

h f

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6666

Lean Six Sigma is the Integration of TwoPowerful Business Improvement Approaches

Lean

Speed+Low Cost

Goal- Reduce waste andincrease process speed

Focus- Identify non-value addedsteps and cause of delay

Method- Kaizen events

Lean Speed Enables Six SigmaQuality (Faster Cycles of

Experimentation/Learning;Simplified Processes)

Six Sigma

Variation+Quality

Goal- I mprove performance on CriticalCustomer Requirements

Focus- Use DMAIC with Quality tools toeliminate variation/ improve levels

Method- Management engagement,dedicated Black Belt resources, GreenBelts

Six Sigma Quality Enables Lean Speed(Fewer Errors Means Less Time Spent

on Rework)

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Customer-defined value

Map andunderstand

value stream

Make valuestream

flow

Continuousprocess

improvement

Goals: Increase productivity Eliminate waste Maximize resourceutilization

Waste includes Scrap Rework Inspection Inventory Queuing time Transporting materials

or products

Redundant motion Anything for which a final

customer would not want topay

Leanis focused on the elimination of all nonvalue-adding

activities and waste from the organizations processes.

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What Lean Is:

A methodology for improving cycle times and qualitythrough elimination of waste

Waste sometimes called muda

Differentiates between value-added and non-valueadded activities

Value defined in customer terms

Lean techniques allow sustained operations withreduced resource and cycle times

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Focus: Visibility, Velocity, Value Visibility (Transparency, Visual Control)

Broadens awareness of problems.

All hands on deck urgency to resolve. Velocity (Flow)

Concentrate on speed of delivery

Improve responsiveness to customer demands

Value (Opposite of Waste)

Focus on value-added activities

Remove other (wasteful) activities

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Value Added Activities

Something the customer iswilling to pay for!

Transform raw material orinformation to meet customerrequirements. Transforms form,fit, or function.

Done right the first time.

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Non-Value Added Activities(Waste)

Consume time, resources, space

No value added to customer Doesnt contribute directly to customer deliverables Not done right the first time

WANT NEED

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Conceptualtraining on:

Project-SpecificTraining

Measure &

Analyze CurrentWork Process

FormulateProcess

Improvements

EvaluateImprovements

Establish New

StandardProcess

Operate UsingNew Standard

Process

Finalize NewStandardProcess

Present

Results andCelebrate!

Day 4Day 3

Simulate &Refine

Improvements

Day 5Day 4Day 2 Day 3Day 1

Lean/SixSigma

StandardOperations

6S Kaizen

Methodology Tools &

Techniques

Kaizen Breakthrough Methodology

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What is Six Sigma?

A metric- Represents 3.4 defects per million opportunities.

A methodology- Highly disciplined process that focuses on delivering near

perfect products and/or services. Can be applied to any

process or product to eliminate defects and their associatedcost, and reduce variation

A mindset- Designed to focus an entire organization on producing nearly

perfect products and services that delight customers andrealize higher profits.

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Six Sigma concentrates on variationreduction by using statisticalmethods to lower process defectrates to less than 3.4 defects per millionopportunities.

Six Sigma Methodologies: DMAIC -define, measure, analyze, improve, and control DMADV -define, measure, analyze, design, and verify

Six Sigma

Si Si P

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Six Sigma Process

Formulating the Practical ProblemPhase Question

Define What do I want to improve? What is the problem statement?

Measure Whats the best way to measure? Does performance meet expectations? How muchvariation is there?

Analyze How good is my process today? What is at theroot of the problem? What causes the processto behave the way it does and creates theoutput?

Improve Whats at the root of the problem? Developsolutions to eliminate or minimize the root causeinfluence on the process and outputs?

Control How can I sustain the improvement? Whatcontrols can be put into place?

75

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l h

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Recognize a ProjectOpportunity

Is theSolutionknown?

JustDo Itwith

PDCA

AreSolutionsobvious?

Workout/Kaizen

Blitz

Is it a newproduct orprocess?

DFSS

Is theobjective to

reduce time?

Is the timebottleneck due

to defects?

Lean

SixSigmaDMAIC

Selecting the Improvement Engine

NO

YES

NO

YES

NO

YES

NO

YES

YES

NO

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Key Excellence Indicators: Results

Tied to

customer requirements

key processes

product/service performance

strategy and action plansWorkforce needs

financial and marketplace measures

governance and social responsibilities

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Key Excellence Indicators: Results

Tracking of levels and trends

Linked to organization-level informationand analyses

Use of comparisons/benchmarks

Actionable

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8080

Tracking Progress:Strengths and Opportunities for ImprovementProvides operational capability analysis

Used as input into the strategic planning process

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Business Excellence Survey Results

0

100

200

300

400

500

600

2005 2007 2009

Business Excellence Survey Scores

Business Excellence Survey Scores

DST Output Confidential

i All h

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Putting It All Together

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ISO 9000 CMMi Six Sigma and Lean

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ISO 9000, CMMi, Six Sigma and LeanHow they relate to the seven Baldrige Criteria Categories

Th L d hi C

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The Leadership CategoryBaldrige, ISO 9000, Lean, and Six Sigma alldepend on leaders who

Align financial and human resources Communicate cultural norms Encourage and provide resources Solidify a culture of organizational excellence

Baldrige addresses the overall leadershipsystem.

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Strategic Planning Category Lean and Six Sigma can be methodologies for coordinating resource use towardorganizational objectives identified using the Baldrige Criteria. Six Sigma provides tools for measuring progress.

ISO 9000 has standards for measurement.

EnvironmentalAssessment

Finalize company-widegoals and strategies

Finalize departmentstrategies and action

plans.Vail presentation.

Align financialbudgets to

strategic plan

Align associateaction plans tostrategic plan

Conduct environmental assessment

2009 April May June - July Aug - Sept Oct - Dec

Vision,Principles &

Mission

ExternalOpportunities &

Threats

CompanyStrengths &Weaknesses

GoalFormulation

Action PlanFormulation

Timelines &Implementation Measurements

StrategyFormulation

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Customer Focus Category

Lean environments aim

for all process steps tobe something forwhich the customer iswilling to pay.

In Baldrige and Six Sigma, the voice of thecustomer is used to identify areas of neededimprovement.

Customer-defined value

Quantification ofcustomer needs is the key.(Voice of Customer)

Map andunderstandvalue stream

Make valuestream flow

Continuousprocessimprovement

2005 2006 2007 2008 2009(target)

2009Results

OverallSatisfaction

83% 82% 88% 83% 85% 89%

WouldRecommend

49% 40% 52% 46% 88%* 92%

Measurement Analysis and Knowledge

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8989

Measurement, Analysis, and KnowledgeManagement Category

Six Sigma :is data-driven:

specific metrics data collection data analysis

control data

Lean :measures, analyzes,and reduces waiting time inventory batches process time rework

ISO 9001: The standardization tool-Turns tacit knowledge into articulated

knowledge-Enables Knowledge Management

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Process Management Category

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9191

Process Management Category

Processes are interrelated and interdependentsteps along the path to customer satisfaction.

ISO 9000, Lean or Six Sigmamethodologies are used to Generate standard operating procedures Set specification and control limits Identify explicit corrective actions

Optimize processes0

2,500

5,000

7,500

10,000

12,500

O-08 N-08 D-08 J-09 F-09 M-09 A-09 M-09 J-09 J-09 A-09 S-09 O-09

Defects Per Million - 13 Month Control Chart ActualPerformance Threshold 2008

Average ppmUpper Control LimitLower Control Limit

R lt C t g

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9292

Results CategorySix Sigma and Lean are data-driven and results-oriented. Their use leads totracking systems (control charts, scorecards, rolled throughput yield charts, etc.) and

results monitoring in functional business areas where the methodologies are applied.

0

2,500

5,000

7,500

10,000

12,500

O-08 N-08 D-08 J-09 F-09 M-09 A-09 M-09 J-09 J-09 A-09 S-09 O-09

Defects Per Million - 13 Month Control Chart ActualPerformance Threshold 2008

Average ppmUpper Control LimitLower Control Limit

0

5,000

10,000

15,000

20,000

25,000

30,000

O-08 N-08 D-08 J-09 F-09 M-09 A-09 M-09 J-09 J-09 A-09 S-09 O-09

Late Statements Per Million - 13 Month Control Chart Actual Average ppmUpper Control LimitLower Control LimitPerformance Threshold '08-09

360

206

121

54 42 32 28 27

34%

53%

64% 69%

73% 76%79% 81%

0%10%20%30%40%50%60%70%80%90%100%

0

100

200

300

400

Bad or incorrect foldIncorrect statement orientationMultiple inserted or mixed statementsPartial statementRemits rejected by lockboxPoor print qualityWrong remit/insertUnsealed envelope(s) mailed

I

0

100,000

200,000

300,000

400,000

500,000

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

All Client Systems

S ummary

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9393

The Baldrige Criteria focus on organizational improvement and innovationsystems . Six Sigma and Lean methodologies drive waste and inefficiencies out ofprocesses that users of the Baldrige Criteria identify for improvement. CMMi , SixSigma and Lean focus on organizational improvement and innovation processes .ISO 9000 aids in the setting of standardized processes in managementresponsibility, resource management, product realization, andmeasurement/analysis/improvement

I i d i i

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9494

28 industry patents, including Mail-by-Tray

All U.S. operation centers MPTQM certified

IndustryWeek awards

DALBAR client awards

Exstream Visionary awards

Xplor International awards

3 time recipient of Industry Weeks Top Ten Best Plants in North America

Innovation and recognition

S elected results over year period

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9595

S elected results over year period

Revenue increased by 31%

Profits increased by 42%

Business Excellence Assessment usingBaldrige Performance Excellence Criteriaincreased 52% since 2005

Defects per Million Opportunities decreased by77%

Late Per Million Opportunities decreased by70%

Quality and On-Time Delivery performance

exceed the Industry Weeks Top Ten Plants 4year average

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9797

Lean Six Sigma

DMAIC:

1. Define2. Measure

3. Analyze

4. Improve

5. ControlLean Thinking-Kaizen

ContinuouslyImprove the Process

*

Relationship Between SDCA and PDCA

New standard

C

SD

Process Control

Need for improvement A P D

C A

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9999

Integration: The Dual Function-Institutionalize Continuous Improvement

PDCA is used at all levels and inall departments to improve localdaily work processes

This is when ContinuousImprovement is the DNA of theorganization

c ad s ca

dp

newSTD

c ad s ca

dp

newSTD

c ad s ca

dp

newSTD

c ad s ca

dp

newSTD

c ad s ca

dp

newSTD

c ad s ca

dp

newSTD

c ad s ca

dp

newSTD

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100100100

C onclusions Visionary Leadership

Systems Perspective Linkage and Alignment

Valuing Workforce Members and Partners

Management by Fact

Focus on Results and Creating Value

The various quality system methodologies are synergisticparts of the system

Any other takeaways?

Critical Components, Perfectly Synchronized

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101101

Creating Customer Value and Corporate Growth

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