CAPABILITIES OVERVIEW

Who we are and what we can dofor your company.

September, 2014

Prepared by:Francisco Pulgar-Vidal,

President, fkiQuality

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What is fkiQuality? A consultancy dedicated to

its clients’

operational excellence

through consulting,

training and coaching to

sustain high performance.

Operational excellence means

delivering goods and services that

customers want –

doing it faster, with higher quality

and lower costs.

We support your company with

methods that fit each problem,

including Lean, Six Sigma,

simulation, design of experiments

and data analytics.

We have helped clients improve all

types of operations.

Our consultants bring insight and

skill, leveraging about 20 years’

experience in industry and

consulting each.

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Sustained company prosperity

We believe that operational excellence is the basis for sustained company prosperity

Seek the prosperity of the

business.

Improving the way your company

delivers goods and services leads to

reducing all sort of hidden costs,

increasing your company’s

productivity.

From this internal strength, your

company will be poised to gain

customers and grow in its market.

Prosperity starts with excellent

operations.

Seek the prosperity of the

workers.

Factories and businesses do not run

themselves and savings do not

happen on their own.

Managers and associates must want

to make gains in productivity and

innovation, improving their jobs

every day.

So, create a production environment

where employees are willing to apply

their best efforts and start a spiral of

growth.

Prosperity requires the

contributions of all employees.

Based on the chain reaction by W. Edwards Deming.

Operational excellence

Reduce costsRaise

productivityIncrease

market shareStay in

businessProvide

jobs

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fkiQuality supports your company’s excellence in operations

We provide three main services:

1. Strategy implementation

2. Operational excellence through speed and consistency

3. Training to sustain excellence performance

We help clients across many industries, business functions and

geographies.

Strategy Implementation

1

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SIMPLEST:Simulate to implement strategies

Most strategic projects define a

future state and a transformation

route, but do not provide a way to

test the route.

SIMPLEST can

predict obstacles along the road,

quantify their severity, and

find less risky courses of action.

You will get a window into the

transformation of your business.

SIMPLEST leverages the

strengths of

system dynamics,

process simulation,

organizational change,

data analytics and lean

enterprise.

Typical strategic project

Simulate to implement strategies – SIMPLEST

For each change scenario

Define TO-BE and change

route

Postulate change

scenarios (sys dyn)

Simulate operating capability

against KPIs

Simulate organizational

friction and cost

Identify best course of

action

Implement, monitor

against plan, close gaps

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SIMPLEST –direct sales example

A direct sales company must

increase revenue per sales

consultant.

So far they have relied on direct

incentives such as gifts for

reaching personal sales targets.

Too bad their competition does

the same.

How to earn

sales consultants loyalty?

How to activate this

enormous potential?

First found out which factors

influence most strongly a

personal connection with the

retailer.

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Begin with an influence model

An influence model charts the

forces that influence sales

consultants, their structure and

organization and the resulting

behavior: loyalty or opportunism.

SIMPLEST applies

systems simulation to create

scenarios.

Scenarios feed a process

simulator used to adjust all

business components

to find the optimal conditions

for loyalty and

higher revenue per consultant.

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SIMPLEST then simulates all business components

Adapted from: BIM Reference Guide, Andersen Consulting, 1997

Business Unit

Strategy

Total perform-

ance

Facilities & Layout

Equipment

Organization & Teams

Skills & Culture

Technology (hardware & software)

Processes(Technical & Business)

Many combinations and

interrelations between

components may be tried in

pursuit of higher performance

targets.

Influence maps and statistical

analyses enable “testing” the

organization in ways not

possible before.

Operational excellence through speed and consistency

Financial services

Facilities management

Healthcare

Manufacturing

Retail

Supply chain

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We help clients solve five fundamental operational problems

Companies across all sectors

are constantly challenged by

these operational problems:

1. Long lead times to complete a

task, deliver a product or

generate new ideas.

2. Poor flexibility to respond to

changing customer demands.

3. Too many defective products or

service errors.

4. Excessive cost of operation.

5. Unacceptable operational risk.

We have met these challenges

in processes representing all

types of functions.

This is the result of constant

change and companies’

difficulty to adapt rapidly.

Client needs change, as well

as competitors’ threats,

workforce skills, supplier

quality, one’s own operating

capability and the external

environment.

Slow Inflexible Defective

Costly Risky

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We help leverage your processes, people and technologies

Methods for improving

processes include our own

integration of time-tested

tools such as Lean and Six

Sigma.

Methods to leverage the

potential of your teams

include Organizational

Change and Design. A key

ingredient of our approach is

education to create internal

capacity for long-term

change.

Methods to optimize use of

technology include Design of

Experiments.

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We go wherever our clients operate

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Our clients

Consulting for operational excellence

Strategic planning

Training

Coaching

Sectors represented:• Construction• Education• Food & beverage• Healthcare• Heavy equipment• Manufacturing• Mining• Oil & gas• Retail

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Sample Financial ServicesProjects

Saved 1,000 non-value added hours per month and

increased processed payments by 50,000 monthly for a

multi-country financial services operation.

Recovered 1,700 non-value added hours per month and

increased accounts payable capacity by 25,000 invoices per

month for a shared services center.

Designed an operational strategy to support expansion of

shared services to multiple countries for an international

foods company.

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Sample Facilities ManagementProjects

For the regional headquarters of a major oil producer,

reduced storage space cost by 90% in 2 years.

Redesigned the disposition of office furniture and equipment

to maximize reuse and reduce disposal.

Accelerated the closing of financial liabilities left behind by

outgoing contractors.

Improved spending coordination between authorized parties

to guarantee funds for multi-year projects.

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Sample HealthcareProjects

Planned hospital facilities and operations for increased

utilization and better patient flow.

Simulated multiple scenarios of hospital capacity and

layouts.

Improved speed of medical supply chains: order to delivery.

Accelerated processing and reporting of medical diagnoses.

Designed and deployed methods for better data quality,

analytics and visualization.

Deployed lean healthcare practices.

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Sample ManufacturingProjects

Reduced scrap of worst-quality product from 7% to less

than 2% in 3 weeks for a laminated woods manufacturer.

Reduced die manufacturing rework from 22% to 8% in 3

months.

For a maker of aircraft parts, shortened duration of a parts-

smoothing operation from over 8 to less than of 4 hours.

Reduced to zero the number of customer defects for the

highest volume product of a metal fabricator.

For a quick-response metal parts manufacturer, extended

time between tool changes from 2 to 9 hours, letting off-

shifts operate unattended.

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Sample RetailProjects

Improved fulfillment of packaged flower bouquets for an

international florist.

For a petrochemical center of excellence, reduced

compliance risk of international import-export shipping

tasks.

For a nationwide hardware franchise, accelerated start-up

and turn-around periods resulting in more open stores per

year and incremental sales of $6m.

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Sample Supply ChainProjects

For a 3-tier automotive supply chain, improved

management of production schedules reducing error rates,

accelerating communication to and from suppliers and

increasing inventory turns.

For a Gulf of Mexico chemical manufacturer, optimized

pipeline flow volume resulting in $6m monthly additional

revenue.

For a regional pipeline operator, lowered crude oil pumping

costs through better scheduling that takes advantage of

hourly electricity price variations.

Reduced energy spent to unload tanker ships by optimizing

pumping procedures and taking advantage of the dock time

allowed.

Coordinated all parties responsible for planning a pipeline

operating budget, reducing changes and meeting

contractual deadlines.

Educational Services

Executive level

Managerial level

Train to certify

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The job skills gap must be closed post-college

Fuente: The Economist Intelligence Unit report “Closing the skills gap: companies and colleges collaborating for change“ (2014)

The number of college

graduates lacking key skills

required for today’s jobs is

very large.

In particular, companies

indicate an unmet need

for soft skills bigger than

for technical ability.

Problem-solving tops the list.

Enter fkiQuality, which has

provided problem-solving

education since 2004.

0 10 20 30 40 50 60 70 80

Planning / organization

Professionalism

Adaptability / prioritization

Job-related technical skills

Communication

Collaboration / teamwork

Critical thinking / problem solving

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EducationalCurricula

fkiQuality offers three educational curricula:

1. For executives responsible for creating high-performing

organizations and launching programs of change.

2. For managers tasked with supporting the deployment of

operational excellence and increasing the visibility of their

operations.

3. For professionals at all levels seeking success in standard,

international certification exams.

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Education for executives.

Get the insights needed to create high-performing organizations and launch programs of change

Executive Curriculum

Leadershipfor results –Deming Method

4-days workshop

Hoshin Planning for company-wide change programs

2-days workshop, in-house

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Leadership for results – Deming Method

Deming taught management

methods based on

understanding a company as

a system, the nature of

variation, a better theory of

learning and human

psychology.

This workshop is based on

Deming’s seminars on

leadership and is presented by

professionals experienced in

this method.

4-days workshop.

Upon completion, executives will

have gained a new view of the

meanings of leadership, customer

service and quality.

Syllabus:

A chain reaction from quality to

prosperity.

Drawbacks of mainstream

management methods.

Quality and the consumer.

New principles for leadership and

education.

The operational definition: beyond

meeting specifications.

Using standards and regulations.

Reaching a stable system of

production: common and special

causes of variation.

Reducing total cost from

inspection to finished product.

Organizing to improve quality and

productivity.

Improving quality of life.

W. Edwards Deming was the

man credited with having the

greatest influence in Japan’s

economic success.

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Hoshin Planning for company-wide change programs

Hoshin planning is used to

deploy high-level strategy

down to managerial

objectives and initiatives.

In this way department-level

projects become prioritized

and aligned with strategy to

increase business value.

For this reason, Hoshin

planning precedes successful

company-wide deployments

of any critical program of

change.

Avoid starting with “just some

training” or “just a trial here

and there.”

Syllabus:

Validating company-wide strategy.

Refine and balance strategic

improvement areas.

Identify and align management

objectives.

Define projects of improvement

and innovation.

Create a program of change with

prioritized, phased projects.

Launch and staff projects, schedule

education programs.

2-days workshop.

Upon completion, the organization

will be ready to start an aligned

program of change.

How do we fulfil our mission?

Which processes need

fixing?

What are customers

telling us to do better?

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Education for managers.

Get the awareness and skills needed to support the deployment of operational excellence and increase operational visibility.

Curriculum for managers

How to sponsora Lean Enterprise –executive-level

1-day class

How to deploy Lean practices –manager-level

1-day class

Business ProcessManagement BPM

3-days workshop

Lean Six Sigma –Green Belt

5-days workshop

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How to sponsor a Lean Enterprise.

Education for executives.

A high-performing, Lean

enterprise is not possible

without executive action.

This is because it is the one

responsible with creating the

company-wide environment

required for customer-focused

operations.

Often becoming customer-

focused means a profound

change for the executives

themselves.

Syllabus:

What is a Lean enterprise?

Maximize the flow of value and

utilization of business resources.

Focus the entire enterprise toward

its customers.

The enterprise as a system for the

creation of value.

Seeking holistic, company-wide

results.

Improve and innovate

continuously.

Manage personnel towards total

growth.

Make performance visible.

When do we become “a lean

enterprise”?

1-day workshop.

Upon completion, executives will

become effective Lean sponsors.

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How to deploy Lean practices.

Education for managers.

A Lean strategy only becomes

real at the business and

operations levels through

projects of continuous

improvement and innovation.

So Lean deployment must be

supported by managers in

each department.

Syllabus:

The meaning of leadership.

Institute leadership at the

managerial and individual levels.

Break down barriers that stop the

flow of value across functions.

Create quality and pride in the

work.

Establish metrics that foster

quality, not just quantity.

Rediscover pride and happiness in

daily work.

1-day workshop.

Upon completion, managers will be

ready to guide and support the

improvement of their own

departments.

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Business Process Management (BPM)

Business performance

changes over time due to

variations of the operation

itself and factors such as

customers, competitors,

employees, vendors and the

economic environment.

BPM enables businesses to be

aware of these changes and

respond timely.

Syllabus:

Understand your business as an

end-to-end system.

A hierarchy of metrics for higher

performance: business, operations

and process.

Monitoring performance.

Controlling processes.

Sustaining operational

performance and continuous

improvement.

3-days workshop.

Upon completion, managers will

have learned how to monitor

operations and sustain them at a

high performance level.

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Lean Six Sigma –Green Belt

Lean and Six sigma are

complementary, high-impact

methodologies for building

operational excellence in your

organization.

This workshop integrates both

methods fully, in a new way,

in a workshop format that

enables participants to gain

new knowledge and develop

new skills for problem solving.

Participants finalize the

workshop by writing a project

report which will be reviewed

by the certifying Master Black

Belt as a requisite to earning

the LSSGB designation.

Syllabus:

Integrated DMAIC-Lean method

for process improvement.

Workshop based on a company

case with individualized problem

solving tasks.

Numerical and statistical analyses

of performance, MS Excel-based.

Financial analysis of business

results.

5-days workshop.

Upon completion, participants will

have gained skills needed to lead

improvement projects using the

Lean Six Sigma method.

Participants may earn the Lean six

Sigma Green Belt certification and

will learn to solve problems

scientifically.

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Train to certify.

For professionals at all levels seeking success in standard, international certification exams

Train to certify

International certification exam prepcourses.

Six Sigma Green BeltOur alumni have 100% success in certification exams.

4 days + 2 half-days for exam-taking practice

Six Sigma Black BeltOur alumni have 80% success in certification exams

7 days + 2 half-days for exam-taking practice

Our courses cover the entire “body of knowledge” or official content as designed by the American Society for Quality (ASQ).

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Francisco Pulgar-Vidal, fkiQuality President

+1 630 544 0116, fpulgarvidal@fkiquality.com

• Master black belt by IBM Corp., Black belt by American Society for Quality.

• Director of Chicago Deming Association for effective enterprises.

• Consultant for clients in manufacturing, construction, oil & gas, consumer

packaged foods, retail, automotive, financial services, education and the

government.

• Led projects in the Americas, Europe and Asia.

• Instructor for grad/undergrad classes at engineering and business

administration colleges.

• Has trained thousands of professionals in Lean Six Sigma methods.

• Francisco is fluent in English, Spanish and French.

• MS Industrial engineering, Northern Illinois University; MBA, University of

Illinois Urbana-Champaign.