opti products overview

Driving Profitability And Security Through Process

OPTI™©

ProprietaryExclusive Property of Operational Productivity Tool, Inc.

Product Overview

Connectivity

OPTI

2

The OPTI (“OPTI”) Solution


™ &©

Overview

Proven methodology derived from:

• Four prominent business systems, >30 years…

• Plus “real world” application…

• Deployed 535 times with +/- 3.5% margin of error

• Operating divisions and middle market companies

Addresses perennial questions:

• Is the Company/Division Sustainable?

• What is Optimal Profitability?• How do I/we “get there”?

(Roadmap)• What is it going to cost and

how long will it take? (Re-Tool)

Connectivity

OPTI

3

The OPTI Product SuiteOPTI SustainabilityA quick, and comprehensive, operational-based due diligence tool that assesses sustainability by evaluating the infrastructure connectivity of the target; leveraging a proprietary database, the tool then measures likelihood of success or failure against similar companies.

OPTI OptimizerAn optimization reporting feature that compares target’s financials against industry best-practices to determine gaps and set Best-In-Class targets; includes an analysis of performance metrics and transaction values on a global basis.

OPTI RoadmapAn integrated matrix that sets goals and objectives for a target, Roadmap ties back into both the Optimizer findings, and Sustainability gaps and disconnects, to assess the severity of the gap/disconnect, what it will take to repair issues, etc.

OPTI RetoolA foundational tool that enables a target to implement process-based changes that address previously identified gaps and disconnects. It is a Best Practice©, process-based infrastructure re-design tool that utilizes process mapping, activity costing tables and robust measurement tools.

Overview


Connectivity

OPTI

4

Productized OPTI Solutions

™ &©™ &©

Process Management

30/60/90 Plan

Recovery Roadmap

Optimization Report

Gap Report

Survey Analysis

2) OPTI Optimizer

1) OPTI Sustainability

3) OPTI Roadmap

4) OPTI Retool

• Four products with increasing functionality

• Proprietary modules are basis of tool • Flexibility to match operational

requirements

• Integrated end-to-end product solutions• Built from a stakeholder/owner/ operator

perspective

Overview


Connectivity

OPTI

5

The OPTI Solution Enables

• Quick and detailed due diligence • Fast cash generation (rapid drive to break-even)• Effective cessation of financial leakage • Efficient infrastructure development • Enhanced success measurements to manage

processes and reduce cycle times

Overview


Connectivity

OPTI

6

The OPTI Solutions

Implementation/StrategyDue Diligence

™ &©™ &©

Sustainability•Assess Mission Critical Processes•Quantify financial impacts•Identify gaps and disconnect

Optimizer•Validate optimization•Confirm financial health •Determine market value

Roadmap •Quantify leakage•Build plans action plans •Set up metrics

Retool•Retool processes to drive profitability•Build sustainable foundations


Overview

Connectivity

OPTI

7

Eight Core Systems

New Product

Dev.IT

Operations

Human Resources

Sales

Finance &Accounting

Marketing

Customer Care

MissionVisionCultureAlignment

MissionVisionCultureAlignment

OperationsMission Critical Processes

Material: define MRPS flow

Material: ID initial notification of material purchase requirements

Production: Validate human utilization

Production: Validate capital utilization

Training: Match skills with demand

Eight Core Systems


Methodology

Connectivity

OPTI

8

MCPs Overview

OperationsMRPS Sub Process

Determine Potential for Client

Develop Cross Functional Team

Priority

Define MRPS Flow

Track Cycle

ID Initial Notification of Material Purchase Reps

Long Term Production Plan ID Material Requirements

Core System

Mission Critical Process

Operations Loading

Operations Utilization

Operations MRPS

Operations Training

Marketing Brand

Marketing Dimension

Marketing DEP/DMP

Marketing Communication

Every Company has 18-26 MCPs Many MCPs have Sub-Processes

Methodology


Connectivity

OPTI

9

Proprietary Tools

Database of hundreds of OPTI- run mid-sized companies and growing

• 75% manufacturing entities; 25% variety of process-based companies

• Affirm sustainability +- 3.5% margin of error• Ability to run studies

Demonstrated success • M&A transactions with in excess of $3 billion in

consideration • The launching of 10 products• Direct investment in over two dozen companies

with an average 6X realization at exit

Optimization reporting leading to recovery roadmap

•Connect financials to operational leakages•Achieved average savings of 12.5% of Sales•Average time realization to Break-even 6 months

Differentiators

Unique Differentiator Impact


Connectivity

OPTI

10

Proprietary Tools Cont.

Proven end-to-end system to fix operational connectivity and increase profitability

• Database of over 1,500 survey questions by industry and resource role

• A proprietary means of relating gaps between Best-in-Class performance to internal financial leakages

• A series of statistical formulas to predict success or failure

• Roadmaps to effectively restructure and optimize operations.

• Re-tool templates that provide step-by-step guides for operational rehabilitation and stabilization

Differentiators

Unique Differentiator Impact


Connectivity

OPTI

Project Office

11

™ &©

OPTI General


Connectivity

OPTI

Setting Surveys

12

™ &©

Sustainability


Connectivity

OPTI

Generated Questions

13

™ &©

Sustainability


Connectivity

OPTI

Report Development

14

™ &©

Sustainability


MCP Rating DetailBrand

3.00

Very few MCPs or Sub MCPs are documentedVery few company resources are trainedVery few checklists are followed/very little accountability is set/very few CSFs are managedDocumented systems are rarely, if ever, reviewed, modified or adjustedVery few documented processes achieve their goals and objectives

Dimension

7.00

Most MCPs or Sub MCPs are documentedOn average company resources are trainedOn average checklists are followed/on average accountability is set/on average CSFs are managedOn average systems are reviewed, modified or adjusted on a standard scheduleOn average processes achieve their goals and objectives

Communication

3.33


Weighted Average

3.37


Connectivity

OPTI

Reporting

15

Sustainability


Connectivity

OPTI

Analytics

16

Sustainability


Connectivity

OPTI

Standard Template

17

Optimizer


Connectivity

OPTI

Key Ratio Analysis

18

™ &©

Optimizer


Financial Ratios Dec-07 Dec-08 Dec-09 Dec-10 Dec-11

Gross Margin % 60.0% 60.0% 60.0% 60.0% 60.0%

EBITDA % 40.0% 40.0% 40.0% 40.0% 40.0%

Profit Margin % 10.0% 10.0% 10.0% 10.0% 10.0%

Return on Assets 6.8% 6.7% 6.9% 7.1% 7.8%

Return on Equity 17.0% 16.8% 17.2% 17.6% 19.4%

Quick Ratio 80.0% 80.0% 80.0% 80.0% 80.0%

Current Ratio 150.0% 150.0% 150.0% 150.0% 150.0%

Debt to Equity 100.0% 100.0% 100.0% 100.0% 100.0%

Debt to Assets 30.0% 30.0% 30.0% 30.0% 30.0%

Accounts Receivables Turnover 6.8 6.7 6.9 7.1 7.8

Inventory Turnover 4.8 4.9 4.7 5.0 5.5

Total Asset Turnover 0.7 0.7 0.7 0.7 0.8

Average Days Sales Outstanding 53.7 54.2 53.1 51.7 47.1

Connectivity

OPTI

Leakage Figures

19

™ &©

Roadmap


OPTI Roadmap Master Template

Factor Category Factor Max 6 Months 12 Months 18 Months 24 Months

Direct Labor

Excess Movement 3.00% 0.50% 2.00% 2.00% 3.00%Theft 0.50% 0.10% 0.30% 0.30% 0.50%Safety 2.00% 0.50% 1.50% 1.50% 2.00%

New Product Development 3.00% 0.50% 2.00% 2.00% 3.00%

Direct Material

Scrap 1.50% 0.50% 1.50% 1.50% 1.50%Material Cost 3.00% 1.00% 2.50% 2.50% 3.00%Lazy Inventory 1.00% 1.00% 1.00% 1.00% 1.00%


Factory Overhead

Utilization 3.00% 0.50% 2.00% 2.00% 3.00%Plant Loading 1.00% 1.00% 1.00% 1.00% 1.00%Personnel 2.00% 0.50% 1.50% 1.50% 2.00%


Connectivity

OPTI

Financial Leakage Table

20

Roadmap


Connectivity

OPTI

Initial Fix

21

™ &©

Retool


Increase “Velocity of Money”

Identify “Pain Points” and achieve quick impacts

Drive to “Break-Even”

Realize early team wins

Connectivity

OPTI

Process Infrastructure Development

22

Retool


Activity Owner Mins.Salary

(FL)Total Cost

MRPS

Long Term Production Plan ID Material Requirements

Input six week/ future sales projections into Sales Database J. Doe 10 $50.00 $8.33

Calibrate scheduled orders over six weeks J. Doe 90 $50.00 $75.00

Determine under utilization of Machines W. Smith 90 $35.00 $52.50

Access six week/future sales projections CFTeam 45 $250.00 $187.50

Calibrate six weeks sales projections with parts needed CFTeam 45 $250.00 $187.50

Email invite and Matrix to Company Management CFTeam 3 $250.00 $12.50

TOTAL $536.33

Connectivity

OPTI

Ongoing Maintenance

23

™ &©

Retool


CSF Action Plan

100% Finalize in next two weeks or fire supplier

25 days Analyze gaps, provide terms to holdouts

2.5 days No action plan, exceeded target

2 days Re-review of process, clean up gaps and issues

98% Schedule server downtime, perform full maintenance

Activity Actual

Locked in supplier pricing

70%

AR collection 27 days

1-999 production schedule

3 days

Quote to sales 5 days

Email server uptime

89%

Connectivity

OPTI

24

OPTI Contacts

Contact Information


www.opticonnectivity.comhttp://opticonnectivity.blogspot.com/

Operational Productivity Tool, Inc.Office Court at Walton Point

482 Norristown Rd, Suite 114Blue Bell, PA 19422

484-351-8305

http://www.opticonnectivity.com/

http://opticonnectivity.blogspot.com/

opti products overview

Business