TE Operating Advantage (TEOA)

A standard set of tools and a proven methodology

Key performance indicators (“metrics”)

A star assessment and evaluation system

A training program, with a “learn-by-doing” approach

A leadership and management development program

Information is TE Connectivity Confidential & Proprietary April 2012

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 Why TEOA in Procurement?
Customers Demand It Competition Is Relentless 20x15 Requires It

The customer demands We have to outperform TE must have the most

continuous improvement aggressive global effective and cost
in our quality, price and competitors that are efficient operations to
delivery “and service” improving their reach $20 billion in sales
businesses every day by 2015

Global Procurement:
• Influences all four customer demands Procurement Transformation
• Major driver in lead times and cost Necessary to enable 20 X 15

Information is TE Connectivity Confidential & Proprietary April 2012

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Collaboration Anchored by TEOA
Operations Engineering
Value Analysis:
Value Analysis: Finance validates
Rationalization
Scrap Reduction the #’s
Substitutions
Process
TE Specs
Improvement
Commercial

Technical

Operational

Value Engineering:
Competitive Sourcing: GMSS
One Shared Target : LCC / localization Benchmarking
Productivity
Engineering Make or buy Teardown
Procurement
Operations

Other Competitive Sourcing:

LCC / localization
Idea generation
Functional Implementation
Optimization Procurement
Make or buy
Areas

Supported by TEOA Enablers and ONE TE Voice to Suppliers

Information is TE Connectivity Confidential & Proprietary April 2012

Do Not Reproduce or Distribute