DLE Technical Services guides executive teams through the challenging process of achieving!

The results include signicant, dynamic, benecial changes and sustainable improvements in culture and performance. !

DLE Technical Services, LLC

Strengthen the Companys Integrated Management Systems

Strengthen the Quality Culture

Diagnose and address the Cost of Poor Quality (CPQ)

Establish a Continuous Improvement Culture

DLE Technical Services has developed cutting edge Organizational Development strategies to facilitate breakthrough performance and cultural transformations based on over 20 years of experience in leading improvement initiatives and cultural transformations across several industries.

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Organizational Alignment

Why we Exist

Mission

Our Guiding Principles

Core Values Vision

What We Want to Achieve

Describes the Strategy

Strategy Map

What We Are Expecting to Achieve

Strategic Outcomes

Measures Progress to Reaching Goals

Balanced Score Card

Strategic Initiatives & Targets

Creates a Strategy-Focused Organization
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Satisfied Shareholders Satisfied Customers Effective Processes Motivated Workforce

DLE Technical Services, LLC

DLE High Performing Organization (HPO) Standards

DLE helps clients close gaps to excellent Quality Management Systems by comparing performance against these 8 HPO standards & criteria.

!Leadership !Customer Focus !Strategic Planning !Organizational Structure !Process Management and Control !Workforce and Leadership Development !Performance Management !Continuous Improvement

DLE Technical Services, LLC

The HPO Standards are used as a guide in evaluating a companys Quality Management System, to identify gaps in programs and performance. Leadership
!Vision, Values & Mission !Communication !Organizational Performance !Effective & Efficient Governance

Strategic Planning
!Strategy Development & Goals !Strategy Maps and Balanced Scorecard (Financial, Customer, Internal & Growth Perspectives) !Deployment of Strategic Plan !Performance Projections

Strategy Map example on slide #8

Customer Focus
!Customer Centered Culture !Voice of the Customer !Determining Customer Satisfaction !Analysis of Customer Data !Product Offerings !Customer Support
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Organizational Structure
!Core Competencies !Relationships & Alignment !Cross Cutting Areas

DLE Technical Services, LLC

The HPO Standards are used as a guide in evaluating a companys Quality Management System, to identify gaps in programs and performance.
Process Management & Control !Integrated Management Control Systems Requirements !Management Control Systems Design !Effectiveness of Critical Work Processes

(Contd)

Performance Management !Results Quality of Products & Services !Results Customer Feedback !Results Financial & Market Outcomes !Results Workforce Performance !Results Process Effectiveness Continuous Improvement !Specific Methodology !Improvement Projects !Resource Management !Integration & Prioritization
DLE Technical Services, LLC

Workforce/Leader Development !Workforce Capability !Workforce Engagement !Systematic Approach to Training !Knowledge and Resource Management !Feedback
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Long Term Shareholder Value

Financial Perspective

Productivity Strategy

Growth Strategy

DLE can also help clients through the strategic planning process

Customer Value Proposition Customer Perspective

Product/Service Attributes Relationships Company Image

Operations Management

Customer Management Processes ! ! ! ! Customer Selection Customer Acquisition Customer Retention Customer Growth ! ! ! !

Innovation Processes Opportunity ID R&D Portfolio Design/Develop Launch

Regulatory & Social Processes ! ! ! ! Environment Safety & Health Employment Community

Internal Perspective

! ! ! !

Supply Production Distribution Risk Management

Human Capital

Information Capital ! IT Life Cycle Management ! Infrastructure ! Applications

Organizational Capital ! ! ! ! Culture Leadership Alignment Teamwork

Learning & Growth Perspective

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! Multi-disciplinary Skills ! Core Competencies ! Attract/Retain

DLE Technical Services, LLC

DLE provides guidance on Principles for a Strong Quality Culture to be used in policies and procedures, and indoctrinates the clients management and staff on those principles.

Commitment to Quality

!Define the Principles for a strong Quality Culture !Define why Quality should be valued as part of core business

Roles & !Supervisors & Managers Responsibilities !Independent Oversight

!Line personnel

Defense in Depth

!Define the four lines of defense that work together to identify and address conditions adverse to quality

DLE Technical Services, LLC

4th line of defense

3rd line of defense

Understanding defense-in-depth helps define the accountability for line ownership of Quality

Regulatory or External Oversight

Internal Independent Oversight

Independent oversights role should not be adversarial

2nd line of defense

Management Oversight

Management Oversight

1st line of defense

Front Line Personnel

Front Line Personnel

Front Line Personnel

Front Line Personnel

Our most effective defense is a line organization that values quality

Monitor Performance & Identify ! Defects and Gaps !

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Corrective Actions

Documentation & Reporting of Defects & Gaps !

DLE Technical Services, LLC

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PROTECTED - SENSITIVE

The Cost of Poor Quality (CPQ) is a term used to explain the costs that would disappear if all failures were removed from a companys products, services and processes inefficiencies. CPQ is often listed as a percent of sales or total costs. However, the CPQ that can be readily identified is usually the tip of an iceberg that includes additional tangible and intangible losses.
! Visible Costs
Rework Warranties Inefficient processes Expediting costs Schedule slippage P&L variation Loss of morale Reprocessing Inspections Intellect management Increased risk Inventory Administrative costs Loss of customer trust & loyalty Scrap Restocking Risks

COST OF POOR QUALITY

! Hidden Costs

Set-up costs Lost sales Loss of regulatory confidence

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DLE Technical Services, LLC

CPQ can vary from as little as 2% to as much as 35% of revenues, robbing a company of its profit, often without being monitored or detected.

CPQ Robs Companies of Profit

Estimates of CPQ vary greatly from industry to industry and depends greatly on many variables, such as the complexity of the business, regulatory requirements and market constraints. The problem is that organizations are not actively looking for the sources of CPQ.like vampire loads in your house, raising your electric bill.

CPQ is not Often Measured

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DLE Technical Services, LLC

DLE helps clients establish and manage improvement efforts to eliminate the Cost of Poor Quality and attain performance excellence using formal or informal methodologies (depending on the clients comfort level and experience with using such methods):

Breakthroughs are achieved through focused improvement projects:

LEAN
! ! ! ! !

SIX SIGMA
! ! ! ! !

TQM

Causal Analysis

Select Clarify Organize Run Evaluate

Define Measure Analyze Improve Control

! Reason For ! Data Analysis Improvement ! Apparent Cause ! Current Situation Analysis ! Analysis ! Countermeasures ! Root Cause Analysis ! Results ! Standardization
DLE Technical Services, LLC

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A typical company that loses $1 to CPQ has to bring in approximately $10 in additional revenues to make up for it. Highly inefficient!!
Turning Losses into Gains

Assuming that Profit Margin is 10%

DLE offers management consulting engagements that help organizations look for and address CPQ, reversing the equation!
If a companys profit is 10% of revenue, for each 10% of CPQ that is recovered, its like doubling the companys revenue without having invested in the infrastructure and costs typically needed to double revenue. For example: a company with annual revenues of $10M logs $1M in profits. A DLE engagement identifies and recovers $1M in wasted costs due to poor quality; the companys net for the year is now $2M (doubling its profit without having to double revenue) DLE Technical Services, LLC
Addressing CPQ is Like Finding Lost Revenue

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DLE helps clients evaluate and strengthen the programs and processes that support a continuous improvement methodology, such as:
! ! ! ! ! !

Monitor Performance

Standardize & Replicate

Identify Gaps

Continuous improvement activities must be targeted such that they have an appreciable impact on the companys bottom line.
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Corrective Action Human Performance Self-assessment Causal Analysis Performance Indicators Oversight

Sustained Excellence Through Continuous Improvement

Close Gaps

Analyze & Identify Causes

Develop & Prioritize Solutions

DLE Technical Services, LLC

LOCK IN THE GAINS

Management Oversight Task Assignment Performance Assmt. Accountability Trending

Benchmkg. SelfAssessmt Eff. Reviews

Resource Management

Standardization

Problem Reporting

Operating Experience

Action Tracking

Implement Solutions & Lock in the Gains

Replication

KPIs

Performance Monitoring

Oversight

Use Effective Problem Solving Tools

Eliminate Deadly Wastes

Root Cause Evaluations

Eliminate Sources of Variation

Apparent Cause Evaluations

Analyze Problems & Identify Underlying Causes

Prioritized Countermeasures

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DLE Technical Services, LLC

The results include signicant, dynamic, benecial changes and sustainable improvements in culture and performance. !

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DLE Technical Services, LLC

The DLE Transformation Model leads to dramatic improvements and breakthroughs in financial performance, QMS effectiveness and the overall worth of each individual within the organization. The pursuit of Breakthrough Performance transforms the culture
Products and services that meet customer expectations and are free of defects result in increased sales, lower cost and increased profits.

Breakthroughs In Cost/Profits

An organizations relentless pursuit of high quality, and implementing an effective Quality Management System to get there, will result in performance excellence.

Breakthroughs in Mgmt System Effectiveness

The pursuit of performance excellence results in customer satisfaction, employee satisfaction/self-worth and shareholder value.

Breakthroughs in Value
DLE Technical Services, LLC

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Kewaunee Nuclear Power Station, Green Bay, WI

!8 week engagement on strengthening their Continuous Improvement Methodology and problem solving skills

Applicable sections of the DLE Transformation Model have been successfully used by companies in the US and Canada to strengthen their Management Systems, problem solving skills, continuous improvement methodologies and Quality Cultures.

DOE Quality Assurance at the Yucca Mountain Project

!24 month engagement using the full transformation model to achieve a turnaround of the Quality organization and their Nuclear and Safety Cultures

Entergy Nuclear Division

!3 month engagement to replace their existing Root Cause and Apparent Cause training programs and develop training on the CAP for managers and supervisors

Paducah Remediation Services, Gaseous Diffusion Plant

!10 month engagement on strengthening the QMS, coaching the management team and developing their Human Performance Program

Uranium Disposition Services at the Depleted Uranium Hexafluoride Conversion Facility in Paducah, KY
!12 month engagement on strengthening Conduct of Operations and Startup Testing Program

Atomic Energy of Canada Limited, Ontario, CA

!Developed & supported an 8 week evaluation of the Integrated Management Control System, continuous improvement methodology, problem solving skills and Quality Culture, in response to $1.5 B in losses

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DLE Technical Services, LLC