Overview of Product Lifecycle Management Consulting Service

1. Product Lifecycle Management Executive Summary: Darrel Suderman, PhD President, Food Technical Consulting 303-471-1443 www.FoodBevBiz.com

2. About Food Technical Consulting Business Focus: QSR/Fast Casual Restaurant Consulting – KFC, Boston Market, Church’s Chicken, Quiznos, Chick-fil-A, Wendy’s International New Product Innovation Cost Reduction Project Management Equipment Testing and Operations Food & Bev Food Litigation Expert Witness – represent food companies in litigation & risk management 3/2/2011 Confidential & Proprietary to Food Technical Consulting 2

3. About Food Technical Consulting Business Focus: Food & Bev IT Systems Consulting (7 years) – Foster Farms, Johnsonville Sausage, Jennie-O Turkey Store, Gold’n Plump, E & J Gallo Winery, Organic Valley Manufacturing, Supply Chain Management, Business Performance Metrics, & PLM Quality Assurance & Food Safety SQF Training Tracking and Tracing Solutions Food & Beverage BI Financial, Marketing, and Operations Analytics with SAP Tools 3/2/2011 Confidential & Proprietary to Food Technical Consulting 3

4. Unique PLM Consulting Benefits Food Technical Consulting provides the following valued benefits to our clients: Deep, rich knowledge and experience in the food processing industry that software companies lack Understand new product development processes, specification requirements, and user needs across the organization Independent PLM assessment. We work for the food companies, not software suppliers. This knowledge and understanding can reduce implementation costs significantly 3/2/2011 Confidential & Proprietary to Food Technical Consulting 4

5. PLM Consulting Services Food Technical Consulting assists clients with the following PLM selection steps: Create an RFP Research candidate vendors & products Send RFP to vendors Receive & review proposals Setup & hold demos for select vendors Narrow vendor list Prepare final two deep-dive demos Final vendor selection 3/2/2011 Confidential & Proprietary to Food Technical Consulting 5

6. PLM Consulting Assistance Business Need Identification Define Selection Strategy Define Solution Functional Requirements Assist Selection Criteria Identify Solution Architecture (Strategic IT Fit) Detail Final Four Capabilities Perform Vendor Reference Checks Final Two Selection Process Final One Selection Process Extract Implementation Value Extract Strategic Business Value Extract R&D and QA Business Value Managing Change Management Identify Other Road Hazards 3/2/2011 Confidential & Proprietary to Food Technical Consulting 6

7. Example of Critical Business Need A client is experiencing rapid growth requires centralized critical business information to drive internal efficiencies: Over 30New Product SKUs annually Over 50Private label SKUs Over 200New Producers/Suppliers Annually Over 30 Individual Manufacturing Locations Nationwide production and distribution models 3/2/2011 Confidential & Proprietary to Food Technical Consulting 7

8. Example of Critical Business Needs Business has become complex Supplier list continues to expand Customer list continues to expand Internal work processes cannot keep pace with information demands New Product Development, Quality, & Food Safety processes need more structure environments Ingredient and Product Information is vast Ingredient & Product Tracking is required Confidential & Proprietary to Food Technical Consulting 8 3/2/2011

9. PLM Needs by Department R&D = New Product Development Workflow Process R&D = Integration with Genesis Nutritional Info QA = Product Specifications and Certification Info QA = Auto Specification Electronic Version Control Marketing = Integrated Marketing Calendar with R&D Workflow Process & Product Info Sheets for Sales Packaging = Packaging Specification & Labeling Database Production = Product Tracking and Tracing Process Confidential & Proprietary to Food Technical Consulting 9 3/2/2011

10. PLM Functionality(It’s Simply a business “tool”) Document Management Data Management Formula Management Specification Management (Workflow & Approval) Certification Management (Workflow) New Product Development Workflow Management Internal & External User Data Access Marketing Calendar Workflow Management Interface w/ other biz apps like Genesis R&D, Infinity QS, Private Label and Retail Customers Data Mining - - - - - - to name a few! 3/2/2011 Confidential & Proprietary to Food Technical Consulting 10

11. 3/2/2011 Confidential & Proprietary to Food Technical Consulting 11 BusinessFunctions/Processes Need – Structured business process workflow (i.e. NPD) & document management control … to Facilitate Complex Business Communication and Data Management

12. 3/2/2011 Confidential & Proprietary to Food Technical Consulting 12 Coordinated PLM Functionality Vision

13. General PLM Benefits Improve speed to Market 20 – 40% Increase # products in pipeline development Increase throughput 300%, with no cost increase Reduce Packaging & Artwork Costs Manage compliance & boost sales volume Increase margins and productivity Manufacturing improvement Increased regulatory compliance Real-time visibility to approved changes 100% regulatory compliance 3/2/2011 Confidential & Proprietary to Food Technical Consulting 13

14. PLM Selection Strategy Identify 4 Vendors& Issue RFP Sponsor Product Demo from 4 Vendors Reduce Qualified Vendors to Two – Sponsor Final 2 Vendor Deep-Dive Demos Select Final Preferred Vendor based on: F&B Experience Meets Business Functional Requirements (Best Fit) Compatible with Current & Future ERP System Plan User Friendly Value (Five F’s: Fit - Future - Function - Feeling - Finance) 3/2/2011 Confidential & Proprietary to Food Technical Consulting 14

15. PLM Business Requirements Document Management – Data Mining Ingredient Tracking and Tracing Specification Management & Version Control Certification Process Workflow & Doc Management Synchronization with Marketing Calendar Connectivity to Nutritional Database Connectivity to statistical process control QA data Integration with customer PLM or databases Strong New Product Development & Commercialization Workflow Management Confidential & Proprietary to Food Technical Consulting 15 3/2/2011

16. PLM Solution Architecture Global Corporate Architecture with PLM Integrated PLM Vision PLM Connectivity to Apps PLM Client-to-ERP Architecture Data Mapping Added PLM Bells-and Whistles Features 3/2/2011 Confidential & Proprietary to Food Technical Consulting 16

17. PLM Global Architecture Vision Confidential & Proprietary to Food Technical Consulting 17 3/2/2011 Performance Metrics Crystal Reports Microsoft Reports Dashboard Reports – Active Strategy . com Biwer Grower Management System ( Dairy and Produce , etc .) Demantra Trade Promotions Mngt SUPPLY DEMAND ERP System PLANNING PLANNING Customer Warehouse Materials Resource INVENTORY Transportation Relationship Management Planning MANAGEMENT Management System S 95 Integration Standards Integration Middleware PLM Document & Workflow Management RESEARCH & QUALITY DEVELOPMENT ASSURANCE MES Architecture Statistical Process LIMS Control 11 MES Functions MARKETING SALES Advanced Planning & Scheduling S 88 Integration Standards Plant SCADA Architecture Chaseburg Plant , etc . MES Infrastructure Potential Future Existing Software with PLM Software Systems Systems

18. PLM Connectivity to Apps Confidential & Proprietary to Food Technical Consulting 18 3/2/2011 PLM Application is one of 11 MES Functions that resides between shop-floor SCADA systems and the corporate ERP system.

19. PLM Client-to-ERP Architecture Confidential & Proprietary to Food Technical Consulting 19 3/2/2011

20. Confidential & Proprietary to Food Technical Consulting PLM Client-to-ERP Architecture 20 3/2/2011

21. Data Mapping Confidential & Proprietary to Food Technical Consulting 21 3/2/2011

22. Confidential & Proprietary to Food Technical Consulting 22 3/2/2011 Product Functionality Comparison Example

23. Product Functionality Comparison Confidential & Proprietary to Food Technical Consulting 23 3/2/2011

24. SharePoint 2010 Solution Strengths 3/2/2011 Confidential & Proprietary to Food Technical Consulting 24

25. PLM Implementation Strategy How to Drive Business Value from Your PLM Implementation? Measure Value Against Implementation Metrics: Implement Against Phased Approach Begin Implementation with Conference Room Pilot Implement Area of Greatest Business Value 1st: - Content then Department (Specifications and NPD Workflow) 3/2/2011 Confidential & Proprietary to Food Technical Consulting 25

26. PLM Pilot Test Confidential & Proprietary to Food Technical Consulting 26 3/2/2011

27. Detailed Implementation Path Confidential & Proprietary to Food Technical Consulting 27 3/2/2011

28. Implementation Planning Confidential & Proprietary to Food Technical Consulting 28 3/2/2011

29. Estimating Implementation Costs Confidential & Proprietary to Food Technical Consulting 29 3/2/2011

30. Optimizing Implementation ROI Adhere to Change Management Plan Require a well orchestrated Project Plan Implement PLM functionality in a phased approach with highest value functionalities first. Implement high-quality training, with repeat follow-up Practice patience among employees during install Confidential & Proprietary to Food Technical Consulting 30 3/2/2011

31. Extracting PLM Strategic Value How to Drive Business Value from Your PLM Investment? Measure Value Against Performance Metrics: Aggregate Corporate Department by Department Intra-Department Performance Metrics (Cascading Scorecards based on KPIs or The Balanced Scorecard Metrics) 3/2/2011 Confidential & Proprietary to Food Technical Consulting 31

32. PLM Business Performance Metrics Increased Profitability Measured in EBITDA Growth New Products Enter Marketplace Faster. Time Saved Applied to Additional New Products to Market, resulting in measureable Sales Growth Fewer Customer Complaints Higher Certification Rate based on 1st Application Order-to-Cash Metric: Faster Delivery Time Order-to-Cash Metric: Faster Inventory Turn PLM Department Data can be used to measure and track business performance Confidential & Proprietary to Food Technical Consulting 32 3/2/2011

33. Tracking Business Performance Confidential & Proprietary to Food Technical Consulting 33 3/2/2011

34. Tracking Business Performance Confidential & Proprietary to Food Technical Consulting 34 3/2/2011

35. Tracking Business Performance Confidential & Proprietary to Food Technical Consulting 35 3/2/2011

36. Tracking Business Performance Confidential & Proprietary to Food Technical Consulting 36 3/2/2011

37. Extracting R&D and QA Strategic Value How to Drive Business Value from Your PLM Investment? Measure Value Against Performance Metrics: More New Products in Marketplace is Less Time Increased New Product Success Rate (%) Less Time Tracking Product Specifications Fewer Quality Complaints Higher Sales Person Satisfaction with R&D/QA 3/2/2011 Confidential & Proprietary to Food Technical Consulting 37

38. Managing Change Management The full ROI from a PLM implementation is realized in proportion to the degree of change acceptance. For example. An electronic document is a living document that should not be manually carried to another person for an approval signature. For example, a New Product or Quality Process Workflow must be adhered to in a collaborative way. For example, and R&D team member may need to document work at end of day electronically. Confidential & Proprietary to Food Technical Consulting 38 3/2/2011

39. Potential Road Hazards The full ROI from a PLM implementation is realized in proportion to the degree of change acceptance. For example. An electronic document is a living document that should not be manually carried to another person for an approval signature. For example, a New Product or Quality Process Workflow must be adhered to in a collaborative way. For example, an R&D team member may need to electronically document work at end of each day. Confidential & Proprietary to Food Technical Consulting 39 3/2/2011

40. Summary Document Management Data Management Formula Management Specification Management (Workflow & Approval) Certification Management (Workflow) New Product Development Workflow Management Internal & External User Data Access Marketing Calendar Workflow Management Interface w/ other biz apps like Genesis R&D, Infinity QS, Private Label and Retail Customers Data Mining - - - - - - to name a few! Confidential & Proprietary to Food Technical Consulting 40 3/2/2011

41. Summary PLM Business Need PLM Functional Requirements Solution Architecture (Strategic IT Fit) Implementation 80/20 Value Strategy Extracting Strategic Business Value Extracting R&D and QA Business Value Managing Change Management Confidential & Proprietary to Food Technical Consulting 41 3/2/2011

42. Specification Data Modeling Confidential & Proprietary to Food Technical Consulting 42 3/2/2011

43. 3/2/2011 Confidential & Proprietary to Food Technical Consulting 43 Specification Data Modeling

44. Confidential & Proprietary to Food Technical Consulting 44 3/2/2011