A New Approach for You to Create Broader, Long-term Customer Engagements OCD Internal and Education and Training Purposes Only CL12092 What are the Details? A New Solution to Transform Performance • Comprehensive – Process improvement expertise (Using ValuMetrix® Services proprietary Lean consulting model) – Advanced technology (Ortho Clinical Diagnostics equipment and technology) 3 • Tailored to your priorities • Guaranteed outcomes OCD Internal and Education and Training Purposes Only Guaranteed outcomes… Low Risk. High Return OUR GUARANTEE: You only pay for performance goals achieved. 4 • A base fee for assessment and Lean team training • Balance of fee is paid when each agreed performance milestone has been attained • Your investment – the total cost of ownership (equipment and consulting services) - represents a small proportion of the overall return. OCD Internal and Education and Training Purposes Only An Integrated Approach 5 OCD Internal and Education and Training Purposes Only Tailored To Meet Your Goals Possible outcomes may include: • Shorter and more consistent turnaround times Controlled costs Performance-based management Capacity for growth New revenue generation • Optimized use of space • Reduced error potential • Improved productivity and reduced labor requirements 6 OCD Internal and Education and Training Purposes Only LX Solutions What •A Solutions (Products + Services) program that focuses on Outcomes •ValuMetrix consulting agreement in addition to the product contract Potential Outcomes •Overall Turnaround Time reduction •Space Optimization •Total Operating Cost reduction •Expansion through increased capacity How •50% of the consulting fee is considered a base and covers the knowledge and value transfer aspect of the consulting engagement •A Portion (up to 50%) of the consulting fees can be tied to performance based milestones •Customer pays milestone fees when target metrics are achieved 7 OCD Internal and Education and Training Purposes Only What’s Possible – Typical Benefits* • Process Cycle Times - 30-60% reduction • Floor space requirements - 20-40% reduction • Department capacity - 20-30% improvement • Productivity - 20-50% improvement • Inventory & inventory management time- 10-30% reduction • Increased quality through reduction in defects • Significant financial savings – 36 month ROI typically 250%+ • Organized workplace / manageable workload • Improved patient and employee satisfaction * Data on file: ValuMetrix® Services case studies 8 OCD Internal and Education and Training Purposes Only Qualify • CSM clearly understands customer issues and goals (at all buyer levels) • Positioning of LX Solutions to all buyers (Must include Economic Buyer) Quantify • Client Data collection • Assessment to determine Current State Metrics • Present Assessment to all Buyers (Must include Economic Buyer) Close • Agree on Future State Metrics/Outcomes • Build Consulting addendum into the solutions contract • • • Implement • 9 Project plan completed Client prepares implementation team Project start Consulting Revenue recognition upon milestone achievement OCD Internal and Education and Training Purposes Only Responsibilities Laboratory Responsibilities • Fully committed Lean Team • Laboratory executive sponsor • Commit to Process and Cultural changes Customer Senior Leadership Responsibilities • • • • Form an Executive Steering Committee Commit to potential structural/layout changes Ensure resource time commitment Drive accountability and cultural change OCD/ValuMetrix Responsibilities • Lead implementation • Transfer knowledge on Process Change • Monitor progress and document milestones 10 10 OCD Internal and Education and Training Purposes Only