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AVON. APMI Landscape Phase 1. Nov. 23, 2021.

Meeting Agenda (Nov 23, 2021):. . 1. Define and agree on the Objective and Scope of Phase 1 2. Phase 1 Project Plan 3. Overview of Phase 2 and 3.

Phase 1 Objectives:. . Identify process gaps , deficiencies and pain points on the business operations of APMI from Plan, Develop, Procure, Make, Deliver and Resource Management & Performance Evaluation. Formulate recommendations to address the identified gaps and to achieve the desired state ..

APMI ORGANIZATIONAL CONTEXT 6. PLANNING EXTERNAL CONTEXT CUSTOMERS SHAREHOLDERS AVON GLOBAL AVON REGIONAL EMPLOYEES COMMUNITY SUPPLIERS REGULATORY AGENCIES SOCIOLOGICAL TECHNOLOGY ECONOMY ENVIROWENT POLITICAL LEGAL COMPETITORS REQUIREMENTS 7 RESOURCE MANAGEMENT 8. OPERATION c PLAN DEVELOP PRODUCT 5. LEADERSHIP PROCURE INTERNAL CONTEXT 9. PERFOMANCE EVALUATION & 10. IMPROVEMENT DELIVER SATISFACTION & COMPLIANCE INTERESTED PARTIES CUSTOMERS SHAREHOLDERS AVON GLOBAL AVON REGIONAL EMPLOYEES COtNUNlTY SUPPLIERS REGULATORY AGENCIES PRODUCTS & SERVICES.

AVON GLOBAL POLICIES GLOBAL OPERATING AGENDA REGIONAL OPERATING AGENDA STATUTORY & REGULATORY REQUIREMENTS INDUSTRY SECTOR STANDARDS NEEDS, EXPECTATIONS & CONTRACTUAL REQUIREMENTS OF CUSTOMERS & ERESTED PARTIE APW VISION, POLICIES, STRATEGIES, PLANS, GOALS & OBJECTIVE APW PROCESS STANDARDS A PMI BUSINESS PROCESS FLOW PLAN 7. RESOURCE MANAGEMENT 5. LEADERSHIP NEW PRODUCTS IMPLEMENTATION REVIEW & IMPROVE DELIVER LEVEL 2 AOI .01.oo.01RF Rev. 6, 18 September 2017 INTERNAL 1 EXTERNAL CUSTOMER SATISFACTION REGULATORY COMPLIANCE DEMAND CAPTURE & ANALYSIS DEVELOP PRODUCT c.2 PRODUCTION PLANNING PROCESS WORK ORDER MANAGEMENT INVENTORY MANAGEMENT MATERIAL EQMTS PLANNIN PRODUCT LIFE CYCLE MANAGEMENT SOURCE.

AVON GLOBAL POLICIES GLOBAL OPERATING AGENDA REGIONAL OPERATING AGENDA STATUTORY & REGULATORY REQUIREMENTS INDUSTRY SECTOR STANDARDS EEDS, EXPECTATION & CONTRACTUAL REQUIREMENTS OF CUSTOMERS & INTERESTED PARTIES APMI VISION, POLICIES, STRATEGIES, PLANS, GOALS & OBJECTIVES APMI PROCESS STANDARDS REGIONAL NPD POLICIES ACCREDITED SUPPLIERS APMI BUSINESS PROCESS FLOW DEVELOP PRODUCT 5. LEADERSHIP PLAN NEW PRODUCTS IMPLEMENTATION PLANNING 0.2 ENCODING PLAN 0.3 FINISHED INGREDIENT PROCESS PRODUCT REGISTRATION 0.5 PACKAGE DEVELOPMENT & CONDUCT OF LINE TRIAL PROCURE 0.6 FINISHED STOCK PROCESS 0.7 REVIEW & IMPROVE DELIVER LEVEL 2 AOI .01.00.01RF Rev. 6, 18 September 2017 FINISHED STOCK SPECIFICATIONS COMPONENT SPECIFICATION PRODUCTION STANDARDS INTERNAL 1 EXTERNAL CUSTOMER SATISFACTION REGULATORY COMPLIANCE PRODUCT RELATED STANDARDS REGISTERED PRODUCT.

AVON GLOBAL POLICIES GLOBAL OPERATING AGENDA REGIONAL OPERATING AGENDA STATUTORY & REGULATORY REQUIREMENTS INDUSTRY SECTOR STANDARDS NEEDS, EXPECTATIONS & CONTRACTUAL REQUIREMENTS OF CUSTOMERS & INTERESTED PARTIES APMI VISION. POLICIES. STRATEGIES, PLANS. GOALS OBJECTMES ACCREDITED SUPPLIERS PURCHASE REQUISITIONS APMI BUSINESS PROCESS FLOW SOURCE DIRECT SOURCING INDIRECT SOURCING 5. LEADERSHIP PURCHASE €4 LOGISTICS MANAGEMENT PLAN MATERIALS RECEIPT & ACCEPTANCE MATERIALS STORAGE OR USE SERVICES REVIEW & IMPROVEMENT LEVEL 2 AOI.OI.OO.OIRF Rev. 6, 18 September 2017 SERVICES RAW INGREDIENTS. COMPONENTS PRODUCTION SUPPLIES INTERNAL / EXTERNAL CUSTOMER SATISFACTION REGULATORY COMPLIANCE.

AVON GLOBAL POLICIES GLOBAL OPERATING AGENDA REGIONAL OPERATING AGENDA STAT UTORY & REGULATORY REQUIREMENTS INDUSTRY SECTOR STANDARDS NEEDS, EXPECTATIONS & CONTRACTUAL REQUIREMENT OF CUSTOMERS & INTERESTED PARTIE APMI VISION, POLICIES, STRATEGIES, PLANS, GOALS & OBJECTIVES PRODUCTION PLAN ACCREDITED TPMS Aptvll 5. LEADERSHIP BUSINESS PROCESS FLOW MAKE LEVEL 2 AOI.OI.OO_OIRF Rev. 6, 18 September 2017 COMPONENTS 82 PROCESS PROCURE Fl STORAGE AND ISSUANCE DEVELOP PRODUCT PROCESS CONTRACT RAW IN ENTS FINISHED INGREDIENTS FINISHED STOCKS INTERNAL / EXTERNAL CUSTOMER SATISFACTION REGULATORY COMPLIANCE ENGINEERING SERVICES (Engineering, Utilities, Facilities) MANUFACTURING STANDARD MANUFACTURING MAINTENANCE DELIVER.

AVON GLOBAL POLICIES GLOBAL OPERATING AGENDA REGIONAL OPERATING AGENDA STATUTORY & REGULATORY REQUIREMENTS INDUSTRY SECTOR STANDARDS NEEDS, EXPECTATIONS & CONTRACTUAL REQUIREMENTS OF CUSTOMERS & INTERESTED PARTIES APMI VISION, POLICIES, STRATEGIES, PLANS, GOALS & OBJECTIVES ACCREDITED SUPPLIERS DELIVERY SCHEDULE ApMl 5. LEADERSHIP BUSINESS PROCESS FLOW DELIVER PLAN PROCURE LOCAL SHIPMENT NOTICE AND DOCUMENT PREPARATION TRANSFER TO NDC EXPORT G.3 ITEMS PREPARATION G.5 DELIVERY TRANSPORT RECEIPT CONFIRIRATION REVIEW & IMPROVE LEVEL 2 AOI .01.00.01RF Rev. 6, 18 September 2017 RAW INGREDIENTS COMPONENTS FINISHED STWKS INTERNAL EXTERNAL CUSTOMER SATISFACTION REGULATORY COMPLIANCE CUSTOMER.

Scope: Resource Management. . RESOURCE MANAGEMENT 5. LEADERSHIP 6. PLANNING GLOBAL POLICIES GLOBAL OPERATING AGENDA REGIONAL OPERATING AGENDA STATUTORY & REGULATORY REQUIREMENTS INDUSTRY SECTOR STANDARDS NEEDS, EXPECTATIONS & CONTRACTUAL REQUIREMENTS OF CUSTOMERS & INTERESTED PARTIES APMI VISION. POLICIES. STRATEGIES. PLANS, GOALS & OBJECTIVES 8.01 HUMAN RESOURCES MANAGEMENT B_02 INFORMATION TECHNOLOGY MANAGEMENT 8.03 FINANCIAL RESOURCES MANAGEMENT 8.04 DOCUMENTED INFORMATION 8.05 CLIALITY ASSURANCE & QUALITY CONTROL 8.06 FACILITIES MANAGEMENT B_07 UTILITIES MANAGEMENT B_08 SECURITY MANAGEMENT 8.09 8.13 GOOD MANUFACTURING PRACTICE CRISIS MANAGEMENT 8.10 ENVIRONMENTAL MANAGEMENT SYSTEM 8.11 OCCUPATIONAL HEALTH ANO SAFETY 8.12 LEGAL COMPLIANCE RESOURCE AVAILABILITY INTERNAL 1 EXTERNAL CUSTOMER SATISFACTION REGULATORY COMPLIANCE 8. OPERATION.

AVON GLOBAL POLICIES GLOBAL OPERATING AGENDA REGIONAL OPERATING AGENDA STATUTORY & REGULATORY REQUIREMENTS INDUSTRY SECTOR STANDARDS NEEDS, EXPECTATIONS & CONTRACTUAL REQUIREMENTS OF CUSTOMERS & INTERESTED PARTIES APMI VISION, Æ)LICIES, STRATEGIES, PLANS, GOALS & OBJECTIVES PROCESS DATA APMI BUSINESS PROCESS FLOW PERFORMANCE EVALUATION & IMPROVEMENT 5. LEADERSHIP CONTROL OF DOCUMENTS CONTROL OF RECORDS MANAGEMENT REVIEW PLAN PROCURE INTERNAL AUDIT CONTROL OF NONCONFORMITY CORRECTIVE & PREVENTIVE ACTION MANAGEMENT RESPONSIBILITY MAKE CHANGE CONTROL MEASUREMENT & MONITORING OF PROCESSES & PRODUCTS MEASUREMENT MONITORING OF ENVIRONMENT, HEALTH AND LEVEL 2 AOI-OI.OO_OIRF Rev. 6, 18 September 2017 DELIVER AREAS FOR IMPROVEMENT DATA ACHIEVEMENTS OF THE COMPANY PROCESS INFORMATION INTERNAL EXTERNAL CUSTOMER SATISFACTION REGULATORY.

52 Processes. EXTERNAL CONTEXT CUSTOMERS AVON Gtwt AVON REGIONAL SUPPLIERS REGULATORY AGENCIES TECHNOLOGY ECONWY EtMROt0ÆNT POLITICAL COMPETITORS 6. PLANNING 5. LEADERSHIP -kESOORce-üÄÅÅGEMENT DEVELOP PRODUCT PROCURE ERFORMANCE EVALUATION & IMPROVEMENT DELIVER SATISFACTION INTERESTED PARTIES CUSTOMERS SHAREHOLDERS AVON GLOBAL AVON REGIONAL EWLOYEES SUPPLIERS REGULATORY AGENCIES & SERVICES.

Scope: Summary. Operations In-Scope Out of Scope Plan (6) DEMAND CAPTURE & ANALYSIS PRODUCTION PLANNING PROCESS WORK ORDER MANAGEMENT INVENTORY MANAGEMENT MATERIAL REQMTS PLANNING PRODUCT LIFE CYCLE MANAGEMENT Develop Product (6) NEW PRODUCTS IMPLEMENTATION PLANNING SYSTEM ENCODING - FINISHED INGREDIENT PROCESS SYSTEM ENCODING - PRODUCT REGISTRATION SYSTEM ENCODING - PACKAGE DEVELOPMENT CONDUCT OF LINE TRIAL FINISHED STOCK PROCESS Procure (6) DIRECT SOURCING INDIRECT SOURCING PURCHASE MANAGEMENT LOGISTICS MANAGEMENT MATERIALS RECEIPT & ACCEPTANCE MATERIALS STORAGE OR USE SERVICES.

Scope: Summary. Operations In-Scope Out of Scope Make (7) RI WEIGHING FI PROCESS FI STORAGE AND ISSUANCE FS PROCESS MANUFACTURING STANDARD MAINTENANCE ENGINEERING SERVICES(Engineering, Utilities, Facilities) CONTRACT MANUFACTURING Deliver (5) Shipment Notice And Document Preparation FS TRANSFER TO NDC EXPORT ITEMS PREPARATION TRANSPORT ITEMS TO EXPORT DELIVERY RECEIPT CONFIRMATION.

Scope: Summary. Operations In-Scope Out of Scope Resource Management (13) QUALITY ASSURANCE & QUALITY CONTROL HUMAN RESOURCES MANAGEMENT INFORMATION TECHNOLOGY MANAGEMENT FINANCIAL RESOURCES MANAGEMENT DOCUMENTED INFORMATION FACILITIES MANAGEMENT UTILITIES MANAGEMENT SECURITY MANAGEMENT CRISIS MANAGEMENT ENVIRONMENTAL MANAGEMENT SYSTEM OCCUPATIONAL HEALTH AND SAFETY LEGAL COMPLIANCE GOOD MANUFACTURING PRACTICE Performance Evaluation & Improvement (9) CONTROL OF DOCUMENTS CONTROL OF RECORDS INTERNAL AUDIT CONTROL OF NONCONFORMITY CORRECTIVE & PREVENTIVE ACTION CHANGE CONTROL MANAGEMENT REVIEW MEASUREMENT & MONITORING OF ENVIRONMENT, HEALTH AND SAFETY MEASUREMENT & MONITORING OF PROCESSES & PRODUCTS.

Scope. Since the agreed project scope is too large with 52 processes, we will do a pilot implementation on a smaller scale. We can use our KPIs as basis to determine where the big opportunities are and select the pilot processes. Based on our YTD performance, missing KPIs are related to Cost (MAKE), Inventory (PLAN) and Quality..

Scope. Selection of Pilot Processes: Option 1 : Leadership Team to decide. Option 2 : Project Team to decide. -We need to form the team first with at least 1 representative per function. -Gather the team together to discuss the project objectives & scope and agree on what the pilot processes will be. Option 3 : Project Leader to decide. -We recommend PLAN to be our pilot scope since the processes under Plan have a direct impact on our Inventory KPI..

Phase 1 Project Plan. Planning Execution & Control Actual conduct of gap analysis. Close-out Final report on the identified gaps and recommendation of business solutions. Project review. What did we do well? What do we want to improve in performing the gap analysis for the other processes? What else did we learn? Assess Project Risks. What could go wrong? W hat could keep us from achieving our objectives? Consider the risks, mitigations & contingencies in the creation of WBS and project schedule. Process Mapping Creation of Work Breakdown Structure & Project Schedule. Strategy to achieve the objective: Process Mapping and Gap Analysis. Those processes with huge gap can be further analyzed using VSM as necessary . Keep in mind: the solution may or may not be system related. Initiation Define Project Objectives and Scope – done Nov 23, 2021 . Project team formation. Selection of Pilot Processes – 2 nd wk Jan 2022 Monitoring of actual task completion vs schedule ..

Next Steps:. Phase 1 Process Gaps Phase 2 IT Solutions Phase 3 Implementation of approved IT solutions Recommend Business Solution Cost Benefit Analysis Phase 3 Project Proposal Approval Timing: TBA Timing: TBA Timing: TBA.