Corporate Committee

1. Input: Company and BU Goals YES YES YES 0010.1 a Define Goals of PM & Project Plan with Mstones 0010.3 b Select / Develop Teams Around Key People 0010.8 a Establish Infrastructure 0010.3 a Select / Develop Teams Around Key People 0010.11 Check Point and TURNOVER 0010.16 a Change Request To SCD (PDD 595) 0010.8 c Establish Infrastructure 0010.10 c Roll Out / Implement 0010.16 b Take Action 0010.14 Communicate With Key Stakeholders 0010.9 Communicate With Key Stakeholders 0010.10 b Roll Out / Implement 0010.10 e Roll Out / Implement 0010.10 d Roll Out / Implement 0010.8 d Establish Infrastructure 0010.8 e Establish Infrastructure 0010.10 a Roll Out / Implement 0010.8 b Establish Infrastructure 0010.4 a Aggregate & Develop Cascading Metric System 0010.6 Approval? 0010.2 Approval? NO NO NO NO Business Strategic Plans Current Customer / Supplier SLAs Current SCM Performance Measures New SC Design Initiatives & Goals 0010.5 Approval? 0010.13 a Identify Responsibility & Action Needed to Eliminate Gap 0010.12 a Measure & Identify Gaps SC Performance Management - 0010 Sustain Design Implement 0010.7 Approval? MGMNT Organize Yes 0010.15 Structural Changes? Corporate Committee Empowerment SCD Program MGMNT Team No Project Team Customer Supplier IT

2. Performance Management - 0010 Definitions Process Design Roles (use org picture of Rob’s white paper!) • MGMNT • Steering Committee • Program MGMNT Team • Project Team • Internal Partner • Supplier • IT Boxes • Numbering • Hierarchy • Dotted Lines • Communication Exchange Arrows • Single Headed • Double Headed • Hierarchies

3. Performance Management - 0010 Define Goals and Develop Project Plan (Project Brief) • Define Role / Position under review • Requirements of scorecard • Interfaces / dependencies • Approach to build scorecard • Enablers (alternative solutions) • Constraints and assumptions • Resources needed • Project organization • Project and quality planning • Approval of Project Plan

4. Performance Management - 0010 Approval from Steering Committee • Present opportunity to Steering Committee in approved Powerpoint template, consisting of: • Position under review • Requirements of scorecard • Interfaces / dependencies • Approach to build scorecard • Enablers (alternative solutions) • Constraints and assumptions • Resources needed • Project organization • Project and quality planning • Be prepared to answer questions with backup slides if necessary? • At the end of the presentation, summarize specific action items to use if the decision is to proceed. • If not approved, summarize reasons why it was not approved, and file report, noting specific items that were overlooked or otherwise not strongly supported which may have resulted in non-approval.

5. Performance Management - 0010 Select and Develop Team Around Key People • Identify skills and knowledge needed • Identify people in possession of those skills and knowledge • Identify their managers, communicate budget and requirements • Identify key stakeholder and eventual process owner • Develop framework to include key stakeholder in development of PM • Select key people for team • Staff the team

6. Current SCM Performance Measures Current Customer/ Supplier SLA’s New SC Design Initiatives & Goals Business Strategic Plans Performance Management - 0010 Aggregate and Develop Cascading Metric System How to build a scorecard for SCM Review relevant business strategies and corporate goals for each position / role Identify the processes and metrics influenced by this position / role Develop draft scorecard for positions / roles Refine scorecard to best-few Submit for approval Note: Scorecard categories are a combination of the balanced score card and the Supply Chain Council’s scorecard • Review data and organize • Identify high level metrics that link to strategic priorities from supplier to customer • Develop 2nd level metrics • Develop 3rd level metrics Workshop March 15-17, 2004 Examples

7. Performance Management - 0010 Aggregate and Develop Cascading Metric System Example: 1. Review relevant strategies Role: Sourcing Vision: It is our vision to become one of the most effective and efficient roles inside Suncor, delivering key contributions to Suncor’s sustainable competitive advantage. Mission: It is our mission to create the best set of suppliers to meet the need of our internal partners, corporate goals, and enable Suncor to be stable and flexible at the same time. Strategy: We will accomplish our Mission by developing a portfolio of relationships that are driven by internal partners and with partners contributing best-in-class to Suncor’s specific corporate goals. In order to do so we have to establish processes that allow us to identify needs, opportunities, and gaps in advance, and allow us to react fast and accurate to occurring changes.

8. Scorecards Attributes Measures Targets To-Dos Internal Partner Satisfaction • Reliability • Flexibility • Product quality • Price • Service • Transparency % perfect orders Days for change % correct quality $, Q, R benchmark Response time # quality contacts From 85% to 95% From 4wks - 2wks From 90% to 95% Depends From 6hrs - 2 hrs From 8 - 12 Financial • On budget • Cost of purchase $Spent/$budget Current cost =<1 Down to 75% Processes • Transaction costs • Automatization • Forecasting $Curr. cost lifecycle %Curr. transacts %Curr. accuracy Down to 65% Up to 88% Up to 80% Learning • Soft skills • Hard skills Hrs/year Hrs/year Up to 40 Up to 70 Performance Management - 0010 Aggregate and Develop Cascading Metric System Example: 4. Refine scorecard to best-few

9. Performance Management - 0010 Establish Infrastructure 3. Requirements Definition • Business processes (continued) • User interface model • Data model • Interfaces • System implementation requirements (migration, user & operator training) • Test specification • User & operator documentation • Open issues (Validation of PM) • Project planning (updated) • Approval of System Proposal (Check Point) 4. System Design • Interface contracts (roles and responsibilities) • System architecture • Data design • System implementation concept • System test specification • User & operator documentation • Risk analysis • Open issues (updated) • Project planning (updated) • Approval of System Design (Check Point)

10. Performance Management - 0010 Roll Out and Implement 5. Construct and Test System • System test environment and specifications • Date storage • System, modules, and sub-systems • System implementation and training concepts (operator & user) • Production acceptance • Preparation of support organization for initial systems operation • User and operator documentation (completed) • Operations documentation • Test Gateway - Integration, Volume • Project planning (updated) • Approval of Tested System 6. Install, Commission & Deploy System • Production acceptance • Installation and hand-over • Customization of application software • Trial run • Establishment of required organization • Training and introduction • [Test Gateway - Pilot operation] • Open issues including stabilization issues • Project planning (updated) • Revise plan (input from Measure & Identify Gaps) • Approval of System

11. Performance Management - 0010 Check Point and HAND OVER 7. Project Closedown / Handover (Sign-Off) • Transition to Internal Partner and into Maintenance • Project closedown report • Project performance • Comparison with project brief • System appraisal • Lessons learned • Support & Maintenance

12. Performance Management - 0010 Measure & Identify Gaps • Gather Measures • Market Information • Supplier Information • Operations Information • Management Information How to: Gather measures Compare to desired Identify Gaps Analyze route causes to determine actions Assign responsibilities Take actions Review and follow up • Identify Gaps • Questionnaire against Project Goals involving: • Management • Internal Customers • Suppliers • IT

13. Performance Management - 0010 Measure & Identify Gaps & Identify Responsibilities and Actions • Gather Measures • Market Information • Supplier Information • Operations Information • Management Information How to: Gather measures Compare to desired Identify Gaps Analyze root causes to determine actions Assign responsibilities Take actions Review and follow up • Identify Gaps • Questionnaire against Project Goals involving: • Management • Internal Customers • Suppliers • IT • Identify Responsibilities and Actions • Needed to Eliminate Gap • Management Review Team • Schedule of Reviews • Review Action Plans

14. Performance Management - 0010 - NEXT STEPS