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M E M O R A N D U M TO: ALL COMPANY XYZ EMPLOYEES FROM: MANAGEMENT TEAM DATE: JUNE 15, 1995 RE: CORE PROCESS REDESIGN Our company’s vision is to be a world class provider of flexible composite materials and interconnect components as measured by our ability to provide our customers with the best total value while also striving for excellence on behalf of our employees and shareholders. While we have achieved much in our journey so far, it is clear that to achieve our vision, we all need to continuously improve the way we conduct business in order to meet customer needs, reward our investors and make Company XYZ a better place to work. This thought was recently reinforced in the June issue of the Company XYZ News in which Jim Donaghy discussed the need for us to reduce our costs by 42% by the year 2000 to meet the requirements of Ford and other major customers. As part of our continuing effort to meet these challenges, we are about to embark on a powerful process, known as core process redeisgn, to move us closer to our vision by improving the way we develop Interconnect products. This redesign of one of our most critical processes will assist us in moving confidently into the future in line with our Vision, Mission and Goals. What is Core Process Redesign? Core process redesign is an improvement method used to fundamentally change the way organizations do business. In the case of Interconnect new product introduction, these changes will require addressing process accountability, employee involvement, cycle time reduction, interaction across departments and our ability to change. In other words, we will be using world class tools to re-examine the way we do business to enable and energize people to produce dramatic improvements in performance. These improvements are expected to result in significant personal and professional growth opportunities in addition to reducing costs. Why are we doing this? We are pursuing this course to improve our ability