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MPUG, Houston, TX Jerry Cripe September 18, 2000 1 ON Semiconductor ON-Time Enterprise Program Management Information System Jerry Cripe Corporate Program Management Controller 602.244.7547
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MPUG, Houston, TX Jerry Cripe September 18, 2000 1 ON Semiconductor ON-Time Enterprise Program Management Information System Jerry Cripe Corporate Program.

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Page 1: MPUG, Houston, TX Jerry Cripe September 18, 2000 1 ON Semiconductor ON-Time Enterprise Program Management Information System Jerry Cripe Corporate Program.

MPUG, Houston, TXJerry Cripe

September 18, 20001

ON Semiconductor

ON-Time EnterpriseProgram Management

Information System

Jerry CripeCorporate Program Management Controller

602.244.7547

Page 2: MPUG, Houston, TX Jerry Cripe September 18, 2000 1 ON Semiconductor ON-Time Enterprise Program Management Information System Jerry Cripe Corporate Program.

MPUG, Houston, TXJerry Cripe

September 18, 20002

ON Semiconductor

Agenda

• Background

• Objective

• Approach

• Solution

• Summary

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September 18, 20003

ON Semiconductor

ON Semiconductor

We make the semiconductors that turn ON technology and connect you to your world!

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MPUG, Houston, TXJerry Cripe

September 18, 20004

ON Semiconductor

• Nokia market cap($265B) fell $52.1B in a few hours on July 28, 2000 as the CEO announced missing 2 telephone projects for this year and lower revenues per Financial Times.

• Intel’s lost critical-path planning ability per CEO in Electronic News, August 28, 2000 which attributed to falling behind AMD in areas of microprocessor development. Intel market cap fell froma high of $445B to $295B on September 26, 2000

Background

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ON Semiconductor

Management by the WebContrasting Views of the Corporation

Business WeekAugust 28, 2000

CHARACTERISTIC 20TH CENTURY 21ST CENTURYORGANIZATION The Pyramid The WebFOCUS internal ExternalSTYLE Structured FlexibleSOURCE OF STRENGTH Stability ChangeSTRUCTURE Self-sufficiency InterdependenciesRESOURCES Atoms-physical assets Bits-InformationOPERATIONS Vertical integration Virtual integrationPRODUCTS Mass production Mass customizationREACH Domestic GlobalFINANCIALS Quarterly Real-timeSTRATEGY Top-down Bottom-upLEADERSHIP Dogmatic InspirationalWORKERS Employees Employees & free agentsJOB EXPECTATIONS Security Personal growthMOTIVATION To compete To buildIMPROVEMENTS Incremental RevolutionaryQUALITY Affordable best No Compromise

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ON Semiconductor

Program Management Benchmarking

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ON Semiconductor

Each stage represents a breakthrough, not continuous improvement

Informal Management

Stage 0 Functional Excellence

Stage 1 ProjectExcellence

Stage 2PortfolioExcellence

Stage 3 Cross-Enterprise Excellence

Informal practicesbased on individual experience

Excellence within functions, but not across functions

Functions aligned for effective execution from concept to market

Processes aligned to achieveplatform leverage, portfolio balance and excellence in project selection and execution

Core processes linked across internal and external business partners for maximum leverage

Stage 4

Companies improve product development performance in stages

PMG StudyPittiglio Rabin Todd & McGrath

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ON Semiconductor

PMG studies have shown that companies with better practices achieve better results

•Mature (Stage 2b) participants—18% of the total—have implemented full cross-functionality at the project level and achieved better results

– Revenue growth– Time-to-market (TTM)– Time-to-profitability (TTP)– Wasted development spending– Commercialization success– Pipeline throughput per $MM spent

1% 2% 8%24%

65%

0%20%40%60%80%

Stages Stage 1 Stage2a

Stage2b

Stage 3

Dominant Practices Intended Practices 2000

4%18%

52%

18%0%

0%20%40%60%80%

Stages Stage 1 Stage2a

Stage2b

Stage 3

Note: Based on Product Development Benchmarking Studyby Performance Management Group

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ON Semiconductor

M a tu re (S ta g e 2 b ) p a rtic ip a n ts g ro w 3 X fa s te r th a nF u n c tio n a ls (S ta g e 1 )

8 .7%

1 3.7 %

27 .6%

0 %

5 %

10 %

15 %

20 %

25 %

30 %

F unc t io nal S ta g e 1

Tran s itio n al S tag e 2 a

M ature S tag e 2 b

T ra n s itio n a ls g ro w a t h a lf th e M a tu re S ta g e 2 b ra te

R e ve n u eG ro w th

N o te : B ased o n 1997 P ro d u c t D eve lo p m en t B en ch m ark in g S tu d y

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ON Semiconductor

Project Lifecycle

Customer Requirement

TechnicalRequirement

FrameworkDocument

PlanWork

Work Plan

CloseOut

Productor ServicePlan

ManageProductor Service

EvaluateUpgradeRestartCycle

Closeout

InvestmentDecision

Project Portfolio Management

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ON Semiconductor

ON Semiconductor Program Management Model

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ON Semiconductor

Why Program Management Model?

Organizational Process to Create:

• A decision process infrastructure to support a PM Matrix Organization

• Create a complete project/program life cycle process

• Resolution of technical/organizational issues

• Empowering program/project managers and their teams

• An effective Project Portfolio Management system

• Process to create Projects of optimized value to the Corporation

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ON Semiconductor

PSG Roles: Technical AlignmentStrategic alignment Portfolio ManagementDecision making Remove Obstaclesapprove gates Cross Functional Authority

Program Steering Group-Staff

Customer Commitment

Gates

Phase 0OpportunitySelection

Phase 1Definition

Phase 2Planning

Phase 3Execution

Phase 4Closure

Project Manager leads development process of empowered cross-functional team through project life cycle-produces Key Results

ON-Time Program Management ModelPSG and Project Manager Process

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ON Semiconductor

Enterprise Management Goals

• Predictive Management

• Performance Management

• Real World Interface

• Resource Management

• Decision Management

Objective

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Expectation Setting

• Project/Program Managers-Schedule & Tracking, Accountability

• Collaboration, Communication and Resource Management

• PSG-decision meetings

• Follow PMI-Project Life Cycle process

• Program register• project reviews-defined by PSG’s

•management by exception-give me the bad news!

• Active Project Portfolio Management

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ON Semiconductor

Baldrige Criteria for ON Semiconductor Program Methodology Model

• Leadership-Corporate PM protocol across ON Semiconductor

• Strategic Planning-PSG Criteria-linked to Strategic Plan, Portfolio metrics

• Customer and Market focus-PSG, Register, Portfolio scorecard

• Information and Analysis- Standard Methodology, planning, risk analysis, scheduling, tracking, Central Depository

• Human Resources focus-user group, master’s certificate training available

• Process Management-Central Depository, PSG’s, Controller team

• Business Results-Project Register and Project Portfolio Scorecard

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ON Semiconductor

Forced Date: 3 month’s to replace legacy MotorolaSystem called Dante which held 250 projects globally!

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ON Semiconductor

ON-Time PMIS(Program Management Information System)

Approach

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ON Semiconductor

PMIS Implementation Stages

• Overview of PM Practices/Software

• Assessing the Organization/Vendors

• Creation of PMIS with Preferred Vendor

• Pilot

• Deployment

• Sustaining the Momentum

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ON Semiconductor

Software Criteria

• Useability

• Capability

• Performance

• Interoperability

• Manageability

•Acquisition Cost

•Implementation Cost

•Maintenance Cost

•Time to Benefit

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ON Semiconductor

IntranetWeb Enabled

Portfolio Management ExecutiveDecision Making

ExecutiveDecision Making

Digital Dashboards &PM KnowledgeManagement

ProgramController

ProgramController

Performance Reports

ProjectControllers

ProjectControllers

ManagementReview

PSG

ManagementReview

PSG

ON-Time Enterprise Program Management

Project Managers

Project Managers

Project Managers

Project Managers

SeniorManagement

ResourceManagement

Team Leaders

CEOCEO

Executive Council

ProjectsProjectsFunctionalManagers

FunctionalManagers

Vice Pres/.Director

Vice Pres/.Director

Vice Pres/.Director

Vice Pres/.Director

FunctionalManagers

FunctionalManagers

PSG = Program Steering GroupSCM = Supply Chain ManagementCRM = Customer Relationship Management

Address Key Challenges: Accountability for schedules, budgets & deliverables Resource allocation & bottlenecks Performance measurement against baseline & expectations Risk, change, quality & issues management controls How to measure ROI benefits & value Workplace Productivity and Continuous Improvement projects

Suppliers (SCM)Customers (CRM)PartnershipsMatrix,i2, ON-Dex

Projectized organizational model to move at e-speed

ON-TimePMIS

COOCOO

EC EC

Internet

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ON Semiconductor

ON-Time PMIS System Architecture

M icrosoftP ro ject 98

M icrosoftP ro ject2000

D A N TE

M SP2000

D igita lD ashboard

O therProject

Data

P ro jectC entra l

SQLServer

W eb-basedServices

P ro jectC entra l

D ig ita lD ashboard

O utlook/In te rnet

E xp lorer/P ro j C entra l

DesktopPC

Data BaseEnvironm ent

Project/PortfolioM anagem ent

Project M anagem entM igration Environm ent

E -m ail/C om m uni-

cation

q Project Fram eworkq Risk & Issues

Managem entq O ther Tem plates &

Docum ents

Solution

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ON Semiconductor

ON-Time PMIS Digital Dashboard

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ON Semiconductor

ON-Time PMIS Framework Document

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ON Semiconductor

Issues & Risk Management

The “Profile” tab focuses on capturinggeneral information about the issue orrisk.

The “Resolution” tab focuses on theaction steps taken to resolve and/orclose the issue or risk.

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ON Semiconductor

Strategic Awareness

• Hypercompetition

• Strategic Intelligence

• Accelerate Strategic Decision-Making

Enterprise Project Portfolio Management

&Scenario Planning

Continuous Strategy will become the norm

Summary