Proposal Document by mary goodwater

Proposal to Perform 5 Year Plan Study Client Inc. Dallas, Texas 27 April 2012

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Table of Contents

Table of Contents Program Understanding.......................................................................................................... 1 Program Execution Plan.......................................................................................................... 3 Deliverables............................................................................................................................. 15 Schedule.................................................................................................................................. 17 Company Background and Project Team................................................................................. 19 Cost Of Services...................................................................................................................... 23 Deviations (Assumptions, Exclusions, and Clarifications)......................................................... 23 Why CH2M HILL?.................................................................................................................... 25 Other Requested Information................................................................................................. 31 Appendix A: Visioneering Overview....................................................................................... 33 Appendix B: Schedule............................................................................................................. 43 Appendix C: Resumes............................................................................................................. 45 Appendix D: Bid Quotation Form........................................................................................... 63 Appendix E: Cost Estimate Classification Summary................................................................ 65 Appendix F: Representative Project Experience..................................................................... 67 Appendix G: Pro-Active Value Engineered Solutions.............................................................. 75 Appendix H: PSA with Confidentiality Addendum.................................................................. 77

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Program Understanding

Program Understanding Client is soliciting proposals for to develop a 5 Year Plan Study for its manufacturing facility located in Dallas, Texas. The study will encompass all aspects of the facility including processing, packaging, R&D, facility infrastructure, supply chain, personnel, and space planning. The only constraints for this study are basically the four walls of the building and the fact the facility is landlocked on all four sides. The end result of the study will be a road map providing guidance to Client for future development of the Dallas plant.

If you don’t have a roadmap with a final destination, it will cost more and take longer to get there.

For cost effectiveness, it will be important to preserve legacy systems, as appropriate, while incorporating new technology. Because this project entails the creation of a 5 Year Plan, a focus will be placed on continual improvement and sustainability based on the following issues expressed to us by Client:

Methods • Opportunities –– Consideration of non-demand driven processes –– Assessment of labs and lab equipment for possible replacement –– Improvement in ergonomic design, especially in packaging –– Process simplification –– Error proofing process –– Automated format changes –– Central Weigh upgrade may need to be readdressed in 2013 –– Enhancement throughout the entire supply chain • Concerns –– Material flow and zoning –– Impact on processing by the supply chain –– Interference with ongoing operations –– Much work in progress (WIP) created in Central Weigh –– Central Weigh needs to be “fixed” as it is more than just an equipment problem • Requirements –– Want clean-in-place (CIP) but must be able to keep flexibility for future –– Need rejection/inspection stations

Machinery • Opportunities –– Quicker product changeover –– “Paradigm shift in speed” for fill lines –– Improved scheme for palletizing –– Reduced tank farm failure –– Reverse osmosis (RO) water production system • Concerns –– Process control systems are “old” –– Cologne lines are extra long due to lack of Class I, Division 2 area near fill tube –– Air compressors have not been replaced or upgraded • Requirements –– Quality sampling through use of automated equipment –– Automated controls in the pilot area –– Automated process tracking for current systems until older equipment is modified or replaced

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Program Understanding

Controls and Planning Systems • Opportunities –– Pull-based planning systems –– Simplified visual process tracking techniques –– Automated process monitoring and documentation –– Automated material control and tracking systems • Requirements –– Compatibility with ERP systems

Management • Opportunities –– Three manufacturing plants (Dallas, China, Brazil) with possible future expansion to five • Concerns –– Difficulty in justifying and procuring new equipment unless a new product is being introduced • Requirements – A partner to help Client navigate and implement its long term strategy –– General return on investment (ROI) statements: ◦◦ Production equipment: 1-3 year payback ◦◦ Facilities equipment: 1-5 year payback –– Define and address high risk areas first

Personnel • Opportunities –– Address re-purposing/retraining of employees –– Because processes are not well documented, there is much dependence on tribal knowledge. A mature work force indicates the need for error proofing and documentation of processes • Concerns –– Workforce reductions will be considered where it makes sense • Requirements – Processing is the only area with Client direct employees

Environment • Opportunities –– Review of work flow (concentric levels within the facility from dirty to clean environment) –– Take advantage of packaging floor space using single minute exchange of die (SMED) and lean concepts –– Consideration of “open office” for support staff in production areas • Concerns –– Compliance with United States Food and Drug Administration (FDA), European Union (EU), and other regulatory agencies –– Overall space constraints • Requirements –– Clean food manufacturing, Pharmaceutical Grade D (milk products, toothpaste) –– Safety and quality are non-negotiable –– No construction/renovation can be performed in the plant during the last three weeks of July as sales representatives in business dress will be on site –– Sustainability: Zero landfill –– Labs and maintenance must stay with processing –– Regulatory change requiring pre-treatment of discharge from on-site treatment plant requires modifications to the waste treatment facility

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Program Execution Plan

Program Execution Plan In order to develop valid concepts that work within the existing constraints, we need to have a full understanding of the supply chain, work flow, material flow, and people flow. Our approach to develop a 5 Year Plan for the Client manufacturing facility in Dallas will require much more in-depth information than that provided in the RFP. A concept developed without this input from each program stakeholder will result in a model that does not achieve the “no stone unturned” and “new, bold ideas that make sense” directives from the pre-bid conference. The following sections describe our suggested approach to gather and incorporate this information so that a program “road map” can be developed. The “road map” will provide the direction for the process, packaging, laboratory, and facilities design. The first activity is a programming exercise that we call “Visioneering” (a detailed description of the Visioneering process is included in Appendix A). We have subject matter specialists from many different industries, including beauty care, and we will use this knowledge to assist you. Visioneering requires each stakeholder to participate to assure the “roadmap” takes the entire team in the best possible direction for the future of Client.

Programming (Visioneering) Overview CH2M HILL proposes to begin this project with a programming session to validate, challenge, and refine your concept for future state operations and facilities. CH2M HILL has developed an innovative programming activity for the purpose of rapidly obtaining consensus from stakeholders on these complex issues by working together in a team environment. We call the process “Visioneering”. The result is consensus regarding the preferred concept (road map) upon which succeeding design and implementation activities will be based. This consensus is, in fact, one of the major benefits of Visioneering. Visioneering is a proven tool employed to develop and compare alternative conceptual designs, and reduce front end planning time and cost when compared with the more traditional approach of individual data and information gathering interviews, consolidation of notes, verification of data, resolution of conflicting data, and concept development, review and change. Whereas the more traditional approach typically takes one month or more, Visioneering accomplishes the same outcomes in three and a half days. It is an effective tool for developing specific operational concepts such as manufacturing process design, facilities layout, and material movement and flow. We have used Visioneering with great success for more than twenty years. The program combines the knowledge of the stakeholders in your business along with CH2M HILL’s subject matter specialists, applying Lean tools and techniques to design flexible, efficient operations. Visioneering starts with a handson Lean & Agile workshop (concept-level training and simulation) and an operations conceptual design session (concept application). This proven planning methodology has been used successfully by CH2M HILL to assist our clients on hundreds of projects.

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Program Execution Plan

Our Visioneering team will be led by one of our experienced Visioneering facilitators with proven experience in manufacturing operations process design and operations improvement. The team typically consists of 16 to 25 individuals from your organization representing management, manufacturing, logistics, sales, production control, scheduling, R&D, micro, quality, engineering, hourly labor, and human resources.

Providing Value Visioneering allows everyone in the organization to view the future in an entirely different manner through a â&#x20AC;&#x153;Lean lensâ&#x20AC;?, and develop future state operations that will meet the needs of your business and satisfy the demands of your customers, the independent beauty consultants. The process also results in the development of a rough order of magnitude (ROM) cost estimate and identifies the milestone events required to move from the current state to the desired future state. When Visioneering has been completed, Client will have a detailed vision of the future of the organization. Most importantly, the stakeholders in the process have a clear understanding of what must be done to achieve these often radical changes to processes, facilities, and culture. Change is achieved under the umbrella of an over-arching plan developed by consensus of the people responsible for your success.

Lean Operations Design Review After visiting your facilities in Dallas, our team will show how significant benefits can be achieved by employing Lean tools and techniques to substantially reduce the amount of non-value adding space such as warehousing/storage and offices, thus increasing the percentage of overall space that can be used for value-adding activities (production). Client proudly fulfills orders within one day of order receipt. Therefore, we will begin with a stretch goal of setting up manufacturing operations so that what is made today can be sold today. In this way, we will try as nearly as possible to accomplish order fulfillment through manufacturing flexibility and less through the availability of built up inventories of finished or semi-finished goods. We use our Lean Outcomes Architecting design methodology to integrate the equipment, information systems, and human systems to design efficient, Lean Manufacturing operations.

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Program Execution Plan

The following graphic illustrates our Lean Outcomes Architecting design methodology.

CH2MÂ HILL sees that form follows function by designing new, renovated, or expanded facilities from the inside, out. Following Visioneering, we will employ Lean principles in the refinement of the Client manufacturing operations and step beyond high level Lean principles to include design that will truly support Lean Manufacturing operations. We will coordinate with facility design by going beyond the standard lean definition of waste to reduce the amount of raw materials used, lessen the use of energy, find ways to reduce toxic release into the air or the water to decrease the need for waste treatment and water purification systems along with diminishing the induction of contaminants. Our team will focus on understanding the product, the manufacturing process, and operations to help integrate the manufacturing processes with supply chain logistics requirements to produce to demand.

Our team will focus on understanding the product, the manufacturing process, and operations to help integrate the manufacturing processes with supply chain logistics requirements to produce to demand.

The implementation of Lean methodologies and practices has and continues to enable excellence in quality, lead times, and cost. We realize that Sustainability practices should be applied in combination with Lean Manufacturing capabilities to deliver superior quality, shortened lead times, and best in class cost position in an environmentally responsible way.

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Program Execution Plan

Although industry has treated Sustainability as a stand-alone initiative in recent years, studies of Lean Manufacturing and Sustainability have shown them to be mutually reinforcing design elements that will support your business strategies. Therefore, CH2M HILL has developed an integrated approach to operational excellence and Sustainability excellence in a highly interdependent program that provides unique solutions by combining what most others regard as stand-alone initiatives. This type of approach offers benefits at a lower investment level by exploiting the synergies of both philosophies. We advance Lean Manufacturing and Sustainable solutions early in the project and carry them through to commissioning rather than approaching them as an afterthought. This prevents having to spend additional capital to modify or improve recently completed changes or new facilities. We refer to this approach as the “Factory of the Future”.

In this new perspective, efficient use of energy and water, for example, as well as the curtailment of waste to landfill and other effluents are critical elements of excellence in your core business processes. Lean practices can be seen as not only providing manufacturing benefits, but also ecological benefits through the reduction of forms of waste from the manufacturing operations. Many aspects of sustainability are natural outcomes of the Lean approach. Sustainability and “Green” methodologies take a more detailed approach. CH2M HILL is unique in that we have the capability to combine both and help Client achieve the “Pink Doing Green®” initiative.

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Program Execution Plan

Toward this end, our scope of work includes the following: • Create value stream maps (VSM) of the Client product families and highlight potential opportunities to achieve improvements through the application of Lean tools and techniques. We will use these to identify the gaps between current operating practices and the vision for the future facility, and as the basis for capacity analysis, concept design of manufacturing processes, and conceptual layout development. VSM can also serve as the foundation of a simulation model that enables design of experiment, the monitoring of WIP, production lead time, cycle time, changeover time, and efficiency. • Incorporate cross industry best practices and technology transfer to improve the manufacturing process. • Incorporate design features to support operational and process improvements including changeover time reduction through application of SMED techniques (point of use tool storage, specifying external steps to be done prior to machine shutdown, removing waste from external steps, standardizing changeover procedure, use of changeover teams, documentation of standard work for changeovers, use of changeover “carts” and technologies), and other Lean Manufacturing tools to provide the flexibility to produce smaller batch sizes for low volume, high mix products with reduced non-value added activities and time. • Balance process and packaging operations to prevent pre-packaging inventory surge and storage cycles. • Provide supply chain planning to reduce the amount of materials stored in the Client facility including raw materials, packaging materials, and finished goods. This includes suggestions for revised supplier relationships, procurement techniques, delivery intervals and quantities, calculations for properly sized Kanbans including upstream and downstream Kanbans for batch operations, and finished goods “supermarkets” • Integrate process logical, unidirectional and continuous flows for processes, materials and people. This includes layouts with integrated quality audit stations and team quality review/

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reject stations. Layouts will be designed specifically for people flows and reduced travel distances. Develop process arrangements with logical flows to decrease the number of personnel moves that require gowning down and gowning up, if applicable. Develop facility and site conceptual arrangements that eliminate cross flows and utilize the flow of trucks, automobiles, and people. Design to implement and facilitate Lean logistical support including kitting for manufacturing and packaging processes. Design for use of modular technology to increase flexibility wherever practical. Design for increased process visibility between manufacturing lines and processes. Design for limited redundancy in the manufacturing process. Diminish footprint by reducing on-site inventories based on high turnover rates and shortened cycle times, revised supplier relationships, and efficient layouts and processes. Our Lean specialists and LEED® accredited CH2M HILL professionals will study the planned process capabilities and practices, systems, operational metrics and Mary Kay’s potential to effectively and efficiently reduce, reuse and recycle resources during a “LEED-like” evaluation. Develop and present to Client an objective representation of the key gaps and opportunities from both the operational and sustainability perspectives. Define storage and material handling systems that will be required to support the equipment layout and defined operations. Integrate demonstrated off-the-shelf technologies. Introduce appropriate level of technology and automation; change from manual processes, and automate control of defects - error proof, control Key Process Input Variables (KPIVs) and Key Process Output Variables (KPOVs). Utilize automated cleaning technologies and disposables wherever practical to improve cleaning processes, efficiencies and times.

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Program Execution Plan

• Make use of continuous processing equipment from other industries (particularly food and chemical industries) to reduce variability and shorten cycle times. • Use proven tools, including Fitts Law, to recommend the appropriate levels of technology to use in processes, material handling and tracking systems, and the flow of information. • In addition to traditional cost/benefit calculations, CH2M HILL will consider Key Lean Metrics to help make practical design decisions, including: –– Agility –– Productivity ◦◦ Total set-up and ◦◦ Total labor dollars as changeover hours as a a percentage of VA percentage of run hours dollars (VA dollars = revenue dollars - direct ◦◦ Downtime percentage by component dollars) machine or work zone ◦◦ Total labor hours versus ◦◦ Average set-up time per per VA hours occurrence – – Floor Space –– Inventory ◦◦ Total square feet per VA ◦◦ Total number of inventory dollars turns ◦◦ Total building dollars ◦◦ Inventory dollars as a as a percentage of VA percentage of Value dollars (rent, amortization, Added (VA) dollars facilities maintenance, ◦◦ Raw material in inventory utilities) as a percentage of total bill of materials (BOM) purchase dollars It is our understanding that some of the equipment in the current facility is arranged in a “job shop” manner. Each operation (weighing, blending, and packaging) is segregated into different areas. In alignment with Lean principles, it will be important to consider arranging the equipment into specific product production lines, or focus factories, with the necessary equipment for each line physically separated from the other lines. One of the key areas that needs to be improved or “fixed” is Central Weigh. It is typical for large variation to exist in Central Weigh activities. CH2M HILL will identify causes of variability by examining operator intervention, technology, quantities of raw materials weighed/batch sizes, and cleaning between weighing operations. We will then design systems and/or recommend techniques for reducing variability and achieving required capacity.

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Program Execution Plan

Activity Deliverables • Process equipment and packaging line layouts • VSM • Assessment of process recommendations against Key Metrics • Automation and continuous processing recommendations

• Recommendations for use of disposables and other tools for reducing changeover times • Equipment recommendations for increased process intensity • Coordination with facility design to reduce footprint

• Recommendations for process and workflow automation (Jidoka: a change from a manual process to a machine process to control defects) to help achieve the appropriate level of process consistency

Transition and Implementation Planning CH2M HILL develops a transition plan during the conceptual development/schematic design phase as a validation step in the project planning. We use the results of the Visioneering process (roadmap) in terms of production goals, product mix, schedule milestones and capital limitations to produce a series of stepby-step plans and drawings that describe what the plant will look like at various points in time within the evolution planning process. The purpose of this effort will be to develop a high level project implementation plan that includes design, renovation and upgrade of facilities, equipment procurement and installation, relocation of existing equipment, how this will impact production, and how we will mitigate that impact to prevent disruption of product delivery. Issues concerning production interruptions will be discussed along with the anticipated impact on relocation costs associated with reducing possible disruptions. Included in the relocation plan will be adherence to regulatory requirements with regard to good manufacturing practices (GMP), health, and safety including environmental cleanliness for products with less robust preservatives. These points in time always reflect the milestone schedule dates of inventory builds, shutdowns or major planned production changeovers culminating with the date of project completion and turnover. We also create drawings depicting a monthly window within this overall schedule to demonstrate various levels of planned progress – again emphasizing the “how”.

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Program Execution Plan

Evolution Planning Evolution planning is a method of demonstrating the solution path from the current plant configuration and operation to the new configuration and operation. As a validation tool, the evolution plan incorporates issues related to construction activities involving the facility as well as the coordination with the process equipment implementation. Important considerations for the construction activities are addressed graphically, including: • Site traffic patterns for Client and contractor parking and corresponding personnel and material flows • Location and timing of placement of construction walls and egress points • Demolition activities below grade, at grade and overhead • Installation of infrastructure progress and finishing of areas to the point of readiness for process equipment installation The evolution plan takes this construction status as the baseline and superimposes upon this framework the installation of the process equipment from delivery to site, staging and pre-assembly to movement into the envelope of the facility, installation, debug and startup. Any number of drawings can be created within this process based on the complexity of the installation, the needs of an ongoing production process to validate the timing of current process modifications, the display of a cash flow projection, and a summary of major milestones for upper level management. Experience to date suggests that, at least, the current state is used as the baseline and each major milestone date is displayed separately. Typically, major events such as shutdowns or process changeovers are depicted with two drawings, illustrating both the immediately-before and immediately-after states. A monthly status drawing is also beneficial in the early stages of mobilization and construction. The focus of the evolution plan continues to be used as a validation tool to demonstrate the “how” of the project execution and to coordinate these actions within the limitations of your ongoing production environment. It can be used early in the project process to validate CH2M HILL’s knowledge of Mary Kay’s goals and then as a living tool/ roadmap to communicate plans, progress and coordination issues as the project progresses. As a process and working tool, the description and drawing evolution plans complement the scheduling function and serves to support it in a more visible form.

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Program Execution Plan

Project Activity Areas Packaging Overview CH2M HILL packaging professionals have toured on several occasions the packaging facilities located in the Client Regal Row Dallas manufacturing site and are familiar with the complexities and demands being placed on your operations. In our detail review of the Client 5 Year Plan Study RFP, we find the sections of the RFP that pertain directly to the Packaging Engineering efforts are: Section 5

Project Execution Plan

5.1

Engineering

5.2

Process and Packaging Engineering

5.6

Electrical

5.7

Controls Systems

5.8

Operating Modes

5.9

Machine Throughput

5.10

Inspection Requirements

5.11

Quality Requirements

Section 6

Areas of Work – Item #2 Packaging

Section 7

Manning of Machines

Section 8

Changeovers

Section 9

Specialty Tools

Section 15

Training

Section 16

Ergonomics

Section 17

Electrical Design Basis

Section 18

Acceptance Criteria

We are fully capable and prepared to execute the engineering tasks listed in these sections, complete the deliverables, and provide the engineering services necessary in each phase that pertain to the packaging equipment, lines and operations. We intend to complete this work in conjunction with participating in the CH2M HILL-recommended Visioneering process along with appropriate Client resources. It is premature for us to make any recommendations regarding technology selection, determination of the levels of automation, controls and information, and configuration of packaging assets, until the results from the early phases of programming have been selected and can be agreed upon. This would include understanding the supply chain both internal and external to the manufacturing facility, and familiarization with the history and experiences Client has with various packaging technologies, equipment, and at an operational and engineering level. ©2012 CH2M HILL Confidential and Proprietary

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Program Execution Plan

Process Overview CH2MÂ HILL has detailed knowledge of the processes at the Dallas manufacturing facility from previous projects performed on-site. The phased approach defined in the RFP may be significantly modified based upon the roadmap that is developed during the programming exercise (Visioneering) previously described. Upon review of the RFP documents and drawings, we have the following understanding of the process changes:

Phase 4 Layout 2014

Phase 3 Layout 2012/2013

Phases 5-7 Layouts 2015-2017

This phase is the beginning of the consolidation of like processes (viscosity and shear characteristics) matched to the existing fill lines on the first floor. Of the two Phase 3 options, this one is recommended because: 1) the impact to the operating facility (production) can be managed well, 2) there are automated systems introduced to immediately improve production throughput, and 3) allows time for adjustments as there are three main parts of the moves that can be done serially if production and inventory permit, with diminished impact to work and people flow in the area.

Assuming that sales projects and inventory have not been impacted previously, and the growth of the unit volume and stock keeping units (SKU) are within plan, these three phases are eventual replacements of the majority of the manual or semi-automatic batch production systems. The strategy allows for acceleration or deceleration of the construction activity based on cash flow and SKU movements.

Option 2: Of the two Phase 3 options, this not as strongly recommended because: 1) the impact to the operating facility (production) cannot be managed as well as the first option as there is no net space gain. As positives, Option #2 carries some of the benefits of Option #1, such as 1) automated systems introduced to immediate improve production throughput are set up, and 2) reduces time for adjustments as there are three main parts of the moves that cannot be done serially.

Phase 4 is the beginning of freeing up more space for automated formulations of product for packaging on the first floor. This also marks the beginning of additional or replacement packaging equipment on the first floor. Tank moves in this part are efficient as they move to unoccupied space to free up area for the introduction of additional automated equipment.

To reduce construction impact on existing operations, CH2MÂ HILL recommends shop-fabricated making modules wherever feasible. Modular installation of skid-mounted tank/agitator/blender/pump/heating/ cooling equipment improves installation time, standardizes operations, and facilitates ongoing maintenance. Modular installation offers potential savings on design cost, first cost, operating cost and maintenance cost for the life of the equipment. Standard designs offer efficient utilization of crosstrained resources, less opportunities for off-quality production and are a key element of rapid change product making systems.

Modular installation offers Client minimal disruption and facilitates cross-utilization of personnel.

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Program Execution Plan

Research and Development Laboratories/Commercialization - 5 Year Space Plan With a 50% increase in floor space for these activities, and a potential corresponding increase in production output for the rest of the facility, it may be advantageous to develop the new and enlarged facilities in proximal locations where resources and equipment can be shared (process) and pilot line development shared (packaging). Dependent upon the time frame for the growth of these areas in alignment with the process floor changes to occur, the expansion of facilities could be done concurrently with the process floor changes resulting in a reduced schedule and cost and an integration with actual versus new line processes and packaging. Primarily, the portions of the “Lab Areas” to be integrated would be those activities associated with analytical research services, commercialization, product development, process development and product safety. Optionally, skin care research could be included dependent upon the current time line for these products matching the expansion of the other facilities. In this way, an efficient pilot line for both process and packaging can be developed and utilized for most products to be produced in the future. This would also allow for “real time” experimentation and development as the products are moved to production on similar equipment in a similar location.

The systems that will be affected are: • • • • • •

RO water system Compressed air system Air handling system Chilled water system Electrical system Data acquisition systems (new and existing)

The RO water system is currently being upgraded. The upgrade includes the distribution piping and equipment. Any dead-legs in the distribution system will need to be eliminated to maintain the cleanliness level required. The existing compressed air system consists of two 150 HP oil-filled compressors connected in parallel for base load and one 150 HP oil-filled compressor with variable speed trimming. Air-cooled compressors located outdoors are supplementing the indoor units at this time. This equipment is at the end of its useful life and is in need of replacement with oil free compressors to meet the cleanliness requirements. New refrigerated driers to provide a -40°F dew point are also required. All carbon steel piping downstream of the air compressors should be replaced with stainless steel to the packaging lines.

The quality assurance/quality control (QA/QC) activities, regulatory activities and corporate quality activities would remain independent and separate from the development pilot lines. This would adhere to compliance rules and allow an independent function to continue.

The existing plant air handling system must be modified to provide more pressurization. This will be achieved by segregating various areas of the facility with area separation walls. The areas that are in direct contact to the product will be the cleanest areas with progressively “dirtier” areas surrounding the cleanest areas.

Facilities Overview

The electrical system will be evaluated after the other facility infrastructure system changes have been identified to determine the impact to this system.

As noted previously, the results of the programming session (Visioneering) will dictate the process, packaging, and R&D modifications and changes to the facility. The changes to these areas will cast a ripple effect to the facilities portion of the plant. The environmental changes to meet the cleanliness requirements will have the greatest impact to the facilities infrastructure.

As the facility moves to greater automation, in both process and packaging, current data acquisition and management systems will need to be upgraded and integrated. These upgrades and integration will lead to improved process consistency, better compliance with regulatory requirements, and enhanced information concerning the operations of the facility and identification of process and packaging bottlenecks.

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Deliverables

Deliverables CH2M HILL will provide project deliverable documents based upon the roadmap developed during the Visioneering session. In addition to the activity deliverables noted previously, the documents include: • 5 Year conceptual design and engineering drawing for new equipment layout and related overall facilities improvements • 1st Year Class 4 cost estimate (per the Association for the Advancement of Cost Engineering (AACE)) for equipment replacement and overall facilities infrastructure renovations including recommendations on when to use low, medium and high cost equipment, and installations to achieve value for Client • 2nd Year Class 5 cost estimate (AACE) for equipment replacement and general facilities infrastructure renovations including recommendations on when to use low, medium and high cost equipment, and installations to achieve value for Client The deliverables will be developed using the following activities that are summarized below and presented elsewhere in more detail within this proposal: • Programming exercise and consideration of future growth needs throughout the facility • Discovery and clarifications / data collection / field verification related to the study of packaging, processing, and R&D • Review of control systems • Analysis of current facilities supports (i.e. electrical capacity, compressed air, steam, chilled water, RO water) • Review of R&D physical space and processes with recommendation of beneficial changes • Lean and SMED review of processes and facilities • Analysis of material flow throughout whole facilities • Recommend process work flow for packaging and processing • New equipment for process and packaging needs • Recommended improvements for material flow in consideration of the “Required State of Environmental Quality” • Assign environmental quality throughout the Client facility based on product integrity and employee safety (i.e. Pharma D and Pharma C) • Detailed Client brief to senior leadership to outline the understanding of project scope and needs

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Schedule

Shown below is a graphic representation of the proposed project schedule. A Microsoft Project schedule, as requested in the RFP, is provided in Appendix B.

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Company Background and Project Team

Company Background and Project Team Founded in 1946 and headquartered in Denver, employee-owned CH2M HILL is a global firm providing engineering, construction, operations, and related technical services to public and private clients. With $6.4 billion in revenue for 2011, CH2M HILL has consistently been recognized as an industry leader in program management, construction management, and design, as ranked by Engineering-News Record (2011). For almost a decade, we have been one of the top design companies offering unparalleled capabilities in industrial processes for the manufacturing industry.

Our staff of almost 30,000 employees operates out of 174 area offices worldwide. We have a centralized management organization responsible for the deployment and performance of our resources. As a company, we align our resources to best fit the location and technology needs of the project from a vast network spanning the globe. CH2M HILL has delivered thousands of projects in a variety of locales around the world, ranging from pipelines in Alaska and Siberia to manufacturing facilities in Singapore and Puerto Rico. CH2M HILL provides full-spectrum planning, engineering, construction, and operations & maintenance services that meet the specific needs of our clients and their communities. We listen to our clients and develop innovative, practical, and sustainable solutions on every project, every time. For more than 65 years, our business has always been about taking care of clients, delivering great work, doing right by employees, and staying true to our basic beliefs: • Clients should have the most attentive and knowledgeable service possible.

• Those who serve clients must have a strong professional and personal interest in their success.

• Projects producing the best results for clients are valuable for all involved.

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Company Background and Project Team

These beliefs led CH2M HILL to become the forward-thinking group of professionals we are today, dedicated to helping clients overcome limitations, and achieving that better world. We have had the pleasure to serve over 44,000 customers worldwide.

Protection of people and the environment is a CH2M HILL core value. As a result of our processes and systems, we have won several industry awards from our customers for project quality, health and safety, and customer satisfaction. Like Client, CH2M HILL has received several Voluntary Protection Program (VPP) Star Awards from Occupational Safety and Health Administration (OSHA), and we are dedicated to maintaining the outstanding safety record at the Regal Row site.

Our strong commitment to help clients achieve their full strategic and operational agendas is evident in our high volume of repeat business and numerous long-term client relationships—many of which have spanned decades. Such longevity is a testament to our value as a trusted partner and our versatility in filling multiple roles, including service provider, business partner, advocate, and adviser. By partnering with our clients and their stakeholders, CH2M HILL delivers projects and builds relationships that stand the test of time. The project team will consist of the appropriate Client personnel and the following CH2M HILL staff members: CH2M HILL Team Members

% of Time Dedicated to Project

% of Overall Effort

Program Manager

Robert Leazure

Micro Consulting

John Schaefer

Lean Manufacturing Specialist

Dennis Stamm

Visioneering Facilitator

Steve Frech

Architect

David Groseclose

Packaging Engineer

Dan Finazzo

Processing Engineer

George Morgan

Mechanical Engineer

Michael Loftus

Electrical Engineer

Adam Nicely

Project Role

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Company Background and Project Team

Robert Leazure (Program Manager) has over 10 years of project management experience on both design and design/build projects for new construction and building renovations. He has been actively involved with Client projects at the Regal Row facility for several years. In addition, he offers over 24 years of professional experience in the performance of electrical (power distribution, lighting, fire alarm, UPS, generators, grounding and lightning protection) design, specifications, cost estimation, and construction support for industrial, commercial and government projects. John Schaefer (Micro Consulting) has over 28 years of professional experience in the operation, process design, project management, and construction management of high technology manufacturing plants. His project background includes all phases of design from project concept through start-up of grass roots facilities, plant expansions, plant renovations, and plant closures. He is experienced in the commissioning and start-up of air abatement systems, wastewater systems, industrial hot and cold water systems, cryogenic systems, specialty gas systems, high purity water systems, cleanrooms and chemical systems as well as remediation of hazardous materials, biohazard and chemical facilities. Dennis Stamm (Lean Manufacturing Specialist) has over 35 years of broad-based business experience in industrial engineering, production management, and manufacturing consulting with emphasis in the areas of process design and improvement, Lean transformation planning, and strategic planning. He offers extensive leadership and managerial experience in the areas of strategic planning, organizational planning, and Lean transformation consulting. With a deeply rooted understanding of Lean Sigma principles, his work results in the most efficient and effective use of resources to achieve top- and bottom-line goals. He is a transformational leader with proven capabilities to develop and lead organizations through the entire planning and implementation process from strategic planning through supply chain network planning.

Steve Frech (Visioneering Facilitator) has over 30 years of broad-based business experience in the heavy product, transportation, and aerospace industries, with emphasis on engineering, product development and support, operations, sales, and program management. He has extensive leadership and managerial experience in the areas of strategic planning, functional department planning, department budgeting; also customer, employee, and organization development. He is a transformational leader with proven capabilities to develop and lead organizations through the entire product development and customer delivery process from strategic planning and initial sales, through product design and manufacturing, to aftermarket customer and product support. His expertise includes deeply rooted Lean enterprise principles, resulting in the most efficient and effective use of resources to achieve top- and bottom-line goals. David Groseclose (Architect) has more than 34 years of experience as an architect for a broad range of science and technology projects in manufacturing, governmental, educational, institutional, and commercial sectors. In addition, his experience in sustainable design began in the late 1970’s and includes building integrated photovoltaics (BIPV) as well as buildings that incorporate active and passive solar design. Mr. Groseclose is one of our firm’s most valuable LEED® experts serving private sector clients. Dan Finazzo (Packaging Engineer) has over 30 years of experience providing project engineering services in materials handling and packaging systems. He has hands-on engineering experience in detailed engineering activities, plant management, plant maintenance, plant capacity studies, systems improvement activities, new plant construction, and facilities consolidations. He is experienced in the packaging field in pre-plan project activities, development of requirements, final design, construction and installations, startups, and post project reviews and audits. Areas of expertise include packaging specific project management, package equipment and systems development and implementation, equipment developmental activities, optimization and throughput studies/enhancements, and equipment standardization solutions.

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Company Background and Project Team

The primary contact for this project will be the Program Manager, Robert Leazure. The CH2M HILL Global Account Manager for Client is Maria-Elena Tierno, who will serve as a secondary contact. She is readily available to assist in any capacity for successful delivery of this project or any other services Client may require.

George Morgan (Process Engineer) has over 26 years of experience in project engineering and management in process industries, with an emphasis on first generation processes. He also has 15 years of handson process design and development work. He has developed tools, systems, and operating procedures for the efficient execution of small capital projects. His project work includes conceptual studies, detail design through construction, commissioning, and startup. As a technical discipline leader, he is responsible for the resources, work processes, quality, development, and growth of the process engineering and piping groups. Michael Loftus (Mechanical Engineer) has over 18 years of professional experience in mechanical (HVAC/plumbing/fire protection/process piping) design, specifications, production, cost estimation, construction administration, and project management for new large construction and renovation projects. His background includes development of design concepts (HVAC/plumbing/fire protection) and supervision of design through all phases of production and construction. He offers expertise in demandside energy reduction and energy management for commercial and industrial facilities as well as building modeling for energy analysis, design of large central plants, toxic and corrosive exhaust systems, industrial ventilation, process piping, administrative support facilities, fire suppression, and piping infrastructure. He has been actively involved with Client projects at the Regal Row facility for several years. Adam Nicely (Electrical Engineer) is local to the Dallas-Fort Worth area. He is experienced in the design of electrical and communication systems for a variety of industries, including food and beverage, chemicals, metals, and microelectronics. Resumes for CH2M HILL personnel are included in Appendix C.

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Cost Of Services Deviations (Assumptions, Exclusions, and Clarifications)

Cost of Services Compensation CH2M HILL will provide the services as described above for a lump sum fee of $279,900 including expenses. Expenses include travel, living, workshop material transportation and related support for the two CH2M HILL facilitators and the post–session development and production of the Visioneering report. Client is responsible for providing the workshop location and its contents, refreshments for morning and afternoon breaks, and the lunch for all participants for each workshop day. A completed 5 Year Study Bid Quotation Form is attached in Appendix D. The work referenced herein will be performed in accordance with the fully executed Professional Services Agreement (PSA) dated February 1, 2012 between Client Inc. and CH2M HILL and subsequent Confidentiality Addendum. The PSA is included in Appendix H for convenience.

Deviations (Assumptions, Exclusions, and Clarifications) The following are assumptions, exclusions, and clarifications associated with the scope of services referenced in this proposal: • CH2M HILL will be granted reasonable access to the Regal Row facility for observation and data gathering activities. • Hotel meeting room and associated accommodations, including food, beverages, supplies, for the off-site Programming (Visioneering) session will be arranged and paid directly by Client. • Cost estimates developed as part of this scope of services will be Class 4 and Class 5 as defined by the Association for the Advancement of Cost Engineering AACE18R-97 Cost Estimate Classification System. A summary description of this standard is included in Appendix E. • Client will assure all stakeholders are present during the Visioneering session. • CH2M HILL pricing is based upon performing Visioneering during a consecutive three and a half day time period.

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Why CH2M HILL?

Why CH2M HILL? A Partnership Built on Similar Values Sharing similar values and a culture of responsibility creates a firm foundation for true partnership. Like Client, we place great importance on how we do business. CH2M HILL stakes its reputation on delivering projects that create value for our clients and make the world a better place to live. Maintaining this reputation requires us to excel in service to our clients, while upholding our highest ethical standards and core values. Our governing value of respect is based upon “The Little Yellow Book”. Written by founder and former CH2M HILL President James Howland, it captures many of the values on which the firm was built. These values are as valid today as they were back then, and perhaps even more so. Since 1946, CH2M HILL has been based on a strong foundation of doing the right thing, by our clients and our employees, and such values thankfully never go out of style. Like Mary Kay’s “Pink Doing Green®” program, CH2M HILL shares a commitment to environmental performance and sustainability, earning us a reputation for responsible and savvy treatment of environmental issues. This provides a stalwart basis for fulfilling Mary Kay’s zero landfill and green policies. We are a leader in providing comprehensive, integrated sustainable solutions around the world. We bring together strategists, scientists, architects, engineers, technologists, economists and others to evaluate opportunities and work collaboratively to deliver lasting solutions that benefit our clients, their communities, and the environment.

Client and CH2M HILL Partners sharing values in… • Corporate Responsibility • Sustainability • Safety • Quality

CH2M HILL has fostered a culture of environmental stewardship for more than 60 years. Our firm was one of the first in our industry to establish an internal Environmental Management System (EMS) that follows ISO 14001 guidelines. We continue to support the United Nations Global Compact principles, and we measure and report our performance annually. In 2010, we were named a leader in sustainable engineering by Verdantix, an independent analyst of sustainable business issues. Our diverse offering of sustainability services includes facilities and land development, sustainable cities, carbon and energy management, natural resources planning and management, and site remediation. We also have a powerful platform of tools, technology, and best practices to help our clients make well informed decisions and to evaluate the overall sustainability of various options. Since 2006, CH2M HILL has been ranked as the top environmental firm in the world by ENR. Protection of people and the environment is a CH2M HILL core value. It is our vision to create a culture within CH2M HILL that empowers employees to drive this value into all global operations and achieve excellence in health, safety, and environment (HSE) performance. We deploy an integrated, enterprise-wide behavior-based HSE management system to fulfill our mission and the expectations of our clients, staff, and communities. We embrace HSE protection and quality because like Client, we feel it is the right thing to do for our people, our communities, and our environment. We understand that Mary Kay’s expectation is zero recordable incidents. On the jobsite, just like everywhere else, we believe that incidents are preventable, and we are committed to making this belief reality. We seek to achieve our mutual goal of building a world-class site safety program for this project by developing a project-specific safety plan that integrates our program with Mary Kay’s policies and procedures. We hold ourselves and subcontractors accountable for implementing, managing, and measuring our progress throughout the life of the project. IAT020812034553PDX

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Why CH2M HILL?

Like working safely and safeguarding the environment, quality represents a value to be internalized and a program to be implemented. A “quality” organization emphasizes core values such as continuous improvement, innovation, client and customer focus, and employee engagement – all characteristics of CH2M HILL. To forge an understanding of quality and the opportunity it embodies, CH2M HILL emphasizes a concise and clear operational definition of quality: Quality is providing value to clients by delivering the product they want, safely, on schedule, and on budget – meeting their requirements and expectations.

Enterprise quality enables CH2M HILL to fulfill its promise of value to clients by cultivating project delivery and business support performance excellence through continuous improvement and disciplined execution. We look forward to building a culture of collaboration with Client in working on this 5 Year Plan. We partner with you, bringing the knowledge gained from a myriad of projects on every continent, our rigorous attention to detail, and our ability to create non-routine projects for you that are also models for the industry. We craft our solutions with sustainability—always mindful of government regulations, environmental concerns, maintenance requirements, and public perceptions. CH2M HILL is one of the few companies that can combine a long history of providing high value Lean enterprise consulting and process design experience, material handling systems design, systems integration, facility design, and construction capabilities within one company including: • Proven programming results with Visioneering • Client site knowledge • Process and packaging staff capable of working in an operating facility • Ability to translate the final solution globally As a full service planning, engineering, procurement, and construction management firm, CH2M HILL can serve as a partner to Client throughout the entire course of this project.

Technical Capability Since 1998, CH2M HILL has been consistently ranked by ENR as a top firm for manufacturing. Our structured set of innovative strategies, with a rigorous multi-disciplinary engineering approach, integrates the architecture to organize your business activities as a continuous flow and transforms your enterprise toward a leaner, agile and productive environment. We take pride in offering new bold ideas that make sense while leaving no stone unturned in our quest to find enduring solutions for your business needs.

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WHy CH2M HILL?

Our Industrial & Advanced Technology group, with more than 1,000 architects, engineers, and technologists delivering high-performance building projects to companies, universities, and governments around the globe, has the ability to combine technology experience and a people-centered design process that creates places for people to effectively use the technology. In 2002, an independent study commissioned by the Massachusetts Institute of Technology recommended our Lean Outcomes Architecting methodology as “best practice” for Lean operations design and transformation. Our services span the full range of facility work, from early planning and site selection through architecture, engineering, and construction to facility operations, tailored to the specific needs of our client. We approach design as a process of teamwork, collaboration, and innovation that leads to realization of your vision. CH2M HILL features some of the best process and packaging professionals in the industry. They conduct detailed assessments to understand and implement designs that integrate cost effective, efficient, and appropriate process technology for your manufacturing and business needs. We utilize your process designs for efficient construction, installation, validation, start-up, training, operation, and maintenance to reduce your costs and shorten project delivery schedules. We tailor our process and packaging development to meet your needs by: • • • • • • • • • • •

Defining your product, packaging, and equipment requirements Assessing the skill sets of your workforce Considering the entire supply chain during planning Developing conceptual layouts and simulations Assessing vendor capabilities/options, utility requirements, and equipment cost/value installation engineering information Developing final machinery specifications, layouts, and construction information Finalizing cost, delivery, and acceptance requirements for procurement Placing purchase orders, monitoring order progress, and supplying acceptance test materials to vendors Managing equipment installation and completing commissioning and qualification Coordinating operator training and developing operating and maintenance procedures Performing factory and system acceptance testing

We are pleased to offer a sample representation of similar project experience in Appendix F.

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Why CH2M HILL?

Outstanding Safety Record CH2M HILL is committed to achieving Target Zero: Zero injuries, illnesses, environmental impacts, and errors/omissions. To achieve this goal, a management system is implemented to promote a proactive, repeatable, continually improving HSE program.

As noted earlier, CH2M HILL’s commitment to health, safety, and environmental protection has earned the firm several highly-regarded OSHA VPP Star Awards. The VPP Star Award is the U.S. government’s highest award of recognition available to companies for health and safety excellence. The VPP has a 20+ year history, and the average VPP worksite has a Days Away Restricted or Transferred (DART) case rate that is 52 percent below the average for its industry. The CH2M HILL OSHA recordable incident and days away case rates are among the lowest in the industry. We understand that Mary Kay’s expectation is zero recordable incidents. CH2M HILL embraces HSE protection and quality because like Client, we feel it is the right thing to do for our people, our communities, and our environment. On the jobsite, just like everywhere else, we believe that incidents are preventable, and we are committed to making this belief reality. We seek to achieve our mutual goal of building a world-class site safety program for this project by developing a project-specific safety plan that integrates our program with Mary Kay’s policies and procedures. We hold ourselves and subcontractors accountable for implementing, managing, and measuring our progress throughout the life of the project.

Proven Value Engineering Results CH2M HILL has established workflow processes defining the execution of the conceptual engineering. These will be used to guide our work in this phase. There is a notable, if not unique, process we will use throughout the design process which is our Pro-Active Value-Engineered Solutions (PAVES) program. The PAVES process offers many benefits: Waste minimization, cost savings, schedule reduction, faster time to market, and less travel to the jobsite. We will work to value engineer this project and consider shared savings with you, our client. We utilize a systematic method of identifying and approving changes, which provides client benefits by reducing capital cost, by decreasing operational costs, or by improving the schedule. PAVES is our dedication to continuous focus on achieving and exceeding your business objectives. Considered a key to relationship management, we listen carefully to the drivers and priorities that will make your project a success. The PAVES process is incorporated through process and project management.

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WHy CH2M HILL?

There are several strategic and practical components to the PAVES process: • Strategic –– Planning occurs at the beginning of the project through chartering sessions; not reacting to scope creep or design changes. –– Solutions remain consistently in line with your project goals, operational objectives, and business agenda. • Practical –– Specific issues are identified in the execution of the design and construction of the project. –– Issues become opportunities for adding value to exceed expectations and align with your priorities. –– Solutions are included on periodic project reports, so that added value is measured along with contractually agreed milestones. A sampling of previous projects demonstrating some of the cost savings to our clients through PAVES is featured in Appendix G. These 10 projects represent more than $23 million in realized savings utilizing the PAVES approach.

Global Account Management CH2M HILL’s Global Account Management Program provides Client a simplified vendor management approach through a single point of contact for projects around the globe. Ms. Maria-Elena Tierno is CH2M HILL’s Global Account Manager for Client. In this capacity, she serves as your primary point of contact for all CH2M HILL companies and services worldwide. She verifies that in-house resources are made available for Client projects and provides an additional avenue for project issue resolution (if any). Ms. Tierno’s relationship with the Client organization allows her to anticipate changing requirements, needs, and preferences, and then communicate them to the internal service teams. This account management model has resulted in client satisfaction and successful projects. CH2M HILL works seamlessly across time zones, cultures, and languages; regardless of personnel location. Our relationship with Client will be fostered through Ms. Tierno’s efforts to support current and future projects around the world, ultimately providing our resources to meet your project needs, regardless of the project location.

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Other Requested Information

Other Requested Information Licenses and Permits

Pending Litigation

CH2M HILL is licensed to work in the state of Texas in accordance with the Texas Engineering Practices Act and is also familiar with the requirements to perform work on-site at the Client facility in Dallas. All work for this effort will be performed under the direct supervision of a licensed professional engineer. We will interface with the City of Dallas to develop a plan review schedule for both initial phases of design as well as final design. This approach will reduce the likelihood of delays due to plan reviewer comments. We have a detailed process for obtaining permits and licenses which we will employ to assist Client with the environmental permitting required for this project.

CH2M HILL has the normal amount of litigation for a company of its size, none of which threatens its financial stability. This submittal may become a matter of public record. Accordingly, any written information about litigation could become available to competitors or claimants and could be used out of context or in other ways unfair to CH2M HILL. Because of this, CH2M HILL has adopted a policy of not making public a specific listing of claims.

Insurance CH2M HILL has provided the insurance coverage required under our PSA.

Contract Terms (Professional Services and Confidentiality Agreements) As a dedicated service provider to Client, CH2M HILL is pleased to provide a copy of our current PSA and Confidentiality Addendum in Appendix H. We will perform the work referenced herein in accordance with the terms and conditions set forth in the PSA.

CH2M HILL’s reputation is based on the production of technically excellent work for satisfied clients. Our volume of business inevitably exposes CH2M HILL to claims, but the number is minimal in comparison to the volume of work which CH2M HILL produces. Moreover, our professional liability insurance program provides us with coverage in excess of the total of all claims paid by CH2M HILL in its 50 year history. If additional claims information is needed, representatives of CH2M HILL would be willing to review relevant information with you in confidence.

Contractor Storage/List of Subcontractors The RFP requested information regarding contractor storage and a list of subcontractors to be utilized. Contractor storage is not part of the current design task, so no data can be submitted at this time. Additionally, no subcontractors are being utilized for this project phase. Should CH2M HILL be selected to proceed with subsequent work related to this project, relevant information would be provided as part of a project execution plan.

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Appendix A: Visioneering Overview

Appendix A – Visioneering Overview The Focus of Visioneering Visioneering is used to create sustainable improvement across three important boundaries; values, process, and culture. Business planning drives the Visioneering process by providing valid forecasts, goals, and objectives for the organization. Defining these values as you have already done has helped to identify a need to change and improve the manufacturing operations and processes. As physical changes occur, the culture of the organization must change to adapt to the new operations and processes that are being implemented.

The Visioneering Process Visioneering is a series of related activities that are completed in three and a half days with the active participation of a cross-functional group from your organization. The team’s first objective is to mutually agree, usually led by management, upon the organization’s objectives for the Visioneering planning process. This requires that selected data be generated by Client prior to the initiation of the planning process, including: • Business plans and drivers • Future product mix and capacity projections • Known facts and related data that support the vision and objectives

• Assumptions that can be jointly agreed upon • Schedules and financial information, both capital and operational (if available).

Deliverables from the Client Visioneering planning sessions include: • Selection of the preferred concept design to support Client´s future state operations in Dallas • Review and analysis of alternatives considered during Visioneering • Team work sheets • Facility block layouts • Process layout • Material flow and logistics analysis

• Value stream maps (current state and proposed future state) • Alternatives for more sustainable operations • ROM cost for execution • Milestone execution schedule • Lean & Agile Manufacturing model training exercise • Physical 3D model of the future state concept

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Appendix A: visioneering Overview

CH2M HILL will initiate the Visioneering exercise by facilitating a four hour version of our Lean & Agile Process Manufacturing Workshop to provide an overview of Lean tools and techniques that can be applied to help reduce waste and make the most of the operations during the design of Mary Kay’s future state manufacturing operations in Dallas.

Brainstorming Exercise The brainstorming exercise immediately follows the completion of the Lean Workshop. This exercise is conducted as a “gaming board” event. A grid is constructed on a workshop wall where title blocks are utilized to classify and organize the data. During the exercise the team creates “gaming cards” by using 5” x 8” index cards to document comments and ideas that are generated by the team. The gaming cards include a caption and a graphic that portrays ideas or comments of the participants. This process is conducted for approximately two hours or until discussions begin to show diminished value. The cards on the wall matrix then form the framework for the remaining activities.

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Appendix A: visioneering Overview

We will review the following basic information to establish the basis for designing Lean Manufacturing operations: • Review forecasted product mix and capacity requirements, number of SKU’s, and inventory levels. • Assess the baseline level of current operational performance and verify the products and value streams that Client plans to include in its new facility. • What future demands are being placed on the production operation? How can the manufacturing processes be arranged to support value streams and improved with Lean techniques? • Are multiple product families present? • What demands will be placed on the overall supply chain and how can the resulting challenges be met? • What and where are the wastes (non-value adding activities) in the manufacturing operation? • Where do bottlenecks exist and what are their root causes? • What are the most cost effective ways to eliminate the bottlenecks and eliminate the wastes? While the emphasis will be on designing Lean Manufacturing operations and suitable facilities , CH2M HILL will urge the Visioneering team to collectively examine the following Sustainability issues during Brainstorming, as well:

Manufacturing Operations What options are available to reduce negative environmental impacts in the plant and throughout the supply chain? Are there opportunities for product design improvements to facilitate manufacturing or improved environmental concerns? Can dunnage be reduced or eliminated or recycled? Can minimum facility footprints be accommodated while allowing opportunity for efficient future expansion? What are the impacts of proposed changes to operating costs?

Site Are there ways to reduce the footprint on the site of buildings and paving? Are there ways to lessen negative impacts on the site ecology, or ways to impact it positively? Are there ways to decrease earthwork? Are there ways to reduce the impact on municipal infrastructure needs? Can the site benefit from landscaping that provides harmony with the surrounding community?

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Appendix A: visioneering Overview

Energy What are the major energy users within the processes? How can we reduce consumption of these processes? What is the current carbon footprint, can it be reduced? How can we reuse waste heat? How can we reduce the amount of space that needs to be conditioned? Are there ways to take advantage of natural site conditions to reduce energy usage, including natural ventilation and stack effect? How can we reduce the need for artificial lighting, and use natural daylight? How can we improve the performance of the building envelope to reduce the demand on mechanical systems? What energy efficient equipment can be used (variable speed drives, light fixtures, building automation systems)? Are there renewable energy options (wind, solar)?

Water How intense are the process water needs? Are there ways to reduce consumption? Reuse process water in other ways? Are on-site water treatment and recycling systems possible?

Materials and Resources Can we use materials that have a low lifecycle burden? How can we reduce the quantity of materials we need to use? How can we use recycled materials? Can we use materials that are locally available? Can we design flexibly so that the facility can easily be reused in the future to introduce new products? Can we manage construction and production waste, and reduce landfill impact?

Emissions, Effluents, and Impacts What are the emissions and effluents that result from our processes? How can we reduce or eliminate them? How can we scrub them? How can we contain them?

Indoor Environments What are effective ways of providing a properly ventilated work space? What are the potential indoor pollutants, and how can we reduce or eliminate them? What sort of monitoring can we use for a safe environment? How can we utilize natural daylight to improve the quality of the environment? What are the ways to provide thermal comfort, acoustical comfort, and otherwise provide a better environment in which to work?

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Appendix A: visioneering Overview

Team Worksheet Exercise At the completion of the programming exercise, the team will focus on relating the gaming cards back to the learning objectives in support of the goals and vision of the organization. The group is divided into a number of smaller teams for this activity. Each team addresses one specific objective. Typically, these teams will address problems associated with waste and identify ways to make improvements to Mary Kay’s existing concept. Examples include: • Reduction of raw materials, supplies, work-in-process, and finished goods inventories through supply chain improvements and/or increased process flexibility • Smaller area requirements by developing, to the extent restraint created by existing facilities will practically allow, streamlined layouts and logical, uni-directional flows • Reduced travel distances • Layouts with logical proximity relationships • Ways to error proof processes • Improvements to communications, planning and processes to create continuous uninterrupted flows • Desired level of work place environment and employee amenities • Site utilization • Means of introducing sustainable practices and designs to reduce negative environmental impacts • Ways key support functions can make improvements to better support manufacturing in a Lean environment – Lean is an enterprise wide initiative, not just a manufacturing based initiative. Each team selects appropriate gaming cards to transfer from the gaming board to their work sheets to support and help to explain particular improvement ideas and concepts. Brief concepts and implementation plans are recorded on the team worksheets for later presentations by each team to the entire group for analysis and comment.

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Appendix A: visioneering Overview

Value Stream Mapping Exercise A small group of team members will be picked to develop a VSM for the current state of operations concurrently with the worksheet exercise described above. Value stream mapping is a process of defining the flows of information and materials, summarizing them visually, and then identifying improvements that can create better performance. The Visioneering team then focuses on areas where improvements or enhancements can be made to the value stream and eliminating or reducing wasteful, non-value added activities from the operations.

Later in the session, after the preferred concept is selected, a small team will develop the future state VSM. The future state VSM will be used by a small team that will be selected to develop a “concept of operations” and validate the concept for the future state.

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Appendix A: visioneering Overview

Presentations by the Teams When the work sheets and current state VSM are complete, team representatives make presentations to the entire group. Often, representatives from management are asked to participate so that they can hear the improvement ideas first-hand. At the completion of the presentations, the audience is permitted to ask questions or add additional information to the work sheets. During this exercise, the organization will discuss how to break old habits and practices, and look for new and innovative ways to improve the organization.

Layout and Process Planning Representatives from Mary Kay’s operations and from the CH2M HILL facilitation team will decide which criteria will be used to evaluate operational alternatives and then select an alternative during the Visioneering session. Each team will then develop a future state concept alternative and layout of the Dallas operations incorporating the information discussed during the gaming card session and the ideas developed during the team worksheet exercise. Teams will be given materials to develop a block diagram of their concepts. Each team then will present their concepts to the entire Visioneering team and the alternatives will be discussed and evaluated by the entire team.

The Visioneering team will rank the concepts and select one, typically enhanced with ideas from the other concepts, as the basis for further development.

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Appendix A: visioneering Overview

The team then creates a physical 3D model of the agreed upon concept. The team will create the physical model using foam board, colored paper, equipment footprints, and other readily available materials. Our team will also include a graphics person to create a computerized model of the concept. The models can be used by Client to easily explain the concept and make it easy for others to visualize the future state concept. During the development of the 3D model, selected team participants will be chosen to work on a project milestone implementation plan, the future state VSM, and a concept of operations description. During Visioneering, CH2M HILL will work directly with the Client team to develop a high phased implementation strategy identifying the ‘when, where, and how’ for the execution of this project. This includes developing a phasing to reduce production downtime while working with the relocation process and schedule. These efforts culminate in a final presentation of the Visioneering process and its results to Client management.

Visioneering Report and Recommendations CH2M HILL will document the results of the session in a Visioneering report. The report will contain copies of the gaming cards, work sheets, VSMs, design concepts, preliminary block diagrams, a milestone implementation plan, CAD layout drawings, concept of operations, operational walkthrough, and other pertinent information generated during the sessions

Room Requirements for Visioneering Visioneering requires a large room (approximately 40’ X 60’ minimum) to adequately conduct the activities. We recommend that an off-site facility should be used in order to prevent participants from being interrupted by normal daily operational issues during the Visioneering sessions. Other items needed for the room include: three “flip charts” on easels, LCD projector with screen, and fourteen (14) tables (approximately 30” X 72”). Please see the diagram of specific facility requirements for the seminar at on the next page.

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Appendix A: visioneering Overview

Suggested Visioneering Participants Visioneering participants should include those people who will continue with the development and implementation of the “future vision” at Mary Kay’s Dallas operations long after the Visioneering sessions are over.

The Visioneering Team CH2M HILL plans to supply one senior Lean consultant to facilitate the Visioneering sessions. Our facilitator, will be joined by an associate consultant, a senior project manager, and engineers from our design group who are able to address issues across multiple disciplines. These experienced facilitators are completely capable in both Lean enterprise design and implementation, and in operations design: CH2M HILL suggests that representatives from the following functions should have the opportunity to participate in Visioneering sessions: • Corporate management (opening session and final presentation) • Cross section of production organization (plant manager, production supervisors, direct labor representatives) • Industrial engineering • Production control, scheduling • QA • Procurement • Materials management

• • • • • • • • •

Marketing Human resources Finance and accounting Information systems Distribution, shipping, warehousing Sales Plant engineering/maintenance Suppliers (at the discretion of client management) Customers (at the discretion of client management)

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Appendix A: visioneering Overview

Workshop Date and Location CH2MÂ HILL will conduct the Visioneering workshop in Dallas, Texas on a date and at a location, to be selected and provided by Client. We strongly recommend using an off-site location to prevent interruptions that could be caused by close proximity of the Client Visioneering team to normal day-to-day operations and responsibilities. Our team must have access to the workshop area by mid-afternoon of the day prior to the start of the session for setting up the necessary models and materials to conduct the workshop. Visioneering Session Daily Schedule Day 1

Day 2

Day 3

Day 4

Review and align the Visioneering workshop team on the requirements for the site, business and technical objectives, constraints, and facts

Worksheet development, presentations, and prioritization

Discuss 2D alternatives and select preferred concept for 3D development

Presentation to management

Introduction to Lean and Lean simulation concepts

Develop current VSM, if applicable

Build 3D model

Summarize work session activities, define next steps and open issues

Review of sustainability concepts

Concept of operations (development and discussion)

Represent flows and relevant equipment

Adjourn

Confirm design criteria Programming session with and functional adjacencies Establish high level gaming cards and develop future state implementation strategies VSM Worksheet identification, assignment

ÂŠ2012 CH2M HILL Confidential and Proprietary

Develop 2D layouts

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Appendix B: Schedule 5 YEAR PLAN Suggested Preliminary Concept Design Schedule ID

Task Name

Duration

Start

Mary Kay 5 YR Plan Preliminary Design

85 days

Fri 6/1/12

0 days

Fri 6/1/12

Project Award

Kick off Meeting

Plant walk through

4 days Tue 6/5/12

Programming (Visioneering) Workshop

4 days Tue 6/12/12

Visioneering Report

Briefing to Senior Leadership

Site investigation/Data gathering

10 days Tue 7/10/12

Lean Process Input

27 days Tue 7/24/12

June 2012 6/3

6/10

6/17

6/24

July 2012 7/1

7/8

7/15

7/22

August 2012 7/29 8/5

8/12

8/19

8/26

September 2012 9/2 9/9

9/16

9/23

October 9/30

Fri 6/1

1 day Mon 6/4/12

15 days Mon 6/18/12 0 days Tue 7/10/12

Value Stream Maps

3 days Tue 7/24/12

Lean Layout Assistance

3 days Fri 7/27/12

Process/Material Flow Diagrams

3 days Wed 8/1/12

Lean Supply Chain Planning

3 days Mon 8/6/12

Lean logistics Planning & Recommendations

3 days Thu 8/9/12

Process and People Flows

3 days Tue 8/14/12

Process Equipment Recommendations

3 days Fri 8/17/12

Warehouse Design & Storage Systems

3 daysWed 8/22/12

Packaging Systems Recommendations

3 days Mon 8/27/12

Cost Estimate

12 days Mon 8/13/12

Final Report Preparation

13 days Fri 8/17/12

Preliminary Design/1-2 Year Cost Budget Presentation

Mary Kay review of Final Report

Incorporate comments

4 days Mon 9/24/12

Submit final report to Mary Kay

0 days Fri 9/28/12

Project: CH2MHILL 5 Year Plan Preliminary Design Schedule Date: Fri 4/20/12

5/27

Tue 7/10

0 days Thu 9/6/12

Thu 9/6

10 days Mon 9/10/12

Fri 9/28

Task

Progress

Summary

External Tasks

Split

Milestone

Project Summary

External Milestone

Deadline

Page 1

ÂŠ2012 CH2MÂ HILL Confidential and Proprietary

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As part of our ongoing commitment to environmental sustainability, this page has been left blank to accommodate two-sided printing.

ÂŠ2012 CH2MÂ HILL Confidential and Proprietary

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Appendix C: Resumes

Robert Leazure Program Manager

Mr. Leazure offers over 24 years of professional experience in the performance of electrical (power distribution, lighting, fire alarm, UPS, generators, grounding and lightning protection) design, specifications, cost estimation, and construction support for industrial, commercial and government projects. Additionally, he has over 10 years of project management experience on both design and design/build project for new construction and building renovations.

Education B.S., Electrical Engineering, University of Texas – Arlington Certifications/Registrations Registered Professional Engineer (Texas) OSHA 10-Hour Construction Safety Course

Relevant Experience Consumer Products Client Inc.—Dallas, Texas Project Manager of several alignment projects for this cosmetics manufacturer at their headquarters and manufacturing facilities. Projects included a laboratory assessment, evaluation of the existing production area HVAC and mechanical systems, an Eco-Charrette for EBOM consideration for their headquarters facility, and an environmental assessment of their manufacturing facility. The results of the laboratory assessment were used to develop a design to relocate their raw materials lab closer to the receiving docks. The assessment report was used for space planning of the lab. The environmental assessment of the manufacturing facility evaluated the existing facility to determine the cleanliness levels that could be achieved within the existing building constraints.

Life Sciences Temple Health & Bioscience Center—Temple, Texas Electrical engineer for a cancer research laboratory project that was built inside an existing facility and utilized existing equipment. Design included a new UPS system, diesel-driven generator, automatic transfer switch, and distribution panel boards. One laboratory included a current Good Manufacturing Practice (cGMP) cleanroom for pharmaceutical cancer research.

Electronics Alliance Data Systems Data Center Utility Infrastructure—Dallas, Texas Project manager of an upgrade to the data center utility infrastructure while the facility remained operational. The project included a redundant electrical distribution system consisting of a new service transformer and switchgear, motor control center, UPS system with redundant modules, power distribution units (PDUs) and branch circuit panel boards in the data center.

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Appendix C: Resumes

Infinite Power Solutions—Denver, Colorado Project Manager to build-out an existing shell building to accommodate a thin-film battery manufacturing process. The project included a 4,500-square-foot, ISO Class 3 cleanroom, redundant chillers, primary/ secondary/tertiary and process chilled water systems, hot water system, new service transformer and service entrance electrical switchgear, motor control center, and distribution and branch panel boards. His responsibilities included management of all design disciplines and coordination, project financial reports, weekly coordination meetings through construction completion, coordination with onsite construction Hewlett Packard Company—Richardson, Texas Project manager and lead electrical engineer for the mechanical and electrical Infrastructure Upgrade Project at the Richardson Facility. All work was performed while the facility remained operational with no unplanned downtime. The project included three UPS systems, four diesel driven generators, and two air-cooled chillers to provide utility redundancy for the facility. Responsibilities included management of all design disciplines and coordination, project financial reports, weekly coordination meetings through construction completion, coordination with on-site construction manager, review and approval of monthly invoices, coordination of equipment and system commissioning with contractor and equipment vendors. Managed the system commissioning and provided trouble-shooting of issues that occurred between generator and parallel UPS system during the system testing.

Transportation Dallas-Fort Worth (DFW) International Airport— Dallas, Texas CH2M HILL is a subcontractor to another firm for the renovations to Terminals A and C at DFW Airport. As Project Manager, Mr. Leazure led the CH2M HILL team responsible for the HVAC/mechanical, electrical and plumbing (MEP) design for the renovation of the two terminals. The MEP team includes other sub consultants for the electrical and plumbing designs, CH2M HILL is leading the mechanical design with assistance another sub consultant, and CH2M HILL is leading the HVAC design and coordinating the overall MEP design effort.

In addition to his project management responsibilities, Mr. Leazure provided oversight of the electrical design. During the first year of the renovation program, CH2M HILL conducted on-site utility infrastructure surveys within Terminal A, preformed heat load studies, and provided schematic re-design of the HVAC system concept for all terminals that are included in the renovation program. MetroLINK Transit Maintenance Facility—Rock Island, Illinois Lead Electrical Engineer for the MetroLINK Transit Maintenance Facility (186,000 square feet). Included in the design was power distribution including a 400kW interactive photovoltaic system on the roof, 2250 kW diesel driven generator to provide stand-by power to the facility and CNG compressors, interior and exterior lighting with daylight harvesting and motion/occupancy sensors in accordance with 2009 International Energy Conservation Code, powering of HVAC and service maintenance equipment. Indoor CNG and diesel fueling dispensers required a detailed evaluation of the building to assure compliance with the National Electrical Code Article 500 – Hazardous Locations. Special systems design included fire alarm, building IT/data raceway system, access control and CCTV system raceway rough-in. Loudoun County Transit Maintenance Facility— Leesburg, Virginia Lead Electrical Engineer for the Loudoun County Transit Maintenance Facility. Included in the design was power distribution including a 75 kW natural gas driven generator, interior and exterior lighting with daylight harvesting with motion/occupancy sensors in administration areas designed in accordance with the 2009 International Energy Conservation Code, powering of HVAC and service maintenance equipment, and a building grounding counterpoise. Special systems design included fire alarm, building IT data/telephone/security raceway systems.

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Appendix C: Resumes

John F. Schaefer Micro Consulting

Mr. Schaefer has over 28 years of professional experience in the operation, process design, project management, and construction management of high technology manufacturing plants. His project background includes all phases of design from project concept through start-up of grass roots facilities, plant expansions, plant renovations, and plant closures. He is experienced in the commissioning and start-up of air abatement systems, wastewater systems, industrial hot and cold water systems, cryogenic systems, specialty gas systems, high purity water systems, cleanrooms and chemical systems as well as remediation of hazardous materials, biohazard and chemical facilities.

Education B.S., Bioengineering, Drexel University Organizations and Affiliations Semiconductor Environmental Health and Safety Association

Mr. Schaefer has seven years of experience working in China where he has been responsible for overseeing the design and construction of high technology manufacturing facilities, including pharmaceutical and medical device facilities.

Relevant Experience Consumer Products Client Inc.—Dallas, Texas Consultant and process engineer for the development of new laboratories for the facility. Additionally, prepared a study indicating the path forward for compliance with regulatory agencies and upgrading of process lines and procedures. Confidential Client—Massachusetts Responsible for the construction and operation of a replacement Class D RO Water System in the Andover facility to prepare the production line for further expansion and tighter regulatory requirements. Installed and commission the new system with no impact to production, on time and within the budget. Confidential Client—North Carolina Responsible for the remediation of several issues after a closure of a sister facility by regulatory authorities. Work included installation of new sanitary drains systems, tighter environmental controls, new finishes and surfaces and general consulting on further plant improvements. The work was completed and the facility was back on line in the time intended by the client.

Life Sciences Confidential Client—Suzhou, China Responsible for the constructability review and preparation of the scope for the expansion of packaging lines in the Suzhou facility. Reviewed China regulatory concerns and international regulatory concerns on design and building environment.

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Appendix C: Resumes

Biomerieux—Shanghai, China EPC project manager for the build-out of two floors in an existing structure for the production of medical diagnostics and devices. Responsible for coordination with China regulatory agencies and French regulatory agencies for process development and certification. Facilities included new cleanroom facilities, purified water systems, as well as major utility systems.

Semiconductors

Genentech—South San Francisco, California Process and project engineer/scientist responsible for the design and installation of the human insulin production line. This project was one of the first genetically engineered plasmid cloning and production facilities.

Confidential Client—Albuquerque, New Mexico Functioned as the project manager for design and construction administration of the demolition and rebuild of a CMP area for 300mm substrate. The project included chemical, CMP, DIW, exhaust electrical distribution and cleanroom construction as well as tool hookup design.

Ohio Medical/Scott Medical Products—New Jersey and Pennsylvania Chemist for the formulation of anesthesia for the company using proprietary ether molecules. Additionally responsible for monitoring the production of medical devices and regulatory affairs with U.S. and international government organizations. Temple Bioscience Center at the Scott and White Hospital—Temple, Texas Managed the remediation of biological contaminates in an abandoned facility and sterilization of the facility utilizing a “no residue” biocide application in preparation for its conversion into a biological research and pharmaceutical pilot line facility. Identified the major contaminants within the facility, including Stachybotrys and Aspergillus as well as several soilborne bacteria. In compliance with federal and state requirements, oversaw the removal of contaminated items and the eradication of the active contaminates to bring the facility into Indoor Air Quality (IAQ) specifications for the new, more stringent use of the facility. Special attention was paid to the removal of not only the active contaminates, but also the toxins and spores produced by those contaminates.

Cypress Semiconductor—Round Rock, Texas Served as program manager for a design-build effort to convert existing office space to productive Class 100 cleanroom for solar cells. The project was completed in three months, ahead of schedule, with no impact to other continuing operations.

Solar Ceradyne—Tianjin, China Site manager for an EPC Project supporting our China office. Responsible for the finish out of a facility for the production of ceramic crucibles used in the PV Industry. The project was a greenfield construction effort and included all major structures and facilities. BP Solar—Frederick, Maryland As the program manager for a design-build installation of PECVD equipment and support systems, specified and assisted with design and installation of hazardous abatement, life safety system, and gas systems as well as structural components. Spheral Solar Power, Inc.—Cambridge, Ontario, Canada Served as procurement and on-site construction management for process facilities systems (process cooling water, CDA, RO/DI water, bulk chemicals storage and distribution, gases [N2,O2], wastewater, neutralization, HF treatment and sulfate removal systems), process exhaust systems (acid exhaust scrubbers, NOx abatement, VOC and general exhaust and dust collection), and the emergency power system and alarm and leak detection system.

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Appendix C: Resumes

Dennis J. Stamm Lean Manufacturing Specialist

Mr. Stamm has over 35 years of broad-based business experience in industrial engineering, production management, and manufacturing consulting with emphasis in the areas of process design and improvement, Lean transformation planning, and strategic planning. He offers extensive leadership and managerial experience in the areas of enterprise strategic planning, organizational planning, and Lean transformation consulting. With a deeply rooted understanding of Lean Sigma principles, his work results in the most efficient and effective use of resources to achieve top- and bottom-line goals. He is a transformational leader with proven capabilities to develop and lead organizations through the entire planning and implementation process from strategic planning through supply chain network planning.

Relevant Experience

CH2M HILL – Englewood, Colorado, U.S.A Program Manager for numerous Lean process designs and Lean transformation programs. Coordinated client transformation team efforts from initial planning through implementation and startup, including facilitation of management and workforce Lean transformation training. Recent Lean transformation clients include Boehringer Ingelheim, Shanghai, China; FrieslandCampina, Delhi, NY, and Beilen, The Netherlands; Volvo GM Heavy Trucks, New River, Virginia; PACCAR, SteTherese, Montreal; the U.S. Mint at multiple locations; and the U.S. Air Force, Hill Air Force Base (AFB) Landing Gear Operations, Ogden, Utah.

Education General Electric Apprentice Program, Locomotive Division; Erie, Pennsylvania General Electric Manufacturing Management Program, Locomotive Division; Erie, Pennsylvania Foundations of Leadership, Stephen M. Ross School of Business, University of Michigan, Ann Arbor Organizations and Affiliations Steering Committee Member, International Society of Pharmaceutical Engineers (ISPE) Operations Management Community of Practice

Lead developer of CH2M HILL’s Lean Outcomes Delivery program, a systems engineering-based, enterprise-wide Lean transformation methodology. MIT cited the program as a “best practice” in a presentation of benchmarking results for Lean transformation methodology in January 2004. Combined Lean Sigma program with Sustainable Solutions to produce an innovative operations-wide holistic approach, referred to as cLean, to identify and eliminate of waste. Strategic planning facilitator for clients ranging from first-tier automotive suppliers to a small college, helping clients develop five year strategic plans that serve as roadmaps for long-term success. Recent strategic planning clients include Valeo global operations in Paris, France, and the Spartanburg (South Carolina) Methodist College.

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Appendix C: Resumes

Recent Projects and Clients Boehringer Ingelheim, Project Panda Plant Capacity and Expansion Project— Shanghai, China Mr. Stamm provided Lean Manufacturing planning and design for expansion of facilities to accommodate 2020 forecast for increased manufacturing capacity. This included process and material flows, supply chain network planning, internal logistics, calculation of storage requirements, process simplification, implementation of integrated work teams, cost estimation, performance specifications and bid assessment for automated equipment. Results included: • End-to-end supply chain planning • Raw materials and packaging inventories reduced by 66% • Unidirectional flows • Point of use delivery for bottles • 30% reduction in shipping/receiving area • Kanbans and milk runs introduced for delivery of packaging materials to lines and removal of finished goods • Design for increased process visibility • Introduced changeover kit carts and rapid changeover teams • Visible factory tools and techniques • Point of use delivery and in-line inspection, labeling, packaging for ampoules • Elimination of ampoule inventory • Automated storage and retrieval system specifications

Other clients include: • DAF, Eindhoven, The Netherlands – site master planning • Helene Curtis, IL – Manufacturing process improvements • Haier, Spartanburg, SC – Lean process design for refrigerator manufacturing in the first Chinese factory to locate in the United States • Schlumberger, multiple international locations in U.S, Europe, China – concept planning for new facilities, Lean training and education, Lean planning for process improvements • NSTec, U.S. Government Weapons Test Site, NV – Lean process design • Bridgestone Tire, Nashville, TN – ASR design • YPF (Argentina) – logistics planning • Caterpillar, Lafayette, IN – manufacturing process design • Boeing, Renton, WA – spares distribution center design • Boeing, St. Louis, MO – cellular manufacturing design/implementation for military aircraft manufacturing operations • Pepsi-Gemex, Mexico City, Mexico – strategic planning • The Tractor Supply Company, Nashville, TN – logistics network planning • The Washington Post – logistics network planning • Wrigley Manufacturing – master planning • PPG Aircraft Glass – process improvement • GE Neutron Devices, St. Petersburg, FL – process improvement • Lockheed Martin, Marietta, GA – Lean manufacturing layout for F-22 Raptor assembly • Sunspring Industries, Zhuhai, China – Lean training and transformation planning • Volvo GM Heavy Truck, New River, VA – plant consolidation, manufacturing process design • PACCAR, Ste-Therese, Canada – manufacturing process design • FrieslandCampina, Delhi NY and Beilen, The Netherlands – Lean process design for production of pharmaceutical ingredients

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Appendix C: Resumes

Steve Frech Visioneering Facilitator Distinguishing Qualifications Mr. Frech has over 30 years of broad-based business experience in the heavy product, transportation, and aerospace industries, with emphasis on engineering, product development and support, operations, sales, and program management. He has extensive leadership and managerial experience in the areas of enterprise strategic planning, functional department planning, department budgeting; also customer, employee, and organization development.

Education MBA, Finance, Keller Graduate School of Management B.S., Mechanical Engineering Technology, Purdue University

• Transformational leader with proven capabilities to develop and lead organizations through the entire product development and customer delivery process from strategic planning and initial sales, through product design and manufacturing, to aftermarket customer and product support. • Deeply rooted Lean enterprise principles, resulting in most efficient and effective use of resources to achieve top- and bottom-line goals.

Relevant Experience Lean Enterprise Workshops CH2M HILL—Englewood, Colorado Co-developer and Qualified Instructor CH2M HILL’s Lean enterprise workshops; the Lean and agile manufacturing simulation model; the supply chain logistics model; the Lean maintenance, repair, and overhaul (MRO) model; and the Lean office model. These workshops can be briefly described as follows. • The Lean and agile manufacturing simulation workshop introduces attendees to Lean Enterprise principles and techniques. It specifically shows how cycle time, quality and cost improvements can be achieved through the elimination of non value-added activities on the manufacturing floor. • The supply chain logistics workshop educates participants about the operational and performance differences between traditional makeand-stock-to-forecast (push) supply chain systems and customerdriven (pull) supply chain systems. • The Lean MRO workshop educates attendees in the performance differences between push and pull processes in an MRO or remanufacturing environment. This workshop model was developed in conjunction with CH2M HILL’s Lean transformation project with Hill Air Force Base’s landing gear operations in Ogden, Utah. • The Lean Office workshop provides the educational foundation for business process redesign based on Lean enterprise principles.

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Appendix C: Resumes

• Instructor; Lean Enterprise Training. Fortune 500 companies including Avery Dennison, Motorola, Nissan, Steelcase, EMBRAER, and Lockheed Martin; government entities including the U.S. Air Force and the U.S. Mint; and industry associations including the Society of Automotive Engineers and the American Productivity and Inventory Control Society. In addition, the workshops have been conducted for university graduate programs at the University of Tennessee, Georgia State, North Carolina State, Auburn, and the MIT Sloan School of Management. • AVERY DENNISON— Lead Facilitator for a $5.5-billion Fortune 500 company and supplier of office products. Training was presented to the CEO and executive staff, along with the management staffs of several operating divisions

Other Highlighted Projects Schiff Nutrition International Technology Corporation—Houston, Texas Co-developer and Facilitator of a five-day Lean Yellow Belt Training Program designed to introduce the attendees to the tools of Lean and how to use them and to give each attendee the knowledge and confidence to be a contributing Kaizen Blitz team member who can readily identify Lean opportunities. Mr. Frech facilitated Yellow Belt Training courses for Schiff Nutrition International in ten locations worldwide and numerous one day Lean training workshops Banta Corporation Literature Management Group— Shakopee, Minnesota Lead facilitator for the group’s Lean Enterprise Strategic Plan to redesign the layout of its Shakopee facility. Goals were to improve margins by improving cycle time and reducing cost; to free up floor space to house material stored with a third party and to make room for future growth; and to achieve better quality and customer relations. The project team generated a conceptual design of the entire facility and a pilot fulfillment cell based on efficient and effective Lean manufacturing principles.

Garlock Inc—Palmyra, New York Lead facilitator for strategic planning project to study current operations in Palmyra and develop recommendations as to which products or operations, or both, should be relocated to another facility to enhance the growth and profitability of the enterprise. Project culminated in incentives negotiations with the state of New York to keep all operations within the state. Lexington Insulators—Jasper, Georgia Lead facilitator for new facility concept design to accommodate production growth and improve efficiency throughout the entire operation. This new facility was to be built at the Jasper property or on another Lexington-owned site in Elijay, Georgia. Lexington Insulators personnel worked with CH2M HILL professionals to review the mixing and molding operations and explore alternative facility layout concepts. The team drew on Lean principles to agree on a common, high-level vision for the final concept of the new facility. U.S. Department of Energy (DOE)—Confidential Site Lead facilitator for confidential DOE production facility concept design. Project entailed consolidating all production operations previously housed in numerous buildings into one integrated manufacturing building. U.S. MINT—Washington, DC Co-facilitator for a New Coin Development Center; responsible for leading a strategic planning Visioneering project to improve the development process—from concept to production—by which the mint introduces new coins. A CH2M HILL team joined a team from the mint for a three-day Visioneering session during which the group reviewed the product development and introduction process; explored alternative improvement concepts; and agreed on a common, high-level vision for implementing improvements. Value-stream mapping was used to depict how information and coin design currently flow across all required processes. By applying Lean principles, the team then identified areas for potential improvement to generate an ideal future state that would reduce the time from Congressional directive for a new coin to production startup from 15 to 9 months.

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Appendix C: Resumes

David Groseclose, AIA, LEED AP™

Architect Mr. Groseclose has more than 34 years of experience as an architect for a broad range of science and technology projects in manufacturing, governmental, educational, institutional, and commercial sectors. In addition, his experience in sustainable design began in the late 1970s and includes building integrated photovoltaics (BIPV) as well as buildings that incorporate active and passive solar design. Mr. Groseclose is considered to be one of our firm’s LEED® experts.

Relevant Experience Life Sciences Holopack International—Columbia, South Carolina Provided architectural design and produced construction documents. The team provided design services for a 50,000 SF pharmaceutical facility designed to house five or six fill lines containing a variety of manufacturing areas ranging in levels of cleanliness from CMA to Class 100. *Dow Corning—Midland, Michigan Provided programming and conceptual design services for a 193,000 SF healthcare materials manufacturing facility. *McGaw—Irvine, California Provided design services for a product manufacturing line and facility to house the process. The process is housed in manufacturing areas ranging from CMA to Class 100 using clean isolation technology.

Research Facilities Confidential Client—Singapore This project involved conceptual design and basis of design for a stateof-art R&D facility to be constructed. It was designed for sustainability with a goal to obtain green building certifications. CH2M HILL was awarded subsequent project work for detailed design and construction management.

Education B.A., Pre-Architecture, Clemson University Certifications/Registrations Registered Architect in Florida, Louisiana, Massachusetts, New York, North Carolina, South Carolina, Texas, Vermont, and Virginia Leadership in Energy and Environmental Design (LEED) Accredited Professional™ National Council of Architectural Registration Boards Organizations and Affiliations South Carolina Chapter of the American Institute of Architects South Carolina Chapter of the U.S. Green Building Council American Institute of Architects

Clemson University—Clemson, South Carolina Managed the LEED® certification process, edited project specifications to include LEED® requirements, and prepared construction documentation. This facility is the first LEED® Silver Certified building on the Clemson University campus and the first state funded building in South Carolina to receive LEED® Certification by the U.S.GBC. The project included the design of the Advanced Materials Research Laboratory, a 110,000 SF laboratory/office building that houses an electron microscopy suite (11 labs), 16 laser labs, 24 wet chemistry labs, a fiber optics lab, and student and professor’s office space. State of Oregon—Hillsboro, Oregon Developed a sustainable roadmap for the project, edited specifications to incorporate sustainable criteria, and ensured inclusion of the minimum requirements for the State of Oregon’s Sustainable Facilities and ©2012 CH2M HILL Confidential and Proprietary

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Appendix C: Resumes

Guidelines. The project was design of the Department of Environmental Quality/Public Health Laboratory, a 78,000 SF facility.

Food & Beverage Tropicana—Bradenton, Florida Conducted programming to help define project goals and scope. The project included design of a conversion of existing hot fill Twister juice lines to aseptic fill lines. *McKechnie Plastic Components—Easley, South Carolina Provided strategic planning and project scheduling services to bring a new product online at an existing manufacturing facility.

General Manufacturing *Garden State Tanning—Williamsport, Maryland Provided design services for a greenfield leather finishing facility that included layout of the process equipment and automated material handling equipment to augment the manufacturing process. The conceptual design layout included manufacturing, support areas, manufacturing offices, and administrative offices. A conceptual site plan was developed for the facility illustrating automotive parking requirements, truck apron, and dock design. *Avery Dennison, Highway Safety Division—Niles, Illinois Developed the general arrangement of manufacturing equipment for reflective highway markers. This was a fast-track project that required moving all manufacturing equipment from one building into another. The design included the arrangement of plastic molding equipment, manufacturing support areas/offices, warehousing, and utilities.

*Zeuna Starker—Spartanburg, South Carolina Designed a plant expansion and manufacturing support spaces for an automotive muffler manufacturing facility. *Johnson Diversey—Mexico City, Mexico Coordinated an eco-charrette for a manufacturing facility to develop a sustainability roadmap based on U.S.GBC’s LEED® NC 2.2 design guideline. The project included the design of a 377,000 SF industrial cleaning products (liquids and powders) manufacturing facility. *Consolidated Diesel Corporation—Rocky Mount, North Carolina Completed a master planning study integrating an engine assembly line into an existing 1,000,000 SF diesel engine manufacturing facility. The study included an extensive survey of space utilization in the current facility, development of multiple concepts to integrate the new line into the existing facility, and the corresponding material handling concepts to bring components to the new line.

Consumer Products *Pennaco Hosiery, Division of Danskin Legwear— Grenada, Mississippi Completed feasibility studies to determine whether or not manufacturing and warehouse operations could combine into one building.

*In association with another firm

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Appendix C: Resumes

Dan Finazzo, PE Packaging Engineer

Mr. Finazzo has over 30 years of experience providing project engineering services in materials handling and packaging systems. He has hands-on engineering experience in detailed engineering activities, plant management, plant maintenance, plant capacity studies, systems improvement activities, new plant construction, and facilities consolidations. He is experienced in the packaging field in pre-plan project activities, development of requirements, final design, construction and installations, startups, and post project reviews and audits. Areas of expertise include packaging specific project management, package equipment and systems development and implementation, equipment developmental activities, optimization and throughput studies/ enhancements, and equipment standardization solutions.

Education BSMET, Mechanical Engineering, Milwaukee School of Engineering Certifications/Registrations Professional Engineer in Missouri

• Activities required involvement between engineering and marketing/ sales, production management, quality assurance, and distribution • Held positions in Fortune 500 companies in engineering management, plant management, packaging equipment R&D, and supply chain/distribution materials handling

Relevant Experience Consumer Products Confidential Client—Greensboro, North Carolina Developed a manufacturing model to assist the client in managing, planning, and evaluating various production, packaging, and warehousing scenarios associated with the future of the oral care segment of their manufacturing facility. Project scope included developing a customized manufacturing model integrating the manufacturing process information that involved processing, packaging, and materials handling and pertained to the raw materials, packaging supplies, work in process, and finished goods. The model then incorporated various manufacturing strategies and scenarios and produced customized reports. The IAMS Company—Aurora, Nebraska Conducted analysis and synthesis of plant needs to support current and projected manufacturing, filling and packaging, and warehousing logistics. Recommendations were developed for production areas and required quality labs, warehousing, support facilities, utilities, and cGMP strategies for supporting the business. Developed options and site phasing and capital execution strategies that integrated scope, schedule, and order of magnitude costs. The project involved site and facility master planning services for a pet food manufacturing company. An in-depth analysis was performed of the business goals and objectives for two to five years and strategically out to 10 years.

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Appendix C: Resumes

Avon—Neufahrn, Germany Provided consulting services for a manufacturing facility consolidation. The project involved working with facility logistics management to provide preliminary engineering evaluation for site consolidation activities with respect to all material handling activities—movements and storage. Confidential Client—Multiple Locations Developed manufacturing models relevant to manufacturing planning for consumer products and pharmaceutical facilities; the models provided key information to engineering and manufacturing management for use in master planning, produceto-demand models, capacity-to-demand planning, packaging line reduction studies, packaging line scheduling and optimization models, transition modeling for facility consolidations, and supply chain modeling.

Life Sciences *GlaxoSmithKline—St. Louis, Missouri Provided project and packaging engineering for a manufacturing facility consolidation project to bring all products into one facility. The effort required a fast-track, confidential project approach and techniques. Project technical highlights included: • Relocation of complete manufacturing and inmarket branded product lines from the East Coast to a Midwest facility without loss of distribution/ inventory at retail level • International and domestic travel to source specialty packaging equipment • Tight integration into an existing facility with limited space • Addition of new technology to increase throughputs and line speeds • Issuance of specifications and purchase orders for all major units of operations • Introduction of new packaging concepts and units of operations • Integration of outputs into existing distribution systems

Energy & Chemicals Confidential Client—Green River, Wyoming Provided engineering services. The project consisted of a product bagging and logistics engineering and cost estimating to increase production from 50,000 tons to 80,000 tons per year. The work included modifications to existing packaging facilities with added new equipment and building.

Food & Beverage *Kraft Foods—Garland, Texas Led and facilitated a fact-finding group of subject matter experts to identify cost savings and improvements in packaging and materials handing areas. Presented a report with over 250 items and developed a matrix that ranked and rated ideas as to cost to implement, time to implement, resources required to implement, and size of savings. Corporate management used the results for budget planning purposes for the next three fiscal years. *Kraft Foods—Dover, Delaware Studied, collected data, and identified root causes of low throughput on a high-speed packaging line. Provided a report to client recapping causes and suggested next-step systems improvement activities. Client made selected changes to equipment, materials, and operations to increase throughput, based upon the report. *Kraft Foods—Dover, Delaware Evaluated facility case delivery and palletizing systems. The age and growth of the facility warranted a study to review the arrangement of all the palletizing cells to see if improvements in throughput, service to packaging lines, and reduction in losses and labor could be achieved. Managed a team of engineers to collect data, evaluate, and make recommendations for improvement. Facility management used results of the report to justify a phased approach of re-engineering the materials handling area between the packaging and distribution activities of the facility. *In association with another firm

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Appendix C: Resumes

George Morgan, Jr. Process Engineer

Mr. Morgan has over 26 years of experience in project engineering and management in process industries, with an emphasis on first generation processes. He also has 15 years of hands-on process design and development work. • Developed tools, systems, and operating procedures for the efficient execution of small capital projects. • Project work includes conceptual studies, detail design through construction, commissioning, and startup. • Responsible for the resources, work processes, quality, development, and growth of the process engineering and piping groups.

Education B.S., Chemical Engineering Lehigh University, 1969 Certifications/Registrations Professional Engineer in Ohio Organizations and Affiliations American Institute of Chemical Engineers International Society for Pharmaceutical Engineering

Relevant Experience Consumer Products Confidential Client—Ohio Provided process equipment consulting services to a product development team working on a high-melting wax bar. A number of batch and continuous unit operations for melting and forming the product were evaluated, including pilot trials, leading to the selection of a twin-screw extruder as the preferred option. Confidential Client—Ohio Provided technical consulting for a proprietary absorbent foam sheet making process, both at the pilot and production scale; assignments included a pilot line relocation study, recovery and reuse of waste effluent, and improved cleaning and dewatering studies. Confidential Client—Ohio Served as process and product development engineer for tissue products. As the group leader, was responsible for the staffing, operation, and maintenance of a pilot paper machine facility. As the process development engineer, developed a layered tissue making process, resulting in patent protection for the process after previous efforts had been unsuccessful. Confidential Client—Georgia Provided process engineering services and acted as the technical liaison during testing and startup of a new tissue paper machine. The project involved six months of writing, executing, and documenting system commissioning plans, and six months of technical support to one of the shift production teams. Performed an extensive facility upgrade in order to support the production of a new heat wrap product that was being developed. The CH2M HILL team worked with the client team to ensure that their newly developed product was ready to begin production at the same time as the new facility became operational.

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Appendix C: Resumes

Confidential Client—Wisconsin Provided process development engineering services for quality improvements in the sulfite pulping and bleaching processes.

Solar/PV Confidential Client—Confidential Location Provided technical consulting during design and onsite startup support for a filament-based, silicon carbide vapor deposition facility. The project integrated a set of development-based filament reactors into a greenfield facility that was completed in seven months. The scope included hazardous raw material supply and distribution, silane incineration and scrubbing, waste effluent treatment, and very low temperature process chilling.

General Manufacturing Confidential Client—Southwestern Ohio Directed the layout, equipment selection and specification, piping design, and skid vendor liaison efforts for a supercritical CO2 solvent extraction facility. The system was designed to remove unreacted monomer from a biodegradable polymer used for coating pharmaceutical active ingredients. The supercritical CO2 system was provided on multiple skids by a specialist vendor and had to be integrated into a very tight existing space. Equipment selection included CO2 supply and exhaust, process heating and cooling, product comminution and drying, and final bulk packaging. Aristech Acrylics—Florence, Kentucky Oversaw the detailed design, procurement, and construction of a new acrylic sheet casting machine and syrup preparation facility. The project involved implementing new technology still under development while design and construction were taking place, requiring close interaction with the machine vendor. Despite this challenging project environment, the project achieved target product quality within 30 minutes of initial startup.

*DuPont—Parkersburg, West Virginia Served in numerous capacities, from design project manager to process engineer, for multiple projects, helping DuPont improve quality and reduce cost. Directed the engineering, estimating, procurement, and provided construction liaison for a project to modernize a batch six, 12 nylon polymerization facility. Key project features included an expanded dry acid unloading and storage facility, automated production of nylon salt, a new salt evaporator with improved mist entrainment, new pellet conveying, de-dusting and storage equipment, and an integrated PLC-based control system. To minimize production downtime the project was designed and pre-built to replace key equipment and make final tie-ins during an annual two-week outage. Served as project manager for the design and procurement of integrated melt casting and waterquenched polymer strand cutters. The cutting machines were initially track mounted and cycled between batch nylon reactors; they were later upgraded to travel on air cushion float pads. Provided project management for a DCS retrofit in a congested 40-year-old acrylics resin plant. The project involved creative use of space, new control equipment, retrofit of existing valves with operators and position sensors, and a phased cutover to maintain production. Construction planning and design coordination were critical. Served as project manager and lead process engineer for the conceptual and detail design, procurement and construction of an acrylics resin washing and screening modernization project. Improvements included new process equipment as well as modified operation of existing equipment to improve washing efficiency and reduce batch cycle times. Provided project management for a Teflon resin debottlenecking and modernization project. *In association with another firm

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Appendix C: Resumes

Michael Loftus, PE, CEM, CEA, LEED AP™ Mechanical Engineer

Mr. Loftus offer over 18 years of professional experience in mechanical performance ((HVAC/plumbing/fire protection/process piping) design, specifications, production, cost estimation, construction administration, and project management for new large construction and renovation projects), development of design concepts (HVAC/plumbing/fire protection), and supervision of design through all phases of production and construction. • Expertise in demand-side energy reduction and energy management for commercial and industrial facilities • Expertise includes modeling buildings for energy analysis, design of large central plants, toxic and corrosive exhaust systems, industrial ventilation, process piping, administrative support facilities, fire suppression, and piping infrastructure

Education B.S., Mechanical Engineering, Texas A&M University Certifications/Registrations Registered Professional Engineer in Arkansas, California, Colorado, Louisiana, Mississippi, Oklahoma, and Texas LEED Accredited Professional Certified Energy Manager Certified Energy Auditor

Relevant Experience Consumer Goods Client Inc.—Dallas, Texas Provided consulting of existing cosmetic manufacturing facility HVAC, pressurization, cleanliness, and dust control and made recommendations to improve performance to meet cGMP and regulatory requirements. Client Inc.—Dallas, Texas Co-chair for eco-charrette for corporate headquarters complex in application for LEED EBOM 2009. Beauticontrol—Carrollton, Texas Lead engineer for design of a process heating water system that serves jacketed kettles for formulating cosmetics and area sanitation.

Life Sciences Alcon Aspex Line E—Fort Worth, Texas Lead mechanical engineer for cleanroom and support of an expansion to existing optical pharmaceutical facility including filling and mixing suites (Class A Fill Suite). Evaluated ventilation and pressurization to meet current good manufacturing practices (cGMP). Allergan Unidose #8 and #9—Waco, Texas Mechanical engineer for the design of new “unidose” optical pharmaceutical suite including packaging lines. Two suites were designed to meet the EU and U.S. requirements respectively.

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Appendix C: Resumes

KV Pharmaceutical EC IV Manufacturing Plant— Earth City, Missouri Mechanical engineer for cleanroom portions of a pharmaceutical manufacturing plant. Evaluated ventilation and pressurization to meet current good manufacturing practices (cGMP). Cardinal Health/Adams Laboratory—Fort Worth, Texas Provided an analysis of existing facility HVAC, pressurization, cleanliness, and dust control and made recommendations to improve performance to meet cGMP. Pfizer—Kalamazoo, Michigan Lead team of energy management engineers to perform studies for various laboratory and manufacturing buildings and site infrastructure for pharmaceutical facility. Temple Bio-Science Labs—Temple, Texas Provided programming for conversion of 80,000 sq ft of general manufacturing space to bio-medical research laboratories.

Food & Beverage CTI Foods—Arlington, Texas Project engineer. Analyzed methods for reducing fat, oil, and grease (FOG) from manufacturing process from being deposited into sanitary sewer. Pioneer Foods (CH Guenther)—Duncanville, Texas Lead mechanical engineer and project engineer for study and engineering design for various bakery projects: • Oil Mist Elimination: Provide study and engineering design to provide slot hoods with inline mist elimination to remove vaporized oil overspray from tunnel oven. • Spiral and Storage Freezer Dehumidification: Provide study for dehumidification of spiral and flash freezers

Pepsi Cola—Arlington, Texas Provided mechanical engineering for concentrate salts re-engineering (150,000 sq ft) expansion project. Designed HVAC, ventilation, and dust control systems. Also designed modifications of process sewer. Kraft/Planters—Fort Smith, Arkansas Lead mechanical engineer and project engineer for the design of a new 100,000 CFM makeup air unit for roasting area with subsequent central 400-ton chiller plant to support cooling for makeup air unit. Kroger/Vandervoort’s Dairy—Fort Worth, Texas Mechanical engineer for dairy expansion including ventilation upgrades, sewer and drainage modifications, and fire suppression additions. Dannon Yogurt—Fort Worth, Texas Designed renovation and expansion of Dannon Yogurt Processing Plant which included implementing new equipment in facility’s existing ammonia refrigeration system. H.E. Butt Bottling Plant—San Antonio, Texas Design renovation of existing warehouse space in San Antonio facility to a soft drink bottling plant (one can line, two PET lines) with all support areas. The Earthgrains Company—Paris, Texas Provided design review and support (HVAC, plumbing, fire protection) of bakery expansion.

General Manufacturing Dowell Schlumberger—Tulsa, Oklahoma Laboratory and Central Plant conversion. Tetrapak—Denton, Texas Lead mechanical engineer for relocated printing facility platemaking and platemounting operation for a food and beverage packaging manufacturing facility.

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Appendix C: Resumes

Adam Nicely, PE Electrical Engineer

Education B.S., Electrical Engineering, Arkansas State University

Relevant Experience Food & Beverage

Certifications/Registrations Registered Professional Engineer in Arkansas, Colorado, Illinois, New Jersey, Oklahoma, Texas, and Virginia

Mr. Nicely offers diverse experience in the design of electrical and communication systems in a variety of industries.

Pioneer Foods—Duncanville, Texas Responsible for electrical design on the addition of dehumidification units to existing freezers.

Chemicals Enbridge—Superior, Wisconsin Assisted with the electrical engineering to support a Level 3 cost estimate for a 4.8 million barrel merchant storage facility for light and heavy crude, capable of receiving 800 KBBLS/day and delivering 600 KBBLS/day, expandable to 1.2 million BBLS/day. Enbridge—Stockbridge, Michigan Completed the electrical engineering to support a Level 4 cost estimate for the addition of two 157,000 BBL tanks to an existing pipeline terminal. Hawthorn Energy – Cushing, Oklahoma Electrical engineer for a pumping and receiving station for a 17.5 mile pipeline from Stroud, OK, to Cushing, OK. Pump station included a rail unloading facility capable of delivering 90000 barrels per day to Cushing, OK. Kinder Morgan – Orange, CA Electrical design for conversion of a tanker truck loading rack from diesel to ethanol service. Nustar—Texas City, Texas Assisted in the electrical design of the South Tank Farm addition. Completed Phase 3 design and estimate on addition of Tanks 20001. Completed Phase 2 design and estimate on addition of 17 tanks at the Westside Development. Shell Oil – Carson, CA Electrical design for conversion of two 50000 barrel tanks from diesel to ethanol storage, addition of one 50000 barrel ethanol tank, and the conversion of one lane of a truck loading rack to ethanol service. Valero LP—Multiple Locations, U.S.A Port Arthur, Texas Refinery - Electrical design for a pipeline receiving station including a 20” diesel meter skid, 20” gasoline meter skid, and 6” butane meter skid. Beaumont, Texas - Electrical design for the pumping and receiving station for a 30” crude line to Port Arthur Refinery. ©2012 Vendor Confidential and Proprietary

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Appendix C: Resumes

UNEV—Multiple Locations, U.S.A Salt Lake City, Utah - Assisted in the electrical design and cost estimate of a pipeline pump station Las Vegas, Nevada - Completed Phase 2 design and estimate on a pipeline receiving/truck loading terminal. Cedar City, Utah - Completed Phase 2 design and estimate on a pipeline receiving/truck loading terminal.

General Manufacturing Mesabi Nugget—Hoyt Lake, Minnesota Designed cable and conduit systems for a rotary hearth furnace, including feed and delivery systems, for a 500,000 TPY iron nugget plant. Alliance Data Systems—Dallas, Texas Assisted with the electrical engineering required for a 1000 kW generator relocation. Completed construction drawings for permitting and completed site observation during construction.

Transportation Town of Erie Public Works, L.A.W. Service Center— Erie, Colorado Electrical engineer for new 26,300 square foot Service Center. The facility includes vehicle storage and maintenance facilities, maintenance bays, welding shops, and outdoor fueling and vehicle wash facilities. Loudoun County Transit Bus Maintenance and Operations Facility Final Design—Leesburg, Virginia Electrical engineer for the final design of a 7,400 square foot operations center and a 22,500 square foot maintenance building to serve a fleet of 80 transit buses. MetroLINK Transit Maintenance Facility—Rock Island, Illinois Electrical engineer for a 125 bus facility operations and maintenance facility. Transit operation was designed for diesel and CNG fueled standard size and articulated transit buses. Building features both interior bus parking and service fueling lanes. The 150,000 square foot facility included photovoltaic panels on the roof to generate approximately 400kW of electricity for the facility. The facility is being designed for LEED Silver certification.

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Appendix D: Bid Quotation Form Client Inc Proposal Bid Form, Rev. 0 Five Year (5) Study Plan Bid Form Date: 4-27-2012

EFFORT HOURS

ENGINEERING 1

1 1 2 3 4 5

Programming (Visioneering) Engineering Packaging Engineering Processing Engineering Utility / Mechanical: HVAC/Mechanical Electrical Architectural Taxes : Sales Labor

Engineering:

Subtotal 1

Management & Support: Project Management Cost Estimator Travel/Expenses Taxes: Sales Labor Management & Support:

Subtotal 4

SUBTOTAL EFFORT HOURS: SUBTOTAL LUMP SUM COST:

LABOR COST

MATERIAL COST

400

88,600.00

280

39,900.00

240

140 110 110

$ $ $

ALLOWANCE

----- N/A -----

37,800.00

----- N/A -----

21,500.00 16,900.00 16,900.00

$ $ $

----- N/A -----

----- N/A --------- N/A -----

$ $

1,280

221,600.00

230 50

$ $ $

36,600.00 11,700.00 10,000.00

----- N/A -----

280

----- N/A -----

58,300.00

279,900

$ $

1,560 -

SUBTOTAL ALLOWANCE COST:

TOTAL PROJECT COST (Lump Sum + Allowance):

279,900

Prospective Bidder Data: By completing and submitting this Bid Summary, the Bidder hereby acknowledges that he/she is authorized to negotiate on behalf of the company; and (2) has read and understands all requirements outlined in this document and any attachments (e.g. terms and conditions, statement of work, specifications).

4/24/2012

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5 Year Study Bid Form CH2MHILL.xls

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Appendix E: Cost Estimate Classification Summary Class 5

Class 4

Class 3

Class 2

Class 1

10% to 15%

30%

70%

100%

Concept Screening

Study or Feasibility

Budget Authorization, or Control

Control or Bid / Tender

Check Estimate or Bid / Tender

Capacity Factored, Parametric Models, Judgment, or Analogy

Equipment Factored or Parametric Models

Semi-Detailed Unit Costs with Assembly Level Line Items

Detailed Unit Cost with Forced Detailed TakeOff

Detailed Unit Cost with Detailed Take-Off

Estimate Class LEVEL OF PROJECT DEFINITION Expressed as a % of complete definition END USAGE Typical Purpose of Estimate METHODOLOGY Typical estimating method EXPECTED ACCURACY RANGE Typical variation in low and high ranges [a] PREPARATION EFFORT Typical degree of effort relative to least cost index of 1 [b]

L: -20% to -50%

H: +30% to +100%

L: -15% to -30%

H: +20% to +50%

L: -10% to -20%

H: +10% to +30%

L: -5% to -15%

H: +5% to +20%

L: -3% to -10%

H: +3% to +15%

2 to 4

3 to 10

4 to 20

5 to 100

Class 5 estimates are generally prepared based on very limited information, and subsequently have very wide accuracy ranges. As such, some companies and organizations have elected to determine that due to the inherent inaccuracies, such estimates cannot be classified in a conventional and systematic manner. Class 5 estimates, due to the requirements of end use, may be prepared within a very limited amount of time and with very little effort expended - sometimes requiring less than 1 hour to prepare. Often, little more than proposed plant type, location, and capacity are known at the time of estimate preparation.

Class 4 estimates are generally prepared based on very limited information, and subsequently have very wide accuracy ranges. They are typically used for project screening, determination of feasibility, concept evaluation, and preliminary budget approval. Typically, engineering is from 1% to 5% complete, and would comprise at a minimum the following: plant capacity, block schematics, indicated layout, process flow diagrams (PFDs) for main process systems and preliminary engineered process and utility equipment lists. Level of Project Definition Required: 1% to 15% of full project definition.

Class 3 estimates are generally prepared to form the basis for budget authorization, appropriation, and/or funding. As such, they typically form the initial control estimate against which all actual costs and resources will be monitored. Typically, engineering is from 10% to 40% complete, and would comprise at a minimum the following: process flow diagrams, utility flow diagrams, preliminary piping and instrument diagrams, utility flow diagrams, preliminary piping and instrument diagrams, plot plan, developed layout drawings, and essentially complete engineering process and utility equipment lists. Level Of Project Definition Required: 10% to 40% of full project definition.

Class 2 estimates are generally prepared to form a detailed control baseline against which all project work is monitored in terms of cost and progress control. For contractors, this class of estimate is often used as the "bid" estimate to establish contract value. Typically, engineering is from 30% to 70% complete, and would comprise at a minimum the following: Process flow diagrams, utility flow diagrams, piping and instrument flow diagrams, heat and material balances, final plot plan, final layout drawings, complete engineered process and utility equipment lists, single line diagrams for electrical, electrical equipment and motor schedules, vendor quotations, detailed project execution plans, resourcing and work force plans, etc.

Class 1 estimates are generally prepared for discrete parts or sections of the total project rather than generating this level of detail for the entire project. The parts of the project estimated at this level of detail will typically be used by subcontractors for bids, or by owners for check estimates. The updated estimate is often referred to as the current control estimate and becomes the new baseline for cost/schedule control of the project. Class 1 estimates may be prepared for parts of the project to comprise a fair price estimate or bid check estimate to compare against a contractor's bid estimate, or to evaluate/dispute claims. Typically, engineering is from 50% to 100% complete, and would comprise virtually all engineering and design documentation of the project, and complete project execution and commissioning plans. Level for Project Definition Required: 50% to 100% of full project definition.

Class 5 estimates are prepared for any number of strategic business planning purposes, such as but not limited to market studies, assessment of initial viability, evaluation of alternate schemes, project screening, project location studies, evaluation of resource needs and budgeting, long-range capital planning, etc.

Class 4 estimates are prepared for a number of purposes, such as but not limited to, detailed strategic planning, business development, project screening at more developed stages, alternative scheme analysis, confirmation of economic and/or technical feasibility, and preliminary budget approval or approval to proceed to next stage.

Class 3 estimates are typically prepared to support full project funding requests, and become the first of the project phase "control estimate" against which all actual costs and resources will be monitored for variations to the budget. They are used as the project budget until replaced by more detailed estimates. In many owner organizations, a Class 3 estimate may be the last estimate required and could well form the only basis for cost/schedule control.

Class 2 estimates are typically prepared as the detailed control baseline against which all actual costs an resources will now be monitored for variation to the budget, and form a part of the change/variation control program.

Class 1 estimates are typically prepared to form a current control estimate to be used as the final control baseline against which all actual coasts and resources will now be monitored for variations to the budget, and form a part of the change/variation control program. They may be used to evaluate bid checking, to support vendor/contractor negotiations, or for claim evaluations and dispute resolution.

ESTIMATING METHODS USED

Class 5 estimates virtually always use stochastic estimating methods such as cost/capacity curves and factors, scale of operations factors, Lang factors, Hand factors, Chilton factors, Peters-Timmerhaus factors, Guthrie factors, and other parametric and modeling techniques.

Class 4 estimates virtually always use stochastic estimating methods such as cost/capacity curves and factors, scale of operations factors, Lang factors, Hand factors, Chilton factors, Peters-Timmerhaus factors, Guthrie factors, the Miller method, gross unit costs/ratios, and other parametric and modeling techniques.

Class 3 estimates usually involve more deterministic estimating methods than stochastic methods. They usually involve a high degree of unit cost line items, although these may be at an assembly level of detail rather than individual components. Factoring and other stochastic methods may be used to estimate less-significant areas of the project.

Class 2 estimates always involve a high degree of deterministic estimating methods. Class 2 estimates are prepared in great detail, and often involve tens of thousands of unit cost line items. For those areas of the project still undefined, an assumed level of detailed takeoff (forced detail) may be developed to use as line items in the estimate instead of relying on factoring methods.

Class 1 estimates involve the highest degree of deterministic estimating methods, and require a great amount of effort. Class 1 estimates are prepared in great detail, and thus are usually performed on only the most important or critical areas of the project. All items in the estimate are usually unit cost line items based on actual design quantities.

EXPECTED ACCURACY RANGE

Typical accuracy ranges for Class 5 estimates are -20% to 50% on the low side, and +30% to +100% on the high side, depending on the technological complexity of the project, appropriate contingency determination. Ranges could exceed those shown in unusual circumstances.

Typical accuracy ranges for Class 4 estimates are -15% to -30% on the low side, and +20% to +50% on the high side, depending on the technological complexity of the project, appropriate reference information, and the inclusion of an appropriate contingency determination. Ranges could exceed those shown in unusual circumstances.

Typical accuracy ranges for Class 3 estimates are -10% to 20% on the low side, and +10% to +30% on the high side, depending on the technological complexity of the project, appropriate reference information, and the inclusion of an appropriate contingency determination. Ranges could exceed those shown in unusual circumstances.

Typical accuracy ranges for Class 2 estimates are -5% to 15% on the low side, and +5% to +20% on the high side, depending on the technological complexity of the project, appropriate reference information, and the inclusion of an appropriate contingency determination. Ranges could exceed those shown in unusual circumstances.

Typical accuracy ranges for Class 1 estimates are -3% to 10% on the low side, and +3% to +15% on the high side, depending on the technological complexity of the project, appropriate reference information, and the inclusion of an appropriate contingency determination. Ranges could exceed those shown in unusual circumstances.

As little as 1 hour or less to prepare to perhaps more than 200 hours, depending on the project and the estimating methodology used.

Typically, as little as 20 hours or less to perhaps more than 300 hours, depending on the project and the estimating methodology used.

Typically, as little as 150 hours or less to perhaps more than 1500 hours, depending on the project and the estimating methodology used.

Typically, as little as 300 hours or less to perhaps more than 3000 hours, depending on the project and the estimating methodology used. Bid Estimates typically require more effort than estimates used for funding or control purposes

Class 1 estimates require the most effort to create, and as such are generally developed for only selected areas of the project, or for bidding purposes. A complete Class 1 estimate may involve as little as 600 hours or less, to perhaps more than 6,000 hours, depending on the project and the estimating methodology used. Bid estimate typically require more effort than estimates used for funding or control purposes.

Order of Magnitude Estimate; Ratio, ballpark, blue sky, seat-ofpants, ROM, idea study, prospect estimate, concession license estimate, guesstimate, rule-of thumb.

Budget Estimate; Screening, top-down, feasibility, authorization, factored, pre-design, pre-study.

Budget Estimate; Budget, scope, sanction, semi-detailed, authorization, preliminary control, concept study, development, basic engineering phase estimate, target estimate.

Definitive Estimate; Detailed Control, forced detail, execution phase, master control, engineering, bid, tender, change order estimate.

Definitive Estimate; Full detail, release, fall-out, tender, firm price, bottoms-up, final, detailed control, forced detail, execution phase, master control, fair price, definitive, change order estimate.

REFINED CLASS DEFINITION

END USAGE DEFINED

EFFORT TO PREPARE (for US$20MM project):

ANSI Standard Reference Z94.2-1989 name; Alternate Estimate Names, Terms, Expressions, Synonyms:

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Appendix F: Representative Project Experience

Strategic Planning for Manufacturing Confidential Client (Dallas, Texas, U.S.A) Vendor provided a three-phase study for this beauty care products company which would define a master plan to accommodate their future projected growth of 15 - 20% per year. Vendor facilitated this planning effort by completing a three-part effort: • World Class Lean & Agile Manufacturing training • Preliminary programming sessions (Visioneering) • Documentation preparation The World Class Manufacturing training program concentrated on improving the productivity of the client’s cosmetics manufacturing. Classroom sessions in a factory demonstration model were utilized to provide a hands-on experience of three different manufacturing methods: traditional; Just-In-Time; and cellular. The training models were then related to the client’s manufacturing methods and the principles of the various techniques discussed as they applied to the operation. The preliminary programming sessions (Visioneering) began with Vendor providing facilitation services for the client’s staff in developing their future plans. Sessions involved reviewing their goals and objectives for future operations. The facilitators asked questions regarding facility layout, production and processes, equipment, and support integration needs of the organization. Upon completion of the programming sessions, Vendor developed an analysis of existing operations and compared this analysis to future goals and objectives of the organization in order to meet future business plans. Recommendations addressed short-term improvement needs and identified the planning criteria to be taken into consideration in the future when the existing plant is retrofitted or a new facility constructed. Preliminary cost estimates and schedules were created for both short-term and long-term recommendations. Several options for long-term future growth were analyzed including a greenfield site versus consolidation of existing operations into a single existing facility.

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Appendix F: Representative Project Experience

Manufacturing Consulting Services

Plan for Consolidation and Integration

Confidential Client (U.S.A) Vendor performed a series of manufacturing consulting projects for this large, privately owned manufacturer of shampoos and conditioners. The purpose of these assignments was to improve manufacturing capacity and on-time deliveries within the confines of existing facilities. We began by analyzing current state operations to identify opportunities for improvement.

Specialty Brands (San Francisco, California, U.S.A) Specialty Brands, a rapidly growing manufacturer of spices, gravy mixes, extracts, and other specialty food products, retained Vendor to develop and implement a plan for the consolidation and integration of product lines from several manufacturing plants into two manufacturing sites. The objective of the project was to develop both a master plan for the migration of products to the host facilities, and an interim plan to accomplish the objective while remaining fully operational and meeting market demand. The key aspects of the project were:

Several key opportunities were developed, including: • Implementation of rapid changeover techniques to reduce the amount of time from last good product in a batch to first good product at full production rate in the succeeding batch. This included the introduction of automated CIP systems, point of use storage for changeover tooling and piping headers, introduction of specialized rapid changeover teams, and documentation of product specific standard work for changeovers. • Dedication of lines for high volume, low variety products and for low volume, high variety products resulting in increased flexibility to respond to customer demand and allocation of storage space to value adding process and packaging operations. • Balancing of process blending operations with packaging lines to eliminate the need for large surge holding tanks. • Replacement of manual measuring with automated metering of ingredients into blending operations to eliminate in-line time consuming QC checks and manual trial-by error recipe correction based upon tribal knowledge and experience to attain correct mix and Ph levels. • Automated inline checks during the blending process. • Smaller, more process intensive equipment, mixing tanks and holding tanks to increase production flexibility for low volume products. • Replacement of some older maintenance intensive packaging equipment. Vendor also provided detailed engineering, cost estimates and payback analysis, and implementation planning for these recommendations. Resulting benefits included reduced finished goods storage, increased OEE, increased throughput capacity and flexibility to smaller batch sizes and introduction of new products. ©2012 Vendor Confidential and Proprietary

• Strategic Planning – Business plans were developed by interviewing key executives to determine the objectives of the new entity which were then developed into a medium-term manufacturing strategic plan. Also developed was a short-term action plan to accomplish the consolidation and integration objectives. This action plan included sponsor, due dates, skill set requirements, tasks, and deliverables. • Evaluation of the Existing Facilities and Operations – Production operations and the physical plants were evaluated to determine the feasibility of expansion and modification to accept new product groups. The study also made recommendations for new equipment and technologies to increase throughput and produce product at least cost. • Assessment of the Vendor Supply Chain and Distribution Networks – Raw material and component sourcing was analyzed to determine the least cost alternative to location of the host plants. The distribution and transportation costs played a predominant role in ultimate plant selection. • Development of a Migration Plan for Product Manufacturing – Based on the evaluation of operations, facilities, and distribution strategy, a plan was developed to relocate family product lines to either an east coast site or a west coast site. The plan focused on relocation of process and facilities equipment into the host facilities, modification and expansion of those facilities, and a transition plan for maintaining inventory levels and meeting market demand. • Implementation – The consolidation plan was finalized by Specialty Brands and implemented. Vendor provided the design engineering and construction management for completion of the project. IAT020812034553PDX

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Appendix F: Representative Project Experience

Lean Transformation Program United States Mint (Multiple Locations, U.S.A) The U.S. Mint turned to Vendor to provide a continuous series of Task Order based assignments helping achieve Lean transformation of U.S. Mint coin manufacturing operations at its four U.S. Mints (Philadelphia, Denver, San Francisco, and West Point). The Lean transformation program services provided include lean manufacturing process cellular design, facilities and equipment assessments, design for building modifications, process modeling, operations cost estimates, manpower and organizational planning, capital cost estimating, master planning, financial modeling, and the development of specifications for manufacturing equipment and automated material handling systems. Using an interactive workshop process, training was conducted for the hourly work force at all four U.S. Mints, U.S. Mint Headquarters staff in Washington, D.C. (including U.S. Mint Director, Henrietta Holsman Fore), key suppliers to the U.S. Mint, and the Federal Reserve Bank regarding lean manufacturing and lean supply chain logistics. Lean process design was accomplished by applying lean manufacturing tools and techniques to the overall coin manufacturing operations, as well as detailed cellular designs for individual processes and work centers such as die production and coin stamping operations. As the prime contractor, our team placed an overall organizational structure that is providing adequate resources to meet technical requirements and to deliver the work on time and within the US Mint’s budget. All task order work is being scheduled, monitored, and controlled through the use of the same fully integrated cost and scheduling system we are proposing for your program. Technical Capability • Lean analysis of multiple manufacturing operations that have widely ranging work force ethics • Detailed production equipment surveys and assessment • Preparation of new Lean manufacturing/cellular designs along with cellular process modeling • Preparation of designs for facility and utility modifications needed for the Lean/cellular transformation, capital cost estimates; and eventual on-site construction management • Training for the operation of new Lean/cellular processes Technical Approach • A phased approach that involved Lean/cellular analyses of existing manufacturing operations and processes • Comprehensive equipment surveys and assessments • Multiple cellular designs with work process modeling • Detailed design packages for facility modifications and construction and equipment cost estimates • Planning, scheduling and coordination of a phased implementation approach allowed this transition to take place without disruption to 7-day per week, 3-shift per day production at four facilities to meet the U.S. Reserve Bank’s requirement for 20 billion circulating coins per year ©2012 Vendor Confidential and Proprietary

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Appendix F: Representative Project Experience

Five Year Strategic Plan for Manufacturing

Improvements to Manufacturing Process

Bear Creek Corporation (Medford, Oregon, U.S.A) Bear Creek, a national manufacturing and retail products company, selected CH2M HILL’s industrial engineering group to perform a comprehensive five year strategic plan. Project Evergreen encompassed evaluating aspects to improve current manufacturing, logistics, and material handling. Critical operations were studied for efficiency, utilization and growth projections were addressed by evaluating equipment technology improvements and best practices. Vendor industrial engineering provided current-future state concepts, full capacity analysis, new details for layout, material handling and improved manufacturing technologies. Production and layout improvements and concepts, and WIP handling schemes allowed Bear Creek to establish a five year growth plan for capital and improvement project execution. The plan was executed with a high level of predicted outcomes. Project tasks included the following:

Ipsen (Dublin, Ireland) Vendor provided the concept study, front end design, and a ±10% capital cost estimate for the development of a single manufacturing unit into two within an existing building, the introduction of automation concepts, and materials handling enhancements to two existing peptide synthesis production lines. Improvements were driven by health and safety upgrades, a desire to improve batch cycle time and corresponding throughput increases, and the need to segregate the two production lines from a single manufacturing hall into two product-dedicated suites, to meet GMP and regulatory compliance.

• Multiple operations analysis (locations: Oregon, California, Ohio) • Shop by shop observation and data collection surveys • Order and product planning requirements • Site-wide material handling analysis • Activity analysis and classification of activities • Equipment technology improvements • Space and operational optimization analysis • Assembly operations improvement focus

Key features of this project include the following: • Reviewing the process chemistry with Ipsen’s team to identify areas that could be readily automated without major risk to an established, successful manufacturing approach • Identifying new equipment technologies to upscale batch size and increase throughput • Developing new plant layout options and evaluating them to identify the one that best met Ipsen’s project objective • Developing process and instrumentation diagrams (P&IDs) for the new concept • Vendor executed this project on a fixed fee basis and provided the following services: Project management, architectural design, civil/structural design, process design, mechanical and HVAC design, and electrical and I&C design. Vendor executed this project on a fixed fee basis and provided the following services: Project management, architectural design, civil/structural design, process design, mechanical and HVAC design, and electrical and instrumentation and controls (I&C) design.

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Appendix F: Representative Project Experience

Material Flow Process Improvement Program Maytag (Cleveland, Tennessee, U.S.A) Vendor was commissioned to serve as manufacturing consultant to Maytag’s in-house Material Flow Process Improvement (MFPI) Team. The initial assignments included a Visioneering seminar to formalize short and long range objectives, and an overall facility program. These requirements were evaluated and organized in the context of manufacturing goals and business strategies. The team, with Vendor facilitating, then developed an execution plan for a plant-wide initiative, “Dependable Manufacturing,” in deference to the well-known Maytag brand identity. The consulting and engineering study performed by Vendor provided Maytag with the definition necessary to appropriate funding for advanced project phases. Production and material handling modifications were incorporated into a pilot plant operation on the “best” existing production line for validation purposes. Examples of the value added by Vendor include the following: • “Red-tagging” of nonessential materials and equipment at the production line saved more than 25% of overall assembly floor area. • The saved floor space allowed the reintroduction of sub-assembly operations into production cell, eliminating wasted movement. • Attention to staging methods and daily production quantities reduced door defects by more than 75%. • Daily point-of-use delivery from insulation supplier directly to production cell reduced inventory space requirements and allowed Maytag to focus on “value-added” operations. • The results of the pilot test were so successful that the MFPI Team was asked to incorporate similar improvements throughout the 1.9 million square foot plant. Future product and process improvement justifications and performance measurements were included as study deliverables.

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Appendix F: Representative Project Experience

Modernization Project Caterpillar (Lafayette, Indiana, U.S.A) The Caterpillar Engine Division is responsible for designing, manufacturing, and marketing diesel and natural gas-powered engines. These engines are utilized in earthmoving, construction, and on-highway trucks; electric power generation systems; and in industrial, locomotive, agricultural, and material handling applications. The Large Engine Center Facility Modernization Project was initiated with Vendor in response to both the growing demand for diesel and natural gas-powered engines, as well as the introduction of newly acquired products. Drastic changes were required to increase capacity and product offerings through the development of a flexible and adaptable production system. We conducted a two-week Visioneering Exercise to establish the “as-is” and “to-be” process flow. We analyzed the current synchronous process to identify opportunities to improve material flow, ergonomics, labor distribution, throughput, and outsourcing. Vendor then developed the proposed asynchronous process flow segregating low and high labor content engines. Examples of added benefits include the following: • Grouped tasks into manufacturing cells and defining effort hour requirements for each cell helped identify waste and non value-added activities. • Developed a cost-effective product conveyance system to transport engines through the assembly operations which is flexible in accommodating a variety of product configurations and adaptable for meeting new engine designs

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Appendix F: Representative Project Experience

Audit of Food Process and Packaging Equipment Kellogg’s (Battle Creek, Michigan, U.S.A.) CH2M HILL’s on-site audit of Kellogg Company’s food process and packing facility established the condition of process equipment, defined the capital requirements necessary to maintain the equipment and related facilities through a 20-year period, and identified areas in the process and packing operations having potential for improved operating efficiency and product quality. In a limited time frame of less than four months, a team of over 40 architects and engineers was mobilized to work to accomplish the extensive audit of buildings, site, utilities, and manufacturing systems that house and serve over 56 acres of production floor space and produce approximately 500 million pounds annually. The task was accomplished by organizing special skill groups as follows: • The facilities group evaluated the total complex and developed 24 separate audit reports covering designated structures and the plant site. • The utilities group evaluated utility services including steam and power generation, electrical distribution, instrumentation and control, hot water, compressed air, chilled water, fuel, HVAC, plumbing and piping, water, and wastewater. • The manufacturing group—consisting of industrial, mechanical, chemical, instrumentation, and electrical engineers with heavy experience in the food, packaging, and related manufacturing operations—provided audit reports that were used as a basis for evaluation of present manufacturing operations. • The air emissions group developed process flow diagrams, identified and measured exhaust gas discharges, and compiled process, emission, and equipment design data. A site plan was developed showing the location of exhaust discharge points. Air quality applications were prepared for 15 process groupings, with detailed data being provided for 118 process sources and 136 discharge stacks.

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Appendix G: Pro-Active Value Engineered Solutions

Client

PAVES Savings

Project Process engineering, process piping design, process instrumentation, and electrical engineering for the renovation of an existing Hot Melt Adhesives Facility. $250,000 – Hot/cold oil system optimization-Capital expenditure was reduced by utilizing the existing Fulton Hot Oil Heater. $50,000 – Process / utility piping – Capital expenditure avoided, installation time reduced by four weeks utilizing 3D CAD.

National Starch and Chemical Company

$200,000 – Equipment arrangements-Capital costs were reduced $500,000 by revising the structural and piping systems layout. Engineering, procurement, and construction management services to alleviate the bottleneck in the Continuous Catalytic Regeneration (CCR) Section at Murphy Oil’s UOP Plat forming Unit. $2,000,000 – Optimized reduction zone gas system and eliminated liquid carryover of hydrocarbon from the recycle gas stream, eliminating the possibility of catalyst damage. $430,000 – Revisiting the heat recovery steam generator design eliminated an osmosis purification system and high pressure injection pumps. $440,000 – Combining finned-tube heat exchangers into one, common cooling system exchanger. $100,000 – Gas turbine generator specification and bid process streamlined and delivered best value. $45,000 – Elimination of a flash tank by redesign of the condensate return.

Murphy Oil U.S.A, Inc

$10,000 – Structural foundation load were reduced, eliminating $2,000,000 six pilings and associated concrete. Design a purified water system for its hair care and oral rinse products manufacturing and packaging facility.

Confidential Client (consumer products)

An alternate design utilizing chilled water storage in lieu of $5,000,000 additional chillers to meet peak demand. Greenfield Polycrystalline Silicon Plant engineering, procurement and construction management. $5,000,000 – Fast-track issue and design optimization of 30 construction packages in 18 months. $1,000,000 – Tax-abated procurement reduction.

Mitsubishi Polysilicon

$6,000,000 $1,000,000 – Engineering and procurement services for a major “World Class” nylon carpet yarn production facility.

BASF

$1,000,000 – Database design solutions enhanced engineering $1,000,000 productivity.

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Appendix G: Pro-Active Value Engineered Solutions

Client

PAVES Savings

Project Design assistance to improve compliance with Marathon Ashland internal guidelines.

Marathon Ashland Great Lakes Chemical Corporation

Design Innovation – Used an integrated design approach to $330,000 allow space pressurization with through-the-wall equipment. $6,000,000 – Extensive constructability reviews, subcontracting $6,000,000 strategy and engineering design optimization. Engineering, procurement, and construction management services for corporations’ $2 million nylon recovery pilot system.

Interface Research

$300,000 – Utilizing PAVES identified cost savings throughout the $300,000 project. Engineering, configuration, procurement, accounting and startup services for powder resin facility. $1,500,000 – Casting devices-A cycle time utilization study identified enough capacity in the existing system, eliminating the second device. $350,000 – Tank farm-Utilization survey identified the tank farm could be eliminated without production effects.

UCB Chemicals

$140,000 – TPA blowers-Utilization survey identified an additional $1,990,000 blower for uploading simultaneously was unnecessary. Engineering, procurement, and construction management for a liquid SO2 unit relocation. $13,300 – Savings negotiated on material for storage tank access platforms. $87,000 – Eliminated deep foundations from the project saved in construction costs. $27,600 – Performing a detailed review of process and vent system piping resulted in a reduction of required heat tracing.

PVS Chemical

$23,000 – Selected an alternate programmable logic controller $151,000 (PLC)-based process and emergency shutdown control system.

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Appendix H: PSA with Confidentiality Addendum

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Appendix H: PSA with Confidentiality Addendum

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Appendix H: PSA with Confidentiality Addendum

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Appendix H: PSA with Confidentiality Addendum

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Appendix H: PSA with Confidentiality Addendum

Michael D. Avant Sr. Vice President, M&LS 3/12/12

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Appendix H: PSA with Confidentiality Addendum

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Appendix H: PSA with Confidentiality Addendum

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Appendix H: PSA with Confidentiality Addendum

Michael D. Avant Senior Vice President, M&LS

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About CH2M HILL Headquartered near Denver, Colorado, USA, employee-owned CH2M HILL is a global leader in full-service consulting, design, design-build, operations, and program management for public and private clients. With US$6.4 billion in revenue and nearly 30,000 employees worldwide, CH2M HILL delivers innovative, practical, sustainable solutionsâ&#x20AC;&#x201D;helping clients develop and manage infrastructure and facilities that improve efficiency, safety, and quality of life. The firm has long been recognized as a most-admired company and leading employer. CH2M HILL is an industry-leading program management, construction management, and design firm as ranked by Engineering News-Record (2011).

www.ch2mhill.com

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