Type of report

Type of report

Sample collection U.S. Subscribers (Millions) Broadband Growth 18 16 14 12 Cable 10 DSL 8 Fixed Wireless 6 Other 4 2 0 1999 2000 2001 2002 2003 2004 2005 Source: The Strategis Group Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-2 Adequacy Adequacyof of Credit Credit Spreads SpreadsQuestionable Questionable (US (US::against againstTB-10yr, TB-10yr,Korea Korea::against againstTB-3yr) TB-3yr) Current Average (2002.4.8) (1998.9.1 ~ 2002.4.8) bp bp US Korea 550 550 450 450 350 350 250 250 150 150 50 50 -50 AAA

A BBB BB B -50 US Korea AAA A BBB BB B Source : Korea The Korea Securities Dealers Association. US Bloomberg. Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-3 50 45 40 35 30 25 20 15 10 5 0 ( ) 60.00% 50.00% / $10.00 $9.00 $9.00 $8.00 49.60% 40.00% 30.00% , $6.50 $5.25 $7.00 $7.00 $5.25 27.80% 20.00% 5.00% 0.00%

1 Client Initial/0-0000/02/03/20 8.00% 7.00% 35.00% $5.00 $4.00 25.00% 0.80% $0.00 7.50% 40.00% 30.00% $2.00 $1.00 10.00% 37.60% $6.00 $3.00 16.80% 24.10% 23.60% 5.00% 4.00% 20.00% 15.00% 4.70% 6.00% 8.70% 6% 2.24% 3.00% 10.00% 2.00% 5.00% 1.00% 0.87% 0.17% 0.00% 0.00%

ADVANCED BUSINESS LINK 0000-4 Reward Campaign Reward program Campaign program Interactive Reward Discrete Communication Model Approach Asks ( , / ) Say thanks ( Rewards) Answers Campaign Program Continuous Communication Model Mass Approach Company Relationship Depth Campaign Reward Loyalty ( / ) Improves ( Rewards ) Actions & Enjoys ( / ) Recognition ( , ) Perceives & Reinforce (Reward / ) Communication Reach Reward Program Create Loyal Customer More active ( / / ) Customer Relationship Client Initial/0-0000/02/03/20

ADVANCED BUSINESS LINK 0000-5 Introduction Sub heading ~ ~ ABL Sample ( 2 ) ~ ~ 14 , dfdkjlfjaslfc Corporate Corporate dfdkjlfjaslfc dfdkjlfjaslfc Project Scope(14 ) (Unit: Billion Won) the thelayouts layoutscan canbe be bullet 1 ( ) bullet TV 1 2 3 1 Source: 1. ?? Client Initial/0-0000/02/03/20 4 5 6 2 7 8 9 10 3 11

12 13 14 15 4 Sunset box , 16 17 18 19 5 20 6 1 ADVANCED BUSINESS LINK 0000-6 Introduction Sub heading Table, Table Corporate dfdkjlfjaslfc Corporate Corporate dfdkjlfjaslfc dfdkjlfjaslfc Process dfdkjlfjaslfc 1 2 3 Re-Positioning Re-Marking Re-Focusing 4 2 4 1 2 3

4 TV TV TV TV Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-7 Table, Top Management ` Top Management ` D C B A A BCD Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-8 Client Initial/0-0000/02/03/20 bold ADVANCED BUSINESS LINK 0000-9 Major Activities February March

April May Jun wk 1 wk 2 wk 3 wk 4 wk 1 wk 2 wk 3 wk 4 wk 1 wk 2 wk 3 wk 4 wk 1 wk 2 wk 3 wk 4 wk 1 wk 2 wk 3 wk 4 Planning Training Needs Study SS Seminar Preparation Seminar 7 Module Classes Preparation Seoul Pohang Kwangyang Case Study Preparation Seoul Pohang Kwangyang Expert Training Preparation Class Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-10 Kick-off Benchmarking BestPractice Gap To-Be 0 1 2 3 Client Initial/0-0000/02/03/20

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 ADVANCED BUSINESS LINK 0000-11 + Current- Job model technical and nontechnical knowledge & skills requirements Determine its impa ct & approach to tra ckingffjldlfajdlaflasfl asjflasjdflasl the thelayouts layoutscan canbe be 6weeks 6weeks 6week s 6week s Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-12 3 3 5 4 4 FI 2 2 1

Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-13 SK Telecom PC CA TV ?? B A B Client Initial/0-0000/02/03/20 A ADVANCED BUSINESS LINK 0000-14 Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-15 1 10% 4 20% Korean Air 44% 4 20% 2 30% 2 30% 3 40% 3 40% Key CAG R= 100 90 80 70

60 50 40 30 20 10 0 Sea Air Rail Subway Ground R= CAG 91% 1 10% 91% Key Hamburgers 5 companies Pizza 8 companies Chicken 3 companies Ice Cream 5 companies 90 45.9 30.6 20.4 1 46.9 38.6 27.4 2 Client Initial/0-0000/02/03/20 45 34.6 43.9 31.6 20.4 3 4 0 50 100 150 200 250 ADVANCED BUSINESS LINK 0000-16 ~ 2,000 1,800 100 1,727 1,557 90 1,600 1,370 1,400

1,134 1,200 1,001 1,000 1,056 200 1,208 1,157 80 70 1,177 959 991 670 600 400 1,228 902 800 1,497 934 60 780 50 747 394 260 153 0 1999 40 30 20 2000 2001 2002 2003 2004 2005 10 0 1 800,000 4.35 4.33 4.36 4.14 4 4 20.4 31.6 43.9

3.5 510,664 500,000 4 4.5 596,544 600,000 3 4.05 684,515 700,000 2 3 453,276 3 90 34.6 45 2.5 411,934 400,000 2 300,000 27.4 38.6 46.9 1.5 200,000 100,000 2 94,758 104,667 117,258 144,148 169,079 1 0.5 0 1 20.4 0 30.6 45.9 50 100 150 200 0 '91

Client Initial/0-0000/02/03/20 '92 '93 '94 '95 ADVANCED BUSINESS LINK 0000-17 ~ 400,000 300,000 294,758 90 200,000 104,667 100,000 117,258 144,148 80 169,079 70 60 50 0 -100,000 '91 '92 '93 '94 '95 30 -111,934 -200,000 -253,276 20 -200,000 -210,664 -300,000 40 10 -296,544 0 1 -400,000 90 90 80 80

70 70 60 60 50 40 30 10 Client Initial/0-0000/02/03/20 3 4 30 10 2 4 40 20 1 3 50 20 0 2 0 1 2 3 4 ADVANCED BUSINESS LINK 0000-18 ( : ) /Churn-in On-line /Churn-in 6,849,269 6,451,500 427,337 6% 130,104 2% 2002 2005 Account Sales Lead Generation Client Initial/0-0000/02/03/20 a

Sales Execution Account Service Activation Oversee Complaint Monitor Manage& ment Feedback a Incentive Incentive a a ADVANCED BUSINESS LINK 0000-19 Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-20 Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-21 , Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-22 / Event Contact /FG M Suppliers Manufacturers Retailers Distributors Customers Product development Dem and planning en Order fulfillm t

n Integratio Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-23 (ABL Sample ) Internet SG Line Items Plants Build The ube aaaa aaaa aaaa m Co Scenarios aaaa aaa aaaa aaa aaaa um ns Co aaa A, B, C er Client Initial/0-0000/02/03/20 y og aaaa aaaa l no ch Te aaa Suppliers on it ti pe n io t la u g Re ADVANCED BUSINESS LINK 0000-24 aaa aaa aaa aaaaa

aaaaa aaa aaa aaa aaa aaa aaa aaa aaa sssss a aaaa aaa Client Initial/0-0000/02/03/20 aaa aaa aaa aaaaa sssss ADVANCED BUSINESS LINK 0000-25 aaa aaa aaa aaa a aaa a a aaa aaa a aaa aaa aaa

a Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-26 ddd rrr ddd rrr rrr aaa aaa ddd aaaa ddd aaa aaa aaaa aaa aaa Client Initial/0-0000/02/03/20 aaa ADVANCED BUSINESS LINK 0000-27 aaa aaaa aaa aaa aaa aaaa

aaaa aaaa aaa aaaa aaa aaa aaa Client Initial/0-0000/02/03/20 aaaa aaa aaa aaaa aaa aaa aaaa aaaa aaaa aaaa aaa aaa aaaa aaa aaa aaaa aaaaaa ADVANCED BUSINESS LINK 0000-28

aaaa aaaa a a a aaaa a a Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-29 aaa Phase II aa aa aa 3 aaa aa aa 6 aa aa aaa aa aaa Client Initial/0-0000/02/03/20 10 Phase III aa

aa aa Phase I aa aa aa aa aa aa aa aa 2 3 Phase I 1 Phase II Phase III ADVANCED BUSINESS LINK 0000-30

High High High High High High High High High High High High High High High High Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-31 1999 2000 rrrr 2001 rrrr rrr rrr rrr rrr rrrr rrrr aaaa aaaa aaaa aaaa aaaa aaaa aaaa aaaa 2002 ddd

ddd rrr rrr rrrr rrrr 2003 rrrr rrrr rrr rrr aaaa aaaa aaaa aaa aaaa aaaa aaaa aaaa aaa aaaa aaa aaaa a aaaa aaa aaa aaa aaa aaa aaa aaa aaa aaa aaa aaaa aaaa aaa aaa aaa aaa aaaa aaaa aa 1 Client Initial/0-0000/02/03/20 2 3 4

5 saaa 12 aaa aa aa ADVANCED BUSINESS LINK 0000-32 aa Client Initial/0-0000/02/03/20 aa ADVANCED BUSINESS LINK 0000-33 aa dddd a aaaa aaaaa aaaa aa ffff fffff aa a a a aa a a a a aa ... a aa

... aa a aaaa aaa aaaa aaa a a a a a a a a aa Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-34 aaa aaa aaa Client Initial/0-0000/02/03/20 sss aaa ADVANCED BUSINESS LINK 0000-35 rrrr rrrr rrrrr rrrrr rrrrr rrrrr rrrrr rrrrr rrrr

rrrr rrrr rrrr rrrr rrrr rrrrrr a a a a a a a Client Initial/0-0000/02/03/20 a a a a 1 a a a 2 3 4 5 12 ADVANCED BUSINESS LINK 0000-36 Collaborative TM Client Initial/0-0000/02/03/20 Operational Analytical ADVANCED BUSINESS LINK 0000-37 aa 1945

1935 aaa aaa rrrr 1975 1965 aaa aaa 1985 aa High 1995aa a a rrr rrrr a rrrr a rrrrr rrr rrr Client Initial/0-0000/02/03/20 rrr Low Low a High ADVANCED BUSINESS LINK 0000-38 1 aaaa 2 aaaa a a aa aa aaaaa aaaaa aa aaa aaa aa Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-39 Introduction

Sub heading Collar Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-40 Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-41 I T 1 / Customer centric a a a Network Network - Transfor -mation TM Life Cycle Enabler Enabler CRM SVC Offer Client Initial/0-0000/02/03/20 / Data Cleansin g a Platform Platform DW (OperationaAnalytical )

Front-end (OperationaOperationa l ) Terminal Terminal ADVANCED BUSINESS LINK 0000-42 As-Is To-Be Large Volume Coverage Model Small Low Frequency High Clients Inducement Strategy Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-43 Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-44 0 1 FY01 Performance 2. Recovering brokerage M/S with improved operating capacity Market share has increased behind the successful launch of the IfLG Trading System coupled wi th diverse marketing activities LGIS Market share trend Major Activities Proactive 11% 10% 9% Introduction of a new online HTS (ifLG Trading) and aggressive marketing Samsung Opening

of 19 new sub-branches LG No.2 8% sales by recruiting sales experts No.5 Increased international M/S using enhanced resources Introduction 7% 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 (end-May) Client Initial/0-0000/02/03/20 of performance-based compensation system to encourage top performance ADVANCED BUSINESS LINK 0000-45 0 1 FY01Performance 3. Growing Asset Management Business Increasing balance of BCs backed by emphasis on improving asset management business Balance of BCs* Major Activities (Unit:Wtn) 170 170 Market Establishment of performance-based compensation system to encourage 154 20.7 21.4 superior performance Samsung 19.2 10.3 8.0 6.1 6.6 7.6 7.3 Developing high quality products using fund performance evaluation system

Hyundai LG Increase ability to serve clients by training professional wealth advisors Mar 2001 Mar 2002 Jun 18, 2002 (Financial Planners) *BCs: Beneficiary Certificates Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-46 0 1 FY01 Performance 4. Maintaining No.1 position in Investment Banking (IB) Maximize income from investment banking by utilizing competitive edge in new business areas Major activities IB business breakdown New business W47.2bn W39.bn 3% 6% W43.8bn 7% 33% 23% finance businesses into new business M&A, Consulting, Public offering, Etc. areas 23% Shift from traditional corporate Establish new revenue sources such as privatization, restructuring, consulting, ABS and derivative related businesses 91% 60% 54% Underwriting (corporate bonds, Rights offering, IPO) Recruit approximately 30 experts in restructuring and OTC derivatives, and train existing employees in these areas FY `99 FY `00 FY `01 Employed the largest number of IB professionals: 104

Major deals in FY2001 : KT ADR, Hynix GDR Foreign ABS of LG Card, LGCI rights offerings, etc. Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-47 0 1 FY01 Performance 5. Eliminated potential losses by sufficient provisioning Eliminated potential losses by reserving a 61% provision for substandard assets at year-end Asset and provisioning ratio Asset Classification and Provision (Unit:Wbn) 4 50% 3.47 2.89 3 36.1% 38.6%1) 33.5% 2.33 2.01 2 16.2% 1 40% 30% 20% 9.1% 10% 0 0% Oct 99 Mar 00 Mar 01 Mar 2002 2) Total Credit ( a ) 2,330.8 2,009.1 Below Substandard ( b ) 1,418.3 1,098.1 841.8 673.7 Provisioning ratio (c/a) 36.1% 33.5% Provisioning ratio (c/b) 59.4% 61.4%

Provision ( c ) Mar 02 * Provision/Total credit 1) W167.3bn provisioning in FY 2001 when including write-offs Client Initial/0-0000/02/03/20 Mar 2001 2) Estimated loss of W167.3bn with 100% provisioning have been written off in FY 2001. ADVANCED BUSINESS LINK 0000-48 SCHEDULE Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-49 COSTS $70,000 $60,000 $50,000 Planned $40,000 Actual $30,000 OnBoard $20,000 $10,000 $0 Jan Client Initial/0-0000/02/03/20 Feb Mar Apr May Jun ADVANCED BUSINESS LINK 0000-50 SIZE 16000 14000 SLOC 12000 10000 Planned 8000 Actual 6000 Reused 4000 2000 0 Jan Client Initial/0-0000/02/03/20 Feb Mar Apr May Jun ADVANCED BUSINESS LINK 0000-51

PRODUCT QUALITY 45 40 35 STRs 30 Received 25 Closed 20 Open 15 10 5 0 Jan Client Initial/0-0000/02/03/20 Feb Mar Apr May Jun ADVANCED BUSINESS LINK 0000-52 COMPUTER RESOURCE UTILIZATION 100% 90% % Utilization 80% 70% 60% Planned 50% Current 40% 30% 20% 10% 0% CPU Client Initial/0-0000/02/03/20 MEM IO ADVANCED BUSINESS LINK 0000-53 REQUIREMENTS STABILITY 350 Requirements 300 250 Planned 200 Baselined Design 150 Implemented Test Built 100

50 0 Jan Client Initial/0-0000/02/03/20 Feb Mar Apr May Jun ADVANCED BUSINESS LINK 0000-54 STAFFING 30 Staff Size 25 20 Planned 15 Actual 10 5 0 Jan Client Initial/0-0000/02/03/20 Feb Mar Apr May Jun ADVANCED BUSINESS LINK 0000-55 X X Software Practitioners M. Smith B. Harris C. Allen T. Paulus O X X X X X Support QA Engineer Support SPI Agent X X X X X X X

X X X X X X O O O O X X X Legend: Client Initial/0-0000/02/03/20 X JAVA Training OperationalTrng X UML Training Project Orientation X D.O. Process Project Overview X Peer Reviews Division Process X QA Orientation SPIRIT/SME Project Lead G. King Category/ Name CM Orientation SPM Course Programmer Orientation STAFF TRAINING X X X X O O X X

X O X X O O O O N/A N/A N/A N/A O N/A O N/A Planned/Performed Planned/To Be Performed N/A Not Planned ADVANCED BUSINESS LINK 0000-56 PROGRAMMATIC COORDINATION Type CRWG ICWG SCCB WGs/Coord Risk Customer Project Teams Staff Client Initial/0-0000/02/03/20 Actuals/ Quarter Planned/ Quarter 1 0 1 3 2 4 1 1 2 1 4 2 4 2 ADVANCED BUSINESS LINK 0000-57 SOFTWARE QUALITY ASSURANCE Phase Related SQA Activities Status SYSTEM REQUIREMENTS ANALYSIS/DESIGN PHASE Peer Review the Software Development Plan (SDP) Peer Review the Software Project Plan (SPP) Peer Review the Software Quality Assurance Plan (SQAP) Peer Review the Software Configuration Management Plan (SCMP) Peer Review the Software Development Library CM (SDL CM) Procedure Audit Requirement Management Process Audit Software Project Planning Process Audit Software Product Engineering Process Audit Organization Process Focus Activities Audit Organization Process Definition Activities Audit Intergroup Coordination Process

Audit Peer Review Process Audit CM records to ensure SDP, SPP, SQAP, SCMP, SDL CM are under change control SOFTWARE REQUIREMENT ANALYSIS PHASE Peer Review the Software Requirements Specification (SRS) Peer Review the Interface Requirements Specification (IRS) Audit Software Product Engineering Process Audit Training Program Process Audit Integrated Software Management Process Audit Peer Review Process Audit CM records to ensure SRS, IRS are under change control Legend: Client Initial/0-0000/02/03/20 Planned/Performed Planned/To Be Performed N/A N/A Not Planned ADVANCED BUSINESS LINK 0000-58 SOFTWARE QUALITY ASSURANCE, Cont Phase Related SQA Activities Status DESIGN PHASE Peer Review Software Design Document (SDD) (Design Memos) Peer Review Software Test Plan (STP) Peer Review Software Test Description (STD) Audit Software Project Tracking and Oversight Process Audit Subcontractor Management Process Audit Software Product Engineering Process Audit Peer Review Process Audit selected Software Development Files (SDFs) for CSU integration and testing content Audit CM records to ensure SDD (Design Memos), STP, STD are placed under change control N/A CODING AND CSU TEST PHASE Peer Review Code Peer Review Unit Test Plan (UTP) Audit Software Product Engineering Process Audit Code Review Process Audit selected SDFs for CSU test procedures and test results Audit Software Development Library (SDL) to ensure successfully tested CSU is under configuration control. Audit CM records to ensure UTP is placed under change control Legend: Client Initial/0-0000/02/03/20 Planned/Performed Planned/To Be Performed N/A Not Planned ADVANCED BUSINESS LINK 0000-59 SOFTWARE QUALITY ASSURANCE, Cont Phase Related SQA Activities Status CSCI INTEGRATION AND TEST PHASE Audit the Test Readiness Review (TRR) Audit Configuration Management Process Audit Software Product Engineering Process Audit CM records to ensure that all source code updates entered into the developmental configuration are based on approved change requests SYSTEM QUALIFICATION TEST PHASE Monitor System Qualification Test (SQT) Perform Functional Configuration Audit (FCA) Perform Physical Configuration Audit (PCA) Peer Review Software Test Report (STR) Peer Review Version Description Document (VDD) Peer Review Software User Manual (SUM) Audit Software Product Engineering Process Audit CM records to ensure STR, VDD, SUM are placed under change control Legend:

Client Initial/0-0000/02/03/20 Planned/Performed Planned/To Be Performed N/A Not Planned ADVANCED BUSINESS LINK 0000-60 PRODUCT READINESS STRs (Fault Profile) 20 18 16 14 12 10 8 6 4 2 0 Client Initial/0-0000/02/03/20 Priority 1 Priority 2 Priority 3 Total ADVANCED BUSINESS LINK 0000-61 PRODUCT READINES (Breadth of Testing) 120% % Re quire me nts 100% 80% Tested 60% Passed Scheduled 40% 20% 0% Mar Client Initial/0-0000/02/03/20 Apr May Jun Jul Aug ADVANCED BUSINESS LINK 0000-62 COST/SCHEDULE PERFORMANCE 40 35 30 BCWP K$ 25 BCWS 20 ACWP 15

CV SV 10 5 0 Jan Client Initial/0-0000/02/03/20 Feb Mar Apr May Jun ADVANCED BUSINESS LINK 0000-63 CMMI Pilot Evaluation (2) How accurate was the assessment Much better Somewhat better 5 About the same 4 Somewhat worse 3 2 Much worse 1 Don't know 0 How well did the assessment find strong points 8 6 4 2 0 Client Initial/0-0000/02/03/20 Very well Reasonably well Not very well How well did the assessment find major problems? 8 6 4 2 Very well Generally well Not very well 0 ADVANCED BUSINESS LINK 0000-64 Change Request Figure 5-5 3/29/ Date _________________ Ext. 4942 Phone ________________ Y2K-Machine Dept. Project _________________ CEG Originator ________________ Impact Areas 1.3M

Deliverable # __________ 1.313M Work Package # __________ 1.31M Cost Account # __________ IS-M Dept. Organization Unit __________ Baseline Impact Scope Contingency Budget X Staff X Schedule X Equipment X Description of change Install Y2K compatible chip in six computer controlled milling machines Justification (include impact if not implemented) Reprogramming cost is higher than estimated, and risk of old chips failing is higher than estimated. (Eliminating reprogramming cost is -$10,000. Cost of Y2K chips installed is +$15,000) Disposition X Priority Approve Approve as amended Disapprove Deferred X Funding Source Emergency Mgmt. Reserve $ _____________ Urgent Budget. Reserve 5,000. $ _____________ Routine Other $ _____________ S.P Authorized _________________ 4/7/ Scheduled start _________________ 4/3/ Date ______________________ 5/10/ Scheduled finish ________________ Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-65 Software Work Breakdown Structure Product Hierarchy S Software system(SS)

SA SN Subsystem (SS A ) Subsystem (SS N ) SAA Subsystem (SSAA ) SAAA Subsystem (SS AAA) Client Initial/0-0000/02/03/20 SAM Subsystem (SSAM) SAAK Subsystem (SS AAK) S1-S6 Subsystem (SS) Activities SA1-SA6 Subsystem (SS A) activities SA1-SA6 Subsystem (SS AA )Activities ADVANCED BUSINESS LINK 0000-66 Software Project phases, activities & milestones Software development Programming Detailed Code & design Unit test Product specification Plans & Product Requirements design Project Start plan plan plan plan plan Feasibility SRR Organization & Planning PDR S/W Req. Spec. Product Design. Spec Integration test maintenance Acceptance End product acceptance Documentation Configuration management Quality assurance Management review COCOMO Model CDR

Detailed Design Spec. Code Programming Standards Unit test plan Integ. & test plan Update Acceptance test plan Completion Users Manuals Client Initial/0-0000/02/03/20 Update Unit Test Intg. & Test Acceptance test Completion Final Operation and Maintenance ADVANCED BUSINESS LINK 0000-67 CPM Example TE : 10 F: 5 TL : 15 C 10 TE : 16/21 F: 0 TL : 21 6 G TE : 10 1 TL : 10 F: 0 Start A D H 2 3 6 4 8 B F 11 TE : 6 TE : 17/18 F: 0 F: 0 TL : 6 TL : 18 4 I End 23/25 TE : 20 F: 0 TL : 20/22 Critical Path : ABDFHGI Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-68 COCOMO Estimate COCOMO estimate Planned schedule estimates PERT Chart Summary Task Planning Sheet J

F M Effort vs. component activities Project Work Authorization Work Description 1 2 3 WBS Personnel Plan Personnel Plan Activity J F M Mr. Kim Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-69 DFAS System Life Cycle System Acquisition DFAS System Life Cycle - System Acquisition Pre-Systems Acquisition Concept and Technology Development Technology Opportunities and User Needs Business Process Review and Improvement Mission Need Establishment Concept Exploration MNS Trade-off Studies ASDP1 PM Charter IPT Charters COTS Evaluation Report Acquisition Strategy Customer MOU Component Advanced Development Pgm Mgmt Plan Data Mgmt Plan TEMP APB (I) Clinger-Cohen Compliance Rpt2 APB (F) APB(U)

Clinger-Cohen Compliance Report JTA Profile C a p tu re a n d Id e n tify IOC A n a ly z e a n d D o cum e nt C a p tu re a n d Id e n tif y C h a n g e R eq u e st Performance Measurements D e s ig n P ro g ra m Infra. Svcs Request (I) Software Development Plan4 System Arch and Requirements Allocation Desc. Transition Plans Development IPT, or Purchase/Customize/Integrate Product(s) D e p lo y e d S y s te m Installation Plans Product Technical Review U p d a te d A c c r e d ita tio n M e m o T e c h n ic a l P r o je c t P la n n in g / M a n a g e m e n t D e v e lo p m e n t IP T S o ft w a re R e q ts A n a ly s i s Infrastructure Svcs Request (F) IP T R e v ie w U n it Test S W R q m ts D e s c .* Developmental Test and Evaluation S W A r c h D e s c .* Test Plans FOOTNOTES Deployment and Site Acceptance Test Operational Test and Evaluation 1 = Only for Programs with < $2M Total Ownership Cost 2 = Required only for MAIS Programs 3 = Performed by DFAS Resource Mgmt Office 4 = Not applicable to COTS Test Scripts (F)

Test Discrepancy Reports Test Reports Compliance Certifications FCA/PCA Checklists Ongoing Operational / Customer Assessment CM Plan QA Audit Reports QA Plan Site Acceptance Test Reports ORD APB TEMP Program Baseline SRS SARAD Functional Baseline SRR Milestone A Decision Rev. Presentation Presentation to CIO/BIE to CIO/BIE Council Council Milestone B Presentation to CIO/BIE Council SRD SIDD DBDD4 SDD4 Allocated Baseline Release Review IPR Presentation to CIO/BIE Council COTS Product Description Technical Documentation FCA Milestone C Presentation to CIO/BIE Council N ext C hang es B e g in F o r m a l T e s tin g S o ftw a r e D e s ig n S o ftw a re D e s ig n O p e r a tio n a l T est an d E v a lu a tio n S W In te r fa c e D e s ig n D e s c .* S W C o n fig u r a tio n In d e x R e c o r d D e v e lo p m e n ta l T e s t a n d E v a lu a tio n D B D e s ig n D e s c .*

U s e r s s M a n u a l* O p e r a to rs M a n u a l* T e s t S c r ip ts ( F ) T e s t S c r ip ts ( F ) U n it T e s t R e p o r t T e s t D is c r e p a n c y R e p o r ts T e st D is c r e p a n c y R e p o rts S W D e s ig n D e s c r ip t io n * T e s t P la n n in g M g m t R e v ie w T e s t P la n s T e c h n ic a l R e v ie w D e p lo y m e n t P la n n in g In s ta lla tio n P la n s T r a n s itio n P la n s In fr a s tr u c t u r e S v c s R e q u e s t (F ) T r a in in g P la n s S ite A c c e p ta n c e T e s t R e p o r ts T e s t R e p o rts C o m p lia n c e C e r t if ic a t io n s C o m p lia n c e C e r t if ic a tio n s A c t iv ity P ro d u c t D e p lo y m e n t a n d S it e A c c e p ta n c e T e st A u d it Product Baseline PCA S o ftw a r e R e q ts A n a ly s is SW Code S W Code T e s t R e p o rts L E G E N D O n g o in g O p e r a t io n a l / C u s to m e r A s s e s s m e n t (I) In itia l (U ) U p d a te (F ) F in a l Configuration Management / Quality Assurance SAD4 U n it Test S o ft w a r e

R e q ts A n a ly s is S o ft w a re D e s ig n T e s t S c r ip ts (I) * Test Planning IP T R e v ie w U n it Test S W A rch . D e s ig n SW C ode In fr a . R q m ts D e s c .* Audit (I) = Initial (U) = Update (F) = Final O p e r a tio n a n d P e rfo rm a n c e O v e r s ig h t S o f t w a r e D e v e l o p m e n t P la n * S y s te m M a n a g e r b r ie fs ta ilo re d s y s te m li fe c y c le a t R e q ts /S o l u tio n R e v ie w Training Plans Activity M e a s u re E f f e c t iv e n e s s I n f o r m a t i o n A s s u r a n c e / S e c u r it y S y s te m R q m ts S p e c if ic a tio n * S y s te m A r c h . a n d R q m t s A l lo c a t i o n D e s c .* In fr a . S v c s R e q u e s t* Changes to Deployed System P o s tIm p le m e n t a t io n R e v ie w F ie ld P la n n in g / M a n a g e m e n t S S A A * Deployment Planning Im p le m e n ta tio n R e a d in e s s R e v . A u d it R e p o r ts P e rfo rm a n c e M e a s u re m e n ts P T R R e le a s e P la n n in g SSAA V4 SW Process Improvement Plan4 System Development (Build or Purchase) O p e r a t io n a l

T R R V a lid a t e / A c c e p t C u s to m e r M O U * S y s te m M g m t P la n FOC SSAA V3 (incl. Accreditation Memo) Technical Project Planning / Management System Architecture Design D e v e lo p m e n t Im p a c t A n a ly s is Information Assurance/ Security SSAA V2 T e s t R e a d in e s s R e v ie w D e s ig n R e v ie w V a lid a te , A p p ro v e , a n d A llo c a te S y s te m C h a n g e R e q u e s t (S C R ) PTR SSAA V1 C4I Support Plan Mgmt Review Full Rate Production and Deployment Operation and Performance Oversight Continuity of Operations Plan Operational Requirements Definition System Rqmts Specification R e q u ire m e n ts / S o lu t io n R e v ie w Audit Reports Econ Analysis2/ LCCE System Requirements Analysis P r o d u c t io n a n d D e p lo y m e n t FRP Decision Review Low-Rate Initial Production System Demonstration System Integration Component Cost Analysis3

CARD2 ORD LEGEND MS C Interim Progress Review Program Planning / Management AoA BPA/BPR Report MS B Decision Review MS A D F A S S y s te m L ife C y c le - S y s te m M a in te n a n c e Production and Deployment System Development and Demonstration Per Site IRR FRP Presentation to CIO/BIE Council Operational Baseline PIR SLC 6.0 5/17/02 * = C h a n g e p ag es , a s a p p r o p r ia te F C A P C A S A D S C IR P ro d u c t B a s e lin e C o n fig u r a t io n M a n a g e m e n t / Q u a lit y A s s u r a n c e C h a n g e s t o a p p r o p r ia t e d o c u m e n ta tio n a r e r e q u ir e d a t e a c h r e v ie w t o k e e p b a s e lin e s c u r r e n t O R D A P B T E M P S R S S A R A D P r o g r a m & F u n c tio n a l B a s e lin e s S R D S A D S D D S ID D D B D D A llo c a te d B a s e lin e S D D S ID D D B D D F o r C o r p o r a t e - le v e l C h a n g e R e q u e s ts : R e v ie w a n d A p p r o v a l b y C I O / B IE C o u n c il F o r B u s i n e s s L in e - le v e l C h a n g e R e q u e s t s : R e v ie w a n d A p p r o v a l b y B u s i n e s s L in e M a n a g e m e n t B o a r d

F o r S y s t e m - le v e l C h a n g e R e q u e s t s : R e v ie w a n d A p p r o v a l b y S y s t e m C C B O p e r a tio n a l B a s e lin e P er S ite S L C 6 .0 5 /1 7 /0 2 System Maintenance SLC 6.0 5/17/02 Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-70 DFAS System Life Cycle - System Acquisition Pre-Systems Acquisition Concept and Technology Development Technology Opportunities and User Needs Business Process Mission Review and Need Improvement Establishment BPA/BPR Report MNS Trade-off Studies ASDP1 Concept Exploration Component Advanced Development PM Charter AoA IPT Charter s COTS Eval uation Rep ort Customer MOU Pgm Mgmt Plan Data Mgmt Plan TEMP Econ Analysis2/ LCCE Component Cost Analysis3 CARD2 APB (I) Clinger-Cohen Compliance Rpt2 Full Rate Production and Deployment Operation and Performance Oversight APB (F) Continuity of Operations Plan APB(U) Audit Reports Clinger-Cohen

Compliance Report Performance Measurements PTR IOC Operational Requirements Definition FOC Information Assurance/ Security ORD SSAA V1 System Requirements Analysis Mgmt Review Activity Product Low-Rate Initial Production System Demonstration System Integration FRP Decision Review Program Planning / Management Acquisition Strategy LEGEND MS C Interim Progress Review MS B Decision Review MS A Production and Deployment System Development and Demonstration System Architecture Design C4I Support Infra. Svcs Plan Request (I) System Rqmts S System Arch and pecification Requirements All ocation Desc. JTA Profile SSAA V3 (incl. Accreditation Memo) SSAA V2 SSAA V4 Technical Project Planning / Management Software Development Plan 4 SW Process Improvement Plan4

Deployment Planning System Development (Build or Purchase) Development IPT, or Purchase/Customize/Integrate Product(s) Changes to Deployed System Transition Plans Training Plans Installation Plans Infrastructure Svcs Request (F) Technical Review Audit Test Planning (I) = Initial (U) = Update (F) = Final Developmental Test and Evaluation Test Plans FOOTNOTES 1 = Only for Programs with < $2M Total Ownership Cost 2 = Required only for MAIS Programs 3 = Performed by DFAS Resource Mgmt Office 4 = Not applicable to COTS Deployment and Site Acceptance Test Operational Test and Evaluation Ongoing Operational / Customer Assessment CM Plan QA Audit Reports Configuration Management / Quality Assurance QA Plan ORD APB TEMP Program Baseline SRS SARAD Functional Baseline SRR Milestone A Decision Rev. Presentation Presentation to CIO/BIE to CIO/BIE Council Council Client Initial/0-0000/02/03/20 Milestone B Presentation to CIO/BIE Council SRD SAD4 SIDD DBDD4 SDD4 Allocated Baseline Release Review IPR

Presentation to CIO/BIE Council Test Scripts (F) Test Discrepancy Reports Test Reports Compliance Certifications FCA/PCA Checklists COTS Product Description Technical Documentation FCA Site Acceptance Test Reports Product Baseline PCA Per Site IRR Operational Baseline PIR Milestone C FRP Presentatio Presentation SLC 6.0 n to to CIO/BIE 5/17/02 CIO/BIE ADVANCED Council BUSINESS LINK 0000-71 Council DFAS System Life Cycle - Development Alternatives Develop OR Interim Progress Review MS B Purchase / Customize / Integrate Interim Progress Review MS B System Integration System Integration Development IPT Software Reqts Analysis Pgm Manager briefs tailored system life cycle at Milestone B Meeting Unit Test IPT Review Unit Test SW Arch. Design Software Design SW Rqmts Desc. Infra. Rqmts Desc. SW Arch Description

Functional Baseline Software Reqts Analysis Unit Test Purchase/Customize/Integrate Product(s) Software Reqts Analysis Software Design SW Interface Design Desc. DB Design Desc. SW Design Des c SW Configuration Index Record COTS Customization Plan Begin Formal Testing SW Code SW Code SW Code Test Scripts (I) IPT Review SW Rqmts Desc. Software Design SW Interface Design Desc. SW Arch. Desc.* DB Design Desc.* Users Manual Test Scripts (I)* Operators Manual Users Manual Operators Manual SW Design Description* SW Configuration Index Record COTS Customized Product Description * applies to modifications only Unit Test Report Applic. Release Checklist SRD SAD SIDD DBDD SDD Allocated Baseline Functional Baseline Release Review

Milestone B Presentation to CIO/BIE Council * IPR Presentation to CIO/BIE Council Milestone B Presentation to CIO/BIE Council SRD SIDD SAD3 Allocated DBDD3 Baseline SDD3 Release Review IPR Presentation to CIO/BIE Council LEGEND Mgmt Review Activity Product Technical Review SLC 6.0 5/17/02 Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-72 DFAS System Life Cycle - System Maintenance Production and Deployment Requirements / Solution Review Capture and Identify Analyze and Document Capture and Identify Change Request Test Readiness Review Design Review Validate, Approve, and Allocate Design Development Operational TRR Implementation Readiness Rev. PostImplementation Review Field Validate / Accept Operation and Performance Oversight Audit Reports

Performance Measurements PTR Program Planning / Management Impact Analysis System Mgmt Plan Measure Effectiveness Customer MOU* System Change Request (SCR) Information Assurance/ Security Updated Accreditation Memo SSAA* Release Planning Technical Project Planning / Management Software Development Plan* System Rqmts Speci fication* System Arch. and Rq Development IPT mts Allocation Desc.* Software Reqts Infra. Svcs Request* Analysis Unit Test Deployed System System Manager briefs tailored system life cycle at Reqts/Solution Review IPT Review IPT Review Unit Test SW Arch. Design Infra. Rqmts Desc.* Test Scripts (I)* SW Arch Desc.* Next Changes Begin Formal Testing Software Design Software Design Software Design SW Rqmts Desc.* Software Reqts Analysis SW Code SW Code SW

Code Unit Test Software Reqts Analysis SW Configuration Index Record Developmental Test and Evaluation Operational Test and Evaluation DB Design Desc.* Userss Manual* Operators Manual* Test Scripts (F) Test Scripts (F) Test Discrepancy Reports Test Discrepancy Reports SW Design Description* Unit Test Report Test Reports LEGEND Test Planning Mgmt Review Activity Product Technical Review Test Plans Deployment and Site Acceptance Test SW Interface Design Desc.* Test Reports Compliance Certifications Deployment Planning Installation Plans Transition Plans Infrastructure Svcs Request (F) Training Plans Site Acceptance Test Reports Compliance Certifications Audit Ongoing Operational / Customer Assessment (I) Initial (U) Update (F) Final * = Change pages, as appropriate

FCA PCA Configuration Management / Quality Assurance Changes to appropriate documentation are required at each review to keep baselines current ORD SRS APB SARAD TEMP Program & Functional Baselines SRD SIDD SAD DBDD SDD Allocated Baseline SDD SAD SIDD SCIR DBDD Product Baseline For Corporate-level Change Requests: Review and Approval by CIO/BIE Council For Business Line-level Change Requests: Review and Approval by Business Line Management Board For System-level Change Requests: Review and Approval by System CCB Client Initial/0-0000/02/03/20 Operational Per Baseline Site SLC 6.0 5/17/02 ADVANCED BUSINESS LINK 0000-73 The majority of banks in the EU is expected to apply the IRB Approach What approach will be chosen by your bank? (Result of a recent survey* at German banks) Still unclear 83.3 Standarised approach Percentage I. 39.1 30.4 38.5 23.1 21.7 8.7 Public banks 1) public banks 1) IRB-Foundation approach Savings- and Landesbanks 15.4 23.1 Small banks 2) small private private banks

2) Balance sheet < 50 billion IRB-Advanced approach 16.7 private bigBig private banksbanks 3) 3) Balance sheet > 50 billion * Source: Deutsche Banken auf dem Weg zu Basel II, Boston Consulting Group/Universitt Witten/Herdecke, December 2002 Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-74 Understanding of Competitors Size, Growth & Profitability Cost Structure Strengths & Weaknesses Client Initial/0-0000/02/03/20 Image & Positioning Competitor Actions Exit Barriers Objectives & Commitment Current & Past Strategies Organization & Culture ADVANCED BUSINESS LINK 0000-75 Five Force Model of Competition by Michael E. Porter Substitutes Suppliers Internal Rivalry Buyers Potential Entry Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-76 SWOT Analysis Strengths cost advantages financial resources modern production facilities customer royalty patents Weaknesses narrow product line poor management high operating cost poor financials weak market image

Client Initial/0-0000/02/03/20 leverage ts n i ra Opportunities enter new market add to product line acquire new technology st n o vu l ner c abi lity problems Threats changing buyer tastes likely entry of new competitors adverse government policies ADVANCED BUSINESS LINK 0000-77 Problem Children Cash cows Dogs High Stars Low Market Growth Rate Growth-Share Matrix 10 1 0.1 Competitive Position (Ratios of Shares to Shares of Largest Competitors) Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-78 Market Attractiveness-Business Position Matrix Business Position: Its Ability to Compete Market Attractiveness Client Initial/0-0000/02/03/20 High Mediu m Low High 1 1 2 Mediu m Low 1 2

3 2 3 3 1: Invest/Grow 2:Selective Investment 3: Harvest/Divest ADVANCED BUSINESS LINK 0000-79 Risk Matrix Market Attractiveness 1 1 2 Mediu m Low 1 2 3 2 3 3 isk lR um nm en ta ed i M ir o En v 1: Invest/Grow 2:Selective Investment 3: Harvest/Divest Client Initial/0-0000/02/03/20 Low H ig h High Medium Lo w Business Position: Its Ability to Compete 3 High ADVANCED BUSINESS LINK 0000-80 3-Dimensional Approach Transaction : Start of 3-Dimensional Approach

Example One Transaction Risk Side Process/Product Side SBU/Customer Side Client Initial/0-0000/02/03/20 Equity Trading Transaction Equity Price Risk Position Allowed per Trader Trading Process VaR Limit Trading Position Limit per Trader Stop-Loss Limit on Trading ADVANCED BUSINESS LINK 0000-81 3-Dimensional Approach Aggregation of Transaction Bank-wide Business Strategic Business Area One Transaction Banks Risk Universe Process/Product Total Risk Appetite Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-82 Limit Structure Check-List 1. Generated from banks unique Risk Universe 3. Limit type should not stick to simple volume. Most of limit type is relating to Risk Measure. Capital Allocation Risk & Source Risk Market Risk Equity Capital Risk Allocation Weight Source Limit Type Limit Terms Allocation Level Time Term Limit Basis SBU Team Trading Volume, VaR

Investment Volume, VaR Book Intra Over Month Trader Day Night Stop Loss Limit Monitoring Concen Qualifi Counter Real tration cation Party Time Day Week Month 2. Whole range of capital allocation should be within Risk Capital 4. Limit terms are related to Risk Attribution. 5. Limit monitoring should be set based on Risk Attribution & Risk Prioritization. Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-83 Limit Structure (Example) Capital at Risk Limits Credit Limits Country Limits Credit at Risk Limits Industry/ Group Limits Total Expos. Limits Counterparty Limits Market Limits VAR Limits Product / Position Limits Settlement Limits

Open Position Limits Liquidity Limits Stop-Loss Limits Client Initial/0-0000/02/03/20 Loan Equivalent Exposure Equity Guarantees & Other Contingencies FX & Derivatives FirmFirmwide wide Individual Risk Index Risk Intraday GAP Structural Interest Rate Risk DUR. GAP NII at Risk Trading Duration O/N Term FX PVBP Local CCY Options Delta Benchmark Bond Position CCY1 CCY2 Gamma Time Bucket Liquidity Ratio Limit Liquid Asset Holding Requirement Product Liquidity Limits Investments Time Gap Limits Liquidity GAP Limits Liquidity Position Limits Loans

Liquidity Limit for Investment & Trading Group/ Group/ Fund Fund Level Level Dept. Dept. Level Level Desk Desk Level Level Trader Trader Level Level : : Vega Liquidity Guideline for Underwriting ADVANCED BUSINESS LINK 0000-84 Strategic Usage of Limit Cube Business Policy & Strategy Marketing & Customer Management Customers Markets RAROC/ SVA Customer Information Transaction Product Development Pricing Market/Portfolio Strategy Products Market/Product Information Transaction Transaction Groups Transaction Integrated Measure Biz. Units Performance Trader Evaluation & Remuneration Performance Measurement Information Client Initial/0-0000/02/03/20 Risk Factors Portfolio Effect Capital Allocation Limit Management Risk Control Internal Control Information ADVANCED BUSINESS LINK 0000-85 Limit Usage Management

Practically SBUs position limit is allocated more than Bank-wide Risk Limit. It accelerate limit bidding & resource acquiring process. Real resource allocation is dependent on business prioritization. Sometimes business unit can not use full allocated limit, because of bank-wide limit is already used by other business unit. However, if required, RMC can enlarge initial Bankwide Risk Li mit. Bankwide Risk Appetite Bankwide Risk Limit << 300 Limit Buffer 100 Allocated Limit Total Allocated Limit = 300 Actual Total Limit Usage < 300 Limit Usage Business Unit A Client Initial/0-0000/02/03/20 Business Unit B Business Unit C ADVANCED BUSINESS LINK 0000-86 200 (Operationa ) 160 120 80 40 0 98.1 Client Initial/0-0000/02/03/20 4 7 10 99.1 4 7 10 2000 ADVANCED BUSINESS LINK 0000-87 (%) 0 15 / (1) EVENT TFT (1) 30

(2) 50 (3) 70 (4) (2) ERD , 80 85 92 100 (7) (5) (6) Application (3) Message Function Report (4) (7) (5) (6)

Client Initial/0-0000/02/03/20 Tool ADVANCED BUSINESS LINK 0000-88 CEO Core Business e-Transformation Vision World Class Company Business Model e-Transformation Shared Value KM Elite Group CIO/ COO / CFO... Operational Strategy IT Staff e-Transformation Client Initial/0-0000/02/03/20 IT IT IT IT Vision Digital Era enabler ADVANCED BUSINESS LINK 0000-89 All CVEs : 1/1999-6/2001 140 50 126 Unix Products 120 Windows Products 100

30 80 30 25 60 40 Linux Only Microsoft Only 40 35 85 45 45 51 36 20 15 28 20 16 15 14 10 8 6 5 0 0 1999 2000 2001 Windows Unix Client Initial/0-0000/02/03/20 1999 2000 2001 Linux ADVANCED BUSINESS LINK 0000-90 Benefits of Microsofts Responsible Disclosure method 2002 2 , Linux 2 . 80 69 70 61 60 50 40 30 30 20 23 23

Debian SuSe 14 10 0 Microsoft FreeBSD Mandrake Red Hat Client Initial/0-0000/02/03/20 ADVANCED BUSINESS LINK 0000-91 F-Finance/Securities U-Utlilty & Ene rgy T-Travel & Trans. E-Higher Educ. O-Pe troleum B-Computer Re lated M -M anufacturing G-St/Local Gov't 0 0 0 Contracted Client Initial/0-0000/02/03/20 0 Internal Reciprocal 0 0 0 Do Nothing ADVANCED BUSINESS LINK 0000-92 Client Initial/0-0000/02/03/20 1 Employee 2 Contrac t Employee 3 Applic ant 4 HR Compens ation Regs . P lans . etc. 5 HR Benefits Regs & P lans 6 HR Staffi ng Requirements & P lans 7 J ob Requis ition 8 Stoc kholder 9 Boardmember 10 Mis c Contac is /V IP s 11 Financial P lans 12 Ac c ounting Regs . P rac tices 13 Ledger Ac counts 14 Cus tomer P urc has e Orders /Invoic e 15 Cus tomer P ayments 16 Other Income 17 Company P urc has e Orders 18 Company Bills 19 Company Checks /P ayments 20 Stoc ks & Bonds 21 Loans 22 Bond Acc ounts 23 P roduc t P lans 24 P roduc tion P roc edures 25 P rinciples of Terminology Raw Materials 27 Utilities 28 Supplies

29 P roduc ts 30 By P roduc ts 31 Bill of Maternais 32 Work in P rogres s 33 Fac ility P lans 34 Fac ility P rocedures 35 Fac ility Standards 36 Land 37 Sites 38 Buildings 39 V ehic les 40 Equipment 41 Tools 42 Furniture & Fixtures 43 Bus ines s P lans P ropos als 44 Organizational Units 45 Committees 46 V endor 47 V endor Contracts 48 Cus tomer 49 Cus tomer Contrac ts 50 Market P rofiles 51 Competitors 52 Unions 53 Governments * * * * Enhance Corporate Image LocaieVenture Capital Improve Cashflow Management Reduce Receivables to 45 Days Reduce Inventory Invesiments Upgrade Product Warranty Expand Product Line Improve Product Quality Enhance Customer Support Enhance Employee Training Streamline Shop Floor Operations Improve Information Systems Explon New Technology Address Absenteeism Problem Add Distribution Channels Improve Market Penetration Identify New Target Markets Improve Sales Effectiveness ENTITY GOAL 5.7 * * * * * * * * *

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* * * * * * * * * * * * * * * * * * * * * * * * * ADVANCED BUSINESS LINK 0000-93 6. Business Area Identification : DATA S UBJ EC T 1 Em pl oyees 1 2 R R 3 2 HR pl ans, pr ocedur es, r egs 3 Ot her peopl e of i nt er est CRUD RU CRUD i ncom e R CRUD R 6 Fi nanci al out flow R CRUD R 7 Fi nanci al i nvest m ent s R CRUD CRUD

R RU CRUD R R R 15 Vendor s R R R 17 Ot her or gani xat i ons of i nt er est R R 18 I nf o, pl ans, pr ocedur es, r egs R 11 Manage Information Manage Vendors Manage Business Market Product Plan Product Produce Product Process Customer Orders 10 12 R 14 15 16 R R R R R R R R CRUD R R R CRUD R CRUD RU R R

R R R RU CRUD R CRUD RU R R RU R R R R R R R RU CRUD R R R R R RU R CRUD R R R R CRUD R CRUD 13 R R R 16 Cust om er s 9 R R R 8 R R 13 Equi pm ent 7

CRUD R R Procure Materials Research/Develope Project CRUD R 12 Com pany l ocat i ons 14 Or g, pl ans, pr ocedur es, r egs R R 10 Fi ni shed pr oduct s 11 Faci l i t y pl ans, pr ocedur es, r egs 6 R pl ans, pr ocedur es, r egs 9 Pr oduct m at er i al s 5 RU CRUD 5 Fi nanci al 8 Pr oduct pl ans, pr ocedur es, r egs 4 CRUD CRUD 4 Fi nanci al Plan Production Staff Organizations FUNCTION C:Create R:Read U:Update D:Delete Plan Finances Key: Control Finances Perform Accounting 6.1 / MATRIX Administer HR Programs Develop Individual Capabilities R R R R R CRUD R CRUD

R CRUD R R CURD 19 I nf or m at i on m odel s CURD 20 I nf or m at i on i m pl em ent at i on CRUD 21 I nf or m at i on oper at i ons Client Initial/0-0000/02/03/20 CRUD ADVANCED BUSINESS LINK 0000-94 9.3 E : Exclusive ( ) : P : Primary Resposibility ( ) : S : Secondary Resposibility ( ) : Read Client Initial/0-0000/02/03/20 S S S S S P P S P S P S S P R E S S P S S E E S P S S P S Costs S Payments

Fin.goods inventory S Orders Sales territory Customer Shop floor routings Facilities Work in progress Machine load Materials inventory Procurements Vendor Open requirements Bill of materials Parts master P S Sales E Salaries S S P S S Employee S P Product design P S Product P S Financial Budget BUSINESS AREA Planning Product design Acquisition Manufacturing Sales Order servicing Accounting Personnel Planning DATA SUBJECT E P S S E S S P S

E P ADVANCED BUSINESS LINK 0000-95 6.2 MATRIX R C R R C C C R R R C R R C R R R C R C C R C R C R R R R R C R R R Client Initial/0-0000/02/03/20 R R R R C R R C C R R R R R C R C R R R R

R C R R R R R R R R C C R C R R R R R R R R R R R R R R R C R R C R R Cost Payments R Orders R Facilities R Machine Load R Procurements R Vendor R Parts Master R Fin Goods Inventory Shop Floor Routines Work in Progress Materials Inventor Open Requirements Bill of Materials

Product Design R Product Financial Budget Planning Bill of Materials Parts Master Product Design C R Sales Territory C C R R R R C C R Product Shop Floor Routings Open Requirements Machine Load Work in Progress R R R R C C R Salaries R R FUNCTI ON Mar ket Anal ysi s Pr oduct Range Revi ew Sal es For ecast i ng Fi nanci al Pl anni ng Capi t al Acqui si t i on Funds Management Pr oduct Desi gn Pr oduct Pr i ci ng Pr oduct Spec. Mai nt Mat er i al s Requi r ement s Pur chasi ng Recei vi ng I nvent or y Cont r ol Qual i t y Cont r ol Capaci t y Pl anni ng Pl ant Schedul i ng Wor kflow Layout Mat er i al s Cont r ol Si zi ng and Cut t i ng Machi ne Oper at i ons Ter r i t or y Management Sel l i ng Sal es Admi ni st r at i on Cust omer Rel at i ons Fi ni shed St ock Cont r ol Or der Ser vi ci ng Packi ng Shi ppi ng Cr edi t or s & Debt or s Cash Fl ow Payr ol l

Cost Account i ng Budget Pl anni ng Pr ofit abi l i t y Anal ysi s Per sonnel Pl anni ng Recr ui t i ng Compensat i on Pol i cy Employee R C R Facilities R R Sales C R R R R R C C R Customer R Salaries R R Employee R Planning R Payments Sales Territory R Sales Costs Orders Fin. Goods Inventory DATA SUBJECT Materials Inventory Procurements Vendor Finanical Budget FUNCTI ON Mar ket Anal ysi s Pr oduct Range Revi ew Sal es For ecast i ng Fi nanci al Pl anni ng Capi t al Acqui si t i on Funds Management Pr oduct Desi gn Pr oduct Pr i ci ng Pr oduct Spec. Mai nt Mat er i al s Requi r ement s Pur chasi ng Recei vi ng I nvent or y Cont r ol Qual i t y Cont r ol

Capaci t y Pl anni ng Pl ant Schedul i ng Wor kflow Layout Mat er i al s Cont r ol Si zi ng and Cut t i ng Machi ne Operat i ons Ter r i t or y Management Sel l i ng Sal es Admi ni st r at i on Cust omer Rel at i ons Fi ni shed St ock Cont rol Or der Ser vi ci ng Packi ng Shi ppi ng Cr edi t or s & Debt or s Cash Fl ow Payr ol l Cost Account i ng Budget Pl anni ng Pr ofit abi l i t y Anal ysi s Per sonnel Pl anni ng Recr ui t i ng Compensat i on Pol i cy Customer DATA SUBJECT R R R C R R C R R R C R R R R C R R C C R R R R R C C R C R R R C R C R C R C R R C R C R R

R R R R R R C R R C R R C R R C R R R C C C C R R R R R R R R R R C C R R R R R R R R R R R R R C R R R R R R C R R R R

R C C R C R R ADVANCED BUSINESS LINK 0000-96 R R R R C R R C C R R R R R C C R C R R R C R C R C R C R R C R C R R R R R R R R C R R C R R C R R C R R R C C

C C R R R R R R R R R C C R R R C R R R R R R C R R R R R R Client Initial/0-0000/02/03/20 R R R R R R R R R R C C R R R R C R R C R R C R R R R C C Product

Desi gn C C R R C R R R R R R C R R R Aqui si t i on C R R C R C C R R C R C R R R R R C Manuf act uri ng C C C C Sal es R R R R R R R R R R C Order Ser vi ci ng R R Account i ng C R R R R R R R R R C R C R R R

R R R R R R Per sonnel R Salaries R Employee R Cost R Payments R Orders R Fin Goods Inventory Shop Floor Routines Facilities W ork in Progress Machine Load Materials Inventor Procurements R R R R R R R Vendor Open Requirements Bill of Materials Parts Master Product Design Product Financial Budget R Pl anni ng C R R R C R R C R C R R R R Sales Territory R

R R C C R Sales C R R R Market Anal ysi s Product Range Revi ew Sal es Forecast i ng Fi nanci al Pl anni ng Capi t al Acqui si t i on Funds Management Product Desi gn Product Pri ci ng Product Spec. Mai nt Mat eri al s Requi r ement s Purchasi ng Recei vi ng I nvent or y Cont rol Qual i t y Cont rol Capaci t y Pl anni ng Pl ant Schedul i ng Workflow Layout Mat eri al s Cont rol Si zi ng and Cut t i ng Machi ne Oper at i ons Terr i t or y Management Sel l i ng Sal es Admi ni st rat i on Cust omer Rel at i ons Fi ni shed St ock Cont r ol Order Servi ci ng Packi ng Shi ppi ng Credi t or s & Debt ors Cash Fl ow Payr ol l Cost Account i ng Budget Pl anni ng Profit abi l i t y Anal ysi s Personnel Pl anni ng Recr ui t i ng Compensat i on Pol i cy Customer R FUNCTI ON Planning Salaries Employee Cost R Payments R Orders R Fin Goods Inventory Sales Territory Shop Floor Routines Facilities W orkin Progress Machine Load Materials Inventor

Procurements Vendor Open Requirements Bill of Materials Parts Master Product Design Product R Sales R R C C R DATA SUBJECT Customer Market Anal ysi s Pr oduct Range Revi ew Sal es For ecasti ng Fi nanci al Pl anni ng Capi t al Acqui si t i on Funds Management Pr oduct Desi gn Pr oduct Pri ci ng Pr oduct Spec. Mai nt Mat eri al s Requi rements Purchasi ng Recei vi ng I nvent ory Contr ol Qual i t y Cont rol Capaci ty Pl anni ng Pl ant Schedul i ng Workflow Layout Mat eri al s Contr ol Si zi ng and Cutt i ng Machi ne Oper ati ons Terr i t ory Management Sel l i ng Sal es Admi ni str at i on Cust omer Rel ati ons Fi ni shed St ock Cont rol Or der Ser vi ci ng Packi ng Shi ppi ng Cr edi t ors & Debt ors Cash Fl ow Payr ol l Cost Account i ng Budget Pl anni ng Pr ofit abi l i t y Anal ysi s Personnel Pl anni ng Recr ui ti ng Compensat i on Pol i cy Financial FUNCTI ON Budget Planning DATA SUBJECT R R C C R R R R C R R

C R R C R R ADVANCED BUSINESS LINK 0000-97 R R R C C Product Desi gn C C R R C R R R R R C R R R Aqui si t i on C R R C R C C R R C R C R R R R R C Manuf act ur i ng C C Sal es R R R R R R C R R R R R R C R R R R R R R C

R R R R R R Or der Servi ci ng R R Account i ng R R R Per sonnel R Client Initial/0-0000/02/03/20 R R C C R R R R C R R C R R C R R Market Anal ysi s Pr oduct Range Revi ew Sal es Forecast i ng Fi nanci al Pl anni ng Capi t al Acqui si t i on Funds Management Pr oduct Desi gn Pr oduct Pr i ci ng Pr oduct Spec. Mai nt Mat eri al s Requi rement s Purchasi ng Recei vi ng I nvent ory Cont rol Qual i t y Cont r ol Capaci t y Pl anni ng Pl ant Schedul i ng Workflow Layout Mat eri al s Cont rol Si zi ng and Cut t i ng Machi ne Operat i ons Terri t ory Management Sel l i ng Sal es Admi ni st rat i on Cust omer Rel at i ons Fi ni shed St ock Cont rol Or der Servi ci ng Packi ng Shi ppi ng Cr edi t ors & Debt or s Cash Fl ow Payrol l Cost Account i ng Budget Pl anni ng Pr ofit abi l i t y Anal ysi s Personnel Pl anni ng Recrui t i ng Compensat i on Pol i cy Salaries Employee Cost

Payments Orders Fin Goods Inventory Sales Territory Sales Customer Shop Floor Routines Facilities Work in Progress Machine Load Materials Inventor Procurements Vendor Open Requirements Bill of Materials Parts Master Product Design Product Financial FUNCTI ON Budget Salaries Employee Cost R C C R R C R Payments R Orders R Fin Goods Inventory Sales Territory Shop Floor Routines Facilities W ork in Progress Machine Load Materials Inventor Procurements R R R

R R R R Vendor Open Requirements Bill of Materials Parts Master Product Design Product Financial R Pl anni ng C R R R C R R C R C R R R R Sales R R C C R Customer Mar ket Anal ysi s Product Range Revi ew Sal es Forecast i ng Fi nanci al Pl anni ng Capi t al Acqui si t i on Funds Management Product Desi gn Product Pri ci ng Product Spec. Mai nt Mat eri al s Requi rement s Pur chasi ng Recei vi ng I nvent or y Cont rol Qual i t y Cont r ol Capaci t y Pl anni ng Pl ant Schedul i ng Wor kflow Layout Mat eri al s Cont rol Si zi ng and Cut t i ng Machi ne Operat i ons Ter r i t or y Management Sel l i ng Sal es Admi ni st rat i on Cust omer Rel at i ons Fi ni shed St ock Cont rol Order Servi ci ng Packi ng Shi ppi ng Credi t or s & Debt or s Cash Fl ow Payr ol l Cost Account i ng Budget Pl anni ng Profit abi l i t y Anal ysi s Per sonnel Pl anni ng Recr ui t i ng Compensat i on Pol i cy Budget Planning FUNCTI ON Planning DATA SUBJECT

DATA SUBJECT Pl anni ng Product Desi gn Aqui si t i on Manuf act ur i ng Sal es Order Servi ci ng Account i ng Personnel ADVANCED BUSINESS LINK 0000-98 Work Structure - Resources House of Quality + Customer Requirements Client Initial/0-0000/02/03/20 Speed (how wait time) 25 Quiet 10 Crisp and accurate sound - -+ ++ 12 - Compact 10 Reliable 34 + - -- - Competitive Data on Customer Perceptions of Current Products 1 2 3 4 5 Poor Excellent 0 9 Low cost Manufacturing precision - Tooth thickness - Lubricant

# teeth per gear Design Parameters Importance (%) - - - + 0 - + 0 + ++ New West Competitor 1 Competitor 2 ADVANCED BUSINESS LINK 0000-99 Projection of Funding Level for 10 Simulations 350% 300% 250% 200% Funding Level (%) 150% 100% 0 1 2 3 4 5 Year of Projection 6 7 8 9 10 Probability of large contributions at least once in the next ten years 70 Probability (%) 49 50 40 30 20 44 40 37 30 29 20 22 13

5 10 0 Funding levels in 10 years 150 Funding level (%) 56 60 175 59 125 100 75 122 134 104 89 109 70 67 91 50 157 upper quartile 114 117 median 90 88 147 62 56 lower quartile 5th percentile 25 A B Co. Conts > 10m Client Initial/0-0000/02/03/20 C Co. Conts > 15m D A B C D Co. Conts > 20m ADVANCED BUSINESS LINK 0000-100

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