Best Practices –

Project Management

•Our Improvement Over Last Year was Outstanding!

• Revenue Increased by $ 65M.

• Op Inc Increased by $ 71M.

• EPS Increased by $ .79.

KEMET FY06 Financial Results

- Communicate to everyone, everywhere

- Write off $100MM non-performing assets

- Implement a business unit and regional sales structure w/support functions

- Implement a Sales Incentive System

- Selective cost reductions - selective headcount reduction - low cost locations - raw material suppliers - Volume + Price increases

What Changed That Resulted In Improvements?

1. What do you think is the primary reason that projects fail?

2. What primary lesson have you learned about project management?

Discussion Questions

Why Projects Fail?

1. Projects not done for the Right Reason. Where’s the Business Case? Projects which were someone’s pet, never wanted, needed or valued.

2. Projects where it was a CLM (Read Career Limiting Move) to point out any shortcomings to anyone. No Broad-based Support.

3. Failed on Fundamentals #1 Insufficient Planning #2 Inadequate Management #3 Poor Execution

4. Fail to have 3 Interrelated Components – Time, Resources (Read Money), People AKA. Fast, Cheap, Good – Pick any Two

5. Poor (or Missing) Statement of Work – What’s in? What’s out?

6. Little or No Organization

Project Staffing Plan

KEMETProject Manager

Steering Committee

InformationTechnology Team

PMO

FunctionalTeam

Application Manager/s

Custom Developers

Report Developers

Testing Team

Support Team – Network, Servers, etc.

Manufacturing, Lead

S & M Lead

F & A Lead

Functional Member

Functional Member

Consultants (Part Time)

Top Management TeamCEO, COO, CFO, Exec VP Marketing

Business Partner - B.U. Leader, G.M.Functional V.P., etc. and CIO / VP / Dir IT

Some Lessons Learned

1. People tend Not to remember the Cost (Within Reason)…If the Project is a Success

2. “Overwhelm The Enemy” – Find the Best People and Have Reserves

3. Strategy is Good….but Execution is Better

4. Communication – All levels; weekly status – bring visibility to each player’s performance

5. The Leader MUST Believe

6. Don’t Sweat the Small Stuff….but Give Scrupulous Attention to Detail

7. Plan the Escape Route

8. The Best IT Projects are Led by Non-IT People

9. Beware of “One of a Kind,” “Never Been Done Before” Projects – SarBox

10.Enjoy the Ride – Decompress & Stay Loose

Index

Pro

ject

ion

151413121110987654321

1000

800

600

400

200

0

Time Series Plot of Projection

One of A Kind Project

Index

Data

151413121110987654321

1000

800

600

400

200

0

VariableProjectionActual

Time Series Plot of Projection, Actual

One of A Kind Project

Index

Data

151413121110987654321

1000

800

600

400

200

0

Variable

Hrs Wrked

ProjectionActual

Time Series Plot of Projection, Actual, Hrs Wrked

One of A Kind Project

Week Begin. Projection Actual % Compl. Hrs Wrked Cum Ave Wrk Ave. Reg12/5/2004 62 62 6.30% 200.8 200.8 3.2387 3.2387

12/12/2004 62 62 6.30% 203 403.8 6.5129 5.5233712/19/2004 82 62 6.30% 113.5 517.3 8.3435 4.191612/26/2004 82 62 6.30% 145 662.3 10.6823 3.74546

1/2/2005 142 142 14.50% 250 912.3 6.4246 3.61761/9/2005 222 142 14.50% 279 1191.3 8.3894

1/16/2005 229 229 23.40% 289 1480.3 6.46421/23/2005 424 323 33.00% 303.75 1784.05 5.52341/30/2005 547 500 51.00% 311.75 2095.8 4.1916

2/6/2005 651 650 66.30% 338.75 2434.55 3.74552/13/2005 753 770 78.60% 351 2785.55 3.61762/20/2005 8552/27/2005 938

3/6/2005 9803/13/2005 980

One of A Kind Project

Project Planning

KEMET Electronics –

IT Infrastructure Project Plans

Multiple applications for project planning

•Word Processor

•Spreadsheet

•Specific application i.e.: Primavera

•Microsoft Project

Microsoft Project Detailed Project Plan

ID %Complete

Task Name

1 100% Plan Project Scope

2 100% 930 Signed

3 100% Requisition for SAN/ADIC/switches signed

4 100% Received PO numbers

5 100% Get updated quotes from Vendors

6 100% All quotes completed for servers

7 100% Requisition submitted for servers

8 100% Requisition for servers approved

9 100% Statement of Work/MSA submitted to Purchasing

10 100% SOW signed off on by Purchasing

Checklist pulled from project plan

Server Cutover Checklist

Server Name:___________ Tech Name :____________ Please check off every step as they are completed.

Log on Server as Epcos Admin or Local Admin Account of Server. Perform and verify that the network connections have been moved over. Change IP address Subnet Mask 255.255.0.0 Gateway 10.47.1.1 Change DNS settings

o Primary DNS 10.47.2.25 o Secondary DNS 10.1.2.129

Join KEMET domain o KEMET o Will require Kemet Admin Credentials

KEMET\Domain Admin _______________ o Do not reboot

Enable/Verify Remote Desktop Administration is enabled. o Right click My computer; properties; select remote tab; enable remote

desktop. Copy I386 if needed Reboot Server

o Server will come back up in the KEMET domain KEMET Admins - Put id’s in local administrators group as needed

o Add Evora Lan Admins to the administrator Group o Add KEMET\Netengadmins to the administrator Group

Run SUBINACL Run SET_SECURITY script Confirm the SET_SECURITY script has enabled Auditing. Install Admin Tools and Resource Kit (located on evora-sms01\evora installs Move server to correct server container in AD Install Antivirus

o (located on evora-sms01\evora installs o admin/symantec

Install NetIQ apps o This application will be installed remotely from KEMET HQ

Install PCAnywhere o (located on evora-sms01\evora installs o Install Host only

Condensed into a high level status of project (milestones, etc)

ID Task Name Duration Start

1 Production Pre-Cutover Tasks 5 hrs Thu 4/13/06 5:00 PM

2 Communication from Dan Lamorte --> Bryan Owens & Brian Burch == GO 0 days Fri 4/14/06 12:00 AM

3 Communication from Bryan Owens --> Udo Niehoegen == Begin Mail Forwarding0 days Fri 4/14/06 12:00 AM

4 Have SBS disable DHCP on EPCOS DC - svev0034 0.04 days Fri 4/14/06 12:00 AM

5 Communication from Udo Niehoegen --> Bryan Owens == Mail Forwarding Complete0 days Fri 4/14/06 12:27 AM

6 Communication from Bryan Owens --> Brian Burch == OK to Begin 0 days Fri 4/14/06 12:27 AM

7

8 Milestones 42.32 hrs Fri 4/14/06 12:27 AM

9 Network Down 0 hrs Fri 4/14/06 12:27 AM10 Network Up 0 hrs Fri 4/14/06 2:37 AM

100%

Thu Apr 13

Project Methodology once funded:

• Build strong project team

• Schedule regular project meetings

• Hold adhoc meetings as required

• Develop complete project plan

• Work the plan

• Track the costs

• Communicate!

• After project ends, do post-mortem to determine the success of the project

• Publish lessons learned to improve the process

Questions

Dan LaMorte Cathy Culbreth

CIO Network Engineer