PROJECT: BACKROOM

1. PROJECT: BACKROOM FINANCE DEPARTMENT Sony Six Sigma Champion: Marcelo Freitas Black Belt: Joao Franco Green Belt: Mauro Perin and Andre Belleza

2. DEFINE PHASE Sony Six Sigma

3. Customer Diagram Date: 02/SEP/03 COSTS OPTIMIZATION AND CONTROL HOME OFFICE Company/Plant COLUMBIA TRISTAR Department/Title FINANCE & ADMINISTRATIVE DIRECTOR Name MARCELO FREITAS

4. Define Diagram 2. Commitment to Your Process 1. Customer and VOC Customer Department FINANCE DIRECTOR Name MARCELO FREITAS Date02/SEP/ 03 HOME OFFICE  Customer Requirements with Voice Commitment (in plain language understandable to the customer) FREIGHT COSTS REDUCTION BACKROOM COSTS REDUCTION  Basic Requirements without Voice REDUCTION IN 30% OF THE FREIGHT AND BACKROOM COSTS BY THE END OF THE FY04 (FEBRUARY/04) CASH FLOW IMPROVEMENTS COMPLIANCE WITH LEGAL REQUIREMENTS  Subconscious Expectation ELIMINATE AUDIT ISSUES VOC FREIGHT AND BACKROOM COSTS REDUCTION IN 30%

5. Commitment CE Diagram Department: Finance Director, Columbia Tristar Marcelo Freitas Date: 02/SEP/03 Name: Create Prints Destruction Policy Promote economy of scale Customer Home Office V O C TRANSPORTATION & STORAGE COSTS REDUCTION Achieve Freight single supplier. Destroy used Prints Optimize Backroom Cost Present Freight & Backroom cost until Sep/03 was R$ 1,8 million REDUCTION IN 30% OF THE FREIGHT AND BACKROOM COST. Improve Skills Train Personnel

6. CTQ Diagram - A FINANCE DIRECTOR, COLUMBIA TRISTAR Department: Name: Date: 02/SEP/03 M.FREITAS What To What Extent When to achieve Person In Charge Achieve Freight Single Supplier CTQ1 100% End of FY04 Franco CTQ2 Optimize Backroom Cost 30% End of FY04 Franco CTQ3 Destroy Used Prints 70% End of FY04 A. Sala CTQ4 Improve Skills 100% of Personnel End of FY04 A. Sala CTQ5 CTQ6 CTQ7 CTQ8

7. BACKROOM EXPENSE (R$ 000) *Data collected until August

8. BACKROOM LOCATION

9. PRINT UNITS DELIVERED (2002)

10. Tree Diagram Improvement Target: Reduce in 30% the Backroom cost in SP Optimize Backroom Cost Reduce 30% Backroom cost OTHER STATES

11. MEASURE PHASE Sony Six Sigma

12. Process Flow Diagram Start Labs duplicate Prints and send to the Backrooms Murundu informs Sales about the Prints. SDF informs Sales about the Prints. Sales instructs Backroom to send the Print to the Theatres Sales instructs Backroom to send the Print to the Theatres Transport Co.A Transport Co.B Transport Co.E Transport Co.D Transport Co.C Transport Co.F THEATRES

13. INVOICE BREAKDOWN Department: Finance Director, Columbia Tristar Marcelo Freitas Name: Date: 14 /OCT /03

14. INVOICE BREAKDOWN

15. Tree Diagram Metric Improvement Target Optimize Backroom Cost Reduce Storage cost of Films. Percentage of Storage Cost on the Invoice Reduce in 30% the Backroom cost in SP Reduce 30% Backroom cost Other Costs on the invoice OTHER STATES

16. Dept.: CH Name: Date: 14 /OCT/03 BB Name: CH Approval Date 02 /SEP/03 CH Signature Project Purchase Order Sheet (PPO) FINANCE MARCELO FREITAS FRANCO STEP-2/14 STEP-2/14 STEP-3/14 CTQ Project Name Improvement Metrics Percentage of Storage Cost on Invoice What to achieve BACKROOM Optimize Backroom Costs STEP-5/14 To what extent Current Values 24% of Total Invoice relates to Storage Cost. 30% When to achieve STEP-5/14 Target Values End of FY04 (February/04) Reduce from 24% to 17% the Storage Cost Marcelo Freitas STEP-5/14 STEP-5/14 STEP-5/14 PGS Schedule Project Members 02/09/03 GB Gains+Savings: Define Mauro Perin Andre Belleza R$ 300 K annual 14/10/03 Measure Investment: 14/11/03 Analyze -) 14/12/03 Improve 14/01/04 PGS Control

17. ANALYSE PHASE Sony Six Sigma

18. CE Diagram Department: Finance, Columbia Tristar Mauro Perin Date: 14/OCT/03 Name: