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True North at Zimmer History of Zimmer US Orthopaedic Multinational founded in 1927: Justin O. Zimmer 1972: Acquired by


  1. True North at Zimmer �����������������������������������

  2. History of Zimmer � US Orthopaedic Multinational founded in 1927: Justin O. Zimmer � 1972: Acquired by Bristol-Myers Squibb � 2001:Spin-off Zimmer from BMS and NYSE Justin O. Zimmer (ZMH) (ZMH) 1884 - 1951 1884 - 1951 � 2003 Acquisition of Centerpulse/Sulzer Orthopedics by Zimmer � 2008 Announce Operations Expansion to Shannon, Ireland �����������������������������������

  3. Zimmer Today � In the top 5 Orthopaedic Companies Globally � Headquarters – Warsaw, Indiana, USA � Global Sales ~$4.45 Billion � >7,000 employees � 13 manufacturing locations globally � Celebrated 10 years on NYSE in 2011 � Celebrated 10 years on NYSE in 2011 �����������������������������������

  4. $30 Billion Market Opportunity Dental Extremities $3.3 Billion Global Market (5)% Market Growth, full year 2009 6% ZMH Market Share $1.0 Billion Global Market #5 Market Growth, full year 2009 15% Market Growth, full year 2009 13% ZMH Market Share Spine #3 Market Position, full year 2009 Hips $8.7 Billion Global Market 10% Market Growth, full year 2009 3% ZMH Market Share 3% ZMH Market Share $5.8 Billion Global Market $5.8 Billion Global Market #6 Market Position, full year 2009 4% Market Growth, full year 2009 21% ZMH Market Share #2 Market Position, full year 2009 Trauma $4.4 Billion Global Market Knees 6% Market Growth, full year 2009 5% ZMH Market Share $6.4 Billion Global Market #5 Market Position, full year 2009 5% Market Growth, full year 2009 27% ZMH Market Share OSP Includes Bone Cement, Wound Management #1 Market Position, full year 2009 and Tourniquet System Products for Zimmer’s human musculoskeletal system products. ����������������������������������� 4

  5. Shannon History � Legal Entity registered 6 th Dec 2007 � Site Purchased 4 th Feb 2008 – Building Constructed mid 90’s – Previously occupied by Flextronics (Distribution Warehouse) � Commenced Construction February 2008 � Construction Works Complete September 2008 � Construction Works Complete September 2008 � First Products shipped in 2009 � Achieved FDA approval 2010 � 2011 signified end of start up mode � 2011 focus on high volume Femoral manufacturing � Currently 200-220 employees �����������������������������������

  6. Factory Floor – Blank Canvas �����������������������������������

  7. Zimmer (ZOML) Operations Business Model �����������������������������������

  8. Integrating the Business �����������������������������������

  9. We are…. ? �����������������������������������

  10. Zimmer (ZOML) Operations Deployment �����������������������������������

  11. Vision • Manufacturing will at ZOML become a strategic weapon for Zimmer, providing the industry’s highest-quality products at the lowest cost. • Our ability to quickly flex capacity and respond to market changes will set new standards and provide the commercial organization with absolute confidence in product supply, providing our sales with absolute confidence in product supply, providing our sales force with more leverage to take share. ‘Centre of Excellence’ What does that mean? �����������������������������������

  12. Our Vision … �����������������������������������

  13. Our Vision … �����������������������������������

  14. Our Vision … �����������������������������������

  15. Our Vision … �����������������������������������

  16. Our Vision … �����������������������������������

  17. Guiding Principles • People are our greatest asset • Safety - Everybody’s responsibility • Quality comes first – compliance culture • Always look for ways to do things better � Business Excellence ( a culture of continuous improvement) • • Balance the books Balance the books • Customer focus �������������������� • Make and keep commitments • One set of numbers • Performance Management • Find time for important versus urgent • Balance short and long term views and actions • Have fun !! �����������������������������������

  18. Shannon Manufacturing Over Emphasis on the Tools………….be careful... CI Tools Cellular Manf Heijunka Pull Supermarkets Line-Balancing Gage R&R Anova SPC 6 Sigma Bench-marking Layout Analysis Ergonomics Kanban Systems OEE Jidoka 5S Visual Mgt Standard Work Value Takt Time 1-Piece Flow SMED Metrics Stream TPM Poka Yoke Cause & Effect Mapping �����������������������������������

  19. Shannon Manufacturing Most Common Five Lean Implementation Mistakes………. 1. Leadership Team does not actively champion the Lean-Thinking Approach 2. Lean initiatives not tied to overall Business Objectives / Goals 3. All Employees are not educated on Lean or involved in the change-process 4. No Lean Strategy / Plan is put in place 5. Over emphasis on the Lean Tools (Random Acts of Lean) �����������������������������������

  20. Shannon Manufacturing Why choose Lean? Top 10% Measure Zimmer Companies Customer service % 99.9 99% Yield % 99.6 95% Overall Equipment Effectiveness (OEE) % 90% 45% Inventory Days on Hand 10.1 15 Annual Productivity Improvements 5-15% 10-12% Capacity used for changeovers % 0.6 April, 2008 �����������������������������������

  21. Shannon Manufacturing Our Drive towards Business Excellence 1.LEADERSHIP2.SCOPE LEAN 6. MEASURE 3.PEOPLE STRATEGY 5.TOOLS 4.PROCESS �����������������������������������

  22. Shannon Manufacturing Our Drive towards Business Excellence LEADERSHIP: Training & Commitment of Site Senior Management SCOPE: Define functional areas (re lean deployment) PEOPLE: Define resources to Manage, Facilitate & Support Train all employees in Lean Principles PROCESS: Define Process for applying, reviewing and reporting Lean Activity TOOLS: TOOLS: Define clear toolkit that will be used to execute CI projects Define clear toolkit that will be used to execute CI projects MEASURE: Agree on a set of lean-related metrics (plus calculation rationale) “make it visual!!!” �����������������������������������

  23. Shannon Manufacturing Key Challenges Source: Aberdeen Group, �����������������������������������

  24. Shannon Manufacturing Industry - Key Challenges Source: Aberdeen Group, �����������������������������������

  25. Factory Floor - Today �����������������������������������

  26. Zimmer Operations Excellence �����������������������������������

  27. ZOML Headcount �����������������������������������

  28. We create the future. Enjoy the Journey!!!!! �����������������������������������

  29. �����������������������������������

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