39 aim- philips operation centurion

7/27/2019 39 AIM- Philips Operation Centurion

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PH it-lPs : opERATf ONt CENTURf Oht. --', Tf*tE

' Dr, ltoberl Marl{rui, odgrifng Prbsldent'of

Plrllips Ptrilipphar war bmp h lhouglrt. one

evening in May 1995. He hid 6caivad word loml

"'{l.rs'llEacl Olficn In Ehdlwari that hb woutcj be'.trahsferred'to Ptilllpr'Thdttd by July. .1995. Fle

was sh.edqg somb thoqtttr onfits cxpbrience"wllh' a carewrllsr lrdrr AIM:

I'rror trontre to dry | [&'lorr8lpf fo ltrai t

, . .could 'cgmplcF lhl.rrrhfnfud6g fhat we .'' qlertsd fgur ynn iio.-ftpr.n.th€

ttmci',t "

:canls In. lggl, my F$rcofit And l.lra.ve.

. workqd very hrr{ h l$rn thfr company

orsund. From.a rcd bdlpm flns of Plggruillion.in '1991r wr rfl$f PSl mlfflon as qf

ond 1994. Our na[r m pnaently ltlttlng'

llre P.15 trillion lavcl {Rgfor h.Exhlbtts 1 &

2l'.

a

'!'ltt, narf rrrlr w{nrr tl.lhfrlpi'ln* f.Wrtltr tnw*/im.@hl r"rl Hi ttdD'fi 0, wialsL&Alrrl'*I rbrtr.ttu

t h t I t, y y,*;t;, ttt h.tllutilit frurwrri.lifi3p,*!.m.,

.;"' ' '. direrlnd&lw{Xaffit

.tll rr'.lr nrltrrttgl n lp,I1rgril flelyfir tho.t,nrtvue of rhtrc dtlcudn llb.arrwary

tnilntr.hilipteil nnr lrtrilllil n llhntmttant. ttl .tttrt\r.l ,tr t tfrltffl lfiNryfcilrqt trh(

t',, ll il..r,t \ rr n,r.Frlf .rtfr huud le frn mff. ttqn $ iIt t t 1 | 1 1 y l1 1 1 I |1, t wl ( ltpt tiuh,t ltlu ht v ftnu ilkgnhu,il,

,,,t, t t, r:t t r ^ t t II 7,,4,t ttttt I unlillttl td *l Anngt,nru t,

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. . .., r.-:. ., .... _ - .. -. . - p,pFr'|,rr .

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c;trestions' sxPresE oplnfons; and make suggesriorts. poopfe gslod for and were giveninfonnalion' Oueslionr wrrt lnrwored and someriines, cfecisrom wrrq findl -- on tho spot.

'l'lte'ggals ol lhcro mccllng$ vrore: opcn corirrnunicaliop, tlrlar doclsion-,rratcipp. and,nv()lvrtnlotrt ol dl. ,Toornr al ell fevels dt ttre organiznlion wfro ,forurrd in order to slart,'rrt)r.vcnlenl profoclt. Crnlw{on I (tof, manage.'nenl),nre.elings aplbhrlecftnrr lorcei rir "ru"ru\vg(ltif.rg csrnpany uddC dffngcr, ;

a cofirii{rnpnt to

Furlher biaitlsfornfnl *elslons fed to tho fornration of five niuips euatity principles.rtreie qualrty irinci6q di;b;-d; ;;';.'"rrr,,'Jriio. ,"o,"rr;;;;""d rheir workancl'work oondfthnr. Thr n|r pftdblrr.atso provtduJ e"orlnoo

fir{lndr0?n for r$pnge and%rr n anngin g hnpfoveinpnl..

'fhese core vb[hf ,ffrtt*

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To aclrigve lhli' Phllips adopted n rlrreercrd straregy or poricy. doproynre.4r. process rranagernenl. and depfoyrncnl/improvgnret{ learns. ,-o, v' r,v',il" uspto

To ds[rerfo11n6n""l. .*,r,

|tLttr--r '. IrnfflF|'gtvetopgC_..msasuremEnlc {or bo&h lndlvlduel end buslness



IrrtlivirludlPcl'[orrDan'co.

i,rittl). i{rlrtttspl,;rill lo;trnontow

rrrrll llrrsc v0hrlttrrvo honn pulirrlo lril?llc9.hnnrrnllnrlpU bl;rrttrfhlaod on lhrrrrrr ufill;llroy 0lvo.llr.rir nnlirloyoo5;rrrrlllrl,..''olrllnrh.rnlllge 'uroy cronlo hr.

toviort,

'iiii,iEolfrdii

l0vlowl ovslualc.alttteglc

dlrrclbn.atdcoilpolllhrltdranltgs. l{owdgrr0wr b'rchbvlrp OurantHllon? Oowi irnlntrnlo qnd

lltvt*r;rorr. ,

cm|fl.lenciEr?

rrtakhrg lhor';rlrg$ n rcallfi.tinrtilol(ro flndr:tttilolrtorrlrvg1,l wltl bg.1ro$rct -lirrlornrrtllgn lorlrra 1;yrrn;s$lo1Irrilr'tnliltrs.

By 1Cg4, Cenludon frrdftuuy accompltsfled and lmphrnentrO hl lwnarounrl,

. 'aI

cENn RtoN W rHeplnHbn$eg

h 1gq0..Fhffpr ffipn|rrls hll rn sr4ims tow in openlbru by @rrlm a ddtcil of p63rttilliorr. Thc nory Pntldrnl Ind CEO, th. Roberl ti,lerUlme- wsr rirlg[titl lo-rrr cornrr?ny in.

{rl.y_. 199'1 'to. {rDplrmrnf 'll(nturlon end hopsfdg 'tinn oprntfonr- rrornd. . .For ptritips'Plriliooines, lli !ff!re- wir gnjof rrir-vivet. f{ the'iompahf coufd nor br lgmid around, then irrrvou{ be iricite'priilltdua td P{l[p! rlorldwtde rd'cbsd i,rrilipp,tnc opgtbnlr

.l

,Dr. $Flllnrl rrd^.hh FirqJtlva.qosnmlttee erailed.mEsllng to dlrcu4 yvaye to save the

comprhy. lnlud movrf lnCh?brt fhr.nmd lor malor rerlructurlng rr$ rh||mftil|ig fn tho.samewev lhal d!'P.hllfpr oory|lil?r wofldrylda weic'oolng.'Thl. Chrhr prrtof igdi."rarspeni'

ngrrfrlr.gryssormlflhn

,odvsalngcl hthr hiltdt tl|ercurlcdfil VItsfirlhtf$eQcd|ttbtoutq||bilrtor hallopiul$qr, ?hhbowrrfir*hr'rrstalrt{44ro cf '

il&|nrtfgnrylln' :

0afa0l;rrbdgUwrry1cr.'Otl!od.ht| frerotncdfrntdrelcrlt ltronCrf 1006.

lf**.of Phlltria I Cfrl$r.ly

rndar o Fnc? tr,sbttTWllrt lrrrpoflirutor$oeo0TlJu|'t|{lb. h fnc rflhudrrt *rconrldtrltrpthlilw$pqry. ryi.wrr| Fhnos hDr lhr b|rl tillcrbT,ott.EnrSrflrft tiltCfotdybrencanlod outln ,nrsy pilla ol ,

hr gongoay.Slrdh h 100,1.

lhom rurugyrud$ bo hskl

Sror4buiFhfirr, . '

\

nndln olunlhnmdln$drtO nr r$ailllr*dtfiloahah.#rdfi

{olno'Srl|eht$$ngr, hrtlgltyFy? Dowsi"[ii r;-riri r'rno yonrngo?

rl ovrrybval. lllqd&&lurlr. br*ork lcrrr.rnd,orNaoilg8rurThr rquencc ofrll.wCuollon.0qrl audl. olrdtrrooa3.mgqtrtlottmontdsflned for tlre

POA.00 rlwarrt'pmr.idco

ilrudtrs rot

ortafttDfib ltFlhrbsnqfnrfimf USu,qon'fifn0h.dgldu.*rnt$*'

',..rt10[S.[ImilF



._- _*T_.._::{.*lg, t u I t td t.(), r t t, il (.i g g

1.. ty! J_*-.rccoirrpfistring tfrere Frocedures. pfiitir?,57sin lg90.lo ts73t;;ffi;l:- PhiliBpines

reducerr ifs rnanrrowerc. r

'-"'"Yw*r comPorrerll lton',

. In'lg01; noberf ofitllu nuinspiredhrrnrprnwf rnrnrril"".1iif jfliffi fr.fi,Sffig:IfH;j:._,,,#

vor&aglogettgr wth

m-*fit^" i*r rr ;firi:ilCIq,* ! ,*F,;; cenrrnion moderlltal could bc adrphc'n ntlnttrr r,tuerton in r\ phfilpprngl (Rrter ro Erhrblt e).

,l.n ttF 1e?.1 to nfd.tgg?, rql:",:I:n

woik1rrenr..r,3

T1?tg, i,";,;;'rg6 peopre::"J,i,,,,i# ff#;ffi ffi,ffii*g;Jilffi,t#,,:il. cxindughd nr nn,o*i*,,nJ. :. ;. '.' ,,' '.'

lrcec menddory .Ctnlurfon

::":,,:il;t;llffi :li3,ffiitr;Jlr#,;di',irfid',J:#;;.il:

arflqc! rotu rliruirul *-.*iil;uffi" fn lerthte, portors,,.Fflrtnr,.,*ilr.Jr.gl.dere ,"'qhnrplotccq

pr.nr"'.irro*d;'ff;'ffXfJ,htbqptny

a; u,a rr if,r.I,,"pi to rorni'rj

il::::i -tl;'fr:,Tffi ffitli,: lp :1,* 3nrdore

e per66b, n nh; rhese were11;or!s.at ili ru*o* bvcb a*.**,uf'.1'lt'k or thig. slrwer doi firtlw hrnrn-r^--r,.-,'".ilffi,'iifi

ucrr3viss or psopr''dyr; il;i, ff :jif:i: ilir*ny ro modlryrrrerflg;.Lebders6lp f*,

"*fillj:f"*tenlThe'linh.o.r r*-;.n,'.'LI s, rhg'rs to one'indsalploresJb il ilffi;Jnd

lhe Exadorq) wag,lde.nilflra;. .^.*r.rr, fn'uance o^

p.hfiips ehffpphgs roo io *rfll:: own trnt$ub

T:Tr,.h_"r; rtrr md crror.,ln trre

Seginnlig,therO U

1y '1'&i:ii.li?;fr0#ffiff f,1'.T1 '1il.tilirtrqtwi!,,rhcn wu,.\bolh.prerurcdorsaniznlrdn reirhoo tyl $rt,ltfr;j"Jf ffT:,srs *Jil;dn..,il;.; 1ira')$rtlro oL4 ot** ro ptsffin'Jr,nr

rpsc{rc ,nrlru,}lilirro$ ; ;r n:cs'sary ro



_ - ...l,lou_.j'l ilE r'Asf( roRc€s

Task Forces^*.T fgrdlri gel rhe cinlurion p,oj::l * ttc fqat. Ths cnaflenge was to'l:t{'ry llte 60rpsr9to'di'|cllvu wfth the lscaf ctrrt,re. onrrh, Frefiuorlors ilr Eitrdhoven.etrtairred rosPqniiuc for th.ggrlntlrcd rclremc of crnlurioR, or, Bry{hra, io*"o., ,o.ughror llrc orcrogntfve ot{ead or3nrrlrrllorn lo decign qust[i

n$bh,.*rprbh to ,nckrcspectifeocaf ettvlronrqsnla. tt rrsrdd thrr thi e*"rryliio, .:h"* ;ilhon-,*"rnoority

rorrrprerrronf rdbn ptmrr olrrr^oif,g.;;d#;*bna.

r, Varug FcgJ?

nn* rer,

ri.

:' ." ".''Thgvatub irlcpb Trrt foror oalternqd rr, .unailr;

""*** {o thc cmproyeea, needsnd rsquesls: Ahiong ffi ofgrrrhsd",*,f,

weit sliff dovafoprnont gd lraHng. prodult ril iire'io'th Prqrirdtisne (wtrcro **oo

"*i.itgltyron, *t,rege ro buy pgripe produbis aiosl Prices), sosfal gathorlngr gclr a1 tire,6nnaay cfut,, "Soma_Sdcr. .ornpany outinilrlterc slaft rnernberf wtra.{d ir rngo.trttt;;;ffd'-"no orru, aeuytrbr wfirclr symhofizeoolidqrily anocoricem tuelr.ai'ffiu* boxos anii donailon boxes.. I

lJonrcnstrah Leadcnf,S Tlrtr Force

This grotrp wirs crcded rr'ioga tl-Tr, obigofive was io devrfop r cufiurc where rheeaders

'{nr-riqgcrs':y:f11 tnad.,r,.rnd*upervrson)*outd brbmr-rrr*i mrrule {n rherr;:T:i]il"#ilff Hffi ;Ti',ff 'r"*:no*,rnbhrhrrs.prosrrmron

, -,,,,,,,,,1,1,il'll11l:":n1rhilod iowaros workfrs to suslah lhe proshm,s momcdum and,r.rs,51effi;;r'ilTJ:fiiffiff

,#i,.Tj*:1*il*H*{fi:,;ffi lraysoodro,e



0uslonrer First Taak Force

llre Quslornsr Fl$t ijck force condpcled s crrstomor sarisfscrion curveyJ Tho firsttreslio^ was lo idenlily lhr.naf ctrlsnor from anrong differenr clrrlcm mar.rrerui,rg esrvicos; ,co'rrttertial'ipo{aliorii, rnd o[sr FhlllF: *ip; fu "i" L" w* ro'r[n

rrcfiflarors for thenlervierv aad eururyr. ftfralg;rnrnl hrd ld doclde betwssn oftrfn&rg dthrr hrlrmet pr e*lonrelssisl'ttce"rlwig &rarydcchcit.r * rfi..*ourillo,r*rlrorsdsmducl lhe hlsrviews.o avoid sutiicdvily' t2 hrrybw henrs rrgrs fornred to handlc'rhc vrrlour dlvlFioop ani roisit tJignts and &airlrl r. "-'- '.'- 'o'lu?t t

.

Th:e"t'ibmot

rhH q.'uy Audll (FQA).was conductod in rpg3. rn rrris pr..ogrranr, ronrranagem'erii,.incftiolrp {h| vlc. ?tlra*r't"; nt*rroturing, r.iilto ,irg phittps, riadlus{'rnet's fioca'bd h lhi t?otrffts}i'if Jtotto, cstiri, Zamboangb'c[y, Brgulo elfy,.and orheirovltrcial 'orjlfeir' rlt nrur tirm; ,itil l;ririra o*riburon jner aJrra ro.garhbr nisrand iniortoatlna on hrip rin*.no. and ;;;;-riioir"r, cocoonbnr. Fer rgfinc-el rheetmt 'Efkeq r.tfjol qt slrmy .dd;;"d-,*, freni rhr lraory; or nruffos rnom

:ff1i[.f.h dilq,o d.e#c

*a J;c*.raquuor*.ri'.r*o;br,.s by rh"

!t-Thpugfl'r lhginlelvlcw, lllsraggn found oul some-of lhe msrr smbffiassfng facls.abpurlrillps' pioducti snd qrrle*rr'ronilt. t*loriir""i;ci urh rhe.tuycrr rco man"'ers ro aeeper conictprigrreg olihnmd ton epi[ry:t '-'' ---'"

The survey ated uor*mrd curlomeri' prrr"ptton gapq In favor of direct cornpetilors. lt,vas found thal for gustomcn. Srrliy Tlr* vatue lor rnoney and nol simdy actvanceme.nf ficclrnslegy' Theio lwo'ilcmr urlc to!o:i"p.prp gonceptg. But ttra survryf rhorrvEd that velueor mol€r:was'fsr rrom'ide.nrg*ta or.hc a,ryir,

*hr":r.n*gorg took prrdo rn thorr ti.*rndrogy.;j}tr":H':iJffi ,l*,m:m:',;:n[iFy*;;;i,',;,#;ilil, ? r_ F,y,,lflrtrrfwrftstD prglgrEnoga.

Thc'cvrrr4y- *AU.c **n"tthr"Tong

rhc rmrng6rr.lrrrrr..i $ tnrung htrfgiierad rr'rov ra.u*'r.ou.n6me prdhrrr rrro lrydi[#;rr";; ,#-iltiln ,ro.6or pienorumd ror eueesfr1, Bp .tc $r vlil lrrq*rrr.qeed;idf.'ffiqq lrreMow. andurveys, ptrfttdgFiiilhid rnbrdr, fr; dr r,r.i.y. I irilrtnnc curlomr nqrhmcnrr.

Quafity nfarrrlng wrd ts bc.rqprrefsd frqrn commetdaf pbrnkrg. ll ytr r*a'tnut^teorDling quality tuncilo* ,,rur uurkrair

"oirru",rr ""rt prgve to trr r rnof| rflsatlva To[4lr<'tf erJ7.' ,, ,--

vF''rvvrrswerr.rr., vr,vve tg Da I m€

l>trilins'eatlzsd rrrat trrc .*.,{rys wers

'orenough io as$eg' rr'w trre custo'rers.'r:rc^lvriil tfieh markstln0' Ttirt:;;,o-no q""k

"r.,i ""^nrrwrrerher or

^orthcy noticecr the



:evs tchang'es. TNs viras ho'onty $rsf to hl them lnow.rt*.ifre companlr.r1rys ql paying mere lip

ff il;: n|;ilfl ol|::y:t''rre custo'#ilfi0

o,r,oi,,g! rvar nsoossary ro supporr

l)oriodis sustgortr n$rfrcllcln rsporle were not anough. rillrrr, frarir mns to lime,.Fh{fipsvas D,rt'sod rvilh Porliivq frl4orcr wfrich it eorobrutod * ,;rrr'i.;: fi;r, ,re.comp.any<'ew'it- could nol becsne conpfrgonl.co'li'uous inrprovenlrnr w'r gtltnrrrr to regp rhenr onon. Every'now gnd lh|n; prxluct-speciatisls and lec;hnicat sufport strfl woufd aslr: .Aie

wejonc? c-an we eleep loino'rrgJ, t*rdo,rt lhat lhe cornpilairl wilf nol rcqr?lMrrt sie e can we croo ,:nnke our eujlomcru'llytl tiollqr?" , .

":"[t :ff;m*.,Il j1,:r_rfTrrs. cc,urd srve dhccr rdidback on. producrlr',[?fr l:il"ffyff H"ffi ,1,1_i"r.,i,{yil;iilLTil"frfi 'fiT",n#*,:;::ilf f,A#lm*$'[*.si:r,fr # fi :'ffi3ff f ',#r g3:'tirtt&; ;ffi#lH,ffi&;tYs*'Mi'tr

ffiH:i::f,*cos{d wsdr our

lr..r*,o*f.'J;

;ilfi;ffi,#. ffi ffi; ill:roa'

C us lor4€r. s.a tiqiactto{ bccame.:.f.:,,t,:omptalnts

wero addrcerd $ddusty. phitips

[:[::1;ffiH,fjig.i11yj,l11;'.i,il"i"I,",#il1li:'Iiff ji#',Hn:nslead.ol'catdgorfting

tha foUU* ot; - rw"rrr r'rrr!"rgn conEclouS onodt toward leamwork.

tosether ro inirrimlza Er6nr,.*, .-^rj."jll::ilt TTgrrs'sald it wu'boilrfor stal to workogelher fo inirrimlzn sngn.lrd trofd d;lhOpn lauil.'Ttn qrstome, *ruU *t' whg was'esponstDto. Tlrey.uoutd gnty U tUunirOU'rri

5l't u",ir''r;;;;;;;'Ji,,fr*riol cer' whs

ov€rnfl.

4. ft''u SS iaqlt porce

..

t'

.',

!.

.;.'

;T ;: ffl'ffi:trrs m'n ogrdrvo'or ss, o,qr ro kdrinl:iflH1'g,T:Iff":,.jT,ffir;ff *# #C l,ffiff ?"r;i:,ilmfr ffi:HE:ffitri:ffi,'fi ffi ffi ffi# ha t op m'nss'nir* ro *rr r."ilJ'ilH-ffi::T;ltrI

{!ar}y In 19g4, nrrn$lfmml rloo decfded to havE..a comp.ny.hdd, dcrn up day. This;:;:$iljiilt^l[t*t 1ori.o,i* run,rron uy poeonnef, Everyone parrdpafed, incrudrns" -rg.'.nd of thc cry, the bicernent wr, ,iur, wtrrr papergarbagn,



'r-he

'EERSprpgrrr'foguccd

on rhe pr.'brerrr.Jr""s In.each of the cmproyqeg,worrrla"or' frndoy.ees. o,rgrc drvfd$rii,o .rorr.irio,ir"riii::r.!h.., ,"rn c a parrbufar.operat,insJlllil;#TT Yat ro ill'ril;*eroy.u

"*u,,o,n. rinfressc pt rn"i, wog fo he orhernderrying.,ou; rPh'"t'

Thr'prog/rnm.*orirrred

;rnnrr,o* to. cvrrydey cbrirrrng, The^"*,ir"'';*f,ffi: trj,:t-lt1-nurc u"'"ura.rJ'anpw€r

snd rorvi ,lpron. since flrey, ,i

Etttt otYl*fn

t.ntr.k!d !e klrnur.y a. pmiHerrrars*nd.d.{b! tfie rmprrpvemeot.i:ill ltfiff ,*ro.oilftrorc*rrrorrhe

fi [,':*:"H#T

"ni ;t,ill, ;;;;i,ffi",,nffislxleen pr

' -

i:?ilnl:;;#'fi *iffi,ffiiffi tffi ,r:ifrl'^ilt*T*iliil,"r;:::r''e

.cniptbv-s;;"'#!a'thq nqslrumontr ol tno"rtrlJ*,,

3" Lr" o,d]rl. *ur.,o.chanse' n ., i n i"piJ&,fl

ffi l.m,il,ffi,..,L::l

I'id"; ;d, ffi l,lr,, *n h nr o re

_ pqgc!

::",,:,ff:ffi,1il:,HiilffilT:*lor rrrrernal Audir*y*ems

and proceduiqs,5s

j,f3j,,,:T;1Hrrrci,r,*n*i;;:ipi1'li;:i*!:*lr**;,iT,,',;

,illH,:?,1lffi ;l,H,ffii:,:',fffr :,l$H*'i,,J#:nn:,:*:,#:,;

llla r r ;r go nl ctr l .ln fofi rr,l tlOn gyrtorpr

I



li. Buitcfing SuH*er Rdatton Task Force

The' uurrdnpsupptbr Rcbtion Task Fgrce was creilred withlre;rrttfi*ing rr{rrcll;rrrng ;;o;dto*1.t1, co'rrrritccli,er a,rrt rrrni'nrorrrr-, ,,]::rffi:.J:;, ;lrrt;truvittg the purclrarlng lyrf.mr.'U *r, r"ri"*urr.ornolnl polbicr end procedures refatilgl9 srrplrtiers, and..tho" ,iOnn J'inrr. according.t6 the disiied

oulcorni.,-.For inslance, rlreco'lltlirfce

*T th:l nE. d;rh"d rnrrcha;;";;;"^, wou* improvr crrdency.Ano0rlr. r

,o'ynrjp{i;;'{U,ffi

,ii,i,,[#,'fi If:.l u ty milcdalri pcpe c,a,,yin llrp p|anf-wcfe tfrf15fta4 ,ur mrfiy it llb ,lr" ,ara"fs rrsed* 't. .,

t

'

' pvaren' rhc mrnrggtrail'end rasfc brceo'were ove.1rllrmfI hc drcke l,o.cetch.sp'I1[] ilil*ffi : ilX$gy;;;3iiffi.iffi'ilfs,,enr .,c

".'rrFuf h dror.orrice

I

1.he ml;.st.diftiqutf proHfil r .. :rcsis'ancerb*rpnse#rilil::::ii::,'riii:q:,F:.#j'J*ff

,:;:HilT#* "'''o;",;:''"t: in noF wrro oir, ior:;ff,; -il,*fi;:

or dorne. rihs,,

;ii;*till:ltffi,'ffi #frr'i,"i':tr:dis;iffi r:iff;:dead

wooef, thalft fir";:" 5 :.n

lnr bcal organEalhn

*" "to.-,--#d:I###pfrfiips

$rgs thgr .Bn_^_L-ream rvho;;;ft

tlten ffipqr'trd-'by a ypur'rr, *r..aggde*rvr rrd 6ry., mfl"gam"ntctvanrtrge .o, .,"'"*c'otu x4ilttg rlorrcrrmiffiil;ridsas

end nar m*' a n e ini ;;d Sfi:fi :tilffiJ#T:i,ld;;:i;u ;;,bii; ;il#,,:f ';ff#'l

Another uoldtu, f||in rt|r ilicjln:rp fear lher r,erna::l.

ryl Cclfirrton. fleopre .

especially in, lfis.fr

l1-:ir:. il; il.,l*r ernkr *"rr HnE $;!;JJ*[ wfth.ccntwron.r*rdhnd ro more

,,?^:11i:t:,"1ffi :ffiI,,ffi ,Hfr;Tffi ?h::t,'H;ff':,,X;mng"f:'r^eri^,,rn yrere rho ,r""J"

"ifro;r;l' rrcr torc;uo*lo,*r lhoir cunrot oonofros.

.t



A tfrird prolrtcrncncgunlered w- --'-"--€

task rorces. o'e;"=::::::_t:twas lhe need to'croser c6ordirratio, lrna

,

:9j1: :,,".in, he #:'fi trJ;T i

j:?,:?:"i:,:f i 1 d'PnH'frill,"I,f i::::

^cf i vicru a r s o a r s,, w rc wr r ;,r,-;;;; ; ffi fi:;:,Tr.tr

iJ""T. ilffi n ff ,".;:rrr1#;;::f,#,Tff:[:::] _fhlnijl,ff#: ;ilil1i11.,,"" 1a. rahrr rhan h:rdividua,

c E Nr uf*or.r Aptdlewr*crrd lr*o {tEsur,rs .

C onsrnner F.rodr;cg nlVhton r

' Resrrustwrne h nr oo1y.o"*ur,Drvrsior

prri:r.,y.mcril.hc.Fvrgrenor phrips,Jn,:i,ff5tr!|lro,S:#:T#ffirkrd a,,r *,,ji,

rdr o{ prod,rcr' ro

:"-':riJHfiffi ffi #trj:"*tr1.:1'":fi:#f,"rffi;##li;:,iJi';,1,11il,,::f,:ffi ffi.f,*;iil'ffi ilil.fi Lff;i,,*,H*fl tr*fu lru/rnolhc

lff, :'ffi{jtH#ffiffi:1,.Yff Hr*::"ilifr tf f,T it*: :*,..' . J

:

rhc c,,*ude'anctino"ru;yj:u:.,:,l'Tu9i:-ajrr.unrkc n irc past. rhe divfsion

.,:l:fi,.,.l.n:jllt':.::]'t

**'i6npr.'.oo *ri;qor about ,ro"ra

.,r hvdnrory. ordersearize''i pnil-i,iJl#ilffi trh:rn li*rnn*,- c.iil;,, cpD ernproyees

-t' -iir !r simitar

Tlnoc,f gm ,.moF thar ir hacr r. . ,.''crectil lo ctedtars,. ln.l'hc dL-S" oradtt.potfby ;* ,,1

become ,norl ffil.rbout crclendtng

;:1;;:lHH3-l;;" ff*1 !,,u0,;,,h, J..i:-T*1. **c thn.drercre,

"p5

,, o.o"! '"ffi,ff;::mffi H:,f;i;,##"iffi#f;lj*In r sel; hrgor. on'sorlcro*'

y;5 .1rr o0 davc

1y:.q:r ro.o,

;;;;;

hat exidg.d trro.y

:::::1".*: "^ttrisn1srj..WrcnCr

I'*r"rrr'':1'11; ilrfroru t1 r"or-ffi."

rrro ,or* p#"i",,n rtune.io * *,ilon, dearori iven

tt tr ttte,'iiif .lielpins *1n o"o,*.rfrtaerfy hpu.rs oii,*.io,lo*ing ,norni,og.

.Tltur,

aven cfuring,,vwtttu rlgrntng. Tt



ffi:1?;**':1- - rare reab'^o ";;;l'-.u

sun'il€ lhe iougf limes.1990' cPD's relalionship with irs deafers

fi:,'i',tJoli::lrH,'l,fr*#tc torqr'o*+q}i"e filrr.td; or rh. dilr. cpo cmproyaes

r'f ot"e ve r,,rhoush

rr* rrrii rJfi ffinff ff:.'r"ffiJrilr,.ffi *flff ::egarding tinqt'q'tngcot''' i *t''"nfy when p"nrrra,r wirs rri phao ; ,hqr.rycro Infwmed orhe

^eed 'u'su-t do*rn * o.rtirn,r"r,, u,illir"""ru1 g"""mr ill*r* of spendros,

''is,*"onT

rn.rlrirudrry', C;&;;;;d;:l'H; ror rh.i orsrohdhi.r ,hendar srrueron.

' Th€ secehd rrgor Hrr {hs.resfuctuiing or lrroorrt ,nt . In.rhr Fert, proilu"r! ru"r,mporled nor

{rot , ro( il i*:r nnc wal"o"roor"g

ot rn arrodrrrcnt.of modets. andariirtibns' no{ rlfrorr'drd;;b;*tsd

oactr other. Arttr thc rruhrcrnfng, rhe raras forceEsarttq :mcrc qtr9*

''-ffirrrrirua- rlrli'o, ,.*a, hgrrrd eonlscnpc rrom

sslcrs aE, r+,ifl, Jn n. fa*lo, rrrir."pr. orocrg irr:rn".rrrrt nwr6.nd on!y,2f0,0@ untrspar weak' Affsr{hr'tltitliutg

or$l ",oa*"rrnJ: ;i*, bcaal hnhg s," i.s ts*o,,t mark.n iB94' sarsri'**rcrdffi;?.'n r"oo, ,rr*r.,r"ilr, ,ggrorrt. rairurhg campargn.The rqfgq of |}tc pioCld [n€. wac.orugiat beceulg uwn [email protected] llnarbtat **,",I {lrc t ssos, *r

:I..llir fi; fud.ilr,;il,;J iffi.o . gpod Filfrl nns wrrrdr il courore proud sf. lt

cFD',; ail; &ffiffffinnlr whon

"tnnli-q*i or rootsJ*Jirrou*ir rhar rhe

sinse Jarruery of .tgg{, **rl*.,:od exceeded{aigets.. },loronoc did hje *o* *uierti'r'r 'tlreli prpje:l"o

"Fttill"il"or

huogrr. oo,. irr,iii?, dd* squ'msnr eurpassedl:tf scf :i f)' 42%' wlriie r'iut

t*q*;; producrs exceeo.ed btye?x. orrnt tri, annon overshortarscis t>v 26%: *:':::pol trr. "url,o*tr;F;,,",

lom"ericem'iRcsrfoAp, which ferr;ll*,,,ll,,:.l".ti:n*:r

ur *tt.-'ffi.il'* orhsr.r,uro,'irl""n {rnoq h$nfrs.,,t rhrrd or

ff:,T::Tffi:*::1,, ,., *n,,. was rhs,r*",_"nr'.

;:r:;: fj;ij;#*fiffi, i#u,,,xxT,rfitd ffixffi T:[?; te l{ rnd phr ofrr h,r;*,;u; offi proct,.re

,,.,,,*,,,,1i1[l'# ff":'#|;:ll::ff:l;.'^]:,1r, sqfes opo cor{rnu3d rrs producl

, r"gr 'rreocry vle[ tn placc. 'ltrrur mFtt(ailng lgarns tol



. _

ar,(lio. ,lel'evisiorr, vidcb cquipnrenf andne'armence0r|he;'dffi ;;:,::'H:lf#:::T:*i',fl

,lLT"l:":i::H,,:::rrre clecided on.

Lilglrring Oivhion

-

ln Januaqy,r0&f,

rh'lphi,to$

Ligrrring'Manufacturing orvrsbn *rr."*rrcEd the tsoe'lificd !y ruV fnodud gdrubr Gmbl.i*rs"o ur,oi G.rlT*y, Ttrc swsrdtng body washc largoir Grrmafl;q!$f rf.ry r.sring gnd ce,irficru*:ory-rri*on in Esro*e. Trre\r,ri16iiln vrrb'npf,3lr-lprrnc.ft;n udth tho Buroprr of product glrndrri* (of flre p6itippineDcfrorrmenl 6|raarry

td;t'vi"il;;;;#';#hriprprenr obrrrndd In June 1ee3.

f nrp.r.cl Ai Wbrk '. ;',

. tn th? llgfr{hg dfr.|tbo, tfu progusffon of ttrs lnc.andrrrqrd bufb.prr acfricvd $rrouglrwo simr.rl{eeour pf ic||ff! Srr. pcfralbn aod thr erqrmbv. ln lha prlprraltoa.glgge. 6elass bs&tftun s!o.$rr trcoryid;fl d;nliffi**l b dry,.lgnd, rhc.tnrrdeor thcullr we6'@$td t'Yfh wlilt etmii* nbvdrr whrctr.wir anoror io dty grmryn'cn.o$rn, * werlsspvsred'{h*rn *n'!n q,f dtirrrr il;;iisoo^n of brrl qddbru occurre,J.

R"Prg€grtsUvts Ihonf ,'lh€ .

rnrclr.rJrll^^ r-_-,a s s u rance. snd il ;t,i##,'ffiriil irifr '#:H.,mrrl#:1yleanr 'lo edcre$s tiB Hdt fs4oft rilr' A{ler qcv.erqt expsrftnsrilf,

Q trrm wu.ced ttrat.usinilhe ovdn'ts dry the'pdtFtrtnshd'bufbsrilas'rnfact nd n€ccs'ny. Ah d,,,ry,,q hat strfrhienr:n fnel. the.hcal.g,imrlfrC frss tfro.acecmbty Frocoss wrc eubslcnttaf .gnough lo dry. lhetitqs.l;h6lspspgriglUn..

:

' rtxt u*":: yl *-rn,o1;-.r-T rhe sussesfion hancrerbd

""'"new work

nslitrc{ion' tt was,5j!.14;;o,Llnraion and rorrriJ rhrqusef ,"rrhft hrd mrda rhe earrerMpAcTBrogrnrn'un*recrffi{ -'--.'T

r:Gp'rfurl

' In Mardr1m{i {rr gfirg.

Itdrb.rr.3aw:the-..erea$dn or ni eni*nirri.id,;ooruooBsQ,ffGh Jnpracstnad'lhqfr;;7ur.n o,.qnnNilro H*rrror"t

li; urp wer.rrra Vice'rnsicfsrilfor Mpnufr'cr*"il,ttr;ughr.togcilr

o, ni,ro,rn"n,rra0v*.rronr rL-C*rr*Dn. csnrralr4echan'zitbd. Loerbrq ;ttil rJ-irrin,i;r;r;il;; Every day,w t0 rrrrrur',

rhg raam

nel le diScuer

rreuc;.t- r.ffd |o;;;dbn'stndcllst'piJ qual'y thrt rrndtrd rrom the previousrar'c,forallon' oar lo*n md fo,.lrc.Broauabn"inu

fluoreaccni hmp ar nfna o,crouk in xfiertor|ritrg' wrrih pnorhor ilfrn rt*r-,** tetsr ror *ielni*urrrnt,iemp,



pRo0.ugnoND

Phl[Fs Ftilbo&re iFtld rlncbr n ye becn st'pr with thr'o0rrrilE bg6 mc16s oo.t*"cre rouhd

rnr'fnrrtr rrsmrrh rno'nrrn r+ ;o;il;. ,ilt qililino,ruon rh.rrs;::'fiiff:rf,il

rrptdd fusr to i*'.tpntnic suatrv.Froeramr io comper.nsrs ror uris,

ll was nol

ltad

also

!

A ner'ri trsd$s'hlp wr; mintne, y,n..,I" 'changing o1.t}re.gusrd. u*brb wouq phitipstri|irr'rin.eSgo?M{otlry;*.'dffiMar|iinee?lrngu8ro.Vt|fi!|

.t,!. .

a.

I

t

a

a

tr

,

€VSLOPMENTS.

'the gtaff rc{ed lhl acmmplisNrp'srrralt and simpte prolede wodd ue oerr"., ilra^;rrrrrr:lting o'c big c{sdht! lltlt co,td iror bJfi'isr;,i. ;'il;*orcarrl$dls uro cir'tirn cycre forl lronilive rnessq[o'ra tho rrrrf. Mahrrs'.n'co.acriviricEwore abo rrrrpgp1gl1 rO srrsurc that trrenrtH projecls were surhhtd.



Exfrfbilt

PI{ILIPA ELECTRON|Cs ANo titGHTtNc. rNC.

EALANCE SF|SETS, t 900.1004

" {ltt llto P|,1||nit,nc Posos)

.s :; ili! t.,T AliS€fS.,.:lr

a

. rr rc recaivollf0lit\lliliRtCS

a

Qrrrers . nnl ollow. fgrUqrtbtul rg9rydf :roCofuolJlt

^.ttitintgi' . .

I.rr: Crodllf,.Otlrqr3

r..,rItlOtiOt

c l^

| i 4 (l irtr,Olp Lil

CVrr0hlTorol Cr'{ r:) r'€ n T V.

tNcoMETAtr

s1i1.11 16t A1.,0 STgCKH0LqEltB. EO{rlW

! l|.]r:t: l.l I l.lN tlLlTlEs, ,,,r.i:; gr.ylrlrlu ixrtl uccfugd oxFlrrftll

I,j,yjri,la!

Toi;'t Crribni5: th'tA I

lc,ao0,ogg

'3tnr rt30.r1.007.Eo!

ta0dlfe'?31

l.?6l,oe*'lg.ttt.ettidl,tt..ii[

ts.ll0

39.970.67t

23.791,t10.1 '

"?t|,lg3,t tg

t21,609,404:15"9$i,ga?

tl,ll.ttto2f3,Elt.ttr

to{*fo

70.6.10.402

t4!.129,6tS

?.tBl"gcg

dg.eet.o:lf

t0,t60J0!tlr;srrdr

.la

rrb,oit,lf8'l.l{.ilf.c0Detr0ltfHt flutl. t0t3n

' tinlllo

n.or5:rEs

' er,a10,900

3ilIre,$deirr0r|ttgp7o'!0r000p00trrfgl,rft

.lfl.tltt0t '

l.fit{5zl

32.64t.755

19,54i.7d7. 318,823.020

?11.5i4..760

1e.900,5p2

*.8mp17290,t3D.€git

II10

t,tl?0p,ltl 1 .81 t.26 1

I 2,029.8s2

t. '

01.?04.09{,

72,2?1.t?t

.1.0f0,f 00

93,1t l.sd I

f,lg.0l0.f0f' l,o|ulf .

t30.935.00!300.0!9.259

?,sr9,9u

' ?06.{14915?0.

325.240J,t4.d.lis.szz

f96;713.

EunggYA \.ABL

OCt(HOLSIOCk ' !m.fr3,{t00 15?;|'9,tto.o ats,ftlJdf |llJtttlQo 45:.tt3t00

.31:7rlit.t 78

I



EXt{toT ItHruPS GLECTfi ON|CE ANO UG| InNG, nrc.

'3tAlllrfttl?S pt lt{COMe AilD qtF|Clli tt!0rlll.ll,l FhlilDplfro prroat

i r r:rch'C.r,ar:d tor gtodllf arrrli:,::iOlltl,,lcrctt- nol.

tt ltr.t{i'rt,000J00

te05tJ., 'll,ttll00t{tfrol.{|.$.ltlfeat

lcr

t



C Iratlcnge' Slro'et Frporn$

fn tg8$.'qur{ty flagrrm. itstt.i lo galp s{nonpar ?u??erl rror upp., *or[r**nt wfrh

{he crpalfdn of e ru$grflhn.rydrm ceuEd Errorooet Rr*dui reCil. Tri. gan rnu;ined rfreusc of speclif torms wl{dl rrnra dcdlcatqd to ancourifin! nc Hcar r6d oplnions of a1 staffnrentbers whp w.gnlgc ta 0ring rn igrue lo nranageingnl e alterflion. .

Itnp.nct Prcgr.rm

l'lu1ft'Itt-,*t1t*t suffirlhlu fpm,ns c.hrltcngo etrgeta'. Thor hnni *,ttrrroc"iiri,i,ut;,.t.i rrlhclqd rw,woi llftCh[unodnto $trDdfirrrr.

' - - -.

€xtribit 3

Totat Qualily Malragenrenl

l'otaf Qualily ManAggnrenl (TeM) irr Flrilips ptrilippiries.stnrtcrj in t985 as parr ot ltrecorrr;rnny's ca$rpaign to nraio.Phitips gloQalty orienle d, qualily clrivln. snd cuslorlrer.orienled.

?ut19nand fmpfdtmltlrlhn of quilily, prograrns wa.s gpclrhrrofd by, tho formrrion or, rhsQuality Mpnagrrnint lnrofindlon sycram

Diviston.(eMrsp) h nf Llrfirhg Frctory.a



Awards uierc givon to ilie .t*st IMPAc'f rearns olr.a Qrrarlerly nilcl {rr}rruot lr.asis.-reafus

v/crc judged accorcllg l0 thg gfhFl of lhe clranges they efiectcd In ilrc cpecffic areo acrtrresseda;rd to lhe qverafi effidoncry etlhc ptant..

C ris is:, 1990 . .

flte fumber of MPACT{eams grerv 5ls3fily kom armosl 30 in rg0g lo g0 in 1gg0. Arop rtf 77 was regislered in 1991, whiclr dropped uuunirinrr by 1992 rr;; rr.,an rs reams

..* -

't



/ffi

e

hf f

TJPfl

E

t,t

i't:,ttq

isr.lt

,tl ffl$u#

n- tl,

yt .:

s3ES9nc0t{.).cJOIEo0 O.- u, (t l. <a0.|'!r'' ru! <€g ii$s'.1

fl&t_

{r

fF

$.Fu

s5J

rI.i$

FFrE

D|l

E

$

'yl

g|lg'gG

{Ja

g0

i'.ff i

|,(, I

iE Ii.s IR.slgEi

g3tt5 5Ff

co 9l'q{xi-4 qu, otto O titu3<s€ tl

rf t+rEe08r,

sggl

iJgl

ff* l

HsF ./

s€3$

i$

t$:;l*4 d

ljJo E

f5s

It$

g

8.t.f tr'

Fgue

E{

k

ffit- <: €t0 CJ:Era(Jt: lututgovl cuii'ao otlo

$lf ,lffIh, sf-

lfsfgf

g

€{Figr$t

Ed5

fft $& F*,fi [1ffffifi#f

lIt

$fqr., ( f

PS ur1||u.x {qourrc 1"n.."h*,i'--- . J

x..o.=

I

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tro

.o.

x6t-s F



, . page i:

f .$ F FH

$sfsgu.$s

'.'t.,l ol-

E-t:: ; cfl .!u H.i -o: h E 5qiiS19Sat.froEp&5''l.o:cgs56Eqrsra.vEtaL

c.o

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I



ffirlzoll;51 c

'lqfijssFfo'tt'

.SstE E E.__'

Ffg.f,r' I I '

, d:t'r

$'ea Eftls $

a.^EF

s5gr 3

gFEEg

,a't I r F. *f.

L

tEl

|$J

sg$

c.9rrJ!grtgo9lEr:tEr(.9p5,@l'

'z.c)g:3lFzuf,a

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ob

gsl$E



Erhibit i_-PI{ILIPS ELECTRONICS ANO LIGI{TING. tNC.

. BALANCE SIIEETS. 19$0.19p4

CURNgNT ASSETSCash .

,. 'Trade racqluqhle';.

.

Atfifidor

Qslsr16l lnconto llrOllrCr q,s77g6t 6tggtt

I r ^.11,D[FgqpEg tNCOtdE TN(orrr:R {ss.ETs

t r S lo.ngf3' thprrSilsto gtnlblcs

Tolrrl

s l lAr.4

T

ttOCh

c t;rr,rgd

'. .ig,ror.ota

llr0'l l,tto?tr,oiq;sss

lto,ile,7jltf,t9.0?0

t0,0?1,:t7:t6tJgf,lld

rOflco

ll.Qas,7g0

t3Jto.DDo' anlt{zF{?

l0lr!36.s?bl0.om,!00a,f:1.?:71rmJ.z.sil

t.cti,6&

3?1917.?ss

.10.585.747

310.0i3.020

2l1.531,760. rt.900.562

. t2J00.0 | 7

290t930.663

,3?7

16.85 I

0,262.8 t tr

l.8l1.?ri I

2,029,8s2

206.8a9.620

92s,230.342

6,723.322

^ .Oilrerl, not :rtfow. forfuDfrr{ *rilfr

OtttcroanrrOO,ot,,t,irialta.' . .Ter crudltgOltrglj. '

lnv!nlgliol

t

30,970,€7'e '

' t3r7et,{9424.192,416

1e3f00 d01

15.95t.1.12'3{,2t t,i7o

'El5$lf.nr

tott.?E0

rtttcl,ott

rstFolorf T.gftrlg{

il0''tc.illta"?tf30pQ5tJ$rmf

ta3,tt!JC,

lot.fto

1.4?0.o{4

t.(

I n Br !.r rrEs^NE

S-ioct$louocng uqutr

t l::Et f T LtASttfT.tEsrl3 ltirynblo and agcmcU gxp$ijff

ol,rs payirlrlo. . :

gt.te{,030

72#t2,t27

t.ors;t00

t0.640.{02'

fi3J30Ji73

' .ustete?10.97E.{t5

6t.t{i,Etff$;|t.d.|0.

Itr4ilr

It0,gt5.0E3rQ$8ePr306.

q0rolrSi

,0ellCt60o . a5z,trtr.6@ 108,171100 {ftiri.!00 ,t52. t73.500I

{ltt lfrC Ptrilitlll6o Ire:ros)

ide4-o;;,',5S E TS

39 aim- philips operation centurion

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