MEMO

ConAgra Foods Foodservice Company Specialty Potato Products Quincy Plant 1005 E Street SW P.O. Box 368 Quincy, WA 98848 TEL: 509-787-3567 FAX: 509-787-9220 To: Jim Kaip Rick Martin Dwight Gottschalk Charlie Kirkbride Greg Lambier Jonathan Bogle Rick Gardner
January 29, 2005

From: cc: Date: Re:

Asset Lifecycle Management

The following information is a brief synopsis of the Asset Lifecycle Management meeting held in Omaha, Nebraska on January 24-27, 2005. I have placed addition information on the X drive for Quincy that I will refer to as needed. The meeting started with a Power Point presentation from Brett Beckfield (See X:\LW09 Quincy\Asset Lifecycle Management\ALM Workshop January 2005). In this presentation it was noted that ConAgra Foods does not have consistent information systems across all groups. This limits the companys ability to track production activities, invoicing, material procurement, assets, inventories, maintenance costs and much more. It also limits our ability to share information across business groups. Many of the information systems that we do have are not compatible with other information systems that we use such as Maximo is not compatible with our accounts payable program. This leads to wasted time for data re-entry or the requirement for writing program interfaces. In order to become the food industry leader it was felt that these problems noted above had to be solved with one information system that could be consistently utilized by all business groups. SAP was selected and purchased to be that system. The maintenance program is just one small segment of SAP. It was also pointed out that 75% of all Fortune 500 Companies use this system.

It is expected that SAP installation will start within 1.5 years and will be completed within 3 years. By this time standard reporting, performance metrics, Key Performance Indicators (KPI) and compliance auditing procedures will be established. The ultimate goal of the meeting was to identify information needs and work flow that can be used across all of ConAgra Foods in order to become a World Class maintenance organization. This included: 1. Establishing Functional Locations. This is very similar to the locations used in Maximo. 2. Establishing equipment type, ranking of importance and master data entry. 3. Notifications. These are work order requests. 4. Work orders including types, priorities and collecting information from work or activity logs. 5. Review Task List Standards. 6. Establish roles and responsibilities for maintenance and storeroom personnel. 7. Establish compliance auditing standards. 8. Establish KPIs although some had been established prior to the meeting. 9. Establish User Test Scenarios. These are work flow diagrams to be used in the configuration of SAP. 10. Establish maintenance best practices reviews. This will include a customized form of the Frozen Foods Group documents (See X:\LW90 Quincy\Asset Lifecycle Management\Maint Best Practices Review Assessment Forms 01-2005 and X:\LW90 Quincy\Asset Lifecycle Management\Master FY05 Maint and Storeroom Wkly KPIMetrics Tracking Sheets) 11. Establish Parking Lot items, which are items we could not resolve because information from other areas is needed. 12. Establish the Next Steps that are needed. This information will be used to establish a To Be document for uses across all business groups. A draft of this document will be sent out by February 2, 2005. The meeting members are to review it and respond back by February 14,2005. A publication date for the final document has not been set. (Notes for the information listed above can be found in X:\LW90 Quincy\Asset Lifecycle Management\ALM Flipchart) As we become a World Class maintenance organization, it is expected that: 1. We will improve plant productivity because maintenance work will be planned better than it is today (Note: Within 5 years all emergency downtime is expected to be less than 1%). 2. We will budget, track spending and report maintenance activities consistently across all business groups. 3. We will be able to analyze maintenance and equipment performance by plant, group, company, equipment type, manufacture, model, etc. using established standard reports, metrics and KPIs. 4. We will be able to transfer assets across business groups driving down capital purchases. We will also track equipment design specifications as these assets are transferred.

5. We will be able to track accidents associated with equipment and changes made to that equipment in order to prevent additional accidents. 6. We will drive down MRO inventories because we will be able to send unwanted parts to other plants and we will be able to share inventory items. 7. We will track maintenance labor by the minute to the equipment the mechanics work on. 8. We will reduce labor costs by tracking MRO materials with RFID labels and by sharing SOPs. I hope this synopsis gives you a general idea of the meeting activities and where the ConAgra World Class maintenance organization is heading. I will also provide additional information such as the To Be document as soon as it is available. If you have question or concerns, please feel free to contact me. I will be happy to give you as much information as possible.

Jonathan Bogle Engineering Manager