PERIOD OF PROJECT DEVELOPMENT IN THE un

Action # WHAT WHO

0 Insert 5W2H in GMR Site's MS

Defining the scope and implementation

WHO
strategy
1 Evaluate education level Site's HR

2 Level out the education level Site's HR

Check the legal requirements and collective

bargaining agreements and their implications
3 Site's HR
on the implementation of Working Cells and, if
necessary, make adjustments.

Business
Define the implementation strategy (Project
4 Division
Scope Business Division, Site, Area)
Leadership

Project
5 Define the Site's Implementation Team Leadership (Site
Leader)
Define goals for the project implementation,
Implementation
6 methodology, and measurement (the Project
Team
Schedule and milestones)

Define the Implementation Teams meeting Implementation

7
schedule Team

Define the necessary resources: Budget,

Knowledge, Supporting Material (e.g.
Implementation
8 Scholarship, Learning Center, Communication
Team
Campaign, etc). Estimate cost of each step of the
5W2H.
 1. Visits to the Company (BMK) WHO

Define the knowledge needs that can be acquired Implementation

9
with Benchmarking Team

Implementation
Define the Benchmarking location (visit or
10 Team + MS and
contact)
Corporate HR
Implementation
11 Identify the Benchmarking contacts Team + MS and
Corporate HR
Prepare a plan for benchmarking and for defining Implementation
12
the involved team Team
Implementation
13 Schedule a Benchmarking visit or contacts
Team
Carry out the Benchmarking visit or contact to Defined visit
14
the referred site Team

15 Develop the Benchmarking Report Visit Team

Implementation
16 Adjust and finish the 5W1H Project
Team

Define the Change Management Plan for Implementation

17 working cells based on the Chapter 8 of the Team + MS and
Playbook. Corporate HR

Examine the implementation of GICS (Gerdau

18 HR
Internal Communication System)

Evaluate and adjust the Opening speech that

Implementation
19 should be carried out by the Site Leader
Team
(Attachment 6)
2. Organizational Structure / Definition
WHO
of Cells
Develop an initial model of Cells Structure and
Implementation
20 review the Impact this Structure has on the
Team
Business Division, Site and Local Culture

Map current Functions existing in the Site at

21 HR
all functional levels

Compare the new Organizational Structure

Implementation
22 referred to the Working Cells in relation to the
Team
current Organizational Structure

Identify the Macroprocesses and Processes

23 HR
applied to the Site
 Train the Site Implementation Team on the
24 Development of the Business Definition Site's MS
(QUA 006)

Develop proposals for the Business Definition for

25 Site's Leadership
the Site

Develop the Business Definition for Industrial

26 Site's Leadership
Areas

Develop the Business Definition for the Sites

27 Site's Leadership
Supporting Cells

Organize the Steps of the Production Process in

28 the Cells and develop the Business Definition for Site's Leadership
Cells

Verify whether each cell can be measured

29 Site's Leadership
individually

Check the alignment of the proposed Cell

Implementation
30 structure with the Gerdau Template (hierarchy
Team
and cost center for various levels of authority)

Define how Maintenance cells will interact with

Implementation
31 Production Cells (Trust of Assets, equipment
Team
sponsor and experts)

Implementation
32 Approve the Cell structure to be implemented
Team

Check the alignment of the Business Definition

33 Site's Leadership
with the Macroprocess leaders

HR and Site's
34 Review job description of all employees envolved
Leadership

Assess the current situation versus the defined

Site's Leadership
35 structure (impact on people - future gains in
and HR
productivity)

Evaluate and define the adequacy strategy of the

36 Compensation process, considering fixed and Site's HR
variable compensation

37 Adjust the Fixed Compensation policy Site's HR

 Plan the implementation of the variable
compensation program aligned with the WC.
Implementation
38 Analyze and define the implementation strategy
Team
for the Variable Compensation of Cells (Goal
Program)

Implementation
39 Analyze and adjust the Recognition System
Team

Implementation
40 Define and implement the Learning Centers
Team
 3. Definition of Roles and
WHO
Responsibilities of Each Cell
Train the Implementation Team on inventory
41 methodology of current Leadership activities and Site's MS
tasks

Carry out an inventory of current tasks and Implementation

42
activities Team

Implementation
43 Prepare a report with the information found
Team

Identify the financial impact on Unity, taking

44 into account the proposed changes in Site's HR
organizational structure and roles/functions
Adjust the Selection Process and Promotion
HR and Site's
45 Criteria in order to adapt to the new structure of
Leadership
cells

4. Alignment of Required Skills WHO

Review the current competencies and compare

46 Site's HR
them with the Gerdau Competency Model

47 Align the Recruitment and Selection Processes Site's HR

48 Align the Orientation Process Site's HR

5. Team Analysis WHO

Prepare report with evaluation results, historical

49 information of all employees to be used in the Site's HR
evaluation meeting of the workforce

50 Evaluate the workforce Site's Leadership

51 Document the Evaluation results Site's Leadership

6. Selection of Cell Facilitators and

WHO
Operators

Select Facilitators, defining who will work in

52 Site's Leadership
Routine and who will work in Improvement

53 Define which cell each operator will belong to Site's Leadership

 Check the impact on employees wages and
54 Site's HR
other relevant aspects of Labour Contract

Consolidate information regarding the

55 development of employees defined as Site's Leadership
Facilitators

56 Hold individual communications meetings Site's Leadership

 7. Training Matrix for Organizational
WHO
Role

Apply the Profile and Training Matrix of WC

57 Site's HR
(request for the position) model

Identify the needs of technical critical

58 Site's Leadership
training

Define the Training Plan for Leadership and

Operators and include it in the GMR (Cells and
59 Site's Leadership
, Analysis of the process of training critical
techniques)

60 Validate the Training Plan Site's HR and MS

61 Communicate the Training Plan Site's Leadership

Analyze and define the implementation strategy

Implementation
62 of the Industrial Training System (ITS) (maybe
Team
joined with 72)

8. Go Live / Start of Implementation WHO

Site's Leader
63 Train leaders in Cell Leadership with HR and MS
support

Manager or
Routine
64 Train employees in WC - Communication to teams
Facilitator, HR
and MS

65 Update the positions and functions in the SAP Site's HR

Deliver the management of Training Matrix for

66 Site's HR
the Routine Facilitators

67 Implement the Industrial Training System Site's Leadership

KPIs Deployment WHO

 Identify the list of strategic KIPs for the Site,
68 using the deployed KPIs of the Strategic Map of Site's MS
Business Divisions/ Country

69 Deploy the KPs for all of the Sites levels Site's MS

70 Assess the KIPs Deployment Site's Leadership

LOPMENT IN THE unidade

HOW

Putting plan in GMR. This activity will be done after MS and

HR have domain of the Playbook content.

HOW

Checking the education level of the Sites Employees with

the required in the Working Cells
Seeking partnerships with institutions and setting a
deadline for completing the necessary schooling

Assessing collective bargaining agreements (unions) and

legislation to ensure that there is no clause that would
prevent the implementation of the Working Cells Concept

Defining if the beginning of the project implementation

should be done in all Business Divisions or in one single Site
(pilot type approach), considering the implementation flow
(Attachment 1) and the Planning Summary (Attachment 2),
besides the 5W2H.

Defining the implementation team (Industrial, HR, MS and

other leaders)

Reviewing the milestones of the project proposal and

setting a timetable for their completion. Also setting the
targets for KPIs
Defining the follow up meeting frequency of the
Implementation Team (biweekly), as well as the validation
meetings and the professionals who are involved in these
validations

Analyzing all Playbooks steps and estimating the costs of

each one and cost center to alocate.
 HOW

Analyzing the concepts and steps in the Playbook,

identifying possible Gaps, and planning the points to be
observed during visits

Seeking referrals of internal business with the MS and

Corporate HR

Identifying contact in the Site to negotiate the

benchmarking visit
Following the benchmarking methodology (QUA 044)
described in the Management Improvement Sheet and
Innovation Process
Following the benchmarking methodology (QUA 044)
described in the Management Improvement Sheet and
Innovation Process
Following the benchmarking methodology (QUA 044)
described in the Management Improvement Sheet and
Innovation Process
Following the benchmarking methodology (QUA 044)
described in the Management Improvement Sheet and
Innovation Process
Including details and/or adjusting the schedule of the
project based on information obtained during the
benchmarking visit or contact.
Analyzing the impacts this project generates in the Site, the
previous training required, and the communication plan
(Attachment 3). It is important to define and ensure that the
pre-requisite skills (Attachment 4 and 5) occur before the
go live
Analyzing if the SGCI is implemented properly and taking
appropriate actions if a gap is identified
Verifying if the current Opening Speech proposal
(Attachment 6) can be applied to the Site, taking cultural
differences into account. Using the material provided by the
corporate.

HOW

Creating an organizational structure proposal through

meetings that define the level and functions

Comparing the levels of the current organizational structure

and linking this analysis to identify current positions to the
correlated positions of each function

Comparing Organizational Charts

Evaluating each Macroprocess, process, and equipment,

based on Working Cells concepts and making a cell
definition exercise, with a clear input, output, and process
Using the Module QUA 006 - Business Definition

Developing options for the Business Definition at plant

level, taking into account the Operational and Support
Macroprocesses in the action 23.

Using the Business Definition Method and its models, taking

into account the Operational Process, Process Steps, and
identified Equipment

Using the Business Definition Method and its models, taking

into account the Operational Process, Process Steps, and
identified Equipment

Using the Business Definition Method and its models, taking

into account the Operational Process, Process Steps, and
identified Equipment
Checking for control items, taking into account the
relationship between customer and internal supplier (note:
avoid Control Items that depend on the result of two or
more cells)
Checking for Cost Centers for each of the organizational
levels and subdivided cells and if it is aligned with Gerdau
Template Structure.

Using the recommendations of the Engineering Process,

define equipment sponsor and experts for each operational
cell

Introducing and adopting the model of the cell set for the
Site, in a meeting with the Leadership of the Site, Corporate
MS and HR and Business Division VP
Submitting the Business Definitions designed for the Cells
for the approval of the Process Owner (may be by e-mail,
face-to-face meeting, video, etc.)
Gathering Local and Corporate job description indicated as
a reference and defining the final job description, more
appropriate to the site.
Identifying the number of leaders needed in the proposed
structure versus the current structure, draft the plan to
reduce the functional levels that should follow the Cell
Structure (Attachment 7), calculating the potential gain in
future productivity.
Assessing the adequacy of the compensation process,
considering fixed and variable compensation, and setting
the deployment strategy of tools that are not yet
implemented
Analyzing the application of the Hay methodology (job
description and evaluation), market performance, and
revising the payment base by function
Looking at all the impacts and designing the basic concepts
to be applied in the Site (number of general and specific
targets, timing, number of wages) considering local
legislation and market. Defining the rules, time, and
communication way for the implementation of the Goals
Program in the Site.
Analyzing the recognition practices already implemented
based on the Gerdau Recognition System , identifying those
that are important to the implementation of the Working
Cells and that are not yet implemented in the Site, and
defining plans for the launch of the practices
Defining the role model, identifying the most suitable place,
defining the necessary resources (tables, chairs, computers,
printer, shelving for the physical modules ...), and
approving the budget
 HOW

Using specific training in the method of gathering time for

the activities. Schedule time to create leadership tasks and
activities
Observing tasks and activities, interviewing employees,
collecting information of the software available, job
descriptions, etc.
Comparing the information found with functional
responsibilities (Director, Manager, Facilitator, Operator) in
a normal situation and in atypical situations to identify
opportunities for improvement and/or simplification
(productivity gains)
Analyzing the financial impact created by changes of job
structure and/or functions

Verifying if the new proposed Cells structure will impact the

current selection process and promotion criteria and define
the necessary adjustments

HOW

Comparing current Site competencies with the Gerdau

Competency Model
Adapting the tools used in the selection process to the
required Competencies (Competency Model and knowledge,
skills, and attitudes)
Updating the Integration process, considering the Business
Definitions (material, time, involvement)

HOW

Gathering Evaluations Results (Competency, Potential and

Performance), Background & Aspirations, Training and
Scholarship, Disciplinary Records, and other relevant
information of each employee
Using assessment tools and background information to
identify the best placement of each employee, as well as
their strengths and improvement opportunities in relation to
behaviors, skills, and required attitudes

Documenting strengths and improvement opportunities for

each employee

HOW
Based on the results of the evaluation, carry out a
discussion in the CDP (if already implemented) or between
the executives of Time Implementation, to define who has a
profile for the role of Routine Facilitator or Improvement
Facilitator
Under the new organizational structure, define which cell
each operator will belong to
Check if change of position will negatively impact
employees and making necessary adjustments

Using the results of an assessment, to consolidate

information in order to provide feedback to employees
selected as facilitators, explaining his/ her new role,
identifying positive and planning to work with him/ her how
to work on their development opportunities.
Holding individual meetings with the facilitators to
communicate the changes, reasons, and also to provide
individual feedback.
 HOW

Adjusting and detailing the Training Matrix including the

structure defined in the Working Cells template
(Attachment 4)

Analyzing and defining the areas with critical technical

training needed
Defining the skills needed before and after the
implementation of the Working Cells, taking into account
the Sites resources and the annual calendar of events. To
examine what training has been carried out and which need
to be revised.
Reviewing the availability of resources versus the priorities
and objectives for the year during a meeting with the
participation of the leadership of the Site, Corporate
Management Systems, Human Resources
Communicating to all employees the training plan for the
implementation of the Working Cells

Considering the industrial training existing in the Site

(Process Assessment - assessment), define a strategy for
implementing the concept of self-development (support the
SCI), tied to the implementation of the Cells Management.

HOW

Conducting Cell Leadership Training for all leaders of the

Site. The Leader of the site shall have been previously
trained by HR.

Conducting Working Cells training - Communication to the

Teams for their teams. The Facilitator receives the training
and material on this training when its time to receive the
training in Cells Leadership

Updating employee information in SAP (position, area/cell,

wages)

Training the Routine Facilitators in the management of

Matrix Training

Adapting the Site training model for the self-training

concepts. Implementing specific actions and motivating
employees to this new practice

HOW
According to the Routine Management Process Form

According to the Routine Management Process Form

According to the Routine Management Process Form

 Realizado
En andamiento
Atrasado

WHY TEAM

To follow-up the project Implementation Team

WHY TEAM

To identify those with gaps HR

To have all employees with education defined for

HR
the different functions in the Working Cells
To ensure the possibility of implementing the
Working Cells
HR and Legal Area
and Compensation for Results

To have the extension and focus of the project Business Divisions Leadership

To have the implementation team of the Site

Implementation Team
defined to carry out the preparatory phase

To have a defined way of measuring projects

Corporate Support
success and achievements

To ensure the process is well conducted and that

corrections are carried out. So that roles and
Implementation Team
responsibilities of each member of the
Implementation team are well defined.

To have the necessary and available resources to

Corporate Support
implement it
 WHY TEAM

To maximize benchmarking efforts and time Corporate Support

To define a detailed plan Corporate Support

To be able to coordinate and prepare for the visit HR and MS of visited Site

To have a focused and appropriate team during

Corporate HR and MS of visited Site
the visit

To ensure the availability and the program HR and MS of visited Site

Main Leaders, HR and MS of visited

To obtain the necessary information
Site
To share with the implementation team of the Site
information about lessons learned in order to help Visited Site
improve the project plan

To improve the accuracy of the project plan Corporate Support

To ensure an appropriate environment for the

Corporate Support
change in the Site

To ensure effective communication in the change Implementation Team and Corporate

process and implementation of Working Cells Support

To have a common message to be put across by

Corporate Support
the leadership during project implementation

WHY TEAM

To identify any potential problems that would

prevent the implementation of the concepts of Corporate Support
Working Cells

To understand what each position does and their

relationship with the functions. This information is Site's Leadership
used as a basis for future actions

To identify the difference in the number of

Site's Leadership
hierarchical levels, responsibilities, etc.

To be able to develop a new proposed Implementation Team + Site's

organizational structure by Cells Leadership
To prepare the team to understand and apply the
HR
method
To identify the best organizational structure to
manage the Site, define responsibility boundaries , Implementation Team and Corporate
suppliers, customers, measurements, equipment support
and resources expected
To identify the best organizational structure to
manage the Site, define responsibility boundaries , Implementation Team and Corporate
suppliers, customers, measurements, equipment support
and resources expected
To identify the best organizational structure to
manage the Site, define responsibility boundaries , Implementation Team and Corporate
suppliers, customers, measurements, equipment support
and resources expected
To identify the best organizational structure to
manage the Site, define responsibility boundaries , Implementation Team and Corporate
suppliers, customers, measurements, equipment support
and resources expected
To allow a clear definition of the responsibility
Implementation Team and Corporate
boundaries of the Site, areas and cells as well as a
support
way to measure results
To allow a clear definition of the responsibility
boundaries of the Site, areas and cells as well as Site's Leadership, Accounting and
their respective financial management by cost Corporate Support
centers
To allow a clear definition of the responsibility
boundaries and interaction with the Maintenance Site's Leadership and Corporate
Team and the Operational Teams and the clarity of Support
its administration on the outcome
Site's Leadership, Corporate
To obtain approval of the structure and continuity
Management Systems and HR and
of the project
Business Divisons's VP

To obtain approval of the structure and continuity Implementation Team and Process
of the project Owners

To ensure alignment of roles and responsabilities

Implementation Team
on the Working Cells Structure.

To adapt the structure and to identify productivity Implementation Team and Corporate
gains support

To ensure that the key tools for successful

Corporate Support
implementation are in place at the right time

To ensure the alignment of the Sites practices and

Corporate Support
Gerdau policy
To ensure that goals program can be implemented
without negative impact, with earnings, being a
Corporate Support
results motivator for the teams and assistance to
Working Cells implementation

To ensure that they can be used as reinforcement

Corporate Support
for the implementation of the Working Cells

To allow the implementation of the concept of self-

Corporate Support
empowerment and, consequently, the SCI
 WHY TEAM

To prepare the team to understand and apply the Implementation Team and Corporate
method support

Site's Leadership and Corporate

To identify opportunities for improvement
Support
To show alignment opportunities of current
responsibilities with the future ones; expected
Site's Leadership and Corporate
gains in productivity and have defined actions
Support
(eliminating duplication of activities, waste, non-
value added, etc.).
To identify potential impact on the results of the Implementation Team and Site's
site Finance

To align the new structure of cells with the

guidelines that supports Selection and Promotion Implementation Team
at Gerdau

WHY TEAM

Implementation Team and Site's

To ensure alignment
Leadership
To ensure that the new hired employees have the
skills, knowledge, attitudes and abilities needed to Corporate Support
meet the needs of cells
To ensure that the orientation process include the
changes established by the implementation of Corporate Support
Cells
WHY EQUIPE

To be used as support information to assess Implementation Team and Site's

workforce Leadership

To identify employees who fit the new

Site's HR
requirements (operators and facilitators)

To be used as support information and background

of decisions and also to be used as support for the Site's HR
feedback process

WHY TEAM

To have the defined routine facilitators of each cell,

Implementation Team
as well as the improvement team

To have established teams of cells Implementation Team

To identify actions required to correct potential
problems

To communicate to employees their individual

strengths and improvement opportunities, and
Site's HR
new expectations and how leadership will help fill
the gaps
To manage the expectations of employees and
give them an opportunity to express their opinions
Site's HR
and concerns as well as clarifying the future
expectations
 WHY TEAM

To direct the training to the organizational

structure in cells, training employees in the skills Site's Leadership
required by the Working Cells
To improve the technical knowledge of operators
regarding problems and difficulties of the current Site's HR and MS
process

To have a defined training plan and be able to

Site's MS
manage its execution by the GMR

To obtain final approval and agreement Site's Leadership

To communicate to all employees the training

Site's HR and MS
needed and the timeframe

To have a system of self-training implemented that

supports / makes the concept of the Working Cells Site's Leadership
possible

WHY TEAM

To train the leaders to cascade the changes to all

employees, helping to develop the ability to work
Site's Leadership and corporate
in cells. The leader must cascade the training to
support
their teams using the training GFO -
Communication to the Teams.

For all teams to be aware and trained to work in

All employees
Cells

To have the new structure implemented in the SAP

system

For the Routine Facilitator to know and understand

Routine Facilitators
the Matrix and to be able to take this responsibility

To ensure that employees take responsibility for

their training and development

WHY TEAM
To define the KPIs to be used on site level to
support the strategy of the Organization

To define the KPIs to be used on site level to

support the strategy of the Organization
To ensure that the KPIs take into account the five
dimensions of quality and the needs of interested
parts
 J
K
L
START FINAL
LENGTH WHERE
DATE DATE

START FINAL
LENGTH WHERE
DATE DATE
START FINAL
LENGTH WHERE
DATE DATE

START FINAL
LENGTH WHERE
DATE DATE
START FINAL
LENGTH WHERE
DATE DATE

START FINAL
LENGTH WHERE
DATE DATE

START FINAL
LENGTH WHERE
DATE DATE

START FINAL
LENGTH WHERE
DATE DATE
START FINAL
LENGTH WHERE
DATE DATE

START FINAL
LENGTH WHERE
DATE DATE

START FINAL
LENGTH WHERE
DATE DATE