2. 2
Integrity, Honesty, Safety and Quality
We will conduct business with integrity
and honesty in compliance with all laws
and Company policy.
We are committed to produce products in a safe
environment that are of the
highest quality for our customers.
3. Agenda
3
• Objectives
• Focus on Operational Excellence
• Operating System/Kaizen Overview
• DMAIC Roadmap
• Define
• Measure
• Analyze
• Improve
• Control
• Next Steps
4. “It is wrong to suppose that if you can’t
measure it, you can’t manage it—a
costly myth.”
Dr. Edward W. Deming
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5. Objectives
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• Enhance Awareness on the
Lean Sigma DMAIC
methodologies.
• Foster a culture of Continuous
Improvement based on
empowerment, inclusiveness
and metric-based results.
6. Areas for Focus on Operational Excellence
• LeanSixSigma
• Design for
Manufacturing
• Change Management
• Project Management
• Cost Reduction
• Improved Customer
Satisfaction
• Improved Quality
• Engaged Employees
•Strategy Deployment
•Value Stream Analysis
•Kaizen Methods
•Root Cause Analysis
• Certified Black Belt
• Training and
Mentoring Skills
People Process
ToolsResults
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7. Impact of Operational Excellence
Improves Quality and Delivery
– Reducing process variation
– Improving process reliability through standard work
– Enhancing Customer Satisfaction through process and product consistency
Decreases the cost of doing business
– Reducing defects / scrap
– Improving process “workflow”
Increases Revenue - “Growing the Business”
– Improving Customer satisfaction
– Pricing Excellence
– Introduction of robust and reliable new product designs
– Increased revenues through new products/customers
Strengthens our employees’ analytical and leadership skills
– Data-driven, fact-based decision making tools
– Sharing of best practices globally
– Impacts all functions within
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8. How Operational Excellence aligns (example)
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2020
− Accelerate product development and increase
R&D effectiveness
− Develop customer-focused commercial model
− Develop new value-added customer offerings
− PDP support to accelerate product Launch
− DFSS/Lean training integration
− Support Vitality Index, R&D Effectiveness and innovation council
− Execution of strategic bets
− M&A and licensing execution
− Support projects Darwin & Care
− Develop Roadmap for BP Integration in Merger Management
− Expand OpEx deployment across business processes
− Continue to grow above market
− Accelerate investment opportunities to win
− Execute on Project Amazon (Russia & Brazil)
− Support Strategic integration projects
− Support C&RM project needs
− Streamline and shift to lower-cost operating
model
− Reduce G&A to support transformation
− Revamp go-to-market model to better address
customer needs
− Achieve OpEx savings of $175MM
− Expand and integrate COS 2.0
− Develop COE models for Tooling, Energy, Translations & Label Printing
− Develop and deploy Project Management framework and training
− Drive execution on key strategic projects
− Tier 1 & Tier 2 Bench: 60% of slate ready-now
− Improve Five Key Employee Survey Questions
YOY:
All five exceed Normative Data
− Expand Continuous Improvement training and Talent Development
− Expand “ Knows” and develop an external benchmarking portal
− Integrate Lean Sigma training and provide flexibility in training delivery and
access
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Persona/Anza Operating
System
10. Operating System Elements
• Purpose defines the key opportunities to
drive improvement, establishes the
strategy and generates key linkages and
communications to ensure enterprise
alignment.
• Process focuses on quality and
productivity improvement by embracing
process analysis and process
standardization to reduce non-value
added activities and waste.
• People enable the cultural change of a
continuous improvement organization by
engaging, developing and empowering
employees at all levels.
• Results drive execution, align behaviors,
create value and sustain results.
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11. Results:
Metrics
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• Defining
Organizational
Priorities
• Aligning Resources
Purpose:
Strategy
Deployment
• Quantifying the
Opportunities
• Annual Deployment
Plan
Process:
Value
Stream
Thinking
• Kaizen, Six Sigma,
Problem Solving,
Just-do-Its
• Countermeasures
People:
Team
Engagement
Persona/Anza Operating System
Improvement in
Quality and KPI
Metrics
Leadership Enables the Creation of a
Continuous Improvement Culture
Continuous
Improvement
Metrics &
Systems
12. Kaizen
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Kai = Change Zen = Good
• Japanese word for "improvement", or
"change for the better“
• Philosophy or practices that focus upon
continuous improvement of processes
Rapid
improvement
30-60-90 Days!
13. Benefits of a Kaizen
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• Provides a setting and forum for a cross functional
team to collaborate and understand each others
roles/contributions in the process and map out at a
detailed level the process.
• Focuses on identifying wastes/opportunities in the
process and solving them at their source, to
change the process in a way so the waste is not
repeated.
• A forum to ask “why” and explore the cause/effect
underlying a particular problem to determine a root
cause and identify a countermeasure to resolve
the problem.
• Consensus building team approach to determine
the future state.
• Collaboration among team members to identify
and build an Action Plan.
Rapid
improvement
30-60-90 Days!
14. Process: Close Loop Methodology
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The main approach used in is Lean-Sigma DMAIC:
• DEFINE – Define customer requirements, business case and project
objective
• MEASURE – Measure current key process metrics
• ANALYZE – Analyze process and evaluate potential solutions
• IMPROVE – Implement selected solutions
• CONTROL – Establish systems and new process standards to sustain
gains
15. Initiate Project
& Check
Strategic
Alignment
Determine
Final Process
Capability
Develop
Control
Strategy
Pilot &
Implementation
Plan
Optimize
Solutions
Identify
Opportuniti
es
Identify &
Eliminate Waste
Understand
the Process
Evaluate
Measurement
System
Establish
Baseline
Capability &
Update Metrics
Refine Key
Metrics
Stakeholder &
Customer
Requirements
Finalize
Control
Systems
DMAIC Roadmap
Define
Measure
Analyze
Improve
Control
Define
the
Process
Understand Root
Cause (Critical X’s)
Quantify Y =
f(x)
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17. What do we want to know from the DEFINE Phase?
– How to define the scope of the project to ensure all involved
understand what is included and not included in the project .
– How to identify specific metrics and goals that you want to achieve.
– How to Outline the Process & Identify who the Customers and
Stakeholders are to ensure they are included in any changes. Support
any communication needed to gain buy in from those identified.
– How to develop a more detailed understanding of the current process,
so everyone involved understand the end to end process flow.
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18. The charter Objective clearly states the output (Y) and
the Problem Statement describes the problems but it
will NOT state solutions for the inputs (Xs -influencing factors)
because you need to determine those in Measure/Analyze
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Element Description Details
1. Value Stream
Identify which Value Stream the
kaizen event supports
2. Problem
Statement
Define the specific problems
observed including baseline
performance
3. Objective
What improvement is targeted?
Describe specific metrics and
goals to achieve.
4. Scope
Start & end points of process to
be improved
5. Benefits of
improving the
Value Stream
What is the business case for
the Kaizen/Project?
6. Metrics
Baseline metrics and targets so that improvements can be tracked
Metric Baseline Target
Project Timing: target
dates, revised dates,
and actual dates for
each phase
DEFINE Phase
MEASURE Phase
ANALYZE Phase
IMPROVE Phase
CONTROL Phase
19. Project/Kaizen Charter Template
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Element Description Details
1. Value Stream
Identify which Value Stream the
kaizen event supports
2. Problem
Statement
Define the specific problems
observed including baseline
performance
3. Objective
What improvement is targeted?
Describe specific metrics and
goals to achieve.
4. Scope
Start & end points of process to
be improved
5. Benefits of
improving the
Value Stream
What is the business case for
the Kaizen/Project?
6. Metrics
Baseline metrics and targets so that improvements can be tracked
Metric Baseline Target
Project Timing: target
dates, revised dates,
DEFINE Phase
MEASURE Phase
20. Voice of the Customer
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The term “Voice of the Customer” (VOC) is used to describe
customers’ needs and their perceptions of your product or
process.
Voice of the Business
The term “Voice of the Business” (VOB) is used to
describe your business’ needs in creating the product or
executing the process.
Voice of the Process
The term “Voice of the Process” (VOP) is used to describe
the current state of the process; how is the process
performing. Is it capable of meeting customer needs?
21. Process Mapping
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• To define the process scope including
start and end points, and steps included
• Visually depicts variation or complexity
in the process
• May also use “swim lanes” to identify the
key stakeholders involved in the process
• A foundational tool that can be used to
capture process observations
• A visual tool used to define a process,
current or future state
• May be used at high level or detailed
level to improve process
understanding
Objective or Purpose
• Process Maps may be used in various
phases
To Define the current state
process (Define)
To Document measurements,
wastes, and rework
(Measure/Analyze)
To Describe the desired future
state (Improve/Control)
Function 1
Function 2
Function 3
Function 4
Resour
ce 1
Reso
urce
2
What is It?
When to Use It
23. What do we want to know from the MEASURE Phase?
– How to use a Data Collection Plan to Collect Data on the Y
(output) and key Xs (inputs) and understand where data can
collected from. Understand the need to support and drive
adherence to collection plans.
– How to understand and use a measurement system to identify
areas for improvement.
– How to use the data collected to explain the current state, by use
of different graphical tools.
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24. Operational Definitions
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Operational Definition = a clear,
understandable description of what’s
to be observed and measured, so that
different people taking or interpreting
the data will do so consistently
An Operational Definition should
address:
– How to define the measure
– What the measure includes, and
what it doesn’t include
– How to take the measurement
(procedure)
25. “Continuous” vs. Attribute” Measures
• Continuous Measures - factors that can be measured on
an infinitely-divisible scale,
– e.g. weight, temperature, height, time, speed, decibels,
budget-versus-actual (dollars)
– Often called “variable” measures
• Attribute Measures – everything else!
– Often called “discrete” measures
– Pass/Fail; Good/Bad
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26. Data Collection Steps
1. Identify metrics and establish clear Operational Definition
2. Define stratification categories (data tags) - visualize how you may want to
analyze the data
– By shift, operator, day, month, etc.
3. Create a data collection plan
– Who, what, where, when, how
4. Design the data collection form and tracking system
– Check sheets, table, concentration diagram
5. Provide training for completing the form
6. Collect the Data
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Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
27. Pareto
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• The Pareto principle (also known as
the 80–20 rule) states that, for many
events, roughly 80% of the effects
come from 20% of the causes.
• In the Measure, Analyze, or Improve
phases to prioritize high impact
defects, issues, or other key input
categories
• To rank root causes or inputs in order
of frequency
• To identify the 20% of inputs that drive
80% of the output
• To focus the team on the vital few
improvement opportunities
Objective or Purpose
What is It?
When to Use It
28. Trend Charts (Run Charts)
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• A graphical tool used to display data
over a time series in order to see
trends
• During the measure phase to
understand if your data is trending.
During the improve phase to verify
that you have made a trend impact.
• Allows you to see if your data shows
trends
• It is useful in understanding if a
particular issue you are analyzing is
moving in a favorable or unfavorable
direction
Objective or Purpose
What is It?
When to Use It
29. 5S
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• A systematic process to produce a
clean and well organized work area.
• This can be used in office, field, or
production environments.
• At the beginning of all Lean
Activities
• Places high value on environmental,
health and safety
• Creates a smooth and efficient flow of
activities
• Promotes employee satisfaction
• Creates proper environment for
standard work
Objective or Purpose
What is It?
When to Use It
30. 1. Sort - remove clutter; red tag
2. Straighten - make locations for everything
3. Shine - clean, polish, paint
4. Standardize - find the best way
5. Sustain - make it work!
5S
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32. What do we want to know from the ANALYZE Phase?
– How to identify the Wastes and non-value added
activities in a process to better able the team to
develop an action plan and set of improvements.
– How to understand root causes of our process
problems and how to eliminate the gap between
existing performance and the desired level of
performance .
– How to identify goals for the Future State and close
the loop from the intended objectives of the project
to the detailed opportunities for improvement.
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33. What is Value?
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Value Add = Good
Non-Value Add = Bad
Business Value Add = Required
Activities that directly contribute to satisfying customer
requirements. Consumers would be happy to pay for.
Changes fit, form, function. Focus: Preserve and enhance!
Activities that do not directly contribute to satisfying
customer requirements. The customer would not be
happy to pay for. Focus: Eliminate where possible.
Business Value Added: Non value adding activities which are
necessary in the current environment. (i.e. legal activities, SoX,
FDA, reconciliations, approvals, inspections, etc…)
Focus: Evaluate and streamline or enhance where possible.
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8 Wastes
• At the start of you ANALYZE
phase after you have completed
measure
• A set of eight common sources of
waste and non-value adding activities
• May be used to classify sources of
waste observed in any process.
• To identify and classify the sources of
waste observed in a process
• To develop an action plan and set of
improvements to eliminate, minimize or
mitigate wastes identified
When to Use It
What is It?
Objective or Purpose
35. Root Cause Analysis
Definition:
Root Cause Analysis is a step by step process of observing, investigating,
analyzing and finding the true source of the problem. Preventing the
recurrence of the problem happens by identifying and eliminating the Root
Cause.
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Root Cause Analysis is a team effort!
36. Tools for Problem Solving and Root Cause Analysis
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Root Cause Analysis
Y Y Y
Y
Y
MachineMachine ManpowerManpower
MethodMethod MaterialMaterial
Mother NatureMother Nature
Problem or
Desired
Outcome
Problem or
Desired
Outcome
MeasurementMeasurement
Gemba and Waste Walks
Visual Observations
Baseline Measures
Idea Generating
Brainstorming
Affinity Diagram
Fishbone Diagram
5 Why’s
37. Future State Goals
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• This process closes the loop from the
intended objectives of the project to the
detailed opportunities for improvement.
• This approach also engages the entire
team in reaching consensus on
creating the improvement plan.
• A method used to capture specific
goals to accomplish in the future state,
based on the results of Define,
Measure and Analyze output.
• A way to link Charter objectives, and
Critical to Satisfaction measures to
potential improvements.
• As you transition from the Analyze
phase to the Improve phase to
provide guidance on developing
improvement opportunities.
When to Use It
What is It?
Objective or Purpose
39. What do we want to know from the IMPROVE Phase?
– How to develop specific solutions to implement
proposed improvements.
– How to apply Lean concepts to optimize the new
process by:
• Improving flow and level-load work
• Creating pull systems where needed
– How to develop a corrective final solution that and
develop a pilot to test the solutions to ensure
effectiveness and feasibility.
– How to implement the solution through an action
plan.
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40. Flow
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• In the Improve phase to optimize
the future state process and
deliver efficient and effective
solutions
• Used in conjunction with other
Lean concepts of level-loading
work and reducing set-up or
change-over time
• A Lean concept to optimize the ability
of materials, information, or product to
move seamlessly to the customer
• To streamline the improved process
• To ensure the new process maximizes
value-added activities and minimizes
waste
• To define optimal information flows and
minimize delays
• To minimize “batching”
When to Use It
What is It?
Objective or Purpose
41. Pull
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• In the Improve phase where
conditions for flow do not exist in the
Value Stream
• Material crosses different value
streams
• The process can not respond well to
spikes in demand
• Unreliable supplier lead-time
• Supplier lead-time is greater than
customer requirements
• A Lean concept to ensure
materials, information, or products
are issued at the customer
consumption pace.
• A means to synchronize our business
with the customers’ demand
• Pull is essentially a technique to
CONTROL the creation and movement
of material, services and information.
When to Use It
What is It?
Objective or Purpose
42. Push vs Pull
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Push
Work/materials are passed to the next
process step disregarding if they have
been requested or not by the
downstream process step/customer.
Pull
Work/materials are passed to the next
process step only when needed, in
the right quantity as requested by the
customer.
43. Pilot Planning
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• In the Improve phase to validate the
impact of proposed improvements
before proceeding to complete
implementation
• In the Control phase to fine-tune the
future state implementation
• A planning activity to define and
communicate plans for a pilot phase
implementation of suggested
improvements
• To learn what works and what doesn’t in
the proposed solution
• To identify what changes will help
improve the effectiveness of the solution
(“bullet-proofing”)
• Define preliminary control plans and
standard work for use in pilot
• Provide training and evaluate improved
process
When to Use It
What is It?
Objective or Purpose
45. What do we want to know from the CONTROL Phase?
– How to document procedures and create standard work for the new process.
– How to validate improvements and process capability using Visual Management.
– How to support , encourage, and drive adherence to the action plan and standard
work by all Stakeholders.
– How to communicate and recognize the successes of the team.
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46. Standard Operating Procedures
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• To ensure that all activity in a process
or procedure is consistently followed
(standardized) in order to ensure
reduced variation and ensured quality.
• SOPs are written instructions to
achieve uniformity of the
performance of a specific function.
• A written document detailing all
relevant steps of a process or
procedure. The International Quality
Standards Board (ISO) requires such
written documents.
• For most processes and
procedures. Always when the
process or procedure is regulated.
When to Use It
What is It?
Objective or Purpose
47. Standard Work
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• To ensure that best work practices are
standardized and followed by everyone
thus ensuring maximum process
efficiency and quality.
• To enable more effective and efficient
training of new personnel
• A method of documenting best work
practices. There are four steps to
implementing a standard work process:
1. Identify and define the best practice, that
delivers a quality result, consistently.
2. Document the activities for performing the best
practice, and make it visual using combination
of pictures and text
3. Place it at each work station where this
process is being performed.
4. Train the employees to do the tasks as defined
in the Standard Work document.
• During the improve/control phase
of a project to ensure that new
processes are executed properly
and consistently
When to Use It
What is It?
Objective or Purpose
48. Visual Management
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• Employee involvement and motivation
• Open communication
• Quality and productivity improvement
• Safe working environment
• Faster decision process
• Enables a High Performance
Organization
• Daily/Weekly/Monthly depending
on need of review.
• Visual methods to convey information so it
is easily accessible to those who need it
When to Use It
What is It?
Objective or Purpose
49. Leadership Standard Work for Measurement Systems
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• Provides for Routine and Continuous
Improvement guidelines
• Forum for Corrective actions
• A method for management that is
structured, simple and informative
• Closed loop system to validate
improvements and corrective action.
• A set of guidelines and tasks for
leaders to engage employees in the
review of performance measures.
• Throughout your improvement
efforts, as you probe for root
causes to problems/defects.
When to Use It
What is It?
Objective or Purpose
51. Senior Leadership Next Steps
• Decision on taking the journey of LeanSigma
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52. Sun Tzu quotes in The Art of
Warfare (513BC) :
“All men can see the tactics
whereby I conquer, but what
none can see is the strategy out
of which victory is evolved”.
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53. POLICY DEPLOYMENT
The development and deployment of strategy.
Strategy is translated into a ‘critical few
objectives’ which are used to align and engage
resources throughout the organization in
selected areas. (Do the right things.)
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54. What is Policy Deployment
• Determine Vision and Direction
• Communicate Strategy, Goals and Objectives
• Identify Key Stakeholders Needs
• Translate Goals Into Specific Activities
• Determine Critical Organizational Issues
• Target Areas for Breakthrough Improvement
• Attain Organization-Wide Participation
• Continuously Review Progress
• Provide Feedback
• Standardize Systems
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55. How do we deploy policy?
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Voice of the
Customer
Voice of the
Business
Voice of the
Employee
Prioritize Critical Issues
Set Goals, Indicators &
Targets
Charter Projects to
Contribute to Goals
Use Process
Management to
Identify
Improvements &
Maintain Gains
Management Review
56. How to link to Process Improvement
and Process Management
• Once goals are deployed, each Business Unit is
asked to contribute to meeting the goals and
targets.
• Existing processes are examined to determine if
each is capable of meeting desired goals.
• Improvement plans are developed for processes
that are not capable of meeting deployed goals.
• Process improvement plans are resourced,
implemented and reviewed against deployed
goals and targets.
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57. Summarizing Lean Six Sigma Management
Principles
• Prioritizing strategic and operational objectives linked to Stakeholders
(Shareholders, Customers, Employees, Suppliers)
– Strategic and operational alignment (vertical alignment)
• Focusing on core processes that connect to the realization of prioritized
objectives
– Process management (horizontal alignment)
• Improving continuously
– Plan-Do-Check-Act (PDCA) cycle
• Data-driven management also making use of experience and intuition
– Decision making and action planning
• Aligning relevant systems with the desired behaviors to sustain the
improvement initiative
– Project management, reward & recognition, communication, management
review, performance appraisal, selection, promotion, training, management
accounting, etc.
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58. Thank You
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