2005* Embraer Day Industrial Operations Presentation (DisponíVel Apenas Em InglêS)

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  • 1. Industrial Operations Artur Coutinho November, 18th 2005 Executive Vice President – Industrial Operations
  • 2. Embraer Units São José dos Campos – Faria Lima Botucatu - Neiva Brazil Gavião Peixoto Eugenio de Melo São José dos Campos Botucatu ELEB 5.4 million ft 2 3.0 million ft 2 Gavião Peixoto Eugênio de Melo ELEB – Embraer / Liebherr 180 million ft 2 3.7 million ft 2 0.3 million ft 2
  • 3. Faria Lima Plant Main Activities Main Activities - -Final assembly Final assembly ERJ 145 family ERJ 145 family Legacy Legacy EMBRAER 170/190 family EMBRAER 170/190 family - -Parts manufacturing Parts manufacturing Machining Machining Composites Composites
  • 4. Eugênio de Melo Plant Main Activities: Main Activities: - -Tooling Tooling - -Tubing Tubing - -Harness Harness Tooling Tubing shop Harness shop
  • 5. Botucatu Plant Center of Competence for Fuselage Panels Previous access Additional area for growth Main Activities: Main Activities: - -Structural Assembly Structural Assembly Fuselage Panels Fuselage Panels Doors Doors - -Parts manufacturing Parts manufacturing Sheet metal Sheet metal Panel Structural Assemblies CNC Riveting Machine
  • 6. Gavião Peixoto Plant ALX Final assembly Line F5BR Final assembly Line Main Activities: Main Activities: - -Final Assembly for Defense Final Assembly for Defense ALX ALX F5BR F5BR Cabinet Shop - -Cabinet Production Cabinet Production
  • 7. Supply Strategy Supplier Base Customer Base
  • 8. Supply Strategy • 4 partners • 16 partners • 350 suppliers • 22 suppliers
  • 9. Supply Strategy 16 Risksharing Partners GAMESA HAMILTON SUNDSTRAND 22 Suppliers Empennages & Rear Fuselage Tail Cone & APU EMBRAER( LEADER) KAWASAKI / SONACA System Partners: Wing, Stub, Control Surfaces & Pylon HAMILTON Air Management SUNDSTRAND LATECOERE Electrical System Center Fuselage LATECOERE PARKER Hydraulics Center Flight Controls Fuselage III Fuel System C&D Interiors LIEBHERR Landing Gear EMBRAER / AKROS Center Fuselage II HONEYWELL Avionics EMBRAER EMBRAER / AKROS GE Forward Fuselage Wing to Fuselage Fairing Engine/ Nacelles
  • 10. Supply Strategy Global Suppliers are coming to Brazil Brazilian Content: Faster response time Reduced cycles Base for exports
  • 11. Industrial Operations Focus • Productivity • Quality • The easiest way • Attitude • The lower cost • Product reliability • On time deliveries • Flexibility • At the right cost • The shortest time to market • The latest product customization
  • 12. Manufacturing Strategies Time-To-Market: Manufacturing Cycle Reduction Mtg. 1 Mtg. 1 Mtg. 2 Mtg. 3 Mtg. 4 Mtg. 4 Responsiveness 1º C.C. 2º C.C. UEL UEL Process Obj. Obj. Capability LEL LEL Stock Turn Over M/h Evolution: 8,0 7,0 6,7 40 ERJ 145 EMBRAER 170 6,0 Real MAP 38 150.000 35 Costs Reduction 5,0 4,4 - Meta (média anual 2004) = 23.000 Hh 33 - Real (média out/04) = 21.295 Hh Horas (x 1.000) 4,0 30 100.000 3,0 28 Hh . 25 2,0 50.000 23 ALMOX. AERON. PROCESSO TOTAL 1,0 20 0 18 12 13 15 16 23 30 31 32 33 40 41 42 43 49 50 51 52 58 59 60 61 62 68 69 70 71 110 130 150 170 180 191 200 210 300 3 4 5 6 7 8 9 10 11 24 25 27 28 29 34 35 36 37 38 39 44 45 46 47 48 53 54 55 56 57 63 64 65 66 67 72 73 74 75 90 1 2 jun jun jun jun jun jun nov jan jan jan jan jan jan 0,0 dez dez dez dez set set set set set set set mar mar mar mar mar mar mai Real Plano de Recuper fev/02 abr/02 jun/02 ago/02 out/02 fev/03 abr/03 jun/03 ago/03 out/03 fev/04 abr/04 jun/04 ago/04 dez/01 dez/02 dez/03 Real c/ Hh não apontado Projeção N/S Projeção c/ Hh não apontado MAP 1998 1999 2000 2001 2002 2003 2004 Postponement: Configuration Cycle Primary Structural Final Manufacturing Parts Assembly Assembly Flexibility delivery month
  • 13. Continuous Improvement Program Control Empowered Visual 5S Kaizen Process Teams Management 2000 Today 2007 Kaizen BEFORE AFTER
  • 14. Production Cycle Improvement 9 8.0 8 ERJ-145 EMBRAER 170 7 6,5 6.0 6.0 Month 6 5,5 5 5 4,6 4,5 4 3,7 3,6 3,5 3,1 3 2,6 2 199 6 1997 1998 1999 2000 2001 2002 2003 2004 2005
  • 15. EMBRAER 170/190 Family Convertibility Convertibility (Days) EMBRAER 170 Convertibility (Days) EMBRAER 175 2005 2006 2007 Convertibility (Days) EMBRAER 190 2005 2006 2007 EMBRAER 195 2005 2006 2007 ✈ Improvement of production flexibility ✈ Faster response to market demand
  • 16. EMBRAER 170 – M/h evolution 200.000 160.000 120.000 80.000 Real Budget 40.000 Target 0 1 7 13 21 27 33 39 45 51 57 63 69 75 81 93 108 113 120 126 134 142 150 157 167
  • 17. Quality Management Main certifications: • ISO 9001 Quality Management System • AS 9100 Quality Management System – Aerospace Requirements • OHSAS 18001 Occupational Health and Safety Management System • ISO 14001 Environmental Management Systems • FAR Part 21 (Federal Aviation Regulation)