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Embraer

Industrial Architecture

        November 2006
Product portfolio

                                        ERJ 145 Series




      ERJ 135               ERJ 140                  ERJ 145 XR             ERJ 145


                                 EMBRAER 170/190 Series




   EMBRAER 170            EMBRAER 175          EMBRAER 190              EMBRAER 195


                Defense                                     Executive




    ALX                       AEW           Legacy            Phenom        Lineage
Product Evolution

    ‘70s        ‘80s              ‘90s                                ‘00s

                                                                                ERJ 140
                                                        ERJ 135
                                  BRASILIA
                                  (EMB 120)
                BRASILIA                                ERJ 145               ERJ 145 XR
BANDEIRANTE     (EMB 120)
(EMB 110/111)                     ERJ 135
                                                      EMBRAER 175            EMBRAER 170

                                  ERJ 140
                EMB 321                                                      EMBRAER 190
                                                      EMBRAER 195
  EMB 326                         ERJ 145

                                                      PHENOM 300              PHENOM 100
                                            ALX
                                         (EMB 314)
                  AMX
                            AMX                       LEGACY 600             LINEAGE 1000
  EMB 121
                             EMB 145 AEW&C                                   SUPER TUCANO
                                                     EMB 145 AEW&C
                 TUCANO
                (EMB 312)    EMB 145 RS/AGS                                      P-99
                                                     EMB 145 RS/AGS
                                                                                 AMX
Industrial
Operations
Manufacturing Processes
                      Raw Material                       Equipment                          Segments
        r
     lie
   pp
 Su




               Harness               Sheet Metal          Machining     Tubing               Composite
           n
     ic ts
         io
   br ar
       at
 Fa P




                   Sub-assembly                    Segments                      Fuselage
      bl al
    em ur
        y
 ss ct
A tru
  S




                  Painting              System Installation and Tests            Flight Preparation




                                                                                                         DELIVERY
         y
      m l
    se na
       bl
  As Fi
Embraer Units
                      São Paulo State

                                                 Unit – Gaviao Peixoto



                                                                         Unit – Eugênio de Melo

    Brazil

             Brazil            Unit – Botucatú

                                                                         Unit – Faria Lima
Embraer Units: Faria Lima

Located in São José dos Campos, São Paulo State.
Designs and manufactures aircraft for the commercial,
defense and corporate markets and provides after-sales support.

                                                                    Floor space: 296,191 m²
                                                             Employees at Faria Lima: 10,882
Embraer Units: Faria Lima (cont.)




                Milling              Sheet Metal Shop




          Composite Material        Digital Manufacturing
Embraer Units: Faria Lima (cont.)




          Structural Assembly       Fuselage Junction




                Painting            Final Assembly
Embraer Units: Eugênio de Melo
Located in Eugênio de Melo, a district of São José dos Campos
This unit has a total area of 343,400 m², of which 54,607 m² are industrial buildings used in the development
and manufacturing of tooling equipment and piping, as well as for performing welding, milling and wire
looming operations.


Number of employees at Eugênio de Melo: 1,595
Embraer Units: Eugênio de Melo (cont.)




 Tooling – Design & Manufacturing



                                    Harness




                                              Tubing
Embraer Units: Gavião Peixoto
Located in Gavião Peixoto, São Paulo State.
Manufacturing facility that will host the final assembly activities of the Company´s executive and defense
aircraft, as well as a runway for test flights.

Floor Space: 53,979 m²
Number of employees: 1,348 Start-up of operations in October 2001
Embraer Units: Gavião Peixoto (cont.)

Executive Interior Cabinets:




                                                      Legacy Interior




      Cabinets Assembly Area



                               Conclusion 2004 sept                     1.750 m2
Embraer Units: Gavião Peixoto (cont.)




             F5-BR Revitalization




                                        Super Tucano
           Assembly Hangar
Embraer Units: Botucatu
Embraer – Botucatu
The Indústria Aeronáutica Neiva manufacturing activities have been taken over by EMBRAER – Botucatu Unit,
which was incorporated on July 1, 2006. The following activities are performed at the Botucatu Unit: Ipanema
aircraft production, manufacture of parts and structures for the jets of the ERJ 145, EMBRAER 170/190 and Phenom
families, assembly of the Super Tucano fuselage structure, and manufacture of Ground Support Equipment tooling
and devices.
Neiva will remain responsible for Ipanema aircraft marketing activities, spare parts sales and agricultural aircraft
after-sales support.
                                                                     Total Area: 122,980 m²
                                                                     Floor space: 41,553 m²
                                                                     Number of employees: 1,396
Embraer Units: Botucatu (cont.)




   Montagem de Segmentos




                           Sheet Metal




                                         Plug Panel EMBRAER 170
Embraer Units: Botucatu (cont.)




                         Ipanema Álcool




    EMB202 - Ipanema                      Ground Support Equipment
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.




                                                                                                                                                                                     LSE                                                       LSE

    Process                                                                                                                                                                          Obj.                                                      Obj.

   Capability                                                                                                                                                                        LIE
                                                                                                                                                                                                                                               LIE




                   Inventory Turn Over
                    8,0


                                                                                                                                                                               6,7
                    7,0




     Costs          6,0



                    5,0
                                                                                                                                                                              4,4




   Reduction
                    4,0



                    3,0



                    2,0


                                                                                ALMOX. AERON.                PROCESSO TOTAL
                    1,0



                    0,0
                                   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




                                                      Postponement:                                                                                                                                                       Configuration Cycle
                   Primary                                                                                                     Structural                                              Final
 Manufacturing     Parts                                                                                                       Assembly                                                Assembly

   Flexibility
                                                                                                                                                                                                                                                      delivery

                                                                                                                                                                                                            month
Phenom™ 100
       and
 Phenom™ 300

Introducing a New
  Manufacturing
 Process concept
Phenom manufacturing concept

  • High performance line                             •   Bonded Warehouse
      • Maximize activities, sub-assemblies                • Inventory management
      • Components Assemblies in parallel with the         • Planning parameter
        line
      • “First in First Out”
  • Backflushing
      • Automatic deduction from inventory based on
        the Bill of Materials (BOM)
      • Reduce the number of manual transactions
Phenom manufacturing concept

  • Fixed Workcenter per employee
      • Acceleration of Phenom Assembly learning curve and maturity
      • Improving the quality of the product
  • Multi-functional employee, dedicated in the workcenter
      • Electric and mechanical assemblies done by the same employee
Phenom manufacturing concept

  • Visual Management
      • Padronization;
      • Easy performance evaluation;
      • Clear instructions;
      • Areas of material storage marked and defined;


  • Quality
      • Quality with Simplified Process;
      • Who does, he/she makes the quality (the operator does
        and it verifies);
Investments
      &
Manufacturing
  expansion
Production Ramp Up


 Embraer 170/190:                       70 to 78 Seats


      2006 -   Up to   08 ac/m
                                        78 to 86 Seats
      2007 -   Up to   12 ac/m
      2008 -   Up to   14 ac/m
                                        98 to 106 Seats



                                        108 to 118 Seats




 Phenom 100/300
      2008 2nd Half-   15 to 20 ac/y
      2009 -           120 to150 ac/y
Facilities Investments: few examples




  Final Assembly                   Surface
      Hangar                      Treatment




     Painting                      Chemical
      Shop                          Milling
Embraer Logistics
ASRS System: Automated System

    Automatic Storage and retrieval system for trays with integrated picking work
    stations
    Suitable for up to 500 pick-and-put moviments per man-hour
    Heigth: up to 6 m (8m Embraer Project)
Thank you

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Industrial EMBRAER DAY 2006

  • 2. Product portfolio ERJ 145 Series ERJ 135 ERJ 140 ERJ 145 XR ERJ 145 EMBRAER 170/190 Series EMBRAER 170 EMBRAER 175 EMBRAER 190 EMBRAER 195 Defense Executive ALX AEW Legacy Phenom Lineage
  • 3. Product Evolution ‘70s ‘80s ‘90s ‘00s ERJ 140 ERJ 135 BRASILIA (EMB 120) BRASILIA ERJ 145 ERJ 145 XR BANDEIRANTE (EMB 120) (EMB 110/111) ERJ 135 EMBRAER 175 EMBRAER 170 ERJ 140 EMB 321 EMBRAER 190 EMBRAER 195 EMB 326 ERJ 145 PHENOM 300 PHENOM 100 ALX (EMB 314) AMX AMX LEGACY 600 LINEAGE 1000 EMB 121 EMB 145 AEW&C SUPER TUCANO EMB 145 AEW&C TUCANO (EMB 312) EMB 145 RS/AGS P-99 EMB 145 RS/AGS AMX
  • 5. Manufacturing Processes Raw Material Equipment Segments r lie pp Su Harness Sheet Metal Machining Tubing Composite n ic ts io br ar at Fa P Sub-assembly Segments Fuselage bl al em ur y ss ct A tru S Painting System Installation and Tests Flight Preparation DELIVERY y m l se na bl As Fi
  • 6. Embraer Units São Paulo State Unit – Gaviao Peixoto Unit – Eugênio de Melo Brazil Brazil Unit – Botucatú Unit – Faria Lima
  • 7. Embraer Units: Faria Lima Located in São José dos Campos, São Paulo State. Designs and manufactures aircraft for the commercial, defense and corporate markets and provides after-sales support. Floor space: 296,191 m² Employees at Faria Lima: 10,882
  • 8. Embraer Units: Faria Lima (cont.) Milling Sheet Metal Shop Composite Material Digital Manufacturing
  • 9. Embraer Units: Faria Lima (cont.) Structural Assembly Fuselage Junction Painting Final Assembly
  • 10. Embraer Units: Eugênio de Melo Located in Eugênio de Melo, a district of São José dos Campos This unit has a total area of 343,400 m², of which 54,607 m² are industrial buildings used in the development and manufacturing of tooling equipment and piping, as well as for performing welding, milling and wire looming operations. Number of employees at Eugênio de Melo: 1,595
  • 11. Embraer Units: Eugênio de Melo (cont.) Tooling – Design & Manufacturing Harness Tubing
  • 12. Embraer Units: Gavião Peixoto Located in Gavião Peixoto, São Paulo State. Manufacturing facility that will host the final assembly activities of the Company´s executive and defense aircraft, as well as a runway for test flights. Floor Space: 53,979 m² Number of employees: 1,348 Start-up of operations in October 2001
  • 13. Embraer Units: Gavião Peixoto (cont.) Executive Interior Cabinets: Legacy Interior Cabinets Assembly Area Conclusion 2004 sept 1.750 m2
  • 14. Embraer Units: Gavião Peixoto (cont.) F5-BR Revitalization Super Tucano Assembly Hangar
  • 15. Embraer Units: Botucatu Embraer – Botucatu The Indústria Aeronáutica Neiva manufacturing activities have been taken over by EMBRAER – Botucatu Unit, which was incorporated on July 1, 2006. The following activities are performed at the Botucatu Unit: Ipanema aircraft production, manufacture of parts and structures for the jets of the ERJ 145, EMBRAER 170/190 and Phenom families, assembly of the Super Tucano fuselage structure, and manufacture of Ground Support Equipment tooling and devices. Neiva will remain responsible for Ipanema aircraft marketing activities, spare parts sales and agricultural aircraft after-sales support. Total Area: 122,980 m² Floor space: 41,553 m² Number of employees: 1,396
  • 16. Embraer Units: Botucatu (cont.) Montagem de Segmentos Sheet Metal Plug Panel EMBRAER 170
  • 17. Embraer Units: Botucatu (cont.) Ipanema Álcool EMB202 - Ipanema Ground Support Equipment
  • 18. 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. LSE LSE Process Obj. Obj. Capability LIE LIE Inventory Turn Over 8,0 6,7 7,0 Costs 6,0 5,0 4,4 Reduction 4,0 3,0 2,0 ALMOX. AERON. PROCESSO TOTAL 1,0 0,0 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 Postponement: Configuration Cycle Primary Structural Final Manufacturing Parts Assembly Assembly Flexibility delivery month
  • 19. Phenom™ 100 and Phenom™ 300 Introducing a New Manufacturing Process concept
  • 20. Phenom manufacturing concept • High performance line • Bonded Warehouse • Maximize activities, sub-assemblies • Inventory management • Components Assemblies in parallel with the • Planning parameter line • “First in First Out” • Backflushing • Automatic deduction from inventory based on the Bill of Materials (BOM) • Reduce the number of manual transactions
  • 21. Phenom manufacturing concept • Fixed Workcenter per employee • Acceleration of Phenom Assembly learning curve and maturity • Improving the quality of the product • Multi-functional employee, dedicated in the workcenter • Electric and mechanical assemblies done by the same employee
  • 22. Phenom manufacturing concept • Visual Management • Padronization; • Easy performance evaluation; • Clear instructions; • Areas of material storage marked and defined; • Quality • Quality with Simplified Process; • Who does, he/she makes the quality (the operator does and it verifies);
  • 23. Investments & Manufacturing expansion
  • 24. Production Ramp Up Embraer 170/190: 70 to 78 Seats 2006 - Up to 08 ac/m 78 to 86 Seats 2007 - Up to 12 ac/m 2008 - Up to 14 ac/m 98 to 106 Seats 108 to 118 Seats Phenom 100/300 2008 2nd Half- 15 to 20 ac/y 2009 - 120 to150 ac/y
  • 25. Facilities Investments: few examples Final Assembly Surface Hangar Treatment Painting Chemical Shop Milling
  • 27. ASRS System: Automated System Automatic Storage and retrieval system for trays with integrated picking work stations Suitable for up to 500 pick-and-put moviments per man-hour Heigth: up to 6 m (8m Embraer Project)