The document summarizes the processes and results of Rolls-Royce's Santa Cruz plant in Brazil, which assembles and tests turbo power generators for offshore oil rigs. Key points: - The plant delivered on its customer expectations around safety, on-time delivery, quality, supply chain agility and local content targets. It achieved record safety performance and was on or below cost targets. - Through implementing Rolls-Royce's operational excellence strategies around standardization, continuous improvement, visual management and a focus on people, the plant recovered from an initial 180 day delay and is now delivering consistently on schedule. - Results showed improvements in various metrics like utilization, productivity, costs, inventory, and customer

1. “Processes Shielding”

4. Manufacturing Engineers team
Iuri Gribel
Sergio Boiko
Ricardo Militerno
Thais Franco

5. CASE STUDY
Energy Turbogenerator Plant
BRAZIL
ENERGY DIVISION - NEW EQUIPMENTS

6. Separeted from Rolls-Royce Motors cars since 1971
WHAT WE ARE NOT

7. ROLLS-ROYCE - FOUR BUSINESS SECTORS
Civil Aviation
Marine
Defense Aviation
Off Shore Energy
All Utilizing common technology across sectors

8. A
FÁBRICA

9. SANTA CRUZ PLANT
• The factory of Rolls-Royce located in Santa Cruz - Rio de Janeiro was the
first factory in South America designed to assemble and test turbo power
generators for the pre-salt. Contracted by Petrobras for power generation in
eight oil rigs to support TUPI project.
• Land area - 103,000 square meter
• Initial investment - USD100M
• 114 total employees (direct employment and third party)
• Capacity Implemented for assembly and test;
 10 to 14 RB211 packages per year
 operating in one shift.
 full capacity utilization – 40%

10. Artistic vision of Santa Cruz Plant
Factory office: production, purchasing, PCP,
materials, foreign trade, service, financial,
quality and SMS
Assembly Test
Test Hall
Loading Bank
Utilities

11. CUSTOMER VOICE

12. CUSTOMER EXPECTATIONS
• HSE in full
• On Time Delivery
• Delivery Quality as contracted
• Tests on time and in accordance - Customer witness &
certified by external body
• Agile supply chain – quick recovery
• Achieve local content target
How To align expectations between client and company?

13. The Organizational
Culture

14. IMPERATIVES OF ROLLS-ROYCE STRATEGY

15. Mission :
Deliver products and services
industry leaders
Delivering to customers what
they expect
As a result, generate a profitable and
growing contribution to the company and
stakeholders
Achieving business excellence
Positioning the business to grow
Vision:
Be the first choice of
customers in solutions
for power distribution
and compression
systems.
.
People engaged and winning together
ROLLS-ROYCE MISSION AND VISION

16. OPERATIONAL EXCELENCE - PLANT STRATEGY
• Safety always come first
• Customers define value
• It is our responsibility to create value
• People - respect, challenge, training and develop
• Standardize - always
• We built our quality internally based on:
1. Decision based on facts & data, having long term perspective
2. Consider all available options and risks
3. When problems arise, we fix it immediately. Never a known error is
tolerated or repeated
4. Value do right first time
5. Develop a culture focused on make things happen

17. PLANT VALUES AND BELIEFS
Values– Integrity, reliability and innovation
Boosters– Dynamic, high-performance focusing on results
Beliefs:
• Build confidence through trust-based relationships
• Develop people in order to develop business
• The greater our vision, the bigger our success chances
• To achieve goals having great professionals working & winning together
• Put Passion in what you do
• Well-prepared professionals produces excellent results
Plant Vision: To delivery operational excellence in project execution, low
cost, right quality and on-time delivery

18. CULTURE IMPLEMENTATION
How to align culture elements with delivering results in an OPEX
environment?
• Raise awareness by training;
• Walk the talk to develop trust & respect;
• Map competence and skills out – Bridge it by
closing gaps;
• Train leadership in lead by example;
• Celebrate results;
• Communicate with transparency & frequently

19. PLANT PRINCIPLES LETTER
HSE – Safety comes first
Delivery – meet customer expectation
Quality – do right first time
Costs – do more with less
Continous Improvement - always
People – committment & engagement
Work Environment – nice place to work

20. THE PEOPLE

21. THE PEOPLE

22. SKILLS AND ABILITIES CONSTRUCTION
People in the right
place!
Empowerment
Evaluation and
selection center
Personal Development
LeadershipCommitment
SENAI
Technical
Training

23. SEARCH EMPLOYEES/ TALENTS
• People with sufficient level of competence to the business;
• Good balance of cost;
• Mixed team of young and experienced;
• Psychological profile and leadership aligned with the
business.
All engaged in the challenge of being part of the setup of the first
Brazilian plant power turbo generators.

24. vcan
TECHNOLOGY TRANSFER
HSE
Manufacturing
Engineering
Quality
Planning
Logistics
Foreign Trade
Purchasing
Finance
Operational Training
Management Training
Know How Transfer

25. THE PRODUCTION PROCESS

26. FEATURES OF THE PRODUCTION PROCESS
• Each project is a unique product
• Long production cycle
• Assembly and test labor-intensive process
• Sequence of activities with little repetition
• High raw materials costs
• Many number of components and high dependence on the material flow
• High dependency in planning and control

27. ENERGY BUSINESS PRODUCT
Turbine - RB211 – 32MW
• The generation package is powered by a RB211 turbine. Package is assembled and
tested in Santa Cruz plant to meet the FPSO pre-salt platforms (floating production,
storage & offloading vessels) - TUPI project requirements.
• Four RB211 packages provides energy to gear one FPSO
Divisão Energia - Novos equipamentos

28. TURBOGENERATOR PACKAGE RB211
1
2
3
4 5
6
7
8
9
1- Air in Taken
2- Gas Generator Turbine
3- Base Plate
4- Combustion Chamber
5- Power Generator Turbine
6- Gear Box (reduces rotation)
7- Generator
8- Cooling System
9- Exhaust Chamber/Ducts

29. PHILOSOPHY OF INDUSTRIAL MANAGEMENT
Divisão Energia - Novos equipamentos

30. Rolls-Royce Quality Management System
Leadership
Process Basics
Process Control
Journey to Process Excellence
ContinuousImprovementStandardisation
Capable Empowered People
LEAN SIX SIGMA
ProcessFlow
ProcessCapability
Rolls-RoyceProductionSystem
Rolls – Royce Production system – Integrated Management System
ISO 9001 + ISO 14001 + OSHAS 18001
Lean manufacturing + Six Sigma
OPERATIONAL EXCELENCE

31. ESTRATIFICAÇÃO DA ESTRATÉGIA
Policy Deployment
Level 1
Executive
Level 2
Intermediate
Level 3
Operational
•HSE (LTIFR, TRIR)
•Cost of Non Quality
•Customer Master Production Schedule (MPS)
•Standard hour cost
•HSE Programs /Number of non-
compliant
•Cycle Time / Productivity
•Timeout load release (air / sea)
•Utilities Costs
•Safety Daily dialogue / Near miss
•Capture problems (WHO);
•Communication Cell
•Overtime and Turnover

32. Results
Execution
TOP
DOWN
BOTTOM
UP
ESTRATEGY POLICY DEPLOYMENT

33. RESULTS

34. OPERATIONAL LEVEL KPIS
Communication
Cell
Logistics Board Materials Board
Overtime Turnover

35. 2
3 4 4
62 60 60
57
53
48 44
3%
8%
15%
21%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
AP01 AP02 AP03 AP04 AP05 AP06 AP07 AP08 AP09 AP10 AP11 AP12
TURNOVER
# Dismissal # Employees (budget)
# Employees (actual) % Turnover (Cumulated)

36. OVERTIME
0,12
0,62
2,50
0,94
0,26
1,54
3,56
1,51
0,71
1,31
5,00
0,00
2,00
4,00
6,00
8,00
10,00
% Overtime 2015
%
Meta

37. INTERMEDIARY MANAGEMENT
Utilization Inventory Productivity
Foreign Trade Utilities

38. Divisão Energia - Novos equipamentos
5%
43%
49%
75%
58%
40%
24%
77%
100% 101%
89%
43%
84%
98% 96%
117%
103% 103%
95%
100%
96%
109%
105%
33%
0%
20%
40%
60%
80%
100%
120%
140%
Monthly Actual Cumulative Forecast Cumulative Actual
UTILIZATION

39. Foreign Trade
Total Time – Cargo Arrival in Brazil vs Load
Air – 2014 - 2015
Divisão Energia - Novos equipamentos

40. Divisão Energia - Novos equipamentos
PRODUCTIVITY

41. 41
0
20
40
60
80
100
120
Mar Apr May Jun Jul Aug Sep Out
Horas
Retrabalho
Retrabalho

42. EXECUTIVE MANAGEMENT
HSE (LTIFR,
TRIR)
Cost of Non
Quality
Customer Delivery
Program (MPS)
Hourly
Standard

43. CUSTOMER DELIVERY PROGRAM

44. PERFORMANCE BOARD SANTACRUZ
PROCESSES SHIELDING

45. VISUAL MANAGEMENT
BEFORE AFTER

46. ASSEMBLY HALL

47. TEST HALL

48. FINAL RESULTS - SAFETY
862
31/12/2015

49. FINAL RESULTS – LEARNING CURVE
Learning
Curve
Start Up
Construction
Completion
Ramp up &
learning curve
Steady
state
Aug to Dec
2013
Jan to Mar
2014
May
2014
Apr to Sept
2014
Oct
2014
Ongoing
2015
Learning curve achieved in the third mounted driver or in three months time

50. Supplier Payments
Commercial
Invoice approval
AWB Approval
K&N Management
Export
consolidation
Custom backlog
Blue Line Approval
Broker
requirements
FSC Management
Unverified Invoices
NF Approval
GR Backlog
Picks Parts against
TO
Sizing sort string
align to build
Confirm TO
Indirect
Scope
Storage space
CEVA Management
Supply
Management
Shipping
Management
Customs
Management
Goods Receipt
Goods
Issue/TO
Material
Handling
Inventory Impact
Supplier Payments
Scheduling/
Incoming Inventory
MTV consolidation
C Class solution
Focus List
AlexAleandroAlmir
Priority list update
Daart Board
updates
Supplier contracts
renegotiation
Control software
for importation
SUPPLY CHAIN MAPPING - BEFORE

51. Supplier Payments
Commercial
invoice approval
AWB Approval
K&N Performance Export
consolidation
Customs Backlog
Blue Line Approval
Broker
Requirements
FSC
Performance
Unverified Invoices
NF Approval
GR Lead time
Picks Parts against
TO
Sizing sort string
align to build
Confirm TO
Indirect
Scope
Storage space
CEVA Management
Supply
Management
Shipping
Management
Customs
Management
Goods Receipt
Goods
Issue/TO
Material
Handling
Delivery to Customer
Major Buys
Payments
Supply & Demand
Alignment
RRESI
Shipments
C-Class Solution Focus List
Aleandro
(Logistics)
Aleandro
(Planning)
Almir
Priority list update
Supplier Contracts
Renegotiation
Control Software
for importation
Prep to Ship Area
Inventory Accuracy
On Time Inbound
Delivery
Raw Materials
Inventory Value
C-Class Local
Supply
Suppliers Payments (no
major buys)
RRESI Sub-Assy
Consolidation
SUPPLY CHAIN FINAL RESULTS – AFTER

52. FINAL RESULTS - DELIVERY
Since the P69 that the delivery date promised to customer has being achieved – no rebase line
P68 P69 P70 P71 P72 P73
First FPSO
assembled and
tested in Santa
Cruz

53. FINAL RESULTS – LOCAL CONTENT
Meta Projetado
P-66 Unit 1 35.0% 49.3%.
P-66 Unit 2 35.0% 49.8%
P-66 Unit 3 35.0% 51.1%
P-66 Unit 4 35.0% 49.6%
P-67 All Units 37.0% 45.9%
P-68 All Units 39.0% 47.5%
P-69 All Units 41.0% 48.9%
P-70 All Units 43.5% 48.9%*
P-71 All Units 46.0% 48.9%*
P-72 All Units 48.5% 49.5%*
P-73 All Units 51.0% 70.0%*

54. CUSTOMER SATISFACTION
May, 2015

55. FINAL RESULTS – CUSTOMER SATISFACTION
NPS
SCORE
How likely would you be to
recommend Siemens
ADGT to others?
<i>0-6 = Detractor
(Unlikely to recommend
Siemens ADGT), 7-8 =
Passive, 9-10 = Promoter
(Likely to recommend
Siemens ADGT)</i>
How satisfied are
you with the
following? The
performance of
our employees in
supporting your
needs?
How satisfied are
you with the
following? Our
responses to
your questions or
queries?
How satisfied are
you with the
following? The
overall value of
our product or
service?
How satisfied are
you with the
following? The
delivery of your
Siemens ADGT
product or
service?
How satisfied are
you with the
following? The
quality of our
product or
service?
How satisfied are
you with the
following? The
reliability of our
product or
service?
8 9 8 8 7 7 9 8
9 10 8 8 9 7 8 8
9 10 9 9 9 9 9 9
8 9 9 8 9 8 9 9
10 10 10 10 10 9 10 10
9 10 9 9 9 8 8 8
10 10 10 10 9 10 9 9

56. FINAL RESULTS – COSTS REDUCTION
What ? How
Much?
Production Capacity Utilization + 40%
Productivity gains + 23%
LNG consumption - 10%
Electrical Power demand and consumption ( includes Price increase) - 16%
Electrical power consumtion ( usage only) - 30%
City water consumption - 50%
Storage costs at customs port or airport - 54%
Site overtime ( zero overtime in the admistration) - 72%

57. HOW WE CELEBRATE...

58. YELLOW BELT WINNERS 2014

59. SAFETY CHAMPIONSHIP
Monthly award for
the best of the
month

60. HOW DO WE COMUNICATE INTERNALLY…

61. In summary we delivered
Customer Expectations set out when started off
• HSE in full - Delivered
• On Time Delivery – Recovered 180 days lost - Delivered
• Delivery Quality as contracted - Delivered
• Tests on time and in accordance - Customer witness &
certified by external body - Delivered
• Agile supply chain – quick recovery - Delivered
• Achieve local content target - Delivered
NPS
SCORE
8
9
9
8
10
9
10

62. •HSE (LTIFR, TRIR) – record of 862 days LTIFR
•Cost of Non Quality – below target in 20%
•Customer Master Production Schedule (MPS) –
on time delivered – recovered 180 days delay
•Standard hour cost – 7,3% below target
In summary we delivered business expectations
as defined at initial stage
Level 1
Executive
Plant vision was: To delivery operational excellence in project
execution, low cost, right quality and on-time delivery

63. We pray as if everything depended
on God
We work as if everything depended
on us