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March19th,2010
EmbraerDay
IndustrialOperationsOverview
ArturCoutinho
IndustrialOperations
EmbraerDay2008
•P3ELaunch-EmbraerEnterpriseExcellenceProgram
•ProductionBottlenecksManagement
•InvestmentsinExistingSites
•ProductionReadinessforPhenom100Ramp-up
•AutomationInitiativesPlanning
•IntroductionofLeanConcept
•LeanInitiativesResults
•LookingtotheFuture
EmbraerDay2008
•P3ELaunch-EmbraerEnterpriseExcellenceProgram
•ProductionBottlenecksManagement
•InvestmentsinExistingSites
•ProductionReadinessforPhenom100Ramp-up
•AutomationInitiativesPlanning
•IntroductionofLeanConcept
•LeanInitiativesResults
•LookingtotheFuture
EmbraerEnterpriseExcellenceProgram
TransformationManagement
Lean
Enterprise
LeadershipPeople
Macro-StrategyCulture
Executive
Committee
EmbraerEnterpriseExcellenceProgram
Culture–EmbraerValues
EmbraerEnterpriseExcellenceProgram
2009EmployeeClimateSurvey
HighLevelofEmployeeSatisfaction
360ºLeadershipSurvey
TechnicalExpertiseBusiness
Management
Managementby
Results
FocusonCustomerPeopleManagementTeamworkBehavior"Lean"Thinking
3.303.30
3.203.20Target(80%)
Embraer’sResult
MaximumRate4.004.00
EmbraerDay2008
•P3ELaunch-EmbraerEnterpriseExcellenceProgram
•ProductionBottlenecksManagement
•InvestmentsinExistingSites
•ProductionReadinessforPhenom100Ramp-up
•AutomationInitiativesPlanning
•IntroductionofLeanConcept
•LeanInitiativesResults
•LookingtotheFuture
1Q07–BottlenecksManagement
Flight
Preparation
Flight
Preparation
Sub-Assy
BOT
Sub-Assy
BOT
StructuralandFinalAssemblyStructuralandFinalAssembly
SheetMetal
SJK
SheetMetal
SJK
SheetMetal
BOT
SheetMetal
BOT
CabinetryShop
GPX
CabinetryShop
GPX
DeliveriesDeliveries
FinalAssy.FinalAssy.Fuselage
Equipage
Fuselage
Equipage
Matingand
Complem.
Matingand
Complem.SegmentsSegments
WingAssy.
1Q10–BottlenecksManagement
Flight
Preparation
Flight
Preparation
TubingTubing
LaborLabor
OutsourcingOutsourcing
PaintingPainting
MachiningMachining
Sub-Assy
BOT
Sub-Assy
BOT
StructuralandFinalAssemblyStructuralandFinalAssembly
ChemicalMillingChemicalMilling
SheetMetal
SJK
SheetMetal
SJK
HarnessHarness
SuppliersSuppliers
SheetMetal
BOT
SheetMetal
BOT
CabinetryShop
GPX
CabinetryShop
GPX
CompositeComposite
DeliveriesDeliveries
FinalAssy.FinalAssy.Fuselage
Equipage
Fuselage
Equipage
Matingand
Complem.
Matingand
Complem.SegmentsSegments
WingAssy.WingAssy.WingEquipageWingEquipage
PhenomPhenomFamilyFamily
Fuselage
Equipage
Fuselage
EquipageFinalAssy.FinalAssy.Matingand
Complem.
Matingand
Complem.SegmentsSegments
ERJ145PlatformERJ145Platform
WingAssy.WingAssy.WingEquipageWingEquipageTankAssy.TankAssy.
E170/190
FinalAssy.Line
E170/190
FinalAssy.Line
Fuselage
Equipage
Fuselage
EquipageFuselageMatingFuselageMating
WingEquipageWingEquipageE170WingE170Wing
SegmentsSegments
WingEquipageWingEquipage
E170/190/Lineage1000E170/190/Lineage1000
E190WingE190Wing
Bottlenecks
Attention
UnderControl
EmbraerDay2008
2007-2008BotucatuPlant–Investments
BOTPlantExpansion
SkinPanel
Fabrication
Hangar
BotucatuPlant:2008-2009Highlights
Newsheet
metalfacility
Phenom100&300
structuralassembly
Panelsstructural
assembly
NewSheetMetalFacility
100%Operational100%Operational
PaintingPainting
ChemicalMillingChemicalMillingStretchFormingStretchFormingStringerMillingStringerMilling
ThermalTreatmentThermalTreatmentCNCFinishingCNCFinishing
Phenom100&300WingAssembly
3Q093Q09
PhenomPhenom100&300structuralassemblyhangars:Fullrateproduction100&300structuralassemblyhangars:Fullrateproduction
Phenom100&300ProductionReadiness
EmbraerDay2008
•P3ELaunch-EmbraerEnterpriseExcellenceProgram
•ProductionBottlenecksManagement
•InvestmentsinExistingSites
•ProductionReadinessforPhenom100Ramp-up
•AutomationInitiativesPlanning
•IntroductionofLeanConcept
•LeanInitiativesResults
•LookingtotheFuture
AutomationInitiatives(2/3)
AutomationInitiatives(3/3)
UltrasoundRobotUltrasoundRobot
OperationalsinceJan/10OperationalsinceJan/10
PlannedPlanned ImplementedImplemented
PhenomPhenom100EHDrilling100EHDrilling
Robot:Robot:OperOper.sinceDec/08.sinceDec/08
Monorail:Monorail:OperOper.sinceMay/09.sinceMay/09
FullyautomatedSurfaceTreatmentLine
AutomationInitiatives-ELEB
EmbraerDay2008
•P3ELaunch-EmbraerEnterpriseExcellenceProgram
•ProductionBottlenecksManagement
•InvestmentsinExistingSites
•ProductionReadinessforPhenom100Ramp-up
•AutomationInitiativesPlanning
•IntroductionofLeanConcept
•LeanInitiativesResults
•LookingtotheFuture
LeanPhilosophyConcepts
Continuousflow
Oneshipsetflow
PullSystem
Materialsclosetothepointofuse
Workingcell
Setuptimereduction
VisualManagement(AndonPhilosophy)
Zerodefect
PokaYoke
Movingtooling(lines)
Nomanualhandling
Actionstoeliminatethe7wastes
Inappropriate
Processing
Rework
Over
Production
Inventory
Waiting
Time
Excessive
Material
Handling
Operator
Movement
7Wastes
LeanResults–KaizenProjects
KaizensProject
0
200
400
600
800
1.000
1.200
2007200820092010
1,057Kaizenprojects
uptoMarch17th,2010
SignificantIncreaseinSignificantIncreasein
NumberofNumberofKaizensKaizens
CustomerSupport
Engineering
Administrative
IndustrialOperations
LeanResults–ContinuousImprovementCells
0
100
200
300
400
TotalLaunchQualificationBronzeSilver
NumberofCells
2010targetAchieved!
LeanResults–EJetsFinalAssembly
LeanResults–EJetsFinalAssembly
13docks,decentralizedoperations13docks,decentralizedoperations
dock
2008
LeanResults–EJetsFinalAssembly
SignificantsimplificationofproductionflowSignificantsimplificationofproductionflow
Transition–1Q09
dock
LeanResults–PartsSupplyImprovements
CurrentCurrentBeforeBefore
LeanConceptappliedtoStorageandPartsSupplyLeanConceptappliedtoStorageandPartsSupply
LeanResults–PartsSupplyImprovements
Material/ToolsStorageUseofKits/FlowRacks
CurrentCurrentBeforeBefore
LeanResults–ProductionSequencing&RFID*
RFIDSystemRFIDSystem
*RadioFrequencyIdentification*RadioFrequencyIdentification
EJetsEJetsFinalAssemblyLineFinalAssemblyLineLegacy650FinalAssemblyLineLegacy650FinalAssemblyLine
LeanResults–“ZeroMissingItems”Program
KeyfactorforreducingproductioncycleKeyfactorforreducingproductioncycle
1H072H071H082H081H092H09
85%
PNsPNs
200720082009
SignificantcostandwastereductionSignificantcostandwastereduction
LeanResults–ManufacturingQualityImprovements
89%
NonNon--Conformities(monthlyaverage)Conformities(monthlyaverage)
57%
LeanResults–InventoryEvolution
LeanResults–OvertimeReduction
jan
feb
mar
apr
may
jun
jul
agu
sep
oct
nov
dec
jan
feb
mar
apr
may
jun
jul
agu
sep
oct
nov
dec
jan
feb
mar
apr
may
jun
jul
agu
sep
oct
nov
dec
200820092010
Planned
SignificantOvertime
Reduction
EmbraerDay2008
•P3ELaunch-EmbraerEnterpriseExcellenceProgram
•ProductionBottlenecksManagement
•InvestmentsinExistingSites
•ProductionReadinessforPhenom100Ramp-up
•AutomationInitiativesPlanning
•IntroductionofLeanConcept
•LeanInitiativesResults
•LookingtotheFuture
RecentlyLaunchedIndustrialUnits
Melbourne,
Florida
Évora,
Portugal
•Phenom100&300
FinalAssemblyLine
•CompletionCenter
•PaintBooth
•CustomerCenter
•Compositeand
MetallicCentersof
Excellence
•StateoftheArt
ManufacturingProcess
•NewTechnologiesApplication
MelbourneMelbourne
ÉÉvoravora
MetallicComposite
PaperlessEnvironment
ProposedProposedCurrentProcessCurrentProcess
DigitalMock-up
2DDrawing
Paperless
Environment
DigitalInterfaceDigitalInterface
CEsConstructionStatus–Jan/10
ThankYou!
ReadytoTakeoff!

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Industrial Operations