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1
Artur CoutinhoExecutive Vice-President
Industrial Operations
Embraer Day
Industrial Operations Overview
Nov 13th, 2007
2
Products Portfolio - Production and Development
EMBRAER 170
ERJ 145 Series
EMBRAER 170/190 Series
ERJ 135 ERJ 140 ERJ 145 XR ERJ 145
AEW
EMBRAER 175 EMBRAER 190 EMBRAER 195
ALX Legacy 600 Phenom 300
Defense Executive Jets
Lineage 1000
Under Development
Phenom 100
3
Industrial Operations
4
Global Business
• Operations in Brazil, United States, Europe and Asia
BrazilGavião Peixoto
BotucatuSão José dos Campos
Eugênio de Melo
FranceVillepinte
Le Bourget
SingaporeSingapore
USANashville
Fort Lauderdale ChinaBeijingHarbinPortugal
Alverca
5
BrazilBRAZIL
Location – Industrial Units
Five plants
Botucatu
Gavião Peixoto
São José dos Campos - (2 units)
São Paulo
Eugênio de Melo
São Paulo State
6
Embraer Units - Faria Lima Plant - SJK
6
7
Embraer Units - Faria Lima Plant - SJK
7
8
Embraer Units - Gavião Peixoto Plant - GPX
8
9
Embraer Units - Gavião Peixoto Plant - GPX
9
10
Embraer Units - Botucatu Plant - BOT
10
11
Embraer Units - Eugênio de Melo Plant - EGM
11
12
VOP Strategies
• Production Management and Investment
• VOP re-organization
• Productivity Improvement
• Lean
• Automation
13
VOP Strategies
• Production Management and Investment
• VOP re-organization
• Productivity Improvement
• Lean
• Automation
14
Industrial
Operation - VP
Industrial Op. Integration
Industrial Op. Planning
Gavião Peixoto Unit
Supply Chain Botucatu UnitFabrication SJK/EGM
Product Quality
Logistic and Control
CEO
Industrial Operations Organization - 2006
15
Industrial
Operation - VP
CEO
Logistic and Control
Gavião Peixoto Unit
Supply Chain Botucatu UnitFabrication SJK/EGM
Product Quality
Final Assembly
SJK
Industrial Op. Integration
Commercial Aviation
Industrial Op. Integration
Executive Aviation
Industrial Strategy
Industrial Operations Organization - 2007
16
• Production Management and Investment
• VOP re-organization
• Productivity Improvement
• Lean
• Automation
VOP Strategies
17
Bottlenecks (Feb 2007)
Flight Preparation
Tubing
Labor
Outsourcing
Painting
Machining
Sub - AssyBOT
Structural and Final Assembly
Others/New ProductsChemical
Milling
Sheet Metal SJK
Harness
Suppliers
Sheet Metal BOT
Cabinetry Shop
Composite
Deliveries
Final AssemblyFuselage Equipage
Mating and Complementation
Segments Phenom100/300
Ph100/300 Wing BOT
Wing EquipagePhenom100/300
Fuselage Equipage
Final AssemblyMating and
ComplementationSegments
Legacy/145
Legacy/145Legacy/145 Wing Wing Equipage
Underbelly Tank Assembly
E170 DockFuselage Equipage
Fuselage Mating E170/175
Wing EquipageE170 Wing - SJK
Segments E170/190/Lineage
E190 DockFuselage Equipage
Fuselage Mating E190/195
Wing Equipage
E170/190
E190 Wing - GPX
Bottlenecks
Under Control
18
Investment – Embraer 170/190
JUNMAIMAR APR JULFEBDEC JANNOVSEP OCTMAIAPRMARFEBJAN AUGJULJUN
2007 2008
Paint Booth Expansion F210
Paint Booth Upgrade F41
3 axis Dimensional Machine – Machining shop
Shot Peening – Machining shop
Calender – Sheet Metal Shop BOT
Router – Sheet Metal shop
Cadmium Treatment
5 axis Router - Composite
Laser Positioning System - Composite
Tubing Expanding Machine
Hangar Expansion - Wing 190 Assy
Router – Sheet Metal BOT
Riveting Machine– BOT
Detail Parts Paint Booth - BOT
Sheet Metal Shop Expansion - BOT
Surface Treatment – Tubing Shop
BOT
19
BOT Plant - E-170/190 Investment
Rivet Automatic Machining
CalenderStrech press
Examples
20
Investment – Embraer 170/190
JUNMAIMAR APR JULFEBDEC JANNOVSEP OCTMAIAPRMARFEBJAN AUGJULJUN
2007 2008
Paint Booth Expansion F210
Paint Booth Upgrade F41
3 axis Dimensional Machine – Machining shop
Shot Peening – Machining shop
Calender – Sheet Metal Shop BOT
Router – Sheet Metal shop
Cadmium Treatment
5 axis Router - Composite
Laser Positioning System - Composite
Tubing Expanding Machine
Hangar Expansion - Wing 190 Assy
Router – Sheet Metal BOT
Riveting Machine– BOT
Detail Parts Paint Booth - BOT
Sheet Metal Shop Expansion - BOT
Surface Treatment – Tubing Shop
SJK
21
SJK Plant - E-170/190 Investment
Router – Sheet Metal Paint Booth Expansion F210
Router - Composite Shot Peening
Examples
22
Investment – Phenom 100/300
NOVOCTJUL AUG SEPJUNMAIMAR APR DECFEBDEC JANNOVSEP OCTMAIAPRMARFEBJAN AUGJULJUN
2007 2008
Fuselage Skin Facility - BOT
Stretch Press – BOT
Sheet Metal Router - BOT
5 axis Router - Composite
Fabric Cutting Machine - Composite
Wiring Laser and Cutting Machine - Harness
Harness Test Machine
Flanging Machine - Tubing
Cabinetry Shop Extension
Veneer Room Upgrade
Router – Cabinetry Shop
Painting Booth - GPX
3 axis Ultrasound - Composite
Riveting Machine - BOT
Deburring Machine - BOT
Structural Assembly Hangar - BOT
Sheet Metal Shop Expansion - BOT
GPX
23
GPX Plant – Phenom 100/300 Investment
Phenom 100/300 final assembly hangar construction
Cabinetry shop extension
Examples
24
Investment – Phenom 100/300
NOVOCTJUL AUG SEPJUNMAIMAR APR DECFEBDEC JANNOVSEP OCTMAIAPRMARFEBJAN AUGJULJUN
2007 2008
Fuselage Skin Facility - BOT
Stretch Press – BOT
Sheet Metal Router - BOT
5 axis Router - Composite
Fabric Cutting Machine - Composite
Wiring Laser and Cutting Machine - Harness
Harness Test Machine
Flanging Machine - Tubing
Cabinetry Shop Extension
Veneer Room Upgrade
Router – Cabinetry Shop
Painting Booth - GPX
3 axis Ultrasound - Composite
Riveting Machine - BOT
Deburring Machine - BOT
Structural Assembly Hangar - BOT
Sheet Metal Shop Expansion - BOT
BOT
25
BOT Plant - Phenom 100/300 Investment
Sheet metal shop expansion
Riveting automatic machine
Fuselage skin facility
Structural assembly hangar
Examples
26
Investment – Phenom 100/300
NOVOCTJUL AUG SEPJUNMAIMAR APR DECFEBDEC JANNOVSEP OCTMAIAPRMARFEBJAN AUGJULJUN
2007 2008
Fuselage Skin Facility - BOT
Stretch Press – BOT
Sheet Metal Router - BOT
5 axis Router - Composite
Fabric Cutting Machine - Composite
Wiring Laser and Cutting Machine - Harness
Harness Test Machine
Flanging Machine - Tubing
Cabinetry Shop Extension
Veneer Room Upgrade
Router – Cabinetry Shop
Painting Booth - GPX
3 axis Ultrasound - Composite
Riveting Machine - BOT
Deburring Machine - BOT
Structural Assembly Hangar - BOT
Sheet Metal Shop Expansion - BOT
SJK
27
SJK Plant – Phenom 100/300 Investment
CNC 3 axis ultrasound Fabric cutting machine
Wiring laser and cutting machine Composite 5 axis router machine
Examples
28
Points of Attention (Oct 2007)
Flight Preparation
Tubing
Labor
Outsourcing
Painting
Machining
Sub - AssyBOT
Structural and Final Assembly
Others/New ProductsChemical
Milling
Points of Attention
Under Control
Sheet Metal SJK
Harness
Suppliers
Sheet Metal BOT
CabinetryShop
Composite
Deliveries
Final AssemblyFuselage Equipage
Mating and Complementation
Segments Phenom100/300
Ph100/300 Wing BOT
Wing EquipagePhenom100/300
Fuselage Equipage
Final AssemblyMating and
ComplementationSegments
Legacy/145
Legacy/145Legacy/145 Wing Wing Equipage
Underbelly Tank Assembly
E170/190
E170 DockFuselage Equipage
Fuselage Mating E170/175
Wing EquipageE170 Wing - SJK
Segments E170/190/Lineage
E190 DockFuselage Equipage
Fuselage Mating E190/195
Wing EquipageE190 Wing - GPX
29
Points of Attention (Oct 2007)
Flight Preparation
Tubing
Labor
Outsourcing
Painting
Machining
Sub - AssyBOT
Structural and Final Assembly
Others/New ProductsChemical
Milling
Points of Attention
Under Control
Sheet Metal SJK
Harness
Sheet Metal BOT
CabinetryShop
Deliveries
Final AssemblyFuselage Equipage
Mating and Complementation
Segments Phenom100/300
Ph100/300 Wing BOT
Wing EquipagePhenom100/300
Fuselage Equipage
Final AssemblyMating and
ComplementationSegments
Legacy/145
Legacy/145Legacy/145 Wing Wing Equipage
Underbelly Tank Assembly
E170 DockFuselage Equipage
Fuselage Mating E170/175
Wing EquipageE170 Wing - SJK
Segments E170/190/Lineage
E190 DockFuselage Equipage
Fuselage Mating E190/195
Wing EquipageE190 Wing - GPX
Worldwide mechanical hardware shortage
Composite
Suppliers
30
Points of Attention (Oct 2007)
Flight Preparation
Tubing
Labor
Outsourcing
Painting
Machining
Sub - AssyBOT
Structural and Final Assembly
Others/New ProductsChemical
Milling
Points of Attention
Under Control
Sheet Metal SJK
Harness
Sheet Metal BOT
CabinetryShop
Deliveries
Final AssemblyFuselage Equipage
Mating and Complementation
Segments Phenom100/300
Ph100/300 Wing BOT
Wing EquipagePhenom100/300
Fuselage Equipage
Final AssemblyMating and
ComplementationSegments
Legacy/145
Legacy/145Legacy/145 Wing Wing Equipage
Underbelly Tank Assembly
E170/190
E170 DockFuselage Equipage
Fuselage Mating E170/175
Wing EquipageE170 Wing - SJK
Segments E170/190/Lineage
E190 DockFuselage Equipage
Fuselage Mating E190/195
Wing EquipageE190 Wing - GPX
Outsourcing program and lean manufacturing initiatives under execution
Suppliers
Composite
31
• Production Management and Investment
• VOP re-organization
• Productivity Improvement
• Lean
• Automation
VOP Strategies
32
Lean Initiatives
Tubing
Composite
E190 wing assembly
E170 wing assembly
F5 & ALX
Phenom Final Assembly
Supply Chain
Legacy Fuselage Mating
E170/190 Fwd Structural Assembly
Surface Treatment
Chemical Milling
MRB Room
Cabinetry shop
Harness
E170/190 Wing-Fus Mating
E170/190 Final Assembly
33
Lean Initiatives
Tubing
Composite
E190 wing assembly
E170 wing assembly
F5 & ALX
Phenom Final Assembly
Supply Chain
Legacy Fuselage Mating
E170/190 Fwd Structural Assembly
Surface Treatment
Chemical Milling
MRB Room
Cabinetry shop
Harness
E170/190 Wing-Fus Mating
E170/190 Final Assembly
34
Lean Initiative – Composite Shop
September 07June 07
� Working cells
� Operator fixed in the cell
� Visual Management
� Operator’s movements per day: 49
� Walking distance: 3.900 ft (1.200 m)
35
Lean Initiative – Composite Shop
Hand-Layup (Daily Produced Parts )
0
50
100
150
200
MAI JUN JUL AUG SEP
OP
s
36
Lean Initiatives
Tubing
Composite
E190 wing assembly
E170 wing assembly
F5 & ALX
Phenom Final Assembly
Supply Chain
Legacy Fuselage Mating
E170/190 Fwd Structural Assembly
Surface Treatment
Chemical Milling
MRB Room
Cabinetry shop
Harness
E170/190 Wing-Fus Mating
E170/190 Final Assembly
37
Lean Initiative – Harness Shop
� 20% of total area released for future expansions
June 07 September 07
38
Lean Initiatives
Tubing
Composite
E190 wing assembly
E170 wing assembly
F5 & ALX
Phenom Final Assembly
Supply Chain
Legacy Fuselage Mating
E170/190 Fwd Structural Assembly
Surface Treatment
Chemical Milling
MRB Room
Cabinetry shop
Harness
E170/190 Wing-Fus Mating
E170/190 Final Assembly
39
Lean Initiative – Tubing Shop
� Layout review
� 540 sqft (50 m²) released for future expansions
August 07 September 07
40
Lean Initiatives
Tubing
Composite
E190 wing assembly
E170 wing assembly
F5 & ALX
Phenom Final Assembly
Supply Chain
Legacy Fuselage Mating
E170/190 Fwd Structural Assembly
Surface Treatment
Chemical Milling
MRB Room
Cabinetry shop
Harness
E170/190 Wing-Fus Mating
E170/190 Final Assembly
41
Phenom 100 / 300 Final Assembly - Initial Concept
2006 Phenom program was considered as strategic to the introduction of Lean Manufacturing concept at Embraer
2006
• High performance line
• Material Supermarket
• Visual Management
• Standardized Work
• Fixed Workcenter per employee (Multi-functional)
Phenom 300Phenom 100
42
Phenom 100 - Digital Manufacturing (2006)
43
Doors
Tail coneForward
Skin
Nacells
Fuselage Mating
ForwardCentralAft
Vertical Tail
Wing
Horizontal Tail
Fairing Wing/Fuselage
Phenom 100 – Industrial Architecture
BOTBOT SJKSJK
GPXGPX
Production Flightand Painting
Wing and Fuselage Mating
Assembly Line
Flight
PreparationSystems Integration
Composite
Fuselage
EquipageCompletion
44
Phenom 100/300 Fuselage Assembly Flow
Botucatu Unit
Phenom 300Phenom 300
Phenom 100Phenom 100
45
Phenom 100/300 Wing Assembly Flow
Phenom 300Phenom 300
Phenom 100Phenom 100
Botucatu Unit
46
Phenom 100/300 Assembly Line
Lean Manufacturing – First enhancements
• A single line with 9 positions from 2 dedicated lines with 15 positions
• 20% cycle time reduction
• A single Production Order
• “Supermarket” concept model
Gavião Peixoto Unit
In Conception
Available areaAvailable area
Single Assembly Line
Completion Center
47
• Production Management and Investment
• VOP re-organization
• Productivity Improvement
• Lean
• Automation
VOP Strategies
48
Automation
Large Panels Automated Riveting
Pressure Bulkhead and Phenom Spars Riveting
Phenom Nacelle Riveting
Phenom Wing Automated Drilling
Mask Laser Cutting
49
Automation
Phenom Wing Automated Drilling
50
Current Process New Concept
Phenom Wing Automated Drilling
AutomaticManual
51
Automation
Pressure Bulkhead and Phenom Spars Riveting
52
Current Process New Concept
Pressure Bulkhead and Phenom Spars Riveting
Manual
AutomaticManual
53
Automation
Phenom Nacelle Riveting
54
Current Process New Concept
Manual
Phenom Nacelle Riveting
Automatic
55
Automation
Large Panels Automated Riveting
56
Current Process New Concept
Large Panels Automated Riveting
3 Parts Single Part
57
Automation
Mask Laser Cutting
58
Current Process New Concept
Mask Laser Cutting
AutomaticManual
59
Planned Ramp-Up in 2006
70 to 78 Seats
78 to 86 Seats
98 to 106 Seats
108 to 118 Seats
Embraer 170/190:2006 – Up to 08 A/C per month
2007 – Up to 12 A/C per month
2008 – Up to 14 A/C per month
Phenom 100/3002H08 – 15 to 20 A/C per year
2009 – 120 to 155 A/C per year
60
Currently and Planned Production Rate
Embraer 170/190:2006 – Up to 08 A/C per month
2007 – Up to 12
2008 – Up to 14
Phenom 100/3002H08 – 15 to 20 A/C per year
2009 – 120 to 155 A/C per year
70 to 78 Seats
78 to 86 Seats
98 to 106 Seats
108 to 118 Seats
14 A/C per monthA/C per month
61
2007 – Deliveries
25
36
47
1Q07 2Q07 3Q07
62
Thank you