P&WC PROPRIETARY INFORMATION1

2010 PWCS VENDOR SYMPOSIUM

P&WC Supply Chain

P&WC PROPRIETARY INFORMATION2

WARNING – PROPRIETARY NOTICE

This document is the property of Pratt & Whitney Canada Corp. (“P&WC”). You may not possess, use, copy or disclose this document or any information in it, for any purpose, including without limitation to design, manufacture, or repair parts, or obtain FAA or other government approval to do so, without P&WC's express written permission. Neither receipt nor possession of this document alone, from any source, constitutes such permission. Possession, use, copying or disclosure by anyone without P&WC's express written permission is not authorized and may result in criminal or civil liability.

P&WC PROPRIETARY INFORMATION3

AGENDA

Customer Service Organization

Customer Service Game Plan

Supply Chain Process

Overall & Target Performances

Supplier Scorecards

Supplier Management Process

Excellence in Quality

Supplier Gold

P&WC PROPRIETARY INFORMATION4

Raffaele VirgiliVice President -

Customer Service

Anthony RossiManager -

Spare Parts Services

ACE PMO Asset Management

Business Development

Distribution & Logistics

Antoine MarezSupply Chain Management

Sales & Marketing

Inventory & Planning

SPARE PARTS SERVICES STRUCTURE

P&WC PROPRIETARY INFORMATION5

SPARE PARTS SERVICESWho we are..

P&W Component Solutions

New, Used, Exchange & Repair Services

Montreal,Qc

PL17

Spare Part Services

MRO Network

OperatorsFBO

OEMAirlines

Accessory & Component Services (ACS)

Repair Vendor / Parts Supply Chain

P&WC PROPRIETARY INFORMATION6

Service and Distribution AgreementsSupport, Part distributionRESPONSIVENESS

PERFORMANCE

EASE OF DOINGBUSINESS MFA on key processes

Reliability , Dispatch

CUSTOMER TO P&WC P&WC TO SUPPLIER BASE

Scorecard

Ease of doing business survey

P&WC PROPRIETARY INFORMATION7

SUPPLY CHAIN STRUCTURE

Components

D. BushB. Komlosi

Quality

Supplier Gold / Lean

New Supplier Intro

Suppliers Scorecards

Transversal processes

Contract Negotiation, Price & TAT , Focus point

T. Gauld G. Bock

Supply Chain Value Streams

Su

pp

ly C

hai

n Q

ual

ity

Nacelles

R. Day

EC&A

F. BlanchardG. Ramirez

R. Day

P&WC PROPRIETARY INFORMATION8

Measure performance (Scorecard)

Segment suppliers & developstrategies

Allocate resourcesand use ACE toolsto close gaps

Establishperformance targets

2 3 41

Scorecards and Segmentation build the foundation for Supply Base Performance Improvement

Partner

EngageRationalize

Consolidate

Supplier Gold

SUPPLY CHAIN PROCESS 2010 KEY INITIATIVES

Monthly Reviews

Shared Objectives

Service agreement

Quality

CoE Matrix

Cost control

TAT performance

Quality Control Tower

CAR Management

Monthly QC

Scorecard

P&WC PROPRIETARY INFORMATION9

ESTABLISH PERFORMANCE TARGETS TAT Reduction - Components

0

5

10

15

20

25

30

35

40

20

08

Av

g

Ja

n-0

9

Fe

b-0

9

Ma

r-09

Ap

r-09

Ma

y-0

9

Ju

n-0

9

Ju

l-09

Au

g-0

9

Se

p-0

9

Oc

t-09

No

v-0

9

De

c-0

9

Ja

n-1

0

Fe

b-1

0

Ma

r-10

Ap

r-10

Ma

y-1

0

Ju

n-1

0D

ay

s

Average TAT Target Linear (Average TAT)

21% Reduction in average TAT over 18 month period

34 Days

27 Days

15 day TAT Target

Establishperformance targets

1

P&WC PROPRIETARY INFORMATION10

ESTABLISH PERFORMANCE TARGETS TAT Reduction - Accessories

18 Days

25 Days

0

5

10

15

20

25

30

2008

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

12 day TAT Target

Establishperformance targets

1

P&WC PROPRIETARY INFORMATION11

ESTABLISH PERFORMANCE TARGETS Supplier Disposition TAT

0

2

4

6

8

10

12

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410

Da

ys

Average TAT Target Linear (Average TAT)

Establishperformance targets

1

P&WC PROPRIETARY INFORMATION12

SUPPLIER SCORECARD EVOLUTION

2000 – Vendor “Report Cards”

2007 – “Common Scorecard”

2003 – Scrap Rates

2010 – Next Generation Scorecard

2005 – Industry Best In Class

2008 – Target TAT’s – OTD %2009 – Compare to Supplier data

2010 – Supply chain data merge

Measure performance (Scorecard)

2

P&WC PROPRIETARY INFORMATION13

SUPPLIER SCORECARD

Measure performance (Scorecard)

2

P&WC PROPRIETARY INFORMATION14

SUPPLIER MANAGEMENT PROCESS

Plan ReviewsGather Data

Communicate PerformanceDefine & Track Plan

1 2

3

4

Planning

Partner

EngageRationalize

Consolidate

Segment suppliers & developstrategies

Partner

EngageRationalize

Consolidate

3

P&WC PROPRIETARY INFORMATION15

EXCELLENCE IN QUALITY

Key objective: 0 Defect

Description:

Increase reporting of product deviations and timely root cause resolution .

CAR Management

( Corrective Action Required)

Supplier’s role:

Respond to CARs with corrective action plan implemented in 30 days

KPI: # of CARS reported

CAR closure TAT

Response acceptabl

e?

Open CAR

Communicate

to supplier

Respond with corrective

action

Close & communicat

e

Customer

Inspection

P&WC

Supplier

Quality

No

Yes

30 day TAT

Allocate resourcesand use ACE toolsto close gaps

4

Supplier Gold

Supplier Gold

P&WC PROPRIETARY INFORMATION16

SUPPLIER GOLD UTC Supply Chain Best practice

UTC Supplier Gold is a program that facilitates and accelerates superior performance

Four performance levels Gold Criteria:

- Zero CAR (escapes)

- 100% to requirements for the last 12 months

- Market Feedback score (EoDB, com. ) ≥ 6

- UTC Lean Assessment score ≥ 350

Benefits- Performance - Reduced costs

- Capacity - Reward & Recognition

- Growth - Award

- Employee satisfaction - UTC Leadership visibility

- Industry publications

Allocate resourcesand use ACE toolsto close gaps

4

Supplier Gold

Supplier Gold

P&WC PROPRIETARY INFORMATION17

CONCLUSION

Repair disposition within 5 dayRepair Time within 15 day

Commitment to support 15 day target

Zero CAR / Escape

Improve robustness to support future growth ( Lean )

SUPPLIER GOLD

RationalizationConsolidationPartnership

18P&WC PROPRIETARY INFORMATION