Requirements For

Internationalization, Which Is

Required

Aerospace Meetings Brazil 2015 – São José dos Campos, São Paulo, Brazil

Dec 9th, 2015

Fabyo Ajona Marques

Who am I ?

20 year work experience

developing suppliers and

performing sourcing in Brazil

and South America.

Vehicle Group

1995 1996 1997 1998 2008 2012 2015

Aerospace Group

Current Situation

Brazilian Companies Into Global Arena Few companies export products and services, considering the large quantity of

Brazilian companies.

About 70% of exports are only concentrated on the first 250 companies ABC

curve.

Brazilian companies that export their products and services are performing well,

despite the current economic crisis,

But, The worst moment to start to export is during a local economic crisis !

On the other hand……

18500

6100

12400

19000

31400

0

5000

10000

15000

20000

25000

30000

35000

40000

Beginning 2014 2033

Fleet in Service Evolution - 2014 to 2033

Aircraft in service Replacement Source: Airbus

Global Aerospace Market Perspective

SO, TO GROW YOUR BUSINESS, INTERNATIONALIZATION IS

THE RIGHT PATH

Stay in Service

Replacement

Growth

New

Aircraft

Aerospace Market Perspective –

Global Sourcing Activities Growth

SO, TO GROW YOUR BUSINESS, INTERNATIONALIZATION IS

THE RIGHT PATH

Global Sourcing – Participation on total

spends is increasing

Total Spend

Sp

en

d (

%)

All Spend Global Suppliers BRAZIL SUPPLIER SPEND

Will we

be out

of this ?

THE AEROSPACE SUPPLY CHAIN IS

GLOBAL !!

NO OR LOW GROWTH FOR LOCAL

COMPANIES !!

OEM Supply Chain Model –

Integrated Value Chain

OEM

Engines SystemsAero

structuresTie

rs 1

Tie

rs 2

KEY COMPONENTS MANUFACTURING

Tie

rs 3

MAKE TO PRINT

What is required to say for a potential customer ?

CAPABILITIES

What is required to say for a potential customer ?

SUSTAINABILITY

CAPABILITIES

What is important to know about international companies ?

Medium volumes parts exist !

Regularly, they are responsible for parts transportation from your plant to their

international plants.

English is the official language. Communication skills are required.

Regularly, they do not grant concessions to enter into their Approved

Supplier List (ASL), if you don’t meet their requirements.

There is no or low probability for international companies give you a blank

check in order to you take actions into your organization to become in

compliance with their requirements. They don’t need to accept it, because:

They have companies that meet their requirements in other regions.

They expect the government or yourself do it.

Necessary actions for capabilities enhancement and

sustainability improvement - Strategic planning

“WHAT ABOUT MY CURRENT LEVEL OF INTERNATIONAL COMPETITIVENESS AND SUSTAINABILITY IN COMPARISON WITH GLOBAL AND LOCAL COMPETITORS ?”

“IS MY CURRENT AND INSTALLED TECHNOLOGY APPROPRIATE FOR INTERNATIONALIZATION COMPETITIVENESS, INCLUDING MY OWN SUPPLY CHAIN CAPABILITIES ?”

“ARE MY ACTIONS AND STRATEGIES ALIGNED WITH INTERNATIONAL PLAYERS REQUIREMENTS AND TRENDS ?”

MORE PROGRAMS SUCH AS KC-390 AND FX-2 !!

- THIS IS AN ATTRACTION FOR INTERNATIONAL AEROSPACE COMPANIES

- DESPITE HIGH SPEND, THEY GENERATE IMPORTANT BENEFITS ON EDUCATION,

TECHNOLOGY UPGRADE, SOCIAL, ECONOMIC…… FIELDS

- ACTUALLY, THEY ARE REALLY GOOD, SINCE OFFSET CLAUSES BE ROBUSTELY COMITTED

IN CONTRACT …. AND LOCAL SUPPLY CHAIN PREPARED FOR THAT PREVIOUSLY

- FURTHERMORE, OFFSET CLAUSES MUST BE FOCUSED ON LOCAL AEROSPACE SUPPLY

CHAIN DEVELOPMENT.

To intensify it

To create other similar actions focused on other gaps

At the present: To focus on exhibitions and workshops participation for

internationalization needs, trends and requirements identification…. In

order to be prepared for the future

Necessary actions for capabilities enhancement and

sustainability improvement - Strategic planning

Reflections….

ALL INTERESTED PARTS SHOULD FEEL

DISAPPOINTED AND UNCOMFORTABLE WHEN AN

INTERNATIONAL AEROSPACE COMPANY DECIDES TO

GIVE UP SOURCING OUR LOCAL AEROSPACE

COMPANIES.

Necessary actions for capabilities enhancement

and sustainability improvement – Certifications

There is a strong correlation between international potential customers local

spends and quantity of certified companies in a certain region

0

5

10

15

20

25

0

100

200

300

400

500

600

Brazil Singapure India Mexico China

Quantity of Certified Companies (AS9100/Nadcap) by Locations & Local

Spend of OEM tiers

AS 9100 certified NADCAP certified Spend

Necessary actions for capabilities enhancement

and sustainability improvement - Certifications

80 201 3

7109

420 713

15201523

80633 474

111 160

1000

2000

3000

4000

5000

6000

7000

8000

AS 9100 companies

5 70 1

1858

122 65196

357

4155

50 24 50

200

400

600

800

1000

1200

1400

1600

1800

2000

Nadcap companiesSource: www.eauditnet.com and oasis

In South America there is no

certified organization for:

casting, forging, plastics

injection, avionics, systems and

electronics.

In South America there is no

certified organization for brazing,

welding, shot pinning and some

usual kinds of heat treat.

Furthermore, there is a lack of

backups.

To create incentives

more attractive than

the current one.

To promote searching

in other segments,

once this will result in a

general benefits.

Necessary actions for capabilities enhancement

and sustainability improvement - Import & Export

Customs clearance process full of complexities. This

should become easier and cheaper to take some

advantage focused on global competitiveness.

Effective actions

are required to

prevent it !!

Don’t allow

adversities !

Necessary actions for capabilities enhancement and

sustainability improvement - Competitiveness Evaluation

How competitive and sustainableyou are ?

And best price doesn’t means

the most competitive.

To focus on effectiveness, competitiveness and GET sustainability the right machine + the

right work team + the right methodologies and processes + the right raw material + the right

logistics methods…..

To develop skills for advanced or medium quality or productivity tools and techniques in

order to increase effectiveness, mitigate risks and reduce costs.

SPC

Maintenance

Management System

Example: For micro parts

machining: 5 axis machine or Swiss Machine ?

Cycle times and wrap rates review

focused on sustainability and global

competitiveness.

Necessary actions for capabilities enhancement and

sustainability improvement - Competitiveness Evaluation

How competitive and sustainableyou are ?

And best price doesn’t means

the most competitive.

Necessary actions for capabilities enhancement and

sustainability improvement - Competitiveness Evaluation

How competitive and sustainableyou are ?

And best price doesn’t means

the most competitive.

Lean

Tools

Necessary actions for capabilities enhancement and

sustainability improvement - Competitiveness evaluation

How competitive and sustainableyou are ?

And best price doesn’t means

the most competitive.

Lean

Tools

Additionally……

Additionally……

The right way to leave the current economic crisis Improving Productivity, Quality, Competitiveness and Sustainability

Source: Jairo Martins da Silva – II ABQ SEMINARY

COMPETITIVENESS

PRODUCTIVITY

COST DEMAND SALES PRODUCTION EMPLOYMENT INCOME LIFE

NEW NEEDS

NEW REQUIREMENTSINOVATION

RESULTSREPUTATIONCONFIDENCEINVESTMENT

Trainings, lectures, consulting & assessments

Trainings and other activities focused on results,

becoming your work team capable to implement and

enhance the best techniques by themselves. The

intention is not require for consulting services, actually.

But, even though if you need, RTB will support you

applying the best techniques to overcome your

expectations and achieve the desired results.

Activities focused on

International standards upgrade (ISO 9001, ISO 14001 and

AS 9100)

Risk mitigation techniques and quality tools (Statistical

Process Control, MSA, APQP, Quality Planning, FMEA,

Problem Solving Techniques, 5S, KPI/Scorecard and

others)

And productivity methodologies (Lean Manufacturing

methodologies and Systematic for Maintenance

Practices Optimization).

RTB activities achieve attendees expectation fully !

5 5 5 5 54,5 4,6 4,5 4,5 4,7

00,5

11,5

22,5

33,5

44,5

5

Training met

my

expectation

The trainer

and / or

presentation

was effective

Use of

Didactic

Methods

Training

Content

The topics

covered were

relevant to me

Median Score Average Score

RTB – Attendees Activities Evaluation

Note: 5 is the maximum score