1197

P3E - Embraer Enterprise Excellence Program

BBC 2013, November, 14thMarco Cesarino – KPO & Head of Excellence, Embraer Defense and Security

IMPROVEMENTS ON A CONTINUOUS

IMPROVEMENT JOURNEY

This information is property of Embraer Defense and Security and cannot be used or reproduced without written permission.

Agenda

About EMBRAER S.A.

Embraer Enterprise Excellence Program - P3E

Continuous improvement – Defense and Security Business Unit

This information is property of Embraer and cannot be used or reproduced without written permission.

Our business is to generate valuefor our shareholders, customers,employees and society,with behavioral integrity, and an environmental and social conscience.

EMBRAER: GLOBAL COMPANYHEADQUARTERED IN BRAZIL.

WE HAVE DEVELOPED OURBUSINESS IN THE AREAS OF:

COMMERCIAL AVIATION

EXECUTIVEAVIATION


EMBRAERDEFENSE &

SECURITY

EMBRAER YESTERDAY AND TODAYSuccess story

Controlled by the Federal Government, Embraer is born in order to develop Brazil’s aeronautical engineering capacity and to produce airplanes.

19692013

1994

1949One of the mainglobal manufacturersof commercial andexecutive aircraft, with strong and growing involvement indefense and security.

The companyis privatized, leading to a new structure that combinestechnologicaland industrial knowledge withan entrepreneurial culture.

Brazil creates strategic national aeronautics project – creation of CTA and ITA.



We are here to serve our customers

Global presence is our frontier

Boldness and innovation are our hallmark

We strive for company excellence

We build a sustainable future

Our people are what make us fly

OUR VALUES BIND US TOGETHERAND GUIDE OUR ATTITUDES


EMBRAER ONTEM E HOJEHistória de sucesso

Nasce a Embraer, controlada pelo Governo Federal, para desenvolver engenharia aeronáutica no País e produzir aviões.

19692013

1994

1949Uma das principais fabricantes mundiais de aeronaves comerciais e executivas, com forte e crescente atuação em defesa e segurança.

A empresa é privatizada, combinando o conhecimento tecnológico e industrial com uma cultura empreendedora.

Brasil cria projeto estratégico nacional na área aeronáutica –criação do CTA e do ITA.

Esta informação é propriedade da Embraer e não pode ser usada ou reproduzida sem autorização por escrito.


GLOBAL PRESENCE IS OUR FRONTIER

EMBRAER UNITSGlobal operations

CHINABeijingHarbin - HEAI

SINGAPORESingapore

BRAZILSão José dos CamposGavião PeixotoBotucatuTaubatéBrasíliaBelo HorizonteSão Paulo

FRANCEVillepinteLe Bourget

PORTUGALAlverca - OGMAÉvora

UNITEDSTATESNashvilleFort LauderdaleMelbourneMesaWindsor LocksJacksonville


UNITED KINGDOMFarnborough

UAEDubai

IRELANDDublin


OUR PEOPLE ARE WHAT MAKE US FLY

DIVERSITY IS WEALTHMORE THAN

PEOPLE19,000

September/2013

89.66% 7.11%

1.55%

0.34% 0.38%

0.92%

0.02% 0.02%


Agenda

About EMBRAER S.A.




Our commitment

A “quality centered” approach

2007...

EXCELLENCE AGE

ISO 9001

Total QualitySystem

ISO 14001

OHSAS 18001

AS 9100

Integrated Management System was Established : Environmental + Occupational Health and Safety + Quality

Not sufficiently process wide

Still focused on normative requirements

Stock Market = DIFFERENT requirements

Our commitment


Frederico Fleury Curado

President and Chief Executive Officer “Em Tempo” July 20,2007

“A company of excellence is one able to

ensure total customer satisfaction,

working as a true “lean enterprise”,

generating returns for its

shareholders, developing its

employees and giving back to the

community. This is exactly what we will

pursue by streamlining our work

processes, eliminating waste, and

making full use of our resources.”

Sponsored by the Top Management


Embraer Enterprise Excellence Program – P3E

“Structure and address the actions and initiatives of the Company towards

CORPORATE EXCELLENCE CULTURE, through the leadership transformation, people

qualification and by spreading the lean manufacturing philosophy, consolidated by

corporate beliefs and values”.

THE PURSUIT OF EXCELLENCE AND EFFICIENCY IN ALL EMBRAER’S PROCESSES

CONTINUOUS DEVELOPMENT OF LEADERS AND THEIR MANAGEMENT SKILLS

PEOPLE’S DEVELOPMENT

EMBRAER ORGANIZATIONAL CULTURE DEVELOPMENT

Embraer Enterprise Excellence Program – P3E


Business Performance PilarBusiness Performance Pilar


Change

Learning with “the japanese”

Good (for the better)

At Embraer = Intensive workshops to improve processes

From where we started


TIME

PE

RF

OR

MA

NC

EOur second step

Set excellence criteria to induce the

continual and gradual improvement


CELLS ACCORDING TO THE VALUE CHAIN

Understanding the company from a

different perspective


What is a Cell

• Share the same results

• Process and supply the same type of products/services...

• ...which are a part of the business results

Inputs Outputs

•Work in a system of suppliers x customers

• People can be from different areas

Cell


P3E Operational System

Customer oriented

CustomerCustomer

Products, Servicesand Processes

Products, Servicesand Processes

Discrepancies &Opportunities

Discrepancies &Opportunities

Business StrategiesAnd Performance

Business StrategiesAnd Performance

Quality ClinicsQuality Clinics

ValueExpectations

Performance

Market Feedback Business

Results

Problem solvingProcess improvement and

waste elimination

CorrectiveActions


Cell s Visual Management Boards


Quality

ControlTower

Satisfaction

ProcessMaturity

Cell s Visual Management Boards


BRONZEApplication, improvement and predictability

QUALIFICATIONOur Journey Excellence starts hereCustomers expectations are identified; targets are set;

Key-process are prioritized

SILVERBusiness Results

GOLDEXCELLENCE!

Cells EvolutionProcess Maturity + Results


Business Units andOther VPs

Business Units andOther VPs

KPO LOCAL

CEO

Business Units

ImprovementAgent

Cell Leader

Governance Structure


P3E Academy: development tracks

About the kaizen


Depends on the type of process

Kaizen = Process Improvement Projects


4

1240

2619

3393

2437

28288

577

650

535

697

745

28

288

581

1890

3154

4090

3182

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2007 2008 2009 2010 2011 2012 2013

Kaizen de Célula Projeto Kaizen Total

Kaizen projects portifolio

13.213 projetos2007 - 2013:


Important philosophy

KAIZEN

KAIZEN VISION

Double the good &cut the bad in half


Simple but powerful

As Simple as: post-its + brown paper

“AS IS” flow example


Beyond our frontiers

+ 250 projects+ 70 Suppliers


Agenda

About EMBRAER S.A.




Summarizing: DIFFERENT AGES

We strive for company excellence

Focused on operational excellence towards to Management Excellence

AFTER P3E

BEFORE P3E


Continuous improvement of theExcelence Program

AFTER P3E

P3E corporative

� Excellence Criteria Evolution: 1 to 6 Version

20 Requirenments

� Lean Academy

� Individual Cells

Defense and Security Path

� Excelence Criteria: 6 to 10

6 major requirenments

� Value streams and Cells Grouping

� Defense & Security CoE

� Innovation

� Management Excellence Manual

� Leadership Development

Management Excellence

� Management Model

� Management Maturity

� IT and Processes Layers

Future2007 2008 2009 2010 2011 2012 2013 2014


New challenges

Steps and Strategies60´s - 2010

DEFENSE as a functional area

Jan, 2011

EMBRAER DEFENSE AND SECURITY


LINHA DO TEMPO

Strategic Plan to achieve Excellence

ROADMAP


LINHA DO TEMPO


Identifying the value stream

ROADMAP


Identifying our value stream


Shared Understanding (From - To)

From: Contract effectiveTo: Solution Delivered

From: Opportunities AnalisysTo: Contract placed

From: Solution DeliveredTo: End of life cycle

1- BUSINESS DEVELOPMENT AND SOLUTIONS SELLING

2- SOLUTIONS DEVELOPMENT AND DELIVERED

3- SERVE AND RETAIN CUSTOMERS


What was the next step?

• Increase the integration

• Strengthen the strategy deployment

Reorganize the cells according to the value stream


LINHA DO TEMPO



Strategic Deployment

ROADMAP


1- BUSINESS DEVELOPMENT AND SOLUTIONS SELLING

2- SOLUTIONS DEVELOPMENT AND DELIVERED

3- SERVE AND RETAIN CUSTOMERS

BUSINESS CONTROL TOWER

VALUE STREAMS CONTROL TOWER

CELLS CONTROL TOWER

Strategic deployment

• Each value stream has a leader (Director)

• Each cell has a leader (Manager / supervisor)


LINHA DO TEMPO



Change management Challenge


ROADMAP


TRANSFORMANDO

Leaders: Leading the change management in a process

oriented way

Transformation Agents

Internal Consultant Members

=


LINHA DO TEMPO





Leadership Readiness

Program

ROADMAP


Essentials Program Guidelines

• Provide Means

• Inspire Action

• Generate Results: Projects

Leaders: Leading the change management in a process

oriented way


LINHA DO TEMPO



Leadership Readiness

ProgramManagement

Excelence



ROADMAP


Defense and Security Excellence Stages

� 36 Excellence Islands

� Local results

� Low engagement

� 33 Cells into the value streams

� Global results

� Leadership readiness

� 30 cells

� End-to-end maturity

� Management excellence

Single processes perspective

Value streams

perspectiveBPM

2012Until 2011 2013 & …2012Until 2011 2013 & …


Management Excellence

Time

P3E Process Improvement

P3E + BPM

Management by processesManagement of Individual processes

Perf

orm

ance


Management Model of Embraer

• The Embraer Management Model is focused on their valeus, demonstrating they are the basis for decision making and conduct of leadership.

• The leadership with enterpreneurial action, defines and implements Strategies and Plans, guiding, developing and caring People, generating knowledge, stimulating Innovation and leading and optimizing Processes.

• Inside our Management Model, stimulates the construction of virtuous circles of relationships with key stakeholders, by identifying their demands and generate sustainable results.


Proteção ao

Conhecimento

Sensível

P3E

Projeto de Melhorias

(Kaizen e outros)

Agrupamentos

e Células

Formação da

Liderança

Modelo de

Gestão (SEE)

MEG

Políticas e

Requisitos

Registro

Inovação

Frente de

Sustentabilidade

Boa

Ideia

Portifólio

Inovação

Innova

Arquitetura de

Processos

de Negócio

DJSI/ISE

Auditoria

SigMassq

P. D. M.

Amb

Manual da

Gestão

TI

Fluxo de

Valor/Processo

Defense and Security CoE

Mapeamento

Promoção


Comprehensive Process Architecture

Value Chain

Docum. structure

Process IT

MaturityLevel


Colar aqui as fotos do Painel de processos

Always under construction

You can have time, Space and resources to innovate.

Green Light

Process that gives time and resources for employees to develop their innovative projects.

Innova Challenge

Process to search solutions

for specific questions through

a challenge proposed to all

the employees of the

company.

Innova on Demand

Support to transform ideas

in results.

Innovation Recognition

The manager recognizes innovation that has been implemented and is bringing positive results.

Training

- Introduction to innovation

(online)

- Trainings to all employees

- Trainings to leadership

Places

Environments to nurture creativity and innovation. Innova Room and Moonshine (KPO)

Some Results


As a consequence

IN THE LAST 5 YEARS EMBRAER HAVEINCREASED THE EFFICIENCY ATHEADQUARTERS FACILITY IN SÃO JOSÉDOS CAMPOS - SP

From 22 to

7 days

� 50 %40

defects40

defects

The final assemblylead time of an

ariplane. In 2007, it was 22 days.

The final assemblylead time of an

ariplane. In 2007, it was 22 days.

Reduction in theamount of hours needed in some

tasks

Reduction in theamount of hours needed in some

tasksPer million .

In 2007= 4000 dpm

Per million .

In 2007= 4000 dpm


Always better (2007 – 2012)


Employees Satisfaction

Industry leader of the Dow Jones Sustainability Index

Recognized as one of the Best Companies to Work for

1st place in the Aerospace and Defense sector


The best company to work for


The most important thing: CelebrationCell certifications cerimony

Best kaizen of the year


But…. It is still the beginning

The P3E is our key strategy. What we need for the next six years is to double, to triple our energy into P3E and achieve results that surprise even ourselves. This is how we will assure our and Company's future.


Continuous transformation culture: the endless journey

It is more than methods and tools:

It is about management.

Action as a change principle.

Strategy deployment in all P3E initiatives.

Top management engagement in all change process.

Final Remarks

OBRIGADO

+55 12-98156 6740+55 12-3927 [email protected]

1197

Documents

Transcript of 1197