2007* Industrial Operations Embraer Day 2007

Artur CoutinhoExecutive Vice-President

Industrial Operations

Embraer Day

Industrial Operations Overview

Nov 13th, 2007

Products Portfolio - Production and Development

EMBRAER 170

ERJ 145 Series

EMBRAER 170/190 Series

ERJ 135 ERJ 140 ERJ 145 XR ERJ 145

EMBRAER 175 EMBRAER 190 EMBRAER 195

ALX Legacy 600 Phenom 300

Defense Executive Jets

Lineage 1000

Under Development

Phenom 100

Industrial Operations

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

BrazilBRAZIL

Location – Industrial Units

Five plants

Botucatu

Gavião Peixoto

São José dos Campos - (2 units)

São Paulo

Eugênio de Melo

São Paulo State

Embraer Units - Faria Lima Plant - SJK

Embraer Units - Gavião Peixoto Plant - GPX

Embraer Units - Botucatu Plant - BOT

Embraer Units - Eugênio de Melo Plant - EGM

VOP Strategies

• Production Management and Investment

• VOP re-organization

• Productivity Improvement

• Lean

• Automation

VOP Strategies

• Lean

• Automation

Industrial

Operation - VP

Industrial Op. Integration

Industrial Op. Planning

Gavião Peixoto Unit

Supply Chain Botucatu UnitFabrication SJK/EGM

Product Quality

Logistic and Control

Industrial Operations Organization - 2006

Industrial

Operation - VP

Logistic and Control

Supply Chain Botucatu UnitFabrication SJK/EGM

Product Quality

Final Assembly

Commercial Aviation

Executive Aviation

Industrial Strategy

Industrial Operations Organization - 2007

• Lean

• Automation

VOP Strategies

Bottlenecks (Feb 2007)

Flight Preparation

Tubing

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

Wing Equipage

E170/190

E190 Wing - GPX

Bottlenecks

Under Control

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 Plant - E-170/190 Investment

Rivet Automatic Machining

CalenderStrech press

Examples

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

Laser Positioning System - Composite

Tubing Expanding Machine

Hangar Expansion - Wing 190 Assy

Router – Sheet Metal BOT

Riveting Machine– BOT

Detail Parts Paint Booth - BOT

Surface Treatment – Tubing Shop

SJK Plant - E-170/190 Investment

Router – Sheet Metal Paint Booth Expansion F210

Router - Composite Shot Peening

Examples

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

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

GPX Plant – Phenom 100/300 Investment

Phenom 100/300 final assembly hangar construction

Cabinetry shop extension

Examples

2007 2008

Veneer Room Upgrade

BOT Plant - Phenom 100/300 Investment

Sheet metal shop expansion

Riveting automatic machine

Fuselage skin facility

Structural assembly hangar

Examples

2007 2008

Veneer Room Upgrade

SJK Plant – Phenom 100/300 Investment

CNC 3 axis ultrasound Fabric cutting machine

Wiring laser and cutting machine Composite 5 axis router machine

Examples

Points of Attention (Oct 2007)

Flight Preparation

Tubing

Outsourcing

Painting

Machining

Sub - AssyBOT

Milling

Points of Attention

Under Control

Sheet Metal SJK

Harness

Suppliers

Sheet Metal BOT

CabinetryShop

Composite

Deliveries

Ph100/300 Wing BOT

Fuselage Equipage

Legacy/145

E170/190

Wing EquipageE190 Wing - GPX

Flight Preparation

Tubing

Outsourcing

Painting

Machining

Sub - AssyBOT

Milling

Points of Attention

Under Control

Sheet Metal SJK

Harness

Sheet Metal BOT

CabinetryShop

Deliveries

Ph100/300 Wing BOT

Fuselage Equipage

Legacy/145

Worldwide mechanical hardware shortage

Composite

Suppliers

Flight Preparation

Tubing

Outsourcing

Painting

Machining

Sub - AssyBOT

Milling

Points of Attention

Under Control

Sheet Metal SJK

Harness

Sheet Metal BOT

CabinetryShop

Deliveries

Ph100/300 Wing BOT

Fuselage Equipage

Legacy/145

E170/190

Outsourcing program and lean manufacturing initiatives under execution

Suppliers

Composite

• Lean

• Automation

VOP Strategies

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

Lean Initiatives

Tubing

Composite

E190 wing assembly

E170 wing assembly

F5 & ALX

Supply Chain

Surface Treatment

Chemical Milling

MRB Room

Cabinetry shop

Harness

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)

Lean Initiative – Composite Shop

Hand-Layup (Daily Produced Parts )

MAI JUN JUL AUG SEP

Lean Initiatives

Tubing

Composite

E190 wing assembly

E170 wing assembly

F5 & ALX

Supply Chain

Surface Treatment

Chemical Milling

MRB Room

Cabinetry shop

Harness

Lean Initiative – Harness Shop

� 20% of total area released for future expansions

June 07 September 07

Lean Initiatives

Tubing

Composite

E190 wing assembly

E170 wing assembly

F5 & ALX

Supply Chain

Surface Treatment

Chemical Milling

MRB Room

Cabinetry shop

Harness

Lean Initiative – Tubing Shop

� Layout review

� 540 sqft (50 m²) released for future expansions

August 07 September 07

Lean Initiatives

Tubing

Composite

E190 wing assembly

E170 wing assembly

F5 & ALX

Supply Chain

Surface Treatment

Chemical Milling

MRB Room

Cabinetry shop

Harness

Phenom 100 / 300 Final Assembly - Initial Concept

2006 Phenom program was considered as strategic to the introduction of Lean Manufacturing concept at Embraer

• High performance line

• Material Supermarket

• Visual Management

• Standardized Work

• Fixed Workcenter per employee (Multi-functional)

Phenom 300Phenom 100

Phenom 100 - Digital Manufacturing (2006)

Tail coneForward

Nacells

Fuselage Mating

ForwardCentralAft

Vertical Tail

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

Phenom 100/300 Fuselage Assembly Flow

Botucatu Unit

Phenom 100/300 Wing Assembly Flow

Botucatu Unit

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

In Conception

Available areaAvailable area

Single Assembly Line

Completion Center

• Lean

• Automation

VOP Strategies

Automation

Large Panels Automated Riveting

Pressure Bulkhead and Phenom Spars Riveting

Phenom Nacelle Riveting

Phenom Wing Automated Drilling

Mask Laser Cutting

Automation

Current Process New Concept

AutomaticManual

Automation

Manual

AutomaticManual

Automation

Manual

Automatic

Automation

3 Parts Single Part

Automation

Mask Laser Cutting

AutomaticManual

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

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

2007 – Deliveries

1Q07 2Q07 3Q07

Thank you

2007* Industrial Operations Embraer Day 2007

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