2007* Industrial Operations Embraer Day 2007

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




• 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


Supply Chain Botucatu UnitFabrication SJK/EGM

Product Quality

Final Assembly

SJK


Commercial Aviation


Executive Aviation

Industrial Strategy

Industrial Operations Organization - 2007

16




• 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



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


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

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


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

23

GPX Plant – Phenom 100/300 Investment

Phenom 100/300 final assembly hangar construction

Cabinetry shop extension

Examples

24



2007 2008










Veneer Room Upgrade








BOT

25

BOT Plant - Phenom 100/300 Investment

Sheet metal shop expansion

Riveting automatic machine

Fuselage skin facility

Structural assembly hangar

Examples

26



2007 2008










Veneer Room Upgrade








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



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

29


Flight Preparation

Tubing

Labor

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

30


Flight Preparation

Tubing

Labor

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

31




• 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


Supply Chain



Surface Treatment

Chemical Milling

MRB Room

Cabinetry shop

Harness



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


Supply Chain



Surface Treatment

Chemical Milling

MRB Room

Cabinetry shop

Harness



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


Supply Chain



Surface Treatment

Chemical Milling

MRB Room

Cabinetry shop

Harness



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


Supply Chain



Surface Treatment

Chemical Milling

MRB Room

Cabinetry shop

Harness



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



45

Phenom 100/300 Wing Assembly Flow



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


In Conception

Available areaAvailable area

Single Assembly Line

Completion Center

47




• 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


50

Current Process New Concept


AutomaticManual

51

Automation


52



Manual

AutomaticManual

53

Automation


54


Manual


Automatic

55

Automation


56



3 Parts Single Part

57

Automation

Mask Laser Cutting

58


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

Documents

2007* Industrial Operations Embraer Day 2007