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Embraer Day
Industrial Operations
      Overview
                       Nov 13th, 2007


     Artur Coutinho
   Executive Vice-President
    Industrial Operations
                                    1
Products Portfolio - Production and Development

                                  ERJ 145 Series




   ERJ 135              ERJ 140                ERJ 145 XR                 ERJ 145


                           EMBRAER 170/190 Series




EMBRAER 170         EMBRAER 175            EMBRAER 190                EMBRAER 195

                                                     Under Development
        Defense                                Executive Jets




  ALX         AEW        Legacy 600     Phenom 100       Phenom 300      Lineage 1000

                                                                                    2
Industrial Operations




                        3
Global Business

 • Operations in Brazil, United States, Europe and Asia



           USA                            France
                                            Villepinte
           Nashville
    Fort Lauderdale                        Le Bourget                    China
                                                                         Beijing
                                        Portugal                         Harbin
                                            Alverca



                                                         Singapore
                                                             Singapore

                          Brazil
                       Gavião Peixoto
                             Botucatu
                 São José dos Campos
                      Eugênio de Melo




                                                                                   4
Location – Industrial Units



                                      Five plants

         Brazil
         BRAZIL



                                            Gavião Peixoto


                                            Botucatu          Eugênio de
                    São Paulo State                              Melo

                                           São Paulo     São José dos
                                                         Campos - (2 units)


                                                                       5
Embraer Units - Faria Lima Plant - SJK




                                         66
Embraer Units - Faria Lima Plant - SJK




                                         77
Embraer Units - Gavião Peixoto Plant - GPX




                                             88
Embraer Units - Gavião Peixoto Plant - GPX




                                             99
Embraer Units - Botucatu Plant - BOT




                                       1010
Embraer Units - Eugênio de Melo Plant - EGM




                                               11
                                              11
VOP Strategies


• VOP re-organization


• Production Management and Investment


• Productivity Improvement
  • Lean
 • Automation




                                         12
VOP Strategies


• VOP re-organization


• Production Management and Investment


• Productivity Improvement
  • Lean
 • Automation




                                         13
Industrial Operations Organization - 2006

                                                       CEO

                                                      Industrial
                                                    Operation - VP

                                                                            Industrial Op. Integration




          Product                  Industrial Op.    Logistic and    Fabrication     Gavião
                    Supply Chain                                                                  Botucatu Unit
          Quality                    Planning          Control        SJK/EGM      Peixoto Unit




                                                                                                                  14
Industrial Operations Organization - 2007

                                                              CEO

                                                             Industrial
                                                           Operation - VP

                                                                                          Industrial Strategy




                                                               Final
                   Product                  Logistic and                    Fabrication        Gavião
                             Supply Chain                    Assembly                                       Botucatu Unit
                   Quality                    Control                        SJK/EGM         Peixoto Unit
                                                               SJK


  Industrial Op.
    Integration
   Commercial
    Aviation


  Industrial Op.
    Integration
   Executive
    Aviation


                                                                                                                            15
VOP Strategies


• VOP re-organization


• Production Management and Investment


• Productivity Improvement
  • Lean
 • Automation




                                         16
Bottlenecks (Feb 2007)

      Labor                          Structural and Final Assembly
                     E170/190
                                                                    E170 Wing - SJK   Wing Equipage
    Suppliers
                                                Fuselage Mating        Fuselage
                                                                                        E170 Dock
                                                   E170/175            Equipage
   Outsourcing               Segments
                          E170/190/Lineage
                                                Fuselage Mating        Fuselage
                                                                                        E190 Dock
                                                   E190/195            Equipage
     Tubing
                                                                    E190 Wing - GPX   Wing Equipage

     Harness                                                                                               Flight
                     Legacy/145                                                                         Preparation
                                                Underbelly Tank
                                                                    Legacy/145 Wing   Wing Equipage
                                                  Assembly
    Composite
                                Segments          Mating and           Fuselage
                                                                                      Final Assembly
                                Legacy/145      Complementation        Equipage
                                                                                                         Deliveries
     Painting
                     Phenom100/300                                  Ph100/300 Wing
                                                                                      Wing Equipage
                                                                         BOT
    Machining                Segments             Mating and           Fuselage
                                                                                      Final Assembly
                           Phenom100/300        Complementation        Equipage
    Chemical
     Milling         Others/New Products



                 Sheet Metal             Sheet Metal              Sub - Assy            Cabinetry
                    BOT                     SJK                     BOT                   Shop
                                                                                                       Bottlenecks
                                                                                                       Under Control

                                                                                                                     17
Investment – Embraer 170/190
                                         2007                                                       2008
       JAN   FEB   MAR    APR     MAI     JUN    JUL    AUG   SEP   OCT   NOV   DEC   JAN   FEB   MAR   APR   MAI   JUN   JUL

                          Paint Booth Expansion F210
                                           Paint Booth Upgrade F41
                                                                                                                                BOT
               3 axis Dimensional Machine – Machining shop
                           Shot Peening – Machining shop
                         Router – Sheet Metal shop
                                                       Cadmium Treatment
                                        5 axis Router - Composite
                                Laser Positioning System - Composite
                     Tubing Expanding Machine
                    Surface Treatment – Tubing Shop
                                                Hangar Expansion - Wing 190 Assy
                    Router – Sheet Metal BOT
                                           Detail Parts Paint Booth - BOT
                                                   Riveting Machine– BOT

              Sheet Metal Shop Expansion - BOT
                         Calender – Sheet Metal Shop BOT



                                                                                                                                18
BOT Plant - E-170/190 Investment

Examples                   Rivet Automatic Machining




            Strech press                               Calender




                                                                  19
Investment – Embraer 170/190
                                         2007                                                       2008
       JAN   FEB   MAR    APR     MAI     JUN    JUL    AUG   SEP   OCT   NOV   DEC   JAN   FEB   MAR   APR   MAI   JUN   JUL

                          Paint Booth Expansion F210
                                           Paint Booth Upgrade F41
               3 axis Dimensional Machine – Machining shop
                           Shot Peening – Machining shop
                         Router – Sheet Metal shop                                                                              SJK
                                                       Cadmium Treatment
                                        5 axis Router - Composite
                                Laser Positioning System - Composite
                     Tubing Expanding Machine
                    Surface Treatment – Tubing Shop
                                                Hangar Expansion - Wing 190 Assy
                    Router – Sheet Metal BOT
                                           Detail Parts Paint Booth - BOT
                                                   Riveting Machine– BOT

              Sheet Metal Shop Expansion - BOT
                         Calender – Sheet Metal Shop BOT



                                                                                                                                20
SJK Plant - E-170/190 Investment

Examples
           Router – Sheet Metal    Paint Booth Expansion F210




           Router - Composite             Shot Peening




                                                                21
Investment – Phenom 100/300
                              2007                                                                       2008
JAN   FEB   MAR   APR   MAI   JUN    JUL    AUG   SEP    OCT   NOV   DEC   JAN   FEB   MAR   APR   MAI    JUN   JUL   AUG   SEP   OCT   NOV   DEC

                                              5 axis Router - Composite
                   Fabric Cutting Machine - Composite
                                                                                                                                          GPX
                  Router – Cabinetry Shop
                                             Wiring Laser and Cutting Machine - Harness
                                                  Harness Test Machine
                                                                           Flanging Machine - Tubing
                         Cabinetry Shop Extension
                                              Veneer Room Upgrade
                                                    3 axis Ultrasound - Composite
                        Painting Booth - GPX
                                Fuselage Skin Facility - BOT
                                                               Stretch Press – BOT
                                                        Sheet Metal Router - BOT
                                                    Riveting Machine - BOT
                  Deburring Machine - BOT
                                           Structural Assembly Hangar - BOT
        Sheet Metal Shop Expansion - BOT


                                                                                                                                          22
GPX Plant – Phenom 100/300 Investment

Examples
                      Phenom 100/300 final assembly hangar construction




                                            Cabinetry shop extension



                                                                          23
Investment – Phenom 100/300
                              2007                                                                       2008
JAN   FEB   MAR   APR   MAI   JUN    JUL    AUG   SEP    OCT   NOV   DEC   JAN   FEB   MAR   APR   MAI    JUN   JUL   AUG   SEP   OCT   NOV   DEC

                                              5 axis Router - Composite
                   Fabric Cutting Machine - Composite
                  Router – Cabinetry Shop
                                             Wiring Laser and Cutting Machine - Harness
                                                  Harness Test Machine
                                                                                                                                          BOT
                                                                           Flanging Machine - Tubing
                         Cabinetry Shop Extension
                                              Veneer Room Upgrade
                                                    3 axis Ultrasound - Composite
                        Painting Booth - GPX
                                Fuselage Skin Facility - BOT
                                                               Stretch Press – BOT
                                                        Sheet Metal Router - BOT
                                                    Riveting Machine - BOT
                  Deburring Machine - BOT
                                           Structural Assembly Hangar - BOT
        Sheet Metal Shop Expansion - BOT


                                                                                                                                          24
BOT Plant - Phenom 100/300 Investment

Examples   Sheet metal shop expansion     Fuselage skin facility




           Structural assembly hangar   Riveting automatic machine




                                                                     25
Investment – Phenom 100/300
                              2007                                                                       2008
JAN   FEB   MAR   APR   MAI   JUN    JUL    AUG   SEP    OCT   NOV   DEC   JAN   FEB   MAR   APR   MAI    JUN   JUL   AUG   SEP   OCT   NOV    DEC

                                              5 axis Router - Composite
                   Fabric Cutting Machine - Composite
                  Router – Cabinetry Shop
                                             Wiring Laser and Cutting Machine - Harness
                                                  Harness Test Machine
                                                                           Flanging Machine - Tubing
                         Cabinetry Shop Extension
                                              Veneer Room Upgrade                                                                             SJK
                                                    3 axis Ultrasound - Composite
                        Painting Booth - GPX
                                Fuselage Skin Facility - BOT
                                                               Stretch Press – BOT
                                                        Sheet Metal Router - BOT
                                                    Riveting Machine - BOT
                  Deburring Machine - BOT
                                           Structural Assembly Hangar - BOT
        Sheet Metal Shop Expansion - BOT


                                                                                                                                          26
SJK Plant – Phenom 100/300 Investment

Examples      CNC 3 axis ultrasound              Fabric cutting machine




           Composite 5 axis router machine   Wiring laser and cutting machine




                                                                                27
Points of Attention (Oct 2007)

      Labor                           Structural and Final Assembly
                      E170/190
                                                                     E170 Wing - SJK   Wing Equipage
     Suppliers
                                                 Fuselage Mating        Fuselage
                                                                                         E170 Dock
                                                    E170/175            Equipage
    Outsourcing               Segments
                           E170/190/Lineage
                                                 Fuselage Mating        Fuselage
                                                                                         E190 Dock
                                                    E190/195            Equipage
      Tubing
                                                                     E190 Wing - GPX   Wing Equipage

     Harness                                                                                                Flight
                      Legacy/145                                                                         Preparation
                                                 Underbelly Tank
                                                                     Legacy/145 Wing   Wing Equipage
                                                   Assembly
    Composite
                                 Segments          Mating and           Fuselage
                                                                                       Final Assembly
                                 Legacy/145      Complementation        Equipage
                                                                                                           Deliveries
     Painting
                      Phenom100/300                                  Ph100/300 Wing
                                                                                       Wing Equipage
                                                                          BOT
    Machining                 Segments             Mating and           Fuselage
                                                                                       Final Assembly
                            Phenom100/300        Complementation        Equipage
     Chemical
      Milling         Others/New Products



                  Sheet Metal             Sheet Metal              Sub - Assy            Cabinetry
                     BOT                     SJK                     BOT                   Shop
                                                                                                        Points of Attention
                                                                                                        Under Control

                                                                                                                      28
Points of Attention (Oct 2007)

      Labor                          Structural and Final Assembly
                                                      E170 Wing - SJK                 Wing Equipage
     Suppliers            Worldwide mechanical hardware shortage
                                                Fuselage Mating        Fuselage
                                                                                        E170 Dock
                                                   E170/175            Equipage
    Outsourcing               Segments
                           E170/190/Lineage
                                                Fuselage Mating        Fuselage
                                                                                        E190 Dock
                                                   E190/195            Equipage
      Tubing
                                                                    E190 Wing - GPX   Wing Equipage

     Harness                                                                                               Flight
                      Legacy/145                                                                        Preparation
                                                Underbelly Tank
                                                                    Legacy/145 Wing   Wing Equipage
                                                  Assembly
    Composite
                                Segments          Mating and           Fuselage
                                                                                      Final Assembly
                                Legacy/145      Complementation        Equipage
                                                                                                          Deliveries
     Painting
                      Phenom100/300                                 Ph100/300 Wing
                                                                                      Wing Equipage
                                                                         BOT
    Machining                 Segments            Mating and           Fuselage
                                                                                      Final Assembly
                            Phenom100/300       Complementation        Equipage
     Chemical
      Milling         Others/New Products



                  Sheet Metal            Sheet Metal              Sub - Assy            Cabinetry
                     BOT                    SJK                     BOT                   Shop
                                                                                                       Points of Attention
                                                                                                       Under Control

                                                                                                                     29
Points of Attention (Oct 2007)

      Labor                           Structural and Final Assembly
                      E170/190
                                                                     E170 Wing - SJK   Wing Equipage
     Suppliers
                                                 Fuselage Mating        Fuselage
                                                                                         E170 Dock
                                                    E170/175            Equipage
    Outsourcing               Segments
                           E170/190/Lineage
                                                 Fuselage Mating        Fuselage
                                                                                         E190 Dock
                                                    E190/195            Equipage
      Tubing
                                                                     E190 Wing - GPX   Wing Equipage

     Harness                                                                                                Flight
                      Legacy/145                                                                         Preparation
                                                 Underbelly Tank
                                                                     Legacy/145 Wing   Wing Equipage
                                                   Assembly
    Composite       Outsourcing program and lean manufacturing initiatives under execution
                                 Segments          Mating and           Fuselage
                                                                                       Final Assembly
                                 Legacy/145      Complementation        Equipage
                                                                                                           Deliveries
     Painting
                      Phenom100/300                                  Ph100/300 Wing
                                                                                       Wing Equipage
                                                                          BOT
    Machining                 Segments             Mating and           Fuselage
                                                                                       Final Assembly
                            Phenom100/300        Complementation        Equipage
     Chemical
      Milling         Others/New Products



                  Sheet Metal             Sheet Metal              Sub - Assy            Cabinetry
                     BOT                     SJK                     BOT                   Shop
                                                                                                        Points of Attention
                                                                                                        Under Control

                                                                                                                      30
VOP Strategies


 • VOP re-organization


 • Production Management and Investment


 • Productivity Improvement
   • Lean
  • Automation




                                          31
Lean Initiatives


               Composite         E170/190 Wing-Fus Mating
                Harness            Legacy Fuselage Mating
                   Tubing       E170/190 Fwd Structural Assembly

            Surface Treatment             MRB Room
             Chemical Milling            Supply Chain
             Cabinetry shop                F5 & ALX
           E170 wing assembly     E170/190 Final Assembly
           E190 wing assembly     Phenom Final Assembly




                                                                   32
Lean Initiatives


               Composite         E170/190 Wing-Fus Mating
                Harness            Legacy Fuselage Mating
                   Tubing       E170/190 Fwd Structural Assembly

            Surface Treatment             MRB Room
             Chemical Milling            Supply Chain
             Cabinetry shop                F5 & ALX
           E170 wing assembly     E170/190 Final Assembly
           E190 wing assembly     Phenom Final Assembly




                                                                   33
Lean Initiative – Composite Shop

                  June 07                             September 07




  Operator’s movements per day: 49       Working cells
  Walking distance: 3.900 ft (1.200 m)   Operator fixed in the cell
                                         Visual Management


                                                                      34
Lean Initiative – Composite Shop

                Hand-Layup (Daily Produced Parts )



          200



          150
    OPs




          100



          50



           0
                MAI     JUN     JUL      AUG         SEP



                                                           35
Lean Initiatives


               Composite         E170/190 Wing-Fus Mating
                Harness            Legacy Fuselage Mating
                   Tubing       E170/190 Fwd Structural Assembly

            Surface Treatment             MRB Room
             Chemical Milling            Supply Chain
             Cabinetry shop                F5 & ALX
           E170 wing assembly     E170/190 Final Assembly
           E190 wing assembly     Phenom Final Assembly




                                                                   36
Lean Initiative – Harness Shop


         June 07                             September 07




                            20% of total area released for future expansions


                                                                       37
Lean Initiatives


               Composite         E170/190 Wing-Fus Mating
                Harness            Legacy Fuselage Mating
                   Tubing       E170/190 Fwd Structural Assembly

            Surface Treatment             MRB Room
             Chemical Milling            Supply Chain
             Cabinetry shop                F5 & ALX
           E170 wing assembly     E170/190 Final Assembly
           E190 wing assembly     Phenom Final Assembly




                                                                   38
Lean Initiative – Tubing Shop

          August 07                         September 07




                            Layout review

                            540 sqft (50 m²) released for future expansions


                                                                        39
Lean Initiatives


               Composite         E170/190 Wing-Fus Mating
                Harness            Legacy Fuselage Mating
                   Tubing       E170/190 Fwd Structural Assembly

            Surface Treatment             MRB Room
             Chemical Milling            Supply Chain
             Cabinetry shop                F5 & ALX
           E170 wing assembly     E170/190 Final Assembly
           E190 wing assembly     Phenom Final Assembly




                                                                   40
Phenom 100 / 300 Final Assembly - Initial Concept

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

• High performance line
• Material Supermarket
• Visual Management
• Standardized Work
• Fixed Workcenter per employee (Multi-functional)




                         Phenom 100                      Phenom 300
                                                                      41
Phenom 100 - Digital Manufacturing (2006)




                                            42
Phenom 100 – Industrial Architecture

  BOT                                                                         SJK
   Aft         Central       Forward      Doors      Nacells
                                                                                             Composite
                                       Tail cone     Forward
                                                                              Vertical     Horizontal       Fairing
                                                       Skin
                                                                               Tail           Tail       Wing/Fuselage


                                              Wing



         Fuselage Mating




 GPX


    Fuselage               Wing and                               Flight          Production Flight         Completion
    Equipage               Fuselage       Systems Integration                       and Painting
                                                                Preparation
                            Mating

                         Assembly Line

                                                                                                                    43
Phenom 100/300 Fuselage Assembly Flow
 Botucatu Unit
                              Phenom 300

                                           Phenom 100




                                                        44
Phenom 100/300 Wing Assembly Flow
 Botucatu Unit
                               Phenom 300

                                            Phenom 100




                                                     45
Phenom 100/300 Assembly Line
Gavião Peixoto Unit
                                            Available area


                                                     Single Assembly Line




                          In Conception                                     Completion Center




    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

                                                                                                46
VOP Strategies


• VOP re-organization


• Production Management and Investment


• Productivity Improvement
  • Lean
 • Automation




                                         47
Automation

 Phenom Wing Automated Drilling



 Pressure Bulkhead and Phenom Spars Riveting



 Phenom Nacelle Riveting



 Large Panels Automated Riveting




 Mask Laser Cutting


                                               48
Automation

 Phenom Wing Automated Drilling




                                  49
Phenom Wing Automated Drilling

       Current Process           New Concept




                     Manual                    Automatic




                                                       50
Automation



 Pressure Bulkhead and Phenom Spars Riveting




                                               51
Pressure Bulkhead and Phenom Spars Riveting

        Current Process                New Concept




          Manual




                     Manual                    Automatic

                                                           52
Automation




 Phenom Nacelle Riveting




                           53
Phenom Nacelle Riveting

       Current Process        New Concept




                     Manual                 Automatic




                                                 54
Automation




 Large Panels Automated Riveting




                                   55
Large Panels Automated Riveting

       Current Process            New Concept




            3 Parts                 Single Part

                                                  56
Automation




 Mask Laser Cutting


                      57
Mask Laser Cutting

        Current Process        New Concept




                      Manual                 Automatic




                                                     58
Planned Ramp-Up in 2006


                                 70 to 78 Seats
Embraer 170/190:
2006 – Up to 08 A/C per month
                                 78 to 86 Seats
2007 – Up to 12 A/C per month
2008 – Up to 14 A/C per month
                                 98 to 106 Seats



                                 108 to 118 Seats




Phenom 100/300
2H08 – 15 to 20 A/C per year
2009 – 120 to 155 A/C per year




                                                    59
Currently and Planned Production Rate


                                        70 to 78 Seats
 Embraer 170/190:
 2006 – Up to 08 A/C per month
                                        78 to 86 Seats
 2007 – Up to 12 14 A/C per month
 2008 – Up to 14 A/C per month
                                        98 to 106 Seats



                                        108 to 118 Seats




 Phenom 100/300
 2H08 – 15 to 20 A/C per year
 2009 – 120 to 155 A/C per year




                                                           60
2007 – Deliveries



                            47


                     36


            25




           1Q07     2Q07   3Q07




                                  61
Thank you
            62

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Industrial operations embraer day 2007

  • 1. Embraer Day Industrial Operations Overview Nov 13th, 2007 Artur Coutinho Executive Vice-President Industrial Operations 1
  • 2. Products Portfolio - Production and Development ERJ 145 Series ERJ 135 ERJ 140 ERJ 145 XR ERJ 145 EMBRAER 170/190 Series EMBRAER 170 EMBRAER 175 EMBRAER 190 EMBRAER 195 Under Development Defense Executive Jets ALX AEW Legacy 600 Phenom 100 Phenom 300 Lineage 1000 2
  • 4. Global Business • Operations in Brazil, United States, Europe and Asia USA France Villepinte Nashville Fort Lauderdale Le Bourget China Beijing Portugal Harbin Alverca Singapore Singapore Brazil Gavião Peixoto Botucatu São José dos Campos Eugênio de Melo 4
  • 5. Location – Industrial Units Five plants Brazil BRAZIL Gavião Peixoto Botucatu Eugênio de São Paulo State Melo São Paulo São José dos Campos - (2 units) 5
  • 6. Embraer Units - Faria Lima Plant - SJK 66
  • 7. Embraer Units - Faria Lima Plant - SJK 77
  • 8. Embraer Units - Gavião Peixoto Plant - GPX 88
  • 9. Embraer Units - Gavião Peixoto Plant - GPX 99
  • 10. Embraer Units - Botucatu Plant - BOT 1010
  • 11. Embraer Units - Eugênio de Melo Plant - EGM 11 11
  • 12. VOP Strategies • VOP re-organization • Production Management and Investment • Productivity Improvement • Lean • Automation 12
  • 13. VOP Strategies • VOP re-organization • Production Management and Investment • Productivity Improvement • Lean • Automation 13
  • 14. Industrial Operations Organization - 2006 CEO Industrial Operation - VP Industrial Op. Integration Product Industrial Op. Logistic and Fabrication Gavião Supply Chain Botucatu Unit Quality Planning Control SJK/EGM Peixoto Unit 14
  • 15. Industrial Operations Organization - 2007 CEO Industrial Operation - VP Industrial Strategy Final Product Logistic and Fabrication Gavião Supply Chain Assembly Botucatu Unit Quality Control SJK/EGM Peixoto Unit SJK Industrial Op. Integration Commercial Aviation Industrial Op. Integration Executive Aviation 15
  • 16. VOP Strategies • VOP re-organization • Production Management and Investment • Productivity Improvement • Lean • Automation 16
  • 17. Bottlenecks (Feb 2007) Labor Structural and Final Assembly E170/190 E170 Wing - SJK Wing Equipage Suppliers Fuselage Mating Fuselage E170 Dock E170/175 Equipage Outsourcing Segments E170/190/Lineage Fuselage Mating Fuselage E190 Dock E190/195 Equipage Tubing E190 Wing - GPX Wing Equipage Harness Flight Legacy/145 Preparation Underbelly Tank Legacy/145 Wing Wing Equipage Assembly Composite Segments Mating and Fuselage Final Assembly Legacy/145 Complementation Equipage Deliveries Painting Phenom100/300 Ph100/300 Wing Wing Equipage BOT Machining Segments Mating and Fuselage Final Assembly Phenom100/300 Complementation Equipage Chemical Milling Others/New Products Sheet Metal Sheet Metal Sub - Assy Cabinetry BOT SJK BOT Shop Bottlenecks Under Control 17
  • 18. Investment – Embraer 170/190 2007 2008 JAN FEB MAR APR MAI JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAI JUN JUL Paint Booth Expansion F210 Paint Booth Upgrade F41 BOT 3 axis Dimensional Machine – Machining shop Shot Peening – Machining shop Router – Sheet Metal shop Cadmium Treatment 5 axis Router - Composite Laser Positioning System - Composite Tubing Expanding Machine Surface Treatment – Tubing Shop Hangar Expansion - Wing 190 Assy Router – Sheet Metal BOT Detail Parts Paint Booth - BOT Riveting Machine– BOT Sheet Metal Shop Expansion - BOT Calender – Sheet Metal Shop BOT 18
  • 19. BOT Plant - E-170/190 Investment Examples Rivet Automatic Machining Strech press Calender 19
  • 20. Investment – Embraer 170/190 2007 2008 JAN FEB MAR APR MAI JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAI JUN JUL Paint Booth Expansion F210 Paint Booth Upgrade F41 3 axis Dimensional Machine – Machining shop Shot Peening – Machining shop Router – Sheet Metal shop SJK Cadmium Treatment 5 axis Router - Composite Laser Positioning System - Composite Tubing Expanding Machine Surface Treatment – Tubing Shop Hangar Expansion - Wing 190 Assy Router – Sheet Metal BOT Detail Parts Paint Booth - BOT Riveting Machine– BOT Sheet Metal Shop Expansion - BOT Calender – Sheet Metal Shop BOT 20
  • 21. SJK Plant - E-170/190 Investment Examples Router – Sheet Metal Paint Booth Expansion F210 Router - Composite Shot Peening 21
  • 22. Investment – Phenom 100/300 2007 2008 JAN FEB MAR APR MAI JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAI JUN JUL AUG SEP OCT NOV DEC 5 axis Router - Composite Fabric Cutting Machine - Composite GPX Router – Cabinetry Shop Wiring Laser and Cutting Machine - Harness Harness Test Machine Flanging Machine - Tubing Cabinetry Shop Extension Veneer Room Upgrade 3 axis Ultrasound - Composite Painting Booth - GPX Fuselage Skin Facility - BOT Stretch Press – BOT Sheet Metal Router - BOT Riveting Machine - BOT Deburring Machine - BOT Structural Assembly Hangar - BOT Sheet Metal Shop Expansion - BOT 22
  • 23. GPX Plant – Phenom 100/300 Investment Examples Phenom 100/300 final assembly hangar construction Cabinetry shop extension 23
  • 24. Investment – Phenom 100/300 2007 2008 JAN FEB MAR APR MAI JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAI JUN JUL AUG SEP OCT NOV DEC 5 axis Router - Composite Fabric Cutting Machine - Composite Router – Cabinetry Shop Wiring Laser and Cutting Machine - Harness Harness Test Machine BOT Flanging Machine - Tubing Cabinetry Shop Extension Veneer Room Upgrade 3 axis Ultrasound - Composite Painting Booth - GPX Fuselage Skin Facility - BOT Stretch Press – BOT Sheet Metal Router - BOT Riveting Machine - BOT Deburring Machine - BOT Structural Assembly Hangar - BOT Sheet Metal Shop Expansion - BOT 24
  • 25. BOT Plant - Phenom 100/300 Investment Examples Sheet metal shop expansion Fuselage skin facility Structural assembly hangar Riveting automatic machine 25
  • 26. Investment – Phenom 100/300 2007 2008 JAN FEB MAR APR MAI JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAI JUN JUL AUG SEP OCT NOV DEC 5 axis Router - Composite Fabric Cutting Machine - Composite Router – Cabinetry Shop Wiring Laser and Cutting Machine - Harness Harness Test Machine Flanging Machine - Tubing Cabinetry Shop Extension Veneer Room Upgrade SJK 3 axis Ultrasound - Composite Painting Booth - GPX Fuselage Skin Facility - BOT Stretch Press – BOT Sheet Metal Router - BOT Riveting Machine - BOT Deburring Machine - BOT Structural Assembly Hangar - BOT Sheet Metal Shop Expansion - BOT 26
  • 27. SJK Plant – Phenom 100/300 Investment Examples CNC 3 axis ultrasound Fabric cutting machine Composite 5 axis router machine Wiring laser and cutting machine 27
  • 28. Points of Attention (Oct 2007) Labor Structural and Final Assembly E170/190 E170 Wing - SJK Wing Equipage Suppliers Fuselage Mating Fuselage E170 Dock E170/175 Equipage Outsourcing Segments E170/190/Lineage Fuselage Mating Fuselage E190 Dock E190/195 Equipage Tubing E190 Wing - GPX Wing Equipage Harness Flight Legacy/145 Preparation Underbelly Tank Legacy/145 Wing Wing Equipage Assembly Composite Segments Mating and Fuselage Final Assembly Legacy/145 Complementation Equipage Deliveries Painting Phenom100/300 Ph100/300 Wing Wing Equipage BOT Machining Segments Mating and Fuselage Final Assembly Phenom100/300 Complementation Equipage Chemical Milling Others/New Products Sheet Metal Sheet Metal Sub - Assy Cabinetry BOT SJK BOT Shop Points of Attention Under Control 28
  • 29. Points of Attention (Oct 2007) Labor Structural and Final Assembly E170 Wing - SJK Wing Equipage Suppliers Worldwide mechanical hardware shortage Fuselage Mating Fuselage E170 Dock E170/175 Equipage Outsourcing Segments E170/190/Lineage Fuselage Mating Fuselage E190 Dock E190/195 Equipage Tubing E190 Wing - GPX Wing Equipage Harness Flight Legacy/145 Preparation Underbelly Tank Legacy/145 Wing Wing Equipage Assembly Composite Segments Mating and Fuselage Final Assembly Legacy/145 Complementation Equipage Deliveries Painting Phenom100/300 Ph100/300 Wing Wing Equipage BOT Machining Segments Mating and Fuselage Final Assembly Phenom100/300 Complementation Equipage Chemical Milling Others/New Products Sheet Metal Sheet Metal Sub - Assy Cabinetry BOT SJK BOT Shop Points of Attention Under Control 29
  • 30. Points of Attention (Oct 2007) Labor Structural and Final Assembly E170/190 E170 Wing - SJK Wing Equipage Suppliers Fuselage Mating Fuselage E170 Dock E170/175 Equipage Outsourcing Segments E170/190/Lineage Fuselage Mating Fuselage E190 Dock E190/195 Equipage Tubing E190 Wing - GPX Wing Equipage Harness Flight Legacy/145 Preparation Underbelly Tank Legacy/145 Wing Wing Equipage Assembly Composite Outsourcing program and lean manufacturing initiatives under execution Segments Mating and Fuselage Final Assembly Legacy/145 Complementation Equipage Deliveries Painting Phenom100/300 Ph100/300 Wing Wing Equipage BOT Machining Segments Mating and Fuselage Final Assembly Phenom100/300 Complementation Equipage Chemical Milling Others/New Products Sheet Metal Sheet Metal Sub - Assy Cabinetry BOT SJK BOT Shop Points of Attention Under Control 30
  • 31. VOP Strategies • VOP re-organization • Production Management and Investment • Productivity Improvement • Lean • Automation 31
  • 32. Lean Initiatives Composite E170/190 Wing-Fus Mating Harness Legacy Fuselage Mating Tubing E170/190 Fwd Structural Assembly Surface Treatment MRB Room Chemical Milling Supply Chain Cabinetry shop F5 & ALX E170 wing assembly E170/190 Final Assembly E190 wing assembly Phenom Final Assembly 32
  • 33. Lean Initiatives Composite E170/190 Wing-Fus Mating Harness Legacy Fuselage Mating Tubing E170/190 Fwd Structural Assembly Surface Treatment MRB Room Chemical Milling Supply Chain Cabinetry shop F5 & ALX E170 wing assembly E170/190 Final Assembly E190 wing assembly Phenom Final Assembly 33
  • 34. Lean Initiative – Composite Shop June 07 September 07 Operator’s movements per day: 49 Working cells Walking distance: 3.900 ft (1.200 m) Operator fixed in the cell Visual Management 34
  • 35. Lean Initiative – Composite Shop Hand-Layup (Daily Produced Parts ) 200 150 OPs 100 50 0 MAI JUN JUL AUG SEP 35
  • 36. Lean Initiatives Composite E170/190 Wing-Fus Mating Harness Legacy Fuselage Mating Tubing E170/190 Fwd Structural Assembly Surface Treatment MRB Room Chemical Milling Supply Chain Cabinetry shop F5 & ALX E170 wing assembly E170/190 Final Assembly E190 wing assembly Phenom Final Assembly 36
  • 37. Lean Initiative – Harness Shop June 07 September 07 20% of total area released for future expansions 37
  • 38. Lean Initiatives Composite E170/190 Wing-Fus Mating Harness Legacy Fuselage Mating Tubing E170/190 Fwd Structural Assembly Surface Treatment MRB Room Chemical Milling Supply Chain Cabinetry shop F5 & ALX E170 wing assembly E170/190 Final Assembly E190 wing assembly Phenom Final Assembly 38
  • 39. Lean Initiative – Tubing Shop August 07 September 07 Layout review 540 sqft (50 m²) released for future expansions 39
  • 40. Lean Initiatives Composite E170/190 Wing-Fus Mating Harness Legacy Fuselage Mating Tubing E170/190 Fwd Structural Assembly Surface Treatment MRB Room Chemical Milling Supply Chain Cabinetry shop F5 & ALX E170 wing assembly E170/190 Final Assembly E190 wing assembly Phenom Final Assembly 40
  • 41. Phenom 100 / 300 Final Assembly - Initial Concept 2006 Phenom program was considered as strategic to the 2006 introduction of Lean Manufacturing concept at Embraer • High performance line • Material Supermarket • Visual Management • Standardized Work • Fixed Workcenter per employee (Multi-functional) Phenom 100 Phenom 300 41
  • 42. Phenom 100 - Digital Manufacturing (2006) 42
  • 43. Phenom 100 – Industrial Architecture BOT SJK Aft Central Forward Doors Nacells Composite Tail cone Forward Vertical Horizontal Fairing Skin Tail Tail Wing/Fuselage Wing Fuselage Mating GPX Fuselage Wing and Flight Production Flight Completion Equipage Fuselage Systems Integration and Painting Preparation Mating Assembly Line 43
  • 44. Phenom 100/300 Fuselage Assembly Flow Botucatu Unit Phenom 300 Phenom 100 44
  • 45. Phenom 100/300 Wing Assembly Flow Botucatu Unit Phenom 300 Phenom 100 45
  • 46. Phenom 100/300 Assembly Line Gavião Peixoto Unit Available area Single Assembly Line In Conception Completion Center 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 46
  • 47. VOP Strategies • VOP re-organization • Production Management and Investment • Productivity Improvement • Lean • Automation 47
  • 48. Automation Phenom Wing Automated Drilling Pressure Bulkhead and Phenom Spars Riveting Phenom Nacelle Riveting Large Panels Automated Riveting Mask Laser Cutting 48
  • 49. Automation Phenom Wing Automated Drilling 49
  • 50. Phenom Wing Automated Drilling Current Process New Concept Manual Automatic 50
  • 51. Automation Pressure Bulkhead and Phenom Spars Riveting 51
  • 52. Pressure Bulkhead and Phenom Spars Riveting Current Process New Concept Manual Manual Automatic 52
  • 54. Phenom Nacelle Riveting Current Process New Concept Manual Automatic 54
  • 55. Automation Large Panels Automated Riveting 55
  • 56. Large Panels Automated Riveting Current Process New Concept 3 Parts Single Part 56
  • 57. Automation Mask Laser Cutting 57
  • 58. Mask Laser Cutting Current Process New Concept Manual Automatic 58
  • 59. Planned Ramp-Up in 2006 70 to 78 Seats Embraer 170/190: 2006 – Up to 08 A/C per month 78 to 86 Seats 2007 – Up to 12 A/C per month 2008 – Up to 14 A/C per month 98 to 106 Seats 108 to 118 Seats Phenom 100/300 2H08 – 15 to 20 A/C per year 2009 – 120 to 155 A/C per year 59
  • 60. Currently and Planned Production Rate 70 to 78 Seats Embraer 170/190: 2006 – Up to 08 A/C per month 78 to 86 Seats 2007 – Up to 12 14 A/C per month 2008 – Up to 14 A/C per month 98 to 106 Seats 108 to 118 Seats Phenom 100/300 2H08 – 15 to 20 A/C per year 2009 – 120 to 155 A/C per year 60
  • 61. 2007 – Deliveries 47 36 25 1Q07 2Q07 3Q07 61
  • 62. Thank you 62