P3E - Embraer Enterprise

Excellence Program
BBC 2013, November, 14th
Marco Cesarino KPO & Head of Excellence,
Embraer Defense and Security
IMPROVEMENTS ON A CONTINUOUS
IMPROVEMENT JOURNEY
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Agenda
About EMBRAER S.A.
Embraer Enterprise Excellence Program - P3E
Continuous improvement Defense and Security Business Unit
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Our business is to generate value
for our shareholders, customers,
employees and society,
with behavioral integrity, and an
environmental and social
conscience.
EMBRAER: GLOBAL COMPANY
HEADQUARTERED IN BRAZIL.
WE HAVE DEVELOPED OUR
BUSINESS IN THE AREAS OF:
COMMERCIAL
AVIATION
EXECUTIVE
AVIATION
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EMBRAER
DEFENSE &
SECURITY
EMBRAER YESTERDAY AND TODAY
Success story
Controlled by the Federal
Government, Embraer is
born in order to develop
Brazils aeronautical
engineering capacity and
to produce airplanes.
1969
2013
1994
1949
One of the main
global manufacturers
of commercial and
executive aircraft, with
strong and growing
involvement in
defense and security.
The company
is privatized,
leading to a new
structure that
combines
technological
and industrial
knowledge with
an entrepreneurial
culture.
Brazil creates
strategic national
aeronautics
project creation
of CTA and ITA.
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This information is property of Embraer and cannot be used or reproduced without written permission.
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 TOGETHER
AND GUIDE OUR ATTITUDES
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EMBRAER ONTEM E HOJE
Histria de sucesso
Nasce a Embraer,
controlada pelo Governo
Federal, para desenvolver
engenharia aeronutica
no Pas e produzir avies.
1969
2013
1994
1949
Uma das principais
fabricantes mundiais
de aeronaves
comerciais e
executivas, com
forte e crescente
atuao em defesa
e segurana.
A empresa
privatizada,
combinando o
conhecimento
tecnolgico e
industrial com
uma cultura
empreendedora.
Brasil cria projeto
estratgico
nacional na rea
aeronutica
criao do CTA
e do ITA.
Esta informao propriedade da Embraer e no pode ser usada ou reproduzida sem autorizao por escrito.
This information is property of Embraer and cannot be used or reproduced without written permission.
GLOBAL PRESENCE IS OUR FRONTIER
EMBRAER UNITS
Global operations
CHINA
Beijing
Harbin - HEAI
SINGAPORE
Singapore
BRAZIL
So Jos dos Campos
Gavio Peixoto
Botucatu
Taubat
Braslia
Belo Horizonte
So Paulo
FRANCE
Villepinte
Le Bourget
PORTUGAL
Alverca - OGMA
vora
UNITED
STATES
Nashville
Fort Lauderdale
Melbourne
Mesa
Windsor Locks
Jacksonville
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UNITED KINGDOM
Farnborough
UAE
Dubai
IRELAND
Dublin
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OUR PEOPLE ARE WHAT MAKE US FLY
DIVERSITY IS WEALTH
MORE THAN
PEOPLE
19,000
September/2013
89.66%
7.11%
1.55%
0.34% 0.38%
0.92%
0.02%
0.02%
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Agenda
About EMBRAER S.A.
Embraer Enterprise Excellence Program - P3E
Continuous improvement Defense and Security Business Unit
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Our commitment
A quality centered approach
2007...
EXCELLENCE
AGE
ISO 9001
Total Quality
System
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
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Frederico Fleury Curado
President and Chief Executive
Officer EmTempo 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
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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 EMBRAERS
PROCESSES
CONTINUOUS DEVELOPMENT OF
LEADERS AND THEIR MANAGEMENT
SKILLS
PEOPLES DEVELOPMENT
EMBRAER ORGANIZATIONAL CULTURE
DEVELOPMENT
Embraer Enterprise Excellence Program P3E
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Business Performance Pilar
Business Performance Pilar
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Change
Learning with the japanese
Good (for the better)
At Embraer = Intensive workshops to improve processes
Fromwhere we started
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TIME
P
E
R
F
O
R
M
A
N
C
E
Our second step
Set excellence criteria to induce the
continual and gradual improvement
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CELLS ACCORDING TO THE VALUE CHAIN
Understanding the company froma
different perspective
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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
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P3E Operational System
Customer oriented
Customer Customer
Products, Services
and Processes
Products, Services
and Processes
Discrepancies &
Opportunities
Discrepancies &
Opportunities
Business Strategies
And Performance
Business Strategies
And Performance
Quality Clinics Quality Clinics
Value
Expectations
Performance
Market
Feedback
Business
Results
Problem solving
Process improvement and
waste elimination
Corrective
Actions
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Cell s Visual Management Boards
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Quality
Control
Tower
Satisfaction
Process
Maturity
Cell s Visual Management Boards
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BRONZE
Application, improvement
and predictability
QUALIFICATION
Our Journey Excellence starts
here
Customers expectations are identified; targets are set;
Key-process are prioritized
SILVER
Business Results
GOLD
EXCELLENCE!
Cells Evolution
Process Maturity + Results
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Business
Units and
Other VPs
Business
Units and
Other VPs
KPO
LOCAL
CEO
Business
Units
Improvement
Agent
Cell Leader
Governance Structure
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P3E Academy: development tracks
About the kaizen
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Depends on the type of process
Kaizen = Process Improvement Projects
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4
1240
2619
3393
2437
28
288
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 Clula Projeto Kaizen Total
Kaizen projects portifolio
13.213 projetos
2007 - 2013:
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Important philosophy
KAIZEN
KAIZEN VISION
Double the good &
cut the bad in half
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Simple but powerful
As Simple as: post-its + brown paper
AS IS flow example
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Beyond our frontiers
+ 250 projects
+ 70 Suppliers
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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 Defense and Security and cannot be used or reproduced without written permission.
Summarizing: DIFFERENT AGES
We strive for company excellence
Focused on operational excellence
towards to Management Excellence
AFTER P3E
BEFORE P3E
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Continuous improvement of the
Excelence 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
Future 2007 2008 2009 2010 2011 2012 2013 2014
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New challenges
S
t
e
p
s

a
n
d

S
t
r
a
t
e
g
i
e
s
60s - 2010
DEFENSE as a
functional area
Jan, 2011
EMBRAER DEFENSE
AND SECURITY
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LINHA DO TEMPO
Strategic
Plan to
achieve
Excellence
ROADMAP
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LINHA DO TEMPO
Strategic
Plan to
achieve
Excellence
Identifying the
value stream
ROADMAP
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Identifying our value stream
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Shared Understanding (From - To)
From: Contract effective
To: Solution Delivered
From: Opportunities Analisys
To: Contract placed
From: Solution Delivered
To: End of life cycle
1- BUSINESS
DEVELOPMENT AND
SOLUTIONS SELLING
2- SOLUTIONS
DEVELOPMENT AND
DELIVERED
3- SERVE AND
RETAIN
CUSTOMERS
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What was the next step?
Increase the integration
Strengthen the strategy deployment
Reorganize the cells according to the value stream
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LINHA DO TEMPO
Strategic
Plan to
achieve
Excellence
Identifying the
value stream
Strategic
Deployment
ROADMAP
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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)
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LINHA DO TEMPO
Strategic
Plan to
achieve
Excellence
Identifying the
value stream
Change
management
Challenge
Strategic
Deployment
ROADMAP
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TRANSFORMANDO
Leaders: Leading the change
management in a process
oriented way
Transformation
Agents
Internal
Consultant
Members
=
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LINHA DO TEMPO
Strategic
Plan to
achieve
Excellence
Change
management
Challenge
Identifying the
value stream
Strategic
Deployment
Leadership
Readiness
Program
ROADMAP
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Essentials Program Guidelines
Provide Means
Inspire Action
Generate Results: Projects
Leaders: Leading the change
management in a process
oriented way
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This information is property of Embraer Defense and Security and cannot be used or reproduced without written permission.
LINHA DO TEMPO
Strategic
Plan to
achieve
Excellence
Identifying the
value stream
Leadership
Readiness
Program
Management
Excelence
Change
management
Challenge
Strategic
Deployment
ROADMAP
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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
perspective
BPM
2012 Until 2011 2013 & 2012 Until 2011 2013 &
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Management Excellence
Time
P3E Process
Improvement
P3E + BPM
Management by processes
Management of Individual
processes
P
e
r
f
o
r
m
a
n
c
e
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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.
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Proteo ao
Conhecimento
Sensvel
P3E
Projeto de Melhorias
(Kaizen e outros)
Agrupamentos
e Clulas
Formao da
Liderana
Modelo de
Gesto (SEE)
MEG
Polticas e
Requisitos
Registro
Inovao
Frente de
Sustentabilidade
Boa
Ideia
Portiflio
Inovao
Innova
Arquitetura de
Processos
de Negcio
DJSI/ISE
Auditoria
SigMassq
P. D. M.
Amb
Manual da
Gesto
TI
Fluxo de
Valor/Processo
Defense and Security CoE
Mapeamento
Promoo
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Comprehensive Process Architecture
Value Chain
Docum.
structure
Process IT
Maturity
Level
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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
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As a consequence
IN THE LAST 5 YEARS EMBRAER HAVE
INCREASED THE EFFICIENCY AT
HEADQUARTERS FACILITY IN SO JOS
DOS CAMPOS - SP
From 22 to
7 days
50 %
40
defects
40
defects
The final assembly
lead time of an
ariplane. In 2007, it
was 22 days.
The final assembly
lead time of an
ariplane. In 2007, it
was 22 days.
Reduction in the
amount of hours
needed in some
tasks
Reduction in the
amount of hours
needed in some
tasks
Per million .
In 2007= 4000 dpm
Per million .
In 2007= 4000 dpm
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Always better (2007 2012)
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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
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The best company to work for
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The most important thing: Celebration
Cell certifications cerimony
Best kaizen of the year
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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.
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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 3220
marco.cesarino@embraer.com.br