Around

June 2013

AEROSTRUCTURES

Volume 5, No. 2

Introducing Martin Beaulieu

We need to look at cost the same way we look at a products performance, reliability and weight
ith content on a number of new aircraft platforms poised for entry into service, Aerostructures is very well positioned for growth. But while the next few years will be exciting ones, there is also great pressure to execute on schedule and cost on all of these new programs over the next 24-36 months. Helping ensure our business unit is successful on the cost side of the equation is the role of Martin Beaulieu. Beaulieu joined Aerostructures in February as vice president of Operations Strategy & Cost Management. While the title may sound a little intimidating, Beaulieu says cost management is all about making sure Aerostructures is able to maintain its healthy growth curve. The intent here is to generate higher profit margins on the programs weve won so we can reinvest in new programs to meet our customers future needs, he said. To do that, we need to look at cost the same way we look at a products performance, reliability and weight. Around Aerostructures asked Beaulieu to discuss how our business unit will benefit from having a sharpened cost focus. He started his 24-year aerospace career in the early 1990s at a law firm representing Bombardier. He was (Continued)

Martin Beaulieu brings 24 years of business development, operations, supply chain and legal experience to his new role as Aerostructures Operations Strategy & Cost Management vice president. Asked what his denition of success in his new role will be, Beaulieu said: Success will be implementing processes and tools that are sustainable for the entire Aerostructures organization in managing its product costs for all new programs. It will also include developing people that are capable of managing complex projects and interfacing with a global supply chain. (Photo by Patrick Palmer) 1

involved in the Canadian companys acquisitions of De Havilland in Toronto, Learjet in Wichita, Kansas, and Shorts Brothers in Ireland. He then joined Bombardiers supply chain organization. In 1998, Beaulieu became supply chain director for Pratt & Whitney Canadas turbofan and turboprops product line. He went on to run the companys international operations, where he was responsible for developing manufacturing sites and Pratt & Whitney Canadas supply chain in Eastern Europe & Asia. In 2010 he accepted an assignment in San Diego at the Hamilton Sundstrand APU business as director of Operations.

What attracted you to a career in aerospace/aviation? Why did you want to work in this industry?
Aerospace was very attractive to me because it is a global business You have the chance to do business with all kinds of different cultures. Also, aerospace requires long-term perspectives in terms of strategy and business plans. And Ive always been passionate about strategic thinking! I was fortunate to be part of Pratt & Whitney Canadas aggressive growth from 2003 to 2008, when the business quadrupled its sales to $4 billion.

To my knowledge, Aerostructures has never had a leader focused specically on cost management. What benets do you anticipate our business unit will derive from having this sharpened focus?
First, cost management should involve everybody: from engineering, program management, operations, supply chain, quality and all the value streams and support groups. My role is to work with the key stakeholders and make sure we have a clear understanding of our cost structures for the next five years and that we have projects to drive cost reduction for all our products. The business requires this focus to accelerate our cost reduction especially on new programs. We need to continue using Lean, the ACE operating system, value engineering and low-cost country sourcing, but we need do it more efficiently and do it right the first time.

Are you introducing any new systems or tools to help Aerostructures functions or programs identify cost reduction opportunities and track success in meeting them?
Theres no silver bullet its a multitude of projects and programs.

want to leverage some of the processes and tools used by other UTC divisions that have been at cost reduction for many years. For example, by establishing a cost reduction war room and cost management systems linked to SAP, we can drastically reduce the time required for reporting cost data. Also, weve started to implement weekly value stream meetings focused on product cost and projects or ideas to reduce product cost.

I want to leverage some of the processes and tools used by other UTC divisions that have been at cost reduction for many years. For example, by establishing a cost reduction war room and cost management systems linked to SAP, we can drastically reduce the time required for reporting cost data. Also, weve started to implement weekly value stream meetings focused on product cost and projects or ideas to reduce product cost. We also have to manage our key transition projects the transfer of program work from one location to another in a low-cost region of the world with clear accountability from the project leader and with the support of operations, engineering and programs. Increased training on UTCs Standard Work for transitions and program management will help us execute effectively on those key projects. In addition, Aerostructures has an outstanding Lean culture that we need to continue leveraging every day to drive product cost reductions.

ve participated in a lot of team sports, such as hockey. As a result, I believe a lot in teamwork and team success We win as a team or we lose as a team. Aerostructures is clearly a winning team!

Have you seen any examples of effective cost management/reduction at Aerostructures that have impressed you?
(Continued)

Yes, I have been impressed by the deployment of Lean and Standard Work in every Aerostructures facility that I have visited so far. I have not seen such detailed work by the manufacturing engineers to reduce labor hours in any other UTC aerospace division.

You will also be focusing on reducing commodity costs. What are some of the ways you will be going about achieving that goal?
First, we need to establish commodity strategies to achieve our program goals in terms of cost, quality, capacity and overall performance. Those strategies need to be linked to UTC and UTC Aerospace Systems strategies so we can leverage the UTC supplier base as much as possible. In fact, UTC is currently launching a One Company supply chain initiative to optimize and integrate its supply chain for enhanced performance from its suppliers. Our supply chain commodity leaders at Aerostructures will play a major role in this effort.

New Operations Strategy & Cost Management Vice President Martin Beaulieu believes one best practice for managing costs effectively is to make the process visual. (Photo by Patrick Palmer)

The intent is to have our supply chain people spending more time on strategy and less on place and chase of commodities.

What do you see as Aerostructures greatest areas of opportunity and biggest challenges in terms of cost reduction?
The biggest challenge clearly will be to meet our target costs on all of the new programs at entry into service the A350 XWB, the CSeries, the A320neo, the MRJ, the new Embraer platforms, and the 787. In order to do that, we have to integrate our internal sites and supply chain in the design and development process as early as possible. Also, we will have to manage a lot of transitions from our traditional suppliers to new suppliers in emerging markets such as Malaysia, China and Vietnam. And we must do all of this within a short period of time.

erostructures has an outstanding Lean culture that we need to continue leveraging every day to drive product cost reductions.

The biggest opportunity is to leverage all the new programs that we won over the last couple of years and get very competitive pricing from the supply chain due to increased volume.

How would you sum up your general leadership philosophy and expectations of employees in a few sentences?
Ive had the chance to travel around the world over the last 15 years and have observed that, with globalization, any asset, technology, infrastructure, or piece of equipment is now available anywhere. But what truly makes the difference are the people. So my philosophy is very simple: we have to focus on developing the right people and give them an environment where their talent will be used efficiently If we give them the right tools, they will make the difference. Also, since a young age Ive participated in a lot of team sports, such as hockey. As a result, I believe a lot in teamwork and team success We win as a team or we lose as a team. Aerostructures is clearly a winning team!

On a personal level what makes you say: Today was a good day at work?
On a personal level, a good day at work could be a lot of different things: meeting new people, resolving issues or learning new things. In Operations a good day is when nothing unpredictable happens: no shortages, no quality issues, only a good flow of products going out the door. 3

A prole of the Aerostructures Europe Hamburg facility

June marks the 20th year of operations for German site and its unprecedented approach to engine/ nacelle/aircraft integration
The Airbus A321 is the largest member of the A320 Family. And Airbus launch of the stretched version of its bestseller in the late 1980s played a large role in the evolution of Aerostructures Hamburg, Germany facility. Following commitments from 10 customers to buy 183 stretched A320 aircraft, Airbus formally launched the A321 program in 1988. With a fuselage 22 feet and 9 inches longer than the A320, the new plane was designed to accommodate 185 to 220 passengers. Following debates within Airbus most of them between the French and German consortium partners the decision was made to assemble the A321 at Airbus Hamburg Final Assembly Line with the A320 assembly line remaining in Toulouse, France.

While the capabilities and production output of Aerostructures Hamburg, Germany site have expanded dramatically since 1993, it maintains its original 33,000 square-foot facility footprint.

Accustomed to the comprehensive nacelle system support Aerostructures (Rohr at the time) supplied for A300, A310 and A320 aircraft assembled in Toulouse, Airbus set the expectation for similar customer service next to its Hamburg A321 Final Assembly Line (FAL). (Continued)

erospace is an industry of passion and technology, where people make a difference. Our team in Hamburg takes pride in being on the front line with our Airbus customer on a daily basis. Such proximity helps us listen to and delight our customer, while also participating as a partner in its successful story.

Meet Hamburg Plant Manager Klaus Zimmer

Klaus Zimmer, a former aeronautical engineer, joined Aerostructures (then Rohr) in 1992 as plant manager of the Hamburg, Germany facility. Prior to that, he served in the German Air Force and worked at Lufthansa Technic a Lufthansa Group subsidiary that provides maintenance, repair and overhaul services for aircraft, engines and components. What is the one career accomplishment at Aerostructures youre most proud of? Leading an excellent team of engaged and motivated people in a global environment and seeing how our business has grown over the years. What do you like best about coming to work every day? Im passionate about the aerospace industry and proud to be a part of it. I enjoy interfacing with our French, U.S. and other international colleagues and the diverse cultures they represent. Whats something you do when youre away from work to relax and unwind and just for sheer enjoyment? Being with my family and spending time playing the guitar and cycling.

As a result, Rohr decided to build a 33,000 square-foot facility in Hamburg. The initial menu of services included: n mechanical installation of hydraulic, pneumatic, electrical and other essential equipment systems to the core engine system; n painting and rigging of the nacelle cowlings; and n installation of completed powerplants on aircraft pylons by Rohr aircraft mechanics and technicians embedded at the Airbus FAL Offering such close support to the airframer at the aircraft FAL was novel for a nacelle supplier at the time and soon proved to be a formidable asset in delighting the customer. As a consequence, the successful model was subsequently exported to Toulouse for the original A320 program. The embedded support model is now part of Aerostructures overall capabilities and is offered to aircraft makers other than Airbus.

Meet Airbus Team Leader Michael Hartel

Michael Hartel joined the Hamburg facility team in 1992 as an aircraft mechanic, then became a quality inspector. He was promoted to his current position as Airbus team leader in 1998. Prior to joining the company, Hartel worked for German aerospace company MBB (Messerschmitt Blkow Blohm), German aircraft manufacturer Dornier, and also served with the German Air Force. What is the one career accomplishment at Aerostructures youre most proud of? Leading Hamburgs Airbus Support Team with its young, engaged people. Im very much looking forward to the future challenges in our business. What do you like best about coming to work every day? Ive enjoyed being able to work for more than 35 years on an incredible technical product like an airplane. Whats something you do when youre away from work to relax and unwind and just for sheer enjoyment? Being with my wife and traveling during vacations or weekends.

From two annual nacelle deliveries to 220

In those early years, Hamburgs output was not overwhelming with two nacelles delivered in 1993 and six in 1994. But fast forward two decades and the evolution of production volume and scope is dramatic. Last year, the Hamburg site and its 67 employees and contractors built 220 nacelles (150 for the V2500 engine configuration and 70 for the CFM56 engine configuration) and delivered 526 total nacelles for the A319/320/321 platforms. Along the way, Hamburg has added to its list of capabilities. Today, the Hamburg team also performs: n nacelle painting and decoration, including application of logos, markings, safety warnings, etc.; n logo positioning by laser; and n A-Frame podding (installation of nacelle system components on an A-frame for aerodynamic measurements and rigging, V2500 thrust reverser sleeve operation testing and other measurement tasks) (Continued)

Hamburgs Final Assembly Line support team is pictured at Airbus installing a CFM56 powerplant on an A321 aircraft. 5

hanks to a successful Lean journey, together with the effort and strong engagement of all of our employees, weve been able to absorb much more work into the same facility footprint, achieving excellent quality levels and almost 100% on-time deliveries.

Meet Quality Manager Jan Kersten

Jan Kersten joined the company in 1992 as an aircraft mechanic. After holding positions in Quality Assurance, he left the company in 2004 to pursue other opportunities. He returned in March 2012 as Quality manager. His previous experience includes positions involving ground support equipment and supply chain management at companies including Lufthansa Technic. What is the one career accomplishment at Aerostructures youre most proud of? Becoming leader of a young, exible and motivated team still living the aerospace dream. What do you like best about coming to work every day? No one day is like the last one. Every new day brings new challenges. Working in the international aerospace industry with a worldwide group of colleagues is a great experience. Once you smell the kerosene, you cant get away from it! Whats something you do when youre away from work to relax and unwind and just for sheer enjoyment? I have a great family standing behind me. On a perfect day, we just y away literally. Being a private pilot gives me the freedom to spend some time above the clouds.

Starting next year, the Hamburg facility will begin performing Pratt & Whitney PW1100G engine/nacelle integration for A320neo Family aircraft. An engaged workforce committed to continuous improvement has driven this evolution, according to Hamburg General Manager Klaus Zimmer.

Passion and technology

Thanks to a successful Lean journey, together with the effort and strong engagement of all of our employees, weve been able to absorb much more work into the same facility footprint, achieving excellent quality levels and almost 100% on-time deliveries, Zimmer said. He continued: Our biggest customer is Aerostructures Toulouse thats where the Hamburg story began. Weve been trained and coached on the job by our French friends since 1993. Thanks to them, weve learned how to operate and achieve our goals. Weve always worked very closely together from a business perspective, as well as in implementing Continuous Improvement and now, the ACE (Achieving Competitive Excellence) operating system. Our other main customer, of course, is Airbus Germany for powerplant installation onto A321 aircraft. In addition, by virtue of its close proximity to Airbus Hamburg FAL, Aerostructures Hamburg team also supports other UTC Aerospace Systems products and the businesses that manufacture them. These include landing gear, interior/cargo systems and evacuation slides for the A380 platform, as well as de-icing systems, sensors, wheels and brakes, and cabin attendant seats featured on all Airbus platforms. Aerospace is an industry of passion and technology, where people make a difference. Our team in Hamburg takes pride in being on the front line with our Airbus customer on a daily basis. Such proximity helps us listen to and delight our customer, while also participating as a partner in its successful story. Were ready for more! concluded Zimmer.

2013 Aerostructures College Scholarship/Grant winners

With the companys help, these 10 students that left indelible impressions on their high schools are out to make their marks on the world
Foley Commodity Administrator Chris Fent sensed he had done something right as a parent when one of the teachers of special needs students at his daughters high school called him one day to inform him of an action Summer Fent had taken. I was deeply touched when the teacher informed us that my daughter bought a Wii video game console with her own money and donated it to the special needs class, he said. Watching my child develop into someone who wants to help other people is wonderful. Summers selfless act is an indication of just how committed she is to helping others, a goal she hopes to achieve by opening her own physical therapy practice specializing in children with special needs.
Aishah Abdala, daughter of Chula Vista Senior Technician Gerardo Abdala College Plans: Majoring in cognitive science at UC Berkeley Ultimate Career Goal: Becoming a doctor Quote: Ever since her very rst day of school, she could not wait to start. I dont think she slept much that night because she was so excited. She could not understand when she sat down at her desk why all the other kids were crying since this was the greatest day for her. (Gerardo Abdala, father)

She has been volunteering with Special Olympics and also has been a peer tutor for handicapped children and special needs kids at her high school, explained her proud father. She says that she has decided to pursue working with these kids because they appreciate just being able to do the simple things that other kids can do and also because seeing them so happy is very rewarding.

Chris added that he is very thankful that Aerostructures will be aiding Summer in the pursuit of her dream job with a scholarship grant that provides $1,500 annually for four years. With the soaring cost of education, its getting harder for kids today to continue on with their career goals this grant provides some much needed relief, he said. Chula Vista Engineering Technician Jorge Fernandez is also grateful for the financial boost the Aerostructures Scholarship Program will provide his son, also named Jorge. Jorge Fernandez will be attending the University of California, Irvine to study computer science with the assistance of a four-year scholarship that provides $5,000 annually for tuition and fees associated with tuition along with $1,500 in discretionary funds.

A yearning to learn
Jorge Fernandez describes his son as perseverant. And his teachers couldnt agree more. In a letter of commendation that accompanied Jorges scholarship application, his English teacher who is also Mater Dei High Schools vice principal wrote: Jorge was my student for Honors American Literature last year. Although he started out slowly in the class, he worked hard and came to me for extra help. It was a rewarding experience for me to see him focus on his writing and work hard at improving it. Around the middle of the first semester, he put it together and started to produce high quality work and, by the second semester, (Continued) 7

he consistently performed near the top of the class. His dedication was remarkable as he made great strides as a writer and overall student Jorge takes on everything from AP courses to diverse co-curricular activities and does incredibly well at everything, never venting frustration in the wrong places or trying to take the easy way out He is leaving an indelible impression on both the school and his teachers. Jorges father believes his sons academic success stems from surrounding himself with friends with similar study habits and educational goals. Another of the 2013 scholarship grant winners summed up the feelings of all of this years scholarship and grant winners when asked what the award meant to her. Commented Sofia Ramirez, daughter of Chula Vista Engineering Technician Jaime Ramirez: This scholarship means to me what a chance for an incredible education means to someone with a yearning to learn. It means opportunity and gratitude, hard work and compensation. This scholarship is an honor for myself and for my parents.

Jorge Fernandez, son of Chula Vista Engineering Technician Jorge Fernandez College Plans: Studying computer science at the University of California, Irvine Ultimate Career Goal: Developing programs and applications for a company such as Google, Apple, Microsoft, or NASA Quote: Maintaining a balance of academics, setting goals and enjoying time with his family and friends was an important factor in his success. He understood the importance of a good education and how much it would affect his future. (Jorge Fernandez, father) Brandon Morse, son of Chula Vista Project Engineer Ed Morse College Plans: Majoring in premedicine at Chapman University Ultimate Career Goal: Working in the medical eld Quote: As a person, I believe I have an obligation to help people in some way. So choosing a career job in the medical eld is a great start. At the end of the day, I know I have made someones standard of living increase in some way. That is the best feeling a person can ever experience.

Sofia will attend the University of San Diego, where she will major in International Relations. Her dream job? To become an ambassador to a foreign country representing the United States.

In addition to Jorge Fernandez, the other four-year scholarship recipients for 2013 were Aishah Abdala, daughter of Chula Vista Senior Technician Gerardo Abdala, and Brandon Morse, son of Chula Vista Project Engineer Ed Morse. Besides Sofia Ramirez and Summer Fent, this years other scholarship grant winners awardees were: n Arya Channaveeraiah, son of Riverside General Manager Shirin Folsom and Riverside Controller, Operations Chetan Channaveeraiah; n Caitlin Gassner, daughter of Foley Assembler Jason Atkins; n Emma Inman, daughter of Chula Vista A320neo Value Stream Leader Peter Inman; n Rachel Meserve, daughter of Chula Vista Business Development Manager Mark Meserve; and n Mark Saddler, son of Chula Vista Engineering Manager Christopher Saddler and Chula Vista Staff Stress Engineer Christina Saddler