Flexibility. Tom Williams Executive Vice President Programmes, Airbus. Global Investor Forum 2009, Broughton, 1 st & 2 nd April 2009

Transcription

1 Flexibility Tom Williams Executive Vice President Programmes, Airbus Global Investor Forum 2009, Broughton, 1 st & 2 nd April

2 Safe Harbour Statement Disclaimer This presentation includes forward-looking statements. Words such as anticipates, believes, estimates, expects, intends, plans, projects, may and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements made about strategy, ramp-up and delivery schedules, introduction of new products and services and market expectations, as well as statements regarding future performance and outlook. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include but are not limited to: Changes in general economic, political or market conditions, including the cyclical nature of some of EADS businesses; Significant disruptions in air travel (including as a result of terrorist attacks); Currency exchange rate fluctuations, in particular between the Euro and the U.S. dollar; The successful execution of internal performance plans, including cost reduction and productivity efforts; Product performance risks, as well as programme development and management risks; Customer, supplier and subcontractor performance or contract negotiations, including financing issues; Competition and consolidation in the aerospace and defence industry; Significant collective bargaining labour disputes; The outcome of political and legal processes, including the availability of government financing for certain programmes and the size of defence and space procurement budgets; Research and development costs in connection with new products; Legal, financial and governmental risks related to international transactions; Legal and investigatory proceedings and other economic, political and technological risks and uncertainties. As a result, EADS actual results may differ materially from the plans, goals and expectations set forth in such forwardlooking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see EADS Registration Document dated 24th April Any forward-looking statement contained in this presentation speaks as of the date of this presentation. EADS undertakes no obligation to publicly revise or update any forward-looking statements in light of new information, future events or otherwise. 2 2

3 How do we deal with Flexibility Backlog management Human resources Supply Chain management 3 3

4 Backlog Management Weekly meetings including BS, Commercial, FAL, Delivery, Finance Airline Screening, using the watchtower + additional information PDP status, BFE status, critical Long Lead Time options, deferral/ advancement request, financing status, economical outlook Agree on late allocation to increase flexibility/reactivity Use advancement/ postponement/ type change requests from airlines to manage the overbooking and balance risks & opportunities Measures in case of short term (<7m) customer risk/ failure: Airbus Financing Support, Rapid Reallocation. A/L risk assessment process established to mitigate current risk arising from economical crisis. 4 4

5 Flexibility Built-in Flexibility of Airbus Production System Mid-Term Sub- Contracting* External Flexibility Internal Flexibility Short-Term sub-contracting (retractable within 6 months) Spec. working time enhancement Overtime Temporary** Limited Permanent Note: Average figures, levels of Flexibility varying by production site Internal Workforce External Workforce * Retractable < 2 years ** incl. In-Situ subcontracting 5 5

6 How Flexibility is applied 35% 30% 25% White Collar Blue Collar 20% 15% 10% 5% 0% August '01 December '01 December '02 Manufacturing: all Plants (average) Different social conditions exist in each country. 6 6

7 AIRBUS Flexibility Monitoring Close monitoring of Airbus Flexibility with focus on Plants & FALs: Installed flexibility in Plants / FALs largely driven by Overtime, Temporaries, On-Site Subcontracting, Tactical Subcontracting for both Blue & White Collars Full review of current flexibility by Plants / FALs performed in Q to be prepared for any additional production rates reduction Current Plants / FALs operational flexibility will be reviewed every quarter to decide if additional measures need to be implemented depending on Series Programmes production rates decisions Additional flexibility could be exercised through attrition & additional measures if necessary Very limited hiring on Blue Collars focused on key competences to reduce exposure to Market deterioration A350XWB industrial ramp-up from 2011 onwards will compensate potential reduction of Series Programmes through redeployment of Blue & White Collars Engineering Flexibility : High Engineering workload in the coming years largely driven by A350 XWB Development High level of Engineering subcontracting will allow a quick adaptability if necessary 7 7

8 Single Aisle FAL Toulouse Realised complete through Time (monthly average in working days) Working days BASELINE janv-05 avr-05 juin-05 sept-05 déc-05 mars-06 juin-06 sept-06 déc-06 mars-07 juin-07 sept-07 déc-07 mars-08 juin-08 sept-08 déc-08 mars-09 juin-09 sept-09 déc-09 Theoretical objective Industrial realised (objective+tec+smo+bfe) Pure 8 8

9 LR Basic Unit Cost S Curve w/o PPS in % LR basic Airframe Unit Cost S Curve w/o PPS 100% 80% 60% 40% 20% 0% CDF Actual cost Committed cost In house Parts Sub-Assembly FAL ST Months prior to a/c delivery EIS 9 9

10 Supply Chain Management The ramp up part of the cycle was carefully managed to reduce over capacity. We have a clear understanding of our 'core' and 'non core' activities. We have 'tactically' sub contracted our excess loads during the ramp up. Careful monitoring of our suppliers 'financial health'. Protect our ability for future ramp up