Continuing the Journey of Excellence

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2 Continuing the Journey of Excellence Driving and enabling performance through people engagement Tina Montemayor Tom Kelso Lean+/ BPS Manager Former BPS Senior Manager Boeing Canada Winnipeg

3 History First 100 Years

4 Today Next 100 Years

5 Where We Are Global Boeing

6 Organization Structure The Boeing Co. Boeing Canada Operations Ltd. Boeing Canada Vancouver Richmond, BC Boeing Aerospace P&S Boeing Canada Winnipeg Ottawa, ON Winnipeg, MB Boeing Defence Canada Astra, ON CFB Trenton 220 C 17 1,500 Astra, ON MHLH (Chinook) Petawawa, ON CFB Trenton Jeppesen ~ 35 Aviall Canada Ltd 6 sites ~ 48 Misc SQ and airline support ~ 10

7 Our Site Boeing Canada Winnipeg Largest aerospace composite manufacturer in Canada 1,475 employees 75% Bargaining Unit (UNIFOR) 25% Non-Bargaining Unit 800,000 sq. ft. on 128 acres Two sites: Murray Park and Redwood Manufacturing Business Unit of Boeing Fabrication 546 end item composite parts and assemblies designed and built for BCA

8 Our Timeline Employees Employ ees

9 Incident and Injury-free Workplace Promote a zero injury mindset through an Incident and Injury-Free culture Invest in safer technologies and process designs Provide resources for continuous safety improvement Conformance to OHSAS Occupational health & safety policy Chairman s Safety Award BCW recognized for sustained performance toward the goal of zero injuries

10 Composite Manufacturing Process NC Cloth Cutting Core Fabrication Layup Autoclave Cure Paint Assembly NDI Scanner NC Trim

11 Our Products Vertical Fin Fairing Engine Strut Aft Fairing Acoustic Inner Barrel Engine Strut Fwd Fairing Rudder Fairing Nose Gear Doors Misc Ducts Wing to Body Fairing Main Landing Gear Doors Airconditioning System Ducts

12 Our Lean Commitment Implement the Boeing Production System Lean+ is our overarching continuous improvement approach Promote elimination of waste Reduce flow times Reduce burden Leverage best practices through Boeing s greatest strength our people 4 Time Winner Fred Mitchell Lean Award

13 Boeing Production System BPS Future State The teams by themselves Using systematic problem solving To improve the work they do In order to achieve the company s goals and targets When and only when the culture drives the activity

14 One Voice, One System BPS Integrates Our Great Work Customer Vision Together, we are a spirited and compassionate team creating innovative composite solutions to advance the future of flight. Ultimate Goal Ultimate Goal To safely develop, procure and produce quality products to meet customers needs at a competitive price. B E S T Balanced Engaged The needs of the people and the company are weighed for mutual success. Profitability and competitiveness drive employment stability A safe, respectful, and engaging work environment is valued by all Company values, expectations, and procedures are fairly and consistently applied to all BCW Safe Energized and dedicated team Safety of our people collaborating to continuously above all else. improve the work they do. Encourage innovation and challenge status quo Adhere to structured improvement processes Engage, empower and develop people Trustworthy Trust one another and act with integrity. We value human life and well-being above all else and take action accordingly All incidents, injuries and workplace illnesses are preventable We are Personally accountable for our own and collectively responsible for each other s safety By committing to safety first, we advance our goals for quality, cost, and schedule Foster an open and inclusive culture Value our environment of trust, earn it and extend it Demonstrate desired behaviours in how people are expected to be treated Boeing Production System - BPS BCW

15 Continuing our Journey of Excellence One Boeing Production System Areas of focus today will grow tomorrow s culture Incident & Injury Free Win with speed, agility and scale Lead with courage and passion Collaborate with candor and honesty Make customer priorities our own Invest in our team and empower each other Culture Engagement Reach higher, embrace change and learn from failure Lean+ and Commitment to Quality Q One Boeing Production System aligns to enterprise strategy Deliver results with excellence Live the enduring values

16 Expectations: Expectations: Improved and Safe Work Environment Stable Employment Reduced Burden Family Balance Continuous Improvement Competitiveness Productivity Flexibility Business Needs People Needs Leadership People Standardization Systematic Problem Solving One System, One Voice We thrive together Nov 29, 2016

17 BPS Transition Phases Sustain Implementation Preparation Selection

18 BPS Implementation Model Gap Assessment Stage Assessment Stage Assessment Stage Assessment Stage Assessment Stage 1: Stabilize Stage 2: Flow Stage 3: Standardize Stage 4: Pull / Heijunka Lay the foundation Product or Service linked to customer demand Enable the use of Systematic Problem Solving Culture of Continuous Improvement Team s product or service is linked to customer demand and variation is stabilized in order to enable standardization for continuous improvement. Team defines standards at all levels that help distinguish normal from abnormal to support the use of Systematic Problem Solving for continuous improvement. Elements: Focus on the product to Stabilize the Value Stream in order to Perform to Takt; use Simple Visual Controls and Business Team-Level Tier Meetings to communicate Support product focus with Team Operating Practices and Organizational Alignment (Sup) Standardize to maintain and Problem Solve to improve Elements: Focus on the product by performing to Standard Work and adding Comprehensive Visual Controls Support product focus by developing Service Level Agreements Standardize to maintain and Problem Solve to improve Focus on team building and communication to cultivate a culture that is prepared to embark on the journey through stabilization and standardization for continuous improvement. Elements: Begin to focus on the product by measuring KPIs, communicating through Team-Level Tier Meetings and actively doing 5S Support product focus by Teaming and developing an Incident and Injury Free Culture Standardize to maintain and Problem Solve to improve Focus Areas: Tier 1 & KPI process meeting in place 5S minimum yellow Effective Teaming (Working on Trust & Communication) Team meets regularly & selfassesses quarterly Team Lead consideration begins Baseline LSW for FLL & LH Buffer is identified & established (Ops) Critical instability issues are identified & being addressed 8SPS is used by SL & FLL on all shifts Focus Areas: Establish part flow in the work area Cross-training matrix and plan are posted 5S sustained at yellow Team operating practices in place Lead Hand communication is in place & utilized Focus Areas: SW in place (used & posted) Buffer is in place & refined (visual and posted in area) 5S is now green Process based KPIs in place Lead Hand Development Training Leader Standard Work for TL & FLL is in place & utilized Systematic problem solving used by TL & managers All previous stages focus are sustained! 8SPS is used in every stage of the journey The teams by themselves Using systematic problem solving To improve the work they do In order to achieve the company s goals and targets When and only when the culture drives the activity Focus Areas: Discipline on philosophies, principles, practices evident throughout the value stream Tiered meetings in place 5S sustained at green Pull system in place

19 BPS Implementation Journey BOEING PROPRIETARY Author, 6/8/2018, Filename.ppt 23

20 Standardized Work and Team Operating Practices

21 Step 1: Clarify the Problem Systematic Problem Solving Process Step 2: Break Down the Problem Plan Step 3: Target Setting FIND the problem Step 4: Root Cause Analysis Step 5: Develop Countermeasures Do Check Act FIX Step 6: See Countermeasures Through the problem Step 7: Monitor Both Results and Process PREVENT Step 8: Standardize the problem

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23 Cultural Transformation Periodic Teaming Assessment LOW HIGH

24 Intangible Gains Engagement Survey

25 Performance Scorecard Measurable Gains

26 Lessons Learned

27 In Summary The teams by themselves using systematic problem solving to improve the work they do in order to achieve the company s goals and targets when and only when the culture drives the activity.

28 Thank You! Continuing the Journey of Excellence Driving and enabling performance through people engagement Tina Montemayor Tom Kelso Lean+/ BPS Manager Former BPS Senior Manager Boeing Canada Winnipeg