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Honeywell Aerospace

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Has flawless quality & delivery performance to Hon REQUEST ALL THE TIME ... Flawless delivery & quality ALL THE TIME Know what your customer needs ... – PowerPoint PPT presentation

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Title: Honeywell Aerospace


1
Honeywell Aerospace
  • Oswaldo Gutierrez
  • Intl. Procurement Office
  • Honeywell Aerospace

2
Honeywells Businesses
2005 Sales
Total 27.7B
Diverse Businesses, Technologies and Products
3
Aerospace
The worlds premier supplier of aircraft engines
and systems, avionics and other products and
services for airliners, regional and business
aircraft, military aircraft and spacecraft.
  • Air Transport Regional
  • Key Drivers Price and Cost
  • Customers Airbus, Boeing, Embraer, General
    Electric, United Technologies, Rolls Royce,
    Airlines
  • Business General Aviation
  • Key Drivers Value and Service Support
  • Customers Gulfstream, Dassault, Cessna,
    Bombardier, Pilatus, Raytheon
  • Defense Space
  • Key Drivers Cost and Mission Outcome
  • Customers US DOD, Coast Guard, Special Ops,
    DARPA, NASA

4
Comprehensive Commercial Offering
  • Integrated Flight Safety Equipment
  • Runway Alerting
  • Aircraft Environmental Surveillance System

Integrated Pneumatic System
Aircraft Hydraulics
Integrated Cabin Pressure Control Systems
Lighting Systems
Auxiliary Power Units (APU)
Cabin Electronic Systems
Power Generation Distribution
  • Main Engines Components
  • Bleed Air Control Systems
  • Engine Fuel Controls
  • Engine Starter/Generator
  • Electronic Engine Controls

Environmental Control Systems
  • Total Avionics Solutions
  • Flight Management Systems
  • Vertical Profile Radar
  • Global Positioning Systems
  • Terrain Collision Avoidance System
  • Cockpit Display
  • Enhanced Ground Proximity

Wheels Brakes
RAM Air Turbine Electrical Power System
5
Vital Few Goals
  • Execute on Commitments
  • Customers
  • Shareholders
  • People
  • Reduce Costs
  • Material
  • Conversion
  • Overhead
  • Development
  • Develop and Execute ONE Strategy for Aerospace
  • Drive a Culture of Performance

To Transform the World with Aerospace Technology
and Innovative People
6
Sourcing
7
The New Sourcing Organization
  • One Aero sourcing organization
  • Fully functionalized sites integrated with
    central
  • OEM AMS Tactical Procurement responsible for
  • Tactical execution of site sourcing
  • Delivery, quality cost for the sites
  • Local functional collaboration (Engineeringetc)
  • Commodity teams focus on responsible for
  • Commodity strategies
  • Source selection, supply base design
  • Commodity cost productivity performance
  • Buy to buy make to buy transitions
  • Agreements, contracting (LTC)

Successful 1st Year Of Re-Org But Still Maturing
8
Significant Challenges Ahead
  • Supplier capacity constrained Aerospace growth
  • Performance improving but not where it needs to
    be
  • Increasing raw material costs (metals)
  • High cost structure relative to competitors
  • Lagging in Global Low Cost Sourcing
  • Significant cost reduction required to win new
    platforms

Strategies Developed to Transform Mitigate
Future Risk
9
Honeywell Customer Requirements
  • Zero Defects
  • Repeatable achievement of zero defects is the
    expectation
  • Credibility is built and lost with quality -
    quality cannot be compromised
  • Suppliers must have a relentless drive for
    continuous improvement
  • Requires proactive process control, mistake
    proofing, root cause corrective action
  • OTTR
  • On-time to customer request (OTTR) now the
    expectation
  • Delivered at lead-time or negotiated PO schedule
    is no longer adequate
  • OTTR requires a flexible supply base mfg
    systems
  • Pull based processes throughout the supply chain
    should be the standard
  • Low Cost
  • Cost has become a deciding factor in awards
  • Technical performance is expected - cost is the
    differentiator
  • Suppliers must be committed to cost take out
    providing best value
  • DFx, value engineering, and a global supply chain
    are the keys to success

Bar is Continuously Rising
10
Attributes of a Grow Supplier Y f (X)
  • A Honeywell grow supplier is one that
  • Has flawless quality delivery performance to
    Hon REQUEST ALL THE TIME
  • Delivers COST TAKE OUT YoY productivity
  • Customer satisfaction orientation (VOC process)
  • Is not a victim of environment, industry,
    circumstances
  • Drives a culture of excellence continuous
    improvement (LEAN / Six Sigma / VE)
  • Has a strong mgmt operating system, early warning
    systems, financial stability
  • Meets Honeywell contractual terms and conditions
  • Materials management is a core competency,
    enterprise wide systems
  • Technical competence, subject matter expert in
    the field
  • Easy to do business with.plants talk to each
    other common mgmt system
  • Has a robust, flexible order mgmt, mfg execution
    pull system capability
  • Challenges Honeywell with breakthrough ideas to
    improve performance
  • Helps Honeywell grow be more competitive
  • Has low cost global footprint strategy
  • Communicates proactively, is responsivestrong
    bias for action

Y
X
A Culture of Execution and Operational Excellence
11
Sourcing Summary
  • Positioned to execute game changing strategies
  • Capable supply base required for successful
    implementation
  • Flawless delivery quality ALL THE TIME Know
    what your customer needs
  • Willing to invest in the relationship NOW
  • Build capability be ready
  • Continuous improvement in cost service a MUST
  • Exciting new growth opportunities
  • Need your help to WIN

Big Opportunities Ahead Prepare Now!
12
Globalization
13
International Procurement Office (IPOs)
Poland IPOs
Czech Rep IPO
Taiwan IPO
Shanghai IPO
Xian IPO
Guaymas, MX IPO
Monterrey, MX IPO
India IPO
Malaysia IPO
Singapore/Bintan IPO
14
Mexico IPO - Mission Vision
  • IPO International Procurement Office
  • An extension of Honeywell Aerospaces Integrated
    Supply Chain group.
  • First of three IPO's for Emerging Regions
    (Mexico, Eastern Europe, China).
  • Multifunctional and Multidisciplinary group based
    in Monterrey, Mexico.
  • Interface between US Canada manufacturing sites
    and Supplier Base in
  • Mexico / Latin America region.
  • Focused on Sourcing Strategy Deployment and
    Project execution
  • Oversight of Supplier Transitions.
  • Attract competent Aerospace Manufacturing
    companies into the region.
  • Supplier Development in Aerospace practices
    standards.
  • Surveillance of active suppliers in Quality and
    Delivery issues.
  • Assessment of potential suppliers in Mexico /
    Latin America region.

15
Monterrey International Procurement Office
Milestones
Next Steps
Current Staff
  • Office started operations in 2003.
  • 2003 10 active suppliers in Mexico
  • 2006 25 active suppliers in Mexico
  • 90 of established companies are foreign
    investments or joint ventures.
  • Major achievements include AS9100 supplier
    development for 6 companies.
  • Participated in NADCAP approval process for
  • Non Destructive Testing
  • Chemical Processing
  • Welding / Heat Treating
  • Increase Spend in Mexico.
  • Attract New Suppliers for this region.
  • Creation of new aerospace business opportunities.
  • Contribute to achieve overall savings for
    Honeywell.
  • Sourcing in Low Cost countries.
  • Supplier Consolidation.
  • Attract Higher Value Added projects into the
    region.
  • Migrate to a higher level of complexity in the
    Supply Chain.
  • 6 Global Commodity Managers
  • 3 Regional Commodity Managers
  • 6 Program Managers
  • 6 Engineering Quality Specialists
  • Bilingual, Degreed professionals in
  • Business Technical fields.
  • 12 years average experience.
  • Responsible for regional business
  • development.

Mexicali
Chihuahua
Guaymas
IPO Strategically located in MONTERREY
  • Major Industrial Business Metro area in Mexico.
  • 4 million population.
  • Strategic location Proximity to major US cities.
  • World class Technical Business education
    institutions.
  • Intercontinental Airport.
  • UK EU consulates and government offices.

16
Questions Answers
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