March 18, 2015 Vol. 25, No. 10

Editor: ext. 3635 / jeff.hulewicz@utas.utc.comMail Zone 99B

Aerostructures

Stepping into his new role, Engineering & Technology Vice President Stephane Dion looks to make a great organization even better

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Asked what advice he would give to engineers just starting their careers at Aerostructures, new Engineering & Technology Vice President Stephane Dion said: “My personal advice is to be passionate about your work. Treat every task and assign-ment with the level of involvement and energy that it deserves. Keep learning every day and always be an agent of positive change and continuous improvement.”

The passing of the torch. The changing of the guard. Taking the reins.

Regardless of what you might choose to call them, leadership transitions in any business can be challenging, especially when the incumbent is well regarded by his staff and peers and is leaving large shoes to fill. Such is the case with Colin Cramp, who spent more than 20 years with Aerostructures, most recently as the head of Engineering. His role has now transitioned to Stephane Dion. But the changeover will be an orderly one for a number of reasons. Not only does Dion bring his own technical knowledge and distinctive style to the position, he also spent the last several months working alongside Cramp, absorbing as much engineering knowledge and leadership wisdom as possible. Skylines asked Dion to talk about his new role and how he sees the Engineering func-tion evolving as programs move from development to production.

First, for those who don’t know you, could you please give us a short version of your resume and personal history?

I graduated from McGill University with a Bachelors of Science degree in Mechanical Engineering in 1991. I worked

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at Bombardier and Boeing in Production Support and Maintenance Support structural analysis roles. I joined Goodrich in 1999 as a stress analyst for Aftermarket Technical Services, where I supported the Structural Repair Manual and one-off stress analysis, as well as developing a repair management system.

Following the Boeing 7E7 program launch in 2004 – which, of course, became the Boeing 787 Dreamliner – I transitioned to product development engineering, where I took roles of increasing responsibility, including thrust reverser stress lead, stress manager, program chief engineer for geared turbofan (GTF) nacelles and, finally, director of Engineering for all development programs. I was then tapped to fill the role created by Colin’s retirement.

What attracted you to working in the aerospace industry?

I have always enjoyed the technical challenges and the global landscape of the aerospace industry, especially as it pertains to nacelle structures.

In his “exit interview” with Skylines, Colin pointed to you as a success story because of your transition from contract engineer to leader. What contributed to your successful progression?

I realized early in my career that transitioning from a contract to a direct position would really allow me to develop my potential through more diverse and challenging assignments, as well as give me more influence over my career. I really attribute my success to several leaders throughout my career who provided constant coaching and took chances on me by giving me challenging assignments with the flexibility to implement my ideas.

You had a benefit many executives don’t get: being able to shadow your mentor for a year. This is going to be tough, but could you share with us just two or three things that you learned from Colin?

Actually, this is not as difficult as you would think!

During my time with Colin, one of the most important lessons that he taught me is how to manage significant changes, such as the engineering re-organization. He also helped me on the financial planning front, an area in which I had minimal involvement until 2013. Finally, I learned how important it is to take time to assess and to develop the longer-term vision and strategy that’s required to achieve sustained results… as opposed to focusing on short-term gains.

If you could narrow it down to one thing, which part of Colin’s style do you hope to emulate the most?

One is tough. Here are three: his energy, his convictions and his managerial courage.

What do you see as the biggest challenges for the Engineering function in 2015? The next few years are going to see a lot of transition as programs move from development to production.

The toughest challenges for Engineering will be efficiently supporting the cost reduction efforts required to achieve the target shipped-unit costs on all new production programs, while also proactively supporting the challenges associated with entry into service.

“We have probably the most depth of knowledge in engineering at UTC Aerospace Systems, with recognized specialists in many critical

aerospace disciplines – such as advanced composite design, structural analysis, dynamics, acoustics, aerodynamics, etc.”

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What are some of the most difficult issues that you encounter on a daily basis and how do you manage them?

Certification of multiple concurrent nacelles and the associated challenge of being cognizant of all key emerging issues across development programs is a big one. Our established PDPR (Policy Deployment Progress Review), PDPR+, Company Funded Engineering (CFE) and Product Readiness Assessment (PRA – the quantitative measures used to assess the maturity of a given technology, component or system from a manufacturing perspective) review structure are tools that enable me and other senior leaders to address this challenge.

During his visit to the Chula Vista facility last month, UTC Aerospace Systems President Dave Gitlin singled out Aerostructures for its “very high quality” Engineering organization. To what do you attribute that perception?

This is probably more reality than perception. We have probably the most depth of knowledge in engineering, with recognized specialists in many critical aerospace disciplines – such as advanced composite design, structural analysis, dynamics, acoustics, aerodynamics, etc. In addition, we have devoted significant effort to improving our engineering tools, methods and processes. We invested our research and development efforts in critical areas to win and protect new business. Finally, we have successfully implemented a “Best in Class” Global Engineering organization, able to support all aspects of our product development and legacy support engineering.

Where do you see the Aerostructures Engineering function in five years?

I believe that in five years the organization will have made significant progress towards engineering efficiency and engineering quality targets using the ACE tools and the initiatives currently in progress. I also believe that Engineering will become a more innovative, versatile and responsive organization able to develop “Best in Class” products.

What makes you say: “Today was a good day at work?”

That’s any day in which I helped drive positive change while working in an environment of mutual trust and respect.

“The toughest challenges for Engineering will be efficiently supporting the cost reduction efforts required to achieve the target shipped-unit

costs on all new production programs, while also proactively supporting the challenges associated with entry into service.”

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There’s a tough road ahead for Aerostructures when it comes to the 2015 inventory reduction plan… but it’s achievable thanks to the hard work of teams like these Never underestimate the value of a fresh perspective when tackling a major challenge.

Just ask the teams taking on the thorny issue of excess inventory on two legacy Airbus A330 programs: the Common Nozzle Assembly (CNA) for the Trent 700 nacelle’s exhaust system and the nacelle system for the CF6-80E1 engine. Both products are now part of Aerostructures I-5 projects, a methodology for materials management.

“I-5 is a different way of looking at inventory. Before, we didn’t really consider it that much. In fact, more inven-tory was good because it kept the line up and running,” said Trent 700 Operations Manager Vince Edwards. “We’re trying to get to that happy medium where we still have inventory, but don’t have an excess of it. We also want to ensure that the inventory we have is the right inventory.”

That’s where I-5 comes in.

I-5 takes its name from the fact that it’s a five-step inventory reduction process with the aim of reducing inven-tory by 20 percent. It was developed by Porsche Consulting, a subsidiary of the sports car maker. Porsche is widely recognized as setting a new bar for Lean Manufacturing and developing a process called “line back logistics” which helps harmonize work on the shop floor with the supply chain.

“I-5 is a truly collaborative approach to inventory management,” according to Trent 700 Program Manager Jeff Orlowicz. “All disciplines that have potential to impact inventory in any way are engaged in the process.”

I-5 projects are rolling across UTC Aerospace Systems in waves. The Trent 700 program was part of the second wave that kicked off during the first part of last year. The E1 program was included in a subsequent wave a few months later.

Simple pie chart has made a significant differenceThe Trent 700 CNA contains composite outer ducts from Riverside, heat-treated titanium parts from San Marcos, and detail fabricated parts from Chula Vista and Mexicali, all of which come together in Foley for final assembly. It’s at the Alabama site where a shortage of a single part could have a major effect on the production line.

“If one detail part is late to need, then we can’t finish that subassembly. And if that subassembly can’t be finished, the line gets shut down, effectively shutting down the entire program until the issue can be worked,” said Foley Operations Specialist Derek Eberly.

Finding the root cause of the shortages that were creating an accumulation of inventory became the mission of Eberly, Edwards, Orlowicz and other members of the Trent 700 I-5 team.

“We’ve been building the CNA for a long time. Even so, there was still a lack of understanding regarding why the excess inventory was there. We build good parts, we’re 100% on time in our deliveries to the customer, yet the inventory turns weren’t as high as we would expect a legacy program to be,” Eberly said.

“I-5 is a truly collaborative approach to inventory management. All disciplines that have potential to impact inventory in any way are

engaged in the process.”

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He continued: “We were a few months into the project and still hadn’t seen the reduction in inventory that we were expecting, so we had to take a step back as a team to figure out what was going on. We were working to master schedule in SAP – the enterprise resource planning system that houses all product and part data – but we were still getting inventory on the shelf. We had to understand our inventory at an even deeper level, so we collaboratively created a pie chart that shows everything that is purchased in the bill of material of the CNA. And we created a data set where we would load our weekly snapshots of all of our stock inventory.”

The pie chart breaks down the inventory into categories, including: POS (Period of Supply), the SAP-driven demand that suppliers see for delivery quantities; safety stock, which is stock that is being driven to protect the business; and planned buffer/spot buy, which is purchased inventory that is being bought in bulk to accommo-date a low price or contract terms. There are other categories, as well. Using the pie chart tool as a key visual has made a huge difference, according to Orlowicz and Edwards.

I-5 projects, which focus on reducing excess inventory through rigorous application of a toolset developed by Porsche Consulting, can go hand-in-glove with Lean Transformation projects. That’s the case in Foley, where the focus is on reducing excess inventory on the Trent 700 Common Nozzle Assembly (CNA) line, while simultaneously driving Lean Transformations on both that line, as well as the CF34-10E and APU tailcone regional programs. Both method-ologies include delivering only stock required to complete a certain set of tasks and taking a minimalist approach to point of use, as the before and after photos above illustrate. The images in the top row contrast the previous operator Point-of-Use stations for the Trent 700 CNA assembly line (at left) – which were large, bulky and featured flat spots that contributed to clutter – with the new right-sized ones with no room for clutter. The photos in the bottom row illustrate the previous and the improved parts kanbans that have been created.

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60 percent raw stock inventory reductions… and the team isn’t stopping“As the project moved along, we dissected our inventory into finer segments,” said Orlowicz. “This allowed us to identify inventory challenges, and then work directly with that discipline responsible for procurement. Understanding why inventory excess or shortages were occurring was key and led us to becoming focused on driving improvements. The end result was not only system changes, but also a cultural change.”

Added Edwards: “The visual goes a long way toward helping people understand what inventory is, what’s excess, and also what isn’t. Derek has done a good job in simplifying that into one chart that shows what we have and where our opportunities lie.”

In fact, the charts have enabled some remarkable progress in reducing the inventory associated with the Trent 700 CNA. To date, the amount of total raw stock inventory has been reduced by more than 60 percent… and the team isn’t stopping.

What’s been good for Foley is also proving good for Toulouse, too. That’s where the inlet, fan cowl, core cowl and engine buildup equipment all come together for the E1 nacelle system… and where another I-5 wave is underway.

According to CF6-80E1 Program Manager Heather Travis, good communication between all the stakeholders is what’s helping that program begin to identify the source of the shortages driving inventory accumulation in Toulouse. It all boiled down to a mismatch between the master schedule contained in SAP and what was actually being consumed out on the shop floor.

Eye-opening“I think it’s always eye-opening when you start an analysis process like I-5. You see how certain input into SAP can propagate down the line and end up creating excess inventory,” she said. “Getting everyone together there in a room helped us connect the dots… and there were quite a few ‘Aha’s!’”

And those “Aha’s!” led the team to look into a better way to track parts usage.

“We did a ‘plan for every part’ event – a foundational part of the I-5 process – with the team in Toulouse in January, which served as our project kickoff,” said Travis. “Now, we have a weekly call with the Toulouse team to review the pie chart. We review the list of all the excess parts we’ve identified in Toulouse, and then it’s a matter of validating if Aftermarket or anyone else needs them before we start taking them out of inventory.”

The steady progress made by the E1 and Trent 700 teams has not escaped the watchful eye of the I-5 office at the UTC Aerospace Systems level. After visiting Chula Vista last month to get brought up to speed on Aerostructures’ efforts, Jim McGowan with the UTC Aerospace Systems I-5 Program Office was impressed.

“I think the Aerostructures team has thoroughly embraced the I-5 tools and is using them to make progress toward its inventory reduction goals,” he said. “As I conveyed to Operations Vice President Martin Lodge after my visit, I could sense the ownership and enthusiasm of the groups. I also appreciated the candid comments and transparency of the process being worked. It’s a tough road ahead for the Aerostructures inventory plan in 2015. But with the current positioning and hard work already done, it’s achievable.”

“I think it’s always eye-opening when you start an analysis process like I-5. You see how certain input into SAP can propagate down the line and end up creating excess inventory. Getting everyone together there in a room helped us connect the dots… and there were quite a

few ‘Aha’s!’”

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Aerostructures volunteers bring a dose of the real world to the next generation of business leadersThe experience lasted less than five hours. But the lessons 100 fifth-graders learned during the recent “McGrath Family Junior Achievement (JA) “BizTown” event in San Diego will linger considerably longer… maybe even over a lifetime. So says Chula Vista Financial Analyst Adriana Castaneda. Adriana was one of several Aerostructures employees that volunteered their time to teach financial literacy skills and bring a dose of the real world to a few members of the next generation of business leaders at the Feb. 25 activity.

“Exposure to running a business in an environment like JA BizTown plants the seed in the students that partici-pate to unlock their potential in life… and appreciate future opportunities,” Castaneda said.

Just how exactly does BizTown do that?

Adults for a dayFirst the Otay and Elevate Elementary School fifth grade students were exposed to four weeks of curriculum in the classroom on how to be a citizen, how a city’s economy works, how to apply for a job and how to run a

At Junior Achievement (JA) of San Diego County’s Feb. 25 “McGrath Family BizTown” experience, 100 local fifth grade students were given a job at one of 21 life-sized San Diego businesses – from the San Diego International Airport to Kaiser Health Care to Jack in the Box. The students also earned paychecks, opened bank accounts, paid taxes, voted in an election and much more. They were assisted in the half-day financial literacy lesson by several Aerostructures Finance employees. “The students leave with a greater understanding of the value of a dollar, the importance of teamwork and how to be a contributing citizen in the community,” according to Katie Easton, educa-tion manager at Junior Achievement of San Diego County.

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successful business. They then put their knowledge into practice by visiting JA BizTown, a 10,000 square-foot mini-city located at the Capdevilla Gillespie Center for Junior Achievement in San Diego, for a simulated work day experience.

At the BizTown site, the students assumed adult roles, becoming “JA BizTown citizens” for the day. Each student was given a job at one of 21 life-sized San Diego businesses – from the San Diego International Airport to Kaiser Health Care to Jack in the Box. The students also earned paychecks, opened bank accounts, paid taxes, voted in an election and much more.

“The students leave with a greater understanding of the value of a dollar, the importance of teamwork and how to be a contributing citizen in the community,” according to Katie Easton, education manager at Junior Achievement of San Diego County.

But the Aerostructures employees who volunteered to assist and guide the students in becoming adults for a day and ensure they are prepared to succeed in the workplace took home some lessons of their own.

“A very empowering opportunity”“We can all learn a lesson or two from the kids while volunteering at JA BizTown!” said Senior Financial Analyst Angelica Ortiz, “I worked in the San Diego International Airport with four very energetic kids. It was a very rewarding experience to have the opportunity to help younger kids get an understanding of real-life work and

In the photo above, Chula Vista employee volunteers Katie Zimmerman (far left) and Adriana Castaneda (second from right) – along with Joanne Pastula, president and CEO of JA of San Diego (far right) – assist fifth-graders operating the Kaiser “business” in administering medical checkups at “BizTown,” a simulated work day experience. Said Castaneda of the experience: “This is my second year volunteering at BizTown and I can’t wait till next year to do it again!”

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how we can all contribute to our society and economy through our efforts and commitment to excel. I believe that giving kids a hands-on experience is a very empowering opportunity.”

She continued: “I was very impressed with how the kids took the initiative to meet as a team to define an action plan. At some point, our business was running a little slow, so one of the kids took the initiative to go over to the radio station to advertise the business. At the same time, the CEO/CFO went straight to the ‘NBC News’ studio to spread the word about the business, as well. They did an amazing job overall and won the Customer Service Award.”

Finance Senior Coordinator Adrian Talamantes also found the BizTown experience informative and rewarding.

“My son attended JA BizTown seven years ago, when he was in elementary school,” said Talamantes. “I remember him trying to explain what BizTown was to me, but I just didn’t get it. The concept of an entire functioning town with commerce and government run by children – all located inside one building – was more than my adult brain could understand. This was my second time volunteering at JA Biz Town. And when I walked in last year for the first time and laid eyes on the town, I finally got it. It really is a city, inside a building, run by kids!”

Senior Financial Analyst Angelica Ortiz worked in the San Diego International Airport “business” with four very energetic students during the recent JA BizTown event in San Diego. “We can all learn a lesson or two from the kids while volunteering at JA BizTown!” she said afterward. Noted Kristi Zimsky, Public Relations, Marketing and Social Media manager for Junior Achievement of San Diego County: “Your employees created such rewarding experiences for our students and we appreciate their time and dedication.”

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Deadline for completing 2015 annual ethics training is June 30UTC Aerospace Systems expects all employees to operate to the highest ethical standards. But it’s difficult to know all of the laws that apply to the various workplace situations we may encounter. That’s the purpose for the company’s annual ethics training.

This year, all Aerostructures salaried employees are required to complete six online training modules and attend one supervisor-led training session by June 30. (Hourly employees must attend the super-visor-led training only.) Here’s a look at the specific training courses that must be completed…

2015 Annual Certification – by completing this course, you’re certifying that you’re familiar with the UTC Code of Ethics.

2015 IT Certification – this course was developed to help you understand the technology threats facing our organization and the means by which you can help minimize these threats.

Basic Labor Charging – The U.S. federal government pays close attention to how its contractors measure and charge labor costs. Contractors that make a mistake face civil and possibly criminal penalties. This course can help you comply with the U.S. government’s rules and recognize potential problems before they get out of hand. It covers the conditions contractors must meet before the govern-ment will pay labor charges, examines some ways to keep track of work hours and explores some consequences contractors face when they don’t comply with the U.S. government’s requirements.

Gifts and Gratuities – this course deals with the receiving and giving of gifts and gratuities in a business context. It explains how gifts and gratuities may lead to a conflict of interest. This course will also help you understand when a gift is acceptable and how to report the receipt of a gift.

Intellectual Property Overview – When a new idea or valuable new information is created, how can the competitive advantage achieved be maintained using intellectual property protection? This course helps answer this question. It will help you distinguish the different types of intellectual property, based on the sort of legal protection that applies to each – copyright, trademark, patent, or trade secret. You will also learn how to help protect the company’s intellectual property and avoid infringing on the intellectual property rights of others.

Respect in the Workplace – Every employee is responsible for helping to create and maintain a work-place characterized by respect and free from harassment. This course will address respect in the workplace, and show how difficult – and rewarding – it can be to make it a reality.

Supervisor-led Training – This year’s supervisor-led ethics training module, One World/One Code, includes a 10-minute video featuring UTC employees sharing their personal experiences and observa-tions regarding the Code of Ethics, followed by a 10- to 15-minute discussion of the video. Supervisors are expected to use this training as an opportunity to engage opinions and motivate employee dialogue about ethics and compliance.

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All online training modules are available on the Ethics & Compliance Education Center, which is accessible through the Employee Self-Service (ESS) portal.

Have questions about the 2015 annual ethics training? Please contact the Local Ethics and Compliance Officer (LECO) at your facility.

Chula Vista • Michael Fiegl • Robert Painter • Randy Rortvedt • Andre White

Everett • Tom Freestone

Foley MRO • Ed BeVier

Foley OE • Michael Welsh

Hamburg • Eike Tabel

Jacksonville • John RobinsonMexicali • Marco Serrano

Prestwick • Stuart McNair

Riverside • Tony Reed

San Marcos • Suzanne Herring

Singapore • Kok Wai Kwan

Toulouse • Maryse Santin

Tianjin • Elva Liu (MRO) • Mary Qiao (OE)

Turkey • Emre Harputlu

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Free admission for employees and family members thru March 2016 Your window of opportunity to explore Southern California’s unique animals, birds and plants at the Living Coast Discovery Center has been extended The Living Coast Discovery Center, located about a half mile north of the Chula Vista facility, has been connecting people with the animals, plants and habitats found in and around the San Diego Bay for close to 30 years. Every year, about 75,000 people visit the Center – which showcases everything from Moray eels to eagles. About 15,000 of those visitors are schoolchildren from districts throughout San Diego County, who participate in dozens of different education programs at the Center. And for the past year, that visitor number has also included hundreds of Aerostructures employees – who have been able to visit the center with their families at no cost. Now, that window of opportunity to explore the Living Coast Discovery Center, which would have expired at the end of this month, has been extended for another year.

As the result of a Goodrich Foundation grant made last week, employees and their immediate family members can continue to visit the Center at no cost through March 2016. The only admission ticket required is for employees to display their company badges.

The money donated by UTC Aerospace Systems will help fund the STEAM – Science, Technology, Engineering, Art and Math – programs at the Living Coast Discovery Center.

The Living Coast Discovery Center’s mission is to expose the thousands of visitors it hosts each year to nature and wildlife while providing environmental education on coastal resource conservation. The zoo and aquarium prides itself on providing guests with a chance to get to know creatures native to the South Bay – from Moray eels, Leopard sharks, stingrays and guitarfish to owls, pelicans, gnatcatchers and eagles. Here, a young visitor, one of the 15,000 area students who make field trips to the Center each year, gets up close and personal with a tortoise. Aerostructures employees and their immediate family members can visit the Center at no cost through March 2016 by displaying their company badges.