4. holger rohde aarhus presentation slides2

Strategic Procurement in Airbus November 2012

Presented by

Dr. Holger ROHDE

VP Airframe Workpackages

Aerostructure Procurement

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

2012 announced outlook (Jan): Airbus: ¬570 / Boeing: ¬585-600 commercial deliveries – subject to confirmation

Largest aircraft manufacturer 9 out of last 10 years

0

100

200

300

400

500

600

700

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(outlook)

Airbus

Boeing

Annual deliveries


2012 announced outlook (Jan): Airbus: ¬570 / Boeing: ¬585-600 commercial deliveries – subject to confirmation

0

100

200

300

400

500

600

700

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(outlook)

Airbus

Boeing

Annual deliveries


13 models

11 861 aircraft sold

7447 delivered

342 customers

Airbus – End September 2012

Current status:

405 aircrafts delivered

Firm orders of 437 aircrafts

Airbus in-service fleet of some 6931 aircraft with 389 operators


13 models


7447 delivered

342 customers


Current status:




Backlog of

~4,500 aircraft (or 8 yr of production)


13 models


7447 delivered

342 customers


Current status:




Book-to-Bill >1


Air travel remains a growth market


20-year demand for ~27,350 aircraft

Source: Global Market Forecast 2012


A380

A350XWB

Long Range

Volume ramp-up evolution

Single Aisle

illustrativ

+40%


8287

103

109

117121 121

0

20

40

60

80

100

120

140

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Nov

2008

2006

Nov

2010 Oct

2011


Things to Remember

1. It‘s about growth

3


Airbus Sourcing is not reflecting the customer shift to the East

Procurement Set-up & Strategy



Aerostructure

Equipment

General

Procurement

Material

Propulsion

General

Procurement



Aerostructure

Equipment

General

Procurement

Material

Propulsion

General

Procurement

22%

11%

22% 6%

39%

Aerostructures

Equipment

GeneralProcurement

Material

Propulsionsystems


Multi-Functional Team

1 Define Commodity Strategy

2 Manage work package

life cycle

3 Manage supplier performance

4 Define improvement actions


Airframe WP – Products & Services



MFT Services



MFT Interior

MFT Services



MFT Tubes & Pipes

MFT Services

MFT Interior



MFT Services

MFT Interior

MFT Tubes & Pipes

MFT Doors



MFT Services

MFT Interior

MFT Tubes & Pipes

MFT Doors

MFT Electrics



Procurement



Procurement

Engi-neering



Procurement

Engi-neering

Pro-gramms



Procurement

Engi-neering

Pro-gramms

Opera-tions



Procurement

Engi-neering

Pro-gramms

Opera-tions

Custo-mer

Support



1 Strategic Supplier Manager Strategic Single Voice of Airbus

1 Operational Supplier Manager Manage Transversal Projects and Data

1 Supply Chain & Quality Manage Capacity, Capability and Performance


Electronic Communication Platforms


Aerostructure

Equipment

General

Procurement

Material

Propulsion

25bn EUR

General Procurement



Aerostructure

Equipment

General

Procurement

Material

Propulsion

80% of CoS

General Procurement



80% of CoS



Source: Sourcing report 2011 and

deliveries status onJuly 31st, 2012 The Global Sourcing Challenge

Deliveries: 32%

Backlog: 23%

Buy: 33%



Deliveries: 31%

Backlog: 18%

Buy: 66%

The Global Sourcing Challenge



Deliveries: 25%

Backlog: 37%

Buy: 1.2%




Deliveries: 5%

Backlog: 12%

Buy: <1%

Deliveries: 5%

Backlog: 8%

Buy: <1%



Where are our Future Customers?

At end July 2012. Airline + lessor orders (distributed based on regional fleet in service of lessor aircraft today). Percentages are rounded

In addition, undisclosed orders for 2 aircraft

Source: Airbus


Aerostructure

Equipment

General

Procurement

Material

Propulsion

General Procurement

Globalize the Supply chain


Things to Remember


2. It‘s global

3


General

Procurement

Globalize and consolidate

the Supply chain:

Fewer and bigger


Globalize & consolidate the Supply chain: Bigger & fewer

10-20% large suppliers

> 100k EUR per ship set

A320 & A330/340



~40% large suppliers


A380



~75% large suppliers


A350 XWB


General

Procurement

Develop the Supply chain:

Robust & Ready for Ramp-up


Development Phase

Industrial PROCESS

CAPABILITY ASSESSMENT

Process and Product

QUALIFICATION

Product and quality AUDITS


Serial Phase

Industrial PROCESS

CAPABILITY ASSESSMENT

CAPACITY Contingency

Assessment

Supplier IMPROVEMENT


What‘s the Target

Lead the Change

Continuous Improvement

Customer Demand at Lower Cost

Operate a Robust Process


The Road to Industrial Excellence

Quality & Standardisation

Lean Supply Chain

Correction, Improvement, Development

Collaboration and Ownership


Improvement Portfolio


Structural capacity & capability

Mature processes

Right First Time

Schedule Adherence control

Lean approach

W

H

A

T


Supplier Ownership

Executive Level Sponsorship

Structured Project Management

Signed Performance

Improvement Agreements

H

O

W

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. © A

IRB

US

S.A

.S. A

ll r

ights

reserv

ed. C

onfidential a

nd p

ropri

eta

ry d

ocum

ent.

• Innovative and leading technologies

• Long term partnership in a growing market

• Optimized input cost via material enablement

• Support for continuous improvement

AIRBUS offers:

• Competitive partners (Price, quality and reliability)

• Industrial Excellence

• Financial health

• Best class project management

• High reactivity in Engineering & After Sales support

• Strong Supply Chain

AIRBUS expects:

Tier-n Tier-1 Airbus


Things to Remember


2. It‘s global

3. It‘s about big,

strong partners

3

4. holger rohde aarhus presentation slides2

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