Innovation in IHI’s V2500 Engine Program

By changing sourcing to oversea SMEs

Outline

Japanese aerospace business todayV2500 Engine programHow to made the V2500 into a profitable

program

Japanese Aerospace Industry Turnover

(Billions of Yen)

Turnover of Major Countries – Aircraft & Space

Aircraft1,086

Space270

Turnover in 2009 Total 1,356

0

200

400

600

800

1,000

1,200

1,400

1,600

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

Space270

Aircraft

1,086 Total1,356

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

08USA

09 08UK

09 08France

09 08Germany

09 08Canada

09 08Japan

09

Space Sector

Aircraft Sector

(Billions of Yen)

(Billions of Yen)

Employment

0

200

400

600

800

1,000

1,200

1,400

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

115

322

649

1,086

Equipment

Airframe

Engines

Total

0

200

400

600

800

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

209

375

502

Defense

Civil Expor

Civil Domestic

0

100

200

300

400

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

Software 14

Ground Facility 30

Space Vehicle

226

270Total

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

Space6,341

Aircraft

25,220

31,561

employees

Total

Foreign Trade of Aircraft

ImportExport

Japan ⇔ USA / EU

Exports Imports

Exports & Imports – By Type

Boeing 787 Program

(Source: JADC)

Kawasaki Heavy Industries◇ forward fuselage◇ main landing gear wheel well

& main wing fixed trailing edge

Mitsubishi Heavy Industries◇ main wing box

Fuji Heavy Industries◇ center wing box◇ integration of center wing box

with main landing gear wheel well

( Parts Supplier )◇ Bridgestone (tires) ◇ GS Yuasa/Thales (lithium - ion battery system)◇ JAMCO (lavatories, flight deck interiors, flight deck door & bulkhead assembly)◇ Nabtesco /Hamilton Sandstrand (rack & panel)◇ Panasonic Avionics (cabin services system)◇ Sumitomo Precision Products (APU oil cooler)◇ Tamagawa - Seiki (sensor, DC motor)◇ Toray (TORAYCA® prepreg composites)

A380 Program

ShinMaywa(Filet Fairing, etc)

JAMCO(Vertical Stabilizer Structure,

Galley, etc.)

Fuji Heavy Industries(Vertical Tailplane

Edge & Fairing)

Mitsubishi HeavyIndustries(Cargo D oor )

NIPPI(HorizontalTailplane)

YRC (Tank )

Casio(TFT Panel)

Yokogawa(Display Module

for Cockpit)

Nikkiso(Cascade)

SPP(Equipment for MainLanding gear)

Bridgestone(Landing gear, Tire)

Koito Industries(New Designed Seat)

Panasonic Avionics(Entertainment System)

Sumitomo Metals(Titanium Sheet)

Mitsubishi Rayon(Composite Material)

Toray / Toho Tenax(Carbon Fiber)

Showa Aircraft Industry(Aramid Honeycomb)

Komy(Fantastic Flat Mirror)

Makino Milling Machine(Machining Center)

Minebea(Bearing)

Aircraft – Product Models

Indigenous Development and ProductionFirst Delivery Year Model Application Development & Manufacture No. of Aircraft

19531954195619581960196219651966196719681969197019711974197519771977198019851988199719992002

KAL-1/-2KATLM-1KM-2T-1KH-4YS-11MU-2FA-200PS-1P-2JC-1 T-2US-1FA-300F-1T-3MU-300T-4T-5OH-1MH2000T-7

Piston liaisonPiston trainerPiston liaisonPiston trainerIntermediate jet trainerGeneral-purpose helicopterTurboprop transportBusiness turbopropPiston light planeTurboprop antisubmarine patrolTurboprop antisubmarineJet transportSupersonic jet trainerTurboprop rescue amphibianBusiness pistonJet support fighterPrimary piston trainerBusiness jetIntermediate jet trainerPrimary turboprop trainerObservation helicopterMulti-purpose helicopterPrimary turboprop trainer

KHIKHIFHIFHIFHIKHINAMCOMHIFHISMICKHIDev.: NAMCO, Mfg.: KHIMHISMICFHIMHIFHIMHIKHIFHIKHIMHIFHI

42

276666

2031827652992383319620477750

10321247307

49

Aircraft – Product Models

Production under Technical LicenseFirst Delivery Year Model Application Development & Manufacture No. of Aircraft

1953 Bell 47 Small general-purpose helicopter KHI 2361954 B-45 (T-34) Single-engined propeller trainer Beech Aircraft FHI 1621955 F-86F Jet fighter North American MHI 3001955 T-33A Jet trainer Lockheed KHI 2101957 L-19 Single-engined propeller liaison Cessna FHI 221958 S-55 (H-19) Large general-purpose helicopter Sikorsky MHI 461959 P2V-7 Large antisubmarine patrol Lockheed KHI 481961 F-104J Jet fighter Lockheed MHI 2301962 V-107 Large general-purpose helicopter Boeing Helicopters KHI 1601962 S-62 Medium general-purpose helicopter Sikorsky MHI 271963 Bell 204B Medium general-purpose helicopter FHI 127

(HU-1B)1964 S-61 (HSS-2) Large general-purpose helicopter Sikorsky MHI 1841968 Hughes 369 Small general-purpose helicopter McDonnell Douglas KHI 387

(OH-6) 1972 F-4EJ Jet fighter McDonnell Douglas MHI 1401973 UH-1H Medium-size general-purpose helicopter FHI 1331981 F-15J/DJ Jet fighter McDonnell Douglas MHI 1991982 P-3C Large antisubmarine patrol Lockheed KHI 981983 AH-1S Medium-size antitank helicopter FHI 891986 CH-47J/JA Large general-purpose helicopter Boeing Helicopters KHI 861991 SH/UH-60J Large antisubmarine helicopter / Sikorsky MHI 214

& SH-60K general-purpose helicopter FHI 1993 UH-1J Medium-size general-purpose helicopter KHI 1222006 MCH-101 Minesweeping and heavy-lift helicopter Agusta Westland FHI 52006 AH-64D Battle helicopter Boeing 9

Aircraft – Product Models

Co-Development and ProductionFirst Delivery Year Model Application Development & Manufacture No. of Aircraft

1982 YX/767 Jet transport Dev.: CTDC 　 -Boeing, Alenia

994

Mfg.: MHI, KHI, FHI-Boeing, ARTL

1982 BK117 Multi-purpose turbine helicopter

KHI - Eurocopter Deutsche 848

1994 777 Jet transport Dev.: JADC-Boeing 910Mfg.: MHI, KHI, FHI 　 -Boeing

1995 XF-2 Jet support fighter MHI/Lockheed Martin 41995 205B Multi-purpose helicopter FHI/Bell 22000 F-2 Jet support fighter MHI/Lockheed Martin 872010* 787 Jet transport Dev.: JADC-Boeing -

Mfg.: MHI,KHI,FHI 　 -Boeing

*: to be scheduled

Engine – Product Models

Indigenous Development and ProductionFirst Delivery Year Model Application Development & Manufacture No. of Engines

1962 J3 Turbo jet engine T-1B NJE 247 P-2J IHI

1965 JR100/J200/J220 Lift engine R&D IHI 61973 FJR710 Turbofan engine STOL (*) IHI, KHI, MHI 151975 XF3 ditto XT-4 IHI 301987 F3 ditto T-4 IHI 5591992 XTS1 Turboshaft engine XOH-1 MHI 301999 MG5-100 Gasturbine engine MHI 141999 TS1 Turboshaft engine OH-1 MHI 82

(*): Research Aircraft

Engine – Product Models

Production under Technical LicenseFirst Delivery Year Model Application Licensor & Licensee No. of Engines

1961 J79-11 Turbojet F104 GE IHI (*1) 6001962 T58-10 Turboshaft S-62 GE IHI (*2) 800 1966 T64-10 Turboprop P-2J, PS-1 GE IHI 3911967 T63 Turboshaft Hughes 369 & OH-6 Allison MHI 217

KT53-11A ditto Bell 204 (UH-1B) Honeywell KHI (*3) 6341969 T58-140 ditto S-61 (HSS-2), V-107 GE IHI (*2)

J79-17 Turbojet F-4EJ GE IHI (*1)1970 TF40 (Adour) Turbofan T-2, F-1 RR-Turbomeca IHI 4261971 JT8D-9 ditto C-1 P&W (UTC) MHI 721972 T53-K-13B Turboshaft Bell 204-II (UH-1H) Honeywell KHI (*3)1979 F100-100 Turbofan F-15 P&W (UTC) IHI 447

T56-14 Turboprop P-3C Allison IHI 4831982 T53-K-703 Turboshaft AH-1S Honeywell KHI (*3)1984 T55-K-712 ditto CH-47J Honeywell KHI 2061988 T700-401C ditto SH/UH-60J/K GE IHI 6211999 F110-129 Turbofan F-2 GE IHI 1102005 RTM322 Turboshaft MCH-101 RR-Turbomeca KHI 21

Product models of Engine

Co-Development and ProductionModel Application Development & Manufacture

CF34-8/-10 Turbofan engine JAEC(IHI, KHI) 　 – GE

GEnx * ditto IHI, MHI 　 – GE GE90 ditto IHI 　 – GE HF118/HF120 * ditto Honda/GE JT8D-200 ditto MHI-P&W PW4000 ditto KHI,MKHI 　 – P&W PW6000 ditto MHI 　 – P&W RB211-524 ditto IHI, KHI 　 – RR Trent 500 ditto IHI, KHI 　 – RR Trent 700/800 ditto IHI, KHI 　 – RR Trent 1000 * ditto KHI, MHI 　 – RR Trent XWB * ditto KHI, MHI –RR V2500 ditto JAEC(IHI, KHI, MHI) 　 – P&W, RR, MTU, FIAT XJB/RJ500 ditto (for R&D) IHI,KHI,MHI 　 – RR

*: under development(Remarks) CTDC : Civil Transport Development CorporationFHI : Fuji Heavy Industries Ltd.J ADC : J apan Aircraft Development CorporationJ AEC : J apanese Aero Engines CorporationKHI : Kawasaki Heavy Industries, Ltd.MHI : Mitsubishi Heavy Industries, Ltd.NAMCO : Nihon Airplane Manufacturing CompanyNJ E : Nippon J et Engine Co., Ltd.SMIC : ShinMaywa Industries, Ltd.

Aerospace Clusters in JAPAN

NAME REGION MEMBERS MAIN ORG.

MANTEN Project All Japan 160 JASPA Co., Ind.

TOCHIGI Aerospace Ind.Promotion Conference TOCHIGI Prefecture 148 TOCHIGI PrefectureInd(B), Ac.. Go.

TOYAMA Aerospace business Assoc. TOYAMA Prefecture 80 TOYAMA Prefecture Ind. Gov.

TOCHIGI Aerospace Meeting Gr. UTSUNOMIYA City 77 UTSUNOMIYA City Ind. Gov.

NAGANO Aerospace Project NAGANO Prefecture 58NAGANO TECHNO FOUNDATION Ind.,Ac, Gov.

Aerospace Business Study Gr.TSUBAME SANJYOU City 57

TSUBAME SANJYOU FOUNDATION Ind.

YAMAGUCHI Brand Study Gr. YAMAGUCHI Prefecture 47 YAMAGUTI PrefectureInd.(B), Ac. Go.

On the Wings of OSAKA OSAKA City 41 OSAKA area companies Ind.

Aerospace Business Study Gr. TOUHOKU 6 Prefectures 39Ind. Eng. Promotion Gr. TOHOKU Branch Ind., Ac., Gov.

HIROSHIMA Aerospace Ind. Study Gr. HIROSHIMA City 33 HIROSHIMA City Ind. Gov.

Wing Win OKAYAMA OKAYAMA City 28 OKAYAMA Prefecture Ind. Gov.

SUWA World Aerospace Network SUWA City 22 NPO SUWA Ind.,Ac., Gov.

AMATERAS TOKYO 10 TOKYO Metropolis Ind. Gov.

Aerospace IIDA IIDA City 9 IIDA City area Ind.

SOLAE HAMAMATSU Area 9 HAMAMATSU area Ind.Remarks;Ind. = IndustryInd(B) = Industry including BankAc. = AcademiaGov. = Government

HAISG

HAISGIndustry Study GroupHiroshima Aerospace

Precision Machining Composites Surface Treatment Electronics

BTA / Gun DrillingSensor TechnologiesSheet Metal Working

Plasma Welding Spherical Machining

EDM

Hiroshima has a long thriving history in automobile, ship and aircraft manufacturing. There are many hi-tech companies, notably in the areas of precision machining and composite manufacturing, concentrated here. 33 Hiroshima companies participate in Hiroshima Aerospace Industry Study Group (HAISG).

Regional Industry Tie-Up Program (RIT)

●●

HiroshimaHiroshimaHiroshimaHiroshima

JETRO Hiroshima

JETRO Hiroshima

Coordination Coordination SupportSupportCoordination Coordination SupportSupport

RegionRegion

Ville de Montréal, CRIAQ, AQA, NRC, ETS, DFAIT, Embassy of Canada to Japan, Gouvernement du Québec…etc.

Ville de Montréal, CRIAQ, AQA, NRC, ETS, DFAIT, Embassy of Canada to Japan, Gouvernement du Québec…etc.

RegionRegion

Hiroshima City, HAISG (Hiroshima Aerospace Industry Study Group), Hiroshima University, SJAC, METI …etc.

Hiroshima City, HAISG (Hiroshima Aerospace Industry Study Group), Hiroshima University, SJAC, METI …etc.

●●

MontrealMontrealMontrealMontreal

JETRO TorontoJETRO Toronto

Business Agreements Develop of New Products Collaborative Research…etc.

Business Agreements Develop of New Products Collaborative Research…etc.

Inter-RegionalExchange

Inter-RegionalExchange

（ Experts – Companies ）　（ Experts – Companies ）　

Investigation ▪ MissionsSeminars ▪ B2B Meetings

Company Visits

Investigation ▪ MissionsSeminars ▪ B2B Meetings

Company Visits

V2500 work sharing among IAE members

V2500 Engine Program

History 1977.10 RR joined RJ500 program 1981.10 JAEC built 1982. 6 P&W, MTU and FIAT joined program 1983.12 IAE built 1989. 5 A1 started being used in flight 1992.11 A5 and D5 received certification

Share RR 　 　 33.5% P&W 32.5% JAEC 23.0% (IHI 62%, KHI 26%, MHI 12%) MTU 　 11.0%

Cost Reduction Process and Results

Process ( Cost Reduction ): Re-examined parts target cost using 2 methods.

IHI original and other should cost formula. Identified parts for cost reduction. Conducted VE for parts should cost reduction. Cost reduction negotiations. Source ( supplier ) changes.

Results ( Cost Reduction ): Change sourcing to oversea SMEs 65% Cost reduction negotiations 20% VE activities 10%

Changing Sourcing Steps

How we found good suppliers

Searched candidates from… International Aerospace Exhibition: PARIS,

FARNBOROUGH, SINGAPORE, JA… Partners information: GE, P&W… Trading house information Data base: Aviation Week " World Aerospace

Database“ Others

Recommend Option

Aerospace Exhibitions

NameParis Air Show

Farnborough Int.ILA

Singapore Air ShowFIDAE

ASIAN AEROSPACE

AUSTRALIAN INT. AIR SHOW

SEOUL AIR SHOW

JAMAKSDubai

AERO INDIA

LIMA

NBAA

Name (Venue)IICDES (India, New Delhi)

Aviation EXPO CHINA (Beijing)International Air Show (Poland)

SAE Aerospace (USA)Defense (Thailand, Bangkok)Aeromart (France, Toulouse)

ANA (Canada, USA)HELITECH (USA)LABACE (Brazil)

AIRSHOW (Turkey)AERO-ENGINE EXPO (UK)

AIRTEC (Germany)ZHAZHAHAI AIR SHOW 　（ CHIN

A ）CANADIAN AVIATION EXPO(Canada)

Changing Sourcing Steps

How to sourcing good suppliers

Selection process to finding the best suppliers Make a list of as many candidates as possible Comparison Chart: Certification, Customer, Cost,

Finance, Company Policy, Facilities, Technologies…

Pre-audit: Visit the plant Cost negotiations at IHI office: C.L.C., L.O.P.,

S.S.,V.E. and Win-Win

Selected Suppliers

Thornton Precision Forging (UK)H.D.A. (UK)Macrodyne (France)Forge de Bologne (France)Techspace Aero (Belgium)A.P.P. (USA)VIKING (USA)SHULTZ (USA)STERLING (USA)UTICA (USA)P.C.C. (USA)FORGED METAL (USA)FLAMECO (USA)

Conclusion

Display your company in Aviation Week's World Aerospace Database (WAD)

Market at large international aerospace exhibitions Have your own booth to exhibit your products and

technologies Request B2B meetings during exhibitions and also partake

in "after 5pm" personal relationship building activities. Utilize government support such as embassy, province and

state offices. Seek assistance from Trading Houses or Expert

Coordinators Contact large size companies such as OEMs and Tier 1

companies rather than SME organizations.

Thank you for your attention and I hope to see you again in Japan on business

Merci beaucoup!

Made by HATADA. Co., Ltd.