November, 2008

Engineering

Emilio MatsuoSenior Vice President

Embraer Products and Technology Evolution

90’s

AMX

EMB 120EMB 120

ERJ 145ERJ 145

2008

EMBRAER 170

LEGACY 600

AEWALX

FamilyERJ 145

FamilyEmbraer 170 / 190ERJ 135 ERJ 140 ERJ 145 XRERJ 145

EMBRAER 175 EMBRAER 190 EMBRAER 195

SHUTTLE

Defense

Executive

PHENOM 100 PHENOM 300

ISR AMX / A-1M

LINEAGE 1000 LEGACY 500/450

70 - 80

80 - 90

90 - 00

00 - Actual

50 - 60

Technological Evolution

Simultaneous Development

2000 2001 2002 2003 2004 20062005 2007 2008 20102009

EMBRAER 175

EMBRAER 195

EMBRAER 170

EMBRAER 190

LINEAGE 1000

2011

PHENOM 100

PHENOM 300

LEGACY 500 / 450

ALX

A1M

SUPER TUCANO COLOMBIA

LEGACY 600

Defense

Commercial

Executive

AEW

SUPER TUCANO CHILE

AEW INDIA

Market

Executive

Defense

Commercial

Pre

-de

sig

nP

rod

uc

t D

efi

nit

ion

ConceptualFeasibility

Co

nc

ep

tua

l S

tud

y

Develoment

Startup

ProductFeasibility

New Products Evaluation

Technology as a Driver for success ...

Product Objectives from Market Needs

MARKET REQUIREMENTS1. Low cost of operation2. Superior reliability / maintainability3. Comfort / health driven cabin design4. Flight capacity on any environment5. Low cost of acquisition6. High flexibility / adaptability: platform7. Market specialisation: Luxury & Styling

Interiors.

ENVIRONMENTAL PRESSURE8. Low aircraft noise (external / internal )9. Reduce CO2 and NOx emissions

10. Green manufacture, maintenance & disposal

INTEGRATION IN THE SYSTEM11. Solution to secure flight in any conditions12. Good airport compatibility13. Exploiting new ATM opportunities

12

3

4

5

6

7

8

9

10

11

12

13

...

Strategic Technology Agenda

STRUCTURES / MANUFACTURING- Composite Fuselage / Wing- New Metallic Fuselage / Wing- Assembly Automation- Structures Technology & Methods

FLIGHT PERFORMANCE- Loads & Flow Control- New Aircraft Concepts- Noise Reduction- Flight Physics Technology & Methods

ENERGY / CROSS DOMAIN- Alternative Energy- Energy Management- Tests Automation- Design for Environment

CABIN SYSTEMS / COMFORT- Interiors Design & Comfort- Common Cabin Service Platform- Cabin Modularisation & Integration- Passenger & Payload

EMBEDEED SYSTEMS / INTEGRATION- Develop Mature Systems- Systems Architecture- Information Management for Avionics- Aircraft Flight Control

Product Development Process – Evolution

1) SequencialDevelopment

Marketing

Pre-design

Engineering

Manufacturing

2) SimultaneousEngineering

1 2 3

Initial

definitions

Joint Definition Detail Design

and Certification

Series

Production

Phase

Out

IPD – Integrated Product Development

IPD

Aerodynam

ics

FuselageI

IPT - Functional Integration

DBTPhysical

. . . .

Integration

IPD

Aerodynam

ics

FuselageI

IPT - Functional Integration

DBTPhysical

. . . .

Integration

3) Integrated ProductDevelopment

Core TeamProductDevelopment

. . . .

. . . .

ProgramManagement

Quality

PartnersManagement

Commercial

Manufacturing

Aeronautic

s

Custom

er Support

Productio

n

System

s

Wing

Empennage

Fuselage I

Team Based Organization

Integrated Product Teams(Functions Integration)

Design Build Teams(Physical integration)

CustomerSupport

Embraer Enterprise Excellence Program – P3E

�People

�Process

�Leadership

�Culture

Engineering Manpower Growth

550658

846

1119

1546

2195

25432713

2941

3278

36263838

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

Pe

op

le

Engineering Specialization Program - PEE

2001 ����2007

737 trained engineers

80 courses

13 specialties

Traditional classes

Video conference/WEB

~4000 candidates

~80 selected/class

~50:1

18MM US$ (2001/2004)

18 m

e-Learning

Qualified People (1)

0%

10%

20%

30%

40%

50%

60%

Level 1 Level 2 Level 3 Level 4

En

gin

eeri

ng

Lab

or

%

Engineering Professional Experience

2000

52%

12%17%

19%

31%

18%

33%

18%

2007

Qualified People (2)

Educational Levels*

* Brazil Units03/17/08

High School

69 %

Ph.D.

2%

Postgraduate

4% Graduate

25 %

Minimum educational level – High School

�Genba Kaizen

�Cost Reduction

�Cycle Reduction

�Quality Improvement

�Lean Development

�Digital Factory

�Prototype Planning System

�VPM Integration

�Continuous Improvement Cells

�Integrated Product Development Kaizen

P3E – Process

25 7 7 8 9 11 12

1519

23

29

3640

48 4853

59

65

7177

81

87

9399

105

111

4541

0

20

40

60

80

100

120

sep/

07

nov/

07

jan/

08

mar

/08

may

/08

jul/0

8

sep/

08

nov/

08

jan/

09

mar

/09

may

/09

jul/0

9

sep/

09

nov/

09

Kaiz

en

Even

ts

Plan

Actual

Kaizen Events – 2008 / 2009

Digital Mockup x Digital Manufacturing

Digital Mockup

Digital Factory

Digital Manufacturing:

Assembly Simulations

3D Work Instructions

• Integration of the 2 Product Development Environments: Engineering andManufacturing.

Digital Mockup

Digital Factory

Digital Manufacturing:

Assembly Simulations

3D Work Instructions

• Integration of the 2 Product Development Environments: Engineering andManufacturing.

Digital Factory - Benefits

• Simplify IPD processes

• Eliminate 2D assembly installation drawings

• Reduce engineering changes

• Anticipate the maturity of manufacturing processes

• Provide correct information for shop floor

• Reduce non-conformities

• Reduce sustaining effort

Continuous Improvement Cells

2

6

12

17

23

3

0

10

20

30

40

50

60

70

80

90

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2008 2009

Launch Plan

Launch Actual

Qualification Plan

Qualif. Actual

Bronze Plan

31

67

85

Integrated Product Development

• Investment Anticipation

• Readyness (people and technology)

• Suppliers Selection and Management

• Engineering Tools

• Business Plan

• Planning

• Leadership

• Risk Management

• Requirements Management

• Product Development Management

• Experimental Process

• Knowledge Management

� Corporate Leadership Program

� Engineering

�Support the leadership development, through structured actions

including: awareness, training, self development and coaching.

WhoWho am I?am I?

Assessment/ Feedback

The try out will be finished by

October, 08

ExpectedExpected ProfileProfile

Career Workshop

November, 08

DevelopmentDevelopment

PlanPlanExisting estrategy +

Performance ManagementWorkshop

January, 09

EvaluationEvaluation

360°360°

ContinuousContinuous FeedbackFeedback

Leadership Development Program

Organizational Structure – Oct 1st, 2008

Organizational Structure – Jan 1st, 2009

Thank You