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Simplifying Customer Orders at Sikorsky Commercial Systems & Service SIKORSKY PUBLIC WARNING: THE INFORMATION IN THIS TRANSMISSION IS CONFIDENTIAL AND IS MEANT TO BE READ AND USED ONLY BY THE INTENDED RECIPIENT. ENCLOSED COMMODITIES, TECHNICAL DATA OR SOFTWARE ARE SUBJECT TO THE EXPORT CONTROL OF EITHER THE INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR) OR THE EXPORT ADMINISTRATION REGULATIONS (EAR) AND CANNOT BE EXPORTED WITHOUT THE AUTHORIZATION OF EITHER THE DEPARTMENT OF STATE OR THE DEPARTMENT OF COMMERCE PRIOR TO EXPORT. EXPORT INCLUDES DISCLOSURE AND OR ACCESS TO COMMODITIES, TECHNICAL DATA OR SOFTWARE BY FOREIGN NATIONALS WHETHER LOCATED IN THE UNITED STATES OR ABROAD. THIS REQUIREMENT APPLIES EQUALLY TO FOREIGN NATIONAL EMPLOYEES OF U.S. COMPANIES AND THEIR FOREIGN SUBSIDIARIES. THIS DOCUMENT, OR AN EMBODIMENT OF IT IN ANY MEDIA, DISCLOSES INFORMATION WHICH IS PROPRIETARY, IS THE PROPERTY OF SIKORSKY AIRCRAFT CORPORATION AND/OR ITS SUBSIDIARIES, IS AN UNPUBLISHED WORK PROTECTED UNDER APPLICABLE COPYRIGHT LAWS, AND IS DELIVERED ON THE EXPRESS CONDITION THAT IT IS NOT TO BE USED, DISCLOSED, REPRODUCED, IN WHOLE OR IN PART (INCLUDING REPRODUCTION AS A DERIVATIVE WORK), OR USED FOR MANUFACTURE FOR ANYONE OTHER THAN SIKORSKY AIRCRAFT CORPORATION AND/OR ITS SUBSIDIARIES WITHOUT ITS WRITTEN CONSENT, AND THAT NO RIGHT IS GRANTED TO DISCLOSE OR SO USE ANY INFORMATION CONTAINED HEREIN. ALL RIGHTS RESERVED. ANY ACT IN VIOLATION OF APPLICABLE LAW MAY RESULT IN CIVIL AND CRIMINAL PENALTIES. ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION OR COPYING OF THIS TRANSMITTAL BY AN UNINTENDED RECIPIENT IS STRICTLY PROHIBITED, AND MAY BE A VIOLATION OF LAW SUBJECT TO PENALTY.

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Simplifying Customer Orders at Sikorsky

Commercial Systems & Service

SIKORSKY PUBLIC WARNING: THE INFORMATION IN THIS TRANSMISSION IS CONFIDENTIAL AND IS MEANT TO BE READ AND USED ONLY BY THE INTENDED RECIPIENT. ENCLOSED COMMODITIES, TECHNICAL DATA OR SOFTWARE ARE SUBJECT TO THE

EXPORT CONTROL OF EITHER THE INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR) OR THE EXPORT ADMINISTRATION REGULATIONS (EAR) AND CANNOT BE EXPORTED WITHOUT THE AUTHORIZATION OF EITHER THE

DEPARTMENT OF STATE OR THE DEPARTMENT OF COMMERCE PRIOR TO EXPORT. EXPORT INCLUDES DISCLOSURE AND OR ACCESS TO COMMODITIES, TECHNICAL DATA OR SOFTWARE BY FOREIGN NATIONALS WHETHER LOCATED

IN THE UNITED STATES OR ABROAD. THIS REQUIREMENT APPLIES EQUALLY TO FOREIGN NATIONAL EMPLOYEES OF U.S. COMPANIES AND THEIR FOREIGN SUBSIDIARIES. THIS DOCUMENT, OR AN EMBODIMENT OF IT IN ANY

MEDIA, DISCLOSES INFORMATION WHICH IS PROPRIETARY, IS THE PROPERTY OF SIKORSKY AIRCRAFT CORPORATION AND/OR ITS SUBSIDIARIES, IS AN UNPUBLISHED WORK PROTECTED UNDER APPLICABLE COPYRIGHT LAWS, AND IS

DELIVERED ON THE EXPRESS CONDITION THAT IT IS NOT TO BE USED, DISCLOSED, REPRODUCED, IN WHOLE OR IN PART (INCLUDING REPRODUCTION AS A DERIVATIVE WORK), OR USED FOR MANUFACTURE FOR ANYONE OTHER THAN

SIKORSKY AIRCRAFT CORPORATION AND/OR ITS SUBSIDIARIES WITHOUT ITS WRITTEN CONSENT, AND THAT NO RIGHT IS GRANTED TO DISCLOSE OR SO USE ANY INFORMATION CONTAINED HEREIN. ALL RIGHTS RESERVED. ANY ACT

IN VIOLATION OF APPLICABLE LAW MAY RESULT IN CIVIL AND CRIMINAL PENALTIES. ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION OR COPYING OF THIS TRANSMITTAL BY AN UNINTENDED RECIPIENT IS STRICTLY PROHIBITED,

AND MAY BE A VIOLATION OF LAW SUBJECT TO PENALTY.

BIOGRAPHY

Most recently, David has supported Sikorsky Aircraft Corporation with development and implementation of Dassault Systemes, Enovia Variant Configurator Central & Engineering Change Central.

Noteworthy past experiences include; working for professional auto racing team that achieved three Indianapolis 500 wins, and participant in hot air balloon race across Australia.

2

David Kiefer is a presenter that brings 30 years of experience in

business management and operational excellence from automotive,

hi-tech, and retail/ customer service industries.

David has spent the past fifteen years as a System Developer and

Interactive Project Manager; providing application solutions to Bio-

tech and specialty chemical enterprises.

This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public

BUSINESS OBJECTIVES

3

Key Business Goals

Unprecedented growth

Engineered to Order demand

Complex Product Option structure

Control of Proposal through certification

and final delivery

Change Management

Improvement metrics

Future plans

Business Challenges

Defined Requirements

Accuracy of Pursuits

Document Control

Program Schedule compliance

Pricing

Obsolescence

Changing Business Environment

This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public

OVERVIEW OF SIKORSKY AIRCRAFT

Operations on five continents; 40 nations

6 million square feet of building space

Approximately 2.6 million square feet of manufacturing space

4

Statistics

This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public

UNPRECEDENTED GROWTH

Commercial backlog of nearly $3 billion — its largest ever

Driven by growing demand for offshore transportation in the oil and

gas industry.

The S-92 helicopter, Sikorsky’s best-selling commercial product, is

the only helicopter in its class certified to the latest U.S. Federal

Aviation Administration and European airworthiness safety standards

In January 2014, Sikorsky delivered the first S-76D to the Bristow

Group, the world’s leading provider of helicopter services to the

offshore oil and gas industry.

5 This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public

MEET CUSTOMER DEMAND

Management of over 2500 option codes

Design Requirements/ Master Data

Focus on custom option design for re-use

Annual Commercial Price List Review

Maturity in option lifecycle management (PLM)

Option Obsolescence procedures

Gravitate from MBOM-centric management to EBOM template approach

6

Engineer to Order

This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public

4 | Selection Of Options Sales shares options with

customer who selects desired

configuration, quantities, target

delivery

3 | Initial Proposal Letter listing standard Options

for Mission, List pricing 5 | Quote Development

Customer option selections and

special requirements are

estimated, scheduled and priced

2 | Initial Inquiry Customer RFQ/ RFP requests

for specific model and mission

HIGH-LEVEL SAC COMMERCIAL SALES PROCESS

6 | Initial Contract Options, pricing, schedule shared

with customer. Options and

schedule accepted by customer

7 | Final Contract Final options, pricing, schedule

shared with customer.

Authorization to proceed

1 | Option Definition Mission, rules, settings, list pricing

defined and approved.

7

MODEL BASED AUTOMATED DOCUMENTS

Legacy State Intensely manual process

Multiple email threads w/attachments

Labor intensive w/large queue time

Duplicate versions

12

NEW Current State Automated mistake proof system

Centralized, integrated enterprise solution

Lean cycle time

Robust change control with access controls

Config. on

Report

Cost Sheet

Proposal

Letter

Check list Engineering

Config.

Quote

This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public

CONTROL FROM PROPOSAL TO DELIVERY

9

Much more than an engineering tool

Monitoring Proposal & Configuration traffic benefits resource management

Controls approvals & documents in relation to configuration definition

Proposal & Configuration generation in less than one hour

Real time aircraft BOM generation - Releases requirements to Operations

This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public

OPTION APPROVAL PROCESS

10

Option Development

based on requirements

RFQ inputs

Feature Change

•Int’l Trade Compliance

•Certification Basis

•Statement of Work

•Background requirements

•Dependencies/ Exclusions

•Parametric Weight

•Commercial Price List applicability

•Customer

•Requestor

•Operating country

•Green delivery date

•Desired completion delivery date

•Commercial Price List

•Marketing Feature Change:

•Create/ Change/ Delete

•Option change, Property change, etc.

•Technical Feature Change

•Design Change

•Design Improvement

•Customer Requirement

PRODUCTION & COMPLETIONS

11

Programs &

Engineering Planning

Production

BOM Presentation (Kit,

Sort by Type, Sequenced)

Takt’d Internal Logistics

Supermarkets

Lost Part Tracking

Pull Replenishment

Capability

Lean Logistics

Build Type Management

Staffing (Operator % Loading,

Capacity Loading, Bar Charts)

Corrective Action (QCPC,

ROH, COPQ, RRCA, Mistake

Proofing)

Layout (6S, VSM, 3P, Visual

Factory)

Backshop VSMs (Harnesses,

Paint, Interiors, FDC)

Completions

Center

• Option Lifecycle Management

• Request for Proposal/ Quote (RFP/ RFQ)

• Allocation Management

• Program Milestone Compliance

• Induction Readiness Process

• BOM Generation

• Change Management

• BOM Process

• PFEP (Alternative Replenishment Strategies)

• Material Andon

• Shortage Management

Technology

Training

GOLD Transformation

Aug

2013

Oct

2013

Jan

2014

June

2014

May

2014

World Class

Distinctiveness

100% to contract

Earliest warning of

customer changes post

induction

Lean execution of late

customer Changes often

through option design

95% to MRP

90% of OTD problem

parts addressed by

safety stock, PFEP, and

forecasting

Optimized Standard

Work to Takt

Flexible crewing to

mitigate supply chain and

operational variances This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public

CONTROL CONFIGURATION CHANGE

Control configuration of an aircraft from initial proposal to delivery

Manages customer requested change and signals Operations for review and execution of required actions (Change Review Board)

13

Business has to be ―experts‖ in Change Management

Create Approval In Work Review Release

This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Proprietary

Review of change by Program Management to be in lock-step with

contract documents

Custom Tail # Change (―Refire‖) object benefits BOM Management

30 3 0

5

10

15

20

25

30

35

Hours

14

PROCESS EFFICIENCIES Commercial Proposal Turn Around Time

8 1 0

2

4

6

8

10

Days

Average turn around time for routine proposals

Manual

Method

NEW

Near Future

State

This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public

IMPROVEMENT METRICS

Proposal & Configuration

generation in less than one

hour

Real time aircraft BOM

generation

Change Management, and

communication to functional

organizations

15

2013 Progress

This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public

OPTION MANAGEMENT – CURRENT STATE

Program

Project

Task

Contract

Line Item

WBS Item

Configuration Item

Product Baseline

Geometry

Part

ABC Aviation

G9X00002

Proposal G9X

Task 1002

Task 10021

Task 10022

Task 10023

Task 10024

Task 10025

Product Line

Model

Avionics

Mission

Helicopter

Baseline

Completions

Options & Portfolio Management

Programs & Project Management

Scenario

Analysis Model

Analysis Results Task 10012

G9X00002

Contract G9X

CLIN 102

CLIN 101

WBSE 501

WBS 500

WBSE 503

WBSE 502

CLIN 103

CLIN 104

WBSE 503-1

WBSE 503-2

Contract 2004-1

Contract 2004-2

Interior

Task 1003 Contract

Management

Qty =1

Qty =2

Task 1001

ABC-200 Cert. Task 10011

Contract 1234 Dev.

54000-041

CM & Design

54020-041

54021-041

54021-042

54021-043

Unit Tracking

12345-655

12345-654

EBOM &

Parts

Build

This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public 16

FUTURE PLANS

Future plans to expand the scope to improve contracts management, program execution and management of custom option development.

Absorption of aftermarket contract management

Program operational compliance, health and monitoring

Engineering Project phase & gate management

The Dassault Systèmes’ Aerospace & Defense solutions have been instrumental to the commercial business through scalable & customizable functionality. These flexible business applications offer future opportunity for Sikorsky enterprise management to create a competitive advantage by delivering products from concept to market faster.

17

A&D Accelerator for Program Management

This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public

OPTION MANAGEMENT – FUTURE STATE

Program

Project

Task

Contract

Line Item

WBS Item

Configuration Item

Product Baseline

Geometry

Part

54000-041

S-92 Program

Contract 1234

Proposal

Task 1002

Task 10021

Task 10022

Task 10023

Task 10024

Task 10025

Contract 1234 Dev.

Product Line

Model

Avionics

Mission

S-92

S-92 Baseline

S-92 Completions

CM & Design

Options & Portfolio Management

Programs & Project Management

Scenario

Analysis Model

Analysis Results Task 10012

Contract 2003

Contract 2004

CLIN 102

CLIN 101

WBSE 501

WBS 500

WBSE 503

WBSE 502

CLIN 103

CLIN 104

WBSE 503-1

WBSE 503-2

Contract 2004-1

Contract 2004-2

54020-041

Interior

54021-041

54021-042

54021-043

Task 1003

Contract Management

Qty =1

Qty =2

Unit Tracking

12345-655

Task 1001

ABC-200 Cert.

12345-654

Task 10011

EBOM &

Parts

Build

This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public 18

KEY AUDIENCE TAKEAWAY

Advice = Don’t start from middle of value-chain

Continuous Improvement journey

Focus = People, Process, Technology

Driving Business Results – it is all about

asset velocity and every document is an asset

High Value to business model

18 This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public

Q&A

20 This Page Contains No Technical Data Controlled by the ITAR or EAR

Sikorsky Aircraft Corporation Public