Bombardier Customer Services Customer Web Seminar
Andy Nureddin, VP, Customer Services & Support January 26th, 2011
1 Agenda
2010 Review 2011 Plan to put You. First. Q&A session
2 Progress on Our commitments to you for 2010
Aircraft Reliability and • Close 57 Top In-Service Issues 3 Closed 52 issues to date Quality Installed 735 components • Implement RIMP 1 on 100 a/c 3 on 176 a/c to date • Launch Supplier Management & maintenance engineering teams
24hr worldwide support • Implement Regional Support Office Strategy • Increase International Support Staffing
• Accelerate NFF improvements AOG Parts • Increase Parts Inventory Worldwide
Service and Maintenance • Add Maintenance Capability in Europe & China Support and Training • Worldwide Simulator Expansion
• Launch Delivery Teams Customer Care • Increase Customer Advisory Awareness in Operator Community
3 Closed 52 Top In-service Issues
M45 Standby Gyro Reliability Ram Air Regulating Valve HSTAB pin lubrication ISI battery Safety Valve Opening in Flight M45 Aileron Quadrant/Spindle SB Hydraulic SOV Maintainability - Separate LRU for Actuator and Motor M31A AHRS Support Full Load of Fuel issues Refuel/Defuel Manifold Leak M45 HP Shut-off Value CL300 ADS-B Out RAT Manual Release Cable Bellows Redesign M45 Spoiler Rigging Lavatory/Baggage Door - Hard To Close Aileron Trim Galley Chiller M45 TR Switch Harness Reliability Cabin Emergency Lighting Water Tank - 13 USG M45 Emergency Batter Connector EMTEQ EXIT sign Access Landing Gear Corrosion Water Tank Pressurized System Oxygen Panel Deploy Switch M60 Tire Pressure Measuring Side ledge panel lids not user friendly Passenger Door Telescopic Strut System Assembly EVAC Rinse Valve Brake Accumulator Leakage M45 HP Shutoff Valve CTU, AEROCOM 3000 Phone Brake Shutoff Valve M45 Ground Plug Bonding Problems FIREX Control Unit Cockpit Quick Reference “Gotcha” List AFD Harness damage Equipment, Digital, Tapping DBU 5000 & CL604 ADS-B Out Hose Assembly (Heater Blanket Fouling) LAV inspection Accumulator leakage Oxygen bottle leaks ACU exhaust duct corrosion Display Unit
Tail cone/Tank MMEL relief Brake Assy Corrosion Inspection CL605 CDU6200 & CL604 EFD4077 Pilot Static Drain ECS Single Pack Operation, cancelled Windshield Wiper Removal 4 DBU 5000 RIMP 1 – Implementation Progress
900 Actual Target RIMP1 Components installed PL plan (on average each a/c requires approx. 8 components)
800 • Installed 735 components on 176 a/c to date 700 • 38 a/c 100% RIMPed
600
500
400
300 Total # of components# of Totalinstalled
200
100
0 12-Jul-10 26-Jul-10 04-Oct-10 18-Oct-10 05-Apr-10 19-Apr-10 10-Jan-11 24-Jan-11 14-Jun-10 28-Jun-10 08-Mar-10 22-Mar-10 08-Feb-10 22-Feb-10 01-Nov-10 15-Nov-10 29-Nov-10 13-Dec-10 27-Dec-10 09-Aug-10 23-Aug-10 06-Sep-10 20-Sep-10 03-May-10 17-May-10 31-May-10
5 Progress on Our commitments to you for 2010
Aircraft Reliability and • Close 57 Top In-Service Issues 3 Closed 52 issues to date Quality Installed 735 components • Implement RIMP 1 on 100 a/c 3 on 176 a/c to date • Launch Supplier Management & maintenance engineering teams
Opened RSOs 24hr worldwide support • Implement Regional Support Office Strategy 3 in India & Dubai • Increase International Support Staffing Hired 18 people to 3 work around the world
• Accelerate NFF improvements AOG Parts • Increase Parts Inventory Worldwide
Service and Maintenance • Add Maintenance Capability in Europe & China Support and Training • Worldwide Simulator Expansion
• Launch Delivery Teams Customer Care • Increase Customer Advisory Awareness in Operator Community
6 Added Regional Support Offices
MumbaiMumbai –– AprilApril 2020thth,, 20102010
Dubai – December 6th, 2010
4Local roots bring our support organization closer to our customers.
7 In 2010, we hired 18 Customer Support Professionals
Worldwide: Russia
Kazakhstan Europe China
Middle East Hong Kong India
Nigeria
Brazil
Field Service Representative Customer Services Account Manager Customer Liaison Pilot Regional Support Office Manager Customer Care Worldwide Support
8 Progress on Our commitments to you for 2010
Aircraft Reliability and • Close 57 Top In-Service Issues 3 Closed 52 issues to date Quality Installed 735 components • Implement RIMP 1 on 100 a/c 3 on 176 a/c to date • Launch Supplier Management & maintenance engineering teams
Opened RSOs 24hr worldwide support • Implement Regional Support Office Strategy 3 in India & Dubai • Increase International Support Staffing Hired 18 people to 3 work around the world
Appointed champion to • Accelerate NFF improvements lead initiative AOG Parts 3 • Increase Parts Inventory Worldwide Increased inventory by 3 $25.2M worldwide
Service and Maintenance • Add Maintenance Capability in Europe & China Support and Training • Worldwide Simulator Expansion
• Launch Delivery Teams Customer Care • Increase Customer Advisory Awareness in Operator Community
9 Accelerate NFF Improvements
Dedicated full time leader, Robert Jacques, in place to drive the No Fault Found (NFF) initiative. Achievements in 2010: Implemented top 10 NFF components improvement plan on each program Purge / Repair inventory Implementation of 3 Strikes process Introduction of the ISS team and the supplier Scorecard
10 Bombardier inventory investment continues to grow
Parts inventory Rotable parts “Right parts, Right place” Strategy Expendable parts
$25.2M of incremental inventory invested across network Frankfurt Chicago Beijing $13.4M outside North America Dubai Hong Kong
Focus on critical items & Singapore No Go Items, MEL A & Bs São Paulo
Sydney Reviewed and increased pool sizes to improve Top 25 availability
11 Progress on Our commitments to you for 2010
Aircraft Reliability and • Close 57 Top In-Service Issues 3 Closed 52 issues to date Quality Installed 735 components • Implement RIMP 1 on 100 a/c 3 on 176 a/c to date • Launch Supplier Management & maintenance engineering teams
Opened RSOs 24hr worldwide support • Implement Regional Support Office Strategy 3 in India & Dubai • Increase International Support Staffing Hired 18 people to 3 work around the world
Appointed champion to • Accelerate NFF improvements lead initiative AOG Parts 3 • Increase Parts Inventory Worldwide Increased inventory by 3 $25.2M worldwide
Added 5 ASFs & Service and Maintenance • Add Maintenance Capability in Europe & China 3 Schiphol Service Center Support and Training • Worldwide Simulator Expansion 3Added 4 simulators
• Launch Delivery Teams Customer Care • Increase Customer Advisory Awareness in Operator Community
12 Our new European Service Center will Help Satisfy Customer Needs Located at Schiphol Airport, Amsterdam, Netherlands Facility Overview Opened Feb 22, 2010 Formal Inauguration May 1, 2010 45,639 sq. feet of hangar space 35 employees Light to heavy maintenance capabilities Obtained certification in seven months Technicians trained on Learjet, Challenger and Global aircraft
13 We are Proactively Managing our Authorized Service Network
Evaluating requirements for any further expansions globally Eastern Europe China India Increased Quality standard requirements Bombardier Quality audits performed at 47 ASFs Customer Satisfaction surveys standardized across entire network Recent additions Aerovitro S.A. in Mexico - AOG LMF for Challenger and Global aircraft Lufthansa Bombardier Aviation Services GmbH (LBAS) - AOG LMF for Learjet, Challenger and Global airliners at Riga International Airport, Latvia. ExecuJet Malaysia – AOG LMF for Learjet, Challenger and Global aircraft at Kaula Lumpur, Lapangan Terbang SAAS International Airport Comlux Aviation Services - Challenger 300 aircraft accreditation to their ASF capabilities for Learjet and Challenger 600 series aircraft in Indianapolis, Indiana Jet Aviation - Learjet 60 aircraft certification and maintenance capabilities offered for Challenger and Global aircraft in Moscow, Russia
14 Training Sites – Bombardier Owned and Authorized
Montréal, Quebec – BAT Burgess Hill, UK – CAE ATP Global 605 Pilot Training Learjet 40/45 Pilot Training Challenger 850/870 Pilot Training Global Pilot Training Maintenance Training Maintenance Training Amsterdam ,Holland – CAE ATP Dallas, Texas - BAT Global Pilot Training Pilot Training: Challenger 300 Pilot Training Learjet 31/40/45/60 Dubai, UAE – CAE ATP Challenger 300 GEX Pilot Training Challenger 604/605 Maintenance Training
Dallas, Texas – CAE ATP Global Express Pilot Training
Morristown, NJ – CAE ATP Challenger 300 Pilot Training new additions this year
BAT and ATP common courseware for consistent quality & delivery worldwide
15 Entry-into-service Delivery Teams
Provide immediate, on-site support during the post-delivery phase Share best practices with our Customers
Teams Deployed in 2010:
Global: 35 Challenger: 11 Learjet: 8
Preliminary survey results show 100% Customer satisfaction with delivery team performance
16 Agenda
2010 Review 2011 Plan to put You. First. Q&A session
17 Gallup survey showing consistent trend of improvement
5.0 In-Service Satisfaction Trend Sat 90th percentile: 4.52 4.5 Sat 75th percentile: 4.33 4.16 4.15 Sat 50th percentile: 4.06 4.01 4.0 3.92 Sat 25th percentile: 3.77 3.58
3.5 3.33 3.33
3.20 3.11 Average Survey Score 3.0
2.5
2.0 Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Wave 6 Wave 7 Wave 8 Wave 9 (May 06) (Nov 06) (May 07) (Dec 07) (Jun 08) (Mar 09) (Nov 09) (May 10) (Dec 10)
18 While there are solid indications we are on the right track and improvements have been made, we are implementing a plan to put you first and achieve more – at a faster pace.
19 Priorities and focus areas
Operators Priorities Focus Areas
1 Aircraft Reliability
World-Class 2 Parts Customer Performance Engagement
3 Responsiveness Business
Profitable 4 No Fault Found Growth Parts
5 International Support
20 1 – Aircraft Reliability Scope & Definition of Pioneering RIMP Program
RIMP - Phase 1 RIMP – Phase 2
Description Components that are currently Components that have available, or will become indicated 20 or more available shortly . unscheduled removals yearly. Solutions are still in Designed to bring the older investigation by engineering aircraft up to the level of the and suppliers. newer fleet.
Scope 16 Modifications 50+ Modifications
Launch Date Q1 2010 Q2 2011
Status Will have replaced over 1000 components by end of Q1 2011
21 2 – Parts Performance Bombardier investing over $180M US
Parts inventory “Right parts, Right place” Strategy Rotable parts Expendable parts
$180M US to be in place across network by end of 2011
Frankfurt Will be establishing parts depot in Chicago Beijing Narita Hong Kong by end of Q1 2011 Dubai Hong Kong
Singapore Will also be introducing guarantees around Parts performance by end of São Paulo Q2 2011 Sydney
22 3 - Responsiveness Adding aircraft in Dubai to be filled with parts and occupied by an MRT for quick response within the Middle East and Asia
23 4 – No Fault Found Parts NFF/DOA Guarantees & Commitments
Guarantees 4Dead On Arrivals (DOA), we will pay for shipping and man hours
4FSR and CRC recommendation to change part and doesn’t solve the original failure event, we will pay for shipping and man hours
4Parts “Confirmed Unused” in AOG situation, we will void restock charges
Commitments 4Implement more stringent NFF/DOA criteria to aggressively manage Suspect & Rogue units
4Continue engagement with suppliers to implement NFF / DOA policy
Guarantees will be in place by March 1, 2011
24 5 – International Support Four New Regional Support Offices (RSOs) in the next 12 months
RSORSO RussiaRussia Q3Q3 20112011
RSORSO HongHong KongKong Q1Q1 20112011
RSORSO SingaporeSingapore Q3Q3 20112011
RSORSO SydneySydney RSORSO MumbaiMumbai Q2Q2 20112011 OpenOpen
RSORSO DubaiDubai OpenOpen RSORSO BrazilBrazil Q2Q2 20112011
25 5 – International Support In 2010, we hired 18 Customer Support Professionals
Worldwide: Russia
Kazakhstan Europe China
Middle East Hong Kong India
Nigeria
Brazil
Field Service Representative Customer Services Account Manager Customer Liaison Pilot Regional Support Office Manager Customer Care Worldwide Support
26 5 – International Support In 2011-2012, we will hire 25 Customer Support Professionals 11 CSAMCSAM 11 RSORSO ManagerManager 11 CLPCLP Worldwide: Russia
Kazakhstan 22 FSRFSR 2 AOG Coordinators 24/7 Europe 2 AOG Coordinators 24/7 China 44 TechTech RepsReps 2 FSR Middle East 44 MobileMobile RepairRepair TeamTeam 2 FSR Hong Kong India 1 CSAM 1 CSAM 11 CLPCLP Nigeria 11 CLPCLP
11 CLPCLP 22 MechanicsMechanics Brazil 11 CSAMCSAM Australia
Field Service Representative 11 FSRFSR Customer Services Account Manager Customer Liaison Pilot Regional Support Office Manager Customer Care Worldwide Support Mechanic
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