SENSING AND PRODUCTIVITY SOLUTIONS Thanks for the introduction Jan Harmstorf SENSING AND PRODUCTIVITY SOLUTIONS October 2015 Paperless Maintenance with Voice-Directed Inspections

How to improve quality and compliance? 2 Recently in the news… Engine operations training: too casual? The aircraft maintenance (…) sector likes to congratulate itself on its professionalism, pointing to commercial aviation’s impressive safety record as proof of a job well done. Yet ask five line mechanics for anecdotes about their work and one will probably reveal not everything is done by the book. (…) Investigators blamed the accident on a deviation from manufacturer-approved procedures – a failure still all too common (…). How to improve quality and compliance? In preparation of my presentation I recently recieved an articel headlined with: Engine operations training: too casual? (see central paragraph) In my presentation I want to give you an overview about HON Aerospace‘s user experience how to drive towards paperless in accordance with current regulations. Source: MRO Network News 21th September 2015

Honeywell Corporate Profile CORPORATE OVERVIEW $40.3B in Sales* $3.9B in Free-Cash-Flow* 55% Sales outside U.S.* $5.56 Earnings Per Share* Aerospace Automation and Control Solutions Performance Materials and Technologies 1,300 Sites, 70 Countries 127,000 Employees 22,000 technologists worldwide 37,000 patents granted/pending Fortune 100 Leader in revolutionary aerospace technology: 1914: First autopilot flight controller 1954: First commercial weather radar system 1975: First business jet turbofan engine Industry Leader in: Home comfort and security Building control systems Smart Grid/demand response technology Sensing and productivity solutions Fire alarm systems and gas detection Personal protective equipment Honeywell’s Technology is producing more than: 60% of the world’s gasoline 67% of the world’s paraxylene 85% of the world’s biodegradable detergents Brief overview about HONEYWELL – A highly diversified, technology driven industrial company With approximately 127,000 employees worldwide HONEYWELL has a focus on performance, quality, value and technology. With around $40B in sales Honeywell ranks among the top performing stocks on the S&P 500. 3 Business Units: Aerospace, ACS and PMT To explain 2 actors: HON Aerospace – most of you already know that Honeywell Aerospace innovates and integrates thousands of products and services specially for the aviation industry Less well known is Honeywell Sensing and Productivity Solutions – a product line within ACS with more than 8000 employees including myself. It is a global leader providing on the one hand sensors, switches and controls, and on the other hand productivity solutions built around data collection hardware like scanners, RFID, Global tracking and - due to the recent acquisition of the company INTERMEC and its subsidiary Vocollect in 2014 - also voice solutions. *- FY 2014 Highly Diversified, Technology Driven Industrial Company

MRO - Paperwork & Documentation 4 MRO - Paperwork & Documentation CURRENTLY USED DOCUMENTATION METHODS Time consuming documentation processes Service deficiency risk due to false entries made manually or due to double data entries Occurrences of non-compliance (e.g. antiquated processes) Limited real time data Document storage (difficult to trace for audit purpose) Let‘s have a look at MRO shops where typically one mechanic or a team pick up a clipboard and go through inspection items one by one, checking off the item and writing down applicable information such as serial numbers, component condition and other observations by using pen and paper. After this is done, all of this data has to be rekeyed into a resource planning system. You all will agree, that this is a time consuming and unproductive process. Furthermore there are service deficienci risks due to false data entries made manually or due to rekeyed double data entries and Remember the article: ‚not everything is done by the book’ - Often non-compliance procedures occur (antiquated processes) In addition paperwork means limited real time data in your host system. At least the storage of documents is a known challenge for many years... Different mobile technologies available: e.g. ruggedized Toughbooks or Handhelds in order to meat the goal of paperless maintenance. No one will deny that these devices improve the process in terms of mobility, but wide user experience show, that these devices are suboptimal in terms of practical handling. Consider oily and greasy fingers, still manual keying of data and loss of devices due to ‘consumer’s own needs’. Approx. 2 Years ago Honeywell Aerospace benchmarked their processes against different technologies. Finally HON decided to implement a voice-guided system from Vocollect (i.e. before the acquision of INTERMEC/Vocollect was carried out).

Voice-Directed Inspections at honeywell 5 Voice-Directed Inspections at honeywell Standardized paperless processes compliant with regulations and manuals! Basics: Traditional RF wireless technology for real time data capturing Hands-free and paperless documentation while performing the inspection Improvements: Productivity: Reduces maintenance costs Accuracy: step by step process guidance Real time performance: Immediate ordering of parts and repair order creation Engineer‘s satisfaction: ease of use Reduces training time for new hires Voice directed inspection solution Voice-guided systems are a traditional wireless technology for data capturing and real time documentation //purpose-designed for noisy, industrial environments (maybe you know PICK-BY-VOICE, already 1-2 Mio user in global logistics!). A hands-free, eyes-free data capturing process = alternative to paper, labels or Handheld scanning that eliminates documentation time. The user wears headphones and a mobile device (connected via Bluetooth). He receives orders from the local host system and performs accurate step-by-step voice guided tasks i.e. he collects data using voice prompts and voice responses during the inspection at the same time. MOVIE Improvements for Honeywell: Productivity: >30% reduction in data entry cycle time  Inspect more Accuracy: The engineers are guided through the whole process. No way to forget a single step! In addition the engineers are focused on their job i.e. less errors. Real time data: all voice-captured data is immediately available and usable (e.g. ordering of parts or repair order creation). In addition time stamped metrics provide detailed insights into process performance. Job satisfaction - the engineers are happy to spend less time with paperwork FINALLY: option to create standardized voice process templates for you company – compliant with regulations and manuals! Source: Honeywell Aerospace, Sky Harbor Facility, Phoenix, US

Voice-Directed Inspections at honeywell 6 Voice-Directed Inspections at honeywell Suitable for Engine Overhaul, Component MRO, Heavy Maintenance or Line Maintenance Processes e.g. Engines & Components Receiving Induction Teardown Wash Analytical Materials/Kitting Repair & Test Final Assembly Final Out Need to work hands-free/eyes free? Structured business processes? Structured data input/output? Importance of accuracy & compliance? According to Honeywell‘s user experience - voice-directed solutions are basically suitable for most of all inspection processes in heavy or line maintenance as well as for engine overhaul and component MRO. Here is a varitiy of different processes where voice is a good fit: (...) The main questions „if voice is a good fit“ are amongst others: Is there a need to work hands-free/eyes free? Do you have structured business processes and structured data input/output? Is there an importance of accuracy & compliance? Source: Honeywell Aerospace, Sky Harbor Facility, Phoenix, US

Pioneers of voice-directed inspections Honeywell Aerospace Lufthansa Technik 1st site: Sky Harbor Facility, Phoenix, US Site went live in June 2014 All engine lines (APU, MROC, Propulsion) Current roll-out in Raunheim (Germany), Greer (US) and Singapore “Using voice ensures every tech follows the same process. It just makes my life easier” (Andrew Newingham, Honeywell APU Mechanic) 1st site: Hamburg Facility, Germany Site went live in May 2015 APU Shop WT54 Case study and reference movie is now avaliable! “Service quality, compliance with standards, productivity, working conditions and employee satisfaction have all increased substantially” (Ole Gosau, Head of APU Shop WT54) Honeywell: HON Aero recently defined voice-guided process templates for most of their APU inspection processes. to deploy voice into several sites all over the world – that ensures a high level of quality! The solution is not dedicated just for internal use. We are happy to announce that Lufthansa Technik is the first user in Europe who has implemented the solution at their APU shop in Hamburg as well. The case study and a movie about the project is now avaliable. See the quote – it proofs the usability of a voice-guided inspection! Many thanks for your attention and I hope to see you outside the conference room for further discussion !

8 Booth # 742 jan.harmstorf@honeywell.com