1. Roadmap to Quality on Time – a Global Performance Improvement Program
Supply Chain Innovations 2016
Tilmann Kloppe
Bombardier Transportation GmbH
Antwerp, 17th of March 2016

2. Roadmap to Quality on Time
Who is Bombardier
What is it all about
Change Success Factor
Achievements
Summary
Q&A

3. BOMBARDIER Overview
Bombardier is the world’s largest manufacturer of both planes and trains, with a worldwide workforce of 74,000* people.
Bombardier is headquartered in Montréal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability World and North America indexes. In the fiscal year ended December 31, 2014, we posted revenues of $20.1 billion USD.
* As at December 31, 2014, including contractual and inactive employees

4. BOMBARDIER Our evolution
Diversification into mass transit market
Learning of new industry
1982 New York metro contract secured strong position in American market
Entry into aerospace through Canadair acquisition
Consolidation of North American mass transit position and reinforcement of presence in Europe
CRJ Series, Global Express, Challenger 300
Tilting train, AGC (Autorail Grande Capacité)
Sale of Recreational products business unit
CRJ NextGen family, Learjet 85, Q400 NextGen, CSeries, Global 7000, Global 8000
Hybrid AGC, ZEFIRO, ECO4
Transportation’s expansion into emerging markets
Aerospace: Short Brothers (UK), Learjet (US), de Havilland (CA)
Transportation: BN (BE), ANF (FR), Deutsche Waggonbau (DE), Concarril (MX), Talbot (DE), Adtranz (DE)
Company start-up
Development of passenger and personal snowmobiles
Vertical integration
Energy crisis provoked market collapse
Strategic Acquisitions
2003-

5. The evolution of mobility Reference projects
Shanghai, China Turnkey metro system
1995
ELECTROSTAR
Electric multiple unit (EMU),
South Africa
Las Vegas, USA
INNOVIA Monorail 200 System
2004
Most extensive automated monorail and transit system experience (4 previously fully automated monorail projects – Tampa, Jacksonville, Newark, Las Vegas).
ACE BiLevel - BiLevel
Double-deck coach,
Altamont, USA
FLEXITY Berlin
Light rail vehicle (LRV),
Berlin, Germany
Marseille tram - FLEXITY Outlook
Tram
Marseille, France

6. Propulsion and Controls Our product platforms
MITRAC 500
MITRAC 1000
MITRAC 3000 c
High power propulsion
Electric & diesel-electric locomotives
Dual-power locomotives
High speed power heads
Low power propulsion
Trams
Streetcars
People movers
Monorail
Medium power propulsion
Metros
Regional trains
Intercity trains
(Very) High Speed Trains

7. Bombardier MITRAC TCMS Configuration with dynamic IP backbone
MITRAC & ORBIFLO are trademarks of Bombardier Inc. or its subsidiaries.

8. PPC Locations 11 Sites around the World in 9 Countries
Approx. 3,200 Employees worldwide
Johannesburg (ZA)
*PPC is also present in Brazil and United Kingdom.
PRIVATE AND CONFIDENTIAL

9. 2014 2013 2012 Roadmap to Quality on time What is it all about
Improve performance and foster quality culture to enhance competitiveness and maximize customer satisfaction
Full Results
Continuous Improvement
Lean Execution with Quality on Time
2012
2013
2014
Roll out
Qualification
Implementation
First Results
Containment and transparency
Concept
Roles and responsibilities

10. Roadmap to Quality on time
Success factors
Success factors

11. BOMBARDIER TRANSPORTATION Propulsion & Controls Management Team
Head of PPC
Human
Resources
Products & Engineering
Operations, Product Introduction & HSE
KA4 (KA APAC/ 3rd Party Sales)
KA2
(KA Central Europe)
Quality
Tilmann Kloppe GSC/NQ
Drives
KA3 (KA Americas & Systems)
KA1 (KA Western Europe)
Finance
Governance
Procurement
Top down approach and support
Cost Optimization

12. Transformation towards the 2020 vision
BOMBARDIER – Our Growth Strategies
Invest in leading mobility solutions
Grow local roots in key markets
Achieve flawless execution every step of the way
BT GLOBAL SUPPLY CHAIN VISION
PPC VISION 2020
Global Supply Chain is the trusted partner to offer standardized solutions guaranteeing outstanding quality, on time delivery and cost effectiveness to all our customers. We make sure that our highly engaged team can work in a safe and world class environment.
“MITRAC inside” is the industry symbol for Quality, Innovation and Performance.
Being the best performer in the Industry we provide highest system value to our customers and we are the first choice for high performing people.
Transformation towards the 2020 vision
EES
feedback tool
A global accessible market share of at least 20%
A double digit profit
A Quality on Time delivery of 100 %
Being the preferred supplier for our customers
Best in class Employee Engagement in the industry
Products and systems with the lowest Life Cycle Cost in the industry
Reduce people safety related incidents to zero
EES
feedback tool
Improved engagement and enablement
Robust design and lean engineering
Optimized and fully integrated industrial strategy
Increased competitiveness for profitable growth
Roadmap to quality on time
One BT / One PPC
Engagement
Emerging markets
Talents for the business
Superior products
Leverage on innovations
Standardization
Cost efficiency
Prototyping and design for Manufacturing
Factory in a box
Simplified project setup
Low cost utilization
Drives stabilization and optimization
Competitive together with the BT Regions
Collaboration as an enabler
Leverage service business in One BT
3rd party growth
Product and system robustness
Defect-free deliveries
Reliability
Lean quality
Continuous improvement
Link to existing strategy

13. Cross functional global team

14. Yearly Face to Face Meetings Cross functional global team

15. Roadmap to Quality on Time (set 2012 for 2014)
Excellent Financial Performance
Customer Satisfaction
Meeting Customer Expectations:
Products
for Projects
Project
Execution
Vehicle Assembly and Delivery
Reliability
Performance
DQA Implemented by 2012
80% coverage of Clean Start (APQP) in order projects
DCU2 fit target of 5000 met by Q3-2013
COMPETE finalized with 3 times reliability impr. 2014
100% finalized design status before serial prod. Q4-2014
LIM-concept replaced by robust system by 2014.
85% V&V coverage of TCMS/ CCON/DRIVES applications
PPC TRD from customers frozen < 3 months after NTP
Gate reviews passed 100% in time in 2014
Supplier NCG < 0.5%
Negative EAC changes < 2%
Inventories < 15% of revenues
Configuration management implemented acc. to BT/PPC milestone plan
Conscious retrofit program not existing by 2014
Escapes < 1 per 100 deliveries from all Sites in every month
NCG < 1% (start up), NCG < 0.5% (series production)
Response and resolution time measured / improved by 50%
Performance IP network installed: 0 defects
V&V of PPC scope and train integration to be improved (as-built doc. 100% available)
100% alignment on reliability growth targets over time and full visibility of status between Customer, Vehicle Div & PPC by 2013
Reach agreed reliability growth, 100% on time
Response and resolution lead time measured and improved by 50%
Improve customer complaints management; 50% less customer complaints A B C D
Highest impact to cut NCC if things done right in the beginning
Advanced Product Quality Planning (incl. Failure Mode Effect Analysis), BOS (plus Q6), DQA , BTIP (Business Process Management) are an integral part of the approach
High NCC if mistakes identified in a late phase

16. Roadmap to Quality on Time Complete Picture of Enablers (Status of phases 12.2013)
A - Products for Projects Magnus Forsen
B - Project Execution Par Bladin
C - Vehicle Assembly Daniel Martinez-Anon
D - Reliability Performance Martin Lux
A1 – Armin Pusch
Improved TCMS Setup with Vehicle Builders
Moved to strategic initiative C!
B1 – Peter Mellberg
Clean Start & Requirements Flow Down
C1 – Stefan Svensson
Enforce NCG Management
D1 – Hans-Rudolf Beetschen
Define Setup & Processes for Joint Reliability Growth Team with Veh. Div & PPC
Ensure full & consistent access to train data
A2- Heinz Flerlage
Increase re-use and Align solutions with VB already in Pre-bid phase
B2 – Bjorn Ivedal, Maximo Perez
Improved Customer Management, Frozen TRDs and Scope/Schedule changes
C2- Reinhard Lengeling
Feedback/Feed-Forward with Customer Sites
D2 – Johan Engstroem
Establish PDCA Issue Resolution Process
Strengthen PPC PI Competencies & Capacity
Strengthen Customer Training
A3 – Martin Lux
DQA Implementation
B3 – Fabian Fuchs, Arndt Wilke
Critical item assessment
C3 – Axel Hauck
Improved Routine Test Concept and Rigorous End- Check
D3 – Jan Nilsson
Strengthen Product/Project FRACAS Processes to ensure right Prioritization & Commitment
Develop Tools & Processes to strengthen
First Line Issue Resolution in Field
A4 – Dietmar Baro
Robust Design
B4 – Par Bladin
Strict Gate Review Process
Planning Alignment
C4 – Martin Bohac
Enhanced Design Validation and Routine Test
D4 – Manuel Campos
Define with Vehicle Div consistent Customer Satisfaction Metrics
A6 – Peter Oom, Gustaf Holming
SW Quality
Improvement
B5 –Gergana
Grivova
Improve Supplier Management
C5 – Robert Ek
Improved Concept for 1st Vehicle Testing
D5 – Udo Sorg
Improved Fault Finding and Problem Resolution Capabilities including FMEA
Apply Lessons Learned across different Applications / Projects REX (return of experience)
A7 – Armin Pusch
IP Network Improvements
B6- Manuel Campos
Customer Complaint Process
C6 – Annette Jansky
Product Specific Customer Training
B7- Jan Nilsson
Global Issue Management
Process
C7 –Fernando Martin
Six Quality Fundamentals (Q6)
B8- Reinhard Lengeling
Configuration Management
APQP Q6 Q6
APQP
APQP
APQP
APQP, Q6
APQP
Initiative Phase:
Concept
Embedded initiatives: APQP, DQA, Q6
Piloting
Deployment
Closure

17. Roadmap to Quality on Time Dashboard
KPI No.
Target
Actual
Status
Trend
Reporting
Comment 1
DQA implemented by 2012
6 DQA staffed n è
monthly DQA Report availiable
Closed

18. Roadmap to Quality on Time Communication is key!

19. Dialogue Picture as one key communication tool
Success factor

20. Customer focus Where Quality starts...
Feedback, Feed Forward & integration with our customers is important to us!
Our Key Account structure ensures a „One voice to the customer“ approach
Customer project team integration (New!)
Customer satisfaction survey
Customer complaint process
Performance Feedback / Feed forward
(Joined) Reliability performance management
Global Issue management process
Just one example for the use of Dialogue Picture

21. Quality on Time Example of cross-site communication
Detailed Design Review Green and on time, for project Queensland (QNGR)
Change Driver: QNGR Project Team
Function: All Related to Enabler Initiative: A3, B1, B3, B4
QoT KPI /Target: Gate reviews done 100% on time
Opportunity
Meet key project milestones in order to deliver on time and with the right quality, avoiding overruns and future retrofit cost.
Achieved:
Detailed Design Review passed on time for Converter, TCB, Systems, Safety and CCON i.e. relevant Top Docs., Part Lists, Assembly Drawings and Test Specs. were released and co-planned with Ops. and System Testing.
Actions Implemented:
Early establishment of cross-site communication channels (Australia/ Sweden/ Vadodara/ Hennigsdorf)
Increased focus and awareness of Critical deliverable Time and Quality dimension
Planning Peer reviews well in advance of the DDR
Implementation of Clean Start
APQP methodology (Critical Item Assessment)
Improved:
Early start of System Test, well ahead of first TS deliveries
Successful cooperation between Engineering, Procurement and Operations focusing on the critical flow from concept to actual physical delivery
Well prepared for Prototyping phase

22. Achievements

23. PPC Performance improvement Ncg Period: April 2012 – December 2014
Non conforming goods (NCG) level moving around 1% (2011 ≈ 4%)
2/3 caused by suppliers
Action plan for achieving 0,5% in 2015 in place

24. NCC development
PPC is reducing Non Conforming Costs. YTD by ≈ 50%

25. PPC Performance improvement: Reliability project History
Project Portfolio performance = Percentage of projects meeting contractual reliability targets

26. Summary Top down approach and support / Adequate Timeline
Set the frame with senior management team
Link to existing strategy
Cross functional team of change agents
Operational targets linked to strategic targets
Identify enablers to achieve targets
Dashboard to follow up targets
Dialogue picture as one key communication tool
Communicate on good examples /achievements