TAKING CHEMICAL MANAGEMENT GLOBAL CMS FORUM SAN FRANCISCO, CA OCTOBER 2006

Transcription

1 TAKING CHEMICAL MANAGEMENT GLOBAL CMS FORUM SAN FRANCISCO, CA OCTOBER 2006

2 AGENDA Introduction to United Technologies Global view of UTC ACE & UT500 Challenges Metrics & Measurement Summary

3 UNITED TECHNOLOGIES Industrial & aerospace systems Aircraft engines, gas turbines & space propulsion systems Helicopters Heating, ventilating, cooling & refrigeration systems Clean power, cooling / heating solutions Elevators, escalators, moving walkways, people movers & horizontal transportation systems Security & fire protection services

4 UTC OVERVIEW 2005 (US $ Revenue: $42.7 Revenue: $9.6 Revenue: $12.5 Revenue: $9.3 Revenue: $7.2 Revenue: $4.2

5 UTC OVERVIEW Products around the world UTC companies help keep the world running Hamilton Sundstrand Control some function of every commercial aircraft Sikorsky Helicopter s rescue people in trouble all around the world Carrier Air Conditioning cools everything from the Sistine Chapel to the Rock and Roll Hall of Fame Otis Elevators will take you to the top of buildings in virtually every major city in the world Pratt & Whitney Engines power over 50% of the worlds commercial aircraft and fly millions of people safely to their destinations UTC Fire and Security products are used to protect people and property throughout the world UTC Power Fuel Cells provide 100% of the Power to the Space Shuttle

6 REVENUE DIVERSIFICATION Fire & Security Hamilton Sundstrand $4.3 $4.2 Sikorsky $9.3 $2.8 $12.5 $9.6 Carrier Asia Pacific Canada Latin America 19% 7% 3% 3% United States 29% Other 39% United States Pratt & Whitney Non-US Military Aerospace 16% Otis 61% Commercial & Industrial 39% Aftermarket Europe OEM Commercial Aerospace 20% 64% 42% 58% 227 Manufacturing and Assembly Sites 2005 $42.7 billion

7 GLOBAL FOOTPRINT UTC F&S P&W 5% 1% Carrier 17% 48% 29% Hamilton UTC F&S 5% Hamilton 18% 35% Europe 65 Operating Sites Otis Otis UK Asia 41 Operating Sites Australia Czech Poland Netherlands 5% 5% 5% Italy 10% Spain 9% 42% 10% India 20% 10% 14% Germany 45% France China 20% 23% 25% P&W Carrier Singapore

8 GLOBAL FOOTPRINT North and South America UTRC PWR UTC F&S Sikorsky 6% 1% 7% Otis Carrier 8% 21% 26% 29% P&W Canada Mexico 9% Brazil 2% 5% 83% Hamilton USA 121 Operating Sites

9 ACHIEVING COMPETITIVE EXCELLENCE ACE Purposes: Delight the customers, employees, and shareholders Optimize the value we create and deliver Key principles: Customer focused Process oriented Data driven decision making

10 ACE IS OUR OPERATING SYSTEM Culture/Philosophy Tools Metrics Competencies Mindset of continuous process improvement Commitment from the entire organization to increase value to our customers and shareholders Provides the means to improve processes, problem solving and decision making Metrics aligned with customer needs and expectations These metrics become an organizations roadmap for improvement Our organization is only as effective as our people; and their competency is instrumental to the cultural advancement of ACE

11 Ops Transformation is our Strategy UTC Operations Operations Transformation: This is Momentum Strategies Results Design for Manufacturing Create & Deliver Customer Value Strategic Sourcing Accelerate Operating Performance Lean Double Inventory Turns Talent Development World-class Talent One Team, One Company, One Voice Unmatched EH&S Performance Safety 1st

12 INFRASTRUCTURE ACE Presidents Council Operations Council Supply Management Council

13 UT500 Launched 2001 Focus on cross process, policy and sourcing Commodity teams Executive Steering Committee Advisory Council for sub-teams Drive cross divisional collaboration Saved $1.5B since 2001

14 UT500 International Expansion

15 CHALLENGES Decentralized operations Cultural differences Supply market infrastructure Regulatory governance (REACH) Plant Size & Logistics Divisional and site ownership

16 MEASURING FOR SUCCESS Divisional ownership & scorecard Div Reps: GGPS: Teams: *Champions : Leaders: Sub-teams: UTPWR Sikorsky Fire & Security Team 1 Dir. Pratt Whitney -Sub Team 1 -Sub Team 2 -Sub Team 3 -Sub Team 4 Supply Mgmt Executive Country(2006/2007) England Czech Republic Germany France Italy Netherlands Poland Spain Australia China India Singapore Executive Council UTC VP Operations Advisory Council Carrier EU250 Pratt Whitney Canada EU250 Research Center EU250 UTC Supply Management Team 2 VP, Sikorsky -Sub Team 1 Line Executive Sub-Team EU250 EU250 EU250 EU250 EU250 Sing100 Sing100 Sing100 Sing101 CAR Executive Teams Team 3 VP Hamilton -Sub Team 1 -Sub Team 2 -Sub Team 3 -Sub Team 4 Finance Executives Hamilton Sundstrand Pratt & Whitney Otis HS HS - Indust Otis PW Team 4 VP Carrier -Sub Team 1 -Sub Team 2 PW - GSP Responsibilities Establish overall savings target and strategic direction Establish specific savings strategies PWR PWC SIK Set divisional savings targets and report divisional savings Coordinate UT500 programs and manage commodities Implement savings strategies and collect savings Team 5 Dir. Pratt & Whitney -Sub Team 1 UTCFS UTC Power UTRC No Activity Project being Reviewed Project Working/Completed Not Applicable

17 RECOGNIZE AND REWARD Continuous improvement becomes contagious when employees feel empowered and engaged and are recognized for their commitment and hard work

18 SUMMARY Growth and opportunity for UTC lies offshore ACE provides strong foundation for C.I. UT500 worldwide brand for leveraging the power of ONE Top down/bottom up accountability and engagement Proper measurement tools Recognize and reward efforts

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