Role of Robotics as a Business Strategy in the Aerospace Industry How robotics can positively impact the economics of large manufacturers Curtis A. Richardson Associate Technical Fellow - Automation Spirit AeroSystems, Inc. Agenda • Background • Spirit AeroSystems Corporate Overview • Case for Robotics in Aerospace • Automation at Spirit AeroSystems • Bringing the Vision Together Wichita: Air Capital of the World • Aviation manufacturing accounts for 56% of all Wichita manufacturing jobs, with annual payrolls totaling more than $2.2B and average earnings per job topping $71,200 • >25,000 employees at six OEM / Tier 1s + >14,000 at 300+ supporting aviation suppliers • Wichita manufacturers include general aviation / biz jet, commercial, and military segments • 2010 deliveries worldwide: 2,015 general aviation (GA: piston, turboprop and jet); 1000+ commercial jets During 2010 – Wichita companies delivered 58% of all GA aircraft built in the United States, and accounted for 39% of global GA deliveries. Wichita firms delivered 776 GA aircraft in 2010. Spirit supplied significant content to more than 60% of the world’s commercial aircraft >70% of the world’s fleet was manufactured in Kansas ~5,000 employees ~10,000+ employees ~5,500 employees ~2,200 employees ~350+ employees ~2,400 employees SCS00-00014-002 Revised 3-20-2011 SPIRIT History • The Wichita site has been in operation for more than 80 years, beginning as the headquarters for 8 Aircraft Company (est. 1927) which Boeing acquired in 1929. • More than 10,000 Stearman Kaydet Trainers were built between 1934 and 1945. During WWII Wichita built 1,644 B-29s (41% of the total B-29 production), and the site produced 467 B-52s and 1,390 B-47s in the 1950s and 1960s. • Commercial aviation work began at the Wichita site in the 1960s beginning with components for the 707 and 727 models, and soon the plant soon was producing 75% of the 737 as well. • In 1990 the site was split into two entities, one for military work and one for commercial work. Manufacturing at the site supported every current model of Boeing commercial jetliner. • Between 1929 and 2005, the Wichita site provided more than 8,000 component units (fuselage, struts, and nacelles) for Boeing commercial aircraft; modified nearly 5,000 aircraft (both commercial and military including Air Force One); and built more than 15,000 aircraft. • In 2005, the Onex Corp. financed the divestiture of the Wichita Division of Boeing Commercial Airplanes from Boeing, creating Spirit AeroSystems, now a publicly traded company on the NYSE. • Spirit's work statement as a key supplier to Boeing Commercial Airplanes has continued to grow. Additionally, Spirit has expanded its OEM customer base to include companies such as Airbus, Bombardier, Northrop Grumman, Gulfstream, Hawker Beechcraft, Mitsubishi, and Sikorsky. SCS09-00014-002 SPIRIT WORLDWIDE OPERATIONS PRESTWICK WICHITA MOSCOW (JV) ST. NAZAIRE KINSTON TULSA MCALESTER JINJIANG (JV) SUBANG ~ 15,000 EMPLOYEES ~ $4.2B REVENUE (2010) ~ 15.3M ft² SPIRIT’S GLOBAL FOOTPRINT CONTINUES TO EXPAND BOEING 737 747 767 777 787 AIRBUS A320 A380 A350XWB BUSINESS & REGIONAL JETS Gulfstream G250 Mitsubishi MRJ Gulfstream G650 Bombardier CSeries MILITARY P-8A, P-8I (ITAR Controlled Modifications) Sikorsky CH-53K KC-46A Tanker TECHNOLOGY DEVELOPMENT • Propulsion Technology • Advanced Composites Technology • Metals Technology • Non-Destructive Inspection/Evaluation • Automation • Acoustic Attenuation • Advanced Design & Analysis AUTOMATED FIBER PLACEMENT LAB INTEGRATED COMPOSITE STRUCTURES METALLIC & COMPOSITE STRUCTURES TECHNOLOGY VARIABLE AREA FAN NOZZLE FUSELAGE SYSTEMS & STRUCTURES Design and Build • BOEING 777 • BOEING 737 • BOEING 787 - P-8A, P-8I • AIRBUS A350XWB • BOEING 747 • BOEING 767 - KC-46A Tanker BOEING 777 ASSEMBLY FUSELAGE BOEING 737 FUSELAGE INTEGRATED VALUE CHAIN ALLOWS FOR EFFICIENT DESIGN/BUILD COMPOSITES AIRBUS A350XWB COMPOSITE CONTOURED ONE-PIECE BARREL FOR BOEING 787 LIGHTWEIGHT, HIGH-STRENGTH COMPOSITE STRUCTURES PROPULSION SYSTEMS & STRUCTURES Nacelle Products • Thrust reversers • Fan cowls • Inlets • Systems Pylon Products • Fairings • Secondary structures • Systems SUPERIOR PRODUCTS FOR COMMERCIAL, BUSINESS, AND REGIONAL JETS AEROSTRUCTURES Oklahoma Operations • Composite and metallic wing components BOEING 747-8 INBOARD FIXED LEADING EDGE - BOEING 737, 747, 777, 787 • Test phase - GULFSTREAM G250, G650 • Control surfaces and floor beams - BOEING 777 European Operations • Large wing structures - BOEING 767 & 777, AIRBUS A320 & A380 Malaysia Operations • AIRBUS A320 composite wing component subassemblies • Design work for AIRBUS A350XWB leading edge lower panels North Carolina Operations • AIRBUS A350XWB structures BOEING 737 FLAP ASSEMBLY AIRBUS A380 LEADING EDGE DESIGN / BUILD LARGE STRUCTURES St. Nazaire • AIRBUS A350XWB composite center fuselage panel assembly MILITARY – ROTORCRAFT & FIXED WING AIRCRAFT Sikorsky CH-53K • Entry into rotorcraft business • Design, development, test activities, fabrication & assembly • Composite cabin and cockpit • Composite expertise providing advancements in operational capability & reliability within defense industry P-8A & P-8I KC-46A Tanker • Entire fuselage production • Inline provisions on commercial line • Forward fuselage section, strut, inlet, fan cowl, core cowl, fixed fan duct, fixed leading edge E-3 AWACS Radomes • Large composite structure • Precision processes TRANSLATING COMMERCIAL EFFICIENCIES TO MILITARY PRODUCTION Case for Robotics in Aerospace • Civilian aircraft topped 2008 US exports at ~$75B (ahead of semi-conductors & passenger cars*) • Aerospace manufacturers in the U.S. employ >500,000 workers** • Most aero companies are parts suppliers employing fewer than 100 workers; Large companies (>1000 employees) supply >60% of aero manufacturing jobs** • Aero jobs clustered throughout U.S.; large concentrations in WA, CA, TX, KS, CT, AZ totaling 60% of the aero workforce; smaller clusters in FL, GA, OH, MO, and AL*** Wichita, Air Capital of the World, is home to more aviation jobs per capita than any location throughout the globe • Hallmark of aero mfg: highly skilled workers executing complex & specialized processes $79,700 average aero mfg wage: ~47% greater than average mfg wage of $54,400*** Shrinking skilled workforce pool: aging workforce (attrition), fewer workers entering industry Skilled labor development investment: $50M National Center for Aviation Training (Wichita) * Data from www.worldsrichestcountries.com; passenger car exports valued at ~$50B with another ~$40B of automotive accessories listed separately ** U.S. Bureau of Labor Statistics 2008 data *** U.S. Aerospace Manufacturing: Industry Overview and Prospects (Michaela D. Platzer, Dec 2009) NOTE: Additional data given in Obama Speech Revives BizJet PR Battle Case for Robotics in Aerospace • Because manual processes still dominate aero manufacturing… Trad. cost reduction measures include low-cost labor markets often leading to: Extensive/expensive supply-chain management, shipping risks Quality management challenges Loss of process control including expedite capability Irrevocable erosion of intellectual property, mfg know-how Lost cost reduction opportunities; design for manufacturing fades The U.S. Solution: Robotic automation as an alternative to outsourcing but requires expertise, capex Robotics experience found mostly at OEM/Tier 1 level Resources to support development efforts Relatively large capex investment Case for Robotics in Aerospace • Aerospace Robot Opportunities: Narrow-body/single-aisle aircraft >8,400 Boeing 737 family aircraft sold since 1968 (>5,000 since 1995) with >6,800 mfg to date; >3,000 Airbus A320 family aircraft sold since 1984 Both 737 and A320 produced at a rate near 40 per month; both considering replacements by 2020 to mid-2020s timeframe Narrow body market value estimated at $1.7T (>21,000 aircraft) over next 20 years* Bombardier C-Series (Canada), Embraer E-190/195 (Brazil), Comac C919 (China), Irkut MS-21 (Russia) are major potential contenders in 90 - 220 seat aircraft market • Narrow-body aircraft manufacturing method 350,000+ parts assembled using 600,000+ rivets Extensive monument automation investment; Automation capex exceeds $200M per program Next-gen aircraft aluminum vs. composites debate Robotics facilitate scalable solutions in terms of process, product size, and production rate * Future of Narrow Body Airplane Market Automation at Spirit Establishing internal automation strategy, infrastructure • Transforming our manufacturing process Additional need to increase productivity, flexibility: Military: shrink time to production & program costs Commercial: new programs, rising production rates Optimize mix of manufacturing processes Consideration of non- & recurring costs Boeing - Wichita robot installs before 2006: 6 Spirit robot installs since 2006: 24+ • Transforming our workforce Develop internal expertise to facilitate automation discussions Develop guidelines, standards for automation deployment Develop skills for programming, operating, maintaining Implement control, data network architectures (IT) Design for Automated Manufacturing (DFAM) Automation at Spirit Establishing internal automation strategy, infrastructure • Vision: Develop & deploy robotics where critical factors include… Safety, ergonomic, environmental issues Cost-effective production capacity scalability Minimal lead times for responsiveness Complementing skilled workforce to smooth cyclical industry employment trends • Collaborate throughout supply chains & value streams Facilitated ad hoc partnering between end users, equipment suppliers, researchers (e.g. Advanced Manufacturing Partnership, SBIR, etc.) Professional society synergy (e.g. SME/SAE Aerospace Automation Consortium) Industry-specific, location-targeted stakeholder collaborations (e.g. Automation Alley, Great Plains Robotics Alliance) Bringing the Vision Together • Great Plains Robotics Alliance: Total Stakeholder Involvement To promote and support sustainable growth and industry expansion through robotics technologies by facilitating and coordinating informational resources, research, education, and training. Aerospace cluster manufacturers Non-aerospace manufacturers National Center for Aviation Training Wichita Area Technical College Wichita State U. College of Engineering National Institute for Aviation Research • Involving, investing at all levels K-12 education/educators Post-secondary of all varieties Applied research & application development Feedback to automation supply base Multi-level government, economic development cooperation Contact Information Curtis A. Richardson www.spiritaero.com Associate Technical Fellow – Automation Automation Technology Research & Development Spirit AeroSystems, Inc. 3801 S. Oliver M/S K68-24 Wichita, KS 67278-0008 (316) 526-6500 curtis.a.richardson@spiritaero.com