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Investor Presentaiton

Partners MANAGEMENT OF SUPPLY CHAIN |G4-DMA: Environmental evaluation of suppliers, G4-DMA: Evaluation of suppliers in labor practices, G4-DMA: Freedom of association and collective bargaining, G4-DMA: Child labor, G4-DMA: Forced or slave labor, G4-DMA: Evaluation of suppliers in human rights, G4-DMA: Evaluation of suppliers in societal impacts, G4-12| Embraer's supply chain is divided into 1,200 direct suppliers, with which resources are traded for the manufacturing of products, and 3,000 indirect suppliers, who support technical and administrative activities. The relationship with this public is guided by the Code of Ethics and Conduct (see page 18) and goals are established in the Master Sustainability Plan (see page 7). Business partners are subject to risk as- sessments that include monthly monitor- ing of performance indicators, face-to-face audits at contractor companies' plants and the periodic assessment of environmental impact surveys. In addition, all contracts contain clauses regarding human rights and labor as well as environmental laws. This year, no significant negative impacts were identified with regard to labor practic- es in the supply chain. [G4-EN32, G4-EN33, G4-LA14, G4-LA15, G4-HR1, G4-HR4, G4-HR5, G4-HR6, G4-HR10, G4-S09| EVOLUTION OF PDCA IN 2016 $ Increase of 12% for delivery volume and increase of 12.4% for billing. Part numbers number 2014 2016 +10.1% High risk suppliers 2014 2016 -83% Direct employment 2014 2016 -2% On-time deliveries 2014 2016 +7.7% (97.2% of deliveries made on-time) AERONAUTICS CHAIN DEVELOPMENT PROGRAM (PDCA, IN PORTUGUESE) In partnership with the Brazilian Industrial Development Agency (ABDI, in Portuguese), the PDCA seeks to improve all companies involved in the direct supply of industrial processes. The initiative was based on the Excellence Management Model (MEG, in Portuguese) of the National Quality Foun- dation (FNQ, in Portuguese) and promoted significant improvements related to service, costs, quality and waste reduction. EXCELLENCE IN MANAGEMENT PROGRAM (PEG, IN PORTUGUESE) An initiative that aims to enable indirect suppliers to continuously pursue excel- lence, contributing to increased productivity and technical improvement. Companies - selected from risk mapping and cost reduction opportunities - participate in courses on lean management philosophy and receive guidance for kaizen practices (continuous performance improvement). EVOLUTION OF PEG IN 2016 3 classes trained 600 17 projects completed 14 goals defined 231 measures identified 32 hours of training -0-0- 28 More than 640 hours of kaizens Reduction of 169 days and 9 hours of processes Savings of R$12 million 38 TAGENI 1. IDENTIFICATION OF SUPPLIERS 2 THEORETICAL TRAINING 3_ KAIZENS 4 PRESENTATION OF RESULTS 39
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