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2012 Annual Report, Financial and Corportate Responsibility Performance
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Accelerate

Productivity

Continuous improvement is in our DNA. In everything we do — from developing new products to finding better ways to serve our customers — we aim for ever higher levels of performance.

At the center of our continuous improvement efforts is our ACE (Achieving Competitive Excellence) operating system. The common tools and language of ACE allow us to leverage our global scale to improve margins and provide better value to our customers. By the end of 2012, we had reached our goal of having 80 percent of our sites achieve the highest operating performance levels of ACE Silver or Gold. The addition of Goodrich to the portfolio resets this number to nearly 70 percent and provides additional opportunity to leverage ACE.

In addition to this reset, we raised the productivity and performance requirements for our own operations as well as for our key suppliers. We anticipate significant improvement in productivity, quality, delivery and overall financial performance as we drive toward our new goals of 80 percent of our sites — and 75 percent of our key supplier spend — at the highest ACE performance levels.

Along with tremendous new capabilities, technologies and leadership talent, Goodrich brought with it a shared commitment to working with customers to drive continuous improvement. Highlighting this approach was the design, development and testing of its evacuation slides for the Airbus A380, which demonstrated that 873 people — the full capacity of the aircraft — could evacuate safely and reliably in 78 seconds, exceeding the 90-second government requirement.

The Goodrich acquisition brings tremendous new capabilities and a complementary portfolio of products, including evacuation slides for aircraft such as the Airbus A380. Photo credit: courtesy Airbus.
A UTC Climate, Controls & Security manufacturing facility in Monterrey, Mexico, was the first facility of its kind to achieve LEED Gold certification for energy and environmental performance.

ACE enables us to meet the evolving needs of our customers while improving overall company performance. In Monterrey, Mexico, UTC Climate, Controls & Security has demonstrated the dramatic improvements ACE can deliver. Since 2009, productivity based on cost per hour has improved 41 percent, on-time delivery has improved to 95 percent, first pass yield has improved to 97 percent, and net inventory turnovers have improved by more than 76 percent. Most important, the facility had no lost workday injuries in 2012.

The company’s heating, ventilation and air-conditioning factory in Monterrey was the world’s first facility of its kind to be certified LEED Gold and the first industrial facility outside the United States to achieve the ranking for an existing facility. LEED, the U.S. Green Building Council’s certification program, sets the standard for the energy and environmental performance of buildings.

In Monterrey, Mexico, UTC Climate, Controls & Security uses the ACE operating system to improve performance and better support customers.