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PPMA Leeds 2014Cindy Penney – Alcoa Power & Propulsion
9th May, 2014
Advancing each generation
Invented Aluminum Aluminum
Applications & Globalization Multi-Material
Solutions
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Wing ribs (plate and extrusions)
Wing tips
Hydraulicvessels
Fuel connectors
Torque rods
Seat frames
Window and door frames
Wheels, brakes and torque tubes
Fuselage to wing connection
Wing box fasteners
Engine pylon structure and fasteners
Wing spars (forgings and plate)
Wing stringers
Wing gear ribs, trunions and support fittings
Upper wing skins
Crown frames
Auxiliary power unit exhaust ducts
Vertical stabilizer fasteners
Fuselage stringers
Fuselage skins
Seat tracks
Landing gear, bay frames
Lower wing skins
Wing flap fasteners
Fan blades
Guide vanes Hot section blades and vanes
Compressor cases
Fuel metering unit
Fan hub and compressor frames
Bearing housings
Alcoa content on Metallic aircraftCurrent
Future
• More than 90% of all aluminum aerospace alloys have been developed by Alcoa
• Every Western Commercial aircraft flying today uses Alcoa fasteners
• Every Western Commercial and military aircraft engine uses Alcoa castings
Alcoa Blue flies from nose to tail on metallic-intensive aircraft
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World leading investment casting plant
600+ employees
$132M in revenue
Sole company location with on-site Ceramic Core, Alloy and Casting Foundry plants
Main products are gas turbines and aerospace airfoils
APP Exeter recently completed a full scale turnaround
APP Exeter Overview
Exeter is APP’s key operation in UK
Source: Alcoa Exeter 2014 Impact Awards Application
Team is proud of its 2-year turnaround
DART rate 85%
Revenue 47%
EBITDA 14 points
DWC 20%
GVS Scores 235%Note: total percentage increase / decrease over 2 years from 2010 to 2012
EBITDA in 2010 was negative.
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In 2010, both employees and community were disengaged with Alcoa
Situation and Response
What we set out to accomplishWhat we set out to accomplish
Increase engagement score to 65% by 2013
Improve employee morale by
− Instilling workforce pride through leadership development
− Focusing on employee wellbeing
Build community engagement through STEM related activities
− Developing a cutting edge program
− Winning recognition for our efforts
Situation
2010
33%23%
32%
20092008
Low morale and negative press resulting from 47% work force reduction
Declining interest in volunteering among employee base
Loss of connection with local community
Source: Alcoa Exeter 2014 Impact Awards Application
Disturbing engagement score trend
GVS scores
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Initiatives launched to build employee pride, improve wellbeing and engage the community
Project Initiatives
Employee Pride CommunityWellbeing
Build a culture of mutual respect
Advance supervisory excellence
Enhance employability of workforce
Grow people’s resilience & ability to deal with change
Launch “Alcoans in Motion”
Partner with health organizations and charities
Rebuild contacts with community stakeholders
Develop programs with local institutions
Provide STEM apprenticeships for local youth
Source: Alcoa Exeter 2014 Impact Awards Application
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Individual Focus
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Feeling Valued
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Building Pride
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Communication Strategy
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Persistence, partnerships and focused approach were key to overcoming obstacles to success
Source: Alcoa Exeter 2014 Impact Awards Application
Obstacles, Approach and Success Factors
Obstacles
Community Indifference
Reputational Risks
Limited Funding
Employee Skepticism
Approach
Maintained consistency in programs
Increased level of exposure
Utilized the community framework survey to jointly identify key themes
Built relationships through employee ambassadors
Focused on STEM related needs of the community
Partnered with charity organizations
Leveraged Alcoa and govt. grants
Success Factors
PersistenceFocus
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PersistencePartnershipFocus
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PersistenceFocus
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Partnershipü
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Project exceeded all of our expectations
Project Results
Increasing engagement scoresIncreasing engagement scores Improved performanceImproved performance
Productivity: up 10% YoY
Over last 2 years:- DART rate: down 85% to 0.16 from 1.06- Employee turnover rates: 5.6% 2%- Absenteeism: down 2%
77
23
20132010
Target: 65
3.35X
Source: Alcoa Exeter 2014 Impact Awards Application
Awards and recognitionAwards and recognition
Alcoa 2014 Impact Award Finalist
CIPD People Management Award 2013 – Overall Winner
Exeter College Engineering Employer of the Year 2012
Employers Engineering Federation 2012 SW Award for Skills
“Health Champion” by the Royal Society for Public Health in 2012
Mindful Employer’ Charter 2012 by the National Health Service Trust
GVS scores
Exceeded best-in-class scores for Wellbeing, Community and Volunteering
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Game Changing HR
Lessons Learned
Build leadership
skills
Build leadership
skills
Focus on clear
objectives
Focus on clear
objectives
Utilise formal programmes, lunch and learn sessions to share best practice and coaching
Develop local
workforce
Develop local
workforce
Source: Alcoa Exeter 2014 Impact Awards Application
Leverage partnershipsLeverage
partnerships
Understand and pursue available grants
Engage them as a thought partner
Identify and invest in talent with potential
Encourage coaching of trainees/ engineers
Unify efforts under common themes, e.g., all community efforts were STEM related