Wednesday, February 17

Cessna Parts DistributionCessna Parts Distribution

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Welcome -Welcome -

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Wednesday, February 17

9am and 6 pm (Central Time)

Cessna Customer Services


Cessna Parts DistributionCessna Parts Distribution 2

CessnaCessnaCustomeCustomerrServicesServices

Cessna Cessna CustomeCustomerrServicesServices



Peter WilkinsonPeter WilkinsonPeter WilkinsonPeter WilkinsonVice President, Cessna Parts DistributionVice President, Cessna Parts Distribution




Provide parts support for over 180,000 single, multi, and turboprop aircraft ranging from the Cessna 120 to the Caravan and Conquest

100,000 ft2 distribution facilityIn operation since 1965

One million transactions annually700,000 outbound

300,000 inbound



Daily / Weekly / Monthly KPI trackingDuplicate KPI’s established for 300/350/400 for added focus on service levels

Six Sigma MethodologiesContinuous process review and improvement

25 Six Sigma green belts on-site

Quality ManagementISO 9002 Certified



SystemsCPDXpress – ERP platform

Industry leading order and warranty processing85% of all orders and warranty claims are received through web based transactions

CSInfoCustomer Relationship Management system that provides tracking and monitoring of specific customer issues


Steve HowardSteve HowardSteve HowardSteve HowardManager, Field ServiceManager, Field Service

Cessna Customer ServiceCessna Customer Service



Discussion TopicsAuthorized Cessna Service Facilities

Cessna Field Service


234 Authorized Service Facilities

234 Authorized Service Facilities

Scale Legend

Mile(s)

0 200 400

ILILILILILILILILIL

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73 International Authorized Service Facilities

73 International Authorized Service Facilities

Scale Legend

Mile(s)

0 900 1800 2700

AntarcticaAntarcticaAntarcticaAntarcticaAntarcticaAntarcticaAntarcticaAntarcticaAntarctica

BrazilBrazilBrazilBrazilBrazilBrazilBrazilBrazilBrazil

CanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanada

MaliMaliMaliMaliMaliMaliMaliMaliMali

GreenlandGreenlandGreenlandGreenlandGreenlandGreenlandGreenlandGreenlandGreenland

SudanSudanSudanSudanSudanSudanSudanSudanSudan

LibyaLibyaLibyaLibyaLibyaLibyaLibyaLibyaLibyaAlgeriaAlgeriaAlgeriaAlgeriaAlgeriaAlgeriaAlgeriaAlgeriaAlgeria

IranIranIranIranIranIranIranIranIran

AustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustralia

KazakhstanKazakhstanKazakhstanKazakhstanKazakhstanKazakhstanKazakhstanKazakhstanKazakhstan

ChinaChinaChinaChinaChinaChinaChinaChinaChina


19 Authorized Service Facilities rated for Structural Composite

Repair

19 Authorized Service Facilities rated for Structural Composite

Repair

Scale Legend

Mile(s)

0 200 400

KYKYKYKYKYKYKYKYKYKSKSKSKSKSKSKSKSKS

ILILILILILILILILIL

IDIDIDIDIDIDIDIDID

IAIAIAIAIAIAIAIAIA

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NENENENENENENENENE

NDNDNDNDNDNDNDNDND

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MSMSMSMSMSMSMSMSMS

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SDSDSDSDSDSDSDSDSD

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PAPAPAPAPAPAPAPAPA

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NYNYNYNYNYNYNYNYNY

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You can locate your closest Authorized Service Facility by going to:

www.cessnasupport.com


Cessna Field ServiceCessna Field Service

13 US and Canadian Field Service Engineers with regional coverage

5 International Field Service Engineers


Cessna Field ServiceCessna Field Service

Field Service Engineers are there to support our Authorized Service Facilities in support of you.

If issues cannot be resolved at the Authorized Service Facility level then your Cessna Field Service Engineer is the one to work with you toward a fair resolution.


SummarySummary

Your Local Authorized Service Facility is there to support all you Cessna needs

If your local Authorized Service Facility cannot help you or you need to talk to someone at Cessna contact your Cessna Field Service Engineer or Customer Care @ 316-517-5800.


Whitney PhippsWhitney PhippsWhitney PhippsWhitney PhippsManager, Customer Relations Manager, Customer Relations

CessnaSupport.com CessnaSupport.com


Customer Access areaProvides technical information

Register at: CessnaSupport.com Select Customer Access

CessnaSupport.comCessnaSupport.com


CessnaSupport.comCessnaSupport.comHome page

Preflight News

Contact Information

Customer Feedback Forms

Customer Account Information



Model Specific Maintenance & Pilot Notices

Contact Information

Service Facility Directories

Aircraft Publications



Aircraft PublicationsRevision Status Checklist

Pubs Catalog

Service Bulletins / Service Letters


Mike TharpMike TharpMike TharpMike TharpSales & MarketingSales & Marketing

Sales & MarketingSales & Marketing



Sales / Customer ServiceFirst point of contact

HoursMonday – Friday 6:00 A.M. – 7:00 P.M.

AOG service 24 hours a day, 7 days a week

14 Domestic & Int’l Customer Service RepsResponsible for 35 accounts each on average

Handle over 10,000 calls per month



Sales / Customer ServiceTechnical parts support and order entry

Drawing research and part breakdowns

MarketingCustomer communication

2 full-time Customer Service Representatives visit North American service stations

Promotional ad development and placement

Direct marketing materials via mail, e-mail, fax, WebEx and web based links on CPDXpress



MarketingAnnual conferences

Cessna Service Stations

McCauley

New product developmentBusiness Opportunity Team

Review new products for distribution

Supplier negotiations


Jodie JeckJodie JeckJodie JeckJodie JeckManager, ProcurementManager, Procurement

ProcurementProcurement



Regulatory AdministrationEnsure transactions and processes comply with US International Trade Laws

Clear import shipments

Provide information for export shipments

Audit Import / Export transactions



Database AdministrationNew part number set-up

Part number maintenanceCancel codes

Revisions

Shelf Life

International trade classification



ExpeditingCessna manufactured / purchased spare parts for AOG and back ordered requirements

Provides ETA information

Service BulletinsSet-up, forecast, purchase and expedite parts to meet fleet requirements


Kevin ElliottKevin ElliottKevin ElliottKevin ElliottManager, Inventory ControlManager, Inventory Control

Inventory ControlInventory Control


Forecast and Planning

Service Level

Inventory to Support Customer Requirements

Supply Base



Fill 95.7% of orders with on hand stock91% 300/350/400

Accuracy of the inventory consistently runs 99%

Maintained via cycle count of inventory

Accomplished by counting 300 parts each day



0

1000

2000

3000

4000

5000

6000

7000

8000

88.76% 88.81% 88.96% 89.71% 88.59% 89.91% 87.87% 89.74% 89.62% 89.22% 89.06% 90.06%

J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec

2009

Lines Or der ed

Lines Fi l led

Service LevelService Level



InventoryExtensive full-line aftermarket direct supply source

Distribution Agreements

Product Support Agreements



Troy DeWaldTroy DeWaldTroy DeWaldTroy DeWaldManager, Warehouse OperationsManager, Warehouse Operations

Warehouse OperationsWarehouse Operations



Three Operations:CPD2 Warehouse

Aeroquip Hose Shop

Service Bulletin Kit Build



CPD2 WarehouseProcess 2,000 order lines per day on averageFill 95.7% of orders with on hand stockBar code and RF technology utilizedSame day shipping on all in-stock items

Published Order Entry Cutoff Schedule for all freight methodsExercise contracted rates and service standards for most carriers (i.e.: Latest FedEx pickup outside of Memphis)

Swift Pack, Counter to Counter service Inventory accuracy consistently runs 99.9%

Maintained via cycle count of inventoryAccomplished by counting 300 parts each day


Regulatory ComplianceMany regulatory bodies affect our business

FAA/ OSHA/ DOT/ CFR/ BIS/ ISO…

Compliance is critical, but can slow some processesReceiving

Missing Country-of-Origin information will delay receipt of partsAirworthiness documentation must accompany parts

InspectionShelf-life recertification process affects immediate availability of some partsChanging FAA requirements may affects paradigms in the field

ShippingIncomplete or suspect “ship-to” addresses prohibit movement of partsHazardous Materials requirements may dictate freight method




Aeroquip Hose ShopBuilds all hoses for production and aftermarket (Prop and Jet)

Over 400,000 hoses built in 15 years

Hose cross-reference capabilityResearching current applications on 350/400 aircraft product line.

Many possibilities



Service Bulletin Kit BuildFunction assumed in June 2009

Entire build process is now owned by Customer Services

Over 12,000 kits built since June

Supports Prop and Jet requirements

Parts available at Cessna=Same-day kit build for AOGs


Rebecca WilliamsRebecca WilliamsRebecca WilliamsRebecca WilliamsManager, WarrantyManager, Warranty

WarrantyWarranty


Designed to promote customer satisfaction

Coverage is for any defect in material or workmanship

Authorized Service Facility facilitates claim submittal

Cessna compensates Service Facility to fulfill our warranty obligation

WarrantyWarranty


Authorized Service Facility ensure the customer has smooth warranty transaction

Claims are adjudicated on average of 2.95

Warranty is fully transferable

“Cessna is by far the best at quick turn around time with claims. Cessna surpasses the other manufactures by a mile”. –Woodland Aviation, CA

WarrantyWarranty


Reliability and WarrantyReliability and Warranty

Review reports for trends and occurrences

Reduce the direct operating cost for in and out of warranty aircraft

Non – Conforming parts are put on “High Watch” for evaluation and resolution

Reliability coordinates product improvements


Reliability and WarrantyReliability and Warranty

“Moving Towards Excellence” Cross functional team manages Customer specific issues and may result in field action

Time StudiesTime studies may be requested if R&I is excessive

Helps Cessna understand the Repair


Warranty and the Competition


“Why is Cessna Better than the rest”No smoke & mirrors warranty is Tip to TailSupplier indemnification

Single point of contact through Cessna via authorized Service NetworkCessna will file the claims with the suppliers




Warranty support includesCessna pays claims up frontCessna pays parts, labor and freight for warranty eventsWarranty includes Service Bulletin coverage per the applicable credit program

Current production aircraft come with 3 year McCauley Propeller warranty – Conversion kits are available for purchase

Cessna Parts DistributionCessna Parts Distribution 50Cessna Parts DistributionCessna Parts Distribution

QuestioQuestionsnsQuestionQuestionss

Cessna Parts DistributionCessna Parts Distribution 51Cessna Parts DistributionCessna Parts Distribution

Thank You Thank You

For For ParticipatiParticipatingng

Thank You Thank You

For For ParticipatiParticipatingng

Wednesday, February 17

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