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| 112012 ANNUAL REPORT
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 pro-
vides additional opportunity to leverage ACE.
In addition to this reset, we raised the productivity and perfor-
mance 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.
ACE enables us to meet the evolving needs
of our customers while improving overall
company performance. In Monterrey, Mexico,
UTC Climate, Controls & Security has demon-
strated 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.
The Goodrich acquisition
brings tremendous
new capabilities and a
complementary portfolio
of products, including
evacuation slides for aircraft
such as the Airbus A380.