Corporate presentation

Meloche Group
Corporate Presentation
Agenda
Agenda
1.  Company profile"
2.  Core business"
3.  Meloche’s strategy"
4.  Vertical integration example"
5.  Contact information"
1. Company profile
1. Company profile:
Mission
Provide complex metal components and
assemblies to aerospace and defence OEMs and
Tier-1 suppliers, by constantly optimizing our
integrated services in CNC machining, surface
treatment, painting, assembly and engineering.
1. Company profile:
Vision
Become one of the leading Tier-2
suppliers in the aerospace and
defence industry through constant
innovation and world-class
performance
1. Company profile:
Customers
1. Company profile:
Multi-site business
4 manufacturing plants near Montreal, Quebec, Canada
1. Valleyfield plant #1: 36 000 sq.ft."
CNC Machining, Engineering
2. Valleyfield plant #2: 14 000 sq.ft."
Surface treatment and assembly
3. Valleyfield plant #3: 22 000 sq.ft."
Inventory management and future
expansion
4. Bromont plant: 15 000 sq.ft."
1. Company profile:
Key numbers
1. Company profile:
Quality Certifications
1. Company profile:
Customer Certifications
1. Company profile:
Ownership
Majority
shareholder
8 billion $
equity fund
500 million $
equity fund
1 billion $
equity fund
Meloche family and key
employees
1. Company profile:
Management
Hugue Meloche, Eng.!
President & CEO
Normand Sauvé!
Vice President & CTO
Marc Bigras, Eng.!
Vice President & COO
Martin Thériault, CMA, MBA!
Vice President & CFO
Martin Isabel, Eng.!
Director, Quality Assurance
& Contiuous Improvement
Jacques Labrie!
Director, Sales &
Preproduction
Vincent Meloche, Eng.!
Director, Engineering & R&D
François Pelletier!
Manager, Supply Chain
Jean-François Carlier!
Director, IT & Business
Intelligence
Éric Provencher!
Director, Valleyfield
Operations
Manuel Dubuc!
Director, Bromont
Operations
Anne-Renée Meloche!
Vice President Human Ressources
Average age of
management: 42
1. Company profile:
Corporate governance
4433599 Canada inc.
Board of directors
Family Council
Réjean Meloche, Co-Chairman
Normand Saubé, Co-Chaiman
Hugue Meloche, President & CEO
Vincent Meloche
Anne-Renée Meloche
Éric Provencher
Marc Bigras
Réjean Meloche, Co-Chairman
Pierre Grand’Maison, Co-Chairman
Hugue Meloche, President & CEO
Martin Fournier, Fonds de Solidarité FTQ
Jacques St-Laurent, President & CEO Montréal International
Sylvain Bédard, President & CEO Avianor
Normand Sauvé, director
Réjean Meloche
Hugue Meloche
Anne-Renée Meloche.
Vincent Meloche
Muriel Meloche
Compensation Comittee
Audit Committee
Jacques St-Laurent, President
Pierre Grand’Maison
Sylvain Bédard
Hugue Meloche
Martin Fournier, President
Réjean Meloche
Pierre Grand’Maison
Sylvain Bédard
Hugue Meloche
President & CEO, Meloche Group
2. Core business
2. Core business:
Vertically-integrated machining
2. Core business:
CNC machining
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Over 25 CNC Machining Centers
4 and 5 axis Milling Machines (DMG, Mazak, Mori Seiki, Makino,)
CNC Turning (Mazak, Daewoo)
Inspection equipments: CMM machines (Zeiss, Mitutoyo)
"   Dimensions:
Less than 30 inches
2. Core business:
Special processes
Chromate conversion
Chromic Anodizing
Sulphuric Anodizing
Primer
Top coat
Powder coat
2. Core business:
Engineering
"   Re-engineering
"   Design assistance for cost savings
"   Concurrent engineering on new
programs
2. Core business:
Casting-to-solid expertise
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Customer: Aerospace OEM
Problem: Cost and lead time for castings (lead time up to 45 weeks)
Solution: Meloche re-engineered to manufacture the same parts from solid
Benefits:
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short lead times
6 to 8 weeks
competitive pricing
better mechanical
properties
2. Core business:
Parts family
Aircraft Structural Components:"
- Structural components
- Sub assemblies
Fluid Systems Components:"
- Fuel fittings
- Casting to solid expertise
Aircraft Engine Components"
- Oil nozzles
- Fan blade components
Interiors & Cockpit systems Components"
Ground Systems Components: (Simulator, defence, tooling)
2. Core business:
Aircraft structural components
2. Core business:
Aircraft structural components
2. Core business:
Aircraft mechanical assemblies
2. Core business:
Helicopter structural components
2. Core business:
Fuel systems components
2. Core business:
Aircraft engine oil nozzles
2. Core business:
Bromont center of excellence
Flow-line production
"   Machined slugs used for airfoils manufacturing
" Waspalloy sleeve for variable-pitch airfoils
Machined slugs (inconel,
titanium, A286)
Waspalloy
sleeve
Meloche Bromont facility
2. Core business:
Aircraft interiors components
2. Core business:
Flight simulator components
2. Core business:
Defense assemblies (US Army)
2. Core business:
Defense structural components
3. Meloche’s strategy
3. Meloche’s strategy:
5 strategic drivers
1. 
Invest heavily in technology, to increase productivity
and achieve global competitiveness
2. 
Improve continuously to achieve world-class
performance
3. 
Invest in front office, to have the ability to manage
aggressive internal and external growth: 100M$ in 5
years
4. 
Customer proximity: Open manufacturing plants in
countries where our existing customers are located
5. 
Collaborate in R&D projects with OEM and aerospace
R&D organizations
3. Meloche’s strategy:
Technological vision
3. Meloche’s strategy:
Technology investments
1. Invest heavily in technology for our Canadian
facilities, to increase productivity
- 10M$ investment project
- Implementation scheduled
for end of 2015
Objectives:
- Reduce labor cost
- Increase capacity
3. Meloche’s strategy:
Technology investments
Benefits"
"   NO SETUP TIME (reduces cost and lead times).
"   INVENTORY REDUCTION (small batches ordering doesn’t affect
price)
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Increased capacity
Flexibility
Lights-out operating mode (cost reduction).
Qualified personnel working day-shift on development projects
3. Meloche’s strategy:
Future layout
3. Meloche’s strategy:
Recent investments
Automation-ready!
"
(1)  DMG 5 axis, DMU-80U!
(1) DMG 5 axis, DMU-60U FD
"
"   240 cutting tools
"   « Done-in-one » mill-turn
"   laser assistance
"   probing
"   RFID tool identification
3. Meloche’s strategy:
Recent investments
Mori Seiki NMV3000 5-axis
"   1 M$ investment
"   114 pallet pool (114
setups)
"   240 cutting tools
"   « Done-in-one » mill-turn
3. Meloche’s strategy:
IT integration
Buying machines is easy…
making them communicate
with each other is where
the fun (and value) begins!
Future IT map for automation
Customer
Specification
and standard
Sales
requirement
Dyna
Plannin mic
g modu
le
Standard tool
and fixture
Best practice
guide
PLM / ERP
Delivery
Information management / Production management
Machine
Monitoring
(OEE)
Cutting tool
assembly
Part technical
information
Procedure
Validation &
Non-destructive
test
On-machine
tool validation
(RFID)
Dimensional
Inspection
Manufacturing
Engineering
CAM
Machine
simulation
Probing
Laser tool
measurement
3. Meloche’s strategy:
IT development timeline
2008: Virtual
machining
environment
2010: Laser tool
measurement
2012:
Development and
implementation of
a new ERP/PLM
platform
2014:
Development and
implementation of
a dynamic
planning system
2015:
Implementation of a
Flexible
Manufacturing
System (FMS) at our
Valleyfield plant.
2008 – 2009 – 2010 – 2011 – 2012 – 2013 – 2014 – 2015 – 2016 - ...
2009: Probing
development
2011: On-machine
tool validation
(RFID)
2013: Implementation of new 5axis machines for our parts
family strategy
2015: Implementation of
a machine monitoring
system to measure
Overall Equipment
Effectiveness (OEE)
3. Meloche’s strategy:
Continuous improvement
2. Improve continuously to achieve world-class performance
Web-b
ased
KPI
Manag
ement
3. Meloche’s strategy:
Continuous improvement
Visual management
3. Meloche’s strategy:
Continuous improvement
Customer cell project
Multi-disciplinary Cells dedicated to
customer service:
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Account Manager
NC Programmer
Methods agents
Project manager/Engineering
RESULTS:
1. Team spirit
2. Communication
3. Collaboration
4. Customer knowledge…
= Efficiency
3. Meloche’s strategy:
Continuous improvement
Actual continuous
improvement programs
Future continuous
improvement programs
3. Meloche’s strategy:
Increase revenues
3. Increase our revenues to 100M$
The more our sales grow, the more we can allow
dedicated ressources to:
"
assist our customers in long-term
development programs
"
perform R&D activities
"
identify and perform strategic
acquisitions
3. Meloche’s strategy:
Customer proximity
4. Open manufacturing plants in countries where :
"   our existing customers are
located
"   the supply chain is in
development
"   local government has identified
aerospace as a strategic sector
?
?
?
?
3. Meloche’s strategy:
R&D collaboration
5. Collaborate in R&D projects with OEM and aerospace
R&D organizations
Automation of machining (PUMA project)
Launching partner with P&WC
Closed-door machining
4. Vertical integration
example
4. Vertical integration example:
Aircraft engine oil nozzles
4. Vertical integration example:
Vertically-integrated process
Surface treatment
Pressure test
Inspection
Flow target test
Laser marking
Tumbling
Cleanliness test
Machining
Packaging
4. Vertical integration example:
Benefits
Benefits of parts family strategy
"   Long-term visibity à ability to invest with the optimal
technology
"   Vertical integration à reduced lead time and better cost
control
"   Ability to maximize equipment utilization à lowering cost
"   Supplier becomes expert in the products
"   Ability to assist at engineering phase to lower manufacturing
cost
"   More volume = cost reduction
4. Vertical integration example:
Optimizing machine investments
55
5. Contact information
5. Contact information
Hugue Meloche,
President & CEO
[email protected]
450-371-4646 ext. 104
Marc Bigras,
Vice President &
COO
Jacques Labrie,
Sales & Preproduction
director
Normand Sauvé,
Vice President &
CTO
[email protected]
[email protected]
[email protected]
450-371-4646 ext. 149
450-371-4646 ext. 118
450-371-4646 ext. 155
Thank you!
491 Blvd des Érables,"
Salaberry-de-Valleyfield,"
Québec, Canada J6T 6G3"
T / 450.371.4646 F / 450.371.4957"