This document provides an agenda and summary for a Rolls-Royce Q2 2009 programme review meeting. The agenda covers programme status, operations, key tasks, core team review, and activity mapping. Key programme issues discussed include new part supply delays from Inchinnan potentially impacting spares sales and engine builds. An investigation is underway into S17 brush seal failures and potential liability. Accurate long-term engine maintenance forecasts are needed as the lack of a MEAROS forecast has led to inaccurate business planning. Overall financial performance for Q2 2009 is discussed along with actions to improve profitability in the second half of the year through increased spares sales and repair work.

1. Rolls-Royce Data Q2 2009
Programme Review Meeting
Michael Davies
June 2009

2. Rolls-Royce Data Q2 2009
Agenda
9.00 - 10.00 Programme overview
Programme status
Operational status
Business review
Commercial review
Spares review
Module 6 supply/provision
CES business review action items

3. Rolls-Royce Data Q2 2009
Agenda
10.00 -11.00 Key task/activity review
WG2 activity
PDS/ISS activity
CC mod programme
Problem Report review

4. Rolls-Royce Data Q2 2009
Agenda
11.00 - 12.00 Core team review
IKRC
NETMA unbilled debt
RCP
Process Excellence
Review Business stats
Risk
EVA & milestones
Objectives

5. Rolls-Royce Data Q2 2009
Activity map
OPB
Working capital
Cashflow
Finance
ISS
PDS
Additional
Contractual
Business Success
Contract
RCP
Red Tops
Milestones
EVA
Objectives
Combustors S/seals
Spares
Programme Delivery
AACC
Other (line 2)
IK capability
Customer Support Plan
Risk
TU strategy
NETMA through
-life support
DECU 2020
Sustainment
Test beds
New business
Strategic
Subgroups
Working groups
CSM
Customers
& partners

6. Rolls-Royce Data Q2 2009
Whole programme Q1
Programme Director: Nick Durham
Approved by: Francis Kearney
Created by: Michael; Davies
EVA
Delivery
6.
Spares Inventory
Spares Schedule
Operations
7.
Milestones
Quality
Quality
5.
Cost Reduction
Cost Reduction
4.
Risks & Opps
Cash
Financial3. PBT
Order IntakeOrder intake2.
RCP
SatisfactionCustomer1.
Engine Inventory
CSI 75.8% (75.8% in AP 2) DA Target 76.1%
Poor adherence to timescale commitments for
resolution of Customer issues.
+£m variance. Expected to be in line with Qfr1 (previous
performance offset AP3 position).
N/A
YTD +£ OPB +£
CPI 0.72; SPI 0.94; SV -£ -£. Comment from PM/ PL to explain
any variance.
0 of 0 budgeted milestones completed.
Yr End This AP Explanation
-£m variance. Profit anticipated to improve in AP4, above current
Qfr1 levels - Saudi spare deliveries (inc HPT blade) and repair
business expected to recover. Affected by changes in ordering
process in AP3
5 Quality Issues open, 1 closed. Significant issues - Spares
Escapes - RB199 S17A brush seals
Arrears £M (£M in AP 2)
£m actuals against a YTD budget of £4.3m

7. Rolls-Royce Data Q2 2009
Programme Issues
Major Issues Potential Financial Impact Actions Being Taken Support Required
1 New part supply from
Inchinnan
Spares sales and potential build stop Being closely managed at
Engineering and
Programme levels.
Inchinnan recovery plan
accepted at last meeting.
Further close
management and
regular updates
2 S17 brush seal seizures Non Conformance liability will be
limited to supply replacement parts.
Investigation underway,
tech review held 27 Feb,
activity identified for root
cause confirmation and
remedial action. RCP
200006931.
Needs managing
with affected
nations progress to
be communicated.
3 No MEAROS forecast Business plan inaccurate, spares
sales forecasts incorrect, P&L off
target.
Identified as RCP activity.
Gate ‘0’ review planned.
Action owners
Commitment
acceptance

8. Rolls-Royce Data Q2 2009
Economic summary