01170 B. BIWAS PROJEB AIRBUS JANUARY, 1988 ii Q O t .1; C3 N C, Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 AIRBUS RNIE~ i. BACKGROUND 2~ OBJECSI\IE 3~ SCOPE 4. CHA1LENGESIALTERNATES 5~ PHASES 6~ SCHEDULES 7. RESOURCES 8. ORGANIZATION 9, FUNDING 10~ SECU~IT( li~ BUESTIONS& ANSWERS 12~ RECOMMENDATIONS 13. NEXT STEPS Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 BACKtROVNI) RJR ANNOUNCEMENT 9.14-87 MA30R BREAKTHROUGH DNELOPMENT SMOKELESS .ADDRESSES SOCIALICONSUHER CONGERNS D~ELOPr~Mf STARTEO: 6 YEARS AGO MAJOR RESWRCE COMMITMENT ~ 5150 MILLION REPORIEO OVER LAST 5 Y~RS IM00 MILLION FAtILITIES (1988) .~125 MILLION E14RKmNt 008[ (19BB) ,50-70 SCIENTISTS ,~JOR EXTERNAL CONTRACTS HIGH SECURI[Y 5 COMIETI~IVE ASSESSMNT AKTICIPAT~O IAUN[III: JUNE- SEPT, 1988 Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 ~ses~iss~ R*S~Reyncids' ElpsrimentalCigelette Tne smoker lights the end, much like a Iradiliooaldgalelle Heat source A carbon heat source just inside the lit end prnduces warm air Flavor capsule tobacco jacket 'fobaeco filter As warm air is sucked through the cigarette, it passes through tobacco, tobacco ex· other flavorings and glycerin to form a smoke that looks and tastes like traditional smoke *~*r·· ~*L·L ·~~*·* 1IIIIA Filter ·**··* r*~? .LZ1, L···· ~~. Smokerea$lesthe :::::: smoker after being ·L·*L cooledinalobacu, O ' ' **' tilter and a regular o ······ ~I~ cigarene 8ler ~.·r· 0\ N Irl Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 PROJECT AIRBUS oeJEcnuE DISCOVER RND DNIIOP A SMOKING PRODUGT WHICH: ALCI ADDRESSES tRmtlL SOCIAL ANO CONSUMER CONCERNS PROVIDES ME CUSTOMER KIM A FLAWIRRIL ID SATISFYING SMOKING MPERIENCE iS NON-INFRINBNG IDIOR PROPRIE[ARY Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 PROOUCS SCOP~ WHAT fS IT1 WHAT A~IRIBUTES? t a Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 WHAt IS Ill IGREENOOf" BAT TEI;HNOLOGY BASED (E~G·~ nlIs DIRECTLY tOMPFIITIVE SOMEMING ELSE ENTIRELY, E~G~I c FAVOR - JED ROSE .PATCH OR PILL RJR PRODUCT LICENSE Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 WHAT ATLRIBUTES~ USE LIKE A CICARmE LOOKS UKE A CICARmE FEELS LIKE A gGARETTE NOR~I USE TIME IICOTINE CONTAINING AEROSOL NO "TAR" NO SIDESTREAM NO EXHALED SMOKE FIRE SAFE SELF-EmNGUISHING EXTINCUfSHABLE SAFE FROM MISUSE EASILY Lff PERCEIVED SAFE 6000 TASTE SATISFYING NO NICOTINE IRRITATION HOT ANNOYING TO NON SEIOKERS QUALIFIES AS A CftARmE NO REGULATORY PROBLEMS CONTAINS TOBACCO ASHLESS NO OISWIO PROBLMS ECONOMIC VIABILITY Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 +IC*~C~ c oh3 ~~~~~~~~~~lr "s· O u) 68 r E I wS~ S 5 5 $I qpCI P1 UC10 01 ~pC)4~ ~ O IYI I M r: ~1w r wP O w E3 Z M P ~I OC1J VI D: 111 I YI I W 4 P1 DIcl E 3 O O O oa~ 2zl; uSkm O e Q Q Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 KEY PRODUCT ELEMENTS HEAT SOURCE HEAT TRANSFER INSULATION COOLING AEROSOL GENERATION TOBACCO NICOTINE FLAVOR MOUTHPIECE ADDITIVES ASSEMBLY DECORATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 Z rl Z O 4 O n r ~ Z ZtM d ~·O OOV 1Jd 5 n~Z vlP ~L1 c~3~ ~Ya 10W OYILI ~Zb ~ 2 yRW ~OL P]~P M ~s~PJ WO Z 90 e w pkpa E ~t p r Zw .i t~tlPI~Z~ n~~PE~ vl ~IV~~cl~ W3~ IP1 PI PIa~o 4 n~~gOWf 35* O~OZ O ~~~00~~r*1 O Z n g ~O, cl~ E id pig 4 Z " PU O yM 3 ~pl WLP a C~e, oup z F II C~PP n~OlPP 50 M O IR O O~PIPI~ ~ag~ PZ~ 001gu1aL OJPI fq =C14P IPPZ;Yei,, 9* U~Olu W u o hw U az o~1~ ,,, qL ou O Z u OP13 o n~P tl v0uln E on rP ~ne~4u CI M U g a~ · Ovl oz~~ o wU nf u aoo u ~ r)~O~ O 4 ~H~P*IP p rUO ~· NPIP~~ Z 8 I I L·I·*I ~pO O ~n4~mt·I ~L**1* C~ I*LL· **·1·1 ~·***L *·*~L LL r 4. 1 O w o r E L·L·L 1oca i e ..·*~ W C1 *L· ··L 4 Z L.·~~L X ·.LLI~ ~1P1 t~ NPIWZ O .*···· g nP1I~ O ,·L·*L cc·r4L P~Ckk L····· ·*·r~* ~~.i*= ·.c·· ~P IO, O O 4 I z ~3 oz p~ h) o p rl 8 U1 O Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 XEY IMPLEMENTATION EIE~E~S MANUFACTURING - EQUIPMENT - SPACE - SPEED - COST _ MATERIAL SUPPLYNENWRS · ~ALIt7( - TRAINING LEGAL · REGULATORY - CERTIFICATION - PATENTS - PRODUCT LIABILITY EW(KE~ING .EWU(ET RESEARCH & POTENTIAl · CONSUMER TESTINGIACEEPfANCE · ADVERTISING I olsTRIeurroN ,Pusuc RELATIONS FINANCE p -~UNDfNG o .IIIP~C[ on pRJm~s~iuRmmmR v~"' ,PAYBACK PERIOD I~ Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 KEY IMPLEMENTATION ELEMMLS ROSE cPRODUCT DEFINI'IION -AEROSO1 GENERATION -SENSORY 'IESTING -BIO1OGICAL 'TESfING -PRODUCT DEVELOPMENT -PRODUCT MEASUROCIENT -FLAVOR -NICOTINE CONfRO1 -MACHINERY DEVELOPMENT -PROCESS DEVELOPMENT I~TERIAl HANDLING -FACTORY LAYOUT -INSTRUMENTA~ION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 l(lv~H~4~S PRODUCT DEFINITION PRODUCT DNELOPMENI PRODUCT ASSU~BLY PATENTS REGULATORY RESOURCES TIMING Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 PROJECT AIRBUS DIMENSIONS BAT-WIDE COORDINATION MUL~I-OISCIPLINED INTERNAL & MTERNAL RESOURCES MULTI-PHASE APPROACH PARALLEL IMPLEMENTATION PATHS Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 pSOJE~ IIIILBUS ~I~CI~LE~I~S i, RESEARCH Identify the technologies, innovations~ aPd resoarcer needed to develop product parslprters and technical oblectivts~ De~elop and produce the cc~ponents ncccssarg ,ma~e l~ilcd pusntities of sllel for analytical and internal sensory tcstb d machinerf dcvecoopcnr definition, 2. DcmoP~E~r DeveloP product Lnd machinerl rO produce mlchioc~ade ptototYPes Of Iniform quality Imd in sufficient quantity to initiate paPI1 sensory tcsfing and laxicologffnllbiolPg;tal test~. 3~ COIIIEPCI~J, DE~n~OPMmf Continac ~hinc~ lpd ~rPdPcr dcrdopmmr to Ipade the product quality and de~oastnre eo~mereW leasibiSitY of the product proposition LDd pBDttflClllfL~ Product is available for utended usltcPtiry. EpgineerfnO drsi8n apccfficorioos for cast market production h"e bean fblited, i, SCBIF·UP Machinery is procured aPd fnstalled, and suppliers qualified to )mCce rest ~~t quantities Df thc product, Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 o E la O C O i: Z Z " o Lg Z 3o 4yL~ ~o O y0 O O *W*Y yyYY O .Oia h rt· N O ClibPDF - v~~fastio.soni 01300 PHASE II PHASE I ONELOPMENI RESEARCH 1PBa APR BASIC RESEARCH PRMKltT PARAMETERS JUN CONTRACTOR ID 3UL AUG SEPT ocr NOll CCMPOHENT RESURM O~t rolwnmrr TECHNOLOGY LPBP JAN FEB MAR APR PROO DEV K4Y InACH OEV 3UH 3UL AUG SEPT OCT NOV DEC 1999 JAN FEB H4R APR M4Y 3UN ".UIITIV\L. RNIM MTB O O O 03 N Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 PROJECT AIRBUS RESOURCES BAT GROUP NOT All SKILLS AVAILABLE INTERNALLY USE OF MT'ERNAL RESOURCES -CONSULTANTS .CONTRACTORS -SUPPIIERS STAFF ADDITIONS MAY BE REQUIRED It h] Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 rx~a~ RESEARCH -NICOTINE CONTROL -TOXICO1OGY ~BIOPHYSICS -AEROSOL CONOUCfOR/CAPSULE HEAf SOURCE ASSEMB1YIENCAPSULAnON OMER SKILLS -MA~ERIA1S SCIENCE -EC~RUSION .fNSIRUME~STATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 EXAMPLES OF EXTERNAL SOURCES BATTELLE INSTITUTE A~ D. LITTLE HAUNl MOIINS FILfRONA U.K. FILTRONA U.S~ CELANESE EASTMAN CONDUX ROCHESTER ~NSfITUTE StANFORO RESEARCH INStITLIIE FLAVOR HOUSES Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 RESOURCE RE(3UIREMENTS ESTIMATED NEEDS -PEOPLE -EXTERNAL C;ONSULTANfS -EXTERNAl CONTR4CtS .D(TERNAL IESTTNG efRAVEl -EBUIPMENT -FACIUTIES -SUPPLIESIMATERIALS ISSUES .PERSONNEL AVAILABILITY .IMPACT ON CURRENT PROGRAMS .CONTRAtTOWSUPPLIER AVAILABI1IN -BUDGET AND FUNDING Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 · NOO 10 oeeoo o n ~o O 0OeQID · m ~P O ~~Y1 m m .. ; m \o n neo la oaoaD O O 'pOa~ols v m * o ~L~N g \P ; ·1N" ie oooeo O h rl tO 0001PO v Hm YI O Pi ~QQ Q el YI ~g clN q a so sa n~n 0~ oeooe D ~z N n 00 mo~m~ rl on rl~N n (O :J 3 ~IPJ m Q 9 omm In gOen~ e n O v P1~ N YIOON~ ylrlrl r* h ~i w ct I a El O Y VI~V1 n w pt 3 L P~ Y~ ~ ? a~ ,,, ,,~r ww mP14 oo~ ~U" 'i a~o 91 iow w ~bW~eH O PIZI X ao~ U O O Q N IV Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01300 CUMULATIVE RESOURCE REQUIREMENTS PHASE I AND PHASE II CUMULATIVE TOTAL nnrnr LIIF IWLIP~L 9188 6 3189 12 10,7 9189 18 I't~9 12189 21 20.8 6190 27 Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01300 RESOURCE REQUIREMENTS PHASE I AND PHASE II IMflLION $Z 1988 1919. J9Pe 0.8 2.2 1.0 CAPITAL 2,5 8,4 5~4 EXPENSE 3.3 11,1 6.4 TOfAL tuMuiAnvr 3j IU.V 20.8 Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 PROJECT AIRBUS ORGANI'LAIION GROUP DIRECTED GROUP STAFFING TECHNICAL LEAD FROM B&W SEPARATE ORGANIZATION DEDICATED STAFF i · REPORTS TO STEERING GROUPS Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01110 BAT STEERING GROUPS LOC~ STEERING GOOlfP (,~ uw, lu~mi~nn~ic, Mnmacl Ua8os PBOJE(IT ~U~I~GEP ps,nnrmodl lulawn~iMc~RS Waamt TOXfCOLOGICAI MANAGER ~E~CEB P~IGEB 9~D~S08 SZ;FF STbff STAEE Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 PBOJEQ AIRBUS ppSgIOT DESQTPTTP~S PBOJEQ MA~AGEB Besponsible for overall muugencnt, Eoo~ination, and direction of the project, Beports propcss and plans to Streriny GroPp. Should be Senior bevel person vith vidC technical badrgrolrrd and excellent paaagement skill. BFSEABCfVPBODOCT ~BGEB gespwsible for product identific~tioP, diacoverg, detcloF~cnf, and testing, ReY f~mctiws reportin~ to thig position viU include research, flaPor, product development, seasorg, analgticsll and Bxteroal o~oltaPtslconrractorslsuppliars involved in these functions, TdXleObO6lesb BDVISOB Brspansible for all espectJ of tcxicologiulJ biological testing, naterisls review, IdditRcJ rePiev, and external consult~ntsleonrr~croralsuWlets involved in these aru~~ MBCBI~EbI~IE106IAEEB~f 18Ji86E8 glsponsible for the discovcIy, dnelaCePt, end implacntsrion of processes, maoPf~eturinb tee~mology, and cpuipmt necesslrf for test marlret production o[ the prodPer, b f~tioP~ rsportb to this position will include heat source, beat tran~ftr, ~e~~piece, component producrion, ~atrrials science, assembly, processing, ~ateri~l handlfns, instt~ntdw, and erternel cons~lt4n:sleoartactors/9Pl~err involved in these areer. PL~T~IF ~IAQB Bespopsible for projcct budget, monitoring, and conttol~ blso responsible for proj,cl plmPing end schedulinS, patent tcchnolo~g, and coordinatian tclRities both locallY and vithin BAT, Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 PROJECT AIRBUS ORGANIZATION ISSUES COORDINATION BE~IIEEN CENTERS SECONDMENTS BUDGEfARY CONfROL II lu Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 PROJECT AIRBUS FUNDING IPROPRIATE RNOING IIRNS ~IMIH THE Ba tROU? HEIO TO BE DEVELOPED AND AGREED~ C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 011'10 PROJECT AIRBUS SECURITY INTERNAL .ISOLATIONIUEfTED ACCESS -SEPARATE FACILITY -OEICE ASSIGNED - STAY ASSIGNED -ISOLATE TECHNICAL SUPPORT TESTING DTTERNAI -NON DISCLOSURE AGREEMENTS .CONTRAI;~AL AGREEMENTS 'O Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01170 (I~ESTI61S i. Lt is rhl impart If no' Ira~inp ~mtil ve lec Yha~ rh, gjl produce looks like? ,Up to 9 months ,Would lot Coomit LtOe eonteft Dollars if the PJP product is a 2, Kru~ is the impact of dli~~ to see successl ,P~obable 18-24 months (or 30·50X of Project life) ,Would cain ),ssuranca That This Is The Way 10 Ge but Lore Timeliness Is PM Waiting? 3. Will the PJB Product be a BUCCUJ1 ~nhovn. PJ1 must thin~ so bamsa of eo~itmenrs thri baPe made. a serious threat longer -Do*s not matter short tCrm but Poses term- probably 1992 and beyond, df it (or its cbi~dteP") is socccllfP1, It COUld seriously erode sales of convePtiwal products, 4. What $e orbar aogiua Ibont thL BJB proCct! le~apuel Goldnm·Mpotgo~erg securities nThf919 the first of ~n~t,c~melPrical d"llDPocn~s 10' cigarettes, resulting ira ,vcrl luge research and dc~clop~cnt effort, that vfll address it maltrs it or not raains to be sew, the s~okcrs ugectations, -Xurr Prue~nn.lltrrel, BurPhso, lambert "Tbis courd have w enormo~ impact on the fpdastrj, This business coaid find ~10-llX mar~ct share. lied Pcynolds' tarry more into the mstkct coaid eiPe it a larle ehuolr of that share, Uni~crsitY Tobacco r,lahillties _Piehard Dalflllrd-~orths~stcrp ~O~e~l) he dlwmsrraed th"t they hac a Product that at least potEptiallY has sobed the 1~ emcet ptobl~," -~apfd ecldman-l, r, Lthchilds l~hi9 is analogoPs to Ieating tbe Itr~ aOe aod cptctinl the nuclear age, It VO~d be n~h~ to assume mt ~hfliP norris iJ not st least as far dong the learning corPe, William V~t~lll~VP ~&P O "rf it satisfies the s~o~erI, etnfn~, it coaid he " bloclrbuliaI C3 of ap its." Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01!70 makl thiJ type product' is it 5~ ilov much would it cost to affordable? 1[S Product and CAPILI, I Yes, Cost probably between Current i. What's our fim(ill upaann sr dlffaL Ikr! nmauIw c~Prm~L~SEE~ISE ~ETJI 0.9 9189 5,1 3199 10~f 91s9 14.4 12169 20,8 6/90 this Ilpending plan! can we Bet by fO' 7. is there an alternative to less? .ptob~blO nor, eIitieal skiUa It~ not available internally apd omrr be obtained txternallg~ contacts will accooPt for ajor Expenses ~ g. Ire all colts Included In these ffiutul ao~ Does not include Tccbnical Supportl Othc' Dcpatt~enta Sc"l~UP E~ufpmLltlSplce for Erp~ndeGpanuflerntII legal Fees, and MaTfietiDglj~LdOCIriSiPg. to ~eeo~plish de sane thfngt 9~ ~e rbere IlterPatiPe means ~ybl. Will b, c~lul'ld in fits: (~oncb~ ol)rp]e~. 10. L "Cnmdot" an "ielrnuti'e? but Greendot will not bo~ They are parallel DncloPmcpts address all the issues, II. can vc~ecelents the schedule? -DOP't ~pOV, bnt anlikrry· 12. Will UI pnjeet ~pler current prol"! both pro]ece llmalement and prefect teas will draw hcatil]r on current staff, 13. is there a "middle Ironnd"t -PcJ~ Bagin Phase II Coa~ir nnpoYLt end fUndll for 6-e POPtbl D[ .rl. Pnla gaibilWI potLPZi"l' and cost at that Lime (vhieh will also coincide with aTP'J iprroduetion)~ Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01300 TECHNICAL -INITIATE PHASE I BY APRIL I -SORT OL~ ALTERNATIVES .IDENTIFY EXTERNAL RESOURCES ORGANI24lfON .STEERING GROUPS FORMED -PHASE I PERSONNEL IOENTIFIR] -LOCATE IN LOUISVILIE FUNDING SORT OUT FONDING ISSUES .tOMHIT TO SIX MONTHS: $i MILLION :PREPARE NEXT COMMITMENT: 55 MILLION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01300 NEXT STEPS 1. AGREED POSITION OF RPG 2. INFORM OWN MANAGWENT -TT,MING -COSTSIFUND~NG i JAN -PEOPLE (SKILIS ANO IMPACTS) 3~ FINALIZE I;AC POSITIONS 4. AGREEMENT 10 PROCEED FEB 5, IDENTITY AND ASSIGN CORE STAFF MAR 6. INITIATE P~SE I APR Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 G Q U1 C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 O O Q N 0\ C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 01300 B~ BSNBS RJR SMOKELESS PROOUCI RNIFVI JANUARY, 1988 Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01300 RJR SMOKELESS PRODUtT BACKGROUND TIMING PRODUCT -D'IAGRb~ .AT~RIBUTES .IESIING COMMITMENTS REGULA'IORY C1EP~ANCE PATENTS Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01300 RJR SMOKELESS PROJEM BACKGROUNL) PROJECT "ALPHA"/PROJEGT "BIACK HOLE" "tWLD WE HAKE A 'PERFECT' CIGARE~" ~Har Ar~RIBUTES'I -MULTI-DISCIPLINEO APPROACH RESPOHD TO SMOKER'S pERCiPTIONS ANO DESIRES (S6H. CONTROWISY, SOCIAL AtCEPTABILITY) CPAMPIONED BY 6, LONG HIGH SECURITY CDMPm~VE ASSESSMEKT Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 01300 RP P~OUCT nme ~Bm L 6 rE~S I~ P~E~S .FIL~ WM I& 1U 8& EPT 87 .PIO~ oms Is ~p is as F~iOR1 II~1S SlaRTm · 2 1~8 P ~MUIE~ SE~ 87 pUIB #~B~ FOP IP I n~p~ WIEH nlE - tE~ Bt ClibPDF - v~~fastio.soni 01170 ~E~ss~aOJ~·! R,J. Reynalds' Experimental Cigarette The smoker lights the end, much T~e a tradili~naldgacetl~ Heat source A carbon heat source inside the lit end broduces warm~ flavor capde Taba#ojlaekct fobaeco f~te~ As warm air is Jud(ed through the cigarette, passes through tobacco, tobacco ex· tract, other aavMin9s and giycerin to fwm a smoke that looks and like tradifional smdke ~LI~* .··*·L *~*,L l~~l~L*L~ I Filter ·r**~· *L ·*Z*L ···LL ~~~.~. Smoke~eacneslhe ,mokerallerbeing :::::: rodedinaaobacco O *··**· ~.'·"~ filler and a regubr O c ·L· dgaretle tilter ··*ir O\ [u Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111