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.  2012 AnnUAL REPORT |  11 The Goodrich acquisition  brings tremendous  new capabilities and a  complementary portfolio  of products, including  evacuation slides for aircraft  such as the Airbus A380. In Monterrey, Mexico, UTC Climate,  Controls & Security uses the ACE  operating system to improve performance and better support  customers. 