An Overview International Aerospace Quality Group General Assembly – Melbourne 18 April 2007

1. An OverviewInternational Aerospace Quality GroupGeneral Assembly – Melbourne 18 April 2007 Bill Black IAQG President EADS

2. A Global Approach • Over 50 major aerospace companies across three global sectors • Driving improvement through fewer, simpler standards and practical support for implementation • Initiatives driven with constancy of purpose • Co-operation, consultation and communication with: • partners and suppliers • regulatory authorities • customers ….. across all sectors of business A Global challenge requires Global solutions

3. A Global Team International Aerospace Quality Group IAQG Council General Assembly Forums AAQG (Americas) (19 members) APAQG (Asia & Pacific) (11 members) EAQG (Europe) (29 members) Whose purpose is: Implement initiatives that make significant improvements in Quality and reductions in cost throughout the value stream by establishing and maintaining dynamic cooperation, based on trust, between international aerospace companies

4. IAQG Membership • Americas • The Boeing Company • Bombardier • Eaton Aerospace • Embraer • GE Transportation • Goodrich Corporation • Gulfstream • Honeywell Aerospace • Lockheed Martin • Northrop Grumman • Orbital • Parker Aerospace • Raytheon • Rockwell Collins • Rolls-Royce • Spirit Aerosystems • Textron • United Technologies Corp. • Vought • PRI * • SAE * • Europe • Airbus • ALENIA • Avio • BAE Systems • Dassault Aviation • EADS • EADS – CASA • EADS Military • Eurocopter • Hegan • Hispano-Suiza • Israel Aircraft Industries • Liebherr • Messier-Bugatti • Messier-Dowty • MTU Aero engine • PFW • Rolls-Royce • SAAB Aerospace • SAFRAN • Smiths Aerospace • Stork Fokker Aerostructures • Asia • AIDC (Aerospace Industrial • Development Corp) • AVIC 1 • AVIC 2 • Fuji Heavy Industries • Hawker de Havilland • Indonesian Aerospace • IHI • Kawasaki Heavy Ind • Korea Aerospace Ind • Korean Air Aerospace • Mitsubishi Heavy Ind • SJAC * • Europe – Continued • Sonaca • Sukhoi • Thales • Turbomeca • Volvo – Aero • Westland • Zodiac • ASD * / ASD-EASE * *: Sponsor

5. EADS membershipin IAQG • Daniel ALBIER –Sogerma • Mariano ALONSO-ROMERO – MTAD (Voting Member) • Roland BACHER – Airbus • Bernard VEYSSIERE – CQO • Bill BLACK – CQO (IAQG Chairman) • Jean-Louis BOUNIE – Airbus • Cristobal CASADO-SALINAS – MTAD • Guy CURCIO – Eurocopter • Siegfried HAUG – Airbus • Bernard LAURAS –Airbus • Françoise LEBADEZET – CTO • Yves LORELLA – CQO • Didier LUX – Airbus (Voting Member) • John MONKS – Airbus • Marie-Laurence PETIT – Airbus • Hans-Georg SCHRADER – Airbus (Voting Member) • Hans-Rainer ZIEMER - MAS

6. Focused on Improvement • Senior industry executive participation makes the process credible and actionable • International cooperation driving deliverables that can be implemented globally • A real opportunity to improve the supply chain: • Safety and quality improvement • Waste and cost reduction • Consistency and clarity of approach, requirements and documentation • Reduction of multiple oversight

7. Setting New Standards • 9100 – Aerospace Quality Management System Standard … the cornerstone of our initial focus • Defines “what” – not “how” • Published jointly in Europe, Americas & Asia-Pacific • Reduces variation across the supply chain • Complementary standards for • Maintenance and Repair Stations – 9110 • Distributors/Stockists – 9120 Quality System Standards – based on ISO 9001-2000

8. Auditing & Measuring • Checklists for auditors - 9101, - 9111, - 9121 • Industry Controlled Other-Party (ICOP) oversight program for consistent implementation – 9104 trilogy • Registrars • Auditors • Training • Shared access to Qualification status through OASIS web hosted database • 6338 Supplier sites & 649 auditors worldwide, ~ 750 hits per hour on OASIS Improving quality performance and reducing costs

9. Safety & Integrity Requirements to directly raise product integrity • First Article Inspection – 9102 • Variation Management of Key Characteristics – 9103 • Non-conformance Management – 9131 • Data Matrix Quality Requirements for Parts Marking – 9132 • Harmonized NDT Personnel Qualification – NAS410 • Global Supplier Risk Management – 9134 • Operator Self Verification – 9162 • Other work in progress – software, direct shipment & delivery, operator self verification, sampling plans… Where quality and safety are concerned there is no competitive advantage

10. Implementation Status IAQG members agree to use standards internally and to flow requirements to suppliers • One voice • Minimize variation • Shared resources • Reduced duplication and waste ...levels of implementation exceed 90% and rising

11. Strategic Drivers Improvement Strategy Relationship Growth Strategy • Requirements • People Capability • Supply Chain Process Capability • Product Realisation Processes • Civil Authorities • Space • Defense IAQG Operating Management System • Member Collaboration • Top Leader Involvement • IAQG Operational Efficiency

12. Authorities / Industry Partnership Airworthiness Authority and industry executives Joint Strategic Purpose is to enhance safety & quality; • Parts can be manufactured anywhere • Move quickly and seamlessly to the end user • Are supported by electronic documentation incl. Auth Rel Cert • Making progress towards Authorities recognition of Industry Controlled Other Parties scheme Agenda to GloballyEnhance Airworthiness and Safety

13. Industry Partnership with Space IAQG Space Forum has stimulated strong cooperation within each sector • Space representatives agreed on proposal to be made to 9100 writing teams to incorporate requirements • JAQG Space Forum established February 2006 during next major 9100 update in approx 2008 • European Space cooperation being discussed between ECSS & EAQG Working to Enhance Quality Globally, and beyond

14. Industry Partnership with Defense • Coordination with NATO to harmonise 9100 series and AQAP’s (Allied Quality Assurance Publications) • Goal to establish recognition of IAQG standards as suitable for defence procurement • Outreach plan being developed to review with other defence agencies

15. Industry Benefits… • Focus on the complete value chain • True global cooperation and harmonization • Higher quality products at reduced cost • Fewer customer-unique documents • Open sharing of proven “Best Practices” • Rapid consensus & deployment of new standards • Reduced variation & waste Agenda for change, pursued with constancy of purpose