Performance stream status EAQG performance benchmark York General Assembly

1. Performance stream statusEAQG performance benchmarkYork General Assembly Alain Bonnard Christian Buck October 22nd 2010

2. Performance stream supports IAQG 5 years visiondevelopment • Product and Services Quality and Delivery will have improved 20% per year throughout the product lifecycle • Robust processes achieved throughout the Supply Chain (SCMH supplier maturity assesment level 3 or better) • IAQG Quality management system certification program robust, recognised and valued • 90% of the industry supply chain certified to IAQG Quality Management System Standards

3. Aerospace and Defense Performance Index • A process consolidating, reporting and publishing the measurement of the whole aerospace and defense supply chain progresses toward the 20% improvement goal • Based on observed and sampled On Time Deliveries – On Quality Deliveries • Measurements based on standard “metrics definitions” • A process allowing each supplier to find its position within the index and to set improvement objectives by itself or in the frame of a customer-supplier relationship

4. Performance Index Process Loop IAQG members provide data to Performance Agency (suppliers anonymous) IAQG members select a representative sample of suppliers data Suppliers OTD OQD IAQG members observe their suppliers performances Suppliers & customers set improvement goals Performance Agency consolidates data (members anonymous) IAQG Council review to 20% improvement goal Each supplier is able to find its position in the index IAQG publishes data (e.g. next slide) 4

5. Performance Index Possible Publication Item Escape Rates Distribution Sample of 138 suppliers Specimen Deterioration 2008 2007: 4000 ppm 2008: 3500 ppm 2007 Improvement 2007 2007: 443 ppm 2008: 392 ppm 2008 2007: 10 ppm 2008: 5 ppm On Quality Performances 2007/2008 Evolution 5

6. EAQG Supply Chain Benchmarking IAQG General Assembly York, UK, October 22nd, 2010 Alain BONNARD EAQG Operations Manager Benchmarking

7. Benchmarking Project EAQG Benchmarking Project EAQG Initiative launched within the IAQG European Sector • Project concept defined in 2009 • Decision to proceed taken in September 2009 • Considered as a Pilot Case • Participation from EAQG Company Members based on a voluntary basis • Data collection started in January 2010 Goal: Get EAQG Supply Chain 2010 Performance level 7

8. Benchmarking Principles • Benchmarking Principles • 2 Performance Metrics • Conformity (Item Escape rate in PPM) • Punctuality (On time Delivery in %) • Suppliers Performance only • Average of EAQG Suppliers Performance for each Business Unit (if any, optional*) identified by EAQG participating companies (2 data / Per Business Unit) • Average of EAQG Suppliers Performance for each Technological Segment (Optional*) of each Business Unit (2 data / Per Business Unit / Per Technological Segments) (Optional*) : To be decided by EAQG participating Companies 8

9. Benchmarking Principles • Benchmarking Principles (Cont’d) • General results (All Technological Segments together = Average of Suppliers Performance for each Business Unit identified by EAQG Companies) • Graph / metric • Conformity (Item Escape rate in PPM) • Punctuality (On time Delivery in %) • Graph / metric per Technological Segment (for EAQG participating companies willing to have Technological segments) Each EAQG Member is receiving the same General results 9

10. Benchmarking Principles • Benchmarking Principles (Cont’d) • Customized results (per company) • Graphs / Metric (Conformity & Punctuality) with identification of your company Business Units (Optional*) • Graphs / Metric per Technological Segment (Optional*) with identification of your company Business Unit (Optional*) : To be decided by EAQG participating Companies Each EAQG Member is receiving the Graphs with its Business Units Company positions on the graph 10

11. Metrics Definition • Metrics Definition • Conformity: • Escape – Non Conformity level after delivery to the customer • Item Escape Rate expressed in PPM • (Definition in § 7.1.1 IER) • Punctuality: • On Time Delivery of items to the customer • Delivered items expressed in % • (Definition in § 8.1 OTD) Double click to open the document Period of Measurement: 6 months rolling average or in exceptional case 12 months based on volume of parts According to Metrics definition made by EAQG Working Group 11

12. Industry Segments • Technological Segments Benchmarking per Technological Segment • Option to have the benchmarking results per Technological Segment • 5 defined Technological Segments made by the dedicated Working Group after collection of identified segments made by each EAQG participating Member (See 5 Segments next slide) 12

13. Industry Segments • Technological Segments Definition 13

14. EAQG Members • EAQG Company members 14

15. Participating EAQG Members • Participating EAQG Company members Percentage of participation: • / of Total EAQG Companies: 63 % 15

16. All 55184 Benchmarking Results Benchmarking 16

17. All 69 % Benchmarking Results Benchmarking 22

18. Comparison with Automotive industries All Aerospace & Defence Automotive 55184 393 Benchmarking Results Benchmarking 28

19. Comparison with Automotive industries All Aerospace & Defence Automotive 69 % 95 % Benchmarking Results Benchmarking 29

20. Benchmarking Results • Benchmarking Results Benchmarking 30

21. Next Steps • Next Steps • Extend Performance Metrics initiative at IAQG level (IAQG Strategy Improvement stream – Performance) • To be implemented early 2011 at International level 31

22. Performance Index Development Whole Aerospace and Defense Supply Chain is estimated to : 14000 sites certified to 9100, 9110 or 9100 sites 8000 sites planning certified (rough order of magnitude) Several thousands of other suppliers A representative sample of this supply chain is around 500 suppliers, Global development plan leads to first index publication in spring next year Any suppliers willing to join are welcome 32

23. Questions? 33