Rolls-Royce’s Human Factors Approach An update:

1. Rolls-Royce’s Human Factors Approach An update: John Anfield - Head of Learning & Development, Aero Repair & Overhaul RAeS HF Conference – Bentley Priory - 18th October 2006 Joined for Q&A session by: David Watkins - Director Quality & Process Excellence, AR&O Alan Eccleston - Director of Engineering, AR&O

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3. Power systems for tomorrow’s new products Boeing 787 V-22 A380 A400M Eurofighter JSF A350 XWB DD(X) LCS Type 45 UT Design Dolphin Pipeline Fuel Cells 15

4. Presentation covers: • Remind you of our HF Plans back in mid-2004 • Talk about what has been achieved over the past two years • Share with you what has gone well and some lessons learnt • Discuss our evaluation and return on Investment methods • Talk about our next steps in our HF journey Rolls-Royce data-strictly private

5. HF Steering Group Meetings Design and Pilot of Management HF Training Exec Event Conducting an HF Training Evaluation (Graduate) Facilities, logistics and HR Admin provided from within Rolls-Royce Delivered Manager & TU Trg To 195 + 11 in 18 events v MEDA Training For Investigators Employee HF Training Programme – 2420 people 152 events Delivered by Baines-Simmons Ltd Programme Covering Glasgow, Derby, Ansty and Bristol Design of HF Continuity Trg Business Case Accepted Financial Budgets agreed P.O. NDA & Contract HF Continuity & MEMS Communications Campaign MEMS Phasing of our HF Training PlanFrom 2004-2007, and beyond Oct 2004 Dec 2004 Jun 2005 Oct 2006 Jan 2007 May 2004 MD’s Letter on HF sent out to all Employees Rolls-Royce data-strictly private

6. What was our total investment? • Employees’ and managers time off-job (circa 5,300 days) • Human resources effort: • Steering Group Meetings(50 days) • HF Mgt/Admin time (200 days) • Investigations (80 days) • Staff on specialist HF courses (65 days) • Cost of the HF/MEMS training circa £0.5m • Implementing systems improvements - MEMS (IT 25 days) • Feedback and publicity (90 days) Quite an effort! Nearly 6,000 days off-job training Rolls-Royce data-strictly private

7. MEMS Activity Dec 2004 – July 2006 280 MEMS Raised in Total Rolls-Royce data-strictly private

8. Examples of MEMS Ref. MEMS A060001 After engine sentencing, serviceable items are transferred to the kitting area in the Bellman Hanger. These items are placed in plastic bags and secured using staples. Concerns have been raised with local management that these staples are littering work areas and could contaminate engine parts and or assemblies, along with possible Heath and Safety issues. Instead of stapling we now use a bag sealer on plastic bags. Ref. MEMS A060003 Issue raised by a production worker concerning the amount of rework and hence costs associated with the time and effort to remove excess braze from the above part (Vanes) on a regular basis.This is an old problem that has been around for circa 10 years. Concern also raised due to the effects on the operators of having to spend so much time blending off braze with the consequential HAVS (hand arm vibrations). Believed to be the highest reject item within the cell. Review of all steps in process mostly centred on cleanliness has led to a reduction in rework/blending from 76% to 16% with further planned improvements being progressed thru a Green Belt project and reduced HAVs risk. Rolls-Royce data-strictly private

9. Some Further Examples of MEMS Rolls-Royce data-strictly private

10. Evaluation & ROI- How do we know when it is working? Heightened employee attitude towards HF and safety issues, with a measurable, positive effect up to 24 months after their initial HF Training HF is in everyone’s vocabulary now: TU, Ops, Quality, Finance, HR etc Trust and openness is evident in daily interactions Quantified by nearly 300 MEMS reports, many avoiding errors/costs Discipline is now guided by a Just Culture & Culpability policy HF is a Standing Agenda item on our Quality Board Expectation in years 3-5 of our campaign that the true ROI of HF will be seen Rolls-Royce data-strictly private

11. .Q2. Since completing the Human Factors course, what impact (if any) is there on the way you go about performing your duties? • I now consider the HF impact on my team when travelling to/from remote jobs to ensure adequate rest • Can see how minor errors can be the root cause of larger incidents/accidents • I am more thorough with repetitive work to avoid complacency creeping in. • Greater awareness of when things are wrong and more confidence to report issues, MEMS system useful. • I have raised a MEMS report where lack of tooling prevents us following procedure • I haven’t reported anything yet, but can see that MEMs is a good tool to voice your concerns • Shift handover is now better controlled Q3. Can you identify an example where a potential incident was avoided due better understanding of Human Factors and the Error Zone? • Tiredness and lack of knowledge could have caused an incident but took a break and then completed task • Fan blades launched into the wrong cleaning process, prevented escape into service of three engines • We have Improved the tooling for Trent 800 IP compressor strip and build • Our mechanics are more aware of environment – we stopped work on A/c outside in harsh conditions • Check of modification state early in the build process found redundant parts that would have had a major impact after test – we avoided a customer complaint Rolls-Royce data-strictly private

12. 2003 2004 2005 2006 2000 2010 Our Next steps? – Critical point in time regarding Return on Investment Knowledge and expectations wrt the MEMS 2007 2008 Year Rolls-Royce data-strictly private

13. General Background Communications Campaign Posters and Coasters Internal Magazine Articles Incident Incident Hazard Reports Hazard Reports Hazard Reports Newsletter Feedback Learning Points Newsletter Feedback Learning Points Newsletter Feedback Learning Points Newsletter Feedback Learning Points New Starters HF programme HF Continuity Trg Course/Employees HF/MEMS Clinic Trg Course/Managers Concept of an effective HF Continuity Campaign for the Long-Term Global HF Feedback Systems Rolls-Royce data-strictly private

14. Thanks for listening. We will be happy to take your questions in the morning Q&A session In Summary: What we got right: What could have been better: HF Steering Group: Ops/Qual/Trg ShoMe Safety Surveys Training our Managers/TU first Communications and newsletters Trained for both Civil & Military MEDA training given too early The AR&O Exec HF Event Line Manager Ownership of MEMS Our MD’s letter to employees Car park issue clean up rate Chose a World class vendor Paper route for MEMS Trained staff & works together Customised HF programme Just Culture document, TU agreed Shift & Task Handover Procedure Formal AROP Quality Procedure On line MEMS – for 2 years Extension to non EASA 145 areas Rolls-Royce data-strictly private