Aerospace Advanced Product Quality Planning (Aerospace APQP) Introduction

1. Aerospace Advanced ProductQuality Planning (Aerospace APQP)Introduction October 2013 1

2. Purpose Hint: Google: “iaqgscmh” and then Bookmark it! The purpose of this presentation is to introduce Advanced Product Quality Planning to Aerospace Suppliers Note: The full APQP Introduction presentation is available to the public on the IAQG SCMH website (www.iaqg.org/scmh)

3. Supply Chain Management Handbook (SCMH) • The APQP material is located in Chapter 8.4 • www.iaqg.org/scmh APQP Introduction

4. Document structure Refer to the SCMH for more information Structure for Aerospace APQP guidance material content: • Definition and Benefits • Aerospace APQP Model - Pillars • Organizational commitment & Management support • Cross functional team • Effective project planning • Aerospace APQP model - Principles • Product oriented • Structure • Phases • Elements • Deliverables • Checklist • Production Part Approval Process (PPAP) • Implementation and customization • Assessments/ratings • Reporting • Escalation

5. What is APQP? APQP is a structured method that deploys the necessary steps to assure that a product satisfies the customer 5-Phase Quality Planning Cycle (PDCA) Up-front planning (First 3 phases) Implementation (Last 2 phases) Success Drivers Management commitment Integrated cross-functional teams Effective project management Defined deliverables & outputs for each phase

6. Background • IAQG recognizes that the Aerospace industry is different from other industries and has developed guidance material which is tailored to suit companies working in this industry. • Low volumes • Long life cycles • High levels of regulation • The IAQG Guidance material on APQP and PPAP builds on the principles of quality planning as pioneered by Deming from the 1950s and the Automotive industry during the later decades of the 20th Century. • GM, Ford & Chrysler published the first combined APQP manual for the automotive industry in June 1994

7. Benefits Products are successfully launched when all functions/disciplines work together to achieve common project objectives. Aerospace APQP encourages cross functional teamwork and early engagement of all functions and suppliers. • The APQP approach helps satisfy the customer with: • Better product quality by reducing process variation and anticipating risks and defects • Shorter lead time by reducing waste and reworks and better manage capacity • Lower costs

8. Aerospace APQP Model Customer Satisfaction On-Time, On-Quality, Shorter lead times Organizational Commitment & Management Support Cross Functional Team Effective Project Planning APQP PRINCIPLES

9. Aerospace APQP main pillars Organizational commitment & management understanding and support Full engagement and commitment of top management from project launch is key. • Aerospace APQP brings success when it is embraced by the whole organization • Top management demonstrates commitment through: • Completing specific APQP training • Allocating appropriate resources • Leading periodic reviews • Standardizing APQP practices • Removing Roadblocks

10. Aerospace APQP main pillars Cross functional team Cross functional team approach ensures effective communication across the business & enables faster product development. • Establish a cross functional team including: Engineering, Procurement, Manufacturing, Quality, Sales, Field Service, and others as appropriate • The team should consist of representatives from both the supplier and the customer • Roles • Team leader (project management function) determines the team membership, guides, assigns tasks, escalates issues to management • Members complete the required tasks and deliverables • Quality (APQP) management arranges for the meetings, ensures on-time and on-quality of deliverables, documents and records

11. Aerospace APQP main pillars Effective project planning Commitment of the project team to Aerospace APQP planning is key to the project success. Schedule the tasks defined by the APQP elements and monitor them in order to deliver a product conforming to quality, cost and delivery targets Aerospace APQP Planning cascades program key targets throughout the value stream; driven from final customer through internal operations and all sub-tiers This establishes a customer/supplier relationship throughout the value stream

12. AerospaceAPQP main pillars xx xx Q Q Representative Representative Effective planning includes flow down of timing requirements throughout the value stream Deliverables Deliverables Deliverable Deliverable Deliverable Deliverable Deliverable Deliverable Deliverable Deliverable Owner Owner Owner Owner Owner Owner Owner Owner Customer APQP timeline Requirements Progress reports Supplier APQP timeline

13. Aerospace APQP model 5 PHASES ELEMENTS DEFINING ACTIVITIES KEY DELIVERABLES

14. Aerospace APQP model • Aerospace APQP enhances the product development process • Product Development Process (PDP) specifies activities across functions and suppliers, with associated deliverables and interim approvals at defined points, e.g. gate reviews • Aerospace APQP aligns with Product Development Process • Ensures that all activities are completed on-time and on-quality • Facilitates effective communication • Provides timely escalation and resolution of road blocks

15. Aerospace APQP model aligns with PDP Alignment with Product Development Process (PDP) • APQP supports Product Development Process (PDP) • Applies to each item of the product breakdown structure • Standardizes deliverables for each Aerospace APQP Phase • Evaluates maturity based on timing and quality of required deliverables End of design Production readiness Product validation End of concept Kick off Product Development Process APQP phases D A E B C APQP milestones

16. Aerospace APQP model Cascade through Product Breakdown Structure (PBS) 3 - Report APQP status at project level End of design Production readiness Product validation End of concept Kick off Product Development Process System level Sub-system level Components level 1 - Cascade deliverables and align timing for each level Note: Compressed timeline to support program timing 2 - Bottom up status based on on-time on-quality deliverables Typical PBS: system→ sub-system→ component

17. APQP PrinciplesPhasesElementsDeliverables

18. Aerospace APQP principles Aerospace APQP organized into 5 Phases • Logical steps to deliver a product from concept to production that can be applied to any product at any level across the supply chain • The 5 phases are: • Planning • Product design and development • Process design and development • Product and process validation • Production

19. Aerospace APQP principles Phase 1 – Planning • Identifies and gathers all the inputs applicable to the product • Collects the technical and non-technical requirements applicable to the project/product • Defines the product and project goals • Ensures that the organization has decided what will be made in house and what will be purchased/sub-contract • Provides an agreed timing for deliverables attached to each Aerospace APQP elements Output • The product concept is frozen (milestone A) and a pre-design is available • Concurrent product design and process design can start

20. Aerospace APQP principles Any design changes after this phase requires change management Phase 2 - Product design & development • Turns product specifications into a robust product definition • Provides a verified product design • Team commits to product manufacturability Output • Specified prototype testing (e.g. simulation& functional testing) have been completed • The product design is verified and validated (milestone B) by the design organization

21. Aerospace APQP principles Phase 3 - Process design & development • Creates a robust manufacturing process that meets requirements in terms of quantity and quality of product • Defines the means to control the manufacturing process and its outputs Output • The process is defined, established, verified (production readiness review - milestone C) and ready for validation.

22. Aerospace APQP principles Phase 4 - Product & process validation: • Launches the significant production run • Collects data to demonstrate the manufacturing and assembly processes can produce conforming product at the required rate • Management determines process readiness for entry into serial production by reviewing the results of: • The product and process design is validated by the organization • Production readiness evaluation • Corrective actions taken for anyissues identified to date

23. Aerospace APQP principles Phase 4 - Product & process validation: Output • Start of production & FAI (milestone D) verify that the initial product made using all full production means conforms to specified requirements • First Article Inspection (FAI) is compiled, approved and available for customer review • Production Part Approval Process (PPAP) (milestone E) is compiled, approved and available for customer review

24. Aerospace APQP principles Phase 5 - Production • Records Lessons Learned for continuous improvement • Ensures robust product realization processes are in place • Implements actions to reduce product and process variation in order to achieve quality goals • Supports on-going Maintenance Repair and Overhaul (MRO) operations • Performs capacity monitoring Outputs • Project goals are achieved, including reliability, quality, and customer satisfaction • On-time, on-quality, on-cost production and service

25. Aerospace APQP principles Elements Describes key activities accomplished during each Aerospace APQP phase Assure the health of the project through monitoring on-time,on-quality key deliverables Encourages a standardized approach Applicability evaluated for each project

26. Aerospace APQP principles Element Descriptions coming soon! Deliverables Specific outputs defined for each element Tangible outcomes of the cross functional team activities Provides the base for assessing the on-quality of the Aerospace APQP elements Provides standardized content wherever possible (e.g. FMEA, Control plan etc.)

27. Aerospace APQP principles Checklists coming soon! Checklist • Standardized tool to evaluate on-quality of deliverables and elements • Short set of simple, clear questions which will deliver closed answers (Y/N) • Provides document references as evidence and records deviations • Collects corrective actions to recover deviations • Establishes the first level of Red/Yellow/Greenrating

28. Aerospace APQP key milestones Production Part Approval Process (PPAP) PPAP validates that the manufacturing process has the potential to produce product that consistently meets all requirements at the intended production rate. Success Drivers Completion of key requirements at the right time during planning process (PPAP is an output of APQP) Risk mitigation and improved process control Linkage of DFMEA  PFMEA Control Plan Process Capability validation Product verification (FAI) Process Validation

29. Summary Advance Product Quality Planning (APQP) is taking hold in the Aerospace Industry APQP ensures the delivery of product on-time, on-quality, on cost PPAP validates the production process The full APQP Introduction presentation is available in Chapter 8.4 of the SCMH More information on this topic will be available in November 2013