IAQG General Assembly

1. IAQG General Assembly Montréal Marriott Château Champlain HotelFriday October 7th, 2005 IAQG Strategy & Initiatives IAQG General Assembly - Guy DION Presentation

2. IAQG Strategy & Initiatives • The new initiative launched several months ago: The New IAQG Strategy IAQG General Assembly - Guy DION Presentation

3. IAQG Strategy& Initiatives. Table of contents • IAQG StrategyFoundations • Definitions • Global Challenge • IAQG Strategic Goal • Proposed Update to Streams • Process Model • Strategy Focus Streams & Leaders • Strategy Stream – Requirements • People Capability • Supply Chain Process Capability • Product Realisation Process • Relationship Growth Strategy IAQG General Assembly - Guy DION Presentation

4. IAQG Strategy Foundations • The IAQG is the aerospace industry’s voice for quality; its improvement and the resultant bias for action • Our customers, business environment and regulatory requirements drive our strategic goals to improve safety and quality whilst reducing costs • The IAQG has successfully developed standards and best practices for use in our internal organizations and through our supply chains that, when effectively deployed, will improve safety and and reduce costs • Extract of IAQG Charter • 1.2 PURPOSE / OBJECTIVES • • Implement initiatives that make significant improvements in quality and reductions in cost throughout the value stream by establishing and maintaining dynamic co-operation, based on trust, between international aerospace companies. • • The focus is to continuously improve the processes used by the supply chain to deliver consistently high quality products, thereby reducing non - value added activities and costs. IAQG General Assembly - Guy DION Presentation

5. IAQG Strategy Foundations - Definitions • Supply Chain Processes • That collection of industrial processes which lead to the arrival of • the right parts • and the right data • In the right place • At the right time • To the right quality standard, • through the entire value stream • Deliver consistently high quality products • Assuring Customer Satisfaction through On-Time, On-Quality Delivery of products and services, through the lifecycle • On-Time, On-Quality Delivery (OTOQD) • Delivering exactly what the customer ordered, exactly when we agreed to deliver it, with no wasted costs IAQG General Assembly - Guy DION Presentation

6. Europe Americas Asia - Pacific AS&D Customers IIIIIIIIIIIIIIII IIIIIIIIIIIIIIII IIIIIIIIIIIIIIII OEM’s IIIIIIIIIIIIIIII IIIIIIIIIIIIIIII IIIIIIIIIIIIIIII Opportunities for leveraged, integrated activity Tier 1’s IIIIIIIIIIIIIIII IIIIIIIIIIIIIIII IIIIIIIIIIIIIIII Sub-Tiers IIIIIIIIIIIIIIII IIIIIIIIIIIIIIII IIIIIIIIIIIIIIII Regulatory Authorities IIIIIIIIIIIII IIIIIIIIIIIII IIIIIIIIIIIII IAQG Strategy Foundations - Global Challenge • Aviation, Space and Defence industry is Global within and between all layers • Quality and Safety imperatives are heavily regulated and depend upon every level in the Global Supply Chain • IAQG members are committed to continuously improve levels of stability and control of the entire Global Supply Chain IAQG General Assembly - Guy DION Presentation

7. IAQG Strategic Goal – Step change in process capability and maturity Lifecycle On-Time, On-Quality Delivery (OTOQD) Continual Improvements through People, Processes and Tools On Cost On Time On Quality • Product Delivery • Spares & Services • Delivery • Parts and Data at • all levels in the • chain • Reduced inventory • On-Time, On-Quality Delivery • generates continual reduction • Continuous Safety • Improvement • Maturity, Reliability • & Cost of Ownership • Freedom from • Design & • Manufacturing • defects • Reduced Waste IAQG General Assembly - Guy DION Presentation

8. IAQG Strategy – 3 Axis Improvement Strategy Relationship Growth Strategy • Requirements • People Capability • Supply Chain Process Capability • Production Realisation Process • Civil Authorities • Space • Defense • Suppliers • Engineering, Sourcing… IAQG Operating Management System • Member Collaboration • Top Leader Involvement • IAQG Operational Efficiency IAQG General Assembly - Guy DION Presentation

9. IAQG Strategy – Process ModelInputs Constraints Outputs Resources (ICOR) CONSTRAINTS Regulatory & QMS Requirements Product Realization Processl OUTPUTS INPUTS On-Time On-QualityDelivery Customer & Business Requirements Global Supply Chain Process Business Unit Individual metrics Supply Chain Process Capability People Capability People Human Factors Relationship Growth Civil Authorities Space Defense Suppliers Operating System Policy Procedures Communications RESOURCES IAQG General Assembly - Guy DION Presentation

10. Strategy Focus Streams & Leaders IAQG General Assembly - Guy DION Presentation

11. Strategy Stream – Requirements Establish, Develop, and Maintain Industry Quality Requirements to improve product and process integrity • Maintain Focus on Quality Management System (QMS) Standards • Stay abreast with emerging requirements e.g. CSR, Hazmat* etc • Sustain and Improve Certification Scheme Requirements • Support QMS Revision year 2008 • Work with Relationship Growth Teams • Civil Authorities requirements harmonization • Space requirements integrated into QMS • Defense requirements harmonization • Including Industry Controlled Other Party Scheme activities *CSR = Corporate Social Responsibility Hazmat = Hazardous Materials eg ROHS (Restriction Of Hazardous Substances) WEEE (Waste Electrical and Electronic Equipment) IAQG General Assembly - Guy DION Presentation

12. Strategy Stream – Requirements Actions Future State Current State • QMS 9100 series • consistent with the ISO 9001 new issue • worldwide implemented by the industry • International unique Certification Scheme • audit process • scoring • Standards worldwide recognized by the stakeholders • Dedicated Working Groups • Relationship with TC 176 • Data mining of current 9100 standard, 9101 and others • Web survey • Benchmarking with other industries • Metrics : • Scoring deployment (OASIS) • Certification deployment • Relationship with civil authorities, defense & space • Monitor emergent new requirements A suite of existing IAQG QMS standards, based on ISO 9001 Various take up of standards Many other Requirements - Authorities - Associations - Customers Different Areas - Civil - Space - Defense IAQG General Assembly - Guy DION Presentation

13. Strategy Stream – People Capability* Develop the competency of, and support for, those engaged in supply chain processes, in all functions, to deliver continual improvements in OTOQD • Develop common dictionary of Aviation Space & Defence terms & meaning for IAQG related documents • Develop common framework for Competency Management Process • Develop Core set of IAQG agreed competencies & levels linked to job needs & determine whether licensing / qualification has added value • Establish approach & network of training/ coaching providers worldwide and implement quick start mechanism eg; • Boot camp for new / problem suppliers • Merit scheme for proactive / top class suppliers *Now Includes Human Factors IAQG General Assembly - Guy DION Presentation

14. Strategy Stream – People Capability Actions Future State Current State • Assumption that good Processes alone lead to good Products. • Mechanical technocratic approach to Processes • Lack of/ Diversity of “Competency Mgt Process” • More outsourced Processes in “foreign” countries (Problems of language and meaning) • More temporary workers in workforce • People can twist or ignore the process • Common meaning of terms (Dictionary) • Common “Competences Management Process” • Raised awareness of People: • Their position/ role within operational Processes & the impact of Human Factors on their own performance • Establish an industry standard approach to boost people capability in supply chain management at all levels • Mature Products delivered by reliable Processes • Highly Skilled workforce at all levels in the supply chain • Robustness of Processes with regards to changes IAQG General Assembly - Guy DION Presentation

15. Strategy Stream – Supply Chain Process Capability Deployment of Global Supply Chain Process standards and guidelines to ensure continually improving OTOQD • Create a Supply Chain Management Standard / Guide, an overarching document to define industry standard supply chain management processes eg: • Contract Requirements flow down • New Product Introduction • Product / Supplier Couple Qualification • Change Control – Engr / Source / Process • Sub-tier Supplier surveillance & control, including Special Processes • Supplier Development • etc • A checklist to be developed to assess supplier process strength IAQG General Assembly - Guy DION Presentation

16. Strategy Stream – Supply Chain Process Capability Deployment of Global Supply Chain Process standards and guidelines to ensure continually improving OTOQD • Develop maturity model for Supply Chain Processes (CMMi* for example) • Establish links with Supply Chain Council to access other industry experience and best practices and ensure guideline incorporates best practices from other industry sectors *CMMi = Capability Maturity Model – Integrated IAQG General Assembly - Guy DION Presentation

17. Strategy Stream – Product Realisation Process Establish and implement proactive product realisation processes to ensure immediate & sustainable OTOQD internally and externally • Define an industry standard pre-production approval process to effectively control part/source introduction & change • Improve manufacturing process capability levels through the supply chain; eg:- more effective deployment of key characteristics standard (9103), - process certification • Develop training material to assist in effective deployment of key characteristics standard (9103) • Develop industry standard process and toolkit for root cause analysis and action planning IAQG General Assembly - Guy DION Presentation

18. Relationship Growth Strategy Working together to develop a single voice on quality related issues… Civil Airworthiness Relationship • Enhance safety and quality by working together with the international airworthiness authorities and industry leaders to establish a system where aircraft product and parts: • Can be manufactured and maintained almost anywhere • Move quickly and seamlessly to the end item user • Are supported by electronic documentation • There is no more than one AA action for each industry activity International Space Forum • A global forum for space quality issues standards Share experience and views on space quality issues • Discuss initiatives and build consensus for a common space position • Propose space specific initiatives • Global acceptance of standard approach for a single QM standard and certification Defense Relationship • Coordination with NATO on AQAP’s (Allied Quality Assurance Publications) • Involvement of national defense organizations in sector activity • Recognition of IAQG standards as suitable for procurement IAQG General Assembly - Guy DION Presentation

19. 2010 2006 2007 2008 2009 Expand to Airlines & MRO’s • QMS MAINT • DATA MINING/LESSONS • LEARNED • WEB SURVEY • DEPLOYMENT METRICS • BENCHMARKING • ICOP QMS Re-issue • IMPROVED • DEPLOYMENT • PROCESS REQUIREMENTS AUTHORITIES ALIGNMENT • PROCESS CERTIFICATION • PRE PRODUCTION APPROVAL PROCESS • 9103 – IMPROVED DEPLOYMENT PRODUCT REALIZATION PROCES Establish curriculum & network of training and coaching providers worldwide Develop & Issue Sub-tier Control handbook DEVELOP SUPPLY CHAIN PROCESS ARCHITECTURE & COLLECT OTHER INDUSTRY BEST PRACTICES Develop university links Develop Competency Management Process Develop Dictionary SUPPLY CHAIN MANAGEMENT CAPABILITY PEOPLE CAPABILITY IAQG General Assembly - Guy DION Presentation