The Initiatives of the International Aerospace Quality Group (IAQG)

1. The Initiatives of the International Aerospace Quality Group (IAQG) Presentation updated based on the meetings in Amsterdam – 25-28 April Steve Shepherd (Rolls-Royce plc) European Sector Leader

2. Aimed at meeting our focus and objectives: • “...continuously improve the processes used by the supply chain to deliver consistently high quality products...” • “… common aerospace quality standards and requirements…” • “… process of continuous improvement at suppliers…”

3. Take note of known areas for improvement: • Audits - “Supplier Control” is a significant issue • Variability in the process often lies with the primes • Global Safety - needs a step change in performance

4. Our response is to- • See the aerospace industry as a global one • Develop common Standards, processes etc • Share/extend best practices • Consistent with Airworthiness requirements • Harmonised positions between Authorities • Use common implementation methodologies • Use common quality standards world-wide • Evaluate the impact & value + Fit with our emerging Strategy

5. Strategic Focus Improvement Strategy Relationship Growth Strategy • Quality Mgt System • Process Capability • People Capability • Human Factors • Subtier Supplier Control • Evaluation • Civil Authorities • Space • Defense • Suppliers • Engineering, Sourcing.. IAQG Operating Management System • Member Collaboration • Top Leader Involvement • IAQG Operational Efficiency

6. Six Areas for FocusedImprovement • Requirements (Quality Management System) • Value Added Standards & Guides • Process Capability • Supplier development & product introduction • People Capability • Staff & the quality professional • Human Factors • ‘human factors’ guidelines and glossary • Sub tier Supplier Control • Industry wide increase in control through globally harmonized Standards • Evaluation • Visibility of quality performance & performance metrics

7. Initiatives to Fulfill the Strategy- Maintain – Improve - Innovate Harmonization of Tech Specs • Strategic Trend • Longer-term view • Greater emphasis on innovation • Greater total system payoffs Human Factors SubTier Control Innovate 3D Data Storage ? 9300/ 9034 Risk Management For Suppliers 9134 Evaluation People Capability Performance Metrics Quality Management System Non-deliverable Software 9005 Publishing 9103 Improve 9133 Cert Operating Level Operator Self-verification Done 9162 9132 2D Marking Process Capability 9104 9110 9130 Doc Ret 9009 < 6 months 9135 Defense 9120 Sector Schemes 9114 > 6 months or study Industry managed Other Party Process 9102 9107 9013 Maintain 9131 9100 Size implies scale of payoff Contract Clauses Direct Ship Deliverable Software Ad hoc 9006 Direct Delivery Authorization Sampling Plans Current Near Term Longer Term Aligned Implementation Timing

8. Requirements - Quality Management System • 9100- International Aerospace Quality Standard incorporating airworthiness and industry requirements. • Based on and aligned with ISO9001-2000 • Adds ‘aerospace’ expectations • Defines ‘what’ not ‘how to’ • International implementation ‘other party’ management process developed (9104) supported by the OASIS database • Common questionnaire (9101) • Aerospace requirements will be unchanged until the next ISO 9000 revision (2008). Sets the standard

9. Requirements - Quality Management System • Defence requirements (NATO) covered in 9135 • Space requirements to be incorporated at next revision of 9100 • Quality System Standards/checklists developed and published for repair stations (9110/11) and stockist/ distributors (9120/21) • Qualification of Standard Parts; 9133 ~ international methodology • Internal Audit - Use new ISO19011

10. Process Capability • First Article Inspection; 9102 ~ improves on current individual company requirements and uses common documentation. Note – FAI Training material available on the web – 40,000 hits in 4 months • Variation Management of Key Characteristics; 9103 ~ a rigorous approach to ensure repeatable, capable manufacturing processes.

11. Process Capability • Direct Shipment – 9114 – at publication • Direct Delivery Authorisation – 9107 – at publication • 2D permanent part making standard - marking, reading & validation; 9132 published – updated to reflect the latest technologies • Software Quality Standards • New standards in production by AAQG; • AS9006 for deliverable s/w - published • ARP9005 for non-deliverable s/w • Sampling Plans; AAQG - ARP9013 – at publication

12. People Capability • Operator Self Verification - AS9162 – at publication • Harmonisation of Global NDT requirements for Personnel training; EN4179/NAS410 - published

13. Sub-tier Supplier Control • Supplier Control in a Global Environment; • Supplier Risk Assessment – Guideline published - 9134 • Non-conformance documentation; 9131 ~ common documentation for concessions/ waivers and escapes/disclosures.

14. Special Processes - Policy The IAQG support the need for Special Processes to be Certificated through an industry controlled systemin accordance with individual customer/supplier requirements.

15. Special Processes - Policy Benefits of Global Approach • Get worldwide recognition with a single accreditation • Improve the quality level of special processes performed by industry processors • Reduce for the suppliers, the time and workload in receiving Special Process audits • Reduce for each Prime the working load of performing Special Process audits which are performed once for all customers of a supplier • Future Intent - Make progress in harmonization of technical standards and audit practices

16. Other Activities • 3D Data Storage and Retrieval; ARP9034/EN9300 in production and harmonisation though 2006 • EN 9130 – Document Retention – to be updated with global requirements and subsumed under the Requirements Strategy

17. Initiatives metrics Implementation status (updated 27 April ’05) • 9100 Quality System: • Supplier deployment - 90% • Internal deployment - 92% • 9102 First Article: • Supplier deployment - 69% • Internal deployment - 74% • 9103 Key Characteristics: • Supplier deployment - 46% • Internal deployment - 62% Note – numbers impacted by increasing membership

18. New Strategy Proposals - agreed for launch 1. Product introduction process - 1 year programme The current process (9103) does not emphasise process control and supplier development prior to production. This initiative will study the current aerospace process and other industry processes to aid the development of a new process. This will include current production moving from in-house to supplier and supplier-to-supplier 2. Benefits and use of 9103 - 6 month programme Reasons for slow take-up have been studied to help develop a benefit case and training package 3. Supply chain management standard/guide An overarching document is needed to standardise the supply chain management methods used in our industry including the process for assessing our supplier’s ability to select and manage their suppliers 4. Glossary of terms Human Factors programmes require communication elements including a good understanding of terminology. An aerospace terminology glossary or dictionary of quality terms used by the IAQG will be progressively developed 5. Reference model for IAQG metrics Obtain from the OEMs how they measure supplier’s performance in order to create a reference model to be utilized. This action aims to establish a common language to be used by the OEMs.

19. Initiatives to Fulfill the Strategy- Maintain – Improve - Innovate Harmonization of Tech Specs • Strategic Trend • Longer-term view • Greater emphasis on innovation • Greater total system payoffs Human Factors SubTier Control Innovate 3D Data Storage ? 9300/ 9034 Risk Management For Suppliers 9134 Evaluation People Capability Performance Metrics Requirements QMS Non-deliverable Software 9005 Publishing 9103 Improve 9133 Cert Operating Level Operator Self-verification Done 9162 9132 2D Marking Process Capability 9104 9110 9130 Doc Ret 9009 < 6 months 9135 Defense 9120 Sector Schemes 9114 > 6 months or study Industry managed Other Party Process 9102 9107 9013 Maintain 9131 9100 Size implies scale of payoff Contract Clauses Direct Ship Deliverable Software Ad hoc 9006 Direct Delivery Authorization Sampling Plans Current Near Term Longer Term Aligned Implementation Timing

20. Strategy Leaders Review - An Integrated Strategy 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 IAQG purpose: IAQG Strategy framework to achieve the purpose: Integrated Roadmap of Prioritised Initiatives:

21. Good Progress…. • A tremendous opportunity for us all- Operators and Airframers. • The whole Supply Chain will benefit from- • Safety and quality improvements • Waste and cost reductions • Consistency and clarity of approach, requirements and documentation • Reduction in multiple oversight audits • Improved relationships

22. Good Progress…. Very strong international co-operation and determination to drive forward Still lots more to do!!!

23. Questions?