Company Confidential March 2015 Americas Aerospace Quality Group (AAQG) Newcomer Orientation 1

March 2015 Americas Aerospace Quality Group A cooperative organization within the aviation, space and defense industry in the Americas One of the three sectors of the International Aerospace Quality Group (IAQG) formed in 1998 –Americas (AAQG) –Europe (EAQG) –Asia-Pacific (APAQG) To understand the AAQG, you have to understand the IAQG 2

March 2015 AAQG Membership Roles MemberLiaisonMailing List Definition An individual from a company that provides completely integrated platforms or completely integrated major systems to platforms and who maintains an active role in the AAQG An individual currently employed by a company that carries out the design, development, manufacture, and support of aerospace original equipment and maintains an active role in the AAQG or Representatives of Government Departments and Agencies participating in AAQG meetings and projects An individual interested in receiving information on AAQG meetings Privileges Full access to AAQG private website Voting privileges Can participate on AAQG teams, sub-committees, or projects Full access to AAQG private website Does not have voting privileges but can submit comments on document ballots Can participate on AAQG teams, sub- committees, or projects No access to AAQG private web site Can participate on AAQG teams or projects 3

March 2015 International Aerospace Quality Group IAQG Council General Assembly Forums AAQG (Americas) EAQG (Europe) The AAQG is Part of a Global Team… APAQG (Asia & Pacific) Achieve significant performance improvements in Quality, Delivery, and consequently cost, on all products and services throughout the value stream Whose mission is to:

March 2015 IAQG Membership – Americas (AAQG) ATK Ball Aerospace Boeing Bombardier Embraer GE Aviation General Dynamics/ Gulfstream Honeywell Lockheed Martin Moog Northrop Grumman Parker Aerospace Raytheon Rockwell Collins Spirit AeroSystems Textron Triumph Group United Technologies 5 Sponsor: Society of Automotive Engineers (SAE)

March 2015 IAQG Membership – Europe (EAQG) 6 Sponsor: Aerospace and Defense Industries Association of Europe (ASD) Advanced Electronics Company (AEC) Airbus Airbus Military Alenia Aermacchi AgustaWestland Astrium Avio Aero BAE Systems Cassidian Dassault Aviation ELBIT Systems Eurocopter FACC Fokker Aerospace GE Aviation Systems GKN Aerospace Engine Systems HEGAN Israel Aerospace Industries LTD MBDA Meggitt Messier - Bugatti - Dowty MTU Aero Engines PFW RAFAEL Rolls-Royce Russian Helicopters Saab SAFRAN SAGEM SNECMA Sonaca THALES Turbomeca UAC (United Aircraft Corporation) Zodiac Aerospace

March 2015 IAQG Membership - Asia Pacific (APAQG) 7 Sponsor: Society of Japanese Aerospace Companies (SJAC) AIDC (Aerospace Industrial Development Corp.) AVIC I AVIC II COMAC DSO National Laboratories Fuji Heavy Industries, Ltd. Hawker de Havilland IHI Co. Ltd. Indonesian Aerospace KAI (Korea Aerospace Industries) Korean Air Kawasaki Heavy Industries MHI

March 2015 IAQG Voting Membership - ”The Council” 8 Boeing GE Aviation Parker Aerospace Lockheed Martin Northrop Grumman Raytheon Rockwell Collins Textron Triumph Group UTC AgustaWestland Airbus Airbus Military Alenia Aermacchi Astrium BAE Systems Eurocopter Rolls-Royce SAAB SAFRAN AVIC Fuji Heavy Industries IHI Kawasaki Heavy Industries Korea Air Mitsubishi Heavy Industries AAQG Representatives EAQG RepresentativesAPAQG Representatives

March 2015 IAQG Strategic Focus 9 Relationship Growth Strategy Civil Authorities - Production Space Defense Maintenance Repair & Overhaul Trade Associations Improvement Strategy Requirements People Capability Product & Supply Chain Improvement Operating Management System Other Party Management Team Integration Team

March 2015 IAQG Relationship Growth Strategy Stream Civil Authorities - Production –Working together with the international airworthiness authorities to enable local design, production and certification with global acceptance International Space Forum –Working together to achieve standards and a certification scheme that can be effectively and efficiently used by space organizations Defense Relationship –Coordination with NATO and defense organizations to adopt simpler, common standards Maintenance, Repair & Overhaul (MRO) –Working together with industry towards recognition of IAQG standards and effective industry use, application, and certification to improve aviation safety, product quality, and efficiency of the MRO industry Trade Associations Relationship –Establish relationships with other aviation industry Trade Associations whose purpose and objectives overlap those of the IAQG 10

March 2015 IAQG Improvement Strategy Stream Requirements –Establish, Develop, and Maintain Industry Quality requirements to improve product and process integrity People Capability –Develop the competency of, and support for, those engaged in Supply Chain processes, in all functions, to deliver continual improvements in On Time and On Quality Delivery (OTOQD) Product & Supply Chain Improvement –Develop and deploy standards and guidance materials to continuously improve On Time, On Quality Delivery (OTOQD) throughout the supply chain 11

March 2015 AAQG Sector Responsibilities Set policy, purpose, and objectives while ensuring they are understood and achieved Create sub-teams as appropriate to implement decisions and initiatives Provide status of initiatives and implementation to all members of the AAQG Provide direction, chartering, and prioritization of initiatives for sub-teams Provide guidance for communication program Facilitate communication between SAE Institute and other appropriate bodies 12

March 2015 AAQG Objectives Establish commonality of aviation, space and defense quality systems, “as documented” and “as applied” Establish and implement a process of continual improvement to bring initiatives to life Establish methods to share best practices in the aviation, space and defense industry Coordinate initiatives and activities with regulatory/government agencies and other industry Stakeholders 13

March 2015 AAQG Sector Leadership Team 14 Chairman Membership Chair Vice-Chairman Projects Chair Industry Segment Chairs Civil - ProductionDefense Space Trade Associations RMC ChairSecretary Communications Chair Past-Chairman Operating Management System SAE Institute SAE Representative MRO

March 2015 AAQG Leadership Team Responsibilities Propose strategy and direction Participate in the leadership discussions and strategy for the AAQG Coordinate/arrange meetings Prepare agenda Ensure documentation for meeting and preparation and distribution of minutes Focal point of contact on AAQG initiatives and RMC activities Facilitate communication between SAE Institute and other appropriate bodies Provide support to sub-teams Coordinate activities and representation by the industry segment chairs 15

March 2015 AAQG Procedures for Control & Governance 16 Located in “Committee Work Area” tab on Private web site AAQG Policies and Procedures

March 2015 AAQG Procedures for Control & Governance 17 AAQG Policies and Procedures IAQG Policies and Procedures Inactive or Superseded AAQG Policies and Procedures

March 2015 AAQG Procedures for Control & Governance 18

March 2015 Industry Controlled Other Party (ICOP) A process for certification of an organization’s Aerospace Quality Management System (AQMS) –Industry Controlled: »The IAQG through each Sector provides direct oversight of all AQMS certification activities –Other Party: »Certifications are completed by authenticated certification bodies (other parties) that are recognized through the ICOP process ICOP is the globally harmonized AQMS Certification process defined by the IAQG (9104) which provides for international recognition of AQMS certification 19

March 2015 Other Party Management Team (OPMT) The goal of the OPMT is to improve the quality level and assure QMS implementation throughout the aerospace supply chain. The Other Party Scheme is based on: –The use of identical or equivalent international, sector and national standards based on the 9104/1/2/3 trilogy of standards –An industry oversight system at international, sector and national levels to ensure that scheme's requirements are fulfilled –Auditors authenticated against identical requirements –All information related to the scheme is collected in the Online Aerospace Supplier Information System (OASIS) database 20

March 2015 Other Party Management Team Structure 21 IAQG - OPMT IAQG 9104/1, /2, /3 Asia Pacific APAQG Members IAF / AB Focals CB Focals Ind. Assoc & OASIS Focals Europe EAQG Members IAF / AB Focals CB Focals Ind. Assoc & OASIS Focals Americas AAQG Members IAF / AB Focals CB Focals Ind. Assoc & OASIS Focals

March 2015 Registration Management Committee (RMC) Responsible for the management, review, approval, implementation and modification of their sector procedures Serves as the governing body by which the requirements for and recognition of Accreditation Bodies, Certification Bodies, Auditor Authentication Bodies, Training Provider Approval Bodies, and auditors for Aerospace Quality Management Systems are determined 22

March 2015 RMC Chair AAQG Voting Members + Rolls Royce NA as a non-AAQG member Accreditation Bodies (ABs) (ANAB, INMETRO) Authorities Academia Customer Certification Bodies (CBs) RMC Web AAQG RMC (Registrar Management Committee) 23 At Large Member Auditor Authentication Bodies (RABQSA, INMETRO) IAQG Oversight Team Communications Documentation S/Team Process Guidance S/Team Surveillance S/Team Data Base S/Team Auditor Review Committee

March 2015 Data base where all information related to AQMS certifications, auditors and audit results is stored Only general information such as Accreditation Bodies, Certification Bodies, Certified Supplier sites, Approved Auditors is publicly accessible 24 OASIS statistics (as of January 2014) 15,928 supplier sites (growth rate of 4.2% per year) 14,254 sites certified to sites certified to ,195 sites certified to ,335 registered users 32,873 active users 1,236 registered Aerospace Auditors 81 listed Certification Bodies OASIS (Online Aerospace Supplier Information System)

March 2015 ICOP Oversight Scheme 25 Supplier (CB Client) ICOP Certification ICOP Certification Body (CB) (9100, 9110, 9120) IAQG/AAQG Member Companies Representatives On-line Aerospace Supplier Information System (OASIS) SMS (RMC) AB, CB & Auditor Approval Shared Oversight IAQG OPMT Oversight of SMS Europe, Asia Pacific, Americas ICOP Accreditation Body (AB) (9100, 9110, 9120) IAQG/AAQG (Supplier Surveillance, Product/Process Audit) Certification Recognition International Accreditation Forum (IAF) Peer Review Oversight ConformanceProduct/Process Conformance DATA Oversight DATA IAQG & RMC Oversight Resources Oversight

March 2015 Supply Chain Management Handbook (SCMH) Provided to assist companies with the advancement of quality practices. Developed by member company subject matter experts On-line and FREE to use New topics are in-work and will be added as they are completed Currently published topics include: –Supplier Selection & Capability Assessment Model –Root Cause Analysis and Problem Solving –Work Transfer Management –Contract Quality Requirements and Flow Down –9103 Key Characteristics Training –9102 First Article Inspection support materials –9100 Deployment Support Materials –People Capability (PCAP) 101 Competence Management Guideline Select SCMH link on AAQG Homepage or go direct with this link:

Company Confidential March 2015 Americas Aerospace Quality Standards Committee (AAQSC) 27

March 2015 AAQSC vs. AAQG – Different Structures 28 Americas Sector, Inc Americas Aerospace Quality Group (AAQG ) Americas Representation To the IAQG (10 Voting Members) Registration Management Committee (RMC) AAQG Council (20 Voting Members) G-14 Americas Aerospace Quality Standards Committee (AAQSC) AAQG Leadership Team AAQSC Chair AAQG Projects Chair SAE Aerospace Council SAE Institute SAE International

March 2015 G-14 Americas Aerospace Quality Standards Committee Established under the Aerospace General Projects Division of the SAE Aerospace Council and affiliated with the Americas Aerospace Quality Group (AAQG), a member of the SAE Institute Creates and maintains technical reports in the form of Aerospace Recommended Practices (ARP) and Aerospace Standards (AS) related to quality management systems and supporting quality-related processes 29

March 2015 Membership Open to all government and private industry individuals involved in quality management systems and supporting quality-related processes, including individuals responsible for contracting, contract / regulatory oversight, auditing / surveillance, accreditation / certification, and performance of work in accordance with aerospace quality requirements 30

March 2015 Future Meetings - Content AAQG Relationship Growth Strategy Team Reports Improvement Strategy Reports (e.g., SCMH) Registration Management Committee (RMC) Reports Review and Approval of New Strategies and Initiatives –Includes training and implementation of standards Note: May propose new or revised standards to AAQSC, including those proposed by IAQG AAQSC Overall Project Status Reports Project Team Reports Review and Approval of New Standards Development Projects –Includes initiation, development and publication of standards Note: Does not include training or implementation of standards 31

March 2015 G-14 Americas Aerospace Quality Standards Committee Responsibilities: –Review, approve/disapprove and prioritize proposals for new and revised technical reports –Charter project teams to develop and maintain technical reports –Recommend technical reports for publication 32

March 2015 AAQSC Leadership Team 33 Chairman Membership ChairVice-ChairmanSecretary Communications Chair Operating Management System SAE Editor SAE Institute SAE Representative SAE Int’l Aerospace Council

March 2015 AAQSC Membership Roles Member / AlternateLiaisonMailing List Definition An individual who directly contributes to the work of the AAQSC, votes on all technical report ballots in a timely manner, and maintains active participation on the AAQSC Alternate - An individual designated by an AAQSC Member, and approved by the AAQSC Chair, to vote in their absence on all AAQSC business An individual that coordinates with parallel activities occurring in the government, other associations, and related SAE Technical Committees, but does not directly contribute to the work of the AAQSC An individual interested in receiving information on AAQSC meetings Privileges Full access to AAQSC private website Voting privileges Can participate on AAQSC teams, sub-committees, or projects Full access to AAQSC private website Does not have voting privileges but can submit comments on document ballots Can participate on AAQSC teams, sub-committees, or projects No access to AAQSC private web site Can participate on AAQSC teams or projects 34

March 2015 AAQSC Procedures for Control & Governance 35 Located in “Committee Work Area” tab on Private web site

March 2015 AAQSC Procedures for Control & Governance 36

March 2015 AAQSC Publications 37 Publications located in “Documents” tab on Private web site

March 2015 AAQSC Publications Documents developed include: –Aerospace Standards (AS), –Aerospace Recommended Practices (ARPs) and –Aerospace Information Reports (AIRs) These documents are published in the Americas by SAE Internationally harmonized documents are numbered 91xx and Americas specific documents are numbered 90xx –Internationally harmonized documents are published in Europe and Asia by various organizations (e.g. ASD, SJAC) 38

March 2015 AAQSC Focus: Standards Lifecycle 39 Project Initiation Project Development Ballot Readiness Ballot Project Proposal 60-Day Dwell Review Decision to Proceed (requires 1/3 member approval) Sponsor and Project Leader Assigned SAE Technical Report Number Assigned Project Team Members identified Project Plate Developed and Approved (requires 51% member approval) Project Number Assigned Project posted on SAE “Works in Progress” Team Reports Progress at AAQSC Meetings Results of the Project are Approved by the AAQSC Project Closure Technical Report is Edited and Approved by Project Leader and Sponsor Technical Report is Submitted to SAE for Ballot AAQSC Chair Approves Readiness for Ballot SAE Posts and Notifies Members of Ballot SAE Summarizes Ballot Results (50% Voting Required; 51% Member Approval) Project Leader receives Results and Dispositions all Member Comments and Disapprovals (Tech Changes require Re-Ballot) SAE Submits for Aerospace Council Ballot Project Leader and Sponsor Approve Final Version AAQSC Chair Approves Readiness to Publish SAE Publishes Project Leader Closes Project Project Team is Disbanded

March 2015 Standards Projects – Works in Process 40 Located in “WIP” tab on Private web site

March Questions? 41