Supply chain Progress towards Aeronautical Community Excellence 11/10/2017 Supply chain Progress towards Aeronautical Community Excellence SPACE An Independant and a non-profit Association focused on: -  European industry, - Small and medium companies 1

Missions Develop world class standards for supply chain performance improvements based on « C.I.D » i.e Corrective - Improvement – Development referential Support mainly small and medium companies for implementing C.I.D projects at their facilities Improve SC skills by providing training solutions and coaching to its members and developing experience sharing Benchmark SC performances using KPIs coming from members Organize communication network within its members on risks and other various subjects of interest and provide an information hub

A non profit association of aeronautical entities SPACE members Associate Members Executive Members Associate Members On board aeronautic product suppliers Willing to improve their industrial & Supply Chain performances A non profit association of aeronautical entities Executive Members Dedicate skilled resources to implement common supplier development action plans Honorary Members Honorary Members Professional organizations willing to support and promote this initiative

Environment, global supply chain improvement & risk management… 11/10/2017 Supply chain performances have to improve Global costs of acquisition have to decrease Ramp up increases the risk Environment Ramp up $/€ Perfomances Improve the whole Supply Chain performance by collaborative actions Reduce risks on Supply Chain (increased with ramp up) Decrease global Cost of acquisition Ease sub-tiers life (one action face to one supplier)

Plan of common CID actions Establish Entitlement Organization CID Referential Training Plan of common CID actions Resources Sharing practices CID projects Sales CSR Mfg QC Ship Critical Measures and Goals 16 8 14.7185 11.4481 Capability Plot Process Tolerance Specifications StDev: 0.54507 I 14 13 12 Capability Histogram Process Capability Establish Entitlement GOAL l As Is Should Be Competitive Advantage ($$$$) KPI’S Benchmark CID compliance Qualification Experts from executive members Why and how Improve industrials KPI’S (Quality, delivery) Ease sub tier's life (one action face to one supplier) Develop Corrective Improvement Development standard & skills Share skilled resources to improve SC

Usual strengths and weaknesses Situation our Supply Chain (Quality:97%, Delivery:70%) Usual strengths and weaknesses Lack of strong planning (tier-1 flow down) 5. Limitated preventive actions 3. Weak supply chain monitoring 4. Non efficient physical organization 2. No flow management

Services for Associate members 11/10/2017 SPACE services Services for Associate members The Members can also benefit from ….. Trainings To increase skills for suppliers and tier-1 experts Planning function APICS certifications (3 days) Quality 6sigma green belt certification (9 days) Lean lean green belt certification (4 days) Improvement tools ½ day specific trainings 12 months : 50 APICS trainings (60% tier-1 experts / 40% suppliers) 60 MRPII 1 or 2 day trainings (100% suppliers) 7 Page 7

SPACE 18 months activity SPACE implementation and suppliers selection 1,5 year activity : 30 commitments –– 25 launched projects OTD +30% Average OTD : 63% Returns : 30 000 ppm Average OTD : 83% Returns : 15 000 ppm Returns -50%

When people lead to success First results – French electronics When people lead to success Déc 06 Fev 07 Mar 07 May 07 dec 07 Plan d’action Roadmap ANALYSIS DESIGN Implementation phase Work package 1 Demand management Work package 2 – QA & Lean management Work package 3 – Operational management KOM Work package 4 Suppliers & purchasing COPIL July 07 sept 07 Follow up phase march 08 nov 07 oct 07 2008 supplier Action Plan Follow up Thales Expert Messier-Bugatti Airbus Thales/Airbus experts End 2006 End 2007 Variation End 2008 03/20009 Raw materrial inventory NC -11% -20% Work In Process -24% -18% Suppliers critical delays 200 9 -96% 10 +11% 0% Deapth of delay (days) 15 5 -66% 4 Suspended Works orders (shortage) 250 110 -56% 80 -27% 100 +25% Customer service level 64% 84% 31% 90% 7% 92% 2% Schedule adherence 62% 88% 42% 5% 93% 1% S&OP adherence NA 97% 100% 3% Page 9

Master Production Schedule First results – Italian small equipments When methodologies support progress Efficient Master Production Schedule MRPII training OTD Problem solving methodologies Returns Page 10

When capacity is managed First results – French castings When capacity is managed Input/output control Bottleneck identification Rough-Cut Capacity Planning OTD Available-To-Promise 11

Objectives 2010 Push Projects push : maintain number of projects around 30 develop in UK develop in Germany Pull Projects develop with regions Training 2 groups BASICS 2 groups Lean 2 groups 6s CPIM project management

As a CONCLUSION After more 1 year : processes are in place and SPACE is operational Such a type of cooperation is new in our industry. This will help our suppliers to address the current and difficult situation, we must be strongly supported,SPACE has to carry on its development in Europe to implement robust fondation. To day, Space works with the fees and resources from executive members: 1.1M€ We need to boost the process to better support our European SME industries For that: We need to develop our capacities : budget x 2 - training in the methodological tools - increase number of experts - share industrial progress, our goal is twice as fast.

Appendix 14

Pilot study results: Customer returns: Automotive: Customer Returns: Unit: p.p.m. (Parts Per Million) Definition: total quantity of unacceptable products rejected by the customers during the last three months and acknowledged as such by the Supplier, divided by the total quantity of components delivered to all customers during the same period, multiplied by 1 million.

Pilot study results: Customer delivery achievements: Automotive: Unit : % - percentage Definition : total quantities delivered on-time* during the last three months, in acceptable quality, divided by total number of “lines of order” supplied during the same period, multiplied by 100. On-time = +2 days to -7 days of the due date.

Pilot study results: Added Value per employee: Automotive: Unit : K€/person Definition : sales value of all products manufactured excluding trading, less cost of raw materials, purchase of components and overheads for the year, divided by the total number of employees including interim and temporary hired people.

Pilot study results: Turnover per employee: Automotive: Unit : K€/person Definition: sales value of all products manufactured excluding trading, divided by the total number of employees, including interim and temporary hired people.

Pilot study results: Cost of waste: Automotive: Cost of Waste, Scraps & Reworks: Unit : % - percentage of Turnover Definition: total annual costs of internal waste, scrap & internal rework divided by the total annual cost of goods sold, excluding trading, and multiplied by 100.

Pilot study results: Supplier under evaluation: Automotive: no information Supplier under evaluation: Suppliers under evaluation : Unit : % - percentage Definition : Number of suppliers under evaluation* divided by total number of suppliers. * OTD and/or quality achievement of their own suppliers

Pilot study results: Inventory turns: Automotive: Inventory Turns: Unit: number Definition : Annual cost of goods sold divided by the appropriate value of total inventory (raw materials, work in-progress and finished goods). This indicator should be calculated on a calendar year basis i.e. from 1st January to 31st December. All products owned or controlled should be taken into account even if they are not physically located on-site e.g. consignment stocks held at customers.

Pilot study results: Space Utilization: Automotive: Space Utilization: Unit : K€/m² Definition: Annual cost of goods sold divided by the total production floor space including all storages and production offices areas, but excluding specialist R&D facilities. period,

FREYSSINET – Diagnostic – COMPANY SPIDER Freyssinet Aéro Equipment S.A.S Zone des Massiès 81800 COUFFOULEUX – France Phone : (33) 05 63 33 79 20 – Fax : (33) 05 63 33 85 38 Contacts: Philippe PARSOIRE (PDG) DIAGNOSTIC October 30th, 2008 René COLIN (SPACE) David LOMBARDI (RATIER FIGEAC) STRENGTHS Sales, master scheduling and sequencing . Contract requirement flow down Order management and logistics Manufacturing, process control, inspection Control of non-conformities, corrective and preventive actions WEAKNESSES Supply sourcing selection and approval Supplier operational management and product validation Planning of product realisation BASELINE MAIN CUSTOMERS OBJECTIVES OTD average 85% OTD 95%

FIGEAC AERO- monthly project report May 19th, 2009 COMPANY MAIN EVENTS OF THE PERIOD Figeac Aero ZI de l’Aiguille 46100 FIGEAC tel. 05.65.34.52.52 contacts: Jean-Claude MAILLARD (PDG) – Didier ROUX (DP) SPACE Gérard CLIQUET +33 6 80 16 81 13 Pierre PRETE +33 6 20 63 23 43 Pascal FOLIOT +33 6 78 60 03 70 René COLIN +33 5 61 31 07 66 Planning : All PNs added in the MPS for hard metal production. 35% of the assembly parts under MPS. Manufacturing : Beginning of the “Cadre 42” VSM – Current state drawing. Suppliers : Improvement process launched. Non conformities : no progress due to resources unavailability. Assembly layout : Karman lean event action plan follow up. NEXT STEPS MAIN OBJECTIVES Planning : More PNs to be added – Implementation of the Windev tool. KANBAN implementation for large size machines. Manufacturing : Current State validation on “Cadre 42”. Suppliers Management : Resources and alert process workshop to be launched. Classification to be updated and pilot suppliers to be validated. Non Conformities : Planning and resources allocation to be redefined. Assembly layout : Lean event action plan follow up and physical layout implementation preparation. Planning : anticipate capacity requirements Manufacturing : develop lean concepts Suppliers management : improve control Non-conformities : develop root cause analysis structured methodology PERFORMANCE RESULTS ACTIONS PLAN / WORKSHOPS PROGRESS Planning : regular progress on the MPS (April 09 : 91% of MPS adherence for machining, 100% of MPS adherence on assembly). Manufacturing : VSM and KANBAN methodology appropriation on progress. Suppliers Management : Processes defined, to be now tested with pilot suppliers. Non Conformities : no progress in the last month. Assembly layout : very good participation and appropriation of the different team working on Strategic processes to be adapted. RISKS / COMMITMENT/SUPPORT REQUIRED Crisis effect might affect level of resources and involvement.

ESKULANAK - monthly project report MAI 2009 COMPANY MAIN EVENTS OF THE PERIOD Eskulanak : 05 59 70 20 00 Mikel Charriton (General Manager,) Bertrand Carpuat ( Supply Chain Manager) Space : Guillaume Bissez 05 61 35 25 69 ,Mathieu Trenit 05 67 19 26 28 -Calculation of OTD in place -5S : training completed , 5S audit process in place in all areas -pull flow mangement : clips : standardization of fixed bactch size -MPS training performed MAIN OBJECTIVES NEXT STEPS -OTD : 95% -5S -Transfert and Implementaion of lean management in new facility -reduction of lead time -reduction of WIP - pull system generalisation -Development of SOP process -Development of MPS process -OTD : root cause analysis of late items -Raw material management: kanban labels data to update -general lead time : reduction of 1 week more if confident in raw material management -Pull flow : Clips family : to extend standardization of operation sheet( number of operations, fixed and optimized batch size, lead time, packaging) , reduction of 3 days lead time in june(contouring operation) -MPS to extend to hight flow items : to buid a progress schedule -5S: ckecking , review of internal audits PERFORMANCE RESULTS General OTD calculated on last 4 months 5 S : 210 people trained Results are visual Lead time: -reduction of general lead of one week (10%) (by reducing security lead time of 1 week) Pull flow : clips family : batch size fixed on 30 p/n (preparation to pull flow): savings on : programming operation , raw material…. Raw material : management parameters calculated and updated ( reduction of shortage) ACTIONS PLAN / WORKSHOPS PROGRESS OTD: to dispach to management 5S : to check if internal audit applied raw material : parameters updated (fixed batch size, level of minimum stock): shortage supervision MPS : extend number of P/N (high flow) Pull flow : clip family : extend number of p/n to standardize ( management parameters) RISKS / COMMITMENT/SUPPORT REQUIRED