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 Going to talk about whats probably the most visible part of the IAQGs work- its initiatives, particularly the documents it produces You may be aware of the Standards that the IAQG produces but the IAQG also produces Guidelines Many of the initiiatives to produce these documents start off as global activities, others start within one of the IAQG sectors and then move to become world wide documents.

‘In Quality and Safety there’s no competitive advantage’ 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…” ‘In Quality and Safety there’s no competitive advantage’

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 IAQG initiatives are also aimed at adressing these common areas for improvement Third Party assessment bodies tell us that Supplier Control …… Attendees at General Assembly meetings like today tell us that Variability …. And the Authorities tell us that we need a step change ……

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

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

Six Areas for Focused Improvement 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

Implementation Timing 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 Improve 9133 9103 Operating Level Cert Operator Self-verification Done 2D Marking 9132 9162 Process Capability 9104 Doc Ret 9130 9110 9009 < 6 months Defense 9135 9120 9114 Sector Schemes 9102 Industry managed Other Party Process > 6 months or study 9107 9013 Maintain 9100 9131 Size implies scale of payoff Contract Clauses Direct Ship Deliverable Software 9006 Ad hoc Direct Delivery Authorization Sampling Plans Current Near Term Longer Term Implementation Timing Aligned

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). I’m sure the best known IAQG Standard is EN 9100 It’s worth mentioning that the 9100 Standards have been translated into numerous different languages for example- American (wait) Korean Portugese Chinese Sets the standard

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 I’m sure the best known IAQG Standard is EN 9100 It’s worth mentioning that the 9100 Standards have been translated into numerous different languages for example- American (wait) Korean Portugese Chinese

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. A couple of the earlier Standards produced were the first two on this list …. An update to 9102 is currently being produced to reflect the experience of using the earlier version, to provide guidance material and to take account of First Article Inspections for 3D digital models More recently EN 9103 was produced ……. All of these Standards are examples of Standards that may not be used by every Company but that provide ‘best practices’ for any Company to use. 9133, the last Standard on this sheet is an example of a Sector approach in this case the qualification of Standard parts produced by AECMA Cert, being harmonised into a global approach.

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 Internal Audit is an interesting initiative. Initially it was thought we needed an aerospace Internal Audit Standard but when we looked at ISO 190011 we found that it covered nost of what was needed so we decided to use the ISO and to add the Product and Process audit aerospace specific requirements into the next update of EN9100 The work on Software Quality Standards is being lmed by ALENIA and builds on a European Technical Requirement- TR 9109 to see if these two American Standards can be nerged into another global best practise. Very similar is the work on NDT training rerquirements, looking to merge these two European and American documents.

Operator Self Verification - AS9162 – at publication People Capability Operator Self Verification - AS9162 – at publication Harmonisation of Global NDT requirements for Personnel training; EN4179/NAS410 - published Product risk and safety management is an initiative that we’re looking at with our Space friends to put an aerospace flavour to the ISO 17666 Standard. Direct Ship (airline to OEM to Supplier, OEM being responsible for conformance) and Direct delivery (airline to supplier without any OEM involvement, the Supplier being responsible for conformance) are two current initiatives. Similarly the storage and retrieval of digital 3D model data and Operator self approval. These three take work originally carried out within the American sector and harmonise it to make it useable world wide

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. Product risk and safety management is an initiative that we’re looking at with our Space friends to put an aerospace flavour to the ISO 17666 Standard. Direct Ship (airline to OEM to Supplier, OEM being responsible for conformance) and Direct delivery (airline to supplier without any OEM involvement, the Supplier being responsible for conformance) are two current initiatives. Similarly the storage and retrieval of digital 3D model data and Operator self approval. These three take work originally carried out within the American sector and harmonise it to make it useable world wide

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

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

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 Product risk and safety management is an initiative that we’re looking at with our Space friends to put an aerospace flavour to the ISO 17666 Standard. Direct Ship (airline to OEM to Supplier, OEM being responsible for conformance) and Direct delivery (airline to supplier without any OEM involvement, the Supplier being responsible for conformance) are two current initiatives. Similarly the storage and retrieval of digital 3D model data and Operator self approval. These three take work originally carried out within the American sector and harmonise it to make it useable world wide

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

‘In Quality and Safety there’s no competitive advantage’ 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. ‘In Quality and Safety there’s no competitive advantage’

Implementation Timing 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 Improve 9133 9103 Operating Level Cert Operator Self-verification Done 2D Marking 9132 9162 Process Capability 9104 Doc Ret 9130 9110 9009 < 6 months Defense 9135 9120 9114 Sector Schemes 9102 Industry managed Other Party Process > 6 months or study 9107 9013 Maintain 9100 9131 Size implies scale of payoff Contract Clauses Direct Ship Deliverable Software 9006 Ad hoc Direct Delivery Authorization Sampling Plans Current Near Term Longer Term Implementation Timing Aligned

‘In Quality and Safety there’s no competitive advantage’ Strategy Leaders Review - An Integrated Strategy IAQG purpose: 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 Strategy framework to achieve the purpose: Integrated Roadmap of Prioritised Initiatives: ‘In Quality and Safety there’s no competitive advantage’

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

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

Questions?