IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation1 IAQG General Assembly Montréal Marriott Château Champlain Hotel Friday October 7 th, 2005 IAQG Strategy & Initiatives

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation2 The new initiative launched several months ago: The New IAQG Strategy IAQG Strategy & Initiatives

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation3 IAQG Strategy& Initiatives. Table of contents IAQG Strategy Foundations –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 Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation4 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 IAQG Strategy Foundations 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.processes used by the supply chain to deliver consistently high quality products

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation5 IAQG Strategy Foundations - Definitions Supply Chain Processes –That collection of industrial processes which lead to the arrival of 1.the right parts 2.and the right data 3.In the right place 4.At the right time 5.To the right quality standard, 6.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 Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation6 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 IIIIIIIIIIIIIIII IIIIIIIIIIIII AS&D Customers OEM’s Tier 1’s Sub-Tiers Regulatory Authorities EuropeAsia - PacificAmericas Opportunities for leveraged, integrated activity

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation7 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 TimeOn Quality Product Delivery Spares & Services Delivery Parts and Data at all levels in the chain Reduced inventory Continuous Safety Improvement Maturity, Reliability & Cost of Ownership Freedom from Design & Manufacturing defects Reduced Waste On-Time, On-Quality Delivery generates continual reduction On Cost

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation8 IAQG Strategy – 3 Axis Relationship Growth Strategy Civil Authorities Space Defense Suppliers Engineering, Sourcing… Member Collaboration Top Leader Involvement IAQG Operational Efficiency IAQG Operating Management System Improvement Strategy Requirements People Capability Supply Chain Process Capability Production Realisation Process

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation9 ) IAQG Strategy – Process Model Inputs Constraints Outputs Resources (ICOR) CONSTRAINTS RESOURCES Global Supply Chain Process Customer & Business Requirements Regulatory & QMS On-Time On-Quality Delivery People Requirements Product Realization Processl Relationship Growth Civil Authorities Civil Authorities Space Space Defense Defense Suppliers Suppliers Operating System Policy Policy Procedures Procedures Communications Communications Business Unit Individual metrics Supply Chain Supply Chain Process Capability OUTPUTS INPUTS PeopleCapability HumanFactors

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation10 Strategy Focus Streams & Leaders SWG MentorAAQGEAQGAPAQG IAQG Leadership Team*Bill BlackColin ClarkeGuy DionKinsuke Hara  Operating management System John AddeyEd Bayne*John AddeyKazuki Kanai  Improvement Strategy Requirements Guy DionPeter Kern*Guy DionSung Ju Lee Product Realisation Process Tes Aklilu*Joe SikoraJohn CalderKouichi Watanabe People Capability Georg Schrader Larry Kibble Colin Cramp *J-M Bardot Miro Miletic Yutaka Tojo Supply Chain Process Capability Sandy Postel*Barb O'DellCherif KhelilKinsuke Hara  Relationship Growth Strategy Authorities Gary Baker *Ed Bayne Andy Brindisi Georg SchraderHiroyuki Jikei Space sector Gary Baker *JJ DeGiovanni Andrea Reilly Roberto CiaschiKinsuke Hara Defense Gary Baker *Pres Thompson Primus Ridgeway Hans ZiemerHiroyuki Jikei Suppliers Not Launched Accreditation Bodies Not Launched University, Engineering, Sourcing Not Launched

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation11 Strategy Stream – Requirements 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 Establish, Develop, and Maintain Industry Quality Requirements to improve product and process integrity *CSR = Corporate Social Responsibility Hazmat = Hazardous Materials eg ROHS (Restriction Of Hazardous Substances) WEEE (Waste Electrical and Electronic Equipment)

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation12 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 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 Future State  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 Actions Strategy Stream – Requirements

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation13 Strategy Stream – People Capability* 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 Develop the competency of, and support for, those engaged in supply chain processes, in all functions, to deliver continual improvements in OTOQD * Now Includes Human Factors

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation14 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 Future State Mature Products delivered by reliable Processes Highly Skilled workforce at all levels in the supply chain Robustness of Processes with regards to changes Strategy Stream – People Capability Actions

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation15 Strategy Stream – Supply Chain Process Capability 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 Deployment of Global Supply Chain Process standards and guidelines to ensure continually improving OTOQD

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation16 Strategy Stream – Supply Chain Process Capability 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 Deployment of Global Supply Chain Process standards and guidelines to ensure continually improving OTOQD * CMMi = Capability Maturity Model – Integrated

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation17 Strategy Stream – Product Realisation Process 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 Establish and implement proactive product realisation processes to ensure immediate & sustainable OTOQD internally and externally

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation18 Relationship Growth Strategy 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 Working together to develop a single voice on quality related issues…

IAQG Strategy October 7th, 2005IAQG General Assembly - Guy DION Presentation PEOPLE CAPABILITY REQUIREMENTS PRODUCT REALIZATION PROCES SUPPLY CHAIN MANAGEMENT CAPABILITY oQMS MAINT o DATA MINING/LESSONS LEARNED oWEB SURVEY oDEPLOYMENT METRICS oBENCHMARKING oICOP oPRE PRODUCTION APPROVAL PROCESS o9103 – IMPROVED DEPLOYMENT oIMPROVED DEPLOYMENT PROCESS AUTHORITIES ALIGNMENT QMS Re-issue Expand to Airlines & MRO’s Develop & Issue Sub-tier Control handbook DEVELOP SUPPLY CHAIN PROCESS ARCHITECTURE & COLLECT OTHER INDUSTRY BEST PRACTICES Develop Competency Management Process Establish curriculum & network of training and coaching providers worldwide Develop university links Develop Dictionary oPROCESS CERTIFICATION