IAQG STANDARDS IMPLEMENTATION AT ROCKWELL COLLINS GOALS, BENEFITS AND LESSONS LEARNED I Primus Ridgeway, Jr. Vice-President, Enterprise Product Assurance Rockwell - Collins Inc.

n Rockwell Collins (NYSE:COL) - A Leader In Aviation/Aerospace Advanced Communication, Navigation And Surveillance Electronics For Government And Commercial Applications. We Provide Product To The World's Aircraft Manufacturers And More Than 400 Airline Customers, As Well As The World's Military Forces. We Have Manufacturing Operations In The United States, Europe, Australia And Mexico, And >60 Service Centers And Service Bases Worldwide. — $3.1 Billion in Sales — ~ 15,000 Employees — AS9100, ISO9001, ISO14000, FAA Certified — Headquarters: Cedar Rapids, Iowa

F-18 Flight Deck Weather Radar eTES – Total Entertainment System Flexible Displays Flight Deck Avionics Products and Application JHMCS Joint Helmet Mounted Cueing System

Rockwell Collins Major Locations RC-France RC-UK RC-Australia RC-Deutschland BRS - Melbourne GS (Texas) Flight Dynamics Airshow KE-San Jose KEO – Carlsbad KEP - Irvine ATS GS(Iowa) CAS Intertrade Fab/CPC SCQA SV&V TES AQS&T RC-Cert. Center GS – Comm. Sol. Passenger Systems

TO OLD Maintain Quality Assurance Program That Verifies That The Product Meets The Spec Prior To Ship Manufacturing Oriented NEW Establish A Cost Effective Single Quality Management System That Validates The Effectiveness Of All Business Processes Affecting Quality of ALL Collins Products (HW, SW, Data, Service) Enterprise Oriented RCI’s Quality Management System Evolution ADOPTION OF AERO SPACE STANDARDS IS KEY TO THE TRANSFORMATION

The Business Decision Rockwell Collins Implemented a Single Quality Management System for the Corporation — Based on Full 3 rd Party Certification to AS9100, — Leverage Key Companion Standards such as AS9103 and AS9102 This approach established a single best practice for quality management of key RCI business practices and product acceptance criteria for factory build and repair both in house and all RCI service centers and bases worldwide

AMR Platinum Lockheed Star Select Northrop Grumman Key Plan Etc. Boeing D Airbus ABD 100 Sikorsky SU 2000 ISO 9001:2000 AS 9100:2001 Aircraft Certification Supplier Evaluation Prog. Rockwell Collins Commercial And Military Products Workmanship Standards Repair Standards Modification Standards Common Quality Training Product Acceptance Standards Quality Management System Rockwell Collins Single Quality Management System Certifications Process System QMSProduct IntegrityRockwell Collins Standards Applicability RC-QMS-P-023 RC-QMS-P-022 RC-QMS-P-021 RC-QMS-P-000 QMS Compliance

QMS Focus In The Product Life Cycle Process Stakeholder Pursuit & Order Capture Design & Develop -ment Procure- ment Supplier ControlBuild OEM Install Service & SupportMission/Focus Manufacturing Process n Identify and remove barriers to flow n Develop methods to enable seamless product transitions between factories n Drive focus on improved yield thru critical factory process Life Cycle Value Stream Management Process n Effective implementation and management of QMS System n Drive root cause analysis and C/A for customer returns n Ensure contract, customer and regulatory requirements Engineering Design Process n Develop method to enable seamless product transitions (design-production) n Provide Process Navigation & Mentor Support Supply Base Mgmt Process n Validate performance of purchased parts through RCI product life cycle n Supplier approval certification and corrective action n Product source inspection Enterprise Business Compliance Process Rockwell Collins, Inc. n Establish single quality process in all RCI locations n Validate business process compliance and initiate C/A of at risk business processes n Support Integrated Product Integrity Program Design Quality Eng Quality Control Field Quality Engineering Supply Chain Quality Assurance Programs Quality Management Product Integrity Software Quality Eng System Validation & Verification Advanced Quality Systems & Technology

Continuous Improvement Focus in Design n The Continuous Improvement Focus Of RCI Single QMS Is Identification And Reduction of Process Variability In The Life Cycle Value Stream Of Our Products. In The Design Phase This Means Identification And Management Of Key Process Characteristics n AS9103 Provides An Effective Guide For Application Of Industry Best Practices n For RCI AS9103 provided an effective baseline to attack CoNC in the design Process

CoNC The Ultimate Business Case !!!!! Intangible CoNC! Waste is Difficult to see, calculate, and realize, yet very real! WASTE!$$$$$ Below the Surface! Warranty Rejects (Internal Failures) Non-Standard Modifications ECOs Finished Goods Modifications Consignments Customer Penalty Scrap Losses are Obvious! Service Bulletins MRB Process Inefficiency Excessive Overtime Loss of New Contracts Planning Delays Premium Shipping Costs Excessive Field Service Expenses Loss of Future Customers Unused Inventory Processing Paperwork Unutilized Space Expediting Costs Unnecessary meetings-Time with Customers Pricing Billing Errors Development Costs of Poor Quality Product Handling Managing Corrective Actions Root Cause Analysis Excessive System Costs Overdue Receivables Loss of Company Reputation Re-Test Re-Inspection Test Equipment Wear Lack of Follow-Up on Current Programs Cost Of Non-Conformance (CoNC) Waste is obvious

Component Sub- Assembly Top Level Test Bench Aircraft Test Bench USLLCLUCLLSL CONC $ $ $ AS9103 What is the Benefit Control of Key Characteristics = Variation Reduction = < CONC $$$ USLLCLUCLLSL Component Sub- Assembly Top Level Test Bench Aircraft Test Bench CONC $ $ $ USLLCLUCL Component Sub- Assembly Top Level Test Bench Aircraft Test Bench LSL CONC $ $ $ Prevention Reduce CONC Efficiency Reduce Waste Customer Value Increase Profits Continuous Improvement

AS9103 Encourages Focus on Design and Prevention

Stop Design Induced Defects From Reaching Production CoNC Cost per Defect vs Development Phase $57 $143 $430 $1,433 $4,000 Req'mt DefDesignBOM ReleaseQual TestProduction Source for Defect Cost (Analysis thru Test): Cost Benefits of Software QA Whitepaper, North Carolina State University, Nov 2000 CostDefect Escape Rate ECO CoNC Cost

n IAQG Standards Are A Key Component To An Overall Continuous Improvement Plan n Get Management Support – Define The Business Case — Reducing Cost of Non-Conformance is a good one! n Keep It Simple n Keep It Simple – Use An Understandable Continuous Improvement Model Return-On-Investment. Get Finance Dept To Validate The Savings n Show Return-On-Investment. Get Finance Dept To Validate The Savings n Report Results: Improved Quality, Reduced Costs, Improved Delivery, etc. Advertise Successes! Lessons Learned

n Remember To Address “Social” Issues Of Any Standards Implementation — Is The Business “Focused” On Developing a Best Practice — Are There Unresolved Business Cultural Differences? (Mergers) n Ensure The Foundations Are In Place — Right People, Willingness-To-Change, Commitment, Goals — Strong Communication and Training Plan Other Important Points For Successful Implementation