An Overview International Aerospace Quality Group General Assembly – Montreal 7 October 2005 Bill Black IAQG President EADS

7 Oct 2005 IAQG Gen Assy Global Approach to Improvement Over 50 major aerospace companies across three global sectors Over 50 major aerospace companies across three global sectors Improvement through fewer, simpler standards and practical support for implementation Improvement through fewer, simpler standards and practical support for implementation Initiatives driven with constancy of purpose Initiatives driven with constancy of purpose Co-operation, consultation and communication with: Co-operation, consultation and communication with: partners and supplierspartners and suppliers regulatory authoritiesregulatory authorities customerscustomers ….. across all sectors of business Where quality and safety are concerned there is no competitive advantage

7 Oct 2005 IAQG Gen Assy A Global Team International Aerospace Quality Group IAQG Council General Assembly Forums APAQG (Asia) AAQG (Americas) EAQG (Europe) 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 Whose purpose is:

7 Oct 2005 IAQG Gen Assy A Unique Model of Co-operation Americas The Boeing CompanyThe Boeing Company BombardierBombardier EmbraerEmbraer GE TransportationGE Transportation Goodrich CorporationGoodrich Corporation GulfstreamGulfstream Honeywell AerospaceHoneywell Aerospace Lockheed MartinLockheed Martin Northrop GrummanNorthrop Grumman OrbitalOrbital Parker AerospaceParker Aerospace RaytheonRaytheon Rockwell CollinsRockwell Collins Rolls-RoyceRolls-Royce TextronTextron United Technologies Corp.United Technologies Corp. VoughtVought PRIPRI SAESAE Asia AVICAVIC Aviation Industries of ChinaAviation Industries of China Fuji Heavy IndustriesFuji Heavy Industries HdHHdH Ishikawajima Harima Heavy IndustriesIshikawajima Harima Heavy Industries Kawasaki Heavy IndKawasaki Heavy Ind Korea Aerospace IndKorea Aerospace Ind Korean Air AerospaceKorean Air Aerospace Mitsubishi Heavy IndMitsubishi Heavy Ind Shin Mayawa IndShin Mayawa Ind SJACSJACEurope AirbusAirbus ALENIAALENIA Alenia WestlandsAlenia Westlands AvioAvio BAE SystemsBAE Systems Dassault AviationDassault Aviation EADSEADS EADS – CASAEADS – CASA EADS MilitaryEADS Military EurocopterEurocopter HeganHegan Hispano-SuizaHispano-Suiza Israel Aircraft IndustriesIsrael Aircraft Industries Messier-BugattiMessier-Bugatti Messier-DowtyMessier-Dowty MTU Aero engineMTU Aero engine Rolls-RoyceRolls-Royce SAAB AerospaceSAAB Aerospace SAFRANSAFRAN Smiths IndustriesSmiths Industries Stork Fokker AerostructuresStork Fokker Aerostructures SonacaSonaca SukhoiSukhoi Europe – Continued Thales Avionics Thales Avionics Turbomeca Turbomeca Volvo – Aero Volvo – Aero PFW PFW Zodiac Zodiac ASD ASD

7 Oct 2005 IAQG Gen Assy Good Progress achieved so far Senior industry executive participation makes the process credible and actionable Senior industry executive participation makes the process credible and actionable International cooperation driving forward deliverables that can be implemented globally International cooperation driving forward deliverables that can be implemented globally A real opportunity for the supply chain: A real opportunity for the supply chain: Safety and quality improvementSafety and quality improvement Waste and cost reductionWaste and cost reduction Consistency and clarity of approach, requirements and documentationConsistency and clarity of approach, requirements and documentation Reduction of multiple oversightReduction of multiple oversight A Global business requires Global solutions

7 Oct 2005 IAQG Gen Assy 9100 – Aerospace Quality Management System Standard cornerstone of our initial focus 9100 – Aerospace Quality Management System Standard cornerstone of our initial focus Defines “what” – not “how”Defines “what” – not “how” Published jointly in Europe, Americas & Asia-PacificPublished jointly in Europe, Americas & Asia-Pacific Reduces variation across the supply chainReduces variation across the supply chain Complementary standards for Complementary standards for Maintenance and Repair Stations – 9110Maintenance and Repair Stations – 9110 Distributors/Stockists – 9120Distributors/Stockists – 9120 Setting the standards Quality System Standards Quality System Standards – based on ISO

7 Oct 2005 IAQG Gen Assy ….. standards to action Checklists for auditors , , Checklists for auditors , , Industry Controlled Other-Party (ICOP) oversight program for consistent implementation – 9104 Industry Controlled Other-Party (ICOP) oversight program for consistent implementation – 9104 RegistrarsRegistrars AuditorsAuditors TrainingTraining Supported by a web hosted database (OASIS) Supported by a web hosted database (OASIS) Improving quality performance and reducing costs

7 Oct 2005 IAQG Gen Assy …and product integrity Requirements to directly raise product integrity  First Article Inspection – 9102  Variation Management of Key Characteristics – 9103  Non-conformance Management – 9131  Data Matrix Quality Requirements for Parts Marking – 9132  Harmonized NDT Personnel Qualification – NAS410  Global Supplier Risk Management – 9134  Operator Self Verification – 9162  Other work in progress – software, direct shipment & delivery, operator self verification, sampling plans… Agenda for change, pursued with constancy of purpose

7 Oct 2005 IAQG Gen Assy Implementation Status IAQG members agree to use standards internally and to flow requirements to suppliers IAQG members agree to use standards internally and to flow requirements to suppliers One voiceOne voice Minimize variationMinimize variation Shared resourcesShared resources Reduced duplication and wasteReduced duplication and waste...levels of implementation exceed 90% and rising exceed 90% and rising

7 Oct 2005 IAQG Gen Assy Relationship Growth Strategy Civil Authorities Space Defense Suppliers Engineering, Sourcing Improvement Strategy Requirements People Capability Supply Chain Process Capability Product Realisation Processes Strategic Drivers Member Collaboration Top Leader Involvement IAQG Operational Efficiency IAQG Operating Management System

7 Oct 2005 IAQG Gen Assy Authority / Industry Partnership Airworthiness Authority and industry executives working together to assure: Airworthiness Authority and industry executives working together to assure: Parts can be manufactured anywhereParts can be manufactured anywhere Move quickly and seamlessly to the end userMove quickly and seamlessly to the end user Are supported by electronic documentationAre supported by electronic documentation One authority action for each counterpart industry actionOne authority action for each counterpart industry action Agenda to GloballyEnhance Agenda to Globally Enhance Airworthiness and Safety

7 Oct 2005 IAQG Gen Assy Industry Partnership with Space Agency and industry executives working together Agency and industry executives working together to develop a single voice on quality-related issues to develop a single voice on quality-related issues Initial deliverable is to address space industry Initial deliverable is to address space industry needs in next issue of 9100 needs in next issue of 9100 Space representatives invited to join Sector 9100 Space representatives invited to join Sector 9100 writing teams writing teams Incorporation of agreed requirements expected Incorporation of agreed requirements expected during next major 9100 update in approx 2008 during next major 9100 update in approx 2008 Working to Enhance Quality Globally, and beyond

7 Oct 2005 IAQG Gen Assy Engagement with the Defense Community Coordination with NATO on AQAP’s (Allied Quality Assurance Publications) Coordination with NATO on AQAP’s (Allied Quality Assurance Publications) Involvement of national defense organizations in sector activity Involvement of national defense organizations in sector activity Recognition of IAQG standards as suitable for defence procurement Recognition of IAQG standards as suitable for defence procurement

7 Oct 2005 IAQG Gen Assy Industry Benefits… Focus on the complete supply chain and stakeholders Focus on the complete supply chain and stakeholders True global cooperation and harmonization True global cooperation and harmonization Higher quality products at reduced cost Higher quality products at reduced cost Fewer customer-unique documents Fewer customer-unique documents Open sharing of “Best Practices” Open sharing of “Best Practices” Rapid consensus & deployment Rapid consensus & deployment Reduced variation & duplication Reduced variation & duplication … Across Aviation, Space, and Defense

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