John Lunardi John Lunardi Director, BCA Supplier Quality John Lunardi is the director of Supplier Quality for Boeing Commercial Airplanes (BCA). Is this role he leads a global team of quality professionals with responsibility for regional operations and field support, supplier product verification, airplane program support, and regulatory affairs. John works directly with BCA's domestic and global suppliers to ensure product conformance, system and process compliance, and systemic, continual improvement. He has more than 30 years experience in quality-related leadership positions in a number of quality functions, as well as in Business and Program Management at Boeing. John has a bachelor of science degree in Operations Management from California Polytechnic University, Pomona.

Supplier Quality Overview John E. Lunardi Director – BCA Supplier Quality Boeing Commercial Airplanes July 22, 2015

Boeing Supplier Quality Evolution and Strategy 1999: AS9100 2001: Combined Renton & Everett R&I under SQ 2002: Mandated Nadcap 2002: Mandated ICOP 2010: Common Surveillance Process 2015 Top 13 Things 1990 Early 90s: Inspect Everything Upon Receipt 2000: Initiated BCA / BDS Collaboration 2001: ILHE Instituted 2002: Supplier Code Delegation Implemented 2008: Utilization of Verify 2013: Program Interface 2015 Focus on the process and early engagement Quality ownership earlier in the Value Stream Leverage Other Party Oversight Drive for Industry standardization Collaborate with BDS – one Boeing voice Risk based oversight – reward good suppliers Laser focus on key drivers for escapes Requirements Flowdown and Consumption Sub Tier Supplier Quality Change Management Work Transfers

Boeing Quality Strategy Design and Build Quality Lead the BCA culture of excellence in safety and quality Improve the quality system to enable and ensure process compliance and product conformance Drive elimination and prevention of defects and disruption across the value stream Leadership Value Stream Capable & In-Control Quality System Robust & Efficient Compliance Conformance Culture BCA Value Stream Design Build & Deliver Supply Support Customers Feedback Feedback Feedback Feedback Feedback Customers Continuously Improving to Win in the Marketplace

Improve suppliers’ quality suppliers’ compliance Boeing Supplier Quality System for Managing Supplier Quality The Boeing supply chain quality system is founded on a highly structured “layered approach,” coupled with a closed-loop corrective action system People Systems & Tools Proactive change management Improve suppliers’ quality performance Verify suppliers’ compliance Early SQ involvement Quality in product development Quality Requirements flow down and review Supplier capability assessments QMS approvals First article inspections Source/receiving inspection Onsite assessments Performance monitoring Risk based supplier surveillance Quality Improvement Performance plans Closed loop corrective action Work transfer management Change quality Management

Boeing Supplier Quality Supply Chain Focus Areas Requirements Flowdown and Consumption Sub Tier Supplier Quality Management Change Quality Management Tech workshops in June 2015: Thailand – Pyrometry & NDT Nagoya - Pyrometry & NDT Nagoya – Aluminum & shimming Work Transfer Management

Boeing Supplier Quality Top 13 Things You Can Do To Eliminate Escapes Strong internal process for requirement consumption Mistake proof operations and products Risk-based approach to Change Management “FOD protection” and “Clean as you go” Conduct FAIs against defined engineering Tool Control and Preventative Maintenance

Top 13 Things You Can Do To Eliminate Escapes Ensure a strong internal process for requirements consumption Ensure a proactive, risk-based approach to change management Conduct thorough contract reviews with your suppliers to ensure they understand requirements that are flowed to them Verify processes are in place to ensure work coming from special processors is to the correct specification and that the processors are in good standing Ensure that any products with customer directed planning are clearly identified so that changes are not made without customer approval Ensure FAIs are conducted against the defined engineering – not planning! Ensure your process for identifying delta FAIs for any change affecting form, fit or function is effective Require your suppliers and their sub-tiers to formally notify you of Work Transfers Employ a robust, proactive process for tool control and preventative maintenance Relentlessly pursue standard work - “mistake proof” your operations and products Incorporate both “FOD protection” and a “clean as you go” approach to FOD Ensure strong quality controls over any Operator Verification program Ensure new employees, or employees doing new work, receive the training needed to perform work flawlessly – the first time

Summary Quality is a Team Sport ! Meeting our commitments is extremely important to our customers In service airplane quality is a top priority for Boeing Both are the ultimate measure of product quality This quality includes design, supplier, build, delivery and component quality elements All of these elements are critical to protecting out Production System and preventing in service airplane issues Quality is a Team Sport !

10