1. Trusted to deliver excellence © 2016 Rolls-Royce plc and/or its subsidiaries The information in this document is the property of Rolls-Royce plc and/or its subsidiaries and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce plc and/or its subsidiaries. This information is given in good faith based upon the latest information available to Rolls-Royce plc and/or its subsidiaries, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc and/or its subsidiaries. Design and Development Quality Plan (DDQP) How To

2. Purpose A DDQP describes the interfaces between the supplier’s design & development organisations and the Rolls-Royce design & development organisations. A DDQP demonstrates equivalence between the supplier’s design assurance system and Rolls-Royce’s design & development requirements (RRES 90009). -The DDQP shall define mitigating actions where these design assurance systems are not equivalent.

3. Process description overview During supplier selection, New Approval Request (NAR), or when identified through risk assessment, suppliers shall be required to develop a DDQP. The DDQP may cover multiple regions, sectors and projects in order to minimise project and/or site-specific variations. Where variations are unavoidable they should be captured in the DDQP. The responsibility for working with a supplier rests with the Rolls-Royce DDQP Lead. It is expected that the Rolls-Royce DDQP Lead will work in conjunction with the supplier in completion of the document. Ownership of the document lies with the supplier.

4. DDQP Criteria (Aerospace Only*) Below is a set of criteria which identifies the type of DDQP required with a particular supplier based upon risk ranking. Risk = Business Exposure x Consequence of component Failure *For non-Aerospace sectors DDQP applicability shall be agreed locally with the applicable Rolls-Royce Sector Engineering Authority. Business ExposureRisk ValueConsequence of component Failure Risk Value High Volume NPI Components (>£5m year spend) 9In-Flight Shut Down9 Low Volume NPI Components 3Unscheduled Engine Removal 5 Legacy Parts1Fix at Next Shop Visit2 Fix on Wing1

5. DDQP Criteria Any Aerospace supplier with a risk of 9 or more, shall require a DDQP to be in place. Where the risk score is below 9 an agreed RRES 90009 DDQP compliance matrix is required. Set of possible Risk scores (Green indicating DDQP required) High VolumeLow VolumeLegacy Parts 81279 45155 1862 931

6. Key inputs & outputs 5. Update or develop a Design & Development Quality Plan Rolls-Royce requests DDQP NAR requires DDQP Risk assessment launches DDQP Agreed & issued DDQP

7. 5.1 Determine design assurance requirements WhoHow 5.2 Determine supplier processes and interfaces How 5.3 Validate supplier processes and approve DDQP How RFx requests DDQP NAR requires DDQP Risk assessment launches DDQP 5 - Agree a DDQP with the supplier Who

8. 5.1.2 Review supplier’s business / scope of approval 5.1.1 Identify key stakeholders and engage 5.1.3 Review supplier’s last engineering oversight audit if available 5.1.4 Determine req’ments applicable to supplier business / scope of approval How To 5.1 - Determine design assurance requirements

9. 5.1.1 – Identify key stakeholders & engage It is important that all stakeholders are informed of the creation of the DDQP to ensure they all have to the opportunity to engage during its creation / approval. Stakeholders should be considered from all regions and sectors and include an effective cross section of the following roles; Chiefs of Quality & Improvement, Purchasing / Engineering Commodity Leads, Supply Chain Management Teams (Buyers, ME-Ps etc), previous / future TODD Auditors. As well as assuring stakeholder engagement in determining the applicable design & development (RRES 90009) Requirements, this step should verify the approval signatories required upon document completion.

10. 5.1.2 – Review supplier’s business / scope of approval A DDQP applies to all engineering activities carried out by a design & development supplier, and its sub-tier suppliers, on behalf of Rolls- Royce. An example DDQP template is available from the SABRe ‘Forms’ section of the Rolls-Royce Global Supplier Portal. The DDQP template used shall be agreed by Rolls-Royce and the supplier. Reviewing the supplier’s current business (commodities / projects) as well as their current approvals not only facilitates determining their applicable design & development (RRES 90009) requirements, but also validates the Rolls-Royce approval codes and that their approval certificate is still correct and applicable. The supplier’s business / scope of approval can be confirmed by contacting your local Regional Regulatory Authority and the applicable Supply Chain Management Team.

11. 5.1.3 – Review supplier’s previous assessment / audit reports The most recent audit report is a useful resource for the development of the DDQP; it references many of the supplier’s processes which need to be declared in the DDQP (see 5.3.1). The audit report is an important part of the DDQP approval process. It provides evidence that the supplier’s processes declared in the DDQP do in fact meet Rolls-Royce’s design & development requirements (RRES 90009). The scope of a previous audit may be an indicator of the appropriate scope of a DDQP. Obtaining the most recent audit report can be done by contacting your local Chief of Quality & Improvement or your region’s Audit Programme Manager.

12. 5.1.4 – Determine requirements applicable to supplier business / scope of approval This is a summation of the information gathered in the previous 3 process steps and is the key output of this stage of the DDQP’s development. Rolls-Royce’s design & development requirements are defined within RRES 90009. Determining their applicability to the supplier’s business / scope of approval is performed at this step. Those applicable requirements are to be captured within appendix 4 of the DDQP.

13. 5.2 - Determine supplier processes & interfaces 5.2.1 Contact supplier and explain process How To 5.2.2 Supplier completes DDQP appendix 4 How To 5.2.3 Supplier completes draft DDQP How To 5.3

14. 5.2.1 – Contact supplier & explain process Upon contacting the supplier the DDQP Lead should take the supplier through the supplier briefing pack within SABRe. The DDQP template shall be shared with the supplier at this time.

15. 5.2.2 – Supplier completes DDQP appendix 4 The following can be used for the evidence required in appendix 4 of the DDQP template : -A compliance matrix as detailed in appendix 4 of the DDQP template available from the SABRe ‘Forms’ section of the Rolls-Royce Global Supplier Portal website. Further guidance is given on the following slides. -TODD (Technical Oversight of Design and Development) questionnaire results. This must have a robust set of responses against each reference including the supplier’s process which covers the requirements subject matter and is intended to satisfy the requirement listed -SCA (SABRe Compliance Audit) questionnaire results. This must have a robust set of responses against each reference including the supplier’s process which covers the requirements subject matter and is intended to satisfy the requirement listed Rolls-Royce data-strictly private Cont...

16. 5.2.2 – Supplier completes DDQP appendix 4 The last 3 columns in appendix 4 are to be completed by the supplier. They record the supplier’s processes which satisfy the requirements determined in stage 5.1 of the DDQP’s development. -Column 3 - ‘Applicable supplier process / procedure / specification title’ This is the supplier’s process which covers the requirements subject matter and is intended to satisfy the requirement listed. -Column 4 - Compliance status Green - Indicates the supplier’s design processes are fully aligned to Rolls-Royce requirements within RRES 90009. Amber - Not compliant, but there is a plan with mitigating actions agreed. Red - Indicates that a procedure is not currently available which satisfactorily meets the requirement as identified in RRES 90009. N/A - Indicates that the requirement is not applicable to the proposed scope of work. Before sending the compliance matrix to the supplier Rolls-Royce will endorse the cell with “Not Applicable” in place of the compliance statement. Cont...

17. 5.2.2 – Supplier completes DDQP appendix 4 In any cases where requirements are not satisfied the supplier is expected to complete column 5 – ‘If not compliant, mitigating actions agreed’.. The supplier should, with reference to RRES90009, satisfactorily complete appendix 4. However, it has been demonstrated that the most effective means of doing this is collaboratively (with the Rolls-Royce DDQP Lead) at a single location, with access to the supplier’s design assurance system. Where this is not possible, a series of Webex sessions can deliver similar effectiveness

18. 5.2.3 - Complete draft DDQP Having completed appendix 4 the supplier shall now complete the rest of the DDQP template. This can include any of the following: -Making any changes to the text to ensure it is applicable to the supplier’s business, product and requirements (Regulator, Customer etc). -Completing the template with the supplier’s company name and the supplier’s employee names where required. -Including appropriate organisation descriptions and diagrams where required -Including the description of any authorities flowed down by Rolls-Royce where required

19. Document stored in accordance with requirements 5.3 - Validate supplier processes & approve DDQP 5.3.3 Agree changes with stakeholders and supplier 5.3.4 Supplier signs and issues DDQP DDQP is satisfactory ? 5.3.2 DDQP stakeholder review How To 5.3.5 Rolls-Royce signs and approves DDQP 5.3.6 Are the processes & actions acceptable ? 5.3.1 Review appendix 4, validate supplier process documents 5.2.2 How To

20. 5.3.1 - Review appendix 4, validate supplier process documents Upon completion of appendix 4, the DDQP Lead should validate that the supplier processes & mitigating actions satisfy the requirements. This can be achieved by using any of the following methods: -During completion of appendix, if the DDQP Lead has direct access to the supplier processes their satisfaction of the requirements can be validated and recorded. -If direct access to the supplier’s processes isn’t possible, the DDQP Lead may review recent audit reports, results and the status of any deficiencies, to validate they meet the requirements. -In the circumstance where the previous two options are unavailable, a desktop audit and sampling of the supplier’s processes shall be performed to validate the processes declared. Successful validation will allow progression to the next stage.

21. 5.3.2 - DDQP stakeholder review -With a draft DDQP completed, the next step is to get feedback from all the stakeholders identified at stage 5.1.1. -This can be performed by inviting comments through e-mail or any other appropriate means. 5.3.3 - Agree changes with stakeholders & supplier -In response to any comments received from the DDQP stakeholders, the Rolls-Royce DDQP Lead shall work with the supplier to effect updates to the DDQP. 5.3.4 - Supplier signs and issues DDQP -When the DDQP updates are completed and accepted, the supplier shall formalise and issue the document in their own document control system. -The supplier shall then sign the document as appropriate and send the hardcopy to the Rolls-Royce DDQP Lead.

22. 5.3.5 - Rolls-Royce sign and approve DDQP -Upon receipt of the signed DDQP from the supplier, the Rolls-Royce DDQP Lead shall issue the hardcopy to the Rolls-Royce signatories for signature. 5.3.6 - Document stored in accordance with Rolls-Royce requirements. -The signed document is stored in accordance with the requirements of the Rolls-Royce (internal) quality management system.