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Global Standards for a Global Industry

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1 Global Standards for a Global Industry
ANSI/SAC Symposium May 30, 2007 Laura E. Hitchcock Standards Strategy and Policy The Boeing Company Chair, The Strategic Standardization Forum for Aerospace

2 Why the Aerospace Industry Cares About Standards…
The Aerospace Industry is the most data (and standards) intensive industry Standards form part of the product definition data used to define, manufacture, certify, operate and support aerospace products Standards have a defined mission: Standards are the single largest source of data used in the design, manufacture, operation, and support of aerospace products. 39% of all Engineering Data and 38% of all Manufacturing data comes directly from standards. Standards ensure that quality airplanes can be built from parts and materials that come from suppliers found all over the world. Standards ensure that an airplane that leaves New York in the morning and lands in Paris, Moscow or Beijing the next day functions safely, is serviced reliably and that the whole infrastructure that supports that plane (refueling equipment, the jet-ways and ramps the passengers use, the baggage systems) all function seamlessly and smoothly. And when we introduce new technology -- stronger materials, improved entertainment systems, environmentally friendly de-icing fluids, standards ensure that these improvements are captured and communicated quickly throughout the aviation industry and down through the supply chain. In short, every time you fly, your life depends on reliable global standards. Thousands of aircraft, move hundreds of thousands of people and millions of dollars of goods, around the world safely and reliably each day because of global standards. Interoperability & interconnectivity Reliability, repeatability, quality Safety and certification Mechanism for change Supply chain management

3 Examples of Specifications and Standards Used by Aerospace
Product Part Material Process Design Drafting Avionics Crew Systems Lighting Electronics Propulsion Configuration Mgmt Operations Tooling Equipment Design IT Applications User Interface Middleware Delivery Systems Security & enterprise systems mgmt Internal Company Industry Quality Testing Inspection ISO 9000 Metrology Standards Developers Facilities Building & Construction Electrical Codes Utilities Asset Acquisition Government Consortia Customer/ Product Support De-icing Ground vehicles Fuel APUs Reliability/ Maintainability Payloads When we talk about standards for the aerospace industry, we mean more than just parts or material standards, and more than just quality standards. We mean the entire world of standards and specifications used to define not just our products, but to define and maintain the entire aerospace infrastructure. All these different kinds of standards and more are needed to create our products, engineer our factories and process, and support the global operation and maintenance of our aircraft “International” Business Operations Finance HR Labor Electronic Commerce Supplier Management ES&H Health Safety Environment Noise Emissions

4 Aerospace Industry Uses Standards Developed by Many Models
Company – Program Unique Company – Corporate Standard Company – Supplier Company – Customer Team - Project Mil-Specs Industry Trade Association National Regional UN-Treaty (ICAO) ISO/IEC/ITU Criteria for All Models… Standards that are: A Boeing C-17 Military Transport jet contains 9 Million parts and a commercial 747 almost as many. Every one of those parts, the materials used to make them, test them and install them are defined by standards. That’s a lot of standards. Many of those standards are Boeing standards. In fact, the Boeing company is one of the largest standards developers in the world – with almost 200,000 standards. But we use many more standards developed by others. Boeing uses standards developed by over 150 different standards developing organizations. US Military and NATO specifications, industry standards from international organizations such as SAE, ASTM and IEEE, as well as standards developed by organizations which are based on national votes such as ICAO – the International Civil Aviation Organization or ISO. We even use standards developed by computing or information technology consortia such as W3C or Oasis. And every other aerospace manufacturer uses this wide variety of standards. But regardless of which organization develops our standards they have certain things in common: they are technically valid, globally relevant for use, acceptable for reference in national or regional regulations of required, and promote the safety of the public and the environment. The aerospace industry selects standards to use in designing or manufacturing of products based on these criteria first, not on the business model or organization used to develop the standard. Technically valid Globally relevant Primarily performance-based Acceptable for reference in national or regional legislation for Regulatory purposes if necessary Value-adding for both the consumer and society (e.g., ensure safety and preserve the environment) Current with developing technology Consortia - Closed Consortia - Open

5 Standards Vital to Design, Build & Support Processes
Customer, Regulatory Agency and Boeing Requirements Geometry Tooling Planning Analysis Certification Materials Purchase Processing Inspection Subcontracting Spares Inspection and Repairs Maintenance Refurbishment Type Design Certificate Build Production Certificate As the single largest source of technical data used in aerospace products, standards are a critical part of what we call product definition data – all the information needed to define one of our products. The regulatory agencies grant a Type Design Certificate for a new model of aircraft based in large part on the standards used in the design. Standards also define the manufacturing processes, the tooling, testing, and inspection procedures, and a great deal of the manufacturing data needed to produce the aircraft which will comply to the design data. The regulatory agencies grant a Production Certificate, again based on the standards used to build the product. And finally, every operator (airline, military agency) must continue to maintain the aircraft using those same standards which were a part of the product definition data and the production data in order to maintain an Airworthiness Certificate and continue to operate the craft. Support Airworthiness Certificate

6 Industry -- The Beginning and End of the Standards Value Stream
Intellectual Property Technical Expertise Technical Requirements Intent to Use Aerospace products are so complicated and safety and quality are so important, that industry needs to stay directly involved in the development of the standards which define our products. Industry is at the beginning and end of the standards value stream. Only industry can best define the technical requirements for their products. And they do so through standards. Even if those requirements must respond to a customer, government or regulatory requirement, industry has to be there to define exactly how to meet those requirements. Also, industry representatives have the most technical expertise and experience to help articulate technical requirements in standards. The standards developing organization provides a neutral forum for bringing together all the stakeholders in standardization and they manage the consensus process. They then become the guardians of the outcome of that consensus process, which we call a standard. They publish the standard and distribute the standard through many different means (paper, electronic) and they manage any changes to the standards in a strictly controlled environment. But unless industry uses a standard it has no life. All the work that a standards organization does and all the effort that the industry volunteers provide is wasted if the design authorities, for aerospace the Original Equipment Manufacturers (OEMs) don’t choose the standard for the design or manufacture of their products. That’s why it’s so important that the standards involve industry and be relevant to industry if it is to be used. Manage the Consensus Process Standards Administration: Publication Distribution Configuration Management Use

7 Successful Companies Require Successful Standards Strategies
Companies and Industries need business strategies to succeed Standards are becoming an important part of those strategies Once thought of as just technical documents, the business side of standards is becoming strategically important Global companies, and those supplying to global industries, benefit from strong, pro-active standards strategies and standards management The aerospace industry builds the most complex and amazing products in the world today. But like any industry, our business has to have strategies to respond to internal, external, economic, and political drivers. Standards used to be thought of as just technical documents. But our industry is realizing just how critical standards are to our business and to trade. So we’re beginning to develop standards strategies that will support our business strategies and act as key enablers for our business. The aerospace industry has been awesome at developing technical standards for the last one hundred years. We’re beginning our second century by looking at how to be equally proficient at standards strategies to leverage our excellence in creating technical documents. The aerospace industry spends a significant amount of money on standards. Managed well, it’s an investment; without management, it’s an expense. - Future of Aerospace Standardization Report, 2003

8 Global Standards are not just International Standards
Globally Recognized – all stakeholders around the world acknowledge the standard’s technical accuracy and relevance Globally Accepted – all regulatory agencies and customers around the world recognize the standard as meeting applicable requirements Globally Used – all stakeholders use the standard One of the most important standards strategies for aerospace is the development and use of Global standards. Notice I use the term “global standard” rather than “international standard”. The aerospace industry differentiates between a “global standard” and an international standard -- which refers to standards which are balloted based on one country-- one vote (these would be standards developed by organizations such as the International Civil Aviation Organization (ICAO), the International Air Transport Association (IATA), NATO, or ISO and IEC. But a global standard is one that is recognized globally -- all the stakeholders around the world recognize it as accurate and relevant; Accepted globally – all regulatory agencies and customers recognize the standard as meeting the applicable requirements; and Used globally – all stakeholders (or at least the vast majority) use the standard. In our industry we have US Military Standards (which no industry member or other country can vote on), which are used on every single commercial aircraft in the world – including those made by Airbus and Embraer. They are truly global standards, not just for military products, but for all commercial aircraft. They are recognized, accepted and used throughout the industry and using these Mil-Specs does not make a product a military product, nor does it impact export control. These are simply the best technical documents for their applications. And there are some ISO standards that very few aerospace companies use. So again, a global standard has to do with use and acceptance, not which organization developed the standard Global standards and regulations are critical to the efficient operation of the global aviation system and international markets Final Report of the Commission on the Future of the United States Aerospace Industry, 2002

9 A Recent Aerospace Position Paper Supports Global Standards and Encourages Selection and Use of Best Standards The Standards for Technical Excellence Position Paper developed by the Strategic Standardization Forum for Aerospace and released by the US Aerospace Industries Association... Recognizes the broad range of global, international, industry, military and company-unique standards used by the aerospace industry Encourages global participation in the development and use of standards Does not exclude or promote one source of standards over another for consideration in the design/build/support of aerospace products Acknowledges the importance of standards as critical sources of technical data for aerospace Is intended to encourage those national bodies (governmental, trade, and defense) who are writing standards policies to adopt policies which allow the aerospace industry to continue to develop and select standards as they currently do -- based on technical merit Because the concept of global standards is so important to the aerospace industry, and because we have always chosen the best technical documents, wherever they could be found to design, manufacture, and operate our products, the Strategic Standardization Forum for Aerospace recently issued a public position paper advocating the need to continue this practice. This position paper recognizes that broad range of standards used by aerospace – standards developed by many different models and many different organizations (Boeing uses standards from more than 150 different standards organizations). The purpose of this paper is to encourage any entity writing standards policies or legislature to not restrict the selection of standards to just a few organizations and to allow the aerospace industry to continue to develop and select standards based on technical merit. The safety and reliability of our products depends on our selecting the best standards.

10 Quality – A Global Industry Effort
A cooperative organization of the global aerospace industry Uses existing infrastructures Includes over 64 of the largest members of the aerospace industry Regional sectors coordinate requirements for quality standards and the results are harmonized by the IAQG Globally harmonized standards are published simultaneously by each of the sponsoring organizations Global standards are so important to aerospace that they developed very successful global standardization model for the Aerospace Quality Management System. The International Aerospace Quality Group is formed of three regional sections which pull together and harmonize requirements at the international level to create a single, world-wide quality system for aerospace. The IAQG Defines the quality system for aerospace industry Using ISO as a base, they add aerospace expectations and unique aerospace requirements, including the regulatory and Civil Airworthiness Authority considerations The IAQG publishes the aerospace set of quality documents which Define the “what” – not “how to” Published jointly in Europe, Americas & Asia-Pacific, these documents reduce variation across the supply chain Over 64 major aerospace companies across 3 global sectors participate in the IAQG System and product integrity initiatives are worked in Co-operation, consultation and communication with: customers across all sectors of business partners and suppliers airworthiness authorities The IAQG is truly an organization of global co-operation IAQG members agree to use standards the resulting standards internally and to flow requirements to their suppliers – and implementation is tracked! One voice Minimized variation Shared resources Reduced waste 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. Standards are developed/ revised in less than 12 months Members have signed commitments to implement Implementation statistics are tracked

11 Global Standards are used in Regulations and Government Policies
The use of global voluntary consensus standards, whenever practicable and appropriate, by Governments and Regulatory Agencies can achieve the following goals: Eliminate the cost to governments of developing their own standards and decrease the cost of goods procured Reduce the cost of compliance to multiple standards and facilitate harmonization between regulatory agencies Provide incentives and opportunities to establish standards that serve global industry needs Encourage long-term growth for global enterprises by promoting efficiency and economic competition through harmonization of regional requirements Further encourage governments to rely upon the private sector to define standards which will protect the safety of the public and the environment while promoting strong industrial growth Because aerospace is such a highly regulated industry, it’s important that our standards strategies include ways to work with the regulatory agencies and the government agencies that certify and, in the case of governments or ministries of defense, often buy, our products. Voluntary consensus standards are a win-win for industry and government. They provide a common place for industry and governments to agree upon the best technical solutions and allow for global harmonization of requirements – independent of any one agency or region. This is critical for aerospace since our products don’t stay still in any one location for very long. Voluntary consensus standards – especially global standards – are the most cost effective and efficient way for an industry to cooperate with all stakeholders to create the kind of standards that will protect safety and quality while at the same time encouraging innovation and growth. Global industry standards organizations such as ASTM International, SAE International, ARINC, IEEE, etc., work closely with government and regulatory agencies around the world which serve the aerospace industry to ensure that the standards they help facilitate enable the design, manufacture and operation of safe, reliable aircraft.

12 Aerospace Industry Goals for Global Standardization
Increasing use and adoption of global standards developed by the entire global industry through multiple venues and many different standards organizations Increasing cooperation with government and regulatory bodies to encourage regulations that reference voluntary consensus standards and conformity assessment programs Increasing participation in global standards development and conformity assessment activities by all stakeholders (government, industry, standards developers, and consumers) Increasing standards development in accordance with the WTO-TBT criteria: Transparency, Openness, Consensus, Due Process Standards and conformity assessment programs which are increasingly globally relevant, responsive to real world needs, and performance-based Because aerospace standards are so important for the global certification, sale and safe operation of aircraft, the aerospace industry works cooperatively in multiple industry venues to develop these standards. And while aerospace companies still develop many company proprietary standards, once the business case is made to use a standard developed outside the company, then the goal is to have a standard that is used and accepted as widely throughout the industry as possible. Conflicting national or regional standards increase the costs of certification, reduce the number of available suppliers, and raise the costs of materials and parts. And similarly, multiple certification and conformity assessment schemes add cost, but little added value. That’s why the International Aerospace Quality Group has been so successful in reducing costs around the world for the industry. Therefore the aerospace industry encourages all interested stakeholders to resist creating duplicative standards infrastructures and to increase participation in those existing venues which meet the WTO criteria for standards development.

13 SUMMARY Global Participation in Standards Activities by Industry Benefits Everyone… Ensures the most efficient & effective use of industry resources and talent Seeks to develop standards with organizations that Offer the broadest inclusion of all stakeholders Facilitate direct industry participation Provide the most cost-effective processes Deliver the most easily accessible standards Protects and promotes the business interests of a company by aligning standards strategies to support business strategies Allows for Quality systems to be fully supported and integrated throughout the supply chain Guarantees that standards function as enablers for business not as barriers to trade As was stated in a 2005 Report on the Future of Aerospace Standardization, The Aerospace Industry spends a significant amount of money on standards. Managed well, it’s an investment; without management, it’s just an expense. Participation in Global Standards offer a company or an industry the opportunity to make the most efficient and effective use of resources. By involving all the relevant stakeholders, industry can ensure standards that are value-added and globally accepted. Strategic use of standards can support critical business objectives and tactics. And standards strategies can set forth policies and procedures to establish broad-reaching systems, such as those for Quality, or can quickly disseminate new and emerging technologies throughout an industry and its supply chain. Good standards strategies can ensure that standards function as enablers for business and thus can act as the fuel and the engines for future growth and success of a company, an industry or a nation. Thank you. Global Industry Standards – enablers for future growth and success


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