1. U.S./Europe International Aviation Safety Conference By: Martin Thieringer – TCCA, Roger Simon – EASA, Scott Geddie – FAA Date: June 4, 2008 “Global Safety Management: Revolution or Evolution” Reconciling Organizational Privileges and Aviation Authority Responsibilities Practical Challenges in Global SMS Implementation

2. Reconciling Organizational Privileges and Aviation Authority Responsibilities 2 June 4, 2008 2 Topics Formation of the Joint Cooperation Team on Approved Design Organizations Authority Updates on Approved Design Organization Programs: –EASA Design Organization Approval (DOA) –TCCA Accredited Design Organization (ADO) –FAA Certified Design Organization (CDO) –Similarities and Differences Sample Joint Cooperation Team Issues: –SMS and Design Organizations –Accountability Framework –Authority Involvement –Suppliers and Specialty Service Suppliers

3. Reconciling Organizational Privileges and Aviation Authority Responsibilities 3 June 4, 2008 3 Joint Cooperation Team on Approved Design Organizations Chartered by the FAA/EASA/TCCA Certification Management Team (CMT) in November 2007 Purpose: To create a forum for sharing ideas and plans regarding development and expansion of each authorities approved design organization programs.

4. Reconciling Organizational Privileges and Aviation Authority Responsibilities 4 June 4, 2008 4 Scope Knowledge Sharing –Understanding of each authority’s approach in developing and recognizing approved design organizations –Identify similarities and differences –Lessons learned Areas of Collaboration –Areas where programs can be harmonized –Areas where common terminology, guidance and regulatory language can be used

5. Reconciling Organizational Privileges and Aviation Authority Responsibilities 5 June 4, 2008 5 Scope (cont.) Global implications –Impact of each authority’s approach on partner authorities –Areas that will require international acceptance by partner authorities Share timelines and schedules

6. Reconciling Organizational Privileges and Aviation Authority Responsibilities 6 June 4, 2008 6 Authority Updates on Design Organization Programs

7. Reconciling Organizational Privileges and Aviation Authority Responsibilities 7 June 4, 2008 7 EASA Design Organization Approval (DOA) Program

8. Reconciling Organizational Privileges and Aviation Authority Responsibilities 8 June 4, 2008 8 The EASA DOA " qualified framework " for: –Aviation design –Compliance demonstration with applicable requirements –Discharge of responsibilities set the basis for: –EASA acceptance of statements –Approvals, for certain cases

9. Reconciling Organizational Privileges and Aviation Authority Responsibilities 9 June 4, 2008 9 In other terms: Means to recognise the capability of a design organisation AND Foundation for the exercise of privileges The EASA DOA

10. Reconciling Organizational Privileges and Aviation Authority Responsibilities 10 June 4, 2008 10 Organisation, with the necessary management allocation of responsibilities procedures and resources necessary for the accomplishment of the activities defined in the scope of DOA Qualified framework The EASA DOA

11. Reconciling Organizational Privileges and Aviation Authority Responsibilities 11 June 4, 2008 11 AND... A system that monitors the performance of the organisation and ensures that the need for effective corrective action is identified and carried out. Qualified framework The EASA DOA

12. Reconciling Organizational Privileges and Aviation Authority Responsibilities 12 June 4, 2008 12 Responsibilitie s (21A.265) A Design Assurance System (21A.239) A Handbook (21A.243) Terms of Approval (21A.251 + 21A.263) The RIGHT PEOPLE, in the RIGHT PLACES, with the RIGHT MEANS (21A.243 + 21A.245) The EASA DOA

13. Reconciling Organizational Privileges and Aviation Authority Responsibilities 13 June 4, 2008 13 J DOA PART PRODUCT Type Certificate STCOthers... The EASA DOA

14. Reconciling Organizational Privileges and Aviation Authority Responsibilities 14 June 4, 2008 14 EASA investigation to verify: –Compliance with all applicable Part 21 requirements –Adherence to approved system Audits Practice Compliance Checklist Part 21/ AMC/GM Handbook/ Procedures The EASA DOA

15. Reconciling Organizational Privileges and Aviation Authority Responsibilities 15 June 4, 2008 15 Implementation started before EASA (first DOA issued in 1996) Currently ~235 organisations approved, including: –All TC Holders (exceptions for balloons, airships and sailplanes) –STC Holders –Companies with scope limited to minor changes or repairs Discussions for further development on-going The EASA DOA

16. Reconciling Organizational Privileges and Aviation Authority Responsibilities 16 June 4, 2008 16 TCCA Accredited Design Organization (ADO) Program

17. Reconciling Organizational Privileges and Aviation Authority Responsibilities 17 June 4, 2008 17 TCCA Accredited Design Organization (ADO) Holders of Transport Canada issued operation certificates are required to implement a safety management system (SMS). SMS will be applicable to design organizations (year 2010+). However, existing TCCA delegation system does not provide for: –integration of SMS into design activities; –the accreditation of design organization; and –clear aircraft certification accountability framework.

18. Reconciling Organizational Privileges and Aviation Authority Responsibilities 18 June 4, 2008 18 TCCA ADO  “operating certificate” for design organizations A distinct vehicle is needed to recognize design organizations knowledge and technical capabilities. Best approach is to build on existing expertise gained by 20+ years of delegation principles while clarifying the roles and responsibilities of all stakeholders. “Accreditation” is believed to be the best tool to enable the introduction of a “operating certificate” for design organizations.

19. Reconciling Organizational Privileges and Aviation Authority Responsibilities 19 June 4, 2008 19 TCCA ADO – What it means… TCCA is building a system that will recognize the knowledge and technical capabilities of design organizations – Accredited Design Organization (ADO). Fundamentally, any person may apply for a design approval provided the applicant meets knowledge and technical capability requirements which are function of design approval sought, category of aeronautical product and “ criticality ” or “ risk severity ”.

20. Reconciling Organizational Privileges and Aviation Authority Responsibilities 20 June 4, 2008 20 TCCA ADO – the ABC’ s … A: ADO will … –make determinations of compliance for every applicable airworthiness requirements; and –issue a single declaration of compliance for the design approval sought. B : TCCA will … –make a single finding of compliance; –conduct Project Surveillance through its Level of Involvement (LOI); –conduct System Oversight through SMS implementation. C: A design approval will be issued.

21. Reconciling Organizational Privileges and Aviation Authority Responsibilities 21 June 4, 2008 21 TCCA ADO – some features… ADO may use subcontractor(s) AND is 100% responsible for all compliance determinations for the design approval sought. ADO must have a design assurance system. ADO will be scalable to fit an individual to small, medium, large design organizations. Intent is aligned with EASA’s DOA and FAA’s CDO.

22. Reconciling Organizational Privileges and Aviation Authority Responsibilities 22 June 4, 2008 22 TCCA ADO (the benefits…) TCCA ’ s level of confidence in design organizations holding an ADO certificate would provide for their declarations of compliance to be accepted by the Minister without further verification subject to appropriate TCCA surveillance*. * Project surveillance (LOI) and System Oversight (SMS)

23. Reconciling Organizational Privileges and Aviation Authority Responsibilities 23 June 4, 2008 23 FAA Certified Design Organization (CDO) Program

24. Reconciling Organizational Privileges and Aviation Authority Responsibilities 24 June 4, 2008 24 CDO Authorizing Statute U.S. Congress created the program in 2003 -- Vision 100-Century of Aviation Reauthorization Act Allows FAA Administrator to rely on certifications of compliance by a CDO when making a “finding” to issue a type certificate FAA has proposed changes to extend implementation date from 2010 to 2013, and to encompass production

25. Reconciling Organizational Privileges and Aviation Authority Responsibilities 25 June 4, 2008 25 CDO Aviation Rulemaking Committee (ARC) Chartered in May 2005 for two year period –Membership 15 from industry and industry associations 5 from FAA 1 from TCCA –ARC was free to make any recommendations including those that might require additional statutory changes ARC report submitted to FAA last week –Recommends CDO for TC, STC, PMA and TSOA holders –Includes a proposed NPRM

26. Reconciling Organizational Privileges and Aviation Authority Responsibilities 26 June 4, 2008 26 Principles and Attributes Not a delegation – certificate-based privileges Must be a design approval holder US must be State of Design CDO makes all ‘determinations of compliance’

27. Reconciling Organizational Privileges and Aviation Authority Responsibilities 27 June 4, 2008 27 Principles and Attributes (cont.) A CDO can extend its system into its suppliers allowing them to make ‘compliance determinations’ CDO intended to encompass continued airworthiness of legacy products FAA relies on CDO ‘statement of compliance’ when issuing a certificate or design approval

28. Reconciling Organizational Privileges and Aviation Authority Responsibilities 28 June 4, 2008 28 Principles and Attributes (cont.) Compliance by process rather than by the action of a few individuals at the end of a program CDO requires – –Compliance Assurance System –Quality Management System –Safety Management System –Culture of Compliance FAA approved procedures manual required CASQMS SMS

29. Reconciling Organizational Privileges and Aviation Authority Responsibilities 29 June 4, 2008 29 FAA Level of Involvement Establish cert basis, approve alternate means of compliance, issue exemptions After that, FAA involvement in any program will consist of oversight and audit of the CDO operation FAA may, at any time, and for any reason conduct any certificate oversight it deems appropriate Delegation retained to issue certificates

30. Reconciling Organizational Privileges and Aviation Authority Responsibilities 30 June 4, 2008 30 SMS/QMS (Company) SMS (FAA) Air Agency Repair CDO Concept Model TC STC AW FAA Administrator Approved Data Other Approved Parts Production “Finding” Design “Finding” PC Production CDO Design

31. Reconciling Organizational Privileges and Aviation Authority Responsibilities 31 June 4, 2008 31 Benefits Recognizes a design organization’s system, processes, and capabilities Safety Management System (SMS) in place A catalyst to promote further maturity of the ‘safety cultures’ within FAA and industry Allows FAA to re-focus its resources on: –areas of highest safety risk –developing clear policy and guidance for industry –enhanced role as compliance educator, coach

32. Reconciling Organizational Privileges and Aviation Authority Responsibilities 32 June 4, 2008 32 Benefits (cont.) The creation of “eligible” data Reinforces industry’s responsibility for compliance Industry has greater control over its project costs and schedules Suppliers can be integrated into the process CDO procedures manual replaces FAA Type Certification Order

33. Reconciling Organizational Privileges and Aviation Authority Responsibilities 33 June 4, 2008 33 Similarities and Differences Between DOA, ADO and CDO

34. Reconciling Organizational Privileges and Aviation Authority Responsibilities 34 June 4, 2008 34 Similarities Applicant’s System Product Compliance Greater focus on process management and system oversight Design Organizations responsible for all compliance determinations Authority performs project and system oversight Routine projects require little authority involvement Suppliers can be incorporated with proper oversight Moving to… Agency

35. Reconciling Organizational Privileges and Aviation Authority Responsibilities 35 June 4, 2008 35 Differences Item EASA DOA TCCA ADO FAA CDO Acts as agent for other applicantsYes No Contains provisions to include production No Yes Applicant must be an organizationYesNoYes Declarations of compliance must be accepted by the authority NoYesNo Must be located in country/unionNoYes

36. Reconciling Organizational Privileges and Aviation Authority Responsibilities 36 June 4, 2008 36 Sample Issues Being Addressed by the Joint Cooperation Team

37. Reconciling Organizational Privileges and Aviation Authority Responsibilities 37 June 4, 2008 37 SMS and Design Organizations TCCA –SMS is overarching (mandated by regulation) –Design Assurance elements will complement the SMS requirements FAA –SMS is overarching –Single seamless system likely, but SMS, QMS and Design Assurance requirements are separate EASA –New requirement for Management Systems will be the new basis for organisation approvals to which DOA requirements will be added –Introduces risk based approach to DOA activities and manner in which agency conducts oversight

38. Reconciling Organizational Privileges and Aviation Authority Responsibilities 38 June 4, 2008 38 SMS and Design Organizations Things to consider going forward –ICAO requirements –The relationship between Safety Management, Quality Management, and Design Assurance –Scalability –SMS regulations and oversight –Interface points between the authority and the SMS of an approved design organization –Alignment of design organization SMS requirements with other SMS facets of the company

39. Reconciling Organizational Privileges and Aviation Authority Responsibilities 39 June 4, 2008 39 Accountability Framework Applicants have a regulatory obligation to:  Use means of compliance acceptable to the Authority  Show that their designs are compliant Design Approval Holders have an obligation to:  Maintain compliant designs with no unsafe features Authorities promote Aviation Safety by …  Issuing regulations  Specifying the certification basis  Providing guidance regarding acceptable means of compliance  Overseeing compliance  Taking enforcement actions as necessary  Issuing certificates and approvals; and  Mandating corrective action as necessary

40. Reconciling Organizational Privileges and Aviation Authority Responsibilities 40 June 4, 2008 40 Accountability Framework TCCA – Framework originated with TCCA – Provides the foundation of stakeholder responsibilities – Serves as the basis for any program undertaken FAA –Slight deviation from TCCA version –CDO ARC included it in proposed NPRM EASA –Will evaluate TCCA version, taking into account responsibilities allocated by community laws

41. Reconciling Organizational Privileges and Aviation Authority Responsibilities 41 June 4, 2008 41 Accountability Framework Things to consider going forward –Working toward a common definition –Impact of individual country laws, regulations, or agency polices, in defining our views of the Accountability Framework –Significant implications, if any, resulting from our differences

42. Reconciling Organizational Privileges and Aviation Authority Responsibilities 42 June 4, 2008 42 Post CertComplianceConcept Ongoing system oversight based on risk management indicators Project System COS Issue Certificate Trend monitoring Post-project reviews Determine cert basis Special conditions Exemptions Project shadowing/oversight Authority Involvement

43. Reconciling Organizational Privileges and Aviation Authority Responsibilities 43 June 4, 2008 43 Authority Involvement Topic: –To what extend the Authority is involved in product certification? Two main domains: –Obligations (e.g., development of cert basis, means of compliance, issue certificates…) –Involvement in compliance determination (witnessing of tests, verification activities…) Discussion on impact of CDO/ADO/DOA on involvement in compliance determination

44. Reconciling Organizational Privileges and Aviation Authority Responsibilities 44 June 4, 2008 44 Authority Involvement Things to consider going forward –Impact of individual country laws, regulations, or agency polices, on our view of LOI –Significant implications, if any, resulting from our differences

45. Reconciling Organizational Privileges and Aviation Authority Responsibilities 45 June 4, 2008 45 Suppliers EASA –Integration of suppliers in DOA already defined –Chartered working group to investigate granting sub- tier DOA to suppliers Limited scope of privileges Concept exists under production system for POA Prime has ultimate responsibility for continued airworthiness TCCA/FAA –ADO/CDO can extend its system into suppliers allowing them to make ‘compliance determinations’ –No plan to introduce sub-ADO/CDO for suppliers

46. Reconciling Organizational Privileges and Aviation Authority Responsibilities 46 June 4, 2008 46 Specialty Service Suppliers Consideration of authority recognition of suppliers of specialized services to the aviation industry –Have unique expertise and testing capability –Supply to multiple applicants Examples –Flammability labs –Materials labs –Environmental and HIRF/Lightning test facilities

47. Reconciling Organizational Privileges and Aviation Authority Responsibilities 47 June 4, 2008 47 Specialty Service Suppliers EASA –Open to possibility of recognizing suppliers of specialty services –Sub-tier DOA would be applicable, if specialty service supplier has the capability to make compliance determinations TCCA/FAA –Open to possibility of recognizing suppliers of specialty services (e.g. test laboratories) –No plan to introduce sub-ADO/CDO for any suppliers

48. Reconciling Organizational Privileges and Aviation Authority Responsibilities 48 June 4, 2008 48 Suppliers Things to consider going forward: –International implications –Competition driving need to ensure a ‘level playing field’ –Impact on safety –Alignment with Accountability Framework –Establishing a basis in regulation –Authorities/Industry role in Oversight –Responsibility for compliance –What is the resulting product – ‘compliance determination’, ‘recognized data’ or something else? –Establishing standards and requirements

49. Reconciling Organizational Privileges and Aviation Authority Responsibilities 49 June 4, 2008 49 Questions?