1. Page 1/18 October 15, 2004Beijing General Assembly Forum IAQG Expectations Kinsuke Hara Director - Quality Mitsubishi Heavy Industries, Ltd Nagoya Aerospace Systems

2. Page 2/18 October 15, 2004Beijing General Assembly Forum About MHI JDA （ Fighter ） JDA （ Helicopter ） JAXA （ロケット） Boeing （ 777 ） Bombardier （ GX ） ＭＨＩ MH2000 Photo by JAXA Main Products Sikorsky(S-92) Airbus(A330/A340) Location Headquarter (Tokyo) Nagoya Aerospace Systems (Nagoya) JDA : Japan Defense Agency JAXA : Japan Aerospace Exploration Agency

3. Page 3/18 October 15, 2004Beijing General Assembly Forum Implement initiatives that make significant improvements in Quality and reduction in cost, throughout the value stream, by establishing and maintaining dynamic cooperation, based on trust, between international aerospace companies IAQG Purpose

4. Page 4/18 October 15, 2004Beijing General Assembly Forum

5. Page 5/18 October 15, 2004Beijing General Assembly Forum Supply Chain around MHI Supply Chain around MHI MHI JapannationalprojectsForeignCustomer projects projectsMHIownprojects JDAJAXAOperatorsOEMs suppliersuppliersuppliersupplier Customer MHI Supplier (domestic : 550, Foreign : 300)

6. Page 6/18 October 15, 2004Beijing General Assembly Forum Therefore, MHI supports IAQG initiatives adopts them internally (June 18, 2002 : JIS Q 9100 certified) and deploys their implementation to suppliers Deployment of IAQG Initiatives Global standards & regulations are essential for efficient operations in the global aviation system and market

7. Page 7/18 October 15, 2004Beijing General Assembly Forum IAQG standards implementation – –9100 – –9102 – –9103 Special Process certification are (will be) deployed to MHI Suppliers Deployed Initiatives

8. Page 8/18 October 15, 2004Beijing General Assembly Forum MHI mandates its suppliers to : Establish and maintain Quality Management System based on JIS Q 9100 (*) to all companies relating aircraft manufacturing, including engineering, trading, transporting * : Japan national standard, equivalent to AS/EN 9100 Cascade the requirement to their sub-tiers 9100 Implementation

9. Page 9/18 October 15, 2004Beijing General Assembly Forum MHI 9100 approval system MHI Quality Requirement “MSJ4000” “MSJ4000” 1.QMS Requirement 2.Interface to MHI internal Procedure Rejection tagRejection tag Change NotificationChange Notificationetc 9100 9001 9100 third party certification is not mandatory, is not mandatory, but highly recommended. but highly recommended. 9100 certified suppliers No QMS audit is performed by MHI. 9100 certified suppliers No QMS audit is performed by MHI. 9001 certified suppliers Only the 9100 – 9001 gap contents are audited by MHI. 9001 certified suppliers Only the 9100 – 9001 gap contents are audited by MHI. other suppliers other suppliers MHI audits full contents of 9100 based QMS MHI audits full contents of 9100 based QMS

10. Page 10/18 October 15, 2004Beijing General Assembly Forum MHI requires its suppliers to : Implement First Article Inspection in accordance with 9102 requirement Implement Key Characteristics Control in accordance with 9103 requirement IAQG Standards

11. Page 11/18 October 15, 2004Beijing General Assembly Forum MHI plans to require its suppliers to : Obtain & Maintain PRI Nadcap certificationObtain & Maintain PRI Nadcap certification MHI is a Board member of PRI, so, MHI is investigating the best NADCAP deploying way by expressing its opinion on a worldwide stage from the view point of Asia/Pacific OEM. Special Process

12. Page 12/18 October 15, 2004Beijing General Assembly Forum MHI Procurement Policy Fair and Just procurement Fair and Just procurement Quality products procurement with good cost and delivery Quality products procurement with good cost and delivery Collaboration with excellent suppliers Collaboration with excellent suppliers

13. Page 13/18 October 15, 2004Beijing General Assembly Forum SQRAM (*) : 88 Registration / Rating : all (850) MHI supplier-related activities Announce MHI procurement policy for major suppliers Awarding ceremony * : Supplier Quality Re-engineering Assessment Managing Support suppliers’ quality improvement activity Supplier Council : 210 (For domestic suppliers)

14. Page 14/18 October 15, 2004Beijing General Assembly Forum Engineering supplier : 15 Raw material supplier : 5 Equipment supplier : 35 Bach-shop : 33 Joint meeting : share each quality activities and cultivate synergism Individual meeting : support each company’s quality improving activity MHI supplier-related activities SQRAM (Supplier Quality Re-engineering Assessment Managing) SQRAM (Supplier Quality Re-engineering Assessment Managing)

15. Page 15/18 October 15, 2004Beijing General Assembly Forum MHI participates the “Association for the Study of Failure”, which is lead by Dr. Hatamura. In accordance with the idea of the ASF, MHI considers the failure knowledge utilization is efficient, and then practices an activity to share knowledge Not only internally but also including its suppliers. MHI supplier-related activities Quality Knowledge Sharing Quality Knowledge Sharing

16. Page 16/18 October 15, 2004Beijing General Assembly Forum MHI establishes on-line processing system (Initiation ~ Disposition ~ Rework instruction), not only internally, but also involving suppliers by using internet. Transacting time and quality have been improved, and Transaction for similar non-conformance becomes convenient. MHI supplier-related activities on-line Rejection Tag on-line Rejection Tag

17. Page 17/18 October 15, 2004Beijing General Assembly Forum MHI global contribution Working together with IAQG, as one of leading members as strategy team, to step ahead on setting new standards measuring results driving improvements through real collaboration and for the benefits of the whole aerospace industry and stakeholders! Also, expands MHI activities to foreign suppliers

18. Page 18/18 October 15, 2004Beijing General Assembly Forum Thank you !