The Initiatives of the International Aerospace Quality Group

The Initiatives of the International Aerospace Quality Group (IAQG) Presentation updated based on the meetings in Amsterdam – 25 -28 April Steve Shepherd (Rolls-Royce plc) European Sector Leader

Aimed at meeting our focus and objectives: • “. . . continuously improve the processes used by the supply chain to deliver consistently high quality products. . . ” • “… common aerospace quality standards and requirements…” • “… process of continuous improvement at suppliers…”

Take note of known areas for improvement: • Audits - “Supplier Control” is a significant issue • Variability in the process often lies with the primes • Global Safety - needs a step change in performance

Our response is to • See the aerospace industry as a global one • Develop common Standards, processes etc – Share/extend best practices – Consistent with Airworthiness requirements – Harmonised positions between Authorities • Use common implementation methodologies • Use common quality standards world-wide • Evaluate the impact & value + Fit with our emerging Strategy

Strategic Focus Relationship Growth Strategy • • • Civil Authorities Space Defense Suppliers Engineering, Sourcing. . Improvement Strategy • • • Quality Mgt System Process Capability People Capability Human Factors Subtier Supplier Control • Evaluation IAQG Operating Management System • Member Collaboration • Top Leader Involvement • IAQG Operational Efficiency

Six Areas for Focused Improvement • Requirements (Quality Management System) • Value Added Standards & Guides • Process Capability • Supplier development & product introduction • People Capability • Staff & the quality professional • Human Factors • ‘human factors’ guidelines and glossary • Sub tier Supplier Control • Industry wide increase in control through globally harmonized Standards • Evaluation • Visibility of quality performance & performance metrics

Initiatives to Fulfill the Strategy - Maintain – Improve - Innovate l 3 D Data Storage Sub. Tier Control ? Human 9300/ Risk Factors 9034 Management l For Suppliers 9134 l Improve Performance Metrics Evaluation 9005 Cert 9133 9103 Quality 9132 Management 9110 9130 Doc Ret System 2 D Marking 9135 Defense Maintain Operating Level Strategic Trend Harmonization of Tech Specs 9120 9102 9162 9009 9114 9107 Direct Ship Direct Delivery Authorization Current 9006 People Operator Self. Capability verification Publishing Done 9104 Process Capabilit y 9013 9131 9100 Non-deliverable Software Longer-term view Greater emphasis on innovation Greater total system payoffs Deliverable Software Near Term < 6 months Sector Schemes Industry managed Other Party Process Contract Clauses Sampling Plans Longer Term Implementation Timing > 6 months or study Size implies scale of payoff Ad hoc Aligned

Requirements - Quality Management System • 9100 - International Aerospace Quality Standard incorporating airworthiness and industry requirements. – Based on and aligned with ISO 9001 -2000 – Adds ‘aerospace’ expectations – Defines ‘what’ not ‘how to’ • International implementation ‘other party’ management process developed (9104) supported by the OASIS database • Common questionnaire (9101) • Aerospace requirements will be unchanged until the next ISO 9000 revision (2008). Sets the standard

Requirements - Quality Management System • Defence requirements (NATO) covered in 9135 • Space requirements to be incorporated at next revision of 9100 • Quality System Standards/checklists developed and published for repair stations (9110/11) and stockist/ distributors (9120/21) • Qualification of Standard Parts; 9133 ~ international methodology • Internal Audit - Use new ISO 19011

Process Capability • First Article Inspection; 9102 ~ improves on current individual company requirements and uses common documentation. Note – FAI Training material available on the web – 40, 000 hits in 4 months • Variation Management of Key Characteristics; 9103 ~ a rigorous approach to ensure repeatable, capable manufacturing processes.

Process Capability • Direct Shipment – 9114 – at publication • Direct Delivery Authorisation – 9107 – at publication • 2 D permanent part making standard - marking, reading & validation; 9132 published – updated to reflect the latest technologies • Software Quality Standards – New standards in production by AAQG; • AS 9006 for deliverable s/w - published • ARP 9005 for non-deliverable s/w • Sampling Plans; AAQG - ARP 9013 – at publication

People Capability • Operator Self Verification - AS 9162 – at publication • Harmonisation of Global NDT requirements for Personnel training; EN 4179/NAS 410 - published

Sub-tier Supplier Control • Supplier Control in a Global Environment; • Supplier Risk Assessment – Guideline published - 9134 • Non-conformance documentation; 9131 ~ common documentation for concessions/ waivers and escapes/disclosures.

Special Processes - Policy The IAQG support the need for Special Processes to be Certificated through an industry controlled system in accordance with individual customer/supplier requirements.

Special Processes - Policy Benefits of Global Approach • Get worldwide recognition with a single accreditation • Improve the quality level of special processes performed by industry processors • Reduce for the suppliers, the time and workload in receiving Special Process audits • Reduce for each Prime the working load of performing Special Process audits which are performed once for all customers of a supplier • Future Intent - Make progress in harmonization of technical standards and audit practices

Other Activities • 3 D Data Storage and Retrieval; ARP 9034/EN 9300 in production and harmonisation though 2006 • EN 9130 – Document Retention – to be updated with global requirements and subsumed under the Requirements Strategy

Initiatives metrics Implementation status (updated 27 April ’ 05) – 9100 Quality System: Supplier deployment - 90% • – • Internal deployment - 92% • • – 9102 First Article: Supplier deployment - 69% Internal deployment - 74% 9103 Key Characteristics: • Supplier deployment - 46% • Internal deployment - 62% Note – numbers impacted by increasing membership

New Strategy Proposals - agreed for launch 1. Product introduction process - 1 year programme The current process (9103) does not emphasise process control and supplier development prior to production. This initiative will study the current aerospace process and other industry processes to aid the development of a new process. This will include current production moving from in-house to supplier and supplier-to-supplier 2. Benefits and use of 9103 - 6 month programme Reasons for slow take-up have been studied to help develop a benefit case and training package 3. Supply chain management standard/guide An overarching document is needed to standardise the supply chain management methods used in our industry including the process for assessing our supplier’s ability to select and manage their suppliers 4. Glossary of terms Human Factors programmes require communication elements including a good understanding of terminology. An aerospace terminology glossary or dictionary of quality terms used by the IAQG will be progressively developed 5. Reference model for IAQG metrics Obtain from the OEMs how they measure supplier’s performance in order to create a reference model to be utilized. This action aims to establish a common language to be used by the OEMs.

Initiatives to Fulfill the Strategy - Maintain – Improve - Innovate l 3 D Data Storage Sub. Tier Control ? Human 9300/ Risk Factors 9034 Management l For Suppliers 9134 l Improve Performance Maintain Operating Level Strategic Trend Harmonization of Tech Specs Metrics Evaluation 9005 Cert 9133 9103 2 D Marking People Operator Self. Capability verification 9132 9162 Requirements 9104 9130 Doc Ret QMS 9110 9009 Process 9135 Capabilit Defense 9120 9114 y 9102 9107 9013 9131 9100 Direct Ship Direct Delivery Authorization Current 9006 Deliverable Software Near Term Non-deliverable Software Longer-term view Greater emphasis on innovation Greater total system payoffs Publishing Done < 6 months Sector Schemes Industry managed Other Party Process Contract Clauses Sampling Plans Longer Term Implementation Timing > 6 months or study Size implies scale of payoff Ad hoc Aligned

Strategy Leaders Review - An Integrated Strategy IAQG purpose: 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 IAQG Strategy framework to achieve the purpose: Integrated Roadmap of Prioritised Initiatives:

Good Progress…. • A tremendous opportunity for us all- Operators and Airframers. • The whole Supply Chain will benefit from– – – Safety and quality improvements Waste and cost reductions Consistency and clarity of approach, requirements and documentation – Reduction in multiple oversight audits – Improved relationships

Good Progress…. Very strong international co-operation and determination to drive forward Still lots more to do!!!

Questions?