1. 22 October 2010IAQG General Assembly York UK October 20101 International Aerospace Quality Group (IAQG) General Assembly 22 October 2010

2. IAQG General Assembly York UK October 20102 A Global Team International Aerospace Quality Group IAQG Council General Assembly Forums AAQG (Americas) EAQG (Europe) APAQG (Asia & Pacific) Achieve significant performance improvements in Quality, Delivery, and consequently Cost, on all products and services throughout the value stream Whose mission is to:

3. 22 October 2010IAQG General Assembly York UK October 20103 Objectives Establish commonality of aviation, space and defense quality systems, “as documented” and “as applied” Establish and implement a process of continual improvement to bring initiatives to life Establish methods to share best practices in the aviation, space and defense industry Coordinate initiatives and activities with regulatory/government agencies and other industry Stakeholders

4. 22 October 2010IAQG General Assembly York UK October 20104 Mission Achieve significant performance improvements in Quality, Delivery, and consequently Cost, on all products and services throughout the value stream –Through the establishment of effective prevention oriented practices and processes –By standardizing Requirements, providing Process Guidelines and spreading Best Practices –By introducing a Culture of Quality as early as possible in the value stream thus reducing the cost of poor quality –Through establishing and maintaining dynamic cooperation between international Aviation, Space and Defense companies

5. 22 October 2010IAQG General Assembly York UK October 20105 5-Year Vision Product and Services Quality and Delivery will have improved 20% per year throughout the product lifecycle Robust processes achieved throughout the supply chain (Supply Chain Management Handbook Maturity Level 3 or better) IAQG Quality Management System certification program is robust, recognized and valued 90% of the supply chain certified to IAQG Quality Management System Standards

6. 22 October 2010IAQG General Assembly York UK October 20106 2010 Action Plans Product and Services Quality and Delivery will have improved 20% per year throughout the product lifecycle –Standardize On Time and On Quality Delivery definitions –Collect data and publish aerospace supply chain performance indexes –Benchmark –Increase Industry Controlled Other Party (ICOP) performance by improving the Other Party Management Team (OPMT) surveillance efficiency –Advance IAQG internal efficiency by improving the Operating Management System (OMS) performance –Drumbeat / Speed –Establish Improvement Strategy Stream to focus on Premium Capability

7. 22 October 2010IAQG General Assembly York UK October 20107 2010 Action Plans Robust processes achieved throughout the supply chain (Supply Chain Management Handbook Maturity Level 3 or better) –Continue to develop content for the Supply Chain Management Handbook (SCMH) –Increase awareness of the SCMH to help improve supplier processes –Pilot the SCMH Maturity Model at companies in all three international sectors –Update SCMH Maturity Model based on the results of the pilots

8. 22 October 2010IAQG General Assembly York UK October 20108 2010 Action Plans IAQG Quality Management System certification program is robust, recognized and valued –Update the 9104/1/2/3 series standards »Incorporate lessons learned »Address identified failure modes –Develop sanctioned Aerospace Experienced Auditor training »Linked to 9100/9110/9120:2009 transition –Improve ICOP effectiveness metrics –Communicate Value Proposition

9. 22 October 2010IAQG General Assembly York UK October 20109 2010 Action Plans 90% of the supply chain certified to IAQG Quality Management System Standards –IAQG member companies identify eligible suppliers for 9100 certification –IAQG member companies draw up 9100 certification action plan for suppliers Communicate the requirement to the supplier Require an implementation plan from the supplier Follow-up and support the supplier certification process Periodical replies to certification deployment survey –Issue IAQG Mission / Vision position paper to supply chain –Communicate 9100 certification value proposition IAQG member companies and supply chain Measurement Targets 2010 60% 2011 70% 2014 90%

10. 22 October 2010IAQG General Assembly York UK October 201010 Organization Relationship Growth Strategy Communications Strategy Working Group Leadership Team Council Improvement Strategy Finance Operating Management System Other Party Management Requirements Product and Supply Chain People Capability President Americas Sector Leader (AAQG) Europe Sector Leader (EAQG) Asia Pacific Sector Leader (APAQG) Voting Members from each Sector Civil Authorities – Production Space Defense Maintenance, Repair & Overhaul Trade Associations SWG Leader, President, Sector Leaders, Leaders from Communications, Operating Management System, Finance, Other Party Management, Relationship Growth Strategy, Requirements, Product and Supply Chain Improvement, People Capability, Performance, Integration Team, and Secretary Performance

11. 22 October 2010IAQG General Assembly York UK October 201011 Council Americas (AAQG) Boeing Bombardier GE Aviation Goodrich Corp. Honeywell Lockheed Martin Northrop Grumman Raytheon Textron United Technologies Europe (EAQG) Airbus Airbus Military Alenia BAE Systems EADS Astrium EADS Defence and Security Rolls-Royce SAAB Aerospace SAFRAN Zodiac Aerospace Asia Pacific (APAQG) AVIC Fuji Heavy Industries IHI Kawasaki Heavy Industries Korea Aerospace Industries Mitsubishi Heavy Industries

12. 22 October 2010IAQG General Assembly York UK October 201012 IAQG Membership - Americas ATK Aveos Ball Aerospace Boeing+ Bombardier*+ Embraer GE Aviation+ General Dynamics/Gulfstream Goodrich Corporation+ Honeywell+ Lockheed Martin+ Northrop Grumman+ Parker Aerospace Raytheon+ Rockwell Collins Rolls-Royce Spirit AeroSystems Textron+ Triumph Group United Technologies+ * AAQG Sector Chair Sponsor: SAE International (SAE) + Voting Member

13. 22 October 2010IAQG General Assembly York UK October 201013 IAQG Membership - Europe Advanced Electronics AgustaWestland Airbus+ Airbus Military+ Alenia+ Avio BAE Systems+ Dassault Aviation EADS Astrium+ EADS Defence+ ELBIT Systems Eurocopter RAFAEL Rolls-Royce+ SAAB Aerospace+ SAFRAN+ SAGEM SNECMA SONACA Sukhoi Thales Avionics Turbomeca Volvo Aero Zodiac Aerospace*+ Fokker Aerospace GE Aviation Systems HEGAN Hispano-Suiza Israel Aerospace Ind Liebherr-Aerospace MBDA Meggitt Messier-Dowty MTU Aero Engines PFW Sponsor: Aerospace and Defense Industries Association of Europe (ASD) * EAQG Sector Chair+ Voting Member

14. 22 October 2010IAQG General Assembly York UK October 201014 IAQG Membership - Asia Pacific AIDC AVIC+ Boeing Aerostructures Australia COMAC EGAT Fuji Heavy Industries+ IHI+ Indonesian Aerospace Kawasaki Heavy Industries*+ Korean Aerospace Industries+ Korean Air Aerospace Mitsubishi Heavy Industries+ SMIC Sponsor: Society of Japanese Aerospace Companies (SJAC) * APAQG Sector Chair+ Voting Member

15. 22 October 2010IAQG General Assembly York UK October 201015 General Assembly The General Assembly meets 2x year and provides a communications forum with the Aerospace community worldwide to allow them to be briefed and to comment upon IAQG activities and initiatives The General Assembly forum provides input to the IAQG Council’s priorities and objectives All representatives of the Aerospace community are eligible to participate in IAQG General Assembly meetings Upcoming IAQG Meeting: –New Orleans, LA USA - May 2011 (No General Assembly)

16. 22 October 2010IAQG General Assembly York UK October 201016 Relationship Growth Strategy Civil Authorities - Production Space Defense Maintenance Repair & Overhaul Trade Associations Improvement Strategy Requirements People Capability Product & Supply Chain Improvement Performance Operating Management System Other Party Management Team Integration Team IAQG Strategic Focus

17. 22 October 2010IAQG General Assembly York UK October 201017 Improvement Strategy Stream Requirements –Establish, Develop, and Maintain Industry Quality requirements to improve product and process integrity People Capability –Develop the competency of, and support for, those engaged in Supply Chain processes, in all functions, to deliver continual improvements in On Time On Quality Delivery (OTOQD) Product & Supply Chain Improvement –Develop and deploy standards and guidance materials to continuously improve On Time, On Quality Delivery (OTOQD) throughout the supply chain Performance –Provide objective data demonstrating the excellence performance and continual improvement of the whole aviation, space and defense supply chain

18. 22 October 2010IAQG General Assembly York UK October 201018 Relationship Growth Strategy Civil Authorities - Production –Working together with the international airworthiness authorities to enable local design, production and certification with global acceptance International Space Forum –Working together to achieve standards and a certification scheme that can be effectively and efficiently used by space organizations Defense Relationship –Coordination with NATO and defense organizations to adopt simpler, common standards Maintenance, Repair & Overhaul (MRO) –Working together with industry towards recognition of IAQG standards and effective industry use, application, and certification to improve aviation safety, product quality, and efficiency of the MRO industry Trade Associations Relationship –Establish relationships with other aviation industry Trade Associations whose purpose and objectives overlap those of the IAQG

19. 22 October 2010IAQG General Assembly York UK October 201019 IAQG Publications Quality Management Systems related writings: –9100Quality Management Systems - Requirements for Aviation, Space and Defense Organizations –9110Quality Management Systems - Requirements for Aviation Maintenance Organizations –9120Quality Management Systems - Requirements for Aviation, Space and Defense Distributors –9101Quality Management Systems Assessment –9104/1, /2, /3 Trilogy Aerospace Quality Management System Certification/Registration (ICOP) Program

20. 22 October 2010IAQG General Assembly York UK October 201020 IAQG Publications Publications for Product and Supply Chain Improvement –9102Aerospace First Article Inspection Requirements –9103Variation Management of Key Characteristics –9107Direct Delivery Authorization - Guidance –9114Direct Shipment – Guidance for Aerospace Companies –9131Non-conformance Documentation –9132Data Matrix - Quality Requirements for Parts Marking –9133Qualification Procedure for Aerospace Standard Parts –9134Supply Chain Risk Management Guidelines –9162Operator Self-Verification Programs

21. 22 October 2010IAQG General Assembly York UK October 201021 Industry Controlled Other Party A process for certification of an organization’s Aerospace Quality Management System (AQMS) –Industry Controlled: »The IAQG through each Sector provides direct oversight of all AQMS certification activities –Other Party: »Certifications are completed by authenticated certification bodies (other parties) that are recognized through the ICOP process ICOP is the globally harmonized AQMS Certification process defined by the IAQG (9104) which provides for international recognition of AQMS certification

22. 22 October 2010IAQG General Assembly York UK October 201022 Other Party Management Team The global, industry-controlled, oversight committee chartered to manage the Industry Controlled Other Party (ICOP) process for certification of organizations to the 9100 series of AQMS standards The Other Party Scheme is based on: –The use of identical or equivalent international, sector and national standards based on 9104 –An industry oversight system at international, sector and national levels to ensure that scheme's requirements are fulfilled based on 9104/2 –Auditors authenticated against identical requirements based on 9104/3 –All information related to the scheme is collected in the Online Aerospace Supplier Information System (OASIS) database

23. 22 October 2010IAQG General Assembly York UK October 201023 Online Aerospace Supplier Information System (OASIS ) Data base where all information related to AQMS certifications, auditors and audit results is stored Only general information such as Accreditation Bodies, Certification Bodies, Certified Supplier sites, Approved Auditors is publicly accessible OASIS statistics (June 2010) 12,787 supplier sites (growing rate ~2000 per year) 11,672 sites certified to 9100 299 sites certified to 9110 816 sites certified to 9120 +20,000 registered users 1141 registered Aerospace Auditors 89 listed Certification Bodies

24. 22 October 2010IAQG General Assembly York UK October 201024 Supply Chain Management Handbook (SCMH) Provided to assist companies with the advancement of quality practices. Developed by member company subject matter experts On-line and FREE to use New topics are in-work and will be added as they are completed Currently published topics include: –9100 Deployment Support Materials –9102 First Article Inspection support materials –9103 Key Characteristics Training –Configuration Control –Control of Non-Conforming Product –Foreign Object Debris (FOD) –Notification of Change Tool –People Capability (PCAP) 101 Competence Management Guideline –Quality Requirements and Flow Down –Root Cause Analysis and Problem Solving –Special Requirements and Critical Items –Supplier Selection & Capability Assessment Model –Work Transfer Management Select SCMH link on AAQG Homepage or go direct with this link: http://www.iaqg.sae.org/scmh

25. 22 October 2010IAQG General Assembly York UK October 201025 Questions?