1. Presentation Outline  Quick overview of Woodward  Areas that need standardization  Concluding remarks

2. At the Core of Growing Global Markets Power Generation Transportation Process Industries Aerospace For a wide range of aerospace and industrial engines and turbines, Woodward: designs manufactures, and services designs manufactures, and services high value added mechanical and electronic components systems, and software high value added mechanical and electronic components systems, and software for controlling fuel delivery combustion, and related systems for controlling fuel delivery combustion, and related systems

3. Rockford, ILZeeland, MIBuffalo, NY Products Customers

4. Areas That Require Standardization  Quality System  Audits  Supplier ratings  Returns from customers on standard forms  Continuous Improvement

5. What It Feels Like Deflationary Pricing Inflationary Costs

6. What We’d Like Airlines Primes Suppliers Delighted Customers

7. Quality System Woodward complies with all these standards ISO 9000 1994 ISO 9000 1994 - 01 PW AQSR-01 - AS 9100 BQMS NADCAP ISO 9000 2000 ISO 9000 2000

8. Quality System: What we’d like AS9100 Supplier advantage –In-depth Aerospace standard: ISO-based –Not customer-specific: Europe & US –Use as a yardstick for our suppliers Primes advantage –SAE controlled: No resources on generating standards –You know what you’re getting

9. Audits Woodward, IL had 9 major audits last year

10. Audits: What we’d like  ONE audit by a competent Aerospace-qualified registrar  Standardized desk audits Supplier advantage –Less redundant expense –Concentrate on audit findings & C/A Primes advantage –You know what you are getting –Less redundant expense

11. Customer Returns  Inconsistent and incomplete data on returns BROKEN

12. Customer Returns: What we’d like Standard form Advantage –Help us with trouble-shooting –Fewer CNDs –Prevent recurrence –Ultimately customer satisfaction

13. Continuous Improvement Kaizen Lean Supplier Excellence ACE Process Certification Six Sigma Perfection

14. CI: What has worked for us Lean/Sigma Advantage –One initiative supported by the CEO –Addresses QDRC –Fantastic successes –How do you argue with MAIC?

15. Key Characteristic Control  Cp = 2.0  Cpk = 2.0  Cp = 1.33  Cpk = 1.33

16. KCC: What we’d like  Define the CTQs  Work with us on QFDs  Cpk=2.0 must be the goal – after all, shift happens  Allow us to challenge specification requirements  Process Control + Robustness Give us the tools to control the processes we can, the knowledge to make robust the processes we can’t, and the intelligence to know the difference.

17. Other Areas for Standardization  B2B  First Article Inspection AS9102  Final Inspection standards  AMS, AS & other industry standards  Serialization standard for items  Supplier Ratings

18. Your success will lead the industry forward! Thank you, IAQG We applaud your efforts We want you to succeed