1. Company Confidential 1 Requirements Strategy Stream General Assembly Alan Daniels York, United Kingdom October 22, 2010

2. IAQG Strategic Focus 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

3. Maintain focus on Quality Management System (QMS) Standards –Improve the supplier performance and customer satisfaction, especially Product Quality & On-time Deliveries –Take into account new requirements from aviation, space & defense and QMS standards –Represent IAQG at the ISO (TC 176) for future QMS activities –Stay abreast with emerging requirements (e.g.IAEG) –Sustain and improve the QMS audit and certification process –Support the IAQG strategy : “90% of the supply chain certified” Harmonization of Customer Requirements and Assessment Tools for suppliers Work with Relationship Growth Teams –Civil Authorities, Space, Defense & National Trade Associations, MRO (Maintenance, Repair and Overhaul) and Airlines Requirements Strategy Stream Mission Establish, Develop, and Maintain Industry Quality Requirements to improve product and process integrity

4. Team leadership:Team leadership: –Team Mentor Guy Dion (Zodiac Aerospace) –Team LeaderAlan Daniels (Boeing) –AAQG LeaderBuddy Cressionnie (Lockheed Martin) –APAQG LeaderMasahiro Kawamoto (MHI) –EAQG Leader Guy Dion (Zodiac Aerospace) Standards Leaders:Standards Leaders: –9100 Buddy Cressionnie (Lockheed Martin) –9110Jeff Wood (Boeing) –9120Dale Gordon (MPC Products Corp) –9101Masahiro Kamamoto (MHI)/Hans Luijt (OPMT) –9115Michelle Pierce (Lockheed Martin) –9137Francisco Losada (EADS CASA) –9104-1Mike Roberts (Boeing) –9104-2Tim Lee (Boeing) –9104-2Colin Clarke (Bombardier) Requirements Strategy Stream Team Leadership

5. Near-Term –Continue to develop guidance materials – On going –Monitor/update FAQ’s – On going –Provide standard communications – On going –Support IAQG Integration activity by monitoring and taking actions on IAQG initiatives that overlap with REQ std - Active in Integration Team –Provide IAQG Clarifications utilizing the SDR/IDR process according to procedure 103 – On going –Monitor and study ISO QMS activities – Active support –90% certification strategy support – Usage survey Requirements Strategy Stream Team Charter/Improvement

6. Mid-Term –IAQG Liaison with TC176 activity for the future revision to ISO 9001 (next ISO 9001 & 9004) – Active engagement –Ensure the compatibility and alignment of the Requirement Stream standards and their interfaces – Integration Team –Update standards based on stakeholder feedback and users satisfaction surveys – In work –Measure success in achieving the IAQG Strategy Objectives – Usage survey Long-Term –QMS concepts in the future: benchmarking other QMS standards, excellence models, maturity assessment (benchmarking on standard assessment method). Requirements Strategy Stream Team Charter/Improvement

7. Revised in 2009 9100 - QMS – Requirements for Aviation, Space & Defense Organizations 9110 - QMS – Requirements for Aviation & Defense Maintenance Organizations 9120 - QMS – Requirements for Aviation, Space & Defense Distributors 9101 – QMS – Aviation, Space and Defense QMS Audits 9115 – QMS Requirements for Aviation, Space and Defense Organizations – Deliverable Software Standards to be Cancelled (Combined in 9101) 9111 – QMS Assessment for Maintenance Organizations 9121 – QMS Assessment Applicable to Stockist Distributors Standards Revisions

8. 9100 Series Revision Objectives Incorporated ISO 9001:2008 changes Expanded scope to include land and sea based systems for defense applications Ensured alignment with IAQG strategy (on-time, on-quality performance) Adopted new requirements based on stakeholder needs Improved existing requirements where stakeholders identified need for clarification, including when a documented procedure is required

9. 9100 Revision Key Changes 3.1 – Risk (added) 3.2 – Special Requirements (added) 3.3 – Critical Items (added) 4.1 – QMS General Requirements (moved and expanded) 5.2/8.2.1 – Customer Focus/Satisfaction (enhanced) 7.1.1 – Project Management (added) 7.1.2 – Risk Management (added) 7.1.3 – Configuration Management (moved and expanded) 7.1.4 – Work Transfer (moved and expanded) 7.4.1 – Recognition of Supplier Quality Data (Added) 7.4.1 – Approval Status for Suppliers (Enhanced) 7.4.3 – Validation of Test Reports (Deleted) 7.5.1.1 – Production Process Verification (Moved) 8.2.4 – Sampling Inspection (Revised)

10. 9110 Applicability This standard is intended for use by maintenance organizations whose primary business is providing maintenance, repair and overhaul services It is tailored for organizations with National Airworthiness Authority (NAA) repair station certification There are two significant themes in 9110 and they are: –SafetySafety –Management ResponsibilityManagement Responsibility 9110 QMS Maintenance

11. 9120:2009 Quality Management Systems- Requirements for Aviation, Space and Defense Distributor Organizations –Used in organizations that are “pass through” distributors of aerospace Products »Means that the organizations are not performing work or altering the product in any way –Intended to meet requirements of FAA Advisory Circular (AC) 00-56 “Voluntary Accreditation of Distributors of Aviation Parts” –Excludes clauses: 7.1.1, 7.1.2, 7.3, 7.5.2 »not applicable to distributor organizations –Added clauses: 7.1, 7.1.1, 7.1.2 »Added he new clauses from 9100 on Project Management, Risk Management and Configuration Management 9120 QMS Distributors

12. 9115 QMS Software 9115:2010: Quality Management Systems Requirements for Aviation, Space and Defense Organizations Deliverable Software Key Changes –Establishes software quality management requirements for the aviation, space and defense industry for deliverable embedded or loadable software products –Harmonizes the content of AS9006 with the content of ISO 12207:2007 and other applicable standards, using 9100 framework –Used as a 9100 software supplement when contractually flowed down

13. 9101 QMS Assessment 9101:2009: Quality Management Systems Assessment Key Changes –One document covering 9100/9110/9120 standards (was three) –Elimination of “scoring” and “key requirements” designation –Use of customer feedback concerning QMS organization performance as an input for process oriented audits (e.g., OASIS, customer satisfaction/performance scores) –In addition to conformity, also determination of effectiveness included –More emphasis on performance measuring –Introduction of the Objective Evidence Record

14. Requirements Strategy Stream Team Charter/Improvement

15. 9100 Support Activities 15 Deployment Support Material –Consistency – Good –Currency – In Work –9100 Updates »FAQ’s to expand to include SR/CI Chart, Risk Mgmt content, SCMH link »9100:2009 Clarifications

16. 30 Month Transition Schedule 16 Transition Schedule

17. Support Activities 17 Communication and Education Articles –Quality Digest – December 2009 Issue, Aerospace Standard for Maintenance, Repair, and Overhaul Services Improves Safety –ASQ Quality Progress – January 2010 Issue, Above and Beyond Aerospace requirements include more than AS9100 –ASQ Quality Progress – July 2010 Issue, In Transition - Aviation, space and defense industry moves to new standards –ASQ Quality Progress – December 2010, Dale Gordon –Others? Conferences –ISO 9000 Conference (March 2011): Alan and Buddy Workshop and AS&D Breakout Session (AS&D Standards, User Perspective – Roger Ritterbeck, 9101 – Larry Beck) –ASQ Conference (May 2011) –RMC Auditor Training (July 2011) –Others? SAE 2-Hour Webinar and 2-Day Workshops

18. Support Activities 18 Communication and Education Send out IAQG Requirements Team Communication Letter to all OASIS Users and Certified Auditors »9100 Family of Standards Major Changes »9100/9110/9120:2009 Transition »Deployment Support Material – IAQG Sanctioned Material »9101 Auditing Technique »9115 Deliverable Software Standard Release »IAQG Clarification Process Send out a user survey to organizations after they complete 91XX implementation to include: –Clarity and benefit of 9100/9110/9120 changes (Design Specification) –Appropriateness and benefit of 9101 auditing technique –If organization delivers software, questions about 9115

19. Support Activities 19 Supply Chain Management Handbook Interfaces –Risk Management »Storyboard content and awareness material was published Sept 2010 (SCMH chapter 11.2.X) –Special Requirements/Critical Items (SCMH chapter 3.2.X) »Guidance material was published May 2010 »Short Awareness Presentation was prepared (August 2010) but not yet published »The team will try to summarize the Self Assessment maturity model in York –Configuration Management »Guidance was published June 2010 (SCMH chapter 11.3.X) »Awareness presentation and Self Assessment checklist completed (August) but still not published.

20. Revision Activity 9100 - QMS – Requirements for Aviation, Space & Defense Organizations –ISO Revision 2015 - Proposal October 2011 9110 - QMS – Requirements for Aviation & Defense Maintenance Organizations –Revision in progress - 103 approved April 2010 9120 - QMS – Requirements for Aviation, Space & Defense Distributors –ISO Revision 2015 9101 – QMS – Aviation, Space and Defense QMS Audits –Revision proposed – Go forward decision requested 9115 – Deliverable Software –Revision proposed – Go forward decision requested 9137 - Application of AQAP 2110 within a 9100 20 Standards Revisions

21. 21 Standards Revisions

22. 9101 Revision Form

23. 9115 Revision Form a) Details of the proposed Initiative (Completed by the Originator. All Sections must be completed, incomplete proposals cannot be accepted) Title: Non-Deliverable Software IAQG REQ-08 part 2 was to analyze need for non-deliverable software standard. Team discussed and decided that 9100 did not sufficiently address the needs required for non-deliverable software and a new project needed to be pursued Originator: Michelle PierceDate raised: 20 October 2010 Summary: The intent of this document is to provide industry standard for non-deliverable software that are focused on its control and ensuring validation of released software in its functioning environment, appropriate configuration control of non- deliverable software through application of unique identification, and retention of relevant records for internally developed software documenting its development and validation prior to application or use. Why this initiative is proposed: As Industry efforts increase to improve product quality and reliability and reduce production costs, use of computer software programs for automation, control and monitoring of production processes and product test, acceptance and calibration is also increasing. It is therefore vital to assure these software programs are controlled to ensure product conformity requirements are properly supported. Standard for Deliverable software (9115) has been completed. Project plate for software (IAQG REQ #008) says to analyze need for non-deliverable standard. Discussions with team and other IAQG members agreed there was a need for this effort. Manufacturing software and other non-deliverable software not sufficiently covered by any standard. Applicable to: Aviation/Space/Defence Planned deliverables : New standard with deployment materials including FAQs, Audit support and usage examples Proposed start date:Estimated duration:Proposed Team Leader: Proposed Team Members: add names, Company and Sector) e) Council Decision Date submitted to Council: Council decision: Agreed:Agreed with the following amendments: Not agreed:

24. Requirements Team - Look Ahead Requirements Team Integration –A proactive approach will be taken towards integration –Project management of future releases based on hierarchy and dependencies –Release parent and child requirement documents at the same time ISO 9001 –Preparation has begun on a major restructuring of the ISO 9001 structure Requirements Team

25. Opportunities 9102 Input –Opportunity to link this standards verbiage on FAI to the new text in 9100 “Production Process Verification” 9103 Input –Opportunity to link new 9100 terms such as Critical Items and Special Requirements and the relationship to Key Characteristics Requirements Strategy Stream Help and Opportunity

26. 26 ISO9001 TC 176 “Proposed” Changes

27. ISO9001 Status – TC176 Groundwork has begun for next full revision –Structure likely to change radically –Target 2015 Publication –Dictated by ISO Joint Technical Coordination Group (JTCG) –All ISO MSS - Quality, EH&S, security, food service, risk mgt, energy, IT, road safety, CASCO, farming, automotive and more. –The intent is to force a universally acceptable (common) High Level Structure for all MSS using a “systems approach” to include: »Identical Elements »Identical Terms & Definitions ISO9001 Proposed Changes

28. Proposed High Level MSS Structure Introduction 1.Scope 2.Normative references 3.Terms and definitions 4.Context of the organization 5.Leadership 6.Planning 7.Support 8.Operation 9.Performance evaluation 10.Improvement 28 ISO9001 Proposed Changes

29. Management Aspect Team: –Risk Management –Financial Resources of the Organization –Alignment with business management/practice –Quality Management Principles (QMP) / Leadership –Communication –Time, Speed, Agility and Related Aspects 29 ISO9001:2015 Proposed Concepts ISO9001 Proposed Changes

30. Product Aspect Team: –Focus on product conformance –Product and service life cycle management –Outsourcing, purchasing, subcontracting, supply chain management –Process Innovation 30 ISO9001:2015 Proposed Concepts ISO9001 Proposed Changes

31. System-Process Aspect Team: –Maintenance of infrastructure –Process management –Knowledge management –Competence –Quality Tools –Structure of QMS and Relationship with MSS Work (see first main bullet) –Impact of Technology and Changes in Information Management 31 ISO9001:2015 Proposed Concepts ISO9001 Proposed Changes

32. IAQG Survey 9100 / 9110 / 9120 Certification Deployment IAQG Documents Flow Down

33. Survey Summary Sector Received Answers Membership Number Participa- tion Rate AAQG19 (1) 20 (19) (1) 100 % (2) APAQG13 100 % EAQG35 100 % Total IAQG 6768 (67) (1) 100 %* (1) : Rolls-Royce North America figures included in EAQG Rolls-Royce ones (2) : 63 % for IAQG Documents Flow Down (12 answers on 19) *: 79 % in April 2010 Washington DC meeting

34. Survey Summary 100 % Goal achieved

35. 9100 Certification Sector (1) Internal IAQG Companies Number of Companies certified Certification Average (2) Company Sites Average / Member (3) AAQG (19) 18/19 (95 %) 83,4 %30 APAQG (13) 13/13 (100 %) 91,3 %11 EAQG (35) 34/35 (97 %) 93,5 %11 Total IAQG (67 [100 %]) 65/67 (97 %) 90,2 %16 (1): Number of answers by Sector (2): Average of Certification percentage (3): Average of Company sites per IAQG Company Internal IAQG Company Certification

36. 9100 Certification Sector (1) IAQG Supply Chain Supply Chain Certification Mandatory Rate (2) Certification Average (3) Supplier Sites Average / Member (4) AAQG (19)7/18 (39 %)71,5 %3342 APAQG (13)6/13 (46 %)60,6 %360 EAQG (35)30/35 (86 %)69,5 %459 Total IAQG (67 [100 %]) 42/66 (64 %)68,7 %887 IAQG Suppliers Certification (1): Number of answers by Sector (2): Ratio of Number of IAQG Members mandating 9100 Certification to their Suppliers (3): Average of Suppliers Certification percentage (3): Average of Suppliers sites (Eligible Suppliers) per IAQG Company

37. 9110 Certification (1): Number of answers by Sector (2): Ratio of IAQG Companies making MRO Business (2): Average of Certification percentage (3): Average of Company sites per IAQG Company Internal IAQG Company Certification Sector (1) Internal IAQG Companies IAQG Company Rate of Companies making MRO Business (2) Number of Companies 9110 certified Certifi- cation Average (3) Company Sites Average / Member (4) AAQG (19)12/19 (63 %)3/12 (25 %)24,7 %10 APAQG (13)10/13 (77 %)2/10 (20 %)8,3 %2 EAQG (35)31/35 (89 %)9/29 (31%)47,6 %6 Total IAQG (67 [100 %]) 53/67 (79 %)14/51 (27%)33,5 %6

38. 9110 Certification Sector (1) IAQG Supply Chain Supply Chain Certification Mandatory Rate (2) Certification Average (3) Supplier Sites Average / Member (4) AAQG (19)2/12 (17 %)0,0 %Not Provided APAQG (13)0/10 (0 %) Not Applicable - EAQG (35)11/31 (35 %)29,2 %53 Total IAQG (67 [100 %]) 13/53 (25 %)24,3 %53 IAQG Suppliers Certification (1): Number of answers by Sector (2): Ratio of Number of IAQG Members mandating 9110 Certification to their Suppliers (3): Average of Suppliers Certification percentage (3): Average of Suppliers sites (Eligible Suppliers) per IAQG Company

39. 9120 Certification (1): Number of answers by Sector (2): Ratio of IAQG Companies 9120 certified (2): Average of Certification percentage (3): Average of Company sites per IAQG 9120 certified Company Internal IAQG Company Certification Sector (1) Internal IAQG Company IAQG Company Rate 9120 certified (2) Certification Average (3) Company Sites Average / Member (4) AAQG (19)1/19 (5 %)5,3 %2 APAQG (13)1/13 (8 %)7,7 %2 EAQG (35)2/35 (6 %)4,7 %3 Total IAQG (67 [100 %]) 4/67 (6 %)5,5 %2

40. 9120 Certification Sector (1) IAQG Supply Chain Supply Chain Certification Mandatory Rate (2) Certification Average (3) Supplier Sites Average / Member (4) AAQG (19)2/19 (11 %)Not Provided APAQG (13)1/13 (8 %)25,0 %2 EAQG (35)18/35 (51 %)50,4 %103 Total IAQG (67 [100 %]) 21/67 (31 %)47,2 %44 IAQG Suppliers Certification (1): Number of answers by Sector (2): Ratio of Number of IAQG Members mandating 9120 Certification to their Suppliers (3): Average of Suppliers Certification percentage per IAQG company mandating 9120 (3): Average of Suppliers sites (Eligible Suppliers) per IAQG Company mandating 9120

41. IAQG Documents Flow Down 41 IAQG Documents Flow Down within IAQG Company members DocumentAAQGAPAQGEAQGIAQG 9102 (First Article Inspection)10113253* (88 %) 9103 (Key Characteristics Mgt)782742 (70 %) 9131 (Non Conformance)522229 (48 %) 9134 (Supply Chain Risk Mgt)412227 (45 %) 9133 (Standard Parts)211114 (23 %) 9107 (Direct Delivery)201113 (22 %) 9162 (Operator Self-Verification)201012 (20 %) 9114 (Direct Ship)21710 (17 %) 9132 (Part Marking)11810 (17 %) *: On 60 answers

42. IAQG Documents Flow Down 42 DocumentAAQGAPAQGEAQGIAQG 9102 (First Article Inspection)10 3151* (85 %) 9103 (Key Characteristics Mgt)451827 (45 %) 9131 (Non Conformance)411419 (32 %) 9133 (Standard Parts)21811 (18 %) 9134 (Supply Chain Risk Mgt)0189 (15 %) 9114 (Direct Ship)2158 (13 %) 9132 (Part Marking)1168 (13 %) 9107 (Direct Delivery)2057 (12 %) 9162 (Operator Self-Verification)0033 (5 %) *: On 60 answers IAQG Documents Flow Down from IAQG Company members to their Suppliers

43. IAQG Survey 43 Recommendations Next step –Based on IAQG Washington DC Council decision 9100 & 9110 certification deployments to be made on a yearly basis –Launch of next 9100 & 9110 Certification Survey in January 2011 (2010 Results) Results in New Orleans IAQG meeting

44. Questions?