Company Confidential 1 IAQG “ Supply Chain Management Handbook” IAQG General Assembly York, North Yorkshire, UK Friday, October 22, 2010 Bill Schmiege Parker Hannifin

Content Introduction to Supply Chain Management Handbook (SCMH) SCMH content today and tomorrow Accessing e-SCMH Examples 2

What is the SCMH ? –A collection of guidance materials, trainings, best practices for Suppliers What are the Objectives of the SCMH? –Provide guidance material to help improve the “On Time and On Quality” performance through out the supply chain –Provide “how to” information for various Aerospace standards Note - The e-SCMH is a web based toolbox with FREE access to suppliers Supply Chain Management Handbook (SCMH):

Focus on “How” through SCMH QMS Requirements 91xx Links to SCMH Guidance material, tools, training Includes Providing guidance material and best practices on how to meet requirements and achieve objectives Inputs for new revision of 91XX

SCMH Leadership: –IAQG Mentor: Wayne Brown (Boeing) –AAQG (Americas): –Bill Schmiege (Parker Hannifin) –Larry Weng (Boeing) –APAQG (Asia Pacific): –Shuji Komori (FHI) –EAQG (Europe): –Christian Buck (Safran) –Bernard Lauras (Airbus) Supply Chain Management Handbook

SCMH contents have been developed by member companies of the IAQG and the document is structured to cover the entire product life cycle process: –Intended for use by companies at all levels of supply chain –Aligned with Product Life Cycle –Currently 16 sections published –Other sections “in work” or to be developed in the future Supply Chain Management Handbook

7 Software Guidance (9115) Quality Aspects of New Product Development Supply Chain Management Handbook Content - Based on the Product Life Cycle Appendices 10. Customer Support (Control of service operations) 11. Business Management & Customer Sat. Monitoring 4. Suppliers sourcing selection & approval 2. Contract Requirements & Flow Down 5. Plant, material, skills, capacity planning & scheduling 6. Order Management and logistic (Internal & external) 1. Sales, Master Scheduling & Sequencing 3. Design & Development 7. Manufacturing and Inspection 8. Supplier operational management and product validation 9. Control of non conformities, corrective and preventive actions Requirements & Flow Down Templates Supplier Selection and Capability Assessment Product Performance Detailed Assessment Checklists 9100 Rev C Deployment Support People Capability PCAP 001 Link to IAGQ Dictionary Lean Assessment Tool 9103 Material for Key Characteristics 9102 Material for First Article Inspection Foreign Object Debris (FOD) Subtier Supplier Management Notification of Change Tool Supplier Quality Mgt Basics Root Cause Analysis & Problem Solving Control of non conformities Order Management and logistic Work Transfer Configuration Mgmt Risk Management Master Scheduling New PrioritiesWork In Progress Available Planning of Product Realization Preventive Action Counterfeit Part Prevention MRO Special Requirements & Critical Items

Recently Published topics (since last IAQG) Foreign Object Debris (FOD) Requirements & Flow-down update to 9100:2009 (Rev C) Control of non conforming product interactive tutorial update to 9100: 2009 (Rev C) Configuration Management (partial) Special Requirements/Critical Items (partial) Supplier selection capabilities assessment (maturity model) updated Supplier Quality Management Basics Risk Management

Topics in final editing/publication Projects in Pre-editing for publication –Special Requirements Critical Items Awareness presentation (2 nd part) –Configuration Management Awareness (2 nd part) –Product Performance Detailed Assessment Checklists

Active Writing Teams Counterfeit/Unapproved Parts SW guidance for 9115 Quality Aspect of New Product Development Preventive Action Subtier Supplier Control Team in development Master Scheduling, Planning, and Ordering Securing Team Leader and members

Future Topics Contract Review Contract Requirement Change Management (including verification of flowdown to subtier) Contractual flowdown of requirements process (include visibility and application through quality plan) Update/expand Variation Management material - simplify, add tools/templates. Supplier approval process (including disapproval) Assembly Work Instruction Total Preventive Maintenance (TPM)

Released improved SCMH Webpage New SCMH format – rolled out 7/2/2010 Improved accessibility and navigation Searches engine Quick link – drop down menus Alpha listing “Link to SCMH” Use and give us feedback !

Easy access to SCMH Free access via the IAQG Website.

Easy access to SCMH Accept terms and conditions. Immediate and FREE access

SCMH Home Page

SCMH Introduction The Supply Chain Management Handbook (SCMH) provides guidance materials to continuously improve On Time, On Quality Delivery (OTOQD) throughout the entire value stream. It‘s objective is to help the supply chain improve their quality performance through better understanding of aviation, space and defense industry quality management system requirements and expectations. The Handbook is provided at no cost to organizations at all levels throughout the supply chain, including customers. The chapters of the SCMH are structured around the eleven elements of a supply chain business process model covering the entire product lifecycle. The intention of the guidance material in the SCMH is to assist organizations with understanding the various topics and is not intended to be requirements, nor auditable. Use of the guidance material does not ensure compliance to any referenced QMS Standards.

Example SCMH Material

Foreign Object Debris (FOD) FOD Program Procedure FOD Training Module Assessment Tool – three level of robustness Printable and fillable on-line check sheets and forms

Supplier Selection and Capability Assessment Assessing Supplier Maturity to 11 Business Processes covering the entire product life cycle process Five levels of maturity 1.Undefined and not capable 2.Defined and applied, but not 100% efficient or not applied everywhere in the company 3.Defined, applied and effective 4.Predictable 5.Optimized Four domains assessed Process, People & Organization, Tools & Data, Performance Metrics Results synthesis - show strengths and weaknesses Areas of potential Supplier Development if deemed necessary

Work Transfer Management Work Transfer Management procedure 4 gate review process Fillable forms for: –Each gate review –Project Proposal –Risk Assessment & Business Case –Product Readiness Review

Variation Management of Key Characteristics (9103) Guidance material aligned to 9103 Seven Stage process Training tutorial

First Article Inspection (FAI) Guidance material aligned to 9102 Includes: –FAI FAQ –FAI checklist –Step by step instruction for filling out 9102 FAI reporting forms »Form 1 - Part Number Accountability »Form 2 - Product Accountability »Form 3 - Characteristic Accountability, Verification and Compatibility Evaluation

SCMH Summary The SCMH is a collection of guidance materials, training packages, and best practices for suppliers. The objective of the SCMH initiative is to improve the “On Time and On Quality” performance through out the supply chain Provides “how to” information for various Aerospace Standards requirements. –Guidance, not a requirement or auditable checklist. Free - may be adopted (and adapted) by any organization to improve quality and delivery performance. Continues to improve and provide value to the Supply Chain through user feedback

Questions?