Product & Supply Chain Improvement IAQG General Assembly Oct 9th, 2013 Bernard Lauras Airbus

Content: Product & Supply Chain Improvement Team PSCI Strategic Objectives SCMH Status Future SCMH evolution PSCI Tactical Objectives status Summary & Support Needed

Product & Supply Chain Improvement Team: IAQG Stream Leader Bernard Lauras (Airbus) Sector Leaders Bernard Lauras (Airbus) Dale Gordon (Aerojet Rocketdyne) Christian Buck (Safran) Deborah Oberhausen (UTC) Motoko Iwadare (MHI) interim IAQG Contractors Darryl Hue (contract just ended) Susan Parsons

Product & Supply Chain Improvement strategic objectives Reduce the number of customer specific requirements flowed to the supply chain Increase confidence that being 9100 series certified will improve quality and delivery performance and reduce surveillance costs

Focus on “How” through SCMH 91XX Requirements Inputs for new revision of 91XX 91xx 9131 9103 9102 Links to Includes SCMH Guidance material, tools, training Providing guidance material and best practices on how to meet requirements and achieve objectives

SCMH Project Status Recently Published/Updated (since last IAQG meeting) Chapter 8: Introduction to Advanced Product Quality Planning (APQP) – July 13 (minor revision incorporated this week) Link to IAQG dictionary added

SCMH Project Status Active projects Chapter 5: Planning of Product Realization (Plant,material, skills and capacity planning) On hold. Intend to revise scope and re-launch Chapter 8: Advanced Product Quality Planning APQP – Phase 2 Details (element descriptions and checklists) expected Nov 13 Chapter 10: Counterfeit and Suspect Unapproved Parts Prevention expected year end Chapter 11: Process Mapping (VSM based) expected year end

SCMH content Cancelled “Preventive actions” New revision of 9100 will remove focus on preventive action Partly covered in Root Cause Analysis and Problem Solving (Step 7 – Standardise and Transfer the Knowledge Across Business) APQP / PPAP also refers to prevention by focusing on process robustness along life cycle from design to production Moved “Counterfeit and unapproved part prevention” from chapter 10 (Customer Support) to chapter 11 (Business Management & Customer Satisfaction Monitoring)

Re-launch New Soon New Soon Soon Supply Chain Management Handbook Content –Based on the Product Life Cycle 1. Sales, Master Scheduling & Sequencing 2. Contract Requirements & Flow Down 3. Design & Development 4. Suppliers sourcing selection & approval Requirements & Flow Down Templates Contractual Requirements Review & Management Guidance Special Requirements & Critical Items Software Guidance (9115) Quality Aspects of New Product Development Supplier Selection and Capability Assessment Product Performance Detailed Assessment Checklists Master Scheduling 5. Plant, material, skills, capacity planning & scheduling 6. Order Management and logistic (Internal & external) 7. Manufacturing and Inspection 8. Supplier operational management and product validation 9103 Material for Key Characteristics 9102 Material for First Article Inspection Foreign Object Debris (FOD) Notification of Change Tool Supplier Quality Mgt Basics Sub-tier Supplier Control Management Advanced Product Quality Planning (APQP) Planning of Product Realization (Plant, material skills and capacity planning) Order Management and logistic Re-launch New Soon 9. Control of non conformities, corrective and preventive actions 10. Customer Support (Control of service operations) 11. Business Management & Customer Sat. Monitoring Appendices 9100 Rev C Deployment Support People Capability PCAP 001 Link to ICOP Overview 9100/SSCA/PPDAC Comparison IAQG dictionary Root Cause Analysis & Problem Solving Control of non conformities Work Transfer Configuration Mgmt Risk Management Delivery Metrics Definition New Process Mapping (VSM Based) Counterfeit & Suspect Unapproved Parts Soon Soon Available Work In Progress Future

How to access SCMH ? www.iaqg.org Page 10

Direct access to SCMH page How to access SCMH ? Direct access to SCMH page www.iaqg.org/SCMH Page 11

How to access SCMH ?

How to access SCMH ? Detailed content and direct access to procedures, training presentations, templates, forms, etc 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 Supply Chain Management Handbook (SCMH) was initially released in October, 2008 and is progressively updated as changes/improvements are identified and new material is developed by IAQG member company subject matter experts. 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. Provides guidance material to continuously improve Help the supply chain improve their quality performance Progressively updated Provided at no cost Chapters structured around eleven elements of a supply chain business process model Intended to assist organizations with understanding Is not intended to be requirements, nor auditable Use of the guidance material does not ensure compliance to any referenced QMS Standards…

SCMH Hit Counter (Sept. data) 77,000 visitors since start of tracking (Yokohama IAQG, Oct 2008) 12,600+ since Spring 2013 IAQG Meeting (stable) Downloads since Fall IAQG meeting 12,700+ avg. per month (was 10,400: increased awareness of the SCMH Appetite for the SCMH is real & growing!

e-SCMH Visitor Tracker Webinars New Website Promotional Campaign

SCMH Survey Results 1005 as of Sept. 2013 (163 since April 2013) 92% Users found the SCMH “Very Useful”/”Useful” 81% are “likely”/”very likely” to use the information in company procedures 70% are “likely”/”very likely” to share or use the material with their suppliers 82% find the SCMH “Easy”/”Very Easy” to navigate. 94% of users will recommend the SCMH to others Global feedback from users is very positive

SCMH Awareness Webinars Launched 2 Pilot SCMH Awareness Webinars Content: Overview of the SCMH and focus on one specific section Foreign Object Debris FOD Sept. 17th Sub-tier Supplier Control Management Sept 19th 25 Seats made available for the pilots Requests to attend exceeded the 25 seats within the first 48 hour Participation less than expected (unexpected cancellations – free?). One or two more pilots before year end with improved registration process (“first come – first serve”) Positive feedback from participants so far  Decision for deployment will be made in Jan 14

Process to select future SCMH sections Launching any new section should be based on need / added value for the industry, level of available support, etc Letter was sent few days ago to all IAQG members (based on IAQG roster) to ask proposing new topics Based on 9100 chapters that are more frequently subject of findings during ICOP audits Any other ideas? Same survey is accessible in e-SCMH Low feedback so far Please have a look and answer

Ensure better alignment between SCMH content and industry expectations Need to gather data from SCMH users First time visitors (who are they?) First download of a SCMH material (requiring e-mail address registration) Asking few questions about industry, business, how got knowledge of SCMH, etc. Allowing generating e-mail listing of users e-SCMH enhancement to come Registration process (e-mail address)  User roster Survey and associated reporting function Automatic announcement or invitation at SCMH opening

SCMH Evolution Potential new sections if adequate support from IAQG members Capacity Management, Ordering and Logistics (new name for merged Sections 5 and 6): Need project leader and team members Off site support: Need project leader and team members Certificate of Conformance: Leader found, Need team members Delegated Product Release Verification (DPRV). Team available Should we change SCMH structure ? Proposal made by PSCI team to move from “Product life cycle” to “Process approach” Will be discussed in Jan 14 SWG meeting

2013 Tactical Objectives Product & Supply Chain Improvement # 2013 Objectives Status PSCI 1 Define a way of working to support new 9100 revision (provide recommendations about future content). Target End Feb 13 Provide first inputs to Requirement stream: Target: July 13 2 Publish 4 new SCMH sections 3 Identify better process to select future SCMH sections (based on need / added value for the industry, level of available supports, etc): Target date: Montreal IAQG 4 Review mechanism to identify if and how to subcontract SCMH related activities (step approach based on value / availabilities of resources and S/C costs): Target date: First ideas Moscow IAQG, completed Montreal IAQG 5 Launch SCMH 2 webinar awareness pilots and propose plan for further development based on users feedback: Target Montreal IAQG Closed Closed Closed On plan Off plan, but recoverable Off plan, not recoverable

Summary and Support Needed SCMH usage is increasing with real satisfaction from users SCMH material development and advertising continues Need help to complete and promote SCMH Provide direct support and participate to writing team Express your ideas regarding content Communicate awareness of the SCMH throughout your companies and your supply chain! Use the SCMH Survey and provide feedback PSCI team aligning its activities to the IAQG strategy in coordination with other streams

Questions ?

Back-up slides

Potential new sections – Outcomes of PSCI Montreal face to face meeting Off-site work requirements Problem Statement: Lack of effective management of personal from outside companies performing activities at customer locations. Scope: Guidance on how to ensure that personnel performing off-site work (at customer’s facility) have access to all necessary data and specific customer requirements and have adequate qualifications and training / awareness to perform their tasks (including local rules, environmental and safety conditions.) Mentor: Bernard Lauras Leader: Open Facilitator: Sue Parsons Team Members:

Potential new sections – Outcomes of PSCI Montreal face to face meeting Certificate of Conformity Problem Statement : missing data, weak in details Scope: Minimum requirements for a C of C including a proposed template (w/minimum mandatory fields) Mentor: Debbie Oberhausen Leader: Gerald Lindlbauer Facilitator: Sue Parsons Team Members: Raymond Wright

Delegated Product Release Verification (DPRV) Potential new sections – Outcomes of PSCI Montreal face to face meeting Delegated Product Release Verification (DPRV) Met Future 9117 standard writing team Want to add guidance and forms into SCMH Material expected Feb 14

SCMH Chapter Hits – Sept. 2013 Hits are heavier where more and new material exists, i.e. Training, Forms & Checklists May 2013 Stable Sept 2013

9100 additions proposed by PSCI 7.2.2. Review of Requirements Related to the Product: Add notion of deviations/exceptions to customer requirements and need to record them 7.1.4 Control of Work Transfers and 7.3.7 Control of design and development changes: Add notion of risk management and criteria for information to the customer prior to work transfer or design change 7.5.1.4 Post-delivery support: Clarification regarding need to verify that personnel performing off-site work have access to all specific customer requirements and have adequate qualifications and training / awareness to perform their tasks 7.4.1 Purchasing process: Add that the organisation shall ensure that customer, regulatory and statutory requirements are adequately flowed to its suppliers and it shall have a process to verify they are fulfilled by its suppliers and their sub-tier suppliers 7.4.1 Purchasing process: Add requirement concerning measures to be taken to prevent and detect use of counterfeit parts and unapproved products (incl. flow down to their suppliers and regular monitoring).

Common understanding of the scope of Supply Chain Process Sales Operations Service Market & Sell Make (incl. Assemble & test) CustomerSupport C US T O M E R C US T O M E R C US T O M E R Design & Develop Deliver Deliver Buy Plan & Manage Stakeholders relationship and communication

New SCMH structure and content Market & Sell 3 Make (incl. Assemble & test) CustomerSupport Master Scheduling 9103 Material for Key Characteristics 9102 Material for First Article Inspection Counterfeit & Suspect Unapproved Parts Supplier Selection and Capability Assessment Product Performance Detailed Assessment Checklists Supplier Quality Mgt Basics Sub-tier Supplier Control Management Control of non conformities Foreign Object Debris (FOD) Work Transfer Root Cause Analysis & Problem Solving Process Mapping (VSM Based) Advanced Product Quality Planning (APQP) Risk Management Requirements & Flow Down Templates Contractual Requirements Review & Management Guidance Configuration management Capacity Management, Ordering and Logistics 9100 Rev C Deployment Support People Capability PCAP 001 Link to ICOP Overview 9100/SSCA/PPDAC Comparison IAQG dictionary Off site support Special Requirements & Critical Items Quality Aspects of New Product Development Notification of Change Software Guidance (9115) Delivery Metrics Definition Certificate of Conformance Delegated Product Release verification 6 1 5 Deliver 2 Design & Develop C US T O M E R C US T O M E R C US T O M E R Appendices 4 Buy Not yet validated by SWG 7 Plan & Manage 8 Stakeholders relationship and communication Sections already in progress Future sections to be launched