1. An Overview International Aerospace Quality Group General Assembly – Amsterdam 29 April 2005 Gary Baker IAQG President The Boeing Company

2. 29 April 2005 IAQG Gen Assy Global Approach to Improvement Over 50 major aerospace companies across three global sectors Over 50 major aerospace companies across three global sectors Improvement through implementation of effective quality management systems and practices Improvement through implementation of effective quality management systems and practices System and product integrity initiatives driven with constancy of purpose System and product integrity initiatives driven with constancy of purpose Co-operation, consultation and communication with: Co-operation, consultation and communication with: partners and supplierspartners and suppliers airworthiness authoritiesairworthiness authorities customers across all sectors of businesscustomers across all sectors of business “Where quality and safety is concerned … There is no competitive advantage” There is no competitive advantage”

3. 29 April 2005 IAQG Gen Assy A Global Organization International Aerospace Quality Group IAQG Council General Assembly Forums APAQG (Asia) AAQG (Americas) EAQG (Europe) Implement initiatives that make significant improvements in Quality and reduction in cost, throughout the value stream, by establishing and maintaining dynamic cooperation, based on trust, between international aerospace companies Whose purpose is:

4. 29 April 2005 IAQG Gen Assy An Organization of Co-operation Americas The Boeing CompanyThe Boeing Company BombardierBombardier CAECAE EmbraerEmbraer GE Aircraft EnginesGE Aircraft Engines Goodrich CorporationGoodrich Corporation GulfstreamGulfstream Honeywell AerospaceHoneywell Aerospace Lockheed MartinLockheed Martin Northrop GrummanNorthrop Grumman OrbitalOrbital Parker AerospaceParker Aerospace RaytheonRaytheon Rockwell CollinsRockwell Collins Rolls-RoyceRolls-Royce TextronTextron United Technologies Corp.United Technologies Corp. VoughtVought PRIPRI SAESAE Asia ADICADIC Aviation Industries of ChinaAviation Industries of China Fuji Heavy IndustriesFuji Heavy Industries HdHHdH Ishikawajima Harima Heavy IndustriesIshikawajima Harima Heavy Industries Kawasaki Heavy IndKawasaki Heavy Ind Korea Aerospace IndKorea Aerospace Ind Korean Air AerospaceKorean Air Aerospace Mitsubishi Heavy IndMitsubishi Heavy Ind Shin Mayawa IndShin Mayawa Ind SJACSJACEurope AirbusAirbus ALENIAALENIA BAE SystemsBAE Systems Dassault AviationDassault Aviation EADSEADS EADS – CASAEADS – CASA EADS MilitaryEADS Military EurocopterEurocopter AvioAvio Fokker AerostructuresFokker Aerostructures WestlandsWestlands HeganHegan Hispano-SuizaHispano-Suiza Israel Aircraft IndustriesIsrael Aircraft Industries Messier-BugattiMessier-Bugatti Messier-DowtyMessier-Dowty MTU Aero engineMTU Aero engine Rolls-RoyceRolls-Royce SAAB AerospaceSAAB Aerospace Smiths IndustriesSmiths Industries SNECMA MoteursSNECMA Moteurs SukhoiSukhoi Thales AvionicsThales Avionics Europe – Continued Sonaca Sonaca Turbomeca Turbomeca Volvo – Aero Volvo – Aero PFW PFW Zodiac Zodiac ASD ASD

5. 29 April 2005 IAQG Gen Assy Good Progress Industry executive’s participation makes the process efficient and effective Industry executive’s participation makes the process efficient and effective A tremendous opportunity for the supply chain: A tremendous opportunity for the supply chain: Safety and quality improvementSafety and quality improvement Waste and cost reductionWaste and cost reduction Consistency and clarity of approach, requirements and documentationConsistency and clarity of approach, requirements and documentation Reduction of multiple oversightReduction of multiple oversight International cooperation to drive forward deliverables that are implemented International cooperation to drive forward deliverables that are implemented A Global business requires Global solutions

6. 29 April 2005 IAQG Gen Assy 9100 – Aerospace Quality Management System Standard cornerstone of our initial focus 9100 – Aerospace Quality Management System Standard cornerstone of our initial focus Defines “what” – not “how”Defines “what” – not “how” Published jointly in Europe, Americas & Asia-PacificPublished jointly in Europe, Americas & Asia-Pacific Reduces variation across the supply chainReduces variation across the supply chain Complementary standards for Complementary standards for Maintenance and Repair Stations – 9110Maintenance and Repair Stations – 9110 Distributors/Stockists – 9120Distributors/Stockists – 9120 …Sets the standard Quality System Standards Quality System Standards – based on ISO 9001-2000

7. 29 April 2005 IAQG Gen Assy ….into action Checklists for auditors - 9101, - 9111, - 9121 Checklists for auditors - 9101, - 9111, - 9121 Industry Controlled Other-Party (ICOP) oversight program for consistent implementation – 9104 Industry Controlled Other-Party (ICOP) oversight program for consistent implementation – 9104 RegistrarsRegistrars AuditorsAuditors TrainingTraining Supported by a web hosted database (OASIS) Supported by a web hosted database (OASIS) Improving quality performance and reducing costs

8. 29 April 2005 IAQG Gen Assy …and product integrity Requirements to directly raise product integrity  First Article Inspection – 9102  Variation Management of Key Characteristics – 9103  Non-conformance Management – 9131  Data Matrix Quality Requirements for Parts Marking – 9132  Harmonized NDT Personnel Qualification – NAS410  Global Supplier Risk Management – 9134  Operator Self Verification – 9162  Other work in progress – software, direct shipment & delivery, operator self verification, sampling plans, supplier performance metrics… supplier performance metrics… Agenda for change pursued with constancy of purpose

9. 29 April 2005 IAQG Gen Assy Relationship Growth Strategy Space Defense Civil Authorities Suppliers Engineering, Sourcing Improvement Strategy Requirements Process Capability People Capability Human Factors Subtier Supplier Control Evaluation Strategic Focus Member Collaboration Top Leader Involvement IAQG Operational Efficiency IAQG Operating Management System

10. 29 April 2005 IAQG Gen Assy Implementation! IAQG members agree to use standards internally and to flow requirements to suppliers IAQG members agree to use standards internally and to flow requirements to suppliers One voiceOne voice Minimize variationMinimize variation Shared resourcesShared resources Reduced duplication and wasteReduced duplication and waste...levels of implementation exceeds 90% and rising exceeds 90% and rising

11. 29 April 2005 IAQG Gen Assy Authority / Industry Partnership Airworthiness Authority and industry executives working together to assure: Airworthiness Authority and industry executives working together to assure: Parts can be manufactured anywhereParts can be manufactured anywhere Move quickly and seamlessly to the end userMove quickly and seamlessly to the end user Are supported by electronic documentationAre supported by electronic documentation One authority action for each counterpart industry actionOne authority action for each counterpart industry action Agenda to GloballyEnhance Agenda to Globally Enhance Airworthiness and Safety

12. 29 April 2005 IAQG Gen Assy Industry Partnership with Space Agency and industry executives working together Agency and industry executives working together to develop a single voice on quality-related issues to develop a single voice on quality-related issues Initial deliverable is to address space industry Initial deliverable is to address space industry needs in 9100 needs in 9100 Space representatives invited to join Sector 9100 Space representatives invited to join Sector 9100 writing teams writing teams Incorporation of agreed requirements expected Incorporation of agreed requirements expected during next major 9100 update in approx 2008 during next major 9100 update in approx 2008 Agencies to Enhance Safety Globally

13. 29 April 2005 IAQG Gen Assy Engagement with the Defense Community Coordination with NATO on AQAP’s (Allied Quality Assurance Publications) Coordination with NATO on AQAP’s (Allied Quality Assurance Publications) Involvement of national defense organizations in sector activity Involvement of national defense organizations in sector activity Recognition of IAQG standards as suitable for procurement Recognition of IAQG standards as suitable for procurement

14. 29 April 2005 IAQG Gen Assy Industry Benefits… Focus on the complete supply chain and stakeholders Focus on the complete supply chain and stakeholders True global cooperation and harmonization True global cooperation and harmonization Higher quality products at reduced cost Higher quality products at reduced cost Fewer customer-unique documents Fewer customer-unique documents Open sharing of “Best Practices” Open sharing of “Best Practices” Rapid consensus & deployment Rapid consensus & deployment Reduced variation & duplication Reduced variation & duplication … Across Aviation, Space, and Defense

15. 29 April 2005 IAQG Gen Assy Communication Amsterdam General Assembly 2004

16. 29 April 2005 IAQG Gen Assy RegisterEarly! Access to past Forum presentations Access to past Council minutes Council minutes Communication

17. 29 April 2005 IAQG Gen Assy One-StopShopping Communication

18. You’re welcome to visit us at www.iaqg.org Communication