1. U.S./Europe International Aviation Safety Conference By: Date: “Global Aviation Safety Processes: Refining Reinforcing, and Streamlining” Federal Aviation Administration ENHANCED REPAIR STATION AND AIR CARRIER OUTSOURCING OVERSIGHT SYSTEM Dan Bachelder June 8, 2006

2. Challenges of a Growing Aviation System 1 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration Briefing Points Background System Safety Concepts Program Goals Risk Based Oversight System for Repair Stations Air Carrier Outsourcing Tools Proposed Additional Enhancements Development Plan Conclusion

3. Challenges of a Growing Aviation System 2 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration The OIG/ACURS Workgroup was tasked by Flight Standards to develop a standardized system safety based oversight system for outsourcing and repair station oversight. The workgroup has developed a risk based oversight system that allows for continuous assessment of each repair station to re- target Flight Standards’ resources for use in the areas of highest risk. This system is for use by Flight Standards personnel involved in the certificate management including air carrier maintenance outsourcing and repair station oversight. Background

4. Challenges of a Growing Aviation System 3 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration System Safety Concepts Safety should be built into the system, not added on to a completed design. Safety is a property of the system, not a component. Accidents are not always caused by failures and all failures do not cause accidents. Analysis to prevent the accident is emphasized instead of reacting to the accident. Emphasis is on identifying hazards as early as possible and then designing to eliminate or control those. Recognize tradeoffs and compromises in system design.

5. Challenges of a Growing Aviation System 4 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration A documented risk based oversight system A comprehensive standardized approach to maintenance surveillance Both air carrier maintenance outsourcing and repair stations are considered. Allows for continuous assessment of air carrier outsourcing and repair stations Target Flight Standards’ limited resources for use in the areas of highest risk. Program Goals

6. Challenges of a Growing Aviation System 5 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration Risk Based Oversight System for Repair Stations A System Safety based approach Applicable for oversight of any size certificate holder Identifies specific procedures to enhance the oversight of repair stations. Comprised of a baseline surveillance program, a repair station data package, a repair station assessment tool, and a risk management tool

7. Challenges of a Growing Aviation System 6 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration 1. Baseline Repair Station Surveillance Program 3. Repair Station Assessment Tool 6. Risk Management Process to be initiated for issues of concern 7. New Surveillance Program Data, RMP & Other Information 4. Modified Surveillance Program 5. Overall Assessment of Repair Station 2. Repair Station Data Package Risk Based Oversight System for Repair Stations

8. Challenges of a Growing Aviation System 7 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration 1. Baseline Surveillance Divides the current PTRS activity codes 3650/5650 into 14 elements, which constitutes a complete facility inspection Ensures that all aspects of 14 CFR 145 Repair Station operations are considered. This partition better defines the intent of the FAA guidance and provides a more comprehensive surveillance structure. All applicable, triggered activity codes must be completed and closed before the 3650/5650 records are closed. Certificate RequirementsPersonnel Records System Training Manuals Conduct a Detailed In-Process/Task Inspection Housing and Facilities Work Away From Station* Technical Data Quality Control Tools and EquipmentContract Maintenance* Parts and Material Air Carrier & Air Carriers Requirements*

9. Challenges of a Growing Aviation System 8 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration Used for both assessment and surveillance planning. Assists the PIs, other assigned inspectors, Supervisors, and Managers in identifying areas of concern or criticality about a specific repair station. As a result the PI may modify the Baseline Surveillance Program, begin a Risk Management Process for issues of concern or both. Provides overall assessment of the repair station which will be utilized to populate the planning module. Assists in targeting FAA resources for use in the areas of highest risk. 3. Repair Station Assessment Tool

10. Challenges of a Growing Aviation System 9 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration Air Carrier Outsourcing Oversight Enhancements A System Safety based approach Applicable for oversight of any size certificate holder Identifies specific procedures to enhance the oversight of outsourcing. Comprised of the current tools available to the air carrier certificate management offices and a new Outsource Oversight Prioritization Tool.

11. Challenges of a Growing Aviation System 10 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration Air Carrier Outsourcing Oversight Enhancements 1. Repair Station Data Package 2. Outsource Oversight Prioritization Tool 4. New Surveillance Program Data & Other Information 3. Prioritized Outsource Oversight

12. Challenges of a Growing Aviation System 11 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration 2. Outsourcing Oversight Prioritization Tool To be used for surveillance planning. Will assist the 14 CFR Part 121, 121/135 and 135 (10 or more ) Principal Inspectors in prioritizing maintenance provider oversight. Will allow for prioritization of outsource surveillance for the coming year. Will target resources for use in the areas of highest risk.

13. Challenges of a Growing Aviation System 12 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration Additional Outsourcing Enhancements 14 CFR Part 121 Certificate Management Teams will conduct a detailed in-process / task inspection. Participation of team members will be by regional invitation. (Reference: FAA Order 8300.10, Chapter 134.) Utilization of ATOS Elements 1.3.7 (Outsourcing) and 1.3.11 (CASS) be utilized for all 14 CFR Part 121 CMTs and interface with multiple chapter of FAA Order 8300.10, including Chapters 64/69. Quarterly utilization report created for air carriers include information regarding outsource maintenance. This includes the type of work performed, number of visits to the top 12 leading outsource maintenance providers, and outsource maintenance as a percent of the total maintenance. (Reference: FAA Order 8300.10, Volume 3, Chapter 158.) Enhanced repair station oversight training for 14 CFR Part 145, Part 135 and Part 121 inspectors.

14. Challenges of a Growing Aviation System 13 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration Proposed Additional Enhancements Enhancements to the current PTRS system to improve data reliability. These modifications involve the inclusion of the following information in the PTRS system. Only available for 3650/5650 a.This is not limited to 14 activity codes. Other codes can be added as required. b.Enhanced repair station oversight training for 14 CFR Part 145, Part 135 and Part 121 inspectors. c.The overall assessment of all 14 elements will be shown. d.The date the element PTRS was closed will be shown.

15. Challenges of a Growing Aviation System 14 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration Potential Format – Only available for PTRS codes 3650 and 5650 PTRS Code Description 3604/5604Certificate Requirements 3605/5605Records Systems 3660/5660Manuals 3657/5657Housing and Facilities 3656/5656Technical data 3658/5658Tools and equipment 3601/5601Parts and Materials 3659/5659Personnel record 3661/5661Training 3654/5654Conduct a detailed in-process/task inspection 3606/5606Work away from station* 3608/5608Quality control 3663/5663Contract Maintenance* 3618/5618Air Carrier requirements* Additional Enhancements

16. Challenges of a Growing Aviation System 15 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration Available for all 14 element PTRS codes and will possess the following three pull down menus: a.Inspectors will utilize a pull down menu to describe sub- elements of concern. The system allows for more than one to be selected. b.Inspectors will utilize a pull down menu to describe the particular issue of concern for each of the sub-elements selected. c.Inspectors will utilize a pull down menu with word pictures to assess the particular inspection. Note: overall assessment of the inspection will also be available for 3650/5650. Additional Enhancements

17. Challenges of a Growing Aviation System 16 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration It is recommended that element PTRS activities posses three pull down menus as shown below: e Example: Sub-element menu for Certificate Requirements Element: Air Agency certificate Operation Specifications Capabilities List Geographic Authorization Line Maintenance Authorization Exemptions Issues of Concern for Certificate Requirements will be: Content/information Currency Revisions systems Distribution Availability Other Sub-element Issue of Concern Proposed Additional Enhancements

18. Challenges of a Growing Aviation System 17 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration Word Pictures to provide an overall assessment of the inspection Inspection Assessment Proposed Additional Enhancements

19. Challenges of a Growing Aviation System 18 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration Development Plan Phase 1: –System Safety Based Oversight System for Repair Stations and Outsourcing including paper version of RSAT, RMP and OPT –Policies and guidance including the new 3650/5650 and the corresponding 14 elements PTRS codes –Process documentation – Work Instructions –Process validation – table top testing of the process –System Requirements to include automation and training for phase 2 Phase 2: –Enhanced PTRS System –Comprehensive SPAS Repair Station Data Package –Automated version of RSAT, RMP and OPT –Testing and training of the new processes and tools

20. Challenges of a Growing Aviation System 19 February 9, 2006 “Global Aviation Safety Processes: Refining, Reinforcing, and Streamlining” Federal Aviation Administration This oversight system provides: An enhanced risk based oversight system A comprehensive standardized approach to maintenance surveillance Both air carrier maintenance outsourcing and repair stations are considered. Allows for continuous assessment of air carrier outsourcing and repair stations Target Flight Standards’ limited resources for use in the areas of highest risk. Conclusion