Company Confidential 1

International Aerospace Quality Group (IAQG)

General AssemblyWashington DCApril 16, 2010

International Aerospace Quality GroupInternational Aerospace Quality GroupInternational Aerospace Quality GroupInternational Aerospace Quality Group

IAQGCouncil

General Assembly Forums

AAQG (Americas)

EAQG(Europe)

A Global Team

APAQG(Asia & Pacific)

Achieve significant performance improvements in Achieve significant performance improvements in Quality, Delivery, and consequently Cost, on all products Quality, Delivery, and consequently Cost, on all products

and services throughout the value streamand services throughout the value stream

Whose mission is to:

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Mission

• Achieve significant performance improvements in Quality, Delivery, and consequently Cost, on all products and services throughout the value stream

– Through the establishment of effective prevention oriented practices and processes

– By standardizing Requirements, providing Process Guidelines and spreading Best Practices

– By introducing a Culture of Quality as early as possible in the value stream thus reducing the cost of poor quality

– Through establishing and maintaining dynamic cooperation between international Aviation, Space and Defense companies

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5-Year Vision

• Product and Services Quality and Delivery will have improved 20% per year throughout the product lifecycle

• Robust processes achieved throughout the supply chain (Supply Chain Management Handbook Maturity Level 3 or better)

• IAQG Quality Management System certification program is robust, recognized and valued

• 90% of the supply chain certified to IAQG Quality Management System Standards

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Objectives

• Establish commonality of aviation, space and defense quality systems, “as documented” and “as applied”

• Establish and implement a process of continual improvement to bring initiatives to life

• Establish methods to share best practices in the aviation, space and defense industry

• Coordinate initiatives and activities with regulatory/government agencies and other industry Stakeholders

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Organization

Relationship Growth Strategy

Communications

Strategy Working

Group

LeadershipTeam

Council

Improvement Strategy

Finance

Operating Management

System

Other PartyManagement

Requirements

Product and Supply Chain

People Capability

PresidentAmericas Sector Leader (AAQG)Europe Sector Leader (EAQG)Asia Pacific Sector Leader (APAQG)

Voting Members from each Sector

Civil Authorities – ProductionSpaceDefenseMaintenance, Repair & OverhaulTrade Associations

SWG Leader, President, Sector Leaders,Leaders from Communications, Operating Management System, Finance, Other Party Management, Relationship Growth Strategy, Requirements, Product and Supply Chain Improvement, People Capability, Performance, Integration Team, and Secretary

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CouncilAmericas (AAQG)

• Boeing

• Bombardier

• GE Aviation

• Goodrich Corp.

• Honeywell

• Lockheed Martin

• Northrop Grumman

• Raytheon

• Textron

• United Technologies

Europe (EAQG)

• Airbus

• Airbus Military

• Alenia

• BAE Systems

• EADS Astrium

• EADS Defence and Security

• Rolls-Royce

• SAAB Aerospace

• SAFRAN

• Zodiac Aerospace

Asia Pacific (APAQG)

• AVIC

• Fuji Heavy Industries

• IHI

• Kawasaki Heavy Industries

• Korea Aerospace Industries

• Mitsubishi Heavy Industries

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General Assembly

• The General Assembly meets 2x year and provides a communications forum with the Aerospace community worldwide to allow them to be briefed and to comment upon IAQG activities and initiatives

• The General Assembly forum provides input to the IAQG Council’s priorities and objectives

• All representatives of the Aerospace community are eligible to participate in IAQG General Assembly meetings

• Next General Assembly

– York, England - October 22, 2010

9* AAQG Sector Chair

IAQG Membership - Americas• ATK

• Ball Aerospace

• Boeing+

• Bombardier*+

• Embraer

• GE Aviation+

• General Dynamics/Gulfstream

• Goodrich Corporation+

• Honeywell+

• Lockheed Martin+

• Northrop Grumman+

• Parker Aerospace

• Raytheon+

• Rockwell Collins

• Rolls-Royce

• Spirit AeroSystems

• Textron+

• United Technologies+

• Vought

Sponsor: SAE International (SAE)

+ Voting Member

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IAQG Membership - Europe

• Advanced Electronics Company

• AgustaWestland

• Airbus+

• Airbus Military+

• Alenia+

• Avio

• BAE Systems+

• Dassault Aviation

• EADS Astrium+

• EADS Defence and Security+

• ELBIT Systems

• Eurocopter

• RAFAEL

• Rolls-Royce+

• SAAB Aerospace+

• SAFRAN+

• SAGEM

• SNECMA

• SONACA

• Sukhoi

• Thales Avionics

• Turbomeca

• Volvo Aero

• Zodiac Aerospace*+

• Fokker Aerospace

• GE Aviation Systems

• HEGAN

• Hispano-Suiza

• Israel Aerospace Industries

• Liebherr-Aerospace

• MBDA

• Meggitt

• Messier-Dowty

• MTU Aero Engines

• PFW

* EAQG Sector Chair

Sponsor: Aerospace and Defense Industries Association of Europe (ASD)

+ Voting Member

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IAQG Membership - Asia Pacific

• AIDC

• AVIC+

• Boeing Aerostructures Australia

• COMAC

• EGAT

• Fuji Heavy Industries+

• IHI+

• Indonesian Aerospace

• Kawasaki Heavy Industries*+

• Korean Aerospace Industries+

• Korean Air Aerospace

• Mitsubishi Heavy Industries+

• SMIC

* APAQG Sector Chair

Sponsor: Society of Japanese Aerospace Companies (SJAC)

+ Voting Member

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Relationship Growth Strategy

Civil Authorities - ProductionSpace

DefenseMaintenance Repair & Overhaul

Trade Associations

Improvement Strategy

Requirements

People Capability

Product & Supply Chain Improvement

Performance

Operating Management SystemOther Party Management Team

Integration Team

IAQG Strategic Focus

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Improvement Strategy Stream• Requirements

– Establish, Develop, and Maintain Industry Quality requirements to improve product and process integrity

• People Capability

– Develop the competency of, and support for, those engaged in Supply Chain processes, in all functions, to deliver continual improvements in On Time On Quality Delivery (OTOQD)

• Product & Supply Chain Improvement

– Develop and deploy standards and guidance materials to continuously improve On Time, On Quality Delivery (OTOQD) throughout the supply chain

• Performance

– Develop & implement a set of objective data in order to provide the whole Aerospace & Defense Supply Chain with global, dynamic and detailed where necessary, performances measurements

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Relationship Growth Strategy• Civil Authorities - Production

– Working together with the international airworthiness authorities to enable local design, production and certification with global acceptance

• International Space Forum – Working together to achieve standards and a certification scheme that

can be effectively and efficiently used by space organizations

• Defense Relationship – Coordination with NATO and defense organizations to adopt simpler,

common standards

• Maintenance, Repair & Overhaul (MRO) – Working together with industry towards recognition of IAQG standards

and effective industry use, application, and certification to improve aviation safety, product quality, and efficiency of the MRO industry

• Trade Associations Relationship – Establish relationships with other aviation industry Trade Associations

whose purpose and objectives overlap those of the IAQG

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IAQG Publications

• Requirements to harmonize the Quality Management System

– 9100 – Quality Management Systems - Requirements for Aviation, Space and Defense Organizations

– 9110 – Quality Management Systems - Requirements for Aviation Maintenance Organizations

– 9120 – Quality Management Systems - Requirements for Aviation, Space and Defense Distributors

– 9101 – Quality Management Systems Assessment

– 9104-1, -2, -3 Trilogy – Aerospace Quality Management System Certification/Registration (ICOP) Program

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IAQG Publications

• Publications for Product and Supply Chain Improvement

– 9102 - Aerospace First Article Inspection Requirements

– 9103 - Variation Management of Key Characteristics

– 9107 - Direct Delivery Authorization - Guidance

– 9114 - Direct Shipment – Guidance for Aerospace Companies

– 9131 - Non-conformance Documentation

– 9132 - Data Matrix - Quality Requirements for Parts Marking

– 9133 - Qualification Procedure for Aerospace Standard Parts

– 9134 - Supply Chain Risk Management Guidelines

– 9162 - Operator Self-Verification Programs

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Industry Controlled Other Party

• A process for certification of an organization’s Aerospace Quality Management System (AQMS)

– Industry Controlled:» The IAQG through each Sector provides direct oversight of all

AQMS certification activities

– Other Party:» Certifications are completed by authenticated certification

bodies (other parties) that are recognized through the ICOP process

• ICOP is the globally harmonized AQMS Certification process defined by the IAQG (9104) which provides for international recognition of AQMS certification

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Other Party Management Team

• The global, industry-controlled, oversight committee chartered to manage the Industry-Controlled Other Party (ICOP) process for certification of organizations to the 9100 series of AQMS standards

• The Other Party Scheme is based on:

– The use of identical or equivalent international, sector and national standards based on 9104

– An industry oversight system at international, sector and national levels to ensure that scheme's requirements are fulfilled based on 9104/2

– Auditors authenticated against identical requirements based on 9104/3

– All information related to the scheme is collected in the Online Aerospace Supplier Information System (OASIS) database

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Online Aerospace Supplier Information System

• Data base where all information related to AQMS certifications, auditors and audit results is stored

• Only general information such as Accreditation Bodies, Certification Bodies, Certified Supplier sites, Approved Auditors is publicly accessible

OASIS statistics (January 2010)• 12,061 supplier sites (growing rate

2000 per year) • 11,040 sites certified to 9100 • 276 sites certified to 9110 • 745 sites certified to 9120 • +20,000 registered users • 965 registered Aerospace Auditors • +90 listed Certification Bodies

http://www.iaqg.org

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Supplier(CB Client)

ICOP Certification

ICOP Certification Body (CB)

(9100, 9110, 9120)

IAQGMember Companies

Representatives

On-line Aerospace Supplier

Information System(OASIS)

SMS AB, CB & Auditor Approval

Shared Oversight

IAQG OPMT Oversight of SMS

Europe, Asia Pacific, Americas

ICOP Accreditation Body (AB)

(9100, 9110, 9120)

IAQG(Supplier Surveillance, Product/Process Audit)

Certification Recognition

International Accreditation Forum (IAF) Peer Review

Oversight

Oversight

Conformance

Product/Process

ConformanceDATA

Oversight

DATA

IAQG & SMS Oversight

OversightResources

Oversight

ICOP Oversight Scheme

Supply Chain Management Handbook (SCMH) • Provided to assist companies with the

advancement of quality practices.

• Developed by member company subject matter experts

• On-line and FREE to use

• New topics are in-work and will be added as they are completed

• Currently published topics include: – Supplier Selection & Capability Assessment

Model

– Root Cause Analysis and Problem Solving

– Work Transfer Management

– Contract Quality Requirements and Flow Down

– 9103 Key Characteristics Training

– 9102 First Article Inspection support materials

– 9100 Deployment Support Materials

– People Capability (PCAP) 101 Competence Management Guideline

Select SCMH link on AAQG Homepageor go direct with this link:

http://www.iaqg.sae.org/scmh

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For More Information

www.iaqg.org

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Questions?