Presentation from Supplier’s Viewpoint

SHIMADZU CORPORATION

Solutions for Science since 1875

(http://www.shimadzu.com)

IAQG General Assembly MeetingMarch 14th, 2002 in Kyoto

Presentation Outline

Brief Overview of Shimadzu Corporation Aircraft Equipment Division

Trend of Business Environment Key Points of Supplier’s Quality Activity Concluding Remarks

Shimadzu Corp. Aircraft Equipment Division

• LOCATION : Kyoto, Japan• EMPLOYEES : 470• AREA : 77,100 Square Meters (857,000SF)• SALES (2000) : 227 Million US$ (120YEN/US$)• PRODUCTS : AEROMECHANICAL EQUIPMENT

AVIONICS EQUIPMENTSPACE EQUIPMENTGROUND SUPPORT EQUIPMENT

• CORPORATION : HONEYWELL INTERNATIONAL WITH KAISER AEROSPACE & ELECTRONICS

(OVERSEAS CAE ELECTRONICS PARTNERS)

• CUSTOMERS : JDAAIRCRAFT COMPANIESAIRLINE COMPANIES

Outline

Shimadzu Corp. Aircraft Equipment Division

Approved Organization (Mar. 23, 1964) based on Civil Aeronautics Law

Business Permission (Nov. 27, 1979) based on Aircraft Manufacturing Industry Law

Boeing D1-9000 (Nov. 12, 1992) ISO14001 (Jun. 24, 1997) ISO9001:1994 (Aug. 24, 1999)

Approval Status of Our System

AEROMECHANICAL EQUIPMENT

• ENVIRONMENTAL CONTROL SYSTEM

• FLIGHT CONTROL SYSTEM

• HYDRAULICS

• GEARBOX

• ELECTROMECHANICAL ACTUATOR

AVIONICS EQUIPMENT

• COCKPIT DISPLAY SYSTEM

• AIR DATA SYSTEM

• MAGNETIC ANOMALY DETECTOR SYSTEM

• ELECTRONIC CONTROL EQUIPMENT/OTHERS

SPACE EQUIPMENT

• FUNCTIONAL COMPONENTS FOR ROCKETS & SATELLITES

• SPACE EXPERIMENT EQUIPMENT

GROUND SUPPORT EQUIPMENT

• FUNCTIONAL TEST EQUIPMENT

• AEROSPACE MEDICAL EQUIPMENT

Main ProductsShimadzu Corp. Aircraft Equipment Division

B767 SHUTOFF VALVE MODULE

F2 PDU GEARBOXT-4 ECS PACKAGE B777 MLG TRUCK POSITION ACTUATOR

B767 SLAT GEAR BOX

Samples of Main Products (1 of 2)

B757,767,777 POWER DRIVE UNIT, CARGO

DOOR HINGE

Shimadzu Corp. Aircraft Equipment Division

B747,757,767 APU DOOR ACTUATOR F-15 HUD

BK-117 ACTUATOR & CONTROLLER

G-TRAINING CENTRIFUGEH-1 PROPELLANT VALVE, FILL & DRAIN VALVE

ATM & SAM, MISSILE FIN ACTUATOR

Samples of Main Products (2 of 2)Shimadzu Corp. Aircraft Equipment Division

Trend of Business Environment

（ Level ） Supplier’s Goalhigh ・ quality

・ delivery

current ・ regulationlevel

・ quantitylow ・ price

Present Future

Key Points of Supplier’s Quality Activity

Standardization of Quality Requirement Efficient Evaluation for Supplier Evaluation for Vendors of Purchased Parts including

Catalog/Standard Parts and Raw Materials Consideration for Production Volume Difference of Requirements between AS9100 and FAR Deregulation for Export Parts

Key Points of Supplier’s Quality Activity

Present

Requirements in individual companies

Future - Simplification of supplier’s documents - Reduction of redundant expenses

AS9100 as the common requirement of the aerospace industry(AS9100 + additional requirements in individual companies)

Standardization of Quality Requirement

Present

Third-party audit + Customer audit + Internal audit

- Emphasis on audit evaluationby third-party

- Standardization of self-evaluationfor internal audit

Future Third-party audit + Internal audit

Efficient Evaluation for Supplier

Key Points of Supplier’s Quality Activity

Present

Audit responsibility for supplier using the above parts

Establishment of an authorized audit groupconsisting of IAQG memberships

Future Reduction of redundant audit expenses sharing

the information through the authorized audit group

Key Points of Supplier’s Quality ActivityEvaluation for Vendors of Purchased Parts including Catalog/Standard Parts and Raw Materials

Present

Requirement to use statistical control, in particular key characteristics

Flexible requirements in consideration of small lot production, in particular parts machined by manual operation

Future - Conformity against AS9100 even for small lot production

through emphasizing on processes - Reduction for administrative expenses

Key Points of Supplier’s Quality Activity

Consideration for Production Volume

Present

Difficulty of understanding

Instruction / guidebook / cross reference about FARas related document of AS9100

Future Clarification for compliance with

airworthness conformity

Key Points of Supplier’s Quality ActivityDifference of Requirements between

AS9100 and FAR

Present

Complexity of regulatory formalities

Future Simplification of regulatory formalities

Key Points of Supplier’s Quality Activity

Deregulation for Export Parts

AS9100 Conformity Mark on products sample: AS

9100

Concluding Remarks

We are convinced that

quality improvement & cost reduction

as supplier’s responsibility will be achieved through leadership of IAQG.

Thank you for your great efforts !