HTSI Quality Management System (QMS) Awareness May 2009

1. HTSIQuality Management System (QMS) AwarenessMay 2009

2. Safety: Safety Belts And Fatigue • Employee Escapes Rough Rodeo Ride • A Honeywell employee dozed off for a few • seconds while returning to Colorado Springs • from Denver on April 12, 2009. He awoke • as the SUV was veering to the right. After • braking, the SUV flipped over. The driver • had some minor scratches and bruises but • seat belt usage prevented serious injury. • The Isuzu Rodeo didn’t fare so well and was • totaled. • When Traveling • Plan ahead and prepare your vehicle • Buckle up without exception • Children in the back! Airbags can be fatal • Drive at a speed commensurate with the road conditions • Have emergency notification plans • Preset cell phone an ‘ICE’ (In Case of Emergency); if you are unconscious, emergency responders can call • Fatigue And You • Get fresh air and frequent stops; schedule your breaks and stretch • Avoid heavy food and any alcohol while driving • Sleep in a hotel, not your car

3. SPACER Purpose • Sharing of best practices Agenda (next slide) Code of Conduct • Begin & End on Time Be Courteous • One Speaker at a Time Listen • Confused? Speak Up! Speak Your Mind • Stay on Track Have Fun • (…may be added to at the meeting) Expectations: Provide overview of the HTSI QMS Provide understanding of ISO 9001:2008 Roles • Leader: Paul Klink

4. Agenda • (10 min) HTSI Overview • You will gain a basic understanding of HTSI, including it’s origin and structure. • (10 min) ISO Overview • You will gain a basic understanding of ISO, including it’s origin and structure, and how it is implemented within HTSI. • (10 min) HTSI Quality Manual • You will be introduced to the purpose, design and structure of the HTSI Quality Manual • (15 min) How Quality Affects You: • You will understand your role and responsibility in maintaining quality within the organization. • You will discover how the QMS requirements affect departmental processes and procedures. • (15 min) Audits • You will gain a basic knowledge of what to expect from an audit, and your role in ensuring a successful process.

5. ISO 9001:2008 Statement on Customer Property • 7.5.4 Customer Property • The program exercises care with customer property while it is under the program’s control or being used by the program. The program identifies, verifies, protects, and safeguards customer property provided for use or incorporation into the service. If any customer property is lost, damaged, or otherwise found to be unsuitable for use, the organization shall report this to the customer and maintain records (refer to Section 4.2.4). Procedure 30.301 defines the processes and requirements for controlling customer property.

6. Honeywell Technology Solutions Inc. Overview

7. Business, and General Aviation Honeywell International Inc. CHAIRMAN & CEO CHAIRMAN & CEO Dave Cote Dave Cote PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO Automation and Automation and Aerospace Transportation Transportation Specialty Materials Specialty Materials Automation and Automation and Aerospace Aerospace Transportation Transportation Aerospace Systems Systems Control Solutions Control Solutions Systems Systems Control Solutions Control Solutions Rob Gillette Rob Gillette Adriane Brown Adriane Brown Andreas Kramvis Roger Fradin Roger Fradin Rob Gillette Rob Gillette Adriane Brown Adriane Brown Roger Fradin Roger Fradin PRESIDENT PRESIDENT PRESIDENT PRESIDENT PRESIDENT PRESIDENT PRESIDENT PRESIDENT PRESIDENT PRESIDENT PRESIDENT PRESIDENT Defense & Space Business, General Defense & Space Defense & Space Business, General Business, General Air Transport & Regional Air Transport & Regional Defense & Space Air Transport & Regional Air Transport & Regional Aviation & Helicopters Aviation & Helicopters Aviation & Helicopters Tim Mahoney Tim Mahoney Tim Mahoney Dean Flatt Rob Wilson John Bolton Garrett Mikita Rob Wilson Dean Flatt Dean Flatt Rob Wilson Rob Wilson PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO Honeywell Technology Honeywell Technology Honeywell Technology Honeywell Technology Solutions Inc. Solutions Inc. Solutions Inc. Solutions Inc. Mark Howes Mark Howes Mark Howes Vince Trim Fortune 500 Company

8. Honeywell International 122,000 employees in more than 100 countries A Fortune 100 company – sales of $36.6 billion in 2008 “America’s Most Admired Companies” – Fortune magazine “Corporate Social Responsibility Award” – Foreign Policy Association “The Alexander Hamilton Award” – Treasury and Risk magazine “Most Admired Companies” – Career Communications Group, the publisher of U.S. Black Engineer & Information Technology, Hispanic Engineer & Information Technology, Science Spectrum and Women of Color magazines Transportation Systems $4.6B ~13% Aerospace $12.7B ~35% Aerospace $12.7B ~35% Automation & Control Solutions $14.0B ~38% Automation & Control Solutions $14.0B ~38% Specialty Materials $5.3B ~14% $36.6 Billion in 2008 Sales

9. Defense & Space Key Customers Segment Key Customers • US Army • US Air Force • US Navy • Boeing • Lockheed Martin • Raytheon • Bell • NASA • Classified • MoD • BAE • Japan DoD Americas OEMs Asia Space EMEA-I International Key Customers Worldwide +5,000 Customers Well-Diversified Customer Base 9

10. Honeywell Technology Solutions Inc. OVER 50 YEARS PROVIDING QUALITY GOVERNMENT SERVICES Space, Networks & Communications Logistics Services Technical Services PROFILE HERITAGE • Wholly-owned subsidiary headquartered in the Washington-Baltimore Corridor • Approximately 5,000employees • Over 100 locations: 22 countries, 33 states, the District of Columbia • More than 100 active contracts • Bendix Radio (1950) • Bendix Field Engineering Corporation (1961) • AlliedSignal Technical Services Corporation (1993) • Honeywell Technology Solutions Inc. (2000) • Dimensions International Acquired (2007) Primarily Government Technology-Oriented Solutions 10

11. Canada Canada PEI, Canada Montreal, Afghanistan Kuwait UAE Qatar Saudi Arabia HTSI Business Profile Europe Asia Poker Flat, AK Other Locations: Antarctica Bosnia Classified Diego Garcia Djibouti Greenland Puerto Rico 16 ships at sea Washington DC Kauai, Hawaii Ft. Campbell, KY Warren MI Olathe, KS Ft. Riley, KS Norway Baltimore, MD Southbend, IN Cleveland, OH Republic of Korea Camp Springs, MD Redmond, WA Ft. Lewis, WA Colorado Springs, CO Urbana, OH Ft. McCoy, WI Germany Columbia, MD Boulder, CO OHARNG Atlantic City, NJ Ft. Ripley, MN Landover, MD Okinawa, Japan Okinawa, Japan United Kingdom Ft. Carson, CO Manchester, NH SDARNG Tacoma, WA IAARNG Fort Meade, MD Goldstone, CA MEARNG Rock Island, IL Ft. Drum, NY Fort Detrick , MD Sunnyvale, CA Kyrgyzstan Guam Greenbelt, MD Lompoc, CA Thailand Lanham-Seabrook, MD Camp Roberts, CA Quantico, VA La Plata, MD Croatia Arlington, VA Pasadena, CA Italy Lexington Park, MD Hungary Portsmouth, VA Torrance, CA Patuxent River, MD Wallops Is., VA Middle East Los Angeles, CA Eustis, VA Riverside, CA Rocky Mount, NC Programs: IAARNG - Iowa Army National Guard MEARNG - Maine Army National Guard OHARNG - Ohio Army National Guard SDARNG - South Dakota Army National Guard TNARNG - Tennessee Army National Guard San Diego, CA Ft. Bragg, NC Yuma, AZ Tucson, AZ Ft. Huachuca, AZ Hanahan, SC TNARNG Ft. Bliss, TX Glendale, AZ Charleston, SC Ft. Stewart, GA New Orleans, LA Ft. Sill, OK Goose Creek, SC Phoenix, AZ Kirtland, NM Socorro, NM Albuquerque, NM Corpus Christi, TX Ft. Rucker, AL Buford, SC Tempe, AZ Titusville, FL Ft. Leonard Wood, MO Merritt Is., FL Ft. Hood, TX Montreal, Canada Orlando, FL Huntsville, AL Houston, TX Ft. Gordon, GA Ft. Benning, GA White Sands, NM Jacksonville, FL Note: Foreign sites under US Government contracts HTSI Role Customer Mix Contract Type 4% Fixed Price Other Govt Sub CPFF Army T&M HON Navy Prime Air Force CPAF NASA

12. Examples of What We Do Control NASA, NOAA & Navy satellites and mission operations Quality Assurance, inspection and audits services Provide logistics provisioning for USMC’s Maritime Prepositioning Force Operate and maintain NASA’s Ground Network Operate and maintain NASA’s Space Network Ensure asset accountability in CONUS & OCONUS Deliver availability of critical aircraft systems on a power-by-the-flight-hour basis Maintain, upgrade,and sustain theAir Force Satellite Control Network Missions of National and Scientific Importance

13. HTSI Logistics Services Profile Services Provided: Material Readiness  Supply Chain Management for War Fighting Assets  Performance-Based Logistics (PBL) Partnerships  Inventory & Delivery Management Warehouse Operations Logistics Planning Maintenance Field Service Support Sense and Respond Equipment Rework Ammo Supply Operations Asset Management & Accountability Total Package Fielding (TPF)  New Equipment Training (NET) Medical Logistics • Customers: • Department of Defense (DoD) • Department of State • Honeywell • U. S. Air Force • U. S. Army • U. S. Marine Corps • U. S. Navy From Refurbishment to Performance-Based Logistics

14. HTSI Technical Services Profile Services Provided: Information Assurance  Field Engineering  Systems Engineering Project Management  Property Management  Testing Quality Services  Commercial Plant Operations  System Integration, Installation & Maintenance  Software Development  Training Engineering & Support Systems  Physical Security System Installation Database Design & Management Web Development  Range Operations  Source & First Article Inspections  Quality System Audits Metrology Providing Aircraft Track/Flight Plan Data • Customers: • Defense Threat Reduction Agency (DTRA) • Department of Defense (DoD) • Federal Aviation Administration (FAA) • Honeywell • Incorporated Research Institutions for Seismology (IRIS) • Airport Authority • National Aeronautics Space Administration (NASA) • National Programs • National Oceanic & Atmospheric Admin (NOAA) • Transportation Security Agency (TSA) • U. S. Air Force • U. S. Marine Corp • U. S. Navy • U. S. Army • U. S. Geological Survey (USGS) • United States Enrichment Corporation (USEC) Right People Providing Critical Services to Our Customers … Anywhere

15. HTSI Space & Networks Profile Services Provided: Systems Engineering Mission Asset Planning, Command and ControlMissionMission Data Processing, Analysis and Exploitation RF Center of ExcellenceGround System Operations, Maintenance, and Sustainment Network Systems Design, Development, and Integration Flight Dynamics Modeling and Simulation  Flight Systems Test and Evaluation • Customers: • Department of Defense (DoD) • National Aeronautics Space Admin (NASA) • National Oceanic & Atmospheric Admin (NOAA) • National Programs • U. S. Air Force • U. S. Army • U. S. Geological Survey (USGS) • U. S. Navy • Universities 50 Years of Command, Control, Communication, Computers & Intelligence Expertise

16. GENERAL ISO OVERVIEW

17. What is ISO? “ISO” is the recognized short name for the International Organization for Standardization - - from the Greek word “equal” • Founded in 1946 • ISO (International Organization for Standardization) is the world's largest developer and publisher of International Standards. • ISO is a network of the national standards institutes of 161 countries, one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system. • ISO is a non-governmental organization that forms a bridge between the public and private sectors. On the one hand, many of its member institutes are part of the governmental structure of their countries, or are mandated by their government. On the other hand, other members have their roots uniquely in the private sector, having been set up by national partnerships of industry associations. • Therefore, ISO enables a consensus to be reached on solutions that meet both the requirements of business and the broader needs of society. • The U.S. representative to ISO is American National Standards Institute (ANSI)

18. What is ISO 9001:2008? • It is a minimum set of quality system standards. These documented standards are geared towards the quality management systems of both manufacturing and service oriented companies. • The standards apply to processes. • Because it is process-focused, it integrates the application of procedures and methods in order to provide consistency of service and product, to create a measurable standard of quality and improvement, and to improve the overall service to the customers.

19. What is a Quality Management System? • It is the organizational structure, responsibilities, procedures, processes, and resources for implementing quality management throughout the business. Everyone is part of the QMS

20. ISO Principles • If it is not documented, it did not happen. • Everything must be reviewed, and “he who does, can’t review.” • ISO is continuous improvement. • One specific person must be identified (by title) who is in control of each activity. • ISO only applies to what HTSI provides to clients or plans to provide to clients. • Every employee of the company is responsible to know and implement the system. • The ultimate responsibility for any ISO-registered system is the firm’s Leader. (It is not a delegated function.) These principles apply to all employees

21. Said another way... ISO 9001:2008 compliance provides confidence to employees, the organization, and the customer that the quality system is: • Documented • Demonstrable • Effective • Maintained

22. HTSI Hierarchy of Documentation Level 1: HTSI Quality Owned and Maintained by HTSI Director of Quality and Six Sigma Plus - Supplements prepared and Manual maintained by HTSI Contract or Site ) QM HTSI Policies, Procedures, Level 2: HTSI Policies and Plans in HiiMS Policies and and Procedures procedures Local Procedures/Work Instructions (includes documents of external origin) Level 3: Local Local Procedures Procedures Records produced by the QMS Level 4: Records Records Documented & Demonstrable Documented: Demonstrable: • Actual work and management practices must be the same as those described in the documentation (Policies, Procedures, and Work Instructions) • Checked through internal audits • Checked through external audits • Day to day operations and usage Records must provide evidence that requirements for quality are met

23. Effective & Maintained • Effective • The quality system must accomplish the purpose for which it was intended • Services actually satisfy requirements and customer expectations • Emphasis is on problem prevention, rather than detection after the fact • Strive to be proactive rather than reactive • Maintained • The quality system must be dynamic and take into account changes to the: • Organization’s services • Customer requirements • Organizational structure Audits and management reviews are the basis for the maintenance of the QMS

24. How does HTSI benefit from ISO 9001:2008 QMS? • Provides consistent direction through Policies, Procedures and work instructions • Ensures process knowledge reaches everyone • Provides a systemic means to continuously improve • Empowers employees to effect change • Fosters a “systems” approach for process improvement • Provides records of compliance, effectiveness and improvement • Averts close-out to critical opportunities • Pre-qualifies HTSI -- simplifies teaming and bidding • Adds discipline to our quality program and overall organization Supports growth opportunities

25. HIIMS Portal Location of Policies and Procedures for Employees

26. ISO 9001:2008 Support Structure • Management Leader – Vince Trim • Management Representative – Bill Hunter • ISO 9001:2008 Coordinator – Paul Klink • Corrective Action System Administrator – Paul Klink • Internal Auditors (next slide)

27. Internal Auditors (L) denotes Lead Auditor Certified Trained ISO 9001 Internal Auditors

28. Document Control Administrators (DCAs)

29. HTSI QUALITY MANUAL

30. HTSI Quality Manual PURPOSE The Quality Manual: • Describes and documents the current HTSI Quality Management System • Is the central source of general policies, procedures and responsibilities that authorize and govern creation of subordinate quality related documentation and activities • Provides comprehensive evidence to all customers and employees that HTSI is committed to establishing and maintaining acceptable levels of quality in its products and services The requirements and procedures addressed in the Quality Manual are intended to meet the requirements of ISO 9001:2008 and customer quality requirements

31. HTSI Quality Manual 1./2./3. Scope/Reference/Terms 4. Quality Management System 4.1 General Requirements 4.2 Documentation Requirements 5. Management Responsibility 5.1 Management Commitment 5.2 Customer Focus 5.3 Quality Policy 5.4 Planning 5.5 Responsibility, Authority and Communication 5.6 Management Review 6. Resource Management 6.1 Provision of Resources 6.2 Human Resources 6.3 Infrastructure 6.4 Work Environment

32. HTSI Quality Manual: 7. Service Realization 7.1 Planning of Service Realization 7.2 Customer-Related Processes 7.3 Design and Development 7.4 Purchasing 7.5 Production and Service Provision 7.5.4 Customer Property 7.6 Control of Monitoring and Measuring Devices 8. Measurement, Analysis, and Improvement 8.1 General 8.2 Monitoring and Measurement 8.3 Control of Nonconforming Product 8.4 Analysis of Data 8.5 Improvement

33. HOW QUALITY AFFECTS YOU:

34. How Quality Affects You: HTSI Quality Policy We take personal responsibility to deliver our products and services right the first time, on time, every time. HTSI will satisfy customers, comply with requirements, and continually improve our organizational capabilities, processes, and systems. • The HTSI Quality Policy is found in section 5.3 of the Quality Manual

35. How Quality Affects You: • Sections 1:Scope, 2:Reference, and 3:Terms The HTSI (QMS) incorporates all applicable ISO 9001-2008 QMS requirements and incorporates additional customer and/or regulatory requirements as applicable. HTSI’s Leadership Team will decide which contracts will be included in the certification. Functions Top Management Human Resources Contracts & Purchasing Operational Excellence Finance Business Development & Pricing IT & Security Program Management Note: In this manual, the term “service” applies only to the service or product intended for, or required by, a customer

36. How Quality Affects You: • Section 4: Quality Management System HTSI QMS Process Model Section 4.2.1: General

37. How Quality Affects You: Section 4: Quality Management System 4.2.1 General 4.2.2 Quality Manual 4.2.3 Control of Documents • 25.002 HTSI Procedure for Document Control 4.2.4 Control of Records • 25.009 HTSI Procedure for Records Control Note: No records or documents should be stored on personal computers that are not backed up

38. How Quality Affects You: Section 5: Management Responsibility • 5.2 Customer Focus • 5.3 Quality Policy • 5.4.1 Quality Objectives • 5.5.1 Responsibility and Authority • Subsection b): Program Manager & ESU Leader Responsibility • Subsection c): Individual Employees

39. How Quality Affects You: 6.2.2 Competence, awareness and training • LMS 6.4 Work Environment • HTSI Health, Safety and Environmental Office: (410) 964-7019 • Honeywell Integrity and Compliance Help Line: (800) 237-5982 Section 6: Resource Management

40. How Quality Affects You: Section 7: Service Realization • 7. 1 Planning of service realization • 10.001 Program Planning Procedure • 7.2.1 Determination of requirements related to service • 7.2.2 Review of requirements related to service • 7.2.3 Customer Communication • 7.3 Design and Development • Sections 7.3.1 thru 7.3.7 (to include Design & Development Planning, Review, Verification, Validation and Changes)

41. How Quality Affects You: Section 7: Service Realization (cont.) • 7.4 Purchasing 35.001 Procurement Manual • 7.5 Production and Service Provision Sections 7.5.1 thru 7.5.5 including Government Property Control Procedure 30.301 7.5.4 Customer Property The program exercises care with customer property while it is under the program’s control or being used by the program. The program identifies, verifies, protects, and safeguards customer property provided for use or incorporation into the service. If any customer property is lost, damaged, or otherwise found to be unsuitable for use, the organization shall report this to the customer and maintain records (refer to Section 4.2.4). Procedure 30.301 defines the processes and requirements for controlling customer property.

42. VOC Review Process ES&S Q3 03 Overall Sat and Trend ES&S Attribute Trends Goal = 80 Actual = 87% Goal = 85 Actual = 89% Actual = 84% Goal = 90 Actual = 83% Goal = 80% Dissatisfiers 3Q03 VOC Dissatisfiers by Attribute 3Q03 Dissatisfied by SBE ES&S Q3 03 Overall Red Actual = 91% 25 Goal = 95 Actual = 93% Goal = 90 Actual = 83% Goal = 90 20 20 15 Yellow 15 10 Yellow Red 5 10 Red 0 5 ES&S SR Monthly Metrics Quality Value Reliability Delivery ES&S Above Goal of 80% for 2 Consecutive Quarters Development ES&S Above Goal of 80% for 2 Consecutive Quarters Responsiveness Service/Support 0 AFS ESA AAS PSE HPG 6 13% (of all cards) 18% 19% 30% 20% AAS Overall VOC - Q3 2003 7 SBE Overall Trend SBE Overall Trend Current Attribute Score Cause Pareto • AFS & ESA have 57% of Reds Pareto Current Attribute Score Cause • No clear systemic driver across ALL & Yellows…but only 37% of all ES&S 98% cards! Focus RCCA within the SBEs Focus RCCA within the SBEs 9 VOC 96% 11 All Time Highs Achieved. 98% All SRs and 96% VOC Critical All Time Highs Achieved. 98% All SRs and 96% VOC Critical 14 AAS Multi-site TAT initiatives Driving Customer Satisfaction 19 AAS Multi-site TAT initiatives Driving Customer Satisfaction How Quality Affects You: • Section 8: Measurement, Analysis & Improvement • 8.2.1 Customer satisfaction Voice of the Customer (VOC) • 8.2.2 Internal audit 25.006 Internal Quality Audit • 8.3 Control of Nonconforming Product 35.902 Acceptance or Rejection of Nonconforming Supplies ATLAS used to capture voice of the customer

43. How Quality Affects You: Section 8: Measurement, Analysis & Improvement (cont.) • 8.4 Analysis of Data Six Sigma & Lean Statistical Techniques • 8.5.1 Continual improvement (Six Sigma Plus) • Defining customers and requirements. • Measuring current process performance and developing measures to enable improvement. • Analyzing the data to determine root causes and opportunities for improvement. • Improving to generate, select, design, test, and implement improvements. • Controlling to institutionalize and monitor improvements

44. How Quality Affects You: Section 8: Measurement, Analysis & Improvement (cont.) • 8.5.2 Corrective action 25.006 Corrective and Preventive Action • 8.5.3 Preventive action 25.006 Corrective and Preventive Action eCATS Electronic Corrective and Preventive Action Tracking System

45. AUDITS

46. Audits: What do you expect from me? • Know where your procedures are located • HIIMS • Know and follow your procedures • Understand and be able to execute a change in your procedures • Remove obsolete documents from points of use • The only current documents are on HIIMS • Understand the Quality Policy and be able to explain what it means to you and what role you play in it • Understand the Quality Objectives and be able to explain what they mean to you and what role you play in them

47. Audits: What do you expect from me? (cont.) • Know where your training records are kept and your training requirements • Training Database and through your supervisor • It is the employee and supervisors job to keep your training updated • Bring nonconformities to the attention of management • Know how your work contributes to the quality of the service provided to the customer • Know how the various ISO elements apply to your job and work life • Know your ISO Management Team!

48. During an audit... • Auditors want to determine: • Do our processes and procedures meet ISO 9001 requirements? • Do we follow our customers requirements? • Do we follow our procedures and work instructions? • Typical Questions: • Describe your job. • What training have you received? • Does your job have documented procedures or work instructions? • If so, show me where they are. • Are your procedures and work instructions correct? Answer questions honestly, directly, and to the best of your ability. Auditors look at our system, not our people!

49. Bottom line… • ISO 9001:2008 outlines a system that helps us do what we all want to do… • Say what you do. • Do what you say. • Record that you have done it. • Audit for compliance and effectiveness. • Obtain feedback and continuously improve. Deliver the BEST service to the customer we can, by doing it right the first time, all the time, every time!!!

50. Q & A Are there any questions or comments? • HTSI ISO Management: • Paul Klink HTSI Quality Manager Phone 410-964-7470 paul.klink@honeywell.com Call anytime!!