International Aerospace Quality Group (IAQG)

1. International Aerospace Quality Group(IAQG) IAQG Overview IAQG Supplier Forum Montreal, Canada, October 10th, 2013 Xavier Sahutd’Izarn IAQG President SAFRAN

2. IAQG Mission The mission of the IAQG is to implement quality initiatives that make improvements throughout the value stream of products and services For that purpose, the IAQG: • Promotes quality culture • Establishes and maintains quality management system standards and certification system, recognized by international normalization bodies and regulatory and governmental agencies • Collects and offers best practices and processes • Promotes cooperation between international aviation, space and defense companies • Maintains relationships with regulatory and governmental agencies and other industry stakeholders

3. IAQG Vision IAQG is recognized and valued as the world’s leading authority for Aviation, Space, and Defense Industry quality

4. IAQG Five Year Vision • Product and Services Quality and Deliverywill have improved 20% per yearthroughout the product lifecycle • Robust processes achievedthroughout the supply chain • IAQG Quality Management System certificationprogram is robust, recognized and valued • 90% of the supply chain certifiedto IAQG Quality Management System Standards

5. International Aerospace Quality Group IAQG: A Global Team IAQG Council 68 Major OEMs worldwide AAQG (Americas) 21 AAQG members APAQG (Asia & Pacific) EAQG (Europe) 13 APAQG members 34 EAQG members Whose mission is to: Achieve significant performance improvements in Quality, Delivery, and consequently Cost, on all products and services throughout the value stream

6. IAQG Strategic Focus Improvement Strategy Relationship Growth Strategy • Requirements • People Capability • Product & Supply Chain Improvement • Performance • Civil Authorities - Production • Space • Defense • Maintenance, Repair & Overhaul • Trade Associations IAQG Other Party Management Team 3 Axes Aligned to Address Challenges

7. IAQG Achievements IAQG Vision Goals Management • Product and Services Quality and Delivery will have improved 20% per year throughout the product lifecycle • Flow Down by IAQG Member Companies • 4th IAQG Strategy Improvement stream created with “Performance” • Performance Index implemented within IAQG • Supplier performance as seen by IAQG Member Companies (2010 Performance level complete – 2012 in process) • Indicators definition completed as part of SCMH • (Supply Chain Management Handbook)

8. IAQG Achievements • Robust processes achieved throughout the supply chain • Flow Down by IAQG Member Companies • SCMH providing Best Practices / Tools • Dedicated SCMH tools to assess processes maturity

9. IAQG Achievements • IAQG Quality Management System certification program is robust, recognized and valued • ICOP (Industry Controlled Other Party) • Certification Auditor accreditation reinforced: • Harmonized Training & Examination materials controlled by IAQG • Certification Audit duration revised: • Minimum audit duration defined • New requirements for auditing Management Systems with multiple QMS applicability • Civil Authorities recognition

10. IAQG Achievements • 90% of the supply chain certified to IAQG Quality Management System Standards • Flow Down by IAQG Member Companies • Yearly IAQG Survey monitoring 9100 Certification with: • IAQG Member companies certification rate • IAQG Suppliers rate

11. IAQG Achievements • 90% of the supply chain certified (Cont’d) • Suppliers certification rates: • Biases: • AAQG: Effect of Member companies not mandating suppliers to be 9100 certified ( 12 on 20  60 %): • Rate at 60,2 % instead of 77,7 % for the others • EAQG: EAQG Members with only Defense and Space activities (6 on the total of 35): • Rate at 42,3 % instead of 75,8 % for the others

12. Summary • IAQG mature organization with 15 years existence • Significant achievements throughout the years: • QMS requirements • Certification scheme • SCMH • Need all Supply Chain players involvement Common goal: Improve our Industry performance for the benefit of all parties

13. Thanks for your valuable contribution

14. Back-Up

15. IAQG Membership

16. IAQG Membership The IAQG membership comprises: • Companies who carry out the design, development, manufacture and support of original equipment at system or subsystem level for • Aviation and Space products (including platforms and systems) and services • Land and Sea based systems for defense applications • Trade Associations, and their related bodies created by those aerospace companies, may be Members at Large

17. IAQG Membership 13 Members Americas • Aerojet • ATK • Ball Aerospace • Boeing • Bombardier • Eaton • Embraer • GE Aviation • General Dynamics/Gulfstream • Honeywell • Lockheed Martin • Moog • Northrop Grumman • * Parker Aerospace • Raytheon • Rockwell Collins • Rolls-Royce North America • Spirit AeroSystems • Textron • Triumph Group • UTC Asia Pacific • Aerospace Industrial Development Corporation (AIDC) • AVIC • COMAC • DSO National Laboratories • EGAT • Fuji Heavy Industries • Indonesian Aerospace • IHI • Kawasaki Heavy Industries • KAL-ASD • Korea Aerospace Industries • * Mitsubishi Heavy Industries • ShinMaywa Industries 21 Members Blue Indicates Voting Member * Indicates Sector Lead

18. IAQG Membership 34 Members Europe • Advanced Electronics Company • AgustaWestland • Airbus • *Airbus Military • Alenia • Astrium • Avio Aero • BAE Systems • Cassidian • Dassault Aviation • ELBIT Systems • Eurocopter • FACC • Fokker Aerospace • GKN Aerospace Engine Systems • HEGAN • Israel Aerospace Industries • MBDA • Meggitt • Messier-Bugatti-Dowty • MTU Aero Engines • PFW • RAFAEL • Rolls-Royce • Russian Helicopters • SAAB Aerospace • SAFRAN • SAGEM • SNECMA • SONACA • THALES • Turbomeca • UAC • Zodiac Aerospace * Indicates Sector Lead Blue Indicates Voting Member

19. IAQG Strategy streams

20. Improvement StrategyStreams • 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 • Deployment of Global Supply Chain Process standards and guidelines to ensure continually improving OTOQD internally and externally • Performance • Provide objective data demonstrating the excellence performance and continual improvement of the whole Aviation, Space and Defense Supply Chain

21. Relationship GrowthStrategy • 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 *: At Sector level only

22. Performance

23. IAQG PerformanceIndex Item Escape Rates (ppm) On Time Delivery (%) 250 data points On Time Delivery Median Value dynamics : Year 2010 : 80% Year 2012 : 85% Same range and standard deviation Item Escape Rate Median Value dynamics : Year 2010 : 4300 ppm Year 2012 : 4000 ppm Same range and standard deviation Data to be considered with caution as related to sample characteristics

24. SCMH (Supply Chain Management Handbook)

25. SCMH Status SCMH Chapters & Content 1. Sales, Master Scheduling & Sequencing 2. Contract Requirements & Flow Down • Master Scheduling • Requirements & Flow Down Templates • Contractual Requirements Review & Management Guidance 4. Suppliers sourcing selection & approval 3. Design & Development • Special Requirements & Critical Items • Software Guidance (9115) • Quality Aspects of New Product Development • Supplier Selection and Capability Assessment • Product Performance Detailed Assessment Checklists Available Work In Progress Future

26. SCMH Status 5. Plant, material, skills, capacity planning & scheduling 6. Order Management and logistic (Internal & external) New Soon • Order Management and logistic • Planning of Product Realization (Plant, material skills and capacity planning) Re-launch 7. Manufacturing and Inspection 8. Supplier operational management and product validation • Managing Product and Process Variation (9103) • 9102 Material for First Article Inspection • Foreign Object Debris (FOD) • Notification of Change Tool • Supplier Quality Mgt Basics • Subtier Supplier Control Management • Advance Product Quality Planning APQP Available Work In Progress Future

27. SCMH Status 9. Control of non conformities, corrective and preventive actions 11. Business Management & Customer Sat. Monitoring Soon Soon • Work Transfer • Configuration Mgmt • Risk Management • Delivery Metrics Definition • Root Cause Analysis & Problem Solving • Control of Non Conformities • Process Mapping (VSM Based) • Counterfeit & Suspect Unapproved Parts 10. Customer Support (Control of service operations) Available Work In Progress Future

28. SCMH Status Appendices New • 9100 Rev C Deployment Support • People Capability PCAP 001 • Link to ICOP Overview • 9100/SSCA/PPDAC Comparison • IAQG dictionary Available Work In Progress Future

29. ICOP (Industry Controlled Other Party)

30. Industry ControlOther Party (ICOP) The Aerospace ‘ICOP’ scheme The ‘traditional’ scheme 3rd party Certification for ISO 9001 Approval and oversight 2nd party audits Industry Industry Accreditation Bodies Accreditation Bodies accreditation Surveillance based on risk analysis & product audit Certification Bodies Certification Bodies Suppliers certification Auditors Other party Certification for 9100/9110/9120 Suppliers Suppliers

31. IAQG Achievements (Cont’d) Industry ControlOther Party (ICOP) • ICOP scheme • 83.2% of certificates issued are single site certificates • 93.3% of certificates are one or two sites

32. IAQG Achievements

33. IAQG Achievements • Requirements to harmonize the Quality Management System (QMS) • 91xx Series Requirements (9100, “ Aviation, Space & Defense Organizations” – 9110, “ Maintenance Organizations” – 9120, “ Distributors”) • 9101 & 9104 Trilogy (Requirements for Certification Audits & ICOP scheme Management)

34. IAQG Achievements (Cont’d) • Requirements to Improve Product Integrity • 9102, “First Article Inspection” • 9103, “Variation Management of Key Characteristics” • 9131, “Non-conformance Documentation” • 9134, “Supply Chain Risk Management Guidelines” • And others…

35. IAQG Achievements (Cont’d) • SCMH (Supply Chain Management Handbook) • 9102 First Article Inspection support materials • 9103 Key Characteristics Training • Root Cause Analysis and Problem Solving • Supplier Selection & Capability Assessment Model • Work Transfer Management • And others…