International Aerospace Quality Group (IAQG)

1. International Aerospace Quality Group (IAQG) General Assembly Washington DC April 16, 2010

2. A Global Team International Aerospace Quality Group IAQG Council General Assembly Forums AAQG (Americas) APAQG (Asia & Pacific) EAQG (Europe) Whose mission is to: Achieve significant performance improvements in Quality, Delivery, and consequently Cost, on all products and services throughout the value stream

3. 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

4. 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

5. 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

6. Organization Council Voting Members from each Sector 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 Leadership Team President Americas Sector Leader (AAQG) Europe Sector Leader (EAQG) Asia Pacific Sector Leader (APAQG) Strategy Working Group Communications Other Party Management Relationship Growth Strategy Improvement Strategy Requirements Civil Authorities – Production Space Defense Maintenance, Repair & Overhaul Trade Associations Operating Management System Product and Supply Chain Finance People Capability

7. Americas (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 Council • Asia Pacific (APAQG) • AVIC • Fuji Heavy Industries • IHI • Kawasaki Heavy Industries • Korea Aerospace Industries • Mitsubishi Heavy Industries

8. 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. 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) IAQG Membership - Americas * AAQG Sector Chair + Voting Member

10. 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*+ Sponsor: Aerospace and Defense Industries Association of Europe (ASD) IAQG Membership - Europe • Fokker Aerospace • GE Aviation Systems • HEGAN • Hispano-Suiza • Israel Aerospace Industries • Liebherr-Aerospace • MBDA • Meggitt • Messier-Dowty • MTU Aero Engines • PFW * EAQG Sector Chair + Voting Member

11. 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 Sponsor: Society of Japanese Aerospace Companies (SJAC) IAQG Membership - Asia Pacific * APAQG Sector Chair + Voting Member

12. IAQG Strategic Focus Improvement Strategy Requirements People Capability Product & Supply Chain Improvement Performance Relationship Growth Strategy Civil Authorities - Production Space Defense Maintenance Repair & Overhaul Trade Associations Operating Management System Other Party Management Team Integration Team

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. Resources Oversight Oversight Oversight Product/Process Oversight Conformance Conformance IAQG & SMS Oversight International Accreditation Forum (IAF) Peer Review IAQG OPMT Oversight of SMS Europe, Asia Pacific, Americas ICOP Oversight Scheme SMS AB, CB & Auditor Approval Shared Oversight ICOP Accreditation Body (AB) (9100, 9110, 9120) IAQG Member Companies Representatives Oversight ICOP Certification Body (CB) (9100, 9110, 9120) DATA DATA On-line Aerospace Supplier Information System (OASIS) Supplier (CB Client) ICOP Certification IAQG (Supplier Surveillance, Product/Process Audit) Certification Recognition

21. 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 Homepage or go direct with this link: http://www.iaqg.sae.org/scmh

22. www.iaqg.org For More Information

23. Questions? 23