AEROSPACE QUALITY MANAGEMENT - INDUSTRY APPROACH

1. AEROSPACE QUALITY MANAGEMENT - INDUSTRY APPROACH Mark P. Allen ChairmanAmericas Aerospace Quality Group SAE Aerospace Committee G-14 February 14th 2002

2. AAQG Legitimacy • Committee of the Society of Automotive Engineers - designated Committee G14. • Operations are under the guidance and rules of SAE committees. • A cooperative organization within the aerospace industry in the Americas (including North, Central and South Americas). • Processes are established in a set of agreed, documented, operational procedures. • Not a legal entity. It is the responsibility of individual companies to implement such agreed upon common procedures.

3. AAQG Purpose • Establish and maintain a dynamic cooperation based on trust between Americas aerospace companies on initiatives to make significant improvements in quality performance and reductions in cost throughout the value stream. • Initial focus is to continuously improve the processes used by the supply chain to deliver consistently high quality products, thereby reducing non - value added activities and costs.

4. AAQG and IAQG Objectives • Establish commonality of quality standards and requirements • Common aerospace basic quality systems • Best practices in aerospace industry • Performance metrics • Establish process of continuous improvement at suppliers • Industry expectations • Lean manufacturing • Supplier performance metrics • Establish methods to share results • Audits • Inspections • Supplier performance • Establish implementation plans that bring the initiative to life • Obtain regulatory concurrence

5. AAQG 2002 Goals • Document policies and procedures • Formalize a charter • Initiate migration from system compliance to product conformance • More closely align with industry associations & other groups to eliminate redundant activities • DoD, Space, AIA….. • Continue project initiations and completions • Continuing education for the membership

6. AAQG - Membership * Denotes - IAQG Council Member • Members • Goodrich • Boeing Company* • Bombardier - Canada* • Embraer Aircraft - Brazil* • ENAER - Chile • GE Aircraft Engines* • Gulfstream Aerospace • Honeywell* • HELIBRAS - Brazil • Lockheed Martin* • LMAASA - Argentina • Northrop Grumman* • Parker Aerospace • Rockwell-Collins • Rolls-Royce Corp. • Raytheon Aircraft • Textron* • Bell Helicopter • Cessna Aircraft • United Technologies* • Pratt & Whitney • Sikorsky Aircraft • Hamilton Sundstrand • Vought Aircraft • Non-Voting Members • Suppliers • RAB • IAAR

7. AS 9100 Industry Acceptance / Usage • The IAQG implementation metrics show that; • 46% of members have implemented 9100 internally and to their suppliers • 18% of members have implemented 9102, FAI, internally and to their suppliers. • 8% of companies have implemented the recently published 9103, Component Proving, internally and to their suppliers. • Implementation is gaining momentum and this will increase, particularly when the new Boeing Quality System is reissued. • The sector implementation approaches are also making good progress but the benefits from global mutual recognition of Quality System audits is still not quite there yet - we need the global database.

8. 9100 Standard Alignment with ISO 9001:2000 • IAQG had the responsibility • Aligned aerospace requirements with the new ISO 9001:2000 • Incorporated lessons learned - clarified requirements • Coordination and resolution was by geographic sectors Americas (AAQG) Europe (EAQG) Asia (SJAC) • Goal to publish revision to AS9100 and prEN9100 and any other translated versions - est. June 2001 • AS9100A published by SAE in August 2001

9. 9100:2001 Highlights • Tokyo, March 2000 • 1st Draft - Provided to IAQG Sectors for review • Seattle, June 2000 • Consolidation of Sector comments • September, 2000 - Draft updated to 9001 FDIS • Toulouse, November 2000 • Continued review and consideration of changes for clarification & “lessons learned” • January, 2001 - Draft updated to final ISO 9001:2000 • New Orleans, March 2001 • Final Review and approval

10. 9100:2001 Highlights (cont.) • Intent of aerospace-unique requirements are not changed in new version of 9100 • ISO 9001:2000 revision now has requirementsdesired by industry, eliminating somerequirements from 9100:1999 version • Some requirements from ISO 9001:1994 are desired by industry and were added back to 9100:2001 version • 9100:2001 contains 80 aerospace unique requirements and 18 amplifications/notes

11. ISO 9001:2000 / 9100:2001Timeline 2000 2003 2001 2002 DEC. 2003 ISO 9001:1994 ISO 9001:2000 9100 : 1999 9100A : 2001 9100B ? 9100A:2001 will include both ISO 9001:1994 and ISO 9001:2000 models until December 2003

12. Aerospace-Sector Standard Development Timeline Initial ARD9000 AS9000 Meeting Issued Released AS9000 AS9100 AS9100A Start prEN9000-1 EN9000-1 prEN9100 Joint US/Euro Philadelphia Paris Munich T/C 20 WG 11 New Orleans Madrid Toulouse Seattle Tokyo WG 11 Review Review Formed AS9000 prEN9000-1 IAQG 1995 1996 1997 1998 1999 2000 2001 August 2001

13. Other Party Surveillance(Americas Companies) • AAQG is implementing SAE AIR 5359A document • AIR 5359A is approved & published • AAQG is working directly with Accreditation Bodies to approve CB’s and Auditors • 22 CB’s & 110+ auditors submitted by RAB have been Accredited to AS9000 • 22 CB’s (and 126 auditors) are Accredited to AS9100 at this time. More are expected

14. THE AMERICAS Other Party System Standards Council of Canada Registrar Accreditation Bureau INMETRO

15. Oversight Summary • Industry Co-operation on Quality System Requirements • A single global 9100 Aerospace standard • An agreed International process for procedure creation • Sector processes for 2nd or Other party approvals • Individual sector plans launched / global plans in work • Implementation planned progressively during 2001-2002 • Establish a mechanism for data exchange • International auditor training and qualifications • Communication to Authorities and Stakeholders • Industry will Monitor results and maintain momentum

16. INTERNATIONAL STANDARDS 9100 - Quality System for Aerospace Manufacturers 9110 - Quality System for Aerospace Maintenance Organizations - In work 9120 - Quality System for Aerospace Distributors - In work Aerospace Quality System Standards

17. International First Article Inspection Management of Key Characteristics Record Retention Nonconformance Documentation 2D Bar Coding (Draft) Part Qualification Process Americas AS9003 - “Less than” 9100 Production Process Planning Verification (software) Software Quality (Embedded / Product Acceptance) Internal Auditing Requirements Sub-tier Supplier Control Direct Shipments & Electronic Signatures Aerospace Quality Standards (cont.)

18. Industry Leaders are Listening • Agreed to improve the overall approach to quality • Major Aerospace Companies have agreed upon Quality Management System approval approaches • A key objective is to reduce the number of audits • There are significant benefits to the Aerospace Industry • Working to develop our International processes to incorporate the new approach • International approach is based on a single agreed standard, harmonization of system application and shared information

19. COPIES OF STANDARDS, REPORTS AND CHECKLISTS ARE AVAILABLE FROM SAE WWW.SAE.ORG Society of Automotive Engineers 400 Commonwealth Drive Warrendale, PA 15096-0001

20. Aerospace Quality Coordination Effort • Creation of Separate “SPACE, CIVIL & DEFENSE COMMITTEES” under AIA (incl. all associations) • Would meet to address unique needs of each industry segment within the framework of a coordinated Industry process. Would include participation of all affected Industry organizations including FAA, DoD and NASA. • AAQG process would remain unchanged • AIA Committees would join with the AAQG to integrate strategy and develop the products and tools needed for implementation • AAQG responsible for common standards, tools and methods with supplementation for specific sector needs • Involve NADCAP Activities with AAQG • Special Process issues would be assigned to NADCAP and Quality Systems would be handled through the AAQG

21. Arrangement of Quality Committees NADCAP TACTICAL CIVIL AVIATION FAA Civil Aviation Quality Committee AIA / GAMA ASA /ARSA OEM’s / PAHs MILITARY DoD DefenseQualityCommittee AIA-SMCAQWG NDIA /EIA Suppliers AIAA SPACEQualityCommittee SPACE NASA

22. SINGLE VOICE FOR QUALITY IN AEROSPACE INDUSTRY • Proposal would Eliminate overlap in Committees and Organizations • Reduction in resources and travel costs for participants • Eliminate redundant activities • Increase in Communications between Groups and Leadership • Focus customer and user information in many areas • Increase response and decision time for implementation • Obtain broader involvement of suppliers, customers and regulators • Better coordination / implementation of government / industry initiatives • Provide inputs and coordination for Global Quality Issues for the International Aerospace Quality Group

23. ORGANIZATIONAL BENEFITS TO INDUSTRY • Executive Quality Group • Clear senior level direction with supporting resources • Ability to challenge the status quo • Includes representation from Industry Associations • Americas Aerospace Quality Group • Development of industry-wide (global) processes when appropriate • Linkage with international organizations and initiatives through the IAQG • Official alignment with an ANSI recognized Standards Development Organization (SAE) • Commitment to use products both internally and with suppliers • Formal linkage to the supplier community

24. ORGANIZATIONAL BENEFITS TO INDUSTRY • AIA managed business-line unique Committees (Civil, Defense and Space) • Involvement of all stakeholders - customers, suppliers and associations • "Authorized" linkage to political and government/regulatory organizations • Communication with a business-line and across parallel business-lines • Linkage to other AIA Councils and Industry Associations

25. AAQG would perform Integration Function (incl International) INDUSTRY QUALITY POSITIONS / ACTIONS EXECUTIVE QUALITY GROUP AMERICAS AEROSPACE QUALITY GROUP STRATEGY&RESOURCES COMMUNICATIONS VALIDATION NADCAP SPACE CIVIL AVIATION DEFENSE STANDARDS Working Teams Working Teams Working Teams Working Teams

26. Proposal for New Aerospace Quality Coordination Effort Monday Tuesday Thursday Wednesday Working Teams AMERICAS AEROSPACE QUALITY GROUP EXECUTIVE QUALITY GROUP CIVILAVIATION Working Teams DEFENSE Working Teams NADCAPEXECUTIVEBOARDMEETING SPACE Working Teams Series of Structured Meetings in the Washington D.C. Area Twice a Year

27. AAQG Management Approach Aerospace Industry Segment Councils AAQG Commercial Space DoD Council Chairs ? ? Mark Allen Andy Brindisi Standards (PT-S) Dennis Lemon x x x Tools & Techniques (PT-T) Julie Sandrers x x x Implementation (PT-I) D. Buehler x x x Communications (PT-C) C. Adkisson x x x Industry Segment Teams Aerospace Project Teams

28. Next Meetings June 3-5, Boston, MA Sept. 9-11, Washington, DC

29. QUESTIONS

30. Back-up

31. IAQG IAQG General Assembly Meetings IAQG Council JAQG AAQG EAQG SJAC SAE AECMA National Trade Associations The International Aerospace Quality Group

32. IAQG Members • Europe • Airbus • EADS - Airbus/BDLI • Rolls-Royce and SBAC • EADS (France) • ALENIA and AIAD • SNECMA • EADS - CASA and ATECMA • BAE Systems • Agusta • Aermacchi • Eurocopter • Dassault • Intertechnique/GIFAS • MTU Aero engine • AECMA • Volvo-Aero • Americas • The Boeing Company • GE Aircraft Engines • Pratt & Whitney/UTC • Rockwell Collins • Honeywell • Northrop Grumman • Cessna - Textron • Rolls-Royce Corp. • Gulfstream • Embraer • BF Goodrich • Bombardier • Bell Helicopter Textron • Lockheed Martin • Raytheon • Vought Aircraft • Asia • Ishikawajima Harima Heavy Industries • Mitsubishi Heavy Industries • Kawasaki Heavy Industries • Fuji Heavy Industries • Shin Mayawa Industries • Aviation Industries of China • Korea Aerospace Industries • Hispano-Suiza • Turbomecca • Messier-Bugatti • Thompson-CSF Sextant

33. Aerospace Quality StandardsNumbering System • International Standards - 91xx • Are planned for harmonization across all 3 aerospace sectors and are recognized globally • Americas Standards - 90xx • Are published for use by AAQG, may become an 91XX standard at a later date • “AS” Standards - Americas • Published by Society of Automotive Engineers • “EN” Standards - Europe • published in Europe by AECMA • “JIS Q” is the Japan / Asia Equivalent

34. Governance Documents 101 Project Initiation 102 Committee Membership 103 Maintenance of Standards 100 Procedure Establishment Charter 104 Committee Meetings SAE Operating Guide SAE Tech Stds Board Governance 2