Bill Schmiege Parker Hannifin

1. IAQG “Supply ChainManagement Handbook”IAQG General AssemblyYork, North Yorkshire, UKFriday, October 22, 2010 Bill Schmiege Parker Hannifin 1

2. Content • Introduction to Supply Chain Management Handbook (SCMH) • SCMH content today and tomorrow • Accessing e-SCMH • Examples

3. Supply Chain Management Handbook (SCMH): • What is the SCMH ? • A collection of guidance materials, trainings, best practices for Suppliers • What are the Objectives of the SCMH? • Provide guidance material to help improve the “On Time and On Quality” performance through out the supply chain • Provide “how to” information for various Aerospace standards • Note - The e-SCMH is a web based toolbox with FREEaccess to suppliers

4. QMS Requirements Inputs for new revision of 91XX 91xx 9131 Links to 9103 9102 Includes SCMH Guidance material, tools, training Providing guidance material and best practices on how to meet requirements and achieve objectives Focus on “How” through SCMH

5. Supply Chain Management Handbook SCMH Leadership: • IAQG Mentor: Wayne Brown (Boeing) • AAQG (Americas): • Bill Schmiege (Parker Hannifin) • Larry Weng (Boeing) • APAQG (Asia Pacific): • Shuji Komori (FHI) • EAQG (Europe): • Christian Buck (Safran) • Bernard Lauras (Airbus)

6. Supply Chain Management Handbook • SCMH contents have been developed by member companies of the IAQG and the document is structured to cover the entire product life cycle process: • Intended for use by companies at all levels of supply chain • Aligned with Product Life Cycle • Currently 16 sections published • Other sections “in work” or to be developed in the future

7. Supply Chain Management Handbook Content -Based on the Product Life Cycle 1. Sales, Master Scheduling & Sequencing 2. Contract Requirements & Flow Down 3. Design & Development 4. Suppliers sourcing selection & approval • Supplier Selection and Capability Assessment • Special Requirements & Critical Items • Master Scheduling • Requirements & Flow Down Templates • Product Performance Detailed Assessment Checklists • Software Guidance (9115) • Quality Aspects of New Product Development Soon revised revised revised 5. Plant, material, skills, capacity planning & scheduling 6. Order Management and logistic (Internal & external) 7. Manufacturing and Inspection 8. Supplier operational management and product validation • 9103 Material for Key Characteristics • 9102 Material for First Article Inspection • Foreign Object Debris (FOD) • Notification of Change Tool • Supplier Quality Mgt Basics • Lean Assessment Tool • Planning of Product Realization • Order Management and logistic • Subtier Supplier Management Appendices 9. Control of non conformities, corrective and preventive actions 10. Customer Support (Control of service operations) 11. Business Management & Customer Sat. Monitoring • 9100 Rev C Deployment Support • People Capability PCAP 001 • Link to IAGQ Dictionary • Counterfeit Part Prevention • MRO • Root Cause Analysis & Problem Solving • Control of non conformities • Work Transfer • Configuration Mgmt • Risk Management • Preventive Action Available Work In Progress New Priorities 7

8. Recently Published topics (since last IAQG) Foreign Object Debris (FOD) Requirements & Flow-down update to 9100:2009 (Rev C) Control of non conforming product interactive tutorial update to 9100: 2009 (Rev C) Configuration Management (partial) Special Requirements/Critical Items (partial) Supplier selection capabilities assessment (maturity model) updated Supplier Quality Management Basics • Risk Management

9. Topics in final editing/publication Projects in Pre-editing for publication • Special Requirements Critical Items Awareness presentation (2nd part) • Configuration Management Awareness (2nd part) • Product Performance Detailed Assessment Checklists

10. Active Writing Teams Team in development • Master Scheduling, Planning, and Ordering • Securing Team Leader and members Counterfeit/Unapproved Parts SW guidance for 9115 Quality Aspect of New Product Development Preventive Action Subtier Supplier Control

11. Future Topics • Contract Review • Contract Requirement Change Management (including verification of flowdown to subtier) • Contractual flowdown of requirements process (include visibility and application through quality plan) • Update/expand Variation Management material - simplify, add tools/templates. • Supplier approval process (including disapproval) • Assembly Work Instruction • Total Preventive Maintenance (TPM)

12. Released improved SCMH Webpage New SCMH format – rolled out 7/2/2010 Improved accessibility and navigation Searches engine Quick link – drop down menus Alpha listing Use and give us feedback ! “Link to SCMH”

13. Easy access to SCMH http://www.iaqg.sae.org/scmh Free access via the IAQG Website.

14. Easy access to SCMH Accept terms and conditions. Immediate and FREE access

15. SCMH Home Page

16. Example SCMH Material

17. Foreign Object Debris (FOD) • FOD Program Procedure • FOD Training Module • Assessment Tool – three level of robustness • Printable and fillable on-line check sheets and forms

18. Areas of potential Supplier Development if deemed necessary Supplier Selection and Capability Assessment • Assessing Supplier Maturity to 11 Business Processes covering the entire product life cycle process • Five levels of maturity • Undefined and not capable • Defined and applied, but not 100% efficient or not applied everywhere in the company • Defined, applied and effective • Predictable • Optimized • Four domains assessed Process, People & Organization, Tools & Data, Performance Metrics • Results synthesis - show strengths and weaknesses

19. Work Transfer Management • Work Transfer Management procedure • 4 gate review process • Fillable forms for: • Each gate review • Project Proposal • Risk Assessment & Business Case • Product Readiness Review

20. Variation Management of Key Characteristics (9103) • Guidance material aligned to 9103 • Seven Stage process • Training tutorial

21. First Article Inspection (FAI) • Guidance material aligned to 9102 • Includes: • FAI FAQ • FAI checklist • Step by step instruction for filling out 9102 FAI reporting forms • Form 1 - Part Number Accountability • Form 2 - Product Accountability • Form 3 - Characteristic Accountability, Verification and Compatibility Evaluation

22. SCMH Summary • The SCMH is a collection of guidance materials, training packages, and best practices for suppliers. • The objective of the SCMH initiative is to improve the “On Time and On Quality” performance through out the supply chain • Provides “how to” information for various Aerospace Standards requirements. • Guidance, not a requirement or auditable checklist. • Free - may be adopted (and adapted) by any organization to improve quality and delivery performance. • Continues to improve and provide value to the Supply Chain through user feedback http://www.iaqg.sae.org/iaqg http://www.iaqg.sae.org/scmh

23. Questions?