International Aerospace Quality Group (IAQG) IAQG Overview IAQG Supplier Forum Montreal, Canada, October 10th, 2013 Xavier Sahut d’Izarn IAQG President SAFRAN 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 Page 2 IAQG Vision IAQG is recognized and valued as the world’s leading authority for Aviation, Space, and Defense Industry quality Page 3 IAQG Five 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 IAQG Quality Management System certification program is robust, recognized and valued 90% of the supply chain certified to IAQG Quality Management System Standards Page 4 IAQG: A Global Team International Aerospace Quality Group IAQG Council AAQG 68 Major OEMs worldwide (Americas) 21 AAQG members EAQG (Europe) APAQG (Asia & Pacific) 34 EAQG 13 APAQG members members Whose mission is to: Achieve significant performance improvements in Quality, Delivery, and consequently Cost, on all products and services throughout the value stream Page 5 Relationship Growth Strategy • • • • • Civil Authorities - Production Space Defense Maintenance, Repair & Overhaul Trade Associations Improvement Strategy • Requirements • People Capability • Product & Supply Chain Improvement • Performance IAQG Other Party Management Team 3 Axes IAQG Strategic Focus Aligned to Address Challenges Page 6 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) Page 7 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 Page 8 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 Page 9 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 Page 10 IAQG Achievements 90% of the supply chain certified (Cont’d) – Suppliers certification rates: Sector Suppliers 2010 2011 2012 AAQG 71,5 % 70,8 % 68,0 % APAQG 60,6 % 72,6 % 84,2 % EAQG 69,5 % 68,5 % 70,5 % Total IAQG 68,7 % 69,9 % 72,3 % – 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 Page 11 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 Page 12 Thanks for your valuable contribution Page 13 Back-Up Page 14 IAQG Membership Page 15 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 Page 16 IAQG Membership Americas • • • • • • • • • • • • • • • • • • • • • Asia Pacific 21 Members 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 • • • • • • • • • • • • • 13 Members 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 Blue Indicates Voting Member * Indicates Sector Lead Page 17 IAQG Membership Europe • • • • • • • • • • • • • • • • • 34 Members 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 Blue Indicates Voting Member • • • • • • • • • • • • • • • • • 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 Page 18 IAQG Strategy streams Page 19 Improvement Strategy Streams 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 Page 20 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 *: At Sector level only Page 21 Performance Page 22 IAQG Performance Index On Time Delivery (%) Item Escape Rates (ppm) 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 Page 23 SCMH (Supply Chain Management Handbook) Page 24 SCMH SCMH Chapters & Content 1. Sales, Master Scheduling & Sequencing 2. Contract Requirements & Flow Down • Requirements & Flow Down Templates • Contractual Requirements Review & Management Guidance • Master Scheduling 4. Suppliers sourcing selection & approval 3. Design & Development • Special Requirements & Critical Items • Software Guidance (9115) • Quality Aspects of New Product Development Available • Supplier Selection and Capability Assessment • Product Performance Detailed Assessment Checklists Work In Progress Future Page 25 SCMH 5. Plant, material, skills, capacity planning & scheduling • Planning of Product Realization (Plant, material skills and capacity planning) 7. Manufacturing and Inspection • Managing Product and Process Variation (9103) • 9102 Material for First Article Inspection • Foreign Object Debris (FOD) Available 6. Order Management and logistic (Internal & external) • Order Management and logistic 8. Supplier operational management and product validation • Notification of Change Tool • Supplier Quality Mgt Basics • Subtier Supplier Control Management • Advance Product Quality Planning APQP Work In Progress Future Page 26 SCMH 9. Control of non conformities, corrective and preventive actions • Root Cause Analysis & Problem Solving • Control of Non Conformities 10. Customer Support (Control of service operations) Available Work In Progress 11. Business Management & Customer Sat. Monitoring • Work Transfer • Configuration Mgmt • Risk Management • Delivery Metrics Definition • Process Mapping (VSM Based) • Counterfeit & Suspect Unapproved Parts Future Page 27 SCMH Appendices • 9100 Rev C Deployment Support • People Capability PCAP 001 • Link to ICOP Overview • 9100/SSCA/PPDAC Comparison • IAQG dictionary Available Work In Progress Future Page 28 ICOP (Industry Controlled Other Party) Page 29 Industry Control Other Party (ICOP) The ‘traditional’ scheme 3rd party Certification for ISO 9001 2nd party audits Accreditation Bodies Industry The Aerospace ‘ICOP’ scheme Approval and oversight Accreditation Bodies accreditation Certification Bodies certification Suppliers Suppliers Certification Bodies Industry Surveillance based on risk analysis & product audit Auditors Suppliers Other party Certification for 9100/9110/9120 Page 30 Industry Control Other Party (ICOP) IAQG Achievements (Cont’d) ICOP scheme Total Certificated Sites Date Quantity Growth 1-Oct-13 16,668 4.49% 1-Apr-13 15,952 5.39% 1-Oct-12 15,136 1.80% 1-Apr-12 14,873 (.86%) 1-Oct-11 15,002 6.70% 1-Apr-11 14,066 5.50% 1-Oct-10 13,333 6.90% 1-Apr-10 12,472 8.40% • 83.2% of certificates issued are single site certificates • 93.3% of certificates are one or two sites Page 31 IAQG Achievements Page 32 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) Page 33 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… Page 34 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… Page 35