Performance stream status
EAQG performance benchmark
York General Assembly
Alain Bonnard Christian Buck
October 22nd 2010
4/13/2015
Company Confidential
Performance stream supports
IAQG 5 years vision development
• Product and Services Quality and Delivery will
have improved 20% per year throughout the
product lifecycle
• Robust processes achieved throughout the Supply
Chain (SCMH supplier maturity assesment level 3
or better)
• IAQG Quality management system certification
program robust, recognised and valued
• 90% of the industry supply chain certified to IAQG
Quality Management System Standards
Aerospace and Defense
Performance Index
• A process consolidating, reporting and
publishing the measurement of the whole
aerospace and defense supply chain progresses
toward the 20% improvement goal
• Based on observed and sampled On Time
Deliveries – On Quality Deliveries
• Measurements based on standard “metrics
definitions”
• A process allowing each supplier to find its
position within the index and to set
improvement objectives by itself or in the
frame of a customer-supplier relationship
Performance Index
Process Loop
Suppliers OTD
OQD
IAQG members
observe their
suppliers
performances
IAQG members
select a
representative
sample of
suppliers data
Performance
Agency
consolidates data
(members
anonymous)
Suppliers &
customers set
improvement goals
Each supplier is
able to find its
position in the
index
IAQG members
provide data to
Performance
Agency (suppliers
anonymous)
IAQG Council
review to 20%
improvement
goal
IAQG publishes
data (e.g. next
slide)
4
Performance Index
Possible Publication
Item Escape Rates Distribution
Sample of 138 suppliers
Deterioration
2008
2007: 4000 ppm
2008: 3500 ppm
2007
Improvement
2007
2007: 443 ppm
2008: 392 ppm
2008
2007: 10 ppm
2008: 5 ppm
On Quality Performances
2007/2008 Evolution
5
EAQG
Supply Chain
Benchmarking
IAQG General Assembly
York, UK, October 22nd, 2010
Alain BONNARD
EAQG Operations Manager
Benchmarking
Benchmarking Project
EAQG Benchmarking Project
EAQG Initiative launched within the IAQG
European Sector
• Project concept defined in 2009
• Decision to proceed taken in September 2009
• Considered as a Pilot Case
• Participation from EAQG Company Members
based on a voluntary basis
• Data collection started in January 2010
Goal:
Get EAQG Supply Chain 2010 Performance level
7
Benchmarking Principles
1. Benchmarking Principles
• 2 Performance Metrics
» Conformity (Item Escape rate in PPM)
» Punctuality (On time Delivery in %)
• Suppliers Performance only
» Average of EAQG Suppliers Performance for each Business
Unit (if any, optional*) identified by EAQG participating
companies (2 data / Per Business Unit)
» Average of EAQG Suppliers Performance for each
Technological Segment (Optional*) of each Business Unit
(2 data / Per Business Unit / Per Technological Segments)
(Optional*) : To be decided by EAQG participating Companies
8
Benchmarking Principles
1. Benchmarking Principles (Cont’d)
• General results
(All Technological Segments together = Average of
Suppliers Performance for each Business Unit
identified by EAQG Companies)
– Graph / metric
» Conformity (Item Escape rate in PPM)
» Punctuality (On time Delivery in %)
– Graph / metric per Technological Segment
(for EAQG participating companies willing to have
Technological segments)
Each EAQG Member is receiving the
same General results
9
Benchmarking Principles
1. Benchmarking Principles (Cont’d)
• Customized results
(per company)
– Graphs / Metric (Conformity & Punctuality) with
identification of your company Business Units (Optional*)
– Graphs / Metric per Technological Segment (Optional*)
with identification of your company Business Unit
(Optional*) : To be decided by EAQG participating Companies
Each EAQG Member is receiving the Graphs with its
Business Units Company positions on the graph
10
Metrics Definition
2. Metrics Definition
» Conformity:
• Escape – Non Conformity level after delivery to the customer
 Item Escape Rate expressed in PPM
(Definition in § 7.1.1 IER)
» Punctuality:
• On Time Delivery of items to the customer
 Delivered items expressed in %
Double click to open
the document
(Definition in § 8.1 OTD)
Period of Measurement: 6 months rolling average or in
exceptional case 12 months based on volume of parts
According to Metrics definition
made by EAQG Working Group
11
Industry Segments
3. Technological Segments
Benchmarking per Technological Segment
• Option to have the benchmarking results per Technological
Segment
• 5 defined Technological Segments made by the dedicated
Working Group
after collection of identified segments made by each EAQG
participating Member
(See 5 Segments next slide)
12
Industry Segments
3. Technological Segments Definition
EAQG segment
id.
EAQG segments keywords
TS1
Details parts or machined parts or metal machining or
manufactured parts or finished parts
TS2
Systems or equipments or avionics or others sub
systems suppliers
TS3
Raw material or forging or casting or non metallic
material or plastics parts suppliers
TS4
Hardware or technical products or fasteners or wiring
TS5
Barrels, aerostructures, structures suppliers
13
EAQG Members
4. EAQG Company members
Advanced Electronics
Company
AgustaWestland
Airbus
Airbus Military
Alenia
AVIO
BAE Systems
Cassidian
Dassault Aviation
EADS ASTRIUM
Elbit Systems
Eurocopter
Fokker Aerospace
GE Aviation Systems
HEGAN (ITP)
Hispano Suiza
IAI
Liebherr
MBDA
Meggitt
Messier-Dowty
MTU
PFW
RAFAEL
Rolls-Royce
SAAB
SAFRAN
SAGEM
SNECMA
SONACA
SUKHOI
THALES
Turbomeca
Volvo Aero.
ZODIAC Aerospace
14
Participating EAQG Members
5. Participating EAQG Company members
EAQG
Benchmarking
2010
Number of
EAQG Members
participating
Number of
EAQG Members
NOT
participating
Total EAQG
Company
Members
Participation
Rate
22
13
35
63 %
Percentage of participation:
• / of Total EAQG Companies: 63 %
15
Benchmarking Results
Benchmarking
All
55184
16
Benchmarking Results
Benchmarking
All
69 %
22
Benchmarking Results
Benchmarking
Comparison with Automotive industries
All
Aerospace & Defence
Automotive
55184
393
28
Benchmarking Results
Benchmarking
Comparison with Automotive industries
All
Aerospace & Defence
Automotive
69 %
95 %
29
Benchmarking Results
6. Benchmarking Results
Benchmarking
Data Type
Ave-rage
TS1
TS2
TS3
TS4
TS5
Conformity
(ppm)
55.184
15.979
130.638
55.081
46.663
5.209
Punctuality
(%)
69
77
68
80
79
67
Comparison
Conformity (ppm)
Punctuality (%)
Aerospace & Defence
Automotive
55.184
393
69
95
30
Next Steps
7. Next Steps

Extend Performance Metrics initiative at
IAQG level (IAQG Strategy Improvement
stream – Performance)
To be implemented early 2011 at
International level
31
Performance Index
Development
• Whole Aerospace and Defense Supply Chain is estimated to :
– 14000 sites certified to 9100, 9110 or 9100 sites
– 8000 sites planning certified (rough order of
magnitude)
– Several thousands of other suppliers
• A representative sample of this supply chain is around 500
suppliers,
• Global development plan leads to first index publication in
spring next year
• Any suppliers willing to join are welcome
32
Questions?
33