Performance stream status EAQG performance benchmark York General Assembly

Alain Bonnard Christian Buck October 22 nd 2010 4/30/2020 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 Quality Management System Standards to IAQG

Aerospace and Defense Performance Index

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A process consolidating, reporting and publishing the measurement of the whole aerospace and defense supply chain progresses toward the 20% improvement goal

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Based on observed and sampled On Time Deliveries – On Quality Deliveries

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Measurements based on standard “metrics definitions”

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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 Suppliers & customers set improvement goals Each supplier is able to find its position in the index IAQG Council review to 20% improvement goal IAQG members provide data to Performance Agency (suppliers anonymous) Performance Agency consolidates data (members anonymous) IAQG publishes data (e.g. next slide) 4

Performance Index Possible Publication

Item Escape Rates Distribution Sample of 138 suppliers

2007: 4000 ppm 2008: 3500 ppm 2007: 443 ppm 2008: 392 ppm 2007: 10 ppm 2008: 5 ppm On Quality Performances 2007/2008 Evolution

Deterioration

2008 2007

Improvement

2007 2008

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EAQG Supply Chain Benchmarking

IAQG General Assembly York, UK, October 22 nd , 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

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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 %

(Definition in

§

8.1 OTD)

Double click to open the document

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

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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)

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Industry Segments

3. Technological Segments Definition

EAQG segment id. TS1 TS2 TS3 EAQG segments keywords

Details parts or machined parts or metal machining or manufactured parts or finished parts Systems or equipments or avionics or others sub systems suppliers 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

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

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Participating EAQG Members

5. Participating EAQG Company members

EAQG Bench marking 2010 Number of EAQG Members participating Number of EAQG Members NOT participating Total EAQG Company Members Partici pation 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 55184 Automotive 393

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Benchmarking Results

Benchmarking

Comparison with Automotive industries

All Aerospace & Defence 69 % Automotive 95 %

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Benchmarking Results

6. Benchmarking Results

Benchmarking Data Type Conformity

(ppm)

Punctuality

(%)

Ave-rage

55.184

69

TS1

77

TS2

68

TS3

15.979

130.638 55.081 46.663

80

TS4

79

TS5

5.209

67

Comparison Conformity (ppm) Aerospace & Defence

55.184

Automotive

393

Punctuality (%)

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

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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?

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