Company Confidential

04/21/23

Performance stream statusEAQG performance benchmark

York General Assembly

Alain Bonnard Christian BuckOctober 22nd 2010

• 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

Performance stream supports IAQG 5 years vision development

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 & customers set improvement

goals

Each supplier is able to find its position in

the index

Suppliers OTD OQD

IAQG members select a

representative sample of

suppliers data

IAQG members provide data to

Performance Agency

(suppliers anonymous)

IAQG members observe their

suppliers performances

IAQG publishes data (e.g. next

slide)

IAQG Council review to 20% improvement

goal

Performance Agency

consolidates data (members

anonymous)

4

5

Average

Excellent

Weak

1

10

100

1000

10000

100000

ppm

http://w w w .icare-gie.com

On Quality Performances2007/2008 Evolution

2007

2007

2008

2008

Improvement

Deterioration

2007: 443 ppm 2008: 392 ppm

Item Escape Rates Distribution Sample of 138 suppliers

2007: 4000 ppm 2008: 3500 ppm

2007: 10 ppm 2008: 5 ppm

Performance Index Possible Publication

EAQGSupply Chain

Benchmarking

Benchmarking

Alain BONNARDEAQG Operations Manager

IAQG General AssemblyYork, UK, October 22nd, 2010

Benchmarking ProjectBenchmarking 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

EAQG Benchmarking Project

7

Goal:Get EAQG Supply Chain 2010 Performance level

Benchmarking PrinciplesBenchmarking 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)

1. Benchmarking Principles

(Optional*) : To be decided by EAQG participating Companies

8

Benchmarking PrinciplesBenchmarking Principles

• General results

(All Technological Segments together = Average ofSuppliers 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)

1. Benchmarking Principles (Cont’d)

Each EAQG Member is receiving the same General results

9

Benchmarking PrinciplesBenchmarking Principles

• 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

1. Benchmarking Principles (Cont’d)

Each EAQG Member is receiving the Graphs with its Business Units Company positions on the graph

10

Metrics DefinitionMetrics 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)

According to Metrics definitionmade by EAQG Working Group

Period of Measurement: 6 months rolling average or in exceptional case 12 months based on volume of parts

Double click to open the document

2. Metrics Definition

11

Industry SegmentsIndustry Segments

• 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)

Benchmarking per Technological Segment

3. Technological Segments

12

Industry SegmentsIndustry 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 MembersEAQG Members4. EAQG Company members

Advanced Electronics Company

AgustaWestland

Airbus

Airbus Military

Alenia

AVIO

BAE Systems

CassidianDassault 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

SAABSAFRAN

SAGEM

SNECMA

SONACA

SUKHOI

THALES

Turbomeca

Volvo Aero.ZODIAC Aerospace

14

5. Participating EAQG Company members

EAQGBench-

marking2010

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 %

Participating EAQG MembersParticipating EAQG Members

15

Benchmarking ResultsBenchmarking Results

Benchmarking

55184

All

16

Benchmarking ResultsBenchmarking Results

All

69 %

Benchmarking

22

Benchmarking ResultsBenchmarking Results

Benchmarking

Comparison with Automotive industries

All

39355184

AutomotiveAerospace & Defence

28

Benchmarking ResultsBenchmarking Results

Benchmarking

Comparison with Automotive industries

All

95 %69 %

AutomotiveAerospace & Defence

29

Benchmarking ResultsBenchmarking Results

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

ComparisonAerospace & Defence Automotive

Conformity (ppm)55.184 393

Punctuality (%)69 95

6. Benchmarking Results Benchmarking

30

Next StepsNext 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

32

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

33

Questions?