IAQG General Assembly

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IAQG General Assembly
Montréal Marriott Château Champlain HotelFriday
October 7th, 2005
IAQG Strategy Initiatives
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IAQG Strategy Initiatives

• The new initiative launched several months ago
• The New IAQG Strategy

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IAQG Strategy Initiatives. Table of contents

• IAQG Strategy Foundations
• Definitions
• Global Challenge
• IAQG Strategic Goal
• Proposed Update to Streams
• Process Model
• Strategy Focus Streams Leaders
• Strategy Stream Requirements
• People Capability
• Supply Chain Process Capability
• Product Realisation Process
• Relationship Growth Strategy

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IAQG Strategy Foundations

• The IAQG is the aerospace industrys voice for
  quality
• its improvement and the resultant bias for
  action
• Our customers, business environment and
  regulatory requirements drive our strategic goals
• to improve safety and quality
• whilst reducing costs
• The IAQG has successfully developed standards and
  best practices
• for use in our internal organizations and
  through our supply chains that,
• when effectively deployed,
• will improve safety and
• and reduce costs

Extract of IAQG Charter 1.2 PURPOSE /
OBJECTIVES Implement initiatives that make
significant improvements in quality and
reductions in cost throughout the value stream by
establishing and maintaining dynamic
co-operation, based on trust, between
international aerospace companies. The focus
is to continuously improve the processes used by
the supply chain to deliver consistently high
quality products, thereby reducing non - value
added activities and costs.
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IAQG Strategy Foundations - Definitions

• Supply Chain Processes
• That collection of industrial processes which
  lead to the arrival of
• the right parts
• and the right data
• In the right place
• At the right time
• To the right quality standard,
• through the entire value stream
• Deliver consistently high quality products
• Assuring Customer Satisfaction through On-Time,
  On-Quality Delivery of products and services,
  through the lifecycle
• On-Time, On-Quality Delivery (OTOQD)
• Delivering exactly what the customer ordered,
  exactly when we agreed to deliver it,
• with no wasted costs

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IAQG Strategy Foundations - Global Challenge

• Aviation, Space and Defence industry is Global
• within and between all layers
• Quality and Safety imperatives are heavily
  regulated and
• depend upon every level in the Global Supply
  Chain
• IAQG members are committed to continuously
  improve levels of stability and control of the
  entire Global Supply Chain

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IAQG Strategic Goal Step change in process
capability and maturity
Lifecycle On-Time, On-Quality Delivery (OTOQD)
Continual Improvements through People, Processes
and Tools
On Cost
On Time
On Quality

• Product Delivery
• Spares Services
• Delivery
• Parts and Data at
• all levels in the
• chain
• Reduced inventory

• Continuous Safety
• Improvement
• Maturity, Reliability
• Cost of Ownership
• Freedom from
• Design
• Manufacturing
• defects
• Reduced Waste

• On-Time, On-Quality Delivery
• generates continual reduction

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IAQG Strategy 3 Axis
Improvement Strategy
Relationship Growth Strategy

• Requirements
• People Capability
• Supply Chain Process Capability
• Production Realisation Process

• Civil Authorities
• Space
• Defense
• Suppliers
• Engineering, Sourcing

IAQG Operating Management System

• Member Collaboration
• Top Leader Involvement
• IAQG Operational Efficiency

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IAQG Strategy Process ModelInputs Constraints
Outputs Resources (ICOR)
CONSTRAINTS
Regulatory QMS
Requirements
Product Realization Processl
OUTPUTS
INPUTS
On-Time On-Quality Delivery
Customer Business Requirements
Global Supply Chain Process
Business Unit Individual metrics
Supply Chain Process Capability
People Capability
People
Human Factors
Relationship Growth Civil Authorities Space
Defense Suppliers
Operating System Policy Procedures
Communications
RESOURCES
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Strategy Focus Streams Leaders
SWG Mentor AAQG EAQG APAQG
IAQG Leadership Team IAQG Leadership Team Bill Black Colin Clarke Guy Dion Kinsuke Hara
Operating management System Operating management System John Addey Ed Bayne John Addey Kazuki Kanai
Improvement Strategy Improvement Strategy
Requirements Requirements Guy Dion Peter Kern Guy Dion Sung Ju Lee
Product Realisation Process Product Realisation Process Tes Aklilu Joe Sikora John Calder Kouichi Watanabe
People Capability People Capability Georg Schrader Larry Kibble Colin Cramp J-M Bardot Miro Miletic Yutaka Tojo
Supply Chain Process Capability Supply Chain Process Capability Sandy Postel Barb O'Dell Cherif Khelil Kinsuke Hara
Relationship Growth Strategy Relationship Growth Strategy
Authorities Authorities Gary Baker Ed Bayne Andy Brindisi Georg Schrader Hiroyuki Jikei
Space sector Space sector Gary Baker JJ DeGiovanni Andrea Reilly Roberto Ciaschi Kinsuke Hara
Defense Defense Gary Baker Pres Thompson Primus Ridgeway Hans Ziemer Hiroyuki Jikei
Suppliers Suppliers Not Launched Not Launched Not Launched Not Launched
Accreditation Bodies Accreditation Bodies Not Launched Not Launched Not Launched Not Launched
University, Engineering, Sourcing University, Engineering, Sourcing Not Launched Not Launched Not Launched Not Launched
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Strategy Stream Requirements
Establish, Develop, and Maintain Industry Quality
Requirements to improve product and process
integrity

• Maintain Focus on Quality Management System (QMS)
  Standards
• Stay abreast with emerging requirements e.g. CSR,
  Hazmat etc
• Sustain and Improve Certification Scheme
  Requirements
• Support QMS Revision year 2008
• Work with Relationship Growth Teams
• Civil Authorities requirements harmonization
• Space requirements integrated into QMS
• Defense requirements harmonization
• Including Industry Controlled Other Party Scheme
  activities

CSR Corporate Social Responsibility Hazmat
Hazardous Materials eg ROHS (Restriction Of
Hazardous Substances) WEEE (Waste Electrical and
Electronic Equipment)
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Strategy Stream Requirements

Actions
Future State
Current State

• QMS 9100 series
• consistent with the ISO 9001 new issue
• worldwide implemented by the industry
• International unique Certification Scheme
• audit process
• scoring
• Standards worldwide recognized by the stakeholders

• Dedicated Working Groups
• Relationship with TC 176
• Data mining of current 9100 standard, 9101 and
  others
• Web survey
• Benchmarking with other industries
• Metrics
• Scoring deployment (OASIS)
• Certification deployment
• Relationship with civil authorities, defense
  space
• Monitor emergent new requirements

A suite of existing IAQG QMS standards, based on
ISO 9001 Various take up of standards Many other
Requirements - Authorities - Associations -
Customers Different Areas - Civil - Space -
Defense
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Strategy Stream People Capability
Develop the competency of, and support for, those
engaged in supply chain processes, in all
functions, to deliver continual improvements in
OTOQD

• Develop common dictionary of Aviation Space
  Defence terms meaning for IAQG related
  documents
• Develop common framework for Competency
  Management Process
• Develop Core set of IAQG agreed competencies
  levels linked to job needs
• determine whether licensing / qualification
  has added value
• Establish approach network of training/
  coaching providers worldwide and
• implement quick start mechanism eg
• Boot camp for new / problem suppliers
• Merit scheme for proactive / top class suppliers

Now Includes Human Factors
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Strategy Stream People Capability
Actions
Current State
Future State

• Assumption that good Processes alone lead to good
  Products.
• Mechanical technocratic approach to Processes
• Lack of/ Diversity of Competency Mgt Process
• More outsourced Processes in foreign countries
  (Problems of language and meaning)
• More temporary workers in workforce
• People can twist or ignore the process

• Common meaning of terms (Dictionary)
• Common Competences Management Process
• Raised awareness of People
• Their position/ role within operational
  Processes the impact of Human Factors on their
  own performance
• Establish an industry standard approach to boost
  people capability in supply chain management at
  all levels

• Mature Products delivered by reliable Processes
• Highly Skilled workforce at all levels in the
  supply chain
• Robustness of Processes with regards to changes

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Strategy Stream Supply Chain Process Capability
Deployment of Global Supply Chain Process
standards and guidelines to ensure continually
improving OTOQD

• Create a Supply Chain Management Standard /
  Guide, an overarching document to define industry
  standard supply chain management processes eg
• Contract Requirements flow down
• New Product Introduction
• Product / Supplier Couple Qualification
• Change Control Engr / Source / Process
• Sub-tier Supplier surveillance control,
  including Special Processes
• Supplier Development
• etc
• A checklist to be developed to assess supplier
  process strength

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Strategy Stream Supply Chain Process Capability
Deployment of Global Supply Chain Process
standards and guidelines to ensure continually
improving OTOQD

• Develop maturity model for Supply Chain Processes
  (CMMi for example)
• Establish links with Supply Chain Council to
  access other industry experience and best
  practices and
• ensure guideline incorporates best practices
  from other industry sectors

CMMi Capability Maturity Model Integrated
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Strategy Stream Product Realisation Process
Establish and implement proactive product
realisation processes to ensure immediate
sustainable OTOQD internally and externally

• Define an industry standard pre-production
  approval process to effectively control
  part/source introduction change
• Improve manufacturing process capability levels
  through the supply chain
• eg- more effective deployment of key
  characteristics standard (9103), - process
  certification
• Develop training material to assist in effective
  deployment of key characteristics standard (9103)
• Develop industry standard process and toolkit for
  root cause analysis and action planning

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Relationship Growth Strategy
Working together to develop a single voice on
quality related issues

• Civil Airworthiness Relationship
• Enhance safety and quality by working together
  with the international airworthiness authorities
  and industry leaders to establish a system where
  aircraft product and parts
• Can be manufactured and maintained almost
  anywhere
• Move quickly and seamlessly to the end item user
• Are supported by electronic documentation
• There is no more than one AA action for each
  industry activity
• International Space Forum
• A global forum for space quality issues standards
  Share experience and views on space quality
  issues
• Discuss initiatives and build consensus for a
  common space position
• Propose space specific initiatives
• Global acceptance of standard approach for a
  single QM standard and certification
• Defense Relationship
• Coordination with NATO on AQAPs (Allied Quality
  Assurance Publications)
• Involvement of national defense organizations in
  sector activity
• Recognition of IAQG standards as suitable for
  procurement

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2010
2006
2008
2007
2009
Expand to Airlines MROs

• QMS MAINT
• DATA MINING/LESSONS
• LEARNED
• WEB SURVEY
• DEPLOYMENT METRICS
• BENCHMARKING
• ICOP

QMS Re-issue

• IMPROVED
• DEPLOYMENT
• PROCESS

REQUIREMENTS
AUTHORITIES ALIGNMENT

• PROCESS CERTIFICATION

• PRE PRODUCTION APPROVAL PROCESS
• 9103 IMPROVED DEPLOYMENT

PRODUCT REALIZATION PROCES
Establish curriculum network of training and
coaching providers worldwide
Develop Issue Sub-tier Control handbook
DEVELOP SUPPLY CHAIN PROCESS ARCHITECTURE
COLLECT OTHER INDUSTRY BEST PRACTICES
Develop university links
Develop Competency Management Process
Develop Dictionary
SUPPLY CHAIN MANAGEMENT CAPABILITY
PEOPLE CAPABILITY