BEST PRACTICES IN THE AEROSPACE INDUSTRY: AN EXAMPLE TO FOLLOW

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1 Claude GOBENCEAUX

2 BEST PRACTICES IN THE AEROSPACE INDUSTRY: AN EXAMPLE TO FOLLOW MAY 31 st,

3 Introduction Flight Plan Aerospace in México - Industry Highlights - Aero Clusters and the ACQ - The SAFRAN Group Performance of the Quality System: - Global Level - AS Vs. ISO - The Messier Services Americas Case Permanent progress tools - Communication - Company Monitoring - Managers and Technicians Training - Team Management In Summary 3

4 Introduction When you are flying somewhere with an airline the most dangerous part of your journey is the drive to the airport. By far! Chances of being involved in an aircraft accident are about 1 in 11 million. Chances of being killed in an automobile accident are 1 in 5000 (Feb. 2013). The US National Safety Council claims that being a pedestrian, a motorcycle rider, an animal rider, a car driver is more dangerous than traveling by plane. Even a bus ride happens to be more dangerous. Regulation authorities rules and control, safety standard enforcement, aerospace sector global organization, product and process certifications, strict maintenance surveillance, customer controls and professionalism all play an important role for the passenger security. 4

5 Aerospace in México : Industry highlights A new and strategic industry in the country. 270 companies: - 79% Manufacturing, 11% MRO & 10% D&E - Employment: 31,000+ in 18 States. Exportations : Billion USD in Increase of 24% compared to Almost 20% yearly growth rate since Expecting over 15% growth in Aerospace exportation to US ranking : 6 th - Aerospace exportation worldwide ranking : 14 th Public policies directed to incorporate more local supply and to enhance competitiveness of OEMs, Tiers 1 and Tiers 2. 5

6 Aerospace in México : The clusters and the ACQ A.C. Sonora (45) Chihuahua (32) Fuentes: Dirección General de Industrias Pesadas y de Alta Tecnología, (SE) ProMéxico y FEMIA Baja California (59 Companies) Nuevo León(32) Are colored the Mexican states participating to the Aerospace Industry Querétaro (33) 5 Aerospace Clusters The AeroClúster de Querétaro A.C. is one of the more organized and dynamic aerospace cluster in Mexico : Aeronautic industrial parks, Safran, Bombardier, Eurocopter, Various R&D Centers, a dedicated one ( LabTa ), the UNAQ, the CEDIA, a Mexican Space Agency office, 6

7 Aerospace in México : The SAFRAN Group SAFRAN Group, a French company in its origin, of high technology which main business areas are: Aerospace (propelling and equipment) Defense Security With 60,000 employees around the world and more than 15 billion USD in sales, SAFRAN Group is the number one worldwide in: Commercial aircraft engines (SNECMA-CFM) Engines for helicopters (TURBOMECA) Landing and break systems (MESSIER-DOWTY-BUGATTI) Cabling systems (LABINAL) Biometric systems for digital prints (MORPHO Identification) With more than 4,500 employees with 10 companies, the SAFRAN group is the first employer of the Mexican aeronautical industry. It growth has been over 25% in terms of turnover and employees in the last years. 7

8 Performance of the Quality System : Global level The Aviation Authorities (EASA in Europe, FAA in US, DGAC in Mexico, ANAQ in Brazil, ) regulate the sector activities: Products Manufacturing (OEM including the airframers) Maintenance, Repair and Overhaul (MRO) Products The Aviation Authorities grant Type Design (TD) and Type Certificate (TC) to the airframers (Boeing, Airbus, Bombardier, Embraer, ) TD: For the design of new or modified model of aircraft and its equipment TC: For the aircrafts and equipment included after Flight Test. Quality systems The Aviation Authorities certify the OEM (FAR 21, PART 21 ) The Aviation Authorities certify the MRO (FAR 145, PART 145, ). According to these standards the airlines must audit their MRO shops and the MRO shops their suppliers The industry uses AS9100 and actively participate in its evolution with the intent to standardize and streamline the quality system requirements. 8

9 Performance of the Quality System : Global level Before the Aerospace Standards, an Aerospace Quality Management System was subject to different interpretations and requirements. 9

10 Performance of the Quality System : AS Vs. ISO The International Aerospace Standard was published in 1999 in Madrid, Spain It has been approved by the ISO TC20 Working Group # 11 including United States, Europe (England, France and Germany), China, Brazil, Japan and Mexico The standard was published as: AS9100 in the US (by the SAE) EN9100 in Europe JIS 9100 in Japan and China People using AS must be familiar with the elements of ISO The AS family does not include a definition standard; it uses the ISO 9101 one AS9100 includes all ISO 9001 Quality Management System requirements and specifies additional ones to address both civil and military aviation and aerospace needs These additional requirements are shown in bold, italic text. Most are just emphasizing ISO 9001 requirements. The AS family followed the rapid growth of Aerospace industry by developing new complementary and unique certification standards that doesn t exist in the ISO family. 10

11 Performance of the Quality System : AS Vs. ISO NAME AEROSPACE ISO REFERENCE CERTIFICATION GRANTED? STANDARD FOR MANUFACTURING ACTIVITIES AS9100 ISO 9001 YES FIRST ARTICLE INSPECTION REQUIREMENTS AS9102 NO NO KEY CHARACTERISTICS DEFINITION AND CONTROL AS9103 ISO 9101 NO STANDARD FOR MAINTAIN, REPAIR AND OVERHAUL ACTIVITIES AS9110 NO YES STANDARD REQUIREMENTS FOR AEROSPACE SUPPLIERS / BROKERS AS9120 NO * YES STANDARD FOR TESTING AND CALIBRATION LABORATORIES ISO ACCEPTED ISO YES * ISO 9120 (Petroleum and related products ) is not related with AS 9120 The AS9102 (FAI) is not a mandatory standard. Its application is highly recommended as it covers all AS9100 requirements AS9100 provides guidance for managing variation that could impact Fit, Form, Function, Service Life or Manufacturability. Those variations called "key characteristics are defined in the AS9103. ISO identified only general Special Process requirements. 11

12 Performance of the Quality System : AS Vs. ISO In AS9100, there are some MAJOR ADDITIONS to ISO 9001:2008 that where never included in any of the ISO versions : Project Management Risk Management Configuration Management Work Transfers Design & Development planning / Key Characteristics definition Production Process Verification / First Article Inspection (FAI). 12

13 Performance of the Quality System : AS Vs. ISO The Industry decided to deployed these standards and created the necessary structures as the IAQG (International Aerospace Quality Group) Progressively, the OEM decided to request the AS9100 certification to all the product supply chain companies The main Airframers also requested the NADCAP / NUCAP process certificate to the companies using special processes. 13

14 Performance of the Quality System : AS Vs. ISO IAQG IAQG (International Aerospace Quality Group): Aviation, Space and Defence OEMs agree aviation requirements & guidelines in common AAQG: sector of the IAQG for the Americas ANAB (Aerospace National Accreditation Board is an A.B. (Accreditation Board): Approves the Certification Bodies to issue certifications IAW the Aerospace Standards (i.e. AS9100). The ANAB is a multi country A.B. RAB (Registration Accreditation Board): Approves the auditors (Certification Body auditors & independent auditors) The RAB offices are located in the USA, EU, Asia, etc. RAB AUDITOR: Is a Certification Body or Independent auditor that meets the approval requirements. C.B. (Certification Body): Need to be accredited for ISO 9001 before AS9XXX Audit & certify organizations against a standard. Some CB are present in Mexico (LRQA, BSI, BVI, ). 14

15 The Performance of the Quality System: The MSA example MSA is specialized in Landing Gears Maintenance, Repair and Overhaul and that has also some manufacturing activities involving special processes Messier Services Americas (SAFRAN Group) has 210 headcounts MSA has the following certificates: Mexican DGAC American FAA (2 inspections per year) European EASA (2 inspections per year) Brazilian ANAQ AS9100 NADCAP Is periodically audited by its customers (airlines mainly, CASE certification) That represents 1 external audit every 18 days during the past 6 years These audits / inspections are necessary to continue working in this sector Some special recognitions has been got as the FAA Wings of Honor. 15

16 Permanent Progress Tools : A View According to our hands on experience in the Automotive and Aeronautic industries, the next slides present our view of which are the main management and permanent progress tools to reach the results in terms of : Quality Cost Lead time And Smile The next slides are more about behaviors than about tools I will not directly speak about the PDCA Deming wheel! 16

17 Permanent Progress Tools : Communication Communication is key Communication is key Communication is key 17

18 Permanent Progress Tools : Communication Communication is key Communication is key Communication is key For that define your rules! Group / facility core values Meeting : attendance, on spot minutes, preparation, punctuality, be part of the solution and lead by example! (Respect the values and rules, Be direct, Congratulate) Top down communication : Monthly All staff meeting Weekly Direction Committee Weekly Direction Meeting Weekly Operation Area meeting (with the voice of internal and external customers) Quality Operation meetings Operation daily quick planning meetings Bottom up communication : Transparency and office open door politics Gemba walks QRQC : On spot Quick Response Quick Control quality concern treatment 18

19 Permanent Progress Tools : Company Monitoring Main needs are obviously to have a Mission, a Vision, a Strategy, an MTP, main annual key objectives, a budget To be co-owned with the management team Monthly BSC results with KPI and associated SMART Objectives : Specific Measurable Applicable Relevant Time Scheduled have to be shared with the right teams Area or on spot indicators To be KISS Keep It Simple And Simple 19

20 Permanent Progress Tools : Company Monitoring Key indicators are not only ISO or AS requirements : They are part of a Company Strategy and management style They must be : Part of your tactics (open a white page or set a new indicator if you want a progress) Useful and controlled Self explanatory Orientated towards action and progress. 20

21 Permanent Progress Tools : Managers and Technicians Training In Aeronautics : Training is part of the integration process Total traceability is a must and must be fully understood Every one receive an Human Factor training OJT (On job Training) for technicians Every one sign his job (color stamp with employee reference) Do not doubt in training and retraining A manager must be a teacher and a coach Importance of face to face meetings : they are on spot training Our role is to recognize : Technicians Specialists Experts (or potential ones) Managers (or potential ones) Many groups in the aeronautics are developing their own internal University. 21

22 Permanent Progress Tools : Managers and Technicians Training Repeat Repeat Repeat 22

23 Permanent Progress Tools : Team Management Performance of Teams HOW MEANS Empowering all the employees Boosting the daily progress Focusing on problem resolution Making effective the decisions Getting the employees participation by all means 5S Lean Sigma projects QRQC Mejóralo * Innovation contest* Up to Supplemented Company share purchasing * Dare to Innovate Internal programs 23

24 In Summary Quality System and Focus Communication Company Monitoring Team Management PERFORMANCE Communication Managers and Technicians Training, coaching and support We Shared a Model, Built your Own! 24

25 In Summary HAVE A GOOD FLIGHT! 25

26 GRACIAS POR SU ATENCIÓN Claude Gobenceaux Presidente del Aero Clúster de Querétaro A.C. Managing Director Messier Services Americas Messier Bugatti Dowty - MRO Division Grupo SAFRAN 26

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