Boeing - New Supply Chain Entrant

New Supply Chain Entrant Phase One

Objectives of Supplier Relations 100 years of aerospace excellence with suppliers Supplier Relations Key to: Agility Integrity Competitiveness Meeting customers needs is Boeing’s #1 focus when selecting suppliers.

Boeing’s Supplier Expectations •Suppliers direct benefit to customers •Commitment to performance excellence, in terms of cost, quality and delivery •Financially healthy and focused on improving affordability and efficiency through Lean operations •Share businesses strategies = cohesive benefits •Professional and respectful, perform ethical business practices

What Boeing Buys Aerospace Support Avionics and avionics components Common aerospace commodities Electrical, hydraulic and mechanical systems Interiors Major structures Non-production goods and services Propulsion systems Purchased outside production Technology

Commodities

Procurement Practices Supplier must supply: The Right Materials In the Right Quantity Good Quality At the Right time At the Right Price From the Right Sources In conformance with all applicable

Capacity After an agreement with Boeing has been established and the supplier knows what the expected requirements are, the supplier should have a contingency plan for production failures or quality issues.

This plan may include identifying alternate production sites that can be used should a manufacturing plant or factory be rendered unusable by physical damage or another type of emergency.

Special Processes for Aerospace: NADCAP – National Aerospace and Defense Contractors Accreditation Program. The program ensures a sector-wide approach to the assessment of conformity of special processes.

Requires specialized audits against specific NADCAP requirements for individual processes -- not the company’s quality system.

Solely administered by PRI (Performance Review Institute) Accredits processes such as : Coatings, finishes, & treatments Non destructive testing Welding - Heat Treatments Non-conventional machining methods

Boeing Quality Management System Aerospace Quality Management System (AQMS) – Suppliers are encouraged to obtain (AQMS) certification/registration from an accredited industry controlled other party (ICOP) to show compliance to these requirements. ● Boeing recognizes the AS9100C Certification for Appendix A suppliers - This certification needs an associated CB assessment report/package, which contains evidence that service processes were assessed. ● AS9110C - This section represents the aviation quality management system standard for contracted suppliers that provide aviation maintenance services. ● AS9120 - Represents the aviation, space and defense organizations quality management system standard for contracted distributors carrying out the purchase, storage, splitting or sale of products without affecting the original manufacturer’s product characteristics or conformity.

Federal Aviation Administration, Regulatory Requirements: Standard Airworthiness Categories:

Special Airworthiness Categories:

Normal

Primary

Utility

Restricted

Acrobatic

Multiple

Commuter

Limited

Transport

Light-Sport

Manned free balloons

Experimental

Industry Certifications/Qualifications SupplierGATEWAY- This database allows authorized Boeing personnel to search for suppliers whose qualifications match potential bid opportunities. ○ Complete the online SupplierGATEWAY® profile with details of your company and what it has to offer.

● U.S. Government's System for Award Management (S.A.M.) ○ Allows small, disadvantaged, woman-owned, and veteran-owned businesses to do business with the federal government or its prime contractors

Phase Two...What’s next?

Focus will be on the support systems for either new entrants or continued development of small and medium sized businesses.

Federal Aviation Administration Industry OEMs Government Agencies Quasi-Government organizations Industry Groups Academia