Front of Building A – Taken on May 27, 2007

14th IAQG General Assembly Meeting

Naples - April 11th, 2008

Alenia Composite Quality Management System and Lean Enterprise concept in the Boeing787

production line

Evolution of the Grottaglie Facility - APRIL 2005

Evolution of the Grottaglie Facility - APRIL 2005

Existing Area

Expansion Area

Evolution of the Grottaglie Facility – APRIL 2007

Evolution of the Grottaglie Facility – APRIL 2007

Alenia Composite S.p.A. is a company belonging to the Finmeccanica Group, made up of 97% Alenia Aeronautica and 3% Sviluppo Italia. It was founded in October 2005 following agreements made between Alenia Aeronautica S.p.A. and The Boeing Company for the production of the innovative 787 Dreamliner.

Alenia Composite is a supplier company to Alenia Aeronautica S.p.A. for the production of fuselage sections 44 and 46 of the Boeing 787.

The horizontal stabilizer is produced in the Alenia Aeronautica plant in Foggia.

THE COMPANY

4644

Center FuselageItalyAlenia Composite

Horizontal StabilizerItalyAlenia

Boeing 787 Alenia Work Package

Alenia Composite 787 Production Line is based upon Lean Manufacturing Principles :

Takt Time and line balancing:Optimization of people and part flowPoint of use for parts, raw material and hand toolsFull KittingVisual Control5S (Sort, Simplify, Sweep, Standardize, Self discipline) ApplicationA lean promotion with skilled people with the objective to identify opportunity areas for improvement and perform and follow up lean workshopsA Plant Automation Project to manage and help with I.T. the production engineers and managers to be monitor production, maintenance and transportation in “real time” and adopt timely countermeasures

Alenia Composite and Lean Enterprise Principle

Alenia Lean Approach The nine tactics

altrols

1. Understand how the value flows

2. Balance the line

3. Standardize working methods

4. Use simple visual controls

5. Locate at the “Point of use”

6. Use feeder lines

7. Redesign radically products and processes

8. Transform in a pulse line9. Transform in a moving line

Grottaglie Workshops year 2007

Grottaglie Workshops year 2007

Project Project GoalsGoalsThe huge challenges of Boeing 787 program are technology, automation, and production rate.

SupervisingSupervising System System and and

MovingMoving Line ControllerLine Controller

•• Production line Production line asas a a pulsepulse lineline

NeedsNeeds toto managemanage and and optimizeoptimize production, production, maintenancemaintenance and and AutomatedAutomatedGuidedGuided VehicleVehicle (AGV) (AGV)

transportationtransportationBasing upon the production plan and Cells Status will support the scheduling and monitoring of production, maintenance and Automated Guided Vehicle (AGV) transportation activities.

Why Plant Automation

Plant Automation

Agv ControlAgv Control

Materials and parts visibility boards

Materials and parts visibility boards

Authomated Cell integration

Authomated Cell integration

Production Planning

Production PlanningCapacity

PlanningCapacityPlanning Work OrderWork Order

TrackingTracking

KPIKPIMaintenanceManagementMaintenanceManagement Defectivity

management Defectivity

management

Supervision Interfaces

Supervision Interfaces

Workinstructions

Workinstructions

BarchartBarchart

Work StationWork Station

LaptopLaptop

KioskKiosk locatedlocated on the shop and passive on the shop and passive monitorsmonitors showingshowing informationsinformations, tablet , tablet pcpc willwill bebe usedused forfor ergonomicergonomic mattersmatters

Tablet Tablet PcPc

Acc

esA

cces

Poin

tPo

int

Access Point to the System

AuthorizedAuthorized Web Web

Access Access fromfrom

anyany location in Alenialocation in Alenia

Access Access forfor the operator and the operator and managersmanagers in in GrottaglieGrottaglie PlantPlant

LcdLcd Maxi Maxi MonitorsMonitors

KioskKiosk

Plant Automation Cell ControllerCell controller interface to manage:Production Progress

Data collection from production and qualityDrawings, sketches, documentsClaim Materials and detailsActivate maintenance

Cell controller interface to manage:Production Progress

Data collection from production and qualityDrawings, sketches, documentsClaim Materials and detailsActivate maintenance

Production Work in Progress

ALENIA COMPOSITEQUALITY MANAGEMENT SYSTEM

QUALITY MANAGEMENT SYSTEM

• Alenia Composite Quality Management System has been defined and documented in compliance with the following Standard:

EN 9100: 2003 “Aerospace Series – Quality Management System Requirements”

• Quality Management System Certification has been released on November 23rd, 2006 by UNAVIACert (I.C.O.P Scheme)

Certificate nr 110

UNAVIACert CERTIFICATION

• Tracking and monitoring of TATS materials is performedutilizing dedicated spread sheets containing:

- manufacturing date- expiring date- mechanical life history- traceability data (roll/batch number)

• Radio Frequency Identification (RFId) for Full Tracing Carbonfibertechnology is in course of development to allow automatic andpaperless management of TATS materials

TIME ANDTEMPERATURE SENSITIVE MATERIALS (TATS)

RFID RFID TechnologyTechnology

The RFID is based on the The RFID is based on the ““Sense & RespondSense & Respond”” paradigmparadigmand applies the and applies the InformationTechnologyInformationTechnology to:to:

real time decisionsprevention of anomalous situations and prompt reactioneffective exchange and sharing of data between operators and processesbetter cooperation between suppliers, customers and final usersrise of quality services and standards

System for the automatic management of identification, traceabilityand usability parameters for TATS (Time and Temperature Sensitive) materials

Total management of carbon fibers (rolls) required for the BOEING “B787 DreamLiner” programme and addressed to all the Alenia Aeronautica manufacturing plants involved, by taking into account the specific layout and the existing infrastructures

The system is in line with the BAC5657 and relevant BMS requirement

Full Full TracingTracing CarbonfiberCarbonfiber (FTC)(FTC)

QUALITY IMPROVEMENT PLAN

A Quality Improvement Plan has been established for 2008 to increase the performance of some processes and activities identified by Alenia Composite and Boeing.

The method used to analyze the processes and define the improvement plan is the “cause-effect diagram”

The achievement of the QIP objectives are systematically monitored to assure their successfull accomplishment.

Cause 1

Cause 2

Corrective Action 1

Corrective Action 2Statement of the problem

Corrective Action nCause n

A2-1

A2-2

A2-3

Effect 1

Effect n

Effect 2

Cause effect chart #

… … …

QUALITY IMPROVEMENT PLAN

Status of installed WS: 14 installed; 8 more WS installed beginning of 19-23 Feb. week

NOT PER SCHEDULE - RECOVERY PLAN NOT ACCEPTABLE - MAJOR CONCERN

G PER SCHEDULE - NO CONCERN

Y

R

NOT PER SCHEDULE - RECOVERY PLAN AVAILABLE

CORRECTIVE ACTION OBJECTIVE EVIDENCEECD STATUS

G12/02/0712/02/07

12/02/0712/02/07

12/02/0712/02/07

12/02/0712/02/07

12/02/0712/02/07

09/02/0709/02/07

19/02/0719/02/07

30/01/0730/01/07

30/01/0730/01/07

G

G

G

G

G

G

G

30 ENOVIA licenses are available

Issued procedure QS-F-01 Rev.2 – revised para 5.7

Training session held on Feb. 12 and 13 (18 people trained)

Complete

Complete

Activity performed weekly as per attached document, on going activities

Focals identified by Eng. Resp.( Mr Cerreta) to weekly clean ENOVIA data, on going activities

Purchase order received. Examination complete

Purchase order received. Examination complete

A1-1: HW in the shoopfloor (W/S; LEV) - 1 per cell to be installed

A1-2: Acquire licenses for ENOVIA access

A1-3 Training for ENOVIA access/MBD authority

A1-4 Provide procedure for sketch use and identificationA2-1 Reconfirm the CMP contractual rqmt with subtiersA2-2 Verify subtiers CMP process by audit according to audit plan (issue date 9/2/07)

A2-4 Implement weekly internal ME assessment to confirm released engineering

A2-3 Implement weekly internal eng. Assessment to confirm processes are followed

A3-1 Define contractual relationship between ALA and ALCA3-2 Document contractual relationship between ALA and ALC

30/01/0730/01/07

G

G

PREV status

G

G

G

G

G

G

G

G

Y

Y

FOREIGN OBJECT DEBRIS (F.O.D.)

Everyone in the Alenia CompositeTeam is responsible of FOD prevention

FOREIGN OBJECT DEBRIS (F.O.D.)Alenia Composite FOD programme:

Ensure completion of yearly FOD training

Verify completion of FOD training for new, relocated, or transferred personnel

Assign a FOD prevention focal for each area

Ensure the implementation of and compliance with FOD procedures; establish FOD prevention as a daily management practice

Ensure audits in each T.O.G. using dedicated check lists thatinclude metrics for acceptance/rejection criteria