AIR & Industry Federal Aviation Transformation · PBO Early Collaboration Safety Continuum informs Policy Part 21 Rulemaking Develop and implement System Health Metrics ICA, No-PNL,

Presented to:

By:

Date:

Federal Aviation Administration AIR & Industry

Transformation

Partnership as a Key to

Success

AIA/GAMA

Dorenda Baker, Director

Aircraft Certification Service (AIR)

October 5, 2016

2 Federal Aviation Administration

External Factors Challenging the Aviation System

Globalization

of aviation

▪ Industry is made up of an international

web of networks and complex business

arrangements that are challenging our

traditional regulatory model

Need for international

collaboration

Description Implications

Industry

growth

▪ Industry expands and contracts much

faster than the FAA in its current

structure can manage Stress on traditional AIR

structure and processes

creating a need for agility

Heightened

expectations

▪ The public, industry and government

entities continue to increase their

expectations of us to do things faster

and without error

Pressure on AIR to become

efficient and agile

Velocity of

change

▪ Technological advances and business

model changes are precipitating higher

rates of change and increasing the need

for organizational agility and

adaptability as our environment

changes

Complexity and volume of

standards needs


Congressional Input

FAA Modernization and Reform Act 2012

• Section 312: Aircraft Certification Process Review and Reform

2013

• House Aviation Subcommittee hearing on

• Review of FAA’s Certification Process: Ensuring an Efficient and

Effective, and Safe Process

2015

• House Aviation Subcommittee hearing on status of

• Reforming Aircraft Certification

• Senate Subcommittee hearing on

• Certification and U.S. Aviation Manufacturing Competitiveness

4

AIR Transformation

Refresh certification

strategy

Change management Help organization embrace holistic transformation by creating clear

communication channels with our people

Industry commitments Embrace systems safety with a compliance culture, engage FAA early

on innovation, and work with FAA on performance management

Improve organization

and invest in our people

Invest in management

systems to improve

performance ▪ Ensure appropriate

support of standards

activities

▪ Minimize unnecessary

involvement in critical

path

▪ Implement risk-based

systems oversight

▪ Adapt organization to

execute on certification

strategy

▪ Invest in people and build

skills to empower the

workforce of the future

▪ Measure performance with

goals and targets

▪ Improve governance and

operating norms

▪ Invest in new tools and

infrastructure

AIR’s Transformation Improves Efficiency and Effectiveness

…will be

achieved

through

the FAA

Strategic

Initiatives

…driven by

the AIR:2018

key focus

areas

…and

supported by

key

foundational

elements

AIR’s

vision…


Future FAA Focus

Outcome:

Overall fleet

safety and

compliant

products

that meet

safety

outcomes

Compliance

Standards

Systems

Oversight Systems

Oversight

Compliance

Current FAA Focus

*Note: size of circle indicates workload and time spent

Standards

AIR’s future state model will streamline compliance activities and promotes early

and iterative actions between industry partners and AIR.

The future state model

introduces system risk

monitoring for enhanced

oversight throughout AIR

AIR is engaged up front on

new products and

capabilities

Critical path is less labor

intensive and

proportionate to workload

Refresh Certification Strategy


System

Oversight Surveillance

Checklist

Policy Policy and

Innovation

Compliance Compliance &

Airworthiness

Refresh Certification Strategy

DOIP Audits

ODA Scorecard

Risk Based Oversight

BRASS

NORSEE

Compliance Libraries

CMT - CAGs

Innovation Centers

Applicant Only

RBRTa

SMS + 21.20

ETSO/CAN-TSO

Voluntary SMS

ODA

Design Organization

Admin STC

Predictability Expanded Options

AOA

Part 21 – Mandatory SMS

AIR/AFS Integrated Oversight

Joint Accountability Framework

PBO

Early Collaboration

Safety Continuum informs Policy

Part 21 Rulemaking

Develop and implement

System Health Metrics

ICA, No-PNL, EWIS

ASO-Low

ASO-Med & High

Administrative STC

Federal Aviation Administration

7

• Implemented Scorecard Prototype as a tool

and process for culture change

– Joint standardized measurement tool and data with flexibility to

add custom data when needed

– Promotes partnering, mutual accountability and objective

measurements of progress.

• Establish Organizational Performance Division

– Monitors internal health

– Strategic leadership

– Change management

• Establish System Oversight Division

– External oversight function

Invest in Management Systems


Improve Our Organization The future state AIR organization is aligned by function (key capabilities of each Division below).

AIR-1, Director,

Aircraft Certification Service

Policy and

Innovation

Enterprise

Operations System Oversight

Compliance and

Airworthiness

Organizational

Performance

Supports aerospace

innovation by

creating novel means

of compliance,

develops and

maintains AIR

regulations,

manages the CSTA

program and overall

fleet safety, as well

as educational

outreach.

Issues all design

approvals for both

domestic and foreign

manufacturers as

well as production

and airworthiness

certificates, executes

COS processes, and

provides flight test

support.

Oversees all FAA

approvals,

certificates, and

bilateral partners in

addition to designee

and delegation

programs.

Monitors and

assesses the overall

internal health of

AIR, and provides

strategic leadership

for planning and

change management

within the

organization.

Provides core

services that enable

success throughout

AIR, including human

resources, financial

management,

workforce

development, IT

support and

information

management.

AIR-2a, Deputy Director,

Regulatory Operations

AIR-2b, Deputy Director,

Strategic Initiatives

8


9

Change Management Visit the “AIR Transformation” External Website

http://www.faa.gov/about/office_org/headquarters_offices/avs/offices/air/transformation

/

http://www.faa.gov/about/office_org/headquarters_offices/avs/offices/air/transformation


Change Management

http://www.faa.gov/about/office_org/headquarters_offices/avs/offices/air/transformation/engagement/newsletter/

Improving Communications through AIR’s External Newsletter





11

Industry Commitment

• Emphasize Applicant Responsibility

– Title 14 CFR Part 21.20 requirement

• Show compliance with all applicable requirements

• Provide a statement certifying compliance with the applicable

requirements

• Build Compliance Culture

– Placing value on Compliance

– Embraces systems safety and continuous improvement-SMS

• Engage with FAA early on innovative designs

• Work with FAA to develop tools to measure

company and FAA performance to improve system

health


12

Goal: Single, recognized, integrated,

actionable, consensus strategy

AIR’s Roadmap

Informs

Inputs

Comprehensive Strategic Plan

The “What” - Detailed requirements for achieving

transformational change across all components.

Industry Commitment

Comprehensive Integrated

Implementation Plan The “How” - Detailed plans

for ensuring successful implementations.

Informs

Strategic Vision Collaboratively developed,

high level, layman messaging for external communication of transformation – vehicle

for engagement.

Industry Roadmap?


Industry Commitment

• Collaborate on joint vision

• Collaborate on AIR’s Transformation

Roadmap • Review and provide feedback on AIR Transformation

Roadmap strategic initiatives

• Identify strategic Initiatives that are not captured for FAA

• Collaborate on FAA/Industry Joint Roadmap • Identify Industry strategic initiatives necessary for AIR

Transformation

• Collaborate on joint communication

strategy

13


Industry Commitment

System

Oversight Surveillance

Checklist

Compliance Compliance &

Airworthiness

Accountability Framework

Project Management approach to Compliance Library & SMS

Expanded RBO

Integrated Compliance Library

Accountability Framework

Compliance Library

Voluntary SMS

Risk Based Oversight

Self-auditing/Self-correcting

Performance-based system & data sharing

Predictability Expanded Options

Policy Policy and

Innovation

Safety Continuum informs Policy

Early Collaboration

Part 21 Rulemaking Mandatory SMS

CPI Guide PSP

Voluntary SMS

Voluntary disclosure & timely completion of corrective actions

Mandatory SMS

Post-cert familiarization

Develop and implement System Health Metrics

Compliance Culture

Compliance Culture

Industry must also Transform! Which actions might you take?


Questions?


Improving the Certification Process Together

FAA

internal actions

OEM internal

actions

FAA-OEM

interactions

Other

▪ Threshold: which projects does the FAA choose to engage on?

▪ Timing: at what stage does the FAA engage in the process?

▪ Process: how efficiently does the FAA execute its part of the process?

▪ Mindset: how does the mindset of FAA personnel affect the process?

▪ Skills: which skills are important for the FAA to facilitate certification?

▪ Timing: how does certification planning drive business decisions?

▪ Collaboration: how does ODA interact with the rest of your business?

▪ Adverse events: how does ODA respond to unexpected issues?

▪ Market forces: how is the certification process affected by your response to market forces?

(e.g. supply chain globalization, customization)

▪ Mindset: how does the mindset of your personnel affect the process?

▪ Skills: which skills are OEMs developing to get the most out of ODA?

Source Guiding questions

▪ Communication: how clear are the FAA and OEM with each other?

▪ Prioritization: how do the FAA and OEM jointly prioritize efforts?

▪ Collaboration: how collaborative are the FAA and OEM in certification?

▪ Organization: does structure of the FAA and OEM facilitate collaboration?

▪ Are there any other external factors affecting efficiency of certification?


Occurs immediately post-ODT

• Create PMO capability

• Facilitate leadership alignment

• Conduct employee, union, and

industry engagement activities

• Continue to operationalize AIR-

300 capabilities

• Complete preparations to begin

stand up

• Plan execution of priority

transformation activities

6 months prior to Phase Two

• Initiate organizational change

with permanent Executive

assignments to create future

state AIR divisions

• Transition management team

• Stand up most Foundational

Business future state

organizations to support Phase

Three activities

• Consolidate flight test resources

under a single management

structure

12-18 months total

• Complete stand up of all future

state AIR divisions

• Transition to oversight as primary

function; shrink compliance

bubble

• Standardize risk-based decision-

making regarding technical

operations

• Be agile and effective at

responding to change

Change Management

Complete Preparation

for Transition

Create Future Divisions Stand Up Future Divisions

Phase Two Phase Three

Phase One

Overview of Phased Transition Plan


10 AIR

Manager

Touch

Base

Telecons

Full Suite of Comm Channels

9 AIR podcasts

TBT Topics

Included: Increasing Efficiency

and Effectiveness

AIR Transformation

Status Update

Organizational

Change Update

Functional Description

Overview

Labor Relations & You

UAS (Refresh the Cert

Strategy

Change Leadership

Industry Commitment

Change Management

14 Videos

12 AIR Transformation

Lunch and Learn

23 AIRmails

290 questions &

comments

received

https://my.faa.gov/org/linebusiness/avs/offices/air/comm/videos.html



Documents

AIR & Industry Federal Aviation Transformation · PBO Early Collaboration Safety Continuum informs Policy Part 21 Rulemaking Develop and implement System Health Metrics ICA, No-PNL,