Hexcel’s Quality Systems = World Class Quality Composite Materials for the Global

Aerospace Industry

A presentation by Stephen Davies

Hexcel Composites Global Quality Director

Aerospace ApplicationsAerospace Applications

Military

Commercial

Helicopters

Space

Hexcel is a world leader in the manufacture of advanced composites that meet the demands of the aerospace market

2005 $1.2B Total Sales, 64% to Aerospace

Aerospace QualificationsAerospace Qualifications

Agusta

Airbus

Aircelle

Alcatel

Alenia

Astrium

Dassault Aviation

BAe Systems

Bell Helicopter Textron

Boeing Commercial Airplane

Boeing Military Aircraft

Bombardier

EADS

Embraer

Eurocopter

Eurofighter JST

. . . . . and many more

Fairchild Dornier

GEAE

GKN

Goodrich

Gulfstream

IPTN

Lockheed Martin

Northrop Grumman

Pratt + Whitney

Raytheon

Rolls-Royce

SAAB

Sikorsky

Stork N.V.

Vought

Hexcel’s Global Manufacturing Footprint

Joint VenturesAlor Setar, MalaysiaTianjin, China

HeadquartersStamford, Connecticut

CompositesBurlington, WashingtonCasa Grande, ArizonaDecatur, AlabamaLivermore, CaliforniaPottsville, PennsylvaniaSalt Lake City, Utah

StructuresKent, Washington

ReinforcementsAnderson, South CarolinaSeguin, TexasStatesville, North CarolinaWashington, Georgia

United StatesEuropePacific Rim

CompositesDuxford, United KingdomDagneux, FranceNeumarkt, AustriaNantes, FranceParla, SpainStade, GermanyWelkenraedt, Belgium

ReinforcementsDecines, FranceLes Avenieres, France

21 global composite manufacturing plants

Hexcel’s Market Segments

Commercial Aerospace

Boeing

Airbus

Engines/Nacelles

Regional/Business

Space & Defense

• Military Aircraft• Launch Vehicles• Satellites• Missiles

Industrial

• Ballistics• Wind Energy• Recreation • Transportation• Architectural

Electronic Materials

• Switches & Routers• Mainframes• Cellular Infrastructure• Microwave/HF equipment

Sales by Market

2005 Sales $1,161 million2005 Sales $1,161 million

5%

31%

46%

18%

Quality Certification in Hexcel’s Internal Supply Chain

Carbon Fibre

PAN Precursor

Carbon Woven Fabric

Carbon Prepreg

Customer

AN

AS9100 Certifie

d

AS9100 Certifie

d

AS9100 Certifie

d

ISO9001 Certifie

d

Hexcel Duxford (UK), SLC (USA), Dagneux

(France), Livermore (US), Parla (Spain)

Hexcel Les Avenieres (France)

Hexcel Salt Lake City (USA)

Hexcel Decatur (USA)

Chemical IndustryISO9001 Certifie

d

AS9100 certified, vertically integrated company

AS9100 Certification

Hexcel has been successful in achieving AS9100 certifications

11 wholly owned plants globally with AS9100 certification

Where possible Hexcel is flowing down AS9100 requirements to internal suppliers

Hexcel is concerned regarding the continued very high level of customer non standard “self audit” questionnaires

Customer audits are continuing at a very high rate, but are more process / product focussed

Hexcel’s AS9100 certificates are available at:

http://www.hexcel.com/About/Locations/Certifications

Continuing to satisfy Aerospace requirements

Problem Solving

Quality PlanningCustomer Focus

• 5 Phase Structured Format• 5 Whys

• PFMEA• Error proofing

• Metrics• Focus on problem resolution

Quality Improvement Planning

Quality Planning

Hexcel has been very active “Designing-in Quality” to its manufacturing process

Process FMEA approach has most value during new process equipment design phase

Cross functional team brainstorms potential failure modes

Risks are quantified in terms of Severity, Occurrence and Detection of each potential failure mode

Highest risks are designed out

Cheaper to rectify potential issues during design phase!

Zero Defects Processes by Design

Zero Defects Composite Materials

Hexcel’s has aggressively applied best practices in Quality Management to improve customer satisfaction

Definition of globally common quality metrics

Customer focussed- Customer Reject PPM and Number of Customer Complaints

Common calculation guidelines defined

Improvement objectives set

Quality Improvement Plans regularly reviewed

Results on Control Charts tracked monthly by Senior Management

Result is a dramatic improvement in customer satisfaction

Up to 97% improvement over 4 years

Customer Focussed Quality Improvement Planning → World Class Quality

World Class Quality Improvement

Month

Indiv

idual V

alu

e

Mar-06Oct-05May-05Dec-04Jul-04Feb-04Sep-03Mar-03Oct-02Apr-02

20000

15000

10000

5000

0_X=203UCL=1005

dic-01 oct-03 jul-04

1

1

I Chart of Customer Reject Monthly PPM by Month

Main Aerospace Products

Resins

Adhesives

Metallic honeycomb

Carbon Fibers

Non-metallic corePrepreg

These are Raw Materials for the Aerospace industry.AS9102 is not applicable and AS9103 is not required.

Products

Metallic honeycomb Added Value CorePanels

Main Aerospace Products

This is the honeycomb core raw material with some additional value adding operation

FAI is performed and although AS9102 has not been requested to date, Hexcel can meet these requirements

AS9103 is not required by customers

Products

Metallic honeycomb

Main Aerospace Products

These are finished composite parts

Hexcel Structures is compliant with AS9102 and AS9103

AS9102 has been flowed down to sub suppliers with positive results in commonizing processes

Composites parts

AS91XX Series Status in Hexcel

CarbonFibre

CarbonReinforcements

Structures

CorePrepreg

s

AS9100

AS9102

AS9103

Applicability and implementation is product specific