Performance Based Oversight The Implications for RollsRoyce CAA

Performance Based Oversight – The Implications for Rolls-Royce? CAA and Industry Part 145 Maintenance and Specialised Services Organisations Airworthiness Seminar 28 th October 2015 Gordon Mc. Kechnie Director of Quality, HSE & Business Improvement Civil Large Engines © 2015 Rolls-Royce plc and/or its subsidiaries The information in this document is the property of Rolls-Royce plc and/or its subsidiaries and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce plc and/or its subsidiaries. This information is given in good faith based upon the latest information available to Rolls-Royce plc and/or its subsidiaries, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc and/or its subsidiaries. Trusted to deliver excellence

Agenda • Rolls-Royce UK EASA Part 145 Approval • Performance Based Oversight - The Implications for Rolls-Royce • Summary • Questions Rolls-Royce Proprietary Information

Rolls-Royce UK EASA Part 145 Approval UK - East Rogerton – Test Facility UK - East Kilbride Repair & Overhaul UK - Inchinnan Repair & Overhaul (open variation) Ten global subcontract Repair Suppliers UK - Derby Off Wing Services (Repair and Overhaul) UK - Ansty Repair and Overhaul • The UK EASA Part 145 approved organisation supports the Rolls-Royce large engine fleet. Singapore - On Wing Services (open variation) UK – London Heathrow – Off Wing Services UAE - Abu Dhabi – On Wing Services (open variation) • We have 1299 employees with 121 Certifying Staff. • We also hold Part 145 approvals from: USA Vietnam Canada South Africa China Qatar Singapore Chile Kingdom of Saudi Arabia Brazil Bahrain Japan Korea Rolls-Royce Proprietary Information On Wing Services team operate globally

Agenda • Rolls-Royce UK EASA Part 145 Approval • Performance Based Oversight - The Implications for Rolls-Royce • Summary • Questions Rolls-Royce Proprietary Information

PBO - The Implications for Rolls-Royce Performance Based Oversight to Rolls-Royce is about: • Continually improving maintenance activity, • Being a trusted partner with the CAA as a PBO entity, • Having a robust and integrated SMS with clear accountabilities for product safety, • Sharing the right metrics and to show sustained improvement, • Delivering performance improvement via risk management and audit, • Demonstrating our regulatory understanding and having independent specialists to advise and coach the business. We are not supporting PBO to reduce our CAA oversight – this may ultimately occur but we have to earn it. Rolls-Royce Proprietary Information 5

PBO - The Implications for Rolls-Royce 6 For PBO to be effective we need to: o Ensure our employees fully understand our SMS and processes, o Continue to enable an effective safety culture, o Have an effective risk management and audit process, o Focus on preventive / proactive approaches - not just reactive, o Have effective reporting, investigation and lessons learnt processes, o Continue to improve our training approach on regulatory understanding, o Be open with the CAA on our metrics, risks and audit outcomes, o Ensure the CAA understand have confidence in our systems and processes , o Be trusted by the CAA that we can deliver our side of PBO. Rolls-Royce Proprietary Information

Rolls-Royce Risk Assessment approach 7 Probability Impact 9 14 19 24 29 7 12 17 22 27 4 10 15 20 25 3 8 13 18 23 1 6 11 16 Some of our Part 145 activity risks: • Human Factors. • On and Off wing maintenance activity. • Robustness of the assurance system to find a significant process weakness / noncompliance. • Oversight and use of Sub-Contractors • Effectiveness of our problem management, containment and lessons learnt processes. Rolls-Royce Proprietary Information 21

Rolls-Royce Safety Management System Rolls-Royce Proprietary Information 8

Enabling a Safety Culture 9 Safety Culture ladder Rolls-Royce Proprietary Information

Supplier Advanced Business Requirements (SABRe) • SABRe defines Rolls-Royce’s requirements for its external supply chain. • Whilst fully deployed for production suppliers it is now being rolled out for all our Maintenance suppliers even if they have their own Part 145 Approval. • SABRe includes requirements for : - Maintenance Process Design - Product & Process Approvals - Process Control & Capability - Quality Audit - Performance monitoring and reporting - Continuous Improvement - Training & Competency Rolls-Royce Proprietary Information Page 10

Agenda • Rolls-Royce UK EASA Part 145 Approval • Performance Based Oversight - The Implications for Rolls-Royce • Summary • Questions Rolls-Royce Proprietary Information

Summary 12 Safety Culture Results Internal Audit Part 145 audit Rolls-Royce Proprietary Information

13 Questions? Rolls-Royce Proprietary Information