Compliance-the 3rd variable

© 2013 IFS

COMPLIANCE THE 3RD VARIABLE Breakout Presentation

BRENDAN VIGGERS | HEAD OF PRODUCT MANAGEMENT | IFS DEFENCE

© 2013 IFS

TLA

COMPLIANCE – THE 3RD VARIABLE

© 2013 IFS

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Performance •Availability •Effectiveness •Reliability •Readiness •Sustainment

Compliance •Risk •Legislation •Standards •Regulations

Financials •Revenue •Cost •Margin •Shareholder Value

CORPORATE SOCIAL RESPONSIBILITY Headline and abstract

http://www.defenseindustrydaily.com/

“THERE WAS NO DOUBT THAT THE CULTURE AT THE TIME HAD SWITCHED. IN THE DAYS OF SIR COLIN

TERRY1 YOU HAD TO BE ON TOP OF AIRWORTHINESS. BY 2004, YOU HAD TO BE ON TOP OF YOUR BUDGET, IF YOU WANTED TO GET AHEAD”. (FORMER SENIOR

RAF OFFICER, 2008)

1 Air Chief Marshal Sir Colin Terry, Chief Engineer RAF (1997-1999) www.official-documents.gov.uk/document/hc0809/hc10/1025/1025.pdf Page 355

Accurate and reliable CSR data will become increasingly important 61% state a strong interest in embedded enterprise software 63% have tried to quantify the financial contribution from CSR tracking

CSR TECHNOLOGY AMONG LARGE COMPANIES MAIN FINDINGS

COMPLIANCE THE 3RD VARIABLE 12 © 2013 IFS

A form of corporate self-regulation integrated into a business model where policy functions as a built-in, self-regulating mechanism and the business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms.

CORPORATE SOCIAL RESPONSIBILITY IFS DEFINES CORPORATE SOCIAL RESPONSIBILITY

COMPLIANCE THE 3RD VARIABLE 13 © 2013 IFS

© 2009 IFS

15 http://www.scenicreflections.com/media/346177/challenger_2_tank_Wallpaper/

© 2009 IFS

16 http://www.politics.ie/forum/defence/188252-british-government-decides-opt-jump-jets-new-carriers-3.html

EXPORT CONTROL

Countries that export high technology and armaments have put in place export controls

Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR)

Manufacturers and suppliers must apply for export licenses for items listed on the US Munitions List

New reforms to the AECA move dual-use or commercial items from the US Munitions List to a Commerce Control List under Export Administration Regulations act

WHAT IS EXPORT CONTROL?

COMPLIANCE THE 3RD VARIABLE 19 © 2013 IFS

Arrested for trying to export batteries to a customer in Tehran without an appropriate licence

Tappin was named as the exporter

Zinc/silver oxide batteries that power MIM-23 Hawk surface-to-air missiles

18 Hawk missiles were shipped to Iran during the Reagan Administration in 1985

CASE STUDY CHRISTOPHER TAPPIN

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http://www.telegraph.co.uk/news/worldnews/northamerica/usa/9120430/Christopher-Tappin-shackled-in-Texas-court.html

CASE STUDY AEROFLEX

COMPLIANCE THE 3RD VARIABLE © 2013 IFS

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Supplier of radiation-hardened electronics for space and defense applications

Exported components to Thales who were building communication satellites for China

EACA forbids the export of virtually any satellite hardware or technology to China

http://www.spacenews.com/article/satellite-telecom/37071us-satellite-component-maker-fined-8-million-for-itar-violations

HOW CAN IFS APPLICATIONS HELP?

© 2013 IFS

LICENCE APPLICATION

COMPLIANCE THE 3RD VARIABLE

Denied Party check

Part specific

Assembly level

Licence Application

Licence Usage

Document Management

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QUALITY

NON CONFORMANCE REPORTING QUALITY ASSURANCE

COMPLIANCE THE 3RD VARIABLE © 2013 IFS

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Fully integrated Compliance planning Audit management Non-conformance reporting Corrective and preventative actions

Reduce administration and add value

HOW CAN IFS APPLICATIONS HELP? IFS QUALITY ASSURANCE

COMPLIANCE THE 3RD VARIABLE 25 © 2013 IFS

HOW CAN IFS APPLICATIONS HELP? NON CONFORMANCE REPORTING

COMPLIANCE THE 3RD VARIABLE 26 © 2013 IFS

SUSTAINABILITY AND THE

ENVIRONMENT

REACH

COMPLIANCE THE 3RD VARIABLE 29 © 2013 IFS

HOW CAN IFS APPLICATIONS HELP? IFS ECO FOOTPRINT

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CORPORATE SOCIAL RESPONSIBILITY

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HOW IFS CAN SUPPORT YOU TO BE MORE COMPLIANT

COMPLIANCE THE 3RD VARIABLE

QUALITY ASSURANCE OVERVIEW

Compliance •Used to identify the Reference Standards

which are relevant to each Business Area and to plan when each one will be audited.

Audit •Carried out to ensure that the company has

clearly defined procedures and that it complies with them.

Non-Conformance

Reporting (NCR)

•Provides the method for investigation and follow-up of Non-Conformance with one or many Correction Actions

Corrective Actions and Preventive

Actions (CAPA)

•CAPA’s focus on a systematic investigation of the root cause of either: •prevent its recurrence •prevent its occurrence

HEALTH & SAFETY

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OVERVIEW

Incident Reporting

Risk Assessment

Safety Inspection

Register Incident Confirm Incident Acknowledge / Reject Incident Investigate Analyze Incident

Cause Evaluate Safety

Procedures Recommend and Complete Actions

Actions to be taken

Risk evaluation

What control measures are in place?

Who may be harmed and how?

Identify risk hazards

Next assessment Permit

To Work

Safety Inspection Questions

•Line Managers Trained—Fire Safety •…

Answers

•All Trained— Induction •Trained—On Job

Training

Safety Inspection Templates

•Safety Procedure Basic •First Aid Level 1 •First Aid Level 2

Safety Inspection Types

•Fire Audit •Disability

Discrimination Act Survey •…

Safety Inspection

ECO-FOOTPRINT OVERVIEW

Substances

Part Eco-footprint Requirements for

Eco-footprint

Analysis

Routing

• Emission per Unit • Emission per Batch

• Emissions per Distance and Weight Unit

• Emission per Unit • Emission per Batch

• Unit Emission per Lifetime UoM • Emission per Unit

• Emission per Unit

Product Structure Supply Chain Matrix

for Supplier

Work Center Emissions

Emissions Related to Purchase Parts

Transport Emissions

Part Specific Emissions

Usage Emissions

End of Life Emissions

• Emission per Hour • Emission per Unit • Emission per Batch

Eco-footprint Basic Data

Calculation!

EXPORT CONTROL OVERVIEW

Part Classification

Export License (find and connect where relevant)

End Usage Denied Party Authorization

Access Rights Coverage Connections Restrictions History Journal

PURCHASE ORDER inform only

SHOP ORDER inform only

CUSTOMER ORDER can stop (override)

Export Control Validation

DOCUMENT REVISION more restrictive access

COMPLIANCE – THE 3RD VARIABLE

WITH PERFORMANCE AND COST

CORPORATE PERFORMANCE MANAGEMENT

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A FRAMEWORK TO MANAGE RISK AND COMPLIANCE

COMPLIANCE THE 3RD VARIABLE

CORPORATE PERFORMANCE MANAGEMENT

© 2013 IFS 38

A FRAMEWORK TO MANAGE RISK AND COMPLIANCE

COMPLIANCE THE 3RD VARIABLE

CORPORATE SOCIAL RESPONSIBILITY (CSR) OVERVIEW IN IFS/CPM

http://www.infiniti-redbullracing.com/

SUMMARY

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WOULD YOU LIKE TO KNOW MORE?

IFS CSR MODULES: IFSWORLD.COM/EN/SOLUTIONS/CSR-SOLUTIONS

IFS CORPORATE PERFORMANCE MANAGEMENT: IFSWORLD.COM/IFSDEFENCE/SOLUTIONS/DEFENCE-CPM

QUESTIONS?INTRODUCE YOURSELF, JOB ROLE,

COMPANY, VERSION USED

THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALITY FOR IFS’S SOFTWARE PRODUCTS AND TECHNOLOGY. SUCH STATEMENTS OF FUTURE FUNCTIONALITY ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE

INTERPRETED AS ANY COMMITMENT OR REPRESENTATION. IFS AND ALL IFS PRODUCT NAMES ARE TRADEMARKS OF IFS. THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS.

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