Dear Customer,

CMC continuously receives requests from customers to fill out quality surveys and other documents. As you can appreciate each of these individually unique formats can require significant time and effort to complete. In order to facilitate the process and respond to you much quicker we have incorporated and consolidated the questions into a Standard Survey Response package that we will provide to all requests in the future. This document, as a complement to the quality manual, gives general and specific information about CMC Electronics (Canadian and Sugar Grove (Ill.) Operations). It is a compilation of the results of hundreds of CMC customers’ questionnaires. We trust that this will satisfy your request and look forward to continued excellent relations. If I can be of further assistance I may be contacted at your convenience.

Sincerely,

I hereby certify that the information in this survey is valid and current.

Olivier de Brouwer, P. Eng. Director, Quality Assurance and Continuous Improvement 514-748-3000 X4127 514-748-3139 [email protected]

KEY MANAGEMENT CONTACTS

Michel Potvin President Tel. : (514) 748-3000 Fax : (514) 748-3025 [email protected]

Kristof Vierin Vice President, Sales Tel: +32 56 27 2350 Fax: +32 56 233 588 [email protected] Marc Gagné Vice President, Operations Tel: (514) 748-3000 Fax: (514) 748-3061 [email protected] Patrick Champagne Vice President, Products, Display Solutions Tel: (514) 748-4100 Fax: (514) 748- 3061 [email protected] James Palmer Vice President, Products, Navigation Solutions Tel. : (514) 748-3000 Fax. : (514) 748-3061 james.palmer@ cmcelectronics.ca

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Claude Chidiac Vice President, Products, Strategy & Customer Support Tel.: (514) 748-3000 Fax.: (514) 748-3061 [email protected] Jim Brennan Director, Customer Support Tel: (514) 748-3000 Fax: (514) 748- 3139 [email protected] Olivier de Brouwer, Director, Quality Assurance and Continuous Improvement Tel: (514) 748-3000 Fax: (514) 748-3139 [email protected] Salim Ramji Director, Airworthiness & Quality Engineering Tel: (514) 748-3000 Fax: (514) 748-3139 [email protected]

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CORPORATE ORGANIGRAM

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TABLE OF CONTENTS KEY MANAGEMENT CONTACTS .............................................................................................................. 1 1.

INTRODUCTION ................................................................................................................................... 5

2.

CMC ELECTRONICS HISTORY ........................................................................................................... 6

3.

ACRONYMS .......................................................................................................................................... 7

4. CMC PRODUCTS / SERVICES PRESENTATION AND MAIN CUSTOMERS.................................... 7 4.1 Aviation Products ............................................................................................................................... 8 4.2 Cockpits & Systems Integration ......................................................................................................... 8 4.3 Custom Electronics ............................................................................................................................ 8 4.4 Repair and Overhaul Program ........................................................................................................... 9 4.4.1 Return Procedures Material Authorization (RMA) ................................................................... 9 4.4.2 Warranty ................................................................................................................................ 10 4.4.3 "Out-of-Warranty" Equipment Repairs and Related Rentals ................................................ 10 4.4.4 Firm Fixed Repair Prices ....................................................................................................... 10 4.4.5 Web site link: ......................................................................................................................... 10 4.5 Subcontracting ................................................................................................................................. 10 5.

MAIN SUPPLIERS LIST...................................................................................................................... 11

6.

FINANCIAL DATA............................................................................................................................... 11

7. CMC QUALITY SYSTEM .................................................................................................................... 11 7.1 New product or product modification................................................................................................ 11 7.2 Quality Control .................................................................................................................................. 11 7.3 List of pertinent approvals certificates (See copies in appendix ) .................................................... 12 8. CONTINUOUS IMPROVEMENT ......................................................................................................... 13 8.1 Balanced Scorecard ......................................................................................................................... 13 8.2 Lean/Six-Sigma ................................................................................................................................ 13 9. 10.

HOUSING, FACILITIES AND SECURITY .......................................................................................... 13 OPERATION AND TEST CAPACITY ............................................................................................. 13

11. CERTIFICATES - ............................................................................................................................. 15 11.1 The Canada Border Services Agency .......................................................................................... 15 11.2 ISO 14001 Environmental Management System ......................................................................... 15 11.3 Certificate of approval AMO (maintenance) - Transport Canada ................................................. 15 11.4 Certificate of approval Manufacture - Transport Canada ............................................................. 15 11.5 ISO 9001 and AS9100 .................................................................................................................. 15 11.6 Certificate of Canadian control Goods program ........................................................................... 15 11.7 EASA ............................................................................................................................................ 15 11.8 NADCAP for electronics ............................................................................................................... 15 11.9 Processing Navigation data – FAA – Transport Canada.............................................................. 15 11.10 Capabilities list .............................................................................................................................. 15 11.11 MIL-PRF-38534 hybrid microcircuit certification (custom electronics) ........................................ 15 11.12 Russian FAVT certificate FP145 .................................................................................................. 15 11.13 Certificate CAAC (China) .............................................................................................................. 15 11.14 Hong Kong Civil Aviation Dept ..................................................................................................... 15 11.15 Certificate of appreciation DND A300 program ............................................................................ 15

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1.

INTRODUCTION CMC Electronics general info CMC Electronics (www.cmcelectronics.ca) designs and produces leading technology electronics products for the aviation and global positioning markets. CMC’s focus is on delivering innovative cockpit systems integration and avionics solutions to its customers worldwide. Its principal locations are in Montreal, Quebec; Ottawa, Ontario; and Chicago, Illinois. CMC is a wholly owned subsidiary of Esterline Corporation (NYSE:ESL, www.esterline.com), a specialized aerospace and defense company headquartered in Bellevue, Washington. Its key markets are commercial aviation (40%), military aviation (40%) and industrial applications (20%). Its three principal business areas are Avionics and Controls; Sensors and Systems; and Advanced Materials. Esterline is 1.3 billion dollars company with close to 10,000 employees around the world. CMC Electronics Inc.

Name of Organization Montreal

Ottawa

Sugar Grove

600 Dr Frederik Philips Boulevard Ville St-Laurent, Quebec Canada, H4M 2S9

84 N Dugan Rd P.O. Box 250 Sugar Grove, IL 60554 United States

415 Legget Drive, Suite 100 P.O. Box 13330 Ottawa, Ontario Canada K2K 2B2

Phone

514-748-3000

630-466-4343

613-592-6500

Fax

514-748-3136

630-466-4358

613-592-7427

Address

email

[email protected]

Web site

www.cmcelectronics.ca

Plant Total surface sq. ft (sq. m)

268,000 (24 900)

45,000 (4 182)

83,259 (7,736)

Factory sq. ft (sq. m)

155,000 (14 400)

11,000 (1 022)

19,979 (1 855)

Offices

113,000 (10 500)

12,000 (1 115)

63,280 (5,880)

800

85

195

260

40

55

175

34

85

Production

305

4

45

Inspectors Director & Mgrs QA/ Engineers QC Technicians

35 5 15 5

1 2 2 2

4 2 3 1

sq. ft (sq. m)

Staff Number of employees Administration Engineering

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2.

CMC ELECTRONICS HISTORY The Marconi Wireless Telegraph Company of Canada was founded in 1903. The name of the company was changed to Canadian Marconi Company in 1925. For the past century, the company has consistently provided its customers with innovative and highly reliable products and its employees with challenging and rewarding career opportunities. Below are some of the historic highlights that have contributed to CMC Electronics’ reputation as an industry leader in aerospace and communications.

Year

Event

1901

World's first trans-oceanic wireless transmission.

1903

Marconi's Wireless Telegraph Company of Canada incorporated.

1921

First home radio receivers in Canada.

1925

Company name changed to Canadian Marconi Company.

1931

Establishment of the Canadian radio network, which became the CBC.

1951 1953 1956

• TV receivers designed and manufactured. • Trans Atlantic Telecommunications services later known as Teleglobe Canada, acquired by Canadian Government. English Electric Company Limited of the U.K. acquired 50.6% of Canadian Marconi. First Canadian company to design a complete microwave radio relay system, the Mid-Canada Defense Line.

1957

First to develop an FM-CW Doppler radar for air navigation.

1960s

Focus on aircraft navigation, monitoring and display systems and radar.

1972

Broadcasting operation sold.

1970s to present

• High-end aviation and positioning markets • Commercial and defense markets • Equipment supplier and systems integrator

2000

Company name changed to BAE SYSTEMS CANADA INC.

2001

Company name changed to CMC Electronics Inc.

2002

Acquired Flight Visions Inc. in Sugar Grove Ill.

2007

Company acquired by Esterline.

2010

Acquired intellectual property of SmartDeck cockpit

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3.

ACRONYMS AMO CMM CMC DOD FAI ISO MBR NCSLI RMA SB SEI SECU SIB SPC

4.

Approved Maintenance Organization Capability Maturity Model CMC Electronics Inc Department of Defense First Article Inspection International Standard Organization Management Business Review National Conference Of Standards Laboratories Return Material Authorization Service Bulletin Software Engineering Institute Spoiler Electronic Control Unit Service Information Letter Statistical Process Control

CMC PRODUCTS / SERVICES PRESENTATION AND MAIN CUSTOMERS CMC Electronics is a world leader in the design, manufacture, sales, repair, overhaul and support of high-technology electronics products for the aviation and global positioning markets. The company is a major supplier to the aerospace and high technology industries, airlines, military agencies and government customers around the world. The sales distribution by domain is: Domain

% of sales

Military / Civil Government / Commercial

50 / 50 40 / 60

NOTES: * CMC’s DOD cage code is 90073 for Canadian operations and 023M5 in Sugar Grove.

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The following tables present the main Products / Services and key customers: Products / services 4.1

4.2

Main customers

Aviation Products • Cockpit avionics upgrades and systems integration • Flight Management Systems • GPS sensors for ground station and airborne use • Satellite communications (Satcom) antennas • Enhanced vision systems & software applications • Electronic flight bags & software applications • Head-Up displays C ockpits & Systems Integration • • • • • • • • •

4.3

Cockpit systems integration Cockpit Avionics Upgrades Mission computing and processing systems Display and control systems Head Up Displays (HUDs) Navigation sensors Human factors engineering Integrated Cockpit AvionicsSuites Embedded Virtual Training

Airbus, Air France, Austrian Air Force, Boeing, Bombardier, Corsair, Dubai Air Wing, Eurocopter, Honeywell, Korean Air Line, Japan Air Line, KLM, Lufthansa, Qantas, Saudi Arabian Airlines, Singapore Airlines and many other major OEM and airlines.

Canada’s Department of National Defence, Hawker Beechcraft Corp., Korea Aerospace Industries (KAI), US Navy, Sikorsky, US Army, USAF, Westland, Pilatus, Aermacchi, Chilean Air Force (FACH) , Dubai Air Wing.

Custom Electronics • • • •

Display components and panels Hybrid microcircuits Power supplies Junction boxes

Airbus, Rockwell Collins, L3, Major aerospace companies

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4.4

Repair and Overhaul Program The Repair and Overhaul Services department provides for the repair and modification of all CMC Electronics’ aviation products. CMC Electronics is the only BAE SYSTEMS recognized independent maintenance repair facility in North America for the repair and servicing of SECUs (Spoiler Electronic Control Unit). For its Canadian facilities CMC Electronics holds an Approved Maintenance Organization (AMO) approval under Transport Canada (TC), Canadian Aviation Regulations (CAR) chapter 573, EASA 145 and Russian FAVT certificate FP145. The Maintenance release form provided is Form 1. The customer group supports civil and military aviation equipment and systems including: • • • • • • • • • • • • •

4.4.1

Global Positioning Systems (GPS) Flight Management Systems (FMS) Airborne Satellite Communications SATCOM - Antenna Subsystems Cockpit Management and Display Systems Microwave Landing Systems (MLS) Engine Instrument Display Systems Doppler Navigation Systems Cabin Display Systems Enhanced Vision Systems (EVS) Electronics Flight bags GPS and LORAN Navigation Systems SECU

Return Procedures Material Authorization (RMA) In order to facilitate tracking the customer should request a Return Material Authorization (RMA) number prior to the return of the failed equipment to CMC Electronics or provide notice of incoming equipment by fax or e-mail, stating carrier and waybill number, details of equipment/failure and purchase order number to your Order Administrator. When contacting CMC Electronics Customer Support for RMA number and/or service requests, the following information regarding the equipment and the aircraft is required: • • • • • • • •

Complete part number of faulty equipment Complete serial number of faulty equipment Aircraft type and tail number Report discrepancy/malfunction of equipment Service requested (Repair, Modification, Exchange, Loan/Rental) Ship to address Equipment covered by Warranty? Purchase order number (billing address)

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4.4.2

Warranty CMC warrants its equipment against defects in design, material or workmanship, which, under proper use, appear in the equipment or parts thereof, provided that the equipment is returned to CMC, transportation prepaid, within the specified warranty period.

4.4.3

"Out-of-Warranty" Equipment Repairs and Related Rentals For "Out-of-Warranty" repairs, rental equipment may be available. Please check with your Administrator for rates and conditions.

4.4.4

Firm Fixed Repair Prices CMC Electronics Inc. maintains a list of "Firm Fixed Repair Prices". Firm fixed repair prices are applicable to equipment that has failed as a result of normal operational use. Such equipment must be structurally sound and complete. These are applicable to post-warranty repairs performed at the CMC Electronics Inc. factory.

4.4.5

Web site link: http://www.esterline.com/avionicssystems/en-us/overview.aspx

4.5

Subcontracting CMC does not subcontract any processes including packing, which are performed on site, and has its own in-house shipping/receiving area. Notes: * CMC offers conformity certificates or regulatory release certificates as necessary. * CMC uses only new traceable certified parts that are not refurbished in the design, manufacturing or R&O of its products.

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5.

MAIN SUPPLIERS LIST CMC has more than one thousand suppliers; the supply chain is distributed as follows: U.S. 78 %, Canada 18%, Europe and Asia 4% and active suppliers are estimated at 750 for production. A list of main suppliers can be consulted on site if needed. .

6.

FINANCIAL DATA CMC Electronics Holdings Inc.'s D&B rating was formerly 5A2 (D&B ref 20-213-5604). Now that CMC is a wholly owned subsidiary of Esterline Technologies Corp, D&B uses the rating of the parent company Esterline which is also 5A2 with a Financial Stress Class of 3 and a Credit Score Class of 1 (lowest risk). The bank of CMC Electronics is: TD Canada Trust, 3131 Boul. De la Côte-Vertu, Saint-Laurent, Quebec.

7.

CMC QUALITY SYSTEM CMC has developed and implemented a Quality Management System to demonstrate that it is continuously maintained for effectiveness and process improvements in accordance with the requirements of ISO 9001:2008, of AS9100. The internal audit process is compliant to ISO 19011. Also implemented an Environmental Management System certified to ISO 14001 for our Canadian sites. CMC controls monitors and controls the shelf life of all materials having an expiry date. No exclusions are taken because all requirements of the ISO 9001:2008 and AS9100 apply. The Quality Management System documentation is kept current and readily available to auditors and customers.

7.1

New product or product modification Each time CMC builds a product for the first time, an FAI is performed per AS9102. The product part number is changed when the company introduces modifications that affect the form, fit, function or interchangeability of the product. Engineering change procedures are documented to notify customers by e-mail or written letter, of any changes to our products that may affect performance, quality, dimensions or reliability as required. CMC has Configuration Management and changes that affect product are also documented by SIL or SB.

7.2

Quality Control CMC uses a number of techniques to verify its suppliers such as on-site surveys, audits and performance history. All information concerning accepted or rejected product quantities from suppliers is recorded upon receipt. The Quality records are maintained for a period of 10 years. CMC pays special attention to controlling the revision status of Airworthiness data and ensures that the latest revision date is upheld. CMC maintains ‘’real time’’ SPC charts for processes that are subject to SPC and can share this information with customers. The statistical sampling procedures are based on ANSI/ASQC Z1.4.

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7.3

List of pertinent approvals certificates (See copies in appendix ) Type of certificates ISO 9001-2000 AS 9100

Number

Organization

FM 63598 FM 76124

BSI

SAE AIR 5359 – Revision B ISO 14001:2004

EMS 584897

RTCA/DO-200A

File 5012-N1

MIL-PRF-38534 AWM 561-Manufacture/certification

03-73

CAR 573.0-Maintenance

BSI Transport Canada DSCC Transport Canada

EASA

145. 7022

EASA

NADCAP for electronics

AS7003

PRI

Russian certificate FP145

2021130007

FAVT

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8.

CONTINUOUS IMPROVEMENT CMC utilizes a variety of continuous improvement programs, techniques, processes and tools. The table below summarizes the history of such initiatives at CMC. The various programs and techniques used by CMC for the continuous improvement are presented as follows: History of dates when Improvement Initiatives were started. 1992

1994

1996

1997

TQM SP C ISO 9001:1994 KA IZEN, B P R

8.1

1999 6 σ

2002

ISO 9001:2000

2003 A S 9100 CM M level 3

2004 M o re Lean Techniques

2006

2008

Qualigram Lean Six Sigma

2010

2011

2012

NA DCA P fo r electronics ISO 9001:2008

A S9100 Rev.C

ISO 14001:2004 (M o ntreal site)

Balanced Scorecard The Balanced Scorecard is a methodology used at CMC to establish the key indicators in four main areas: Business Process, Financial, Customer Satisfaction, and Human Resources including Organizational Learning. The purpose of this exercise is to narrow down the enormous amount of data available to those relatively few metrics that are required to be able to monitor the health of the company, manage its future direction and highlight opportunities for improvement. It is reviewed monthly during the Monthly Business Review by all senior management. Actions are logged and followed up.

8.2

Lean/Six-Sigma CMC uses Lean / Six-Sigma methodology (DMAIC: Define, Measure, Analyze, Improve and Control) to reduce variations in products, and design, manufacturing and transactional processes. The prime focus is defined by the needs of internal and external customers. The Six-Sigma program includes the following tools and techniques: Kaizen, 5S, Poka Yoke, Process capability, DFSS, VSM, DOE, Lean Manufacturing, SMED, SPC. CMC’s Six-Sigma trained personnel consists of: 240 Green Belts (40 hours of training), and 29 Black Belts (total of 20 days of training). All training modules are available on the CMC intranet, which is designed to give easier access to materials, tools, project examples, resources, and other general information concerning Six Sigma and Continuous Improvement.

9.

HOUSING, FACILITIES AND SECURITY CMC has facilities of adequate size to house all necessary tools, equipment, material and parts to perform contracted work. All parts and equipment, including those of the customers, are properly packaged, identified and stored to protect from damage, contamination, fire and theft. The storage and work areas are separated, both are environmentally controlled, meet the industry standards and comply with customers’ and/or government imposed requirements. CMC has a security system and a fire protection system including sprinklers. All electronic data are externally backed-up daily. CMC’s Canadian operations hold a certificicate of the Canadian control Good Programs (appendice 8) and the Sugar grove facility is DDTC (Directorate of Defense Trade Contracts) is registered under number M-8349.

10.

OPERATION AND TEST CAPACITY To effectively manage the company’s capacity, CMC uses a BAAN IV ERP system to monitor the overall capacity of each manufacturing department. Standard times are assigned for each and a rough capacity analysis is performed by the master planner in the planning group. This is a

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dedicated group for this type of facility. The CRP is then analyzed by the supervisor, who verifies the data pertaining to each manufacturing area. Subsequently, adjustments are made to pull-in or push-out production activities in line with customer requested date. CMC operates approximately 8 hours per day and the current operational capacity is about 50%. The plant shut down is normally scheduled for 3 weeks in July-August and 1 week between Christmas and New Year’s Day.

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11.

CERTIFICATES - CLICK HERE TO VIEW THE FOLLOWING CERTIFICATES

11.1

The Canada Border Services Agency

11.2

ISO 14001 Environmental Management System

11.3

Certificate of approval AMO (maintenance) - Transport Canada

11.4

Certificate of approval Manufacture - Transport Canada

11.5

ISO 9001 and AS9100

11.6

Certificate of Canadian control Goods program

11.7

EASA

11.8

NADCAP for electronics

11.9

Processing Navigation data – FAA – Transport Canada

11.10

Capabilities list

11.11

MIL-PRF-38534 hybrid microcircuit certification (custom electronics)

11.12

Russian FAVT certificate FP145

11.13

Certificate CAAC (China)

11.14

Hong Kong Civil Aviation Dept

11.15

Certificate of appreciation DND A300 program

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