PURPOSE OF THIS SESSION

Eric JacklinF.M. Callahan & Son, Inc.Supplier Support Committee Leadership Team ChairPaul EvansJames Fisher Nuclear Limited Supplier Support Committee Leadership Team25 February 2014

PURPOSE OF THIS SESSION • Provide some background on Nadcap. • Show you where to find the information and tools to successfully prepare for your Nadcap audit. • Introduce you to key individuals who can help you understand the Nadcap accreditation process.

INTRODUCE YOURSELF • Your name • Company name • What special process or processes will be audited?

INTRODUCING THE SUPPLIER SUPPORT COMMITTEE (SSC) MISSION STATEMENT Our goal is to represent the supplier community and work with the Nadcap Management Council to enhance the effectivenessand economical valueof the Nadcap system for the mutualbenefit of suppliers and subscribers.

SOME SSC ACHIEVEMENTS WANT TO GET INVOLED? Talk to anySCC member at this meeting • Supplier Survey every two years • Flowdown templates • Increased Supplier Voting in Task Group ballots • Mentoring program for new suppliers

MENTORING PROGRAM If you would like to request a mentor, please send an email to NadcapSSC@sae.org • Objective • To provide names and contact information of experienced Nadcap suppliers (Mentors) to suppliers (Mentees’) new to the process or in need of assistance navigating the Nadcap system. • Benefits • Gain an understanding of the Nadcap process by working with a passionate Mentor who has extensive process and value-added experience • Open communication with an accredited supplier who can provide insight into the Nadcap program • Collaboration with Task Groups • Link Suppliers with SSC and Nadcap resources

WHERE DOES THE SSC FIT INTO Nadcap? POLICY & FINANCIAL PRI BOARD OF DIRECTORS OVERSEE Nadcap PROGRAM Nadcap MANAGEMENT COUNCIL INDUSTRY REPRESENTATIVES SUPPLIER SUPPORT COMMITTEE (SSC) TASK GROUPS • TECHNICAL EXPERTS • DETERMINE REQUIREMENTS • FINAL DECISION ON ACCREDITATION • NON-TECHNICAL GROUP • WORK ON SYSTEMIC ISSUES

STRUCTURE OF THE SSC LEADERSHIP TEAM TALK TO US ABOUT NON-TECHNICAL ISSUES PAST CHAIR ADVISOR ERIC JACKLIN F. M. Callahan & Son CHAIR THOMAS NEWTON Aircraft Xray Laboratories, Inc. AMERICAS JIM RINGER Tech Met EUROPE PAUL EVANS JFIMS AMERICAS DAVID MICHAUD Fountain Plating AMERICAS LLOYD BARKER Alcoa ASIA LEI BAO China Iron & Steel Research Institute Group VICE CHAIR DALE HARMON Cincinnati Thermal Spray SECRETARY JONATHAN HEBBEN Ducommun New Member

WE WILL HELP YOU WITH ANY TASK GROUP QUESTIONS Conventional Machining as a Special Process TIM CROWE Hunting Dearborn, Inc. Measurement and Inspection BRAD GOULD Hunting Dearborn, Inc. AQS MARK BROWN Kaman Aerospace Corp Elastomer Seals JOHN HUDSPETH International Seal NDT GARY WHITE Orbit Industries Chemical Processing DAVID MICHAUD Fountain Plating Coatings DALE HARMON Cincinnati Thermal Spray NMSE DAVE JONES 3P Processing Inc. Heat Treating ROY ADKINS Specialty Steel Treating Composites VITORIO STANA Avcorp Materials Testing BRYAN HALL NSL Analytical Services, Inc. Welding MIKE SCHLECKMAN Voss Industries

AGENDA • Introducing Nadcap • Why Nadcap? • How do I get started? • Audit Preparation Tips • The End of the Audit • What Now?

Nadcap DEFINITION The leading, worldwide cooperative programof major companies designed to manage a cost effective consensus approachto special processes and products and provide continual improvementwithin the aerospace industry.

ACTIVITY IS GOVERNED BY PROCEDURES Aerospace Standard which documents the requirements for implementing Nadcap industry consensus-based accreditation programs. AS7003 Quality policy describing the quality system of the organization. QUALITY MANUAL NOP Nadcap Operating Procedure Specific procedures by which Nadcap operates. Scope and general operating procedures for each specific Nadcap commodity program. NTGOP Nadcap Task Group Operating Procedure NIP Nadcap Internal Procedure Specific procedures by which PRI / Nadcap Staff operates. Roles and responsibilities for Nadcap Auditors, and clarifications to facilitate and standardize the audit process. Auditor Handbook

EVERY STEP IS MANAGED BY INDUSTRY AUDIT CHECKLIST PROCESS EVALUTION/ IMPROVEMENT AUDITOR QUALIFICATION & SELECTION INDUSTRY EXPERTS MANAGE ALL KEY STEPS CORRECTIVE ACTIONS AS REQUIRED AUDIT CONDUCTED AUDIT RESULTS

INDUSTRY-MANAGED ACTIVE CUSTOMER AUDITS On Site Audits Actual results

AGENDA • Introducing Nadcap • Why Nadcap • How do I get started? • Audit Preparation Tips • The End of the Audit • What Now?

WHY Nadcap? • The Customer Perspective • Achieve greater consistency across the supplychain and throughout the industry.

Nadcap Subscribers • Honeywell Aerospace • Israel Aircraft Industries • Latecoere • Liebherr-Aerospace SAS • Lockheed Martin Corporation • MTU Aero Engines GmbH • Northrop Grumman Corporation • Parker Aerospace Group • Raytheon Company • Rockwell Collins, Inc. • Rolls-Royce • SAFRAN Group • Sonaca • Spirit AeroSystems • Textron Inc. • Bell Helicopter • Cessna Aircraft Company • Textron Systems • Thales • Triumph Group Inc. • United Technologies Corporation • Goodrich (UTAS) • Hamilton Sundstrand (UTAS) • Pratt & Whitney • Pratt & Whitney Canada • Sikorsky Aircraft • 309th Maintenance Wing-Hill AFB • AgustaWestland • Alenia Aeronautica SpA • BAE Systems – Military Air Solutions (MAS) • BAE Systems • Ball Aerospace & Technology Corporation • Beechcraft Corporation • The Boeing Company • Bombardier Inc. • COMAC • Defense Contract Management Agency (DCMA) • EADS Corporation • Airbus • Airbus Military • Eurocopter • Astrium • Cassidian • Aerolia • Premium Aerotech • Eaton Aerospace • Embraer • GE Aviation • General Dynamics • GKN Aerospace • GKN Aerospace Sweden AB • Heroux Devtek Inc. (Landing Gear Division)

WHY Nadcap? • The Supplier Perspective • Because my customer said so!

THE REAL REASON • Quality Improvements • An increasing percentage of Nadcap accredited companies report quality improvement in the area(s) related to their Nadcap accreditation(s) 85% 83% 77% 76% 25%

OBTAIN AND READ THE PRIMARY DOCUMENTS Audit Checklist AC7XXX Audit Criteria + Job Audits You will be audited using this checklist: get it from eAuditNet Industry Standards & Customer Requirements Audit Handbook Audit Handbook Clarifies the checklist & customer requirements: get it from eAuditNet

THE Nadcap AUDIT PROCESS Subscriber Action Supplier Action PRI Action Accreditation Mandated by Nadcap Prime Subscriber Supplier Requests Audit Audit Scheduled & Auditor Assigned Audit Performed – Auditor Submits Report Re-accreditation Process Supplier Review Certificate Issued to Supplier Task Group Review PRI Technical Staff Review

SCHEDULE THE AUDIT • Complete a preliminary questionnaire and return it to PRI Scheduling Staff • PRI Scheduling Staff will send you a quote for the audit cost and duration • Schedule the audit using eAuditNet(and help from PRI Scheduling if needed) for a time that suits you (and meets your customers expectations)

DO SOME RESEARCH, GO TO www.eAuditNet.com eAuditNet Tutorial immediately after this session 1. • Register as a new user (limited access) • Contact PRI for full access (email eAuditNetSupport@sae.org)

IMPORTANT! AUDIT SCHEDULING • Schedule the audit when you are processing real parts from an aerospace customer • The auditor wants to see job audits (a step-by-step review of all processing on actual hardware to evaluate how you meet customer requirements) • Tell PRI in advance if you will not have real parts for the Nadcap audit

READ THE PROCEDURES Available on eAuditNet • NIP 7-02 Audit Process • NIP 7-04 Post-Audit Process • NIP 7-07 Export controlled Materials & Information • NOP-008 Supplier Merit Program • NOP-011 Audit Failure Process Why does this matter? The procedures provide guidance on key aspects of the process including: • Response timeframes • How to reduce audit frequency from 12 to 24 months • How NOT to fail the audit and what happens if you do

UNDERSTAND THE NCR CLASSIFICATIONS Major Non-conformance: • The absence of, or systemic breakdown of, the process control and/or quality management system OR • Any non-conformance where the effect impacts or has the potential to impact the integrity of the product. Minor Non-conformance: • Any single system failure or lapse in conformance with the applicable standard or audit criteria

CHECK YOUR QUALITY SYSTEM APPROVAL Nadcap recognizes: • AS / EN / JISQ 9100 and AS9003 • From a registrar listed in the lAQG OASIS database • Substitute: AC7004 • lSO/ lEC 17025 • For testing laboratories • From a NACLA/lLAC approved accreditation body • Substitute: AC7006

EVIDENCE YOUR QUALITY SYSTEM APPROVAL For initial audits: • Provide a copy to PRI Scheduling when you schedule your Nadcap audit • If you don’t have this, AC7004 / AC7006 will be added to the scope For reaccreditation audits • Provide a copy up to 60 days after the audit end date OR • Schedule AC7004 / AC7006 at least 90 days before the audit start date (if you know you won’t comply with option 1)

PERFORM A SELF AUDIT! Use the Nadcap checklist • Be strict with yourself • For each question, record: • Where in your system you meet the requirement • Where you have objective evidence of compliance

USE THE SELF AUDIT RESULTS TO IMPROVE YOUR OPERATIONS • If you cannot list where in your system you have documentation and what you will show the auditor the answer is NO! • Fix all ‘No’s with Root Cause Corrective Action before the Nadcap auditor arrives

AT THE END OF THE AUDIT Meet with the auditor each day for a review so there are no surprises • Meet the auditor to review the report including any non-conformances (NCRs) • Ensure all NCRs are understood: this is what you are responding to. If it’s not clear to you, will the Staff Engineer / Task Group understand? • Invite the right people including top management • Raise any issues or problems

AFTER THE AUDITOR LEAVES • Provide feedback about the audit on eAuditNet • Appeal an NCR, Staff Engineer decision or Task Group decision if you are not happy – Contact the Staff Engineer for information • Contact PRI Management if you’re not satisfied Meet wih each day for a review so there are no surprises Scott Klavon Director Nadcap program and Aerospace Operations +1-724-772-7111 scott@sae.org

RESPOND TO ALL NON-CONFORMANCES Provide the following in your answer: • Immediate Corrective Action Taken (Containment) • Root Cause of Non-conformance • Impact of all Identified Causes and the Root Cause • Action Taken to Prevent Recurrence • Objective Evidence Attached

RESPONSE DUE DATES • Initial responses: 21 calendar days • Subsequent responses: 7 calendar days • Important note: This is the time to respond to the NCRs, not necessarily to fix them • No extensions can be granted BUT • 30 extra days are allocated in case more time is needed • Be aware: using extra days may affect merit and using more than 30 extra days may result in audit failure

NEED MORE HELP WITH RCCA? • www.eAuditNet.com A link to Response Requirements is on the page with the NCR • www.eQuaLearn.com Root Cause Corrective Action training class • www.pri-network.org Free whitepaper called Root Cause Corrective Action – Nadcap Style (in the News section)

FREE TRAINING AT Nadcap MEETINGS • Throughout 2014, PRI is offering free eQuaLearn training classes at Nadcap meetings. • Due to the popularity of these sessions, places are allocated on a first-come, first-serve basis. • To date, topics have included: • Root Cause Corrective Action • Introduction to Pyrometry • How to Prepare for a Nadcap Audit • Internal Auditing • Learn more and register at www.eQuaLearn.com.

AGENDA • Introducing Nadcap • Why Nadcap? • How do I get started? • Audit Preparation Tips • The End of the Audit • What now?

REMEMBER THE KEY POINTS • Do your research • Be prepared • Perform a self-audit • Understand Root Cause Corrective Action • Ask for help if you need it!

MAKE CONTACT • PRI Scheduling Staff To arrange your audit • Nadcap Staff Engineers For guidance on checklist interpretation • Supplier Support Committee To get involved, request a mentor, etc • eQuaLearn For training on RCCA etc

GO ONLINE • www.pri-network.org - PRI company website • www.eAuditNet.com - Nadcap audit specific website • www.eQuaLearn.com - PRI training opportunities

ANY QUESTIONS? To receive a copy of this presentation, email NadcapSSC@sae.org Thank you for your participation Please ask questions and give feedback on this tutorial

PURPOSE OF THIS SESSION