Supplier Introduction Tutorial 26 February 2008 David Michaud Supplier SSC LT Chair

1. Supplier Introduction & Tutorial 26 February 2008David MichaudSupplier SSC LT Chair

2. First Time Mtg Attendees Introduce yourself, tell us… Your Name Company Name What commodity(ies) will be audited

3. Orientation Agenda Introduction to Nadcap Basic Tools and Advice How to Prepare for your Audit What to Expect During the Audit Important Post Audit Information Additional Information

4. Welcome to Nadcap The leading, worldwide cooperative program of major companies designed to manage a cost effective consensus approach to special processes and products and provide continual improvement within the aerospace industry. Nadcap is an industry managed program.

8. Task Groups for each special process, comprised of experts from all participating primes, oversee all key elements of the Nadcap audits. Effectiveness of corrective actions must be demonstrated before Nadcap certificate is issued by PRI. Task Groups for each special process, comprised of experts from all participating primes, oversee all key elements of the Nadcap audits. Effectiveness of corrective actions must be demonstrated before Nadcap certificate is issued by PRI.

9. PRI/Nadcap Organizational Structure

10. Industry-Managed Active Customer Audits/Certs

12. Orientation AgendaSection II Introduction to Nadcap Basic Tools and Advice How to Prepare for your Audit What to Expect During the Audit Important Post Audit Information Additional Information

13. Primary Documents

14. eAuditNet & PRI Website www.eAuditNet.com Public Documents eAuditNet Supplier Guide & Pre & Post-Audit Tutorials Audit Handbooks Miscellaneous documents (Auditor training, Pyrometry, etc.) User Documents Checklists www.pri-network.org Nadcap, Supplier Info SSC page – contact details, mentoring and more PRI/Nadcap from a Supplier Perspective Root Cause Corrective Action Tools/Training materials and dates Check both sites often – updates made frequently

18. Nadcap Procedure Hierarchy

19. NIP 7-04 Accreditation Term Your term of accreditation begins in conjunction with your audit date, not the issue date of your certificate. Accreditation terms are tied to the Nadcap quarterly cycles. Reference NIP 7-04 on www.eauditnet.com under User Documents

20. NIP 7-07 Export Controlled* Materials and Information Jan 16, 2008 The US government has determined that certain products, processes and technical information must be controlled. The documents which control this are: ITAR – International Traffic in Arms Regulation EAR – Export Administration Regulations Exports can occur by seeing or discussing controlled material in addition to obtaining copies of the material

21. NIP 7-07 Export Controlled Materials & Information The Nadcap process uses both Unrestricted and Restricted personnel (auditors and Staff Engineers) on Nadcap audits. Unrestricted personnel are US citizens & green card holders & are allowed access to Export Controlled materials. Restricted personnel are non US citizens or green card holders & are not allowed access to Export Controlled materials. Suppliers must know the status of the PRI personnel & keep any Export Controlled material away from Restricted personnel Auditor status can be found in eAuditNet next to auditors name for assigned audit Best way to determine the rest of PRI Staff status is to ask them

22. Determine whether you have material which is protected under ITAR/EAR. Contact your customers to be certain. If you have product, information or any other material(s) protected under ITAR/EAR, you must indicate such by answering “YES” to the ITAR/EAR question after accepting the supplier agreement when the audit is scheduled. This alerts PRI Scheduling as to whether ITAR/EAR controlled work exists – and guides the assignment of the auditor. Supplier Responsibilities

23. Supplier Responsibilities (Con’t) Work with PRI Scheduling - if you have ITAR controlled material they will attempt to schedule an unrestricted auditor (one who can look at ITAR controlled material). If an unrestricted auditor cannot be scheduled, a Restricted auditor may be assigned. Scheduling Staff will contact the supplier to determine if sufficient non-Export Controlled work will be available. If it is, a Restricted auditor can be assigned. The supplier must ensure that only non ITAR work is presented to the Restricted auditor for the audit. Screen all documents for ITAR controlled requirement before presenting to auditor *NOTE: if ITAR/EAR information is sent to an Unrestricted auditors as part of the pre-audit paperwork, it must be recovered by the supplier after the audit.

24. Supplier Responsibilities (Con’t) General information on Export Control can be found in eAuditNet (Public Documents) and on the Supplier page of the Nadcap website (www.pri-network.org) Suppliers cannot post or reveal any technical details on EC parts in response to any findings in eAuditNet. At Nadcap meetings ensure that no information is discussed or presented to anyone which is Export Controlled. Contact your prime customer if you have any question about the status of information as to Export Control.

25. Supplier Merit (NOP-008) Accreditation term for initial audits is 12 months. Suppliers with superior performance will be eligible for longer terms – 18 months or 24 months Merit is based on performance in two consecutive audits for most task groups. Eligibility is contingent on no Product Impact findings and no adverse Supplier Advisories Each Task Group has specific criteria. Refer to the NTGOP Appendices, available on www.eAuditNet.com under User Documents

26. Failure Policy (NOP-011) Suppliers can fail an audit for: Supplier stops the audit Excessive number of findings Severity of findings Too many corrective action response review cycles to close Nonresponsiveness The above criteria are not automatic failure points – the Task Group votes and makes the final decision Only 4% of all audits conducted in 2007 resulted in failure – the majority were due to Nonresponsiveness Specific criteria determined by Task Group – refer to NOP-011,User Documents, www.eauditnet.com

27. Orientation AgendaSection III Introduction to Nadcap Basic Tools and Advice How to Prepare for your Audit What to Expect During the Audit Important Post Audit Information Additional Information

28. Initial Steps

29. Pre-Assessment Audit You can schedule a pre-assessment audit using a Nadcap auditor BEFORE your actual Nadcap audit. Three types; procedural review, complete documentation review, full scope audit. All the data from the audit will be left with you. No need to close out findings with Nadcap. If there is a finding which clearly may affect or has affected product, it will be sent to the Primes. Contact PRI Scheduling and refer to NIP 7-06 for more information.

30. A Nadcap Audit is . . . The most thorough and comprehensive audit you probably have ever had. Conducted by experts in the field with technical special process knowledge and background.

31. Quality System Approval Before you can receive a Nadcap special process accreditation, your quality system must be approved: Nadcap recognized quality systems approvals: AS9003 and AS/EN/JISQ 9100 quality system approvals performed by approved registrars - listed in the IAQG Oasis database. (www.iaqg.org/oasis). Product groups require AS9100. ISO/IEC 17025 for testing laboratories (AC7101), must cover the Nadcap scope of accreditation and be from an approved NACLA/ILAC accreditation body. If you have neither of these, you will need a Nadcap AQS audit to AC7004 or AC7006 (labs) to support the special process accreditation. Refer to NOP-002 in www.eAuditNet.com.

32. Quality System Approval (Cont’d)

33. Self Audit Perform a thorough and complete self-audit using the Nadcap checklist. Record for each question, where in your system you meet the requirement Record for each question, where you have objective evidence of compliance If you can not list where in your system you have documentation and what you will show the auditor – the answer is No! Fix all “No’s” with complete root cause corrective action prior to audit.

34. Additional tools Use the tools on www.eauditnet.com Tutorials Audit Handbooks Checklists Contact your customers to verify your audit scope Read the preparation instructions for your commodity. You must send certain documents (quality manual, procedures, etc.) to your auditor AT LEAST 30 days prior to your audit. Familiarize yourself with www.pri-network.org and the tools available. Courses such as NCSI, RCCA, etc. Nadcap meetings information Keep your management informed Time spent on preparation will save even more time after the audit.

35. Job Audit

36. Job Audit (Cont’d)

37. Supplier Mentoring SSC has established a mentoring program for suppliers The program matches suppliers who need assistance with experienced suppliers who can help them succeed in the Nadcap process Goal – educate supplier base & reduce cycle time Go to www.pri-network.org – SSC page for more information. To request a mentor, send an email to NadcapSSC@sae.org

38. PRI Staff Engineer The PRI Task Group Staff Engineer has commodity specific knowledge and expertise. The Staff Engineers review and approve all specified audits. Staff Engineers have years of audit review experience – use their expertise before and after your audit

39. Staff Engineer Advice Do not rely on your customer to have found everything in the specification. It is your responsibility to ensure that you meet all requirements. The auditor will check for complete compliance and ensure compliance flows throughout your documents.

40. More Staff Engineer Advice If there is a conflict between the checklist and your customer requirement, pick the most stringent. Multiple customer requirements require a more robust system. The specification is the requirement. Procedures must meet all requirements in the specification. All process requirements must: Be Documented Be Complied with Have objective evidence of compliance.

41. Still More Staff Engineer Advice Ask questions early regarding interpretations. Typical problem areas: NDT – Exams (Level III) HT - Pyrometry CP – Periodic testing

42. Orientation AgendaSection IV Introduction to Nadcap Basic Tools and Advice How to Prepare for your Audit What to Expect During the Audit Important Post Audit Information Additional Information

43. Scope Verification Audit In-briefing: Sets the stage for the audit. Supplier & auditor will verify the scope of the audit. This requires access to the internet for auditor to conduct a sign-off process in eAuditNet. Any changes or corrections to the scope must be made before the audit starts. After the audit is conducted, no changes can be made to the scope of your accreditation.

44. Daily Briefings At the end of each audit day, the auditor will conduct a daily briefing. Meeting is designed to review any findings from that day and to ensure all findings are understood. Make certain that you have proper supplier personnel attend this meeting. Raise any issues or problems that arose during the audit.

45. NCR Classifications Major Nonconformance: 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 Nonconformance: Any single system failure or lapse in conformance with the applicable standard or audit criteria. Refer to PRI Quality Manual available in the User Documents section of www.eauditnet.com.

46. Outbriefing Meeting Schedule top management to attend. Make certain that you understand all NCRs as written – ask questions if you do not understand – make sure the finding will be clear to the Staff Engineer and Task Group. Review the process requirements and expectations before the auditor leaves.

47. Orientation AgendaSection V Introduction to Nadcap Basic Tools and Advice How to Prepare for your Audit What to Expect During the Audit Important Post Audit Information Additional Information

48. After the Auditor Leaves We value your feedback – Nadcap is a cooperative program When you submit your NCR responses you will be prompted to complete an online questionnaire If you require a response, or have a complaint, please submit it in writing, separately from the questionnaire There is an appeals process for NCR’s, Staff Engineer decisions, and Task Group decisions Contact the Staff Engineer for more information

49. Corrective Action Response Submittals Reply to your Non-conformances in the Supplier Discussion for each NCR. Immediate Corrective Action Taken (Containment Actions) Root Cause of Nonconformance Impact of all Identified Causes and the Root Cause Action Taken to Prevent Recurrence Objective Evidence Attached Must be included for ALL findings for Initial audits AND Reaccreditation audits. You may submit evidence by uploading attachments or via U-fax, refer to the eAuditNet Supplier Guide for help. IMPORTANT: if a procedure is changed, clearly specify what the change was. Change or create a procedure, implement a new system or method, perform training / awareness, propose audits, new checklists, etc? SHOW IT.

50. NCR Responses Responses are due 21 calendar days from the close of the audit Submit in eAuditNet Submit in accordance with Requirements for Corrective Action Response Requirements (eAuditNet Supplier Guide and www.pri-network.org) For completeness of the audit report, additional information or clarifications may be requested by the Staff Engineer. Responses must be submitted through the Observation Forum on www.eauditnet.com

51. Response Due Dates Initial responses are due in 21 days, subsequent responses are due in 7 days. Any responses sent outside of these requirements will be considered late. No extensions can be granted. Suppliers are given 45 days of cumulative lateness. If you must be late, you can use up to 45 days to respond. This is not to be considered extra time, this is late time that suppliers can use for issues that prevent them from responding according to the requirements (plant shutdowns, holidays, etc.) The total number of days past due will be visible in eAuditNet and reminders will be sent when the audit is 15 and 30 days past due At 45 days past due, the audit will be balloted for failure.

52. RCCA help Help available: www.eauditnet.com A link to Response Requirements is attached to the NCR’s Also: www.pri-network.org -Nadcap page -Supplier Info – Post Audit Assistance -Supplier Training – additional tools

55. Supplier Advisory/Early Review If a potential product impact or failure issue is identified all User members will receive an early review notice to look at the audit results. If deemed necessary, a Supplier Advisory will be issued. An advisory is a formal way of communicating concerns regarding documented possible product impact, changes in key personnel, quality systems, equipment, etc. to Nadcap Subscribing Prime Members. Four levels; Preliminary, Potential Product Impact, Safety Alert, Audit Failure, plus one informational.

56. Supplier Advisory/Early Review (Cont’d) Suppliers are encouraged to provide their own comments as part of the advisory (within 5 working days). Before closing the advisory, all other accreditations will be reviewed to determine if the identified issue is systemic and affects other accreditations/ registrations. If the issue is widespread, revocation of current accreditation (if one exists) and other commodity/quality certificates could occur. Refer to NOP-006 for more information.

57. NCR Review NCR responses may be sent back: By the Staff Engineer Based on history and experience with Task Group History with similar findings/responses By the Task Group Each Request for additional information: Delays your Accreditation Adds to cycle time

58. If Your Response is Not Accepted You have 7 days to respond to the Staff Engineer If the Staff Engineer details specific requests Review and comply with the entire request. Your response will not be accepted until all items are addressed. In the event of a generic rejection, i.e., “Readdress Root Cause” Review the Requirements for Submittal of Corrective Action Responses and comply NOTE: use e-mail/phone to work out an acceptable response – do not ask questions in eAuditNet - each reply counts as an additional cycle

59. Common Findings Job Audits Customer flowdown Lack of shop discipline – inform your personnel! Lack of documentation/Objective evidence Data transfers Processes requiring approvals not approved (i.e., NDT Techniques or other frozen process) Specification compliance (i.e., frozen process doesn’t meet specification, AMS 2750 compliance, etc.) Parts cleaning not in accordance with requirements Testing including periodic

62. Orientation AgendaSection VI Introduction to Nadcap Basic Tools and Advice How to Prepare for your Audit What to Expect During the Audit Important Post Audit Information Additional Information

63. eAuditNet Information Keep your email address current to ensure you receive important emails related to your audit. If there is a change in your contact information, inform PRI. Do not reply to automated emails received from eAuditNet – there are contacts listed in the email. For eAuditNet Support, refer to the Public Documents section for User Guides or contact the Help Desk at +1 724 772 1616 x8679 or via email at eauditnetsupport@sae.org.

64. Supplier Support Committee (SSC)

65. Supplier Support Committee Mission Statement Our goal is to represent the supplier community and work with the Nadcap Management Council to enhance the effectiveness and economical value of the Nadcap system for the mutual benefit of suppliers and primes.

66. Operates independent of the Task Groups. SSC Focus is on overall issues common to suppliers NOT technical or Task Group specific. SSC Systemic Focus

67. SSC Organization SSC LT is comprised of: SSC Chair SSC Vice Chair 2 representatives from each Sector Secretary Standing Committees: Communications & Mentoring Metrics Survey Task Group Reps to SSC

68. Slide 68 Supplier Support Committee Leadership Team (SSC LT) David Michaud, Chairperson -Fountain Plating Co Jim Cummings, Vice Chairperson -Metal Finishing Co Derek Alty, Europe Sector Rep -Bodycote Heat Treatments Ltd Bob Custer, Americas Sector Rep -AAA Plating & Inspection Inc Industry representatives set the strategic direction for all Nadcap initiatives.Industry representatives set the strategic direction for all Nadcap initiatives.

69. SSC Activities Supplier survey Communiqué Flyer participation - newsletter to Nadcap participants SSC Metrics Mentoring program

70. Nadcap Meeting Information Available at www.pri-network.org Minutes & Agendas Keep up with Task Group activities Participate in Task Group decisions Plan to attend Open Meeting – Suppliers are always welcome Attend the Supplier Support Committee (SSC) meeting

73. Supplier Support Committee Meeting Your participation is needed! Today – 26 February 2008 4:00pm-6:00pm eAuditNet Training for Suppliers Today, following this session

74. Meetings in 2008 Nadcap meetings will now be three times per year. 21-25 July 2008 Pittsburgh, PA, US 6-10 October 2008 Yokohama, Japan Additional details can be found in the Nadcap Meeting Attendees Guide

75. Our Web Addresses www.pri-network.org www.eauditnet.com

76. Questions? Any Questions?