Supplier Introduction

1
Supplier Introduction Tutorial 23 January
2007David MichaudSupplier SSC LT Chair
2
Your Turn, 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
• During the Audit
• After the Audit
• 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.

5
(No Transcript)
6
(No Transcript)
7
(No Transcript)
8
Industry Managed Process
Slide 8
Audit Checklist
Decision to establish Task Group
Auditor Qualification Selection
Accreditation Decisions
Audits Conducted Results
Corrective Actions As Required
Industry experts manage all key steps
9
PRI/Nadcap Organizational Structure

• Executive leaders
• Legal entity
• Fiduciary responsibility
• Set policy
• Provide the Vision

• Senior Quality Leaders
• Develop strategic plan and vision
• Promote Nadcap among prime contractors
• Support launch of new task groups
• Promote continuous improvement

Nadcap Executive Strategic Planning Board (NESPB)
Task Groups Special Processes Nondestructive
Testing Materials Testing Heat Treating Coatings C
hemical Processing Welding NCM/Shot
Peening Systems Products Distributors Sealants,
Elastomer Seals AQS (AC7004) Fluid Distribution
Systems Composites
Supplier Support Committee

• Technical Experts
• Determine requirements
• Develop documents
• Accept corrective action
• Final decision on accreditation

10
Nadcap continues to grow audits/active certs
Slide 10
11
Nadcap a key element in Primessurveillance
plans

• Example GE Aviation
• 50 of all the audits in the GE system are
  completed by Nadcap.

GE Audit Distribution
12
Nadcap eAuditNet Process
Suppliers
PRI Audit Scheduled
Auditor Assigned
Request Audit
Task Group Approval
Audit Completed
PRI Technical Staff Review
Issue Cert
13
Orientation AgendaSection II

• Introduction to Nadcap
• Basic Tools and Advice
• How to Prepare for your Audit
• During the Audit
• After the Audit
• Additional Information

14
Primary Documents

• The two most important documents you need are
  the
• Audit checklist
• Auditor handbook (if available)
• You will be audited to the checklist AC7XXX as
  developed by the Task Group. Secure both from
  www.eauditnet.com in advance of the audit

15
eAuditNet PRI Website

• www.eAuditNet.com
• Checklists
• Public Documents
• eAuditNet Supplier Guide Pre Post-Audit
  Tutorials
• Auditor Handbooks
• Miscellaneous documents (Auditor training,
  Pyrometry, etc.)
• User Documents
• www.pri-network.org
• Nadcap, Supplier Info
• PRI/Nadcap from a Supplier Perspective
• Root Cause Corrective Action Tools
• Check both sites often updates are made
  frequently

16
Slide 16
Nadcap
17
Slide 17
Supplier Page
Staff Contacts
eAuditNet
18
Slide 18
Checklists
User Documents
Public Documents
19
User Documents

• PRI/Nadcap Internal Procedures (NIPs) - Documents
  which detail specific procedures by which
  PRI/Nadcap Staff operates. Eg. Balloting Audit
  report processing Pre-Assessment Audits, etc.
• Nadcap Operating Procedures (NOPs) - Documents
  which detail the specific procedures by which
  Nadcap operates. Such as Audit Failure, Supplier
  Merit, Supplier Advisory, etc.
• Nadcap Task Group Operating Procedures (NTGOPs)
  Documents describing the scope and general
  operating procedures for each specific Task
  Group. For example, NDT, HT, etc.

20
NIP 7-04 Accreditation Term

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

21
NIP 7-07 ITAR/EAR

• 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

22
ITAR/EAR Supplier Responsibilities

• Determine whether you have material which is
  protected under ITAR/EAR.
• Contact your customers to be certain.
• If you have material protected under ITAR/EAR,
  you must request an unrestricted auditor (a US
  citizen or green card holder)
• Work with PRI Scheduling
• Details can be found in eAuditNet (Public
  Documents) and on the Supplier page of the Nadcap
  website

23
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.
• 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

24
Failure Policy (NOP-011)

• Suppliers can fail an audit for
• 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 2006 resulted
  in failure the majority were due to
  Nonresponsiveness
• Specific criteria determined by Task Group
  refer to
• NOP-011,User Documents, www.eauditnet.com

25
Orientation AgendaSection III

• Introduction to Nadcap
• Basic Tools and Advice
• How to Prepare for your Audit
• During the Audit
• After the Audit
• Additional Information

26
Initial Steps

• Register in eAuditNet.com
• Contact PRI Scheduling
• Complete a preliminary questionnaire and return
  to Scheduling
• Obtain length of audit and cost
• Obtain access to Nadcap checklists
• Schedule Audit
• Pre-Audit Preparation participate in NCSI!

27
Pre-Assessment Audit

• If you desire, you can get a pre-assessment audit
  using a Nadcap auditor BEFORE your actual Nadcap
  audit.
• Contact PRI Scheduling. All the data from the
  audit will be left with you. No need to close
  out any findings.
• The only findings which will be sent to Primes
  are findings which may potentially impact
  hardware.

28
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.

The more you prepare the greater success you
will have.
29
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.

30
Quality System Approval (Contd)

• To ensure Suppliers have an approved quality
  system, a new process was developed that affects
  all audits conducted AFTER 14 January 2007.
• 150 days prior to your special process audit,
  Suppliers will be sent an email to send in a
  valid QS certificate.
• 120 days prior to the audit Suppliers receive a
  second reminder to send in a valid QS certificate
• 90 days prior to the audit, if a QS certificate
  is not received, an AC7004 or AC7006 audit will
  be scheduled. For Seals, Sealants and Fluids,
  the special process audit will be cancelled.
• If AC7004/AC7006 audit is cancelled, Supplier
  will incur a 400.00 penalty.

31
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 Nos with complete root cause
  corrective action prior to audit.

32
Additional tools

• Use the tools on www.eauditnet.com
• Tutorials
• Auditor 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
• Keep your management informed

Do your Own Job Audits
33
Job Audit

• Job Audits a key part of the Nadcap audit is
  the job audit.
• A job audit is a step by step review of all
  processing on actual hardware evaluating how you
  meet all customer requirements.
• Each special process family have a numbers of job
  audits to be conducted with the special process
  checklist.

34
Job Audit (Contd)

• Schedule the Nadcap audit when you can
• perform as many of the job audits as
• possible.
• Work with PRI scheduling and your internal
  scheduling to ensure you will have jobs for the
  audit.
• You should have available a REAL part from a
  Nadcap
• aerospace Prime
• NOTE Each Task Group has specific requirements
  you MUST review the Audit Checklist for specific
  details and speak to the Staff Engineer if you
  can not provide a part from a Nadcap aerospace
  Prime.

35
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 and to request a mentor

36
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

37
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.

38
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.

39
Still More Staff Engineer Advice

• Ask questions early regarding interpretations.
• Typical problem areas
• NDT Exams (Level III)
• HT - Pyrometry
• CP Periodic testing

40
Orientation AgendaSection IV

• Introduction to Nadcap
• Basic Tools and Advice
• How to Prepare for your Audit
• During the Audit
• After the Audit
• Additional Information

41
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 in scope must be made
  before the audit starts.
• After the audit is conducted, no changes can be
  made to the scope of accreditation.

42
Daily Briefings

• At the end of each audit day, the auditor will
  conduct a daily briefing.
• Ensure that all findings are understood
• Ensure that proper supplier personnel are in
  attendance
• Raise any issues or problems that arose during
  the audit

43
NCR Classifications

• Major Nonconformance Any nonconformance that
  could
• affect Safety usability of a product, or
  Integrity of the quality system
• increase product cost
• affect the ability to meet the customers
  requirements.
• Examples incorrect process parameters, missing
  inspections or processing steps, failure to
  record required data, missed or out of tolerance
  calibration result from failure to implement a
  corrective action from the previous audit.
• Minor Nonconformance Any non-systemic, isolated
  nonconformance that does not, do any of the
  above.
• Examples paperwork oversights, minor changes to
  procedures for clarification.
• Observation Auditors informational comments
  based on an assessment of a Special process or
  quality system.
• At October Nadcap meeting, the NMC voted to
  slightly revise these definitions. PRI will be
  revising procedures, and suppliers will be
  notified when the changes are implemented.
• Definitions found in PRI/Nadcap Quality Manual
  page 27 or 31.

44
Additional Help

• If there is a dispute or disagreement on a
  finding during the audit contact the Staff
  Engineer right away.
• There is an appeals process, but it is better to
  get these issues resolved right away before the
  audit is completed.

45
Exit Meeting

• Schedule top management to attend
• Make certain that you understand all NCRs as
  written ask questions if you do not understand
  make sure it will be clear to Staff Engineer
• Review the process requirements and expectations
  before the auditor leaves

46
Orientation AgendaSection V

• Introduction to Nadcap
• Basic Tools and Advice
• How to Prepare for your Audit
• During the Audit
• After the Audit
• Additional Information

47
After the Auditor Leaves

• You must provide feedback on the audit and
  auditor
• We value your feedback Nadcap is a cooperative
  program
• When you submit your NCR responses you will be
  required to complete an online questionnaire
• Complaints must be submitted in writing and will
  be addressed independently of the audit review
  process
• There is an appeals process for NCRs, Staff
  Engineer decisions, and Task Group decisions
• Contact the Staff Engineer for more information

48
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!
• 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.

Suggestion if it is not required (ex. Minor
finding on a reaccreditation audit), it is
strongly recommended that you send objective
evidence if it will assist the Staff Engineer
with understanding your response. This could
prevent an additional review cycle.
49
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

50
Response Due Dates - NEW!

• 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 now 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 to both
  suppliers and prime contractors when the audit is
  15 and 30 days past due
• At 45 days past due, the audit will be balloted
  for failure.

51
RCCA help

• Help available
• www.eauditnet.com
• A link to Response Requirements is attached to
  the
• NCRs
• Also www.pri-network.org
• -Nadcap page
• -Supplier Info Post Audit Assistance
• -Supplier Training additional tools

52
Slide 52
53
Slide 53
54
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.

55
Supplier Advisory/Early Review (Contd)

• 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.

56
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

57
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
  detailed 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 with
  specific requirements for format and analysis
• NOTE use e-mail/phone to work out an acceptable
  response do not use eAuditnet reply - each
  reply counts as an additional cycle

58
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
  doesnt meet specification or AMS 2750
  compliance)
• Parts cleaning not in accordance with
  requirements
• Testing including periodic

59
Orientation AgendaSection VI

• Introduction to Nadcap
• Basic Tools and Advice
• How to Prepare for your Audit
• During the Audit
• After the Audit
• Additional Information

60
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 the PRI Scheduling Department.
• 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_at_sae.org

61
Supplier Support Committee (SSC)

• SSC Position in Nadcap
• The SSC is an integral part of the Nadcap process
• Established in NOP 001 just like the Nadcap
  Task Groups
• SSC Chair is a voting member on NMC
• Full support from PRI Staff

62
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.

63
SSC Systemic Focus

• Operates independent of the Task Groups focus
  on overall issues common to suppliers not
  technical or Task Group specific

64
SSC Organization

• SSC LT Comprised of
• SSC Chair
• 2 representatives from each Sector
• Secretary
• Standing Committees
• Communications Mentoring
• Metrics
• Survey
• Task Group Reps to SSC

65
Supplier Support Committee Leadership Team (SSC
LT)

• David Michaud, Chairperson
• -Fountain Plating Co
• Derek Alty, Europe Sector Rep
• -Bodycote Heat Treatments Ltd
• Jim Cummings, Americas Sector Rep
• -Metal Finishing Co
• Bob Custer, Americas Sector Rep
• -AAA Plating Inspection Inc

• Yoshiomi Sukesada, Asia Sector Rep
• -Asahi Kinzoku Kogyo Co. Ltd
• Stu Sherman, Secretary
• -Metallurgical Processing Inc
• Louis Tseng, Asia Sector Rep
• -Aerospace Industrial Development
• Corporation (AIDC)

Currently one open position Europe Sector Rep
66
SSC Activities

• Supplier survey next one is April 2007
• Communiqué Flyer - newsletter to Nadcap
  participants
• SSC Metrics
• Mentoring program
• The SSC needs volunteers to serve on teams and
  participate in all activities to ensure the
  supplier voice is heard.

67
SSC Conclusion

• The SSC is one of the best ways that suppliers
  can influence the Nadcap process
• Get involved!
• See any SSC Leadership Team member if you want to
  help.

68
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
• Get involved Join the SSC!

69
Slide 69
Nadcap Meeting Information
70
Slide 70
Obtain Agendas and Registration for Upcoming
meetings
71
Important Meetings

• Supplier Support Committee Meeting
• Your participation is needed!
• Today January 23, 2007
• 500pm-630pm
• eAuditNet Training for Suppliers
• Today, following this session in this room
• 1000am-1100am

72
Upcoming Nadcap Meetings

• April 23-27, 2007
• Newport Bay Club
• Disneyland Resort Paris
• Marne-la-Vallee, 77777
• France
• Phone [phone]
• Rate 139 Euro Single
• Reservation deadline March 30, 2007
• July 16-20, 2007 Istanbul, Turkey
• Additional details in Attendees Guide

73
Our Web Addresses

• www.pri-network.org
• www.eauditnet.com

74
Questions?

• Any Questions?