Nadcap Subscriber Tutorial

1. Nadcap Subscriber Tutorial Jon Steffey Program Manager Informatics Solutions, Research, and Development 28 Feb 2011

3. Definitions PRI: Performance Review Institute is a not-for-profit affiliate of SAE whose mission is to: Provide global, unbiased, independent manufacturing process and product assessments and certification services to the mobility industry for the purpose of adding value, reducing total cost, and facilitating teaming between primes & suppliers. PRI administers Nadcap. Nadcap: The leading worldwide cooperative program of major companies designed to manage a cost effective consensus approach to special processes and products and provide continuous improvement within the aerospace and automotive industries. Special Processes: are those processes where the parameters are directly influenced by component geometry and/or the results cannot be confirmed by inspection, e.g., NDT, Plating, Heat Treating. Products: are the manufacturing output of the combination of distinct materials, parts and/or processes which forms a whole, e.g., Composites, Elastomer Seals, Electronics. eAuditNet: Audit software used to document audit results, attachments, letters, notes, schedules audits, supplier advisories, etc. with the ability to produce reports based on multiple criteria.

4. Performance Review Institute’s (PRI’s) History November 1985: Government/Industry Equal Partners Conference recommends consensus solution to duplication of supplier quality assurance systems. July 1990: PRI incorporated as a Not-For-Profit Trade Association. Launch Nadcap for Aerospace July 2000: Roll-out of Nadcap Europe November 2002: Full Launch of eAuditNet October 2003: Roll-out of Nadcap Asia April 2008: Roll-out of eQuaLearn May 2009: Full Launch of eAuditNet 2.0

5. Key References for New Attendees Nadcap Subscriber Tutorial Attendees Guide Antitrust (page 7) Nadcap Personal Code of Ethics and Conflict of Interest (page 7) PRI Website: www.pri-network.org eAuditNet Guides: www.eAuditNet.com

6. Suggestions for New Attendees Attend Task Group Prime Tutorial mini-orientation at the beginning of each meeting. Introduce yourself to the Task Group Chair and Staff Engineer. Become active in your Task Group; your comments are very important. Provide your feedback from the meeting through the on-line survey.

7. Membership Responsibilities Subscriber members are required to attend Nadcap meetings. If the member is unable to attend, an alternate shall be designated. Reply to surveys, questionnaires and ballots that are circulated to members. Carry through sponsorship and coordination of individual projects as assigned. Prepare checklists for auditing and continuing surveillance. Review resumes and interview auditors. Review audit reports. Comply with the Nadcap Personal Code of Ethics and Conflict of Interest Policy as defined in AS7003. Safeguard the confidentiality of information that you're exposed to through the Nadcap program.

8. Nadcap Members 309th Maintenance Wing-Hill AFB AgustaWestland Air Force Alenia Aeronautica SpA Avio SpA BAE Systems – Military Air Solutions (MAS) BAE Systems Ball Aerospace & Technology Corporation The Boeing Company Bombardier Inc. Defense Contract Management Agency (DCMA) EADS Corporation Airbus Airbus Military Eurocopter Astrium Cassidian Aerolia Premium Aerotech GE Aviation General Dynamics General Services Administration (GSA) Goodrich Corporation Hawker Beechcraft Corporation Heroux Devtek Inc. (Landing Gear Division) Honeywell Aerospace Israel Aircraft Industries Latecoere Liebherr-Aerospace SAS Lockheed Martin Corporation M7 Aerospace LP MTU Aero Engines GmbH Northrop Grumman Corporation Parker Aerospace Group Raytheon Company Rockwell Collins, Inc. Rolls-Royce Corporation Rolls-Royce PLC SAFRAN Group Sonaca Spirit AeroSystems Textron Inc. Bell Helicopter Cessna Aircraft Company Textron Systems Thales Triumph Group Inc. United Technologies Corporation Hamilton Sundstrand Pratt & Whitney Pratt & Whitney Canada Sikorsky Aircraft United Space Alliance Volvo Aero

9. Timeline of Primes

13. Industry-Managed Active Customer Audits/Certs.

14. Status Report - Supplier Audits

16. Nadcap Programs Special Processes Nondestructive Testing (NDT) Materials Testing (MTL) Heat Treating (HT) Coatings (CT) Chemical Processing (CP) Welding (WLD) Nonconventional Machining & Surface Enhancement (NMSE) Non Metallic Materials Testing (NMM) Conventional Machining as a Special Process (CMSP) Systems & Products Aerospace Quality Systems (AQS) : AC7004 Fluid Distribution Standards (FLU) Elastomer Seals (SEALS) Sealants (SLT) Composites (COMP) Electronics (ETG)

17. Agenda Nadcap Overview Organizational Structure of Nadcap Nadcap Process / eAuditNet

18. PRI/Nadcap Organizational Structure

19. 2010 Board of Directors Robert Briggs Manager Supply Chain Quality GE Aircraft Engines Wayne Brown Director, BCA Supplier Quality Boeing Scott A. Collinge Director, Business & General Aviation Customer Quality Honeywell David Handley (Chairman) Head of Quality BAE Systems (Operations) Limited Michael Hayward Sector Director of Enterprise Quality & Infrastructure Northrop Grumman Corp. Mario Langlois Aerospace Quality Director Bombardier Jean-Jacques Orsini Vice President Quality Snecma Andy Page Global Supplier Development Executive Rolls-Royce plc John Papadopoulos Director Quality & Continuous Improvement United Technologies Corporation David L. Schutt Chief Executive Officer SAE Junji Tsuji General Manager of Engineering Group Ishikawajima-Harima Heavy Industries Co. Bernard Veyssière Vice President Quality EADS Steve Wells VP Quality& Continuous Improvement Goodrich Yan Dong VP, Quality and Safety Department, AVIC Aviation Industry Corporation of China Relatively small group of peers from major OEMs and Primes who have ultimate responsibility for supplier quality.Relatively small group of peers from major OEMs and Primes who have ultimate responsibility for supplier quality.

20. PRI/Nadcap Organizational Structure

21. Current Nadcap Management Council (NMC) Rossella Andreozzi Alenia Aeronautica SpA Michael Bath DCMA Pascal Blondet , Vice Chairperson Airbus Richard Blyth Rolls-Royce Robert Bodemuller Ball Aerospace & Technology Corp. Christian Buck SAFRAN David Burger Rockwell Collins Robert Cashman Parker Aerospace Group Mark Cathey Spirit AeroSystems Astrid Colon-Tirado Lockheed Martin Chet Date Honeywell Aerospace Jim Diamond 309th Maintenance Wing – Hill AFB Peter Feind Liebherr-Aerospace Alan Fertig United Space Alliance John Haddock BAE Systems – MAS Martha Hogan-Battisti The Boeing Company Joseph Pinto, Secretary PRI Henry Johansson Volvo Aero Corporation Ralph Kropp MTU Aero Engines GmbH Eric LeFort Sonaca Frank Mariot Vought Aircraft Robin McGuckin Bombardier Aerospace Heather Meyer Cessna Aircraft Company Jay Park Northrop Grumman Michel Pierantoni Eurocopter Alberto Portal EADS – CASA Mark Rechtsteiner, Chairperson GE Aviation Victor Schonberger IAI Dave Soong Hamilton Sundstrand Industry representatives set the strategic direction for all Nadcap initiatives.Industry representatives set the strategic direction for all Nadcap initiatives.

22. PRI/Nadcap Organizational Structure

23. Agenda Nadcap Overview Organizational Structure of Nadcap Nadcap Process / eAuditNet

24. Nadcap Procedure Hierarchy

25. Key Procedures (located on eAuditNet, under Nadcap Procedures) NOP-001 : Nadcap Operating Procedure NOP-006 : Supplier Advisory Process NOP-008 : Supplier Merit Program NOP-011 : Audit Failure Process NTGOP-001 : Nadcap Task Group Operating Procedure

27. Audit Process PRI/Supplier Schedules the Audit using eAuditNet.com Nadcap Checklists and Preparation Instructions available Encouraged to review the Nadcap Customer Support Initiative (NCSI) presentation on eAuditNet Perform self-audit Auditor Conducts the Audit using the applicable Nadcap checklists (located on eAuditNet) Daily briefing & a final close out meeting at the end of the audit Auditor Prepares Cover Letter and attaches to audit report (uploaded into eAuditNet) Supplier has 21 calendar days to initially respond to any findings (7 calendar days for subsequent responses)

28. 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.

31. 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.

32. Auditor Selection/Interview/Performance Core and Technical Requirements are Established by Task Group Potential candidates complete a pre-screening questionnaire on eAuditStaff.com Interviewed by Task Group Testing/Certification (Optional) Training Audits Review of Training with Report from Lead Auditor Approval by Task Group Continual Monitoring through Audit Reviews Annual PRI/Nadcap Training

33. Auditors Critical to Nadcap Highly skilled technical background with average of 30 years experience in the Special process audited Unlike ISO or EN 9000 based audits, Nadcap auditors do not make the final decision Nadcap auditor goal is to evaluate and report the technical competency and compliance of the supplier

35. 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.

36. Nadcap Audit Content Quality Systems Special Process and Product Specific Requirements Compliance/Job Audits NDT: 3 Witnessed Compliance Jobs per Method and 3 “Paperwork” Completed Compliance Jobs per Method Heat Treating: 2 Long Jobs-8 Short Jobs Materials Lab: Witnessing of All Test Methods Chemical Processing: Minimum of 4 Job Audits Coatings: 2-11 Job Audits (Based on Scope) Welding: 2 Job Audits per Method Nonconventional Machining: 2-10 Job Audits Surface Enhancement: 2-6 Job Audits Composites: 15-30 Job Audits (Based on Manufacturing Flow) Electronics: Complete 1 Job Audit Conventional Machining: 2-14 Job Audits (Based on Scope)

38. 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.

40. Audit Review PRI Staff Review: Staff Reviews Package for Completeness Review Audit Report Clarification Changes (electronically) - Contact Auditors for Clarification Review Supplier Corrective Action Close-Out or request additional information via Forums Audit Report Package is submitted via eAuditNet for Task Group Review

42. eAuditNet for Subscriberswww.eAuditNet.com Subscribers can use eAuditNet to: Use ‘Subscriber QML’ to specifically search for your company’s suppliers Lookup audit details for a supplier including checklist details, nonconformance (NCR) details, and Supplier and Task Group NCR responses Lookup the current audit status of a supplier Download or print hard copy checklist(s) View new or existing Supplier Advisories View all Nadcap Procedures (NIPs, NOPs, NTGOPs) eAuditNet Company Administrator, you can use eAuditNet to: Create new eAuditNet users for your company Edit current eAuditNet users for your company Accept or reject eAuditNet users that select your company during registration Set-up company Users to receive weekly e-mails regarding your QML supplier audits that were submitted (Email Subscription Application) If you are a Task Group Member, you can use eAuditNet to: View and discuss supplier audit NCRs Ballot on supplier audit and merit recommendations An eAuditNet Subscriber’s Audit Review Guide and eAuditNet Company Administrator’s Guide can be downloaded from eAuditNet using Public Documents.

43. 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.

48. Next Nadcap Meeting(On-line registration available at www.pri-network.org) 20-24 June 2011 London, England, UK Reservation information will be posted on the PRI website (www.pri-network.org) when available.

49. Questions