WELCOME!

1. WELCOME! Americas Aerospace Quality Group AAQG Registration Management Committee RMC Auditor Training and Workshop Session Minneapolis, MN July 30-31, 2009 Value Added Aerospace Auditing

2. Paul Hardiman: SMMT Industry Forum • Qualified Mechanical Engineer • Work Experience in the automotive and aerospace supply chain • Experienced auditor: ISO 9001, QS-9000, and ISO/TS 16949 • Assisted organizations with implementing AS9100, ISO/TS16949 (or both)

3. IATF ISO/TS16949 Scheme Structure

4. Role of Oversight Certification Body applications Office Assessment Witness Audits IATF database management Provide Interpretations and Guidance on the application through the issuing of Sanctioned Interpretations (SI) and Frequently Asked Questions (FAQ). Monitor Certification Body Activities (including IATF OEM input) Qualify certification body auditors

5. Auditor Guide to ISO/TS16949 First Edition April 2009 Available for purchase www.smmt.co.uk (£15, $23)

6. Essential auditing criteria • Process Approach Demonstrates priority is given to questioning the organisation’s identification of processes, their sequence and interactions, and performance against the objectives / measures defined, with focus on the processes which directly impact the customer • Customer, regulatory, industry requirements Demonstrates that these requirements are integrated into a process based audit. Effectively audit the organisation’s process for gathering, communicating and implementing these requirements.

7. Essential auditing criteria • Prioritisation Demonstrates priority is given to questioning the process objectives and performance, and focus on issues that have the greatest impact on the customer • Focus on performance Identifies issues/trails around the organisation’s process for setting objectives/ targets, what plans are in place to ensure targets are met, and corrective action plans where objectives/targets are not being met

8. Essential auditing criteria • Knowledge/Application of AS9100, AS9110 and AS9120 requirements (and associated checklists) Demonstrates knowledge and application of the requirements within a process based audit • Analyse and Synthesize data Demonstrates the ability to collect and analyse data, and draw accurate conclusions based upon the data. Synthesize isolated but connected data in order to draw conclusions.

9. Workshop agenda Determining the audit scope and exclusions Identification of processes and their interactions Auditing of processes to verify effectiveness (and efficiency) Focusing on areas of significance Time Management Auditing Top Management Case study

10. Scope and exclusions Review case study The customer is paying for the tooling, and is also purchasing tooling from Alba Gear Inc to assist them in their assembly process What would be an appropriate scope for AS9100 registration? What would be permissible exclusions?

11. Conclusion: Scope and exclusions • Where any of the requirements cannot be applied due to the nature of the organization and its products, this can be considered for exclusion • Where exclusions are made, claims of conformity to this international standard are not acceptable unless these are limited to requirements with clause 7, and as such exclusions do not affect the organisation ability, or responsibility, to provide product that meets customer and applicable statutory and regulatory requirements

12. AS91000.2 Process Approach This International Standard promotes the adoption of a process approach when developing, implementing and improving the effectiveness of a quality management system, to enhance customer satisfaction by meeting customer requirements.

13. Continual Improvement of the Quality Management System Management responsibility Customers Customers Measurement, analysis and improvement Resource Management Satisfaction Input Output Product realization Requirements Product Value-adding activities Information flow

14. AS9100 4.1 General Requirements The organization shall determine the processes needed for the quality management system and their application throughout the organization (see 1.2), determine the sequence and interaction of these processes, determine criteria and methods needed to ensure that both the operation and control of these processes are effective,

15. AS9100 4.1 General Requirements The organization shall ensure the availability of resources and information necessary to support the operation and monitoring of these processes, monitor, measure where applicable, and analyse these processes, and implement actions necessary to achieve planned results and continual improvement of these processes.

16. Defining Processes A process exists as interrelated actions to meet a need It is a “set of interrelated or interacting activities which transforms inputs into outputs” Inputs to a process are generally outputs of other processes The individual or group of individuals that have a need are commonly referred to as the “customer” of that process A customer is an “organization or person that receives the … result of a process…”

17. Input Step 1 Step 2 Step 3 Step “N” Output INPUT Customer who has a need OUTPUT Customer who has a need met

18. GENERAL MANAGEMENT Remote Supporting Function PLANNING Department SHIPPING Department Design & Development SALES Department PRODUCTION Department Requirement Definition & Communicate prepare medium term plan Approve transporters Supply Visit prospective customers Negotiate supplier contract Risk -Determine & Communicate Methods Understand requirements Set up budget Customer receives product Manage stock input forecast sales organize planning operation Inspection Configuration Control Organize delivery negotiate contract plan capacities Manufacture V & V Approach Customer needs product Producibility manage orders Set up the production program Control delivery quality Operator maintenance Plan to audit interaction with support processes

19. Customer Orientated Processes Organization C U S T O M E R S C U S T O M E R S customer oriented process n° 1 customer oriented process n° 2 customer oriented process n° 3 customer oriented process n° n  Customer Orientated Process: Focus on meeting external customer needs

20. Identification of processes Brainstorm in your groups to identify 5 processes in a typical aerospace tier one supplier where there is interaction with an external customer Define inputs/outputs Is there a sequence in which the processes can be ordered? Discuss in your groups Feedback

21. RISK! Customer RISK! Customer O I O I O I Production planning Customer Customer Delivery O I Payment Product and Process Verification & Validation O I Organization Product and Customer Customer Warranty / Service Process Design O I Post Sales / Contract review Customer I O Feedback Customer Customer Market Analysis / O Bid / Tender I RISK! RISK! I O O I Customer Customer

22. Management Processes management processes C U S T O M E R S C U S T O M E R S customer oriented process n° 1 customer oriented process n° 2 customer oriented process n° 3 customer oriented process n° n  Management processes: they ensure continuous improvement of all processes by determining objectives, planning improvements to reach objectives, and analyzing and reviewing data. They interact with all other processes

23. C U S T O M E R S C U S T O M E R S customer oriented process n° 1 customer oriented process n° 2 customer oriented process n° 3 customer oriented process n° n  support processes Support processes: they allow the other processes to work by supplying the required resources, and contribute to risk control

24. management processes C U S T O M E R S C U S T O M E R S customer oriented process n° 1 customer oriented process n° 2 customer oriented process n° 3 customer oriented process n° n  support processes Management and Support Processes

25. M1 :Define and deploy the strategy C U S T O M E R S C U S T O M E R S C1 :Listen to the market and make a quote C2 : Design and development product/process C3 : Production and delivery C4 : Dealing with customer complaints S4 Manage computer systems S1 Manage suppliers S2 Manage skills S3 Manage equipment

26. The organization shall: monitor, measure where applicable, and analyze these processes, and f. implement actions necessary to achieve planned results and continual improvement of these processes. AS9100 4.1 General requirements AS9100 5.4.1 Quality objectives Top management shall ensure that quality objectives, including those needed to meet requirements for product are established at relevant functions and levels within the organization. The quality objectives shall be measurable and consistent with the quality policy

27. Process Performance Effectiveness= Extent to which planned activities are realized and planned results achieved Customer satisfaction Efficiency = Relationship between results achieved and the resources used Organization satisfaction Source: ISO9000: 2005

28. Business Plan OBJECTIVES POLICY IMPACT INFLUENCE Planning Competence awareness and training `

29. Top Management Process failed to meet specified objectives Problem causes concern in higher level process Shop floor Process performance measures met

30. Process Performance With your previously identified customer orientated processes, define possible measures of process effectiveness and efficiency an organization might use.

31. V cycle approach to auditing Strategy Decisions Policy Objectives Review information Top management Top management Resources Reporting Risk analysis Improvement Process owners Process owners Planning the activities Collect and analyse data Operations and recording Participants Participants

32. Start with a questions about performance, what is expected from the process, what are the objectives/ measures, what is the actual performance? C How is performance of the process being improved? A How was the process planned, what systems are in place to ensure the process is controlled. Does the process address the AS9100 and relevant customer requirements? P Is the process being carried out as planned? Are the systems understood by all involved in the process? Do

33. With WHO? With WHAT? (TRAINING, (EQUIPMENT/INSTALLATIONS) KNOWLEDGE, SKILLS) INPUT OUTPUT Customer Who has a Need Customer Who has a Need Met PROCESS REQUIREMENTS SATISFACTION HOW ? (INSTRUCTIONS, Start With Performance PROCEDURES METHODS) INCLUDING SUPPORT PROCESSES

34. Exercise: Audit of Top Management Review the case study Discuss in your groups what questions would you want to ask top management in the surveillance audit How do the questions link to AS9100 How would you prioritize your questions Feedback to group

35. Audit of top management • Seek evidence of customer focus • Question how quality objectives have been established • Question how the quality objectives have been deployed • Question on how performance against the quality objectives is reviewed • Question what action is taken when objectives are not met

36. Conclusions • Organization’s should define their processes • Organization’s should define how they measure the effectiveness and efficiency of their processes • Audits should verify the QMS can consistently provide products that meet customer as well as statuary and regulatory requirements • Focus on performance! • Thank you