Lockheed Martin Canada’s SMB Mentoring Program Quality Assurance Guidelines

Introduction While there are a number of Quality Assurance Management systems from which to choose, certifying to a system that is recognized internationally ensures greater chance of recognition and/or acceptance of the system by potential customers. Initial Benefits of Certification: Ability to win more business. Procurement specifications often require certification as a condition to supply, so certification opens doors. Improved Customer satisfaction. Enhanced ability to deliver products that consistently meet customer requirements. Improved risk management. Greater consistency and traceability of products and services means problems are easier to avoid and/or rectify. © 2016 LOCKHEED MARTIN CANADA

Definitions QMS – Quality Management System OH&S – Occupational Health & Safety Registrar – independent assessor who will audit and confirm proper implementation and execution of selected certification © 2016 LOCKHEED MARTIN CANADA

Certifications Most often listed certification within procurements: Quality Management System ISO 9001:2008 (moving to ISO 9001:2015 by 2018) Environmental management ISO 14001: 2004 (moving to ISO 14001:2015 by 2018) Occupational Health and Safety Management OHSAS 18001: 2007 (moving to ISO 45001 by 2016) © 2016 LOCKHEED MARTIN CANADA

Quality Management System ISO 9001 ISO 9001 is the internationally recognized standard for Quality Management Systems (QMS). It is the most widely used QMS standard in the world, with over 1.1 million certificates issued to organizations in 178 countries. ISO 9001 provides a framework and set of principles that ensure a common-sense approach to the management of your organization to consistently satisfy customers and other stakeholders. In simple terms, it provides the basis for effective processes and effective people to deliver an effective product or service time after time. © 2016 LOCKHEED MARTIN CANADA

Environmental Management ISO 14001 Managing your organization's impact on the environment should be a key priority for your business, regardless of the industry you’re in. An environmental management system is a framework for making policy and process changes that help you improve your environmental performance. In addition to being better for the environment, this can also provide you with greater control over costs and other tangible benefits.  There are many ways to go about implementing an across-the-board environmental management policy, but the best way is to become certified to ISO 14001. ISO 14001 certification provides you with immediate credentials that you can use to grow your business in an environmental and economically sustainable manner. © 2016 LOCKHEED MARTIN CANADA

Occupational Health and Safety Management OHSAS 18001 OHSAS 18001 is the International Occupational Health and Safety Management Standard. It provides a framework for the effective management of OH&S including all aspects of risk management and legal compliance. It addresses occupational health and safety rather than any specific product safety matters. OHSAS 18001 will transition to ISO 450001 © 2016 LOCKHEED MARTIN CANADA

General Information Typical minimum required evidences prior to certification: New/Updated Procedures, manual(s), policies, objectives Training conducted as required - includes proof of training Communications Plan in place Corrective and Preventive action processes and records Risk and Opportunity management processes and records Internal audit schedule established and records Management review minutes and records Reasonable timeframe for implementation: 6-12 months Certification is typically valid for: 3 years Compliance audits: typically once / year © 2016 LOCKHEED MARTIN CANADA

Steps to a Standard Certification Develop Business Case for Certification Confirm Senior leadership agreement to commitment and investment Select the desired standard(s) to which the organization will be certified Assign a project lead Include a lead for each standard if more than one standard is to be implemented Purchase the standard(s) Select a consultant with expertise in the selected standard to be implemented Select a Nationally recognized Registrar Establish a project plan Establish an initial cost and timeline Document your system and implement Have the consultant conduct: Gap analysis Training for all employees Training for internal auditors Support to certification Close the identified gaps Have the Registrar conduct the certification assessment Maintain!

BENEFITS OF CERTIFICATION Reduced operating costs:  Continual improvement of processes and resulting operational efficiencies mean money saved; Achieving efficiencies in energy and water usage and through waste minimization means money saved (environmental certification); Less down-time due to OH&S incidents or ill health combined with lower costs from legal fees and compensation means money saved (OH&S certification). Improved stakeholder relationships: Improve the perception of your organization with staff, customers and suppliers. Demonstrating your organization takes quality, environmental and OH&S issues seriously reflects positively on the organization. Legal compliance: Understand how statutory and regulatory requirements related to Environmental and OH&S issues impact your organization and its customers. Improved risk management: Identify potential incidents and implement controls and measures to keep risk as low as possible. Proven business credentials: Independent verification against a globally recognized industry standard speaks volumes and enhances your brand. Compliance to customers’ requirements. © 2016 LOCKHEED MARTIN CANADA

Helpful Links ISO 9000 - Quality Management ISO 14000 - Environmental Management OHSAS 18001 Health and Safety Standard Directory of ISO Registrars © 2016 LOCKHEED MARTIN CANADA