2. Nadcap SUBSCRIBER TUTORIAL Jon Steffey Program Manager Informatics Solutions, Research and Development 20 June 2016 Last updated June 2016® Performance Review Institute

3. Nadcap SUBSCRIBER TUTORIAL  Nadcap Overview Organizational Structure of Nadcap Nadcap Process / eAuditNet AGENDA Last updated June 2016® Performance Review Institute

4. Nadcap SUBSCRIBER TUTORIAL PRI: DEFINITIONS – PRI The 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. Last updated June 2016® Performance Review Institute

5. Nadcap SUBSCRIBER TUTORIAL Nadcap: –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. DEFINITIONS – Nadcap The leading worldwide co-operative 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. Last updated June 2016® Performance Review Institute

6. Nadcap SUBSCRIBER TUTORIAL eAuditNet: DEFINITIONS – 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. Last updated June 2016® Performance Review Institute

7. Nadcap SUBSCRIBER TUTORIAL 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 February 2012: PRI begins conducting audits for Transportation & Power Generation (2012) and Medical Devices (2014) industries January 2016: Counterfeit Avoidance (CAAP) program launched HISTORY OF THE PERFORMANCE REVIEW INSTITUTE (PRI) Last updated June 2016® Performance Review Institute

8. Nadcap SUBSCRIBER TUTORIAL Nadcap Subscriber Tutorial Attendees Guide –Antitrust (page 7) –Nadcap Personal Code of Ethics and Conflict of Interest (page 7) PRI Website: www.p-r-i.orgwww.p-r-i.org eAuditNet Guides: www.eAuditNet.comwww.eAuditNet.com KEY REFERENCES FOR NEW ATTENDEES Last updated June 2016® Performance Review Institute

9. Nadcap SUBSCRIBER TUTORIAL Attend Task Group 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 SUGGESTIONS FOR NEW ATTENDEES Last updated June 2016® Performance Review Institute

10. Nadcap SUBSCRIBER TUTORIAL 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. Safeguard the confidentiality of information that you're exposed to through the Nadcap program. MEMBERSHIP RESPONSIBILITIES Last updated June 2016® Performance Review Institute

11. Nadcap SUBSCRIBER TUTORIAL Nadcap MEMBERS 309th Maintenance Wing-Hill AFB Aerojet Rocketdyne Airbus Group –Airbus –Airbus Defence and Space –Airbus Helicopters –Premium Aerotec GmbH –Stelia BAE Systems – Military Air Information (MAI) BAE Systems The Boeing Company Bombardier Inc. COMAC Defense Contract Management Agency (DCMA) Eaton, Aerospace Group Embraer SA Finmeccanica S.p.A., Helicopters Division Finmeccanica S.p.A. - Settore Aeronautica GE Aviation –GE Avio S.r.l. General Dynamics –Gulfstream GKN Aerospace GKN Aerospace Sweden AB Héroux Devtek Inc. (Landing Gear Division) Honeywell Aerospace Israel Aerospace Industries Latecoere Liebherr-Aerospace SAS Lockheed Martin Corporation –Sikorsky Aircraft Mitsubishi Aircraft Corporation / Mitsubishi Heavy Industries LTD MTU Aero Engines AG Northrop Grumman Corporation Parker Aerospace Group Raytheon Company Rockwell Collins, Inc. Rolls-Royce SAFRAN Group Singapore Technologies Aerospace (ST Aerospace) Sonaca Spirit AeroSystems Textron Inc. –Beechcraft –Bell Helicopter –Cessna Aircraft Company –Textron Systems Thales Triumph Group Inc. United Technologies Corporation –Pratt & Whitney –Pratt & Whitney Canada –UTC Aerospace (Goodrich) –UTC Aerospace (Hamilton Sundstrand) –Zodiac Aerospace Last updated June 2016® Performance Review Institute

13. Nadcap SUBSCRIBER TUTORIAL GOVERNMENT AGENCIES AND CONTRACTOR POSITIONS ON PRI QUALIFICATION PROGRAMS Special Process and Product mandates to the supplier base in that region KEY: R = Accreditation Required by Prime Letter sent to Suppliers; M = Nadcap Member; A = Accepts Nadcap Accreditation Note: Not all Subscribers included above; visit eAuditNet for full list. Programs listed as of July 2011. SUBSCRIBER FOR PRI USE AMERICASEUROPE ASIA 309th MAINTENANCE WING-HILL AFB Hill AFB, UT A (CP, CT, HT, MTL, NMSE, NDT, WLD) AGUSTAWESTLAND Cascina Costa, Italy R (NDT) AIR FORCE WPAFB, OH R (Seals, SLT) ALENIA AERONAUTICA SPA Naples, Italy U12 R (CP, COMP, HT, MTL, NDT, SE, WLD) AVIO S.p.A Italy R (CP, CT, HT, MTL, NDT, NMSE, WLD) BAE SYSTEMS MILITARY AIR SOLUTIONS (MAS) UK U15 R (COMP, CP, HT, MTL, NDT, NMSE, WLD) BAE SYSTEMS Nashua, NH A (CP,CT,WLD) BALL AEROSPACE & TECHNOLOGY CORPORATION Boulder, CO A (CP,ETG,WLD) THE BOEING COMPANY (Commercial Airplanes, Intergrated Defense Systems) U11 R (COMP,CP,HT,MTL-Ind.Test labs only, NDT, NMSE-SE only,WLD) BOMBARDIER, INC. Dorval, Canada U13 R (COMP, CP, CT, HT, MTL, NDT, NMSE, WLD) Defense Contact Management Agency (DCMA) (DOD) Alexandrta, VA M (ALL, COMP, ETG, FLU, SEAL, SLT) Airbus U8 R (COMP, CP, ETG, HT, MTL, NDT, NMM, SE, WLD) R (COMP, CP, ETG, HT, MTL, NDT, NMM, SE, WLD) Name of Nadcap Subscribing Prime Contractor Last updated June 2016® Performance Review Institute

14. Nadcap SUBSCRIBER TUTORIAL AEROSPACE ACTIVE CUSTOMER AUDITS Last updated June 2016® Performance Review Institute

15. Nadcap SUBSCRIBER TUTORIAL STATUS REPORT – SUPPLIER AUDITS Commodity2016 (plan)201520142013201220112010 Aerospace Quality Systems (AQS)261275196232239229239 Conventional Machining as a Special Process (CMSP) 87736775614010 Composites (COMP)214177186156153 131 Chemical Processing (CP)94510861007934952893857 Coatings (CT)145139131133126124113 Electronics (ETG)135115104103847666 Fluid Distribution Systems (FLU)29333626 32 Heat Treating (HT)948889907855877833786 Measurement & Inspection (M&I)161161 Metallic Materials Manufacturing (MMM)10 Materials Testing Laboratories (MTL)230212198223193209178 Nondestructive Testing (NDT)121311421077100610091011973 Nonconventional Machining (NM)253220216202224228178 Nonmetallic Materials Manufacturing (NMMM)27 151382 Nonmetallic Materials Testing (NMMT)35343034252220 Surface Enhancement (SE)212186158160140156129 Elastomer Seals (SEALS)141310812108 Sealants (SLT)14211121151217 Welding (WLD)502490491477436456411 NUCAP2723520122225622471 Preassessments – Aerospace345632575487187 Total5,49654395,0744,9374,8904,7914,406 Last updated June 2016® Performance Review Institute

16. Nadcap SUBSCRIBER TUTORIAL Auditors Audits STATUS OF AUDITS/AUDITORS (FULL TIME EQUIVALENT) Last updated June 2016® Performance Review Institute

17. Nadcap SUBSCRIBER TUTORIAL 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 Manufacturing (NMMM) – Non Metallic Materials Testing (NMMT) – Conventional Machining as a Special Process (CMSP) – Measurement and Inspection (M&I) – Metallic Materials Manufacturing (MMM) Systems & Products – Aerospace Quality Systems (AQS): AC7004 – Fluid Distribution Standards (FLU) – Elastomer Seals (SEALS) – Sealants (SLT) – Composites (COMP) – Electronics (ETG) NADCAP PROGRAMS Last updated June 2016® Performance Review Institute

18. Nadcap SUBSCRIBER TUTORIAL Nadcap Overview  Organizational Structure Nadcap Process / eAuditNet AGENDA Last updated June 2016® Performance Review Institute

19. Nadcap SUBSCRIBER TUTORIAL PRI/Nadcap ORGANIZATIONAL STRUCTURE Policy Board of Directors Executive Leaders Legal entity Fiduciary responsibility Set policy Provide the vision Last updated June 2016® Performance Review Institute

20. Nadcap SUBSCRIBER TUTORIAL BOARD OF DIRECTORS  Stan Adachi  Divisional Director, Supplier Quality, Defense, Space & Security  The Boeing Company  Severin Drogoul  Vice President – Business Improvement & Quality  Airbus Group  Etienne Galan  Vice President Purchasing  Snecma (Safran Group)  Michael Hayward (Chairperson)  Sector Director International & Logistics Excellence  Northrop Grumman Aerospace Systems  Erik Kunkle  Sourcing Quality Leader  GE Aviation  Tony Maguire  Head of Quality, Hawk Aircraft Programmes  BAE Systems PLC  Anna (Graham) Morast  Director, Group Quality  Pratt & Whitney, UTC  Alan Partridge  Global Head of Materials Engineering  Rolls-Royce  David L. Schutt  Chief Executive Officer  SAE International  Junji Tsuji  Manager of Manufacturing Technology Group of Production Planning Department, Aero-Engine & Space Operations  IHI Corporation Last updated June 2016® Performance Review Institute

21. Nadcap SUBSCRIBER TUTORIAL PRI/Nadcap Organizational Structure Tactical Senior quality leaders & managers Oversee operation of Nadcap Establish & implement policy & procedures Task group coordination & development Identify, develop and deploy improvement Board of Directors Nadcap Management Council (NMC) Policy Last updated June 2016® Performance Review Institute

22. Nadcap SUBSCRIBER TUTORIAL CURRENT Nadcap MANAGEMENT COUNCIL (NMC) Latchezar Anguelov SAFRAN Group Tomohiko Ashikaga Mitsubishi Heavy Industries, Ltd. David Bale Pratt & Whitney Canada Dietmar Becher Liebherr Aerospace Michael Bess DCMA Pascal Blondet Airbus Richard Blyth, Vice Chairperson Rolls-Royce. Craig Bowden BAE Systems - MAI Christopher Brust DCMA Jeff Cerre Beechcraft Corporation David Cianfrini BAE Systems, Electronic Systems Russell Cole Northrop Grumman Steven Dix Eaton Aerospace Jose Eduardo Freire Embraer SA Hidekazu Furugori Mitsubishi Aircraft Corporation Troy Grim Spirit AeroSystems Dr. David Hansen 309 Maintenance Wing – Hill AFB Tim Hayes General Dynamics Martha Hogan-Battisti The Boeing Company Scott Iby UTC Aerospace (Hamilton Sundstrand) Wendy Jiang COMAC Jason Jolly Cessna Aircraft Company Karen Kim Sikorsky Scott Klavon, Secretary (Non-Voting) PRI Robert Koukol Honeywell Aerospace Kevin Knox Rockwell Collins, Inc. Ralph Kropp MTU Aero Engines GmbH Eric LeFort Sonaca Howard Jeff Lott, Chairperson The Boeing Company Frank Mariot Triumph Group Scott Maitland UTC Aerospace (Goodrich) Jean-Philippe Mathevet SAFRAN Group Robin McGuckin Bombardier Aerospace Frank McManus Lockheed Martin Michael Murray Beechcraft Corporation Scott O’Connor Honeywell Aerospace Ana Ottani dos Santos Embraer SA Jeremy Phillips Cessna Aircraft Company Scott Porterfield Triumph Group Fabrizio Quadrini AgustaWestland Mark Rechtsteiner GE Aviation Per Rehndell GKN Aerospace Sweden AB Norberto Roiz Airbus Defence and Space David Salerno Finmeccanica SpA – Settore Aeronautica Victor Schonberger IAI Scott Severson Rockwell Collins, Inc. Henry Sikorski Pratt & Whitney David Soong Pratt & Whitney George Winchester Northrop Grumman Corwyn Berger EXOVA, Inc. Jim Cummings Metal Finishing Company Dale Harmon Cincinnati Thermal Spray Michael Schleckman Voss Industries, Inc. Tammi Schubert Helicomb International Inc. Vitorio Stana Avcorp Industries Inc Vern Talmadge Howmet Thermatech Coatings Wilfried Weber PFW Aerospace GmbH Gary White Orbit NDT Last updated June 2016® Performance Review Institute

23. Nadcap SUBSCRIBER TUTORIAL Tactical Board of Directors Nadcap Management Council (NMC) PRI/Nadcap ORGANIZATIONAL STRUCTURE Technical Task Groups Special Processes Nondestructive Testing, Materials Testing, Heat Treating, Coatings, Chemical Processing, Welding, NMSE, Non Metallic Materials Testing, Conventional Machining, M&I, Metallic Materials Manufacturing Systems & Products Electronics, Sealants, Elastomer Seals, AQS (AC7004), Fluid Distribution Systems, & Composites Task Groups Special Processes Nondestructive Testing, Materials Testing, Heat Treating, Coatings, Chemical Processing, Welding, NMSE, Non Metallic Materials Testing, Conventional Machining, M&I, Metallic Materials Manufacturing Systems & Products Electronics, Sealants, Elastomer Seals, AQS (AC7004), Fluid Distribution Systems, & Composites Technical Experts Determine requirements Develop documents Accept corrective action Final decision on accreditation Supplier Support Committee (SSC) Administrative Staff Policy Last updated June 2016® Performance Review Institute

24. Nadcap SUBSCRIBER TUTORIAL Nadcap Overview Organizational Structure of Nadcap  Nadcap Process / eAuditNet AGENDA Last updated June 2016® Performance Review Institute

25. Nadcap SUBSCRIBER TUTORIAL Nadcap PROCEDURE HIERARCHY PD1000 QUALITY MANUAL PD1100 OP (Operating Procedures) Auditor Handbook Industry Managed Accreditation Program document, which contains the requirements for implementing industry consensus-based accreditation programs. Quality policy describing the quality system of the organization. Overall procedures by which Nadcap operates. Specific procedures for the Nadcap program operations and for each specific Nadcap commodity program. Roles and responsibilities for Nadcap Auditors, and clarifications to facilitate and standardize the audit process. Last updated June 2016® Performance Review Institute

26. Nadcap SUBSCRIBER TUTORIAL PD1100: Nadcap Program Requirements OP 1109: Supplier Advisories OP 1110: Audit Failure OP 1111: Merit Program OP 1112: NMC Oversight Activities KEY PROCEDURES (In eAuditNet, under Documents > Procedures and Forms) Last updated June 2016® Performance Review Institute

27. Nadcap SUBSCRIBER TUTORIAL THE Nadcap AUDIT PROCESS Accreditation Mandated by Nadcap Prime Subscriber Supplier Requests Audit Audit Scheduled & Auditor Assigned Audit Performed – Auditor Submits Report Supplier Review PRI Technical Staff Review Task Group Review Certificate Issued to Supplier Re-accreditation Process Subscriber Action Supplier Action PRI Action Last updated June 2016® Performance Review Institute

28. Nadcap SUBSCRIBER TUTORIAL 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 uploads audit results/report (every question response, NCRs, and cover letter or supplemental notes) into eAuditNet Supplier has 21 calendar days to initially respond to any findings (7 calendar days for subsequent responses) AUDIT PROCESS Last updated June 2016® Performance Review Institute

29. Nadcap SUBSCRIBER TUTORIAL EVERY STEP IS MANAGED BY INDUSTRY AUDIT CHECKLIST PROCESS EVALUTION/ IMPROVEMENT CORRECTIVE ACTIONS AS REQUIRED AUDIT RESULTS AUDIT CONDUCTED AUDITOR QUALIFICATION & SELECTION INDUSTRY EXPERTS MANAGE ALL KEY STEPS Last updated June 2016® Performance Review Institute

30. Nadcap SUBSCRIBER TUTORIAL Nadcap – INDUSTRY WORKING TOGETHER Audit Criteria (AC): Document containing checklists or other surveillance tools to be utilized in the course of determining compliance to established industry standards and prime requirements. Audit Criteria (AC): Document containing checklists or other surveillance tools to be utilized in the course of determining compliance to established industry standards and prime requirements. Establish Audit Criteria Nadcap StaffSuppliers Task Groups (Primes) Last updated June 2016® Performance Review Institute

31. Nadcap SUBSCRIBER TUTORIAL RELATIONSHIP BETWEEN AUDIT CRITERIA (AC), AUDIT HANDBOOK AND PRIME REQUIREMENTS Industry Standards + Prime Requirements AC7XXX Audit Criteria Job Audits Audit Handbook Last updated June 2016® Performance Review Institute

32. Nadcap SUBSCRIBER TUTORIAL INDUSTRY MANAGED PROGRAM AUDIT CHECKLIST PROCESS EVALUTION/ IMPROVEMENT CORRECTIVE ACTIONS AS REQUIRED AUDIT RESULTS AUDIT CONDUCTED AUDITOR QUALIFICATION & SELECTION INDUSTRY EXPERTS MANAGE ALL KEY STEPS Last updated June 2016® Performance Review Institute

33. Nadcap SUBSCRIBER TUTORIAL 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 AUDIT SELECTION/INTERVIEW/PERFORMANCE Last updated June 2016® Performance Review Institute

34. Nadcap SUBSCRIBER TUTORIAL 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 AUDITORS CRITICAL TO Nadcap Last updated June 2016® Performance Review Institute

35. Nadcap SUBSCRIBER TUTORIAL SAMPLE OF CURRENT AUDITORS & EXPERIENCE ProcessExperience Summary Aerospace Quality Systems (AQS)60% ISO Lead Assessors; Average 30 Years Experience Chemical Processing (CP)70% Have B.S Degree; 22 % Have MS Degree; 11% Have PHD; Average 35 Years Experience Coatings (CT)100% Have B.S Degree; 20% Have MS. Degree; 20% Have PHD; Average 30 Years Experience Composites (COMP)100% Have B.S. Engineering; 100% Have MS Engineering; Average 15 Years Experience Elastomer Seals (SEAL)50% B.S. Engineering; 30 Years Experience Fluid Distribution Systems (FLU)100% Have B.S. Engineering; Average 35 Years Experience Heat Treating (HT)80% Have B.S in Metallurgy/Material Science; 30% Have M.S. in Metallurgy/Material Science; Average 33 Years Experience; Certified Quality Engineer/Auditor Materials Testing Laboratories (MTL) 90% Have B.S Degrees; 50% Have MS Degrees; 20% Have PHD; Certified Quality Engineer/Auditor; Average 35 Years Experience Nonconventional Machining (NMMT) 80% Have B.S. Engineering; 40% Have MS Engineering; 20% Have PHD Engineering; Average 32 Years Experience Nondestructive Testing (NDT)100% are Level III’s for Four (4) Methods; 44% Have Bachelors of Science Degrees; Average 30 years of Experience Sealants (SLT)50% Have PHD; Average 30 Years Experience Surface Enhancement (SE)80% Have B.S. Engineering; 40% Have MS Engineering; 20% Have PHD Engineering; Average 32 Years Experience Welding (WLD)60% Have B.S Degree; 30% Have MS Degree; Average 34 Years Experience Last updated June 2016® Performance Review Institute

36. Nadcap SUBSCRIBER TUTORIAL INDUSTRY MANAGED PROGRAM AUDIT CHECKLIST PROCESS EVALUTION/ IMPROVEMENT CORRECTIVE ACTIONS AS REQUIRED AUDIT RESULTS AUDIT CONDUCTED AUDITOR QUALIFICATION & SELECTION INDUSTRY EXPERTS MANAGE ALL KEY STEPS Last updated June 2016® Performance Review Institute

37. Nadcap SUBSCRIBER TUTORIAL 1. Quality Systems 2. Special Process and Product Specific Requirements 3. 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) Nadcap AUDIT CONTENT Last updated June 2016® Performance Review Institute

38. Nadcap SUBSCRIBER TUTORIAL Chemical Processing GENERAL FOCUS AUDIT Calibration : NDT Does the supplier define the process employed for the calibration of inspection, measuring and test equipment type, unique identification, location, frequency of checks, check method, acceptance criteria and the action to be taken when results are unsatisfactory? Heat Treating Last updated June 2016® Performance Review Institute

39. Nadcap SUBSCRIBER TUTORIAL TECHNICAL (Nadcap) FOCUS AUDIT Calibration : Are the FPI dryer ovens calibrated every three months at multiple points across the usable range? Are furnaces used for heat treating Aluminum parts surveyed at the required tolerance and temperature range? Is measuring and test equipment used to control or monitor the control of a process (within parameters) maintained in a calibration system compliant with ISO 10012-1? (I.e. temperature gages, conductivity meters, voltmeters, rectifiers) Chemical Processing NDT Heat Treating Last updated June 2016® Performance Review Institute

40. Nadcap SUBSCRIBER TUTORIAL INDUSTRY MANAGED PROGRAM AUDIT CHECKLIST PROCESS EVALUTION/ IMPROVEMENT CORRECTIVE ACTIONS AS REQUIRED AUDIT RESULTS AUDIT CONDUCTED AUDITOR QUALIFICATION & SELECTION INDUSTRY EXPERTS MANAGE ALL KEY STEPS Last updated June 2016® Performance Review Institute

41. Nadcap SUBSCRIBER TUTORIAL 1.Major Nonconformance:  The absence of, or systemic breakdown of, the Process Control and/or Quality Management system.  Any non-conformance where the effect impacts or has the potential to impact the integrity of the product. 2.Minor Nonconformance:  A non-systemic lapse in conformance to the Process Control and/or Quality Management system. NCR CLASSIFICATIONS Last updated June 2016® Performance Review Institute

42. Nadcap SUBSCRIBER TUTORIAL 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 AUDIT REVIEW Last updated June 2016® Performance Review Institute

43. Nadcap SUBSCRIBER TUTORIAL Task Group Review: Task Group decides Procedure for Review – Sub-group review, entire Task Group Review Task Group Reviews for Correctness –Technical Comments, Supplier Responses, Technical Completeness, Auditor Summary Letter, Identify Additional Findings Completes Review of Each NCR and dispositions (NCR Status) Discuss Results with Task Group within Forums Task Group Votes on Accreditation via On-Line Balloting AUDIT REVIEW Last updated June 2016® Performance Review Institute

44. Nadcap SUBSCRIBER TUTORIAL Nadcap – INDUSTRY WORKING TOGETHER Nadcap StaffSuppliers Task Groups (Primes) Establish Audit Criteria Define Auditor Requirements Interview & Recommend Auditor Contract Auditor Plan/Schedule Audits Supplier Requests Perform Audit Review & Accept C/A Review & Accept C/A Submit C/A Package Submit C/A Package Review C/A Package Review C/A Package Findings Accredit Supplier Last updated June 2016® Performance Review Institute

45. Nadcap SUBSCRIBER TUTORIAL 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. eAUDITNET FOR SUBSCRIBERS – www.eAuditNet.comwww.eAuditNet.com Last updated June 2016® Performance Review Institute

46. Nadcap SUBSCRIBER TUTORIAL INDUSTRY MANAGED PROGRAM AUDIT CHECKLIST PROCESS EVALUTION/ IMPROVEMENT CORRECTIVE ACTIONS AS REQUIRED AUDIT RESULTS AUDIT CONDUCTED AUDITOR QUALIFICATION & SELECTION INDUSTRY EXPERTS MANAGE ALL KEY STEPS Last updated June 2016® Performance Review Institute

47. Nadcap SUBSCRIBER TUTORIAL TOP 10 PARAGRAPHS SINCE RELEASE OF COMP AC7118 REV A232 AUDITS Last updated June 2016® Performance Review Institute

48. Nadcap SUBSCRIBER TUTORIAL NDT TOP PARAGRAPH REFERENCES AC7114 (SAMPLE – 2010) Last updated June 2016® Performance Review Institute

49. Nadcap SUBSCRIBER TUTORIAL QUALITY IMPROVEMENTS FOR SUPPLIERS (SSC 2013 SURVEY RESULTS) An increasing percentage of Nadcap accredited companies report quality improvement in the area(s) related to their Nadcap accreditation(s). Last updated June 2016® Performance Review Institute

50. Nadcap SUBSCRIBER TUTORIAL 24-28 October 2016 Pittsburgh, PA, USA On-line registration available at www.p-r-i.org Reservation information will be posted on the PRI website (www.p-r-i.org) when available.www.p-r-i.org NEXT Nadcap MEETING Last updated June 2016® Performance Review Institute

51. Nadcap SUBSCRIBER TUTORIAL QUESTIONS QUESTION TIME ? Last updated June 2016® Performance Review Institute