1. Nadcap SUPPLIER TUTORIAL Eric Jacklin F.M. Callahan & Son, Inc. Supplier Support Committee Leadership Team Chair Paul Evans James Fisher Nuclear Limited Supplier Support Committee Leadership Team 25 February 2014

2. Nadcap SUPPLIER TUTORIAL Provide some background on Nadcap. Show you where to find the information and tools to successfully prepare for your Nadcap audit. Introduce you to key individuals who can help you understand the Nadcap accreditation process. PURPOSE OF THIS SESSION 2

3. Nadcap SUPPLIER TUTORIAL Your name Company name What special process or processes will be audited? INTRODUCE YOURSELF 3

4. Nadcap SUPPLIER TUTORIAL INTRODUCING THE SUPPLIER SUPPORT COMMITTEE (SSC) 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 subscribers. 4

5. Nadcap SUPPLIER TUTORIAL Supplier Survey every two years Flowdown templates Increased Supplier Voting in Task Group ballots Mentoring program for new suppliers SOME SSC ACHIEVEMENTS WANT TO GET INVOLED? Talk to any SCC member at this meeting 5

6. Nadcap SUPPLIER TUTORIAL Objective To provide names and contact information of experienced Nadcap suppliers (Mentors) to suppliers (Mentees’) new to the process or in need of assistance navigating the Nadcap system. Benefits Gain an understanding of the Nadcap process by working with a passionate Mentor who has extensive process and value-added experience Open communication with an accredited supplier who can provide insight into the Nadcap program Collaboration with Task Groups Link Suppliers with SSC and Nadcap resources MENTORING PROGRAM If you would like to request a mentor, please send an email to NadcapSSC@sae.org 6

7. Nadcap SUPPLIER TUTORIAL WHERE DOES THE SSC FIT INTO Nadcap? PRI BOARD OF DIRECTORS Nadcap MANAGEMENT COUNCIL SUPPLIER SUPPORT COMMITTEE (SSC) POLICY & FINANCIAL OVERSEE Nadcap PROGRAM NON-TECHNICAL GROUP WORK ON SYSTEMIC ISSUES TASK GROUPS TECHNICAL EXPERTS DETERMINE REQUIREMENTS FINAL DECISION ON ACCREDITATION INDUSTRY REPRESENTATIVES 7

8. Nadcap SUPPLIER TUTORIAL STRUCTURE OF THE SSC LEADERSHIP TEAM TALK TO US ABOUT NON-TECHNICAL ISSUES 8 New Member AMERICAS ERIC JACKLIN F. M. Callahan & Son AMERICAS LLOYD BARKER Alcoa AMERICAS DAVID MICHAUD Fountain Plating EUROPE PAUL EVANS JFIMS VICE CHAIR DALE HARMON Cincinnati Thermal Spray AMERICAS JIM RINGER Tech Met SECRETARY JONATHAN HEBBEN Ducommun ASIA LEI BAO China Iron & Steel Research Institute Group CHAIR THOMAS NEWTON Aircraft Xray Laboratories, Inc.

9. SUPPLIER SUPPORT COMMITTEE TASK GROUP REPRESENTATIVES 9 Chemical Processing DAVID MICHAUD Fountain Plating Coatings DALE HARMON Cincinnati Thermal Spray WE WILL HELP YOU WITH ANY TASK GROUP QUESTIONS AQS MARK BROWN Kaman Aerospace Corp NMSE DAVE JONES 3P Processing Inc. Welding MIKE SCHLECKMAN Voss Industries Materials Testing BRYAN HALL NSL Analytical Services, Inc. NDT GARY WHITE Orbit Industries Elastomer Seals JOHN HUDSPETH International Seal Conventional Machining as a Special Process TIM CROWE Hunting Dearborn, Inc. Composites VITORIO STANA Avcorp Heat Treating ROY ADKINS Specialty Steel Treating Measurement and Inspection BRAD GOULD Hunting Dearborn, Inc.

10. Nadcap SUPPLIER TUTORIAL  Introducing Nadcap Why Nadcap? How do I get started? Audit Preparation Tips The End of the Audit What Now? AGENDA 10

11. Nadcap SUPPLIER TUTORIAL Nadcap DEFINITION 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. 11

12. Nadcap SUPPLIER TUTORIAL ACTIVITY IS GOVERNED BY PROCEDURES AS7003 QUALITY MANUAL NOP Nadcap Operating Procedure NTGOP Nadcap Task Group Operating Procedure NIP Nadcap Internal Procedure Auditor Handbook Aerospace Standard which documents the requirements for implementing Nadcap industry consensus-based accreditation programs. Quality policy describing the quality system of the organization. Specific procedures by which Nadcap operates. Scope and general operating procedures for each specific Nadcap commodity program. Specific procedures by which PRI / Nadcap Staff operates. Roles and responsibilities for Nadcap Auditors, and clarifications to facilitate and standardize the audit process. 12

13. Nadcap SUPPLIER 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 13

14. Nadcap SUPPLIER TUTORIAL INDUSTRY-MANAGED ACTIVE CUSTOMER AUDITS On Site Audits Actual results 14

15. Nadcap SUPPLIER TUTORIAL Introducing Nadcap  Why Nadcap How do I get started? Audit Preparation Tips The End of the Audit What Now? AGENDA 15

16. Nadcap SUPPLIER TUTORIAL WHY Nadcap? The Customer Perspective –Achieve greater consistency across the supply chain and throughout the industry. 16

17. Nadcap SUPPLIER TUTORIAL 17 Nadcap Subscribers 309th Maintenance Wing-Hill AFB AgustaWestland Alenia Aeronautica SpA BAE Systems – Military Air Solutions (MAS) BAE Systems Ball Aerospace & Technology Corporation Beechcraft Corporation The Boeing Company Bombardier Inc. COMAC Defense Contract Management Agency (DCMA) EADS Corporation – Airbus – Airbus Military – Eurocopter – Astrium – Cassidian – Aerolia – Premium Aerotech Eaton Aerospace Embraer GE Aviation General Dynamics GKN Aerospace GKN Aerospace Sweden AB Heroux Devtek Inc. (Landing Gear Division) Honeywell Aerospace Israel Aircraft Industries Latecoere Liebherr-Aerospace SAS Lockheed Martin Corporation MTU Aero Engines GmbH Northrop Grumman Corporation Parker Aerospace Group Raytheon Company Rockwell Collins, Inc. Rolls-Royce SAFRAN Group Sonaca Spirit AeroSystems Textron Inc. – Bell Helicopter – Cessna Aircraft Company – Textron Systems Thales Triumph Group Inc. United Technologies Corporation – Goodrich (UTAS) – Hamilton Sundstrand (UTAS) – Pratt & Whitney – Pratt & Whitney Canada – Sikorsky Aircraft

18. Nadcap SUPPLIER TUTORIAL The Supplier Perspective –Because my customer said so! WHY Nadcap? 18

19. Nadcap SUPPLIER TUTORIAL Quality Improvements –An increasing percentage of Nadcap accredited companies report quality improvement in the area(s) related to their Nadcap accreditation(s) THE REAL REASON 19 25% 77%76% 83% 85%

20. Nadcap SUPPLIER TUTORIAL Introducing Nadcap Why Nadcap?  How do I get started? Audit Preparation Tips The End of the Audit What Now? AGENDA 20

21. Nadcap SUPPLIER TUTORIAL OBTAIN AND READ THE PRIMARY DOCUMENTS Industry Standards & Customer Requirements Audit Checklist AC7XXX Audit Criteria + Job Audits Audit Handbook You will be audited using this checklist: get it from eAuditNet Clarifies the checklist & customer requirements: get it from eAuditNet 21

22. Nadcap SUPPLIER 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 22

23. Nadcap SUPPLIER TUTORIAL Complete a preliminary questionnaire and return it to PRI Scheduling Staff PRI Scheduling Staff will send you a quote for the audit cost and duration Schedule the audit using eAuditNet (and help from PRI Scheduling if needed) for a time that suits you (and meets your customers expectations) SCHEDULE THE AUDIT 23

24. Nadcap SUPPLIER TUTORIAL DO SOME RESEARCH, GO TO www.eAuditNet.comwww.eAuditNet.com 1.Register as a new user (limited access) 2.Contact PRI for full access (email eAuditNetSupport@sae.org) 1. eAuditNet Tutorial immediately after this session 24

25. Nadcap SUPPLIER TUTORIAL Schedule the audit when you are processing real parts from an aerospace customer The auditor wants to see job audits (a step-by-step review of all processing on actual hardware to evaluate how you meet customer requirements) Tell PRI in advance if you will not have real parts for the Nadcap audit IMPORTANT! AUDIT SCHEDULING 25

26. Nadcap SUPPLIER TUTORIAL Introducing Nadcap Why Nadcap? How do I get started?  Audit Preparation Tips The End of the Audit What Now? AGENDA 26

27. Nadcap SUPPLIER TUTORIAL NIP 7-02 Audit Process NIP 7-04 Post-Audit Process NIP 7-07 Export controlled Materials & Information NOP-008 Supplier Merit Program NOP-011 Audit Failure Process READ THE PROCEDURES Why does this matter? The procedures provide guidance on key aspects of the process including: Available on eAuditNet Response timeframes How to reduce audit frequency from 12 to 24 months How NOT to fail the audit and what happens if you do 27

28. Nadcap SUPPLIER TUTORIAL Major Non-conformance: The absence of, or systemic breakdown of, the process control and/or quality management system OR Any non-conformance where the effect impacts or has the potential to impact the integrity of the product. Minor Non-conformance: Any single system failure or lapse in conformance with the applicable standard or audit criteria UNDERSTAND THE NCR CLASSIFICATIONS 28

29. Nadcap SUPPLIER TUTORIAL Nadcap recognizes: AS / EN / JISQ 9100 and AS9003 –From a registrar listed in the lAQG OASIS database –Substitute: AC7004 lSO / lEC 17025 –For testing laboratories –From a NACLA/lLAC approved accreditation body –Substitute: AC7006 CHECK YOUR QUALITY SYSTEM APPROVAL 29

30. Nadcap SUPPLIER TUTORIAL For initial audits: Provide a copy to PRI Scheduling when you schedule your Nadcap audit If you don’t have this, AC7004 / AC7006 will be added to the scope For reaccreditation audits Provide a copy up to 60 days after the audit end date OR Schedule AC7004 / AC7006 at least 90 days before the audit start date (if you know you won’t comply with option 1) EVIDENCE YOUR QUALITY SYSTEM APPROVAL 30

31. Nadcap SUPPLIER TUTORIAL Use the Nadcap checklist Be strict with yourself For each question, record: –Where in your system you meet the requirement –Where you have objective evidence of compliance PERFORM A SELF AUDIT! 31

32. Nadcap SUPPLIER TUTORIAL If you cannot list where in your system you have documentation and what you will show the auditor the answer is NO! Fix all ‘No’s with Root Cause Corrective Action before the Nadcap auditor arrives USE THE SELF AUDIT RESULTS TO IMPROVE YOUR OPERATIONS 32

33. Nadcap SUPPLIER TUTORIAL Introducing Nadcap Why Nadcap? How do I get started? Audit Preparation Tips  The End of the Audit What Now? AGENDA 33

34. Nadcap SUPPLIER TUTORIAL Meet the auditor to review the report including any non-conformances (NCRs) Ensure all NCRs are understood: this is what you are responding to. If it’s not clear to you, will the Staff Engineer / Task Group understand? Invite the right people including top management Raise any issues or problems AT THE END OF THE AUDIT Meet with the auditor each day for a review so there are no surprises 34

35. Nadcap SUPPLIER TUTORIAL Provide feedback about the audit on eAuditNet Appeal an NCR, Staff Engineer decision or Task Group decision if you are not happy – Contact the Staff Engineer for information Contact PRI Management if you’re not satisfied AFTER THE AUDITOR LEAVES Meet wih each day for a review so there are no surprises Scott Klavon Director Nadcap program and Aerospace Operations +1-724-772-7111 scott@sae.org 35

36. Nadcap SUPPLIER TUTORIAL Provide the following in your answer: Immediate Corrective Action Taken (Containment) Root Cause of Non-conformance Impact of all Identified Causes and the Root Cause Action Taken to Prevent Recurrence Objective Evidence Attached RESPOND TO ALL NON-CONFORMANCES 36

37. Nadcap SUPPLIER TUTORIAL Initial responses: 21 calendar days Subsequent responses: 7 calendar days Important note: This is the time to respond to the NCRs, not necessarily to fix them No extensions can be granted BUT 30 extra days are allocated in case more time is needed Be aware: using extra days may affect merit and using more than 30 extra days may result in audit failure RESPONSE DUE DATES 37

38. Nadcap SUPPLIER TUTORIAL www.eAuditNet.com A link to Response Requirements is on the page with the NCR www.eQuaLearn.com Root Cause Corrective Action training class www.pri-network.org Free whitepaper called Root Cause Corrective Action – Nadcap Style (in the News section) NEED MORE HELP WITH RCCA? 38

39. Nadcap SUPPLIER TUTORIAL Throughout 2014, PRI is offering free eQuaLearn training classes at Nadcap meetings. Due to the popularity of these sessions, places are allocated on a first-come, first-serve basis. To date, topics have included: Root Cause Corrective Action Introduction to Pyrometry How to Prepare for a Nadcap Audit Internal Auditing Learn more and register at www.eQuaLearn.com.www.eQuaLearn.com FREE TRAINING AT Nadcap MEETINGS 39

40. Nadcap SUPPLIER TUTORIAL Introducing Nadcap Why Nadcap? How do I get started? Audit Preparation Tips The End of the Audit  What now? AGENDA 40

41. Nadcap SUPPLIER TUTORIAL Do your research Be prepared Perform a self-audit Understand Root Cause Corrective Action Ask for help if you need it! REMEMBER THE KEY POINTS 41

42. Nadcap SUPPLIER TUTORIAL PRI Scheduling Staff To arrange your audit Nadcap Staff Engineers For guidance on checklist interpretation Supplier Support CommitteeTo get involved, request a mentor, etc eQuaLearn For training on RCCA etc MAKE CONTACT 42

43. Nadcap SUPPLIER TUTORIAL www.pri-network.org -PRI company websitewww.pri-network.org www.eAuditNet.com -Nadcap audit specific websitewww.eAuditNet.com www.eQuaLearn.com -PRI training opportunitieswww.eQuaLearn.com GO ONLINE 43

44. Nadcap SUPPLIER TUTORIAL Thank you for your participation Please ask questions and give feedback on this tutorial ANY QUESTIONS? To receive a copy of this presentation, email NadcapSSC@sae.org 44