ISR Systems Supplier Basic Training ISR Space & Defense Supplier Quality

Forward To successfully do business with ISR Space & Defense a Supplier must provide fully conforming parts, assemblies and services. To provide fully conforming parts, assemblies and services a Supplier must know the basic transactional requirements and how to satisfy them. This tutorial will help the Supplier along that journey. 2

PRODUCT ASSURANCE SUPPLEMENT TO PURCHASE ORDER MAN 0129 Product Assurance (PA) Codes are the basic means of communicating Quality requirements flow down applicable to the parts, assemblies and services being procured. They are cited on the Request for Quote (RFQ) and the Purchase Order (PO). If for any reason you cannot fully satisfy any of the cited PA codes then you must notify the buyer in writing that you are taking exception and ask for relief. Relief, if granted will be in the form of a PO amendment. 3

The Supplier is required to perform 100% inspection of all PA Code 200 NOTE 200: 100% Inspection The Supplier is required to perform 100% inspection of all drawing requirements or referenced specifications for all parts. A record of "as measured" dimensions will be supplied via the Buyer supplied "Vendor Inspection Report" or Seller's equivalent form and shall list the parameter specified vs. the actual measurement. The "as measured" record shall consist of actual data recording of all dimensions with a total tolerance of 0.010 inch or less with an accuracy of one tenth the total tolerance, a check mark or stamp for all other dimensions and notes other than "reference dimensions." 4

Product Assurance Codes Review PRODUCT ASSURANCE SUPPLEMENT TO PURCHASE ORDER MAN 0129 5

Request for Quote Request For Quote (RFQ) is the instrument used by ISR to solicit costing and delivery information for parts and services. May be used to develop ISR RFQ response to its customer Used to select supplier and populate Purchase Order (PO) It is crucial that the Supplier understands all the requirements and properly prices the work. BEWARE! Make sure RFQ and PO contain the same requirements. FAQ – Why do I keep getting the same RFQ over and over but do not get any work? Some possible answers follow: ISR may be testing to see if we can competitively bring a new product to market We may be formulating a ROM for a customer We may need current pricing because we are now bidding 6

Purchase Order The Purchase Order (PO) form is used to establish a written contract for goods and services between ISR and a Supplier that clearly describes the goods and/or services being procured. Number one in the hierarchy of precedence The Letter of Contract may substitute for a PO for large complicated procurements Contains or refers to all necessary information to provide fully conforming product on time. Be sure to review before accepting to assure there are no changes from the quote. If you accept the PO you are legally bound by the terms and pricing. 7

Statement of Work Statement of Work (SOW) – Defines all tasks, process controls and quality requirements that are required to be accomplished under a specific contract or subcontract. The SOW also defines the hardware, software, and documentation deliverables of the contract. Once a SOW is released and formally made part of a contract, changes are incorporated only after negotiation and mutual agreement between ISR and Supplier. These changes must be implemented only through approved contractual channels. A history of such changes to the statement of work shall be reflected in the revision record page of the document. Number two in the hierarchy of precedence Insist that the SOW is formally reviewed in its entirety so that there are no misunderstandings 8

Drawings “Drawings … shall provide engineering definition sufficiently complete to enable a competent manufacturer to produce and maintain quality control of item(s) to the degree that physical and performance characteristics interchangeable with those of the original design are obtained without resorting to additional product design effort, additional design data, or recourse to the original design activity.”1 “A detail drawing delineates information to describe an item, and shall include form, dimensions, material, finish, tolerances, and other requirements as applicable. It defines the end result desired in the procurement or manufacture of the part.”2 1 Referenced from Drawing Preparation WI BMS-0733-1002 Level 3 – Production 2Referenced from Drawing Preparation WI BMS-0733-1002 3.6.2 Types of Drawings 9

Drawings Key Characteristics - Assembly/part traits depicted on the drawing which have the greatest influence over the end product's fit/form/function. When required by the contract, key characteristics will be denoted by a capital "K" next to the dimensions in the field of the drawing or the note which describes the trait. Number three in the hierarchy of precedence Insist that the Drawing is formally reviewed in its entirety so that there are no misunderstandings 10

Additional Specifications/Standards Government or Industry documents that describe and/or control specific requirements for processes, materials or parts. Unless otherwise specified, the revision of the document at the time the PO was placed is in effect. Should the document revision change after issuance of the PO, report the situation to the ISR Buyer via VMRR and the ISR disposition will direct your course of action. Number four in the hierarchy of precedence In most cases, Special Processes will require that the processor have a current Nadcap certification for the specific process. 11

VMRR A VMRR is a temporary, non-conformance acceptance approval, valid only for the serial numbers, purchase order number, lot quantity etc. indicated on the approved form. A VMRR is not a blanket approval for the non-conformance. The Supplier is responsible to assure that quantities in excess of those approved are not shipped. Supplier Generated - If any of the following conditions exists for which the Supplier is seeking guidance, the Supplier shall fill out a VMRR form, and send it to the ISR Buyer: 1. To seek acceptance of an out-of-tolerance condition, 2. To report an error in documentation, 3. To report required material cannot be obtained (raw material, subassembly parts, obsolete components). 4. Suggest as a Corrective Action; alternate parts or materials as well as potential design changes. 12

      VMRR Unless specifically authorized by Goodrich in writing (including emails), no items shall be shipped to Goodrich if a VMRR is opened against them. Only after receipt of the dispositioned and signed VMRR shall the Supplier be authorized to ship the items against the purchase order line items. If the specified condition is not accepted by Goodrich, the items shall not be shipped. Deviations and waivers may be communicated to the Supplier through engineering changes, notes in the purchase order, in the statement of work, and letters of subcontract. Goodrich ISR personnel may also initiate a VMRR to notify and authorize deviations and waivers. Supply Chain personnel will communicate the VMRR to the Supplier. 13

Non Conformance Material Report At times it may be necessary to return non-conforming materials to a Supplier that are discovered at Receiving Inspection or in Work in Process or further along. ISR Shipping sends out the rejected material along with a copy of the NCMR inside the box. The NCMR details the non-conformance If ISR elects to Use-As-Is non conforming material, we will send you a notification with the NCMR so you are aware of the discrepancy and can correct it for future production. 14

SCAR/CAPA The SCAR form is used when formally documented Supplier corrective action is required. The form is used for both audit and product non-conformances. The Due Date is the first response date. First response may be a complete addressing of the SCAR to closure for a simple problem. First response may be a statement of Immediate Corrective Action and a Plan aiming at full closure for a more complex problem. The SCAR shall be considered closed upon ISR acceptance of all the elements and on-site verification of effective CA if exercised. Immediate Corrective Action Root Cause Root Cause Corrective Action Corrective Action Verification Preventative Action 15

Human Error is normally not an acceptable root cause. SCAR/CAPA Immediate Corrective Action and Containment Any action taken immediately upon notification of nonconformance, such as rejection tags, line checks, stock checks, segregation, notification of additional items shipped/delivered. Include notifying sub-tier suppliers as required. This section should describe actions taken to correct non conformance in the short term. The response should include when, where, how, and by whom correction/containment was completed Root Cause Extensive analysis is called for in root cause identification. Detailed in-depth questions should be asked, and additional root cause identification tools can be used to analyze results. Human Error is normally not an acceptable root cause. 16

SCAR/CAPA Root Cause Corrective Action Corrective Action Verification The response to root cause should include, but is not limited to, changes to equipment, procedures, processes, training, and includes objective evidence of the changes (who, what, when, and how). Corrective action involves long-term recurrence prevention and process improvement beyond the immediate correction and containment. Corrective Action Verification The supplier's follow-up plan to ensure that the corrective action has been effectively implemented. This section describes activities (who, what, where, when, how) that verify root cause corrections have been completed and are effective. 17

SCAR/CAPA Preventative Action This section describes analysis performed and actions taken or planned to eliminate the causes of similar potential nonconformities on other products, processes, systems, or procedures. If none, provide rationale. 18

Nadcap ISR currently requires Nadcap Certifications for the following Special Process categories: Chemical Processing Coatings Heat Treating Materials Testing Non Metallic Materials Testing Non Destructive Testing Nonconventional Machining Surface Enhancement Welding http://www.pri-network.org/Nadcap/Special-Processes.id.858.htm 19

Nadcap ISR currently requires Nadcap Certifications for the following Special Process categories only when specifically called out on PO: Composites Conventional Machining as a Special Process Distributors Elastomer Seals Electronics (PWBs and CCAs) Fluid Distribution Systems Sealants http://www.pri-network.org/Nadcap/Special-Processes.id.858.htm 20

First Article Inspection Report Review the FAIR Tutorial This is the single most important tool in the QA toolbox. For the Supplier it is the last opportunity before ISR Inspection to make sure everything was covered and all requirements are met and are acceptable for a new part. For ISR it is the first opportunity to make sure everything was covered and all requirements are met by a new or existing Supplier and are acceptable for a new part. 21

Certificate Of Compliance A Certificate of Compliance (C of C) must accompany each shipment. Failure to comply with this requirement may result in delayed incoming inspection of the order or outright rejection. The Certificate of Compliance must include pertinent data and a signature from authorized Supplier personnel. In the case of proprietary information, such information shall remain on file at the Supplier and be available for inspection by a ISR representative at any reasonable time. This is the single most common cause for part rejections at Incoming Inspection. Either the CofC is missing or the content is non conforming. 22

Certificate Of Compliance Data to be recorded on or accompanying the Certificate of Compliance shall include but not be limited to: • Name and address of Supplier • Part number, part name and revision level • ISR purchase order number and line item number • Quantity shipped and serial numbers if applicable • Statement of conformance to Purchase Order, drawing and specification requirements, including revision level of each. Include sub tier supplier's signed certifications as required. • Statement of conformance for all required material, special process and testing (including NDT) specifications. Include sub tier supplier's signed certifications. 23

Certificate Of Compliance Chemical/physical test reports stating the actual chemical and mechanical properties for raw material (not required for material furnished by ISR unless processing alters properties) if required by PO/PA Code. Metallic and optics certifications shall include melt, cast, heat, boule, etc. traceability information if required by PO/PA Code. Signature and title of authorized Supplier representative, including date signed, attesting that the information is true and accurate. 24

Subcontracting Prohibition It is prohibited to subcontract all or portions of the prime contracted work without written permission of the ISR buyer. If the permission is granted, ISR Supplier Quality reserves the right to survey and approve the subcontract supplier prior to work commencing. The prime Supplier is responsible to assure the subcontract supplier is flowed down all pertinent PO and Quality requirements. Further, the prime Supplier is responsible that all work by the subcontract supplier is fully conforming. This does not apply to secondary processing. 25

The Rating is reported as % Acceptable and PPM Defective Metrics ISR Supplier Quality reports Supplier Quality Ratings to ISR Supply Chain Management (SCM) on a monthly basis. The Rating is reported as % Acceptable and PPM Defective Do not confuse PPM Defective with PPM Opportunities Goodrich Corporate requires a Supplier to maintain a % Acceptable of 99.5% or greater Goodrich Corporate requires a Supplier to maintain a PPM Defective of 5000 or less SCM maintains a Supplier Scorecard that also reports On Time Delivery In Full Contact the ISR Buyer for your ratings. 26

Help is Available The protocol is that all contractual communications go through the buyer ISR is always willing to help a Supplier with a wide variety of development initiatives Process Audits aimed at process improvement Various types of Kaizen events Help with Root Cause Analysis, Effective Corrective Action and Preventative Action PFMEA Control Plans Supplier Quality Engineering is your Ombudsman if you have quality, technical or production (non financial) issues requiring resolution. 27

Accept No Verbal Directions! Final Warning Accept No Verbal Directions! Get it in Writing! The written directions must come via the Buyer for any contractual issues including design changes. 28