PROGRESSIVE & TARGET & TARGET AUDIT/REVIEW PROGRAM

PROGRESSIVE AUDIT/REVIEW PROGRAM Designed to transform conventional wisdom of Supplier Qualification Process Designed to find Management Systems problems throughout the value stream and provide the support/direction necessary to ensure competent, consistent product and services from the Supply Chain Designed to Identify & Remedy crisis interventions that may happen at the worst possible time BEFORE THEY OCCUR. GOAL: A SUPPLY CHAIN THAT CAN DELIVER QUALITY PRODUCT, ON TIME, AT COST, AND TO SPECIFICATION AND SUSTAIN CAPABILITIES

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM STANDARD PROCESS Quality System Review – Broad Based Review Typical Question: “Does the supplier’s Quality Assurance have a documented set of procedures?” Are usually limited to a few questions on Business Process Many times a Business Process Review is not undertaken or is limited in scope as questions are part of an overall qualification review. Are usually limited to few questions in a standard review on: Rate Readiness Capacity Risk Mitigation If process is separated out into 3 separate reviews, many times they ask questions that have already been asked, answered and corrected – duplication of efforts.

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM CURRENT PROCESS HOW DOES YOUR CURRENT PROCESS WORK TOQUALIFY AND/OR CONTINUOUSLY RATE A SUPPLIER?

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM CURRENT PROCESS TYPICAL PROCESS REVIEW FORMAT Usually non-fillable, requires hand written entries Usually not capable of data extractions to find similar deficiencies across the value stream THE PG PROCESS IS A STANDARDIZED REVIEW FORMAT CURRENT FORMATS MANY TIMES HAVE SIMILARITY IN MANY QUESTIONS – DIFFERING FORMATS LACK CONSISTENCY CAUSING DUPLICATION OF EFFORTS DATA MINING BECOMES DIFFICULT (Garbage In – Garbage Out) What is your current format?

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM ALLOWS FOR CONSISTENTENCY IN PRESENTATION OF INFORMATION and STREAMLINED DATA MINING CAPABILITIES ENABLING FINDING POTENTIAL WEAKNESS ACROSS THE VALUE STREAM ALLOWS FOR ENSURING SEPARATION OF SPECIFIC AUDIT/REVIEW QUESTIONS ALLOWS FOR PROGRESSIVELY INTERACTING WITH A SUPPLIER’S MANAGEMENT SYSTEMS AND THEIR MANAGEMENT/EFFECTIVENESS OF THEIR QUALITY MANAGEMENT SYSTEM ALLOWS FOR SHORTER AUDIT/REVIEW TIMES PER AUDIT HAVING LESS IMPACT IN ANY ONE PARTICULAR VISIT TO A SUPPLIER. ALLOWS FOR NARROWLY FOCUSING TO SPECIFIC QUALITY SYSTEM CUSTOMER NEEDS AS SUPPLIER ADOPTS CUSTOMER SPECIFIC REQUIREMENTS & NEEDS

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM 4 PREMEIR REVIEWS EACH DRIVES DEEPER INTO SUPPLIER QMS 1 VARIABLE REVIEW 1.Management Systems and Contract Review 2.Business Practices 1.Execution of MS 3.Capacity Planning Rate Readiness 1. Execution of MS 4.Process Capability 1.Detailed look at production process 5.Variable Review 1. Customizable to need

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM EACH AUDIT/REVIEW IS STRUCTURED IDENTICALLY IN SCOPE/PRESENTATION

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM MANAGEMENT SYSTEM REVIEW CONTRACT REVIEW A DETAILED LOOK AT SUPPLIER QUALITY MANAGEMENT SYSTEM(S) and CONTRACT REVIEW PROCESS UP TO 75 QUESTIONS FOCUSED ON SYSTEM LEVEL REQUIREMENTS BEING DOCUMENTED AND IN PLACE TO ENSURE SUPPLIER HAS: 1.DEFINED ROLES/RESPONSIBILITIES 2.PROCESSES IN PLACE FOR EXECUTION of REQUIREMENTS ENSURING THEIR ABILITY TO MEET CUSTOMER SPECIFIC REQUIREMENTS IF NUMEROUS DISCREPANCIES FOUND PRE-EMPT SUPPLIER SELECTION ALLOW CUSTOMER TO ASSESS RESOURCE NEEDS TO BRING SUPPLIER IN-LINE WITH CUSTOMER NEEDS POOR MANAGEMENT SYSTEMS POLICIES/PROCEDURES MAY INDICATE POOR PERFORMANCE

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM BUSINESS PRACTICES REVIEW A DETAILED LOOK AT SUPPLIER’S EFFECTIVENESS AT WORKING THEIR DEFINED QUALITY MANAGEMENT SYSTEM PROCESSES UP TO 75 QUESTIONS FOCUSED ON EXECUTION OF THE SYSTEM LEVEL REQUIREMENTS NEEDED TO ENSURE SUPPLIER MEETS THEIR OWN DEFINED REQUIREMENTS BEFORE WE COMMIT THEM AND HOPING THEY WILL MEET NEW CUSTOMER SPECIFIC REQUIREMENTS IF NUMEROUS DISCREPANCIES FOUND IT CAN BE PRESUMED THE SUPPLIER WILL MISS UNIQUE CUSTOMER REQUIREMENTS AS WELL ALLOW CUSTOMER TO DETERMINE RESOURCE NEEDS TO ENSURE COMPLIANCE TO REQUIREMENTS

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM CAPACITY PLANNING/RATE READINESS REVIEW A DETAILED LOOK AT SUPPLIER’S EFFECTIVENESS AT CAPACITY PLANNING, RISK MANAGEMENT RISK MITIGATION UP TO 75 QUESTIONS FOCUSED ON EXECUTION OF THE QMS LEVEL REQUIREMENTS NEEDED TO ENSURE SUPPLIER DEFINES: RISK CAPACITY PLANNING SUB-TIER CONTROLS OUT-SOURCING MATERIALS CONTROL PROCESSES IF NUMEROUS DISCREPANCIES FOUND IT CAN BE PRESUMED THE SUPPLIER WILL NOT HAVE ADEQUATE MITIGATION PLANS THAT ARE PROVEN EFFECTIVE. QMS REVIEW SHOULD HAVE PICKED UP A RISK MANAGEMENT PROGRAM HAS BEEN DEFINED WILL AID IN IDENTIFYING HIGH RISK w/ SUB-TIER PLANNING, LOAD PLANNING, STAFF PLANNING EFFECTIVENESS

SUPPLIER DEVELOPMENT PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM PROCESS CAPABILITY REVIEW A DETAILED LOOK AT SUPPLIER’S EFFECTIVENESS AT: PRODUCING TO DEFINED WORK INSTRUCTIONS ENSURING ALL QUALITY CONTROL CUSTOMER SPECIFIC REQUIREMENTS HAVE BEEN CAPTURED BEFORE PRODUCTION BEGINS UP TO 75 QUESTIONS FOCUSED ON EXECUTION OF THE MANUFACTURING DEFINED PROCESSES. ARE WORK INSTRUCTIONS ADEQUATE? ARE PROCESSES PROPERLY SEQUENCED? ARE CUSTOMER SPECIFIC PRODUCT & QUALITY REQUIREMENTS ACCOUNTED FOR AND IN PLACE? IF NUMEROUS DISCREPANCIES IT CAN BE PRESUMED THE SUPPLIER WILL HAVE PROBLEMS DELIVERING QUALITY PRODUCT THAT: MEETS ALL PRODUCT DEFINITION IS CORRECT THE FIRST TIIME IS CAPABLE OF BEING DELIVERED ON-TIME

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM VARIABLE REVIEW AN OPPORTUNITY TO CUSTOMIZE A REVIEW TO TARGET SPECIFIC AREAS OF CONCERN CAN BE USED FOR: SELECTIVE REVIEWS PROBLEM AREAS MAINTENANCE / HEALTH CHECKS ALLOWS RANDOMNESS TO QUESTIONS POTENTIAL FOR UP TO 75 QUESTIONS FOCUSED ON ANY AREA OF CONCERN. A COMBINATION OF REVIEWS 1, 2, 3 or 4 or an INDEPENDENT STAND-ALONE REVIEW IF NUMEROUS DISCREPANCIES IT CAN BE PRESUMED THE SUPPLIER WILL HAVE PROBLEMS DELIVERING QUALITY PRODUCT THAT: MEETS ALL PRODUCT DEFINITION IS CORRECT THE FIRST TIIME IS CAPABLE OF BEING DELIVERED ON-TIME

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM GRAPHICALLY SEE WHERE YOUR ORGINAZATION FALLS SHORT FROM PERFECTION EVERY REVIEW IS GRAPICALLY ASSESSED TO GIVE A CLEAR VISUAL AS TO WHERE WEAKNESSES HAVE BEEN IDENTIFIED

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM TARGETED REVIEW PROCESS AN OPPORTUNITY TO CUSTOMIZE A REVIEW TO TARGET SPECIFIC AREAS OF CONCERN CAN BE USED FOR: VARIATION MANAGEMENT – AS9103 FIRST ARTICLE INSPECTION – AS9102 SOFTWARE CONTROL ENGINEERING/DESIGN PROCESS SPECIAL PROCESS REVIEWS UNIQUE SUPPLIER REQUIREMENTS FOLLOW THE SUPPLIER PROCESS POTENTIAL FOR UP TO 75 QUESTIONS EACH FOCUSED ON ANY AREA OF CONCERN. A COMBINATION OF REVIEWS 1, 2, 3 or 4 or an INDEPENDENT STAND-ALONE REVIEW IF NUMEROUS DISCREPANCIES IT CAN BE PRESUMED THE SUPPLIER WILL HAVE PROBLEMS DELIVERING QUALITY PRODUCT THAT: MEETS ALL PRODUCT DEFINITION IS CORRECT THE FIRST TIIME IS CAPABLE OF BEING DELIVERED ON-TIME

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM EACH AUDIT/REVIEW IS STRUCTURED IDENTICALLY IN SCOPE/PRESENTATION STANDARDIZING THE WORK FLOW

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM QUALITY CONTROL MANAGEMENT SYSTEMS A TOOL TO: SIMULTANEOUSLY WORK SUPPLIER QUALITY ASSURANCE IN PRODUCT QUALITY ESCAPES AND SUPPLIER DEVELOPMENT INITIATIVES SQA WORKS PRODUCT QUALITY ISSUE THROUGH RC/CA POLICY/PROCEDURE SUPPLIER WEAKNESSES FOR DEVELOPMENT ARE IDENTIFIED MANAGEMENT CAN DETERMINE RESOURCES NEEDED FOR SUPPLIER DEVELOPMENT OR TRANSFER OF WORK MORE RAPIDLY – WORKS SUPPLIERS QUALITY CONTROL MANAGEMENT SYSTEM TO DRIVE SUPPLIER TO IMPROVE QUALITY CONTROL PROCESSES ASSIST IN SUPPLIER DEVELOPMENT INITIATIVES FOR SUPPLIERS W/ PRODUCT QUALITY ISSUES DRIVES A SUPPLIER TO LOOK AT THEIR OWN QUALITY CONTROL MANAGEMENT TO INVESTIGATE POOR QUALITY CONTROL PRACTICES SUCH AS: INEFFECTIVE SAMPLING POOR GAGING TECHNIQUES POOR INSPECTION WORK INSTRUCTIONS OPERATOR/INSPECTOR TRAINING INEFFICIENCIES POOR CHARACTERISTIC ACCOUNTABILITY

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM QUALITY CONTROL MANAGEMENT SYSTEMS WHY DID A NON-CONFORMING PRODUCT LEAVE THE SUPPLIER’S FACILITY IN THE FIRST PLACE? FORM IDENTIFIES: PRODUCT NAME/NUMBER CHARACTERISTIC NUMBER INSPECTION METHOD INSPECTION INSTRUCTIONS

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM IN SUMMARY: THE PROGRESSIVE AUDIT/REVIEW PROGRAM & TOOLS WILL AID IN ACHIEVING: A STRONG/RELIABLE SUPPLY CHAIN IMPROVE LEAD TIMES REDUCED WARRANTY CLAIMS PREVENTION AND REDUCTION IN QUALITY PROBLEMS REDUCE/ELIMINATE SUPPLIER ESCAPES REDUCE THE COST OF POOR QUALITY

PROGRESSIVE PROGRESSIVE AUDIT/REVIEW PROGRAM QUESTIONS: BUSINESS PROCESS AND RISK MITIGATION REVIEW COMPLETION DEPENDENT UPON UNIQUE TIER 1, TIER 2 REQUIREMENTS THESE ARE YOUR SPECIFIC QUESTIONS YOU WANT REVIEWED. DESIRE INPUT FROM CROSS FUNCTIONAL AREAS/PERSONNEL