1. David L. Nelson, Ph.D. Boeing Commercial Airplanes – Supplier Partner Quality June 22, 2007 AAQG Registration Management Committee Aerospace Auditor Workshop Auditing AS9100 Continual Improvement

2. Auditing AS9100 CI Topics  What is Continual Improvement (CI)?  Why do CI?  What AS9100 has to say about CI  Auditing AS9100 Continual Improvement  Red Flags During Audit  What you as an auditor can do  Conclusion  Q & A

3. Auditing AS9100 CI What is Continual Improvement?  From ASQ: “Continual improvement is an ongoing effort to improve products, services or processes. These efforts can seek incremental improvement over time or breakthrough improvement all at once.”  From Dictionary: “Indefinitely, without interruption; recurring in steady, rapid succession; prolonged”  Improvement should be measurable, with clear objectives and goals Otherwise, how do you know?

4. Auditing AS9100 CI Why Do Continual Improvement?  Performing Continual Improvement is a sound business choice If you’re standing still, you are falling behind (e.g., quality, cost, schedule, competitiveness)  Customers require it more and more through ISO 9000, AS9100 and other standards Aerospace in particular needs lower costs, higher quality, tighter delivery and better value from its suppliers  CI increases quality, profitability and customer satisfaction, while reducing costs, flow time & inventory

5. Auditing AS9100 CI What AS9100 Has to Say About CI  CI mentioned 13 times in AS9100, mostly in context of Quality Management System  FOREWORD: To assure customer satisfaction, aerospace industry organizations must produce, and continually improve, safe, reliable products that meet or exceed customer and regulatory authority requirements.  4.1 General Requirements: The organization shall establish, document, implement and maintain a quality management system and continually improve its effectiveness in accordance with the requirements of this International Standard.  8.5.1 Continual Improvement: The organization shall continually improve the effectiveness of the quality management system through the use of the quality policy, quality objectives, audit results, analysis of data, corrective and preventive actions and management review.

6. Auditing AS9100 CI Surveillance Assessment Reminder Reference: IAF Guidance on the Application of ISO/IEC Guide 62:1996 Clause G.3.6.5. At each surveillance the certification/registration body should check the following: c) progress of planned activities aimed at continual improvement of system

7. Auditing AS9100 CI  Paragraph 8.5.1 says to look for CI at least in: Quality policy, quality objectives, audit results, analysis of data, corrective and preventive actions and management review.  What to look for / Questions to ask in each of these areas: Quality Policy – Is CI mentioned? Is it given priority? Is someone at a high level accountable for it? Is it more than just words? Quality Objectives – Are there measurable goals for CI, with people assigned to ensure results? Are they communicated? Audit Results – Is CI a subject of internal audit? Are there meaningful audit records, with demonstrable improvement?

8. Auditing AS9100 CI Auditing AS9100 CI (cont.)  More areas: Analysis of Data – Is the organization actively looking for problems in products and processes? Do they gather and look at data to help in the solution? Do they use formal programs such as Six Sigma, Lean, or Process Improvement Teams? Corrective & Preventive Actions – Do they use CI tools in finding and eliminating root causes, and in preventing potential problems from occurring? Management Review – Are frequent and regular management reviews held, with project presentations, resource commitments, measurable goals, and decisions based on data? Is CI supported by all levels of management? Does management “Walk the talk?”

9. Auditing AS9100 CI Red Flags During Audit  CI words abound, with no meat to show action  CI is solely the Quality Manager’s responsibility  Ineffective internal audit of CI  Insufficient records of CI results  No measures of CI, or no goals  Poor project selection  Few project results  No visibility of CI projects on the shop floor

10. Auditing AS9100 CI What You As An Auditor Can Do  Increase your own understanding of CI through reading, training and peer discussions (e.g., through ASQ)  Consider CI as one of the foundational elements for AS9100 success at a supplier  Demand to see objective evidence of supplier CI activity and results, led by top management  Issue findings where CI is poorly implemented  Make sure the organization follows through with effective corrective action

11. Auditing AS9100 CI Conclusion  AS9100 (following ISO) places great emphasis on CI  That emphasis needs to be reflected by:  Effective CI activity at suppliers  Effective auditing of CI by AS9100 auditors  Effective follow-through on findings and recommendations  Begin today in your continuing education on CI

12. Auditing AS9100 CI Q & A