1. Company Confidential Registration Management Committee (RMC) 1 Auditing Customer Requirements Atlanta, Georgia July 22-23, 2010 Roger Ritterbeck, QMI-SAI Global & Stanley Faust, Spirit AeroSystems Auditor Workshop Atlanta, GA July 22-23, 2010

2. Registration Management Committee (RMC) Atlanta, GA July 22-23, 2010 SYLLABUS Purpose of the presentation 7.2 Customer–Related Processes 7.2.1 Determination of Requirements Related to the Product 7.2.2 Review of Requirements Related to the Product 7.2.3 Customer Communication Process based auditing techniques of customer requirements First Article Inspection (FAI) package review Case Study Summary Questions Bibliograph y 2

3. Registration Management Committee (RMC) Atlanta, GA July 22-23, 2010 Purpose of the Presentation The purpose of this discussion is: –Discuss the urgency and concern of customers relative to customer requirements. –This is a common deficiency across the board. –The aim of this clause is focused on uncovering and understanding all customer requirements. –To explore what behaviors and actions we can influence to focus more on verifying and validating customer requirements. 3

4. Registration Management Committee (RMC) Atlanta, GA July 22-23, 2010 7.2.1 Determination of Customer Requirements Related to the Product The organization shall determine: a)Requirements specified by the customer, including the requirements for delivery and post-delivery activities. b) Requirements not stated by the customer but necessary for specified or intended use, where known, c) Statutory and regulatory requirements applicable to the product, and d)Any additional requirements considered necessary by the organization. (AS9100C, 2009) 4

5. Registration Management Committee (RMC) Atlanta, GA July 22-23, 2010 7.2.2 Review of Requirements Related to the Product The organization shall review the requirements related to the product. This review shall be conducted prior to the organization’s commitment to supply a product to the customer (e.g., submission of tenders, acceptance of contracts or orders, acceptance of changes to contracts or orders) and shall ensure that: a) Product requirements are defined, b) Contract or order requirements differing from those previously expressed are resolved, c) The organization has the ability to meet the defined requirements, d) Special requirements of the product are determined, and e) Risks (e.g., new technology, short delivery time frame) have been identified. (AS9100C, 2009) 5

6. Registration Management Committee (RMC) Atlanta, GA July 22-23, 2010 7.2.2 Review of Requirements Related to the Product Records of the results of the review and actions arising from the review shall be maintained. Where the customer provides no documented statement of requirement, the customer requirements shall be conformed by the organization before acceptance. Where product requirements are changed, the organization shall ensure that relevant documents are amended and that relevant personnel are made aware of the changed requirements. Note: In some situations, such as internet sales, a formal review is impractical for each order. Instead the review can cover relevant product information such as catalogues or advertising material. (AS9100C, 2009) 6

7. Registration Management Committee (RMC) Atlanta, GA July 22-23, 2010 7.2.3 Customer Communication The organization shall determine and implement effective arrangements for communicating with customers in relation to a) Product information b) Enquiries, contracts or order handling, including amendments, and c) Customer feedback, including customer complaints. (AS9100C, 2009) 7

8. Registration Management Committee (RMC) Atlanta, GA July 22-23, 2010 Process based auditing techniques of customer requirements The auditor should pursue process based audit trails by following actual products, customer orders, and related Documents (e.g., customer contracts, drawings, shop orders, inspection records) through the organization’s product Associated processes; verifying the interfaces between processes and the linked documentation Requirements (see 9100-series standards clause 4.2); resource management (see 9100-series standards clause 6); and Measurement, analysis, and improvement (see 9100-series standards clause 8). (AS9101D, 2010) 8

9. Registration Management Committee (RMC) Atlanta, GA July 22-23, 2010 FAI Package Review The Contractual Agreement –Purchase order –and supplements –Quality requirements Design data –Applicable drawings / specification –Material certification –Approved source list regarding special processes Special processes certification First Article CMM report (as applicable) Work order Material and Process Index, Parts List Objective evidence of FOD inspection Hardware (AS9100C, 2009) 9

10. Registration Management Committee (RMC) Atlanta, GA July 22-23, 2010 Case Study (Gladhill & Associates, 2007) 10

11. Registration Management Committee (RMC) Atlanta, GA July 22-23, 2010 Questions 11

12. Registration Management Committee (RMC) Atlanta, GA July 22-23, 2010 Summary The supplier must extract as much information as feasible by reviewing all customer requirements prior to offering the quote or accepting a contract. These comprehensive requirements reviews assure that organizations avoid making promises that cannot be kept and that no opportunities are missed. These critical reviews are intended to assure that adequate and accurate information has been provided, special requirements are explicit, risks are identified, the supplier has the ability to fulfill the contract, and these related risks have been determined. Finally, we want you to know we appreciate you, your abilities, and the challenges you face. It is not an easy profession, but please know that we are on the same team, We have common goals but different paths to reach these goals. Let’s continue to communicate through the OASIS feedback process to strengthen this relationship and the industry!! It’s been a plumb, pleasing, pleasure, thank you (link, 2009) (Link, 2009)

13. Registration Management Committee (RMC) Atlanta, GA July 22-23, 2010 Bibliography Gladhill & Associates International. (2007). Internal Auditor Training. : Glendale: AZ. admin@gladhillassociates.com. Link, E. P. (2009). An audit of the SYSTEM not of the PEOPLE. : Fairport: NY. Quality Pursuit, Inc. SAE Aerospace AS9100C (2009). Quality Management Systems - Requirements for Aviation, Space and Defense Organizations. SAE Aerospace AS9101D (2010). Quality Management Systems Audit Requirements for Aviation, Space, and Defense Organizations. 13