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Buffco Engineering Inc. AS9100 Quality Manual

Reviewed approved and issued as the initial release by:

Karl K. Jones President

Approved By:

Dated

2/28/06

This is a Buffco Engineering CONTROLLED Document ONLY if it is printed on light blue paper.

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Buffco Engineering Quality Manual and Procedures Revision notes

Revision Level

Change Description Date Approved By

N/C Original Release 02/28/2006 Karl Jones

A Section 7.5.1.2 (Specified who is approved to make changes to production processes.) Section 8.3 (Specified who approves the QMR.)

09/28/2006 Karl Jones Signature on file

B Section 4.2.1 (Added provisions for CNC Machining of aircraft parts & race car components). Added justification for exclusions

09/13/2007 Karl Jones Signature on file

C Added approval to page #1 Added the company logo to page #1 Added Index to manual on page #3 Improved Manufacturing Overview Flow Chart, Improved Manufacturing Process, and added note to Special Processing Requirements. Section 4.2.1 Added locations Quality Manual can be found. Section 4.2.4 Revised chart Section 5.5.1 Added requirements of First Part Inspector Section 5.5.2 Revised Quality Management Representative Section 7.4.3 Removed validation of material requirements Section 7.5.1.2 Revised planning change requirements Section 7.5.3 Revised stamp, electronic signature, or initials quarantine time. Added stamp regulations. Section 8.2.2 Defined authorized internal auditors. Section 9.0 Deleted and added Appendix A, B and C.

07/14/2008 Karl Jones Signature on file

D Added to Appendix A (forms) Added to Appendix B (SOP’S)

08-04-2008 Karl Jones Signature on file

E Section 5.5.1 Added Rockwell and conductivity testing to material purchased. Section 7.4.1 Added new vendor approval guidelines. Section 7.5.1 Added Machine maintenance daily checklist locations to production controlled conditions. Changed Appendix B(SOP’S) to (Procedure Ref.Tools)

11-11-2008 Karl Jones Signature on file

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Quality Manual Index

Paragraph 4.0 Quality Management System Page #4 Paragraph 5.0 Management Responsibility page #11 Paragraph 6.0 Human Resources page #14 Paragraph 7.0 Product Realization page #14 Paragraph 8.0 Measurement, Analysis, and

Improvement page #21

Appendix A Forms page #26 Appendix B Procedure Reference Tools page #26 Appendix C Quality Special Media and Tools for

Continuous Quality Improvement

page #26

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4. QUALITY MANAGEMENT SYSTEM: 4.1 General Requirements: Buffco Engineering Inc. (Buffco) has established, documented, implemented and maintains a quality management system and strives to continually improve the quality systems effectiveness in accordance with the requirements of ISO9001:2000 and AS9100 (b). Buffco has identified the processes needed for the quality management system and the application of needed processes throughout the organization. Process mapping has been prepared to show the sequence and interaction of these processes. Buffco has determined methods to be used for operation and control of these processes and has determined criteria needed. Top management uses input from process owners, quality results and management review input to ensure the availability of appropriate resources and information necessary to support the operation and monitoring of these processes. Each process described is monitored, measured and analyzed to provide a baseline for data and metrics for continual improvement of these processes. Process maps are found on the pages following.

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Customer Requests Quote

Feasible

Prepare Quote Review and

Approve

Yes

If Not Possible Negotiate Or Cancel

Send To

Customer

Customer issues An order

ReviewOrder Against

Quote

ResolveDifferences

IfRequired

Order Entered Into System

OK

Router is Prepared (First time production routers must be

approved by upper

Management)

Order Released toQuality for

Material Check-In

Order Released to Manufacturing for

Operations per Detail Manufacturing

Flow Chart

Purchasing OrdersNeeded for Products

or Processes

Vendors SendsNeeded Product or

Perform OutsideProcesses

Inspected Product OK?

Material or ProductPlaced into Inventory

OK

Material Or

Product Issued Per Router

Product DispositionPer Para. 8.3

No

ProductPasses

Inspection

No

Product Labeled,Packaged and

Shipped to Customer

Yes

CustomerReceives order

Buffco Engineering Manufacturing Overview Flow Chart

Quote On File

Yes

No

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Perform Test Setup According to Router

Verify SetupOK

No

Complete RouterOperation (Sign or

Stamp asAppropriate)

Internal Setups Complete

No

OutsideProcessingRequired?

Final Inspection

Product OK

No

NonconformingProduct Procedure

Reference 8.3No

Package and ShipOr Hold for Pickup

As Required

OK

Customer ProductDelivered

Outside Processing Completed by

Vendors

Yes Quality Inspection

Product OK

No

Yes

Product InspectedAnd Certificates Reviewed and Approved as

Required

Product OK

No

Outside ProcessesComplete

Yes

No Mfg OperationsComplete

Yes

No

Buffco Engineering Detail Manufacturing Process

First Part/Setup

Inspection

Fail

Pass

Yes

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Buffco Engineering Quality Processes Map

Customers

Orders/Quotations

ReviewFeedback

AcknowledgementClarification

ProductionQuality

Verification

Top ManagementReview and Actions

Package and Ship

Customer Surveysand Feedback to

Quality

Internal QualitySystem Audits

Employees

QualityImprovementInformation

Vendors

Supplier Selection and Review

Corrective andPreventive Actions

Quality Policies andObjectives Set

Measurements

External Audit Results

Inventory

Create Router

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Where Buffco Engineering chooses to outsource any process that affects product conformity requirements, Buffco Engineering takes the necessary steps to ensure control of the process. This typically involves qualification of the processor, providing specific processing requirements. These processes are controlled through the normal purchasing process. Note: All special processing must be done by a customer approved vendor. Outsourced processes include the following:

a) Heat Treating b) Calibration Services c) Plating d) Machining and Stamping e) Welding f) Painting g) NDT, NDI h) Lab Raw Material Verification i) Shot Peening

These processes are controlled through purchasing process, flowing down customer specifications, and requiring certificates of conformance or certificates of analysis as required. 4.2 Documentation Requirements: 4.2.1 The quality management system documentation of Buffco Engineering contains all documentation required by ISO 9001:2000 and AS9100 (b) as well as quality related documentation required by customers. The scope of the quality system of Buffco Engineering includes provisions for CNC Machining of aircraft parts and race car components, except 7.3 Design and Development and the service provisions of 7.5.1 and 7.5.2. Parts are manufactured per customer design and development and no requirement for servicing. This manual provides for: a) Documented statements of a quality policy and quality objectives b) A quality manual c) Documented procedures required by AS9100 (b) d) Reference to procedures and documents needed by the organization to ensure the effective planning, operation and control of its processes e) Records required by this International Standard (see 4.2.4) The organization ensures that personnel have access to quality management system documentation and are aware of relevant procedures. Buffco Engineering will notify customers of significant changes in facility, location, or key personnel that may affect the quality of product as required by contract. The quality manual will be maintained in the President’s office, Quality lab and electronically on the Buffco Data Server. Customers and/or regulatory authorities or their representatives have access to agreed portions of the quality management system documentation and records. 4.2.2 The Buffco Engineering Quality Manual This manual contains all required procedures and they are organized by the general clause numbers assigned to AS9100 (b) in order to show the relationship. A description of the interaction between the processes of the quality management system is shown on the process maps.

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4.2.3 Documents required by the quality management system are controlled. The procedure for control is as follows. Each document is approved for adequacy prior to issue, then reviewed and updated and re-approved as needed. Controlled copies of this manual shall be printed on light blue paper. A master list of quality documents and a list of distribution of this document and documents of external origin are maintained by the Quality Management Representative (QMR). Revision notes are kept for Buffco Engineering documents to ensure that changes are documented. The QMR also ensures that documents remain legible and readily identifiable and that relevant versions of applicable documents are available at points of use. All documents of external origin are identified and their distribution is controlled. N/C programs are maintained in current form on the programming computer. Backup copies of the current revisions of programs will be made after each change to a program and on a weekly basis. The router indicates the name of the program by part number. The programs revisions are dated. The operator has the authority to modify programs to ensure that parts conform to specification. All customer drawings, drawing changes, revisions, specifications and/or other applicable contractual requirements will be maintained by Buffco Engineering. Drawings, drawing changes and/or design control will be the responsibility of the QMR. This control will assure the following results:

a) Removal from the system all obsolete drawing, drawing changes and/or specifications. b) Notify Quality and Manufacturing of changes in affectivity so that obsolete parts and/or

assemblies can be identified and dispositioned. Manufacturing notes any revisions that will affect or have the potential to affect work in process orders. The router will be modified or replaced to reflect the revision. All changes will be approved signifying notification and acceptance.

c) Maintain master drawing file and other administrative duties necessary to ensure a controlled system.

The QMR will ensure that suitable identification is applied to any obsolete documents, retained for any purpose in order to prevent unintended use. This marking shall be applied to the front page of documents that have attached pages or on each page if not attached. The marking shall read “OBSOLETE” Records are a special type of document and are controlled as described in section 4.2.4. Where required by customer contract the QMR coordinates any needed document changes. 4.2.4 Control of Records: Records shall be established and maintained to provide evidence of conformity to requirements and of the effective operation of the quality management system. Records are to remain legible, readily identifiable and retrievable. The procedure defining the controls needed for the identification, storage, protection, retrieval, retention time and disposition of records is shown below. The procedure for control includes records that are created by and/or retained by vendor, as well as those required by customer contract. Buffco Engineering may destroy records beyond the required retention time by shredding and/or placing them in the trash container. The function named as responsible is responsible for ensuring that records are created, maintained and made available in accordance with the table below.

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The records covered by this procedure are shown in the following table. Abbreviations are as follows: Disp Records may be disposed of after years shown, or as

required by contract Resp Person or function responsible for the record Avail Records will be available to those noted QMR Quality Management Representative M Available to Management Q Available to Quality function E Available to Employees (with need to know)

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Records of (identification) Location Resp Avail Disp Quality Management System reviews QA Lab QMR M,Q,E 2 Quote reviews Office Office Manager M 7 Contract, Purchase order and Data reviews

Office Office Manager QMR

M,Q 7

Acceptable Vendors file Office Office Manager M 7 Nonconforming customer supplied product (tag in file)

Office Office Manager M,Q,E 7

Product traceability (Router) Office Office Manager M,Q,E 7 Product Material Traceability P/N on certificate

Office Office Manager M,Q,E 7

Urgent release is not used Inspection and test records (incoming) (Router)

Office Office Manager M,Q,E 7

First Article Inspections QA Lab QMR M,Q,E 7 Inspection and test records (in process) Office Office Manager M,Q,E 7 Preventive Maintenance and Verification of Tooling and Machines in storage

QA Lab QMR M,Q,E 7

Inspection and test records (final router) Office Office Manager M,Q,E 7 Metrology records (measuring and test equipment)

QA Lab QMR M,Q,E 7

Nonconforming product and disposition (including waivers & concessions)

Purchase order file in office

QMR M,Q,E 7

Corrective & Preventive actions including customer complaints, root cause investigations and follow-up

QA Lab QMR M,Q,E 7

Internal audit results Computer system (office)

QMR M,Q,E 7

Training, Education, Skills and experience records

Office Office Manager M,Q,E 7

Purchase order review records Office Office Manager M,Q,E 7 Stamp Log QA Lab QMR

Office Manager M,Q 7

4.3 Configuration Management at Buffco Engineering is maintained in conjunction with customer requirements. As part of contract review activities, the parts or assemblies are reviewed coordinated with the customer. If the revised part or assembly configuration is such that it may not be used to replace the current part or assembly, then the customer is advised as to the configuration change point, current production and stock status. Production records are maintained as records of the configuration. Lots or batches of materials used in production provide traceability to product, as well as configuration information. Material lot numbers and heat batches must be traceable to job traveler and produced parts. 5. MANAGEMENT RESPONSIBILITY: 5.1 Management Commitment: Top management (The President) has provided evidence of its commitment to the development and implementation of the quality management system and continually improving its effectiveness by:

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a) Communicating to the organization the importance of meeting customer as well as statutory and regulatory requirements. At Buffco Engineering, employee training and employee meetings cover these issues and postings on bulletin board

b) Establishing the quality policy as follows: Buffco Engineering will be recognized as a high quality manufacturer of OEM and aerospace products in this region. Buffco Engineering Management is committed to achieve optimum quality through experience, expertise, capability and reliability of the work force. Our focus is continuous improvement and customer satisfaction through quality manufacturing.

c) Buffco Engineering quality objectives are established and reviewed in the top management

review of the quality system and its performance. These objectives may be changed from time to time and are reflected in the minutes of the management meeting. Wherever possible metrics are employed to chart our progress in meeting the quality objectives

d) Management reviews are conducted covering applicable quality issues at least annually. Records of the review are maintained

e) Availability of adequate quality system resources will be included in both management reviews of the quality system and in employee meetings

5.2 Customer Focus: Top management ensures that customer requirements are determined and are met with the aim of enhancing customer satisfaction. 5.3 Quality Policy: Top management has ensured that the quality policy (reference ¶ 5.1b) is appropriate to the purpose of the organization and includes a commitment to comply with requirements and continually improve the effectiveness of the quality management system. Top management also has provided a framework for establishing and reviewing quality objectives in the management review meetings. Top management has ensured that the quality policy and objectives are communicated and understood within the organization. At least annually at the quality system review, the quality policy, this document and quality objectives are reviewed for continuing suitability. 5.4 Planning: 5.4.1 Quality Objectives: Top management has ensured that quality objectives, including those needed to meet requirements for product, are established at relevant functions and levels within the organization. The quality objectives are measurable and consistent with the quality policy. 5.4.2 Quality Management System Planning: Top management ensures that the planning of the quality management system is carried out in order to meet the requirements given in 4.1, as well as the quality objectives. When changes to the quality management system are anticipated, management will plan the implementation of the change so that the integrity of the quality system is maintained. 5.5 Responsibility, Authority and Communication: 5.5.1 Responsibility and Authority: Top management has ensured that the responsibilities and authorities are defined and communicated within the organization. The Quality system will insure that all products purchased, modified, manufactured and ultimately delivered shall meet their intended function and quality level. As such, there will be a continuing

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inspection throughout the manufacturing process. See section 4.1 for manufacturing flow diagram. The receiving inspector will assure that all materials used in the manufacture of Buffco Engineering products conform to applicable purchase orders and/or any other applicable specifications. Material that Buffco purchases for parts will be Rockwell and conductivity tested. Results will be recorded on certs received from supplier. The first part inspector will be responsible for ensuring setup and that first part meets drawing configuration and customer requirements. First part inspectors will fill out the First Article Inspection form when applicable. The in-process inspectors will be responsible for in-process inspection of the products produced. The final inspector will be responsible for final inspection of all products prior to shipment. Each employee has the authority to request changes or improvements to the quality system using the corrective or preventive action process. 5.5.2 Quality Management Representative: The Quality Manager at Buffco Engineering serves as the Quality Management Representative (QMR). In addition to any other responsibilities, the QMR has the responsibility and authority to:

a) Ensure that processes needed for the quality management system are established, implemented and maintained

b) Reporting to top management on the performance of the quality management system and any needs for improvement c) Ensure the promotion of awareness of customer requirements throughout the organization d) Resolves matters pertaining to quality 5.5.3 Internal Communication: Top management has ensured that appropriate communication processes are established within the organization and that communication takes place regarding the effectiveness of the quality management system. Buffco Engineering accomplishes this by periodic employee briefings and/or quality information placed on the bulletin board regarding objectives, goals and quality system audit results. 5.6 Management Review: 5.6.1 General: Top management shall review the organization's quality management system at least annually. This review is conducted to ensure its continuing suitability, adequacy and effectiveness as well as assessing opportunities for improvement and the need for changes to the quality management system, including the quality policy and quality objectives. Records are kept of management reviews. 5.6.2 Review Input: The input to management review includes information on

a) Results of audits b) Customer feedback c) Process performance and product conformity d) Status of preventive and corrective actions e) Follow-up actions from previous management reviews f) Changes that could affect the quality management system

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g) Recommendations for improvement h) Supplier performance

5.6.3 Review Output: The output from the management review includes decisions and actions related to the:

a) Improvement of the effectiveness of the quality management system and its processes b) Improvement of product related to customer requirements c) Resource needs

6. RESOURCE MANAGEMENT: 6.1 Provision of Resources: Buffco Engineering determines and provides the resources needed to implement and maintain the quality management system and continually improve its effectiveness. Management ensures that resources are available to enhance customer satisfaction by meeting customer requirements. 6.2 Human Resources: 6.2.1 Management ensures that personnel performing work affecting product quality are competent on the basis of appropriate education, training, skills and experience. 6.2.2 Competence, Awareness and Training: Buffco Engineering determines the necessary competence for personnel performing work affecting product quality as described above and then provides training or takes other actions to satisfy these needs. Observation of demonstrated ability is used to evaluate the effectiveness of the training and actions taken. This process ensures that Buffco Engineering personnel are aware of the relevance and importance of their activities and how they contribute to the achievement of the quality objectives. Appropriate records of education, training, skills and experience are maintained. 6.3 Infrastructure: Management at Buffco Engineering determines the need for infrastructure resources to achieve conformity to product requirements. These resource needs are obtained through staff meetings and the review of the quality management system. Items considered in employee meetings and management reviews are buildings, workspace and associated utilities, processing equipment and supporting services as appropriate. 6.4 Work Environment: Buffco Engineering provides the work environment needed to achieve conformity to product requirements. This may include control of temperature, humidity, lighting and cleanliness. Quality system audits provide feedback to management on work environment issues. 7. PRODUCT REALIZATION: 7.1 Planning of Product Realization: Buffco Engineering has developed a plan for processes needed for manufacture of product. Planning of product realization is provided on the router, its attachments and referenced documents. This method of producing product planning is consistent with the requirements of the other processes of the quality management system. Buffco Engineering plans product realization taking into account the following items as appropriate:

a) Quality objectives and requirements for the product b) The need to establish processes, documents, and provide resources specific to the product c) Required verification, validation, monitoring, inspection and test activities specific to the

product and the criteria for product acceptance d) Records needed to provide evidence that the manufacturing processes and resulting product

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meet requirements (see 4.2.4) e) The identification of resources to support production

7.2 Customer-Related Processes: 7.2.1 Determination of Requirements Related to the Product: Buffco Engineering has determined product requirements specified by the customer, including the requirements for delivery. Where the customer does not state requirements, but they are found necessary for the specified or intended use, Buffco Engineering documents these requirements. If applicable, Buffco Engineering also makes known and translates into requirements any statutory and regulatory requirements related to the product as well as any additional requirements determined by Buffco Engineering. 7.2.2 Review of Requirements Related to the Product: Buffco Engineering reviews requirements related to the product. This review shall be conducted prior to the organization's commitment to supply a product to the customer. All quotations, contracts and orders, including changes made, are reviewed to ensure that:

a) Product requirements are defined b) Any contract or order requirements differing from those previously expressed are resolved c) Buffco Engineering has the ability to meet the defined requirements d) Risks due to new technology, new processes or short delivery times are evaluated

Records of the results of the review and actions arising from the review are maintained as quality records. Buffco Engineering accepts verbal and documented contracts, orders or requests for quotations. When verbal orders are received they are documented by Buffco Engineering on the order form shown in section 9.0. If product requirements are changed, then Buffco Engineering ensures that relevant documents are amended and that relevant personnel are made aware of the changed requirements. Some customers may relate requirements by supplying a sample part. This is identified as a customer supplied product and is tagged. The data taken from this sample may be used to create a specification sheet, which is assigned a part number if no customer is assigned it and is added to the customer file. 7.2.3 Customer Communication: Buffco Engineering determines and implements effective arrangements for communicating with customers in relation to product information, inquiries, contracts or orders including amendments. Buffco Engineering solicits customer feedback and effectively handles customer complaints. 7.3 Design and Development (Excluded from Scope) 7.4 Purchasing: 7.4.1 Purchasing Process: Buffco Engineering ensures that purchased product conforms to specified requirements. The type and extent of control applied to the vendor and the purchased product is dependent upon the effect of the purchased product on the quality of our product. Buffco Engineering is responsible for the quality of all products purchased from vendors, including any customer-designated sources. Buffco Engineering evaluates and selects vendors based on their ability to supply product in

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accordance with the stated requirements. One or more of the following criterion for selection and evaluation may be used:

a) Existing vendors may be placed on an approved list based on demonstrated good past performance

b) Vendors may be approved, based on proof of a third party registration of their quality system c) Vendors may be approved by successfully completing the Buffco Engineering quality survey d) Vendors may be approved based on knowledge of vendor by management. e) Vendors may be approved based on customer approval.

Vendors are re-evaluated by Buffco Engineering at least annually, based on the performance of the vendor. Records of the results of evaluations and any necessary corrective actions arising from evaluations are maintained as quality records. Buffco Engineering maintains a list of approved vendors that includes the scope of their approval. Vendors to Buffco Engineering are reviewed (re-evaluated) for performance as noted above. The results of these reviews are used as a factor in establishing the level of controls to be implemented. When vendors do not meet requirements, a corrective action request will be issued to the vendor. Any vendor that fails to satisfactorily complete a corrective action request may be removed from the approved vendor’s list. Where required, Buffco Engineering and vendors use customer-approved special process sources. The purchasing function working with the quality function has the responsibility for approving vendor quality systems and has the authority to disapprove the use of sources. 7.4.2 Purchasing Information: Purchase orders or referenced documents describe the product to be purchased, including where appropriate:

a) Requirements for approval of product, procedures, processes and equipment b) Requirements for qualification of personnel c) Quality management system requirements d) The name or other positive identification, and applicable issues of specifications, drawings,

process requirements, inspection instructions and other relevant technical data e) Requirements for design, test, examination, inspection and related instructions for

acceptance by Buffco Engineering f) Requirements for test specimens (e.g., production method, number, storage conditions) for

design approval, inspection, investigation or auditing g) Requirements relative to vendor notification of nonconforming product and arrangements for

the Buffco Engineering approval of vendor nonconforming material h) Requirements for the vendor to notify Buffco Engineering of changes in product and/or

process definition and, where required, obtain Buffco Engineering approval i) Right of access by Buffco Engineering, the customer of Buffco Engineering, and regulatory

authorities to all facilities involved in the order and to all applicable records j) Requirements for the vendor to flow down to sub-tier vendors the applicable requirements in

the purchasing documents, including key characteristics where required

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Buffco Engineering ensures the adequacy of specified purchase requirements prior to communication to the vendor. The name in the “Purchasing Agent” portion of purchase order indicates that the purchase documents were reviewed and approved. 7.4.3 Verification of Purchased Product: Buffco Engineering has established and implemented inspection or other activities necessary to ensure that purchased product meets specified purchase requirements. Buffco Engineering verification activities may include as applicable:

a) Obtaining objective evidence of the quality of the product from vendors including: accompanying documentation, certificate of conformity, test reports, statistical records and process control records

b) Inspection and audit at vendor’s premises c) Review of the required documentation d) Inspection of products upon receipt

Purchased product shall not be used or processed until it has been verified as conforming in accordance with the plan for the product. Where Buffco Engineering utilizes test reports to verify purchased product, the data in those reports must be acceptable per applicable specifications. Where Buffco Engineering or the customer of Buffco Engineering intends to perform verification at the vendor’s premises, these verification arrangements and the method of product release is contained in the purchasing information. Where specified in the contract, the customer or the customer’s representative shall be afforded the right to verify at the vendor’s premises and the organization’s premises that the subcontracted product conforms to specified requirements. Verification by the customer is not used by Buffco Engineering as evidence of effective control of quality by the vendor and shall not absolve Buffco Engineering of the responsibility to provide acceptable product, nor does it preclude subsequent rejection by the customer. 7.5 Production and Service Provision: 7.5.1 Control of Production and Service Provision: Buffco Engineering considers the following when planning the manufacture of product:

a) The establishment of process controls and development of control plans where key characteristics have been identified

b) The identification of in-process verification points when adequate verification of conformance cannot be performed at a later stage of realization

c) The design, manufacture, and use of tooling so that variable measurements can be taken, particularly for key characteristics

d) The qualification of operators or monitoring of special processes, where results cannot be confirmed by direct inspection or test

Buffco Engineering plans and carries out production in accordance with the applicable procedures and operations in sequence on the router. Production controlled conditions include, as applicable the:

a) Availability of information that describes the characteristics of the product b) Work instructions on the work order router, as necessary

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c) Use of suitable equipment d) Availability and use of monitoring and measuring devices as needed e) Implementation of monitoring and measurement as required by the product f) Implementation of release and delivery of products g) Accountability for all product during manufacture (e.g., part quantities, split orders, and

nonconforming product) h) Evidence that all manufacturing and inspection operations have been completed as planned

or as otherwise documented and authorized i) Provision for the prevention, detection, and removal of foreign objects j) Monitoring and control of utilities and supplies such as water, compressed air, electricity and

chemical products to the extent they affect product quality k) Criteria for workmanship, which is described in written standards, representative samples or

illustrations l) Machine maintenance is monitored through daily check list located on each machine.

7.5.1.1 Production Documentation: Production operations are carried out in accordance with approved data. This data shall include as necessary:

a) Drawings, parts lists, process flow charts including inspection operations, production

documents, including the router and it's attachments and inspection documents b) A list of specific or non-specific tools and/or numerical control (NC) machine programs

required and any specific instructions associated with their use 7.5.1.2 Control of Production Process Changes: The President and Production Manager are authorized to approve changes to production processes. Buffco Engineering obtains approval of changes that require customer and/or regulatory authority approval in accordance with contract or regulatory requirements. Changes affecting processes, production equipment, tools and programs are documented. The procedure for making changes is as follows: An operator or employee may request that a change be made. The Production Manager or President will review the request and determine if the change is desirable.

a) A Planning Change Request will be completed by operator or employee b) If the change is critical to fit, form or function, the PCR will be taken to planning after

approval c) The planner will red-line makes necessary changes to the traveler, stamp and date the

changes d) At the completion of the production run, the PCR is transferred to the planning department to

change master planning for the affected part number The quality function or the process owner confirms that the desired effect has been achieved without adverse effects to product quality. 7.5.1.3 Control of Production Equipment, Tools and Numerical Control (NC) Machine Programs: Production equipment, tools and programs shall be validated prior to first use and maintained and re-validated periodically according to documentation on the router. Validation prior to production use includes verification of the first article produced to the design. At least annually tools and production equipment in storage shall be checked to ensure that they are being preserved without damage or deterioration.

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7.5.1.4 Control of work transferred, on a temporary basis, outside of the Buffco Engineering facility: Buffco Engineering does not process work outside the facility. 7.5.1.5 Control of Service Operations: Buffco Engineering does not provide contracted servicing or work in a customer’s facility. 7.5.2 Validation of Processes for Production and Service Provision: Buffco Engineering validates any processes for production where the resulting output cannot be verified by subsequent monitoring or measurement. This includes any processes where deficiencies become apparent only after the product is in use or the service has been delivered. The validation method used demonstrates the ability of these processes to achieve planned results. The organization shall establish arrangements for these processes including, as applicable:

a) Defined criteria for review and approval of the processes including qualification and approval of special processes prior to use where required

b) Approval of equipment and qualification of personnel c) Use of specific methods and procedures to control the significant operations and parameters

of special processes in accordance with documented process specifications d) Requirements for quality records e) Any revalidation requirements if required

7.5.3 Identification and Traceability: Where practical Buffco Engineering identifies the product by markings applied to the product, tag or container. During the manufacturing process the product may be identified by the router accompanying the product. Buffco Engineering maintains the identification of the configuration of the product in order to identify any differences between the actual configuration and the agreed configuration. Buffco Engineering identifies the product status with respect to completion of monitoring and measurement requirements, by appropriate approvals on the router or tag applied to product in inventory. When stamps, electronic signature or initials are used to indicate acceptance authority, Buffco Engineering indicates that approved authority on a list that is maintained as a quality record. No stamp, electronic signature or set of initials may be re-issued for a period of at least six months after that media has been cancelled or revoked. When stamps are issued, a stamp control log must be maintained. (Ref Form BFC-003)

a) All quality personnel will be issued stamps with no restrictions b) The office manager and shipping personnel will be issued a stamp for multiple usages. i.e.,

stamping parts after part mark, stamping shippers, etc. c) Designated production personnel as selected by the Quality Manager and President of the

company will be issued stamps as authorized inspection only 1. Production personnel may not inspect (buy off) new production run parts 2. Production personnel may not buy off their own work. In the event quality assurance

personnel are not available, their inspection of their own work may be verified by one other production personnel

Where traceability is a requirement, Buffco Engineering controls and records the unique

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identification of the product or lots as a quality record. According to the level of traceability required by contract, regulatory, or other established requirement, the system provides for:

a) Identification to be maintained throughout the manufacture and delivery b) All the products manufactured from the same batch of raw material or from the same

manufacturing batch to be traced, as well as the destination (delivery, scrap) of all products of the same batch

c) For an assembly, the identity of its components and those of the next higher assembly to be traced

d) For a given product, a sequential record of its production (manufacture, assembly, inspection) to be retrieved

7.5.4 Customer Property: Buffco Engineering exercises care with customer property while it is under our control. Buffco Engineering identifies, verifies, protects and safeguards customer property provided for use or incorporation into the product. If any customer property is lost, damaged or otherwise found to be unsuitable for use, it will be reported to the customer and quality records will be maintained. Customer property can include intellectual property, including customer-furnished data used for design, production and/or inspection. 7.5.5 Preservation of Product: Buffco Engineering preserves the conformity of product during internal processing and delivery to the intended destination. This preservation includes identification, handling, packaging, storage and protection. Preservation also applies (if appropriate) to the component parts of a product. Preservation of product includes, where applicable in accordance with product specifications and/or applicable regulations, provisions for:

a) Prevention, detection and removal of foreign objects b) Marking and labeling including safety warnings c) Shelf life control and stock rotation d) Special handling for hazardous materials

Buffco Engineering ensures that documents that are required to accompany the product, by the contract or order are present at delivery and are protected against loss and deterioration. 7.6 Control of Monitoring and Measuring Devices: Buffco Engineering determines the monitoring and measurement to be undertaken and the monitoring and measuring devices needed to provide evidence of conformity of product to specified requirements. Buffco Engineering maintains a binder which serves as a register of measuring devices that defines the process employed for their calibration including details of equipment type, unique identification, location, frequency of checks, check method and acceptance criteria. The list of devices includes as applicable, test hardware, test software, automated test equipment and plotters used to produce inspection data. It also includes personally owned and customer supplied equipment used to provide evidence of product conformity. Buffco Engineering uses processes to ensure that monitoring and measurement can be carried out in a manner that is consistent with the measurement requirements. Additionally, Buffco Engineering ensures that environmental conditions are suitable for the calibrations, inspections, measurements and tests being performed.

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Where necessary to ensure valid results, measuring equipment is:

a) Calibrated or verified at specified intervals on the list, or prior to use, against measurement standards traceable to international or national measurement standards; if no such standards exist, the basis used for calibration or verification is recorded adjusted or re-adjusted as necessary

b) Identified to enable the calibration status to be determined c) Safeguarded from adjustments that would invalidate the measurement result d) Protected from damage and deterioration during handling, maintenance and storage e) Re-called by the quality function when calibration is due, or damage is noted

In addition, the quality function assesses and records the validity of the previous measuring results if the equipment is found not to conform to requirements. Buffco Engineering will take appropriate action for the equipment and any product affected. Records of the results of calibration and verifications are to be maintained as quality records. 8. MEASUREMENT, ANALYSIS AND IMPROVEMENT: 8.1 General: Buffco Engineering plans and implements the monitoring, measurement, analysis and improvement processes required to:

a) Demonstrate conformity of the product b) Ensure conformity of the quality management system c) Continually improve the effectiveness of the quality management system

This includes determination of applicable methods, including statistical techniques, and the extent of their use. According to the nature of the product and depending on the specified requirements, Buffco Engineering may use statistical techniques to support:

a) Design verification (e.g., reliability, maintainability, safety) b) Process control c) Selection and inspection of key characteristics d) Process capability measurements e) Statistical process control f) Design of experiment g) Inspection - matching sampling rate to the criticality of the product and to the process

capability h) Failure mode and effect analysis

8.2 Monitoring and Measurement: 8.2.1 Customer Satisfaction: As one of the measurements of the performance of the quality management system, Buffco Engineering may monitor information relating to customer perception as to whether or not we have met customer requirements. Buffco Engineering may use a questionnaire which may be administered by phone, mail or e-mail to obtain this information. 8.2.2 Internal Audit: Buffco Engineering conducts internal audits in accordance with the internal audit schedule to determine whether the quality management system is conforming to the planned arrangements.

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This includes a review of conformance to the requirements AS9100 (b) and this manual. The purpose of the audit is to demonstrate that the quality system is effectively implemented and maintained. The internal audit schedule is made taking into consideration the status and importance of the processes and areas to be audited, as well as the results of previous audits. The QMR defines the audit criteria, scope, frequency and methods. Selection of auditors and the conduct of the audits ensure objectivity and impartiality of the audit process. Approved auditors are Quality Assurance Manager and the Office Manager. Auditors shall not audit their own work. The QMR establishes the responsibilities and requirements for planning and conducting audits and for reporting the results. Audit plans, observation forms, checklists and resulting corrective and/or preventive action requests are maintained as quality records. The management responsible for the area being audited ensures that actions are taken without undue delay to eliminate detected nonconformities and their causes. Follow-up audit activities may include the verification of the actions taken and the reporting of verification results on the corrective and preventive action form. Check sheets and process flowcharts are developed to support audit of the quality management system requirements. The acceptability of the selected tools is measured by evaluation of the effectiveness of the internal audit process and overall organization performance. The scope of the internal audits shall also include Buffco Engineering's demonstrated ability to meet contract and/or regulatory requirements. The Internal audit schedule and forms are listed in section appendix A to this manual. 8.2.3 Monitoring and Measurement of Processes: Buffco Engineering uses suitable methods for monitoring and measurement of the quality management system processes. The monitoring and measurement activities are included in the process maps that are a part of this manual. These methods demonstrate the ability of the processes to achieve planned results. If planned results are not achieved, correction and/or corrective action shall be taken, as appropriate, to ensure conformity of the product. In the event of process nonconformity, Buffco Engineering will:

a) Take appropriate action to correct the nonconforming process b) Evaluate whether or not the process nonconformity has resulted in product nonconformity c) Identify and control the nonconforming product in accordance with paragraph 8.3

8.2.4 Monitoring and Measurement of Product: Buffco Engineering monitors and measures product characteristics to verify that product requirements have been met. This is carried out in accordance with the router. If key characteristics have been identified, they are monitored and controlled. Buffco Engineering uses first article inspection, operators do periodic inspections while in process and we do a final inspection which includes 100% visual inspect as a means of product acceptance. The plan is statistically valid and appropriate for use. The plan does not allow the acceptance of lots whose samples have known nonconformities. When required by contract, the plan shall be submitted for customer approval. No product is shipped or used until it has been inspected or otherwise verified as conforming to specified requirements. Evidence of conformity with the acceptance criteria shall be maintained. Quality records shall indicate the person(s) authorizing release of product. No product will be delivered until all the operations on the router have been satisfactorily completed, unless otherwise approved by the

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customer. 8.2.4.1 Inspection Documentation: Measurement requirements for product acceptance are documented on the router and/or its attachments or referenced documents. Information provided includes:

a) Criteria for acceptance and/or rejection b) Where in the sequence measurement and testing operations are performed c) A record of the measurement results d) The type of measurement instruments required and any specific instructions associated with

their use Test records shall show actual test results data when required by the router or its attachments. Where required to demonstrate product qualification, the organization shall ensure that records provide evidence that the product meets the defined requirements. 8.2.4.2 First Article Inspection: Buffco Engineering provides for first article inspections. A representative part from the first production run is verified and the results recorded in accordance with the router. A new first article inspection is required following any subsequent change that invalidates the previous first article inspection result. 8.3 Control of Nonconforming Product: Buffco Engineering ensures that a product which does not conform to requirements is identified and controlled to prevent its unintended use or delivery. Nonconforming product includes nonconforming product returned from a customer. Nonconforming products shall be conspicuously marked to prevent unintended use. The nonconforming product shall be dispositioned by the QMR, who is approved by the President. The controls and related responsibilities and authorities for dealing with nonconforming product shall be defined as follows: The QMR may disposition product in one or more of the following ways:

a) By ensuring action is taken to eliminate the detected nonconformity b) By authorizing its use, release or acceptance under concession by a relevant authority and,

where applicable, by the customer c) By taking action to preclude its original intended use or application

Buffco Engineering will not use dispositions of use-as-is or repair, unless specifically authorized by the customer. Product dispositioned for scrap shall be conspicuously and permanently marked, or positively controlled, until physically rendered unusable. Records of the nature of nonconformities and any subsequent actions taken, including concessions are maintained as a quality record. If nonconforming product is corrected it is re-verified to demonstrate conformity to the requirements. If nonconforming product is detected after delivery or use has started, Buffco Engineering will take action appropriate to the effects, or potential effects, of the nonconformity. In addition to any contract or regulatory authority reporting requirements, the control of nonconforming product shall provide for timely reporting of delivered nonconforming product that

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may affect reliability or safety. Notification to concerned parties shall include a clear description of the nonconformity that includes as necessary, parts affected, customer and/or organization part numbers, quantity, and date(s) delivered. 8.4 Analysis of Data: Buffco Engineering determines, collects and analyzes data to demonstrate the suitability and effectiveness of the quality management system and to evaluate where continual improvement of the effectiveness of the quality management system can be made. This includes data generated as a result of monitoring and measurement and from other relevant sources. The analysis of data provides information relating to:

a) Customer satisfaction b) Conformity to product requirements c) Characteristics and trends of processes and products including opportunities for preventive

action d) Vendors

8.5 Improvement: 8.5.1 Continual Improvement: Buffco Engineering strives to 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. 8.5.2 Corrective Action: Buffco Engineering takes action to eliminate the cause of nonconformities in order to prevent recurrence. Corrective action taken is appropriate to the effects of the nonconformities encountered. The procedure defining requirements for corrective action is shown below. All proposed corrective action is reported to the QMR on the Corrective/Preventive Action Request and Customer Feedback Form (CPAR). This form is also used to report customer feedback, including customer complaints. The instructions for the use of this form are contained on the form itself. Any correction, customer complaint or requested corrective action is assigned a control number by quality and tracked to completion of the activity. Management will review corrective action status as well as summaries of reports of product nonconformity and scrap that are provided by the quality function. The use of the form ensures that the causes of nonconformities are determined and documented. The need for corrective action to ensure that nonconformities do not recur and the determination and implementation of action needed is documented on the form. The record of implementation and the evaluation of the results of action taken are kept on the form as a quality record. The form also provides for the review and verification of the effectiveness of the corrective action taken. Buffco Engineering will issue a corrective action request to a vendor when it is determined that the vendor is responsible for the root cause, using the CPAR form. If it is found that corrective actions are not closed in the times agreed or that corrective actions are not effective, top management will take direct action to ensure that the corrective action system integrity is not compromised. 8.5.3 Preventive Action: Buffco Engineering determines what action is required to eliminate the causes of potential nonconformities in order to prevent their occurrence. Preventive actions are appropriate to the magnitude of the potential problems. The procedure defining requirements for preventive action is

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shown below. All proposed preventive actions may be documented on Corrective/Preventive Action Request and Customer Feedback Form (CPAR), or ongoing ones may be documented in monthly meetings. The instructions for the use of this form are contained on the form itself. All requested or preventive action requests are assigned a control number by quality and tracked to completion of the activity. Management will review preventive action status provided by the quality function. The use of the form ensures that the causes of potential nonconformities are determined and documented. The need for preventive action to ensure that nonconformities do not occur and the determination and implementation of action needed is documented on the form. The record of implementation and the evaluation of the results of action taken are kept on the form as a quality record. The form also provides for the review and verification of effectiveness of the preventive action taken. If it is found that preventive actions are not closed in the time agreed to or that preventive actions are not effective, the QMR will report those findings to top management. Top management will take direct action to ensure that the preventive action system integrity is not compromised.

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Appendix A EXAMPLES OF CURRENT FORMS REFERENCED IN THIS QUALITY MANUAL OR USED IN THE CONTINOUS QUALITY IMPROVEMENT.

1) Planning Change Request (Form BFCO-001) 2) Key Characteristics Check Sheet (Form BFCO-002) 3) Stamp Log (Form BFCO-003) 4) Rockwell Test Record (Form BFCO-004) 5) First Article Inspection (Form BFCO-005) 6) Corrective Preventive Action Request (Form BFCO-006) 7) Internal Audit Schedule (Form BFCO-007) 8) Internal Audit Observation (Form BFCO-008) 9) Calibration Record (FORM BFCO -009) 10) Supplier Corrective action Request (Form BFCO-010) 11) First Article Inspection Log (Form BFCO-011) 12) Employee Training Records (Form BFCO-012) 13) Router Sample 14) Purchase Order Sample 15) Cessna form X-100 SRDR (Used to submit non-conforming parts that are not obvious scrap) 16) Repairable or Rework Tag Sample 17) Rejected Tag Sample

Appendix B EXAMPLES OF STANDARD OPERATING PROCEDURES

1) Type 1 Non-Critical Cleaning (PROCEDURE REF. TOOL-001) 2) Receiving Inspection of Purchased Metals (PROCEDURE REF. TOOL-002) 3) Bearing Installation, Wet (PROCEDURE REF. TOOL-003) 4) Nutplate Installation (PROCEDURE REF. TOOL-004) 5) Job Traveler Work Instruction and Clocking (PROCEDURE REF. TOOL-005) 6) Job Splits (PROCEDURE REF. TOOL-006) 7) Tool Calibration (PROCEDURE REF. TOOL-007) 8) Control Of Nonconforming Product (PROCEDURE REF. TOOL-008) 9) Training (PROCEDURE REF. TOOL-009) 10) Corrective and Preventive Action Request (CPAR) (PROCEDURE REF. TOOL-010)

Appendix C QUALITY SPECIAL MEDIA AND TOOLS FOR CONTINUOUS QUALITY IMPROVEMENT

1) One seat of CatiaV5 for model analyzing, producing shop aids and programming as required. 2) Starrett Coordinate Measuring Machine for part configuration verification. 3) PCDMIS V4.2 media for Starrett CMM operation. 4) Job Boss for detailed planning and time keeping. 5) Fowler Height Gauge for parts verification. 6) Air Bore Gauge for parts verification with high tolerance diameters.