NADCAP NEWSLETTER

MARCH 2018

C O N T E N T S

1 AdvantagesofAccreditation fromaSubscriberPerspective

4 Nadcap CT Audit Insight

9 OP 1118 - Audit Observer

10 RevisedRiskMitigation Process

14 A view from the SSC LT

WELCOME TO THE NINTH ISSUE

ADVANTAGES OF ACCREDITATION FROM A SUBSCRIBER PERSPECTIVEThe Nadcap Subscribers have been playing a pivotal role, driving the Nadcapprogramsinceitsinception.RichardBlyth,ChairoftheNadcapManagement Council and Engineering Manager for Rolls-Royce Plc, shareshisperspectiveontheadvantagesofNadcapaccreditation fromtheSubscriberperspective. Continued on next page

ThisistheninthissueofthisNadcapnewsletter.PRIhasbeenpublishingandsharingthiscontentsinceSeptember2015.Iwouldliketothankeveryonewhohasgivenusfeedbacktohelpimprovethisnewsletter,andforthepositivecommentsmystaffandIhavereceivedonthecontenttodate.

TheintentofthenewslettercontinuestobetodevelopcontentforcompaniesthatarenotnormallyabletosendarepresentativetoNadcapmeetings,tosharetechnicalinformationandknowledgethatwillhelpthembetterprepareforaNadcapauditandunderstandhowtoutilizeNadcapeffectivelytoimprovetheirperformance.

EachnewsletterincludesarticlesdesignedforthewholeNadcapSuppliercommunity.Inthisissue,thereisanarticleabouttheadvantagesofNadcapaccreditationfromaSubscriberperspective,andoneexplainingtheauditobservationprocess,asdescribedinOP1118.AlsohighlightedistherevisedRiskMitigationprocess,followinganarticleonthesamesubjectintheNovember2016newsletter.Finally,thereisanarticlefocusingontheviewaboutNadcapfromtheSupplierSupportCommitteLeadershipTeam.

InadditiontogeneralNadcaparticles,eachnewsletterhasaparticulartechnicalfocus.Inthisissue,thereisdetailedinformationregardingNadcapCoatings(CT).Morethan140NadcapCTauditsareconductedannually,yetweknowthatmanypeoplearenotabletoattendNadcapmeetingsandbenefitfromfreetrainingandotherinformationsharedthere.

Ihopeyoucontinuetofindthecontentvaluable.

JosephG.PintoExecutiveVicePresident&ChiefOperatingOfficerPerformanceReviewInstitute

I N B R I E F. . .

Nadcap is an approach to conformity assessment that brings together technical expertsfromIndustrytomanage the program by establishing requirements foraccreditation,accreditingSuppliersanddefiningoperationalprogramrequirements.Thisresultsinastandardizedapproachto quality assurance and areductioninredundantauditingthroughouttheaerospaceindustry.

Nadcap is administered by the Performance Review Institute(PRI),anot-for-profitorganizationheadquartered in the USA withsatelliteofficesinEuropeandAsia.

www.p-r-i.org/Nadcap/

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ADVANTAGES OF ACCREDITATION FROM A SUBSCRIBER PERSPECTIVEContinued from previous page

Nadcap seen from a Subscriber’s organization perspective

How has Nadcap impacted your organization and its internal quality systems?

AfterjoiningNadcapin1994,Rolls-RoycerealizedthatfromtheinitialauditsperformedbyNadcapinourinternalfacilities,itwasclearthatourcontrollingspecificationsweresignificantlydifferentfromthenationalandinternationalspecificationsandindustrybestpractice.Theseaudits,andsubsequentdeviationpermitsshoweduswhatchangesweneededtomake.Roll-Roycehascontinuedtoupdateitsspecificationsonanongoingbasisor,whenrequired,questiontheNadcap requirements to ensure Quality remains a high priority.

TherehavebeennumerousbenefitsthattheNadcapaudit process has given Rolls-Royce, the main one being increasingtheprofileofSpecialProcessQualitywithintheorganization.Withthefocusontraining,control,cleanliness, operator competency and consistency that the Nadcap audits bring, Rolls-Royce has managed to greatly increase the investment in the Special Process facilitiesandhence,thecontrolandqualityoftheprocesses.

How has Nadcap impacted your organization and its external quality systems?

Externally,Rolls-RoycehasreducedthenumberofmaintenanceauditsofSpecialProcessSupplierstozero.WearenowreliantonNadcapauditsandresults.Everytwoweeks,theglobalRolls-RoyceExternalLaboratoryreviews all Nadcap audits and focuses on the high riskRolls-RoyceSuppliers.Wefullyutilizethenon-conformances(NCRs)andcommunicationsbetweenPRIandtheSupplierstodeterminetherisktoourproducts.Therefore,theexternallyfacingteamshavesignificantlyreducedcostsandfreeduptimetofocusontheQuality,CostandDeliveryaspectsofthebusiness.

TheUKAirworthinessAuthoritiesawarenessoftheNadcapprogramhasincreasedsignificantlyoverthelastsevenyears.DiscussionwiththeCivilAviationAuthority(CAA)aboutNadcapandtheeffectivenessoftheauditshascontinuedtoimproveandincrease.ThishasledtomoreconfidencebytheCAAintheNadcapauditresultsand Rolls-Royce is able to use the Nadcap audits to show itssupplychainisincontrol.

Nadcap and its Supplier network

How has the Nadcap program helped improve the homogeneity of Special Processes monitoring methods and moved toward globalization?

Working toward having industry consensus audit requirementsthatsatisfyallparticipantsoftheNadcapprogram,i.e.Subscribers,SuppliersandGovernmentbodies,homogeneityiscrucialtoNadcap.AstheNadcapauditprocessutilizesthesamequestionnairesand auditors are trained to the same processes and procedures, consistency is a key aspect of the program wecontinuetoimprove.

Consistentauditingusingindustrydevelopedchecklistsis leading to a higher level of quality at a much lower costfortheSubscribers.GiventhenumberofSupplierauditshasreduced,inthecaseofRolls-Roycetozero,this allows the technical teams to focus on improvement activities.

Has Nadcap made it easier for Subscribers to find competent Suppliers and track Suppliers’ performance?

This level of quality is seen through the Aerospace ‘QualifiedManufacturesList’(QML),availableunderResourcesoneAuditNet,whichhelpsfindingcompetentSupplierswithasolidqualitybase.TheRolls-Roycetwo weekly global review of failed Supplier audits and Supplier advisories makes understanding the competency and risks of our global supply chain much easier.Wethenusethisinformationtodevelopan

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understanding of the global supply chain and how it alignstoRolls-Royce’sstrategy.With the global network of technical individuals and auditors that Nadcap has developed over the last 28 years, and the consistency in the Supplier audits, Rolls-RoycehasahighlevelofconfidenceintheNadcapapprovedsupplychain.

What is Rolls-Royce’s biggest learning point related to Nadcap and how does Rolls-Royce see the Nadcap program within its approach to Quality for the next few years?

Our biggest learning related to Nadcap is about our specificationsasthesearenotperfectandwecanutilizetheNadcapprograminallofitsguisestoimproveourprocessesandprocedures.TheNadcapprogram is absolutely key to our Quality and Technical processes.TheNadcapconferencesanddiscussionsintheTaskGroupscontinuetoenableustoimproveourspecificationsandsystems.

Theobjectivefor2018istofullyalignRolls-RoycespecificationswithglobalrequirementsthroughtheNadcapquestionnairesasthisshouldmaketheRolls-Roycesupplychainmoreefficientandeffectiveatlowercost.Thiswillhelpmaketheorganizationmoreagilein the event of changes in standards in the industry or eveninternalchanges.Additionally,astheSubscriberAccreditationprocessisindependentandentirelyobjective,theorganizationgetsanunbiasedviewofitsprocessesandsystemsthroughNadcap.

Standardization in the Aerospace Market

How does Nadcap help standardize the aerospace market through working towards checklists aligned with the industry’s standards agreed by all participants?

StandardizationandconsistencyaredrivenbytheNadcapprocessintheRolls-Roycesupplychain.Standard checklists derived from the industry

specificationsdriveseveryonetobeconsistent.AsaSubscriber, Rolls-Royce perceives its role as developing theeffectivenessandefficiencyoftheNadcapprogramfor all groups involved, Suppliers, Subscribers, Nadcap staffandAuditors.

How is the Nadcap standardized approach included in your supply chain policy and practices?

The Rolls-Royce Nadcap requirements are embedded in both the internal Quality Management System and our externallyfacingsupplierrequirementsintheSupplierAdvancedBusinessRelationshipdocument(SABRe).Therequirementsinternallyandexternallyareidenticalto ensure we have consistency of delivery of Special Processes.Internally,thenumberofNCRsraisedduringNadcapauditshasdecreasedyearonyear.

In the early days of the program, it was all about mandatingtheTaskGrouprequirementsanddrivingthe Nadcap processes and procedures whereas now, it ismoreaboutdevelopingandimprovingtheprogram.ThenextbigchallengesfortheprogramaretoensureNadcapremainsaglobalorganizationthatthesupplychaincantrustandtheinformationitholdsisusefulanduseable.Nadcapneedstoremainattheforefrontof emerging technologies and ensure they have the skillsandexpertisetodevelopnewchecklists. We, as Subscribers, need to allow Nadcap to develop Suppliersincountriesnewtotheaerospaceindustry.Moreefficientandeffectiveauditingisrequiredandto do this, improvements in training and clear audit checklists are needed as this will lead to improved consistency.Whilstallthesenewinitiativesareimplemented, Nadcap needs to ensure they have the capacity to cope with the increased load and the successionplanningofitsstaff.

In conclusion, Rolls-Royce is totally committedtotheNadcapprogramas

Continued on next page

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itcanbeseenbythenumberofrepresentativesthatwehaveontheTaskGroups,representationontheNadcapManagementCouncilandthePRIBoardofDirectors. We have also been heavily involved in the latest Task Groupsthathavebeendeveloped.ThebenefitsthatNadcapachievesforboththeInternalandExternalsupplychainareextensiveandtherefore,Rolls-RoycewillcontinuetobeasignificantpartoftheNadcapprogramandwillutilizealloftheoutputstocontinuallyimproveitselfanditssupplychain.

IfyouhaveanyquestionsaboutNadcap,pleasecontactScottKlavon:

TheNadcapCoatings(CT)TaskGroupwasestablishedin1995 and is currently led by Chairperson Udo Schuelke of Honeywell Aerospace, supported by Vice Chairperson, JoelMohnackyofUTCAerospace(Goodrich).TheCoatingsTaskGroupauditsaerospacefacilitiesperformingcoatingprocessing.WithintheTaskGroup,therearecurrently32industryrepresentatives–19NadcapSubscriberrepresentativesfrom11companiesand13Supplierrepresentativesfrom9companieswhoactivelyparticipateinthetechnicaldiscussionsanddecisionmaking.

MuchofthisactivitytakesplaceattheNadcapmeetingsthatareheldthreetimesperyear,buttheTaskGrouprecognizesnotallindustrystakeholdersareabletoparticipateandbenefitfromtheopportunitiesthemeetingsoffer,suchaslearning,debatingandnetworking.

Consequently,thisarticleisintendedtoassisttosomedegree, by providing insights and sharing lessons learnedregardingtheNadcapCTauditexperience.

What are Coatings in relation to Nadcap?

TheNadcapCTTaskGroupdefinitionofcoatingsisasmallsubsetofwhatwouldbeconsideredacoatinginrealworldapplications.Whenlookingatcoatingsbasedontheeverydaydefinitionoftheterm,mostpeoplewouldthinkaboutprocessessuchaspainting,plating,andanodizing.However,withinNadcap,theseapplicationtechniquesactuallyfallwithintheChemicalProcessing(CP)TaskGroup.TheCTTaskGroupfocusesspecificallyonthreetypesofcoatingtechnologyusedtoapplyametalorceramiccoatingonametalsubstrate.These technologies consist of Thermal Spray, Vapor Deposition,andDiffusionCoatingapplications.

Thermal Spray involves the use of a high temperature heat source to melt a wire or powder as it is fed into that heatsource.Themeltedparticlesarecarriedthroughtheflameorbeamtothesubstratesomedistanceaway.Upon coming into contact with the surface of the

ACCREDITATION FROM A SUBSCRIBER PERSPECTIVEContinued from previous page

NADCAP CT AUDIT INSIGHT

ScottKlavon Director, Nadcap Program and AerospaceOperations

T:+1 724 772 7111 sklavon@p-r-i.org

Richard Blyth Nadcap Management Council Chairperson and Engineering Manager for Rolls-Royce Plc

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substrate,thecoatingmaterialcoolsandsolidifiesonthesurface.WithinThermalSpray,theCTTaskGroupcurrentlyaccreditsfacilitiestoperformcoatingsusingOxyFuel,HVOF/HVAF(HighVelocityOxyFuel/HighVelocityAirFuel),Plasma,LPPS(LowPressurePlasmaSpray),ElectricArc,andDetonationGunapplications.Thesetechnologiesdifferbasedonthetypeofmaterial(powderversuswire),meltingmethod,anddeliverytechnique.

VaporDepositionisaprocesswherepartsareloadedintoacoaterwithacoatingmaterial,ensuringthereissufficientspacingsotheareastobecoatedarenotshieldedinanyway.Thecoatingmaterialisthenheateduntilagasvaporisformed,andthevaporfillsthechamber.Uponcomingintocontactwiththesubstratesurface,thevaporcoolsanddepositsasathincoating.Thisvapordepositioncaneitherbeaccomplishedthroughaphysicalheatingofthecoatingmaterial(PhysicalVaporDeposition–PVD)orchemicalreactionofthecoatingmaterial(ChemicalVaporDeposition–CVD).PVDcanbeaccomplishedviaArc,Sputtering,orElectronBeam,whichdifferintermsofthemethodofheatingandthecoatingmaterialtype.

DiffusionCoatingsareasubsetofcoatingsthatcanbeaccomplishedviaavarietyoftechnologies.ThedistinguishingcharacteristicforDiffusionCoatingsisthatunlikeThermalSprayandVaporDeposition,whichformacoatingwithadistinctinterfacewiththesubstratethatisonlyamechanicalbondbetweenthetwo,diffusioncoatingsinteractwiththesubstrateandbeingtodiffuseintothesurface,creatinganintermediatelayerthatiscomposedofboththecoatingandsubstratematerials. DiffusionCoatingsareprocessedbyeitherplacingthepartsinoraboveapackcoatingmaterialinatraditionaldiffusionreactor.DiffusioncanalsobeperformedusingCVDforaluminidecoatingsorafterSlurryapplication.Inallcases,thegeneralconceptisthatthecoatingmaterialappliedtothesurfaceandsubsequentheatingallowsthematerialtodiffuseintothesurfacecreatingadiffusionbond.

Coatings Audit Criteria

The CT audit criteria is comprised of the AC7109 series of checklists, which can be found on eAuditNet under Resources/Documents/AuditCriteria/Coatings(AC7109).AC7109isthecorechecklistandisrequiredforeveryNadcapCTauditthatisperformed.Thisdocument covers general requirements that are relevant forallAuditees.TheCTTaskGrouphasdevelopedeightadditionalcheckliststocoverthevariousspecialprocessescoveredwithinaCTaccreditation.Thesechecklistsare:

AC7109/1–NadcapAuditCriteriaforThermalSpray AC7109/2–NadcapAuditCriteriaforVaporDeposited Coatings

AC7109/3–NadcapAuditCriteriaforDiffusionCoating

AC7109/4–NadcapAuditCriteriaforStrippingof Coated Material

AC7109/5–NadcapAuditCriteriaforCoating Evaluation

AC7109/6–NadcapAuditCriteriaforPlatingofCoated Parts AC7109/7–NadcapAuditCriteriaforHeatTreatingfor SuppliersofCoatings

AC7109/8–NadcapAuditCriteriaforGrindingof CoatingsasaSpecialProcess

TobeeligibleforaNadcapCTauditandaccreditation,theAuditeemustperformoneofthethreecoatingsapplicationstechnologies(ThermalSpray,VaporDeposition,and/orDiffusionCoatings).Thus AC7109/1,AC7109/2,orAC7109/3mustbe included to become accredited by the Nadcap CTTaskGroup.Theotherchecklists supplementthesethreechecklists.

Continued on next page

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Memoranda of Understanding

The CT Task Group currently has three Memoranda of Understanding(MoUs)withotherTaskGroupsoverthecreationanduseofchecklists.TheseMoUshavebeendeveloped to limit the number of audits necessary and costassociatedwithmultipleaccreditationswhenthereissignificantoverlapbetweentheworkperformedwithinvariousTaskGroups.ThecurrentlistofTaskGroup MoUs, including details of each MoU, can be foundoneAuditNetunderResources/Documents/PublicDocuments/GeneralDocuments/MOUMatrix.

ThefirstMoUiswiththeMaterialTestingLaboratories(MTL)TaskGroupfortheuseoftheAC7109/5checklist.This MoU allows the MTL Task Group to use this checklist during MTL audits to accredit independent laboratorieswhichperformcoatingevaluation.

The CT Task Group also has an MoU with the Chemical Processing(CP)TaskGrouptousetheirAC7108/1checklist for Dry Film Lube and Ceramic Metallic CorrosionCoatingsasasupplementtotheCTdevelopedauditcriteria.

AC7109/8forGrindingofCoatingswasdevelopedandmaintainedjointlybytheCTandConventionalMachiningasaSpecialProcess(CMSP)TaskGroupsthrough an MoU that was developed between the two groups. Commonly Used Checklists

ThemajorityofworkandauditswithintheCTTaskGroup are performed to three main checklists, AC7109, AC7109/1,andAC7109/5.Thissectionwillhighlightsome of the key features and requirements of those checklists.

AC7109

AC7109 is the core checklist and covers both general system requirements and the compliance and effectivenessofthequalitysystemwithrespectto

coatingsprocessing.Thischecklistevaluatestheeffectivenessofthecorrectiveactionsystem,completionoftheSelf-Audit,thetechnicalorganizationandtraining,processplanning,documentation,preventativemaintenance,calibration,andmaterialhandling.

Oneareaofthechecklistthatgeneratesasignificantproportionofnon-conformances(NCRs)iscalibration.There are many pieces of equipment and gauges within acoatingsfacilityusedforprocessing,evaluation,andinspection,andallofthemrequirecalibrationovertherangeofuse.Withsomanyopportunitiesforcalibrationissuestooccur,arobustcalibrationrecallsystemisessentialtoensureallcalibratedequipmentiscapturedandremainsuptodate.

AC7109/1 – Nadcap Audit Criteria for Thermal Spray

AC7109/1coversThermalSpraytechnologies,whicharethemostcommoncoatingapplicationmethodsusedintheindustry.Thischecklistexaminescoatingmaterialcontrolandqualification,andthenworksthroughthecoatingprocess,includingcleaning,masking,surfacepreparation,coating,demasking/cleaning,andinspection.Thischecklistlookstoensureproceduresandworkinstructionshavebeenadequatelydevelopedaround all of these processing steps, and that the work doneiscomplianttothatdocumentation.

AppendixAofAC7109/1containsagreatdealofinformationintermsofrequiredparametersforeachoftheindividualspraytechnologies.Failuretoproperlydefine,complywith,and/ormonitortheseparameterswith tolerances, is consistently at the top of the NCR listeachyear.ConsiderabletimeandeffortneedstobespentonAppendixAtoensurecomplianceandpreventNCRstoAC7109/1.

AC7109/5 – Nadcap Audit Criteria for Coating Evaluations

AC7109/5isthechecklistusedtodefinerequirementsforCoatingEvaluations.Thischecklistisapplicablefor

NADCAP CT AUDIT INSIGHTContinued from previous page

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anytestingperformedusingthefollowingmethods:

• Adhesion–Mercedes• Adhesion–Vickers• BondStrength–Bend• BondStrength–LapShear• BondStrength–Tensile• CoatingCompositionbyElectronMicroscopy• Erosion–Ambient• Fusion• Hardness–Rockwell• Hardness–Scratch• Metallography/Microstructure• MicroindentationHardness–Knoop• MicroindentationHardness–Vickers• Oxidation• Residual Stress • Thickness–BallCrater• Thickness–Metallographic• Thickness–X-RayFluorescence(XRF)

Thischecklistcoverstechnicianqualification,procedures,equipmentandfacilities,testvalidation,andspecimenpreparation,microscopes,andthermalprocessing.TherearespecificsectionsdedicatedtoMetallography,MicroindentationHardness,RockwellHardness,TensileBondStrength,BendTesting,ResidualStress,andCoatingComposition.TherequirementsfortheseteststypicallycomefromacombinationofASTMandISOstandards,alongwithcustomerspecifications.

AcommonsourceofNCRsforAC7109/5isspecimenpreparation.Thissectionofthechecklistrequiresalotofparameterstobedefinedandcontrolled.Itiscriticaltodefineallthecontrolparametersforsectioning,grinding,andpolishing.Eveniftheseparametersaredefinedinanautomatedequipmentprogram,theymuststillbedefinedinprocedure.

Overall Best Practice Recommendation

WiththerecentchangestoOP1105–AuditProcessand the new Self-Audit requirements that have been introduced, the CT Task Group has developed guidance fortheCoatingsAuditHandbookonthecompletionof

athoroughandusefulSelf-Audit.TheCoatingsAuditHandbook,alongwithadditionalresources,isavailableineAuditNetunderResources/PublicDocuments/Coatings.

Keys to an Effective Self-Audit – before the Self-Audit

• Download all the checklists within the scope of the audit, ensuring the revisions used are those that will beeffectiveatthetimeoftheNadcapaudit.

• Allchecklistsectionsandquestionsthatarerelevantforthesub-scopeprocessesdefinedintheauditmustbeaddressed.

• AlthoughthePDFchecklistsaretheofficialversionsof the audit criteria, editable Word documents are alsoavailableinineAuditNetunderResources/Documents/PublicDocuments/Coatings/WordCopiesofChecklists.TheWorddocumentsareausefultoolforcompletingtheSelf-Auditbutareunofficialcopies.So,theyshouldbeverifiedagainstthePDFversionsbeforeuse.

• ReviewthechecklistsandtheCoatingsAuditHandbooktoensureallthequestions,interpretationsofthequestions,andtheobjectiveevidence necessary to demonstrate compliance to thequestionsisunderstood.

• ContacttheStaffEngineersifclarificationisneededregardinginterpretationofquestionsorTaskGroupexpectations.

Keys to an Effective Self-Audit – during the Self-Audit

• Foreachchecklist,performathoroughSelf-Audit.The auditor should be a person knowledgeable withtheprocessandequipment.Therecommendationisthattheauditorisnotthe samepersonwhoisperformingthetask. Continued on next page

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NADCAP CT AUDIT INSIGHTContinued from previous page

• Utilizeseveralpeople,ifpossible,fortheSelf-Audit.Havemorethanonepersontoverifyconformance.

• Verifyandrecordtheproceduraldocumentationforeachquestion(asapplicable).Notetheprocedurenumberandsection/paragraphonthechecklistitself.

• If a procedure reference is not appropriate, documentwhatobjectiveevidencewasfoundtosubstantiateconformance.Thiscouldbearouter,techplan,directobservation,records,etc.

• Ifthisisnotaninitialaccreditationaudit,referbackto the previous Nadcap audit for non-conformances writtenagainstchecklistquestions.Validatetheeffectivenessofthecorrectiveactionsoftheprevious audit to ensure there are no non-sustaining correctiveactions.

• The previous Self-Audit can be a tool to help with the current Self-Audit, but each answer should be reverified.

• If there has been a checklist revision since the last Self-Audit,additionalemphasisshouldbeplacedonensuring new or changed requirements have been verifiedforimplementation.

• PerformjobauditsforeachspecialprocessandtestobservationstoverifyworkinstructionsmeetNadcaprequirements.

• TherequirementforthenumberofjobauditsandtestobservationsrequiredfortheSelf-AuditcanbefoundinAC7109.

• The parts and specimens reviewed during the Self-Audit could be the same as the parts and specimens reviewed during the Nadcap audit, but they do notneedtobe.Therefore,theobjectiveevidenceprovidedfortheSelf-AuditcoulddifferfromtheobjectiveevidencefortheNadcapaudit.

• ItisabestpracticetotakeintoconsiderationthejobtrackerandthehierarchyforselectionofjobsthathasbeendevelopedbytheCTTaskGroup.Pleaserefertothe‘SelectionofJobAudits’sectionoftheCoatingsAuditHandbookforfurtherguidance.

Keys to an Effective Self-Audit – after the Self-Audit • Identifyandcorrectanynon-conformancefound

duringtheSelf-Audit.Performrootcauseanalysiswhenappropriate.CompliancetoallNadcaprequirementsmustbemetatthetimeoftheNadcapaudit.

• TheSelf-AuditshouldbecompletedwithsufficienttimetoimplementanycorrectiveactionsnecessarybeforetheNadcapaudit.

• The Self-Audit must be uploaded to the appropriate audit in eAuditNet at least 30 days prior to the startoftheNadcapaudit.IfthereisanassociatedAerospaceQualitySystem(AQS)audit,theSelf-AudittoAC7004mustbeuploadedtotheAQSaudit.IfthereisanassociatedsatelliteauditasdefinedinOP1104, the Self-Audit checklists for the satellite are to beuploadedintothesatelliteauditoneAuditNet.

• Both the Auditor and Auditee should use the Self-Audit checklists during the Nadcap audit as a referencetohelpcompletetheauditontime.

Formoreinformation,pleasefeelfreetocontactJustinRausch:

JustinRauschStaffEngineerCT

T:+17247727116jrausch@p-r-i.org

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Atthe2017JuneandOctoberNadcapMeetings,PRIBoardChairmanMichaelJ.HaywardofNorthropGrummanreiteratedthePRIBoard’ssupportoftheobservationauditprocess,andencouragedallstakeholderstowillinglyparticipateandtoadheretotheexpectationsoftheprocess.Thisarticleprovidesmoredetailontheauditobservationprocessandexplainwhatanobservationauditis,howtheyareperformed,thefeedback that is gathered, and how the feedback is used toimprovetheauditprocess.

Observationauditsarenotanewactivity.Theyhavebeen conducted for many years, albeit not as frequently astheyaretoday.ObservationauditsgainedadditionalsignificancewhenTaskGroupswererequiredtoperformobservationauditsin2015aspartoftheauditorconsistencyinitiativedefinedinOP1117.Toprovidesomecontext,117observationswereperformedin2017bySubscribersrepresenting14differentSubscriberCompanies.Therewere15NadcapTaskGroupsthatconductedatleast1observationauditin2017.

AnobservationauditisaNadcapauditthatincludesaSubscriberrepresentative(typicallyaTaskGroupVotingMember)whoattendsallorpartoftheaudittoobservetheauditorandtheoverallauditprocess.TheobservationismosttypicallyinitiatedbytheTaskGroupthroughtheirannualobservationauditplanthatisdevelopedaspartoftheAuditorconsistencyactivitiesdefinedinOP1117AuditorConsistency.ObservationscanalsobeinitiatedbySubscriberswhousetheobservationtotrainpersonnelsupportingNadcapontheauditprocess.Forthisarticle,thefocusisonobservationsinitiatedbytheTaskGroup.

TheSubscriberrepresentative(Observer)willreviewthelistofscheduledauditsandidentifyanauditthatincludesanAuditorspecifiedontheTaskGroupauditplan.TheObserveruseseAuditNettoscheduletheobservation.Oncetheobservationisscheduled,theAuditorandAuditeearenotifiedbyanautoemailfromeAuditNet.TheAuditeecandeclinetheobservationbycontactingPRI.Therearespecificrulesandtimeframesassociatedwithdecliningobservations,soitisimportant

for the Auditee to review OP 1118 Audit Observers prior todeclininganaudit.

The Observer will arrive at the audit and may choose to witnessalloronlypartoftheaudit.ItisimportanttoemphasizetheroleoftheSubscriberistoobservetheAuditorandauditprocessonly.Observersaretrainedontheprocessandhaveagreedtoadheretospecificrulesofconductwhenconductingtheobservation.TherulesaredetailedinOP1118andspecificallystatetheAuditorissolelyresponsibleforconductingtheaudit,andtheObserverisnottointerferewithorinfluencetheauditinanyway.

TheObserverprovidesfeedbackontheobservationbycompletingthet-frm-01ObserverFeedbackformelectronicallyineAuditNet.ObserversareencouragedtoprovidefeedbackdirectlytotheAuditorsiftimeallows.ObserverfeedbackisreviewedbytheTaskGroupandobservationauditmetricsarereviewedbytheNacapManagementCouncil(NMC)OversightCommitteeateachNadcapmeeting.ThefeedbackformisfocusedontheperformanceoftheAuditor.22of26questionspertaintotheAuditorandaregroupedintothreemaincategories–AuditorPerformance,AuditDocumentation,andTechnicalCompetence.Eachquestionisratedonascaleof1to4with1being‘Doesnotmeetexpectations’and4being‘Auditbestpracticeobserved’.TheremainingfourquestionspertaintotheAuditCriteriaandAuditProcess.TherearealsoopentextboxestoallowtheObservertoprovidespecificfeedbackonwhatwentwellandanysuggestionsforimprovement.Itisrecommendedtodownloadacopyof the t-frm-01 Observer Feedback form from eAuditNet toseealltheareasbeinglookedatintheobservationaudit.

Feedback is reviewed by the Task Group and shared with theAuditorduringtheirannualperformancereview. For the individual Auditor, receiving feedback from the Subscriber is invaluable as it reinforces the expectationsoftheTaskGroup, Continued on next page

OP1118-AUDITOBSERVER

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OP1118-AUDITPROCESSContinued from previous page

anditprovidesspecificimprovementopportunities.TheTaskGroupusesfeedbacktoidentifyauditcriteria questionsthatmaybeunclearorpoorlywritten,and areas of the process that may be over or underemphasizedbytheauditcriteria.Itisalsoanopportunitytoensuretheallottedtimefortheauditissufficient,andtogeneratetrainingtopicsforAuditorsaswellasAuditees.

TheNMCOversightCommitteereviewsobservationauditmetricstoensureTaskGroupsaremeetingtheirannualobservationplans,andtoidentifyopportunitiesforimprovementbothintheobservationprocessandtheoverallprogram.Forexample,metricsreviewhasrecentlypromptedchangestotheobservationprocessincludingeliminationofmultipleobserversonasingleaudit,reducingthenumberofobservationsineachyearatthesameAuditee,prohibitingobservationrequestswithin 14 days of the audit start date, obtaining Auditee feedback on the Observer, and improving Observer training.

TheObservationauditisanimportantcomponentoftheNadcapprogram.ItprovidesSubscriberstheopportunity to directly observe auditors and the audit processensuringtheprogramismeetingtheirneedsandexpectationswhichinturnstimulatescontinuousimprovement.PRIencouragesallNadcapparticipantsto learn more by reading OP 1118, and to support andparticipateintheobservationprocesswheneverpossibletohelpmaketheNadcapprogramevenbetter.

FormoreinformationontheOP1118–AuditObserver,pleasecontactyourStaffEngineerorMarkHunkele:

IntheNovember2016newsletter,therewasanarticleon‘RiskMitigationProcessChanges’whichprovideddetailsoftheanticipatedchangestotheRiskMitigationprocess.Thisarticledescribeshowtheprocess,whichbecameeffectiveonJanuary1,2017,hasactuallychanged.Therevisionaimedtoimprovetheprocessasawholeandmorespecificallycovered:

• Obtaining Volunteers:theformerprocessrequiredTask Group Members to volunteer to support the RiskMitigationTeamandiftheAuditeewasnotontheSubscriber’sApprovedList,itwasverydifficulttoobtainvolunteers.

• TimelinessofRiskMitigationReview:failedauditsoftenhaveasignificantnumberofnon-conformancesanditwassometimesdifficulttogettheRiskMitigationTeamtoreviewnon-conformanceresponseswithinthedefinedtimeframe.

TheRiskMitigationprocessistriggeredbyaNadcapauditfailureasexplainedinOP1110–AuditFailure,availableoneAuditNetunderResources/Documents/ProceduresandForms/OperatingProcedures.Anycompany which fails a Nadcap audit and wishes to scheduleanewonewithin24monthsafterfailuremustcompletetheRiskMitigationprocess.

Significant Changes

A Nadcap Management Council Sub-Team worked on improvingtheRiskMitigationprocess.ReviewingandrevisingtheOP1110–AuditFailurewasanecessarysteptowardsimprovingtheprocess.ThemainchangestoOP1110are:

• ThereviewofthecorrectiveactionresponsessubmittedaspartoftheRiskMitigationprocesswill be performed by the assigned PRI Reviewer (typicallyaPRIStaffEngineer).

• ‘Completion’or‘Suspension’oftheRiskMitigationprocess must be balloted to the Task Group

REVISED RISK MITIGATION PROCESS

Mark HunkeleNMSEStaffEngineer

T:+17247728689mhunkele@p-r-i.org

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Subscribersforapproval.

• Afeeisrequiredtoprovidetheadditionalresourcesnecessary to support this process, payable by the samemeansasforaNadcapaudit.

ItisimportanttonotetheSubscriberscontinuetohave visibility of all stages of the review and are able to provideinputtothePRIReviewersasnecessary.

Starting the Risk Mitigation Process

TheRiskMitigationprocessistriggeredbyaNadcapauditfailure.AfailurenotificationissentbyemailtotheAuditee’spointofcontactwhenanauditfails.TheAuditeeisthenrequiredtostarttheRiskMitigationprocessasbelow:

1. LogintoeAuditNet,andgoto‘SupplierAudits’underSupplierApplication/SupplierAudits

2. Find the failed audit number and click on the number

3. Clickonthebutton‘StartRiskMitigationProcess’atthebottomrightcornerofthescreen

4. Confirmtherequestbyclicking‘OK’asshown

IfAuditeesdonotstarttheRiskMitigationprocess,theauditwillremainin‘Failed’status.TheRiskMitigation

processmaybestartedatanytimeafterthefailureis announced and up to 24 months from the date offailure.PerOP1110–AuditFailuresection4.4.4,‘Correctiveactionresponsesareduewithin21calendardays of the date the supplier enters or resumes the Risk Mitigationprocess’andsubsequentresponsesareduesevencalendardaysafterbeingreturnedfromthePRIReviewer.

Posting Responses and Completing the Process

AuditeeswhochoosetogothroughtheRiskMitigationprocesswillreceiveanemailidentifyingtheresponseduedate.Uponreceiptofthisemail,Auditeesshallfollowthestepsbelowtoposttheirresponses:

1. OnceloggedineAuditNet,goto‘SupplierAudits’underSupplierApplication/SupplierAudits

2. Click on the audit number link for the audit in the Failed–RiskMitigationSupplierReviewstatus

3. Clickonthe‘ViewNCRs’buttonasshownonthenextpage

4. ClickonthelinkfortheNCRnumber(orNCRtype)to get to the NCR response forum

5. ScrolldowntothePostResponse–RiskMitigationsection

6. AftercorrectiveactionresponsesarepostedandobjectiveevidenceisprovidedforallopenNCRs,clickthebuttonto‘SendForRiskMitigationSEReview’.AconfirmationwillappearatthetopofthepagethattheaudithasbeensubmittedtoFailed-RiskMitigationSEReview.TheReviewerthenhas14calendar days to review the responses

Amaximumoffourroundsofresponsesand/or30 daysofcumulativedelinquencyispermitted pertheOP1110–AuditFailure.However,

Continued on next page

NADCAP NEWSLETTER

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REVISED RISK MITIGATION PROCESSContinued from previous page

itiscrucialtobearinmindthatthePRIReviewermaydecideatanytimetoballottheaudittotheTaskGroupSubscribersto‘suspend’theprocessfor‘cause’.Thiscouldbeduetosignificantlydelinquentresponses,non-responsiveness,inappropriateresponses,andforotherreasons.Ifthishappens,thespecificrationaleforballotingsuspensionshallbeclearlydocumentedintheballot.

TheRiskMitigationprocessiscompletewhenallcorrectiveactionsresponsesareacceptedbythePRIReviewer

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andapprovedbyballottotheSubscribers.TheauditisthenmovedtotheFailed-RiskMitigationCompletedstatusasshownbelow.Itisatthispointonlythatanewauditmaybescheduledtoresumetheaccreditationprocess(providedaminimumof90-dayshaveelapsedfromthedateoffailureasrequiredperOP1110–AuditFailure).

It should be noted the auditor is required to verify implementationofallcorrectiveactionsduringthenextaudit.

FormoreinformationontheRiskMitigationProcess,pleasecontactyourStaffEngineerorMikeGraham:

Mike Graham Senior NMSE Program Manager

T:+17247728646mgraham@p-r-i.org

NADCAP NEWSLETTER

14

TheSupplierSupportCommittee(SSC)wascreatedinApril2002.Today,theSSCLeadershipTeam(SSCLT)isformed of volunteers from the Supplier community, dividedbyregions–Americas,EuropeandAsia–andledbytheSSCChair.

DaleHarmon,DirectorofQualityforCincinnatiThermalSpray and SSC Chair since October 2015, has been involvedwithNadcapsincethelate1990s.HehasextensiveexperienceoftheprogramashiscompanyunderwentitsfirstNadcapauditsin1996andhashadover40Nadcapauditssincethen.CincinnatiThermalSprayhasthreeNadcapaccreditedfacilitiesandcurrentlyholdsfouraccreditations:CoatingsforallthreelocationsandChemicalProcessingforoneofthem.AllfourcurrentaccreditationsheldbyDale’scompanyhaveSupplierMerit.

HavingattendedeverysingleNadcapmeetingsinceApril 2001, Dale considers his biggest learning is that ‘it is important to be well-prepared and have a detailed timetablewithaplanofactionforNadcapaudits’.ThisisthemainreasonwhyhehasbeenconductingSelf-Auditssince2000–nowamandatorypartoftheNadcapprocess–asithelpspreparefortheactualauditandultimatelyincreasesthechancesofbeingsuccessful.‘Self-auditingcanalsobebackedupbyattendingtheTaskGroupmeetingsandSSCeventsattheNadcapmeetingsaspartofthepreparation,’addedDale.

DalebelievesthemostvaluableSSCactivityis‘providinginformationtoallSuppliers,includingthosewhodonotattendNadcapmeetings’.Indeed,newerSuppliersneedtogetinformationontheresourcesthatareavailabletobetterprepareforNadcapauditsasthiswillhelpthemsavebothtimeandmoney.

Inrecentyears,theSSChasincreaseditseffortstocreatepubliclyavailableresources.Theycanbefoundon the PRI website here https://p-r-i.org/nadcap/supplier-support-committee/ and on eAuditNet under Resources/Documents/PublicDocuments/SupplierSupportCommittee(SSC).TheMentoringProgramaswellastheSSCRequestFormaretwomajorresourcesthatSuppliersareencouragedtotakeadvantageof:

• The Mentoring Program has been designed to help SuppliersgetinformationontheNadcapprogramfrom their peers and reference appropriate contacts withinPRItoobtainanswerstotechnicalquestionsorassistanceinotherareas.

• The SSC Request Form has been developed to enable Suppliers to have direct contact with the SSC andaskquestionsorrecommendprojects.

NadcapmeetingsarealsoausefulresourceforSuppliers.There,theSSCholdsseveralsponsoredeventsonMondayswheretheyshareinformationonchangestotheprogramthataffectSuppliersinordertohelpthembetterprepareforaNadcapaudit.TheSSCalsopresents a Supplier Tutorial as well as an eAuditNet Tutorial, which support companies that are new to Nadcap and provide them with guidance on how to navigatetheaccreditationprocess.Thepresentationon‘KeystoaSuccessfulAudit’isanotherusefulsessionthatgivesanoverviewandstepsoftheNadcapprocess.

‘TalkingandaskingquestionstotheSSCmembersas well as taking the opportunity to discuss with the SubscribersandPRIStaffattendingtheNadcapmeetingsiscrucial’,saidArnoToelkes,VicePresidentandSeniorManager Quality Assurance for Euro-Composites, based inLuxembourg.HeistheSSCLTrepresentativeforEuropeandalsohasextensiveexperienceoftheNadcapprogram.Arno’sfirstexperienceofaNadcapauditwasin 2005 and his company has had over 25 Nadcap audits todate.Euro-CompositescomprisestwofacilitieswithNadcapaccreditationsinCompositesforbothlocationsand Non Metallic Materials Manufacturing for the one basedinLuxembourg–allaccreditationshaveSupplierMerit.

ArnoattendedhisfirstNadcapMeetingin2005.Sincethen,hehasattendedatleasttwomeetingsperyearand considers his most important learning point is taking aholisticviewtotheNadcapprocess,commentingthat‘hiring and working with highly trained operators or certifiedtechniciansissimplynotenoughtosuccessfullygetthroughaNadcapaudit.’EverycompanywantingtoachieveandmaintainNadcapaccreditationshould

A VIEW FROM THE SSC LT

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havedetailedproceduresinwriting.‘Morethanjustarequirement,thiswillhelpsmoothtransitionswithinthe company, such as change in management, new employees or if the company is growing and roles are evolving’,notesArno.SuchprocedureshavehelpedArno and his company decrease the number of NCRs incurredintheirNadcapauditsovertime,andbetterunderstandtheAuditCriteria.

HelpingcompaniesbetterunderstandtheNadcapprocessasawhole,andnotgettinglostamongallthedifferentNadcapproceduresandrequirementsisoneoftheactivitiesoftheSSC–andArnobelievesitisoneofthemostimportantfortheSupplierbase.ArnoalsoconsiderstheSupplierToolsheet,whichidentifiesthelocationofusefuldocumentsandresourcesintheNadcap program, as well as the SSC FAQs, which answer commonquestionsabouttheNadcapprogramandNadcapaudits,arecriticalresourcestohelpSupplierswiththeNadcapprocessandexplainwheretofindusefulinformation.ThesetwodocumentsarepubliclyavailableonthePRIwebsitehere:https://p-r-i.org/nadcap/supplier-support-committee/

Finally,Arno–anon-nativeEnglishspeaker–andDale,knowtheimportanceofinterpretingtheNadcapAuditCriteriaandNadcapprocedurescorrectly.OnlinetutorialsandopportunitiestodiscusswiththeSSCmembers,aswellasanyPRIStaff,aregreatwaystodeepenone’sknowledgeabouttheNadcapprogram,getabetteroverallunderstandingordiscussprogramimprovements.BecominganactivememberoftheSSCis another way to get the most out of Nadcap and it bringsseveraladvantages.Dalehighlightsthat‘SupplierswhoactivelyparticipateontheSSChaveanadditionalavenue for providing input in to the program and they canpotentiallyinfluenceproposedchangesthatcanaffectthemdirectly.’AnotheradvantageofbeinganactivememberoftheSSCisthatitcanenhancevisibilityforacompanytoitsexistingorpotentialcustomers.

The SSC is looking for volunteers to strengthen its Europeanteam.FormoreinformationonhowtogetinvolvedwiththeSSCorifyouhaveanyquestions,please contact the Nadcap SSC at NadcapSSC@p-r-i.org.

SPECIAL PROCESS SUBJECT MATTER EXPERTS WANTED

TherearecurrentlyopportunitiesforaerospacespecialprocesssubjectmatterexpertstobecomeindependentcontractorsforPRI,conductingNadcapauditsonbehalfoftheaerospaceindustry. FormoreinformationonIndependentContractorAuditoropportunities,goto www.eAuditStaff.com or contact Jennifer Eckels at jeckels@p-r-i.org or call +17247728579.

AS9100 AND AS9110 CERTIFICATIONS RENEWAL

FollowingtherecentAScertificationupgrade,PRI now requires Suppliers to upload their newAS9100andAS9110certificationstoeAuditNet.

This applies to all new AS9100 and AS9110 certificatesaswellasifthereisachangeinRegistraroranewexpirydate.

PleasesendyournewcertificatestoSusanFrailey at sfrailey@p-r-i.org.Shecanalsobereachedbydialing+16186154478.

NADCAP NEWSLETTER

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Ifyouwouldlikeadditionalcopiesofthisnewsletter,pleasecontactprinadcap@p-r-i.org

Thisnewsletter,andpastissuesareavailableonthePRIwebsiteathttp://p-r-i.org/nadcap/