The most important thing we build is trust

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1 The most important thing we build is trust Guide for Suppliers *Quality* Aerospace & Defense Products Guide for Suppliers Page 1 of 18

2 Table of Contents Introduction Scope Application Agreement on Objective Priority / Hierarchy of Documents Supplier Expectations Quality Planning Changes Traceability Packaging Shipments Accompanying Measures Defectives Parts Capability Process Capability Machine Capability Performance Test results Rework procedures Records Storage of Supplier Documents Procurement from Subcontractors Spare Parts Continual Improvements Idea s Supplier Assessment & Qualification Initial Supplier Profile Supplier Screening/Data Analysis Process Auditing Evaluation Ship to Stock Product Development Control Plan COBHAM Specific product Standard Products Qualification / Process Validation First Article Submission (Initial Sample) Supplier Corrective Action Processing Closed Loop Corrective Action Quality Assurance Agreement (QAA) Abbreviations and Definitions References Guide for Suppliers Page 2 of 18

3 Introduction Scope The customers of COBHAM are all recognized manufacturers from around the World, all of whom expect on time delivery, high-quality, defect-free products at cost-effective prices. At all times the perfect condition and reliability of the purchased components, materials and services as well as the verified process and quality capability of the supplier contribute significantly to this goal. Hence, the quality of our suppliers is an integral part of COBHAM s product quality. Continued and future cooperation between partners must be already achieved in the product development phase to effectively prevent defects from occurring. The objective of the preventive actions, which always involve the entire company, must therefore be: DEFECT PREVENTION AND THE REDUCTION OF VARIATION AND WASTE This requires process capability and continual improvement of all processes and flows within the Supply Chain. COBHAM understands that our business segments are different in nature and in many cases have unique supplier quality requirements that are market specific. However, the processes and tools represented in this manual represent the core expectations and requirements of our business. The differences that you will see across our organization will be minimal and will be driven by customer and/or market specific requirements. Consequently, this guide focuses on measures geared toward product and process planning prior to commencing production. Advance Quality Planning as well as process reliability is key to defect prevention. Only appropriate processes, which can be controlled, guarantee perfect products. Joint efforts between COBHAM and its Supply Chain must achieve reliable and robust processes and prevent the costly wasting of material, time and other resources. As far as environmental protection is concerned, we expect that our suppliers and contractual partners comply with the same environmental standards as we ourselves. Application The guide indicates the processes and defines the manner of proceeding to be approved by COBHAM to ensure the quality of purchased parts, materials and services. The guide is based on ISO 9001:2000, ISO 14001, and the AS9100 publications. The procedures and flows indicated supplement our terms and conditions of purchase and hence form part of the supply contract between COBHAM and its suppliers. COBHAM expects from its suppliers the constant and consistent implementation of all the procedures and methods described as well as full compliance with all the requirements specified. The responsibility for the quality of the parts, materials and services supplied is borne by the supplier. Agreement on Objective COBHAM expects Zero Defects from our Suppliers, just as our Customers expect from us. It is the supplier s responsibility to anchor this objective in their Quality Management System and to gear all processes toward this objective. In order to support this process, COBHAM shall define realistic control limits with the supplier, checking whether the target is achieved by means of periodic planned actual comparisons. If the goal is not met, the supplier shall take appropriate actions. Priority/Hierarchy of Documents In the event that documents contain contradictory information, COBHAM shall be notified without delay. The Purchase Order, Statement of Work, Component Specifications and Drawings Specifications have a higher priority than other documents. This guide is not a rigid set of rules. It is geared toward the requirements of the Aerospace & Defense Industries to assure quality. The guide represents requirements placed by COBHAM on their suppliers, and in some cases governed by the QAA. Guide for Suppliers Page 3 of 18

4 Supplier Expectations Quality Planning Quality capability requires from each COBHAM supplier a punctual and effective Quality Management System. The supplier must therefore gear his Quality Management System according to ISO9000 series requirements and verify this. Additionally, COBHAM expects from its suppliers a willingness to implement approved changes to these standards, and of course, to continually re-evaluate and implement improvements. The required verifications can be obtained via certification from an independent institution. Changes In the case of changes to the component structure/design to the manufacturing method to the materials used to the manufacturing location to a different subcontractor COBHAM shall be informed in writing in due time through a change request. Details shall be defined in the QAA. Changes may only be adopted with the written permission of COBHAM. Upon agreement by COBHAM such changes shall be qualified by the supplier. The Quality Management Plan (Control Plan) and part curriculum shall be adapted. A First Article Submission (Initial Sample) shall be conducted before consignments are used. The scope of the First Article Submission (Initial Sample) shall be harmonized with COBHAM and documented in the QAA. The positive notification concerning the First Article Submission (Initial Sample) comprises the change release, which represents completion of the process. The first supply of changed parts shall be notified in writing. The delivery documents and the packaging must indicate clearly that this is the first shipment of changed parts. Traceability As applicable, the supplier is required to establish a Lot Traceability system that tracks components from the raw material through inspection and test operations, including rework and sub-supplier procedures. Upon request by COBHAM, the supplier must be capable of supplying COBHAM with the required information within 48 hours. In exceptional cases this time may be even shorter. Packaging The supplier is expected to comply with specific packaging instructions defined by the receiving facility. Suppliers will establish and follow packaging standards and methods to ensure that material is adequately protected from damage and contamination during transit. Every effort should be taken to ensure package integrity. Shipments All shipments must be effected in accordance with the agreements. The goods must be marked clearly in order to ensure traceability. It must be possible to read the marking by machine, as specified by COBHAM. It is our goal at COBHAM to have every supplier deliver directly to the production line at the COBHAM plants (Ship to Stock program). No incoming inspection will be performed. COBHAM shall only conduct an identification test. Products manufactured over 12 months previously, or exceeding 80% of the manufacturers recommended shelf life, may not be supplied to COBHAM. If such delivery is necessary in individual cases, the supplier shall apply for special approval from COBHAM purchasers. Such approval must be made in writing by using a Deviation Request Form. The items must be marked separately. Details shall be defined in cases of approval. Specially released material may not be mixed with other materials/consignments. It must always be marked in separate containers and be supplied separately according to the type of material. Any costs that may accrue may be charged to the supplier. Accompanying Measures The supplier is fully responsible for the quality of his products Supplier shall ensure this among other things through Process capability investigations Process control measures Trainings (employees) Internal audits The supplier shall take action to ensure adequate protection in the case of product liability cases, recall actions, exchange actions, etc. Guide for Suppliers Page 4 of 18

5 Supplier Expectations Defective Parts At the Supplier s End Parts that have been found by the supplier to be defective or non compliant with the requirements shall be identified without delay and stored so as to exclude further processing and delivery to COBHAM. Defective parts must be prevented from reaching COBHAM. The supplier shall take action without delay in order to check preceding parts or lots. The cause of failure shall be analyzed and eliminated reliably through suitable process improvements (See Supplier Corrective Action Processing). If parts can be made usable (fully suitable) through rework, this shall be agreed upon with the respective COBHAM plant prior to implementation. Such rework shall be released by COBHAM in writing (Deviation Request). The consignment of reworked parts shall be identified specially. Should defective parts have already been supplied to COBHAM, the COBHAM purchaser shall be informed to this effect without delay. Further action (e. g. additional tests at COBHAM as well as caused costs) shall be agreed upon jointly. At COBHAM If COBHAM establishes failures in its production, the supplier shall be notified of this without delay. COBHAM shall, in agreement with the supplier, return the defective parts to the supplier. The supplier shall analyze all the defective parts forwarded from the COBHAM plants, notifying COBHAM of the result in the form of a Supplier Corrective Action report. The processing times shall be harmonized in the Quality Assurance Agreement (QAA). If no special arrangements have been made, the result of the investigation shall be submitted to COBHAM at the latest after 14 working days. Should it not be possible to complete a process within this time, the supplier shall notify COBHAM at regular intervals (weekly) of the result of the ongoing investigations. A Supplier Corrective Action process is deemed to be completed subject to agreement by COBHAM. The corrective actions initiated shall be documented, and a follow-up audit scheduled. Should it not be possible to return the defective parts (e. g. production line stop at Cobham Product Line), the supplier shall sort out the parts at COBHAM designated facility. If this is impossible (e. g. night shift), COBHAM shall sort out or rework the defective parts in agreement with the supplier sorting/rework criteria and will bill the suppliers a reasonable fee associated with this effort. At the Customers of COBHAM If, when processing the customer s complaint, COBHAM establishes that a supplier has caused the failure, the supplier shall be notified of this immediately. COBHAM shall return all defective parts to the supplier. The supplier shall without delay, analyze all the detective parts forwarded by the COBHAM plants and shall notify COBHAM of the result in the form of an Supplier Corrective Action report. A first comment must be submitted 48 hours after receipt, which above all shall contain the containment action. The processing times shall be harmonized in the Quality Assurance Agreement (QAA). If no special arrangements have been made, the result of the investigation shall be submitted to COBHAM at the latest after 14 working days. Should it not be possible to complete a process within this time, the supplier shall notify COBHAM at regular intervals (weekly) of the result of the ongoing investigations. A Supplier Corrective Action process is deemed to be completed subject to agreement by COBHAM. The corrective actions initiated shall be documented, and a follow-up audit scheduled. COBHAM shall check such corrective actions on site. Process Capability All components must be made by means of appropriate and controlled processes. This is to be ensured through careful process planning for the product. The following applies to all parameters/dimensions: Cpk 1.33 These Cpk values shall be verified vis-à-vis COBHAM for selected parameters/dimensions as part of First Article Submission (Initial Sample). In the case of zero -limited distributions, the limit removed from zero is to be entered. For parameters/dimensions below the Cpk value of 1.33, Corrective Actions or other suitable measures (e. g. 100% final inspection) shall be initiated and harmonized with COBHAM in order to guarantee the required supply quality. In the event that there are less than 25 parts ordered, 100% dimensional verification will be required on a sample basis defined by COBHAM, and identified in the QAA. Guide for Suppliers Page 5 of 18

6 Supplier Expectations Machine Capability All machines and measuring equipment used must be appropriate for the purpose envisioned. The following applies to all machines/equipment used: Cpk 1.67 The Cpk values shall be determined either by the supplier himself or by the machine/equipment manufacturer. For Cpk values below 1.67, Corrective Actions shall be initiated. Performance Test Requirements Performance testing is conducted to confirm that current production meets design requirements. Testing is to be conducted in accordance with the established control plan. Performance test failures are cause for a supplier to stop production immediately, pending analysis of the process and corrective action. Suppliers are required to immediately notify the customer location of test failure, suspend shipments and identify shipped suspect lots. Rework Procedures Rework consists of alterations to a product that are not part of the basic production process as indicated on the Control Plan and which will provide material in full compliance with applicable drawings and specifications. When rework is required as an interim measure, the supplier is required to provide the following: Deviation Request Identified rework area Written rework instructions Written rework inspection/test instructions Acceptable standards where applicable All reworked materials must be re-inspected in accordance with the requirements of COBHAM. Records The supplier must retain adequate quality system records, including all advanced quality planning documents, process guidelines, laboratory test instructions, gauge/test equipment verification and calibration and performance test methods for 10 (ten) years (production and service). Storage of Supplier Documents Where characterization records and design of experiments (DOE) are used to demonstrate conformance, the organization shall maintain those records for the production and service life of the part plus one full calendar year or until characterization for the part or family of parts has been updated. Field, Customer problem, and Corrective Action reports shall be retained for three years, unless otherwise specified. COBHAM has the right to inspect the documents at the supplier s end after prior notice. Upon request, documents must be received within 48 hours (by the COBHAM applicant). Procurement from Subcontractors The supplier shall transfer COBHAM s requirements to his subcontractors. COBHAM is entitled to visit subcontractors in order to obtain information concerning development status, manufacturing methods, and so on. This also comprises auditing the subcontractor in agreement with and in the presence of the supplier. Spare Parts The supplier shall ensure that, as part of spare parts supply, products, especially COBHAM Specific Products, can be supplied to COBHAM even 15 years after the last delivery. The supplier shall ensure this through suitable tooling management and appropriate stock This period is subject to the requirements of the Military and Aerospace industries. Premature cancellation of the products is only possible with the approval of COBHAM. Continual Improvements All business processes implemented by the supplier shall be improved continuously taking into consideration the following objectives: Avoiding waste (among other things material and time) Increasing productivity Cutting the test effort for stable processes Supply reliability (date and quantity) Customer satisfaction Reducing the use of raw materials and energy Reducing the use of hazardous substances Decreasing defective parts (internally, externally) Minimizing product safety risks Guide for Suppliers Page 6 of 18

7 Supplier Expectations IDEAS The purpose of the IDEAS program is to encourage supplierinitiated cost reduction and improvement suggestions. IDEAS helps in creating an environment that promotes open communication and mutual benefit between COBHAM, its suppliers and its customers and allows us to work with suppliers to maximize our collective success in the areas of: Product design Manufacturing improvements Quality Business and administrative improvements Logistics Sourcing Strategies COBHAM regards supplier expertise and creativity as a valued resource that contributes substantially to its success. Supplier s participation is critical to the IDEAS program. The Supplier is expected to: Champion their IDEAS Initiate proposals and IDEAS for improvement Develop action plans to accomplish IDEAS Provide appropriate documentation, such as preliminary drawings and testing Review with COBHAM engineering personnel Review progress with COBHAM purchasing on a regular basis A cross-functional team consisting of personnel from Engineering and Purchasing will evaluate and drive the IDEAS program from each COBHAM location. The following process flow diagram illustrates the typical sequence for the submission and approval of IDEAS. Guide for Suppliers Page 7 of 18

8 Supplier Assessment & Qualification The supplier assessment and qualification process should include the following: Initial supplier profile and data gathering Supplier screening and data analysis Supplier Assessment COBHAM s selection criterion is based on a desire of obtaining long term superior supplier performance. As a result of the comprehensive scope of the selection and qualification process, approval by COBHAM may be sufficient endorsement for another group to use that supplier without re-qualification. However, the business group with consideration of their sourcing requirements and circumstances will determine this. Initial Supplier Profile The initial supplier profile is used to obtain initial data and information concerning a supplier that will be used throughout the sourcing and assessment process. Supplier Screening/Data Analysis Process COBHAM will perform the screening process based on the following considerations: Supplier s current delivery performance based on 100% on-time delivery expectation. Supplier s quality performance Product complexity/compatibility with the Supplier Availability of capital to produce product under evaluation Supplier s financial strength for future growth and investment Supplier s registration to an industry sector quality system (i.e. ISO9000) Supplier s ability to provide inspection, testing and design analysis as required Supplier s support of State of the art equipment and processing Supplier s depth (Technical & management bench strength Strategic importance of the product to the Supplier s business strategy Supplier s understanding & compliance with the demands of the industry sector requirements History of competitiveness in the product group under evaluation Supplier s ability to manage prototype/pre-production activities Supplier s diversification in markets and products to allow balance Supplier s system to manage logistics Supplier s system to manage language barriers Effective use of continual improvement techniques Manufacturing processes that are adequately automated/error proofed Upon completion of the initial screening process, COBHAM will meet to review the outcome. A determination will be made as to whether the supplier qualification process will continue. Further follow-up and /or corrective actions may be requested of the Supplier. If the results are considered acceptable, the process continues. Supplier Assessment Once the initial screening process is completed and the supplier is identified as a potential supplier to COBHAM, a self and/or on-site assessment based on the impact of the product or process being sourced will be completed. The results of the assessment will be reported and maintained by COBHAM. Auditing In the case of suppliers who are not certified according to ISO9001 (latest issue), COBHAM will check the Quality Management System itself (system audit), in accordance with FRM3342. For this purpose the supplier shall, upon prior arrangement, grant COBHAM access to his facilities and shall permit COBHAM to inspect documents and processes. COBHAM may hereby limit itself to the additional elements of ISO standards. In the case of suppliers who are certified according to ISO9001, COBHAM will as a rule not conduct a system audit, but limit itself to a process and/or product audit. If a process audit is performed, the process chain for planning, development and manufacturing a product to be purchased by COBHAM shall be considered and checked as to whether all the requirements ensuring defect-free product fabrication are met. Occasions for process audits may be: Safeguarding the product development process and the production start-up phase (new products) Quality problems with supplied parts Process optimization Process changes Process transfers The audit result indicates the quality capability offered by the supplier. If deviations (non-compliances) are ascertained, the supplier shall coordinate a plan of action with COBHAM to eliminate the non-compliances. Any/All non-compliances must be eliminated. COBHAM may verify and confirm by an audit that the actions have been carried out if it so chooses. Audit results and findings obtained on visiting the facility shall be handled confidentially and not made accessible by COBHAM to third parties, unless the supplier agrees expressly to the above. Guide for Suppliers Page 8 of 18

9 Supplier Assessment & Qualification Self Assessments The supplier may be asked to complete a self-assessment in lieu of and/or in addition to an on-site review. The supplier will complete the assessment and provide any necessary supporting documents to COBHAM. Evaluation Approved Vendor Vendors are approved by the Business Unit Materials Manager and/or Supply Chain Management. Any of the following criteria may be used to approve a vendor: The vendor has been surveyed and is found to have the necessary management, quality, technology, and business resources to meet COBHAM s requirements. The vendor has proven itself to be capable of shipping an acceptable product in accordance with first sample submission approvals. A Customer has directed the Vendor to COBHAM. Vendors are required to maintain the minimum vendor performance rating, as defined by the Business Unit/Plant for the commodity being produced. Vendors not meeting this requirement, will be removed from the approved vendor database, and will be placed into the Conditional Category. Conditional Vendor A Vendor is placed in this category when: All new vendors are placed in this category for a minimum of 3 lot inspections. If the inspection results are adequate, the Supplier Quality Group can move the vendor to the Approved Vendor. Vendor rating falls below the acceptable performance rating as defined by the Business Unit/Plant. Vendor fails to meet the Business Unit/Plant Quality Audit requirements. Blocked Vendor Any of the following criteria may be used to block a vendor: The vendor has failed the Quality Audit and is unwilling to comply with the required timeline for implementing the necessary changes. The vendor has not responded to a written corrective action in a satisfactory manner and is unwilling to comply with the required time line for implementing the necessary changes. One-Time Vendor A Vendor is placed in this category when: The Vendor is not set up in the Vendor Master. The intent of this category is to obtain supplies and/or services for a one time buy for engineering use only. Strategic Vendor The Material/Purchasing Managers or Supply Chain Management designee at the Purchasing Organization and Plant Level will determine and identify their Strategic Vendors. The interpretation or selection of a Strategic Vendor may differ from each COBHAM organization or plant. The Strategic Vendor could be based on value added criteria like (Technology, Capacity, Systems or Service) or willingness to partner with COBHAM on inventory solutions or continued improvement. The criteria will not be based solely on business size or dollar volume. Strategic Vendors could be any one of the following: Sole Source Vendors of critical, unique or proprietary type parts or process. Vendors of parts that are critical to customer system operation, risk assessment and the product class. All Approved Vendors (by Quality) that includes Ship to Stock (STS), custom or fabricated parts. Ship to Stock All ISO Certified Vendors. Vendors utilizing the Consignment Agreements. Dollar volume based by material group/commodity. The ship to stock program exempts a supplier s product/parts from the receiving inspection process at COBHAM facilities. However, the supplier s product/part will be subject to inspections based on a random order or frequency determined by COBHAM. In order to qualify for the ship to stock status for COBHAM, a supplier must have completed or be involved in the following: Process Audit (Self Assessment or On-Site) 98% Quality rating for 3 months At a minimum, the supplier must have shippd 6 lots in the last 6 months. Below acceptable defined Quality Level and/or On Time delivery level. Guide for Suppliers Page 9 of 18

10 Approving Parts for Production Control Plan A Control Plan is a written document which provides a description of the system for controlling processes that produce products for COBHAM. All Suppliers must establish a new control plan for each new product and address all significant and critical design characteristics, processes, and performance tests. COBHAM Specific Products COBHAM s goal is to involve the supplier as early as possible in the development process. This is particularly true for application-specific components. Joint efforts from the product development phase to the start of production, will be cut and approaches will be conceived that represent qualitatively and economically optimal solutions for both companies. Through respective measures taken in the development phase potential failure sources can be prevented and the prerequisites for yield stable and capable products can be implemented. Objectives of the joint work constitute: Cutting development time and costs Realization of the most cost-effective solution High-quality, rugged and particularly environment-friendly products Reducing the risk of defects, and improving yields Punctual production start-up with technically mature products Prevention of product liability risks COBHAM will provide all the necessary information. This includes, among other items: Specifications (drawings, supply specifications) Purpose of use Features important for functioning and assembly Packaging and shipping procedures Documentation pertaining to supplier involvement Within the scope of product development, the supplier shall make the following contributions: Proposals serving to; Prevent potential defects Cut costs Enhance the product. COBHAM will review such proposals carefully and will, if appropriate, amend the specifications accordingly. Feasibility studies Design reviews (engineering tests, design verification) Design FMEA Process planning Process FMEA Process capability analyses and verifications Process validations (qualifications) Quality Management Plan (Control Plan) Test-media planning Packaging suggestions The documents prepared shall later form part of an First Article Submission (Initial Sample). On commencing the project, the product/project schedule shall be harmonized with COBHAM. The Supplier shall inform COBHAM regularly of the development progress (status report). Design reviews shall take place with the supplier at agreed intervals. COBHAM Specific Products comprise: Electrical and mechanical component parts Printed Circuit Boards and new technology for Printed Circuit Boards Special components (to be defined by COBHAM case by case) Standard Products Standard products are parts, materials and services developed and produced by a supplier independently for the market. The result is recorded in data books and sheets. COBHAM shall be notified of the results of product development as well as about the product development process itself. This shall be affected as part of an First Article Submission (Initial Sample). The supplier shall confirm that its product complies with the COBHAM supply specification. Any deviations shall be approved by COBHAM. Standard products (e. g. limiting parameters) shall be confirmed by the supplier. The process capability of the limited features is to be verified by COBHAM. Guide for Suppliers Page 10 of 18

11 Approving Parts for Production Qualification/Process Validation The manufacturer prior to production approval shall qualify all components for the intended purpose of use/application. The application requirements are defined in the component specifications or/and drawings/statements of work. For standard components, qualification/process validation shall be done according to the relevant specifications in the respective branches and the standards dictated per COBHAM s Customers. In cases of doubt and/or deviations, respectively, due to the supplier s own specifications, qualification/process validation shall be harmonized with COBHAM. In the case of standard components, COBHAM may request the revalidation/re-qualification of certain parameters. The supplier shall conclude qualification/process validation prior to release by COBHAM for production application. For COBHAM Specific Products, the Qualification Test Plan (QTP)/Process Validation Plan (PVP) shall be harmonized with COBHAM in due time before commencing qualification/process validation. The QTP/PVP includes the tests, test parameters and the planned deadlines. COBHAM shall be informed of the result as part of the Initial Samples Submission. First Article Submission (Initial Sample) COBHAM Specific Products The supplier shall, prior to production approval/release, provide a First Article Submission (Initial Sample). COBHAM shall order the Initial Samples and First Article Submission (Initial Sample) Reports. If not agreed otherwise, and depending on the product, the First Article Submission (Initial Sample) Report shall be presented according to the requirements identified below. A signed cover sheet including the following, at a minimum; COBHAM Part Number Serial Number, if applicable Component specification/drawing number and revision level Supplier Name Supplier Code number, if available City/State/country (manufacturing location/facility) Name of preparer, title Deviations / Non-conformances, Corrective Action, if applicable A copy of the signed COBHAM drawing/component specification/statement of work The current drawing, numbering all characteristics in an appropriate order of sequence (Balloon Drawing) Dimensional report with all planned and actual dimensions Materials certifications, as applicable Special Process certifications, if applicable Operator certifications, if required Functional report (qualification results, final test records of electrical parameters) Process flow chart including location(s) Inspection Plan Verification of reliable manufacturing (process capability, machine capability) Quality Management Plan or Control Plan If not agreed otherwise, parts must be produced and 25 parts taken for a statistical evaluation of the test and measurement results. In the case of multiple molds or several identical tools for the same pass, only 100 parts are required per cavity/tool. The dimensions shall be agreed on separately. The First Article Samples (Initial Samples) shall be delivered to COBHAM s ordering address complete with all agreed documents and packaged separately as First Article Samples. Sending First Article Samples (Initial Samples) with incomplete documents requires prior approval by COBHAM. Standard Products Prior to production approval/release (at least three months beforehand), the supplier shall in due time conduct an First Article Submission (Initial Sample). After presenting parts to the development department, the supplier should without delay initiate formal component release. The scope of the First Article Submission (Initial Sample) Report basically corresponds to the requirements for COBHAM Specific products, but product-specific simplifications are possible. However, such simplifications shall be harmonized with COBHAM prior to the First Article Submission (Initial Sample). Release COBHAM shall check the Initial Sample Inspection Report as to completeness and compliance with the requirements. If appropriate, features will be subjected to a repeated check. Incomplete Inspection Reports and Inspection Reports that include unapproved deviations will not be processed further and will be returned to the supplier. This will be taken into consideration for supplier evaluation. In the case of subsequent Initial Sample Inspections carried out through the supplier s defect, the supplier may be charged for such processing. COBHAM expects Initial Samples to comply with all requirements. Guide for Suppliers Page 11 of 18

12 Approving Parts for Production Should deviations nevertheless occur during Initial Sample Inspection, which cannot be eliminated at short notice, a written application should be made prior to First Article Submission (Initial Sample) for limited permission to deviate or to amend the drawing/specification. The supplier shall clarify in advance whether such approval can be expected. The conductance of corrections shall be approved by renewed presentation of the First Article Submission (Initial Sample). Agreed correction deadlines must be adhered to. Component release is affected by signing the accompanying cover sheet. Approved deviations shall be noted. The signed cover sheet is returned to the supplier. In the absence of this release, the supplier is not permitted to deliver series-production items to COBHAM. Re-qualification In order to assure the quality level, the supplier shall perform annual re-qualification of the component. The re-qualification scope shall be harmonized with COBHAM. COBHAM shall be notified without special request of the results of re-qualification. If the supplier has not delivered the product for more than one year, the release is deemed to have expired. The part must be re-qualified. The supplier shall again apply for release through a First Article Submission (Initial Sample). For addition support using the AS9102A First Article Inspection forms go to; Independent Distributor/Broker Product Any independent distributor/broker shall provide full acquisition traceability to the Original Equipment Manufacturer (OEM)/Original Component Manufacturer (OCM). Any deviation to this requirement shall require submittal of a Deviation/Waiver. Guide for Suppliers Page 12 of 18

13 Supplier Corrective Action Processing CLOSED LOOP CORRECTIVE ACTION All suppliers for COBHAM must establish and maintain documented procedures for implementing a system of closed loop corrective and preventive action with disciplined problem solving methods. This shall be used when a nonconformance to specification or requirements occurs. Any corrective or preventive action taken to eliminate the causes of actual or potential non-conformities shall be appropriate to the magnitude of problems and commensurate with the risks encountered. The supplier shall implement and record any changes to the documented procedures and Control Plan resulting from corrective and preventive action. When supplier non-conformances are identified within a COBHAM product line, and is determined to be significant in nature, a Corrective Action Request (CAR) will be initiated and sent to the supplier. Each COBHAM location will determine when a Corrective Action Request will be generated and will provide an appropriate feedback format (Supplier Corrective Action Report). Once the Corrective Action Request is made the following steps will be implemented: The supplier and/or assignee will sign to acknowledge receipt and investigate the system deficiencies and provide a detailed and complete plan to correct using the format and content required by COBHAM. Responses are to include adequate detail and supporting data to assure COBHAM that appropriate system corrective actions have been taken. Responses are to be returned by the date required by the COBHAM coordinator. Written responses will include: Identifiable contact person: Identify the contact person(s) responsible for this CAR (if other than assignee) and immediately return to the designated COBHAM coordinator. Depending on the scope of the issue, this may require formation of a cross-functional team. Definition of the problem: A verbatim restatement of the deficiency/condition as documented in the complaint and if necessary restated in terms of the suppliers process, but it may also include enhancements to clarify the problem. The make-up of the team should be reflective of the defined problem. Immediate Containment Action: Action taken immediately upon identification of the potential noncompliance, such as rejection tags, line checks or supplier notification. This section should describe actions taken by the supplier to correct symptoms in the short term. The response should include an evaluation of all affected inventory (i.e., all at risk population, internal or external of parts and/or product); verification of all currently assumed process/product controls and when, where, how, and by whom containment action will be or has been made. Potential ramifications of findings should also be investigated and dealt with. For example, if the finding is that out-of-date drawings and materials were found, the supplier should investigate and record whether any parts were made using the drawings and materials, and what the disposition was of affected parts. Containment actions must be completed within the appropriate time indicated by the COBHAM facility. Failure to do so will negatively impact the supplier quality performance metric. Identify and Verify Root Cause: The source or origin of the noncompliance, as well as any contributing factors involved. A finding is generally a symptom of a root cause problem. This section records the supplier s analysis of the finding to determine the root cause of the problem. A root cause is usually found in inadequate procedures, processes, or in noncompliance (whether intentional or accidental) in one or more of these areas. Extensive analysis is called for in root cause identification. Detailed, in-depth questions should be asked (i.e. 5-Why s), and appropriate analytical tools can be used to confirm and verify results. If there is a management problem, it should be revealed. Implement Root Cause Corrective Action: The remedial corrective action implemented to address the source or root cause of the noncompliance that will preclude recurrence. The response to root causes should, at a minimum, include changes to procedures, processes and/or training. Root cause correction involves long-term prevention and process improvement rather than an immediate fix. Root Cause Corrective Action must be implemented within the time frame agreed to with the COBHAM facility. Failure to do so will negatively impact the supplier quality performance metric. The supplier should also verify that the committed corrective action has been implemented and that the root cause corrections have been accomplished. Follow-up and Preventive Action: An audit to ensure that the committed corrective action plan has been found to be effective as implemented in precluding recurrence of the noncompliance. This section addresses monitoring of both symptoms and root cause correction. These monitoring activities should be added to the supplier s internal audit program. The supplier will provide periodic corrective action status reports if/as directed by the COBHAM coordinator. Failure to respond to requests as required will result in procedural escalation to the appropriate the COBHAM Supplier Development Manager and or Quality Assurance Manager. Any questions are to be directed to the COBHAM coordinator. Assignee s written corrective action plan will be returned to the responsible COBHAM coordinator for review of adequacy and effectiveness. This may require an on-site visit at the assignee s facilities. Assignee will be notified of acceptance or rejection of plan upon review. Guide for Suppliers Page 13 of 18

14 Supplier Corrective Action Processing The COBHAM coordinator will review the response for the following considerations: Does the team appear satisfactory to answer the corrective action request? Has the problem been correctly described, properly noting, When, What, Where and How? Did containment consider inventories at the supplier, in transit, warehouse, and the COBHAM facility? Did containment verify current controls are in place and operating? Has the customer been protected against suspect material being shipped? Does the investigation adequately demonstrate a connection between suspected caused and the actual problem being investigated? Will the corrective action affect any other product? If the solution is to be monitored, has the criteria for monitoring been identified? Is corrective action appropriately documented? Have implementation dates been identified? Has material been produced with the solution implemented? Was the corrective action effective based on additional shipments? Have the actions to prevent recurrence been successful? Were controls plans etc, revised as necessary? Guide for Suppliers Page 14 of 18

15 Quality Assurance Agreement (QAA) In order to establish cooperation between the Supplier and COBHAM for a long-term, trusting and fair partnership, COBHAM will conclude a Quality Assurance Agreement (QAA) with selected Suppliers. This will relate either to the entire scope of delivery or to individual products/product groups. The QAA shall regulate the basic collaboration. The following, among other items, shall be harmonized in concrete terms in the QAA: Quality objectives for components/materials Exchange of quality data (i.e.: Control Plan) Processing times in the case of complaints (i.e.: Supplier Corrective Action reports) Tests at the supplier s end and at the COBHAM Product Line. Contacts and information channels Information in the case of changes Components/materials concerned Packaging and identification of packaging The QAA supplements our Terms and Conditions of Purchase in relation to matters that are required in order to secure the necessary product quality. The QAA shall be harmonized with the supplier prior to order placement and signed by both parties. Guide for Suppliers Page 15 of 18

16 Definitions Appearance Item Part designated on an engineering drawing that requires approval for appearance characteristics, such as color, grain, texture, etc. AS-9100 Is the QM standard for the Aerospace Industry. Attribute Qualitative data that typically show only the number of articles conforming and the number failing to conform to a specified criterion. Examples include characteristics such as the presence of a required label, installation of all required fasteners, and acceptability to a specification when measured on a go/no go gage. The use of attributes to evaluate stability is discouraged. When another form of evaluation is nonexistent, p, np, c or u charts for attributes can be used for process control. Capability It is determined using data from control charts. The control charts shall indicate stability before capability calculations can be made. When analysis indicates a stable process and a normal distribution, the indices Cp and Cpk can be calculated. Capability indicates the total range of inherent variation in a stable process. Continual Improvement Meeting and exceeding customer needs and expectations on an ongoing basis at a cost that represents value to the customer by: (1) reducing variability, cost and waste through incremental improvements in existing processes, systems and products; and (2) innovating new products and processes. Note: Corrections to processes/products that do not meet current requirements is not considered a part of continual improvement. Control Chart Graphic representation of a characteristic of a process or a product showing plotted values of statistics gathered from that characteristic and statistically based control (action) limits. It has three basic uses: (1) to determine if a process is in control; (2) to aid in achieving and maintaining statistical control, especially in avoiding over adjustments; and (3) to evaluate continuous improvement efforts. Control Limit Line on a control chart that defines the limit of the natural variation of the process. It is used as a basis for judging the source of the variation from one data point to another. A variation beyond a control limit or other non-random patterns, such as trends or runs, is evidence that special causes are affecting the process. A control limit relates to statistics calculated from process data and should not be confused with engineering specifications (which are requirements for individual parts). Control Plan Written description of the system for controlling processes that produce products for COBHAM. Suppliers must establish a control plan for each new product and address all significant and critical design characteristics, process parameters and performance tests. Cp (Process Potential) Index which is the ratio of the tolerance range to the Six Sigma process spread without regard to the location of the data. The index is calculated after verifying that the process is in a state of statistical control. Cpk (Process Capability) A process capability calculation which considers both the normal process variation and the measure of central tendency for that process. It is calculated by dividing 3 sigma into the lesser of the Upper Specification Limit (USL) minus x, or x minus the Lower Specification Limit (LSL). Critical Characteristic Product requirement (dimension, specification, test) or process parameter which can affect compliance, performance and quality. Cross-Functional Team Consists of a design engineers, manufacturing and quality engineers, the supplier and other COBHAM personnel. Design of Experiments (DOE) Tool used to predict the effects of planned changes on a product or process. The effects of the planned changes are measured by observing the response of the product or process while controlling factors that are controllable and accounting for the effects of factors that are not controllable. The goal is to be able to identify root causes of variation in a significant product or process characteristic. Design Verification Checking by tests that the design concept selected will meet the requirements. The components used may be handmade or made using prototype tooling. First Article Submission Report (Initial Sample) Small quantity of products taken from a significant production run made with production tooling, processes and cycle times. An initial sample is checked by the supplier for conformance to every product requirement on applicable drawings and/or specifications. Five (5) Why s Method for determining root cause. It is performed by asking Why and incident or failure took place and then continuing to ask Why of each successive response. Guide for Suppliers Page 16 of 18