Confirmed Minutes s3

COATINGS OCTOBER 2016 CONFIRMED

CONFIRMED MINUTES OCTOBER 24-27, 2016 PITTSBURGH, PENNSYLVANIA, USA

These minutes are not final until confirmed by the Task Group in writing or by vote at a subsequent meeting. Information herein does not constitute a communication or recommendation from the Task Group and shall not be considered as such by any agency.

MONDAY, 24-OCT-2016 to THURSDAY, 27-OCT-2016

1.0 OPENING COMMENTS – OPEN/CLOSED

1.1 Call to Order / Quorum Check – OPEN/CLOSED

The Coatings Task Group (CTTG) was called to order at 8:00 a.m., 24-Oct-2016

It was verified that only SUBSCRIBER MEMBERS were in attendance during the closed portion of the meeting.

A quorum was established with the following representatives in attendance:

Subscriber Members/Participants Present (* Indicates Voting Member)

NAME COMPANY NAME

Ricardo Bove Embraer * James Dunn GE Aviation * Patrick Kiernan Rolls-Royce * Björn Kjellman GKN Aerospace Sweden AB * Dan Loveless Parker Aerospace * Dennis Meehan Pratt & Whitney John Merritt Sikorsky Lockheed Martin * Joel Mohnacky UTC Aerospace (Hamilton Sundstrand) Vice Chairperson * Francis Monerie-Moulin SAFRAN Group * Udo Schuelke Honeywell Aerospace Chairperson Jessica Shepard GE Aviation * Tetyana Shmyreva Rolls-Royce Yuichi Sugiyama Mitsubishi Heavy Industries, Ltd Shouxin Yang GE Aviation

Other Members/Participants Present (* Indicates Voting Member)

NAME COMPANY NAME

* Brent Bartlett Oerlikon Metco (Canada), Inc. * Phillip Brockman Techmetals, Inc. Laura Coffey Lucideon M&P Bethany Conley Techmetals, Inc. Steve Connally Curtiss-Wright * Francisco Contreras Gastelum Ellison Surface Technologies Joshua Crockett Ellison Surface Technologies Dan Cunningham Lucideon Chris Fredrickson Techmetals, Inc. * Dale Harmon Cincinnati Thermal Spray Secretary Alexander Klyuch Blades Technology Ltd Kazuhiko Kakinuwa IHI Corporation * Martin Lapierre Ellison Surface Technologies Mariah Lovejoy Ellison Surface Technologies Craig Nairn Heany Industries, Inc * Steve Payne Praxair Surface Technologies Peter Rowe Doncasters HQ Nicholas Schumacher Hohman Plating & Mfg Inc. George Siha Southwest United Canada * Ronald Stewart Ellison Surface Technologies * Vern Talmadge Howmet Thermatech Coatings Dave Thompson DCI Aerotech * Jeffrey Tomczak Techmetals, Inc. Yoshihiro Tsuda IHI Corporation Takamitsu Watanabe IHI Corporation Daniel Wiernecke Nordam Repair Division Tim Willyard Nordam Repair Division Wei Zhou Bekinfo Inc.

PRI Staff Present

Justin Rausch

1.2 Safety Information – OPEN/CLOSED

Safety information for the meeting, including the crisis and evacuation plans for the hotel, was reviewed.

1.3 Review Code of Ethics and Meeting Conduct – OPEN/CLOSED

Justin Rausch presented a tutorial explaining the functions of Nadcap and the CTTG, and reviewed the Nadcap Code of Ethics.

1.4 Present the Antitrust Video – OPEN/CLOSED

Justin Rausch showed a video on Antitrust, narrated by Joe Pinto, to participants.

1.5 Review Agenda – OPEN/CLOSED

The agenda for the meeting was reviewed. No changes were proposed or made.

1.6 Expectations – OPEN/CLOSED

Attendees were given the opportunity to identify expectations to be addressed during the week of meetings. A list was started in the closed meeting and reviewed again in the open meeting. Expectations beyond agenda items: clear vision of what constitutes a Supplier to Evaluate Impact on Hardware NCR, discussion on the search for auditor candidates, merging laboratory testing into the new job tracker format, discussion on the upcoming self-audit requirements.

1.7 Acceptance of Meeting Minutes – OPEN

Motion made by Vern Talmadge and seconded by Patrick Kiernan to approve the minutes for the June 2016 meeting held in London, England, United Kingdom without change. Motion passed.

2.0 REVIEW DELEGATION STATUS – CLOSED

Data was reviewed for CTTG Subscriber concurrence with audit report reviewer decisions. The delegated audit report reviewers (Jim Lewis, Bob Lizewski, and Justin Rausch) met the criteria of over 10% audits reviewed and greater than 90% concurrence. Their delegation is maintained.

3.0 TASK GROUP RESOLUTION – CLOSED

Presentation from Rolls-Royce – Patrick Kiernan updated the CTTG on concerns over issues found within Rolls-Royce’s Suppliers. Roll-Royce discussed potential changes to specification requirements for surface preparation. COATINGS OCTOBER 2016 CONFIRMED

Customer Notifications – The CTTG discussed customer notifications and the concern that the correct people are not being contacted by the Auditee. The CTTG determined that a system to control who the contact should be is not feasible, and the Subscriber Voting Members must follow up through their company to ensure the notification is correct.

Review of Audit 173491, NCR 3 – The Staff Engineer requested Task Group resolution to determine if requirements defined on a test report alone were sufficient. The CTTG decided that providing a parameter on the test report alone is not sufficient, and that parameters must be defined in work instructions.

4.0 AUDITOR CONSISTENCY – CLOSED

4.1 Review Observation Plan

The 2016 audit observation plan was reviewed. One of one candidates for observation for 2016 have been observed to date. Beyond the candidates for observation plan, three additional observations have been performed in 2016.

Audits that could be used for the 2017 audit observation plan were highlighted.

Three observation reports submitted after the June 2016 meeting were reviewed. Feedback was positive and no rating of ‘Does Not Meet’ was given.

4.2 Review Auditor Consistency Data

Auditor consistency data was reviewed. The review included: individual Auditor evaluations and Supplier feedback for all audits conducted between 1-May-2016 and 31-Aug-2016; peer comparison of average number of NCRs written per audit day; comparison of the number of NCRs written by an auditor versus the number of NCRs by the following auditor; and influence of failure criteria on written NCRs per audit; Supplier feedback comments were good, but there were some concerns over the number of Auditees who have indicated that the auditor was inconsistent compared to the previous auditor. Most of these comments pertained NCRs that were not identified on the previous audit.

As a result of reviewing auditor consistency data, the CTTG has requested to add a second redline report comparing NCR counts for an auditor versus the previous auditor. Additionally, the CTTG requested that Justin Rausch talk to an auditor about the importance of clear communication with the Auditee to ensure expectations are understood. This conversation had already been conducted during the 2016 Auditor Conference.

ACTION ITEM: Justin Rausch to add a redline report comparing NCR counts for an audit versus the previous auditor to the standard list of reports presented each Nadcap meeting. (Due Date: 31- Dec-2016)

4.3 Review Dashboard Metrics

The Coatings dashboard metrics through 30-Sep-2016 were presented by Justin Rausch and reviewed by the Task Group.

Frequency of Auditor Consistency Data Review, Goal Annually: Green – On the October 2016 meeting agenda (Reviewed every meeting).

Subscriber Observations Required, Goal Identified: Green – Identified Based on the CTTG Candidates for Observation Plan, only one observation is required for 2016.

Subscriber Observations Completed, Goal 75% Completed: Green – 100% Completed. The one observation required for 2016 has been completed. Supplier Feedback Question 15, Goal 95%: Yellow – 93% of Auditees answered “Yes” that the auditor was consistent compared to previous auditors for 139 of 149 audits conducted from 1- Sep-2015 to 31-Aug-2016.

5.0 VOTING MEMBER UPDATES & COMPLIANCE WITH VOTING REQUIREMENTS – OPEN

5.1 Current Voting Member Participation [Meetings and Ballots]

The compliance to voting requirements per PD 1100 was reviewed. Howmet Thermatech Coatings has not met requirements for maintaining its voting rights. The Task Group agreed to maintain voting rights with approval from the Chairperson.

5.2 New Voting Members

The following requests for additions or changes to voting membership were received and confirmed by the Task Group Chairperson pending verification of PD 1100 requirements:

 Subscriber Voting Member: UVM

 Supplier Voting Member: SVM

 Alternate: ALT

 Task Group Chairperson: CHR

 Vice Chairperson: VCH

 Secretary: SEC

First Surname Company Position: Meetings Attended Name (Month/Year) (new / updated role)

Martin Lapierre Ellison Surface ALT SVM (updated) Jun 2015 Jun 2016 Technologies Canada

5.3 Succession Plan

The current CTTG succession plan was reviewed with Udo Schuelke as the Chairperson, Joel Mohnacky as the Vice-Chairperson, and Björn Kjellman as the Alternate Vice-Chairperson. Dale Harmon as Secretary.

6.0 METRICS – OPEN

6.1 Nadcap Management Council (NMC)

The NMC metrics through 30-Sep-2016 were presented by Justin Rausch and reviewed by the Task Group.

Auditor Capacity, Goal 130%: Green – 144% capacity projected through December 2016.

On-Time Certifications, Goal 98% on-time: Yellow – 97%; one lapsed cert in September 2016.

Supplier Merit, Action Target Level 80%: Yellow – 72% on merit as of September 2016.

Cycle Time Jun 2016-Sep 2016, 46 audits

Total, Goal 53 days: Green Jul, Aug (48, 48) days. Yellow Jun (57) days. Red Sep (66) days, COATINGS OCTOBER 2016 CONFIRMED

Staff, Goal 17 days: Green all months (7, 9, 8, 14) days.

Supplier, Goal 28 days: Green Jul (27) days. Yellow Aug (30). Red Jun, Sep (34, 37) days

The CTTG analyzed the increase in Cycle Time and has identified trends with number of zero NCR audits, 5+ NCR audits, cumulative late days, and number of total audits closed, which are all contributing to the cycle time issues in months that are Yellow or Red. The CTTG will continue to monitor the decrease in Supplier Merit and the increase in Cycle Time to determine whether action is needed in the future.

7.0 FIRST TIME SUPPLIER FEEDBACK – OPEN

No first time Suppliers were in attendance.

8.0 RAIL (ROLLING ACTION ITEM LIST) – OPEN

The Rolling Action Item List (RAIL) was reviewed.

For specific details on all RAIL items, please see the current Coatings Rolling Action Item List posted at www.eAuditNet.com, under Public Documents.

9.0 INDUSTRY STANDARD CHAMPION REPORT – OPEN

The Coatings Industry Standard watch list was reviewed. Dan Loveless informed the Task Group that ASTM E4 was revised with no impact to CT checklists.

ASTM E92 will be added to the list of industry standards to monitor since it now controls significant items required by ASTM E384.

ISO 6508-1 has been revised, but Dan Loveless is unable to gauge the impact since he does not have access to this standard.

ACTION ITEM: Björn Kjellman to evaluate the changes to ISO 6508-1 for potential effect on AC7109/5. (Due Date: 20-Feb-2017)

10.0 SSC INTRODUCTION – OPEN

Jeff Tomczak, Coatings representative to the Supplier Support Committee (SSC), presented an overview of the SSC and its activities along with the agenda items for Tuesday’s general SSC meeting.

11.0 NCR ANALYSIS – OPEN

11.1 Top 10 NCRs for 2015/2016

Justin Rausch presented data of the top NCR paragraph references issued by checklist for the period of 01-Oct-2015 through 30-Sep-2016. Most checklists do not contain sufficient data for analysis. Potential checklist improvements were highlighted based on the data for AC7109, AC7109/1, and AC7109/5.

11.2 NCR Paragraph Reference by Auditor Report for 2015/2016

The CTTG reviewed data on NCR paragraph references by auditor covering 146 audits from 01Oct-2015 through 30-Sep-2016. This data closely linked to the Top NCR data and the presentations were merged to highlight potential checklist improvements. 12.0 ANNUAL PROGRAM DOCUMENT REVIEW – OPEN

Ballot comments for OP 1114 Appendix CT were resolved.

The Memorandum of understanding (MOU) with Chemical Processing for AC7108/1 was reviewed. The CTTG decided to suggest wording changes to replace a tradename. This change will be proposed to the Chemical Processing Task Group.

ACTION ITEM: Justin Rausch to review the proposed change to the AC7108/1 MOU with the Chemical Processing Task Group. (Due Date: 31-Jan-2017)

No other documents were changed.

13.0 AUDIT CRITERIA (CHECKLIST) REVISION – OPEN

13.1 AC7109/2 Rev D Ballot Resolution

Ballot comments to AC7109/2 Rev D were resolved. This checklist is ready for Task Group affirmation ballot. One remaining ballot comment is open with concerns if all items in Appendix A are required by industry standards or customer specifications.

ACTION ITEM: Subscriber Voting Members to review the list of parameters in proposed Appendix A in AC7109/2 against specification requirements. (Due Date: 31-Jan-2017)

ACTION ITEM: Justin Rausch to review the list of parameters in proposed Appendix A in AC7109/2 against AMS 2444 requirements. (Due Date: 31-Jan-2017)

ACTION ITEM: Justin Rausch to add definitions for aqueous cleaning and tolerance to the Glossary of Terms in the Coatings Audit Handbook. (Due Date: 20-Feb-2017)

13.2 AC7109/3 Rev G Ballot Resolution

Ballot comments to AC7109/2 Rev G were resolved. This checklist is ready for Task Group affirmation ballot.

13.3 AC7109/5 Rev G

A revision of AC7109/5 Rev G was begun and completed. This revision includes the introduction of job audit sections to track witness and verification tests. The CTTG determined residual stress testing would be moved to AC7109/1 with the next revision of that checklist. It will remain in AC7109/5 until that change is made. This checklist is ready for Task Group ballot.

13.4 AC7109/1 Rev E

Proposed changes for AC7109/1 were not ready at this time. Rolls-Royce is currently working on specification revisions that are not yet in place. The revision of AC7109/1 Rev E will begin once the changes to Rolls-Royce specification are complete.

In addition to the agenda items for Audit Criteria Revision, ballot comment resolution was also completed for AC7109/6 Rev D. This checklist is ready for a second Task Group affirmation ballot.

14.0 NCR CLASSIFICATION – OPEN

A sub-team proposed clarification to be included in the Coatings Audit Handbook on how a Supplier to Evaluate Impact or Hardware NCR is defined. The proposal provided guidance on the existing practice used within the CTTG. The proposal states that any violation to a customer specification or frozen process requirement is considered a Major NCR. Additionally, when a customer flows down an industry standard or when parts are certified to an industry standard, violations of that standard that pertain directly to the processing, testing, or calibration techniques/methods being performed by the Supplier are to be classified as a Major NCR. This proposal was approved by the CTTG, but further feedback was requested from Subscribers on frozen process practices before updating the Coatings Audit Handbook. COATINGS OCTOBER 2016 CONFIRMED

ACTION ITEM: Subscriber Voting Members to provide instructions on how frozen processes are to be interpreted and what parameters are considered significant per their specification requirements. (Due Date: 31-Jan-2017)

15.0 CONTINUOUS IMPROVEMENT INITIATIVE – OPEN

15.1 Pyrometry Technical Briefing Project Update

The Pyrometry Technical Briefing sub-team reported that the briefing was presented to Coatings Auditors during the 2016 Auditor Conference. The presentation was well received. An overview of the topics discussed in the technical briefing were presented to the CTTG.

ACTION ITEM: Justin Rausch to evaluate the possibility of sharing the pyrometry technical briefing with others and posting this information on eAuditNet. (Due Date: 30-Nov-2016)

15.2 Auditor Skills Matrix Project Update

The Auditor Skills Matrix Sub-Team reported on the matrix that had been developed. The matrix was reviewed and accepted by the Task Group. An overview of the results will be assessed by the CTTG during the February 2017 meeting.

ACTION ITEM: Justin Rausch to send the Auditor Skills Matrix to the Coatings Auditors for completion of the self-assessment. (Due Date: 31-Dec-2016)

15.3 Review Project List

The Continuous Improvement Projects and Potential Technical Briefing lists were reviewed. Projects that were completed (Auditor Skill Matrix) or no longer applicable (NCR categorization) were removed from the list, and two new topics were added (Vapor Deposition Technical Briefing & Auditor Interview Questions List Update).

15.4 Develop New Project Charter

The next two Continuous Improvement Projects were selected (Vapor Deposition Technical Briefing and Auditor Candidate Interview Candidate Interview Questions List Update) and the project charters completed. Sub-teams were formed to work on the projects and report out at the February 2017 meeting in New Orleans.

ACTION ITEM: Sub-team (Jeff Tomczak, Vern Talmadge, Francis Monerie-Moulin, Fabrice Crabos and Jim Dunn) to develop a vapor deposition technical briefing to be presented during the 2017 Auditor Conference. (Due Date: 05-Jun-2017)

ACTION ITEM: Sub-team (Dale Harmon, Jessica Shepard, Steve Payne, Bjorn Kjellman, Peter Rowe and Vern Talmadge) to update the Coatings auditor candidate interview question list with more relevant questions. (Due Date: 05-Jun-2017)

16.0 AUDITOR CONFERENCE REPORT – OPEN

Justin Rausch summarized the activities of the 2016 Auditor Conference. Topics included recent checklist revisions AC7109 Rev E, AC7109/4 Rev D, and AC7109/8 Rev NA; individual feedback provided to Auditors; technical training on pyrometry and surface preparation; Audit Effectiveness expectations; NCR data analysis; and job tracker changes.

The CTTG provided the following guidance on issues raised in the open discussion: Auditees cannot remove export controlled restricted technical data documentation from the facility, including to work from the hotel in the evening; the CTTG will look to restructure auditor training to incorporate more opportunities for sharing of best practices amongst auditors; Subscribers will investigate ways to make specification specific training available to auditors, but these trainings may be limited by the evolution of specifications over time, which has led to variations between specifications.

17.0 SSC REPORT – OPEN

Jeff Tomczak presented an overview of supplier news and other items of interest from the SSC meeting held Tuesday afternoon. For complete details, see published minutes of the SSC posted on www.p-r-i.org.

18.0 NMC, AQS, AND PLANNING & OPS REPORT – OPEN

Vern Talmadge updated the CTTG on items of interest from the Nadcap Management Council (NMC). For complete details, see published minutes of the NMC posted on www.p-r-i.org.

Joel Mohnacky reported out on the Aerospace Quality Systems (AQS) liaison meeting. AQS is continuing to review checklists for QMS redundancy.

Justin Rausch briefed the CTTG on items of interest from the Planning and Ops meeting. Major discussion topics were: communication between AQS and other commodities on what AQS audits are of interest for observations, new self-audit requirements, MOU between MTL & HT for AC7101/3 and AC7101/4.

19.0 NEW BUSINESS – OPEN

No new business was presented.

20.0 MEETING CONCLUSION – OPEN

20.1 Review Expectations

All expressed expectations for this meeting were met.

20.2 Agenda Items for Next Meeting

The next meeting will be 20-Feb-2017 to 23-Feb-2017 in New Orleans, Louisiana, USA. Proposed agenda items beyond the standard items include: OP 1110 Failure Criteria; self-audit requirement overview; AC7109/1 revision; ballot comment resolution for AC7109/5; AC7109/2 Appendix discussion based on customer requirements; Continuous Improvement project report- outs for Vapor Deposition Technical Briefing and Auditor Candidate Interview Questions List.

20.3 Review New Action Items

New action items were documented by CTTG Secretary Dale Harmon. For details, see the Coatings Rolling Action Item List (RAIL) posted at www.eAuditNet.com.

20.4 Meeting Feedback

Meeting feedback was positive. Concerns were expressed over Coatings meeting room shape and climate control.

ADJOURNMENT – 27-Oct-2016 – Motion made by Vern Talmadge and seconded by Steve Payne to adjourn the meeting at 11:30 a.m. Motion passed.

Minutes Prepared by: Dale Harmon [email protected] Justin Rausch [email protected]

RAIL: See www.eAuditNet.com/Public Documents/Coatings COATINGS OCTOBER 2016 CONFIRMED

***** For PRI Staff use only: ******

Are procedural/form changes required based on changes/actions approved during this meeting? (select one)

YES* ☐ NO ☒

*If yes, the following information is required: Documents requiring revision: Who is responsible: Due date: