Nadcap Overview

Nadcap Asia Symposium in Japan Oct31st-Nov 1st , 2011

1

Performance Review Institute (PRI)

• PRI is a not-for-profit affiliate of SAE International • PRI administers the Nadcap special processes accreditation program on behalf of its Subscribing Members and industry

2 PRI’s Mission

• PRI is a global provider of customer focused solutions designed to improve process and product quality by adding value, reducing total cost and promoting collaboration among stakeholders in industries where safety and quality are shared goals. • PRI is led by a Board of Directors with responsibility for strategic direction and financial stability • The Board is comprised of leading Quality Executives from some of the world’s largest aerospace companies

3 2011 PRI Board of Directors

. Stan Adachi . John Papadopoulos   United Technologies Corporation

. Robert Briggs . David L. Schutt  GE Aircraft Engines  SAE International

. Kristin Slyker . David Handley (Chairman)   BAE Systems (Operations) Limited

. Junji Tsuji . Michael Hayward  Ishikawajima-Harima Heavy Industries Co.  Corp. . Bernard Veyssière . Mario Langlois  EADS  Bombardier . Steve Wells . Jean-Jacques Orsini  Goodrich  Snecma . Li Wei . Andy Page  Aviation Industry Corporation of China  Rolls-Royce plc

4 Nadcap

• The leading, worldwide industry-managed cooperative program of major companies designed to manage a cost effective consensus approach to special processes and products and provide continual improvement within the aerospace industry Compliance – Control – Cost Savings – Risk Reduction

5 Nadcap • Special Processes are those processes where the parameters are directly influenced by component geometry and/or the results cannot be confirmed by inspection. e.g., NDT, Plating, Heat Treating. • Products are the manufacturing output of the combination of distinct materials, parts and/or processes which forms a whole. e.g., Composites, Elastomer Seals, Electronics. 6 Timeline of Primes

20 Americas Europe

15

10 13

5 2 2 4 4 5 4 4 2 1 3 2 2 2

Number of Primes of Number 0 1 1 1 1 1 1 1 1

2005 2008 1990 1991 1992 1994 1995 1998 2000 2001 2002 2003 2004 2006 2007 2009 2010 Year

7 Nadcap Accreditation Today

Special Processes Systems & Products

Non-Destructive Aerospace Coatings Electronics Testing Quality Systems

Non-Conventional Fluid Distribution Welding Composites Machining Systems

Chemical Conventional Materials Testing Sealants Processing Machining

Surface Nonmetallic Heat Treating Seals Enhancement Material Testing Nadcap Audit Process

Supplier Action PRI Staff Action 1 2 3 4

Request PRI Audit Auditor Suppliers Audit Scheduled Assigned

7 6

9 8 5

Task Group PRI Technical Audit Issue Cert Approval Staff Review Completed

Subscriber Action PRI and Industry Working Together

Establish Subscribing Suppliers’ PRI Staff Audit Members Feedback Criteria

Audit Criteria (AC): Document containing checklists or other surveillance tools to be utilized in the course of determining compliance to established industry standards and Subscribing Member requirements. Audit Findings and Responses

Reduced risk to industry:

• Rigorous procedures developed governing audit failure and its consequences • Supplier advisories issued industry-wide allowing Subscribing Members to take prompt action to prevent escapes • Task Group provides ultimate approval and acceptance of audit package

Major Nonconformance Minor Nonconformance: o The absence of, or systemic breakdown of, the Process Control o A non-systemic lapse in and/or Quality Management system. conformance to the Process Control and/or Quality Management o Any non-conformance where the system. effect impacts or has the potential to impact the integrity of the product.

Confidential Shared Program Management

Audit Checklist Process Evaluation/ Improvement

Auditor Selection/ Interview/Performance Subscribing Members manageIndustry key experts steps Corrective maintaining involvement Actions As manage all key steps Required and therefore regulatory compliance

Audit Audit Conducted Findings and Responses Audits

4769 4600 4389 4406 3871 3678

1198

13 Metric: Audit Review Cycle Time (MOS #16) - Initial

14 Metric: Audit Review Cycle Time (MOS #16) - Reaccred

15 Supplier Merit – All Sectors

16 Focus on Supplier

• Help improve special processor capabilities • Understand needs of suppliers and how to support them • Position Professional Development as a service to primes and suppliers Making Nadcap Global

• Auditor/Staff Language capabilities • Increase non-North American auditors and staff • Focus on needs of Suppliers and Primes from regions outside NA • Monitoring capability of local language audits Making Nadcap Global

• PRI recognizes that the internationalization of Nadcap and the acceptance of the program by the global aerospace industry – is key to the continual improvement of the industry and its Supplier base • At the same time, different countries/regions have different needs. PRI needs to understand needs of suppliers and how to support them • PRI has identified some country-specific focus areas where the key developments can be made

19 Nadcap in Brazil, China, Japan, India & Russia

• Brazil – has joined Nadcap as a pending Subscriber. Expect to have them as a Subscribing Prime by the end of next year. • China & Japan – PRI-JAQG Supplier symposium in Nagoya Oct 31st & Nov 1st – PRI-COMAC Supplier Symposium in Shanghai on 3rd of November • India – India Office plans: Decision on hold until December 31st. Evaluation of Prime & Supplier needs for PRI support in India continuing • Russia – Presented Nadcap at UAI Supplier Conference and agreed to co- operate with UAI. Contacts/meetings with UAC, Irkut, Surkoi, MATI and NIAT – Technical symposium is planned for 2012

Questions