Quality Supplier Management March 2008 Mike Gillette IPIC

Quality & Supplier Management March 2008 Mike Gillette IPIC Quality Assurance Manager Northrop Grumman Corporation 0 Copyright 2005 Northrop Grumman Corporation

Quality & Supplier Management Outline § History § Early Involvement § Proposal § ASMB § RFP § Source Selection § SDD § Production 1 Copyright 2005 Northrop Grumman Corporation

ICBMs – A continuing Success Story 1957 Atlas 1957 1959 1961 1964 1968 Thor Titan MM III 1950 s 1960 s • Atlas 1 st Launch (1957) • Thor 1 st Launch (1957) • Titan 1 st Launch (1959) • MM I 1 st Launch (1961) • MM II 1 st Launch (1964) • MM III 1 st Launch (1968) A Critical National Asset 1970 s • PK Go-Ahead (1972 ) 1989 1983 SICBM PK 1980 s 1990 s • PK 1 st Launch (1983) • REACT • GRP • PRP • SICBM Go-Ahead (1983) • PKRG Go-Ahead (1986) • SICBM 1 st Launch (1989 ) • ICBM Prime Award (1997 ) 2000 MM III SLE 2000+ • MMP • PSRE • SERV • REACT SLEP • ECS • ISMP • ICU Ø Hold Targets at Risk Ø Provide Deterrence Against Attack Ø Rapid Receipt and Response to Emergency Action Messages (EAMs) Ø Flexible Response Against Our Enemies Should Deterrence Fail In An Uncertain World ICBMs Continue To Be Important To Our National Defense 2 Copyright 2005 Northrop Grumman Corporation

Supplier Management Objectives Results § Over 3500 end items delivered to field since 2002 with essentially no quality issues Key Features Benefits § Well established process to identify and qualify new vendors § Programs executed on plan with no substandard parts or components delivered to field § Understanding of our needs as a customer and sound basis for shared success § Ensures timely awareness of difficulties and provides time to correct without impact to customer § Reinforces commitment to quality products throughout supply chain § Vendor oversight approach adapted to needs of supplier § Focus on developing and qualifying vendors to meet our high standards before production starts § Monitor suppliers, during design and production, for successful corrective actions addressing variances from plan § Multi-tier vendor audits and assessments § Suppliers evaluated for ability to consistently produce quality products 13 § No quality escapes to the field § Quality is built-in, not inspected -in Copyright 2005 Northrop Grumman Corporation

Process for Supplier Management Role of Program Manager and Engineers Production § Conduct program reviews every 6 -8 weeks §Cost, Schedule, Technical, Risk and Role of Program Manager and Engineers – Pre Award and Design § Conduct program reviews monthly §Cost, Schedule, Technical, Risk, and Corrective Actions to Variances § Conduct independent technical review for design reviews/audits § Establish Weapon System Integration test procedures § Monitor progress toward production readiness Acquisition Planning Contract/ Subcontract Awards Functional and Physical Configuration Audits Critical Design Review Weapon System Integration Testing Role of Quality Engineers – Pre Award and Design § Qualify supplier for specific work scope § Monitor supplier processes for compliance §Establish and monitor corrective actions 24 Corrective Actions to Variances § Approve Class I changes §Review Class II changes § Attend selected on-site joint reviews of sub-tier suppliers when necessary § Team with first tier supplier on supply chain monitoring §Establish baseline for production qualification §As necessary, develop or disqualify supplier prior to production readiness review § End Item Data Packet definition to ensure Low Rate Production Full Rate Production Deliver Accepted Products Production Readiness Reviews Role of Quality Engineers - Production § Participate in on-site joint reviews of sub-tier § § § suppliers Conduct on-site inspection of process compliance during each site visit §Establish and monitor corrective actions when necessary Conduct three-way (Government, Prime, Supplier) buy-off of products Resolution of material & process discrepancies (MRB) Copyright 2005 Northrop Grumman Corporation

Early QA Involvement § Proposal Phase § Participate in Alpha Negotiations § QA Submits a Basis of Estimate § Participate in Supplier Proposal Evaluation § Approver of Contract Deliverables Definition § Participate in the Final Proposal Review 5 Copyright 2005 Northrop Grumman Corporation

Early QA Involvement § Acquisition Strategy Make Buy (ASMB) § SQE is a Signature § SEIT is a Participant § Request For Proposal (RFP) § Contains a Mission Assurance Requirements Document Written by SQE in Concert With MA Team § SQE Reviews the Request for Proposal § Supplier Selection § Pre-award Assessment § Participate in Source Selection 6 Copyright 2005 Northrop Grumman Corporation

Early QA Involvement § Review & approval of Supplier/Subcontractor QA Plans § Conduct Sub-tier Supplier Assessment § Support Formal Reviews § SRR § PDR § CDR § TRR § PRR § Qualification Testing § Support Functional and Physical Configuration Audits § Conduct First Article Acceptance § Incoming Inspection Verification § In-Process Audit and Inspection Verification 7 Copyright 2005 Northrop Grumman Corporation

Supplier Development § Process Owner Reviews § Failure Modes and Effects Analysis (FMEA) § Develop/Review Work Instructions § Define/Develop/Document Critical Processes § Assist in Obtaining ISO Compliance § Review and Verification of Audit Results/Findings 8 Supplier Monitoring Supplier Audit IAW ISO 9000/AS 9100 Copyright 2005 Northrop Grumman Corporation

Supplier Monitoring § Surveillance Plan § Defines the Surveillance Program § Enforces the Mission Assurance Requirements § Surveillance Includes Mandatory Inspection Points § Production Processes § Focus on Process Improvement § Lean/Six Sigma § Quarterly Scorecard Input § Corrective Action 9 Copyright 2005 Northrop Grumman Corporation

Supplier Surveillance • Surveillance Includes Periodic Audits Development Production Calibration System S S Tool Control S S Internal/External QA Audit results F F Data Management S F Configuration Management F F Product Identification S S Metrics and Metrics Analysis S F Training Records S F Procurement System F S Corrective Action System F F Supplier Management F F MRB S F F = Frequent 10 S = Seldom Copyright 2005 Northrop Grumman Corporation

Supply Chain Management § Product Acceptance § Verification That All Items Are Being Delivered § Hardware, Software, Documentation, Test Results, Spares, Data and Records § Verification That All Items Meet Contractual Requirements § Item Built IAW the Documented System § All Requirements Are Verified § Records Are Available § As-Built Configuration Is Controlled 11 Copyright 2005 Northrop Grumman Corporation

Supply Chain Management § Product Acceptance Continued § Define Data Package § As-Built Configuration (Indentured Parts List) § Proof of Traceability Requirements Having Been Met § Open Action Items Are Documented § Non-Conformances are Properly Corrected § Waivers and Deviations are Documented § Incorporated ECP’s Are Listed § Review Build Paper § Recording of Critical Parameters § Certificate of Conformance Accompanied With Objective Evidence § Incident Reports 12 Copyright 2005 Northrop Grumman Corporation

Supplier Management Works at IPIC • • • • • • • • • • ~ 650 Prime WAWF Sell-offs per year (multiple items & locations) Summary q Early Participation in a Program q Mission Assurance Requirements Document Accompanies Every RFP q Assessments are Accomplished Upfront q Surveillance Plans are Defined and Followed q Product Acceptance/Delivery is Exhaustive and is Unacceptable Without Objective Evidence q Early Recognition of Supplier Development Requirements q Manage the Complete Supply Chain q Lessons Learned are Liberally Incorporated IPIC SQA Provides High Confidence in Fielded Product 13 Copyright 2005 Northrop Grumman Corporation