NADCAP NEWSLETTER

NOVEMBER 2017

C O N T E N T S

1 ProprietaryInformation and Nadcap

3 Nadcap MTL Audit Insight

9 OP 1105 - Audit Process

11 The Role of the Company Administrator in eAuditNet

13 The Nadcap AuditeeCommunicationsKit

15 The Importance of Asia

WELCOME TO THE EIGHTH ISSUE

PROPRIETARY INFORMATION AND NADCAPThe term ‘proprietary information’ is used throughout the Nadcap program, butwhatdoesthetermmeanforproprietaryinformationbelongingspecificallytotheSupplier*?ThisarticlewillattempttoclarifyhowproprietaryinformationbelongingtotheSupplierishandledduringtheNadcap audit.

ToconductandreviewaNadcapaudit,informationmustbe shared with the Auditor, Audit Report Reviewer, and

Continued on next page

ThisistheeighthissueofthisNadcapnewsletter.PRIhasbeenpublishingandsharing this content since September 2015. I would like to thank everyone whohasgivenusfeedbacktohelpimprovethisnewsletter,andforthepositivecommentsmystaffandIhavereceivedonthecontenttodate.

TheintentofthenewslettercontinuestobetodevelopcontentforcompaniesthatarenotnormallyabletosendarepresentativetoNadcapmeetings,tosharetechnicalinformationandknowledgethatwillhelpthembetterprepareforaNadcapauditandunderstandhowtoutilizeNadcapeffectivelytoimprove their performance.

EachnewsletterincludesarticlesdesignedforthewholeNadcapSuppliercommunity.Inthisissue,thereisanarticleclarifyingtheroleoftheCompanyAdministrator in eAuditNet, and one explaining how the audit process works, as described in OP 1105. Also highlighted are the importance of Asia within theNadcapcommunity,howtodealwithproprietaryinformationduringtheNadcapauditprocessandthenewNadcapAuditeeCommunicationKit.

InadditiontogeneralNadcaparticles,eachnewsletterhasaparticulartechnicalfocus.Inthisissue,thereisdetailedinformationregardingNadcapMaterialsTestingLaboratories(MTL).Morethan240NadcapMTLauditsareconductedannually,yetweknowthatmanypeoplearenotabletoattendNadcapmeetingsandbenefitfromfreetrainingandotherinformationsharedthere.

Ihopeyoucontinuetofindthecontentvaluable.

Joseph G. PintoExecutiveVicePresident&ChiefOperatingOfficerPerformanceReviewInstitute

I N B R I E F. . .

Nadcap is an approach to conformity assessment that brings together technical experts from Industry to manage the program by establishing requirements foraccreditation,accreditingSuppliersanddefiningoperationalprogramrequirements. This results inastandardizedapproachto quality assurance and areductioninredundantauditingthroughouttheaerospace industry.

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

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

NADCAP NEWSLETTER

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PROPRIETARY INFORMATION AND NADCAPContinued from previous page

Subscribers.AtypicalquestionreceivedbyPRIfroma Supplier is: ‘My procedures and processes are considered proprietary; I am concerned about sharing themwiththeAuditorandpostingthemineAuditNet.WhatshouldIdo?’

The s-frm-20 Supplier Agreement, which can be found in eAuditNet under Resources / Documents / Procedures and Forms / Nadcap Forms / s forms as shown below must be signed/acknowledged prior to the audit taking place.Itstatesin3.01(a)‘inthecourseofthePRIAudititmaybenecessaryforSuppliertoprovideinformationwhichcouldinclude,inwholeorinpart,informationconcerningconfidentialand/orproprietaryinformationbelongingtoSupplierorrelatingtoSupplier’sbusinessaffairs’.

Theexpectationisthatproprietaryinformationbelonging to the Supplier needs to be disclosed during the audit process; however, there are controls in place toprotectproprietaryinformation.BothAuditorsandSubscriberssignagreementsstatingthattheyarenottoshareoruseproprietaryinformationobtainedaspartoftheauditprocess.Inaddition,sharingordisclosingproprietaryinformationdoesnotnecessarilymeanthatcopiesofproprietaryinformationmustbeprovidedto

all persons associated with the audit for them to keep. Atdifferentphasesoftheaudit,proprietaryinformationshould and can be shared.

Prior to the audit, the Supplier may be requested by someTaskGroupstopostspecificpre-auditdocumentsineAuditNet.Whenthisnewfunctionalitywasaddedto eAuditNet, the system was designed to strictly limit access to the documents to the assigned Auditor – not eventheStaffEngineerhasaccesstothisinformation.Inaddition,pre-auditdocumentsareautomaticallydeleted from eAuditNet when the audit is closed, or 120 daysaftertheauditenddate.Regardless,theSuppliermaystillchoosenottopostpre-auditdocumentationineAuditNet.ThedocumentationcanbeprovidedtotheAuditoron-site.However,thismayrequiretimetobeaddedtotheaudittoreviewtheinformationon-siteiftherequiredpre-auditdocumentsarenotsubmittedinadvance.

During the audit, the Supplier is obligated to share relevantproprietaryinformationwiththeAuditor.ThisisstatedspecificallyinArticle3.01(b)oftheSupplierAgreement-‘whiletheProprietaryInformationisrecognizedasthepropertyofSupplierorthecontractorsortheirSuppliers,suchconfidentialityshallnotbeareasonfornondisclosuretoPRIAuditors’.TheagreementgoesontostatethatitistheSupplier’sresponsibility to inform the Auditor of documents that areproprietaryandtomarkthem‘proprietary’.

Theagreementstipulatesthatproprietaryinformationmust be disclosed, but this does not mean that a copy oftheinformationmustberetainedbytheAuditor.Itis perfectly acceptable to show the document to the Auditor and not allow the Auditor to leave the facility with the document. Lastly as stated earlier, the Auditor isobligatedtokeepallproprietarySupplierinformationconfidentialpertheirIndependentContractoragreement with PRI.

Non-conformance(NCR)resolutionisthelastphaseofthe audit process that may require Suppliers to share proprietaryinformation.TheNCRresolutionprocess

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requiresSupplierstoprovideobjectiveevidenceofactionstakentopreventrecurrence.TheAuditReportReviewerneedstoconfirmthattheactionhas been incorporated into the system, which means verifying that the content in the document matches thewrittenresponse,andthatthedocumentrevisionwas implemented. In the event there is a concern aboutpostingproprietaryinformation,Supplierscanremoveproprietaryinformationfromthedocumentorattachonlythesectionofthedocumentthatpertainstothecorrectiveaction.ItisimportanttoemphasizethatSuppliersshallnotpostanyproprietaryinformationbelongingtoathirdpartye.g.customerspecification,orindustrystandardintoeAuditNet.ThirdpartyproprietaryinformationcannotbeincludedineAuditNet without permission of the party owning the informationandwillberemovedimmediatelybytheAudit Report Reviewer. Suppliers are encouraged to communicate with their assigned Reviewer if they have anyquestionsorconcernsaboutinformationtobeattachedasobjectiveevidence.

HopefullythisarticlehasclarifiedtheexpectationsforsharingproprietaryinformationwithAuditorsandpostingtheinformationineAuditNet.Ifyouhaveanyadditionalquestions,youcancontactBobLizewski.

*In the context of this article the term Supplier applies to all Auditees including companies being accredited under the Subscriber Accreditation options.

TheNadcapMaterialsTestingLaboratories(MTL)TaskGroup was established in April 1992 and is currently led by Chairperson Amanda Rickman of Raytheon Co., supportedbyViceChair,DanGravesofUTCAerospace(Goodrich).TheMTLTaskGroupauditsaerospacelaboratoriesconductingmetallicmaterialtesting.Within the Task Group, there are over 80 industry representatives–29NadcapSubscriberrepresentativesfrom17companiesand57Supplierrepresentativesfrom46companieswhoactivelyparticipateinthetechnical discussions and decision making.

MuchofthisactivitytakesplaceattheNadcapmeetingsthatareheldthreetimesperyear,buttheTaskGrouprecognizesthatnotallindustrystakeholdersareabletoparticipateandbenefitfromtheopportunitiesthatthemeetingsrepresent,suchaslearning,debatingandnetworking.

Consequently,thisarticleisintendedtoassisttosomedegree, by providing insights and sharing lessons learned regarding the Nadcap MTL audit experience.

Additionally,NadcapMTLinformationissharedatregionaltechnicalsymposiaorganizedbyPRI,thenot-for-profitorganizationthatadministersNadcap.Formoreinformationontheupcomingregionaltechnicalsymposia, please contact PRI at pri@p-r-i.org

TheNadcapMTLTaskGroupdifferentiatesbetweentwotypesoflaboratories,whicharedefinedbelow:

• Captive Laboratory: a laboratory that belongs to a material, parts or subassembly Supplier, with systems that are dependent on those of the Supplier,andwithtestingcapabilitiesthatarelimited to those required by the Supplier‘s material. Acaptivelaboratorydoesnotacceptworkfrom an outside source.

• Independent Laboratory: a laboratory whose systems are not dependent Continued on next page

BobLizewskiQuality Manager Industry Managed Programs

T:+17247728681blizewski@p-r-i.org

NADCAP MTL AUDIT INSIGHT

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onthoseofspecificmaterial,partorsubassemblySupplier(ownershipbyamaterialSupplierdoesnot exclude a laboratory from being considered ‘independent’).Anindependentlaboratoryacceptswork from an outside source.

Forcaptivelaboratories,NadcapMaterialsTestingLaboratoriesrecognizesAS/EN/JISQ9100certificationsby Registrars that are approved and listed in the InternationalAerospaceQualityGroup(IAQG)OASISdatabase, which can be found at www.iaqg.org/oasis. The MTL Task Group also recognizesexistingqualitysystemsapprovalsintheformofISO/IEC17025certificationsbyanInternationalLaboratoryAccreditationCooperation(ILAC)approvedsource(www.ilac.org)orAuditCriteriaAC7006issuedbytheMTLTaskGroup.Wherenorecognizedqualitysystems approvals exist, Nadcap requires assessment usingAC7006AuditCriteriaequivalenttoISO/IEC17025(Note:AS/EN/JISQ9100accreditedcaptivelaboratoriesmustmeettherequirementsofAC7101/1AppendixA).

MTL Suppliers performing only specimen machining formechanicaltesting(AC7101/7testcodeZ,Z3only)shall have a quality system in accordance with Nadcap PD1100(e.g.AC7004,AC7006,AS/EN/JISQ9100orISO/IEC17025).MTLAuditCriteria,includingAC7006,canbefound in eAuditNet, under Resources / Documents.

MTL audits shall be conducted as follows: • FullAudit–18-monthaccreditation• On-SiteSurveillanceAuditSV1–18-month

accreditation• On-SiteSurveillanceAuditSV2–24-month

accreditation• Cycle restarts – Full Audit – 18-month

accreditationTotaltimebetweenfullauditsis5years.

It is important to note that if a laboratory does not qualify for a surveillance audit, an on-site audit of a

length and scope to be determined by a consensus oftheTaskGroupSubscriberMembersandtheStaffEngineer must be successfully completed to maintain accreditation.

Inadditiontothebaselinechecklists,thereareseparatechecklists for each of the individual processes covered bytheMTLTaskGroup.Processspecificrequirementshave been developed by the MTL Task Group and are:• AC7101/1 – General Requirements for All

Laboratories• AC7101/2 – Chemical Analysis• AC7101/3–MechanicalTesting• AC7101/4–Metallographyand

MicroindentationHardness• AC7101/5–HardnessTesting(Macro)• AC7101/6–Corrosion• AC7101/7–MechanicalTestingSpecimen

NADCAP MTL AUDIT INSIGHTContinued from previous page

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Preparation• AC7101/9–SpecimenHeatTreating• AC7101/11–FastenerTesting• AC7006–NadcapAuditCriteriaEquivalenttoISO/

IEC 17025:2005 Additionalinformationonthechecklistrequirements,questionintent,acceptableobjectiveevidence,andhelpful hints are included in the Audit Handbooks and supplemental guidance that are also available in eAuditNet in the Public Documents area as shown below.

Nadcap Materials Testing Laboratories Audit Insights

ThefollowingchecklistquestionsarethemostcommonthatNCRsarewrittenagainst.TheMTLAuditHandbookand the corresponding Handbook Supplements for each checklist provide many details to ensure a successful auditexperience.Bothdocumentsshouldbeusedascompanions to the Audit Criteria.

ThemostcommonNCRwrittenduringtheMTLNadcapauditisforthedetailofAuditee’sprocedures.ItistheexpectationoftheMTLTaskGroupthatallAuditCriteria are addressed procedurally. The most common findingsareassociatedwithAuditCriteriawhichstart‘Proceduresareused[...].’andtheAuditee’sproceduredoes not address the Audit Criteria.

Thephrase‘Proceduresareused[...]’wasadoptedinto the checklist to ensure that laboratories actually use procedures. Nevertheless, it does NOT mean that the exact words of the Audit Criteria must be in the procedure.Indeed,theprocedurewordingmustfulfillthe intent of the Audit Criteria. The level of detail to assure compliance to checklist requirements should be enough for the consistency of the procedure, training of a new trainee with background/experience typical forthelaboratory,andcontinuityofthelaboratory’sprocess.

The MTL Audit Handbook helps the Auditee and the Auditors to prepare for the audit. Supplemental guidance has also been developed for each checklist. As questionsareposedtotheTechnicalAdvisoryGroups(TAG)ortheTaskGroupingeneral,theguidanceagreedupon is included in the supplements.

Top Non-Conformance in Materials Testing Laboratories Audits

In common with many other Nadcap Task Groups, theMTLTaskGroupanalyzesandpublishes commonnon-conformances(NCRs) Continued on next page

NADCAP SUPPLIER SURVEY - SSC Inanefforttodrivecontinualimprovement,theNadcapSupplierSupportCommittee(SSC)recently released the 2017 Nadcap Supplier Survey. RespondingtothesequestionswillenabletheSSCto represent the Supplier community and promote positivechangestotheNadcapprogram.

The Survey is available to answer in English, French, Spanish, Chinese and Japanese on the Nadcap webpage: http://p-r-i.org/nadcap/

Ifyouhavequestions,pleasecontact NadcapSSC@p-r-i.org

NADCAP NEWSLETTER

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identifiedduringNadcapauditsonaregularbasis.TheintentistohelpSuppliersavoidsomecommonpitfallsand strengthen their internal process control.

To that end, as well as the common non-conformances, theTaskGroupoftenalsoprovidesguidanceandfurtherinformationabouteachnon-conformance.

Anumberofadditionalusefuldocumentsarepostedin eAuditNet under Resources / Documents / Public Documents/MaterialsTestingLaboratoriesonaregularbasis as shown below. It is strongly recommended that youreviewtherelevantfilestogaininsightsthatwillassistinNadcapauditpreparationandsuccess.

AC7101/1 – General Requirements for All Laboratories

ThemostcommonNCRwrittenagainsttheAC7101/1checklistrelatestowhetheracompany’sproceduresaredetailed enough or not. The most common causes of NCRs are:

• Proceduredetailforreviewingcalibrationcertificates

• Completionoftheappropriatesummaries(personnel,procedure,InternalRoundRobin(IRR)/ProficiencyTest(PT)Programs)

• DocumentationandperiodicobservationoftestsforlaboratorypersonnelperformingtestingtoproceduresusedforNadcaptesting

• ProcedurallyaddressNotificationtoNadcapinaccordancewithOP1107-PostAccreditationActions

AC7101/2 – Chemical Analysis

Thecompletionofthe‘ChemistryLaboratorymatrix’Figure 1 is the part of the AC7101/2 checklist against whichthemostcommonNCRswerewritten.Figure1summarizeslaboratories’analyticalcapability,precisionandcalibrationrange:• ThedatalistedinFigure1(includingrangeand

precision)isgeneratedbythelaboratory,usingapplicable equipment, and is documented

• Theuseoftheinstrumentmanufacturer’sdataforFigure 1 is prohibited

• Figure 1 must be completed for each element per test code for each alloy family within the laboratory scopeofaccreditation

ThemostcommonreasonsofhavingNCRswrittenagainst this part of the checklist were: • Confusion over the requirements• Datadoesn’tmatchthematrixinformation

(informationnotupdatedtoreflectchanges)• New equipment added• Newcapabilitiesand/ormaterialsadded• Insufficientreferencematerialstosupportthe

definedrange

AC7101/3 – Mechanical Testing

Inthischecklist,calibration/verificationistheareawheremostNCRswerewritten.Althoughtherearenot many reasons behind these NCRs, the two most common ones were: • Allrequiredcalibrationshavenotbeenconducted• Calibrationperformeddoesnotincludetherangeof

NADCAP MTL AUDIT INSIGHTContinued from previous page

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use of the equipment being calibrated AC7101/4 – Metallography and Microindentation Hardness

ThemostcommonNCRwrittenagainsttheAC7101/4checklistrelatestowhetheracompany’sproceduresaredetailed enough or not. The most common causes of such NCRs were:• Detailoftheetchingprocedure(defineprocess,etch

containerlabeling,solutioncontrol)• Detailoftheevaluationprocedure(preparation,

magnification,areasofinterest,etc.)

AC7101/5 – Hardness Testing (Macro)

IndentationspacingistheareaoftheAC7101/5checklistagainstwhichmostoftheNCRswerewrittenand the most common reasons behind this were: • Proceduredoesnotaddresstheindentationspacing

requirements• Procedure does not address the marking of

indentationwhichhavebeendisregardedforspacing issue

• Indentationswhichdonotmeetthespacingrequirementshavenotbeenidentified

AC7101/6 – Corrosion

IntheAC7101/6checklist,thelevelofdetailwithinacompany’sproceduresaddressingcorrosionistheareaagainstwhichmostNCRswerewritten.Thisismostlyduetothefactthatcompanies’proceduresdonot include the necessary detail to perform the test in relationtothetestmethodstandardandthelaboratoryequipment being used.

AC7101/7 – Mechanical Testing Specimen Preparation

The top NCR of the AC7101/7 checklist is related to howdetailedcompanies’proceduresare.WhenNCRs

werewrittenhere,itwasmostlyduetothefactthatprocedures do not include the necessary detail as required by the Audit Criteria.

AC7101/9 – Specimen Heat Treating

Inthischecklist,thelevelofdetailofcompanies’procedures is again the area where most NCRs were writtenagainst.Thetop3reasonswhymostNCRswerewrittenhereare:• Proceduresdonotthoroughlydefinetheprocessfor

determiningcycletime• Proceduresdonotdefinetimetolerances• Laboratories that do not use load thermocouples AC7101/11 – Fastener Testing

Aswithmanyofthechecklistsmentionedearlierinthisarticle,mostNCRswerewrittenduetothelevelofdetailin company procedures. There are two main reasons behind this: • Procedures do not contain the detail required to

consistently perform the test• DefiningtherequirementsforIRRandPTProgramsIt is strongly recommended that the Auditee reviews the latest list of Top NCRs posted in eAuditNet. This list can be found under Resources / Documents / Public Documents/MaterialsTestingLaboratories/AuditDataInformationasshownonthenextpage.

Technical Advisory Groups The MTL Task Group has established Technical Advisory Groups(TAG)foreachAuditCriteria(ACchecklist).TAGisagroupoftechnicalexpertsgatheredtoofferexpertiseonspecificsubjectmatters.EachsubjectmatterdeterminedbyAuditCriteriaslashsheet identificationhasanassociatedTAG.

Continued on next page

COMING IN 2018

PRIandANABhaveagreedtocooperatetoprovideajointaudit/assessmentthatwillresultinaccreditationto both Nadcap and ISO/IEC 17025. PRI will be the administrator of the joint program.

TheMTLTaskGroupwillmaketheaccreditationdecisionandissuetheaccreditationforNadcap. ANABwillmaketheaccreditationdecisionandissuetheaccreditationforISO/IEC17025.Atthistime,itwillbe limited to Suppliers in the United States.

NADCAP NEWSLETTER

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NADCAP MTL AUDIT INSIGHTContinued from previous page

A TAG is also established to support approval of IRR andPTPrograms.TheprocessforutilizationoftheTAGprocess is outlined in the MTL Audit Handbook.

Topics for TAG support may include:• ClarificationofAuditCriteriabeforeorafteran

audit. TAGs should not be used to resolve issues between a Supplier and an Auditor during an audit. TAGinterpretationshallnotbeusedduringnon-conformance closure.

• Request for Audit Criteria change• RequestforHandbookchangeorcontentaddition• Issuesofperceivedinconsistentinterpretationsof

Audit Criteria by Auditors

• ConflictingopinionsaboutAuditCriteriainterpretations

• Questionsaboutplannedobjectiveevidence.Anexamplecouldbe:‘Mycertificationsays‘perASTME18’.IsthatgoodenoughforAC7101/1ParagraphX?’)

Language

TheofficiallanguageforNadcapdocumentation,conductingNadcapaudits,andauditreviews,isEnglish.The reason behind this is that the Nadcap Task Group, which develops the audit checklists and reviews the audit results, is formed of industry experts from differentcountries,speakingdifferentlanguages.Astherecognizedinternationallanguageoftheaerospaceindustry, working in English makes the Task Group activitymucheasier.

Documents shall be provided in English, unless an alternativelanguageisagreeduponbytheassignedAuditor. If companies wish to have a Nadcap audit conducted in a language other than English, they should contacttheirassignedAuditorasearlyaspossibletofindanagreement.PRIalsoofferstheopportunitytoaskforanAuditorwithspecificlanguageskillswhenschedulinganauditineAuditNet(subjecttoavailability).However,all NCR responses, dialog in eAuditNet, and relevant paragraphsofdocumentssubmittedasobjectiveevidenceofcorrectiveactionshallbeinEnglish. Memoranda of Understanding with other Task Groups

The MTL Task Group has Memoranda of Understanding (MoUs)withotherTaskGroupstoshareauditchecklists.This occurs when there is a degree of overlap between thescopeofaccreditationavailablefromdifferentTaskGroups.Insteadofhavingauditsacrosscommoditiescoveringduplicatetopics,whichwouldbecostly,timeconsuming and non-value added - exactly what Nadcap was established to avoid! - Task Groups may come to an agreementtoaccepteachother’sauditresultsinlieuofconductingtheirown.

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The current list of Task Group MoUs, including details of each MoU, can be found on eAuditNet under Resources / Documents / Public Documents / General Documents / MOU Matrix. The MTL Task Group has MoUs with the: • CoatingTaskGroup–AC7109/5:Coatings

Evaluations• HeatTreatTaskGroup–AC7102/5&AC7101/5:

HardnessTesting• HeatTreatTaskGroup–AC7102/8:HeatTreating

Pyrometry• WeldingTaskGroup–AC7110/13:Evaluationof

Welds Overall Best Practice Recommendation

The key point here is to conduct a good and thorough self-auditpriortotheNadcapauditanddefineallNadcap MTL Audit Criteria procedurally. It makes theAuditors’jobaloteasierwhenyoulistwhereNadcapquestionsarecoveredinyourproceduresorspecifications.Inanycase,itisarequirementtoshowevidence with the upcoming release of AC7101/1. Hopefully,thisarticlereachesmanyoftheSuppliersthinkingaboutgettingaccreditedorabouttogothroughareaccreditationauditforMTL,andhelpsthemavoidthe most common non-conformances.

Formoreinformation,pleasedonothesitatetocontactKevinWetzel.

EverystepofaNadcapauditisgovernedbyaspecificNadcapOperatingProcedure(OP).Theauditprocessisnoexceptionandisgovernedby‘OP1105-AuditProcess’,whichcanbefoundineAuditNet,underResources/ProceduresandForms/OperatingProcedures.

OP1105appliestoallaudits–withtheexceptionofthepre-assessmentaudits–andincludesauditpreparation,on-site audit, and the issuance of non-conformances andobservations.

AsafirststepfortheAuditee,OP1105requiresaself-audit,usingtheapplicableAuditCriteria(AC)associatedwiththeauditscopeforinitial,addscope,andreaccreditationaudits.Thisinformationcanbefoundin eAuditNet under Resources / Documents. The self-audit shall document where the evidence of compliance may be found, for each requirement as applicable, and be uploaded to eAuditNet at least 30 days prior to the audit scheduled start date per OP 1105. It is crucial to remember that if the Auditee does not provide the self-audit to the Auditor as required, the Auditor shall issue a non-conformance.

Documents shall be provided in English, the Nadcap officiallanguage,unlessanalternativelanguageisagreed upon by the assigned Auditor. The main reason behind this requirement is that the Nadcap Task Groups are made up of members from all around the world, whospeakdifferentlanguages,whichmakestheuseofthe English language easiest for everyone.

Restricted technical data shall not be recorded or attachedwithinthesubmitteddocuments.Thisisparticularlyimportantas,ifpotentiallyrestrictedtechnicaldataisidentifiedpriorto,orduringanaudit,wheretheaudithasbeenclassifiedbytheAuditeeasnon-ITAR/EAR in eAuditNet, it is possible that the audit may not be able to proceed as scheduled.

Nadcap Auditors are trained to conduct

Continued on next page

OP1105-AUDITPROCESS

KevinWetzelSeniorStaffEngineerMTL

T:+17247728652kwetzel@p-r-i.org

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OP1105-AUDITPROCESSContinued from previous page

anopeningmeetingatthestartoftheaudit.ItgivesboththeAuditorandAuditeetimetodiscussthecontentandplanfortheaudit.Theauditofficiallycommencesattheconclusionofthisopeningmeeting.Itis important to note that the Auditee may terminate the auditatanytimeafterthisopeningmeeting.

Oncetheaudithasofficiallystarted,theAuditorshallconduct the audit in accordance with the guidelines provided in the General Auditor Handbook, which can be found on eAuditNet, under Resources / Documents / Public Documents and then the selected commodity. Another key point for every Nadcap audit is the audit scope. No scope for which the Auditee has capability and was originally agreed to at the start of the audit canbedeletedwithoutapprovaloftheapplicableStaffEngineer.

During the audit, the Auditor shall document non-conformances in eAuditNet. All non-conformances shall be documented in accordance with the General AuditorHandbookandthisprocedure(OP1105)andshallonlybeidentifiedagainstarecorded‘NO’answertotherelevantchecklistparagraph(s).Inaddition,therearethreereasonswhichautomaticallyclassifyanon-conformance as major:• Supplier to evaluate impact on hardware• Nonsustainingcorrectiveaction• Systemic Anyinstancesofnonsustainingcorrectiveactionor recurring non-conformance shall have the item ‘nonsustainingcorrectiveaction’checkedbytheAuditor.The Auditor will document in the non-conformance text thatthisisarepeatfinding,andreferencethepreviousaudit number and non-conformance number. As a result,anadditionalnon-conformancewillbewrittenforfailureofthecorrectiveactionsystemtoassuretheeffectivenessoftheactionspreviouslytaken.

Unlikemajornon-conformances,theresolutionofminornon-conformances may be accepted on-site by the Auditor. When the Auditor is able and agrees to do so,

he/shewilldescribetheactiontakenbytheAuditee.ItwillstillberecordedineAuditNetforcompleteness.It is important to remember that during the audit, the Auditorwillverifytheeffectivenessofcorrectiveactionstaken from both major and minor non-conformances from the preceding audit, whether accredited or failed.

TheAuditorwillendtheauditataclosingmeeting,during which he/she will provide the Auditee with adraftdocument,hard-copyordigital,detailingallnon-conformancesandobservations.ThismeetingisthebesttimefortheAuditeetoreviewanddiscussallnon-conformancesandobservationswiththeAuditortoensurecompleteunderstanding.Thisisparticularlyusefulifthereisanydifferenceofopinionorconfusionabout any part of the audit report. If needed, the AuditeeandtheAuditorcanphonetheStaffEngineerduringthismeetingtogetclarification.TheAuditorwillthen post the audit report to eAuditNet within three working days of the last day of the audit, or series of conjoined audits. Formoreinformation,pleasecontactyourStaffEngineeror Dave Marcyjanik.

NADCAP CHECKLIST AC7004

AsofOctober6,2017,accesstotheAC7004checklist on eAuditNet has been restricted to eAuditNet users registered at companies with an AC7004auditwithinitiatedorscheduledstatus,or currently in-progress or accredited. An email notificationwasissuedatthetimewithmoredetail.

Ifyouhavequestions,pleasecontactpri@p-r-i.org

Dave Marcyjanik StaffEngineerM&I,NDT

T:+17247727113dmarcyjanik@p-r-i.org

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All companies registered in eAuditNet have what is calleda‘CompanyAdministrator’profile,whichisakeyelementforthecompany’sdatasecuritymanagement.ThisarticleexplainsthedifferentfunctionalitiesoftheCompanyAdministratorprofileandwhyitissoimportant.

The main role of the Company Administrator is to managewhohasaccesstothecompany’sdataineAuditNetaswellaseveryprofile’sactivity.TheCompanyAdministratorcanonlyreviewuseractivityforusers associated with their company.

When a user registers for eAuditNet access and selects a company, they are put into the New User Queue

in eAuditNet for the Company Administrator to accept them and grant access, or reject them. The Company Administrator then assigns access rights to that individual in the User Manager application.IfyouareaCompany Administrator, once logged into eAuditNet, this tool is

underSupplierorSubscriberApplications,dependingon your status and then User Manager, as shown. As it is important to regularly review who can access company data, PRI sends a reminder email to all CompanyAdministratorprofilesperiodicallyiftheyhavenotaccessedtheUserManagerapplication.Supplierswill receive this email biannually while Subscribers will receive it if they have not accessed the User Manager applicationwithin60days.Inordertoensureasecuresystem, eAuditNet will ask the Company Administrator toreviewthelistofactiveusersandmakeupdatesasappropriate.OnceintheUserManagerapplication,there is a screen as shown on the next page. The easiest waytofindoutwhohasaccesstothecompanydata

isbyclickingthe‘Search’buttonwithoutenteringanysearch criteria. This way, eAuditNet will display all users associated with the company.

The search results will be displayed as shown at the bottomofthenextpage.Theentirelistofuserswithaccess to the company data is provided. Developed as asmarttooltohelporganizationsmaintainasecuresystem, the User Manager results:• Displaycheckmarkstoindicatewhichapplication

can be accessed by which user• Can be sorted out by columns by clicking on the

column headers • Offerthepossibilitytoviewasnapshotofany

user’sactivitybyclickingonthenumberinthe‘PageViews’column

Allusers’activitylogandapplicationaccessaredownloadabletoExcelbyclickingontheMicrosoftExcelicon.‘IncludeUserActivity’and‘IncludeApplication’checks are checked by default for every User Manager report, meaning that one and/or the other can be uncheckedbyclickingthe‘Option+’buttonifnotrequiredinthereport.Inaddition,theindividualprofileisshownbyclickingonauser’sname,including:• Applicationaccess link to make any changes to the

user’sprofile• Edittomakeadditionalchangessuchasediting

informationinauser’sprofile,addinganothercompanyassociation,editingapplicationaccess(tickacheckboxtoaddanapplicationprocesstothespecificuser’snameyouareediting)orremovingauserfromthecompanybyclicking‘De-activateUser’

PleasefeelfreetocontactPRIstaffateAuditNetSupport@p-r-i.orgwithanyquestionsabouttheUserManagerapplicationineAuditNetand/orsuggestionsonhowtoimprovethistool.

THE ROLE OF THE COMPANY ADMINISTRATOR IN EAUDITNET

A

E

D

C

B

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A

B

C

DE

THE ROLE OF THE COMPANY ADMINISTRATOR IN EAUDITNETContinued from previous page

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‘GoingthroughaNadcapauditrequiresdiligence,timeandthoroughpreparation’.Thisisthemostcommonfeedback PRI gets about Nadcap audits. This is especially trueforacompany’sfirstNadcapauditorforareaccreditationauditaftera24-monthmerit. BotheAuditNet(www.eAuditNet.com)andthePRIwebsite(www.p-r-i.org)arefullofresourcestohelpcompanies preparing for a Nadcap audit. There is such agreatamountofinformationavailableonthesetwowebsitesthatitmaysometimesseemdifficulttofindwhat you are looking for or even to know where to look.

TheNadcapSupplierSupportCommittee(SSC)createdanAuditeeCommunicationsKittohelpcompaniesfindthemostrelevantandusefulinformationneededtoprepareforaNadcapaudit.TheAuditeeCommunicationKitissenttoanyonewhoschedulesaNadcapaudit.It can also be found on eAuditNet under Resources / Documents / Public Documents / General Documents. It is recommended that preparing for a Nadcap audit takesatleast3-6months,dependingonwhetheritisafirstauditorareaccreditationaudit,onhowmuchresourceisavailable,andotherfactors.Creatingathoroughandrealistictimelineofalltherequiredtasksandactionsneededtohaveasuccessfulauditiscrucial.TheNadcapSSCputtogetheratimelinecharttohelpcompaniesintheirpreparation.Itcanbefound in eAuditNet under Resources / Documents / PublicDocuments/SupplierSupportCommittee/SSCDocuments.Thistimelinealsohelpscompaniestomeetone of the OP 1105 - Audit Process requirements which says that all Auditees shall have their self-audit uploaded to eAuditNet at least 30 days prior to the scheduled start date, including all required job audits.

TheAuditeeCommunicationsKitwalkstheAuditeethrough some important steps towards achieving a successful Nadcap audit. This includes going through some Nadcap key procedures which are:

• OP 1105 – Audit Process

• OP1107–PostAccreditationActions• OP 1110 – Audit Failure • OP 1111 – Supplier Merit Program • OP1114–TaskGroupOperation(yourspecificTask

Group’sAppendixmaycontainadditionalauditrequirements)

AlltheaboveOperatingProceduresandAppendicescanbe found in eAuditNet, under Resources / Documents /ProceduresandForms/OperatingProceduresandOP1114Appendicesasshownbelow.Thereisalsoasectioncalled‘AuditChecklists’whereofficialcopiesofallNadcapAuditCriteria(checklists)canbefound.Sincethe checklists are revised periodically, make sure to use thelatestrevisionofthechecklist(s)towhichyouwillbeaudited.

InadditiontotheNadcapOperatingProcedures,Appendices and Audit Criteria, the Auditee CommunicationsKitstressesthateAuditNetprovidesinformationspecifictoanyTaskGroup/Commodity,which PRI recommends Auditees review in preparationforaNadcapaudit.OnceloggedintoeAuditNet and under Resources / Documents, there are the following documents available, depending on the Special Process/Commodity:

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THENADCAPAUDITEECOMMUNICATIONSKIT

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• Word documents of the checklists, which are useful for performing a self-audit as they are editable so responses, and procedure and document references, can be typed in directly and uploaded into eAuditNet.Alternatively,theycanbeprintedandcompleted on paper, then scanned and uploaded into eAuditNet

• AuditHandbooks,whichmaycontainadditionalaudit requirements for your Task Group

• Top non-conformances, which give advice to companies preparing for a Nadcap audit and point outsomeofthekeyareastopayattentionto

• Symposia, which provide companies preparing for a Nadcap audit with a useful overview of some of the important requirements and recent revisions

• Newsletters,helpfultogainrecenttechnicalknowledge about the commodity and the audit process as well as recent updates about the Task Group

The PRI website, www.p-r-i.org,istheotherlocationwherealotofinformationisavailabletohelpcompaniespreparingforaNadcapauditand/orpromotingaccreditationormeritstatus.ThiscanbefoundintwolocationsonthePRIwebsite:• The‘PRIPerspective’sectionoffersvariousexecutive

briefingssuchas‘CreatinganEffectiveInternalAuditingProgram’,‘InternalAuditorTechniques’,‘RootCauseCorrectiveAction’or‘HowtoPromoteYourNadcapAccreditation’

• The‘KeyDocuments’ sectioncontainsthefollowingusefuldocuments:‘WhatYouNeedtoKnowAboutNadcap’,the‘SupplierTutorial’,the‘IntroductiontoPRI/Nadcap’,the‘NadcapAccreditationandMeritstatuspressreleasetemplates’

TheAuditeeCommunicationKithasbeendevelopedinorder to help companies preparing for a Nadcap audit findusefulinformationtosupporttheirefforts. Formoreinformationorifyouhaveanyquestions,please contact the Nadcap SSC at NadcapSSC@p-r-i.org

NADCAPAUDITEECOMMUNICATIONSKITContinued from previous page

EXPORT CONTROL: HOW TO BE COMPLIANT AttheOctober2017NadcapmeetinginPittsburgh,the SSC sponsored a session “Export Control: How to be Compliant”. Stephen Hall from the US Department of Commerce presented.

Forthosewhocouldnotattend,thepresentationis

available on eAuditNet at Resources / Documents /PublicDocuments/SupplierSupportCommittee(SSC)/SSCMeetingPresentations/October2017Pittsburgh.YoucanalsoviewitonthePRIwebsiteat http://p-r-i.org/about-pri/media-center/key-documents/

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PRIbeganoperatinginAsiain2003withonly5Nadcapauditsconductedacrosstheentirecontinent,coveringChemicalProcessing(CP),Coatings(CT),HeatTreating(HT),MaterialTestingLaboratories(MTL),andNon-DestructiveTesting(NDT).Sincethen,thenumberofauditshasbeengrowingsteadilytoreach930auditsconductedin2016,representing17%ofthetotalnumberofauditsconductedlastyear.AsinEuropeandtheAmericas,thecommoditieswhichseethegreatestnumberofauditsconductedinAsiaareChemicalProcessing,HeatTreating,andNon-DestructiveTesting. Although Nadcap audits have been conducted in Asia since 2003, the firstAsianSubscriberonlyjoinedthe program a few years ago. CommercialAircraftCorporationofChina,Ltd.(COMAC)becamea Subscriber in 2012, followed by MitsubishiAircraftCorporationin2014andSingaporeTechnologiesAerospace Ltd. in 2015. Two of the main goals of the Nadcap program are to encourage astandardizedapproachtospecialprocessactivityandareductioninredundantauditing.RepresentativesoftheAsianSubscribersandSuppliersarebecomingmoreandmoreactivewithintheNadcapManagementCouncil(NMC)andthedifferentNadcapTaskGroups(TG),providingamoreglobalperspectivetotheiractivities.

Nadcapwould,ofcourse,benefitfromevengreaterparticipationfromtheAsianorganizations.Inaddition,sittingintheTaskGroupswouldhelpthesecompaniesparticipateinthewritingoftheNadcapchecklists,whichareusedforthe Nadcap audits. This way, Asian companies could:

• Gaininsightsintoupcomingandpotentialchecklistandprocedurerevisions• Have their voices heard and taken into account for the future documents revisions and updates • HavetheopportunitytohelpimprovetheNadcapstandardizedapproachtospecialprocessactivityand

reinforce the global nature of the program

FormoreinformationorifyouwouldliketobemoreactiveintheNadcapprogram,pleasecontactLiuLe.

THE IMPORTANCE OF ASIA

Liu LeManagerPRIAsiaPacific

T:+861064619807lle@p-r-i.org

NADCAP NEWSLETTER

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Warrendale,PA15086USA+17247721616

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