NMC STEERINGJUNE 2019

UNCONFIRMED

UNCONFIRMED MINUTES05-JUN-2019

PARIS, FRANCE

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

WEDNESDAY, 05-JUN-2019

1.0 OPENING COMMENTS

1.1 Call to Order / Quorum Check

The Nadcap Management Council (NMC) Steering Meeting was called to order at 9:00 a.m., 05-Jun-2019 by Chairperson Bob Koukol.

It was noted that only NMC Voting Members and invited guests of the chair were in attendance during the meeting. Invited guests of the Chairperson included:

Sheng Cheng (COMAC) Stan Trull (Honeywell Aerospace) Robert van den Bosch (The Boeing Company)

A quorum was established with the following representatives in attendance:

Subscriber Members/Participants Present (* Indicates Voting Member)

NAME COMPANY NAME

* Latch Anguelov SAFRAN Group* Tomohiko Ashikaga Mitsubishi Heavy Industries, Ltd.* Marion Blacas Airbus Helicopters* Pascal Blondet Airbus Commercial Aircraft* Richard Blyth Rolls-Royce* Craig Bowden BAE Systems – Air (UK) Vice Chairperson* Daniel Calderwood BAE Systems – Air (UK)

Delton Carter BAE Systems, Electronic SystemsSheng Cheng COMAC

* Russ Cole Northrop Grumman* Alessio Colombara Leonardo Helicopters

Stefania Dello Ioio Leonardo S.p.A. Divisione Velivoli* Rusty Freelen Lockheed Martin Corp.* Gina Fuzzell Lockheed Martin Corp.* Francois-Simon Gauthier Pratt & Whitney Canada* Greg Hall Northrop Grumman* Emily Hoiles Eaton, Aerospace Group* Bob Koukol Honeywell Aerospace Chairperson* Ralph Kropp MTU Aero Engines AG* Marc-André Lefebvre Héroux-Devtek* Jeff Lott The Boeing Company* Scott Maitland Collins Aerospace (Goodrich)* Roger Merriman Textron Aviation* Steven Meyer Spirit AeroSystems* Alex Olmedo Triumph Group* Ana Ottani dos Santos Embraer* John Pfeiffer GE Aviation* Per Rehndell GKN Aerospace Sweden AB

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* Norberto Roiz-Lafuente Airbus Defence & Space* Davide Salerno Leonardo S.p.A. Divisione Velivoli* Victor Schonberger Israel Aerospace Industries* Lindsey Shaw Raytheon Co.* David Soong Pratt & Whitney

Stanley Trull Honeywell AerospaceRobert van den Bosch The Boeing Company

Supplier Members/Participants Present (* Indicates Voting Member)

NAME COMPANY NAME TASK GROUP

* Jonathan Hebben Avcorp Composite Fabrication Supplier Support Committee* Elizabeth Herman Kaman Composites Composites* Tommy Howland Lee Aerospace Aero Structures Assembly* Shelly Lawless Meyer Tool Inc. Nonconventional Machining

* Johanna Lisa Continental Heat Treating / Quality Heat Treating

Aerospace Quality Systems

* Tammi Schubert Helicomb International Measurement & Inspection* Pete Scrimshire Special Metals – Incotest Materials Testing Laboratories* Wilfried Weber PFW Aerospace GmbH Heat Treating* Gary White Element Middleburg Heights Nondestructive Testing

PRI Staff Present

Ethan AkinsMark AubeleSusette EllisSusan FraileyMike GrahamMike HaywardConnie HessScott KlavonJim LewisKellie O’ConnorJon Steffey

1.2 Code of Ethics, Anti-Trust & Conflict of Interest

Bob Koukol reviewed the Code of Ethics, Anti-Trust and Conflict of Interest policy, and the video was viewed by the group.

1.3 Approval of Previous Meeting Minutes

Motion made by Jeff Lott and seconded by John Pfeiffer to accept the minutes from the previous meeting with a correction in paragraph 4.5 (changing the word “balance” to “ballots”). Motion passed, and the February 2019 NMC Steering meeting minutes were approved as amended.

2.0 NMC MEMBERSHIP

The following new NMC members were confirmed at this meeting by the Chairperson Bob Koukol.

Florian Breyer (Alternate for Liebherr-Aerospace SAS) Dan Loveless (Parker Aerospace) Marion Blacas (Airbus Helicopters) Alessio Colombara (Alternate for Leonardo Helicopters) Rupesh Patel (Alternate for Triumph Group)

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Stefania Dello Ioio (Alternate for Leonardo Divisione Velivoli) Delton Carter (Alternate for BAE Systems, Electronic Systems)

The following NMC members are resigning, as confirmed by the Chair:

Dave Isenberg (Parker Aerospace) Alessandro Miglio (Alternate for Leonardo Helicopters) Scott Porterfield (Alternate for Triumph Group)

In addition to the changes above, the following membership change is also taking place. This was also confirmed by Bob Koukol.

Changing roles:

o Craig Bowden has been approved by the PRI Board of Directors as the new NMC Vice Chairperson.

3.0 ROLLING ACTION ITEM LIST (RAIL)

The NMC Steering RAIL was reviewed, and there are currently three open actions. To view the full NMC RAIL for all committees and sub-teams, please visit www.eAuditNet.com, use the Task Group menu to select Nadcap Management Council, Task Group Work Area, and then click on the “Forum” tab.

ACTION ITEM: NMC Member Training to be placed on the agenda for October 2019. (Due Date: 24-Oct-2019)

4.0 COMMITTEE STATUS REPORTS

4.1 Metrics

Richard Blyth updated the NMC on the current activities of the Metrics Committee. The Committee reviewed the NMC / Board of Directors metrics as well as the Subscriber Accreditation metrics.

4.2 Ethics & Appeals

Victor Schonberger gave an update on the NMC Ethics & Appeals Committee. The Committee met in Paris and heard from their two sub-teams related to prevention and detection of unethical behavior, as well as procedure changes related to unethical behavior and handling of allegations and self-disclosures. The prevention and detection team is considering various initiatives to promote ethical behavior, and also conducted an initial review of survey results.

4.3 Continuous Improvement

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Scott Maitland reviewed the Continuous Improvement Committee’s key discussions for the week. The Committee developed an action plan from the Auditor Feedback, approved proposed changes to OP 1117 Annex C, and formed a sub-team for improved Subscriber flowdown.

4.4 Globalization & Strategy

Jeff Lott reviewed the Globalization & Strategy Committee’s activities in Paris. The Committee reviewed the plans for the upcoming 2020 Nadcap Meeting in Beijing, and heard updates on the Remote Service Providers project and the procedure for new Task Groups and Technologies.

4.5 Oversight

Latch Anguelov gave an update on the Oversight Committee’s activities this week. The Committee reviewed the results of the 2019 audit and the status of the 2019 audit, which should conclude in October. They also reviewed the 2019 Task Group Auditor observations plans and discussed the need for NMC support.

4.6 Standardization

John Pfeiffer gave an update on the Standardization Committee’s activities. The Committee discussed the Supplier Merit initiative, specifically the standardization of advisories and delinking Type P advisories from merit. They reviewed some proposed guidance for Task Groups when considering overturning a failure ballot. There was also discussion regarding some SSC projects, including the Redundant Audits team and the Self Audit survey feedback. A new topic was brought to the Committee, and a sub-team was formed to discuss a new advisory type for identifying quality issues discovered during a Task Group audit.

4.7 Subscriber Accreditation

There is no update for this committee as they did not meet in Paris.

5.0 SUPPLIER SUPPORT COMMITTEE (SSC)

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Jonathan Hebben reviewed the Supplier Support Committee (SSC) activities that took place during this meeting. For more details, please see the attached presentation.

The Communications Team released the Auditee Handbook. The Survey Sub-team is developing the 2019 survey, which is scheduled to be released in October. The SSC Leadership Team (LT) is working through applications for the non-attending LT member position, to focus on outreach for Suppliers who do not attend meetings. The SSC distributed a survey regarding self-audits to Suppliers and reported the results to Steering.

6.0 FIRST ARTICLE INSPECTION REPORT

Ethan Akins gave a presentation on the First Article Inspection project. For more details, please see the attached presentation.

Ethan noted that Rolls-Royce is transitioning to delegate their suppliers to perform First Article Inspection Reports (FAIR) and had an opportunity to add oversight of the process by the use Performance Review Institute (PRI) and eAuditNet. The delegation of suppliers to perform FAIR’s is common in the industry. The proposal is to develop a new commodity/program to add oversight of the FAIR process from initial FAIR creation through audits of recent production runs.

Currently there is a draft checklist in review with Rolls-Royce engineers. The checklist is about 90% complete, working on additional job audit questions. We are looking to perform test audit(s) on the draft checklist in the next couple months, with full implementation by August 2019. The team is working to set-up eAuditNet for the program requirements, with expected implementation by the end of June 2019. PRI has started reviewing auditor applicants with the appropriate backgrounds and skills to find skilled personnel.

As of now, only one other Subscriber has expressed interest. The NMC was asked if any additional Subscribers are interested, and if this is a commodity that should fall under Nadcap.

ACTION ITEM: PRI Staff to email today’s presentation to NMC Members along with a cover letter and copy of the checklist, to be shared within the Subscriber companies. (Due Date: 31-Jul-2019)

ACTION ITEM: PRI Staff to schedule a meeting during the October 2019 Nadcap Meeting to discuss interest in the First Article Inspection project, and also schedule introductory WebEx prior to the Nadcap Meeting. (Due Date: 24-Oct-2019)

It was also recommended that Suppliers be involved in the initial development.

7.0 PRI BOARD OF DIRECTORS FEEDBACK

Scott Klavon reminded the NMC that the PRI Board of Directors is hosting a luncheon with the NMC Members and the Task Group Chairs and Vice Chairs. The Board of Directors will be meeting in Paris along with Nadcap, and they will begin by attending the NMC At Large on Thursday morning. The Board Chairman, Etienne Galan, will present at the At Large meeting. PRI has revamped their Board presentation material, and in addition to Nadcap, the Board will hear presentations on Professional Development and the Transportation & Power Generation programs.

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8.0 EAUDITNET ENHANCEMENTS

Jon Steffey gave a brief update on the latest eAuditNet enhancements, notably Observation process improvements/overhaul, Audit Certificate Merit Designation, OP 1107 QMS workflow notifications, and corporate families and commodity mandates. He also reviewed the in-progress and next-in-queue enhancements. For more details, please see the attached presentation above.

9.0 9100 CLAUSE APPLICABILITY TEAM

Susan Frailey gave an update on the 9100 Clause Applicability project. For more details, please see the attached slide.

Future actions for this team include:

Sub-team to create guidance to the Task Groups Sub-team to determine what is an inappropriate response Steering participants to revisit the use of Supplier Advisory

o Afraid of overuse of the advisory processo Will require eAN enhancement

Need to determine where to place the note of actions takeno Subscribers do not have access to Company Managero Would the use of an advisory cover this need?

10.0 UTILIZING OASIS FEEDBACK

Pascal Blondet presented on the feedback process for OASIS and how that process could be linked to Nadcap. For more details, please see the attached presentation.

The following are common questions related to this process:

How should the OASIS feedback process be defined in Nadcap documentation?o Currently in OP1109 §4.7.5 (Supplier advisory) when breakdown of the Auditee’s

Quality system is determined

Who should be provide feedback in OASIS? AQS Task Group (TG)? Any TG? NMC?

o Currently as per OP1109 §4.7.5 by AQS upon notification of the TG

How should OASIS feedback traced in eAuditNet and Subscribers be made aware?o Currently as per OP1109 §4.7.5 this is documented in the forum of the applicable

Supplier Advisory in eAuditNet

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Who should provide feedback when multiple subscriber customers are impacted by the issue?

o If a Subscriber puts in OASIS feedback, then the rest of the Nadcap Subscribers would be unaware of the feedback.  If PRI put in the feedback, it would have to come from a process that would ensure that all Subscribers are aware of.

What should be the content of the feedback? Who should validate the content of the feedback prior issuance in OASIS?

o The objective is to ensure that the feedback contains clear and sufficient information so that the CB is able to take appropriate decision or action.

When a Nadcap Supplier advisory is issued, if a Subscriber deems that feedback is necessary, who should provide feedback in OASIS? Nadcap or the Subscriber?

o If a Subscriber provides feedback in OASIS, what information from the Nadcap Supplier Advisory is he allowed to use?

ACTION ITEM: The new sub-team for Type Q advisories to be combined with the 9100 Clause applicability team and the combined team, under the Standardization Committee, will review this topic and develop a recommendation. (Due Date: 23-Oct-2019)

11.0 OTHER ISSUES / NEW BUSINESS

11.1 Victor Schonberger presented on the objectives of the Ethics & Appeals sub-team who are working on procedural changes to address unethical behavior. For more details, please see the attached presentation.

The sub-team would like to ballot revisions to the OP 1107 and OP 1124 as soon as possible to address the main objectives of this team.

Motion made by Victor Schonberger and seconded by Dave Soong to move forward with balloting the procedural changes noted on the slide.

ACTION ITEM: PRI Staff to ballot the OP 1107 and OP 1124. (Due Date: 24-Oct-2019)

11.2 Scott Maitland noted that many of the recent new task groups and proposed technologies do not fit within special processes, which Nadcap traditionally covered. Should we look at creating a new category, or change the scope of what Nadcap covers from special processes to perhaps critical processes?

It was determined that perhaps the mindset needs to change, as we are moving in the direction.

ADJOURNMENT – 05-Jun-2019 – Meeting was adjourned at 12:00 p.m.

Minutes Prepared by: Kellie O’Connor, koconnor@p-r-i.org

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

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

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YES* ☒ NO ☐

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

OP 1107 PRI Staff 24-Oct-2019OP 1124 PRI Staff 24-Oct-2019