NMC STEERINGOCTOBER 2017

CONFIRMED

CONFIRMED MINUTES24-OCT-2017

PITTSBURGH, PENNSYLVANIA, USA

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.

TUESDAY, 24-OCT-2017

1.0 OPENING COMMENTS

1.1 Call to Order / Quorum Check

The Nadcap Management Council (NMC) Steering Meeting was called to order at 8:00 a.m., 24-Oct-2017 by Chairperson Richard Blyth.

It was noted that only NMC Voting Members and invited guests of the chair were in attendance during the meeting. Invited guests of the Chair include Charles Parker (Honeywell Aerospace), David Dagan (Israel Aerospace Industries).

The Chairperson also noted that Gary White will have Dale Harmon’s proxy for this meeting.

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.* David Bale Pratt & Whitney Canada* Pascal Blondet Airbus Commercial Aircraft* Richard Blyth Rolls-Royce Chairperson* Craig Bowden BAE Systems – MAI (UK)* Russ Cole Northrop Grumman

David Dagan Israel Aerospace Industries* Steve Dix Eaton, Aerospace Group* Troy Grim Spirit AeroSystems* Dave Hansen 309th Maintenance Wing* Michel Jacquaniello Zodiac Aerospace* Bob Koukol Honeywell Aerospace* Ralph Kropp MTU Aero Engines* Serge Labbé Héroux-Devtek* Marc-André Lefebvre Héroux-Devtek* Eric Lorentzen DCMA* Jeff Lott The Boeing Company* Scott Maitland UTC Aerospace (Goodrich)* Frank Mariot Triumph Group, Inc.* Robin McGuckin Bombardier Aerospace* Frank McManus Lockheed Martin Corp. Vice Chairperson* Roger Merriman Textron Aviation

Charles Parker Honeywell Aerospace* John Pfeiffer GE Aviation* Per Rehndell GKN Aerospace Sweden AB* Michael Roberts Gulfstream Aerospace* Davide Salerno Leonardo Aircraft

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* Victor Schonberger Israel Aerospace Industries* Lindsey Shaw Raytheon Co.* David Soong Pratt & Whitney

Supplier Members/Participants Present (* Indicates Voting Member)

NAME COMPANY NAME TASK GROUP

* Jim Cummings Metal Finishing Company, Inc. Chemical Processing* Shelly Lawless Meyer Tool, Inc. Nonconventional Machining /

Surface Enhancement* Brian Reynolds Arconic Metallic Materials Manufacturing* Tammi Schubert Helicomb International Measurement & Inspection

PRI Staff Present

Susan FraileyConnie HessScott KlavonJim LewisBob LizewskiCarol MartinKellie O’ConnorGlenn Shultz

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

Richard Blyth 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 Pascal Blondet and seconded by Roger Merriman to accept the minutes. Motion passed and the June 2017 NMC Steering meeting minutes were approved as written.

2.0 NMC MEMBERSHIP

The following new NMC members were confirmed by the Chairperson Richard Blyth.

Michel Jacquaniello, Zodiac Aerospace

The following membership resignations were announced.

Jose Freire, Embraer (Alternate) Vitorio Stana, Composites Task Group

3.0 ROLLING ACTION ITEM LIST (RAIL)

The NMC Steering RAIL was reviewed.

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.

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4.0 COMMITTEE STATUS REPORTS

4.1 Metrics

Richard Blyth updated the NMC on the current activities of the Metrics Committee. The performance metrics are all currently green. The NMC / Board metrics remain green, and the Subscriber Accreditation metrics have one yellow. The Committee does have a proposal for new 2018 metrics, which will be discussed later in this meeting.

Motion made by Pascal Blondet and seconded by Russ Cole to continue with current NMC Metrics goals for 2018. Motion passed.

Changes to membership were made as follows:

Resigned Members:o Vitorio Stana

4.2 Ethics & Appeals

Victor Schonberger gave an update on the NMC Ethics & Appeals Committee. The Committee will meet face-to-face later this week. One allegation has been received under the new process.

4.3 Globalization & Strategy

Jeff Lott reviewed the major discussion points from the Committee meeting, which included updates on the Aero Structures Assembly task group; an update on the February 2020 Nadcap Meeting in Beijing; and the OASIS / 9100 project.

4.4 Oversight

Frank Mariot noted that the Committee approved the 2018 Oversight audit plan, with 10 procedure audits and 6 Task Group audits. The NMC is requested to provide three volunteers for the audit team. They are also looking for a team lead for the 2018 Oversight Audit. The Committee reviewed the observation audit data, including the number conducted, declined, and feedback, along with discussing changes to the OP 1118 (Audit Observations).

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Changes to membership were made as follows:

o Frank Mariot is stepping down as Chairo Latch Anguelov will become the new Committee Chairperson

The NMC Chairperson, Richard Blyth, confirmed Latch Anguelov as the new Oversight Committee Chairperson.

4.5 Standardization

Bob Koukol gave an update on the Standardization Committee’s activities. The Committee discussed the status of the self-audit submittal process, and currently all checklists have been modified except one, which is currently in comment resolution. The Management of Change sub-team presented an update and work is continuing. The No Subscriber Customers or Aerospace/Defense Production Work Sub-Team is planning to revise OP 1114, OP 1104, and the checklist template, t-frm-15. They are also planning to implement a mechanism within the QML to designate companies who are Nadcap accredited, but have no Subscriber Customers or Aerospace/Defense production work. The Merit Sub-Team is continuing to work on their proposal, and will be gathering a large sample for data analysis to determine if there is an impact on the program.

4.6 Subscriber Accreditation

Bob Lizewski noted that the Committee will be meeting later today. They are planning to review the implementation of new Option B audit scheduling process, and discuss a proposal for a revision to OP 1122 to address a company changing from Option B to Option A or Standard Accreditation process.

There were no changes to membership at this time.

5.0 CUSTOMER SUPPORT INITIATIVES

Scott Klavon presented on PRI’s on-going efforts related to customer support. This was a PRI Board-driven initiative, which PRI began to implement in 2015. For more details, please see the attached presentation.

In 2015, there were 7 symposia held in the USA, Europe, and Asia, and in 2016 and 2017, 9 symposia were held each year in the various regions. The feedback from the symposia are very positive as the target audience are those suppliers who are unable to attend Nadcap Meetings,

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and this gives them an opportunity to meet PRI Staff and hear important information about the program.

Also in 2015, PRI launched the Nadcap Newsletter (cite statistics from slide).

Other major initiatives include Nadcap Flags for accredited Suppliers, a review of the auto-generated eAuditNet emails to improve the language and make them more customer friendly. The Supplier Support Committee (SSC) continues to conduct a biennial survey as well.

ACTION ITEM: Scott Klavon to present the list of upcoming 2018 symposia locations at the Madrid Nadcap Meeting in February.

Action item NMC-47 is now closed.

6.0 AUDITOR RECRUITMENT

Scott Klavon reviewed PRI’s auditor recruitment process. For more details, please see the attached presentation.

Applicants submit their application online through www.eAuditStaff.com, and if applicable, will complete a technical assessment. A PRI staff review team decides if the individual meets Nadcap auditor criteria, and if approved, they go through a 3-phase telephone interview process. If they are approved after the interview process, they go through an onboarding process and two training audits with an experienced auditor.

PRI is receiving more auditor applicants each year, with 135 to date in 2017. This year, 79 potential candidates were interviewed by applicable Task Group members. Eleven of those are on hold for various reasons, and 12 were not selected. The current average age of Nadcap auditors is 61 years old. The ages range from 32 to 83 years old. The auditor base increased from 179 in 2014 to 230 in 2017.

In 2018, PRI plans to increase staff to provide more focus on auditor recruiting, and attend more industry technology-related events to recruit/increase visibility.

Action item NMC-48 is now closed.

7.0 PRI BOARD OF DIRECTORS FEEDBACK

Joe Pinto gave an update on the upcoming PRI Board of Directors meeting taking place next week in Tokyo. The Board is currently discussing several topics, one of which is the security of auditors when traveling. For the past two years, PRI has added security training for the auditors during the Auditor Conference, with information on how to handle a number of different travel/security scenarios. Additionally, PRI has contracted with LSDS to conduct constant reviews of the security situation in various regions where Nadcap audits are conducted. Another topic the Board is currently continuing to work on is the feedback from the Customer Support initiatives that PRI has implemented in recent years. They are also discussing audit effectiveness, and auditor observations by Subscribers.

Joe also reviewed the new process related to Subscribers and consultants. For more details, please see the attached presentation.

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ACTION ITEM: Subscriber eAuditNet Company Administrators to review the lists of their employees in eAuditNet for accuracy, and what access they will need to conduct this role.

ACTION ITEM: PRI Staff (Jon Steffey) to review the current process for communicating with the eAuditNet Company administrators regarding ensuring accuracy of data.

ACTION ITEM: PRI Staff (Jon Steffey) to communicate to NMC and eAuditNet administrators around how to give approvals and the different levels of approval.

ACTION ITEM: PRI Staff to revise the Subscriber agreement to add language regarding the responsibility of the Subscriber to manage consultant exposure to confidential data.

8.0 ACCREDITATION OF NON-SPECIAL PROCESS SUPPLIERS (NSPS)

Frank McManus gave an update on the action items given to the sub-team at the last meeting and the current status of this project. For more details, please see the attached presentation.

At the previous NMC Steering meeting, the sub-team was requested to address the following issues:

1. Development of a sample contract flowdown that mandates the AC7005 QMS requirement

2. Creation of a QMS hierarchy guide3. Frequency of the audit cycle to balance risk and cost

In response to this request, the sub-team has written some language which they are recommending be added to the contract flow down for a supplier, and created a hierarchy guide for AS9100, ISO 9001, and AC7005. Finally, the sub-team recommends a full-length 2-day audit with a 24-month accreditation length, due to the lower risk and lower complexity, which is in line with what some of the Primes are currently using with these types of suppliers themselves.

There will be a new Task Group created, however the Aerospace Quality Systems (AQS) Task Group would review these audits. It will be similar to how the Nonconventional Machining and Surface Enhancement Task Group operates. Subscribers who are interested in participating are requested to join the AQS Task Group. Additionally, the Subscribers who would like to participate will need to provide their NSPS list to Susan Frailey (sfrailey@p-r-i.org).

9.0 EAUDITNET ENHANCEMENTS

Jon Steffey gave a brief update on the latest eAuditNet enhancements, notably the financials software (Netsuite) integration, which includes invoicing, auditor expense reports, billing contacts, billing info, and scheduling enhancements, as well as auditor scope updates, AQS/Document Security, and Supplier Communications kit emails. Jon also highlighted some of the in-progress and in-queue projects, which include OP 1101 changes (Balloting), multiple contacts per audit and contact types per supplier, Supplier-Subscriber identification improvements, non-special

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process suppliers (AC7005), and QML / Audit Manager Improvements (“My Watch List” per-user customizable tracking). For more details, please see the attached presentation.

10.0 SUPPLIER SUPPORT COMMITTEE (SSC)

Dale Harmon gave an update on the SSC activities taking place in Pittsburgh this week. The 2017 Supplier Survey has launched, and will run until February 2018. The SSC also sponsored a session in Pittsburgh on Export Control: How to be Compliant, as a response to an action from a previous Planning & Ops meeting. For more details, please see the attached presentation.

There are no membership changes at this time.

11.0 OTHER ISSUES / NEW BUSINESS

11.1 Potential New Metrics for 2018

Richard Blyth reviewed potential new equitable contribution metrics, including voting on letter ballots, participation in auditor interviews, and participation in auditor observation audits. For more details, please see the attached presentation.

Motion made by Frank McManus and seconded by Latch Anguelov to run a pilot of the new metrics in 2018, and subsequently determine consequence/actions, as well as continue to develop the Quality metric. Motion passed.

ACTION ITEM: Metrics Sub-Team to look at how we determine the NMC participation within sub-teams and oversight audits.

ADJOURNMENT – 24-Oct-2017 – Meeting was adjourned at 11:00 a.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)

YES* ☐ NO ☒

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