AQSJANUARY 2007

UNCONFIRMED MINUTES JANUARY 24-25, 2007

CROWN PLAZA HOTELREDONDO BEACH, CALIFORNIA

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

WEDNESDAY, 24 JANUARY 2007

1.0 OPENING COMMENTS

1.1 Call to Order/Quorum Check The meeting was called to order by Chairperson (Mark Covert).

The following representatives were in attendance and a quorum was established:

User Members Present:Name Company Mark Covert HoneywellDavid Day GE AviationAngel Huang Northrop GrummanMira Jacobs The Boeing CompanyJames Kernan Corpus Christi Army Depot Caroline Osborne Rockwell CollinsRick Ouellette The Boeing CompanyBernadette Recio Corpus Christi Army DepotChatt Rhodes Cessna-TextronZdenek Sitar HoneywellWilliam Solchik Rolls RoyceMichael Terry The Boeing Company

Other Participants/Members Present:Name CompanyKathy Alaniz Barry Avenue PlatingMark Brown Braddock Metallurgical, SVMJohn Cristman X-Ray Industries, Inc, SVMLaura Curtis Barry Avenue Plating Gary Fox EME, IncSusan Frailey Paulo Products, Inc. Johanna Lisa Continental Heat TreatMike Park Stack Metallurgical ServicesJohn Sattler Raytheon Aircraft Co, FAST LiaisonStephen Spahr GE Aviation/Corbus, FAST LiaisonYoshiomi Sukesada Asahi Kinzoku Kogyo

AQSJANUARY 2007

Jim Traverso Honeywell Aerospace, FAST Liaison

Dewey Whittaker Honeywell Aerospace, ETG Liaison

PRI Staff Present:John Barrett PRI Staff EngineerEJ Kegerreis PRI StaffRick Sovich PRI Staff Engineer

1.2 Review of agenda completed, new business identified resulted in a revised agenda that was agreed upon.

The following items were identified as new business: Update on Heat Treating supplier pending failure Recognition of AS9110 (Repair and Overhaul) Quality System AC7004 Accreditation Period Data Standardization of Audit Reviews (WebEx) AC7004 vs. AS9100 – Are there differences in the levels of assessment? eAuditNet 2.0 Status Contract Review – discussion Failure for serious QMS issues; what is the role of AQS?

1.3 Approval of Previous Meeting Minutes

Motion made and seconded to approve the previous meeting minutes as written. The minutes from the October 2006 meeting were unanimously approved by the Task Group.

1.4 Task Group Membership

A motion was made and approval was reached by the Task Group for the following positions:David Day as Vice ChairRick Ouellette as SecretaryMike Terry as an alternate for Boeing member

ACTION ITEM: John Barrett to provide new officer forms for Vice Chair & Secretary for appropriate signatures and filing. Due: 15 Feb 2007

1.5 Review Action Item List

Latest RAIL was updated and will be reviewed and updated on a monthly basis. The RAIL is located on eAuditNet/Public Documents/Aerospace Quality Systems/Rolling Action Item List.

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2.0 TASK GROUP TUTORIAL

A supplier tutorial was presented for new attendees.

3.0 TASK GROUP METRICS REVIEW

AQS metrics were presented to the Task Group by PRI. Supplier Cycle time for re-accreds is currently “Red”.

ACTION ITEM: John Barrett and Mark Covert to submit a presentation to the NMC addressing prime support to the AQS meeting as well as informing them of the support via email. Due: 16 April 2007

3.1 Staff Engineer Delegation Oversight Metrics

Correlation Analysis Metric has shown improvement.

4.0 QMS INTEGRATION

Upon the conclusion of the brainstorming event, categories were identified and each Task Group member picked four (highlighted in yellow) of the nine categories that should be prioritized. See Liaison Brainstorm for the complete list.

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Liaison Meetings were held Monday, 22 Jan, and Wednesday, 24 Jan 2007, 5:30 – 6:30 PM PST.

ACTION ITEM: John Barrett to distribute the QMS assignment sheet to the Staff Engineers and the Task Group Chairs that have representatives assigned to them. Due Date: 15 Feb 2007

5.0 AUDITOR CONSISTENCY

Mark Covert & David Day presented an ANOVA evaluation on variability for auditors. Follow up analysis to be conducted during the closed session for deep dive of data. Task Group members volunteer to continue variability assessment for three auditors. Based on discussion and limited review conducted during the meeting, it was the consensus that auditor inconsistencies based on number of findings requires further investigation. The current data does not identify trends over time nor complementary findings documented in any conjoined audits. Further investigation and discussion is needed before actions are taken.

ACTION ITEM: Auditor data should be reviewed for trends in number of NCR’s considering the findings in the conjoined commodity audits, trends in content of findings, and trends in number or type of findings. Review the following auditor’s prior audits for trends and report results at the next meeting. David Day, Rick Ouellette, and William Solchik to report on assigned auditor. Due: 18 April 2007

6.0 DISTRIBUTOR PROGRAM SUNSET STATUS

Decision was taken at the October 2006 meeting to sunset the Distributor program based on a decreasing utilization by suppliers and a decrease of prime endorsement and/or mandate. Current accreditations will continue to be honored until their expiration dates. No new audits shall be conducted.

ACTION ITEM: John Barrett to cancel existing standards and checklists for the sunset Distributor program. Review PRI/Nadcap procedures and eAuditNet for required revisions for Distributor program references. Due Date: 18 April 2007

THURSDAY, 25 JANUARY 2007

7.0 SUPPLIER SUPPORT COMMITTEE LEADERSHIP TEAM MEETING REPORT

John Cristman, X-Ray Industries presented the SSC summary.

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8.0 AQS POLICY DISCUSSION

The Task Group discussed the policy of approvals for extensions and acceptance of statement of conformity for a QMS approval. Extensions are granted to align AC7004 audits with the expiration dates of Special Process audits..

Discussed the revised NOP-002 recognizing supplier requirement to have AS9100 accreditation underway and accredited within 60 days of commodity audit. This change was reviewed and discussed at the NMC Steering Committee.

Criteria for audit extension, see revised attached rational and criteria. Motion to accept revised criteria was accepted.

ACTION ITEM: John Barrett to add agenda item to the July 2007 meeting for draft review process for Staff Engineer. Due: 18 July 2007

9.0 AUDIT HANDBOOK PROPOSAL

Audit Handbook draft was presented by Zdenek Sitar and John Cristman. The proposed handbook should provide guidance and expectation for auditors and suppliers. The draft was reviewed and edited for technical content. The efforts of Zdenek and John were noted by the Task Group and the results of their hard work were appreciated by the Task Group.

ACTION ITEM: Mike Terry & Susan Frailey to review and edit the handbook draft for grammatical syntax and distribute to the Task Group members for review prior to the next meeting. Due: 18 April 2007

10.0 NTGOP APPENDIX 6 REVISION STATUS

The NTGOP Appendix 6 was updated based on oversight recommendations and balloted to the AQS Task Group. During the NMC ballot, only two comments were received, with one being accepted and incorporated in the draft for final issuance. The other comment will need further clarification for final acceptance.

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ACTION ITEM: John Barrett to review comment for final resolution. Due: 31 Jan 2007

11.0 AQS STAFF ENGINEER SUPPORT PLAN

There is the possibility of approving additional PRI Staff Engineer support for AQS over the next quarter. If new Staff Engineers are added, they will be assigned a delegated Staff Engineer as a mentor. The delegated Staff Engineer will review several audits reviewed by the new reviewer to assure the new Staff Engineer understands Task Group expectations. An email notice shall be sent to the Task Group prior to any audits being submitted for 100% Task Group non-delegated review.

12.0 AUDIT OBSERVATIONS

Discussion on how process works and what direction the oversight committee is taking.

13.0 AUDITOR TRAINING PLAN - 2007

Lockheed Martin provided Auditor Training during the October 06 Nadcap meeting. Although final plans have not been made for the 2007 training, it is expected that AC7004 training will be conducted on Saturday, 20 Oct 2007. The expected duration of the training module is two hours which shall be presented to all auditors. Volunteer Task Group members will be required for this weekend training. AQS members are encouraged to review their availability for this training and be ready to volunteer during the April 2007 meeting.

ACTION ITEM: All AQS members are responsible to develop one unique draft scenario for the October AQS Auditor Training. Scenarios should be based on the current AC7004 Rev D. Final selection of scenarios will be based on the Top Ten findings and the Auditor Handbook guidance. Due: 18 Apr 2007

14.0 ESSENTIAL QUALITY QUESTIONS FOR CHECKLISTS

It was agreed that the work with the liaisons will address this agenda item and that no further discussion of this item is appropriate at this time. Liaisons shall be working on identification of commodity questions which address Quality System requirements.

15.0 REVIEW OF NEW BUSINESS ITEMS

15.1 Review of Heat Treat Audit Failure

As a result of a decision to fail a Heat Treat Audit, the AQS Task Group agreed to suspend an AQS approval for the same supplier. The supplier appealed the audit failure and the Heat Treat Task Group agreed to reverse their failure decision based on the relevance of the submitted job audit information and related findings. AQS shall continue to monitor this condition and shall take appropriate actions based on the final audit disposition by the Heat Treat Task Group.

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15.2 The members discussed the possibility that recognition of AS9110 MRO be acceptable as a Nadcap QMS. The general consensus is to accept. Boeing requested that a final decision to ballot be tabled until the April 2007 meeting. A brief survey of primes indicated that no one anticipates suppliers with AS9120 will seek Nadcap accreditation in the near future except for Sealant Distributors.

ACTION ITEM: Rick Ouellette to report Boeing’s position & acceptance then provide proposed language change for NOP-002 (3.4). Due Date: 18 April 2007

15.3 Mark Covert presented a proposal for the Task Group discussion regarding modification of the current approval period for AC7004. The attached presentation generated much discussion. Additional pros and cons were added to the original presentation. No decisions were reached by the Task Group. It was agreed that this topic shall be discussed at future AQS meetings. John Barrett presented the attached data on the actual periods between AC7004 audits. Even though the approval is granted for 36 months, the actual periods between audits varies greatly due to associated rules for continued quality systems approval in NOP-002.

15.4 Standardization of Audit Reviews

A WebEx meeting was held on 28 Nov 2006. It was generally agreed that this meeting was beneficial to those who attended. The teleconference provided an opportunity for members to discuss their audit review processes and share best practices. The Task Group consensus was to hold another WebEx/teleconference meeting on 12 Mar 07.

ACTION ITEM: John Barrett to set up a WebEx/Teleconference with AQS User members on Monday, 12 Mar 2007, 10:00-12:00 am EST. Due: 15 Feb 2007

15.5 AC7004 vs. AS9100 – Are there differences in the levels of assessment?

Based on contributions by attending suppliers, it was determined that the requirements and levels of assessments for AC7004 and AS9100 are appropriate. Organizations who choose AS9100 have found it more challenging overall to demonstrate compliance. The requirements of AC7004 in conjunction with the commodity checklists provide a very detailed evaluation of the quality system to support Nadcap accreditation.

15.6 eAuditNet 2.0 Status

Programming for the enhanced eAuditNet 2.0 has begun. The expected roll out of this version is end of third quarter 2007. Additional information will be shared as it is available.

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15.7 Contract Review

The Nadcap initiative to create flowdown templates by commodity was discussed. It was agreed that tools which may aid in completing contract review and aid in completing flowdown of requirements for purchase will be of value. The AQS Task Group does not plan to create a Quality System flowdown template for this project.

15.8 Failure for serious QMS issues – What is the role of AQS?

When serious issues with the Quality Management System (QMS) are identified by the commodity Task Group, the Task Group may require an additional QMS audit as part of the corrective action. If a weakness in the prior assessment of the QMS is identified related to a registrar performed audit, recent changes in NOP-002 direct the special process Task Group to notify the AQS Task Group. The AQS Task Group shall review these issues for possible notification to the registrar or the appropriate accreditation board to initiate corrective action.

16.0 ADJOURNMENT

The meeting was adjourned at 5:30 PM, Thursday, 25 Jan 2007.

Minutes prepared by:John Cristman johncr@xraycorp.comRick Ouellette Richard.j.ouellette@boeing.com

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

Is 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:

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