Supplier Quality Assurance Manual - asc.com.au · ITP Inspection and Test Plan MDR Manufacturers Data Report NATA National Association of Testing Authorities NATO North Atlantic Treaty

Supplier Quality Assurance Manual

Rev 5.0, Page 1 of 12

ASC COMMERCIAL IN CONFIDENCE

If printed, this document is Uncontrolled for Reference Only

WARNING

This document is the intellectual property of the Commonwealth of Australia (CoA), or ASC Pty Limited. It may only be used by the recipient in accordance with the terms of the contract between ASC and the recipient, or, in the absence of a contract, it may only be used strictly for the purposes for which it was provided. The unauthorised disclosure, reproduction or use of this document is prohibited. The original and any copies of this document must be returned to ASC on request.





Table of Contents

WARNING ................................................................................................................................... 1

Table of Contents ........................................................................................................................ 2

1. Introduction ................................................................................................................................. 3

Purpose ............................................................................................................................ 3 1.1

Scope ............................................................................................................................... 3 1.2

Definitions and Acronyms ................................................................................................. 3 1.3

Monitoring, Evaluation and Review ................................................................................... 4 1.4

ASC Vision, Mission and Values ....................................................................................... 4 1.5

2. Requirements ............................................................................................................................. 4

General Expectations of ASC Suppliers ............................................................................ 4 2.1

Work Health Safety and Environment (WHS & E) ............................................................. 5 2.2

Supplier Approval Process (Evaluation and Approval) ...................................................... 5 2.3

Right of Access ................................................................................................................. 6 2.4

Requirements Reviews / Issues Control (Purchase Order/Contract) ................................. 6 2.5

Purchase Order Nominated Critical (CTCL) Items ............................................................ 6 2.6

Inwards, Outwards and In-process Goods Assurance/Controls ........................................ 6 2.7

Control of Sub-tier Suppliers ............................................................................................. 6 2.8

Control and Retention of Quality Records ......................................................................... 7 2.9

Qualified and Trained Personnel ....................................................................................... 7 2.10

Inspection Measuring and Testing Equipment (IMTE) Controls ......................................... 7 2.11

Inspection and Testing Planning (ITP) Applicability/Controls ............................................. 7 2.12

Objective Quality Evidence Requirements (OQE) ............................................................. 8 2.13

Opening and Closing Reports (for Refurbished goods) ..................................................... 8 2.14

Manufacturers Data Report (MDR) ................................................................................... 8 2.15

Product Marking/Traceability/ Packaging and Preservation............................................... 8 2.16

Technical Information and Export Controls ....................................................................... 9 2.17

Handling of ASC supplied Materials .................................................................................. 9 2.18

Control of Design Development Planning .......................................................................... 9 2.19

ASC Quality Requirements for Shelf Life Products ........................................................... 9 2.20

ASC Quality Requirements for Fasteners ....................................................................... 10 2.21

Customer/SupplierRelationship and Feedback ............................................................... 10 2.22

Control of non-conforming products and services ........................................................... 10 2.23

Appendix 1: Inspection and Test Plan (Example) ............................................................ 12 2.24





1. Introduction

Purpose 1.1

This manual aims to provide guidance to ASC suppliers and sub-tier suppliers of their obligations and requirements in regards to Quality Management Systems for the supply and refurbishment of goods and/or services to ASC Collins Class Submarine (CCSM) program, in order for them to understand the requirements, compliance and expectations.

Scope 1.2

This manual is applicable to all ASC purchases of goods and services under ASC's purchase order terms and conditions (PO) and applicable Contracts in support of ASC Collins Class Submarine (CCSM) program.

Definitions and Acronyms 1.3

Term Definition

ASC ASC Pty Ltd

CCSM Collins Class Submarines

CMS Corporate Management System

CoC Certificate of Conformance

CTCL Critical Items

DoD MIL HDBK Department of Defense (USA) Military Handbook

FTP File Transfer Portal

IMTE Inspection Measuring and Testing Equipment

IP Intellectual Property

ISO International Standards Organisation

ITAR International Traffic in Arms Regulations

ITP Inspection and Test Plan

MDR Manufacturers Data Report

NATA National Association of Testing Authorities

NATO North Atlantic Treaty Organisation

OQE Objective Quality Evidence

PO Purchase Order

QA Quality Assurance

QMS Quality Management System

SDS Safety Data Sheet

SQA Supplier Quality Assurance

SQAM Supplier Quality Assurance Manual

SQQ Supplier Qualification Questionnaire

TS Technical Specifications

US United States (of America)

WHS&E Work Health Safety and Environment





Monitoring, Evaluation and Review 1.4

Compliance and effectiveness with the process will be monitored and evaluated via metrics and key performance indicators associated with the Supplier Quality Assurance (SQA) audit schedule and reported to management accordingly. The FM-54521 Supplier Quality Assurance Audit Report form is interdependent and should be updated in line with this document.

ASC Vision, Mission and Values 1.5

Vision: To be the leading designer, builder and maintainer of submarines in Australia.

Mission: To safely build and maintain Australia's frontline submarines to world class performance and quality standards.

Values:

Safety: Safety is paramount; the safety of ASC employees, contractors and all who visit our facilities will never be compromised.

People Performance: To perform in our complex technical and business environment, ASC will work with integrity and as a team to collaborate effectively with customers, partners and suppliers.

Continuous improvement: ASC is focused on remaining competitive and as such, we are committed to continually improve all aspects of the business, even those that are already achieving world's best practice. Our commitment to improve our processes, skills and knowledge is relentless.

2. Requirements

General Expectations of ASC Suppliers 2.1

Suppliers are expected to maintain an effective Quality Management System (QMS) based on the requirements of ISO 9001 (latest version), unless otherwise agreed, in which case the minimum requirements of this manual must be documented, implemented and maintained.

ASC expects suppliers to share our commitment to meeting our end customer’s requirements for quality, technical performance and on-time delivery. This can be achieved through flexibility in assisting ASC to meet its end goal which should be enforced by implementing continuous improvement initiatives and business continuity plans.

All suppliers are responsible for ensuring compliance to the requirements contained in this manual and are responsible for the quality, timeliness and integrity of delivered goods and services including those provided by their sub-tier suppliers/Manufacturers/Mills.

All delivered products and services must comply fully with ASC's quality requirements including the provision of appropriate Objective Quality Evidence (OQE) documentation.

All OQE for Commodity items must comply with the ASC Attributes as defined in Section 2.13 of this document.





Work Health Safety and Environment (WHS&E) 2.2

Suppliers are responsible for all aspects of WHS & E connected with the goods and services supplied to ASC and must at their own cost comply with all WHS & E related legislation (e.g. WHS (Commonwealth 2011) Act and associated regulations) that is in any way applicable to the supplies (Work, Health and Safety Legislation, Environmental Legislation), including in respect of their sub-tier suppliers or subcontractors.

Suppliers must demonstrate to ASC that they have the necessary knowledge, ability and resources to comply with the WHS & E legislation and, on request, must provide ASC with all necessary information to allow ASC to properly assess the supplier's capacity to provide product/services in accordance with all relevant WHS & E legislation.

Ways in which suppliers may demonstrate compliance are:

Work, Health and Safety Management Plan

Environmental Management plan

Competency Training Matrix

Risk Registers

Provision of WHS compliant Safety Data Sheets (SDS) with all hazardous materials when supplied to ASC

Suppliers must notify ASC immediately of any incident or event occurring in connection with the supply of goods or services to ASC that is in breach of or is notifiable under the relevant WHS & E legislation. Suppliers must inform ASC when a material to be supplied to ASC contains a substance identified in Schedule 14 (substance requiring Health Monitoring) of the Work Health and Safety Regulations, and ensure no carcinogens as identified in Schedule 10 of the Work Health and Safety Regulations are delivered to ASC.

ASC requires all suppliers to provide a copy of their Environmental Policy detailing environment and/or sustainability commitments. ASC highly recommends suppliers maintain ISO 14001 certification to demonstrate commitment to environmental performance or a system based on those requirements.

When a hazardous material or substance is to be delivered to ASC, the Supplier must provide Material Specification and/or SDS.

Hazardous materials: Materials which because of its chemical, biochemical, microbiological or radiological properties, temperature or state of compression could in sufficient concentration cause:

Harm to human health and safety or personal injury

Property damage

Environmental harm or environmental nuisance

These include, but are not limited to, hazardous substances, dangerous goods and scheduled poisons.

Hazardous Substances: These are hazardous substances that are listed on Safe Work Australia - Hazardous Substances Information System (HSIS) found at http://hsis.ascc.gov.au or determined to be a hazardous substance by the manufacturer or importer of the substance.

Supplier Approval Process (Evaluation and Approval) 2.3

As part of the Supplier approval process, all new ASC suppliers must complete a Supplier Qualification Questionnaire (SQQ) which must be submitted together with supporting documentation (as specified in the SQQ), prior to being awarded ‘ASC Supplier’ status. This questionnaire can be found at www.asc.com.au under the ‘Industry Partners’ then ‘Supply Chain’ tabs.

http://www.asc.com.au/





ASC Approved Supplier’s List: To be included in the ASC approved suppliers list, suppliers will undergo systematic levels of reviews and checks which may also include on-site Qualification Audits by ASC Quality Assurance and Supply Chain Departments.

Once suppliers have been approved to supply, ASC Quality Assurance (QA) and Supply Chain Departments may conduct regular quality and safety audits including supplier visits to ensure the Supplier can consistently meet ASC quality and delivery requirements.

Right of Access 2.4

During the course of the contract between ASC and the supplier as an active approved supplier, ASC may (with reasonable notice) require access to the supplier manufacturing/production areas and/or the supplier’s sub-tier facilities for the purpose of quality audits, and for assessing capability processes to meet ASC Purchase Order/Contract requirements. This enables ASC to access the rigour applied to the QMS in relation to ASC requirements.

Requirements Reviews / Issues Control (Purchase Order/Contract) 2.5

Suppliers are expected to have in place a documented Purchase Order Requirements Review Procedure/Process for customer related processes.

If a supplier is uncertain about any aspect of what ASC has ordered, the Supplier must immediately contact ASC and resolve this uncertainty prior to incurring any costs and committing to supply.

Purchase Order Nominated Critical (CTCL) Items 2.6

When supplying Critical (CTCL) Items suppliers are expected to:

1. Source items from ASC authorised manufacturers/mills; or

2. Propose mills for ASC approval by providing evidence that the manufacturers/mills have ‘Material Manufacturer’ approval certified by independent certification bodies e.g. Lloyds or SAI Global etc. or provide evidence of detailed review and approval by the direct supplier e.g. audit reports, visit reports; or

3. Ensure that items are independently sample tested (by a NATA equivalent Testing House) in accordance with criteria defined by ASC, with test reports (OQE) provided to ASC.

ASC may also consider undertaking a Quality Audit of the Manufacturer/Mill manufacturing processes on a case by case basis.

Inwards, Outwards and In-process Goods Assurance/Controls 2.7

Suppliers to ASC are expected to have in place documented procedures for the management of Goods Inwards, Goods Outwards and In-process Quality Assurance/Inspection activities.

Suppliers must ensure that goods undergo the required level of checks and balances (e.g. visual inspections, traceability checks, sample dimensional inspections) as specified by ASC, via Technical Specifications (TS), or as contractually agreed during production and prior to delivery.

Control of Sub-tier Suppliers 2.8

It is a requirement that all ASC direct suppliers maintain effective control over their sub-tier suppliers (including manufacturers/mills), which must include a documented process for monitoring the performance of these sub-tier suppliers.

Direct suppliers to ASC must (on request) provide to ASC the necessary OQE to confirm that their sub-tier suppliers have been adequately assessed and are approved to supply.

The supplier must flow down all ASC PO requirements (e.g. technical/OQE requirements) to their sub-tier suppliers. The expectation of sub-tier suppliers to ASC is the same as the requirements detailed in this manual, particularly in relation to the controls, restrictions and protocols with ITAR, IP and Commercial-in-Confidence documentation.





Control and Retention of Quality Records 2.9

Suppliers are required to maintain effective control of quality records and have a documented procedure defining the controls needed for the identification, storage, protection, retrieval, retention and disposition of records.

Qualified and Trained Personnel 2.10

It is a requirement that a current documented training skills matrix be kept to record and capture all relevant personnel qualifications, detailing certificate expiry dates (as applicable) and information pertaining to the skills relevant to the task to be undertaken on all ASC work. Suppliers must satisfy ASC that there is a system in place to maintain currency of licences and qualifications relevant to the scope of work.

Inspection Measuring and Testing Equipment (IMTE) Controls 2.11

2.11.1 Calibration of IMTE

All equipment used for qualifying ASC final goods must have NATA endorsed certification and be maintained in a manner that protects ASC from receiving non-conforming goods.

A register including history of all IMTE used on ASC work must be maintained in order to capture the latest test date, validity, including periodicity of calibration. The IMTE must also contain a unique serial number or identifier to assist with traceability in the event of a non-conformance.

2.11.2 NATA Laboratories

Calibration of all IMTE used on ASC work must be conducted by a NATA accredited laboratory for the category of that instrument, and certificates of calibration must be NATA (or equivalent) endorsed where available. Laboratories accredited by NATA must be registered on the NATA website.

2.11.3 Mutual Recognition

A company claiming to have a mutual recognition in Metrology agreement between National Metrology Institutes must provide evidence of traceability to an approved national accredited body. Evidence of calibration of artefacts must include traceable certificates, detailing serial numbers of nominated artefacts. ASC must be notified in the event of potential and or non-conforming products and services as a result of out of calibration IMTE.

The supplier’s/sub-contractor’s IMTE calibration procedure must ensure the validity of previous measuring results should any IMTE be found to be defective or out of calibration.

Inspection and Testing Planning (ITP) Applicability/Controls 2.12

Where a PO or ASC Contract requires a Supplier to submit to ASC an ITP the supplier's ITP document will be subject to ASC approval and must be submitted prior to commencement of work.

As part of ASC's approval of the Supplier's ITP, ASC may add Hold and Witness Points at its discretion. And:

Where hold and witness points have been allocated the supplier must inform ASC of the upcoming event with appropriate notice.

Hold points are not to be conducted without an ASC representative present unless the hold point has been formally waived by ASC. Evidence of waivers must be retained and included in the MDR as OQE.

Witness points may be conducted without ASC's presence as long as appropriate notification has been provided. Evidence of notification must be retained and included in the MDR as OQE.

The ITP document must contain sufficient information to identify what inspection and/or testing will be carried out to meet Contract/PO requirements. Refer to Appendix 1: Inspection and Test Plan example, noting that the ‘checked by’ section must be signed and dated by an ASC Engineering representative to authorise the ITP. It is the suppliers responsibility to ensure ASC Engineering and/or Supplier Quality Control endorse the ITP prior to commencement of work.





Objective Quality Evidence Requirements (OQE) 2.13

OQE Requirements: OQE forms a critical path in ensuring the items/services delivered meet ASC technical and contractual requirements. OQE requirements for individual items are specified in the Purchase Orders or Contract unless otherwise stated.

OQE Attributes Definition: The Master List of OQE Attributes for Commodities supplied to ASC can be found at www.asc.com.au, under ‘Supply Chain’, ‘Master List of OQE Attributes’.

Opening and Closing Reports (for refurbished goods) 2.14

A process detailing the requirements for Opening & Closing reports must be documented. This process should include photos taken to clearly capture the condition of goods as received, a clear list of parts required to refurbish the goods and then photos of the completed goods prior to release, post refurbishment.

Manufactures Data Report (MDR) 2.15

A folder, or similar, which contains all compiled required documentation (material/test certificates, NATA certifications), should be supplied with the parts or goods to confirm compliance to the required standards.

Product Marking/Traceability/ Packaging and Preservation 2.16

Where required in the Contract/PO each delivered item must be identified with the following information (where applicable):

Purchase Order/Contract Number and Revision Number

PO Line/Item Number

Item Description

ASC Part Number (NATO Stock Number or ASC Catalogue Number)

Quantity

Manufacturer’s part number, including identification of the original equipment manufacturer and country of origin

Controlled Goods Identification (non ITAR).

http://www.asc.com.au/





Technical Information and Export Controls 2.17

As part of the contract with ASC, the Supplier may be provided with Commercial-in-Confidence Technical Information and other Technical Information (including components and materials) that are subject to export control restrictions and handling procedures. These include the highly restrictive US International Traffic in Arms Regulations (ITAR), as well as other US, European Commission and Australian Export Regulations. This includes Kockums Intellectual Property (IP).

All technical information must be handled strictly in accordance with stipulated restrictions and signed confidentiality agreements.

Export restricted items will be clearly identified as “Controlled Technology”. Controlled Technology cannot be disclosed to any unauthorised persons or commercial parties including employees, subcontractors, consultants, suppliers or sub-tier suppliers/manufacturers.

Controlled Technology and other Technical Information provided by ASC may only be used by the recipient in accordance with the terms of the contract between ASC and the recipient or, in the absence of a contract, it may only be used strictly for the purposes for which it was provided. The unauthorised disclosure, reproduction or use of such data/components is prohibited by law, and severe penalties apply.

On completion of the contracted activities, the original information/technical data and any copies must be returned to ASC on request.

A documented procedure shall outline the following requirements:

1. Secure storage of Controlled Technology,

2. When and how Non-Disclosure Statements shall be signed,

3. Controls in place to manage access and use of Controlled Technology, including by sub-tier suppliers, and

4. Use of ASC File Transfer Portal (FTP).

Handling of ASC supplied Materials 2.18

Customer (ASC) supplied materials must undergo the same level of Inwards Goods Assurance Inspection checks and traceability control as that of any other materials purchased by the supplier.

Where required, Inwards Goods Inspections must include sample dimensional inspection, visual inspection and marking/traceability checks (validated against the delivered certification/OQE).

Material traceability must be maintained up until the point of use in production.

Unused material (including off cuts/remnants) must be marked and remain fully traceable up until the point of use in the supplier's production or return to ASC.

Control of Design Development Planning 2.19

The organisation shall plan and control the design and development of product.

During the design and development planning, the organisation shall determine:

a) The design and development stages,

b) The review, verification and validation that are appropriate to each design and development stage, and

c) The responsibilities and authorities for design and development.

The organisation shall manage the interfaces between different groups involved in design and development to ensure effective communication and clear assignment of responsibility. Planning output shall be updated, as appropriate, as the design and development progresses.

ASC Quality Requirements for Shelf Life Products 2.20

Shelf life products must comply fully with ASC OQE attributes.

The information supplied on the product CoC must contain the following:

Lot traceability number or Batch number, and





Shelf life expiration date/use by date (in accordance with specification)

Shelf life products must be stored correctly and have a minimum of 85% of shelf life remaining upon receipt at ASC, unless agreed otherwise by ASC.

Examples of shelf life products are:

Synthetic rubber products,

Epoxies,

Paints,

Adhesives,

Sealants, and

Fastener locking compounds

ASC Quality Requirements for Fasteners 2.21

Fastener material specification, dimensional specification and delivery conditions (e.g. surface treatment) must be clearly stated in the ASC PO and must be fully complied with.

2.21.1 Fastener Threads:

Must be sampled inspected by the manufacturer or supplier to ensure conformance to specified Engineering/Standards requirements.

2.21.2 Fastener Surface Treatment:

Where specified, plating, galvanising, heat-treatment etc. must be sample inspected by the manufacturer/supplier to ensure complete coverage and conformance to specified Engineering/Standards requirements.

2.21.3 ASC PO/contract specified Critical (CTCL) Threaded Fasteners:

Where the requirements of Sections 2.6 & 2.13 cannot be met, suppliers are expected to source ASC PO/contract specified critical (CTCL) threaded fasteners from Manufacturers Listed in the DOD MIL-HDBK 57 F Listing of Fasteners Manufacturer’s Identification Symbols.

Threaded fasteners must be marked in accordance with Standards specified in the Contract/PO, e.g. carbon steel fasteners to ISO 898 -1 & ISO 898 -2, stainless Steel Fasteners to ISO 3506-1 & 3506-2, unless otherwise specified.

Where marking is required, threaded Fasteners must be identified by the Manufacturer’s marking symbol (including material grade) unless otherwise specified.

Note: For guidance, threaded fasteners manufacturer’s marking symbols are listed in DOD Handbook MIL-HDBK 57 F, 21 June 2011 - Listing of Fasteners Manufacturer’s Identification Symbols.

Customer/Supplier Relationship and Feedback 2.22

ASC senior management is fully committed to maintaining a good relationship with all our Suppliers and Subcontractors.

ASC believes that without the assistance and commitment of our suppliers the requirements specified in this Manual cannot be adequately achieved.

Suppliers should contact ASC Supply Chain personnel in the event that any requirement contained in the ASC Contract/PO or this manual is not fully understood.





Control of non-conforming products and services 2.23

Suppliers shall ensure that products that do not conform to requirements are identified and controlled to prevent their unintended use or delivery. Appropriate action based on the nature of the non-conformance of products and services shall be taken. This applies also to products and services discovered during or following delivery.

If a non-conforming product or service is provided, a formal non-conformance letter and form is issued, a triggered audit is generally undertaken, in which formal non-conformances are raised and monitored with the supplier. In exceptional cases removal from the Approved Supplier List may be considered.

CMS-50653, Rev 5.0, Page 12 of 12

COMMERCIAL-IN-CONFIDENCE


Appendix 1: Inspection and Test Plan (Example) 2.24

COMPANY NAME/LOGO: ABC Widget Pty Ltd

Client: ASC Pty Ltd ITP No: 047 Date: 12 June 2013

ITP Rev No. 01 Page 1 of 4

Contract / Purchase Order/Work Order Pack /No & Revision:

A0001235- Rev 01

Compiled By: John Brown Quality System: ISO 9001:2008

Contract/ Purchase Order Line Item No: 00085 Checked By: Peter Smith Accreditation No: 1234/2007

ITP Description Manufacture and balance impeller

List of Drawings & Revision

2-209-Rev01 2-210-Rev02 2-211-Rev 0

Legend QC Quality Control W Witness Point

PD Production Supervisor R Record/Doc Required for MDR

H Client Hold Point (Client to be notified) MDR= Manufacturers Data Report (Objective Quality Evidence (OQE) required) WOP= Customer Work Order Pack

Item No. Activity Applicable Procedure Acceptance Criteria Verifying

Document

ITP Company Client Assigned Hold

Points

Date Legend Initials/Sign Legend Signed

1 Receipt inspection of materials ABC 1245-1 Standards/customer specifications Stock status PD

2 Dimensional Check (Confirm Tool

Calibration)

NES 747 Pt. 2 C11 Clause 1104 NES 747 Pt. 2 C11 Clause 1204 Certificate PD

3 Visual Inspection NES 747 Pt 2 C11 Clause 110 NES 747 Pt 2 C11 Clause 1205 Certificate PD

4 Review Delineated areas for NDR NES 747 Pt 2 C11 Clause 8 TS-90-4 Drawing 2-209 Rev 01

PD

5 Dye-penetrant examination Pre-

machining

NES 729 Pt 4 NEST 747 Pt 2 C11 Clause 1206,

1207

Certificate QC R

6 Heat Treatment NES 747 Pt 2 C11 Clause 0601 Furnace validated to NES 746 Certificate PD R

7 Material Compliance – Casting Mechanical Properties

AS 1391 – 1991 NES 747 Pt 2 C11 Clause 0501 (Table 3)

Certificate QC R

8 Dimensional Check Post-machining.

(Confirm Tool Calibration)

Accuracy Control Sheet 2013-3 Drawing 2-2019 Rev 01 Certificate QC R

9 Dye-penetrant examination Post-

machining

NES 729 Pt 4 NES 747 Pt 2 C11 Clause 1206, 1207 Certificate QC R

10 Identify / mark Casting NES 747 Pt 2 C11 Clause 1403 NES 747 Pt 2 C11 Clause 1402 Certificate of Conformance

PD R

11 Balance Impeller (Confirm Calibration of Test equipment)

ISO 1940 Grade 2.5 Certificate W QC R

12 Final inspection and review of MDR- Client to be advised.

Release Inspection 2013-13 Customer PO/WOP CoC/MDR H QC R QC H

13 Preservation/packaging/shipment Procedure 2013-1 NES 747 Pt 2 C11 Clause 1501 PD QC

Documents

Supplier Quality Assurance Manual - asc.com.au · ITP Inspection and Test Plan MDR Manufacturers Data Report NATA National Association of Testing Authorities NATO North Atlantic Treaty