The True Cost of Becoming Aerospace Accredited

Heat Treater Furnaces North America

Tuesday October 7th 2014

10:30-11am

Bob Hill

President

Solar Atmospheres of Western PA

Heat Treatment of Yesterday

Courtesy of Surface Combustion Courtesy of Surface Combustion

Heat Treatment of Today

Courtesy of Surface Combustion Courtesy of Surface Combustion

Instrumentation of Yesterday

Instrumentation of Today

Pyrometric Tools of Yesterday

Pyrometric Tools of Today

Today Quality Accreditations are Driving Perfection

NADCAP

ISO

Boeing

The Heat Treaters Bible (Including Aerospace) AMS 2750E

Temperature Uniformity Surveys Validates the proper functioning & limitations of any heat

treat furnace

Operator Training Programs

Detailed procedures, records, and statements of limitations regarding personnel

Procedures: Equipment Capability Pyrometry Furnace Operations Preventative Maintenance Contract Review Technical Instructions to shop floor Testing and Reporting Results Non Conformances Control of Records

Purchasing Control of critical supplies

T/Cs Specialty Gases Capital Equipment

Control the purchase of Heat Treating Services Proper Flow down of Information

AMS Specifications Complete and well vetted documents that

control the heat treatment of most metals in a uniform and well tested environment

Value Added Support Services

The Cost of Quality is Not Cheap!

Yearly Costs of Nadcap /AS/ISO Quality 5 Quality FTEs $450K TUS Costs $150K Procedural Costs

Bake Outs (bi monthly) $550K Leak Up Rates (weekly) $550K Calibrations $10K

Third Party Audit Costs (travel) $20K Additional Thermocouple costs $83K Additional Testing Equipment $150K Level III NDT Consultant $11K IT Related Costs $10K

Total Costs = $1,984,000 (approx. 13% of total sales)

This Does Not Include Auditing Costs Associated with Primes

Airbus Boeing Lockheed GE Honeywell Safran Pratt & Whitney

UTC Aerospace Space X Northrup Grumman Hamilton Sundstrand Parker Aerospace Sikorsky Rolls Royce

Not to Mention Sub Primes

This Does Not Include Supply Chain Requirement Costs:

ITAR / EAR Registrations Exostar Registrations EDI (Electronic Data Interchange) Barcode Scanning Training:

SCA (Source Certifying Agent) CHTR (Certified Heat Treating Representatives) DQR (Designated Quality Representative)

My Opinion:

Heat Treat Accreditations are NOT going away!

Todays Heat Treating Market

North American MTI Commericals Nadcap Accredited = 52 out of 269

North American Captives and Commericals

Nadcap Accredited = 492

The Ultimate Goal of an Aerospace Engineer is to increase passenger

safety

Nadcap Global Recognition

1 5 6 6 7

10 10 14 17

19 21 26

30 32 33 30 31 30 31 29

1 2 2 3

3 3

5

12

16

18 18 19 20 20 20 21 21

1 1

1 1

0

10

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1990 1991 1992 1994 1995 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

South America

Asia

Europe

North America

Nadcap Evidence of Increasing Quality

Chart1

2772

3111

3385

3696

3945

4112

Number of suppliers on merit

Sheet1

Number of suppliers on merit

20092772

20103111

20113385

20123696

20133945

20144112

To resize chart data range, drag lower right corner of range.

Nadcap Positive Supplier Feedback

25%

77% 76%83% 85%

0%20%40%60%80%

100%

2003 2005 2007 2009 2011

Quality Increase

*2011 SSC Supplier Survey*

Chart1

25

77

76

83

85

Quality Increase

Sheet1

Quality Increase

200325

200577

200776

200983

201185

Nadcap Improved Performance

*2011 SSC Supplier Survey*

Nadcap Improved Commercial Opportunity

*2011 SSC Supplier Survey*

Other Industries are Joining In

Top Ten Keys to Quality & Compliance 1) Minimize Employee Turnover 2) Know the PRI checklist by memory 3) Take copious notes on the checklist & save it for next audit 4) Have every employee perform an internal audit on a job 5) Scrutinize every aerospace job prior to shipping 6) Attend the Nadcap annual meetings in October

9) Top management must lead this effort! 10) Network with other Heat Treaters

8) Review past findings & make sure they are not repeated

7) Plan preparation meetings 6 months prior to your audit. Dont procrastinate!

THE MTI IS HERE TO HELP YOU!

Questions? Bob Hill bobh@solarwpa.com

Slide Number 1Heat Treatment of YesterdayHeat Treatment of TodayInstrumentation of YesterdayInstrumentation of TodayPyrometric Tools of YesterdayPyrometric Tools of TodayToday Quality Accreditations are Driving Perfection Temperature Uniformity Surveys Operator Training ProgramsProcedures:PurchasingAMS Specifications Value Added Support ServicesThe Cost of Quality is Not Cheap!Yearly Costs of Nadcap /AS/ISO QualityThis Does Not Include Auditing Costs Associated with PrimesThis Does Not Include Supply Chain Requirement Costs:My Opinion:Todays Heat Treating MarketThe Ultimate Goal of an Aerospace Engineer is to increase passenger safetySlide Number 23Nadcap Global RecognitionNadcap Evidence of Increasing QualityNadcap Positive Supplier FeedbackNadcap Improved PerformanceNadcap Improved Commercial OpportunityOther Industries are Joining InTop Ten Keys to Quality & ComplianceThe MTI is here to help you!