Supplier Introduction

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Supplier Introduction Tutorial 26 February
2008David MichaudSupplier SSC LT Chair
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First Time Mtg Attendees

• Introduce yourself, tell us
• Your Name
• Company Name
• What commodity(ies) will be audited

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Orientation Agenda

• Introduction to Nadcap
• Basic Tools and Advice
• How to Prepare for your Audit
• What to Expect During the Audit
• Important Post Audit Information
• Additional Information

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Welcome to Nadcap

• The leading, worldwide cooperative program of
  major companies designed to manage a cost
  effective consensus approach to special processes
  and products and provide continual improvement
  within the aerospace industry.
• Nadcap is an industry managed program.

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Industry Managed
Audit Checklist
Process Evaluation/ Improvement
Auditor Qualification Selection
Corrective Actions As Required
Industry experts manage all key steps
Audits Conducted
Audit Results
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PRI/Nadcap Organizational Structure

• Executive leaders
• Legal entity
• Fiduciary responsibility
• Set policy
• Provide the Vision

• Senior Quality Leaders
• Reviews Nadcap resources in Europe
• Promotes Nadcap in Europe
• Monitors affordability issues as they relate to
  Nadcap in Europe.

European Regional Advisory Board (EURAB)
Nadcap Management Council (NMC)
Task Groups Special Processes Chemical
Processing Coatings Heat Treating Materials
Testing Nonconventional Machining Surface
Enhancement Nondestructive Testing Welding Systems
Products AQS (AC7004) Composites Distributors E
lectronics Fasteners Fluid Distribution
Systems Sealants, Elastomer Seals

• Senior quality leaders managers
• Oversee operation of Nadcap
• Establish implement policy procedures
• Task group coordination development
• Identify, develop and deploy improvement

• Technical Experts
• Determine requirements
• Develop documents
• Accept corrective action
• Final decision on accreditation

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Industry-Managed Active Customer Audits/Certs
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Nadcap eAuditNet Process
Suppliers
PRI Audit Scheduled
Auditor Assigned
Request Audit
Task Group Approval
Audit Completed
PRI Technical Staff Review
Issue Cert
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Orientation AgendaSection II

• Introduction to Nadcap
• Basic Tools and Advice
• How to Prepare for your Audit
• What to Expect During the Audit
• Important Post Audit Information
• Additional Information

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Primary Documents

• The two most important documents you need are
  the
• Audit checklist
• Audit handbook (if available)
• You will be audited to the checklist AC7XXX as
  developed by the Task Group. Secure both from
  www.eauditnet.com in advance of the audit

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eAuditNet PRI Website

• www.eAuditNet.com
• Public Documents
• eAuditNet Supplier Guide Pre Post-Audit
  Tutorials
• Audit Handbooks
• Miscellaneous documents (Auditor training,
  Pyrometry, etc.)
• User Documents
• Checklists
• www.pri-network.org
• Nadcap, Supplier Info
• SSC page contact details, mentoring and more
• PRI/Nadcap from a Supplier Perspective
• Root Cause Corrective Action Tools/Training
  materials and dates
• Check both sites often updates made frequently

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Nadcap
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Supplier Page
Staff Contacts
eAuditNet
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Checklists
User Documents
Public Documents
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Nadcap Procedure Hierarchy
Roles and responsibilities for Nadcap Auditors,
and technical/administrative clarifications to
facilities.
Detail the procedures by which PRI/Nadcap Staff
operate.
Describe the scope and general procedures for
each specific PRI/Nadcap commodity program.
Procedures by which the Nadcap program operates.
Quality policy describing the quality system of
organization.
Aerospace Standard - requirements for
implementing Nadcap industry consensus-based
accreditation programs.
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NIP 7-04 Accreditation Term

• Your term of accreditation begins in conjunction
  with your audit date, not the issue date of your
  certificate.
• Accreditation terms are tied to the Nadcap
  quarterly cycles.
• Reference NIP 7-04 on www.eauditnet.com under
  User Documents

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NIP 7-07 Export Controlled Materials and
Information Jan 16, 2008

• The US government has determined that certain
  products, processes and technical information
  must be controlled.
• The documents which control this are
• ITAR International Traffic in Arms Regulation
• EAR Export Administration Regulations
• Exports can occur by seeing or discussing
  controlled material in addition to obtaining
  copies of the material

Throughout this presentation when we refer to
Export Control (EC) we are referring to ITAR/EAR
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NIP 7-07 Export Controlled Materials Information

• The Nadcap process uses both Unrestricted and
  Restricted personnel (auditors and Staff
  Engineers) on Nadcap audits.
• Unrestricted personnel are US citizens green
  card holders are allowed access to Export
  Controlled materials.
• Restricted personnel are non US citizens or green
  card holders are not allowed access to Export
  Controlled materials.
• Suppliers must know the status of the PRI
  personnel keep any Export Controlled material
  away from Restricted personnel
• Auditor status can be found in eAuditNet next to
  auditors name for assigned audit
• Best way to determine the rest of PRI Staff
  status is to ask them

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Supplier Responsibilities

• Determine whether you have material which is
  protected under ITAR/EAR.
• Contact your customers to be certain.
• If you have product, information or any other
  material(s) protected under ITAR/EAR, you must
  indicate such by answering YES to the ITAR/EAR
  question after accepting the supplier agreement
  when the audit is scheduled.
• This alerts PRI Scheduling as to whether ITAR/EAR
  controlled work exists and guides the
  assignment of the auditor.

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Supplier Responsibilities (Cont)

• Work with PRI Scheduling - if you have ITAR
  controlled material they will attempt to schedule
  an unrestricted auditor (one who can look at ITAR
  controlled material).
• If an unrestricted auditor cannot be scheduled, a
  Restricted auditor may be assigned. Scheduling
  Staff will contact the supplier to determine if
  sufficient non-Export Controlled work will be
  available. If it is, a Restricted auditor can be
  assigned.
• The supplier must ensure that only non ITAR work
  is presented to the Restricted auditor for the
  audit.
• Screen all documents for ITAR controlled
  requirement before presenting to auditor NOTE
  if ITAR/EAR information is sent to an
  Unrestricted auditors as part of the pre-audit
  paperwork, it must be recovered by the supplier
  after the audit.

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Supplier Responsibilities (Cont)

• General information on Export Control can be
  found in eAuditNet (Public Documents) and on the
  Supplier page of the Nadcap website
  (www.pri-network.org)
• Suppliers cannot post or reveal any technical
  details on EC parts in response to any findings
  in eAuditNet.
• At Nadcap meetings ensure that no information is
  discussed or presented to anyone which is Export
  Controlled.
• Contact your prime customer if you have any
  question about the status of information as to
  Export Control.

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Supplier Merit (NOP-008)

• Accreditation term for initial audits is 12
  months.
• Suppliers with superior performance will be
  eligible for longer terms 18 months or 24
  months
• Merit is based on performance in two consecutive
  audits for most task groups.
• Eligibility is contingent on no Product Impact
  findings and no adverse Supplier Advisories
• Each Task Group has specific criteria. Refer to
  the NTGOP Appendices, available on
  www.eAuditNet.com under User Documents

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Failure Policy (NOP-011)

• Suppliers can fail an audit for
• Supplier stops the audit
• Excessive number of findings
• Severity of findings
• Too many corrective action response review cycles
  to close
• Nonresponsiveness
• The above criteria are not automatic failure
  points the Task Group votes and makes the final
  decision
• Only 4 of all audits conducted in 2007 resulted
  in failure the majority were due to
  Nonresponsiveness
• Specific criteria determined by Task Group
  refer to
• NOP-011,User Documents, www.eauditnet.com

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Orientation AgendaSection III

• Introduction to Nadcap
• Basic Tools and Advice
• How to Prepare for your Audit
• What to Expect During the Audit
• Important Post Audit Information
• Additional Information

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Initial Steps

• Register in eAuditNet.com
• Contact PRI Scheduling
• Complete a preliminary questionnaire and return
  to Scheduling
• Obtain length of audit and cost
• Obtain access to Nadcap checklists
• Schedule Audit
• Pre-Audit Preparation participate in NCSI!

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Pre-Assessment Audit

• You can schedule a pre-assessment audit using a
  Nadcap auditor BEFORE your actual Nadcap audit.
• Three types procedural review, complete
  documentation review, full scope audit.
• All the data from the audit will be left with
  you. No need to close out findings with Nadcap.
• If there is a finding which clearly may affect or
  has affected product, it will be sent to the
  Primes.
• Contact PRI Scheduling and refer to NIP 7-06 for
  more information.

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A Nadcap Audit is . . .

• The most thorough and comprehensive audit you
  probably have ever had.
• Conducted by experts in the field with technical
  special process knowledge and background.

The more you prepare the greater success you
will have.
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Quality System Approval

• Before you can receive a Nadcap special process
  accreditation, your quality system must be
  approved
• Nadcap recognized quality systems approvals
• AS9003 and AS/EN/JISQ 9100 quality system
  approvals performed by approved registrars -
  listed in the IAQG Oasis database.
  (www.iaqg.org/oasis). Product groups require
  AS9100.
• ISO/IEC 17025 for testing laboratories (AC7101),
  must cover the Nadcap scope of accreditation and
  be from an approved NACLA/ILAC accreditation
  body.
• If you have neither of these, you will need a
  Nadcap AQS audit to AC7004 or AC7006 (labs) to
  support the special process accreditation.
• Refer to NOP-002 in www.eAuditNet.com.

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Quality System Approval (Contd)

• Suppliers scheduling an initial Nadcap audit
  shall provide PRI a recognized quality system
  certification prior to the time the audit is
  entered into eAuditNet or an AC7004 assessment
  audit shall be scheduled, unless TG requires more
  than AC7004.
• For reaccreditation audits, where no existing
  recognized quality system approval exists,
  Suppliers shall have two options
• a minimum of 90 days prior to the audit start
  date schedule an assessment to AC7004, unless TG
  requires more than AC7004
• provide PRI a valid Quality System accreditation
  certificate no later than 60 days following the
  end of the Nadcap audit
• Suppliers who fail to provide a valid quality
  system accreditation certificate to PRI by this
  date shall have the process audit automatically
  failed without further notice.

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Self Audit

• Perform a thorough and complete self-audit using
  the Nadcap checklist.
• Record for each question, where in your system
  you meet the requirement
• Record for each question, where you have
  objective evidence of compliance
• If you can not list where in your system you have
  documentation and what you will show the auditor
  the answer is No!
• Fix all Nos with complete root cause
  corrective action prior to audit.

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Additional tools

• Use the tools on www.eauditnet.com
• Tutorials
• Audit Handbooks
• Checklists
• Contact your customers to verify your audit scope
• Read the preparation instructions for your
  commodity. You must send certain documents
  (quality manual, procedures, etc.) to your
  auditor AT LEAST 30 days prior to your audit.
• Familiarize yourself with www.pri-network.org and
  the tools available.
• Courses such as NCSI, RCCA, etc.
• Nadcap meetings information
• Keep your management informed
• Time spent on preparation will save even more
  time after the audit.

Do your Own Job Audits
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Job Audit

• Job Audits a key part of the Nadcap audit is
  the job audit.
• A job audit is a step by step review of all
  processing on actual hardware evaluating how you
  meet your customer requirements.
• Each special process family has a numbers of job
  audits that will be conducted with the special
  process checklist.

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Job Audit (Contd)

• Schedule the Nadcap audit when you can perform as
  many of the job audits as possible.
• Work with PRI scheduling and your internal
  (company) scheduling to ensure you will have jobs
  for the audit.
• Example
• Try to schedule the audit on days of the week
  you may have more work (Tuesday through Friday
  vs. Monday through Thursday)
• If possible, avoid scheduling audits when your
  larger customers are shut down.
• You should have available a REAL part from a
  Nadcap aerospace Prime
• NOTE
• Each Task Group has specific requirements. You
  MUST review the Audit Checklist for
• specific details and speak to the Staff Engineer
  if you will not have a part from a
• Nadcap aerospace Prime at the time of your audit.

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Supplier Mentoring

• SSC has established a mentoring program for
  suppliers
• The program matches suppliers who need assistance
  with experienced suppliers who can help them
  succeed in the Nadcap process
• Goal educate supplier base reduce cycle time
• Go to www.pri-network.org SSC page for more
  information.
• To request a mentor, send an email to
  NadcapSSC_at_sae.org

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PRI Staff Engineer

• The PRI Task Group Staff Engineer has commodity
  specific knowledge and expertise.
• The Staff Engineers review and approve all
  specified audits.
• Staff Engineers have years of audit review
  experience use their expertise before and after
  your audit

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Staff Engineer Advice

• Do not rely on your customer to have found
  everything in the specification.
• It is your responsibility to ensure that you meet
  all requirements.
• The auditor will check for complete compliance
  and ensure compliance flows throughout your
  documents.

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More Staff Engineer Advice

• If there is a conflict between the checklist and
  your customer requirement, pick the most
  stringent.
• Multiple customer requirements require a more
  robust system.
• The specification is the requirement. Procedures
  must meet all requirements in the specification.
• All process requirements must
• Be Documented
• Be Complied with
• Have objective evidence of compliance.

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Still More Staff Engineer Advice

• Ask questions early regarding interpretations.
• Typical problem areas
• NDT Exams (Level III)
• HT - Pyrometry
• CP Periodic testing

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Orientation AgendaSection IV

• Introduction to Nadcap
• Basic Tools and Advice
• How to Prepare for your Audit
• What to Expect During the Audit
• Important Post Audit Information
• Additional Information

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Scope Verification

• Audit In-briefing Sets the stage for the audit.
  Supplier auditor will verify the scope of the
  audit.
• This requires access to the internet for auditor
  to conduct a sign-off process in eAuditNet.
• Any changes or corrections to the scope must be
  made before the audit starts.
• After the audit is conducted, no changes can be
  made to the scope of your accreditation.

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Daily Briefings

• At the end of each audit day, the auditor will
  conduct a daily briefing.
• Meeting is designed to review any findings from
  that day and to ensure all findings are
  understood.
• Make certain that you have proper supplier
  personnel attend this meeting.
• Raise any issues or problems that arose during
  the audit.

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NCR Classifications

• Major Nonconformance
• The absence of, or systemic breakdown of, the
  Process Control and/or Quality Management system.
  Or
• Any non-conformance where the effect impacts or
  has the potential to impact the integrity of the
  product.
• Minor Nonconformance
• Any single system failure or lapse in conformance
  with the
• applicable standard or audit criteria.
• Refer to PRI Quality Manual available in the User
  Documents
• section of www.eauditnet.com.

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Outbriefing Meeting

• Schedule top management to attend.
• Make certain that you understand all NCRs as
  written ask questions if you do not understand
  make sure the finding will be clear to the
  Staff Engineer and Task Group.
• Review the process requirements and expectations
  before the auditor leaves.

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Orientation AgendaSection V

• Introduction to Nadcap
• Basic Tools and Advice
• How to Prepare for your Audit
• What to Expect During the Audit
• Important Post Audit Information
• Additional Information

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After the Auditor Leaves

• We value your feedback Nadcap is a cooperative
  program
• When you submit your NCR responses you will be
  prompted to complete an online questionnaire
• If you require a response, or have a complaint,
  please submit it in writing, separately from the
  questionnaire
• There is an appeals process for NCRs, Staff
  Engineer decisions, and Task Group decisions
• Contact the Staff Engineer for more information

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Corrective Action Response Submittals

• Reply to your Non-conformances in the Supplier
  Discussion for each NCR.
• Immediate Corrective Action Taken (Containment
  Actions)
• Root Cause of Nonconformance
• Impact of all Identified Causes and the Root
  Cause
• Action Taken to Prevent Recurrence
• Objective Evidence Attached
• Must be included for ALL findings for Initial
  audits AND Reaccreditation audits.
• You may submit evidence by uploading attachments
  or via U-fax, refer to the eAuditNet Supplier
  Guide for help.
• IMPORTANT if a procedure is changed, clearly
  specify what the change was. Change or create a
  procedure, implement a new system or method,
  perform training / awareness, propose audits, new
  checklists, etc? SHOW IT.

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NCR Responses

• Responses are due 21 calendar days from the close
  of the audit
• Submit in eAuditNet
• Submit in accordance with Requirements for
  Corrective Action Response Requirements
  (eAuditNet Supplier Guide and www.pri-network.org)
  
• For completeness of the audit report, additional
  information or clarifications may be requested by
  the Staff Engineer. Responses must be submitted
  through the Observation Forum on
  www.eauditnet.com

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Response Due Dates

• Initial responses are due in 21 days, subsequent
  responses are due in 7 days. Any responses sent
  outside of these requirements will be considered
  late.
• No extensions can be granted.
• Suppliers are given 45 days of cumulative
  lateness. If you must be late, you can use up to
  45 days to respond.
• This is not to be considered extra time, this is
  late time that suppliers can use for issues that
  prevent them from responding according to the
  requirements (plant shutdowns, holidays, etc.)
• The total number of days past due will be visible
  in eAuditNet and reminders will be sent when the
  audit is 15 and 30 days past due
• At 45 days past due, the audit will be balloted
  for failure.

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RCCA help

• Help available
• www.eauditnet.com
• A link to Response Requirements is attached to
  the
• NCRs
• Also www.pri-network.org
• -Nadcap page
• -Supplier Info Post Audit Assistance
• -Supplier Training additional tools

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Supplier Advisory/Early Review

• If a potential product impact or failure issue is
  identified all User members will receive an early
  review notice to look at the audit results.
• If deemed necessary, a Supplier Advisory will be
  issued.
• An advisory is a formal way of communicating
  concerns regarding documented possible product
  impact, changes in key personnel, quality
  systems, equipment, etc. to Nadcap Subscribing
  Prime Members.
• Four levels Preliminary, Potential Product
  Impact, Safety Alert, Audit Failure, plus one
  informational.

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Supplier Advisory/Early Review (Contd)

• Suppliers are encouraged to provide their own
  comments as part of the advisory (within 5
  working days).
• Before closing the advisory, all other
  accreditations will be reviewed to determine if
  the identified issue is systemic and affects
  other accreditations/ registrations.
• If the issue is widespread, revocation of current
  accreditation (if one exists) and other
  commodity/quality certificates could occur.
• Refer to NOP-006 for more information.

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NCR Review

• NCR responses may be sent back
• By the Staff Engineer
• Based on history and experience with Task Group
• History with similar findings/responses
• By the Task Group
• Each Request for additional information
• Delays your Accreditation
• Adds to cycle time

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If Your Response is Not Accepted

• You have 7 days to respond to the Staff Engineer
• If the Staff Engineer details specific requests
• Review and comply with the entire request. Your
  response will not be accepted until all items are
  addressed.
• In the event of a generic rejection, i.e.,
  Readdress Root Cause
• Review the Requirements for Submittal of
  Corrective Action Responses and comply
• NOTE use e-mail/phone to work out an acceptable
  response do not ask questions in eAuditNet -
  each reply counts as an additional cycle

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Common Findings

• Job Audits
• Customer flowdown
• Lack of shop discipline inform your personnel!
• Lack of documentation/Objective evidence
• Data transfers
• Processes requiring approvals not approved (i.e.,
  NDT Techniques or other frozen process)
• Specification compliance (i.e., frozen process
  doesnt meet specification, AMS 2750 compliance,
  etc.)
• Parts cleaning not in accordance with
  requirements
• Testing including periodic

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Automatic Scheduling

• When the Task Group has granted your Nadcap
  accreditation, eAuditNet will be updated and your
  accreditation will be listed on the online
  Qualified Manufacturers List (QML).
• At this same time, your next Nadcap audit for the
  same commodity will be automatically scheduled by
  eAuditNet. Some can not be auto-scheduled 85
  are!
• Please verify the dates and contact the
  Scheduling Department within 21 days of any
  changes. IMPORTANT, a reminder will NOT be
  sent.

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Automatic Scheduling More Details

• When an audit is auto-scheduled, you must still
  accept the Supplier Agreement and designate if
  there is ITAR work involved.
• Log in to eAuditNet, click Accept Agreement. A
  list of audits where agreements are not accepted
  will appear.
• Select the audit for which you wish to accept the
  agreement and indicate ITAR status.
• This must be done prior to every audit. You will
  receive reminders.

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Orientation AgendaSection VI

• Introduction to Nadcap
• Basic Tools and Advice
• How to Prepare for your Audit
• What to Expect During the Audit
• Important Post Audit Information
• Additional Information

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eAuditNet Information

• Keep your email address current to ensure you
  receive important emails related to your audit.
• If there is a change in your contact information,
  inform PRI.
• Do not reply to automated emails received from
  eAuditNet there are contacts listed in the
  email.
• For eAuditNet Support, refer to the Public
  Documents section for User Guides or contact the
  Help Desk at 1 724 772 1616 x8679 or via email
  at eauditnetsupport_at_sae.org.

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Supplier Support Committee (SSC)

• SSC Position in Nadcap
• The SSC is an integral part of the Nadcap
  process.
• Established in NOP 001 just like the Nadcap
  Task Groups.
• SSC Chair is a voting member on NMC.
• Full support from PRI Staff.

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Supplier Support Committee Mission Statement

• Our goal is to represent the supplier community
  and work with the Nadcap Management Council to
  enhance the effectiveness and economical value of
  the Nadcap system for the mutual benefit of
  suppliers and primes.

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SSC Systemic Focus

• Operates independent of the Task Groups.
• SSC Focus is on overall issues common to
  suppliers NOT technical or Task Group specific.

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SSC Organization

• SSC LT is comprised of
• SSC Chair
• SSC Vice Chair
• 2 representatives from each Sector
• Secretary
• Standing Committees
• Communications Mentoring
• Metrics
• Survey
• Task Group Reps to SSC

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Supplier Support Committee Leadership Team (SSC
LT)

• David Michaud, Chairperson
• -Fountain Plating Co
• Jim Cummings, Vice Chairperson
• -Metal Finishing Co
• Derek Alty, Europe Sector Rep
• -Bodycote Heat Treatments Ltd
• Bob Custer, Americas Sector Rep
• -AAA Plating Inspection Inc

• Eric Jacklin, Americas Sector Rep
• F. M. Callahan Son
• Yoshiomi Sukesada, Asia Sector Rep
• -Asahi Kinzoku Kogyo Co. Ltd
• Stu Sherman, Secretary
• -Metallurgical Processing Inc

Two Open Positions Asia Sector Rep Europe Sector
Rep
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SSC Activities

• Supplier survey
• Communiqué Flyer participation - newsletter to
  Nadcap participants
• SSC Metrics
• Mentoring program

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Nadcap Meeting Information

• Available at www.pri-network.org
• Minutes Agendas
• Keep up with Task Group activities
• Participate in Task Group decisions
• Plan to attend Open Meeting Suppliers are
  always welcome
• Attend the Supplier Support Committee (SSC)
  meeting

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Nadcap Meeting Information
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Obtain Agendas and Registration for Upcoming
meetings
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Important Meetings

• Supplier Support Committee Meeting
• Your participation is needed!
• Today 26 February 2008
• 400pm-600pm
• eAuditNet Training for Suppliers
• Today, following this session

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Upcoming Nadcap Meetings

• Meetings in 2008
• Nadcap meetings will now be three times per year.
• 21-25 July 2008 Pittsburgh, PA, US
• 6-10 October 2008 Yokohama, Japan
• Additional details can be found in the Nadcap
  Meeting Attendees Guide

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Our Web Addresses

• www.pri-network.org
• www.eauditnet.com

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Questions?

• Any Questions?