MDA Supply Chain Initiatives Presentation to GSFC Supply Chain Conference

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MDA Supply Chain Initiatives Presentation to
GSFC Supply Chain Conference
DISTRIBUTION STATEMENT A. Approved for public
release distribution is unlimited.
Ed JopsonMDA/QSI Division Chief28 October 2008
Approved for Public Release 07-MDA-3907 (14 OCT
08)
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A Sampling of Supply Chain Initiatives

• Assurance Improvement Action Plan (Stand-down,
  Change Control, QPPRs, Audits)
• Mission Assurance Reps (MARs) Supplier audits
• MDA/Industry Joint Industry (JIT) Initiative 2

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Current Interceptor Quality Status

• Interceptor supplier quality escapes impacted
  2008 program performance
• Recent issues identified the need to implement
  additional product acceptance control processes
  at lower tiers
• Immediate Actions
• Conduct Quality Stand Down across Program
• Stop work at Supplier Sites. Senior
  Leadership/Quality Staff to discuss quality,
  escapes, attention to detail, failure to follow
  processes, inadequate coordination/authorization
  of product/process changes
• Multiple Sessions at Prime, 2nd Tier Major
  Sub-Contractors and Lower Tier Suppliers
• 2. Institute Product and Process Change Control
• 3. Prime
• Conduct detailed Quality, Product Process
  Reviews (QPPRs) All suppliers and integration
  centers.
• Conduct review and verification of training and
  certification of manufacturing workforce.

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Product Assurance Improvement Action Plan

• Immediate Actions contd.
• 3. Prime
• Implement proactive Issue Identification Program
• Implement hardware/software pedigree review
  process as part of Ship Readiness Review process
• Implement incremental product and process
  verification as part of standard supplier product
  acceptance process
• Prudently implement additional MAP/PMAP elements
• Conduct hardware pedigree inspections of in
  stock product if product currently out of
  production
• Conduct baseline review across supply chain of
  product acceptance and screening
• MDA/QS Director, Deputy Director, Interim
  Assurance Integration Manager and MAR arranged to
  visit Supplier Sites, first as Meet and Greet,
  then Walk the Floor, then to Audits 6 months
  SAMPLING

Since early 2005, approx 30 Audits conducted
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Mission Assurance Rep (MAR) Supplier Audit Focus

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Purpose and Origin of the Assessment

• MARs are MDA/QS reps in-plant throughout supply
  chain
• Audits are performed on critical supply base to
  assess and mitigate risk prior to incurring
  detrimental programmatic impacts
• Provides proactive team approach with Govt and
  Contractor
• The communications of Lessons Learned and Best
  Practices is an important part of the overall
  assessment process
• Lessons Learned are adverse work practices of
  experiences that are captured and shared to avoid
  reoccurrence
• Best Practices are good work practices or
  innovative approaches that are captured and
  shared to promote repeat application
• Lessons Learned and Best Practices may or may not
  be related to contractual requirements but are
  offered in the spirit of making the Supplier,
  Prime, and MDA more successful

Its All About Mission Success
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Plan for the Assessment

• MAR and Prime/1st Tier Supplier Quality selects
  key suppliers for inclusion in the assessment
  process for the upcoming year
• Schedule is generated based upon priority and
  risk, and is flowed and socialized with Govt and
  Contractor Program Offices
• Tentative schedule is agreed to and implemented
• Notification is provided one week prior to Audit
  to Prime Contractors, subs and the program
  offices

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Expectations of the Assessment Team

• Expeditious assessment of the disciplines being
  reviewed
• Constant communications with the company escorts
  no surprises of findings and observations at
  out-brief
• A verbal out-brief of the findings and
  observations, including any positive
  observations, at the end of the onsite assessment
  activity
• Discrepancies must be based upon contractual
  requirements
• Observations are based upon best practices and
  the MDA MAP
• Recommendations will be made where ever practical
• Written follow-up of verbal out-brief within a
  reasonable period of time (normally within two
  weeks)

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Expectations of the Supplier

• Printed procedures / work instructions for the
  disciplines being assessed (FOD Plan, ESD
  Procedure, Contamination Control Plan, QMS
  Manual, etc.) Access to other documents as
  needed
• Points of contact / escorts for each assessment
  sub-team
• Escorted access to the production areas and
  personnel for assessors during assessment
  activities
• A working lunch at the suppliers facility in
  order to make more efficient use of the time
  allotted. (no off-site luncheon)
• Attendance of an assessment out-brief at the end
  of the assessment activity by senior management
• Written response to all findings and observations
  provided by the assessment team
• Cooperation during follow-up verification
  activities.

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Assessment Activity

• The assessment activity is conducted over a
  one-to two-day period, depending upon supplier
  facility size
• Auditors are composed from MDA/QS, DCMA,
  Prime/1st Tier and Govt Program Offices and
  typically number 6-8 individuals
• Auditors are chosen to represent a discipline
  they are comfortable with and have in-depth
  experience. In many cases, the individuals are
  Subject Matter Experts (SMEs)
• Daily status summary is e-mailed at the
  conclusion of each day to QS, Program Offices,
  prime contractor, supplier, and auditors so that
  one story is conveyed and misinformation is
  minimized

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Assessment Activity

• The disciplines that are assessed are as follows
  (as applicable)
• Foreign Object Elimination / Foreign Object
  Damage Prevention
• Contamination Control
• Tool Control
• Critical Lift/Move
• Electrostatic Discharge (ESD) Prevention
• Limited Life Materials management
• Calibration and control of tools / test equipment
• Supplier Management Requirements Flow-down
• Manufacturing Planning
• Non-Conforming Material
• Corrective Action Process
• Configuration Management

The assessment is based upon contractual
requirements and best practices
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Typical Audit Agenda

• Welcome and Introductions 800 815
• Review of Purpose of Assessment by Raytheon 815
  830
• Company Overview re facility, MDA work by
  Supplier 830 900
• Break / Assessment team meeting 900 915
• Assessment Activity 915 1145
• Lunch 1145 1230
• Assessment Activity 1230 400
• Assessment Team Meeting 400 430
• Out brief 430 500
• Day Two Agenda Adjusted According to Time Line

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Audit Record

• Documented within two weeks and released to the
  supplier
• Contractor has 30 days to respond
• Audit records are entered in the Prime/1st Tier
  C/A system and tracked through closure
• Closure requires concurrence from MDA MAR and
  Government Program Office

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Out-Brief and Conclusion

• Supplier is provided a daily verbal out brief
  from each team at the end of the day
• Auditors document findings within two weeks post
  audit
• Findings are entered in Prime/1st Tier CA Web and
  released to the supplier through Contracts
• Supplier responds to findings
• Findings are routed to team members for review
  and comment
• Upon concurrence from MAR and Program Office,
  findings are closed in CA Web

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MDA Joint Industry Team (JIT) Energetic
Materials Supplier
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General Impressions from MA Audit

• Material control (conforming and nonconforming)
  practices and situations identified during the
  audit in the manufacturing and test areas are
  inadequate
• Management Corrective Action systems focus on
  short term, reactive solutions and do not ensure
  long term, proactive preventative action
• Unapproved and uncontrolled changes to test and
  build documentation
• CM policies and practices do not provide adequate
  management or control of the configuration of MDA
  hardware
• Numerous safety and OSHA compliance issues across
  the enterprise
• Very significant amount of FOD in the production
  and test areas, static generators in ESD
  sensitive areas, and lack of tool control along
  with grounding and grounding verifications issues

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Conclusions

• This audit highlighted the need for immediate
  action towards improving quality at supplier
• Two locations provide products that are mission
  critical to MDA strategic systems
• Situation at both locations posed a significant
  risk to MDA hardware
• Immediate action required to implement a
  containment strategy to prevent shipping of
  non-conforming hardware
• Immediate action required to assist supplier in
  improving their manufacturing, quality,
  engineering and management systems

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Actions (JIT)

• QS provided a full time lead to head up the
  Industry stakeholder team (JIT) with the
  responsibility for immediate resolution of all
  audit findings
• Full time team in plant at both sites
• Boeing, Raytheon, Orbital, ATK, Lockheed Martin
• Plus DCMA and MDA
• Rotating JIT senior/Executive Leads on site every
  week
• Implement a containment strategy in parallel with
  working with PSEMC to improve their
  manufacturing, quality, engineering, and
  management systems
• Surveillance of all in process product
  inspections
• Surveillance of targeted processes

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Actions (JIT)

• FOD/ESD/Safety Audits in all areas, all shifts
• Documentation/Build Paper Reviews
• Capture all observations on RAIL (Rolling Action
  Item List)
• RAILs get dispositioned every day
• Review of all closed RCCA documents for
  legitimate RC and Effective CA
• Work with Supplier to establish verify RCCA on
  all MDA Audit Findings before submittal to the
  MDA Pgm offices
• Weekly reviews with Supplier leadership to make
  sure the plan is being executed
• Conduct a JIT corrective action assessment of
  both sites to validate disposition of audit
  findings before official CAA
• Exit Criteria sustained metrics at zero