Quality &

Supplier
Management

March 2008

Mike Gillette
IPIC Quality Assurance Manager
Northrop Grumman Corporation
1 Copyright 2005 Northrop Grumman Corporation
 Quality & Supplier Management

Outline
Outline

 History
 Early Involvement
 Proposal
 ASMB
 RFP
 Source Selection
 SDD
 Production

2 Copyright 2005 Northrop Grumman Corporation

 ICBMs – A continuing Success Story
1957 1957 1959 1961 1964 1968 1983 1989 2000

Atlas Thor Titan MM I MM II MM III PK SICBM MM III

SLE

1950s 1960s 1970s

1970s 1980s
1980s 1990s
1990s 2000+
1950s
•Atlas 1st Launch (1957)
1960s
•MM I 1st Launch (1961) •PK Go-Ahead (1972) •PK 1st Launch (1983)
•PK 1st
•REACT
•REACT •MMP
2000+
•PK Go-Ahead (1972) •SICBM Launch (1983)
Go-Ahead (1983) •GRP •MMP
•Atlas
•Thor 1st Launch (1957) •MM
•MM I 1stLaunch
Launch(1964)
(1961) •SICBM •GRP •PSRE
1st Launch (1957) II 1st •PKRG Go-Ahead
Go-Ahead (1983)
(1986) •PRP •PSRE
•Thor1st
•Titan 1stLaunch
Launch(1959)
(1957) •MMIIIII1st
•MM 1stLaunch
Launch (1964)
(1968) •PKRG Go-Ahead (1986) •PRP •SERV
•Titan 1st Launch (1959) •MM III 1st Launch (1968) •SICBM 1st Launch (1989) •ICBM Prime Award (1997) •SERV SLEP
•REACT
•SICBM 1st Launch (1989) •ICBM Prime Award (1997) •REACT SLEP
•ECS
•ISMP
•ICU

A  Hold Targets at Risk

A Critical
Critical
 Provide Deterrence Against Attack
National
National  Rapid Receipt and Response to Emergency Action Messages
Asset
Asset (EAMs)
 Flexible Response Against Our Enemies Should Deterrence Fail
In
InAn
AnUncertain
UncertainWorld
WorldICBMs
ICBMsContinue
ContinueTo
ToBe
Be
Important
ImportantTo
ToOur
OurNational
NationalDefense
Defense

3 Copyright 2005 Northrop Grumman Corporation

 Supplier Management
 No quality escapes to the field
Objectives
Objectives  Quality is built-in, not
inspected-in

 Over 3500 end items delivered

Results
Results to field since 2002 with
essentially no quality issues

Key Features Benefits

 Well established process to identify and  Programs executed on plan with no
qualify new vendors substandard parts or components
delivered to field
 Focus on developing and qualifying  Understanding of our needs as a
vendors to meet our high standards customer and sound basis for
before production starts shared success
 Monitor suppliers, during design and  Ensures timely awareness of
production, for successful corrective difficulties and provides time to
actions addressing variances from plan correct without impact to customer
 Multi-tier vendor audits and  Reinforces commitment to quality
assessments products throughout supply chain
 Suppliers evaluated for ability to  Vendor oversight approach adapted
consistently produce quality products to needs of supplier

14 Copyright 2005 Northrop Grumman Corporation

 Process for Supplier Management
Role Role
RoleofofProgram
ProgramManager
Managerand
andEngineers
Engineers- -Production
RoleofofProgram
ProgramManager
Managerand
andEngineers
Engineers––Pre
PreAward
Awardand
and 
Production
Design  Conduct
Conductprogram
programreviews
reviewsevery
every6-8
6-8weeks
weeks
Design Cost, Schedule, Technical, Risk and Corrective Actions to
  Conduct program reviews monthly Cost, Schedule, Technical, Risk and Corrective Actions to
Conduct program reviews monthly Variances
Cost, Schedule, Technical, Risk, and Corrective Actions to Variances
Cost, Schedule, Technical, Risk, and Corrective Actions to  Approve Class I changes
Variances  Approve Class I changes
Variances Review Class II changes
 Conduct independent technical review for design reviews/audits Review Class II changes
 Conduct independent technical review for design reviews/audits  Attend selected on-site joint reviews of sub-tier suppliers
  Establish Weapon System Integration test procedures  Attend selected on-site joint reviews of sub-tier suppliers
Establish Weapon System Integration test procedures
  Monitor progress toward production readiness
Monitor progress toward production readiness

Functional and
Acquisition Critical Design Physical
Planning Review Configuration Audits Low Rate Full Rate
Production Production

Deliver Accepted Products

Contract/ Weapon System Production
Subcontract Integration Readiness Reviews
Awards Testing

Role Role
RoleofofQuality
QualityEngineers
Engineers- -Production
RoleofofQuality
QualityEngineers
Engineers––Pre
PreAward
Awardand
andDesign
Design Production
  Qualify supplier for specific work scope  Participate in on-site joint reviews of sub-tier suppliers
Qualify supplier for specific work scope  Participate in on-site joint reviews of sub-tier suppliers
  Monitor supplier processes for compliance  Conduct on-site inspection of process compliance during each site
Monitor supplier processes for compliance  Conduct on-site inspection of process compliance during each site
Establish and monitor corrective actions when necessary visit
visit
Establish and monitor corrective actions when necessary
 Team with first tier supplier on supply chain monitoring Establish and monitor corrective actions when necessary
 Team with first tier supplier on supply chain monitoring Establish and monitor corrective actions when necessary
Establish baseline for production qualification  Conduct three-way (Government, Prime, Supplier) buy-off of
Establish baseline for production qualification  Conduct three-way (Government, Prime, Supplier) buy-off of
As products
Asnecessary, develop or disqualify supplier prior to
necessary, develop or disqualify supplier prior to products
production readiness review   Resolution of material & process discrepancies (MRB)
production readiness review Resolution of material & process discrepancies (MRB)
  End Item Data Packet definition to ensure traceability to
End Item Data Packet definition to ensure traceability to
requirements
requirements

25 Copyright 2005 Northrop Grumman Corporation

 Early QA Involvement

 Proposal Phase
 Participate in Alpha Negotiations
 QA Submits a Basis of Estimate
 Participate in Supplier Proposal Evaluation
 Approver of Contract Deliverables Definition
 Participate in the Final Proposal Review

6 Copyright 2005 Northrop Grumman Corporation

 Early QA Involvement

 Acquisition Strategy Make Buy (ASMB)

 SQE is a Signature
 SEIT is a Participant
 Request For Proposal (RFP)
 Contains a Mission Assurance Requirements
Document Written by SQE in Concert With MA
Team
 SQE Reviews the Request for Proposal
 Supplier Selection
 Pre-award Assessment
 Participate in Source Selection

7 Copyright 2005 Northrop Grumman Corporation

 Early QA Involvement

 Review & approval of Supplier/Subcontractor QA Plans

 Conduct Sub-tier Supplier Assessment
 Support Formal Reviews
 SRR
 PDR
 CDR
 TRR
 PRR
 Qualification Testing
 Support Functional and Physical Configuration Audits
 Conduct First Article Acceptance
 Incoming Inspection Verification
 In-Process Audit and Inspection Verification

8 Copyright 2005 Northrop Grumman Corporation

 Supplier Development

 Process Owner Reviews Supplier Monitoring

Sub Quality Current Mitigation

 Failure Modes and Effects

Subcontractor Comment Mitigation Plan
Tier Survey Rating Rating

Analysis (FMEA)
Supplier A 1 Date Y G

 Develop/Review Work
Supplier B 2 Y G

Instructions
3 R G

3 Y G

 Define/Develop/Document 2 Y G

Critical Processes
3 Y G

3 R G

 Assist in Obtaining ISO

R Major Compliance Issues Y Minor Compliance Issues G ISO Compliant

Supplier Audit IAW ISO9000/AS9100

Compliance Supplier Assessment and Certification
Revision: Initial Release
Section:
Overview
NGMS Certification
Supplier Name :

Supplier Site :

T o t a l P o s s ib le
Date: March 10-11, 2004

S u p p lie r S e lf -
A sse ssm en t

N G M S A u d it

N G M S A u d it
Audit Date

 Review and Verification

P o in t s

P o in t s

P o in t s

P o in t s
of Audit Results/Findings
Prime 19160 Form 260 Green Yellow Red
4.0 Quality Management System 13 2 0 54 43 60 71.7%
5.0 Management Responsibility 10 6 1 63 43 68 63.2%
6.0 Resource Management 6 2 0 30 23 32 71.9%
7.0 Product Realization 10 1 0 41 32 44 72.7%
7.3
Design and Development 6 6 3 54 33 60 55.0%
7.4 Purchasing 11 3 3 56 42 68 61.8%
7.5
Production & Service Provision 15 1 2 60 50 72 69.4%
7.6 Control of Monitoring Measuring 8 1 1 40 27 40 67.5%
8.0 Measurement, analysis and improvement 16 1 2 71 52 76 68.4%
8.3 Control of Nonconforming Product 3 2 3 29 16 32 50.0%
8.4
Analysis of Data 3 0 0 12 9 12 75.0%
8.5
Improvement 7 2 3 44 28 48 58.3%
N/A
Foreign Object Elimination 0 0 0 0 0 N/A
ESD Program 17 0 1 72 66 72 91.7%
N/A Software 0 0 0 0 0 N/A
Total Points
554 398 612

Scores = Total Points / Total Available Points 90.5% 65.0% 65.0%

Notes:
Suppliers Quality Management System has been properly documented in accordance with ISO 9001:2000
standards. Necessary Processes have been identified which pertain to their application throughout the
organization. Assessment results indicate several major and minor deficiencies in understanding and
meeting requirements, obtaining results of process improvement and effectiveness, and continual
improvement of process based on objective measurement.

NGMS Approval

9 Copyright 2005 Northrop Grumman Corporation

 Supplier Monitoring

 Surveillance Plan
 Defines the Surveillance Program
 Enforces the Mission Assurance Requirements
 Surveillance Includes Mandatory Inspection Points
 Production Processes
 Focus on Process Improvement
 Lean/Six Sigma
 Quarterly Scorecard Input
 Corrective Action

10 Copyright 2005 Northrop Grumman Corporation

 Supplier Surveillance

•Surveillance Includes Periodic Audits

Periodic Audits Development Production
F = Frequent S = Seldom
Calibration System S S

Tool Control S S

Internal/External QA Audit results F F

Data Management S F

Configuration Management F F

Product Identification S S

Metrics and Metrics Analysis S F

Training Records S F

Procurement System F S

Corrective Action System F F

Supplier Management F F

MRB S F

11 Copyright 2005 Northrop Grumman Corporation

 Supply Chain Management

 Product Acceptance
 Verification That All Items Are Being Delivered
 Hardware, Software, Documentation, Test
Results, Spares, Data and Records
 Verification That All Items Meet Contractual
Requirements
 Item Built IAW the Documented System
 All Requirements Are Verified
 Records Are Available
 As-Built Configuration Is Controlled

12 Copyright 2005 Northrop Grumman Corporation

 Supply Chain Management

 Product Acceptance Continued

 Define Data Package
 As-Built Configuration (Indentured Parts List)
 Proof of Traceability Requirements Having Been Met
 Open Action Items Are Documented
 Non-Conformances are Properly Corrected
 Waivers and Deviations are Documented
 Incorporated ECP’s Are Listed
 Review Build Paper
 Recording of Critical Parameters
 Certificate of Conformance Accompanied With Objective
Evidence
 Incident Reports

13 Copyright 2005 Northrop Grumman Corporation

 Supplier Management Works at IPIC
•
•
•• • •• ••• ••
•• • • ••
•••
• • •
••
~~650
650Prime
PrimeWAWF
WAWFSell-offs
Sell-offsper
per
year
year(multiple
(multipleitems
items&&locations)
locations)
Summary
 Early Participation in a Program
 Mission Assurance Requirements
Document Accompanies Every RFP
 Assessments are Accomplished Upfront
 Surveillance Plans are Defined and
Followed
 Product Acceptance/Delivery is Exhaustive
and is Unacceptable Without Objective
Evidence
 Early Recognition of Supplier
Development Requirements
 Manage the Complete Supply Chain
 Lessons Learned are Liberally
Incorporated

IPIC
IPICSQA
SQAProvides
ProvidesHigh
HighConfidence
Confidencein
inFielded
FieldedProduct
Product
14 Copyright 2005 Northrop Grumman Corporation