Quality &

Supplier
Management

March 2008

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

Outline

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

1 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 1980s 1990s 2000+

•PK Go-Ahead (1972) •PK 1st Launch (1983) •REACT •MMP
•Atlas 1st Launch (1957) •MM I 1st Launch (1961) •SICBM Go-Ahead (1983) •GRP
•Thor 1st Launch (1957) •MM II 1st Launch (1964) •PSRE
•PKRG Go-Ahead (1986) •PRP •SERV
•Titan 1st Launch (1959) •MM III 1st Launch (1968)
•SICBM 1st Launch (1989) •ICBM Prime Award (1997) •REACT SLEP
•ECS
•ISMP
•ICU

A  Hold Targets at Risk

Critical  Provide Deterrence Against Attack
National  Rapid Receipt and Response to Emergency Action Messages
Asset (EAMs)
 Flexible Response Against Our Enemies Should Deterrence Fail
In An Uncertain World ICBMs Continue To Be
Important To Our National Defense

2 Copyright 2005 Northrop Grumman Corporation

 Supplier Management
Objectives
Results
Key Features
 Well established process to identify and
qualify new vendors
 Focus on developing and qualifying
vendors to meet our high standards
before production starts
 Monitor suppliers, during design and
production, for successful corrective
actions addressing variances from plan
 Multi-tier vendor audits and
assessments
 Suppliers evaluated for ability to
consistently produce quality products
13
 No quality escapes to the field
 Quality is built-in, not
inspected-in
 Over 3500 end items delivered
to field since 2002 with
essentially no quality issues
Benefits
 Programs executed on plan with no
substandard parts or components
delivered to field
 Understanding of our needs as a
customer and sound basis for
shared success
 Ensures timely awareness of
difficulties and provides time to
correct without impact to customer
 Reinforces commitment to quality
products throughout supply chain
 Vendor oversight approach adapted
to needs of supplier
Copyright 2005 Northrop Grumman Corporation
 Process for Supplier Management
Role of Program Manager and Engineers – Pre Award and
Design
 Conduct program reviews monthly
Cost, Schedule, Technical, Risk, and Corrective Actions to
Variances
 Conduct independent technical review for design reviews/audits
 Establish Weapon System Integration test procedures
 Monitor progress toward production readiness
Role of Program Manager and Engineers - Production
 Conduct program reviews every 6-8 weeks
Cost, Schedule, Technical, Risk and Corrective Actions
to Variances
 Approve Class I changes
Review Class II changes
 Attend selected on-site joint reviews of sub-tier suppliers

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

24 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

5 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

6 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

7 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

3
Y

Y
G

Critical Processes 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 :

Date: March 10-11, 2004 Supplier Site :

 Review and Verification

Audit Date

Total Possible
Supplier Self-
Assessment

NGMS Audit

NGMS Audit
Points

Points

Points

Points
Prime 19160 Form 260 Green Yellow Red

of Audit Results/Findings 4.0

5.0

6.0
Quality Management System
Management Responsibility
Resource Management
13
10
6
2
6
2
0
1
0
54
63
30
43
43
23
60
68
32
71.7%
63.2%
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

8 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

9 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

10 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

11 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

12 Copyright 2005 Northrop Grumman Corporation

 Supplier Management Works at IPIC
•
•
•• • •• ••• ••
•• • • ••
•••
• • •
••
~ 650 Prime WAWF Sell-offs per
year (multiple items & 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 SQA Provides High Confidence in Fielded Product

13 Copyright 2005 Northrop Grumman Corporation