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
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Copyright 2005 Northrop Grumman Corporation
ICBMs – A continuing Success Story
1957
Atlas
1957
1959
1961
1964
1968
Thor
Titan
MM I
MM II
MM III
1950s
1960s
•Atlas 1st Launch (1957)
•Thor 1st Launch (1957)
•Titan 1st Launch (1959)
•MM I 1st Launch (1961)
•MM II 1st Launch (1964)
•MM III 1st Launch (1968)
A
Critical
National
Asset
1970s
•PK Go-Ahead (1972)
1983
PK
1989
SICBM
1980s
1990s
•PK 1st Launch (1983)
•SICBM Go-Ahead (1983)
•PKRG Go-Ahead (1986)
•SICBM 1st Launch (1989)
•REACT
•GRP
•PRP
•ICBM Prime Award (1997)
2000
MM III
SLE
2000+
•MMP
•PSRE
•SERV
•REACT SLEP
•ECS
•ISMP
•ICU
 Hold Targets at Risk
 Provide Deterrence Against Attack
 Rapid Receipt and Response to Emergency Action Messages
(EAMs)
 Flexible Response Against Our Enemies Should Deterrence Fail
In An Uncertain World ICBMs Continue To Be
Important To Our National Defense
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Copyright 2005 Northrop Grumman Corporation
Supplier Management
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Objectives
 No quality escapes to the field
 Quality is built-in, not
inspected-in
Results
 Over 3500 end items delivered
to field since 2002 with
essentially no quality issues
Key Features
Benefits
 Well established process to identify and
qualify new vendors
 Programs executed on plan with no
substandard parts or components
delivered to field
 Focus on developing and qualifying
vendors to meet our high standards
before production starts
 Understanding of our needs as a
customer and sound basis for
shared success
 Monitor suppliers, during design and
production, for successful corrective
actions addressing variances from plan
 Ensures timely awareness of
difficulties and provides time to
correct without impact to customer
 Multi-tier vendor audits and
assessments
 Reinforces commitment to quality
products throughout supply chain
 Suppliers evaluated for ability to
consistently produce quality products
 Vendor oversight approach adapted
to needs of supplier
Copyright 2005 Northrop Grumman Corporation
Process for Supplier Management
Role of Program Manager and Engineers - Production
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




Acquisition
Planning
Contract/
Subcontract
Awards






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
Physical
Configuration Audits
Critical Design
Review
Low Rate
Production
Full Rate
Production
Deliver Accepted Products
Weapon System
Integration
Testing
Role of Quality Engineers – Pre Award and Design
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
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
Production
Readiness Reviews
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)
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
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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
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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
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Copyright 2005 Northrop Grumman Corporation
Supplier Development
Supplier Monitoring
Sub
Tier
Quality
Survey
Current
Rating
Supplier A
1
Date
Y
G
Supplier B
2
Y
G
3
R
G
3
Y
G
Subcontractor
2
Y
G
3
Y
G
3
R
G
Major Compliance Issues
R
Mitigation
Rating
Comment
Y
Minor Compliance Issues
Mitigation Plan
ISO Compliant
G
Supplier Audit IAW ISO9000/AS9100
NGMS Audit
Points
6.0
7.0
7.3
7.4
7.5
7.6
8.0
8.3
8.4
8.5
N/A
Green
Yellow
Red
13
2
0
54
43
60
71.7%
Management Responsibility
10
6
1
63
43
68
63.2%
6
2
0
30
23
32
71.9%
32
44
72.7%
Resource Management
10
1
0
41
6
6
3
54
33
60
55.0%
Purchasing
11
3
3
56
42
68
61.8%
Production & Service Provision
15
1
2
60
50
72
69.4%
8
1
1
40
27
40
67.5%
16
1
2
71
52
76
68.4%
Control of Nonconforming Product
3
2
3
29
16
32
50.0%
Analysis of Data
3
0
0
12
9
12
75.0%
Improvement
7
2
3
44
28
48
58.3%
Foreign Object Elimination
0
0
0
0
0
17
0
1
72
66
72
91.7%
0
0
0
0
0
Product Realization
Design and Development
Control of Monitoring Measuring
Measurement, analysis and improvement
ESD Program
N/A
Supplier Site :
NGMS Certification
Audit Date
Total Possible
Points
5.0
Supplier Name :
Overview
Quality Management System
Prime 19160 Form 260
4.0
Section:
NGMS Audit
Points
Supplier Assessment and Certification
Revision: Initial Release
Date: March 10-11, 2004
Supplier SelfAssessment
Points
 Process Owner Reviews
 Failure Modes and Effects
Analysis (FMEA)
 Develop/Review Work
Instructions
 Define/Develop/Document
Critical Processes
 Assist in Obtaining ISO
Compliance
 Review and Verification
of Audit Results/Findings
Software
Total Points
554
Scores = Total Points / Total Available Points 90.5%
398
65.0%
N/A
N/A
612
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
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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
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Copyright 2005 Northrop Grumman Corporation
Supplier Surveillance
•Surveillance Includes Periodic Audits
Periodic Audits
Development
Production
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
F = Frequent
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S = Seldom
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
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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
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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
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Copyright 2005 Northrop Grumman Corporation