PQA Return to Green (RTG)
Strategy
17 July 2008
2
Objectives
Lockheed Martin Aeronautics Company
At the conclusion of the training, the participant should:
 Understand how the Return-To-Green (RTG) process compliments
the PQA strategy for managing Suppliers
 Understand the responsibilities of PQA and Supplier roles in
managing the RTG plan from Red back to Green
 Understand PQA management’s expectations for engaging a
Supplier
3
PQA Transition to Prevention
Lockheed Martin Aeronautics Company
PQA Strategy 2008
• Full delegation to supply base – end item final acceptance by Lockheed
Martin by exception
• Level of oversight will be determined based on data and the supplier’s
quality performance as measured by PQA’s new rating system
• More intense and focused oversight activities implemented at
suppliers with performance issues or identified as being at a high
probability of developing performance issues based on early warning
measure and on-site PQA Supplier Quality Engineer (SQE) knowledge
• Requires a formalized plan be developed for the supplier engagement
• Plan must include measurable milestones
• Implementation of Oregon Productivity Matrix (OPM) to measure
progress and sustainment of improvement activities and to provide early
warning signals of potential process and performance degradation
History proves when a joint focused effort is implemented to address
performance issues, sustained improved performance can be realized
4
PQA Strategy Change – 2008 Forward
Lockheed Martin Aeronautics Company
PERFORM PROCESS/QUALITY MANAGEMENT SYSTEM OVERSIGHT
Supplier Approval
& Control
The following SSP Matrices must be performed annually:
Contract Review Control of Purchases FOD
End Item Acceptance
Suppliers
•Quality System Approval
• 3’rd Party
Registered
• Partner Approval
• LM Site Survey
- 3 year intervals for QMS
re-assessment for
manufacturers
- 2 year intervals for QMS
re-assessment for
processors
• Supplier rating
• Quality Excellence Board
Baseline
Assessments
• Quality Program
Integration
• Performance
• FAI Engagement
• Return to Green
• Structured
Surveillance
If additional matrices Remainder of
are required the
SSP Matrices
supplier should be
over 2 year period
moved to Med or High
risk
Effective
LM Aero PQA and
Corrective
Programs
Action
First Article Planning
& Engagement
Remainder of
SSP Matrices
annually
Exempt – not
delegated
EIA
REJECT
ACCEPT
ACCEPT
OUTPUT End Item
Acceptance
INPUT
Supplier
Production
Process
To Stock
Or
Customer
Process Approvals
Special
Process
Sources
Full process checklist performed for each process approval level / specification and every
two years thereafter
Surveillance performed on at least one area within each discipline at the following frequency
Surveillance once every 90 days
Critical / High Volume Processors
Non-Critical / Low Volume Processors
Surveillance once every 180 days
SCORE
10
9
8
7
6
5
4
3
2
1
0
PERF.
SCORE
WEIGHT
VALUE
SUMMARY
GOAL
ACTUAL
HISTORY
Aug-99
Sep-99
Oct-99
Nov-99
Dec-99
Jan-00
Feb-00
Mar-00
Apr-00
May-00
Jun-00
Jul-00
SCHEDULE
CUM DEL MATERIAL
PROCESS
100.00%
100.00%
100.00%
99.90%
96.88%
96.88%
99.80%
93.75%
93.75%
99.70%
90.63%
90.63%
99.60%
87.50%
87.50%
99.50%
84.38%
84.38%
99.40%
81.25%
81.25%
99.30%
78.13%
78.13%
99.20%
75.00%
75.00%
99.10%
71.88%
71.88%
99.00%
68.75%
68.75%
107.00%
100.00%
100.00%
10
10
10
10
10
10
100
100
100
SCHEDULE
300
300
300
250
200
150
100
50
0
Performance Feedback & Assessment
350
350
305
305
200
300
300
300
300
300
300
300
350
350
350
350
350
350
350
350
350
350
350
350
RTV AGE
0
10
20
30
35
40
45
50
55
60
61
47
3
20
60
QUALITY
RTV QTY
0
2
3
4
5
6
7
8
9
10
11
3
8
10
80
QUALITY
FAR
0
2
4
6
8
10
12
14
16
18
20
3
8
5
40
ARRAY
12.00%
8.00%
4.00%
0.00%
-4.00%
-8.00%
-12.00%
-16.00%
-20.00%
-24.00%
-28.00%
-10.10%
4
10
40
YIELD
SCA
12.00%
8.00%
4.00%
0.00%
-4.00%
-8.00%
-12.00%
-16.00%
-20.00%
-24.00%
-28.00%
3.00%
7
10
70
YIELD
350
180
350
300
250
200
150
100
50
0
265
255
265
265
270
225
225
185
185
180
170
120
0
FPA
12.00%
8.00%
4.00%
0.00%
-4.00%
-8.00%
-12.00%
-16.00%
-20.00%
-24.00%
-28.00%
7.00%
8
15
120
350
230
350
300
300 300
300
250
300
300 200
300
300 150
300 100
300
300 50
300
0
300
0
230
230
240
230
240
240
230
230
230
230
230
230
350
350
350
350
350
350
350
350
350
350
350
350
COMMENTS
STRETCH GOAL
TARGET GOAL
NOTES:
TOTAL
STRETCH GOAL = 1000; TARGET GOAL = 700
710 = ACTUAL SCORE
1000
900
800
845
835
810
700 800
600 710
500 765
400 755
300 715
200 715
100 710
0
700
650
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
Purpose of RTG Process
• PQA has shifted its focus from managing all Suppliers
equally, to identifying those suppliers creating the
greatest quality impact on LM Aero operations and
focusing valuable PQA resources to manage them back to
health.
• It is the Supplier’s responsibility to get back to Green.
PQA’s role is to define the performance issue and to
monitor the supplier’s progress.
5
RTG Process Map
No
Yes
RTG not
required
Yes
Entranc
e
criteria
met?
Yes
Define performance
issues and jointly
develop RTG items
with Suppliers
Save RTG plan
to OAT HUD and
submit for RTG
review
Approved
by PQA,
Program
and MM
Revise
RTG plan
and
status ?
Monitor seller
progress on
actions
No
No
No
Exit
criteri
a met?
Yes
Reduce oversight level
to “Watch List”
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Supplier Defines Action Items
• All Action Items need to be clear, concise and SMART.
– Specific
– Measurable (objective evidence)
– Agreed to (between the supplier and SQE)
– Realistic
– Time bound- Timeframes and deadlines are stated and specific.
• Clear statement of expectations: “What needs to be improved?”
• Any/All action items shall have assigned owner(s) and estimated
completion date.
7
Communicate with supplier
• As the RTG plan is created, evaluated and revised with
new status, the SQE is expected to communicate with the
supplier
– In addition to the RTG action items, the SQE should
communicate and collaborate with the supplier on all
specific findings, corrective actions, supporting tasks,
etc.
– The collaborative and coordinated efforts of the SQE
and supplier are believed to provide the greatest value
in the RTG process.
8
Monitor supplier Progress/Actions
• As the supplier meets its action items and deliverables,
the SQE shall monitor the suppliers progress at the
minimum monthly to determine if the supplier has met the
exit criteria.
• If the action item is not effective and does not meet the
original intent, SQE needs to re-evaluate the suppliers
RTG plan and update accordingly.
9
Revise RTG Plan & Status
• The RTG action items shall be revised to reflect the latest
status.
– The minimum requirement is that the SQE shall update
the RTG plan monthly.
– SQE’s are encouraged to update the plan more
frequently.
• SQE’s ask and verify if the supplier:
– On track to completion of action items ?
– Needs to revise their action items or completion date?
10
Exit Criteria Met?
• When the supplier is complete in every action item, the
SQE shall present the supplier’s case to the PQA chain of
command to request the supplier to be returned to Green
status.
• If supplier is Red in any action item, then it shall remain
under RTG management oversight level.
*Note: The RTG exit criteria are intentionally stringent. Once a supplier dips
into Red, it must achieve a higher level of performance to get out of the RTG
process. The expected result of the RTG process is significant, sustained
improvement in supplier performance.
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RTG Gantt Chart Example- Top Level
Export to excel
High Quality Machine Shop
Clickable area to view
Detailed Gantt Chart
High Quality
Machine Shop
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RTG Gantt Chart Example- Second Level
High Quality Machine shop
This is the group of actions. All actions under the group
must be scheduled to be complete on or before the group’s end
date.
Hyperlinked items that go to the view action item screen.
Milestones are represented by a
diamond.
Action items with dependencies forming a critical path.
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