LOCKHEED MARTIN CORPORATION
General Administration, Source Inspection,
Surveillance and Surveys
REV G MANUAL
1
Foreword
This manual contains the source inspection and survey instructions for the Supplier Quality Field Engineers of
Lockheed Martin Corporation (LMC). Lockheed Martin Corporation representatives use these instructions in the
inspection and procurement of finished products, goods, and services from suppliers and subcontractors.
This manual presents a cost-effective Quality Program developed to satisfy existing and future requirements. This
manual is a compliant document and therefore should be followed in its entirety. Control of the manual and its
maintenance are the responsibility of Lockheed Martin Corporation, , Supply Chain Services.
_________________________________
Deirdre Stanford
Manager, Supply Chain Services
2
Configuration Control Log
This log will ensure that there is a controlled record of revisions made to this manual.
Date
Revision
Note
New manual for SCS Replaces SSSM Rev. H
Management
02/11/05
0
9/7/05
A
01/27/06
B
See Attachment 1
D. Goerke
01/08/07
C Interim
D. Goerke
6/06/07
D
Reduced to support immediate
SCS needs for source inspection
activities only
Finalized reduction / separation
and procedure enhancements
10/10/11
E
D. Stanford
02/13/2012
F
05/15/2013
G
Updated to reflect new P2P
process and replace TS with
SQFE.
Added section for “Counterfeit
Parts”
Added reference to the SQFE
Source Inspection Checklist.
Added verbiage to Section 4.3.5
Updated Section 4.0 – Surveys
Added verbiage on Information
Security Requirements
Initial
D. Goerke
D. Goerke
D. Goerke
D. Stanford
D. Stanford
3
Mission Success
We at the Lockheed Martin Corporation (LMC) have made a firm commitment to our customers to achieve 100%
Mission Success. Mission Success, means providing the highest-quality, lowest-priced products which meet our
customers’ expectations. As part of this effort, Supply Chain Services is moving beyond the traditional quality
organization which focused on strict compliance with specifications. We have adopted a proactive philosophy based
on prevention, so that in addition to compliance, we now emphasize continuous improvement of processes.
In an increasingly competitive environment, it is necessary to maintain cooperative relationships with our suppliers.
We are reducing our supplier base to high-quality, low-cost team members. As team leaders, we will treat suppliers
as extensions of Lockheed Martin Corporation. This includes assisting them to improve and control manufacturing
processes.
This Manual is just one tool in our efforts to assure Mission Success. With dedication and teamwork, we will
accomplish this goal and maintain our competitiveness.
Supply Chain Services Mission Statement
Provide highly skilled resources, on a global basis, to satisfy customer demands for a broad range of Supply Chain
Services at the lowest possible cost. Supported with a commitment to:
•
•
•
•
•
•
Mission Success and world class excellence.
Providing an evolving portfolio of services to best meet diverse customer needs.
Driving efficiencies through the transition of “non-core” business activities to expert third-party services.
Continuing development of a motivated, highly skilled work force with an unyielding commitment to
integrity and compliance.
Promoting collaborative communications among customers, field personnel and the supply base
Cost effective, value-added processes that augment customer capabilities.
Acronyms
The following is the key to the acronyms used in this manual:
AQL
AR
ATE
ATP
B2B
C of C
C/A
CAR
CEI
CFP
CHA
CPI
CPS
CSI
CSP
DEF
DOD
DR
ESD
FQR
FQSM
GFP
IAR
Acceptable Quality Limit
As Required
Automatic Test Equipment
Acceptance Test Plan
Business 2 Business
Certificate of Compliance
Corrective Action
Corrective Action Request
Contract End Item
Customer Furnished Property
Characteristic Number
Continuous Process Improvement
Consolidated Purchasing System
Customer Source Inspection
Certified Supplier Program
Defect Code
Department Of Defense
Discrepancy Report
Electrostatic Discharge
Field Quality Records
Field Quality Service Management
Government Furnished Property
Incoming Appraisal Requirements
IAW
LDC
LM CC
LMC
LVN
MAC
MR
MRB
NDA
P2P
PCR
PIA
PO
PQA
QA
QE
QSC
RTV
SCAR
SCS
SCSM
SOW
SPC
In Accordance With
Lot Date Code
Lockheed Martin Command Center
Lockheed Martin Corporation
Launch Validation Number
Material Acquisition Center
Materials Request
Material Review Board
Non Disclosure Agreement
Web Based System – Procure to Pay
Passed Characteristic Report
Proprietary Information Agreement
Purchase Order
Procurement Quality Assurance
Quality Assurance
Quality Engineer
Quality Services Company
Return To Vendor
Supplier Corrective Action Request
Supply Chain Services
Supply Chain Service Manual
Statement Of Work
Statistical Process Control
4
SPA
SQA
SQAE
SQFE
SQR
SQS
SSP
SVR
TDP
SCM
Special Process Approvals
Supplier Quality Assurance
Senior Quality Assurance Engineer
Supplier Quality Field Engineer
Supplier Quality Report
Supplier Quality System
Supplier Sourcing Procedures
Supplier Visit Report
Technical Data Package
Supply Chain Management
©2009 Lockheed Martin Corporation. All rights reserved.
Supply Chain Services Manual
Definitions
Physical Configuration Audit
(PCA)
The purchase order is between Lockheed Martin Corporation and the supplier
and forms a legal document for delivery schedules, configuration
requirements, drawing requirements, special processes if required, shipping
information, and legal terms. Purchase order amendment changes serve to
document changes within the P.O. and may require additional configuration
changes, technical information requirement updates, and revised delivery
schedules.
A technical examination of a designated configuration item to verify that the
configuration item “As Built” conforms to the technical documentation that
defines the configuration item.
Attribute
A characteristic or property that is appraised in terms of whether it does or
does not exist with respect to a given requirement.
Batch
A collection of units of product bearing identification and treated as a unique
entity from which a sample is to be drawn and inspected to determine
conformance with the acceptability criteria. Synonymous with Lot.
Business
A Lockheed Martin manufacturing/production facility formerly identified as a
“Site.”
Business Point of Contact
(POC)
SCS's primary administrative contact at the Lockheed Martin Corporation
business. Alternate contact for any issues that cannot be resolved through the
responsible QE.
Certificate of Compliance
A supplier's written statement, when authorized by contract, certifying that
supplies or services comply with contract requirements.
(C of C)
Characteristic
A physical, chemical, visual, functional or any other identifiable property of a
product or material.
Contingent Material
Material that does not fully meet one or more of the purchase order
requirements, but is released from the supplier at the Quality Engineer’s
request in writing for review and disposition.
Contingent Release
Procedure used by the Quality Engineer to authorize the release, from the
supplier, of material that does not fully meet one or more of the purchase order
requirements.
Counterfeit Part
Any item sold to Lockheed Martin that is advertently/inadvertently
misrepresented as something else.
Defect
Any nonconformance to specified requirements.
Defective
A unit of product that contains one or more defects.
Deviation
Written authorization, granted prior to the manufacture of an item, to depart
from a particular performance or design requirement of a contract,
specification, or referenced document for a specific number of units and/or a
specific period of time.
End Item Data Package
Documents that are required to be delivered to Lockheed Martin Corporation
including test results, C of Cs, inspection results, completed travelers, etc.
(EIDP)
©2009 Lockheed Martin Corporation. All rights reserved.
Supply Chain Services Manual
Field Quality Service
Management (FQSM)
A secure, web-based system that provides suppliers, SQFE and Lockheed
Martin administration personnel with an application for requesting source
inspection, scheduling and tracking activities.
The Foreign Corrupt Practices
Act (FCPA)
A United States law that prohibits corruptly giving, offering or promising
anything of value to foreign officials or foreign political parties, officials or
candidates, for the purpose of influencing them to misuse their official
capacity to obtain, keep, or direct business or to gain any improper advantage.
Incoming Appraisal
Requirements (IAR)
Document created by the QE and controlled by SQS that provides work
instructions for SQFE surveillance activities.
In-Process Inspection
Inspection that is performed during the manufacturing or repair cycle in an
effort to prevent defects from occurring and to inspect the characteristics and
attributes that cannot be fully inspected at final inspection.
Inspection System
Requirements
A requirement to establish and maintain an inspection system in accordance
with specifications. These guidelines are contained in those contracts that
include technical requirements, such as a need to control in-process, as well as
final, end-item inspection.
ITAR
International Traffic in Arms Regulations (ITAR) is a set of United States
government regulations that control the export and import of defense-related
articles and services on the United States Munitions List
Lockheed Martin Command
Center
(LM CC)
A Supply Chain Services operation that performs administration, scheduling,
training, reporting and QSC-Lockheed Martin Corporation business-supplierSQFE liaison activities.
Lot
A collection of product bearing identification and treated as a unique entity
from which a sample is to be drawn and inspected to determine conformance
with the acceptability criteria. Synonymous with batch.
Lot Formation
The procedure of collecting, segregating, or delineating production units into
homogeneous identifiable groups according to type, grade, class, size,
composition, or condition of manufacture.
Lot Size
The number of units of product in a lot.
Material Review Board (MRB)
The formal Contractor-Customer Board established for the purpose of review,
evaluation, and disposition of specific non-conforming supplies or services;
and for assuring the initiation and accomplishment of Corrective Action to
preclude recurrence.
Measuring and Test Equipment
All devices used to measure, gauge, test, inspect, diagnose, or otherwise
examine materials, supplies, and equipment to determine compliance with
technical requirements.
Nonconformance
A product’s feature or characteristic that fails to meet specified requirements.
Objective Quality Evidence
Any statement of fact, either quantitative or qualitative, pertaining to the
quality of a product or service, based on observations, measurements, or tests
that can be verified.
One Hundred Percent Inspection Inspection in which specified characteristics of each unit of product are
examined or tested to determine conformance with requirements.
P2P
Procure to Pay Web based System
Qualification
The process of demonstrating by examining and testing that a product is
capable of fulfilling the specifications required.
©2009 Lockheed Martin Corporation. All rights reserved.
Supply Chain Services Manual
Quality Assurance
Representative
(QAR)
The individual directly charged with performance of the Government
procurement quality assurance at a contractor facility.
Quality Engineer (QE)
Lockheed Martin Corporation employee who is responsible for the quality of
purchased material. Primary TS contact with the Lockheed Martin
Corporation business.
Quality Program Requirement
Requirement for the establishment and maintenance of a quality program in
accordance with the applicable specification.
Random Sample
A sample selected in such a way that each unit of the population has an equal
chance of being selected.
Reduced Inspection
MIL-STD-105 switching rule used to decrease the level of inspection the
preceding 10 lots or batches have been on normal inspection and have all been
accepted on original inspection and production is at a steady rate.
Resubmitted Lot
A previously submitted lot that is being presented for re-evaluation after
screening, rework or standard repair.
Sample
One or more units of product drawn from a lot or batch, the units of the
sample being selected at random without regard to their quality.
Sample Size
The number of units of product in the sample selected for inspection as
specified in the IAR/TDP.
Sampling Plan
The sample size and the associated acceptance and rejection criteria to be used
in examination.
Screening
100% inspection of a lot to remove all nonconforming products.
Senior Quality Assurance
Engineer (SQAE)
A Lockheed Martin Supply Chain Service employee responsible for
implementing, monitoring, and evaluating the Supply Chain Services process.
Technical and field resource for suppliers, SQFE’S, and Lockheed Martin
Corporation businesses. Member of the Supply Chain Services Management
Team.
Standard Repair Procedure
(SRP)
A documented, customer approved technique for repair of a type of
nonconformance under defined conditions.
Supply Chain Services (SCS)
A customer based organization designed to support the growing and diverse
requirements of our multiple Lockheed Martin business units.
Supply Chain Services
Management
Director, Supplier Quality Assurance, Supply Chain Services Staff Engineer
and Program Manager, Lockheed Martin Command Center, Field Material
Engineers Senior Quality Assurance Engineer (SQAE)
Supplier Quality Field Engineer
An employee or contractor of the Quality Services Company that represents
Lockheed Martin Corporation at suppliers and subcontractors.
Technical Data Package (TDP)
Document created by the QE that provides work instructions for SQFE’s
surveillance activities.
Technical Specialist
(TS)
An employee or contractor of the Quality Services Company that represents
Lockheed Martin Corporation at suppliers and subcontractors (sometimes
referred to as Project Specialists (PS).
Tightened Inspection
MIL-STD-105 switching rule used to increase the level of inspection due to
the discovery of nonconformance.
©2009 Lockheed Martin Corporation. All rights reserved.
Supply Chain Services Manual
Waiver
Documented customer concurrence to accept product that is found to depart
from specified requirements, but is considered suitable for use “as-is” or after
repair by an approved method.
Work Instructions
Generic term for document created by the Lockheed Martin Corporation
business that provides work directions for TS activities. Include Incoming
Appraisal Requirements and Technical Data Package.
1.0 Supply Chain Services (SCS) Overview
1.1
Overview
Supply Chain Services (SCS) is a Lockheed Martin organization designed to provide personnel to the
corporations’ businesses to perform a variety of tasks. These tasks include Supplier Quality Management
roles, such as source inspection, expediting, supplier management, auditing, writing work instructions,
process surveillance, and quality engineering. The personnel to perform these tasks are procured through
purchase orders with Quality Service Companies (QSC) – non-Lockheed Martin Corporation businesses
that provide quality personnel services. The personnel utilized through this arrangement are known as
Supplier Quality Field Engineers (SQFE’s).
SCS acts as the liaison amongst the QSC, Lockheed Martin Corporation Business, and the SQFE. This
arrangement enables SCS to leverage resources to provide cost-effective, comprehensive services to the
Lockheed Martin Corporation businesses. SCS’s centralized role allows consolidation of activity amongst
Lockheed Martin Corporation business units, sharing of resources, a single point of contact for Lockheed
Martin suppliers, and maximization of benefits from QSC contracts.
1.2
Roles and Responsibilities
The following section provides a brief summary of the roles and responsibilities of the various parties
involved in SCS services.
1.2.1
Supply Chain Services (SCS) Command Center
The Command Center is a comprehensive customer service center that is responsible for the following:
•
Coordinating QSC personnel to perform activities on behalf of Lockheed Martin Corporation
business units.
•
Acting as a liaison between suppliers, SQFE’s, QSC’s, and Lockheed Martin Corporation
personnel.
•
Coordinating candidate selection, training, and field assignments across Lockheed Martin
Corporation businesses for cost-efficiency.
•
Communicating with suppliers to process requests for services, validate supplier requests, and
facilitate material shipment.
•
Authorizing and coordinating Supplier Quality Field Engineers activity.
•
Tracking detailed activity information for comprehensive charging and reporting.
•
Managing QSC services
1.2.2
Quality Services Company (QSC)
The QSC is authorized and responsible to assure that current forms are distributed to all active Supplier
Quality Field Engineers. The QSC’s are responsible for the following:
©2009 Lockheed Martin Corporation. All rights reserved.
Supply Chain Services Manual
•
Recruiting and qualifying Supplier Quality Field Engineers to SCS standards.
•
Employing/contracting Supplier Quality Field Engineers to provide services to SCS.
•
Managing Supplier Quality Field Engineers, including compensation, evaluation, and issue
resolution.
•
Validating Supplier Quality Field Engineers, time and expense submittals.
•
Monitoring QSC and Supplier Quality Field Engineers performance and providing analysis to
SCS.
•
Ensuring that QSC procedures and structure are developed to meet SCS contractual requirements.
•
Working with SCS to continually improve processes and develop services to effectively meet the
needs of SCS’s Lockheed Martin Business Unit clientele.
1.2.3
Business Point of Contact (POC)
The Business POC is responsible to distribute all forms and form revisions to internal business manual
holders.
1.2.4
Supplier Quality Field Engineers
Supplier Quality Field Engineers are employees/contractors of the QSC. Supplier Quality Field Engineers
provide quality services to Lockheed Martin SCS as authorized by the SCS Command Center. Supplier
Quality Field Engineers are responsible for the following:
•
Working through the SCS Command Center to coordinate activity
•
Conducting activity on behalf of Lockheed Martin Business Units as directed by the SCS
Command Center
•
Completing all activity in accordance with SCS and Lockheed Martin Business Unit procedures
•
Providing documentation of activity, as required, and maintaining activity records as required
•
Completing detailed and accurate time and expense reporting, as required by the QSC
•
Communicating activity status to SCS and Lockheed Martin Business Unit personnel
•
Identifying process improvement opportunities to appropriate personnel
•
Submitting an Expense Authorization Form prior to commencing activity, including estimated
expenses for travel time, mileage, lodging, or other transportation expense, such as minimum
hours or overtime.
1.2.5
Information Security- Policy and Requirements
Lockheed Martin considers Information Security vital to this Nation’s interest and to the company for
obvious reasons of competition. It is your responsibility to safeguard Lockheed Martin information and
access to it. You may be designated to receive a Lockheed Martin Information System account which may
include; an UserID, e-mail account and various LM Data systems access to perform your duties in support
of one or more of Lockheed Martin business sites or activities.
•
The SQFE shall not allow anyone to use their personal ID badge
•
The SQFE shall not allow anyone to use their personal secure Token
•
The SQFE shall not allow anyone to use their LM E-mail account while they are logged-in
©2009 Lockheed Martin Corporation. All rights reserved.
Supply Chain Services Manual
•
The SQFE shall refrain from using their personal E-mail account to send LM data, unless
otherwise authorized to do so or due to system access issues (only to send notice of status.)
•
The SQFE shall not use their LM E-mail accounts to send non-work related data or materials
including; jokes, chain-e-mails, political talking points, gossip or hate-mail, etc.
•
The SQFE shall report any issues with E-mail or System access immediately to the SCS - POC.
•
The SQFE shall report a lost or stolen ID badge, Token or personal computer immediately to the
SCS - POC.
•
The SQFE shall not transmit any LM information via e-mails containing data related to LM
business to any party not authorized to (Authorized parties includes; Suppliers, LM employees and
Authorized partners or customers.) receive such data and information.
When requested to change your password for your LM NT account, please go to the LM People site outside
of the LM Passage environment
•
In the upper right-hand side of the screen/page under your name will be a “Change Password”
link, click and follow the prompts.
When requested to change your password for your other LMC site specific account(s), please go to the
designated web-site as directed or in the LM Passage environment, then follow the direction for changing
your password for the system will also safeguard the new password.
Remember to keep your passwords and account IDs secure at all time and only give vital information to the
authorized Help-desk or System Administrators only as requested.
Upon termination of your services to LM SCS, you will be requested to surrender your Badge, Secured
Token ID and to refrain from continuing to access any LM Information system, your Badge and Secured
Token ID shall be returned to your QSC for return to LM-SCS.
©2009 Lockheed Martin Corporation. All rights reserved.
Supply Chain Services Manual
2.0
Ethics and Standards of Business Conduct
This Section Contains…
•
An overview of Lockheed Martin’s Ethics Policies
•
Where to find Additional Information on Lockheed Martin Corporation’s Ethics Policies
•
How to Report an Ethics Concern
•
Guidelines for Visiting Lockheed Martin Corporation Suppliers
2.1 The Lockheed Martin Corporation Ethics Principles
Be Accountable
Setting high standards of performance for self and others; assuming responsibility and accountability for
successfully completing assignments or tasks; self-imposing standards of excellence rather than having
standards imposed.
Key Actions
Sets Standards for Excellence—Establishes criteria and/or work procedures to achieve a high level
of quality, productivity, or service.
Ensures High Quality—Dedicates required time and energy to assignments or tasks to ensure that no
aspect of the work is neglected; works to overcome obstacles to completing tasks or assignments.
Takes Responsibility—Accepts responsibility for outcomes (positive or negative) of one’s work;
admits mistakes and refocuses efforts when appropriate.
Be Accountable - Representative Examples
•
•
•
2.2
Creates a high-performance work ethic among the workforce and reinforces a strong results
orientation in others.
Maintains an intense commitment to excellence.
Demonstrates a passion for results and perseveres to work through obstacles in spite of chaos and
distractions.
Learning Lockheed Martin Corporation’s Ethics Policies
Prior to beginning activity with Supply Chain Services, SQFE’s will be issued the most recent version of
Lockheed Martin Corporation’s Ethics guide, “Setting the Standard: Code of Ethics and Business
Conduct.” The SQFE must read the booklet completely and ensure that all of the principles and
expectations outlined are clearly understood. The designated SCS trainer will review the contents of the
book with the SQFE during the initial training session. Once the SQFE fully understands and accepts the
principles outlined, he/she must sign the acknowledgment card at the end of the booklet and mail it to the
Quality Service Company (QSC) representative.
Lockheed Martin Corporation vigorously enforces its ethics policies and expects its representatives, such as
SQFE’s to do the same. By applying the principles outlined in the booklet, anyone will be able to make
©2009 Lockheed Martin Corporation. All rights reserved.
Supply Chain Services Manual
personal ethical decisions based on his/her individual conduct as well as evaluating the conduct of others
engaged in Lockheed Martin Corporation business.
When in doubt about whether an action will violate
Lockheed Martin Corporation Ethics policies, ask
yourself….
•
Are my actions legal?
•
Am I being fair and honest?
•
Will my action stand the test of time?
•
How will I feel about myself afterwards?
•
How would it look in the newspaper?
•
Will I sleep soundly tonight?
•
What would I tell my child to do?
•
How would I feel if my family, friends, and neighbors knew what I was
doing?
2.3 Reporting Ethics Concerns
If ever in doubt about the right thing to do, contact SCS or your QSC management for guidance. All
personnel are expected to report any ethics concerns and are encouraged to direct concerns to SCS or QSC
management first. The concern will be reviewed and addressed by management or directed to the
Lockheed Martin Corporation Ethics Office, if appropriate. If desired, you may communicate directly to
Lockheed Martin Corporation’s Office of Ethics and Business Conduct, using one of the confidential
means of communication listed below. Whatever reporting method is utilized, the communication will be
protected to the greatest extent possible. Reporting may be anonymous. Concerns will be addressed
seriously and the requester will be informed of the outcome of any investigation. There is never a penalty
for raising ethics concerns.
Lockheed Martin Corp.
SCS Command Center
6000 Midlantic Drive
Floor 7
Mt. Laurel, NJ 08054
1-800-932-4951
856-787-3045 (fax)
scssupport.fc-es@lmco.com
services.cfq@lmco.com
Office of Ethics and Business Conduct
Lockheed Martin Corp.
301 N. Westlake Blvd.
Suite 200
Westlake Village, CA 91362
800-LM-ETHICS
(301) 897-6442 (fax)
800-441-7457 (Phone for Hearing or Speech
Impaired)
corporate.ethics@lmco.com
©2009 Lockheed Martin Corporation. All rights reserved.
Supply Chain Services Manual
2.4 Export Controls, FCPA and ITAR (SQFE’S) Responsibility
All export questions should be raised prior to conducting any questionable activity. The Lockheed Martin
Corporation Business Unit or the Quality Service Company will provide information on whether the
activity/data in question is covered by export regulations. If you believe an activity assigned by a
Lockheed Martin Corporation Business Unit involves a U.S. export, you should contact Supply Chain
Services or your Quality Service Company to discuss the situation.
You should keep records indicating the date of the discussion, specific instructions provided by the
Lockheed Martin Corporation Business Unit or your Quality Service Company, the name of the contact
providing the directions, and any other relevant information. If the activity is deemed to involve an export,
it is also advisable to request and review a copy of the relevant portions of the export authorization, to
ensure the parameters of the authorization are understood.
If a possible export is discovered after the activity has taken place, you should contact the Lockheed Martin
Corporation Business Unit or your Quality Service Company immediately and provide details of the
potential export situation. The Lockheed Martin Corporation Business Unit and the Quality Service
Company will investigate the circumstances and determine if an export occurred and determine any further
action required to ensure compliance to U.S. export regulations. Export concerns may also be addressed
through the Ethics and Compliance process as outlined in Section 2.3 paragraph 1.
The Foreign Corrupt Practices Act (FCPA) is a United States law that prohibits corruptly giving, offering
or promising anything of value to foreign officials or foreign political parties, officials or candidates, for
the purpose of influencing them to misuse their official capacity to obtain, keep, or direct business or to
gain any improper advantage. In addition, the FCPA prohibits knowingly falsifying a company’s books and
records or knowingly circumventing or failing to implement accounting controls. Employees involved in
international operations must be familiar with the FCPA and with similar laws that govern our operations in
other countries in which we do business.
The International Traffic in Arms Regulations (ITAR) is a United States law that regulates the international
transfers of equipment or technology that may contain prior approval, licensing, and reporting
requirements. Employees/SQFE’s involved in international operations must also be familiar with the ITAR.
Additionally, it is illegal to enter into an agreement refusing to deal with potential or actual customers or
suppliers, or engaging in or supporting restrictive international trade practices or boycotts.
2.5 Work Place Safety
Part of Lockheed Martin Corporation’s standard of business conduct includes providing a drug-free, safe,
and healthy work environment. SQFE’s are responsible for compliance with environmental, health, and
safety laws and regulations. Report immediately to the appropriate supplier and/or Lockheed Martin
Corporation any accident or injury sustained on the job, or any environmental or safety concern you have.
The SQFE should also contact the Command Center.
The SQFE must abide by all supplier security and safety procedures, and must inquire about security and
safety procedures when visiting suppliers. If the supplier’s safety procedures seem inadequate, you should
follow industry best practices.
2.6 Zero Tolerance
An additional “Code of Conduct” is Lockheed Martin Corporation’s’s commitment to Zero Tolerance.
Lockheed Martin Corporation stands strong that there is zero tolerance for confirmed instances of
workplace violence. Such acts or behaviors that involve employees, suppliers, customers and/or field
representatives are reported immediately and investigated. As an SQFE, it is your responsibility to
represent Lockheed Martin Corporation professionally at our supply base. If there is a report made in
regards to workplace violence, Lockheed Martin Corporation will perform a thorough investigation of all
acts or threats. Incidents can result in suspension or removal of a Lockheed Martin Corporation employee;
if a SQFE is involved, it could include removal from supporting the Lockheed Martin Corporation
©2009 Lockheed Martin Corporation. All rights reserved.
Supply Chain Services Manual
Program. It is your responsibility to immediately report incidents of threatening or violent behavior to your
QSC or the SCS Command Center.
2.7 Guidelines for Visiting Lockheed Martin Corporation Suppliers
As a representative of Lockheed Martin Corporation, an SQFE must conduct him/herself in a professional
and ethical matter at all times. When visiting Lockheed Martin Corporation suppliers, it is important to
follow all supplier guidelines for access to the facility, such as:
•
•
Always calling the supplier in advance to make an appointment to visit the facility and to discuss
the planned activity with the supplier representative before beginning work and request any
required documentation or materials. You must use the web based internet portal to confirm
the assignment date of the activity.
•
Inquiring and resolving non-disclosure (NDA or PIA) issues before heading to the supplier’s
facility
•
Keeping your appointments and being prompt (call ahead if you are running late or must change
plans).
Presenting your Lockheed Martin Corporation business card/badge provided by your
QSC. This identifies you as Lockheed Martin Corporation’s representative at the
supplier.
•
Ensuring the Supplier visitor report (SVR) is in hand prior to visiting the supplier (as required by
Lockheed Martin Business Unit). Signing out of the facility after you have completed the activity
and ensuring the supplier signs the SVR form (if mandated by the Lockheed Martin Business
Unit).
•
Following the supplier’s procedure for accessing the facility – enter through the main door, sign
the register, communicate your planned activity with the supplier’s representative, and only visit
areas designated as appropriate by the supplier representative.
•
Completing your business in an efficient and effective manner.
•
Maintaining the confidentiality of any information you may have access to at the supplier’s
facility.
•
Contacting the Command Center or Lockheed Martin Business Unit to discuss the activity, if
additional information or clarification is needed.
•
Provide a disposition of the activity to the supplier representative when your work is complete.
•
Always sign in and out at the supplier’s facility as required by the supplier.
Summary
•
Read Setting the Standard: Code of Ethics and Business Conduct
•
Sign and return the acknowledgment card to your respective QSC
•
Report any ethics or safety concerns
•
Remember: Reporting is confidential and there is never a penalty for raising a concern
©2009 Lockheed Martin Corporation. All rights reserved.
Supply Chain Services Manual
3.0 Source Inspection
3.1
Roles and Responsibilities
The following section provides a brief summary of the roles and responsibilities involved with Source
Inspections (in addition to the responsibilities listed in the prior sections of this document).
3.1.1 Supply Chain Services (SCS) Command Center
LM CC responsibilities include:
• Selecting a SQFE for the activity, and coordinate the required logistics including additional
training if required.
• Communicating the requirements of the assignment to the SQFE and manage the activities
assigned.
• Providing the operational authorizations for expenses and acceptance authority as allowed.
• Ensuring work instructions are available for source inspections.
3.1.2 Supplier Quality Field Engineer (SQFE)
The SQFE’s responsibilities include:
• Arranging the activity at the supplier and, if there is any delay, reporting the revised schedule to
the LM CC.
• Using the LMC web portal to schedule the source date and to document the source results.
• Evaluating any travel cost associated with the activity, and obtain pre- authorization if required
prior to incurring any expense, using the expense authorization form contained in this manual.
Typically, assignments going a short distance do not require a mileage pre-expense authorization –
check with your QSC for compliance.
• Answering with clear, concise decisions concerning availability for assignments when responding
to a call from the LM CC.
• Informing the LM CC of availability for requested activity within 24 hours of notification by the
LM CC. Acceptance of an assignment indicates that the activity will be performed on or before the
requested date. If the scheduled date changes, the SQFE must notify the LM CC and change the
date in the LMC web portal
• Ensuring all documentation is properly filled out and sent to appropriate personnel.
3.2 Performing the Source Inspection
It is important to ensure that the documentation used is controlled and up to date. If unsure of the current
revision of the Purchase Order, drawing, or work instruction, contact the Command Center or Lockheed
Martin Business Unit for assistance. In either case, the SQFE is expected to review test data, first article
inspection data, certificates of compliance, sub-tier supplier Lockheed Martin Corporation approval status,
approved source affidavits, and other relevant documentation as required by the Lockheed Martin
Corporation Purchase Order, drawing, or work instruction. This data may or may not be required to be
included in the product shipment documentation, as detailed in the Lockheed Martin Corporation Purchase
Order.
The SQFE must verify the following:
• All Purchase Order reports have been reviewed.
• Supplier is compliant to each and every PO Note listed.
• The product is built to the revision of all documents as listed in the PO, such as Lockheed Martin
Corporation drawings statement of work and/or per Lockheed Martin Business Unit requirements.
•
•
•
•
•
Required in-process appraisals have been accepted by Customer Source Inspection and
Government Source Inspection. (Government source inspection is directed by a Letter of
Delegation)
Equipment used for appraisals is calibrated and has adequate resolution (smallest increment the
instrument can measure) for the measurement being made. Calibrated equipment must have either
a label demonstrating calibration dates or an assigned number traceable to the supplier’s
calibration procedure.
All required documentation is complete and ready for shipment with the material.
If the purchase order requires that the supplier submit the FAI results, ensure that a copy of the
documentation is included with the shipment.
The drawing and/or purchase order may require the supplier to purchase material or special
process services from authorized sub-tier suppliers only. If so, verify that the sub-tier suppliers
utilized are approved suppliers for LMC.
The LM CC will contact the SQFE and provide the following:
•
Source Inspection Lot # and/ or the Launch Validation Number (LVN)
•
Shop Order number
• Supplier information / (This information will be listed in the LMC web based portal). This
information includes the supplier’s address, phone number and contact name. The SQFE should
contact the supplier to arrange the source inspection visit and input the agreed-upon activity date using
the web portal.
•
Service request due date
3.2.1 Inspection Accept/Reject Criteria
It is SCS policy to always reject the entire lot on “One” defect (0/1) regardless of lot size (quantity) /
Current work instruction accept/reject criteria. If the supplier takes exception, apprise the supplier of the
inspection criteria requirement, then contact the LM CC for further instruction or guidance. Only Accept
the entire lot on “Zero” defects.
3.2.2 Documentation
Source activities may be documented in several ways.
•
•
•
LMC electronic web based portal (required method).
Supplier Quality Report (SQR) Form
Other means as indicated by LM Business Unit
3.2.2.1 Work Instructions
The work instructions will be available electronically in the LMC web portal. The SQFE’s should review
the work instructions prior to performing the source inspection.
If the work instructions are not available electronically – the SQFE must contact the LM CC to have the
work instructions loaded into the web portal. The SQFE should print a copy for use during the source
inspection (if the LMC web portal’s printing capability is not available, the SQFE must contact their LM
CC POC and request an electronic copy of the work instructions).
Lockheed Martin Corporation businesses provide written work instructions, specific to the commodity/part
number, for use when performing source inspections. These instructions generally include information on
the sample size required for the inspection, the specific product characteristics to be examined, and the
level of compliance required. The SQFE is required to view and confirm that work instructions are
available prior to performing the source inspection at the supplier.
However, some Lockheed Martin Corporation businesses do not use written work instructions. In this case,
the SQFE is expected to inspect the parts using the Lockheed Martin Corporation drawing and Purchase
Order as the guide to requirements and choose a sample to be inspected in accordance with industry
sampling techniques/specifications such as Mil-Std-105 or as directed by the Lockheed Martin Corporation
business.
TECH TIP
Different Lockheed Martin Corporation businesses use
different names for the work instruction. Other names you will
encounter include
• Incoming Appraisal Requirements (IAR)
• Technical Data Package (TDP)
• Print List Inspection Plan
• Work Instruction
Some Lockheed Martin Corporation businesses have their own forms or processes for recording the results
from source inspections, however; the preferred method is to use the electronic web based portal system.
The SQFE must comply with the documentation requirements of the Lockheed Martin Business Unit
requesting the service. Others may be communicated through the Lockheed Martin Corporation business
point of contact or SCS trainer. All requirements, however, will be documented.
Contact the Command Center or the SCS Trainer if there is any doubt regarding the appropriate form or
procedure to follow. The SQFE is required to submit a Supplier Visit Report (SVR) to their QSC and SCS
Command Center completed with the supplier’s quality representatives’ signature. In the absence of a
Lockheed Martin Corporation business-specific form or documented procedure, at a minimum, the SVR
should indicate the details of the material inspection and the outcome of the inspection.
The documentation for the inspection should be distributed in accordance with the LM Business Unit
procedure immediately upon completion of the activity.
Review and assemble all data or supporting documentation required by the Purchase Order for inclusion
with the product shipment. This includes First Article Inspection data, test data, certificates of compliance,
and other relevant documentation. After verifying that the documentation is available and accurate, begin
the inspection. Inspect the material and all characteristics listed in the work instructions checking the
general workmanship, form, fit, and function.
3.2.2.2 SCS Source Inspection Forms
The following are a few SCS forms used for Source Inspections:
•
•
•
•
•
•
Source Activity Report Card (SAR CARD) (specifically, for M&FC site, only when required,
otherwise use the web based portal)
Expense Authorization form – This form is to be completed prior to incurring any travel cost
associated with an activity
Supplier Visit Report (SVR) used as a client validation form. This form is not to be used to
document Source Inspection results.
Supplier Quality Report (SQR)-The SQFE must receive permission from the LM CC to use this
form. If, for some reason, inspections or other activity must occur but the activities are not listed
or properly listed in FQSM or the P2P system, the SQFE will utilize the Supplier Quality Report
“SQR” in order to manually record the activities.
Discrepancy Report (DR) is used to document non-conformances. Discrepancy reports are to be
used when required by LM Business Unit(s).
Process Improvement Request (PIR)
•
SQFE Source Inspection Checklist – This form is used as a tool that will ensure 100% task
completion while performing a source inspection.
3.2.2.2.1 Expense Authorization Form
Required Fields of an Expense Authorization Form
The following table is for reference when completing the pre-expense form; field names are shown in
italics.
Field
LVN/Inspection Lot
Number
Activity Date
Business Supported
Technical Specialist
ID/Pay #
Phone #
Supplier Name
Code
City, State
Estimated Expenses
Requester Comments
Completed by
Authorized by
SQFE Notified by
Instruction
LMC web based portal Lot # and or the Launch Validation Number supplied by the
LM CC
Date activity has been scheduled with the supplier
LMC business responsible for the activity
Printed name
SQFE ID# assigned by QSC
SQFE phone number. Will be used by the LM CC to communicate status of request.
Supplier’s name
Supplier’s CPS code or Supplier ID#. Will be provided by the LM CC.
City and state where activity will take place
Fill in applicable cost fields. Be sure to provide the unit cost, the duration of the
expense (e.g., $60 per night lodging for 3 nights; 100 miles for two days), and
calculate the total for each expense line. Overtime, minimum hours, or other expenses
should be listed in the blank expense lines. Each expense will be approved or
disapproved by the Business POC or CFQ. Comments on approval/disapproval will be
provided as needed.
Any additional information the Business POC may need to facilitate approval may be
written in this section.
Name of person who completed the form
Name of person who authorized the expense
Name of LM CC personnel who notified the SQFE of expense disposition
3.2.2.2.2 FQR Documentation Process
Some Lockheed Martin Business Units do not utilize the web based portal system for Source Inspection
and other activities or there may be assigned activities which are not Source Inspections or Surveys.
If, for some reason, inspections or other activity must occur but the activities are not listed or properly
listed in FQSM, P2P or other system(s), the SQFE will utilize the Supplier Quality Report “SQR” in order
to manually record the activities. The SQFE will follow the same general guidelines for source inspection:
•
Before beginning the inspection, request the SQR from the supplier.
Note: The SQR is initiated by the LM CC and sent to the supplier. The supplier completes their portion and
will give the SQR to the SQFE upon arriving at the facility; prior to beginning the activity, the SQFE must:.
•
•
•
Record the LVN/Inspection Lot Number in the SQR# field at the top right of the form.
Verify that the information completed by the supplier is complete and accurate for the parts being
presented.
Verify that the necessary documentation (such as Purchase Order, Drawing, and work instructions)
are available and they match the original request.
3.2.2.2.3 Discrepancy Report (DR)
Material that does not meet the specifications provided by the Lockheed Martin Business Unit will be
documented as non-conforming. Typically all non conformances will be documented using LMC web
based portal. If the LMC web based portal system is not being used for the Source Inspection, the
following apply:
•
The SQFE should use one DR report for each discrepancy.
•
The SQFE must document all material non-conformances.
•
The SQFE must also call the Lockheed Martin Corporation business point of contact or Command
Center to make immediate notification of the non-conformance and request instructions on any
further action required.
The Lockheed Martin Corporation Business Unit may take several steps to resolve the non-conformance.
Below are a few examples:
• Provide clarification of the requirements
• Provide written documentation changing the requirements to allow the non-conformance
• Instruct the supplier to ship the material with the non-conformance, as contingent material.
Contingent shipments must have written Lockheed Martin Corporation program approval on
Lockheed Martin Corporation letterhead prior to shipment. In most cases a shipment is either
rejected or accepted.
• Request the SQFE to initiate a root cause/Corrective Action investigation
• Request that the SQFE assess similar parts at the supplier to determine the extent of the problem
• Request that the SQFE document the non-conformance and allow the supplier to correct the
material and re-submit for inspection (“Return to Vendor” or RTV).
In any case, the finding of the non-conformance should be documented according to the Lockheed Martin
Business Unit’s procedures, even if the material is designated as contingent or the supplier has been
instructed to ship the material with the non-conformance. Any discussions with Lockheed Martin
Corporation personnel and resulting action requests should be documented on the Supplier Visit Report
(SVR). The results of any further investigations into the non-conformance should also be thoroughly
documented and provided to the Lockheed Martin Business Unit.
*Note: The SQFE must have a LVN/Inspection Lot # to work on or close a Corrective Action from a
supplier.
*Note: Material deemed “Use As Is” by the Lockheed Martin Business must maintain the original
rejected disposition by the SQFE.
CORRECTIVE AND PREVENTIVE ACTION
After non-conformances or other problems are identified, you may be asked to
perform a root cause investigation and recommend or evaluate proposed Corrective
Actions. The following checklist will help you ensure high quality corrective and
preventive actions.
Has the problem been properly and
completely identified?
Are root causes specified?
Is the proposed solution viable?
Sufficient details are needed to fully understand root cause and develop
adequate Corrective Action for effective implementation of the
improvement. This should provide a baseline from which results can be
measured.
Answer what, when, where, and who and address all issues for each
response. Ask why at each step of the explanation of the cause of the
defect. The fifth why should bring you to the actual root cause of the
occurrence. It is imperative not to stop before uncovering the true
underlying problem.
Implementation must address the root cause and be achievable.
CORRECTIVE AND PREVENTIVE ACTION
After non-conformances or other problems are identified, you may be asked to
perform a root cause investigation and recommend or evaluate proposed Corrective
Actions. The following checklist will help you ensure high quality corrective and
preventive actions.
Will the action be timely?
Does this prevent recurrence?
Are the right persons involved?
Are the results measurable?
Is follow-up necessary and when?
Interim measures address only the current situation. Maximum benefit
relies on timely implementation of the Corrective Action.
Remember to address the action on a system or process basis, as
determined by the root cause analysis. The opportunity may also apply
to similar commodities or situations not readily apparent from the
initial problem identified.
The individuals contacted should have adequate technical knowledge
and authority to implement the improvement as documented.
Determine the baseline from which the Corrective Action can be
measured for effectiveness.
Determine if follow-up is necessary and establish a timeline with
milestones for verification of effectiveness of the implemented
improvement.
3.2.3 Mil-STD-105 / Sampling Modes Table
When sampling is allowed or required, the following table, which lists the inspection level for the most
commonly used modes, may be referenced. Please also refer to the MIL-STD-105 for all sampling plans.
Modes not listed in the table below may be business and/or program specific and may require further
direction from the business unit. The SQFE should contact the LMC QE for direction prior to proceeding
with the appraisal if the sampling plan is not available.
Mode
A
H
K
L
M
N
O
P
Q
R
S
T
U
W
X
Y
Z
Inspection Plan
MIL-STD-105E General Level II
NSA 90% Confidence Switching
First Article Inspection
MIL-STD-105E General Level I
MIL-STD-105E General Level III
MIL-STD-105E General Level II
C=0
MIL-STD-105E General Level I
MIL-STD-105E General Level III
MIL-STD-105E Special Level S-1
MIL-STD-105E Special Level S-2
MIL-STD-105E Special Level S-3
MIL-STD-105E Special Level S-4
MIL-STD-105E Special Level S-1
MIL-STD-105E Special Level S-2
MIL-STD-105E Special Level S-3
MIL-STD-105E Special Level S-4
3.2.4 Stamp Control
Stamping indicates that an item is complete and meets all requirements specified in the Purchase Order
(PO), Drawing, Specification, Statement of Work, and other applicable documents.
When used, the SQFE must:
•
Assure that stamps are used appropriately and only as required; the use of stamps must be as
authorized by the LMC Business Unit.
•
Assure that the stamps are used only by the assigned SQFE. In other words, stamps are by no
means to be shared with other SQFEs or suppliers.
•
Care for and safeguard issued acceptance stamps.
•
Stamp the Accepted material and/or documentation (Supplier Quality Report, PMR, inspection
report, test data, etc.) as specified in the work instructions; The SQFE maintains control of
assigned stamps at all times and places them in secure storage when not in use.
•
Ensure that the annual audit form is completed and submitted to the stamp issuer.
•
Ensure that stamps are returned to the stamp issuer(s) once the services are terminated or no longer
required.
Ensure stamps are used correctly and only by those assigned to it. The SQFE must report lost, worn,
or damaged stamps to the LM CC, QE, or QSC, as appropriate.
3.3 Counterfeit Items Awareness
Discussion related to counterfeit issues to increase awareness within the SQFE community of counterfeit
items within the defense industries in general; LMC has created a mitigation process:
Our mitigation process is composed of:
•
Avoidance, in acquiring counterfeits
•
Detection, of counterfeit before use
•
Mitigation, of issues due to counterfeits
•
Disposition, of these issues
•
Communication, of incidents, information and solutions across our company(s) such as this article
Let’s begin with our definition of counterfeit: “Any item sold to LMC that is intentionally misrepresented
as something else” (inauthentic, misidentified, non-compliant), re-used/re-worked, salvaged, mishandled,
improperly stored, improperly tested, of unknown or of a suspicious pedigree.”
AS5553 defines this as: “A suspect part that is a copy or substitute without legal right or authority to do so
or one whose material, performance, or characteristics are knowingly misrepresented by a supplier in the
supply chain.”
Counterfeits are in the airline, automotive and other industries and continue to provide an increasing impact
to safety, cost and reliability.
•
Phony parts cost The Ford Motor Co. $1B
•
Recent Dept. of Commerce study for electronic parts shows the problem continues to grow.
•
Counterfeits incidents encountered are in various commodities, such as:
•
Electronic components, Batteries and Microchips
•
Hardware commodities including special processes such as castings, forgings, nuts, bolts, etc.
SUPPLIER Motivation:
•
Wants to fulfill LMC’s needs? Or continue to be a key supplier?
•
OEM – “no longer available”? Or Authorized Distributor – “not available”?
SUB-TIER Motivation:
•
May be in trouble – needs all the volume it can get?
As we perform our duties at our supplier base, these may be “Warning Flags” for us to watch…
•
Item coming from suspect locations or Priced too low / significantly different from history
•
Scarce items are suddenly available or Chain of ownership unverifiable
•
No OEM certification or Obsolete item
•
Unknown supplier
•
Non-homogeneous lot
•
Prohibited materials present
•
Item marking issues or Does not match similar items
•
Alterations/Resurfacing or Incomplete
•
Wrong size / location / methods or Quality difference
•
Lot Number / Date code issue
•
Package / Construction issues or Size / shape / color / finish / materials
•
Evidence of rework / repair / refinishing / resurfacing/remarking
•
Poor quality
What are the best ways for communication of suspect incident information to LMC?
Provide timely reporting or notification to LMC starting at:
•
SCS Management
•
Business site or Ethics or Legal Departments
4.0 Surveys
This Section Contains…
•
Quality System and Special Process Surveys performed by Lockheed Martin Corporation.
•
Pre-Survey Documentation
•
Checklist Documentation
•
Cover Sheet Documentation
4.1 References
Lockheed Martin Corporate Functional Procedure PQA-001, Survey Management
Lockheed Martin Corporate Functional Procedure PQA-002, Surveyor Performance
Lockheed Martin Corporate Functional Procedure PQA-003, Surveyor Training
Lockheed Martin Corporate Functional Procedure PQA-004, Surveyor Records
4.2 Requirements
4.2.1 Purpose of a Survey
The purpose of a survey is:
• To make an assessment as to the adequacy and effectiveness of the supplier’s system to meet
requirements.
• To focus on the requirements to which the assessment is being performed and not increase or
decrease the scope.
• Not to provide consultation.
* Note: The requester of the survey may ask that other tasks be performed as part of the visit, such
as equipment audits or preliminary evaluations in areas such as Electrostatic Discharge (ESD)
control or Calibration elements. These tasks may be performed while the Surveyor is at the
supplier’s location, however, these additional tasks must not be permitted to impact the primary
objective in order to complete the requested survey.
Although the LM CC will always be the Surveyor’s primary point of contact to Lockheed Martin
Corporation, the Surveyor may attempt to contact representatives from other Lockheed Martin Corporation
divisions who regularly visit the supplier, in order to:
o Obtain useful background information.
o Enhance working relationships.
o Identify common issues.
o Present common quality messages to the supplier.
4.2.2 Surveyor Training
The training and qualification of survey personnel is performed through Lockheed Martin Corporation
Functional Procedure, SPA PQA-003 - Surveyor Training.
4.2.3
Corporate Checklist & Survey Forms
Existing corporate checklists and common forms shall be used to establish commonality across Lockheed
Martin Corporation.
4.2.4
SCS Survey Forms
•
Pre Survey Questionnaire (Made available via Command Center)
•
Survey Cover Checklist (Made available via Command Center)
•
Survey Checklist (Accessible via the web based system)
•
Job Audit Checklists (when applicable)
•
Survey Finding Report (if applicable; Made available via Command Center)
4.3 Conducting Surveys
4.3.1
Survey Preparation
The Surveyor must acknowledge receipt of the survey within 24-48 hours by communicating with
the Command Center POC via email.
• Surveyor rejection of the survey assignment must not occur without notification and coordination
through LM CC personnel.
• The SQFE will obtain the supplier contact information and perform the telephone pre-survey
questionnaire. The Surveyor uses the pre-survey form to make a decision on whether or not the
supplier is ready for the survey.
• If results are accepted, the Surveyor follows through with updating the web based system with the
survey date.
• If not acceptable, do not proceed. Other circumstances that may stop the survey:
o The supplier does not desire the survey.
o The supplier’s capability does not exist.
o The survey compliance has been satisfied through another qualified LM business area.
These conditions will require the Surveyor to postpone the survey, document the postponement on presurvey questionnaire and apprise the LM CC accordingly. The Surveyor awaits further instruction from the
LM CC prior to conducting the survey.
* Note: Assure the questionnaire is completed with the QA Manager or a survey facilitator. (Not the
Sales manager).
• The Surveyor is expected to begin the survey process within 5 business days of acknowledgment
and is expected to perform the actual survey and have the completed documentation sent to
Lockheed Martin CC personnel within 30 calendar days from the date the survey was assigned to
the Surveyor.
•
It is mandatory to create and submit an agenda so that the supplier understands the expectations of the
audit. Once the pre-survey is completed and acceptable to the Surveyor and the supplier and the survey
process is scheduled, generate and provide (to the supplier) a survey agenda. An example is provided
below:
Date: January, 12th, 2013
Supplier Name: Makes Everything Good, Inc.
Attention: Mr. Audit Facilitator, QA Manager
Duration: (define expected duration)
Attendees: (List members of the staff that plan to participate, use Title and Name)
Give a brief synopsis of the survey process and requirements, such as:
As you well know, due to the criticality of your product in our systems, our Lockheed Martin
Corporation customers have identified your facility as a participant in our procurement program(s),
as such, we require that a survey be performed at your facility related to documentation and
implementation of internal processes and procedures to validate conformance to the desired
specification or standard.
The survey objective is to assess the best practices employed by your company; These may include
Assessing Management Leadership & Communication, Training, SPC program, CPI program, Total
Quality Management, Continuous Process Improvement program, Internal audits of process and
procedures.
In the area of process audit, the survey may consist of assessing your effectiveness in implementation
of incoming procedures, purchase order requirements, part number and revisions, work instructions,
inspection and test tooling and equipment, process flow mapping and definition of criticality, and
inspection records and traceability, amongst others.
If the survey addresses a Product Audit, it may consist of assessing drawings and revisions, P. O.
quality text, SPC charts and CPK’s, certifications, FAI’s, special processes, etc.
Of course, all of the above requires appropriate access to manufacturing packages, access to
manufacturing areas, access to support cast, looking at objective evidence such as meeting minutes,
self audits, x bar r charts, implementation plans, training records, work instructions, planning,
drawings, document controls, etc. The assessment includes the use of a checklists and general review
of procedures and processes from the quality system.
This survey is one that you can pass or fail. The ultimate aim is to have stable, controlled, and welldocumented processes that affect the ultimate quality of the product. Participating business sites
may use these results to make decisions about supplier selection. Therefore, the increased visibility
of your business throughout the Corporation on our Web site is definitely a benefit to you.
Our typical agenda is:
8:00 to 8:15
Introductions and In-brief
8:15 to 8:30
Plant Tour
8:30 to 9:00
Review elements of the QMS or special process
9:00 to 12:00
Survey process
12:00 to 1:00
Lunch (preferably a working lunch)
1:00 to 3:00
Continue survey process
3:00 to 4:00
LMC Caucus and Audit Documentation (when in team)
4:00 to 5:00
Out-brief and review action items, Next Steps & Closing comments
Please do not hesitate to call me with your questions. I will follow up with a call directly to confirm.
Please note that the above agenda and times are dynamic and flexible.
You can reach me at (000) 000-0000 if necessary. (Add your phone number).
Sincerely,
(Your name)
4.3.2 Arrival and Opening Meeting
The Surveyor starts the survey with a concise opening meeting covering:
• Introductions and recognition of the supplier’s team.
• The agenda and expected duration of the survey.
• The purpose and scope of the survey.
• Necessary arrangements for access and support.
Surveyor reviews presented procedures and documentation for clarity, accuracy, and indication of the
supplier’s methods to meet the requirements of the specification or the standard. The Surveyor obtains
sufficient relevant information and objective evidence to verify each element of the survey through
interviews and examination of all data, documents, and activities.
The Surveyor completes all applicable forms and survey questionnaires including all findings and assigned
due dates; the findings are then presented to the supplier. The suppliers’ signature must be obtained to
acknowledge the receipt of findings. The Surveyor then assigns a status(s) to each Quality System and
Special Process on the summary sheet(s). The suppliers’ signature must also be obtained on the summary
sheet(s) as acknowledgement of survey completion and debriefing.
4.3.3 Compliance to Procedures
The Surveyor observes and verifies objective evidence that procedures are understood and implemented
throughout the facility. Sampling records, observing floor practices, and interviewing employees, allows
the Surveyor to determine the supplier’s understanding of procedures and instructions and their
effectiveness in meeting the requirements. The surveyor shall also document items used as objective
evidence such as traveler #, cert #, training record, etc.
4.3.3.1 Non-Compliance
The Surveyor documents non-compliance with the specification, procedure, or implementation using the
Survey Finding Report (SFR); as referenced in Section 4.2.4.1.
The Surveyor reviews, with the supplier, all findings as they are identified to obtain concurrence of the
observation. If findings are issued, the Surveyor shall assign due dates of Corrective Actions. Closure of the
survey and assignment of a final approval status cannot occur until Corrective Action has been verified for
implementation. Thirty days is the maximum allowed time frame for a supplier to respond with a plan for
Corrective Action. Formal request for extensions may be granted at the discretion of the business site. The
Surveyor forwards the completed package to the LM CC. The Surveyor is responsible to communicate to
the supplier that they are to complete the survey finding report within the date assigned and all required
documentation shall be then forwarded to the LMC CC.
The Surveyor cannot complete or accept the supplier’s Corrective Actions, nor close the survey finding
report unless the LM CC has given a LVN/Inspections Lot # to perform this activity. The Surveyor will
send all data received from the supplier on the SFR to the LM CC. It is the Surveyor’s responsibility to
follow up and ensure the supplier submits the Corrective Action SFR within the allotted time and ensure
the command center receives the SFR from the supplier.
4.3.3.1.2 Survey Finding Report Form (SFR)
The SQFE will use the Survey Finding Report (SFR) to record all survey findings.
Surveyors use a separate SFR for each noncompliance. Although, the supplier may take immediate
Corrective Action, the noncompliance must be documented on an SFR. The Surveyor includes the
implemented Corrective Action and indicates closure date on the SFR. The Surveyor attaches SFRs to
survey checklists and distributes to the supplier and the LM CC.
The SQFE is responsible for follow up on the SFR with the supplier as authorized by the requestor.
The completed SFR should be sent to the LM CC for distribution. The supplier should be notified to
send all required corrective action documentation and communications to the appropriate LM CC
point of contact.
4.3.3.2 Evaluation of Objective Evidence
For a supplier to receive an approval status of “Approved” for a survey, the system/process must address all
the elements of the specification and not merely be “adequate” for a particular procurement.
Although, elements of specifications may not be required by or be applicable to existing contracts, they
must be included in the supplier’s quality plan to achieve “Approved” status. For example, sections 3.4,
3.6, or 3.10 of MIL-I-45208 (process controls, government furnished material, or inspection provisions)
may not be applicable to a particular procurement.
However, the supplier’s quality plan must at least recognize these requirements and provide for
implementation of controls should the need for them arise. If the supplier’s system/process does not
address all elements of the quality system, it cannot receive an “Approved” status.
4.3.3.2.1 Completion of Checklist, Guidelines
The Surveyor notes, in brief, the observed objective evidence including applicable procedures and evidence
of implementation (records, interviews, etc.)
The Surveyor must limit or eliminate the use of unsupported and vague statements, such as “See above”,
“Same as question above” or lone use of “Validated” or “Verified”.
Inspection and Test Documentation - WRONG
9. (1)
Inspection and testing instruction are
clear, complete and current
Y
10. (2)
All required instructions are available
and current
Instructions assure inspection and test of
materials in process and completed
articles
Instructions include criteria for approval
and rejection of product
Y
QA procedure ABC123, Rev C governs.
Reviewed (5) Inspection and Test
Instructions, all comply.
See #9 above
Y
Verified
Y
See #9 above
11. (3)
12. (4)
4.3.3.2.2 Appropriate Use of “Not Applicable”
There are circumstances in which a supplier has not had the need to implement some elements of the
specification. For elements of the specification that are not invoked by the current procurement or by
supplier practice, the Surveyor will record the supplier’s governing documentation, but objective evidence
verifying compliance is not required.
Note: Regardless of current Lockheed Martin Corporation contract requirements, the suppliers
must address all specification elements in order to fully comply with the specification. Current
contracts may not require certain elements of the specification. However, the supplier must have
a documented process, to minimize impact on future procurement.
Example of Appropriate N/A Use (see below three instances of documenting
objective evidence)
Process Controls
35. (1)
Specified control procedures are an
integral part of the inspection system
Y
35. (1)
Specified control procedures are an
integral part of the inspection system
Specified control procedures are an
integral part of the inspection system
N/A
35. (1)
N
QA procedure DEF456, Rev. A
governs. Reviewed traveler 123456
and associated run charts.
Supplier has no contract requirement
to support this
Supplier does not follow QA
procedure DEF456, Rev. A See
attached SFR 1
4.3.3.3 Supplier’s Quality System Approval Guidelines
If the supplier’s quality or process control system does not meet the requirements of the specification, the
Surveyor is required to write individual SFRs for all elements and or deficiencies. The Surveyor should not
abort a survey unless specifically instructed to do so by the LM CC.
The Surveyor evaluates the findings to determine the supplier’s Quality System status. An approval status
is based on classification of findings as:
•
Systemic (procedural) or implementation.
•
Critical or non-critical.
•
Isolated or repeat occurrences.
Critical areas of a Quality System are those in which a deficiency has a high likelihood of a direct negative
impact on product quality. The critical areas are shown with examples of deficiencies in the table below.
In some cases, deficiencies in these specific areas are not critical to product quality. For example, a finding
for a supplier who does not have procedures addressing alternate inspections, but who does not use
alternate methods, would be classified as non-critical.
Critical Area
Calibration Control
Inspection/Test
Records
Corrective Action (CA)
Nonconforming Material Control
Process Controls
Examples of Deficiencies
Un-calibrated equipment used to accept product
Measuring and test equipment not properly calibrated
Inspection/test procedures not revision-controlled
Inspection/test procedures which could allow defective product to be
accepted
Inaccurate or insufficient data recorded
Corrective Action system does not effectively address root cause
Corrective Actions not implemented expeditiously
Nonconforming material not effectively identified and segregated
Unapproved rework/repair procedures used
Processes other than those allowed by contract/specification used
Processes not controlled per contract/specification
Approval Status Flow Chart
Observation
Implementation
System or
Implementation?
Isolated?
System
Critical?
Only One
Observation
More Than One
Observation
Yes
Approved
Critical?
Disapproved
Yes
Disapproved
Special Processes and Tailored Specifications
The Surveyor determines Special Process approval status as follows:
Disapproved
Approved
Critical findings have been found and supplier does not meet the
requirements of the specification, type or class.
Supplier fully meets the requirements of the specification, type, and
class. Corrective Action has been satisfied.
4.3.4 Hold Exit Briefing Meetings
During the exit briefing meeting(s), the Surveyor presents the following to the supplier’s senior
management:
•
•
•
•
•
•
•
A “Thank You” for the supplier’s accommodations
Summary of observations
A review of all findings
A date on which findings should be satisfied (an agreed upon date with supplier).
Supplier’s approval status
Proposal for Corrective Action
Next steps
Note: A copy of the hand written survey shall be faxed and/or the electronic copy shall be emailed to the
appropriate LM CC point of contact.
4.3.5 Survey Summary Cover Sheet Completion
After the closing meeting, the Surveyor shall:
•
•
•
Completely fill in all fields on the survey summary sheet and survey finding report if required.
Leave a copy of all documentation with the supplier with an explanation of the approval status
(Approved, or Disapproved). Scan and email or fax a copy to the LM CC before leaving the
supplier. The preferred method is to type all forms and email to the command center within 48 hrs
of approval disposition (preferably in its original word format). If more time is needed to
complete the paperwork, the SQFE must inform the LM CC. If handwritten, use only black ink.
Any necessary corrections should be made using a single-line strikeout with initials and date of
correction. “Whiting-out” or “blacking-out” information is not allowed.
Keep a copy of all completed survey documentation for a minimum of one year