Kell Strom Tool Ref: FO 40-8000_14a00
Manufacturing Systems Review
Assessment-Geographic
Defense Contract Management
Agency
130 Darlin Street
East Hartford, CT 06108
860.291.7855
860.291.7855
Name
Industrial Specialist
Name
Industrial Specialist
Name
Industrial Engineer
Manufacturing Systems Review Assessment Checklist-Geographic
Table of Contents
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Defense Priority Allocation System Chapters ..................................................................................................................................................3
Contract Review and Order Acceptance .............................................................................................................................................. 3
Requirements flow down..................................................................................................................................................................... 5
Delay Notification ................................................................................................................................................................................ 6
Preferential Scheduling ........................................................................................................................................................................ 7
Production Planning Chapters ...................................................................................................................................................................................... 8
Master Production Scheduling............................................................................................................................................................. 8
Rough Cut Capacity Planning ............................................................................................................................................................... 9
Material Requirements Planning ....................................................................................................................................................... 10
Capacity Requirements Planning ....................................................................................................................................................... 11
Shop Floor Control ............................................................................................................................................................................. 12
Summary ...................................................................................................................................................................................................................... 13
Glossary ....................................................................................................................................................................................................................... 17
1
Manufacturing Systems Review Assessment Checklist-Geographic
Assessment Title:
Contract Number:
Assessment Number:
Start Date:
End Date:
Location:
Meeting Date:
Assessor(s):
Meeting Time:
Contractor(s):
Meeting Location:
Continuous
Improvement
Opportunities:
Program / Area Audited:
RESULTS:
2
Manufacturing Systems Review Assessment Checklist-Geographic
Defense Priority Allocation System Chapters
Evaluation Criteria:
Comply
System Adequacy Criteria:
Y/N
No.
Contract Review and Order Acceptance - DPAS
1
Yes
(Defense Priority Allocation System) contracts are
reviewed and orders properly accepted.
a. Do you have process for DPAS rated orders.
Yes
b. Do you know what the 15 CFR 700 is?
No
c. Have you been trained in DPAS?
No
3
Internal
Process
Document
Finds / Action Item # or Evidence of
Compliance
Manufacturing Systems Review Assessment Checklist-Geographic
d. Do you have a CR&R process in place to insure
all DPAS contracts/orders are identified?
?
Evaluation Criteria:
Comply
System Adequacy Criteria:
Y/N
No.
e. Do you as a Company have a CR&R Checklist?
?
f. Does it include checking for the FAR Clause
52.211-12 Defense Priority and Allocation
Requirement
Will
Advise
g. Are you familiar with the proper method of
reviewing and accepting DPAS rated orders?
Will
Advise
4
Internal
Process
Document
Finds / Action Item # or Evidence of
Compliance
Manufacturing Systems Review Assessment Checklist-Geographic
No.
Evaluation Criteria:
System Adequacy Criteria:
Comply
Y/N
Requirements flow down - DPAS requirements
2
are flowed down, both internally and externally,
throughout the suppliers supply chain.
a. Do you have a process of flowing down the
DPAS 15 CFR 700 requirements to you sub-tier
suppliers to include all outside process?
b. How do you flow down the DPAS requirement
to your sub-tier suppliers?
Yes
DFAS
Rated
clause on
PO
c. Does a statement in your purchase order read in
substance: This is rated order certified for
national defense use to follow all the provisions
of the Defense Priority and Allocations System
regulations (15 CFR 700)
Yes
5
Internal
Process
Document
Finds / Action Item # or Evidence of
Compliance
Manufacturing Systems Review Assessment Checklist-Geographic
No.
Evaluation Criteria:
System Adequacy Criteria:
Comply
Y/N
Delay Notification - Notification of delays on rated
3
Internal
Process
Document
Finds / Action Item # or Evidence of
Compliance
Y
orders, along with reason for delay, is provided in
advance.
a. Do you have a process to notify the
Government when you are going to be delayed
on a delivery in writing?
Y
b. Do you have any common processes for tracking
deliverables and identifying if you are going to
be late contract specific?
Y
c. What method is used to notify the customer in
writing of the root cause of delay with an
anticipated recovery date?
Delay
Notice
d. Upon recognition of a delay, do you contact the
PCO for a modification to extend the delivery
date?
Y
6
We notify DCMA and the PCO for date
modification
Manufacturing Systems Review Assessment Checklist-Geographic
Evaluation Criteria:
Comply
System Adequacy Criteria:
Y/N
No.
4
Preferential Scheduling - Preferential scheduling
Internal
Process
Document
Finds / Action Item # or Evidence of
Compliance
Y
is used to ensure rated order scheduling over non-rated
orders.
a. Do you have a process to prioritize rated orders
over un-rated orders?
Y
b. How do you identify rated vs. non-rated orders
for scheduling purposes?
We put this information on our in house
open order reports
c. Do you have a manufacturing plan in place to
ensure rated orders are scheduled to the extent
possible to ensure delivery by the required
delivery date IAW 15 CFR 700.3 (c)?
Y
7
Manufacturing Systems Review Assessment Checklist-Geographic
Production Planning Chapters
No.
5
Evaluation Criteria:
Comply
System Adequacy Criteria:
Y/N
Master Production Scheduling - Schedule for
production by item, date, and quantity for the duration
of the planning system is provided.
a. Do you have a process for developing a master
schedule for production by item, date due, and
quantity required? Explain.
b. Does the master schedule take into account all
demands, including effective forecasting,
contract delivery dates, customer orders, and
frozen plan approvals?
8
Internal
Process
Document
Finds / Action Item # or Evidence of
Compliance
Manufacturing Systems Review Assessment Checklist-Geographic
Evaluation Criteria:
Comply
System Adequacy Criteria:
Y/N
No.
6
Rough Cut Capacity Planning - Capacity check of
critical resources to ensure feasibility of the master
production schedule.
a. Do you have a process to perform a capacity
check of critical resources to include materials
requirements with long lead time items to
ensure contract will meet the scheduled
delivery times before accepting contract?
b. When an order is accepted, do you ensure that
all documentation is understood, material is
available or will be available within the time
stated in the manufacturing plan, and tooling
required for processing an order are present?
9
Internal
Process
Document
Finds / Action Item # or Evidence of
Compliance
Manufacturing Systems Review Assessment Checklist-Geographic
Evaluation Criteria:
Comply
System Adequacy Criteria:
Y/N
No.
Internal
Process
Document
Finds / Action Item # or Evidence of
Compliance
Internal
Process
Finds / Action Item # or Evidence of
Material Requirements Planning - Time phased
7
No.
plans for all component parts, raw materials, subassembly and assembly activities required to produce
all products on the master production schedule is
determined.
a. Do you have a time phased plan to ensure all
component parts and raw materials, including
sub-assemblies, are completed on time in order
to meet delivery schedules?
Evaluation Criteria:
Comply
10
Manufacturing Systems Review Assessment Checklist-Geographic
System Adequacy Criteria:
8
Y/N
Capacity Requirements Planning - Capacity
check of production plans generated from material
requirements planning is provided.
a. Do you perform a capacity check of material
requirements including long lead time items to
ensure contract will meet the scheduled
delivery times before accepting contract?
How is this accomplished?
b. Do you perform a capacity check (manpower,
tooling, machinery) of critical resources to
ensure feasibility of a master production
schedule) to meet contractually obligated
delivery dates?
How is this accomplished?
11
Document
Compliance
Manufacturing Systems Review Assessment Checklist-Geographic
Evaluation Criteria:
Comply
System Adequacy Criteria:
Y/N
No.
Shop Floor Control - Documentation, material, and
9
tooling needed to process order are present. Orders
are released as authorized by the material requirement
plan. Priority control is exercised with respect to
queues. Order performance is monitored and plans
adjusted as necessary.
a. Do you have processes in place for shop floor
control? If so, what are they and how do they
work?
1. Intent: Documentation, material, and
tooling needed to process order are
present.
2. Intent: Orders are released as
authorized by the material requirement
plan
3. Intent: Priority control is exercised with
respect to queues.
4. Intent: Order performance is monitored
and plans adjusted as necessary.
12
Internal
Process
Document
Finds / Action Item # or Evidence of
Compliance
Manufacturing Systems Review Assessment Checklist-Geographic
Evaluation Criteria:
Comply
System Adequacy Criteria:
Y/N
No.
10
Summary
13
Internal
Process
Document
Finds / Action Item # or Evidence of
Compliance
Manufacturing Systems Review Assessment Checklist-Geographic
Audit Meeting / Personnel Interviewed
Close Out Meeting / Personnel Interviewed
Findings are categorized as follows:



Major
Minor
Observation
A non-conformance that indicates a complete breakdown or absence of compliance.
A non-conformance that indicates inconsistent compliance.
A note documenting a recommendation for improvement or warning about potential non-compliances
for which the internal audit team may have been unable to gather enough evidence to warrant a nonconformance.
14
Manufacturing Systems Review Assessment Checklist-Geographic
Summary of Findings / Observations
Description of Finding
Number
1
No formal process documented for Solicitation or CR&R Review
2
Lack of communication a mongst departments – No database exists for effective parts tracking from
other departments
3
Oracle entry process lacks written procedure#
4
Oracle currently used in lieu of formal ERP / MRP system
5
No Easy Identification of rated VS non-rated orders exist down to material managers/buyers
6
DPAS training not performed at contractor’s facility
7
Process for tracking deliver-ables by schedule and quantity extremely hard to follow
8
Increased IPT usage has led to many successful improvements
9
All demands are not taken into account or readily apparent in master production schedule
10
Production start dates not shown on Master Production Schedule
11
Contractor has no supplier risk rating system for sub tier suppliers
12
No documented process exists for frozen plan requirements
13
Capacity chart entry is not a documented process and a standard form
14
Lack communications from appropriate personnel concerning potential schedule delays not relayed to
upper management/Government
15
Obs
Min
Maj
Manufacturing Systems Review Assessment Checklist-Geographic
Assessment Summary and Comments
See Final Report
Lead Auditor
Date
16
Manufacturing Systems Review Assessment Checklist-Geographic
Glossary
Acronyms
CFR
Code of Federal Regulation
CR&R
Contract Receipt and Review
DPAS
Defense Priorities and Allocations System
FAR
Federal Acquisition Regulation
IAW
In Accordance With
PCO
Procurement Contracting Officer
17