ISO 9001
Work Instruction
Page
1 of 6
WI 01-8000_14b00 Defense Contract Process Overview
Corporate
Approved: Marketing & Sales, Planning, Purchasing, Engineering,
Manufacturing
Effective Date:
09 / 16/ 2013
1.0 Purpose
The purpose of this work instruction is to define the overview of the Defense Contract Process and
provide the links to the detail work instructions required to implement.
2.0 Scope
This work Instruction applies to Defense Contracts Only
This work instruction applies all department involved in the Production Realization Process, i.e.
Marketing & Sales, Planning, Purchasing, Manufacturing, Quality Assurance, Shipping …
3.0 Definitions
See Quality Manual (QM) / Appendix-A Terms & Definitions
CR&R – Contract Receipt & Review
DCMA – Defense Contract Management Agency
DPAS – Defense Priority Allocation System
PCO – Procurement Contracting Officer
RDF – Revised Delivery Form
15 CFR 700 – Code of Federal Regulation / Commerce & Foreign Trade / priority ratings & rated orders
Note: The planning & manufacturing processes includes a cross functional team, representing affected areas
within the company required to produce product (or services). The customer PO or contract initiates process.
UNCONTROLLED IF PRINTED
ISO 9001
Page
2 of 6
Work Instruction
WI 01-8000_14b00 Defense Contract Process Overview
Approved: Marketing & Sales, Planning, Purchasing, Engineering,
Manufacturing
Corporate
Effective Date:
09 / 16/ 2013
4.0 Work Instruction
STEP
RESPONSIBILITY
ACTION
Defense Priority Allocation System Chapter
Contract Review and Order Acceptance
a) Receive PO / Defense Contract
o Follows standard Product Realization Process (FO 01-7000) with
additional “Defense Contract Actions” as define within this work
instruction.
o
Points of Contact
 Peter J Kelly - pkelly@kell-strom.com (primary)
 Brian Valenti - bvalenti@kell-strom.com (secondary copy)
 Frank Kelly - fkelly@kell-strom.com (copy)
 Irene Prior - iprior@kell-strom.com (copy)
b) Review Producibility as defined within contract
o Business Days to Respond
 DO-rated(15days)
 DX-rated (10days)
 Limited window to adjust contract
1
Marketing
& Sales
o
Complete Checklist “Defense Contract Receipt & Review” (FO 40-8010)
 required multi-department review of contract deliverables & dates
 each department signs & accept (or notes discrepancies)
 completed form filed within Sales Folder
o
If No Discrepancies
- Contract by default is accepted as defined within contract
o
If Discrepancies
- Contact PCO / “Cannot Accept Order”, identify concerns / issues
- Copy DCMA
- file copies of communications & resolution in Sales Folder
c) Enter Sales Order
o Create Sales Order on TERM System to schedule work (WI 01-0000)
This initiates production planning process (WI 01-7010)
o
Defense Contract Work Orders added to Production Hot List (FO 10-7070)
UNCONTROLLED IF PRINTED
ISO 9001
STEP
Page
3 of 6
Work Instruction
WI 01-8000_14b00 Defense Contract Process Overview
Approved: Marketing & Sales, Planning, Purchasing, Engineering,
Manufacturing
Corporate
RESPONSIBILITY
Effective Date:
09 / 16/ 2013
ACTION
Defense Priority Allocation System Chapter
Requirements Flow Down
2
Purchasing
a) Supplier Notification (WI 50-7000)
o Purchase orders include text
“This is rated order certified for national defense use to follow all the
provisions of the Defense Priority and Allocations System regulation
(15 CFR 700)”
o
Purchasing works with Suppliers to ensure on time deliveries
b) Details On TERM System
Defense Priority Allocation System Chapter
Delay Notification
Marketing
& Sales
3
Cross Functional
Planning
a) Advance Notification of Delay
o Complete form “Defense Contract – Delay Notification” (FO 40-8020)
o Complete form “Revised Delivery Form” (FO 40-8025)
o Submit both to DCMA
o Retain copy within Sales Folder
b) Resolve within Planning Process (WI 01-7010)
o Monitor Schedule / Plan Adjustments
Defense Priority Allocation System Chapter
Preferential Scheduling
a) Standard Product Realization Process (WI 01-0000) with added visibility
b) Schedule Completion 30-days earlier than deliver-by date to ensure a
window for on-time deliveries.
4
Planning
c) Customer ID flagged as “Defense Customer” for added visibility across
cross-functional areas of company (e.g. sales, planning, purchasing,
manufacturing, quality assurance, shipping …)
d) Work order is included on Production Hot List (FO 10-7070) and
reviewed at recurring Cross-Functional Production Meetings
e) Work Order / Router on Shop Floor are Red Tagged (FO 60-0040) for
added visibility and priority processing
f)
WO progress: details On TERM System & WO traveler
UNCONTROLLED IF PRINTED
ISO 9001
STEP
Work Instruction
WI 01-8000_14b00 Defense Contract Process Overview
Approved: Marketing & Sales, Planning, Purchasing, Engineering,
Manufacturing
Corporate
RESPONSIBILITY
Cross Functional
Planning
5
Sales,
Purchasing,
Manufacturing,
Quality
Cross Functional
Planning
Sales,
Purchasing,
Manufacturing
Effective Date:
09 / 16/ 2013
ACTION
Production Planning Chapter
Master Production Planning
a) Monitor Production Plan & Execution (WI 01-7000)
o Monitor TERM System for work-order on-time performance
 Manufacturing router with on-time tracking of purchased parts,
outsourced services, manufactured parts, assembly, inspections,
shipping ….
o
6
Page
4 of 6
Cross Functional Production Meetings address concerns (WI 01-7000)
Production Planning Chapter
Rough Cut Capacity Planning
a) Planning Process identifies planned material & man hours (WI 01-7010)
o Step-1: Quote Planning
o Step-4: Confirm Schedule - integrated cross functional work-order
o Release work-order to Manufacturing
b) Details On TERM System
Production Planning Chapter
Material Requirements Planning
Cross Functional
Planning
7
Sales,
Purchasing,
Manufacturing,
a) Planning Process identifies planned material & man hours (WI 01-7010)
o Step-2: Production & Material Planning, New Tooling ….
o Step-3: Commit Parts to Work-order – order if required
o Step-4: Confirm Schedule - integrated cross functional work-order
o Release work-order to Manufacturing
b) Details On TERM System
Production Planning Chapter
Capacity Requirements Planning
Cross Functional
Planning
8
Sales,
Purchasing,
Manufacturing
a) Capacity Check of Materials
o Defined Manufacturing Process (WI 60-7000)
o Defined Production Plan / monitor plan & Adjust if required (WI 01-7000)
o Regular Production Meeting / red-line critical items
b) Capacity Check of Critical Resources (machines, tooling, manpower …)
o Defined Production Plan / monitor plan & Adjust if required (WI 01-7000)
o Regular Production Meeting / red-line critical items
o Shop Floor White Boards to manage operation center priorities
UNCONTROLLED IF PRINTED
ISO 9001
STEP
Page
5 of 6
Work Instruction
WI 01-8000_14b00 Defense Contract Process Overview
Approved: Marketing & Sales, Planning, Purchasing, Engineering,
Manufacturing
Corporate
RESPONSIBILITY
Effective Date:
09 / 16/ 2013
ACTION
Production Planning Chapter
Shop Floor Control
a) Shop Floor Controls / Cross-Functional Checks
Cross Functional
Monitor
9
Sales,
Purchasing,
Manufacturing
o
Production Plan & Monitor (WI 01-7000)
o
Recurring Production Meetings with Production Hot List (FO 01-7070)
 Production Meetings responsible to manage cross-department plan
 Purchasing responsible on-time purchase deliveries
 Manufacturing responsible for on-time manufacturing (& support tools)
 QA responsible for supplier part acceptance, in-process manufacturing
inspections as defined on WO & final inspection.
o
Manufacturing Process with work-order / router (WI 60-7000)
o
Inventory / Purchasing Status (TERM System)
o
Shop Floor White Board (operation center priorities)
o
Planned Product Inspections (work-order operations) (WI 20-8000)
b) Monthly Status Review & Reporting (30-60-90 Report / FO 40-8015)
o
Receive monthly 30-60-90 report from DCMA
 Peter J Kelly - pkelly@kell-strom.com (primary)
 Brian Valenti - bvalenti@kell-strom.com (secondary)
 Frank Kelly - fkelly@kell-strom.com (copy)
 Irene Prior - iprior@kell-strom.com (copy)
o
Review Status, Delivery Dates and Update as-required
o
Return Updated Report Electronically - email to DCMA
o
Retain electronic copies on Peter Kelly's DCMA folder
Filename “DMCA 30-60-90 Report month, 20yy”
UNCONTROLLED IF PRINTED
ISO 9001
Work Instruction
Page
6 of 6
WI 01-8000_14b00 Defense Contract Process Overview
Corporate
Approved: Marketing & Sales, Planning, Purchasing, Engineering,
Manufacturing
Effective Date:
09 / 16/ 2013
5.0 References
References should always be used in the most current form.
QSP 8.3
WI 01-0000
WI 10-0001
WI 10-0830
WI 01-7000
WI 01-7010
WI 10-0830
WI 10-0850
WI 20-8000
WI 50-7000
WI 60-7000
Non-conformance Controls
Kell-Strom Process Control System - TERM
QCS - Quality Compliance System Access
QCS – Non-conformance Process
Product Realization Overview
Planning Process
Non-Conformance Process
Corrective & Preventive Action Process
QA Manufacturing Support
Purchasing Process
Manufacturing Process
6.0 Records
The implementation of this document requires the use of the below listed forms or systems. Forms, which
are subject to revision, should always be used in the most recent form.
Kell-Strom Process Control System - TERM
o SC1 Sales Control
o EC1 Engineering Controls
o MC1 Manufacturing Controls – work orders, labor, material, routings
o WO1 Work Order Control
FO 40-8000 form - Defense Contract Process Audit Checklist
FO 40-8010 form – Government Contract Receipt & Review
FO 40-8015 form – Defense Contract Monthly Status Report (30-60-90)
FO 40-8020 form – Government Contract Delay Notification
FO 40-8025 form – Revised Delivery Form
FO 60-0040 form – Production Traveler Red Tag
UNCONTROLLED IF PRINTED