how nasa’s is mitigating risk presentation title in the supply chain...

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National Aeronautics and Space Administration

How NASA’s is Mitigating Risk in the Supply Chain

Conference on Quality in the Space and Defense Industries, March 16, 2010

www.nasa.gov

Defense Industries, March 16, 2010

NASA Contract Assurance Services (NCAS)

Buck Crenshaw , Honeywell Technology Solutions Inc.

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Overview

� Recent impacts on NASA’s supply chain� Perceptions of 3rd Party Registration� Organizations, Tools and Techniques used to

compensate for these perceptions and changes: – The NASA Audit Management Team (NAMT)– The Joint Audit Planning Committee (JAPC)– The use of Online Aerospace Supplier Information System

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– The use of Online Aerospace Supplier Information System (OASIS)

– The use of Surveys, Audits, Assessments, Reviews (SAAR) Information System (SAARIS)

– Our participation in the Registration Management Committee (RMC)

� Changes under development– Our Participation in Supplemental Oversight – Expanded Supplier Outreach effort

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Impacts on supply chain

� Recent impacts on NASA’s supply chain– The economic downturn has severely cut into contracts– The termination of the Shuttle, Delta 2, Titan IV and now

Constellation has also resulted in less contracts– The off-shoring of a great deal of production has impacted the

workforce– The retiring of the baby-boomers is impacting corporate

knowledge

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knowledge– The need to prepare for AS9100C will require resources – To many Primes/Organizations conducting multiple audit of same

supply base

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Perceptions of 3 rd Party Registration

� That 3rd party audits are not as thorough as 2nd party audits

� That 3rd party audits do not accurately reflect the adequacy of the suppliers QMS

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� That some Certification Bodies (Registrars)are better than others

� That some CB Auditors are better than others

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Organizations, Tools and Techniques

� Organizations, Tools and Techniques used to compensate for these perceptions and changes:

– The use of the Online Aerospace Supplier Information System (OASIS) for requesting previous Certification Body (CB) audits and the providing of audit feedback using the feedback linksTheNASA Audit Management Team (NAMT)

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– The Joint Audit Planning Committee (JAPC)

– The use of SAARIS for NAMT and JAPC audit conduct

– NASA’s participation in the Registration Management Committee (RMC)

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Mitigation Approach

� Require the use of The OASIS Feedback-loop for all Audit Findings

� Implemented changes to Audit Tool (SAARIS)– Added a Checkbox on all audit cards “Is this finding one a CB

should have discovered/documented?– Require the generation of finding when this box is checked

against the CB

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against the CB

� Developed a Supplemental Oversight program to work in tandem with the JAPC Audits– Issue findings against CB’s when noted

• Implemented Recording/Tracking of Findings against CBs

• Invite the CBs to participate on selected audits

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Mitigation Techniques in OASIS

� Use of OASIS– Conduct Pre-Audit research of suppliers records in OASIS– Establish a Watch-List of all Key Suppliers– Request last 2 audits by CB– Notify Supplier and CB of Upcoming audit and intention of

sharing results– Conduct Audit and post results and all follow-up

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– Conduct Audit and post results and all follow-up correspondence in the OASIS Feedback Loop

– Document any CB Findings in the OASIS Feedback Loop– Link (manually now) OASIS data to SAARIS, NAMT and JAPC

data– Develop Metrics as a result of all these activities

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NAMT Goals

� Verify implementation and effectiveness of contractually imposed SMA Requirements at Prime Contractors.

� Identify common issues and opportunities for improvement to benefit the agency, at the NASA Field Centers and Prime Contractors.

� Eliminate duplicative audits.

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� Eliminate duplicative audits.� Reduce the impact to both NASA Centers and Primes by

efficient scheduling and providing audit opportunities.� Reduce the burden in cost and time to NASA Centers

and Prime Contractors by reducing interruptions related to ongoing customer audits.

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NAMT Goals (Cont.)

� Provide an improved audit service to the supplier.� Identify opportunities for improvement to NASA

requirements.� Work collectively on tools to help support Agency audit

processes. � Identify opportunities for technical assist visits.

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� Identify opportunities for technical assist visits.� Identify opportunities for use of the Process Control

Team.

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Why Integrate Assessments?

U.S. Code Title 15--Commerce and Foreign TradeCHAPTER II--NATIONAL INSTITUTE OF STANDARDS AND

TECHNOLOGY, DEPARTMENT OF COMMERCE, PART 287—GUIDANCE ON FEDERAL CONFORMITY ASSESSMENT

287.1 Purpose and scope of this guidance.� (a) This part provides guidance for each Federal agency

to use in evaluating the efficacy and efficiency of its

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to use in evaluating the efficacy and efficiency of its conformity assessment activities. Each agency should coordinate its conformity assessment activities with those of other appropriate government agencies and with those of the private sector to reduce unnecessary duplication…

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Joint Audit Planning Committee

� Joint Audit Planning Committee (JAPC)– The JAPC is responsible for oversight of assessment

coordination and management of the Sub-Tier Supplier base as documented in a Memorandum of Understanding (MOU) that implements the NASA Joint Audit Planning Committee amongst NASA and

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Joint Audit Planning Committee amongst NASA and numerous Primes.

– The MOU establishes an integrated audit schedule and addresses team membership and methods of operation for the conduct of the audits of these Sub-Tier Suppliers.

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JAPC GOALS

– Share supplier quality data within the committee.– Enhancing the capability to identify supplier risks

and tailor quality assurance actions– Reduce committee companies costs by combining

auditing resources.– Reporting Agency-wide quality metrics and trends

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– Reporting Agency-wide quality metrics and trends– Standardize supplier auditing practices.– Share best practices and lessons learned.

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JAPC GOALS (cont)

– Identify and facilitate the resolution of common supplier issues.

– Eliminating duplicative audits and reducing supplier costs and work interruptions related to customer audits.

– Providing continuous improvement feedback to third

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– Providing continuous improvement feedback to third party, Industry Controlled Other Party (ICOP), and Government programs which serve to assess the conformance and/or effectiveness of supplier quality management systems or quality system processes. Examples include AS9100 Certification Bodies (CB) accredited in accordance with AS9104 and Nadcapspecial process accreditation.

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Overlapping Suppliers

� Suppliers sometimes serve as both NASA Prime and NASA Sub-Contractor.

� If the supplier agrees to be audited by the JAPC, the audit will be done at that level (with some exceptions).

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NAMT JAPC

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SAARIS as a Mitigating Tool

� JAPC audit s are encouraged to use SAARIS� NAMT is required to use SAARIS� SAARIS is:

– Electronic closed-loop assessment management system– Audit Planning & Preparation capability– Workflow Scheduling capability – Findings Documentation capability

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– Findings Documentation capability– Corrective Actions and Verification capability– Tracking capability until Audit Closure– Supports multiple assessment activities– Supports multiple roles– Maintains data privacy– Provides Analysis of Data across assessment activities

http://nsc.nasa.gov/16

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Updates Planned for SAARIS

� Planned– NASA’s Safety and Mission Assurance Requirements Tracking

System (SMARTS)– NASA’s Supplier Assessment System (SAS)– International Aerospace Quality Group’s Online Aerospace

Supplier Information System (OASIS)

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� Under Evaluation– NASA’s Incident Reporting Information System (IRIS)– JSC’s PQA Database


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RMC Techniques for Mitigation

� NASA has implemented the use of the ICOP Scheme in our flowdown requirement documents

� NASA participates in all RMC meetings– Reports on JAPC and NAMT activities– Reports on any significant supply chain issues– Reports on results on Supplier and CB Audit activity

� NASA participates in several RMC Work Groups

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� NASA participates in several RMC Work Groups– AS9100 Rewrite team

� NASA participates and speaks at every RMC Training Workshop


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Changes Under Development

� Rollout the Supplemental Oversight program to work in tandem with both the NAMT and JAPC Audits– Encourage/Require the use of The OASIS Feedback-loop for all

Audit Findings (NASA and the Supply Chain)– Develop Metrics of CBs to facilitate Risk Based Mitigation

decisions – Tie CB Findings to individual Auditors

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– Report CB and Auditor Metrics to the Registration Management Committee (RMC)

� Reinvigorate NASA’s Supplier Outreach Program

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Summary

� NASA recognizes all the issues the supply chains has to deal with and we are aggressively working to help them in that effort.

� We solicit the Aerospace Communities suggestions and contributions in this effort and are always looking for new and better tools to improve the supply chain.

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and better tools to improve the supply chain.

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BACK_UP SLIDES

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References

� NPD 1000.3C The NASA Organization w/Change 29 (09/24/2008) (see link) http://nodis3.gsfc.nasa.gov/displayDir.cfm?Internal_ID=N_PD_1000_003C_&page_name=main

� NPD 1210.2 NASA Surveys, Audits, and Reviews Policy (see link) http://nodis3.gsfc.nasa.gov/displayDir.cfm?t=NPD&c=1210&s=2

� NPD 8700.1C NASA Policy for Safety and Mission Success (see link) http://nodis3.gsfc.nasa.gov/displayDir.cfm?Internal_ID=N_PD_8700_001C_

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http://nodis3.gsfc.nasa.gov/displayDir.cfm?Internal_ID=N_PD_8700_001C_&page_name=main

� NPR 8705.6 Safety and Mission Assurance Audits, Reviews, and Assessments (see link) http://nodis3.gsfc.nasa.gov/displayDir.cfm?t=NPR&c=8705&s=6

References

• NPR 8735.2A Management of Government Quality Assurance Functions for NASA Contracts (see link) http://nodis3.gsfc.nasa.gov/displayDir.cfm?t=NPR&c=8735&s=2A

• U.S. Code Title 15--Commerce and Foreign Trade, CHAPTER II--NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY, DEPARTMENT OF COMMERCE, PART 287 http://www.google.com/search?hl=en&q=U.S.+Code+Title+15+chapter+II+part+287art+287

• MEMORANDUM OF UNDERSTANDING (MOU) FOR OPERATION OF THE NASA JOINT AUDIT PLANNING COMMITTEE .https://secureworkgroups.grc.nasa.gov/japc

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NASA Audit Management Team (NAMT)

� As the JAPC coordinates numerous activities between NASA and Primes who participated in the MOU, the NAMT

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participated in the MOU, the NAMT coordinate activities amongst Centers auditing Primes.

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Being Audited

� The process is set up in a manner that will benefit the auditee in participating in NAMT or JAPC activities.– The audit team will typically be more well rounded when

representing different Primes and Centers providing a more effective audit.

– There will be a single line of communication for responding to findings.

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findings.

� Although the JAPC and NAMT attempt to reduce audits, there will occasionally still be certain circumstances where the Center must conduct and audit of your facility without the JAPC or NAMT participation.– Reasons may include: Program or Project Specific

Requirements or Needs, Quality Issues at the facility, Schedule concerns, new technology or to verify special process capability.

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Summary

� JAPC focuses on coordinating audit activities between NASA and the Prime Contractors of sub-tier suppliers.

� NAMT is a Government Team coordinating audit activities of the NASA Centers.

� The JAPC and the NAMT have similar goals to reduce impact at suppliers, increase value, effectiveness, and

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impact at suppliers, increase value, effectiveness, and efficiency for NASA Programs.– This will involve more up-front coordination.

� Both teams also share a set of suppliers which makes it necessary for teaming.

� Auditees receive a more comprehensive audit at facility when more Centers/Primes participate.

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