NMSE
OCTOBER 2008
UNCONFIRMED MINUTES
OCTOBER 6 – 9, 2008
WORKPIA YOKOHAMA
YOKOHAMA, JAPAN
These minutes are not final until confirmed by the Task Group in writing or by vote at a subsequent meeting. Information herein does not constitute a communication or recommendation from the Task Group and shall not be considered as such by any agency.
TUESDAY, OCTOBER 7, 2008 – THURSDAY, OCTOBER 9, 2008
1.0 OPENING COMMENTS
Jeremy Phillips commented that all members should review and familiarize themselves with the ethics policy posted in the room. Jeremy reviewed a presentation on the rules of conduct for the task group. Rick Sovich reviewed a presentation on facts and other information about Nadcap and the NMSE task group. Jeremy reviewed the Nadcap personal code of ethics and conflict of interest policy and the Nadcap antitrust policy.
1.1 Call to Order/Quorum Check
The NMSE meeting was called to order by Jeremy Phillips of Cessna at 9:00 AM on October 7, 2008. A quorum was established with the 13 User Voting Members that were present at the time.
ATTENDANCE
User Members Present (17):
Name Company
Windsor Amundsen Vice Chair Honeywell
Silvia Baeza Vought Aircraft
Marc Belanger Bombardier Aerospace
Gary Burns GE Aviation
Tara Campbell Rolls Royce PLC
David Day AQS Liaison GE Aviation
Harold Finch Spirit AeroSystems
Paul Graham Airbus (1st Meeting)
John Hammond Rolls-Royce Corporation
Xai Hong Rolls-Royce Asia (1st meeting)
Serge Labbe Heroux-Devtek
Susan Margheim Rockwell Collins
David McCallister Pratt & Whitney
Scott Patterson Secretary Goodrich
Jeremy Phillips Chair Cessna Aircraft
K.T. Quader Boeing Company
Angelie Vincent Spirit AeroSystems Inc.
Other Participants/Members (8):
Name Company
Tomohiko Ashikaga Mitsubishi Heavy Industries Ltd.
Takashi Furukawa IHI Corporation
Masato Ishida IHI Corporation
Kazuhiro Kajima Mitsubishi Heavy Industries Ltd.
Masahisa Minamide Mitsubishi Heavy Industries Ltd.
Tatsuya Ono IHI Corporation
Toshiyuki Serizawa IHI Corporation
Yoshiomi Sukesada Asahi Kinzoku Kogyo Co., Ltd.
PRI Staff:
Rick Sovich
1.2 Approval of Last Meeting Minutes
Motion made to accept meeting minutes from the July 2008 meeting in Pittsburgh. Meeting Minutes were unanimously approved. Motion passed.
1.3 Prime Attendees
· Paul Graham - Airbus (replaces Leslie Fewings as UVM)
2.0 NMC METRICS AND STAFF REPORT
· Rick Sovich reviewed the overall Nadcap metrics versus the NMSE metrics.
· NMSE metrics are favorable compared to many of the other task groups.
· NMSE cumulative audit capacity is good, and the number of performed audits is slightly ahead of schedule.
· Projections for the year look like we will finish ahead of last year as far as the number of audits is concerned, and will be the best year to date for the NMSE task group.
· The supplier cycle time for initial audits is favorable to the task group goal.
· The supplier cycle time for reaccred audits is also favorable.
· Staff cycle time for initial audits is favorable to the task group goal, and the TG’s best performance to date.
· Staff cycle time for reaccred audits is continuing to trend downwards and the metric is favorable to the goal.
· Task Group cycle time for initials is currently green; the task group met the goal.
· Task Group cycle time for reaccred audits is unfavorable because of the use of non-delegated reviewer.
· Merit eligibility has hit a plateau at approximately 89%, and is expected to stay in that range. A suggestion was made to notify suppliers that have had a change in critical personnel to remind them that historically, this category of suppliers have a higher potential of losing merit at the next audit. KT Quader’s studies indicate that there may be a general relaxing of suppliers that are on merit that result in the loss of merit at the next audit.
Action Item: John Hammond will lead an ad-hoc group to review data to help the Task Group determine the main reasons that suppliers lose their merit. David McAllister has agreed to be part of the group and report out at the Dallas Meeting. Rick Sovich will support the team by providing some of the data if it is available.
· Prime participation for the 14 of the 16 primes that have participated is above the 10% minimum guideline.
· FTE audit report. Asia is slightly over capacity. The US still has capacity available. Europe has far more capacity than is required, and efforts are being taken to rectify that situation. Auditors are being cross trained for other commodities and are being used for Asian audits if possible.
· The NMSE skyline was also reviewed.
· Future quarterly audits are comparable with previous quarters and capacity is available.
· KT Quader asked if the auditor deep dive can be given at all meetings and is there any relationship to sectors any other factors. Rick Sovich indicated that this specific data must currently be manually generated and is planned to correspond to auditor training. This may become an option if a report can be automatically generated after eAuditNet 2.0 is released. No action is currently planned.
· Rick Sovich reviewed a presentation of excess capacity and how the NMSE TG compares to the rest of the commodities in Nadcap.
2.1 Delegation Report
· Rick Sovich reviewed the data for audits conducted by Joe Barr.
· Joe reviewed 31 NM audits (74 NCR’s) and 25 SE audits (62 NCR’s).
· Joe had a 98% average acceptance rate.
· Joe has reviewed audits for more than a year.
· Overall, Joe has met all of the criteria for Delegation and Rick Sovich recommended Joe for delegation.
· A comprehensive discussion pursued that indicated that most people concurred that Joe is competent technically, has met all of the criteria, and should be delegated.
Motion made by Winsor Amundsen and seconded by Gary Burns to approve Joe Barr for delegation. Motion passed.
· Rick Sovich reviewed the data for Marcel Cuperman. He is used sparingly but enough to maintain competency. He is the current PRI SE backup.
· Rick Sovich reviewed the data for himself from June to September and was 100% in concurrence by the TG.
3.0 NTGOP APPENDIX 13 DISCUSSION
· Rick Sovich provided a document that had the additions in Red, and the deletions lined through for clarity.
· Gary Burns had an issue with the changes to the NOP supplier merit, and Rick Sovich told him that he needed to review the issue or concern with his NMC representative.
· Marc Belanger inquired as to how the new supplier merit process is flowed down to the suppliers, since the requirements are defined in an NOP document. It was explained that 90 day notice was given to each Supplier.
· Questions surfaced as to whether or not the Task Group can control the number of findings for the 18 month merit process since it is blank in the NOP. It was explained that the Task Group can impose additional requirements based on the uniqueness of each Task Group as long as the additional requirements comply with higher level documents. It was stressed that consideration to process uniformity and consistency with other Task Groups be considered before additional requirements are added.
· Discussion also revealed concern that merit can be achieved as long as you don’t fail based on the number of findings. The Task Group will question NMC as to whether or not we can define different numbers for NCR’s that will result in removal of merit.
Action Item: Rick Sovich will set up a conference call or WebEx meeting by Nov 15th, 2008 to finalize the changes to the NTGOP Appendix 13 document. The Task Group completed the review up through item 10.
4.0 EXPORT CONTROL UPDATE
This topic was tabled until the February 2009 Nadcap Meeting in Dallas due to lack of time.
5.0 OPENING Comments
The meeting was called to order by Jeremy Phillips of Cessna at 1:45 PM on October 7, 2008. A quorum was established with the 13 User Voting Members that were present at the time.
6.0 NMSE RAIL REVIEW
· Rick Sovich reviewed the status of the NMSE RAIL with the Task Group.
· Item 7 was reassigned to Jeremy Phillips. It was suggested that this review be moved to a closed session and achieve Task Group agreement before discussing with suppliers.
· Auditor John Cammett has announced that he will not be accepting any new audits.
· The completion date for item 8 was moved to the February 2009 timeframe, in conjunction with the Nadcap Meeting in Dallas.
· Discussion of item 9 will be added to the monthly conference call agenda. A suggestion was made to provide a small summary slide that will be reviewed with the rest of the Task Group at each meeting.
Action Item: Rick Sovich to include auditor trends from the auditor deep dive and supplier feedback to the yearly auditor training in Pittsburgh during October 2009.
· Concern about obtaining information and supplier feedback specific to NMSE concerns were not currently obtainable through standard Nadcap survey questions. The use of the Survey tool was discussed as a supplement to current surveys.
· Gary Burns suggested that PRI consider the use of a third party survey group to obtain objective supplier feedback.
Action Item: Rick Sovich to review commodity specific surveys currently in use and report out in February 2009 at the Nadcap Meeting in Dallas.
Action Item: Rick Sovich and Jeremy Phillips will investigate whether HT Task Group survey is yielding the expected results.
· Items 167, 168, 169, 170, 171, and 172 were tabled until February 2009 for discussion at the Nadcap Meeting in Dallas since the responsible person was not in attendance at Yokohama.
7.0 NEW BUSINESS – CLOSED SESSION
· No new closed business was raised.
8.0 INTRODUCTION AND OPENING COMMENTS
The NMSE meeting was called to order by Jeremy Phillips of Cessna at 11:15 AM on October 8, 2008. A quorum was established with the 14 User Voting Members that were present at the time. 6 suppliers, representing 3 supplier companies, were present. Jeremy reviewed the NMSE rules of conduct and the antitrust policy.
9.0 RESOLUTION OF AC7116/1 ECD COMMENTS
· The checklist was out for ballot and several comments surfaced.
· Rick Sovich reviewed the ballot comments with the Task Group.
· All of the comments were resolved by the Task Group.
Action Item: Rick Sovich to release ECD addition to AC7116/1 for NMC Ballot by Nov 1, 2008.
10.0 RESOLUTION OF PRIME SPECIFIC SUPPLEMENT SHEETS AC7117
· Several comments and changes to questions by the applicable Prime were received during the ballot process for the prime specific supplement sheets.
· Rick Sovich reviewed the ballot comments with the TG, all comments were resolved and additional questions were allowed to be added.
Motion made by Scott Patterson and seconded by Windsor Amundsen to accept the changes for the Airbus prime specific supplement sheets. Motion passed.
Motion made by Sylvia Baeza and seconded by Gary Burns to accept the changes for the Boeing prime specific slash sheet. Motion passed.
Action Item: Rick Sovich will send the prime specific slash sheets back out for ballot with the changes incorporated by Nov 1, 2008.
11.0 INTRODUCTION AND COMMENTS
The NMSE meeting was called to order by Jeremy Phillips of Cessna at 1:45 AM on October 8, 2008. A quorum was established with the 14 User Voting Members that were present at the time. 6 suppliers, representing 3 supplier companies, were present.
12.0 SSC REPORt
Yoshiomi Sukesada presented the SSC report and an Asian Supplier Perspective on Nadcap.
13.0 SURVEY TOOL – REPORT OUT
A demonstration of the survey tool and resulting report was presented by Rick Sovich and it was suggested that this tool could be useful for increasing communication. The membership was asked to forward any ideas to utilize this new functionality.
14.0 ROTATING AND TAPPING FOR IN-USE TESTING
· Sylvia Baeza led the discussion
· She indicated that AMEC will modify the spec to say “steel shot”
· The suppliers present indicated that they use the rotap for both incoming and in use testing.
· The suppliers present also indicated a preference to use cut wire shot.
Action Item: Sylvia Baeza and Jay McMurray to discuss with Jack Champaigne to determine if using the rotap for in-use testing is consistent with current industry specification development. Report out at the Dallas meeting before the Task Group moves toward consensus vote.
Motion made by Jeremy Phillips and seconded by Windsor Amundsen to table the consensus vote until the Nadcap meeting in Dallas, February 2009. Motion passed.
15.0 FLOWCHART OF JOB AUDIT SELECTION
This topic was tabled until February 2009 in conjunction with the Nadcap Meeting in Dallas due to lack of time. KT Quader requested to be added to this flowchart project with Jeremy Phillips.
Action Item: Rick Sovich to send copy of Job Selection flowchart to K.T. Quader by Nov 1, 2008.
16.0 NEW BUSINESS – OPEN SESSION / FEB 2009 AGENDA
· Yoshiomi Sukesada commented that supplier feedback is very important for the improvement of the Nadcap system. He suggested that all data should be compiled and shared with all suppliers. He feels that he doesn’t see any efforts from Nadcap to act on the supplier feedback. Rick Sovich explained the Nadcap process of reviewing supplier audit and auditor comments. Tara Campbell explained the value of prime oversight audits and how they help improve the Nadcap Audit process.
· Yoshiomi Sukesada indicated that the reaccred timeframe should be shortened and shouldn’t be as long as an initial audit. Rick Sovich explained the Nadcap rationale for determining the length of audits.
· Jeremy recommended that suppliers work with the SSC to review data trends, and if they justify a reduction in audit length, review that data with the NMC, since this rational would affect all commodities