Electric Boat Supplier Quality

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Electric Boat Supplier QualityElectric Boat Supplier Quality is committed to working with oursuppliers to provide the highest quality materials used to constructthe most advanced nuclear submarines in the world. Oursubmarines operate in the harshest environments without supportto complete critical military operations so they must operate the firsttime, every time.Together we deliver the advantage that protects our sailors,our families and our freedom.2

Quality CommitmentElectric Boat sets high standards for our suppliers to ensure product qualityExpectations & Requirements Robust Quality ManagementSystem Management Accountability forQuality Excellence Strong Quality Culture High-Quality Processes,Procedures andTraining/Qualification ProgramsPerformance Consistently Meets ContractRequirements Measures Quality Performance Timely Response to EB SupplierCorrective ActionRequests/Inquiries Clear Recovery Plan WhenPerformance Does Not MeetExpectationsContinuous Improvement Self-Assessment Program Actionable Trend Analysis Effective Root CauseCorrective/Preventive ActionProgramSuppliers must have unyielding commitment for quality performance to deliver high quality materialmeeting purchase order requirements3

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EB Supply Chain Management Defined in 5 PhasesDesign & SOWPre-Award(Bidder Selection)Readiness(Selected)Execution(Prime & Sub-tier)ValidationDefine critical inspectionattributes and hold pointsParticipate in supplier assessment ofprocesses and capabilitiesDefine additional requiredoversight for selectedsupplier or sub-tiersuppliersMeasure and monitor technicalperformance of supplier and subtier suppliers assign correctiveaction as requiredApprove supplier objectivequality evidence (certificationpackage and RT film)Define sampling andinspection methodsParticipate in the identification of supplybase risks and evaluate need to developnew suppliersDevelop action plans toimprove supplier readinessIdentify, report and mitigatesupplier and sub-tier risks as theariseValidate supplier is ready forinspectionDefine certificationpackage requirementsParticipate in supplier technicalassessmentsVerify supplier process controls andimprovementsFinal inspection and acceptanceDefine supplier development and actionsElectric boat subject matter expertson site as necessaryAssess and validate supplier and sub-tiercapability and capacity (STA, capacityassessments, risk mitigation actions)In-process audits, inspection andoversightActively monitor supply base performance for risks and proactively take action to mitigate (ISAs, in-process audits, etc.)Communicate supply base risk to suppliers to increase awareness and mitigate effortsSupply base developmentDevelop and maintain a supplier culture of quality and performanceMonitor supplier’s quality performance and take actions to improve performance5

Tools Used to Address Supplier and Product RiskProduct vs. Supplier Risk Matrix SUPPLIER TECHNICALASSESSMENT IN-DEPTH SUPPLIER ASSESSMENT MANAGEMENT PLANS SCOPE OF WORK EMBEDDED HOLD/WITNESS POINTS FULL TIME ON-SITE PRESENCE AUDITS/SURVEILLANCES PART NUMBER REVIEW SPEC REVIEW RISK REVIEW BOARDSEXISTING PRODUCTNEW SUPPLIERNEW PRODUCTNEW SUPPLIEREXISTING PRODUCTEXISTING SUPPLIERNEW PRODUCTEXISTING SUPPLIERON-SITE PRESENCEAUDITS/SURVEILLANCESEMBEDDED HOLD/WITNESS POINTSANNUAL CRITICAL SUPPLIERASSESSMENTSSUPPLIER RISK SUPPLIER TECHNICAL ASSESSMENTIN-DEPTH SUPPLIER ASSESSMENTMANAGEMENT PLANSSCOPE OF WORKEMBEDDED HOLD/WITNESS POINTSFULL TIME ON-SITE PRESENCEAUDITS/SURVEILLANCESRISK REVIEW BOARDS EMBEDDED HOLD/WITNESS POINTS SUPPLIER TECHNICALASSESSMENT ON-SITE PRESENCE PART NUMBER REVIEW SPEC REVIEW AUDITS/SURVEILLANCES RISK REVIEW BOARDS ANNUAL CRITICAL SUPPLIERASSESSMENTSPRODUCT RISK6

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Realize Growth as an Electric Boat Supplier Electric Boat offers various programs and levels of qualifications in which suppliers can participate.A few examples are: Level 1 Nuclear Welding Non-Destructive Testing (NDT) Qualification to participate in certain programs and levels involves the following: Process audits Enhanced material control Procedure approvals8

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Quality Requirements Quality requirements from Electric Boat are found in specification EB2678 EB2678 can be found on the Supplier tab of the Electric Boat webpage EB2678 contains requirements for: Documentation/Records Drawing and Document Control Design Changes Material Control Nonconforming Material Control Manufacturing and Special Processes Inspection Corrective Action System Audits Material requirements are found in Purchase Order documents Strict adherence to both the quality requirements of EB2678 along with the material requirements ofthe Purchase Order is required10

Managing Supplier Quality PerformanceSupplier Quality organization lines of effort work together to measure, assess and address suppliers’quality performanceSupplier Quality Engineering (SQE) Scorecards Supplier Corrective Actions Quality Action Plans Purchase Order ApprovalInspection Source Inspection Receipt Inspection In-Process Product InspectionAudit/Surveillance Process/NAV Audits In-Depth Supplier Assessments Surveillance In-Process Product AuditsRisk AssessmentSupplier11

Electric Boat Integrated Supplier Management CycleSupplier Management Cycle is driven by: Performing Integrated Assessments Inputs from Purchasing, Engineering,Supplier Quality, Risk Data and SubjectMatter Experts (e.g. Welding, NDT) Defining/Implementing Corrective Actions Prioritized and informed by the integratedassessment Informs oversight methods and correctiveaction plans Managing Work Execution Follow up and monitor progress withcorrective action plans Oversight of work execution Feed data back to the integratedassessmentSupplier ScorecardsMetrics/Trends/Data & RiskAssessmentsAudits/In-Depth SupplierAssessmentsAnnual Critical t AuditsSurveillancesDefine/ImplementCorrective ActionsQuality Action PlansSupplier Corrective ActionsInspections12

AssessmentMonitoring Suppliers Using Supplier Management PlansManage Execution Supplier Management Plans are developed by Supplier Quality Engineers to provide: Expectations for supplier performance Action plans for supplier development These plans are also used by Supplier Quality Engineers as: A baseline to measure supplier growth The basis for Supplier Quality Engineer and Audit Group scheduling for supplier visits A platform for supplier assessments Supplier Risk profiles provide vital input to Supplier Management Plans13Define/ImplementCorrective Actions

AssessmentSupplier Quality ScorecardWhat is a Supplier Quality Scorecard?Manage Execution The assessment and scoring methodology is both qualitative based on interaction with the supplierand quantitative based on quality data in the following areas: Supplier reported in-process non-conformances (Vendor Information Requests) Source & Receipt Inspection acceptance rating Post delivery non-conformances (ERs/CNs) Supplier Corrective Action Reports (SCARs) Level of Confidence assessment by cognizant engineerTotal Score (Max 100 pts)Classification90 and aboveGreen – Meets Expectations75-89Yellow – Meets Minimum Expectations; Improvement Needed74 and belowRed – Does Not Meet Expectations14Define/ImplementCorrective Actions

AssessmentSupplier Quality Scorecard – How Points Are EarnedOverall total possible points 100Manage Execution In-Process Non-Conformances documented on (Vendor Information Requests) VIRs 20 points possible Number of applicable supplier responsible VIRs dispositioned in the past 12 months The supplier’s combined active and received PO value being used to scale VIR points Source and Receipt Inspection Results 25 points possible Post Delivery Non-Conformances 25 points possible Number of applicable supplier responsible ER-CNs reviewed in the 12-month assessment period Supplier Corrective Action Requests (SCARs) 20 points possible Number of SCARs that were open, new or closed during the scoring period Level of Confidence 10 points possible Culture of Quality, Supplier EngagementPositive or negative adjustments may be made to scores based on holistic evaluation of complexity ofproducts and supplier performance15Define/ImplementCorrective Actions

AssessmentSupplier Quality ScorecardHow is a Supplier Quality Scorecard Used?Manage Execution Assess the supplier’s ability to perform to Electric Boat’s requirements Determine appropriate actions to take including: Supplier Quality Action Plans (QAP) Frequency of Electric Boat Assessments and Audits Quality and Procurement Status Conduct informed conversations with suppliers on their quality performance Provide information and assessments to help determine: Procurement decisions Risk mitigation actions16Define/ImplementCorrective Actions

AssessmentSupplier Quality ScorecardManage ExecutionEB and Supplier Actions Based on ScoreGreen –MeetsExpectationsYellow –Meets MinimumExpectations;ImprovementNeededRed –Does not meetExpectations Review of assessment with Supplier’s Quality ManagementDiscuss opportunities for process enhancements to sustain performanceCommunicate concerns that may be indicators of declining performanceStatus the effectiveness of ongoing and completed corrective actionsContinue to perform oversight per standard practices Review of assessment and Quality Action Plan (QAP) with Supplier’s Management and EB SMEs asappropriate Communicate areas of improvement and document via SCARs/SMO Commitments if necessary Establish a cadence of regular communication with the supplier on the development planned actionsand the effectiveness of ongoing and completed corrective actions Develop an enhanced oversight plan to monitor areas of needed improvement Require meeting with the Supplier’s and EB’s Senior Management teams on assessment, problemstatements and Quality Action Plan (QAP) Formally communicate that the supplier is not meeting expectations via SCAR and Letter of Concernand require the supplier to take action to correct Establish a cadence of regular communication with the supplier’s leadership on their status to theimprovement plan Develop an enhanced oversight plan to monitor effectiveness of plan and ensure quality product isdeliveredDefine/ImplementCorrective Actions Favored for procurement awardsReduced inspection frequencyReduced depth/frequency of audits Limited procurementNormal inspection frequencyNormal depth/frequency of audits Reduced or stop procurementawardsIncreased inspection frequencyIncreased depth/frequency ofaudits 17

AssessmentAuditing and In-Process Inspections to Verify ProceduralComplianceManage Execution Audits/Surveillance are tools used to monitor process and work execution QMS/NAV Audits focus on supplier processes Audits performed periodically Example topics: Material Control, Inspection & Testing, Calibration, Non-destructive Testing,Documentation and Data Control, etc. In-Depth Supplier Assessments (ISA) Focus on execution of processes through assessment of the supplier’s performance of work Participation may include subject matter experts, government representatives and/or NewportNews Shipbuilding In-Process product inspections are performed to witness procedural compliance and process controls Audits are assessments of: Baseline supplier health Quality Management System effectiveness Supplier’s Quality Culture Conformance to contractual requirements Execution of work as a result of processes, procedures and QMS Audit and Surveillance metrics inform supplier quality scorecard process and risk assessments18Define/ImplementCorrective Actions