Jim Lee presents at ASA’s 2017 Annual Conference

ASA Conf 170710

Aviation Suppliers Association (ASA) is a not-for-profit association that represents over 600 worldwide member companies that lead critical logistics programs, purchasing efforts, and distribution of aircraft parts globally.

The 2017 ASA Annual Conference takes place July 9-11 in Reston, VA; and is one of the largest for the aviation distributor industry. The event draws aviation professionals worldwide with a range of business development and management, quality assurance, legal/regulatory and general industry topics. The itinerary includes general sessions, workshops, exhibitors, and networking events. SimpleQuE founder Jim Lee presented at the conference on Monday, July 10 about risk management requirements for distributors that are ISO and/or AS certified.

“This is our second year to present on 3 different topics.” said Lee. “We appreciate this opportunity to network with our clients and aircraft parts distributors. Last year we had three simpleQuE attendees at the conference, and this year two. By attending these conferences, we get a lot of information and value that we share with our consulting clients and other staff members.”

Aviation Suppliers Association promotes safety, regulatory compliance and ethical business practices among aviation parts suppliers throughout the aviation community. Over 300 companies have received accreditation to the ASA-100 Quality System Standard and FAA Advisory Circular 00-56 since 1996.  ASA Certification Body also certifies companies to ISO 9001, AS9120, AS9100, and AS9110.

Sign Up For Our Newsletter

Risk Management for Aerospace and Defense Industries

Aerospace transport and people. Two pilots dressed in uniform flying jet airliner on sunny day sitting inside aircraft cockpit surrounded by equipment. Selective focus on captain's hand on power lever

In a business environment failure and negative consequences are the last things anyone wants to encounter.  But the reality is that risk is always present and comes from multiple sources, whether from inside the organization or from external elements. Due to the complexity of aviation, space, and defense processes, products, and services, and the severity of the potential consequences of failures, a formal process to manage operational risks is required.

The exercise of risk management is how a company proactively applies quality standards to keep a lid on risk as much as possible from creating negative ramifications in the supply chain or to production or scheduling, etc. While to some it can seem like bureaucracy or unnecessary controls, risk management pays for itself many times over with the cost avoidance it helps secure. All it takes is one bad event to see why risk management is so important, that’s assuming the company survives that event.

The elements of risk management are clear and straightforward as well. It’s an ongoing, cyclical process of identifying risks, assessing them, proactively reducing their probability of occurring by control, and mitigating those that are allowable. But just following the process alone doesn’t explain why a business should have a risk management process in the first place.

In AS9100 the operational risk management process is supported by specific requirements throughout clause 8, to drive an enhanced focus on:

  • understanding risk impacts on operational processes; and
  • making decisions on operational processes and actions to manage (e.g., prevent, mitigate, control) potential undesired effects.

Within aviation, aerospace, and defense, risk is expressed as a combination of severity and likelihood of having a potential negative impact to processes, products, services, customer, or end users. In AS9100, operational risk management must include how the company defines their risk assessment criteria (e.g., likelihood, consequences, risk acceptance), and ultimately acceptance of risks remaining after implementation of any mitigating actions. Something as simple as the example below may be the simplest way to quantify risks. More detail could be utilized with scoring.

table

The standard requires an aerospace quality management system that takes into account the identification of various risks related to organizational circumstances in regard to its needs, business objectives, product range, applied processes and the size of the organization.  Given the fact that risk can trigger catastrophic results when unmanaged, every aerospace process must have the ability to reduce the occurrences and impacts of unacceptable risks, if not eliminate them entirely. And a risk management process is the only consistent way to assess risks and quantify when they are acceptable risks or when action is required.

Benefits to companies that incorporate risk management through ISO and AS quality standards include:

  • An increased probability of meeting schedules, budgets and production objectives
  • The means of making management proactive instead of reactive to risk issues
  • An increased awareness across the organization to recognize and mitigate risk
  • Reduced warranty and field complaints
  • Reduced supply chain risks
  • An increased ability to successfully plan, manage and implement changes (whether customer, supplier or self-initiated)
  • An increased ability to comply with laws, regulations, and customer requirements
  • An enhanced capability to track financial expenditures to poor results, and
  • Improved relations with stakeholders who see the results of quality and risk management in place

AS9100 Change Announced

Big news for AS certified clients from the International Aerospace Quality Group (IAQG), which is overseeing the writing and release of the new 2016 AS standards.  There is a significant change regarding the implementation and upgrade timing for companies required to transition to the new AS standards.

AS9100

 

After June 15, 2017 all AS audits must be to AS9100:2016, AS9110:2016 and AS9120:2016.  There will be no more audits to the current AS standards after that time.  Certified companies must upgrade on their regularly scheduled annual audit after June 15, 2017.  For example, if a company just had an annual audit June 20, 2016, then they must upgrade to the new standard during their June 20, 2017 audit.  Delaying transition until the June 2018 audit would not be an option.  The final transition audit deadline for the AS9100D series is June 15, 2018.

 

Planes, Change and Automobiles

transition sign

Tight Transition Timelines

Important updates regarding the Aerospace and Automotive industries were shared with SimpleQuE representatives attending the Smithers Quality Assessment’s annual conference on July 14th.  Speakers from the International Automotive Oversight Bureau (IAOB) and International Aerospace Quality Group (IAQG) provided insight into the upcoming changes to the IATF 16949 and AS9100 standards.  All are targeted for release in the last 4 months of this year, with certification bodies ready to audit to the new standards in the first quarter of 2017 for AS and possibly later for TS.  Transition timelines are going to be exceedingly tight.  Here are a few key takeaways:

IATF 16949:2016

  • The IAOB recommends TS certified companies upgrade to ISO 9001:2015 now, prior to upgrading to TS. The benefit will be less audit days when upgrading to 16949:2016
  • The IATF is still working on how it can have more time beyond the September 15, 2018 expiration, before IATF 16949:2009 expires and the 16949:2016 standard has to be implemented.
  • The IAOB was very careful not to say the new TS standard is based around ISO 9001:2015, but said it does follow the 10 clauses from Annex SL. They were also careful not to call the new standard IATF 16949:2016.
  • There are only 4,353 active TS certificates in the US, down from a high of almost 6,000 prior to the recession.
  • OEM’s are raising the bar with the new TS standard and performance is key for the automotive supply chain.  (See our previous post – Shifting into High Gear for what we learned about the Rome, Italy meeting with TS stakeholders earlier this year.  Many things are still changing from that meeting, so expect differences with the final release.)

AS9100:2016

  • AS is accelerating requirements to upgrade. After June 15, 2017 no certification body can perform audits to the current AS standards.  After 6/15/17 all scheduled surveillance and recertification audits must be to the new 2016 standard.
  • This prevents companies from waiting until the last minute to upgrade because there are a limited number of AS certification body auditors and it would not be possible to get everyone upgraded near the deadline.
  • There is concern regarding the extremely tight timelines. Companies have a shorter amount of time to retrain internal auditors, conduct audits, do a new management review, and get upgraded at the next scheduled audit after 6/15/17.  Watch for simpleQuE’s aerospace training on the new standard.
  • Here are two scenarios of the new timing requirements communicated by SQA:
    • If your last registrar audit was June 1, 2016 then you could delay upgrading to your June 2018 annual audit.
    • If your last registrar audit was June 21, 2016 then you must upgrade during your June 2017 annual audit, and have no choice to delay until 2018.

Keep up with simpleQuE’s blog posts and training courses for the latest information affecting the quality world.

AS9100:2016 – Does your aerospace company effectively monitor external providers? By Jim Lee

ball-bearings, cogwheels and gears, titanium and steel, aerospace parts

The Aerospace world is still anticipating release of the 2016 AS 9100 Series in October. In previous blogs I’ve covered some of the revisions to give you a more in-depth look at what’s to come and how it may impact your AS quality management system. One significant change is the requirement for greater control of external providers and sub-tier suppliers, based on risk. For example:

  • Delegations in clause 8.4.2 require you to periodically monitor the external provider’s delegated verification activities. Auditors are going to look to see that you don’t just receive and file Certificates of Conformance or raw material certs or FAI’s.  Companies will need to determine what monitoring means to you based on risk.   This clause also requires that you implement a process for any external test reports, to evaluate the data in those test reports to confirm that the product meets requirements.  If raw material is a significant operational risk (a critical item), there needs to be a process to validate the accuracy of test reports.
  • Verification activities in clause 8.4.2 will require inspections or periodic testing when there is high risk of nonconformities including counterfeit parts. Periodic testing of raw materials has returned to the standard.  The level and frequency is based on risk, historical problems, and being prone to counterfeit parts.
  • Control of externally provided products and services in clause 8.4.1 will require your company to understand the risks to determine whether your supplier’s interaction with your sub-tier suppliers is as robust as expected and needed.

 

For more information about the new standard the International Aerospace Quality Group (IAQG) and American Aerospace Quality Group (AAQG) offer an AS9100:2016 Series Revision Overview.

A Sneak Peek at AS91XX:2016

Aircraft on runway

AS91XX:2016 SNEAK PEAK

The new aerospace standards are due to be released in October. The changes apply to AS9100 for manufacturers, AS9110 for aircraft maintenance, AS9120 for distributors, and AS9115 for software. Tied with these is AS9101 primarily for the certification bodies on how to audit these standards. There are additional AS standards, some are guidance documents, like AS9146 Foreign Object Damage/Debris (FOD) Prevention, which are also changing.

SimpleQuE can help you to prepare and understand the impact to your organization. Therefore, over the coming weeks, we’ll cover the significant changes to expect with the release.

  1. There is a new clause 8.1.3 specifically focused on product safety and the workers’ impact. The added requirements to be aware of:
    1. Their contribution to product or service conformity (always in ISO, but could extend to temps, subcontractors and suppliers in your control)
    2. Their contribution to product safety (new, and includes flow down to external providers)
    3. The importance of ethical behavior (new, and includes flow down to external providers)

Product safety should be considered throughout the product lifecycle. Product lifecycle extends outside of the control of your company and includes supply chain, customers and end users. Our understanding is that auditors will be looking to see that you know where your parts are used, what the expected lifecycle may be, which can include obsolescence, and that your planning process really addresses and considers product safety through the entire product lifecycle.

  1. There is a new clause 8.1.4 specifically for counterfeit parts prevention, including suspect counterfeit parts. Counterfeit parts are typically focused around electronics, circuit boards, and fasteners. It can include raw materials and traceability. People don’t often think about counterfeit parts with intellectual property and trademark infringement. The standard wants to see that counterfeit parts, obsolescence of product, and risk are considered through engineering, purchasing, planning, control and inspections. It is also touched in other clauses 8.1 a, 6.3, 8.2.2 d, 8.3.3 f, 8.4.1, 8.4.2, 8.4.2 d, 8.4.3 k, 8.5.2 Note, and 8.7.1.

These are just a few of the changes. We’ll continue to publish more, so keep watching.