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Aerospace Systems

SUB-TIER
SUPPLIER MANAGEMENT
GUIDE

SG-0130

Revision Date: 07/13/15

Joseph F. Jackson
Director, Supplier Quality
Northrop Grumman Aerospace Systems
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REVISION RECORD

The latest issue to this guide may be confirmed by viewing the OASIS web site at
https://oasis.northgrum.com

Revision Date Revision Date Revision Date

Original Issue 03/24/04
Rev A. 02/29/08
- 1/3/11
- 8/30/12
7/13/15

Primary Change Summary

Maintenance review, no updates to processes

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Table of Contents

Chapter Page

1.0 Overview 1
2.0 Contract Flow-down by First-tier Suppliers 1

3.0 Approval of Sub-tier Suppliers 2

4.0 Special Process Approvals 3

5.0 Accessing OASIS 3

6.0 Review of Manufacturing Plan 4

7.0 First Article Inspection 5

8.0 Periodic Product/ Process Audit 5

9.0 Product Acceptance 6

10.0 Root Cause Analysis and Corrective/Preventive Action 7

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1.0 Overview

Scope

This document provides guidance to suppliers of Northrop Grumman Aerospace

Systems Sector (hereafter referred to as Northrop Grumman) for the management
of sub-tier suppliers within their supply chain to ensure purchase order and
technical requirements are maintained. The guide provides an overview of sub-
tier management activities for a variety of commodities and processes. Each
supplier should determine the level of implementation that is appropriate for the
various suppliers in their supply chain.

Use of additional procedures and/or specifications may also be required to assure

complete task compliance. Throughout this guide, the term First -tier Supplier
is used to refer to the Company contracted by Northrop Grumman for parts or
services. The term, Sub-tier Supplier, refers to any supplier in the First-tier
Suppliers supply chain.

Areas covered in this guide include but are not limited to Contract Flow-down by
First-tiers, approval of sub-tier Suppliers, accessing OASIS, Manufacturing
Planning, First Article Inspection, Product Audit, Product Acceptance, and Root
Cause Analysis and Corrective/ Preventative Action.

General

It is the responsibility of a first-tier supplier to ensure that all requirements and

technical documentation imposed via the Northrop Grumman purchase order are
contractually flowed down to each sub-tier supplier and are adhered to.
Responsibility for the acceptance of the final deliverable product to Northrop
Grumman cannot be delegated to any sub-tier supplier unless supplier establishes
delegation requirements and maintains the delegation list. Additional acceptance
inspection may be required by Northrop Grumman source inspection and/ or
government source inspection as directed by the purchase order.

2.0 Contract Flow down by First-tier Suppliers

Both ISO 9001 and AS9100 require suppliers to have purchasing information that
describes the product to be purchased. In addition, Northrop Grumman Supplier
Quality Assurance Requirements (SQAR) mandates that the applicable quality
elements be contractually imposed throughout the supply chain. As such, the first-
tier supplier shall review SQAR for all requirements that shall be incorporated in
their purchasing information. Below is a list of items to be incorporated in the
sub-tiers purchase order.

Quality Management System, such as ISO 9001, AS9100

Special process approval requirements
Customer Approved Special Processor List (ASPL)

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Customer approval for use and control of digital data (ref: SQAR
Supplement)
First Article Inspection requirements (ref: AS9102)
Variation Management of Key Characteristics (AS9103)
Statistically valid sampling plan
Source inspection vs. receiving inspection
Engineering drawing for dimensions, finish, materials & process
requirement
Process specification revision and associated EOs per OASIS
Drawing revision, as required by customer purchase order
Right of access by the direct customer, their customer, and authorities to
all facilities involved in the purchase order and to all applicable records

3.0 Approval of Sub-tier Suppliers

Suppliers to Northrop Grumman are encouraged to utilize sub-tiers that are

certified to ISO 9001:2000 or AS9100 by a recognized 3rd party Certification
Body (CBs) agency as recognized by ANAB or RABSQA. As a minimum, sub-
tiers throughout the supply chain shall be compliant to the above quality
management systems.

As a minimum, suppliers should perform

Onsite evaluation in lieu of mail-in survey.
Periodic on-site surveillance to ensure continued compliance to industry
standards, engineering specifications, special process requirements, and
appropriate record keeping.

Suppliers may utilize quality system evaluation checklists that are available on
OASIS web site (ref: https://oasis.northgrum.com) as an aid in conducting on-site
verification reviews.

If a sub-tier has been delegated for product inspection on behalf of the supplier,
additional oversight should be incorporated into the process.

In addition to initial and periodic process verification reviews, first-tier suppliers

shall have a sub-tier performance reporting process that includes, at a minimum:
Quality and delivery with defined thresholds
The ability to monitor customer satisfaction as a performance metric
Heightened inspections with poor performing sub-tiers
Recovery or Exit plans from poor performing sub-tiers where
applicable.

An Approved Supplier List (ASL) should be maintained. The first-tier supplier

should have a formal process to restrict future procurement with disapproved sub-
tier suppliers to ensure only approved sub-tier suppliers receive purchase orders. .

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Sole or directed sourcing does not relieve the first-tier supplier from ensuring that
sub-tier suppliers shall meet quality management system expectations and
product/ processes requirements.

4.0 Special Process Approvals

Special processes for production and service provision, where the resulting output
can not be verified by subsequent monitoring or measurement, must be evaluated
and qualified prior to manufacturing.

Northrop Grumman and its customers have identified processes that require
increased focus through validation and control. The list of NGAS/ customer
controlled processes and approved Special Processors (ASPL) are located on
OASIS (ref: https://oasis.northgrum.com). First-tier suppliers and their sub-tiers
are responsible to ensure that only approved process sources are used.

Customer approval does not assure nor imply that work performed by a processor
listed on the ASPL is acceptable. First-tier suppliers and their sub-tier suppliers
are responsible to assure that a processor meets all process specification
requirements. As such, it is important that the first-tier supplier confirm
compliance through periodic process validation audits. Process checklists are
available from Northrop Grumman. For additional information on process
checklists, you may consult with Northrop Grumman SQ Field personnel or
Process managers.

Although special provisions are granted to first-tier suppliers with design

authority to approve their own internal processes or their sub-tier suppliers, they
are strongly encouraged to attain Nadcap certification.

5.0 Accessing OASIS

Northrop Grumman provides a supplier website (OASIS) as a ready reference for

technical, quality, and contractual information. This website can be accessed
through the following web address: https://oasis.northgrum.com

Information available on the system includes the following:

Approved Special Processors (Northrop Grumman ASPL)
Links to the Boeing D1-4426
Links to LMA QCS001
Platinum Source Program information
Supplier Scorecards
SQAR Supplier Quality Assurance Requirements
The table of contents for materials & process specifications
The text of process specifications (requires a password for each program)
Purchase Order terms and conditions

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Purchase Order Standard notes
Access to Oasis EDI

6.0 Review of Manufacturing Plan

Northrop Grumman recommends that suppliers periodically validate the following

at their sub-tiers:

6.1 Drawing Requirements

Material requirements
o Size, alloy & temper
o Mill certification for raw metallic materials
o Non-destructive Testing (NDT)/ Ultrasonic Testing of raw stock
o Grain direction
o Qualification of forging / castings
o Optional material or substitution
Flag notes/ general note
Dimensions / key characteristics
Fracture Critical Traceability, Fracture Critical, Maintenance Critical &
Fatigue Critical

6.2 Special Processor Requirements

Ensure that the latest process specifications including the referenced sub-tier
specifications, as posted on OASIS, are called out on the Manufacturing Plan. In
addition, validate the following as a minimum:
When permitted by the specification, do the sub-tier suppliers select
appropriate process options?
When applicable, did Northrop Grumman approve their NDT technique?
Ensure the processing sequence is correct from starting material to finish
Heat treatment is performed either after forming or machining

6.3 Inspection

Is either receiving or source inspection required for raw material or sub-tier

processes?
Is in-process inspection called out?
Are all final inspections specified for?
Dimensions/ Key Characteristics
Non-destructive Testing
Tensile testing, when required
Hardness
Conductivity

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7.0 First Article Inspection (FAI)

Northrop Grumman requires the use of the Society of Automotive Engineers

(SAE) Aerospace Standard AS9102 (Aerospace First Article Inspection
Requirement) throughout the supplier chain. Therefore, the first-tiers shall
validate the use of AS9102 at their sub-tiers.

8.0 Periodic Product/ Process Audit

In order to ensure that sub-tier suppliers continue to produce acceptable product,

periodic Product/Process Audits should be performed at each sub-tier supplier.
The audits should be performed at the sub-tier suppliers facility to allow access
to in-process hardware, work instructions, shop travelers and procedures
governing the processes used by the supplier. The frequency of audits should be
determined and documented in the first-tier suppliers procedures.

Northrop Grumman recommends the following quality elements be reviewed

during the Process/Product Audit:

Conformance of product to purchase order requirements.

Conformance of product to drawing and process specification
requirements (dimensions, hardness, conductivity, wet tape test, etc.).
Conformance of product to acceptance test procedures (ATP)
requirements.
Witness and verify critical process steps against the specification
requirements to ensure compliance for heat treat, NDT, cleaning, plating,
priming, etc.
Verify that an adequate first article inspection was completed for the
hardware.
Verify that the sub-tier supplier is using approved sources for parts/
processes they contract out (where required).
Verify raw materials used are acceptable, properly documented and are
traceable.
Verify the adequacy of the production planning used to manufacture
hardware.
Verify the adequacy of tooling used in the fabrication and testing of
hardware.
Verify that packaging is appropriate and adheres to all applicable
specifications.
Verify the appropriate use of the suppliers MRB process as applicable.

Suppliers may utilize Process/ Product Audit checklists that are available on the
OASIS web site (ref: https://oasis.northgrum.com) as an aid in conducting on-site
audits.

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9.0 Product Acceptance

All suppliers to Northrop Grumman are responsible for ensuring the acceptance of
their products delivered directly to Northrop Grumman or drop shipped to a
separate location. Do not rely solely on the integrity of a sub-tier suppliers
certificate of compliance. The first-tiers shall validate that the sub-tiers perform
all final inspection and testing as required by engineering drawing and
specification referenced in the applicable purchase order. In addition, the sub-tiers
shall maintain the quality record for inspection and testing along with acceptance
criteria.

Northrop Grumman has developed the Supplier Product Acceptance Guide to

assist suppliers in determining if purchase order and technical requirements have
been satisfied. This guide can be found on the Oasis web site (ref:
https://oasis.northgrum.com).

9.1 Sampling Plan

When sub-tiers use sampling plans for product acceptance, the plan shall be
statistically valid and appropriate for use. All suppliers are encouraged to use
ANSI Z1.4 or Mil-Std-1916 when a sampling plan is used in their inspection
process.

9.2 Operator Self-verification Process

One element of product acceptance is the Operator Self Verification process,

which is commonly referred to as Self Inspection System (SIS). The AAQG has
developed standard elements in an Aerospace Recommended Practice (ARP)
document for Operator Self-Verification (ARP 9162) processes within the
aerospace industry. All suppliers are strongly encouraged to use this standard as a
guide when implementing such processes.

9.3 Delegated Acceptance Program

If a delegated acceptance program is administered to accept hardware from a sub-

tier supplier, it is the responsibility of the first-tier supplier to ensure the product
delivered conforms to specified requirements. This may be accomplished through
periodic on-site system evaluations, product conformity audits and independent
(3rd party) inspections/ testing. Prior to granting delegation, the first-tier supplier
shall have a process for removing the suppliers from the delegation process when
degradation is evident. Northrop Grummans Platinum Source Certification
Program can be viewed on OASIS as a process benchmark.

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10.0 Root Cause Analyses and Corrective/Preventive Action

Root Cause Analysis and corrective/ preventive action is a process of finding the
cause for non-conformance and facilitating corrective actions to prevent the
potential of recurrence of an event(s). If left unchecked, it will ultimately lead to
unrealized costs associated with rework, repair, and replacement at all levels of
manufacturing.

Suppliers may utilize the Northrop Grumman Corrective and Preventive Action
Guidelines that is available on OASIS (ref: https://oasis.northgrum.com). This
guide is developed to document Northrop Grummans expectations on Root
Cause /Corrective Action Analysis and Preventive Action Development.