September 26, 2002

1. Process–Product Integrity Audit (PPIA) NASA Engineering Quality Audit (NEQA) Update Presented by: Ralph Kolts September 26, 2002

2. Agenda • Some Background • The Genesis of PPIAs • PPIA Observations, Purpose, and Scope • ATK Thiokol Propulsion’s PPIA and NEQA Experience • Lessons Learned/Enhancements • NEQA Results and Recommendations • Supplier PPIAs • Experience • Challenges and Action Plan

3. Background • During disassembly operations of a critical Space Shuttle component, it was discovered that some of the sub-assemblies were either missing or the wrong configuration • The part had gone through six different verification inspections without detection • Launch delays resulted while other units were disassembled and inspected • A “stand down” was ordered while a joint contractor/NASA team performed a line-by-line review of all production planning and related documents • Two problems surfaced: • Planning documents did not always reflect actual shop practices or engineering requirements • Operators and inspectors did not view their stamps as a personal warranty that the planning instructions had been followed

4. Stand Down / PPIA Observations • People perform tasks in a manner “they believe” makes sense and they are aware of things “they believe” are important. • Technicians performed tasks to the best of their ability, but they had given up on the change process • Is the change request system responsive and timely? • Work instructions too detailed for craftsmen • Techniques based on tradition, handed down from craftsman to craftsman • Stamps and signatures used primarily as place-holders • How strong is “Stamp Warranty” awareness? • Do people really feel free to stop because they can’t perform to literal text? • In-process redlines not incorporated • Large number of sequence changes identified • How often does Engineering review the process with performing personnel? Are new tasks proofed? Do reworks/inserts get the same type of review and proofing?

5. Stand Down / PPIA Observations • Keys to a robust process: • Pay attention to the changes – both intentional and unintentional • Engineering must work closely with operators and be responsive to problems and ideas • High potential opportunities: • Repetitive tasks involving large number of small pieces • New tasks inserted into a standard set of tasks (especially time, temperature, pressure, materials) • Long time span between repeat application of task • High level of task variation permitted • Limited direct interface between personnel setting requirements and personnel performing tasks • High dependence on inspection control of the task • Low perceived consequences of not following literal text

6. Purpose of a PPIA • Match paperwork and practices – no disconnects • Involves the people writing the planning and doing the work • A structured approach • Table top • Process review • Periodic validation and systems assessment • Reinforces stamp warranty

7. Scope of a PPIA People Facilities and Tooling Components Raw Materials Work Instructions Equipment Support Materials and Documents Drawings and Specs Process and Product Integrity

8. ATK Thiokol Propulsion’sPPIA and NEQA Experience

9. PPIAs at ATK Thiokol Propulsion • PPIA program in place since 1993. Target is to audit 25% of RSRM processes each year. • PPIA effort offers intangible benefits • Team building • Re-enforces values • Identifies and corrects system weaknesses • Reduces process creep • Six steps to accomplish a PPIA review: • Kickoff meeting • Paper review • Live review • Table top with other affected team members • Management review • Incorporate changes/improvements

10. ATK Thiokol Propulsion’s PPIA History

11. Lessons Learned - Enhancements • Need to periodically reinvigorate PPIA efforts • Ensure personnel are given the time and priority to perform PPIAs • Recent enhancements: • Leadership is now a required team member • Strengthened involvement of operators (minimum of 2) • Included an independent team facilitator • Added a minimum quorum for team to proceed • Strengthened work team involvement by convening a table top review of the findings with other affected crew members • Updated training for all PPIA team members

12. NEQA Results

13. NEQA Systemic Recommendations • PPIA culture is alive and well – but: • Operators/teams too close to processes to recognize that specifics in planning are missed • Categorization of findings has become too controversial, emotionalizes the process, and dilutes overall objective • Conversion of automated shop planning appears to create opportunity for errors • On-floor opportunities difficult to sync with NEQA week • Support materials lack specifics in planning

14. Supplier PPIA Experience

15. Conducting a Supplier PPIA • ATK Thiokol Propulsion PPIA Mentor assigned • Supplier Orientation • Supplier Implementation Plan • Assignment of Redline Teams and Redline Team Training • Phase I – Conducting the Audit • Table Top Review • Process Review • Findings, Categories, and Corrective Action • Phase II • Final Report

16. Supplier PPIA Experience • There have been very effective and successful supplier PPIA results: • 19 suppliers completed PPIAs (see following pages for details) • A total of 86 different processes audited • Over 1500 findings identified and fixed – an average of 83 potential problems corrected • 83% of the findings are Category 3 (minor) and 17% are Category 2 (fix before next use); no Category 1 findings (flight safety) • Overall, these PPIAs were extremely successful with significant results: many disconnects found and fixed, process ownership strengthened, communication improved, greater consistency achieved, and process repeatability enhanced • In other cases, various challenges have resulted in half hearted commitments, false starts, and missed schedules

17. Supplier PPIA History NUMBER OF FINDINGS NUMBER OF PROCESSES SUPPLIER PRODUCT ICI Fiberite ASRC GSAT Parker Eaton AMPAC Robrad Tayco Courtaulds Dodge Regupol ALCOA Nylok Accurate Cal Doran Kirkhill STADCO Cytec Fiberite AMPAC Glenair TOTAL 6 2 9 5 2 7 2 2 5 9 6 1 5 1 4 9 6 6 3 86 Carbon Cloth Polymer Fasteners Seals/Gaskets Arming Monitor Oxidizer Vent Port Plug Heater/Sensor Polysulfide Cork Sheet Aluminum Powder Nylon Fastener LSC Heat Treat Rubber Machining Glass Cloth Oxidizer Heater Cables 127 293 26 62 90 314 52 89 30 73 31 21 64 14 36 38 50 161 7 1578

18. Categories of Supplier PPIA Findings

19. Challenges • There have been missed or slipped PPIA commitments and schedules. A number of factors contribute to this: • Contracts are being completed, materials are being phased out, new equipment/facilities/processes are being qualified, key personnel have changed • In some cases we have not received the full commitment by the supplier. Many suppliers are going lean – they don’t have the time or people to commit to the PPIA. In other cases, we’re a very small percent of the suppliers’ sales • The PPIA is a considerable commitment of resources for the supplier, including time, people, and . . . money

20. Supplier PPIA Action Plan • Actions have been taken to re-energize: • Benefits discussed at Supplier Symposiums • PPIA mentor training class • PPIA web page • Suppliers identified and targeted for PPIAs • Quarterly status review meetings • Further actions: • Keep awareness, visibility, and commitment high • PPIAs will be a component of overall supplier management plans • We are looking for a good opportunity to pursue funding options or other incentives to assist the supplier in offsetting costs