Panel Session: NASA Supplier Assessments: Processes, Results and Lessons Learned

1. Panel Session: NASA Supplier Assessments: Processes, Results and Lessons Learned GSFC’s Supplier Assessments Mike Kelly, Chief Institutional Support Office Supply Chain 2008 Conference October 28, 2008

2. Today’s Presentation • Organization / Team • Purpose and Scope • Process Overview • Approach • Reporting • Other Highlights

3. Safety & Mission Assurance Directorate Goddard Space Flight Center Supply Chain Management Team

4. Supply Chain Management Team • Mike Kelly (michael.p.kelly@nasa.gov) • Charles Kim (charles.k.kim@nasa.gov) • Jonathan Root (jonathan.root@nasa.gov) • Louis Thomas(louis.a.thomas@nasa.gov) • Vic DiMarco(victor.v.dimarco@nasa.gov) • Plus assessors from GSFC and the NASA Contract Assurance Services contract!

5. Supplier AssessmentsPurpose and Scope Purpose: Assess conformance with requirements and monitor improvements to better enable the realization of quality products and services for NASA mission projects Scope includes the Supplier’s implementation of: NASA contractual requirements, including risk management and systems safety Quality Management Standards (IS0 9001:2000 or AS9100,Rev.B) Internal processes / procedures supporting the fulfillment of requirements Government-Industry Data Exchange Program (GIDEP) Alerts Industrial Safety Each assessment is tailored (per Assessment Plan) to address applicable requirements, past findings and any NASA project management concerns

6. Process OverviewGSFC Supplier Assessments • Plan Assessment • Selection Factors • Scheduling and Coordination • Tailored Assessment Plan • Assessment Follow-up • Corrective / Preventive Actions • On-site Verification • Reporting • Knowledge Sharing • Assessment Database • Conduct Assessment • GSFC-led expert team • Strengths and Areas for Improvement • Reporting • NASA Projects • NASA Acquisition Processes • Other NASA Centers / Agencies

7. Assessment Approach Highlights • Assessments conducted by an expert team under GSFC Supply Chain Management leadership • Open communication and coordination before, during and after • Assessment Plan provided in advance for feedback / revision • Daily debriefs and Assessment Out-Brief • Open door for communication of concerns throughout the assessment process • Feedback welcomed! -- Supplier Assessment Team Evaluation Form • Focused on conformance with requirements, strengths (positive comments and commendations), and areas for improvement (non-compliances and observations)

8. Assessment Approach Highlights- continued • Assessment method employs sampling, objective evidence and professional judgment • Coordination / collaboration with GSFC project management, other NASA centers and agencies (e.g., DCMA) and with company’s customers as appropriate • GSFC works closely with suppliers to address assessment results and close Corrective Actions • Assessment Report with documented findings provided for comment/response • Corrective action responses reviewed • Onsite (“eyes-on”) verification usually conducted NASA / Industry Teamwork = Mission Success!

9. Assessment Reporting • Assessment team documents non-compliances, observations and commendations during the course of the assessment Critical Noncompliance:Failure to fulfill or comply with requirements that could have serious safety and mission consequences (e.g., loss of life, serious injury to personnel, damage to high-value property, defective mission-critical product) Noncompliance:Failure to fulfill or comply with requirements Observation:A condition or process that conforms with requirements, but warrants improvement based on industry practices Commendation:A condition or process that is considered an industry benchmark • Daily debrief with informal discussion of the day’s activities and plans for the next day • Out-Brief with any draft non-compliances, observations or commendations presented at the conclusion of the assessment • Assessment Report provided for Supplier comment/response • Corrective Action responses and verification reported/shared within NASA

10. Other Highlights • Assessments support the portfolio of mission projects managed by GSFC, examining suppliers at multiple tiers of the projects’ supply chains • Conducted 38 assessments (full & follow-up) in 2007; 39 assessments completed/scheduled in 2008 • In 2009 …. ramping-up assessments to include more lower tier suppliers • Summary trend data from assessments available to suppliers for benchmarking analysis.

11. Discussion Questions?