business management system manual

QAF-211 Template Rev. F Reference Document: QAP 1.4 DCN 2019-162 Release Date: 10/05/2017 Dept.: Quality

.

Business Management System Manual

DRAFT P. Krottapalli Leach International Corporation

Quality David Munro General Manager Alex Johnstone DOCUMENT TITLE:

Business Management System Manual DOC NO.

512-0000-000-000 REV.

AJ Release Date: 12/06/2019 SHEET 1 OF 38

To prevent the unintended use of obsolete documented information, this document should not be used unless the user has verified this document is current. Current documents are available on the QMS SharePoint database.

Signatures on file.

Leach International Corporation


DOC NO. 512-0000-000-000 REV AJ

Release Date: 12/06/2019 SHEET 2 OF 39

QAF-211 Template Rev. F

DOCUMENT CHANGE HISTORY

REV Page(s) Affected DCN/Description of Change Date Initiator

AI All 2019-160 Complete rewrite Was: Quality Management System Manual Is: Business Management System Manual

10/24/2019 D.Munro

AJ 6 12/13 14 14 4.3.3 P

2019-170 Para 4.3.3.h added to FAA scope Para 5.2.4.h clarified role of site Quality Leader as the FAA PMA Accountable Manager Para 5.2.6 added statement regarding LEACH Leadership appointing Site Quality Leader as FAA PMA Accountable Manager Para 5.2.7 added Quality Systems Manager role as Business Management System Representative Added CAGE Codes

12/3/2019 D. Munro



DOC NO. 512-0000-000-000 REV AJ



Table of Contents

Para Description Page Number

1.0 Introduction 4

2.0 Purpose 4

3.0 Terms and Definitions 4

4.0 Context of the Organization 5

5.0 Leadership 11

6.0 Planning 16

7.0 Support 17

8.0 Operations 23

8.1 Operational Planning and Control 23

8.2 Customer Support - Requirements for Products 25

8.3 Design and Development of Products 26

8.4 Supply Chain – Control of External Providers 28

8.5 Manufacturing – Production Provision 31

8.6 Release of Products 35

8.7 Control of Non-Conforming Product 36

9.0 Performance Review 36

10.0 Improvement 38

Table of Figures

Figure Description Page Number

1 Process Interaction Diagram 9

2 Table of Processes versus AS9100 Requirements 10



DOC NO. 512-0000-000-000 REV AJ



1.0 INTRODUCTION

1.1 LEACH International Corporation designs and manufactures a broad range of high-reliable

power switching and control components and equipment for aerospace, ground vehicle, rail, and

high-end industrial applications worldwide.

1.2 LEACH specializes in combining its leading-edge components with unique design and

manufacturing capabilities to provide custom AC/DC power distribution assemblies such as

primary and secondary power distribution assemblies, relay and central warning panels, GFI

units, thrust reverser control units, ELCUs and smart contactors, wiring integrated assemblies,

windshield anti-ice controllers and weapons release boxes.

1.3 LEACH applies its design, engineering and manufacturing expertise to create solutions-oriented

equipment for power distribution and control.

1.4 Known for design excellence and commitment to quality and reliability since 1919, LEACH

equipment and components are used on thousands of aerospace, military, rail and high-end

industrial applications worldwide in the most severe environments.

2.0 PURPOSE

2.1 The purpose of this Manual is to:

2.1.1 Describe the LEACH International (herein referred to as LEACH) Business Management System (BMS) and how it addresses the requirements of Industry Consensus Standard AS9100, and applicable local, state, national, and international requirements as they apply to a design, manufacturing, and after-market company operating in the Global Aerospace Industry.

2.1.2 Provide a road map of the key business processes and their interactions.

2.1.3 Provide a platform for continuous improvement and the application of risk management.

2.1.4 Outline how customer satisfaction is met through performance to requirements.

3.0 TERMS AND DEFINITIONS

3.1 Key Characteristic

An attribute or feature whose variation has a significant effect on product fit, form, function, performance, service life or producability that requires specific actions for the purpose of controlling variation.

3.2 Critical Items

Items with significant effect on the safety, performance, form, function, performance, service life, or producability that requires specific action to ensure they are managed.

3.3 Interested Parties

Any party with an interest in the organization such as but not limited to suppliers, customers, regulatory agencies, employees, registrars, and shareholders.

3.4 Counterfeit Part



DOC NO. 512-0000-000-000 REV AJ



An unauthorized copy, imitation, substitute, or modified part (e.g., material, part, component), which is knowingly misrepresented as a specified genuine part of an original or authorized manufacturer.

4.0 CONTEXT OF THE ORGANIZATION

4.1 External and Internal Issues

4.1.1 LEACH has determined the external and internal issues relevant to the organization. Those issues and their potential impacts are monitored and reviewed at minimum during the Management Review process.

4.2 Needs and Expectations of Interested Parties

4.2.1 LEACH has determined the interested parties relevant to the organization. LEACH interested parties and their potential impacts to the organization are monitored and reviewed at minimum during the Management Review process.

4.3 Scope of the Business Management System

4.3.1 Certification Model – LEACH operates a campus style Business Management System, with two facilities and the following processes:

Process #1 (Core) Process #2 (Core) Process #3 (Core) Process #4 (Core) Process #5 (Core)

Process #6

(Support)

Process #7

(Support)

Process #8

(Support)CUSTOMER

SUPPORT SUPPLY CHAIN

DESIGN AND

DEVELOPMENT MANUFACTURING AFTER MARKET QUALITY

HUMAN

RESOURCES LEADERSHIP

Buena Park, CA. X X X X X X X X

Tijuan, Mexico X X X X

4.3.2 AS9100 Certification Scope:

OIN – 6111730328

Buena Park, CA. - “Design, Development, Manufacturing, Testing, Inventory Management and Servicing of subminiature, discrete, balanced armature, power and control, and hybrid relays; hybrid products, electronic assemblies, electronic component sockets and electronic power distribution assemblies” Tijuana, Mexico - “Manufacturing, Testing and Inventory Management of subminiature, discrete, balanced armature, power and control, and hybrid relays; hybrid products, and electronic assemblies” Not Applicable to Tijuana, Mexico: a. 8.3 Design and Development – Tijuana location does not perform product design

functions.

b. 8.2 Requirements for Products – Tijuana locations does not receive customer

orders.

c. 8.5.5 Post Delivery – Tijuana does not perform any after-market activities.



DOC NO. 512-0000-000-000 REV AJ



4.3.3 Business Management System Applicability and Boundaries (if not stated, applies both sites):

a. AS9100D:2016 Requirements for Aerospace Quality Management System

b. Nadcap Special Processes

i) Chemical Processing (Buena Park, CA.)

AC7108 Nadcap Audit Criteria for Chemical Processing

AC7108/1 Painting Dry Film Coatings and Sol Gel as a Preparation for Paint

AC7108/4 Solution Analysis and Testing

ii) Welding (Buena Park, CA.)

AC7110 Nadcap Audit Criteria for Welding/ Torch and Induction Brazing and Additive Manufacturing AC7110/6 Nadcap Audit Criteria for Laser Welding

AC7110/12 Nadcap Audit Criteria for Welder/Welding Operator Qualification

iii) Chemical Processing (Tijuana, Mexico)

AC7108 Nadcap Audit Criteria for Chemical Processing

AC7108/1 Painting Dry Film Coatings and Sol Gel as a Preparation for Paint

AC7108/4 Solution Analysis and Testing

AC7108/9 Electroplating and Electroforming

iv) Heat Treatment (Tijuana, Mexico)

AC7102 Nadcap Audit Criteria for Heat Treating Baseline AC7102/5 Nadcap Audit Criteria for Heat Treating - Hardness and/or

Conductivity Testing

AC7102/8 Nadcap Audit Criteria for Heat Treating Pyrometry

v) Welding (Tijuana, Mexico)

AC7110 Nadcap Audit Criteria for Welding/ Torch and Induction Brazing and Additive Manufacturing AC7110/4 Nadcap Audit Criteria for Resistance Welding

AC7110/6 Nadcap Audit Criteria for Laser Welding

AC7110/12 Nadcap Audit Criteria for Welder/Welding Operator Qualification

c. Defense and Federal Acquisition Regulations (DFAR and FAR)

d. IPC/WHMA-A-620 Cable/Wire Harness Assemblies

e. IPCA-A-610 Acceptability of Electronic Assemblies

f. J-STD-001 Requirements for Soldered Electrical and Electronic Assemblies

g. Government-Industry Data Exchange Program (GIDEP)

h. Federal Aviation Administration (FAA)



DOC NO. 512-0000-000-000 REV AJ



i) Part Manufacture Approval (PMA) Advisory Circular 21-43, Part 21.137 Quality System Regulations, Part 21.300’s PMA Regulations, Part 45.15 Park Marking Requirements (Buena Park, CA.)

ii) Repair Station Part 145 / EASA Approval (Buena Park, CA.)

i. Qualified Products Listing (QPL) Testing (Buena Park, CA.)

i) MIL-PRF-83536 Electromagnetic Relays

ii) MIL-PRF-6106 Electromagnetic Relays

iii) MIL-PRF-83726 Hybrid Solid State Relays

j. ANSI ESD S20.20 Quality Management System for Electro Static Discharge

k. AS6174: Counterfeit Material: Assuring Acquisition of Authentic and Conforming Materials

l. AS9146: Foreign Object Damage (FOD) Prevention Program

m. International Traffic in Arms Regulations (ITAR) / Export Administration Regulations (EAR) (QAP 9.0 Trade Compliance)

n. Applicable local, county, state, national, and international regulations for Environment, Employee Health, and Employee Safety (FAC-001 EHS Process).

o. Customer requirements via active contracts, long-term agreements and purchase orders.

p. Commercial and Government Entity (CAGE) Codes:

i) Buena Park, US: 58657

ii) Tijuana, MX: SBCY1

4.4 LEACH Business Management System and its Processes

4.4.1 LEACH has established a Business Management System that uses a process-based approach as a basis for continuous improvement and risk management.

4.4.2 LEACH has established, implemented, and continually improves its Business Management System, including the processes needed and their interactions.

The processes and their interactions are described in Figure 1 – Process Interaction Diagram.

4.4.3 LEACH has created documented information to support the operation of its processes and the effectiveness of the system, and where required by the AS9100:2016 Rev. D standard. Process Overviews are used to describe each process with reference to:

a. Resources needed.

b. Personnel required.

c. Inputs – process – outputs.

d. Metrics for effectiveness.

e. AS9100 requirements.



DOC NO. 512-0000-000-000 REV AJ



4.4.4 Figure 2 – Table of Processes versus AS9100 Requirements, presents the relationship between the processes used within the Business Management System and the AS9100 Rev. D requirements.



DOC NO. 512-0000-000-000 REV AJ



FIGURE 1 – PROCESS INTERACTION DIAGRAM

Receive Material and/

or Customer

Supplied Product

Inspection

ResultsVerification of

Supplied Product?

Return Product and

Manage Supplier

Quality

Inventory

Management and

Preservat ion,

Release of Kits

Inspection (In-Process, FAI,

Final), QPL Testing

Is Product / Process

Acceptable?

Release of Product to

Shipping via Shipping

Inspection and Source

Inspection

Plan Shipments,

Package and Deliver,

Invoicing

Inspection

Results

Control of Non-

Conforming

Outputs / Material

Review Process

LeadershipContext of the Organization

Program ManagementPolicy and Objectives

Improvement, Management Review

LeadershipPerformance Evaluation

Trade/Export ComplianceInfrastructure

Interested Parties, Internal/External Issues

Qu

ality

PP

AP

/AP

QP

Qu

ality

Dir

ectiv

es /

GID

EP

Cal

ibra

tion

Con

tro

l of

Doc

um

ents

/Rec

ord

s

Qu

alityIntern

al Au

dit / Corrective A

ctionS

ampling

Plans

Part M

anufacturer A

ppro

val (PM

A)

Yes

Yes

No

No

Outsourced

Processes /

Managing Work

Transfer

Repeat Order

Receipt, Spares/AOG

Order Request

Purchasing and Supply Chain

Management, Counterfeit Parts

Mitigation

Design

Required?

Design/Develop Product and

Tooling, Create Engineering

Documentation, Software, and

Item Masters. Perform

Qualificat ion, Develop

Configuration Management.

Yes

Support Process #8 – Leadership (Grey)

Support Process #7 - Human Resources (Yellow)

Support Process #6 – Quality (Green)

Core Process #1 – Customer Support (Dark Blue)

Core Process #2 - Design and Development (Purple)

Core Process #3 – Supply Chain (Orange)

Core Process #4 – Manufacturing (Red)

Core Process #5 – After Market (Light Blue)

Customer Warranty

Operator Repair Requests

Review, Negotiate,

Approve New Contract

No

Receive New Order

from Customer

Make or Buy

Buy

Make

PO Review

Sales Order Entry

Planning,

Scheduling, Job

Order Release, and

Production Control

New Production, Special Process,

Rework/Repair, Assembly and Test,

Identification and Traceability, FOd

and ESD Control, EHS Processes

Return Material

Process (RMA)

Master Routings,

Process Specs, and

Test Plans,

Operational Risk

Voice of Customer,

Customer

Sat isfaction

Sales and Marketing

New Business

Development

FAA 145/EASA

Repair

RMA Rework/

Repair

Human ResourcesResource Management/HiringCompetence and Awareness

Training, Certification, Visual AcuityHuman and Physical Factors

Design

and D

evelopm

ent

Cha

nge/C

onfig

uration M

anage

men

t

Ob

sole

scence M

anage

men

t

Develo

p and M

anag

e Co

mp

onen

t Main

tenan

ce

Man

uals



DOC NO. 512-0000-000-000 REV AJ



FIGURE 2 – TABLE OF AS9100 REQUIREMENTS



DOC NO. 512-0000-000-000 REV AJ



5.0 LEADERSHIP

5.1 Leadership and Commitment

5.1.1 General

LEACH Leadership demonstrates its commitment to the Business Management System by:

i) Establishing a Quality Policy an Business Objectives compatible with the scope and context of the business and in line with corporate strategic direction of:

Profitable New Business

Productivity and Cost Improvements

Value Based Pricing

ii) Taking accountability for the effectiveness of the system.

iii) Using a process-based approach, applying risk management, and promoting improvement.

iv) Ensuring the resources required for the system (people, infrastructure, environmental) are made available.

v) Ensuring the Business Management System achieves its planned results.

vi) Communicating to employees the importance of conforming to the requirements of the system and engaging them to contribute to its effectiveness.

vii) Ensuring compliance to FAA Subparts 21.305, 21.310, and 21.320 via the application of:

Internal Auditing,

Management Review,

5.1.2 Customer Focus

LEACH Leadership demonstrates its commitment to customer focus by ensuring that:

i) Customer, statutory and regulatory requirements are determined, understood and met.

ii) Risks and opportunities that can affect product conformity are determined and addressed.

iii) Voice of Customer metrics (product conformity, on time delivery performance, customer feedback, and corrective actions) are monitored and action taken if planned results are not met.

5.2 Policy

5.2.1 Establishing the Business Management System Quality Policy

a. LEACH has established and implemented a Quality Policy that:

i) Is appropriate to the purpose of the organization.



DOC NO. 512-0000-000-000 REV AJ



ii) Provides a framework for setting quality objectives.

iii) Includes a commitment to satisfy applicable requirements.

b. Includes a commitment to improvement.

5.2.2 Business Management System Quality Policy

i) Leach International Corporation (LIC) is committed to delivering solutions to customers around the world. We continuously improve our performance and processes to ensure we meet or exceed our customers’ expectations.

5.2.3 Communicating the Business Management System Quality Policy and It’s Objectives

The LEACH Quality Policy and Objectives are made available to interested parties when requested and communicated within the organization by attachments to employee badges, posting at metrics boards, and discussing on going suitability in management review meetings.

5.2.4 Organizational Roles, Responsibilities, and Authorities

a. LEACH Leadership has defined the authorities and responsibilities for employees via the application of job descriptions within the Human Resources process, a Collective Bargaining Agreement (CBA), and an organizational structure that outlines the reporting alignment of the Leadership team.

NOTE: The latest version of the organizational structure can be requested via LEACH Human Resources (Buena Park, CA) and may be made available based on its intended use.

b. LEACH has established the key roles, responsibilities, and authorities of its leadership team in support of the Business Management System:

c. General Manager (Business Leader)

i) Demonstrate leadership and commitment with respect to customer focus by ensuring customer and applicable statutory and regulatory requirements are determined, understood and consistently met.

ii) Ensure the risks that can impact product conformity and the effectiveness of the Business Management System are determined and addressed.

iii) Provides focus on enhancing and maintaining customer satisfaction. iv) Maintains a quality policy and objectives appropriate to the purpose and context

of the organization and drives the strategic direction and continual improvement of the business.

v) Determines and provide for the resources needed for the establishment, implementation, maintenance and continual improvement of the Business Management System.

d. Engineering Leader

i) Establish, implement and maintain a design and development process that is appropriate to ensure subsequent provision of products that meet design intent and customer requirements.

ii) Manage product configuration, product obsolescence, and Identify, review and control changes made during or subsequent to the design and development of products to ensure there is no adverse impact on product conformity.



DOC NO. 512-0000-000-000 REV AJ



iii) Support investigations of customer product conformity returns and in-service failures.

e. Production Leader

a. Manufacture, assemble and test product to customer and internal requirements as defined via Job Order travelers and process specifications via the application of effective and efficient use of resources.

b. Ensure manufacturing, assembly and test operations are performed under the controlled process requirements provided by Manufacturing Engineering.

c. Apply Lean Manufacturing and Continuous Improvement Methodologies to the flow of product and use of processes.

f. Supply Chain Leader

i) Use customer demand, forecasted demand and product engineering item masters to determine the requirements (technical, quality, and delivery) for materials provided by approved suppliers for the manufacturing, handling, packaging and preservation of products, and plan the purchase of those materials.

ii) Plan, implement and control processes for the prevention of counterfeit product or material.

iii) Manage a register of approved suppliers and manage their on-time delivery and delivered quality of approved suppliers.

iv) Provide Leadership Team an analysis of on time in full (OTIF) performance with root cause and actions.

g. Customer Support Leader

i) Share monthly customer scorecards relating to quality and delivery performance and drive actions to improve performance.

ii) Provide customer feedback. iii) Coordinate receipt of customer demand via purchase order activity, review of

requirements, sales order demand entry into ERP, and recognition of purchase orders.

h. Quality Leader

i) Demonstrate leadership and commitment with respect to customer focus by ensuring customer and applicable statutory and regulatory requirements are determined, understood and consistently met.

ii) Provide for systems that ensure the conformity of product externally provided, and product manufactured internally (prior to release for shipment).

iii) Manage corrective action activity, management review process, control of non-conforming product process, internal audit process, and Business Management System document control.

NOTE: LEACH Leadership has assigned the site Director of Quality (Quality Leader) as the FAA Part 21 Accountable Manager with responsibility and authority over all production operations conducted, including but not limited to:

Ensuring compliance to FAA Subparts 21.305, 21.310, and 21.320 via the application of Internal Auditing, Management review, and escalation of



DOC NO. 512-0000-000-000 REV AJ



violations of FAA regulations to LEACH Site and Corporate Leadership and local FAA MIDO Aviation Safety officials.

Serving as the primary contact with FAA MIDO Aviation Safety Office.

Confirming all procedures required by Part 21.308 are in place and followed..

Coordinating approval (and re-approval upon revision) with FAA Aviation Safety MIDO Section AIR-873 of Business Systems Documents identified via Part 21 Regulation Quality System Checklist.

Ensuring LEACH satisfies the applicable requirements of FAA subchapter C, Aircraft.

Notifying FAA MIDO Aviation Safety Office in writing when any changes to manufacturing facilities or quality system that may affect the inspection, conformity, or airworthiness of its PMA article(s) occurs.

i. Program Management Office Leader

i) Plan and manage product and service provisions in a structured and controlled manner including scheduled events performed in a planned sequence to meet requirements at acceptable risk, within resource and schedule constraints

ii) Ensure the output of planning is suitable for the organization’s operations iii) Determine the stages and controls for design and development iv) Apply controls to the design and development process to ensure the results to be

achieved are defined, reviews are conducted to evaluate the ability to meet requirements, verification and validation activities are conducted

v) Implement a process with criteria for notifying customers prior to implementation about changes that affect customer requirements

j. Manufacturing Engineering Leader

i) Define the requirements for production provision and necessary control conditions for manufacturing processes, testing, and inspection via the application of job order travelers and process specifications.

ii) Ensure the availability and use of suitable monitoring, measuring and testing devices.

iii) Ensure the use of suitable infrastructure and environment for the operation of processes.

iv) Establish the criteria for workmanship. v) Establish the criteria for prevention, detection and removal of foreign objects. vi) Establish the criteria for prevention of product damage via Electro Static

Discharge. vii) Establish, implement and maintain a process to plan and control the temporary or

permanent transfer of product lines.

k. After Market Leader

i) Responsible for activities that support processing return goods. ii) Manage the FAA Repair Station activities as described in the LEACH Repair

Station Training Manual (RSTM) and Repair Station Manual/Quality Control Manual (RSM/QCM)



DOC NO. 512-0000-000-000 REV AJ



iii) Taking appropriate action for coordinating investigations of product failures or rejections under warranty provisions.

l. Human Resources Leader

i) Provide the persons necessary for the effective operation of the Business Management System in line with annual forecasted budget and business objectives based on job descriptions and collective bargaining agreement.

ii) Coordinate site training and certifications events and requirements and retain associated records.

m. Sales / Marketing and New Business Development Leader

i) Develop new business in line with corporate strategy and site goals and objectives

ii) Lead sales and marketing program and sales team iii) Manage Business Unit Management (BUM) Process and BUM Leaders

n. Trade / Export Compliance Leader

i) Communicate export-import requirements to functional organizations

ii) Obtain trade approvals from government agencies and maintain records.

iii) Support the use of automated solutions in support of trade compliance.

iv) Maintain knowledge of trade compliance regulations for the organization.

v) Stop transactions if there is a concern of unlawful trade compliance activity.

vi) Report all potential trade compliance violations to corporate leadership.

5.2.5 LEACH Leadership team has the authority and responsibility to:

a. Ensure the system conforms to ISO9000:2015 / AS9100:2016 Rev. D, customer, statutory and regulatory requirements.

b. Ensure that processes deliver their planned outputs.

c. Report the performance of the system and opportunities for improvement.

d. Ensure the promotion of customer focus.

5.2.6 LEACH Leadership has assigned the site Director of Quality (Quality Leader) as the FAA Part 21 Accountable Manager.

5.2.7 LEACH Leadership has assigned Quality Management Systems Manager as the Business Management System Representative, with responsibility and authority for oversight of the Business Management System, and with organizational freedom and unrestricted access to LEACH Leadership to resolve quality issues.

5.2.8 LEACH Leadership has assigned a member of the Quality Department Management Team as the representative for the Government-Industry Data Exchange Program (GIDEP), with responsibility and authority for sharing technical information.

NOTE: LEACH Trade and Export Compliance requirements are always met when sharing technical datasets with external bodies.



DOC NO. 512-0000-000-000 REV AJ



6.0 PLANNING

6.1 Actions to Address Risks and Opportunities

6.1.1 Through the understanding of external versus internal issues, the determination of needs and expectations of interested parties, the identification of process risks and opportunities, and the deployment of improvement methodologies, LEACH Leadership has established a platform by which it achieves planned results by enhancing desired effects (opportunities) and preventing or reducing undesired results (risks) and thereby achieves improvement of the Business Management System.

6.2 Business Management System Annual Objectives

6.2.1 LEACH Leadership establishes Business Objectives and Key Performance Indicators at the beginning of each fiscal year (October thru September) and develops associated improvement projects tracked by process owners. The objectives developed are:

a. Consistent with the LEACH Business Management System Quality Policy and corporate goals and objectives.

b. Specific, Measurable, Attainable, Results Oriented, and Time Based (SMART).

c. Based on customer, statutory and regulatory requirements where applicable.

d. Assigned responsible and accountable ownership.

e. Communicated within the organization by:

i) Reviewing at Leadership Staff Meetings.

ii) Including in Management Reviews.

NOTE: Business Management System objectives targets are considered proprietary and are shared externally to LEACH only when approved by Leadership.

6.2.2 Quality Objectives

a. LEACH Leadership has established a set of overarching Quality Objectives:

i) On Time Delivery to Customers

ii) Product Conformity to the Customer

iii) Customer Support

b. Quality Objectives targets are:

i) Established at the beginning of each fiscal year (October thru September).

ii) Specific, Measureable, Attainable, Results Oriented, and Time Based (SMART).

iii) Assigned responsible and accountable ownership

iv) Communicated within the organization by reviewing at Leadership Staff Meetings and Management Reviews.

NOTE: Quality objectives targets are considered proprietary and are shared externally to LEACH only when approved by Leadership.



DOC NO. 512-0000-000-000 REV AJ



6.3 Planning of Changes to the Business Management System

6.3.1 LEACH Leadership carries out changes within the system in a planned manner via leadership decisions made during Management Reviews and Staff Meetings, taking into consideration:

a. The purpose and consequences of the change.

b. Maintaining the integrity of the Business Management System.

c. The availability of resources.

d. Responsibilities and authorities.

7.0 SUPPORT

7.1 Resources

7.1.1 General

a. LEACH Leadership plans the resources required for the maintenance and improvement of the Business Management System via an annual site budget process with adjustments made based on on-going re-forecasted data, capabilities of and constraints on existing resources, and what needs to be procured form suppliers.

7.1.2 Escalation of Issues by Employees (QAF 1.7 Escalation Process)

a. Leach Leadership has established an employee escalation process that allows for employee to escalate issues potentially impacting product conformity or the effectiveness of the Business Management System to Leadership for resolution or corrective action.

7.1.3 People

a. People resources are planned based on a yearly site budget process with adjustments made via leadership meetings based on customer program requirements, backlog, and site performance metrics (on time delivery, overtime, past dues, etc.). LEACH Human Resources is responsible for onboarding people resources per the budget.

7.1.4 Infrastructure

a. LEACH uses a capital expenditure process (CAPEX) to plan the acquisition of key site assets of equipment, buildings, utilities, and information technology hardware/software to support Business Objectives.

b. LEACH Information Technology provides and maintains the network data infrastructure security and system password process necessary to assure data integrity, data security, and data restoration.

c. The LEACH site infrastructure and key equipment assets are maintained via a planned preventive maintenance program with repairs performed by suppliers, OEM’s, and internal maintenance resources (FAC 000 Total Productive Maintenance Process).

d. In the event of a major disruption to its business, LEACH Leadership has prepared and maintains a Facility Recovery Plan for both of its sites (FAC 003 / 003-LIMEX Facility Recovery Process).



DOC NO. 512-0000-000-000 REV AJ



7.1.5 Environment

The Leadership team plans and provides a work environment suitable for the operation of the Business Management System Processes and to achieve product conformity, with consideration for the following human factors:

i) Social factors via new employee orientation and Business Management System Awareness.

ii) Psychological factors including, cafeteria and break rooms, paid vacation and sick days, and a co-payed benefits program that includes medical, dental, vison, life, retirement savings, and employee assistance program.

iii) Physical factors via temperature and humidity-controlled work areas, appropriate lighting to perform work and related inspections, uniforms and smocks, ergonomic work station assessments, and personal protective equipment (such as but not limited to protective clothing and uniforms, safety shoes, safety glasses and hearing protection)

7.1.6 Monitoring and Measuring Resources (QAP 4.1 Calibration Process)

a. Measuring and monitoring equipment are selected to produce reliable results when verifying conformity of products via inspection or test.

b. Measuring and monitoring devices used to accept product or process in manufacturing, inspection, and test operations are calibrated, assigned a unique device number, and tracked using a register of devices. The register of devices includes but is not limited to:

i) Equipment type.

ii) Unique device number.

iii) Location assigned or status if device not located.

iv) Calibration method (based on OEM recommendations).

v) Calibration frequency (based on OEM recommendations)

vi) Calibration acceptance criteria (based on OEM recommendations)

vii) Calibration results.

c. Calibration of measuring and monitoring devices is performed to national standards using either suppliers or internal calibration lab assets in a controlled environment (temp and humidity).

d. The measuring and monitoring device register is utilized as the basis for a recall process used to notify the organization of measuring and monitoring devices that are due for calibration.

e. Where applicable, measuring and monitoring devices when in use are safeguarded from adjustment, damage or deterioration that would invalidate the calibration results.

f. When measuring and monitoring devices are found to be unfit for their intended purpose, i.e. cannot be calibrated, a LEACH Manufacturing Engineer or LEACH Test Engineer with Material Review Board authority from LEACH Quality



DOC NO. 512-0000-000-000 REV AJ



performs an evaluation of potential impacts to products previously accepted with the device.

7.1.7 Organizational Knowledge

Based on changes to customer, industry, regulatory, and process requirements, the organization uses its Leadership Meetings and Management Review process to determine opportunities to improve organizational knowledge from internal and external sources in support of business improvement and to achieve conformity of products.

7.2 Competence (512-0026-000-000 Training Process)

7.2.1 LEACH Process Owners (primarily supervisors of work teams) determine the necessary competencies required for employees performing work that impacts product conformity and/or the effectiveness of the Business Management System, deliver competencies via formal training or ‘on-the-job’ training when they are missing or inadequate, evaluate the effectiveness of the training, (such as but not limited to testing, ‘on-the-job’ training declaration, or competency matrix effectiveness assessment by supervision).

7.2.2 The primary site tool for delivering competencies is the application of a Competency Skills Matrix Process where supervisors evaluate the risk to business goals of missing or inadequate work team competencies, deliver the competencies and document the effectiveness of individual employees within the work team(s). The competency matrices are maintained on metrics boards at department cell boards.

7.2.3 For external training events or training events delivered internally by an external body, a certificate, certification statement or diploma is required as evidence of training effectiveness. Copies of training documents are forwarded to LEACH Human Resources.

7.2.4 For training associated to the LEACH FAA/EASA Repair Station, the LEACH Repair Station Accountable Manager is responsible for determining the training/certification requirements of Repair Station employees, delivering the training/certification, and providing the evidence of training/certification to LEACH Human Resources.

7.2.5 Additionally, LEACH Human Resources delivers site training events as required by site leadership, corporate or as required by local, state, or federal regulation and maintains associated records of attendance and training effectiveness.

7.2.6 LEACH Process Owners that perform site training events provide evidence of training actions taken and their effectiveness to LEACH Human Resources. Training events are documented via an attendance roster (QAF 224 Attendance Form) with evidence of effectiveness attached (such as but limited to a test result, a certificate, or a diploma).

7.2.7 LEACH Human Resources maintains records associated to site training events, new employee orientation and testing, employee certifications, and site awareness events.

7.2.8 LEACH Quality issues notifications of changes to documents within the Business Management System via email activity. LEACH Leaders (primarily supervision and management) are required to deliver training or awareness to direct reports when revised documents are identified as impacting their departments and work teams, with the training or awareness event documented using QAF 224 Attendance Form.

7.2.9 LEACH Process Owners maintain competency matrices within their respective departments.



DOC NO. 512-0000-000-000 REV AJ



7.2.10 LEACH Human Resources manages an eye exam program (HRP-HR 1.1 Visual Acuity) as the basis for employee media of authority where visual acuity is a requirement.

7.3 Awareness (512-0026-000-000 Training Process)

7.3.1 LEACH Human Resources coordinates the delivery of awareness events by LEACH Subject Matter Experts to employees performing work that impacts product conformity and/or the effectiveness of the Business Management System. The following awareness topics are delivered as a new employee orientation process and a yearly all hands awareness event and includes, but is not limited to:

a. The Business Management System Quality Policy.

b. Business Management System objectives.

c. Personal Warranty and the implications of not conforming to the requirements of the LEACH Business Management System.

d. Employee contribution to product conformity, product safety, and the effectiveness of the Business Management System.

e. The structure of the Business Management System documented information and how to access latest versions of released documents.

f. The Importance of ethical behavior.

g. Preventing Foreign Object Debris.

h. Preventing the introduction of Counterfeit Parts.

i. Mitigating product damage based on Electro Static Discharge.

j. Trade Compliance and Export Compliance.

7.3.2 In addition to the above listed awareness topics, LEACH Human Resources delivers various awareness events as required by corporate or as required by local, state, or federal regulation and maintains associated records.

7.3.3 Awareness events are documented via an attendance roster or as part of the new employee orientation process.

7.4 Communication

7.4.1 Communication regarding the Business Management System consists of both internal and external activities. The most significant communications types are:



DOC NO. 512-0000-000-000 REV AJ



COMMUNICATION

WHAT WHEN TO WHO HOW BY WHO

INTERNAL New employee Business Management System orientation

On start date New employees (full-time, contract, and temp)

Presentations in a meeting room

Subject Matter Experts for Quality, EHS, FOd, ESD, and employee benefits

INTERNAL All-hands meetings

As needed All employees (full-time, contract, and temp)

‘Stand-up’ meeting

Site Leadership Team

INTERNAL Organizational announcements

As needed All employees with email accounts

Email Site Leadership Team as approved by Human Resources prior to publication

INTERNAL Site performance metrics

Daily - Departmental/work area performance boards, ‘Triage’ meeting room metrics, Weekly - 4-blocker updates Monthly – core and supporting process metrics, scrap, first pass yield, rework, returns

Leadership and Management

Meetings and Email

Site Leadership Team

EXTERNAL Program Management Reviews (PMR’s)

Based on Program Customers and Leadership

WebEx or onsite presentation

Program Management with Leadership support

EXTERNAL Management changes

As needed Customer, registrar, regulatory agencies

Email, portal or mail

Site Leadership Team as approved by Human Resources prior to publication

EXTERNAL Corrective action responses

Based on due date Customers, registrar, regulatory agencies

Email or portal Quality

EXTERNAL Purchasing requirements

Based on demand Suppliers Email or website

Buyers based on spend authority and/or leadership approval



DOC NO. 512-0000-000-000 REV AJ



7.5 Documented Information

(QAP 1.4 Control of Documented Information)

(QAP 2.3 Record Retention Process)

(CMP 0004-000-000 LIMEX Document Control Process)

7.5.1 The LEACH Business Management System contains the following documented information:

a. Required by AS9100.

b. Required by this document.

c. Required by customers and regulators.

d. Required by LEACH.

7.5.2 When creating and updating required documented information controlled by LEACH, the organization ensures that the document(s):

a. Have a unique identifier and descriptor.

b. Follows a controlled format.

c. Approved for compliance to Trade Compliance and Export Compliance (when required).

d. Is reviewed and approved for suitability and adequacy prior to release, including changes.

NOTE: Approval for release and subsequent revision and re-release of LEACH Business Management System documented information is defined and includes the customer when required contractually.

7.5.3 Documented information required by the Business Management System, AS9100, customers and regulators are controlled to ensure they are:

a. Available at the current approved/released version where needed and when needed, with obsolete/non-current versions removed.

b. Protected from data loss, loss of confidentiality, loss of integrity (damage, legibility), and improper use.

c. Prevented from violation of Trade Compliance and Export Compliance.

7.5.4 LEACH Engineering ensures that product engineering technical data sets, and documented information of external origin are controlled and made available within the LEACH Business Management System via the Adept Document Repository.

7.5.5 LEACH Quality ensures that Business Management System Documented Information is made available within the LEACH Business Management System via the Share-point Document Repository.



DOC NO. 512-0000-000-000 REV AJ



8.0 OPERATIONS

8.1 Operational Planning and Control (OPR 15 Master Routing Process)

LEACH plans, implements and controls the processes needed to meet the requirements for the provision of product. Those processes are identified by Figure 1 – Process Interaction Diagram.

a. LEACH Manufacturing Engineering, Test Engineering, and Environmental, Health and Safety facilitates and implements manufacturing processes for the provision of product with consideration for:

i. Employee and product safety.

ii. Producability, inspection and test.

iii. Efficient operation flow via the application of Lean Methodologies.

iv. Prevention of foreign object debris, electro static discharge, and handling damage.

v. Packaging, shipping, and preservation.

vi. Process control and measurement of key characteristics (when applicable)

b. LEACH Manufacturing Engineering converts product requirements into structured and controlled plans referred to as master routings, executed by the LEACH Material Resource Planning System (MRP) via paper-based job order traveler documents that contain:

i. Pick lists.

ii. Build standards.

iii. Process specification and engineering drawing references.

iv. Task and activity text for manufacturing, assembly, inspection and test

operations.

v. Locations for employees to record required data and information as well as

quantity completed, date completed, and application of media of authority

employee stamp.

vi. Process controls.

vii. References to technical documents and procedures (as required),

viii. Supplier based processing points.

8.1.1 Operational Risk Management

a. LEACH plans and implements risk management via the application of Risk Analysis Tools, with an associated Risk Register and action items for the processes identified by Figure 1 Process Interaction D.

b. LEACH Quality Engineering applies a Production Part Approval Process and Advanced Quality Planning Tools (PPAP/APQP) to minimize new product introduction (NPI) risk, where applicable or as required by customer requirements.

8.1.2 Configuration and Change Management

(ENG 48 Configuration Management Process)

(CMP 0000-005-000 Change Management Process)



DOC NO. 512-0000-000-000 REV AJ



(ENG 3 Engineering Change Request Process)

(ENG 53 Obsolescence Management Process)

a. LEACH Engineering maintains a Configuration Management / Change Management process for all documented information related to product design and performance requirements.

b. LEACH Engineering ensures that changes to documented information related to product design and performance are communicated and reviewed for impacts to products that are work in process (WIP), in inventory, or on purchase orders to suppliers.

c. LEACH Engineering provides a process for planned obsolescence of products based on changes to LEACH engineered products and products engineered by LEACH Suppliers.

d. LEACH Quality ensures that product and process audits are planned and executed as a basis for validating product configurations based on LEACH and customer documented information.

8.1.3 Product Safety

a. LEACH ensures that product requirements, and therefore product safety requirements are satisfied during design stages and within manufacturing operations via the application of:

i) Qualification Testing to Approved Qualification Test Plans.

ii) Qualified Products List (QPL) testing to Military Standards.

iii) Non-Destructive inspection.

iv) First Article Inspection.

v) Dimensional and Visual Inspection based on industry standard sampling plans

vi) A Foreign Object Debris (FOd) mitigation program.

vii) An Electro Static Discharge damage prevention program.

viii) A Supply Chain process to prevent the introduction of Counterfeit Parts.

ix) Validation of customer requirements prior to product release.

x) An Employee Stamp Control process.

xi) An Internal Audit program.

8.1.4 Prevention of Counterfeit Parts (QAP 7.4.1.002 Counterfeit Parts Mitigation Process)

a. LEACH applies the control of counterfeit product to its suppliers via the flow down of supplier quality requirements based on industry consensus standard AS5553: Counterfeit Material: Assuring Acquisition of Authentic and Conforming Materials.

b. LEACH provides awareness training to all employees on the prevention of counterfeit material introduction into LEACH processes.



DOC NO. 512-0000-000-000 REV AJ



c. In the event that counterfeit material is suspected, the product or material is processed as a non-conforming output.

d. LEACH applies raw material testing protocols to receiving inspection processes to mitigate introduction of incorrect material type and alloy.

8.2 Customer Support - Requirements for Products and Services

8.2.1 Customer Communication

a. LEACH Sales and Marketing provides information and handling of enquiries related to new products in coordination with LEACH Program Management and LEACH Design and Development functions.

b. LEACH Contracts performs review of customer contracts and long term agreements prior to acceptance, based on LEACH capabilities and corporate policy.

c. LEACH Customer Support receives and accepts customer orders or changes to customer orders and processes them into sales order demand in the MRP system.

8.2.2 Determining the Requirements for Products

a. LEACH Design and Development in coordination with LEACH Program Management and LEACH Sales and Marketing determines the requirements for new products to meet customer applications and solve customer problems or opportunities, with consideration for the operational environment and life cycle of the product, its function and performance within the customer platform/system, ease of integration, manufacturability, delivery timeline, and qualification requirements.

8.2.3 Review of Requirements for Products

a. LEACH Customer Support coordinates a customer requirements review process referred to as Purchase Order (PO) Review prior to acceptance of an new order (where ‘new’ refers to a first time for customer/part number combination, ie not a repeat order) with the applicable functions of the organization, such as but not limited:

i) Quality Engineering and Manufacturing Engineering.

ii) Supplier Quality Engineering.

iii) Contracts.

iv) Manufacturing.

v) Planning and Scheduling.

vi) Environmental Health and Safety.

b. In the event that the PO Review process surfaces customer requirements that cannot be met or can only partially be met, or when the customer purchase order is not in agreement with associated contracts or long term agreements previously accepted by LEACH Contracts, LEACH Customer Support and LEACH Contracts resolve those issues with the customer BEFORE accepting them.



DOC NO. 512-0000-000-000 REV AJ



c. In the event that accepted customer specific requirements fall outside of the current LEACH Business Management System Scope, LEACH Quality creates and maintains a Quality Directives Document specific to the requirement(s) (QAP 1.2 Quality Directives Process).

8.2.4 Changes to Requirement for Products

a. When the requirements associated to a customer PO are amended by the customer, revised requirements are reviewed by LEACH Customer Support for any potential impacts and, where impacts noted LEACH Customer Support updates the functions noted above.

b. In the event that changes to requirements for products are not in agreement with associated contracts or long term agreements previously accepted by LEACH Contracts, LEACH Customer Support and LEACH Contracts resolve those issues with the customer BEFORE accepting them.

8.3 Design and Development for Products

(ENG 01 Engineering Development Process)

(ENG 50 Software Control Process)

8.3.1 LEACH Design and Development has established, implemented, and maintains a Design and Development process that includes the following stages:

8.3.2 Design and Development Planning, including:

a. The nature, duration, and complexity of the required activities.

b. The required process stages, including reviews.

c. The required verification and validation activities.

d. The responsibilities and authorities involved.

e. The internal and external resource needs.

f. The need to control interfaces between all persons involved.

g. The need for involvement of customers and users.

h. The requirements for manufacturing the product (ie the ability to provide, verify, test and maintain resulting products).

i. The level of control expected by customer and other interested parties.

j. The documented information needed to demonstrate that requirements have been met.

k. The division of the process into distinct activities/projects, with task definition, resource requirements, and responsibilities.

8.3.3 Design and Development Inputs from:

a. Functional and performance requirements.

b. Information from previous similar products/projects.

c. Statutory and regulatory requirements.

d. Relevant standards or codes of practice.



DOC NO. 512-0000-000-000 REV AJ



e. Potential failures (ie Design Failure Mode and Effects Analysis).

f. Potential consequences of material, process, component, equipment or product obsolescence.

g. Benchmarking, external provider feedback, internal data, and in-service data.

NOTE: Inputs are required to be complete, unambiguous, and resolved when

conflicts apply.

8.3.4 Design and Development Controls, including:

a. The definition of results to be achieved.

b. Reviews conducted to evaluate the ability of results to meet requirements.

c. Verification activities to ensure outputs meet input requirements.

d. Validation activities to ensure that the resulting products meet the requirements of the application.

e. Actions taken on problems determined during reviews.

f. The internal and external resource needs.

g. The control of interfaces between persons involved.

h. The progression to the next stage (Design and Development Outputs) only when authorized by representatives of all concerned parties.

i. Verification, Validation and Qualification Test Activities that:

i) Are planned, controlled, reviewed and documented.

ii) Are managed via test plans or specifications that identify the item being tested, the resources required, test objectives and conditions, parameters to be recorded, and acceptance criteria.

iii) Are defined by test procedures that define the test method, how to perform the test, and how to record the results.

iv) Ensure the correct configuration of the test plan is being submitted for test.

v) Ensure the requirements of the test plan and the test procedure are observed.

vi) Ensure acceptance criteria are met.

8.3.5 Design and Development Outputs, that:

a. Via reports, calculations, and test results are able to demonstrate that the design meets the specified input requirements for all identified functional and operational conditions.

b. Are adequate for the subsequent manufacturing processes for the product.

c. Include monitoring and measuring requirements and acceptance criteria.

d. Specify any product characteristics that are essential for the intended purpose and associated safety.

e. Specify any required critical items or key characteristics and how to manage them.



DOC NO. 512-0000-000-000 REV AJ



f. Define the data sets required to allow product to be identified, manufactured, inspected, tested, used (as applicable), and maintained in the after-market (as applicable), such as but not limited to drawings, parts lists, materials and process specifications, engineering specifications, and component maintenance manuals (CMM).

g. Provide any specialized tooling requirements.

h. Are approved by authorized persons (including the customer when required) prior to release for production.

i. Provide the baseline documentation and tooling definition required by LEACH Manufacturing Engineering, LEACH Supply Chain, LEACH Test Engineering, and LEACH Quality for the definition of the manufacturing, assembly, handling, inspection and test, packaging processes, and make / buy decisions to be defined in item masters, material requirements plans (MRP) bills of material (BOM), master routings, inspection and test plans, advance product quality planning (APQP), first article inspection plans, and qualified products list (QPL) testing,

8.3.6 Design and Development Change Process that:

a. Identifies, reviews, and controls design changes.

b. Notifies any affected customers and seeks their approval of change (when required) prior to implementation.

c. Are controlled by the LEACH Design and Development function Configuration Management process.

8.4 Control of Supplied Processes, Products, and Services

8.4.1 General Requirements (MAT 7.4.1.001 Purchasing Process)

a. LEACH Supply Chain assures the conformity of all supplied processes, products, and services, including:

i) Those sources defined by LEACH customers.

ii) Those sources designated or approved by LEACH customers, including special process providers.

iii) Requiring suppliers to apply controls to their direct and sub-tier suppliers in line with LEACH Supply Chain flowed down requirements.

iv) Applying a Risk Assessment process for suppliers and the processes, products, and services they provide, and managing those risks.

b. LEACH Supply Chain determines the controls to be applied to supplied processes, products, and services, regardless of whether they are:

i) Intended for incorporation into LEACH products.

ii) Intended for direct shipment to LEACH customers from suppliers on behalf of LEACH.

c. LEACH Supply Chain applies criteria for the evaluation, selection, monitoring, and performance management of suppliers, based on their ability to perform to purchase order and long term agreement requirements.



DOC NO. 512-0000-000-000 REV AJ



d. LEACH Supply Chain manages supplier performance via:

i) Defining the internal authority for approval status decision, changes of the approval status decision, and conditions for controlled use based on approval status.

ii) Maintaining a register of all suppliers with potential impact on product conformity, called the Approved Supplier List (ASL).

iii) Reviewing the performance of ASL suppliers including at minimum product conformance and on-time delivery performance.

iv) Defining the actions to be taken when suppliers do not meet product conformance and on-time delivery performance.

v) Defining the requirements for controlling documented information created by or retained by suppliers.

e. LEACH Supply Chain manages the transfer of work between suppliers using a project management approach when applicable based on scope of the transfer.

8.4.2 Type and Extent of Control over Suppliers

(MAT 7.4.002 Supplier Management)

(QAP 5.7 Receiving inspection)

a. LEACH Supply Chain ensures that supplied processes, products and services do not impact the organizations ability to deliver conforming and on-time products and services to its customers.

b. LEACH Quality verifies supplied products, processes, and services to purchase order requirements using a Receiving Inspection process that includes at minimum:

i) Review of supplied documented information such as but not limited to certificate of conformity, test documentation, raw material chemical and physical properties, first article inspection report, process control reports.

ii) Dimensional Inspection using industry consensus sampling plans.

iii) Periodic testing of product to assure validity of raw material test reports and to mitigate the receipt of counterfeit product.

c. Based on performance, LEACH Quality may delegate verification activities to a supplier via the application of a LEACH Quality approved delegated inspection plan and the assignment of media of authority inspection acceptance and rejection stamps to an assigned member of the supplier inspection function. When suppliers are delegated to perform inspections on behalf of LEACH Quality, a register of delegations is maintained and the performance of the supplier delegation activities is periodically reviewed by LEACH Quality.

8.4.3 Information to Suppliers (MAT 7.4.1.001 Purchasing Process)

a. LEACH Supply Chain ensures the validity and accuracy of requirements flowed to suppliers prior to communicating them via a Purchase Order Review process.

b. Based on the type and level of business partnership between LEACH and its suppliers, LEACH Supply Chain may apply Long Term Agreements as well as



DOC NO. 512-0000-000-000 REV AJ



Purchase Orders with terms and conditions and Quality Provisions (referred to as Quality Clauses) made available via the LEACH International website.

a. At minimum, purchase orders from LEACH Supply Chain to suppliers communicate:

i) The process, product, or service being provided including relevant technical data such as specifications, drawings, process requirements and work instructions. Technical data is provided at the latest released version in the Engineering Adept Technical Document repository, unless otherwise specified.

NOTE: LEACH Trade and Export Compliance requirements must always be met when sharing technical datasets with suppliers.

ii) The methodology for approval of products, processes and services, methods and equipment, release of products and services (as applicable).

iii) Required personnel competencies or certifications.

iv) The process for interacting with LEACH Supply Chain.

v) The type and extent of performance monitoring.

vi) Activities to be performed at the supplier site by LEACH or its customers.

vii) Any applicable design and development controls for product or process.

viii) Special requirements, critical items, or key characteristics.

ix) Test, inspection, and verification activities.

x) The use and application of statistical process control.

xi) The requirement to:

1. Implement a Quality Management System to an industry consensus standard.

2. Use customer designated or approved suppliers, including special processors.

3. Notify LEACH Supplier Quality of nonconforming processes, products, or services and the process for obtaining disposition by LEACH Supplier Quality.

4. Mitigate Foreign Object Debris, prevent Counterfeit Parts, and prevent damage via Electro Static Discharge.

5. Notify LEACH Supply Chain of changes to processes, products, or services, including changes of suppliers and change of location of manufacturing.

6. Flow down applicable requirements to suppliers and their sub-tiers.

7. Provide test specimens for testing or inspection (as applicable).

8. Retain documented information, including retention periods and disposition.

9. Accept the right of access by LEACH employees, or its customers and regulatory agencies to any level of the supply chain.

10. Ensure personnel are aware of their contribution to product or service conformity, their contribution to product safety, and the importance of ethical behavior.



DOC NO. 512-0000-000-000 REV AJ



8.5 Production Provision

(OPR 017 Production Process)

(QAP 3.16 Elector Static Shock Prevention Process)

(QAP 3.13 Foreign Object Debris Prevention Process)

8.5.1 General Requirements

a. LEACH Manufacturing controls the production provision process via using the latest versions of documented information, unless specified and approved otherwise:

i) Job router travelers that sequentially outline the tasks and activities required to manufacture, assemble, test, certify, and inspect products, with associated details and sub-assemblies identified via a pick ticket bill of material listing.

ii) Managing the transfer of work between LEACH facilities or from a supplier to a LEACH facility using a project management approach as applicable based on scope of the transfer.

iii) Acceptance Test Plans (ATP’s), Qualified Products List Testing Plans, Engineering Drawings and Process Specifications, Inspection Plans, Shipping Documentation, and Workmanship criteria.

b. The application of calibrated measuring, test, and inspection equipment, and sampling plans justified based on industry standards.

c. The application of infrastructure and work environment such as but not limited to special processes of Chemical Processing, Heat Treat, and Welding, X Ray Non Destructive Test, Electro Static Discharge control work stations, test fixtures and test equipment.

d. The application of a skilled, trained, certified work force.

e. The application of controls to prevent Foreign Object Debris and human error.

f. The implementation of processes to release, deliver, and perform after market activities on product.

g. The accountability of all products during manufacturing via part quantity tracking on job orders and split orders, and identification of non-conforming product within job orders at the operation where product was rejected.

h. The control of critical items or key characteristics via Variation Management per Industry Consensus Standard AS9103.

i. The identification of in-process, final inspection, and shipping inspections points and Assembly Test verification points within Job Orders, and the evidence that those points have been completed as planned via acceptance of operations by employees based on Media of Authority Stamp Control.

j. The control of utilities that affect product conformity such as but not limited to Nitrogen purge gas, chemical processing (plating) tanks, compressed air, and electricity)

k. Control of Equipment, Tools, and Software



DOC NO. 512-0000-000-000 REV AJ



i) LEACH Test Engineering maintain Test Equipment and associated Software or Tooling used to verify product performance characteristics during assembly and test operations on Job Orders.

l. Validation and Control of Special Processes

i) LEACH Quality, Manufacturing Engineering, and Environmental Health and Safety jointly maintain the ongoing performance of special processes such as but not limited to:

ii) Welding (Nadcap Approved).

iii) Chemical Processing (Nadcap Approved).

iv) Heat Treatment (Nadcap Approved).

v) X Ray Non Destructive Test.

8.5.2 Production Process Verification

a. Product samples representative of first production runs are used by LEACH Quality to perform First Article Inspection per Industry Consensus Standard AS9102 and customer specific reporting requirements.

b. First Article Inspections are documented, approved by LEACH Quality Engineering prior to release, and shared with customers when contractually required.

NOTE: LEACH Trade and Export Compliance requirements must always be met when sharing technical datasets such as First Article Inspection Reports with customers or other external bodies.

8.5.3 Identification and Traceability (OPR 017 Production Process)

a. LEACH Manufacturing and LEACH Supply Chain maintain the identification of the configuration of products during product realization and inventory management processes via the application of job order travelers.

b. LEACH maintains product traceability requirements as follows:

i) Traceability of all products to sub-assemblies, details and raw material for all Bill of Material components.

ii) A sequential record of manufacturing Job Orders for each product is made retrievable via scanning of Job Orders (soft copy) into a LEACH network location AND retention of Job Orders (hard copy) at offsite locations.

8.5.4 Identification and Traceability – Media of Authority (QAP 1.14 Stamp Control)

a. LEACH Quality mandates and controls the application of employee stamps as the basis for media of authority. Password protected electronic signatures are used to approve technical documents prior to release.

b. System passwords are issued by LEACH Information Technology for access to company network locations and controlled software applications based on management approval and Trade Compliance and Export Compliance (when required).

8.5.5 Property Belonging to External Bodies



DOC NO. 512-0000-000-000 REV AJ



a. LEACH does not use or manage property belonging to its suppliers.

b. When customer property is provided to LEACH as part of a customer purchase order, long term agreement, or contract it is verified upon receipt, and safeguarded against damage or loss by LEACH Manufacturing and LEACH Supply Chain.

c. In the event that customer property provided to LEACH is lost, damaged, or rendered unsuitable for use, it is reported to the customer for disposition.

8.5.6 Preservation

(MAT 7.5.5.003 Inventory Management Process)

(QAP 303 Control of Age Sensitive Material Process)

LEACH Supply Chain and LEACH Manufacturing ensure preservation of product and material by:

i) Storing flammable materials is flammables cabinets.

ii) Storing materials sensitive to aging and storage conditions per manufacturer recommendations and disposing of such materials in compliance with Environmental Health and Safety guidelines when they exceed manufacturers recommended expiration date (OPR 021 Procedure for Hazardous Materials & Environmental Management)

NOTE: When manufacturer does not provide an expiration date with certificate of conformance, safety data sheet, or tech sheet, material sensitive to aging and storage is considered as INDEFINITE shelf life.

iii) Cleaning products when required during manufacturing operations and purging assembles with nitrogen gas prior to final closure welding.

iv) Preventing the introduction of Foreign Object Debris.

v) Preventing damage to electronic components by Electro Static Discharge.

vi) Applying First in – First out stock rotation and performing inventory/cycle counting.

vii) Marking and labeling to assure product identification and traceability is maintained.

viii) Packaging products to prevent damage during storage, handing, and transportation.

8.5.7 After Market (Post Delivery) Activities

(512-0006-000-000 Repair Station Process)

a. LEACH Buena Park is an FAA Certified Part 145 Repair Station with ratings for Limited Accessory / Limited Instruments via FAA Air Agency Certificate Number FJ3D503L.

b. LEACH Buena Park is an EASA Approved Repair Station via EASA US Approval Certificate Number EASA.145.5169.

c. LEACH Buena Part holds multiple FAA Product Manufacture Approvals (PMA). A complete list of approved PMA’s is maintained by the FAA and available for



DOC NO. 512-0000-000-000 REV AJ



review at the following US Government Web Site: https://www.faa.gov/aircraft/air_cert/design_approvals/pma/

d. Requests for after-market are processed via a Return Material Authorization process for all Warranty and Repair Station work.

e. For problems detected after delivery, LEACH issues a Problem Advisory for each event and notifies impacted customer(s) using the prescribed contractual format and timing. Unless otherwise specified, Problem Advisories are issued within 48 hours of confirming the problem.

f. LEACH Quality maintains a Government-Industry Data Exchange Program (GIDEP) registration and uses the GIDEP website for awareness and reporting of industry quality issues.

NOTE: LEACH Trade and Export Compliance requirements must always be met when sharing technical datasets with external bodies.

8.5.8 Control of Changes (QAI 203 Use of Stamps, Data Entry and Correcting, Red-

Lining)

LEACH Business Management System controls changes for production and

repair station activities via an Employee Stamp Control Media of Authority

Process. Changes are limited to:

i) ‘Redlining’ of WIP job orders and associated build paperwork (such as but not limited to Acceptance Test Reports, Inspection Reports, Bills of Material) by Manufacturing Engineering/Design Engineering with approval by Quality Engineering (to validate the change against requirements and evaluate potential for a First Article Process). NOTE: Limited to Class II changes only (do not affect form, fit, function, safety, interchangeability, or reliability) such as errors, clarifications, producability improvements. NOTE: Class I changes (affect form, fit, function, safety, interchangeability, reliability) are submitted to Engineering via an Engineering Change Request (ECR) process.

ii) Employee correction of their own data entry errors in job orders and associated build paperwork (such as but not limited to Acceptance Test Reports, Inspection Reports, Bills of Material) by lining through the data error with one single line, entering correct data, applying employee stamp and date of stamp application.

iii) Employee voiding of their own data entry in job orders and associated build paperwork (such as but not limited to Acceptance Test Reports, Inspection Reports, Bills of Material) by lining through the data error with one single line, entering ‘VOID’, applying employee stamp and date of stamp application.

iv) Employee entry of ‘N/A with stamp and date to identify where a form or datasheet requires entry of data but the entry is not applicable.

https://www.faa.gov/aircraft/air_cert/design_approvals/pma/



DOC NO. 512-0000-000-000 REV AJ



v) Employees may only make data error corrections or data entry ‘VOIDS’ to their own data entry. Where data entry corrections or voids are required and the employee is not available due to absence or termination, the correction may be performed by a Quality Engineer or a Manufacturing Engineer.

vi) In the event that an employee ‘buy-off’ (job order for example) has been missed and the employee is not available due to absence or termination, the ‘buy-off’ may be performed by a Quality Engineer (inspection operation) or Manufacturing Engineer (manufacturing/assembly operation) and annotated accordingly once the task or activity has been verified as completed as planned.

vii) Pencils and erasers are not permitted.

viii) Data overwrites are not permitted under any circumstance.

ix) Correction fluids (ie ‘white-out’) and correction tapes are prohibited.

x) All employee stamp entries are performed using permanent black ink with the exception of Rejection Stamp entries which are performed using permanent red ink.

xi) All date entries and employee stamp entries are required to be legible to allow for subsequent scanning and/or record retention.

8.6 Release of Products

(QAP 3.14 Shipment Release Process)

(QAP 3.15 In-Process and Final inspection Process)

(QAP 3.16 Sampling Plans Process)

8.6.1 LEACH Quality performs Shipping Inspection process to assure product is approved for release to shipment. The inspection process is performed only by members of the inspection team approved by LEACH Quality Leadership. The release for shipment approval is indicated by the signature, date, and media of authority stamp applied to the shipping certification of conformance (cofc) by an approved inspector.

8.6.2 For products requiring customer source inspection prior to shipment, LEACH Quality Engineers perform a final release to ship review process.

8.6.3 LEACH performs verification activities against planned requirements within production Job Order travelers to assure conformance:

a. At in-process inspection points.

b. At final inspection points.

c. At in process and/ or final Acceptance Test points.

d. At customer delegated final inspection or shipping inspection points.

8.6.4 LEACH Quality performs Qualified Products List Testing to maintain on-going qualification to Defense Logistics Agency (DLA) requirements for products qualified to:



DOC NO. 512-0000-000-000 REV AJ



a. MIL-PRF-83536 Electromagnetic Relays.

b. MIL-PRF-6106 Electromagnetic Relays.

c. MIL-PRF-83726 Hybrid Solid State Relays.

8.7 Control of Non-Conforming Product

(QAP 6.1 Control of Non-Conforming Product)

8.7.1 When product or material is non-conforming to requirements during planned inspections and tests, the product is placed into a Material Review Board Process managed by LEACH Quality:

a. The product is identified as non-conforming.

b. A non-conformance report is initiated and the product and associated paperwork is placed into a secured Material Review Board cage pending disposition.

c. Disposition of scrap, rework, no fault found, or return to vendor is assigned by a Manufacturing Engineer for product in WIP or by a Supplier Quality Engineer for product received from suppliers.

d. Disposition of use as is, repair, or regrade is assigned by Design Engineering for LEACH designed product or by LEACH customer(s) for customer ‘build to print’ products.

e. LEACH Quality performs final approval of all dispositions and subsequent release of product.

f. LEACH employees are delegated Material Review Board privileges by LEACH Quality Leadership based on qualification and a register of approved Material Review Board employees is managed by LEACH Quality.

9.0 PERFORMANCE REVIEW

9.1 Customer Satisfaction

9.1.1 LEACH Leadership monitors and evaluates customer satisfaction via:

a. Customer ratings of quality and delivery.

b. Feedback from customers.

c. Results of corrective actions.

9.1.2 Customer satisfaction improvements and planned customer program improvements are tracked via Program Management Reviews conducted with customers by Program Management at planned intervals (PMR’s) and/or by Quality Improvement Plans (QIP’s) reviewed with customers by Quality at planned intervals.

9.1.3 Analysis and Evaluation

LEACH Leadership monitors, evaluates, analyzes and actions data sets from monitoring and measurement activities. The data sets reviewed include:

i) Product conformity by program.

ii) Customer satisfaction metrics.



DOC NO. 512-0000-000-000 REV AJ



iii) Business Management System effectiveness and improvements required.

iv) Risks and opportunities.

v) Supplier performance.

9.2 Internal Audit (QAP 1.9 Internal Audit Process)

9.2.1 LEACH conducts internal audits to provide feedback on the performance of the Business Management System. Internal audits are performed at planned intervals based on an internal audit calendar developed by Quality at the beginning of each fiscal year, and approved by LEACH Leadership. The audit schedule is based upon the importance of the process and the results of previous audits.

9.2.2 The internal audits are performed by active employees who have successfully completed a process-based auditor training class taught by a Trained Lead Auditor. Additionally, External Consultants, qualified as Aerospace Lead Auditors may be used to supplement the internal audit program based on schedule and subject matter expertise.

9.2.3 To ensure an impartial audit process, internal auditors are not permitted to audit their own areas of responsibility.

9.2.4 Results of internal audits are reviewed with process owners and corrective actions are assigned for noted non-conformances (ie findings).

9.3 Management Review

9.3.1 LEACH Leadership reviews the overall performance of the Business Management System via a formal Management Review process at minimum once per year to ensure its continuing adequacy and performance against planned goals and objectives.

9.3.2 Additionally, regularly scheduled leadership meetings are used to review system performance and performance to goals and objectives. The annual Management Review is coordinated by Quality with assistance from process leaders and department leaders. The inputs, outputs and resulting actions from the Management Reviews are documented.

9.3.3 Management Review inputs, at minimum are:

a. The status of action items assigned from the previous Leadership Reviews (all process owners).

b. Changes to internal and external issues impacting the system (all process owners).

c. Changes related to interested parties impacting the system (all process owners).

d. Performance measures and trends for:

i) Customer satisfaction using customer metrics of on time, on quality, feedback, and corrective actions (customer support).

ii) Quality Policy and Business Objectives (leadership).

iii) Process effectiveness metrics (all process owners).

iv) Process performance (all process owners).

v) Product conformity (quality).



DOC NO. 512-0000-000-000 REV AJ



vi) Nonconforming outputs (quality)

vii) Corrective actions (quality and supply chain).

viii) Monitoring and measurement results (quality).

ix) External and internal audit results (quality).

x) Supplier performance (supplier quality).

xi) On time performance internal (planning).

e. Trade Compliance and Export Compliance issues (leadership).

f. Environmental Health and Safety Issues (leadership).

g. Human Resource (people) requirements (human resources).

h. Infrastructure and transportation issues and requirements (all process owners).

i. Information Technology status and requirements (leadership)

j. Risk register update (leadership)

k. Opportunities for improvement of the Business Management System and its processes (all process owners).

9.3.4 Management Review Outputs are Documented, and Actions are Assigned as required for:

a. Opportunities for improvement of the Business Management System and its processes.

b. Changes to the Business Management System driven by new customer, regulatory/statutory requirements.

c. Resource requirements to support and improve the Business Management System.

d. Risks identified.

10.0 IMPROVEMENT

10.1 General

10.1.1 LEACH Leadership determines and selects opportunities for improvement and delivers them as action items, projects, and kaizen events with focus on improving product conformity, improving process performance, and reducing risks to customers.

10.2 Nonconformity and Corrective Action (QAP 6.3 Corrective Action)

10.2.1 Corrective actions may be requested by any employee or interested party and are coordinated by Quality. Corrective actions are prioritized based on risk. Corrective actions are assigned at minimum for:

a. Notices of escape (NOE).

b. Significant process performance negative trends impacting customer satisfaction.

c. Customer, Nadcap, and registrar nonconformities.

d. Supplier nonconformities.



DOC NO. 512-0000-000-000 REV AJ



e. Internal audit findings.

10.2.2 When corrective actions are assigned, containment actions are used to assure that escape of a product impact outside for the Business Management System does not occur. Containment actions may include but are not limited to:

a. Publishing and training to a Quality Alert Notification.

b. Placing shipment hold in the MRP system.

c. Applying the Control of Non-Conforming Products Process.

d. In the event that a correction action process surfaces the escape or potential escape of non-conforming product outside of the LEACH Business Management System, LEACH Quality Engineering authors a problem advisory document for LEACH Leadership review. When applicable based on requirements and LEACH Leadership approval, LEACH Quality issues a Notice of Escape or Notice of Potential Escape to any impacted customers or regulatory agencies no later than 48 hours after confirmation of the escape or potential escape of the defect.

10.3 Continual Improvement

10.3.1 The LEACH Leadership team continually improves the suitability, adequacy, and effectiveness of the Business Management System based at minimum on the review of analysis and evaluation activities, Management Review outputs, Process Effectiveness Results, Interested Parties, Internal and External issues, and customer feedback.