AEROSPACE QUALITY SYSTEMS

                          UNCONFIRMED MINUTES
                               JULY 20-21, 2005
                      HOLIDAY INN - KENSINGTON FORUM
                            LONDON, ENGLAND

These minutes are not final until confirmed by the Task Group in writing or by vote at a
subsequent meeting. Information herein does not constitute a communication or
recommendation from the Task Group and shall not be considered as such by any

Wednesday, July 20, 2005
11:00 am – 5:00 pm

1.0 CALL TO ORDER/QUORUM CHECK (Business Meetings)
The meeting was called to order by Chairperson Mark Covert.

Attendance: An attendance sheet was routed and annotated by attendees
       User Members Present:
      Janice M Abeita-Lynch, Raytheon Aircraft
      Michael Coleman, Boeing
      Mark Covert, Honeywell
      Chatt Rhodes, Cessna
      Zdenek Sitar, Honeywell
      Dan Smith, GE Infrastructure (Last meeting - Replacement TBD)
      Bill Solchik, Rolls-Royce
      Michael Valenti, Eaton
      James Vannatta, Bell Helicopter

       Other Participants/Members:
       John Barrett – PRI
       Graham Bellfield, Chromalloy - United Kingdom
       Scott Nelson – PRI
       Sandra Tomblin, X-R-I Testing
       Mick Youd, Farsound Engineering Ltd

1.1 Agenda Review and Modification
Mark Covert reviewed the published agenda no suggested changes to the agenda were made.
                   Day One - 20 July 2005
          1.0      Open Meeting, Attendance, Quorum Check, Integrity Review
          1.1      Review Agenda
          2.0      Review and Approve Minutes
          3.0      Update on AQS Staff Engineer Development
          3.1      Review Staffing Risk Abatement Control Plan
          4.0      Review AQS Mission Statement (NOP-002)
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           5.0        Review AQS Metrics
           6.0        Continue Development of Draft AC7004 Rev C Checklist
           6.1        Review accreditation controls and 3-yr cycle policy
                      Day Two - 21 July 2005
           7.0        Open Meeting, etc.
           8.0        AQS Oversight of Technical Audits for QMS
           9.0        AC7004 Auditor Guidance vs. Handbook
           10.0       AQS Auditor Training Plan
           11.0       Closed Session for eAuditNet AQS Audit Reviews

2.0 Confirmation of Minutes – The April 2005 minutes were confirmed as written.

3.0 Update on AQS Staff Engineer Development – Task Group discussed the status for
      progress in training of new AQS SE’s. Training sessions have been accomplished by
      Scott Nelson. Current plans are to assure that there are backup SE’s in order to
      mitigate risk in times when workload is unmanageable. As shown below, audits have
      been assigned to the 3 identified SE’s with oversight and final Nadcap review and
      audit response approvals to be accomplished by Scott Nelson or John Barrett. To date
      no appreciable delays in audit reviews and/or responses have been reported. John and
      Scott are tracking progress through eAuditNet, if there are any performance issues
      concerning the audit reviews conducted by the candidates those issues are being
      documented in the associated audit record. If progress continues as it is now, the SE’s
      will begin to submit audits to the task group for “non-delegated” audit review. No
      time frame for the next step was discussed. Although there is no formalized
      PRI/Nadcap process for bringing new SE’s on board for AQS, the plans currently in
      place represent a best practice.

                  The status of assigned audits was reviewed using the attached file.

                  Chatt Rhodes asked if PRI plans to have any or all of the candidates join in
                  on our telecoms in order to get a better feel for our Task Group operation?

3.1 Review Staffing Risk Abatement Control Plan – The group reviewed the risk abatement
       plan outlined at the April 2005 meeting which is attached below. Discussion covered
       the following points:

       - Communication all around - Scott to meet with candidates as often as possible,
       include them in all e-mails as appropriate
       - Oversight - AQS to provide oversight of the audits in order to provide system of
       checks and balances.
       - Training - Will include candidates in October Auditor training

                  There currently are no AQS requirements for minimum number of audit
                  reviews in a given period of time in order to maintain Delegated SE status.

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       Although this is not an issue today, it may need to re-address once candidates become

       There followed a roundtable discussion and vote on whether the AQS SE’s should
       receive AS9100 training and the consensus of the group was no, because the current
       SE were interviewed and all are acceptable AQS SE candidates and since they will be
       included in the October training in Pittsburgh, additional training is not required.

4.0 Review AQS Mission Statement– Mark Covert reviewed the current mission statement
                   and led a discussion on how we were meeting the elements of our mission.
                   There was agreement that we have a plan in place to meet all elements, but
                   the element number four was discussed in more detail to assure we were
                   satisfied with the oversight provided by AQS of the technical task groups
                   for quality systems content within their checklists and standards.
       A review of prior efforts to review the other task group checklists identified that
       several new task groups had not been reviewed and supported by the AQS task group.
       The following AQS T/G members have volunteered or were drafted to assist with
       getting correct AQS questions are incorporated in their checklists.
               Janice Lynch – Fasteners
               Mike Valenti – Electronics
               Bill Solchik – Composites

       Each T/G is currently undergoing a baseline review of their checklists and also a
       reporting effort is being undertaken by PRI to make specific checklist findings
       available to the Primes so that we can review AQS findings. Our task group needs to
       determine a list of the quality systems related questions and request data from PRI in
       order to assure that quality system requirements are being met.

Action Item: Need to determine if Fasteners and Electronics have incorporated AQS
       requirements into their checklists. - Janice Lynch
Action Item: Provide a template of AQS type quality questions to each of the task
       groups was tabled until Jan 2006 meeting. - John Barrett
       Discussed our relationship with the other T/Gs and asked group to define how we
       interact Several options for our vision of how AQS should interact with other task
       groups were drawn up on the board and we came to consensus that AQS should be
       integrated within each of the commodities.

       The option to have an AQS rep join each task group was discussed and was agreed.
       There is a need to determine if and how we can cover all T/Gs with our current
       resources. Look for candidates from each prime determine which Primes are capable
       of supporting the AQS group within their task groups.
Action Item: Determine which questions are considered essential for inclusion in the
       commodity checklists. Review the matrix of common AQS data/questions that we
       expect to see in the different T/G questionnaires. Get the information that Chris

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       Diepenbrock assembled prior to his transfer for task group review. - Mike

       Need to request data from PRI to determine which task group need coverage by
       reviewing the AQS questions and audit results in eAuditNet to determine which
       groups are most critical.
Action Item: Provide task group with a report of quality system related findings from
       eAuditNet once the report function has been provided. - John Barrett

       Mike Coleman suggested monthly Prime telecoms should be held vote taken and
       motion was carried.
Action Item: Schedule monthly AQS Task Group telecoms. - Scott Nelson

5.0 Review AQS Metrics - The AQS Metrics which are attached below were reviewed. The
                  overall metrics were all “Green”. Improvements were noted in the areas of
                  overall cycles for reaccreditation audits, Supplier and Staff cycle times for
                  initial and reaccreditation audits. June was the second highest month in
                   number of audits certified for AQS since this metric has been tracked. The
                   task group officially recognized the staff (Nelson and Barrett) for their
                   excellent support.
                   The prime members were encouraged to improve their participation in audit
                   reviews in eAuditNet for SE delegation oversight. We are currently
       meeting the three or more reviewers for the minimum of 10% delegation oversight, but
       not all primes are participating equally. Audits are available for task group review for
       seven days.

       The Nadcap Customer Support Initiative (NCSI) was reviewed with the task group to
       encourage Prime support to promote new supplier participation. There are indications
       that attendance at this WebEx information meeting is having a favorable impact on
                    cycle time and number of cycles to achieve initial accreditation. The
                    latest information on AQS certifications is attached. This process will
                    continue to be monitored and tracked. More data is needed to confirm if
                    this process trend is significant.

6.0 Continue Development of Draft AC7004 Rev C Checklist - Two telecons were
       scheduled between the Frankfurt and London meetings to revise the remaining
                     sections only section 4.10 was revised. July meeting started up with
                     section 4.11. Attached is the draft completed in this meeting. The
                     AC7004 revision is basically complete but requires task group review
                     and format clean up prior to any ballot review.

Action Item: Clean up the AC7004 draft formatting and highlighted comments section
       and submit to Mark Covert for review. - John Barrett

       The status of the AAQG project on AS9003 was presented to the task group for

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       review. Attached is the presentation on the Nadcap position which was presented at
       the AAQG meeting in June. The current AAQG decision is not to pursue a rewrite of
       AS9003. AQS will proceed with the rewrite efforts for AC7004. AAQG has asked
       AQS to share the results of our effort prior to the AC7004 revision is issued. Due to
       the lack of use of the registration option under the Industry Controlled Other Party
       (ICOP) program, this option may not be supported by the AAQG in the future for

       The task group revisited the goals that had been documented for the AC7004 rewrite.
       Based on the review, most of the stated goals have been satisfied. Remaining are a
       couple of items which need attention during the final reviews:

   1. Still need to assure that we have changed all questions to statements to clearly identify
   2. Make sure that we clean up wording that may allows procedures with out verification
      of conformance.

6.1 Review Accreditation Controls and 3-Yr Cycle Policy - The task group discussed the
       current policy to grant accreditation (approval) of supplier quality systems for three
       years. The critical factor to rely on this period of approval is the ongoing assessments
       made by the technical task group audits which include a number of specific quality
       system related questions which validate the effectiveness of the supplier quality system
       between AC7004 audits. The task group is continuing to review the consistency in
       which the technical task groups assess the quality system effectiveness with the project
       discussed in item 4.0 of these meeting minutes. No further action is planned for this
       item pending completion of the previously described work scope.

Thursday, July 21, 2005
08:00 am – 3:00 pm

7.0 Open Meeting - Day Two - Mark Covert opened the meeting with a check of quorum and
      brief introductions. The attendance log was circulated for new attendees. Attendees
      were again reminded of their responsibility to comply with the Nadcap published
      Personal Code of Ethics and Conflict of Interest.

8.0 AQS Oversight of Technical Audits for QMS - This item was discussed in detail under
      the review of the AQS Mission Statement - Item 4.0. No further discussion was
      needed. The action plans addressed in Item 4.0 will cover this concern.

9.0 AC7004 Auditor Guidance vs. Handbook - Most of the guidance sections in AC7004
      have been streamlined or eliminated. There were several areas identified for possible
      Handbook entry. The AQS task group does not currently have a published AQS
      Auditor Handbook. The final review and discussion of the AC7004 should identify
      additional items for the handbook. The only item identified during the discussion was

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        the need to include a definition for “product” which will be taken from the ISO9001
        standard guidelines.

10.0 AC7004 Auditor Guidance vs. Handbook - Due to time constraints, this item was
      rescheduled for discussion in the July 2005 AQS Meeting.

11.0 AQS Auditor Training Plan - The task group reviewed the current AQS Auditor
               Training Plan which is attached.

                  This training plan was updated based on discussion and will be submitted to
                  Wendy Grubbs by July 29th. All training presentations shall be submitted
                  no later than Sept 2nd. In the past, the auditors were divided into four
groups to provide the training. This year there will only be two (two hour) sessions. The
training for AQS auditors is scheduled for Saturday, October 15th during the afternoon (1-3
and 3-5 PM).

   1.   Possibly can go through the AC7004 section by section and talk scenarios as we go.
   2.   Can possibly speak to the changes we are making to the document
   3.   Could explain the reasoning behind making changes
   4.   See training plan for proposed sequence:
            Introduction
            Qualities of auditor excellence (John has material)
            Basics in AQS NCR writing (John has examples)
            Decision tree for overlapping NCR’s (Technical Vs QMS)
            AC7004 Changes/Concerns
            Scenario Game
            Questions and Answers

Scenarios from last year’s training were reviewed to determine if we should go in the same
direction this year. Training from prior years is located in eAuditNet - Public Documents as
“AQS Auditor Training October 23, 2004”.

ACTION: Group needs to come up with one or two scenarios, each, over the next two
     weeks and are expected to discuss during our next (first regular) telecom.
     Scenarios to be submitted by email to John Barrett (jbarrett@sae.org) by August
     5, 2005. - All

ACTION: Schedule conference call during the following week tentatively Wednesday
     August 10 AM Eastern Standard Time Schedule a follow up for two weeks later
     Aug 24 same time and also August 31st ,if necessary. - Scott Nelson (Complete)

ACTION: Present prepared presentations for core training during telecoms - John
         Qualities of auditor excellence (John has material)

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            Basics in AQS NCR writing (John has examples)
            Decision tree for overlapping NCR’s (Technical Vs QMS)

12.0 Closed Session - Users Only - The task group reviewed an audit concurrently on
       eAuditNet to share best review practices and assure consistency of review by task
       group reviewers.

13.0 Adjournment
The meeting was adjourned at 5:30 PM.

Minutes are subject to final approval by the AQS Task Group. Provide any corrections or
additions to the writer.

Notes taken by Mike Coleman, Secretary, The Boeing Company
Minutes prepared by John Barrett
AQS Staff Engineer

                           ***** For PRI Staff use only: ******

  Are procedural/form changes required based on changes/actions approved during this
  meeting? (select one)

  YES*                                 NO

  *If yes, the following information is required:

  Documents requiring           Who is responsible:                      Due date:

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