2. Audit Observations on 17-Nov-2021
1. Risk assessment – For all RFQ & Contracted projects, which covers all the aspects of the project
2. Capacity Analysis – Capacity assessment which includes current and future projects.
3. QA Manpower
4. Q2Q Workload Plan
5. Oursys ERP Implementation – (BOM creation, Process Layouts, Machining sequences)
6. Things Went Right / Things Gone Wrong – Lessons learned from Previous projects
7. KPI for all departments / Review on quarterly basis
8. For HSE/OSHAS – ISO 14001/45001 – Consultant status
9. Contract Requirements Flow down
10. International Standards Requirements
11. OEE & Daily Morning Meetings
12. Additional Lifting Equipment’s added.
3. • Summary of Audit Observations:
1. Number of Non-Conformances identified count 8
2. Number of Action Points count 23
3. Number of Action NC / Points Implemented count 24
4. Balance to be implemented count 7
5. Out of balance 7, 3 Points are ERP Implementation
6. 2 Points are HSE / OSHAS Implementation
7. 2 Points are Quality manager & Purchase Manager recruitment.
6. Ref. # Process Findings / Observations Counter Measures ECD ACD Resp. Status
1.1 Supplier to give details of quality
approvals held (i.e. ISO 9001,
AQAP etc.). Does the scope of
certification approval (ISO, AQAP
etc.) cover the requirements of
the product or service being
purchased?
Risk and Capability assessment
has not performed at RFQ
stage
Risk and Capacity assessment to
be performed for all projects at RFQ
stage
Closed
PMO not established to avoid
delays in delivery of POs
Dedicated PMO to be established-
Aerospace domain experience to be
hired
Sep 2022 HR Open
Risk Assessment Risk Planning
Evidences for closure
7. Ref. # Process Findings / Observations Counter Measures ECD ACD Resp. Status
1.2 Is there a clear Quality focus
(Quality Manager) for the
business and is the position
identified on an organisational
chart?
Inadequate team strength in QA
dept.
Adequate team members filled in
QA dept. to perform QC, QA and
SQA activities.
QA Manager also appointed
Closed
Ref. # Process Findings / Observations Counter Measures ECD ACD Owner Status
1.3 Supplier to demonstrate the
process of how purchase orders
raised on sub-contractors to flow
down customer requirements +
are regular audits conducted with
the sub contractors?
Evidence not found for
Procurement SOP- Bought out
parts, Raw material, Machined
Parts, Special Process
The followings will be enhanced,
Annexure for PO Terms and
Conditions
Supplier Questionnaire
Supplier Registration
Supplier Evaluation and Approval
Supplier Performance Rating
Closed
Approved supplier list is not
updated with supplier details for
BAE projects, like Dollinger,
Gallagher, Fluitek, etc.
Needs to be updated Approved
Suppliers List
Closed
Supplier
Questionaire
Supplier
Registration
Supplier
Evaluation
Supplier Rating List of approved
Suppliers
8. Ref. # Process Findings / Observations Counter Measures ECD ACD Resp. Status
1.5 Supplier to demonstrate how
purchased / sub-contract items
are verified as meeting
requirements prior to use
(First Article Inspection -FAI)
1) Corrective actions to be
taken for recovery in the
delivery timelines for existing
projects.
2)Preventive actions to avoid
such delays in future projects
3)Q2Q to submit detailed report
on "Lessons learned" during
implementation of the current
projects
TGR/TGW format available and
made sample for Header Tank
projects, it was reviewed and
approved.(Refer to next slide for
evidence)
Closed
Further the same will be deployed
for all projects, and we will submit to
BAE team for review.
Closed
1.7 Supplier has robust processes
adopted to ensure the
implementation and verification of
cause and corrective actions?
SQE Appointed for all outside
process & items inspection /
verification
Closed
For AHS Racks root cause analysis
to be done for delay, and
Welding process improvement plan
to be shared with BAE.
Closed
Welding
Improvements
9. Improvements:
• We make TGR, TGW for existing projects and in future this will be incorporated with BAE-SCM sheet for weekly review.
• For the KPI- Each departments will be evaluated based on KPI – Performance data on quarterly basis.
Quality Focus
10. Ref. # Process Findings / Observations Counter Measures ECD ACD Resp. Status
2.1,
2.3,
2.5,
2.7
Has the supplier identified in the
organisation structure a senior
manager responsible for EHS?
No authorized personnel found
for EHS lead
Obtained EHS lead closed
ISO 14001 & 45001 certification
not found
ISO 14001 & 45001 certification
readiness on progress
Consultant fixed
Dec 2022
3.4 International Traffic in Arms
Regulations (ITAR) - Does the
supplier have a process in place
to manage export /Import
Compliance including but not
limited to the International Traffic
in Arms Regulations?
Evidences not found for the
followings,
a) Procedure related to export
control document handling
b) No training records for new &
existing employees
c) Internal audit related to
Export control compliances
SOP, Training, Internal Audit plan
needs to be implemented
Sep 2022
3.5 Ethics - Does the supplier have a
code of conduct with ethical
principles and standards
regarding the prevention of
bribery and corruption i.e.
prohibition of corrupt practices,
policy on facilitation payments,
political donations and gifts and
hospitality including sanctions for
non-compliance?
Ethics and code of conduct not
found
Training to be provided for existing
employees
Henceforth new employee will
obtain the training in day one itself
Closed
11. Ref. # Process Findings / Observations Counter Measures ECD ACD Resp. Status
3.7 Sustainable Development (SD) -
Does the supplier understand
the concept of sustainability
relating to the maintenance and
enhancement of environmental,
social and economic resources,
in order to meet the need of
current and future generations?
SOP not found for sustainable
development of EHS
Consultant fixed for preparing
documents and policies for
ISO14001, 45001
Dec 2022 QA Open
Training will be provided to all
employees
Dec 2022 QA Open
3.8 Business Continuity
Management (BCM) - Does the
supplier have business continuity
contingency, or major incident
recovery plans in place to
ensure contracted BAE Systems
deliveries are maintained?
Succession plans not found to
ensure Business Continuity
Succession plan to be made for all
critical functions
Sep 2022 PPC/PMO Open
Not found Business continuity
plan
Business Continuity plan to be
made for critical functions and
equipment’s
Sep 2022 PPC/PMO Open
3.9 Lean Manufacturing - Does the
supplier adopt lean
manufacturing, such as process
mapping, 5S workplace
organisation, 7 wastes, root
cause analysis etc ?
TPM in the organization to
ensure equipment run-time to
meet the production
requirements.
Training to be provided to all the
employees and training records to
be maintained
Closed
4.9 Does the supplier measure of
production line efficiency and
manage capacity planning?
OEE is not being monitored 1) OEE monitored and reported to
management on monthly basis
and displayed in Production
area
2) - OEE for May 2022- need to
add next slide.
Closed
12.
13. Ref. # Process Findings / Observations Counter Measures ECD ACD Resp. Status
4.10 Does the supplier have
production issue boards (4M),
how regular are meetings
attended around the boards and
what are the outputs?
1) No monitoring of action items
evident & list of attendees. No
objective evidence for review
happening with top leadership.
1)No monitoring of action items
evident & list of attendees.
No objective evidence for review
happening with top leadership.
closed
4.1 Does the supplier hold a
company organisation chart?
1) Project Management as
function not included in Org.
chart. No dedicated Project
Manager.
2) Organization Structure to be
strengthened as multiple
positions are vacant.
1)Project Management as function
to be included in Org. chart.
Dedicated Project Manager to be
deputed.
2Project Manager will be appointed
soon- Interview process on going
Closed
1)Organization Structure to be
strengthened as multiple positions
are vacant.
2)Hiring process Plan Made. HR
closely working on it to fill all open
positions
4.4,6.1
2,6.2
Does the supplier have a
documented contract review
process, including risk mitigation
plans identified and in place prior
to contract award?
No ERP or SAP system being
followed.
1) Oursys ERP- Implementation
process is in progress.
2)All team members working for the
documents input to the ERP. From
Aug’2022 ERP will go live.
Closed
1)All machine details, instruments
details will be uploaded in ERP,
which will trigger us periodic
maintenance, calibration based on
the frequency what we set during
creation of data.
WIP
16. • Manpower Allocation & Open Positions
DEPARTMENT No. of Employees To be added D. O. Joinng
Production 21 1 Offer released
Manufacturing Engg. 6 0
Quality Control 5 2 9th May 2022 & Yet to finalize
Finishing & Deburring 4 0
Welding 3 0
PPC 2 1 To be recruit
Tool Room 2 0
Accounts 1 0
Assembly 1 1
Finished Goods & Logistics 2 0
Human Resources 1 1 Before 15th April 2022
Director - Operations 1 0
PMO 0 1 Interview done, yet to confirm the Joining date
Purchase 0 2 15th April 2022 &Yet to finalize
Grand Total 49 8
17. Before: After:
• No ERP • Oursys ERP finalized – To be start from Mid of Mar’ 2022.
ERP
18. Ref. # Process Findings / Observations Counter Measures ECD ACD Resp. Status
4.6 Does the supplier have a documented
contract review process, including risk
mitigation plans identified and in place
prior to contract award?
1)Checklist being followed is generic &
doesn't include critical aspects viz.
Hardware parts procurement, Special
process etc. Contract review happening
at RFQ stage not after contract release.
1)Checklist to be reviewed to include all
critical aspects viz. Hardware parts
procurement, Special process etc.
2) Mechanism to be developed for Contract
review after contract release.
closed
2) Risk register to be strengthened viz.
RM delay issue should be identified as
risk for on-time delivery
1)Now we made new format to cover all the
aspects for Risks and contract review for all
RFQ packages and received Projects we
analysed the risk and Mitigation actions
taken.
4.7 Does the supplier have access to any
databases to get copies of both national
and international standards to support
the manufacturing processes?
1) Q2Q is not having any subscription.
No Master list of national &
international standards evident.
2)No mechanism demonstrated to
ensure latest standards being followed.
Directly procured or download various
standards on the respective websites.
Closed
4.12 How does the supplier flow down critical
- contractual requirements fed down to
the internal production line
(manufacturing instruction - route card)
to ensure compliance during
manufacturing processing?
No evidence demonstrated for
Hydrostatic testing requirements not
flowed down to production line for
Header tank.
1)Current product MO and setup sheets to
be revisited to ensure that all the critical and
contractual requirements- Currently it is
done by making process flow chart and
Manufacturing build book.
closed
4.13 Are all sub-contractors approved,
effectively managed and audited on a
regular basis by the supplier, also has the
supplier a control plan in place to flow
down critical - contractual requirements
to his external sub contractors to ensure
compliance during the sub contracted
manufacturing processing?
Mechanism to strengthen to flow down
customer requirements to sub-
contractors.
1)Currently, Contract requirements are being
shared to special process suppliers by
Annexure to PO, which covers SP Matrix,
Masking drawing.
2)From May’2022 all PO requirements will
be captured and flow down thru ERP.
3)For raw material, drawing requirements
and standard requirements to be send to RM
suppliers with PO.
Closed
20. Improvements:
• Current Router format revised to cover complete process flow to include PO & Special requirements. .
• For Special Process Suppliers along with PO’s we are issuing Special Process matrix and Masking drawings.
Contract Requirements Flow down
21. Ref. # Process Findings / Observations Counter Measures ECD ACD
Gap
(In days) Owner Status
5.10 Has the supplier facility sufficient lifting
and handing capability (overhead crane
or forklift truck(s))?
1)Some large parts were placed on
foam sheets and wooden pallets on
floors. Trolleys to be designed for
handling parts during APQP stage.
1)Contract study report will capture Material
Handling requirements.
2)Format revised to capture and cover all
requirements during RFQ stage itself.
closed
