Date: 201405
Local time of day: 0601-1200
Location: TEB.Airport, NJ
Flight conditions: VMC
Weather elements / visibility: 10
Light: Daylight
Aircraft: Challenger Jet Undifferentiated or Other Model
Operator: Corporate
Operating under: Part 91
Flight plan: IFR
Mission: Passenger
Flight phase: Initial Climb
Airspace: Class B EWR
ATC / advisory: TRACON N90
Aircraft component: FMS/FMC
Component problem: Improperly Operated
Reporter organization: Corporate
Reporter function: Captain; Pilot Not Flying
Reporter qualification: Flight Crew Air Transport Pilot (ATP); Flight Crew Multiengine
Human factors: Workload; Human-Machine Interface; Communication Breakdown; Confusion
Second reporter function: First Officer; Pilot Flying
Anomaly: Deviation - Altitude Crossing Restriction Not Met; Deviation - Altitude Overshoot; Deviation - Track / Heading All Types; Deviation / Discrepancy - Procedural Clearance; Deviation / Discrepancy - Procedural Published Material / Policy
Detector: Person Flight Crew; Person Air Traffic Control
When detected: In-flight
Result: Air Traffic Control Issued Advisory / Alert; Flight Crew Returned To Clearance; Flight Crew Became Reoriented; Flight Crew Took Evasive Action
Contributing factors: Procedure; Human Factors
Primary problem: Human Factors

Narrative: [We were] departing TEB Runway 24 via the RUUDY4 departure on the initial climb and course. We were set up for; and had briefed that we would engage the autopilot to fly the RNAV SID. After takeoff and gear up we engaged the autopilot with NAV and VNAV selected and turned the Autothrottle System ON. At the first fix where we were to make a 20 degree turn to the right to intercept the 260 degree course to the next intersection (WENTZ) at 1;500 FT. It was at the unnamed point where we were to turn from 240 to 260 that we recognized that the autopilot was not initiating the turn or level off. The pilot flying disconnected the autopilot and immediately turned the airplane toward the WENTZ Intersection and arrested the climb. At that point we were above 1;500 and near 2;000 FT so he continued to nose over and bank the airplane to get back down to 1;500 FT. At this point ATC was talking to us and giving us instructions to descend to 1;500 [FT] and take up a heading of 280 which we did as promptly and safely as possible.The contributing factors leading up to the event was primarily the failure of both of us to recognize that the FMS was not selected to the right mode of navigation. Thus the autopilot did not fly the prescribed and expected course. The deviation from the departure profile; though caught by both of us relatively quickly; was not easily remedied due to the nature of that section of the departure and the performance of the airplane. To correct the causation of this situation the crew will need to adopt a departure briefing that includes the Navigation Mode of the FMS.


Second narrative: [Report narrative contained no additional information].


Synopsis: A CL60 departed on the TEB Runway 24 RUUDY 4 SID but because an incorrect FMS Mode as selected the aircraft did not level at 1;500 FT nor turn to the 260 heading. The pilot flying was correcting as ATC called with a track and descent clearance.