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Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 0 Chapter: 0 Page 1
SUPPLY CHAIN MANUAL
Official Corresponding Address
Asia AeroTechnic Sdn. Bhd.
M14, SkyPark terminal
Sultan Abdul Aziz shah Airport
47200 Subang Selangor Darul Ehsan
Malaysia.
Phone: + 603 78452980
e-mail: [email protected]
Doc. No. AAT/SC/001
SUPPLY CHAIN MANUAL
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0.1 TABLE OF CONTENTS
PART 0 INTRODUCTION
0.0 TITLE PAGE
0.1 TABLE OF CONTENTS
0.2 RECORDS OF REVISION
0.3 LIST OF EFFECTIVE PAGES
0.4 DISTRIBUTION LIST
0.5 ABBREVIATIONS
0.6 PURPOSE OF MANUAL
PART 1 MANAGEMENT
1.1 OVERVIEW
1.2 SUPPLY CHAIN DEPT ORGANISATION CHART
1.3 TERMS OF REFERENCE
1.4 FLOWCHART – MATERIAL FLOW PROCESS
PART 2 POLICY AND PROCEDURES OF PURCHASING & MATERIAL
PLANNING DEPARTMENT
2.1 PURCHASING POLICY
2.2 MATERIAL PLANNING POLICY
2.3 SUPPLIER SELECTION AND CONTROL
2.4 SUPPLIER DELECTION OR SUSPENSION
2.5 SUPPLIER PERFORMANCE
2.6 PART NUMBER CREATION
2.7 ALTERNATE PART NUMBER INVENTORY CREATION
2.8 PROCUREMENT OF AIRCRAFT SPARES
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PART 3 POLICY AND PROCEDURES OF LOGISTICS DEPARTMENT
3.1 LOGISTICS POLICY
3.2 GOODS RECEIPT PROCEDURE
3.3 MATERIALS REQUISITION & ISSUING OF SPARES
3.4 QUARANTINE STORE
3.5 UNSERVICEABLE COMPONENT PROCESSING
3.6 PACKAGING & SHIPPING OF DANGEROUS GOODS
REGULATIONS MATERIALS
3.7 DISPOSAL OF SCRAPPED MATERIALS
3.8 STOCK CHECK
3.9 MATERIAL CREDIT OF SPARES ISSUED BUT NOT USED
3.10 ACCEPTANCE/INSPECTION OF CUSTOMER’S OWN PROPERTY
(COP)
3.11. TOOLS AND EQUIPMENTS LOAN
PART 4 STORES INSPECTION
4.1 AUTHORISED RELEASE CERTIFICATES FILING
4.2 SHELF LIFE CONTROL
4.3 SELF AUDIT
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PART 5 APPENDICES
5.1 SUPPLIER EVALUATION FORM
5.2 QUARANTINE NOTE
5.3 SUPPLIER APPROVAL FORM
5.4 SUPPLIER APPROVAL QUESTIONNAIRE
5.5 AAT SUPPLIER APPROVED LIST
5.6 SCRAPPED MATERIALS DISPOSAL FORM
5.7 SHELF LIFE CALLOUT SHEET
5.8 GOODS RECEIVE NOTE
5.9 MATERIAL REQUISITION
5.10 MATERIAL DRAWN NOT USE
5.11 SHIPPING NOTE
5.12 PURCHASE REQUEST
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0.2 RECORDS OF REVISION
Revision No. Revision Date Inserted by Inserted Date Signature
0 1st August 2015
SUPPLY CHAIN MANUAL
DEPARTMENTAL HEAD
APPROVAL
POSITION: DATE:
SENIOR MANAGER, QUALITY ASSURANCE
ACCEPTANCE
POSITION: DATE:
ISSUE NO.: INITIAL REV. NO.:0
DATE: 1 AUG 2015
PART:0, CHAPTER:3, PAGE:1
SUPPLY CHAIN MANUAL
DEPARTMENTAL HEAD
APPROVAL
POSITION: DATE:
SENIOR MANAGER, QUALITY ASSURANCE
ACCEPTANCE
POSITION: DATE:
ISSUE NO.: INITIAL REV. NO.:0
DATE: 1 AUG 2015
PART:0, CHAPTER:3, PAGE:2
SUPPLY CHAIN MANUAL
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0.4 DISTRIBUTION LIST
SCM Copy Number SCM Holder Format
AAT/SC/001 Technical Publication Hard and Soft Copy
AAT/SC/002 Accountable Manager Soft Copy
AAT/SC/003 Supply Chain Manager Hard Copy
AAT/SC/004 Material Store Hard Copy
AAT/SC/005 SMQA Soft Copy
AAT/SC/006 Quality Assurance Office Hard and Soft Copy
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0.5 ABBREVIATIONS
AAT: Asia AeroTechnic Sdn Bhd
AD: Airworthiness Directive
AOG: Aircraft on Ground
ARC: Airworthiness release certificate
ATA: Air Transport Association
CAAIP: Civil Aviation Airworthiness Inspection Procedures
C of A: Certificate of Airworthiness
CMM: Component Maintenance Manual
COP: Customer Owned Property
DCA-M: Directorate of Civil Aviation of Malaysia.
DGR: Dangerous Goods Regulations
DR: Discrepancy Report
EO: Engineering Order
EOQ: Economic Order Quantity
ESD: Electro static Devices
GRN: Goods Receipt Note
i.a.w.: In Accordance With
ILS: Inventory Locator System
LEP: List of Effective Pages
LLP: Life Limited Parts
MEL: Minimum Equipment List
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MOE: Maintenance Organization Exposition
MRO: Maintenance, Repair and Overhaul
MSN: Manufacturer Serial Number
NAA: National Aviation Authorities
NDT: Non Destructive Testing
OEM: Original Equipment Manufacturer
OSIP: Overhaul Schedule Inspection Procedure
PMA: Parts Manufacture Approval
PO: Purchase Order.
QN: Quality Notices
RFQ: Request for Quotation
SMQA: Senior Manager, Quality Assurance
SB: Service Bulletin
SIL: Service Information Letter
SMS: Safety Management System
SOP: Standard Operating Procedures
SPOG: Sealants, Paints, Oil, Grease
U/S: Unserviceable
IPC: Illustrated Parts Catalog
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0.6 PURPOSE OF THE MANUAL
1. To define the functional responsibilities of each section and senior position in
the Department to ensure the clarity of roles, the authority and accountability
of work.
2. To lay down the essential policy guidelines to regulate the activities of the
Department to within manageable limits and along the desirable course for
achieving the departmental objectives in conformance with the Company
interest.
3. To provide procedures necessary for the best performance, coordination and
stabilization of methods and models of operation in the Department.
4. To establish essential rules and regulations for maintaining good discipline,
administrative control and working conditions in the Department.
It shall be noted that it is not the intention of this Manual to contradict the
requirements of the regulatory authorities in any way.
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PART 1
MANAGEMENT
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1.1 OVERVIEW
1. The department is headed by Manager Supply Chain who reports directly to
Manager, Finance and administratively to Chief Operating Officer.
2. Its Mission: “To provide an optimum and efficient spares support service to
Engineering.”
3. In meeting its mission, it has to:
a. Work with Quality Assurance Department to establish an Approved
Suppliers and Sub-Contractors Directory supported by regular audits.
b. Establish and operate a Bonded Warehouse and meeting
Airworthiness requirements and Practices.
c. Maintain an inventory level to support Engineering in meeting its
Maintenance targets.
d. Provide an efficient logistics services.
e. Provide continuous training of staff.
4. The organisation structure has 3 operational sections:
a. Purchase and Material Planning section
Responsible for material planning of optimum stock level, sourcing
and procurement of inventory including sourcing of Repairers for
components when required. This includes order management and
supplier performance evaluation.
b. Logistic section
Responsible for warehousing and logistics’ services related to
materials handling to support Engineering operation.
c. Stores Inspection section
Responsible for quality control of material receipt, storage shelf life
management and assisting to ensure the department comply with
Airworthiness regulations and requirements
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1.2 ORGANISATION STRUCTURE
Organisation Chart
Chief Operating Officer
Mohd Roslan Ismail
Manager, Finance
Lela Sari Che Rose
Manager, Supply Chain
Frank Loo
Stores Inspector
TBA
Senior Manager,
Quality Assurance
Mejar Singh
Purchasing &
Material Planning
Executive
TBA
Logistic Executive
TBA
Storekeeper/Driver
TBA
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1.3 TERM OF REFERENCE
A. Position:
MANAGER, SUPPLY CHAIN (SC)
B
Reports To: MANAGER. FINANCE
C
Responsibilities:
1 To institute a suitable organisational structure in the Supply Chain (SC)
Department.
2 To establish and maintain an effective and economical administration
system in the Supply Chain Department.
3 To ensure that aircraft supplies are procured from AsiaAeroTechnic
approved sources.
4 To ensure that relevant regulatory requirements are adhered to in respect
of purchasing spares and services by monitoring and assessing supplier
performance.
5 To implement an effective system of processing invoices for payment by
Finance Department.
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6 To induce a positive attitude and response in the personnel of Supply
Chain Department on the needs to observe industrial safety regulations,
procedures and practices for the protection of their own as well as Asia
AeroTechnic’s interest.
7 To ensure that the Supply Chain personnel are In possession of correct
skills, are given appropriate training, are up-to-date with the latest
methods, procedures and requirements, and are of sufficient strength to
accomplish the work effectively. Maintain the record of staff training.
8 Responsible to undertake the necessary corrective and preventive actions
resulting from the Quality Audit Programme.
9 To ensure a proper housekeeping programme being implemented in the
respective work areas.
10 To carry out all other tasks as directed by the superior.
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1.3.2 DESIGNATION: LOGISTIC EXECUTIVE
FUNCTION: To provide an efficient warehouse and logistics support in meeting
materials requirements for maintenance operation.
REPORTS TO: Manager, Supply Chain
Duties and Responsibilities
1. Warehouse Structure: Implement a warehouse binning structure that provides an efficient storage identification/location of spares. Ensure warehouse zones/locations are clearly identified.
2. Services: Implement an efficient system to manage the Despatch, Shipping, Issue and Delivery of materials to Maintenance.
3. Receiving: Manage an efficient process of material receiving, pre-binning and binning all aircraft materials.
4. Manage Flammable items in accordance with its storage requirements.
5. Stock Check: Conduct Stock check program to meet Annual Cycle check and Ad hoc checks.
6. Surplus: Identify surplus materials within the warehouse to facilitate sales.
7. Shift Operation: Maintain a shift roster providing 24/7 logistic support.
8. Self Audit: Implement a self audit program.
9. Others: Any additional task given by immediate superior to be carried out.
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1.3.3 DESIGNATION: PURCHASING & MATERIAL PLANNING EXECUTIVE
FUNCTION: Implement (i) Material requirement planning and to ensure
correct inventory level of expendable materials; (ii) an efficient
and effective materials Purchases ensuring availability of
aircraft spares, components and commercial material and (iii) an
efficient and effective components and equipment repair
processes to meet production’s requirements.
REPORTS TO: Manager, Supply Chain
Duties and Responsibilities:
1. Material Planning: Coordinate with Engineering Maintenance to Prepare
Bill of Materials for each aircraft check and components repair/overhaul
work to ensure all materials required are available.
2. Replenishment: Ensure timely and correct level of replenishment of
inventory to avoid disruption to operation.
3. Analysis: Analyse historical data on material usage, nil/not stock and to recommend specific action to alleviate the problem.
4. Initial Provisioning: Perform initial provisioning activities to support introduction of new aircraft fleet capability.
5. Non Moving and Surplus: Review inventory holding to identify Non Moving and Surplus according to set guidelines for sale and contain inventory holdings
6. Procurement: Carry out purchasing and repair activities to ensure procurements of required parts and service are done in timely manner and in accordance with company procedures and airworthiness requirements.
7. Expenditure: Implement processes to analyse purchases expenditure.
8. Order Administration: Implement an order progress process to monitor all orders and to identify delinquent orders.
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9. Supplier Selection: Maintain an updated Approved Supplier Directory in conjunction with Quality Assurance Dept.
10. Supplier Performance: Record supplier performance issues and to co-ordinate periodic review including discussion with affected suppliers
11. Market Research: Continuously conduct market research for up-to-date sourcing and pricing.
12. Warranty: Implement warranty procedures and track all warranty control
and claims.
13. Others: Assume and undertake any other functions / assignments as
directed.
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1.3.4 DESIGNATION: STORES INSPECTOR
FUNCTION: Implement and manage the quality standards to maintain an
airworthiness bonded warehouse including receiving of
approved materials in accordance with airworthiness and
company requirements.
REPORTS TO: Manager, Supply Chain
Duties and Responsibilities
1. Receipt: Receive Technical spares into Stores in accordance with
Company and DCA requirements.
2. Administration: (i) Implement an effective system to keep up-to-date
information on Quality Control and Quality Assurance issues inclusive of
compliance to requirements stated in Quality Assurance Procedures
Manual.
(ii) Maintain an effective and efficient archiving and retrieving of
Authorised Released Certificates.
3. Shelf Life: Implement an effective Shelf Life Control program to record,
callout and control of materials shelf life within the Bonded warehouse.
4. Audit: Implement a Stores Surveillance program including a temperature
and humidity reading schedule.
5. Quarantine: Implement an efficient process for managing materials under
discrepancies and materials under Quarantine.
6. External Audit: Liaise with Auditors performing internal and external
airworthiness audits and ensure timely response to audit findings.
7. Others: To carry out any other task as directed by the superior.
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1.4 MATERIALS FLOW CHART OVERVIEW
Production
U/S Components
TX Equipt
OK
NOK
AOG
Inspection
Bonded
Stores
Purchasing
Spares
Issues
Stores U/S
Holding Racks
OK NOK Quarantine
Despatch
Section
SUPPLIERS
Forwarders
Receiving
Forwarders
Customer
s
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PART 2
POLICY AND PROCEDURES OF
PURCHASING & MATERIAL PLANNING
DEPARTMENT
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2.1 PURCHASING POLICIES
2.1.1 PURPOSE
To outline the purchasing and repair policies for the procurement of
goods and services.
2.1.2 GOVERNMENT POLICIES
The Government policy states that local industries shall be supported in
that where specific locally manufactured goods can be obtained; such
goods should be purchased locally rather than purchasing goods of
similar specifications from overseas. The Company will be well justified to
consider purchasing from overseas where substantial savings could be
made by purchasing from oversea/foreign sources after taking advantage
of the Company's exemption for Custom duties and taxes.
2.1.3 COMPANY POLICIES
1. Purchasing Department is responsible for procurement and
inventory management of all aeronautical parts. Non aeronautical
materials such as tools and equipment and its related spares shall
be procured by Materials Dept and transfer to end users as
custodian.
2. Purchasing Authority:
i. Engineering Materials Department is responsible for all
supplier contracts and negotiations in relation to purchases of
Aircraft Spares and specialised Equipment and Tools.
ii. Engineering Materials Department, as the Purchasing
Authority, shall exercise authority to question purchase requisitions for any apparent excess or unrealistic requirements, departures from standards or needs which may be fulfilled from available resources.
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3. Purchasing Department shall raise Purchase Orders under the following circumstances:
i. For normal stock replenishment of aeronautical parts.
ii. For initial provisioning of aeronautical items for new aircraft
type and its associated workshop development.
4. Conflict of Interest
Existing and intended relationships which give or may give a
conflict of interest shall be disclosed to the departmental head and
shall require specific approval from Human Resources Dept.
Situation should be avoided where staff has to act where there is
conflict of interest.
5. Confidentiality
At all times, designs and proposals including terms and conditions
of sale offered by a supplier shall not be divulged to competitors
except with the written approval of the supplier or in exceptional
cases, with the written approval of the departmental head or
Human Resources Dept.
6. Product Selection
Product shall be selected on the basis of 'Best Price' i.e. on
quality, price and with due consideration given to secondary
influences such as Custom duties, taxes, transportation and other
indirect cost together with supplier standards and conditions of
sale in matter of discounts, terms of payment, point of FOB
delivery, documentation, packing, and where applicable, after-
sales support, warranty, responsiveness to emergency, research
and development, packing of the product, shelf stock, minimum
order values, buy-back clauses, delivery lead times, rejection
history and price stability history of the supplier.
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7. Long Term Contracts
Long-term contracts, which promote competitive buying under
controlled price and performance conditions and terms
advantageous to the Company over the period of services
required, shall be encouraged provided the Company's right to
cancellation is protected.
8. Supplier's Directory
An up to-date Suppliers Directory shall be maintained. This
directory shall list all approved suppliers, supplier’s category and
in the case of commercial suppliers also the products. All items
shall be purchased from the suppliers listed in the Suppliers
Directory except for purchase of low value non-recurring incidents.
9. Sourcing
A suppliers’ data bank should be maintained to enable a quick and
effective sources for quotations and selection. Suppliers’ data
includes availability, pricing, price validity and lead time.
10. Surplus Purchase
Surplus materials are acceptable subject its availability of
certification and where applicable, its back-to-birth records.
Extreme caution must be exercised when purchasing surplus life-
limited part (LLP).
11. Purchase of PMA parts
Purchase of PMA parts must be guided by guidelines issued by
DCAM, Engineering Manager and Quality Assurance Manager.
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12. Methods of Purchase Authority
i. Direct Negotiation
Direct negotiation is a method by which the Purchasing
Department will purchase the required goods or services
through negotiating directly with the supplier for the best price.
ii. Calling for Quotation
Calling for quotation is a method by which the Purchasing
Department will purchase the required goods or services
through asking for quotation from at least three suppliers for
selection of best price.
iii. Technical Spares of a Proprietary Nature
The purchase of such items shall be made through direct
negotiation with the manufacturer or the sole approved supplier.
The financial advantage of dealing direct with manufacturer
rather than stockists or agents shall be considered.
iv. Technical Spares of a Non-Proprietary Nature
a) Annual consumption less than RM1000
The purchase of such items shall be made by
Purchasing Department through direct negotiation
with suppliers.
b) Annual consumption more than RM1000.00
The purchase of such items shall be made by
Purchasing Department through calling for
quotation. Supplier performance and the list
purchase price should be considered when
deciding on the purchase.
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13. Urgently Required Items
The purchase of urgently required items shall be made by
Purchasing Department with the authorisation of Senior Manager,
or General Manager. Purchase may, except for essential
documentation, be carried out without having to go through the
normal purchasing procedure.
Where possible, demands of all items shall be planned and
established well in advance of time of need so that purchase can
and will be made in reasonable time to meet requirement, and
thus minimise the need to make urgent purchase which normally
carry a surcharge.
14. Non-Manufacturer recommended (alternate tools & equipment)
At times there could be a need to locally fabricate tools/equipment
as an alternate to manufacturer’s tools/equipment to complete the
maintenance task.
For local fabrication at external organizations, the facility must be
approved by Quality Assurance Dept for the intended work scope
before such fabrication is undertaken.
15. Quantity to be purchased
The quantity to be purchased shall be in accordance with the
Inventory & Material policy.
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16. Reason to Purchase
Purchases are initiated by one of the following reasons:
i. Purchase based on the request of new items. ii. Purchase based on stock balance reaching orders points. iii. Purchase for initial provisioning.
iv. Purchase based for A.O.G requirements or urgent
requirement.
17. Authorised Signatories for Purchase / Repair Orders
The approving signature on the Purchase Order shall be as
follows based total value and/or per item extension price:-
Amount (RM) Approving Signatories On the Purchase Order
<100,000 Manager
100,001 – 500,000 Director
500,001 – 1,000,000 COO
Above 1,000,000 Board of Directors
18. Deviation from Policies
Deviation from, and/or amendments to any of the above
Purchasing policies shall be approved by Manager, Senior
Manager, Director or COO.
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2.2 MATERIAL PLANNING POLICIES
2.2.1. INTRODUCTION
The following pages are intended to guide Material Planning staff on
broad policies on inventory control on the premise of planning at the
right time, price and quantity, to strike a balance of stock out and the
cost of providing a service.
2.2.2 OBJECTIVE
Even though inventory of materials is an idle resource, an ideal
situation will be achieved when inventories are brought down to
negligible level. However, it is necessary to maintain optimum
inventories for smooth functioning of the organisation. The following
pages describe broadly the inventory control procedures with the
following objectives.
1. To reduce financial investment
The sole aim of Material Planning is to manage inventories,
and provide service balancing with its budgetary constraints.
2. To avoid losses due Redundancy/Obsolescence
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2.2.3 PRINCIPAL FACTORS
The principal factors in material provisioning to be dealt with are:-
1. The identification of spares to a common standard i.e.
classification by nature of parts. Within natural classification,
further sub-classification is necessary for better control.
2. Provisioning for all classes of spares for a new type of aircraft
capability via initial provisioning.
3. Provisioning policies on Rotable, Repairable and Recoverable
spares is excluded.
4. Replenishment action for expendable class of spares with
historical data.
5. Provisioning of insurance and high cost spares.
6. Service level.
Service level is a measure of how well the Department serves
customers. It is the number of demands satisfied for every one
hundred demands made. Our planned service level target
should be 92% on Standard Hardware and Consumables.
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2.2.4 CLASSIFICATION OF SPARES
1. This is aimed at quick and simple identification of spares to a standard for control purposes. Once classified, norms of inventory control apply to its own class of material or part. Normally, parts catalogue is a good guide for spares classification, and the initial provisioning data for a new type of aircraft provides this information as well. The first step of classification is by the nature of the item.
2. Expendable and Consumable parts. It is easy to identify these parts. They are defined as "items for which no authorized repair procedures exist" and removed parts are discarded. Re-provisioning of such items is based on issues which are treated as consumption. In this class of material, there are further sub-divisions which decide their being finally discarded.
This sub-division are:
a. 100% replacement parts. These are discarded and
replaced when removed. Examples of such parts are
Packing, O Ring, Seals, and Gaskets, Back up Rings,
Self Locking Nuts, Diaphragms, Sealed Bearings
(Based on overhaul manual recommendation), Nylok,
Screws, Cup Washers etc. The provisioning of such
parts need special care, since replacement is
mandatory and quantity per assembly, unit, component
and total quantity used for aircraft or engine must be
properly determined to ensure all conditions of
replacement are catered for by proper forecasting.
b. On condition parts. These are parts which are replaced
based on the condition of parts. Examples of such
parts are Open Bearings, Races, Brackets, Lamps,
Diodes, Dowel Pins, and Electrical Cables etc. The
provisioning of such parts can be based on past
consumption and known anticipated requirement.
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c. Hardware or attaching parts. These are on condition
type of parts where provisioning of parts can be based
on past consumption. Examples are Nuts, Bolts,
Rivets etc.
d. Bulk Material. These are direct material which are
used in the normal maintenance and overhaul
processes such as Sheet Metals, Rods, Tubings, Oil,
Sealant, Lubricants, Chemicals, and Fabrics etc.
3. Repairable Parts
It is not intended to stock this classification of material and
stocking if necessary shall be approved by Management. For
purpose of this manual, it is included for clarification and
training.
+These are parts which are removed as and when found
defective, and replaced or reconditioned to original serviceable
state by use of parts and known repair process. Provisioning is
based on their requirements i.e. on anticipated failure rate and
repair turnaround time.
Stock holding of these items is based on float and replacement
is on scrap page and not on issue.
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4. Rotables
It is not intended to stock this classification of material and
stocking if necessary shall be approved by Management. For
purpose of this manual, it is included for clarification and
training.
These are parts which are serial numbered, tracked for life
control and are either hard life or condition monitored items.
The stocking policy of such parts is also based on the failure
rate, repair turnaround time and other requirements such as
line station or simultaneous removal quantities. Replacement
is based on scrap page, hence the cycle time of these parts
must be closely monitored by all concerned so that optimum
stock level is realised within minimum capital outlay.
5. Insurance Items
It is not intended to stock this classification of material and
stocking if necessary shall be approved by Management. For
purpose of this manual, it is included for clarification and
training.
These are either expendable or repairable parts and are
normally not removed for maintenance activity unless
damaged, or corroded or found defective. A number of such
parts are high cost parts. These parts are normally not stocked
and are obtained on AOG basis on defect or are held in central
locations in consignment by the aircraft manufacturer or airline
agencies.
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6. Recoverable Items
These are parts which when removed due to a defect, are
routed to Workshop for restoring to original condition by
refurbishing. No detail parts are available. For accounting
purposes these are treated as expendable parts, but
provisioning of these parts needs careful planning as it follows
some processes like repairable parts. These parts are to be
checked for physical stock and quantity under repair before
replenishment.
2.2.5 INITIAL PROVISIONING
As a MRO organization, Initial Provisioning is confined to determine to
stock holding and stock level of Standard Hardware, Expendables and
Consumables associated with the maintenance of customers’ fleet at
hangar and workshops. A follow-up provisioning is carried out to cover
additional spares required to meet major check and overhaul work
scope and component servicing.
Offers of consignment stocks from manufacturer, distributors and
stockiest is reviewed with due considerations for cost effectiveness.
Items which can be locally fabricated either at own workshops or
approved external workshops are noted in Inventory data. Initial
purchasing of minimum stock may be necessary while evaluating
fabrication analysis.
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2.2.6 REPLENISHMENT SYSTEM FOR EXPENDABLE
These classes of spares are stocked to provide optimum support to
airline engineering operation and this can only be achieved when the
transaction data are provided to the provisioning staff on time and
accurately by computer application. Forecasting of expendable spares
requirement on a short time basis can be considered based on past
usage and future known work scope arising. Once this aspect is
established, what remains to be controlled is economical balance of
ordering and carrying cost. The order quantity can be economic but
service level stock margin, higher the service level but with higher
safety stock, average inventory level goes up. So a compromise on
safety stock and service level desired is struck.
1. Definition of Factors
Inventory Stock Level determination is a mathematical
computation dependant on some critical factors.
Understanding these factors is important for control and its
cost effectiveness contribution.
a. Lead Time
Lead Time starts from the moment a stock requirement is
raised by user or when stock balance reaches its alert
parameters till new stock is received into stock bins. Within
this time interval, several processes/activities are involved.
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i. *Requisition/Stock alert ii. *Determination of inventory quantity iii. *Source for quotation iv. *Quotation approval v. *Purchase Order creation vi. *Purchase Order approval vii. *Purchase Order entry with supplier viii. Supplier Lead Time ix. Shipping from supplier x. Flight scheduling xi. *Customs clearance – import (nb: permit
requirement lengthened this time) xii. *Receiving and Inspection (nb: Discrepancy
lengthened this time) xiii. *Binning
This lead time is divided in two parts i.e.: Internal lead time
which are indicated with (*) and suppliers lead time. It is
important to know our internal lead time and efforts made to
improve the processes as today’s market sources is working
towards shorter supplier lead time.
b. Price
For all parts prices must be updated in record from
manufacturer’s price list or approved stockist price list. If not,
obtain price quote.
For quick purchase action price from last fulfilled order if
within a year may be used or estimated.
Price break, quantity discount, minimum line value, minimum
order value, standard package, minimum sales quantity are
also stored as historical data.
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2. Economic Order Quantity
EOQ i.e. Economic Order Quantity should be used as
recommendation to purchase material requirement. When
ordering cost and inventory carrying costs are the least, the
quantity is called economic quantity. The two costs are
computed on various cost elements. However, in its simplest
form EOQ is derived as follows:-
A = Annual consumption of item
S = Cost of placing on order
I = Inventory carrying cost expressed in
percentage of cost of item
C = Cost of item
Q = EOQ
Q = 2AS
IC
Example:-
A (Annual Consumption) = 1800 ea
C (Unit Price) = $42.00
S (Cost of placing order) = $50.00
I (Inventory carrying cost) = 0.20 (20%)
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EOQ = 2 x 1800 x 50
0.2 x 42
= 146.38 say 146
Introducing the EOQ approach leads to further understanding
of 2 new factors:
a. Inventory Carrying Cost
The cost of carrying stock comprised of the following:
i. Loss of interest on capital invested in stock ii. Salaries of stores staff in managing stores iii. Rental of warehouse iv. Depreciation and repairs of stores, facilities and
handling equipment v. Losses due to obsolesce or pilferage vi. Stores Insurance Cost/Premium vii. Cost of stationery and consumables for stores
operation.
Generally this cost is estimated at 20%.
b. Cost of Placing an Order
The cost of raising order is made up of the following:
i. Staff Salaries ii. Depreciation of equipment iii. Office Rental iv. Cost of stationery v. Communication costs
The total annual cost apportioned over the total orders placed is
the cost per order.
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3. Inventory Level
When introducing an expendable part in inventory determine
the following:-
a. Estimated Consumption in 30 days = X
b. Lead Time in days (VLT + *45) = D
c. Unit Price of part = C
(*) establish our Internal Lead Time
Set parameter points as follows:-
Danger Point = Equivalent to 30 days (1 month)
Consumption (X)
Re-Order Point = Danger Point + Stock required to cover
Consumption during Lead Time.
Quote Point = A point midway between Re-order Point
+ Maximum Holding
Maximum Holding = Re-Order Point + Consumption during Lead
Time. (NB: this stock is equivalent to Safety
or Buffer Stock, hence double - refer ROP)
Initial order is base on Maximum Holding while subsequent
order based on alert parameter point will be the difference
between Maximum Holding and Stock on hand. Sometime,
considering consumption trends and lead time variations,
parameters points are reset if required. However before
ordering whenever in doubt, or as a routine depending upon
criticality of the part under review, physical stock check is
carried out so that ordering action would be accurate.
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4. Economic order quantity no doubt gives the minimum cost inventory plan, but EOQ itself is not the best method to determine airline inventory level. Besides other ordering factors such as discount quantity, minimum order quantity, minimum order value may override the calculated EOQ. Instead a Variable Quantity and Period Based combined with EOQ offers a better solution.
For material planning assessment, a standardize form
containing the following data shall be provided to enable a fast
and accurate parameter setting/review and order quantity.
YTD PRE LAST
USA JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YR PR YR
3 1 0 2 6 8
L.T. 30 PRICE 10.00 QTY/AC 4
Danger Point stock =
Re-Order Point stock =
Maximum Holding =
Quote Point stock =
5. Selecting the Appropriate Formula
Material Planner has the responsibility to identify the
consumption trend of each material under assessment and to
select the most appropriate stocking formula.
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6. Order Over-riding Factors
At times it is not feasible to order the calculated/recommended
quantities due to external factors:
i. Standard Package - Quantity to be revised to over this
requirement.
ii. Minimum Line Value - Quantity to be revised to cover this
requirement.
iii. Minimum Order Value - Here consolidation of orders is
necessary. Do note that order is not
to be held more than 15 days
pending additional orders for
consolidation purpose.
7. Single/Annual Order system
When assessing certain categories of materials, Material
Planners should consider recommending quantities for buyers
to evaluate applying a single or annual order with controlled
deliveries. Examples of such inventory:
i. Item which are fast-moving and of low value i.e. Class C items; or
ii. Routine check spares; or
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iii. Direct maintenance replacement spares such as
installation 100% replacement parts; or
iv. Wheels and brakes spares.
Inventory management requires technical skill and expertise of personnel
supported by an efficient support system. Inventory control system is not
'one time set and cycle forever' but needs resetting time to time as
conditions change.
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2.3 SUPPLIER/SUB-CONTRACTOR/REPAIRER SELECTION AND CONTROL
A. PURPOSE
This procedure outlines the steps to be taken when registering, or
amending, of suppliers in the Approved Supplier Directory. Suppliers
are classified as OEM (Original Equipment Manufacturer), Repairer,
Distributor, Stockist, Airline and PMA (Parts Manufacturing Approval).
This procedure also ensures that all Technical Suppliers meet the
requirements set by the relevant Aviation Authorities and Quality
Assurance Department.
B. FIELD OF APPLICATION
1. Manager Quality Assurance - SMQA
2. Manager, Supply Chain - MSC
3. Purchasing Executive - PE
4. Stores Inspector - SI
5. Originator - Orig
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C. GENERAL
1 All suppliers/sub-contractors of AAT will be approved by AAT SMQA and all
supplies will be sourced only from approved suppliers. The supplies include
aircraft components, spares, expendables, raw materials, tools/equipment
and consumables.
2 AAT may sub-contract such specialised works like plating, coatings, heat treatment, NDT, welding etc., for which in-house capability may not be available.
3 AAT may also sub-contract the maintenance activities to meet the operational requirements on a need to basis.
4 The sub-contractors services would be availed from either DCA-M approved or unapproved organisations.
5 The services from unapproved organisations will be utilized within the scope of work of AAT and will only be used after subjecting them to a quality system assessment comprising of specifically prepared quality plan, audit and an appropriate internal authorisation by the SMQA after review and approval.
6 The contract with the sub-contractor who are not approved by DCA-M or other regulatory authorities will clearly mention the provision of right of access to DCA-M.
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7 There are six categories of supplier:-
a. O.E.M. - Original Equipment Manufacturer
Approved by the aircraft manufacturer
b. Repairer- Authorised repairer or overhaul agency
approved by FAA, EASA, Malaysian
DCA, other relevant agencies or Quality
Assurance Dept.
c. Distributor- Appointed by O.E.M. as its approved
agents to market and distribute its items
& spare parts.
d. Stockist- Firms that obtain aircraft parts from
various sources, e.g. surplus market,
airlines, manufacturers from different
locations to a central location and offer
the parts for sale.
e. PMA - (Parts Manufacturing Approval)
These are manufacturing facilities that
are given production approvals to
produce and sell modification or
replacement parts directly for installation
on Supplier certified products.
f. Airlines- All Commercial Airlines
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8. Documentations required registering a Supplier/Sub-contractors. User department must fill in the Supplier Approval Form (SAF) no: Form No: AAT/ES/003 when requesting for the registration of a new Technical Supplier. The SAF must be accompanied with a Supplier Approval Questionnaire (SAQ) Form No: AAT/ES/004 which specify the required documents applicable to the categories of supplier described below:
a. O.E.M. - Aircraft manufacturer document / Initial
Provisioning Document / Illustrated Parts
Catalogue/ Component Maintenance Manual.
b. Repairer- O.E.M. approval / authorisation documents (If
any) Repair Agency Certificate (FAA and/or
EASA authority approval), Repairer Capability
List, Supplier Approval Questionnaire,
Repairer’s Quality Manual (uncontrolled),
Malaysia DCA Approval (For repairers based in
Asia)
c. Distributor- O.E.M. authorised letter of Distributorship
Supplier Approval Questionnaire, Distributor’s
Quality Manual (uncontrolled)
d. Stockist- Distributorship Letter (if any), Supplier Approval
Questionnaire, Approval Documents from the
respective Civil Aviation Authority (if any).
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PMA Supplier-Supplier Approval Questionnaire, Company Profile,
Supplier’s Quality Assurance Manual
(uncontrolled), PMA Approval Documents.
Note: Registration of a PMA supplier or PMA
manufacturing organisation prior authorization
has to be granted by Technical Services vide
an Alternate/PMA Part Authorisation before the
SAF to be submitted for MQA approval and a
copy of this authorization must be attached to
the SAF.
f. Airlines- If an Airline is to be registered also as a
Repairer
the following documentations are required :-
i. FAA and/or EASA authority
approval.
ii. Repair Agency Certificate
iii. Repair Capability List
iv. Malaysia DCA Approval (for
repairers based in Asia)
g. Engineer Tech. Services - Refer MOE item para. 2.6.6.
9. When submitting SAF ensures the following are complied with:-
a. For new Repair Suppliers the SAF must be certified by
Manager SC before it can be submitted to SMQA for approval.
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b. For repair suppliers to be registered in the system for the purpose of “Approval of repairer for receipt only” it must be certified by Purchasing and Repair Executive before it can be submitted to SMQA for approval. The request for this type of approval is for accepting a component into stores which was purchased from an approved supplier but the component was last certified & repaired by a repairer not currently registered in the system. To process this SAF, attach a FAA/EASA repair station certificate (with ratings & limitations) together with a copy of the Authorised Release Certificate of the component to be purchased. Supplier Approval Questionnaire is not required.
c. For “Once Off” suppliers it is required to state the reason for requesting as “Once-Off” in their SAF. The request for “once off” is for the approval to purchase from a supplier (stockist or distributor) due to an urgent or AOG requirement. The SAF for “Once Off” suppliers need to be certified by Manager Supply Chain before it can be submitted to SMQA for approval.
d. Where feasible prior notification to SMQA before a purchase
order can be entered with the Supplier is recommended and
the SAF is to be submitted with a copy of Authorised Release
Certificate (FAA/EASA Airworthiness Approval Tag) or
Certificate of Conformance for standard parts. Supplier
Approval Questionnaire is not required.
D. PROCEDURE
I. Technical Suppliers, Sub-contractors and Repairers based
outside Asia.
Orig 1. Complete the SAF attach all required
documents and forward to Purchasing
Executive.
PE 2. Vet the completed SAF. Check all relevant
documents are attached and forward MSC for
approval.
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MSC 3. Check the document and approved the SAF &
return to PE for submission to SMQA.
SMQA 4. SMQA to check the documents and
approve/reject and return to PE.
PE 5. If approved - Insert supplier data into systems
(assign Supplier Code). If rejected - Refer to
MSC.
II. For Repairers based in Asia
Note : Registration of Repairers based in Asia must have
Malaysian DCA Approval.
Orig 1. Submit reasons to use the Repairer to
Purchasing Executive with particulars of
Repairer capability by p/n, description and
aircraft type
PE 2. If agreeable, prepare an attachment letter of
intent to the Repairer. Submit all documents to
MSC for approval.
MSC 3. Approve/Reject. If approved, MSC shall write
to SMQA and attach a copy of the letter of
intent for SMQA to retain on file. If reject, MSC
shall advise PE/Originator.
PE 4. Upon receiving approval from MSC, shall send
the letter of intent to the Repairer.
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5. Once the Repairer has obtained an approval
from Malaysian DCA and a copy of the approval
received from the Repairer, submit all the
documents with a completed SAF per steps 1 to
5 above.
III. “Once-Off” Supplier, Sub-contractor or “Repairer For Receipt Only” approval
Note : Technical part is required to be purchased on a
one time basis due to AOG / urgent request,
and the request is for the specific approval to
purchase the part as stated in the SAF
PE 1. For “once-off” suppliers or “Repairer For
Receipt Only” if approved – proceed to order.
(Assign Supplier Code). If rejected due to
insufficient documents or additional clarification
required by SMQA, action accordingly
2. Upon approval from SMQA, extend a copy of
approved SAF to Stores Inspector.
3. Suspend the supplier code after the Purchase / Repair Order has been closed.
IV. Records
PE 1. File the SAF form together with all other
documents for record and inspection.
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2.4 SUPPLIER/SUB-CONTRACTOR DELETION OR SUSPENSION
A. PURPOSE
This procedure outlines the steps to be taken when deleting or
suspending of supplier registered in Supplier Directory.
B. FIELD OF APPLICATION
1. Senior Manager Quality Assurance - SMQA
2. Manager Supply Chain - MSC
3. Purchasing Executive - PE
C. GENERAL
1. Supplier Directory shall be kept current by maintaining a list of
approved suppliers and repairers where transactions are on-
going or with potential to transact.
2. Where feasible MSC/SMQA shall evaluate the number of Suppliers and Repairers excluding OEM as a guide.
3. Suppliers can be suspended or deleted for reasons as
follows:-
a. Suppliers who have been non active for 3 years except
for OEM which shall be 5 years non active. Airline
operators are exempted.
Note: To re-activate a non-active supplier it shall be
subjected to the registration of supplier process again.
b. As notified by OEM or respective National
Airworthiness Authorities.
c. As advised by Senior Manager Quality Assurance.
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d. Change of name or ‘take over’ by another organisation.
e. As advised by the Aircraft Manufacturer.
f. Poor performance reports against existing suppliers or new suppliers.
4. Suppliers removed from the Supplier Directory due to “non active” reason shall be archived in separate folder and any re-activation shall be approved by MSC. Approval from SMQA is not necessary.
D. PROCEDURE
I Inactive Supplier
PE 1. Download from system suppliers who have been
inactive for the established period. Pass data to SM
for vetting and approval.
2. After approval, archive these suppliers.
II. Advise from OEM or Civil Aviation Authorities
PE 3. Upon receipt of notification from OEM or relevant
National Aviation Authorities on a particular supplier or
suppliers, initiate to suspend supplier. File all relevant
notification in supplier file.
III. Notice from Quality Assurance
PE 4. Suspend supplier and file all relevant notification in
supplier file.
IV. Name change after take over
Note: It requires two actions – removal of redundant supplier
and initiation of “new” supplier under new name.
PE 5. Check and attach original approval or notification
advising on the name change or take over and forward
to SMQA.
SMQA 6. SMQA to check and approve or reject.
PE 7. If approved, proceed to Update Supplier Directory.
8. File all relevant documents in supplier file.
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2.5 SUPPLIER/SUB-CONTRACTOR PERFORMANCE
A. PURPOSE
This procedure outlines the steps to monitor the performance of
suppliers on their product support.
B. FIELD OF APPLICATION
The procedure affects the following personnel.
i. Manager Supply Chai n - MSC
ii. Purchasing Executive - PE
iii. Originator - Orig
C. GENERAL
1. This procedure applies to all purchases and components send for
repair to external suppliers including Original Equipment
Manufacturer, its Authorised Distributors/Repair/Sub-contractor
Centre or approved independent Maintenance Repair
Organisation.
2. A Supplier Evaluation Form No: AAT/ES/001 shall be raised to
document the poor performance/discrepancies with supplier and
to initiate a follow-up action until it is closed by Manager Supply
Chain.
3. A Supplier Evaluation Form No: AAT/SC/001 can be raised by any
staff from purchasing/repairs section, Logistics and Stores Inspectors
whenever there is a poor performance by supplier discovered during
the course of processing the order or materials.
4. Suppliers/Sub-contractors who do not meet the company’s
expectations shall be identified and after notification will be
monitored closely for improvement. Suppliers who continuously do
not perform to the required standards shall be suspended or
remove from Approved Supplier Directory.
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5. Supplier/Sub-contractor performance shall be measured based on the following criteria:
a. Delinquent orders/items – Materials ordered and not delivered according to the projected or quoted lead time quotation and TAT (Turn around Time).
b. Price Changes –Any change of price that differs from the confirmed Order Entry prices, which have been obtained from quotation or Price List.
c. Order / Item cancellation-These are orders /items cancelled after an order entry is acknowledge by the supplier due to the following reasons:
1. Unable to supply – stock exhausted
2. Able to supply partial quantity
3. Unacceptable Part Number supplied
4. Long Overdue
5. High minimum Order Quantity (M.O.Q)
6. High minimum Order Value (M.O.V)
7. No longer manufactured
8. Prepayment
d. Discrepancy – Materials orders but found to be in discrepancy for
the following reasons:
1. Alternative/Superseded Part Number received but not advised by supplier
2. Wrong Part Number received 3. Short supplied or over supplied 4. No Quality assurance Documents
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a. FAA Form 8310-3 or JAR Forms b. Certificate of Conformance c. Release Note / Strip Reports d. Source document traceable to origin
5. Damaged due to improper packing
6. Response- time taken for a supplier to respond to our queries, request for quote, or request for any other information required to meet the efficiency of the Department.
7. Turnaround Time (TAT) – This shall be the period when a supplier received the part requiring repair/overhaul till the time it is made serviceable and shipped.
6. Supplier Performance form shall be filed under respective
supplier at Purchasing/Repair section respectively. Where
necessary, these forms shall be referenced for subsequent
supplier’s meetings.
7. A Quarterly and Annual Review shall be conducted by
Manager Supply Chain and 2 other staff.
8. A “spreadsheet summary” listing all supplier performance
forms shall be prepared to monitor and track suppliers.
D. PROCEDURE
ORIG/PE 1. Raise 2 copies of the Supplier Performance form.
Complete the supplier information and the “Issues”.
Pass a copy of form to Manager Supply Chain.
MSC 2. Review the “Issues” and recommend follow-up
action either directly to supplier to lodge the
complaint. Record the action taken in the
“Recommendation/Action” column.
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3. Record the supplier’s response in the “Supplier
Response” section. Pass the form to PE.
PE 4. Review the status and its response from supplier.
For outstanding issues or when response from supplier
is unsatisfactory, file a complaint directly to supplier.
Record supplier’s response on the form. Pass the form
to Manager Supply Chain for approval or further action.
MSC 5. Review the findings. Approved the findings or
recommend follow up action.
6. Whenever the outstanding issues need to be elevated to Aircraft or Engine Manufacturer, file a complaint directly by providing a summary of events.
PE 7. Update supplier into the Supplier Performance
Summary for the Quarterly or annual review.
9. Prior to any supplier visit, review the VP Summary
and to discuss the outstanding issues with supplier
during the meeting. Recording the minutes of
meeting.
10. Where no satisfactory improvement, recommend to
Manager Supply Chain or Senior Manager Quality
Assurance to suspend supplier if it affect quality
issues.
11. A ‘Black List’ of sub-contractors and suppliers that
have contravened any rule, regulation and AAT
requirements will be created and maintained
making it very clear their services are to be negated
in the selection and approval process.
12. This ‘Black List’ record will be created and
maintained by the Supply Chain Department and
such information will be recorded as follows:
a) The name of the defaulting company or person and their address.
b) The reason for the black listing. c) Any information recorded for the black listing. d) The services provided and also the list of materials
provided.
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2.6 PART NUMBER INVENTORY CREATION
A. PURPOSE
This procedure outlines the steps to create a new part number into Inventory
system
B. FIELD OF APPLICATION
The procedure affects the following personnel.
i. Originator ORIG
ii. Purchasing Executive PE
C. GENERAL
1. This procedure applies to all creation of a basic header record for a
new part number which will provide all details necessary for future
actions, enquiries. It will contain:-
a. Part Number : The manufacturer’s given identification
b. Part type : Serialised or Non Serialised
c. Description : Description of the part, beginning with the
short name or keyword (i.e. valve-shutoff)
d. Unit of Measure: How the item is supplied sheet i.e. each,
packet, sheet, etc.
e. MEL : Indicate whether the item is in the Minimum
Equipment List or not, if yes, MEL
CATEGORY will be indicated as well.
f. MEL Category : i. Cat A: 1 Days
ii. Cat B: 3 Days
iii. Cat C: 10 Days
iv. Cat D: 120 Days
v. Cat N: No-Go
vi. Cat P: Penalty
g. QPA : Quantity per aircraft
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h. Min-Max Qty : Min Qty refers to the reorder level which will
trigger the insufficient stock alert. Max Qty is to prevent
overstocking
i. Stock Indicator : Indicator for future replenishment action
and purposes;
i. Normal: Requires continuous
replenishment
ii. Order at request: For items that is not
economically to stock (i.e. parts that
could be manufactured by the workshop
such as stencil)
iii. Parts under certain contractual
agreement.
j. Component Type : Whether the component are subjected to
Overhaul Schedule Inspection Procedure
(OSIP).
k. Aircraft Model : The part is applicable to which type of
Aircraft
l. ATA Chapter : The part falls under which ATA chapter
m. Alternate P/N : Self-explanatory and if applicable
n. Class : Which classification does the item falls into
A: Rotable Components
B: Repairable
C: Consumables/Expendables
D: Sealant/Paint/Oil/Grease
E: Engine Parts
F: Modification
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G: Commercial item
H: Aircraft Tooling
o. Remarks : Any useful additional information
D. PROCEDURE
ORIG 1. Raise Material Requisition according to aircraft or
material demand and pass to Purchasing Executive.
PE 2. On receipt of a not stocked request, all relevant details
will be verified to ensure correct part number and
description using approved sources including IPCs,
CMMs etc
3. Create basic header record
4. Replenish stock according to the set parameters.
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2.7 ALTERNATE PART NUMBER INVENTORY UPDATE
A. PURPOSE
This procedure provides the guidelines for reviewing and confirmation of the
authenticity of an alternate part number advice
B. FIELD OF APPLICATION
i. Purchasing Executive PE
ii. Manager Supply Chain MSC
C. GENERAL
a. Approved alternate parts can be use on aircraft or its components without affecting the airworthiness of the aircraft. Hence all Alternate part numbers must be authenticated and its traceability kept on file before inserting the part number into Inventory Data Base.
b. Alternate part number advice usually arise from such situation:-
i. Purchasing unable to source for requested part number and OEM/ supplier/ supplier recommended an alternate part number due to the part being obsolete, replaced or superseded.
ii. Technical Services advises alternate part number due to existing part number has become obsolete/ replaced/ superseded by a new part number.
iii. Care must be exercise when inserting alternate part numbers with limitation or caution such as are “one-way or to be used in conjunction with/together with” so that user are away when using alternate part. Inventory dept will also ensure all supporting parts are in inventory.
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D. PROCEDURE
PE 1. If all suppliers are unable to supply the requested part no and
suggest or recommend an alternative part number, request
supplier to provide approved documents to authenticate the
alternate part number.
2. Review the supporting documents and decide whether to
accept it as alternate part number.
3. If alternate parts that are not shown in IPC or has OEM
documentation, it is necessary to seek assistance from
Technical Services.
4. Create the new part number per procedure 2.3.4 when it is
accepted.
5. Inventory records must also establish whether it is:-
a. Interchangeable one way forward b. Interchangeable two ways/ fully
6. File all documents.
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2.8 PROCUREMENT OF AIRCRAFT SPARES
A. PURPOSE
This procedure specifies the processes for procurement of aircraft spares and
materials.
B. FIELD OF APPLICATION
This procedure affects the following personnel:
1. Manager, Supply Chain - MSC 2. Purchasing Executive - PE 3. Originator - Orig
C. GENERAL
1. Purchases can come under different priority and different classifications of spares and materials with specific handling requirements.
2. All purchases should follow the guidelines specified under Purchasing Policies ref: 2.1 of this manual.
3. The purchaser obtains quotes from suppliers that consist of information
such as price, lead time and source of traceability or certificate.
i). Low value items should be consolidated where possible. It is not
cost effective to shop around stockist for discount when the saving
does not cover the cost of shipping
ii) Items with a delivery time greater than 30 days must be discussed
with Manager, Supply Chain as lead times might lead to a stock
out and possible AOG situation.
iii) Suppliers price catalogues are available in Purchasing to help
locate the spares. It will be in the form of hard copy or via website.
iv) Sourcing for item includes OEM (Original Equipment
Manufacturer), Distributors or stockiest or ILS (Inventory
Locator System subject to membership).
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v) Purchaser must ensure approval signatures are completed before entering order.
4. Before ordering, the purchaser must consider whether the items can be consolidated with other items from the same supplier. This will minimize Ordering Costs & Shipping Cost.
D. PROCEDURE
NORMAL PURCHASE
Orig 1. Raise Purchase Requisition and pass to Purchasing.
PE 2. Check to confirm item is Nil / Not Stock. Prepare and issue
Request For Quotes (RFQ) depending on classification of
materials.
3. Monitor all replies and prepare a consolidated quotation
summary. Evaluate, select supplier and prepare purchase order.
Pass all document to MSC for approval.
MSC 4. After approval, return documents to Purchasing Executive.
PE 5. Communicate the order to the Supplier using either mail or fax.
6. Pass copies of Purchase Orders to the Accounts Section. File
the master copy in the Master Purchasing File.
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PART 3
POLICY AND PROCEDURES OF LOGISTIC SECTION
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3.1 LOGISTICS POLICIES
3.1.1 INTRODUCTION
Logistics Department is tasked as Custodian and Provider of Support
Services. The Custodianship includes, among other responsibilities, the
physical accountability, handling, processing, and storage of materials.
The Support Services encompasses the material movements
internationally and internally with distribution of materials to Production
Departments, Customers/Airlines.
Logistics Department is committed to 4 objectives of Service, Warehouse,
Cost and Development.
Service : Provide Quality and Efficient service
Warehousing : Maintain an efficient, cost effective, clean
warehouse with supporting mechanical
handling aids.
Costs : Constant review of costs with objective towards
a Lower Unit Cost.
Development : Commitment to continuous training of staff.
These objectives are supported through a commitment to continuous staff
training, safety awareness and its implementation, the search for
automation and harnessing its staff experiences towards higher
productivity.
3.1.2 GOVERNING POLICIES
The Department is affected by various government regulations and
policies as well as Airworthiness Authorities policies. Some of these are
listed:
1. Factory and Machinery Act 1967
2. Occupational Safety and Health Act 1994
3. Fire Services Act 1968
4. Telecommunication
5. Customs Act
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6. Environment Quality Act.
7. Radio Active
8. Firearms
9. Bank Negara
10. Airworthiness Authority
In setting up the warehouse, compliance with Civil Aviation Authority -
Civil Aircraft Airworthiness Information and Procedures 1-8 is mandatory
and to be augmented with requirements set by various manufacturers of
aircraft and aircraft parts.
3.1.3 LOGISTICS
For simplicity, it is necessary to define in broad terms, the sub-divisions
within Logistics Department and its policies:
1. SHIPPING
2. RECEIPT
3. MATERIALS INSPECTION
4. BONDED WAREHOUSING
5. INFLAMMABLE WAREHOUSE
6. DISTRIBUTION
7. COMMERCIAL WAREHOUSE
8. CUSTOMERS OWNED PARTS STORE
9. DESPATCH
10. STOCK CHECKING
11. ARCHIVES
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1. SHIPPING
a. REGULATIONS AND LICENSES
Strict compliance with governmental regulations is
imminent to avoid causing embarrassing compound fines
to the company. Wherever licenses are required, it is the
responsibility of shipping staff to initiate and process for
licenses with relevant government authorities.
b. DAMAGED FREIGHT
All cargos must be inspected for damages. Should any
visible damage occur, an official Cargo Survey Report
must be obtained for processing insurance claim.
c. SHORT SHIPPED FREIGHT
Normally short shipments are transparent to Logistics as
airway bill is being withheld by Cargo Handlers.
Nevertheless, whenever short shipments are known,
shipping staff shall jointly progress in tracing.
d. OVERSEAS REPORT
When shipment discrepancies happens overseas location,
shipping staff shall be responsible to seek copy of relevant
reports for initiating insurance claim.
2. RECEIPT
Receipt Section is the only approved section to receive new and
repaired aeronautical spares and materials into the inventory.
Though receipt of non-aeronautical materials is allowed, care must
be exercised to segregate and not mix with aeronautical spares.
Material credits due to drawn not used by Production Dept’s will
also be handled by Receipt Section.
Receipt shall work jointly with Quality Assurance Inspectors to
ensure compliance with set quality standards. CAAIP
requirements include the proper segregation of non-conforming
items due to insufficient or incorrect documentation. These
discrepant materials must be physically separated to prevent
inadvertent issues.
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To prevent unapproved parts being used, a Quarantine area must
be maintained under security and under the control of Material
Inspection.
3. STORES INSPECTION
The rigid control of aeronautical spares requires the direct quality
control by Stores Inspectors. The enforcement of civil
airworthiness requirements starts at Receipts and will encompass
the warehouse where Approved Materials are stored or materials
being sold/released to external customers. Audit program of
various sections is necessary to enable constant assessment of
compliance to standards. Control of Approved Certificates comes
under this section.
4. BONDED WAREHOUSE
The bonded warehouse shall be maintained at a temperature
range of less than 23 oC with humidity below 75%. All materials
whose serviceability are affected by temperature and humidity
must be bin in this store to maintain its serviceability.
All approved materials shall be processed for storage or issued via
the Bonded Warehouse that has defined boundary from rest of the
warehouse. The layout of the bonded warehouse is a combination
of complying with the objective of high productivity through an
effective storage and issue methodology and optimisation of
space.
AAT has provision for segregation and satisfactory storage
facilities for raw materials and flammable fluids.
The storage area will be kept clean and dust free. All serviceable
aircraft components and materials are stored in bonded stores and
are physically segregated from the unserviceable items.
All storage instructions prescribed by the manufacturer will be
observed.
Where mechanisation and automation is viable, it should be
phased in to improve productivity; safety; accuracy and reliability.
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Separate and special storage facilities are provided to store rubber
items, tyres, long sheets/rods/extrusions, ESD sensitive devices,
inflammable and dangerous goods.
The personal handling inflammable and dangerous goods will be
appropriately trained.
5. DISTRIBUTION
Logistics Department service has been extended to include
delivery of spares to designated production drop-off area and
Service Centers on Hangar floors. Performance has direct impact
on production and processes must be focused on meeting agreed
performance standards. The mechanisation of this service is
critical to improve overall productivity of the Engineering and
Stores.
6. COMMERCIAL WAREHOUSE
The segregation of approved aeronautical parts from non-
approved parts requires a clear separation in material handling to
avoid inadvertently mixing of materials. The non-approved parts
are classified as commercial.
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7. CUSTOMER OWNED PARTS (COP)
This store is dedicated to keep all Customer/s Owned Parts
normally held in support of maintenance check when aircraft is
undergoing checks.
Whenever Modifications, SBs and Ads are received it will be
forwarded by Manager, Planning along with the evaluation and
action plan to the Store Inspector.
The Store Inspector will identify the parts/components affected
and take necessary action to route them back to OEMs for
compliance actions.
The customer components are normally held in stores for only
short periods. During which time if there are any compliance
requirements pertaining to ADs, SBs, SLs etc., the Store Inspector
will liaise with the customer for necessary compliance.
The action taken by the Store Inspector, including nil action will be
communicated back to the Manager, Planning.
8. DESPATCH
Despatch section is the shipping outlet for all materials and
equipment. Since it involves the despatch of all materials, it is
necessary to identify and segregate the various categories of
materials and more emphasis of separation of serviceable from
unserviceable aeronautical parts. Despatch staff has the
capabilities to handle full Dangerous Goods/Restricted Article
certification and packaging.
9. STOCK CHECKING
The scope, size, volume of transactions, the complexity of material
management system and manual processes plus the diversity of
staff quality create gaps for inventory discrepancies. The stock
checking group has the responsibility to investigate these
discrepancies and to reset the inventory after relevant approval.
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Stock checking activities can originate from one of the following
programs:-
a. Perpetual stock-check based on a planned 100% check on
all inventories.
b. Ad hoc stock check based on any special, inventory
projects.
c. Stock Discrepancy based on unfulfilled Material Requests or
unfulfilled requisitions.
d. Stock Transfer between part numbers.
10. ARCHIVES
Archives of logistics documents will follow the company guidelines
of 10 years. Proper filing system must prevail in order to have
effective archives.
However archives of Release Certificates and Traceability
Documents must be preserved for the life time of the aircraft plus
two years.
Storage in digital media should be evaluated to reduce storage
space and efficiency.
11. PRODUCTIVITY AND QUALITY MEASURES
Logistics is not a stagnant or stationary trade. In fact it is an
evolution subject to continuous changes. Management has to be
the driver of their changes towards higher productivity and quality.
In this search, there must be statistical measures built into the
operation as a measuring platform. Constant review of existing
methodology and procedures and the adaptation of new industry
aids and progress are necessary by all levels of supervisory staff.
Improvement results can be measured from the statistical data
base.
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3.2 GOODS RECEIPT PROCEDURE
A. PURPOSE
This procedure provides guidelines to perform Receiving of aircraft spare and
materials into the Bonded Warehouse.
B. FIELD OF APPLICATION
This procedure affects the following personnel:
i. Stores Inspector - SI
ii. Purchasing Executive - PE
iii.Storekeeper - SK
C. GENERAL
1. The GRN Number or the batch number is the means by which the
Authorized Release certificate or Certificate of Release to Service can
be traced for any approved item received into the Bonded Store. All
Authorized Release Certificates and Certificates of Release to Service
or copy of Serviceable Label are filed within the stores inspection
section and are the responsibility of Stores Inspector.
2. The Goods Inwards/Quarantine store is separated from the Bonded
Stores by partitions or clear demarcation lines on the floor.
3. To ensure compliance with Malaysia Civil Aviation Requirement or
Airworthiness Notices all material or parts released by an approved
organization should be accompanied by approved documents.
4. The following Authorised Release Certificates tabulation provides a comprehensive guide for accepting aircraft materials.
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Type of Part/Material Documents expected
New
Parts
Standard Parts,
Raw Materials and
Consumables
When the part/material is
purchased directly from the manufacturer, the Certificate of
Conformity issued by the
manufacturer is expected;
When the part/material is
purchased through a third party
(i.e. distributor, operator, maintenance organisation, etc.)
the following documents are
expected:
- Certificate of Conformity issued by the
manufacturer, and;
- Statement from the
supplier source,
Aircraft Parts EASA Form1or equivalent
release documents:
- As per AMC 145.A.42(a)1
& AMC M.A.501.(a).(5)
- FAA Form 8130-3(with
status “new”);
- TCCA Form One (with
status “new”)
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Used
Parts
Aircraft Parts EASA Form1 or equivalent
release documents:
- As per AMC 145.A.42(a)1
& AMC M.A.501.(a).(5);
- FAA Form 8130-3 for a used part (e.g.
overhauled) issued by an
EASA approved
Organization located in
the USA, having the EASA
dual release in the remark
block;
- TCCA Form One for a used part (e.g.
overhauled) issued by an
EASA approved
organization located in
Canada, having the EASA
dual release in the remark
block;
5. All incoming items must be delivered into Goods Inwards / Quarantine
Store. This area is provided for the storage of these items until such
time as it can be ascertained that they conform to specification,
drawing and other requirements stipulated on the order, are free from
transit damage and have the necessary release documentation. All
documentation must be checked for validity, signature, certification
and accuracy of information. Logistic personnel working this area
must ensure that all parts received into stores are accompanied by at
least one document stated above.
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6. Quarantine Note, (QN) should be raised whenever there is a
discrepancy.
The reasons for Discrepancies are:
i. Inadequate documents ii. Part Number/Serial Number/Qty iii. Order number iv. Damage v. Short Shipment (parcel shortage against AWB) vi. Unapproved Supplier
All QN items are held in Quarantine Store/Racks
7. Should items are received without the required documentation and they
are required for immediate use, they may be processed through stores
providing authority is obtained from Quality Assurance. To obtain such
authority, evidence must be produced that the required documentation
is forthcoming, that the items are from approved sources, and that the
integrity of the supplier can be established.
8. All ESDS components and spares are shipped by OEM or Suppliers
with its approved ESDS packaging. Receiving processes including
inspection MUST be process using approved ESDS inspection
benches, or area fitted with approved ESDS mats with proper
grounding. Wearing of ESDS grounding straps is mandatory.
i) This kit (Vermason J733) is designed to create an ESD Protected Area (EPA) where static sensitive electronic components may be unpacked and handled with minimum risk of being damaged by static electricity.
ii) An operator using the EPA must at all-time wear the wrist
band, adjusted so that it is a snug fit and connected by the coiled cord to the EBP (Earth Bonding Point) plug.
iii) Components and assemblies which are static sensitive must not be touched or exposed outside an EPA. They may only leave it when protected in appropriate packaging.
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iv) No materials capable of causing static damage to unprotected
devices may be taken into the EPA. All sensitive devices must always be unpacked down to their special ESD packaging.
v) To ensure that the EPA does not increase the risk of serious
shock to an operator who accidentally comes in contact with a live conductor , there is a 1 megohm resistor between the connectors on the EBP plug and its earth pin as well as between the ends of each cord. It is important to check that no low resistance path to Earth is within the operator’s reach e.g. through earthed metalwork or low resistance of the floor to Earth.
vi) The earthing plug is designed for ESD earthing only and should not be used for earthing electrical appliances or for any other application.
9. For Class I parts and major assemblies like Landing Gears and APU,
inspection shall be performed by a Quality Assurance Engineer or
License Aircraft Engineer (LAE) and Part Acceptance Tag issued by
them.
10. In the absence of the Store Inspector the LAE may raise the Part
Acceptance Tag upon clearance from the SQAM.
D. Procedure
SK 1. When unloading/receiving all deliveries, endeavor to sort
shipment in the staging area according to:
i. its priority of clearance ii. type of materials - aircraft, commercial, SPOG iii. Material Class – component and consumable
2. Hold all airway bills & documents in pending file and according
to date of receipt for FIFO clearance.
3. When ready to process a shipment, retrieve the airway bill and
documents and locate the parcel/s. Move the parcel/s from
staging area to receiving bay.
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4. Open the parcel/s and check if goods received i.e. part
number, serial number, description, order number, quantity
and certification in accordance with receiving documents.
5. Ensure all particulars matched with order.
6. Raise Goods Received Note (GRN) and approve GRN. Print 2
copies of GRN and raise Part Acceptance Tags.
7. Move the material to Inspection Bay and pass GRN and Part
Acceptance Tags to Stores Inspector.
SI 8. Perform Quality Control inspection checks on materials and
documents. Annotate shelf life and Life limits data on Part
Acceptance Tags. Similar shelf life limits data should be
posted on relevant documents. Sign Part Acceptance Tags.
and pass materials and documents to Storekeeper and move
spares to “Prebinning”.
9. Perform ESDS spares and components at ESDS station and ensure all spares are properly packed and sealed before
releasing for binning.
10. Extract the ARC from rest of receiving documents. Ensure
enter the order number on certification for filing and retrieving
purpose.
11. Update shelf life limits into tracking system.
Discrepancy Procedure
SI 12. Should discrepancy arise, identify the reason for discrepancy
and raise Quarantine Note (QN). Pass a copy of QN to
Purchasing.
13. Place copy of QN with materials and move item/s to
Quarantine Store/Racks.
PE 14. Liaise with supplier to clear the discrepancy. When resolution is
known, remark on QN and return to Stores Inspector.
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SI 15. Retrieve the material from Quarantine Store and process as
per resolution on QN. Pass the materials to Storekeeper.
16. Stores Inspector must periodically check status of quarantined goods that remains outstanding.
Unserviceable Components Returned from Repairer
SK 17. In the event of a Rotable/Repairable item received from a Repairer as Beyond Economical Repair or “as is” condition, notify Purchasing Executive.
PE 18. Decide on disposal decision and advise Storekeeper.
SK 19. Action as instructed and close the order.
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3.3 MATERIAL REQUISITION AND ISSUING OF SPARES
A. PURPOSE
This procedure details the methods used for the demand, control and issue of
all material used for aircraft maintenance.
B. FIELD OF APPLICATION
1. Storekeeper - SK
2. Inventory & Material Planning Officer - MP
3. Originator - Orig
C. GENERAL
1. All materials issued must be transacted with Materials Requisition Form no.: AAT/ES/009.
2. Manual Material Requisition is accepted when materials are meant for pre-planning or pre-load. Logistic staff must annotate date of receipt on manual Material Requisition.
3. Planning section will issue Aircraft Check Package plan detailing the planned removal dates of all components scheduled for replacement/servicing e.g. OSIP spares. This package will be finalized after Check Package Review meeting with Maintenance, Quality Assurance, and Technical Services. Identification of spares to be provided by AAT shall be tabulated for early procurement.
4. Hangar operation shall submit material requisitions for spares and materials.
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5. On receipt of material requisition Logistic will establish whether materials are available, nil stock or not stocked.
6. Originator is responsible to obtain approval for all Material Requisition as authorized by company and Logistic staff shall verify such approval.
D. PROCEDURE
MATERIALS REQUEST
Orig 1. Raise Material Requisitions and pass to Storekeeper.
SK 2. Issue requested materials and update issue on Material
Requisition.
3. Advise Originator for Nil and Not Stock items after verifying
that there are no alternative part number.
4. Pass all Nil or Not stock requests to Purchasing Executive.
PE 5. Assess all Nil and Not stock request for Purchase decision.
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3.4 QUARANTINE STORES
A. PURPOSE
This procedure outlines the processes in handling materials/spares under
Quarantine due to discrepancy in materials and/or documentations.
B. FIELD OF APPLICATION
1. Stores Inspector - SI
2. Purchasing Executive - PE
3. Storekeeper - SK
C. GENERAL
1. The Quarantine Store/section/cabinet is segregated and under the
responsibility of Stores Inspector.
2. All discrepant items at point of receiving shall be kept in Quarantine
stores to avoid inadvertent issue.
3. Discrepant or rejected items may be due to following reasons:
a. Absent of Authorised Release Certificate.
b. Physical damage or poor condition.
c. Lack of relevant documents to validate the parts source, history,
d. Suspect Unapproved Parts.
e. Unmatched with item ordered in Purchase/Repair Order.
4. Parts rejected by Maintenance upon issue from stock with technical
discrepancy eg correct part number but unable to fit.
5. A Quarantine Note Form No.: AAT/ES/002 for each item shall be
raised to control the handling of quarantine items till its resolution.
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D. PROCEDURE
SI 1 When item is rejected at receiving, raise a Quarantine Note and
attached copy of report with all receiving documents.
2. Place all discrepant items with documents inside Quarantine store
except bulk items which shall be located at assigned bay.
3. Pass a copy of Quarantine Note to Purchase Executive to resolve with
supplier.
PE 4. Liase with supplier to resolve discrepancy. Update response from
supplier and its resolution on Quarantine Note and return copy to Stores
Inspector.
SI 5. Review resolution decision and if acceptable, retrieve item and pass to
Storekeeper to proceed with receiving of item into inventory.
6. For discrepant item originated from maintenance, inform originator of its
resolution.
SK 7. Perform Receiving process to close order.
SI 8. Issue a monthly status of all Quarantine items and send to purchasing as
reminder with copy to Quality Assurance.
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3.5 UNSERVICEABLE COMPONENTS PROCESSING
A. PURPOSE
This procedure outlines the processes in handling unserviceable (U/S)
components.
B. FIELD OF APPLICATION
1. Storekeeper - SK
C. GENERAL
1. All unserviceable items removed from aircraft must be adequately
protected and apertures blanked.
2. Surplus fluid should be drained, except in cases where fluid should be
left for inhibiting purposes, in which case the blanks should seal the
fluid from leaking.
3. The Engineer who removes unserviceable components must
complete the U/S label, attach it to the item and place component on
the dedicated U/S rack at respective locations. All unserviceable
labels must be properly filled up in order to facilitate items to be
process.
4. Before accepting unserviceable components from users, it is the
responsibility of the receiving logistic personnel to check that the U/S
label is correctly annotated, stamped or signed and securely attached to
the unit. The U/S label should have the following information:
Description
a) Part Number
b) Serial Number
c) Aircraft Registration (if applicable)
d) Engine S/N. (if applicable)
e) Position (if applicable)
f) Next higher assembly (if applicable)
g) Reasons for removal (Detail of defect must be given)
h) Signature of approved personnel
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5. The logistic personnel will check the components for physical damage
and will ensure that parts are correctly blanked and the correct container
is used for packing.
6. Originator to enter component data/information in Delivery Order and a
copy for acknowledgement during collection by Logistics staff.
7. Logistics staff will ensure the documentation on this item is correct
and complete. The original copy of the U/S label must be attached to
and remain with the item.
8. A copy of the U/S label will be passed to respective Section for action
or disposal decision.
D. PROCEDURE
SK 1.Collect all unserviceable components from dedicated racks in
respective maintenance production areas per collection schedule or
as-requested.
2. Place all unserviceable components inside Quarantine / Holding
area except bulk items which shall be located at assigned bay.
3. Ensure no physical damage to the component, parts are correctly
blanked and the correct container is used for packing.
4. Checked for validity of part and serial numbers against the label and
raise unserviceable items record.
5. Place the component on the unserviceable holding bench or rack
pending action
.
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3.6 PACKAGING & SHIPPING OF DANGEROUS GOODS REGULATIONS
MATERIALS
A. PURPOSE
This procedure outlines the processes in handling of Dangerous Goods
Regulations (DGR) materials for exports.
B. FIELD OF APPLICATION
1. Manager Supply Chain - MSC
2. Purchasing Executive - PE
3. Storekeeper - SK
C. GENERAL
1. IATA DGR manuals is the approved manuals for reference and
compliance when handling DG items for air freight regardless of
passenger or freighter or combi aircraft. Strict compliance to its
carriage requirements is mandatory.
2. Only DGR Approval Holder is qualified to process these materials. It is
acceptable to appoint approved Handling Agent qualified to handle
DGR items in the event that internal approval staff is not available.
3. It is the responsibility of DGR Approval Holder to monitor and renew
the approval prior to its expiry. Since renewal is subject to attending
refresher course, it is pertinent to align with planned renewal course
schedule.
4. All shipment should be supported by a completed set of “Shippers
Declaration Form for Dangerous Goods”, a copy of Material Safety
Data Sheet (MSDS) of the item. Therefore it is important to request for
a copy of MSDS when purchasing DGR item, retrieve a set of this
MSDS on receipt of item and file for future reference.
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Note that the MSDS also provides handling instruction and storage
requirements for the item.
5. Though it is approved to sub-contract DGR packaging and shipping to
approve Handling Agent, it is strongly recommended to send logistic
staff to attend DGR courses. Awareness of DGR items and its
requirements is the beginning of a safe shipment handling.
D. PROCEDURE
PE 1. When procuring DGR item, specify on the order for supplier to supply
a
set of MSDS . It is recommended to request an early set of MSDS
via email to build a library of MSDS documents.
SK 2. On receipt of item, extract a set of MSDS form and maintain for
reference in the event of a requirement to ship similar item.
3. All DGR items must be correctly identified by referring to MSDS and
IATA DGR manual. The manual will provide the relevant data such as
accepted quantity for carriage, quantity per package where applicable;
the packaging materials, size of boxes, the warning labels to use,
packing instructions, whether acceptable for carriage on passenger,
freighter or combi aircraft.
4. If there is no approved personnel to handle DGR, refer to approved
Handling Agent to complete the shipping process.
5. All shipment must be correctly and properly packed and labeled with
correctly filled Shippers Declaration Form.
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3.7 DISPOSAL OF SCRAPPED MATERIALS
A. PURPOSE
This procedure provides guidelines for the identification, handling,
disposal and mutilation of scrapped materials to prevent misuse or
misplacement.
B. FIELD OF APPLICATION
1. This procedure affects the following personnel:
i. Manager Supply Chain - MSC
ii. Storekeeper - SK
C. GENERAL
1. Scrap materials are identified as follows:
a. Operating Life Limited Parts whose operating limits have expired or balance life deem as not economical to continue its usage.
b. Storage/Shelf Life limits as set forth by OEM.
c. Components sentenced as scrap by repairer, workshop or engineer.
d. Miscellaneous metal /alloy loose parts insufficient for
future use.
e. Materials for disposal are those materials which are scrapped, beyond economical repair or obsolete and are no longer of any use to the Company or Customers.
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b) Parts with non-repairable or not conforming to approved design
specification or LLP without traceable history (missing or incomplete records) or exceeded its life limits or resulting from an incident shall be scrapped.
c) The Storekeeper shall record the receipt of all unsalvageable components in a register which shall contain the name of the part/item, part number, aircraft type and name of the support/certifying staff who rejected the part.
d) All the rejected parts shall be kept in separate restricted area under the direct custody and control of the Storekeeper in compliance with Company’s procedure and environmental considerations.
e) Logistics shall initiate the sale whenever volume is justified. Sale and disposal of scrap materials will only be permitted to those dealers or buyers meeting Company’s disposal requirements.
f) It is mandatory to mutilate all scrapped parts especially LLPs to prevent unauthorized retrieval/reuse. Scrapped LLPs shall not be passed on to any person/organization as complete unit to prevent its return to service through unapproved procedures.
g) Mutilation, where applicable, shall be carried out to the extent that parts become unusable for its original intended purpose or cannot be reworked/refurbished. Photograph of parts in its scrapped condition as well as post mutilation shall be taken as proof of completion of mutilation.
h) Mutilation shall be carried out using one or more of the following methods, but shall not be limited to grinding, burring, melting, permanent distortion, cutting holes in critical location or into smaller pieces with cutting torch or saw.
i) Parts which pose a safety hazard such as explosive squibs, flares, pressurized containers, chemical oxygen generators and radio-active materials must be disposed according to the applicable published regulations.
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j) All data plates from the unsalvageable parts and consumables shall be removed. Serial no. and Part no. if any etched on them shall be disfigured.
k) Buyers or Dealers of LIFE LIMITED PARTS has to be evaluated for competency to mutilate life limited parts. Evaluation has to be carried out by Logistic staff together with a Quality Assurance Inspector before the buyer or dealer is recommended.
l) A Scrapped Materials Disposal Record form shall be used to register all materials send for disposal and copy sent to Inventory dept. to reconfirm its status.
m) Scrap materials are subjected to customs duties since it was imported under duty exemption. Buyer must be notified to pay such duties
D. PROCEDURE
SK 1. Upon receipt of scrap materials, check to ensure all items
have completed unserviceable labels/tags. Segregate
according to the various categories and store materials in
the scrap stores while waiting disposal. Also segregate
parts that must be mutilated for special processing. Scrap
labels for life limited parts to be retained for records and a
record by part no., serial no. and quantity shall be
maintained for these parts.
2. List scrapped materials in form and disposal is guided by
this list.
3. When sufficient volume is accumulated, request Manager
Supply Chain to call for quotations from 3 suppliers and to
emphasize the parts that must be mutilated.
MSC 4. After supplier selection, advise the successful supplier and
request Storekeeper to seek approval from Customs.
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Issue: Initial Revision No: 0 Date: 1 AUG 2015 Part: 3 Chapter: 7 Page: 4
SK 5. If sale is by weight, the available materials shall be
weighed in the presence of Logistics staff plus another
staff from either Purchasing or Maintenance. This exercise
is normally done at time of collection by the buyer. At time
it is necessary to weigh at a private weighing station if the
content is to be weighed together with the vehicle from the
buyer or dealer. In this case, Logistics staff alone shall
accompany and obtain a copy of the weight records
provided by the weighing station.
6. Raise Stores Delivery Note to initiate the sale. Arrange for
the buyer to make payment and retain a copy of the
receipt.
7. Prepare and submit proper documentations for Custom declaration and assessment of the duties. Ensure the
buyer or dealer make payment on all custom duties before
the materials are allowed for collection. Retain a copy of
the custom duties paid receipt for file.
8. Pass copy of Scrap Material Disposal form to Purchasing.
9. File all applicable documents.
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Issue: Initial Revision No: 0 Date: 1 AUG 2015 Part: 3 Chapter: 8 Page: 1
3.8 STOCK CHECKING
A. PURPOSE
This procedure provides guideline on stock checking activity of spares
and materials to meet company’s requirement.
B. FIELD OF APPLICATIONS
1. The procedure affects the following personnel:
i. Manager Supply Chain - MSC
ii. Finance Manager - FM
iii. Purchasing & Material Planning Executive - PE
iv. Storekeeper - SK
v. Stock Check Team - SC
C. GENERAL
1. The overall control and performance of physical stock check is
the responsibility of Manager Supply Chain.
2. All spares and materials recorded in inventory are subject to
stock check to:-
a. Ensure accuracy of stock holding.
b. Prevent occurrence of `Nil Stock' due inaccurate system
quantity.
c. Reflect company's financial stock holdings.
3. Stock Check shall be conducted in accordance with the
program approved by Manager Supply Chain including
meeting requirements of Finance and Internal/External Audit.
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4. There are four types of stock check:-
a. INVENTORY DISCREPANCY ADVICE
When there is variance in stock during issuing of spares. This
stock check is to confirm availability or non-availability of
spares whilst the system indicates quantity in stock.
b. AD – HOC CHECK
Special projects undertaken at the request of other section.
The originator of this request can come from any section but
the request must be approved by Manager Supply Chain.
c. CYCLE STOCK CHECK (100%)
The Manager Supply Chain prepares this program to ensure
all spares are checked within the Financial Year.
d. ANNUAL STOCK CHECK
This is a sample check initiated by Finance Department
normally done with internal auditor prior to closing of annual
account. This sample stock check shall be held before the end
of each financial year.
5. Stock activities shall include:
i. Shelf Life recording. ii. Recording of serial numbers where available. iii. Affix Part Number labels to respective Bin. iv. Identify additional part number not listed in stock
check sheet. v. Combine multi bin locations to single location.
6. Stock Check forms shall be created to enable stock checking
process.
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7. Stock discrepancies or variances shall be written-off if physical
balance is less than inventory record, this is an indication of
“minus” (-) variance. If physical balance is more than inventory
record a “plus” (+) variance will be reflected. Such discrepancies
shall be recorded on the Stock Check Write Off/On Application
Form for approval by respective Committee.
8. A Committee comprising Finance, Supply Chain and an Independent member shall review and approve all application. Manager Supply Chain shall be the permanent secretary. Committee shall meet bi-annually to clear system records. Additional meetings can be called by Manager Supply Chain when there are substantial volumes of write-off/on applications.
9. Besides the standard stock check activity, focus must be directed to investigate the cause/s of discrepancies and implement remedial processes.
D PROCEDURE
Procedure will focus on the Cycle Stock Check and Annual Stock
Check programs.
I CYCLE STOCK CHECK -100%
MSC 1. Set up a cyclic stock check program. The objective of this
program is to check the total inventory within the Financial
Year.
PE 2. Prepare Stock Check Form and sort by Location. Within
location, sort by Part Number sequence. Alternative part
numbers and locations will also be printed.
3. Print Stock Check form for “warehouse” check including those with Bin quantity “0” to remind stock check staff to verify
whether actual bin has zero stock.
4. Check and control all forms before issue to Storekeeper /
Stock Check Team.
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5. Issue the required number of forms for stock check and to
issue additional forms upon return of previous batch.
SC 6. Conduct physical check to confirm:
i. Stock quantity is correct. ii. Physical Part No. and Serial No. are correct. iii. Record Shelf Life where applicable. (Highlight those units
with expired shelf life to Stores Inspector immediately.)
7. If there are variances, recheck and remarks on stock check form.
8. If additional part no. is located on the shelf, record details on a separate form.
9. Where multi locations exist, transfer/re-bin into one location and remarks on the form for system update.
10. Affix a red stock check sticker to each box to indicate 100% stock check done.
11. Sign and return completed form to Purchasing Executive.
12. Hold completed stock check form until balance form for the Same part no. are returned. When completed, segregate those
Without discrepancies from forms with discrepancies.
With Discrepancies
13. Investigate the discrepancies. If discrepancies cannot be resolved, update the located quantity. Close the stock check form. Photostat copy of form and pass the form to prepare “write-on/off” summary.
14. Ensure all stock check form is signed off by respective staff
and final approval from Manager Supply Chain.
15. Prepare Discrepant Part no. report for further investigation and a summary for Manager Supply Chain.
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Issue: Initial Revision No: 0 Date: 1 AUG 2015 Part: 3 Chapter: 8 Page: 5
II ANNUAL STOCK CHECK
1. The function of the stock check team during annual stock
check is to coordinate the process of checking by Finance
personnel only. Should there be any variance upon stock
check, a report on the findings has to be submitted to Manager
Supply Chain who will than liaise with the Finance Department
on further action.
FM On a specified date, Finance and External Audit personnel will
conduct sample stock checks assisted by Logistics staff.
2. Upon completion of stock check, Finance staff will verify against their check-list. Stock check sheets with variances will
be forwarded to Manager Supply Chain for verification.
SK 3. Conduct a second check and record all findings on the stock
check sheet and forwarded to Finance Department for further
action.
III. WRITE OFF / ON APPLICATION
PE 1. When there are sufficient number of application, advice
Manager Supply Chain to call for Committee meeting.
2. Assign control reference number to each application and to
Separate applications according to its value per line item.
MSC 3. Call for meeting.
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3.9 MATERIAL CREDIT OF SPARES ISSUED BUT NOT USED
A. PURPOSE
This procedure details the method for crediting of spares & materials issued but
not used.
B. FIELD OF APPLICATION
1. Storekeeper - SK
2. Stores Inspector - SI
3. Originator - Orig
C. GENERAL
1. All materials to be credited must be transacted using Form AAT/ES/010.
2. All materials to be credited must be supported with following documents:
1. Copy of Certificate of Conformance 2. Copy of Material Requisition 3. Item Tag Form AAT/ES/010
3. All items must be properly packed by originator.
4. All materials returns must be returned to stores promptly to ensure correct material costing to customer and avoid overstock due to replenishment.
5. Originator is responsible to obtain approval for all Material Requisition as authorized by company and Logistic staff shall verify such approval.
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D. PROCEDURE
Orig 1. Raise and complete Material Credit Note Form:
AAT/ES/010 and pass to Storekeeper together with items and
its supporting
documents,
SK 2. Verify all material credits are properly packed and with relevant
Documents.
3. Advise Orginator of materials shortages or any discrepancy.
4. Pass items and documents to Store Inspector.
SI 5. Perform quality inspection check and issue a
Credit Control No., pass item and document to Storekeeper.
SK 6. Bin item and file the documents.
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3.10. ACCEPTANCE/INSPECTION OF CUSTOMER’S OWN PROPERTIES (COP)
A. PURPOSE
This procedure outline the procedure for handling customers own properties
(parts & materials).
B. FIELD OF APPLICATION
The procedure affects the following personnel.
i. Storekeeper SK
ii. Stores Inspector SI
C. GENERAL
1. Before and after arrival of customer’s aircraft to AAT for maintenance
purpose, customer may purchase/supply aircraft component and
material and ship to AAT direct from their base, supplied or as flight
spare.
2. Customer’s own properties (COP) are required to pass Store Inspection
for Acceptance and Inspection process. The verification shall be with
respect to the customer list and the appropriate acceptance documents
that are provide by the customer. For cannibalized of robbed parts,
customer will provide the relevant tag.
3. On site acceptance and inspection maybe carried out for major
components.
D. PROCEDURE
SI 1. If any discrepancy is found, item shall be quarantined with
Quarantine Part Tag. The quarantine items can only be closed upon
receiving instruction from Head of Quality Assurance and/or customer.
SI 2. On satisfactory acceptance/inspection, Store Inspector shall raise a
Part Acceptance Tag. Assign a Batch No. which can be obtained from
register book. Structure of Batch Number is as follow:
e.g: AAT/XXXX-X/2015 (year)
SI 3. No pre-printed information especially Batch No. on the Part
Acceptance Tag be cancelled or erased or replaced with other
wordings.
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SI 4.Good received note will be generated. “VISUAL INSPECTION ONLY”
shall be stamped on Shipping Invoice/Packing List and Part Acceptance
Tag raised by Store Inspector.
SK 5.Issue the items to customer aircraft complete with the aircraft release
certificate (ARC) and part acceptance tag (PAT).
SI 6.File all the documents in Batch Number sequence number for
traceability. All the appropriate documents shall be filed and kept for at
least 3 years from the date of inspection.
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Issue: Initial Revision No: 0 Date: 1 AUG 2015 Part: 3 Chapter: 11 Page: 1
3.11 TOOLS AND EQUIPMENTS LOAN
A. PURPOSE
The procedure outlines the processes in handling emergency loans of tools
and equipment.
B. FIELD OF APPLICATION
i. Store Inspector (SI)
ii. Purchasing Executive (PE)
iii. Tool Crib Executive (TCE)
iv. Storekeeper (SK)
v. Finance (Fin)
vi. Operation Department (OPS)
C. GENERAL
1. Tools and equipment are normally issued as loans with original parts being
returned to owner after use.
2. For loans, it is industry practice to issue a loan order to authorize, control and
billing.
3. Loan requirements shall be approved by manager or Tool Crib Executive.
During silent hours, Duty Shift Executive/Officer can create, sign and approve
the Loan Order provided his immediate superior is informed and approval is
granted.
4. Prior to initiating any loans, Tool Crib Executive/maintenance staff must
confirm said Tool is Nil/Not stock.
5. Provide loan order number to other operators (loaner).
6. Loans will be tracked in the daily operation to minimize loan charges.
7. When a loan materialized, staff must commence to obtain the latest Unit Price
to prepare for the calculation of loan charges. Keep a copy of the pricing in
the event there is a need to dispute with Lessor.
D. PROCEDURE
PE/SK 1. Upon receipt of loan Request from Operation Dept/Maintenance,
seek approval from Manager and source for emergency loan of
tools from applicable airlines.
2. Monitor replies and update originator on its progress.
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3. Upon confirmation of availability and if the operator requires an
order for the loan, provide an order number.
4. Handover all documents on this loan to Purchasing Executive
(if done on shift) for recording and to monitor its completion and
return.
SI 5. Upon arrival of loaned tools, perform acceptance check per
Supply Chain Manual and stamp “loaned from” on the Parts
Acceptance Tag.
6. Record the loan transaction in register book and file all loan
documents received.
7. Issue the loan tools to Tool Crib or to Maintenance.
TCE 8. Upon completion of usage, prepare the tools for return to
originator. Check condition of loan tools and highlight any
discrepancy.
SK 9. Print Shipping Note, pack and dispatch item to the operator/owner.
Advise Purchasing Executive on AWB, Shipping Invoice and Flight
details where applicable.
PE 10. Advise operator on the return shipping details. Close the loan
register upon confirmation received from other operators
(loaner).
FIN 11. Forward invoices received from operator to Purchasing
Executive for vetting and approval.
PE 12. Verify and confirm loan charges upon receipt of Payment
Invoice and forward to Manager Supply Chain for approval.
13. Upon approval by Manager Supply Chain, return Invoice to
Finance for payment.
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PART 4
STORES INSPECTION
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4.1 AUTHORISED RELEASE CERTIFICATES – FILING
A. Purpose
This procedure outlines the processes for filing, archiving and retrieving of
Authorised Release Certificates.
B. Field of Application
1. Stores Inspector - SI
2. Storekeeper - SK
C. General
1. The following documents may be considered as certification of conformity covering the purchase of approved aeronautical supplies. This is a requirement as per DCAM AN1, AN 13, AN 14 & AN 29. Documents are as follows:
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Type of Part/Material Documents expected
New
Parts
Standard Parts
Raw Materials and
Consumables
When the part/materials
purchased directly from the manufacturer, the Certificate of
Conformity issued by the
manufacturer is expected;
When the part/material is
purchased through a third party
(i.e. distributor, operator, maintenance organisation, etc.)
the following documents are
expected:
- Certificate of Conformity issued by the
manufacturer, and;
- Statement from the
supplier source,
Aircraft Parts EASA Form1 or equivalent
release documents:
- As per AMC145.A.42(a)1 &
AMCM.A.501.(a).(5)
- FAA Form 8130-3 (with
status “new”);
- TCCA Form One (with
status “new”)
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Used
Parts
Aircraft Parts EASA Form1 or equivalent
release documents:
- As per AMC145.A.42(a)1&
AMCM.A.501.(a).(5);
- FAA Form 8130-3 for a
used part (e.g.
overhauled) issued by an
EASA approved Organization located in
the USA, having the
EASA dual release in the
remark block;
- TCCA Form One for a
used part (e.g.
overhauled) issued by an
EASA approved organisation located in
Canada, having the EASA
dual release in the remark
block;
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2. PMA SPARES
i. The parts designed under the PMA system under the
regulatory
Oversight of FAA are acceptable as per the DCA-M AN 73
subject to the following requirements.
ii. The PMA parts are acceptable only while meeting one of the
following requirements;
1. When new parts are received from a manufacturing
source located in the USA and appropriately approved
by the FAA, the authorized release document will be
FAA Form 8130-3, Airworthiness Approval Tag, export
airworthiness approval. Note: An FAA Form 8130-3,
which has been issued and used internally within the
USA for purposes other than for export is not
acceptable for use as an export airworthiness approval.
2. Aircraft components manufactured in accordance with
the Parts Manufacturer Approval of FAR Part 21.303
are only acceptable when intended for fitment to an
aircraft, engine or propeller where the FAA is the
Primary National Aviation Authority responsible for type
design.
3. The distributing agent for the PMA holder must have in
its possession, a copy of the FAA-PMA Letter indicating
the initial production approval and the relevant
Supplement(s) indicating approval of the design and
production of the particular part or component.
4. The customer should request from the distributor the
associated authorized release document and other
relevant document(s) including that stated in paragraph
2.1.3 above to establish the components acceptability
prior to installation.
5. In all cases, it shall be the customer responsibility to
obtain the appropriate release documentation and
establish acceptability of the component.
iii. The PMA parts accepted as above and inducted into AAT
could be used on operator’s aircraft only with their
concurrence.
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3. TREATMENT OF A SUSPECTED UNAPPROVED PART (BOGUS
PART)
i. The receipt of any items suspected to be unapproved or bogus during receipt inspection and acceptance stage will be quarantined and stores inspector will inform the SMQA. Manager Supply Chain will correspond with the supplier for his reply before initiating further action.
ii. All confirmed receipt of suspected unapproved parts will be intimated to the DCA-M by following the procedure as mentioned in AN-48.
iii. This incident will be evaluated by the Quality Assurance department and if required the supplier will be black listed.
4. ACCEPTANCE/INSPECTION OF AIRCRAFT COMPONENT AND
MATERIAL
a. Stores Inspector will commence retrieving ARC at point of Receipt
approval for Purchase orders and Repair orders. Filing of these
ARC shall be the responsibility of Inspection Dept.
b. The stores inspector will carry out the incoming inspection of all
aircraft supplies. He will ensure that the consignments are
accompanied with the air way bill, invoice copy and packing list.
c. The stores inspector will verify the consignments with respect to
the requirements of the purchase order like quantity, part number,
receipt condition, shelf life, modification standards, AD compliance
etc.,
d. The stores inspector will also verify the receipt of incoming release
documents. Refer to Supply Chain Departmental Manual for
details.
e. On satisfactory completion of incoming inspection the aircraft
supplies will be accepted by the stores inspector by issuing
acceptance tags a sample is provided in MOE Part 5.
f. The necessary information on storage limitation/life limits/shelf life
will be marked at the appropriate place on the acceptance tag or
on the reverse of the acceptance tag for further periodical
inspection or shelf life management as the case is.
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5. In respect of customer supplied supplies the verification will be with
respect to the customer list and the appropriate acceptance
documents will be provided by the customer.
6. The acceptance documents issued by the customer must meet with
the AAT acceptance standards and any variation needs to be brought
to the notice of the DCA-M for seeking specific concurrence.
7. The supplies which fail to meet the purchase order and release
documents requirements during incoming inspection will be
quarantined.
8. The receipt inspection and acceptance records will be maintained by
stores inspector for a minimum period of 10 years from the date of
acceptance.
D. Procedure
SK 1. When spares are accepted after performing the Receiving
Checks, print the Good Receiving Note and Part Acceptance
Tags. Attached copy GRN, Part Acceptance Tags, original
ARC and other relevant documents with spares for Stores
Inspector approval.
SI 2. Perform material inspection checks and if approved, sign the Part Acceptance Tags and release the spares for pre-binning. Retrieve the original ARC for filing, ensuring the order reference is annotated on the ARC.
SI 3. File ARC in either purchase order or repair order sequence.
SI 4. The approved Release Certificates shall be stored in secure area and properly identified.
SI 5. Conduct periodic sampling checks to ensure all ARC are file.
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 4 Chapter: 2 Page: 1
4.2 SHELF-LIFE CONTROL
A. Purpose
This procedure outlines the steps in controlling materials affected by shelf life
limits.
B. Field of Application
1. Stores Inspector - SI 2. Purchasing Executive - PE
3. Storekeeper - SK
C. General
1. It is the responsibility of the user/custodian of the materials to ensure that
no life expired item is used, held or stored.
2. If an item is subject to shelf-life control, the information i.e. Shelf Life
Expiry Date will be indicated on the Part Acceptance Tags. All the relevant
information from the `S' Tag should be transferred to the `Stores - Shelf
Life Control Register' (Form No.: AAT/ES/008) immediately after the
receipt of the item.
3. Respective external/user stores should also maintain a `Stores - Shelf Life
Control Register' for internal control. The register should be checked
during the first week of every month for items expiring in one month. Each
yearly sheet of the Stores-Shelf Life Control Register has to be serially
numbered and filed for a period of 2 years.
4. A basic software to control will be used to register, control, call-out, and
updates. A hard copy print of master inventory will be done monthly in
event the system data failure occurs. This list will be monitored by the
Stores Inspector and will be flushed out for those spares which are
expired.
5. The shelf life details of all shelf life limited items are recorded before
crediting them to the bonded stores.
6. On a periodical basis the Stores Inspector will monitor the shelf life and
take necessary action for removal from the bonded stores.
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7. All shelf life expired items will be properly identified and segregated by the
Store Inspector. The Store Inspector will inform the Manager, Supply
Chain for taking necessary scrapping and replenishment action.
8. Periodical shelf life report will be generated to know the status and take
replenishment/procurement actions.
D. Procedures
SK 1. When receiving shelf life controlled materials, extract the limits
from the supplier documents and update the shelf life expiry
data into Good Receiving Note.
SI 2. When approving all shelf life controlled materials, ensure same
data has been updated into the system. Otherwise perform the
task and to remind staff. Enter same life limit on Part
Acceptance Tags.
SK 3. During pre-binning of shelf life controlled materials, remark
the same life limits on the Bin Label attached to the material
before binning.
SI 4. Every first week of each month, print out a summary of
Materials with Shelf Life Expiry Due for the month. Review the
summary and hand over summary to Storekeeper
to withdraw the stock.
SK 5. Withdraw the affected stock for disposal and update
remarks in the summary with the actual quantities disposed.
Pass the summary to Stores Inspector.
SI 6. Vet the completed summary to ensure all items have been
action or highlight discrepancy. Annotate on summary as
completed and pass copy to Purchasing & Material Planning
Executive to adjust stock.
PE 7. Adjust the stock balance and initiate replenishment where
applicable.
8. Where affected stocks are located at external warehouse,
notify the affected section to take similar disposal action.
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4.3 SELF-AUDIT
A. PURPOSE
1. To enhance the quality of work in the department.
2. To identify discrepancies and shortfalls in the departmental procedures and
operational areas.
B. SCOPE
1) This procedure provides guidelines for conducting Self-Audit within the
department.
2) Self-Audit to be carried out on a yearly basis or whenever required by the
department head/Accountable Manager.
C. RESPONSIBILTY
1) Manager, Supply Chain (MSC)
2) Stores Inspector (SI)
3) Auditor (AD)
D. METHODS
MSC 1. The head of department will appoint an auditor from within the
Department or from another Department to carry out a Self-
Audit.
2. This Self-Audit will be carried out using master checklist form
no AAT/QA/016.
AD 3. Tick against each item on the checklist.
AD 4. Raise CAR for each unsatisfactory finding.
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AD 5. For all the findings determine the category.
SI 6. Review and analyse the findings and recommend the
corrective and preventive action including the compliance date.
SI 7. All findings should be closed within the compliance date.
SI 8. Pass the completed checklist and closed CAR for final vetting
to MSC.
SI 9. The self-audit report and CAR shall be retained for a minimum
period of two year.
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PART 5
APPENDICES
SUPPLY CHAIN MANUAL
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5.1 SUPPLIER EVALUATION FORM
A. FORM
SUPPLY CHAIN MANUAL
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B. INSTRUCTION FOR COMPLETING THE SUPPLIER EVALUATION FORM
1 Block #1 Insert Date 2 Block #2 Insert Month/Period 3 Block #3 Insert Name of Supplier 4 Block #4 Tick whichever is applicable based on numbers given 5 Block #5 Select whichever is applicable 6 Block #6 Insert remarks (if any) 7 Block #7 Insert others reason (if any) 8 Block #8 Signature Purchasing Exec 9 Block #9 Date
10 Block #10 Select whichever is applicable
11 Block #11 Insert remarks (if any) 12 Block #12 Signature Senior Manager
13 Block #13 Date
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5.2 QUARANTINE NOTE
A. FORM
SUPPLY CHAIN MANUAL
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B. INSTRUCTION FOR COMPLETING QUARANTINE NOTE
1 Block #1 Insert Quarantine Number
2 Block #2 Insert Goods Received Note Number
3 Block #3 Insert Purchase Order Number
4 Block #4 Insert Invoice Number
5 Block #5 Insert Airway Bill / Delivery Consignment Number
6 Block #6 Insert Supplier Name
7 Block #7 Date(s)
8 Block #8 Insert Serial Number
9 Block #9 Insert Part Number
10 Block #10 Insert Description
11 Block #11 Insert Special Inspection Number / Batch Number
12 Block #12 Insert Purchase Order Quantity
13 Block #13 Receipt Quantity
14 Block #14 Quarantined Quantity
15 Block #15 State reason for Quarantine
16 Block #16 Name of Store Inspector
17 Block #17 Approval Number / Stamp
18 Block #18 Signature
19 Block #19 Date
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 2 Page:3
20 Block #20 Quantity Regularised
21 Block #21 Action Taken for Regularisation
22 Block #22 Insert Quantity Rejected
23 Block #23 Action Taken for Rejection
24 Block #24 Insert Store Inspector Name
25 Block #25 Approval Number/Stamp
26 Block #26 Signature
27 Block #27 Date
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 3 Page: 1
5.3 SUPPLIER APPROVAL FORM
A. FORM
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 3 Page: 2
B. INSTRUCTION FOR COMPLETING THE SUPPLIER APPROVAL FORM
1 Block #1 Select Type
2 Block #2 Insert Name of Requestor
3 Block #3 Insert Address of Requestor
4 Block #4 Insert Phone Number
5 Block #5 Insert Fax Number
6 Block #6 Insert Email
7 Block #7 Insert Part Number
8 Block #8 Insert Class
9 Block #9 Item Description
10 Block #10 Insert ATA Chapter
11 Block #11 State Reason for Requesting
12 Block #12 Name & Signature of Requestor
13 Block #13 Date
14 Block #14 Select Status
15 Block #15 Insert remarks (if any)
16 Block #16 Signature, SQAM
17 Block #17 Date
18 Block #18 Insert supplier updated
19 Block #19 Insert Supplier Code
20 Block #20 Name & Signature 21 Block #21 Date
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 4 Page: 1
5.4 SUPPLIER APPROVAL QUESTIONNAIRE FORM
A. FORM
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 4 Page: 4
B. INSTRUCTION FOR COMPLETING THE SUPPLIER APPROVAL
QUESTIONNAIRE
1 Block #1 Supplier Name
2 Block #2 Insert Address
3 Block #3 Insert Telephone Number
4 Block #4 Insert Facsimile Number
5 Block #5 Insert Case Number / Cage Code
6 Block #6 Tick whichever is applicable
7 Block #7 Description (tick whichever is applicable “Yes / No / N/A”
8 Block #8 Signature
9 Block #9 Insert Printed Name
10 Block #10 Insert Title
11 Block #11 Date
12 Block #12 Insert Email Address
13 Block #13 Insert Phone Number
14 Block #14 Insert Website Address
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 5 Page: 1
5.5 ASIA AEROTECHNIC SUPPLIER APPROVED LIST
A. FORM
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 5 Page: 2
B. INSTRUCTION FOR COMPLETING THE SUPPLIER APPROVED LIST
1 Block #1 Insert Sequence Number
2 Block #2 Insert Supplier Code
3 Block #3 Insert Supplier Name
4 Block #4 Insert Status
5 Block #5 Insert Expiry Date
6 Block #6 Insert Type
7 Block #7 Certificate Number
8 Block #8 Certificate Expiry Date
9 Block #9 State the Category
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 6 Page: 1
5.6 SCRAPPED MATERIALS DISPOSAL FORM
A. FORM
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 6 Page: 2
B. INSTRUCTION FOR COMPLETING THE SCRAPPED MATERIALS DISPOSAL
FORM
1 Block #1 Insert Date
2 Block #2 Insert Page(s) Number
3 Block #3 Insert Sequence Number
4 Block #4 Insert Material Description
5 Block #5 Insert Part Number
6 Block #6 Insert Serial Number
7 Block #7 Quantity
8 Block #8 Remarks (if any)
9 Block #9 Special Inspection Number
10 Block #10 Insert Disposal Date
11 Block #11 Insert Supplier Name
12 Block #12 Insert Custom Duties Receipt Reference Number
13 Block #13 Logistic Staff Signature
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 7 Page: 1
5.7 SHELF LIFE CALL OUT SHEET
A. FORM
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 7 Page: 2
B. INSTRUCTION FOR COMPLETING THE SHELF LIFE CALL OUT SHEET
1 Block #1 Sequence Number
2 Block #2 Insert Part Number
3 Block #3 Insert Alternative Part Number
4 Block #4 Item Description
5 Block #5 Insert Date Received
6 Block #6 Insert Stock Balance
7 Block #7 Insert Unit of Measure
8 Block #8 Insert Batch Number
9 Block #9 Date Expired
10 Block #10 Remarks / Action Taken (if any)
11 Block #11 Store Inspector Signature
12 Block #12 Logistic Signature
13 Block #13 Date
14 Block #14 Date
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 8 Page: 1
5.8 GOODS RECEIVED NOTE
A. FORM
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 8 Page: 2
B. INSTRUCTION FOR COMPLETING GOODS RECEIVED NOTE
1 Block #1 Insert Goods Received Note Number
2 Block #2 Insert Vendor Detail
3 Block #3 Raised By
4 Block #4 Staff ID
5 Block #5 Insert Remarks
6 Block #6 Date
7 Block #7 Insert Vendor Delivery Number
8 Block #8 Insert AirWay Bill Number
9 Block #9 Insert Gross Weight in kilograms
10 Block #10 Status
11 Block #11 Sequence Number
12 Block #12 Insert Part Number/Alternate Part Number Description
13 Block #13 Insert Batch Number/Purchase Order Number
14 Block #14 Insert Serial Number
15 Block #15 Insert Quantity
16 Block #16 Expiry Date
17 Block #17 Part Condition (Serviceable, New, New Surplus, PMA)
18 Block #18 Insert Discrepancy Report Number
19 Block #19 Bin Location 20 Block #20 Name
21 Block #21 Date
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 9 Page: 1
5.9 MATERIAL REQUISITION
A. FORM
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 9 Page: 2
B. INSTRUCTION FOR COMPLETING MATERIAL REQUISITION FORM
1 Block #1 Insert Work Order
2 Block #2 Insert Task Card Number
3 Block #3 Material Requisition Number
4 Block #4 Enter Date
5 Block #5 Insert Name of Person Requested
6 Block #6 Enter Representative Department
7 Block #7 Signature
8 Block #8 Select Type of Urgency
9 Block #9 Insert Customer Name
10 Block #10 Insert Aircraft Registration
11 Block #11 Sequence Number
12 Block #12 Insert Part Number
13 Block #13 Material Description
14 Block #14 Quantity
15 Block #15 Insert Unit of Measurement
16 Block #16 Insert Batch Number
17 Block #17 Action By’s Name
18 Block #18 Signature
19 Block #19 Date
20 Block #20 Insert Bin Location
21 Block #21 Stock Status
22 Block #22 Purchase Requisition
23 Block #23 Date
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 10 Page: 1
5.10 MATERIAL DRAWN NOT USED
A. FORM
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 10 Page: 2
B. INSTRUCTION FOR COMPLETING THE MATERIAL DRAWN NOT USED
FORM
1 Block #1 Insert Drawn Not Used Number
2 Block #2 Date
3 Block #3 Credited By
4 Block #4 Signature
5 Block #5 Enter Customer’s details
6 Block #6 Insert Aircraft Registration Number
7 Block #7 Enter Representative Department
8 Block #8 Material Description
9 Block #9 Insert Part Number
10 Block #10 Insert Quantity
11 Block #11 Insert Unit of Measurement
12 Block #12 Insert Ex-Batch Number
13 Block #13 Insert Name of In charge personnel
14 Block #14 Signature
15 Block #15 Insert Date
16 Block #16 Insert Bin Location 17 Block #17 Insert Quantity in Stock
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 11 Page: 1
5.11 SHIPPING NOTE
A. FORM
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 11 Page:2
B. INSTRUCTION FOR COMPLETING SHIPPING NOTE
1 Block #1 Insert supplier’s details
2 Block #2 Insert recipient’s details
3 Block #3 Insert Reference number
4 Block #4 Insert invoice date
5 Block #5 Insert shipment details
6 Block #6 Please select (Prepaid / Collect)
7 Block #7 Insert telephone number
8 Block #8 Insert fax number
9 Block #9 Insert number of package
10 Block #10 Insert Gross weight
11 Block #11 Insert Dimensional weight
12 Block #12 Insert shipping details
13 Block #13 Insert item sequence number
14 Block #14 Insert part number
15 Block #15 Description of component/item
16 Block #16 Insert serial number
17 Block #17 Insert batch number
18 Block #18 Insert quantity 19 Block #19 Insert remarks
20 Block #20 Insert Note (if any)
21 Block #21 Insert authoriser’s details
22 Block #22 Insert receiver’s details
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 12 Page:1
5.12 PURCHASE REQUEST
A. FORM
SUPPLY CHAIN MANUAL
Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 12 Page:2
B. INSTRUCTION FOR COMPLETING PURCHASE REQUEST
1 Block #1 Enter request number
2 Block #2 Enter suggested source
3 Block #3 Enter date of requested
4 Block #4 Enter date required
5 Block #5 Circle Y (yes) or N (no)
6 Block #6 Circle Y (yes) or N (no)
7 Block #7 Enter order placed to
8 Block #8 Enter customer
9 Block #9 Circle Y (yes) or N (no)
10 Block #10 Enter sequence number
11 Block #11 Enter quantity
12 Block #12 Enter unit of measurement
13 Block #13 Enter catalogue part number
14 Block #14 Enter description
15 Block #15 Enter purchase order number
16 Block #16 Enter date
17 Block #17 Enter price
18 Block #18 Enter request by requestor