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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


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

SUPPLY CHAIN MANUAL


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

SUPPLY CHAIN MANUAL


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

SUPPLY CHAIN MANUAL


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

Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 0 Chapter 4 Page 1

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

SUPPLY CHAIN MANUAL

Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 0 Chapter: 5 Page: 1

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

SUPPLY CHAIN MANUAL


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

SUPPLY CHAIN MANUAL

Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 0 Chapter 6 Page 1

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.

SUPPLY CHAIN MANUAL


PART 1

MANAGEMENT

SUPPLY CHAIN MANUAL


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

SUPPLY CHAIN MANUAL


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

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.


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.

SUPPLY CHAIN MANUAL


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

SUPPLY CHAIN MANUAL


PART 2

POLICY AND PROCEDURES OF

PURCHASING & MATERIAL PLANNING

DEPARTMENT

SUPPLY CHAIN MANUAL

Issue: Initial Revision No: 0 Date: 1 AUG 2015 Part: 2 Chapter:1 Page 1

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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


4. Rotables




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




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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.


1. Senior Manager Quality Assurance - SMQA

2. Manager Supply Chain - MSC


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.


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



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


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.


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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Issue: Initial Revision No: 0 Date: 1 AUG 2015 Part: 3 Chapter: 0 Page 1

PART 3

POLICY AND PROCEDURES OF LOGISTIC SECTION

SUPPLY CHAIN MANUAL


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.


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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Issue: Initial Revision No: 0 Date: 1 AUG 2015 Part: 3 Chapter: 2 Page: 2

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;


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.


EASA approved

organization located in

Canada, having the EASA


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.


1. Storekeeper - SK

2. Inventory & Material Planning Officer - MP


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.




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.


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.


1. Manager Supply Chain - MSC


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.


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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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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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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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.

SUPPLY CHAIN MANUAL


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.


1. Storekeeper - SK



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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


3.10. ACCEPTANCE/INSPECTION OF CUSTOMER’S OWN PROPERTIES (COP)

A. PURPOSE

This procedure outline the procedure for handling customers own properties

(parts & materials).



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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


3.11 TOOLS AND EQUIPMENTS LOAN

A. PURPOSE

The procedure outlines the processes in handling emergency loans of tools

and equipment.


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


PART 4

STORES INSPECTION

SUPPLY CHAIN MANUAL


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


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:

SUPPLY CHAIN MANUAL


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;


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,


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”)

SUPPLY CHAIN MANUAL


Used

Parts


release documents:

- As per AMC145.A.42(a)1&

AMCM.A.501.(a).(5);

- FAA Form 8130-3 for a

used part (e.g.


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.


EASA approved organisation located in

Canada, having the EASA


block;

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


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.

SUPPLY CHAIN MANUAL


PART 5

APPENDICES

SUPPLY CHAIN MANUAL


5.1 SUPPLIER EVALUATION FORM

A. FORM

SUPPLY CHAIN MANUAL


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

SUPPLY CHAIN MANUAL


5.2 QUARANTINE NOTE

A. FORM

SUPPLY CHAIN MANUAL

Issue : Initial Revision No: 0 Date: 1 AUG 2015 Part: 5 Chapter: 2 Page:2

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


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


27 Block #27 Date

SUPPLY CHAIN MANUAL


5.3 SUPPLIER APPROVAL FORM

A. FORM

SUPPLY CHAIN MANUAL


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


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


5.4 SUPPLIER APPROVAL QUESTIONNAIRE FORM

A. FORM

SUPPLY CHAIN MANUAL


SUPPLY CHAIN MANUAL


SUPPLY CHAIN MANUAL


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”


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


5.5 ASIA AEROTECHNIC SUPPLIER APPROVED LIST

A. FORM

SUPPLY CHAIN MANUAL


B. INSTRUCTION FOR COMPLETING THE SUPPLIER APPROVED LIST

1 Block #1 Insert Sequence Number

2 Block #2 Insert Supplier Code


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


5.6 SCRAPPED MATERIALS DISPOSAL FORM

A. FORM

SUPPLY CHAIN MANUAL


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



7 Block #7 Quantity

8 Block #8 Remarks (if any)

9 Block #9 Special Inspection Number

10 Block #10 Insert Disposal Date


12 Block #12 Insert Custom Duties Receipt Reference Number

13 Block #13 Logistic Staff Signature

SUPPLY CHAIN MANUAL


5.7 SHELF LIFE CALL OUT SHEET

A. FORM

SUPPLY CHAIN MANUAL


B. INSTRUCTION FOR COMPLETING THE SHELF LIFE CALL OUT SHEET

1 Block #1 Sequence 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


5.8 GOODS RECEIVED NOTE

A. FORM

SUPPLY CHAIN MANUAL


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


12 Block #12 Insert Part Number/Alternate Part Number Description

13 Block #13 Insert Batch Number/Purchase Order 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


5.9 MATERIAL REQUISITION

A. FORM

SUPPLY CHAIN MANUAL


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


8 Block #8 Select Type of Urgency

9 Block #9 Insert Customer Name

10 Block #10 Insert Aircraft Registration



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


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


5.10 MATERIAL DRAWN NOT USED

A. FORM

SUPPLY CHAIN MANUAL


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


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


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


15 Block #15 Insert Date

16 Block #16 Insert Bin Location 17 Block #17 Insert Quantity in Stock

SUPPLY CHAIN MANUAL


5.11 SHIPPING NOTE

A. FORM

SUPPLY CHAIN MANUAL


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


5.12 PURCHASE REQUEST

A. FORM

SUPPLY CHAIN MANUAL


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)


7 Block #7 Enter order placed to

8 Block #8 Enter customer


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

SUPPLY CHAIN MANUAL


19 Block #19 Enter approved person (optional for 3 person)

20 Block #20 Enter reason for purchase

21 Block #21 Enter total value

22 Block #22 Enter customer billing no.

23 Block #23 Enter buyer signature

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