QUALITY PROCEDURES

QP-201-04

MATERIAL SERVICE
AND PURCHASING

Originator: Aircraft Parts & Tools Planning & Purchasing

 QUALITY PROCEDURE
MATERIAL SERVICE AND PROCUREMENT No.: QP-201-04

The current version of this QP is Issue B Revision 1 and comprises of the pages listed below:

TABLE OF CONTENTS & LIST OF EFFECTIVE PAGES

Title Issue/Revision/Date Pages

Cover page
TABLE OF CONTENTS & LIST OF EFFECTIVE PAGES Issue B/Rev.1/14-Jan-19 1
RECORD OF REVISIONS Issue B/Rev.1/14-Jan-19 2
1. GENERAL INFORMATION Issue B/Rev.0/27-Mar-18 -
1.1 Originator - 3
1.2 Applicability - 3
1.3 Reference - 3
1.4 Purpose - 3
1.5 Associated Procedures - 3
1.6 Quality records and forms - 3
2. DEFINITIONS Issue B/Rev.0/27-Mar-18 4
3. RESPONSIBILITY AND PROCEDURE Issue B/Rev.1/14-Jan-19 -
3.1 Flow of Material Purchase Order - 5
3.2 Requirements - 6-7
3.3 Responsibility - 7-8

Date:

Issued by: Accepted by:

GM Aircraft Part & Tools Planning & Purchasing VP Quality Assurance & Safety

R. Fisher A. Manalu Endra Wirawan

Issue: B Revision No.: 1 Date: 14 January 2019 Page 1 of 8

Form No.: GMF/Q-034 R2 CONTROLLED COPY DO NOT DUPLICATE
 QUALITY PROCEDURE
MATERIAL SERVICE AND PROCUREMENT No.: QP-201-04

RECORD OF REVISIONS

QP / WI NO. & REVISION DESCRIPTION OF ISSUE / DATE SUPERSEDED

ISSUE REVISION
QP-201-04 REV.0 New Procedure 25-Nov-13 N/Y
Issue A
- Reissuing procedure update
- Modify definition part with QP-201-04
QP-201-04 REV.0 relevant procurement term 27-Mar-18 Issue A, Rev 0
Issue B and eliminate the un-relevant 25-Nov-13
term

- Replacement of purchaser, QP-201-04

QP-201-04 REV.1 user and logistic job role and 14-Jan-19 Issue B, Rev 0
Issue B responsibility 27-Mar-18

Form No.: GMF /Q-036

Issue: B Revision No.: 1 Date: 14 January 2019 Page 2 of 8

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 QUALITY PROCEDURE
MATERIAL SERVICE AND PROCUREMENT No.: QP-201-04

1. GENERAL INFORMATION

1.1. Originator: GM Aircraft Parts and Tools Planning and Purchasing

1.2. Applicability: Material Service and Procurement

1.3. References:

AMOM 2.1, 2.2, 2.20 and 2.28

RSQM 2.1, 2.2, 2.20 and 2.28
MOE 2.1, 2.2, 2.20 and 2.28

1.4. Purpose:

This procedure is a guidance to do material procurement activity in appropriate sequence with the detail
description and comply with approved regulation.

1.5. Associated Procedures:

QP-201-01 : Supplier Evaluation and Subcontractor Control

QP-202-01 : Receiving Material Inspection
QP-205-01 : Calibration Inspection Measuring and Test Equipment
QP-206-01 : Local Manufacturing of Tools and Equipment
QP-601-17 : Unserviceable Component Movement

1.6. Quality Records and Forms:

GMF/Q-039 : Vendor Approval Questionnaire

GMF/Q-041 : Vendor Candidate Quality Evaluation Request
GMF/Q-287 : Purchase Order Proposal Approval
GMF/Q-298 : Repair Station Evaluation and Approval
GMF/Q-299 : Repair/Exchange Cost Approval

Issue: B Revision No.: 0 Date: 27 March 2018 Page 3 of 8

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2. DEFINITIONS

BIDDING PROCESS: An offer to set a price for a product by sending the RFQ (Request for Quotation) to
vendor/supplier and get the feedback a quotation from them. Then compare and evaluate the price and
lead time to find the lowest price, negotiation is necessary to do, as an awarding vendor, and payment term
also can be negotiation item

CA: Cost Approval (CA) as reference to component purchase order

GADC: GMF AeroAsia Distribution Center (GADC) is a main warehouse of GMF AeroAsia

INBOUND: The step to proceed the inbound logistic number which synchronize the Shipment Tracking
Number and Shipping Invoice number

IO: Internal Order (IO) is a budget of investment reference

MATERIAL INSPECTION: The activity to ensure that coming material or tool is supplied in good quality
physically and certificate completely as requirement

MRIR: Material Receiving Inspection Report (MRIR) is a report presenting discrepancies of material that have
been ordered and need to be resolved by procurer

MRP: Material Requirement Planning (MRP) which set by Planner with min-max setting to maintain the
expendable and routine material

PO/RO: Purchase Order (PO) and Repair Order (RO) is a legal document to do purchasing or repairing
activity and as reference for vendor to provide the product as customer look for

POPA/RSEA: Purchase Order Proposal Approval (POPA) and Repair Station Evaluation and Approval (RSEA)
is a supporting hardcopy file as complement of PO or RO

PPI: Pengajuan Permintaan Investasi (PPI) is a document which provided by end user for investment item
(tools and components procurement)

PR: Purchase Request (PR) as requirement to purchase material expendable or tool or component that exist
due to MRP setting, finding item, or PPI

PURCHASING MANAGEMENT: Managerial level in purchasing unit

RFQ: Request for Quotation (RFQ) is an offering activity between GMF and vendor/supplier to obtain term
and condition (price, condition, certification required, delivery time, term of payment, and another aspects
of procurement) of product or service requirement and to achieve the most equitable condition for the
effectiveness of maintenance process

SEO/EO: Service Engineering Order (SEO) or Engineering Order (EO) as requirement to service the tool or
component

USER: Personnel or unit who will apply or use the material or tool or component

Issue: B Revision No.: 0 Date: 27 March 2018 Page 4 of 8

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MATERIAL SERVICE AND PROCUREMENT No.: QP-201-04

3. RESPONSIBILITY AND PROCEDURES

3.1 Flow of Material Purchase Order

UNIT/PERSONNEL IN
FLOW PROCESS T-CODE/FORM CHARGE

START

Review Purchase Requisition ME5A/ Purchaser

MD04
Material Source
Available in ERP N/A Price Management Unit
System

ME21N/
Issue PO Purchaser
GMF/Q-431
Shipping Arrangement N/A Logistic Unit

Create Inbound VL31N Purchaser

Material Receiving Receiving and

Process N/A
Inspection Unit

Store in Material
Warehouse
N/A Warehouse Personnel

END

Issue: B Revision No.: 1 Date: 14 January 2019 Page 5 of 8

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3.2 Requirements

3.2.1 Expendable Purchase

a) Production order or MRP setting for reference

b) PR (for planning and non-planning) which is generated in system

c) Schedule and time frame required by user

3.2.2 Tool Purchase

a) PPI and/or IO

b) Tool specification (drawing, if any) and certificate required

c) Schedule and time frame required by user

3.2.3 Component Purchase

a) Production Order or PPI or CA

b) Component specification and certificate required

c) Schedule and time frame required by user

3.2.4 Component and Tool Repair

a) SEO or EO or work scope which is provided by user indicates the scope of repair required

b) Schedule and time frame required by user

3.2.5 Component Exchange

a) Detail specification and certification required by user

b) Schedule and time frame required by user

c) Customer approval, if any

3.2.6 Component and Tool Service

a) Request letter from user indicates the scope of service required

b) Specification of the service required

c) Usage schedule and time frame required by user

Issue: B Revision No.: 1 Date: 14 January 2019 Page 6 of 8

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MATERIAL SERVICE AND PROCUREMENT No.: QP-201-04

3.2.7 Component and Tool Borrow

a) Request letter from user indicates the scope of service required

b) Specification of the service required

c) Schedule and time frame required by user

3.3 Responsibility

3.3.1 Purchaser

a) Purchaser send the RFQ (Request for Quotation) to vendor which is registered as GMF vendor list

b) Purchaser will indicate clearly on each purchase order to vendor that certificate required to be
submitted meets the requirement found in AMOM, RSQM, and MOE

c) Purchaser shall strive to achieve efficiency, effectiveness, and best value of price. All of quotation
proposal shall be evaluated based on following criteria as mentioned below:
• Bid price
• Lead time
• Delivery and payment term
• Other specific criteria required, if any

d) Purchaser shall monitor all purchasing activity, start from order confirmation to vendor until delivery
time and part enters to store

e) Purchaser shall follow up the outstanding issue, such as dispute invoice, pending
material/tool/component in receiving unit or quality inspection

3.3.2 User

a) User shall inform the requirement to planner and purchaser

b) User shall inform the specification/data as refer to requirement to planner and purchaser, if any

c) User shall inform the due date of schedule to planner and purchaser, if any

d) User shall involve in checking and acceptance in tool or service provided and inform the Acceptance
Report to purchaser

3.3.3 Logistic Unit

a) Logistic Unit shall arrange the shipment not only the import but also the export activity

b) Logistic Unit shall inform pre-alert document to Purchaser

Issue: B Revision No.: 1 Date: 14 January 2019 Page 7 of 8

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c) Logistic Unit shall proceed the custom clearance

d) Logistic Unit shall do receiving and inspection activity

e) Logistic Unit shall do material storage and monitor the system and actual data suitability

3.3.4 Purchasing Management

a) Purchasing Management shall approve the PO by system according to level of value

b) Purchasing Management shall review PO, RSEA, RCEA, and/or POPA

3.3.5 Price Management

Price Management shall to provide and maintain source list in system for material purchase

Issue: B Revision No.: 1 Date: 14 January 2019 Page 8 of 8

Form No.: GMF/Q-034 R2 CONTROLLED COPY DO NOT DUPLICATE