AMR Proprietary and Confidential FAA Compliance Training

AMR Proprietary and Confidential 0-1 Training Modules  This training consists of four modules –Overview of Regulations, Purchasing Roles and Responsibilities –FAA Interaction –New Parts Sourcing –Repair Sourcing Sourcing Process (MRO, Parts, Services) Substantial Maintenance (Repair of A/C Parts) Non-Substantial Maintenance & New Parts Purchase TULAFW Services (On Call Maintenance, Fuel) Non-A/C Parts (Safety Eqpt.) A/C Parts (Repair/New Parts) TULAFWHDQ

AMR Proprietary and Confidential Module-4 (FAA-104) Repair Sourcing

AMR Proprietary and Confidential Repair Sourcing Procedure  Where can we find the Repair Sourcing Procedure? –Jetnet – Under Purchasing Department section –Purchasing Website Processes >> Sourcing by Director >> M&E 4-1

AMR Proprietary and Confidential Why have a Repair Sourcing Procedure  As a Part 121 Air Carrier, AA may make arrangements with other organizations (Outsource Maintenance Providers or OMPs) for the performance of any maintenance, preventive maintenance or alterations.  GPM Section outlines our responsibilities while making such arrangements with OMPs  “The Managing Director, Purchasing has the overall authority to establish and modify the policies, procedures, instructions and information for the Approved Supplier Process” 4-2

AMR Proprietary and Confidential Responsibility and Authority  The primary “action” responsibility falls to the Commodity Managers and Purchasing Assistants –CMs: Responsible and accountable for ensuring the process is followed; may delegate certain tasks to PAs –PAs: Responsible for supporting CMs and for timely, accurate database entry/maintenance –Other Positions with roles in this process: Managing Director, Purchasing Purchasing Managers Supply Base Administrator M&E Quality Surveillance MPP Planners RO Index Editor (Publications) 4-3

AMR Proprietary and Confidential Request for a new Repair Source  Some circumstances driving the need to identify and establish a new Repair Source: –New Part –Current Source is not capable New Workscope Source discontinues this work In-house spill over –Establish competition 4-4

AMR Proprietary and Confidential Before executing the request  Make sure –Part is not under exclusive contract with another Repair Agent –Part is not worked in-house –If one of the above is applicable: Is it a different workscope that we are looking at? Is it a spillover from the AA shops? Is this eligible under the exclusive agreement? –If none of the above is applicable: We evaluate the proposed alternative solution Check if an AA shop desires to compete in the sourcing event 4-5

AMR Proprietary and Confidential Identify a Repair Source  How do we identify a new Repair Source? –MOC Screen For a similar part –Engineering –CRO-SRM (OSS) –AeroExchange  Even if Requestor identified a specific supplier, we still need to identify other sources 4-6

AMR Proprietary and Confidential Repair Source  Who can repair Aircraft Components?  Repair Agents have to be approved by AA’s CASS –Refer to our responsibilities under the GPM with respect to the Outsource Maintenance Provider –Refer FOCUS (explained further)  Repair Agents also have to be an Active (unrestricted) supplier in AAPICS –Refer to the V80 screen –If supplier not active in AAPICS, use the Supplier Add/Change form 4-7

AMR Proprietary and Confidential FOCUS Listing  All approved Repair Agents are listed in FOCUS –Sign into RES in SABRE –Approved Repair Agents are listed by choosing transaction F*SPL in RES  FOCUS lists Suppliers under various categories: –Component Repair –Substantial Maintenance Repair –Manufacturers –Part 145 Repairs  If Supplier is not listed in FOCUS, under the appropriate category, send a request to CASS 4-8

AMR Proprietary and Confidential Substantial Maintenance  Does the part need to be sent to a Substantial Maintenance Provider? –Is the part a major emergency equipment (Slide or Raft)? –Is the component an engine Full Authority Digital Electronic Control (FADEC)? –Is the component a Life-Limited engine Part (LLP)? Class 3X6  If the answer to ANY of the above questions is YES, then part has to be maintained by a Substantial Mantenance Provider 4-9

AMR Proprietary and Confidential Supplier Capabilities  Does the part need to be maintained by a Substantial Maintenance Provider? –Use (and complete) AA Internal Worksheet P2 for EACH part  Is supplier capable of maintaining the part to the requirements of AA’s ESOs? –Use (and have supplier complete) Supplier Checklist for EACH part 4-10

AMR Proprietary and Confidential Sourcing Decision  Are we ready to execute the sourcing decision? –Internal Worksheets Pages 1 & 2 (Substantial Maintenance) –Supplier Checklist –AAPICS V80 printout –FOCUS Listing printout  Have a Manager sign off on the sourcing decision  Have the authorized DECS Administrator update the MYI screen for the part with the approved repair supplier 4-11

AMR Proprietary and Confidential Checklists

AMR Proprietary and Confidential Checklists

AMR Proprietary and Confidential Repair Sourcing Flowchart SUPPLIER STATUS IN AAPICS FOCUS LISTING SUPPLIER SELECTION SUBMIT SUPPLIER CHECKLIST/RFQ SMC DETERMINATION (AA Internal Worksheets P1 & P2) AAPICS FOCUS M & E SHOP VERIFICATION PART UNDER CONTRACT? Request for Repair Source Addition has been made MANAGER SIGN OFF UPDATE DECS 4-14

AMR Proprietary and Confidential Things to watch out for  FOCUS Listing  FOCUS and V80 Printouts  Avoid By-passing the automated system 4-15