Requirements

4.2.2.2 Self-Assessment

Assessment of the materials management system can be made conducting self-assessment. To perform a self-assessment, an activity should assess each question in the assessment questionnaire and assign themselves a point score based on the scoring guidelines.

Review by outsider evaluator

The evaluator reviews the self-assessment, along with any data on materials management performance that is available. If the evaluator is satisfied at the conclusion of the review, the self-assessment is formally verified and the requirement is considered satisfied. Further review of the self-assessment in the form of an on site verification review may be required.

On site verification of the self-assessment:

If an on site assessment is required, the method for this assessment is made up of two major phases:

a. Additional documentation - The facility provides the evaluator with a copy of all relevant materials management documents.

b. Verification scope - The evaluator and the facility agree on those areas which require detailed verification during the on site review.

c. Scheduling - A mutually agreeable date for the on site review is established.

d. On site verification - The evaluator arrives on-site and verifies the specific areas of the assessment as agreed. If the on site review verifies the facility's self-assessment, the self-assessment is formally verified and the requirement is considered satisfied. If revisions to the score are required, this is conducted by the evaluator, and the revised assessment is noted (as the verified score) for the facility.

e. Verification report - The evaluator identifies their approval of the self-evaluation, or identifies the revised score in each applicable area and in total. The evaluator also documents any missing or inadequate procedures or inconsistencies in application discovered during the review.

# Customer interface,

# Scheduling system,

# Purchasing management,

# Product identification,

# Shipping,

# Inventory management,

# Handling & storage

# Packaging and

# Delivery.

The reason for separating these sections is to make it possible for the assessor to distinguish areas with unsatisfying results from the ones with satisfying results.

4.2.3.1 Logistics system requirements Management responsibility

$ The facility shall have a management structure, which recognises the importance of and places appropriate emphasis on the Material Planning and Logistics (MP&L) function. That structure shall include an individual responsible for the establishment, implementation and effective operation of the materials system. A unique individual responsible for all Material Planning and Logistics functions within the organisation reporting to the senior manager on-site is considered optimum.

$ Clearly defined job descriptions shall be maintained for all personnel involved in the Material Planning and Logistics function.

$ The science of ergonomics shall be utilised to assure efficient employee operations in the Materials Management area.

$ The key materials management measures relative to a facility's organisation shall be defined and tracked. They shall be correlated with customer expectations, and reviewed with senior management on a routine basis.

Materials management system

$ The facility shall establish, document and maintain a materials management system as a means of ensuring that the customer receives the right quantity of the right type of product at the right time. The facility shall prepare a materials management manual covering the requirements of this standard. The materials management manual shall include or make reference to the materials management system procedures and outline the structure of the documentation used in the materials management system.

The facility shall prepare documented procedures consistent with the requirements of this standard and the facility's stated materials management policy and effectively implement the materials management system and its documented procedures.

The manual shall include a current organisation chart for all personnel and organisations involved in the materials management process.

$ The facility shall possess a current material flow diagram for the facility. The diagram and other appropriate tools shall be utilised to optimise the flow of material through the operation, and actions shall be taken to continuously improve the layout of the facility to support optimisation.

Customer interface

$ The facility shall have a process to assure that any potential problems, which could impact the customer, particularly requirements, which cannot be met, are communicated as soon as they are identified. The facility shall take responsibility for informing customers immediately of any requirement information, which appears to be erroneous.

$ Where they are available from the customer, the facility shall utilise interactive inventory management systems

$ The facility must have a robust process for assuring that quantity disagreements with the customer are detected and reconciled in a timely manner.

Scheduling system

$ The facility shall receive requirement planning information electronically (Electronic Data Interchange - EDI). This information shall be processed directly into the facility's scheduling system. Manual transference of data between systems is a significant source of potential errors and should be avoided wherever possible.

$ The facility's scheduling system shall be driven by the customer's shipment requirements. The scheduling system must be sufficiently robust to minimise the necessity for excess transportation shipments. (Excess transportation shipments, also known as premium freight shipments, are shipments which require a transportation charge in excess of normal, usually due to the time requirement for the shipment)

$ The facility shall perform a capacity planning. A minimum planning horizon should be identified and reviewed. A process must be in place, which assures prompt communication to the designated customer contact for any capacity shortfalls, which could affect customer operations.

Purchasing

$ The facility shall transmit requirements data to his subcontractors electronically, using Electronic Data Interchange (EDI). The frequency of requirements transmission must be adequate for the commodity produced, and account for the lead times associated with purchased parts and materials.

$ The facility shall have a process to assure adequate performance levels and continuous improvement of the delivery performance of the subcontractor base.

Summarised information regarding the Delivery performance of subcontractors shall be provided on at least an annual basis to the activity responsible for subcontractor selection.

$ Incoming parts and material shall be evaluated to assure that the packaging used is robust. Corrective actions shall be taken when problems are encountered. The facility shall have a pro-active continuous improvement program for incoming packaging, which shall give appropriate emphasis to the reusability and recyclability of the packaging utilised. Where incoming material is not accompanied by an electronic record of shipment content, the facility shall have a receiving checking/verification process sufficiently robust to assure record integrity. The implementation of electronic communication of shipment information throughout the supply chain, including the use of scanning bar-coded shipping labels is strongly recommended.

Product identification

$ The facility shall have a system to assure that all containers or loads shipped are labelled appropriately. This includes –

! readability of bar-coded data,

! the use of the appropriate industry standard shipping labels,

! the use of special labels required for special transportation routings, such as freight consolidation labels, where required.

The facility must utilise an exceptionally robust process to prevent mislabelling of stock.

$ The facility shall have a process to assure adequate control of in-process labelling.

In-process product must be adequately differentiated. Where appropriate, bar-coding shall be utilised to identify and trace in-process material.

$ Storage or holding areas shall be clearly marked and easily distinguishable.

Shipping

$ The facility shall scan bar-coded shipping labels. The scanning of the label shall take place at the last possible point in the shipment process. The facility shall also have a robust process to assure that the data content of all shipment notices is 100%

accurate.

$ The facility shall utilise a robust process for an efficient method of generating the paperwork required, which minimises the potential for delay of outbound shipments.

$ The facility shall maintain a secure shipping area to prevent any damage or pilferage of product prior to shipment. An area for the preparation of paperwork and electronic transmissions shall be placed in a location conducive for efficient operation. All shipment paperwork (packing slips, bills of lading) shall be prepared to the relevant standards.

Inventory management

$ The facility shall track the flexibility and responsiveness of their production process, using a measurement such as Manufacturing Cycle Time (MCT) or an industry specific equivalent. The facility shall take actions to continuously improve the measure over time.

$ The facility shall monitor levels of inventory, including finished goods, work in-process, raw material and/or purchased parts, and take actions to continuously improve the levels over time.

$ The facility shall strive for an inventory level, which supports line of sight management.

Handling, storage, packaging

$ The facility shall have adequate controls in place to control the handling of containers. The controls shall emphasise the avoidance of damage to the containers and other materials handling units. The facility shall utilise returnable, reusable or recyclable materials handling units wherever practical.

$ The facility shall utilise adequate warehouse controls on all facility-level storage areas. Storage areas shall utilise written procedures that assure good record integrity practices, stock rotation and identification of stock segregation areas. Where applicable, the facility shall apply the same level of control at any external warehousing or storage locations.

$ The facility shall have a process to assure that accurate packaging data for all parts on release is confirmed before a shipment is made. The accuracy of all confirmed packaging data, including weight, quantity and dimensional data, shall be verified physically at least once per calendar year.

Delivery

$ Where routings are contractually specified, the facility's materials system shall communicate the required transportation routing (carrier and mode) to the shipping area. The shipping process shall assure that the facility complies with specified routings.

$ The facility shall notify the outbound carrier of shipping requirements in a timely manner. Carrier equipment shall be handled in an expeditious manner in order to assure that availability is maximised. Appropriate equipment, such as bracing and air bags, shall be utilised where necessary to assure that product is delivered to the customer damage-free.