Creating part warranty agreement

This page allows you to create a part warranty agreement for the parts supplied by the supplier. Tell me more.

Select the “Create Agreement” link in the "Select Supplier" page. Alternatively, click the hyperlinked supplier number in the multiline of the same page.

The “Create Part Warranty Agreement” page appears.

The system displays the following field:

Date Format

The format in which the date field is displayed. This format is displayed from the "User Preferences" business component based on the login user ID. In case the format is not defined, the system displays the date format from the "Enterprise Modeling" business component by default.

The system displays the following field in the "Agreement Details" group box:

Agreement #

A unique number identifying the part warranty agreement. This number is generated and displayed by the system, on clicking the “Create Agreement” pushbutton. The part warranty agreement number is generated based on the numbering type selected.

Enter the following fields:

Numbering Type

Use the drop-down list box to select the numbering type based on which the part warranty agreement number must be generated. The system lists all the numbering types created in the “Create Numbering Class” activity of the “Document Numbering Class” business component that are valid on the current date for the "Part Warranty Agreement" transaction type. By default, this field is set to the default numbering type for the “Part Warranty Agreement” transaction type.

Agreement Desc

The textual description of the part warranty agreement (Alphanumeric 255).

Zoom facility available.

The system displays the following field on clicking the "Create Agreement" pushbutton:

Status

The status of the part warranty agreement, which would be "Fresh".

Enter the following fields:

Agreement Category	Use the drop-down list box to select the category of the part warranty agreement. The system lists all the 'active' agreement categories defined in the “Create Quick Codes” activity. Leave this field blank, if you do not wish to specify the agreement category. The system leaves the field blank by default.
User Status	Use the drop-down list box to select the user status of the part warranty agreement. The system lists all the 'active' user statuses of part warranty agreement defined in the “Create Quick Codes” activity. Leave this field blank, if you do not wish to specify the user status. The system leaves the field blank by default.
Agreement Type	Use the drop-down list box to select the type of the part warranty agreement. The system lists the following options: Standard Terms – Select this option to specify that only one valid agreement exists for a supplier for a particular period. Special Terms - Select this option to specify that multiple valid agreements exist for a supplier for a particular period. By default, the system displays “Special Terms”.
Agreement Coverage	Use the drop-down list box to specify the warranty agreement coverage for the part. The system lists the following options: Parts Catalogue – Select this option to indicate that the warranty agreement is created for those parts that are mapped to the supplier in the “Supplier” business component. Specific Parts – Select this option to indicate that the warranty agreement is created for the parts that are specified in the multiline. By default, the system displays “Specific Parts”.
Warranty Begins On	Use the drop-down list box to specify the beginning of warranty for the part.. The system lists the following options: Receipt Date - Select this option if the warranty should begin from the date and time, when the part is received from the supplier or the repair agency. Installation Date - Select this option if the warranty should begin from the date and time, when the part is installed By default, the system displays “Receipt Date”.
Start Date	The date from which the agreement becomes valid (Date Format). Mandatory.
End Date	The date on which the agreement ends (Date Format). Mandatory. This date should be later than the start date.

The system displays the following details in the "Supplier Details" group box:

Supplier #	The supplier for which the part warranty agreement is created.
Supplier Name	The name of the supplier. Zoom facility available.
Supplier Type	The type of the supplier, which could be "Normal" or "Miscellaneous".
Currency	The code identifying the currency in which the supplier transacts.

Note: The system displays the details of the parts supplied by the supplier in the multiline, on invoking this page.

Note: The system allows the user to enter the part details in the multiline, only if the Agreement Coverage is set as “Specific Parts”.

Enter the following fields in the "Part Terms Details" multiline:

Part #	The number identifying the part for which the warranty agreement terms must be defined (Alphanumeric, 40). Mandatory. The following points must be ensured while entering this field:
	the part is already created in the "Create Parts Main Information" activity of the "Part Administration" business component.
	the reference status of the part is "Active".
	the part is mapped to the supplier, if the "Part Warranty Agg. Without Supplier - Part Mapping" option is set as "Not Allowed" in the "Set Options" activity.
	the “Warranty” field is checked for the part in the “Part Administration” business component, if the “On Warranty definition in Part Administration” field is set as “Check” in the “Option Setting” activity of the current business component.
	The part number must be unique in the multiline and cannot be modified.
	Help facility available.

The system displays the following fields:

Part Description	The textual description of the part.
Component Type	The type of the component, which could be “Engine”, “APU”, “Landing Gear” or “Others”.

Enter the following field:

In-House Repairable?	Use the drop-down list box to indicate whether the part can be repaired in the operator's shop itself or not. The system displays the options "Yes" and "No".
Applicable On Child Parts ?	Use the drop-down list and select “Yes” to specify that the part warranty agreement is applicable to the child parts if present in the configuration. Else select “No”. The system displays “Yes” by default.
Insurance By	Use the drop-down list to indicate the agency that would bear the insurance cost during shipping. The system lists the following options:
	Supplier - Select this option to indicate that the supplier of the part would bear the insurance cost.
	Operator - Select this option to indicate that the airline operator would bear the insurance cost.
Inspection Cost Reimbursement?	Use the drop-down list to indicate whether the supplier will remit inspection cost. The system displays the options "Yes" and "No".
	Yes - Select this option to indicate that the supplier will remit the cost incurred by the component during preliminary inspection.
	No - Select this option to indicate that the supplier will not remit the cost incurred by the component during preliminary inspection.
Reimbursement Limit (%) Of Part Cost	The percentage of the reimbursement limit, with respect to part cost (Integer). This value must be greater than zero.

The system displays the following field on clicking the "Create Agreement" pushbutton:

Maximum Reimbursement	The maximum reimbursement that is allowed for the part. This field is displayed only when you have entered value in the "Reimbursement Limit (%) of Part Cost" field. The system calculates this value as follows:
	The part cost if defined for the supplier, is retrieved from the “Supplier” business component. Otherwise, it will be retrieved from the “Part Administration” business component.
	As per the value entered in the “Reimbursement Limit (%) of Part Cost” field, the percentage of part cost is calculated as the maximum reimbursement for the part.

Enter the following fields:

MTBUR	The Mean Time Between Unscheduled Removals (Decimal). This is the total unit flying hours during the time period, divided by the number of unscheduled removals that occurred during the same period.
MTBF	The Mean Time Between Failure (Decimal). This is the average time that a component works without failure. It is calculated by dividing the total number of failures by the total number of operating hours observed. This value must be greater than zero.
Warranty Begins On	Use the drop-down list box to specify the beginning of warranty for the part. Mandatory. The system lists the following: Receipt Date - Select this option if the warranty should begin from the date and time, when the part is received from the supplier or the repair agency. Installation Date - Select this option if the warranty should begin from the date and time, when the part is installed. The system sets this field to “Receipt Date” by default.
Remarks	Any remark or comment pertaining to the part warranty terms (Alphanumeric, 255).

Note: Ensure that at least one record exists in the multiline, if the Agreement Coverage is set as “Specific Parts”.

Enter the following fields in the "Warranty Terms" group box:

Shipping Cost Reimbursement	Use the drop-down list box to indicate whether the supplier will remit the shipping cost. Mandatory. The system lists the options "Yes" and "No". By default this field is set to "No".
Part Costing Basis	Use the drop-down list box to specify the costing basis for claiming the failed part. Standard Cost – Indicates that the failed part is valuated at standard cost. Standard Purchase Price – Indicates that the failed part is valuated based on the standard purchase price. Current Rate – Indicates that failed part is valuated using the current rate. The system displays “Standard Purchase Price” by default.
Claim Remedy	Use the drop-down list box to select the nature of default claim remedy. The system lists the following options: Part Replacement – Select this option to request for part replacement from the supplier, as a claim remedy. Credit Request – Select this option to request for credit of claim amount for the failed part from the supplier, as a claim remedy. The system displays “Credit Request” by default.
Failed Part Disposition	Use the drop-down list box to select the mode of disposition of failed parts. The system lists the following options: Scrap – Select this option to indicate that failed parts are scrapped off. Return – Select this option to specify that the failed part is returned to the supplier. Hold – Select this option to specify that the failed part is kept on hold by the airline operator. The system displays “Hold” by default.
Notify Failure Before	The days or months before which the failure must be notified to the supplier (Integer). This value must be greater than zero.
	Use the drop-down list box provided alongside, to select the time unit. The system lists the options "Days" and "Months". The system displays "Days" by default.
Warranty Labor Rate / Hour	The labor rate per hour that will be remitted by the supplier (Decimal). This value must be greater than zero.
Failed Part Holding Days	The number of days for which the failed part can be held. (Integer). Ensure that a positive integer greater than zero is entered here.
Value Limit Periodic Processing	The claim value limit defined for the failed parts for a particular period. (Decimal). Ensure that a positive value greater than zero is entered here.
Comments	Any comment regarding the warranty terms (Alphanumeric, 255). Zoom facility available.
Remarks	Any remark regarding the warranty terms (Alphanumeric, 255). Zoom facility available.

Check the box in the “Select” column of the multiline, to select the part for defining default warranty and associating authorized repair shops.
Click the "Create Agreement" pushbutton, to create the part warranty agreement details.

Note: If the type of the part warranty agreement is "Standard Terms", then the system ensures that for a supplier, there exists no other part warranty agreement in “Confirmed” status with the same Agreement Type for the same time period.

The system performs the following after the "Create Agreement" pushbutton is clicked:

Generates the part warranty agreement number based on the numbering type selected.
Sets the status of the part warranty agreement as "Draft".

Note: The status of the part warranty agreement is changed to “Fresh”, after defining default warranty validity in the “Set Default Warranty Validity” page and after defining repair shop in the “Associate Authorized Repair Shop” page.

To proceed, carry out the following

Select the "Associate Authorized Repair Shop" link at the bottom of the page, to associate the authorized repair shops to the agreement.

Refer the "Associating authorized repair shop to part warranty agreement - An overview" for more details.

Select the "Set Default Warranty Validity" link at the bottom of the page, to create the default warranty validity details.

Refer the "Setting default warranty validity - An overview" for more information.

Select the "Edit References" link at the bottom of the page, to enter the reference document details for the agreement.
Select the “Edit Part Warranty Agreement” link at the bottom of the page to modify the part warranty agreement.
Select the "Edit User Defined Details" link at the bottom of the page, to enter the user-defined details for the agreement.
Select the “Confirm Part Warranty Agreement” link at the bottom of the page to confirm the part warranty agreement.

Creating part warranty agreement - An overview

. The part warranty agreement contains the warranty terms and conditions agreed by the supplier for offering warranty on the parts. The warranty administrator creates the warranty agreement with the supplier for the parts that he supplies.

A unique number identifies the part warranty agreement. You can specify the numbering type based on which the part warranty agreement will be created.

You can enter the following information for a part warranty agreement:

Agreement details

the textual description of the part warranty agreement
the category to which the agreement belongs
the user-defined status that you wish to assign to the agreement
the period of warranty coverage, which includes the start and end dates of part warranty agreement
the date on which the warranty is applicable, on reciept or attachment.

Part terms details

the part number for which the warranty terms must be defined
whether the part can be repaired in the operator's shop
the agency that would bear the insurance cost during shipping
whether the supplier would remit the cost incurred during preliminary inspection carried out on the component
Reimbursement limit: This is the limit of reimbursement offered for the part. It can be specified in terms of percentage of the part cost. This reimbursement limit is used to calculate the maximum reimbursement that can be claimed for each part.

For example, if the part costs 20$, and if you have specified 60% as the reimbursement limit agreed by the supplier, then the maximum reimbursement will be 12$.

MTBUR: The mean time between unscheduled removals. This is the total unit flying hours during the time period, divided by the number of unscheduled removals that occurred during the same period.
MTBF: The mean time between failure. This is the average time that a component works without failure. It is calculated by dividing the total number of failures by the total number of operating hours observed.
any remark or comment pertaining to the part terms

Warranty terms

whether the supplier would remit the shipping cost
the days or months before which the failure must be notified to the supplier
the labour rate per hour that would be remitted by the supplier
any remark or comment pertaining to the warranty terms and conditions

What you can do in this page

Identify the warranty coverage period
Specify whether the component is in-house repairable

Identify the agency which bears the insurance

Enter inspection cost reimbursement details

Enter shipment cost reimbursement details

Enter MTBUR and MTBF values

Identify warranty labor rate

Identify the warranty coverage period

Warranty coverage period refers to the start and end dates of warranty validity. You can specify the warranty start and end dates for each part or for a set of parts that are unique.

Enter the start date in the "Start Date" field in the "Agreement Details" group box.
Enter the end date in the "End Date" field in the "Agreement Details" group box.

Specify whether the component is in-house repairable

In certain cases, the supplier and the operator can decide to repair the component in the operator's premises. The total cost of the spares and the resources can be claimed from the supplier after the in-house repair. This page allows you to specify whether the component can be repaired in the operator's shop itself.

Set the "In-house Repairable" drop-down list box in the "Part Terms Details" multiline to "Yes," if you wish to repair the component in the operator's shop.
Set the "In-house Repairable" drop-down list box in the "Part Terms Details" multiline to "No", if you do not wish to repair the component in the operator's shop.

Identify the agency which bears the insurance

You can identify the agency that would bear the insurance cost while shipping the component.

Set the "Insurance By" drop-down list box in the "Part Terms Details" multiline to "Supplier", to indicate that the supplier would bear the insurance cost.
Set the "Insurance By" drop-down list box in the "Part Terms Details" multiline to "Operator", to indicate that the operator would bear the insurance cost.

Enter inspection cost reimbursement details

You can specify whether the supplier would remit the cost incurred during preliminary inspection performed on the component.

Set the "Inspection Cost Reimbursement?" drop-down list box in the multiline to "Yes", if the supplier will remit the inspection cost.
Set the "Inspection Cost Reimbursement?" drop-down list box in the multiline to "No", if the supplier will not remit the inspection cost.

Enter shipment cost reimbursement details

You can specify whether the supplier would remit the shipment cost incurred by the component.

Set the "Shipping Cost" drop-down list box in the "Warranty Terms" group box to "Yes", if the supplier will remit the shipping cost.
Set the "Shipping Cost" drop-down list box in the "Warranty Terms" group box to "No", if the supplier will not remit the shipping cost.

Enter MTBUR and MTBF values

MTBUR refers to the mean time between unscheduled removals. It is the total unit flying hours during the time period, divided by the number of unscheduled removals that occurred during the same period.

MTBF refers to the mean time between failure. This is the average time that a component works without failure. It is calculated by dividing the total number of failures by the total number of operating hours observed.

You can specify these two values for a part, against which the warranty of the part will be validated.

Enter the MTBUR and MTBF values in the "MTBUR" and "MTBF" fields respectively.

Record beginning of warranty

You can specify the beginning of the warranty for a part, with respect to receipt of parts through goods receipt or repair receipt or installation of part to the aircraft or component. The warranty can begin on the “Installation Date” or the “Receipt Date”.

Set the “Warranty Begins On” drop-down list box to “Installation Date”, if you wish to begin the warranty coverage for the part, from the date of installation of the part.
Set the “Warranty Begins On” drop-down list box to “Receipt Date”, if you wish to begin the warranty coverage for the part from the date of goods receipt or repair receipt.

Identify warranty labor rate

The labor rate per hour that will be remitted by the supplier can be identified.

Enter the warranty labor rate in the "Warranty Labor Rate / Hour" field in the "Warranty Terms" group box.