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Engineering Procedure

SAEP-44
Instructions for Commodity Material Management

4 July 2016

Document Responsibility: Projects Procurement Department

Contents
1

Scope............................................................. 2

Conflicts and Deviations................................. 2

Applicable Documents................................ 2

Definitions and Acronyms........................... 2

Roles and Responsibilities............................. 4

Guidelines............................................... 5

Governance.............................................. 10

Appendix A... 12
9COM Creation Flow Chart.......... 12
9COM For New Technology. 13
Appendix B....... 15
9COM Description Maintenance Flow Chart.. 15
9COM QM Maintenance Flow Chart... 16
Appendix C....... 17
9COM Deactivation Flow Chart........... 17

Previous Issue: New

Next Planned Update: 4 July 2019


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Contacts: Al-Jumaia, Muwaffag A. on +966-13-8741042, Seba, Zaki A. on +966-13-8740625, and


Al-Baradie, Abdulqader S. (albaraas) on +966-13-8742181
Saudi Aramco 2016. All rights reserved.

Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

SAEP-44
Instructions for Commodity Material Management

Scope
1.1

This Saudi Aramco Engineering Procedure aligns the responsibility of


procurement organization and standards committees to create traceability and
accountability to assure appropriate structure and classification of Commodity
Material (9COMs) codes.

1.2

This Saudi Aramco Engineering Procedure shall facilitate and streamlines the
creation, maintenance, and deactivation of Commodity Material (9COMs).

Conflicts and Deviations


2.1

Any conflicts between this procedure and other applicable Saudi Aramco
Standards, Procedures and Procurement Manual shall be resolved in writing
through the Projects Procurement Department (PPD) Manager.

2.2

Direct all requests to deviate from this procedure in writing to PPDs Manager.

Applicable Documents
Applicable references are mentioned below:
Saudi Aramco Engineering Procedures
SAEP-31

Corporate Equipment and Spare Parts Data


Requirements

SAEP-133

Instructions for the Development of Regulated


Vendors List Engineering Standards

SAEP-302

Instructions for Obtaining a Waiver of a Mandatory


Saudi Aramco Requirement

SAEP-1151

Inspection Requirements for Contractor Procured


Materials and Equipment

SAEP-1400

Technical Evaluation for Process and Control Systems


Manufacturers

Saudi Aramco Procurement Manual


4

Definitions and Acronyms


Terms or abbreviations within this document are defined below:
9CAT: Cataloged materials that are intended to be stocked either in Materials Supply
Inventory or by the stocking vendor.
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Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

SAEP-44
Instructions for Commodity Material Management

B2B: Business to Business, it is a procurement methodology uses a web based


application that allows Company employees to request materials from an electronic
catalog backed by purchase agreements.
GS: General Supply, it is a well-described type of material that is procured from
multiple sources and used by multi-users such as small equipment and stationary
materials, unlike Spare Part.
ID: Inspection Department
IDCAT: Inspection Department Category
Inspectable 9COM: Materials that require QM Control, Inspection and plant approval.
IR: Inspection Requirement. Saudi Aramco Form SA-175 titled Inspection and
Testing Requirements that contains minimum guideline for inspection and testing found
in the relevant Saudi Aramco Materials System Specification (SAMSS) and industry
codes and standards.
M&SSD: Materials and Services Standardization Division
MDM: Master Data Management tool used to catalogue, maintain, and search for
material master in SAP.
MSG: Material/Service Group
Non-inspectable 9COM: Material that neither require inspection nor plant approval.
PA: Purchase Agreement. It is a binding contract between Saudi Aramcos purchasing
and vendor.
P&SCM: Procurement and Supply Chain Management
PPD: Project Procurement Department
QM: Quality Management
RVL: Regulated Vendors Listing
USER: Plant Proponent (Maintenance, Engineering, Operation), Technical Entity
(Engineering Services, Loss Prevention Department, PMT and Drilling..., etc.) and
Procurement Planner
SBDD: Sourcing & Business Development Division
SCC: Standards Committee Chairman or Equivalent for Non-Engineering Organizations

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Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

SAEP-44
Instructions for Commodity Material Management

SCC Organization: Management authority which includes the next level of approval
for SCC.
SP: Spare Parts, is an item made specifically as a part or component of a particular
assembly and which is produced only by the manufacturer of the assembly.
SPD: Strategic Procurement Division
SRMD: Supplier Relationship Management Division
TMD: Technology Management Division
VID: Vendor Inspection Division
5

Roles and Responsibilities


5.1

The process owner of creation, maintenance, and deletion of 9COMs is technical


entity (Engineering Services) and procurement organization (P&SCM).

5.2

The relevant unit heads from all departments who owned MSG in coordination
with M&SSD is responsible for overall development and maintenance of all
inspectable 9COM.

5.3

M&SSD engineer is responsible for development and maintenance of non


inspectable 9COM in consultation with SCC. M&SSD engineer is also
responsible for development and maintenance of all SP and PA 9COMs.

5.4

Inquiries related to the creation and maintenance of 9COM shall be addressed to


M&SSD.

5.5

SCC and relevant Unit Heads, VID, M&SSD, and SBDD shall process
workflows for creation and maintenance to the 9COMs in accordance to this
procedure.

5.6

Any pending requests more than the mentioned timeframe in Appendices A, B


and C shall be escalated to higher chain of command up to the Chief Engineer
(CE).

5.7

The relevant SCCs shall be responsible for the final determination of the 9COM
inspectability level and RVL management in accordance with established
criteria. If the material determined to be inspectable, SCC shall be responsible
to maintain the description and correspondence specification. In case SCC
rejects the request, his respective Division Heads approval is required.

5.8

VID is responsible to maintain SA-175 Forms of inspectable 9COM (IDCATA/B/S) in SAP.


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Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

5.9

SAEP-44
Instructions for Commodity Material Management

SBDD is responsible to maintain sources linkage for inspectable 9COM and for
non-inspectable 9COM of Downhole and Chemical (process and drilling)
commodities only.

Guidelines
6.1

9COM Function
9COM Commodity Materials: It is non-cataloged materials which are not
stocked and used to facilitate direct charge procurement process for Saudi
Aramco operating facilities and projects. It governs the manufacturer
qualification for inspectable and non-inspectable commodity materials.
Moreover, it has the highest utilization in the company that requires sufficient
level of specifications and number of approved manufacturers.
Notes: Purchase agreement 9COMs are a unique type of general supply 9COM that is
administered by M&SSD and used only for purchase agreement requirements
of non-critical/non-inspectable materials.
Creation request of general supply purchase agreement 9COMs shall be
initiated by Buyers and restricted to B2B materials and Non-inspectable
materials required to support purchase agreement development.

6.2

9COM Creation and Reactivation


6.2.1

9COM Criteria
9COM creation and reactivation is limited to one of the following:

6.2.2

6.2.1.1

Material required for business need such as operational


purchase and project requirement that does not exist in SAP.

6.2.1.2

Procurement of new technology trail and deployment

6.2.1.3

Material required for special application

6.2.1.4

Commodity standardization and classification

Inspectable 9COM Process and Requirements


The process of 9COM creation or reactivation is as follow:
6.2.2.1

New described 9COM request shall be initiated through SAP


workflow by user with a valid justifications meeting above
criteria. If the 9COM is required to be created for trail and
deployment of a new technology material, Users Department
Head approval is required.

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Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

6.2.2.2

SAEP-44
Instructions for Commodity Material Management

M&SSD engineer shall do the following:


Conduct duplication analysis to check for existing or
similar 9CAT or 9COM matching customer requirement.
Review 9COM classification, minimum description
requirements.
Identify the applicable MSG.
Process the request to SCC for review and approval. In case
M&SSD rejects the request, respective Division Heads
approval is required.

6.2.2.3

SCC shall perform the following:


Determine if the material is inspectable or not per
established criteria.
Review/approve the provided material descriptions and
specifications.
SCC decisions to approve or rejects 9COMs request as per
this procedure shall be approved by his respective Division
Head.
Review and link applicable standards, evaluate if SAMSS is
required and check availability of SAMSS.
If no SAMSS is available, SCC shall start the process of
new SAMSS development and the Technical Department
Head shall be informed. During development, M&SSD
shall provide alternative 9COM to customers.
Recommend and assign inspection plan (SA-175 Form) for
IDCAT-A/B/S category.
If no inspection plan (SA-175) is available for a certain
commodity, new form should be developed by SCC.
The new form shall be shared with M&SSD.
Propose candidate suppliers and minimum manufacturer if
applicable.

6.2.2.4

VID shall review QM data, and link inspection plan form


(SA-175) to a 9COM with category IDCAT-A/B/S.

6.2.2.5

SBDD shall review and concur sources availability of the


requested material commodity prior to 9COM creation. In case

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Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

SAEP-44
Instructions for Commodity Material Management

SBDD rejects the request, respective Division Heads approval


is required.
6.2.2.6

M&SSD engineer shall conduct a final review prior to 9COM


creation in SAP Material Master.

6.2.2.7

All users shall be notified of the created 9COM. For created


Technology 9COM (refer to paragraph 6.3.2.5), Technology
Management Division (TMD) shall be notified.

6.2.2.8

SBDD shall start sourcing activities immediately and the


manufacturers linkage once approved.
Notes: Any inspectable 9COM (IDCAT-A/B/S) shall have SA-175
form. A creation of inspectable 9COM (IDCAT-A/B/S/T)
without SA-175 form shall not be processed.
Spare parts required to support maintenance of equipment
shall be cataloged as 9CATs.

6.2.3

6.3

Non-inspectable 9COM Process and Requirements


6.2.3.1

If SCC decide that the 9COM shall be non-inspectable,


M&SSD shall create 9COM.

6.2.3.2

M&SSD shall notify SRMD to link applicable sources.

6.2.3.3

All users shall be notified of the created 9COM.

Inspectable 9COM Categories


6.3.1

6.3.2

Determining inspection category and relevant requirements for a specific


inspectable material are mainly based on criticality rating matrix of four
elements:
6.3.1.1

Design and Engineering Requirements

6.3.1.2

Materials Manufacturing Complexity

6.3.1.3

Operating Conditions

6.3.1.4

Impact of Failure

Inspection categories define the commodity material inspection set up


and are classified as following:
6.3.2.1

IDCAT-A: Visual inspection is mandated according to


applicable Inspection Plan IR (SA-175 Form). It is required
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Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

SAEP-44
Instructions for Commodity Material Management

that these materials are procured from an approved


manufacturing plant.
6.3.2.2

IDCAT-B: Final inspection and/or certification review as


mandated by applicable Inspection Plan IR (SA-175 Form).
It is required that these materials are procured from an
approved manufacturing plant.

6.3.2.3

IDCAT-C: No inspection is required. However, it is required


that these materials are procured from an approved
manufacturing plant.

6.3.2.4

IDCAT-S: Visual inspection or certification review is required.


This category is applicable for inspectable spare parts only.
Approval of manufacturing plants supplying these materials is
not mandatory.

6.3.2.5

IDCAT-T: Only for technology trial and deployment, inspected


by technology developer, end user or Inspection Department as
defined by SCC. Vendor approval isnt mandatory for
technology 9COMs since the developer is approved by the
user Department Head during the creation request stage.
Note:

6.4

Please refer to Appendix A (9COM for New Technology


Single and Mass Deployment) for the process flowchart
regarding newly created 9COM governed by IDCAT-T level.

9COM Description Maintenance


6.4.1

All 9COMs descriptions change requests shall be directed to M&SSD


engineer for initial review.

6.4.2

Change in the description for the 9COM shall be reviewed / approved by


the SCC. SCC decisions to approve or rejects 9COMs maintenance
requests as per this procedure shall be approved by his respective
Division Head.

6.4.3

M&SSD shall review and process description change request approved


by the SCC.

6.4.4

VID shall be notified by M&SSD to update relevant inspection plan if


applicable.

6.4.5

All users shall be notified of the description update for the 9COM.

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Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

6.5

6.6

SAEP-44
Instructions for Commodity Material Management

6.4.6

SCC is responsible to conduct 9COMs mass review every 2-3 years to


be in consistent with the latest Saudi Aramco Engineering Standards
Revisions.

Note:

Any revisions to 9COM description must consider the impact and necessary
actions for those manufacturers that are already approved for the 9COM being
revised.

9COM QM Maintenance
6.5.1

Request to change the QM data for the 9COMs can be initiated only by
responsible Technical Department or Inspection Department through SAP
workflow among Company responsible entities. Change in the QM data
for the 9COM shall be reviewed/approved by the SCC and his respective
Division Head. If no inspection plan (SA-175) is available for a certain
commodity, new form should be developed by SCC. In case SCC rejects
the request, his respective Division Heads approval is required.

6.5.2

VID shall review the proposed QM data change request approved by


SCC. In case the material is changed from IDCAT-C to IDCATs
A/B/S, SA-175 form to be developed by SCC and uploaded by VID in
SAP if applicable.

6.5.3

M&SSD shall be notified to update relevant 9CAT materials accordingly.

6.5.4

SCC is responsible to conduct QM mass review every 2-3 years to be in


consistent with the latest Saudi Aramco Engineering Standards Revisions.

9COM Deactivation
6.6.1

Criteria
The criteria for 9COM deactivation are limited to one of the following:
6.6.1.1

One year created 9COM in SAP with no available sources

6.6.1.2

Insufficient description, specification, and standard

6.6.1.3

Outdated technology

6.6.1.4

Duplication and standardizing

6.6.1.5

No usage

6.6.1.6

Prohibited by SA specifications and standards

6.6.17

Engineering Services Technical Alerts

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Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

6.6.1.8
6.6.2

SAEP-44
Instructions for Commodity Material Management

Loss Prevention Safety Alerts

Process and Requirements


The process of 9COM deactivation is as follows:
6.6.2.1

All 9COMs deletion request shall be directed to M&SSD


engineer for initial review. M&SSD engineer shall review if
the request is meeting above criteria.

6.6.2.2

If the deactivation request is for inspectable 9COM and meets


the above criteria, it shall be sent to SCC or equivalent for
review and approval. In case SCC rejects the request, his
respective Division Heads approval is required.

6.6.2.3

M&SSD engineer shall review / process deletion request


approved by the SCC.

6.6.2.4

All manufacturers exist in transaction ZQ0025 shall be


delinked.

6.6.2.5

All users shall be notified of the deleted 9COM including


SBDD and Purchasing.

Note:

6.7

M&SSD shall transfer associated 9CATS linked to the deactivated


9COM to an active and applicable 9COM.

9COM Selection
User is accountable to use MDM search tool and find his required 9COM.
M&SSD engineer can be approached for clarification only. MDM Materials
Search tool is now available through myhome Corporate Portal.
Notes: The use of searching tool requires SAP Role: MMIM:MPSD:GEN_DISPLAY:0000.
E-Training can be taken to learn how to use this new and improved search tool
thru: MDM Search Course.

Governance
7.1

Category Management Alignment


Category Management: A structured strategic procurement process that
requires high collaboration among all stakeholders to leverage company
spend to satisfy customer requirements and drive significant value creation
throughout the value chain. Hence, the current supply chain structure is
classified to groups, commodities, material service groups and material masters.
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Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

SAEP-44
Instructions for Commodity Material Management

Commodity categories and sub-categories are structured using this classification


which results in clear alignment of this procedure with category management.
7.2

4 July 2016

Technical Alignment and Alerts


7.2.1

Engineering Services shall mandate the alignment of the manufacturing


and technical requirement with company strategy.

7.2.2

Engineering services shall provide all technical alerts to Procurement


and Supply Chain Management.

Revision Summary
New Saudi Aramco Engineering Procedure that facilitates and streamlines the creation,
maintenance, and deactivation of Commodity Material (9COMs).

Page 11 of 17

Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

SAEP-44
Instructions for Commodity Material Management

Appendix A
9COM Creation Controlled by Workflow
9COM CREATION
REQUEST BY USER
TOTAL TIME FRAME:

M&SSD
REVIEWS

NOT APPROVED

13-22 BUSINESS DAYS FOR


INSPECTABLE 9COMS
8-10 BUSINESS DAYS FOR NONINSPECTABLE 9COMS

M&SSD 3 BUSINESS
DAYS
SCC ORGANIZATIONAL
REVIEW

NOT INSPECTABLE

INSPECTABLE?

M&SSD
CREATE 9COM

DESCRIPTION/
SPECIFICATION REVIEW

SCC 5-10 BUSINESS


DAYS

AVAILIABILITY OF
SAMSS/SA 175

M&SSD NOTIFY
SRMD TO LINK
APPLICABLE
SOURCES

NO

DRAFT NEW SAMSS


REQUIRMENT

M&SSD TO FIND
9COM REPLACEMENT

YES
IDCAT LEVEL
NO

SYSTEM
NOTIFICATION
TO ALL USERS

IDCAT-A/B

IDCAT-C
VID 3-7 BUSINESS
DAYS

M&SSD 2 BUSINESS DAYS

SA-175 TO BE
DEVELOPED BY SCC &
UPLOADED BY VID.

M&SSD CREATE 9COM

SYSTEM NOTIFICATION TO
ALL USERS

YES
SAMSS
DEVELOPMENT
COMPLETION

SYSTEM NOTIFICATION
TO MANAGEMENT AND
CUSTOMER OF SAMSS
DEVELOPMENT

EXCLUDED FROM
TIME FRAME

SYSTEM NOTIFICATION
TO ALL USERS TO USE
9COM REPLACEMENT

END

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Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

SAEP-44
Instructions for Commodity Material Management

9COM For New Technology (Mass Deployment)

TECHNOLOGY DEPLOYMENT
9COM REQUEST BY USER

MANAGEMENT 2-3
BUSINESS DAYS

M&SSD 2-3
BUSINESS DAYS

8-13 BUSINESS DAYS TOTAL


TIME FRAME

USERS
MANAGER

M&SSD
REVIEW
NOT APPROVED

SCC 2-3 BUSINESS


DAYS

SCC REVIEW
INSPECTION REQUIREMENT, TEST
CATEGORY, TRAIL & FIELD TEST, PERIOD,
ADDITIONAL REQUIREMENT

CREATION & SYSTEM


NOTIFICATION TO ALL USERS

END

Page 13 of 17

Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

SAEP-44
Instructions for Commodity Material Management

9COM For New Technology (Single Proponent Need)

TECHNOLOGY DEPLOYMENT 9COM


REQUEST BY PLANT PROPONENT
8-13 BUSINESS DAYS TOTAL
TIME FRAME
MANAGEMENT 2-3
BUSINESS DAYS

M&SSD 2-3
BUSINESS DAYS

PLANT PROPONENT
2-3 BUSINESS DAYS

USERS
MANAGER

M&SSD
REVIEW

PLANT PROPONENT REVIEW


INSPECTION REQUIREMENT, TEST
CATEGORY, TRAIL & FIELD TEST, PERIOD,
ADDITIONAL REQUIREMENT

ES/TMD REVIEW &


ENDORSEMENT

CREATION & SYSTEM


NOTIFICATION TO ALL
USERS

NOT APPROVED

END

Page 14 of 17

Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

SAEP-44
Instructions for Commodity Material Management

Appendix B
Inspectable 9COM Description Maintenance

9COM MAINTENANCE
REQUEST BY USER

M&SSD 3 BUSINESS DAYS

SCC 5 BUSINESS DAYS

M&SSD 2 BUSINESS DAYS

10 BUSINESS DAYS TOTAL TIME


FRAME

M&SSD
REVIEWS

SCC ORGANIZATIONAL
REVIEW AND APPROVAL

M&SSD PROCESS REQUEST

NOT APPROVED

VID 3 BUSINESS DAYS

UPDATE IR/QM FOR INSPECTABLE


9COMS AS APPLICABLE
SA-175 TO BE UPDATED BY SCC &
UPLOADED BY BID, IF APPLICABLE

SYSTEM NOTIFICATION TO
ALL USERS

END

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Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

SAEP-44
Instructions for Commodity Material Management

Inspectable 9COM QM Maintenance


9COM QM MAINTENANCE REQUEST
(LIMITED TO TECHNICAL DEPT. OR INSPECTION DEPT.)

SCC 5-10 BUSINESS DAYS

VID 3 BUSINESS DAYS

SCC ORGANIZATION
REVIEW AND APPROVAL

8-13 BUSINESS DAYS TOTAL


TIME FRAME

SA-175 TO BE DEVELOPED BY SCC &


UPLOADED BY VID AS APPLICABLE
NOT APPROVED
REQUEST PROCESSING & SYSTEM
NOTIFICATION TO ALL USERS

END

Page 16 of 17

Document Responsibility: Projects Procurement Department


Issue Date: 4 July 2016
Next Planned Update: 4 July 2019

SAEP-44
Instructions for Commodity Material Management

Appendix C
Inspectable 9COM Deactivation
9COM DEACTIVATION
REQUEST BY USER
8-13 BUSINESS DAYS TOTAL
TIME FRAME

MANAGEMENT 3 BUSINESS DAYS

SCC 5 BUSINESS DAYS

M&SSD 2 BUSINESS DAYS

M&SSD REVIEWS
DEACTIVATION
CRITIERIA

SCC ORGANIZATIONAL
REVIEW AND APPROVAL

M&SSD PROCESS REQUEST

AUTO DELETION TO
SOURCE AND QM FOR
INSPECTABLE 9COMS

NOT APPROVED

SYSTEM NOTIFICATION
TO ALL USERS

END

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