0 AdvisoryU.S. Department of Transportation Federal Aviation Circular Administration Subject: Safety Management Systems for Date: 04/26/2024 AC No: 21-58 Part 21 Type and Production Certificate Holders Initiated By: AIR-630 This advisory circular (AC) provides information for Title 14 of the Code of Federal Regulations (14 CPR) part 21 type and production certificate holders, applicants, and licensees that are developing, implementing, and maintaining a safety management system (SMS) to comply with 14 CPR part 5. Specifically, this AC provides a description of regulatory requirements and guidance for part 5 along with methods for developing and implementing an SMS.
An SMS is an organization-wide, comprehensive, and preventive approach to managing safety.
An SMS includes a safety policy, promotion of a positive safety culture, and formal methods for identifying hazards and mitigating risk. Lastly, an SMS provides assurance of the overall safety perfonnance of your organization. An SMS is intended to be developed by your own people and should be integrated into your existing operations and business decision-making processes. The SMS will assist your organization's leadership, management teams, and employees in making effective and informed safety decisions.
Part 5 specifies a basic set of processes integral to an effective SMS but does not specify particular methods for implementing these processes. In other words, the regulations define what must be accomplished, not how it must be accomplished. This AC provides guidance on how an SMS may be developed to achieve the safety perfonnance objectives outlined by your organization. As is demonstrated by this AC, there is no one-size-fits-all metl1od for complying with the requirements of part 5. This is intentional, in that the Federal A via ti on Administration (FAA) expects you to develop an SMS that works for your unique organization. Thus, this AC provides guidance regarding developing and implementing an SMS that meets the requirements of part 5. These methods, however, are not the only acceptable means of compliance.
If you have suggestions for improving this AC, you may use the Advisory Circular Feedback fom1 at the end of this AC.
Digitally signed by DANIEL J. DANIEL J. ELGAS Date: 2024.04.26 ELGAS 07:07:35 -04'00' Daniel J. Elgas Director, Policy and Standards Division Aircraft Certification Service
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CONTENTS Paragraph Page
Chapter 1. Introduction1-1
1.1 Purpose of This Advisory Circular (AC)1-1
1.2 Integration1-1
1.3 Applicability1-1
1.4 Where You Can Find This AC1-1
1.5 Implementation Strategies1-1
1.6 Contact Information1-2
1.7 Terminology1-2
1.8 AC Feedback Form1-2
Chapter 2. Safety Management System Components Explained2-1
2.1 Overview of This Chapter2-1
2.1.1 Regulatory Text Box2-1
2.1.2 Discussion2-1
2.1.3 Implementation Strategies2-1
2.1.4 Scalability Examples2-1
2.2 Subpart A: General2-2
2.2.1 Discussion2-2
2.2.2 Implementation Strategies2-2
2.2.3 Scalability Examples2-3
2.2.4 Definitions2-4
2.2.5 General Requirements2-5
2.2.6 Part 121, Part 135, or § 91.147 Requirements2-5
2.2.7 Requirements For Production Certificate Holders That Are Holders Or
Licensees Of A Type Certificate For The Same Product2-6
2.2.8 Requirements For Type Certificate Holders Applying For A Production
Certificate For The Same Product2-8
CONTENTS (CONTINUED) Paragraph Page iii
2.2.9 Requirements For Type Certificate Holders That Allow Another Person To Use The Type Certificate To Obtain A Production Certificate
For The Same Product2-9
2.2.10 Organizational System Description2-11
2.2.11 Implementation Plan2-14
Table 2-1. Implementation Plan Example2-16
2.3 Subpart B: Safety Policy2-17
2.3.1 Safety Policy2-17
2.3.2 Safety Accountability and Authority2-20
Table 2-2. Safety Risk Acceptance Authority Example2-21
2.3.3 Designation and Responsibilities of Required Safety Management
Personnel2-22
2.3.4 Coordination of Emergency Response Planning2-24
2.4 Subpart C: Safety Risk Management (SRM)2-25
2.4.1 Applicability: Requirements to Apply Safety Risk Management (SRM)2-25
2.4.2 System Analysis2-26
2.4.3 Safety Risk Analysis2-27
2.4.4 Safety Risk Assessment2-28
Table 2-3. Sample Risk Matrix2-29
2.4.5 Safety Risk Control2-30
2.4.6 Notification of Hazards to Interfacing Persons2-31
Figure 2-1. Hazard Notification Process2-33
2.5 Subpart D: Safety Assurance2-35
2.5.1 Monitoring of Operational Processes2-35
2.5.2 Analysis of Data2-38
2.5.3 Confidential Employee Report Summary Reporting Requirements2-39
2.5.4 Safety Performance Assessment2-40
2.5.5 Continuous Improvement2-41
2.6 Subpart E: Safety Promotion2-43
2.6.1 Competencies and Training2-43
2.6.2 Safety Communication2-44
CONTENTS (CONTINUED) Paragraph Page iv
2.7 Subpart F: SMS Documentation and Recordkeeping2-46
2.7.1 SMS Documentation2-46
2.7.2 SMS Records2-47
Chapter 3. Implementation: Building a Safety Management System (SMS)3-1
3.1 Process Overview3-1
3.1.1 Develop an Organizational System Description3-1
3.1.2 Gap Analysis3-1
3.1.3 Develop and Submit an Implementation Plan3-1
3.1.4 Develop the Policies, Processes and Procedures to Comply with Part 53-1
3.1.5 Implement the SMS3-1
Appendix A. Guidance For Developing A Safety PolicyA-1
Appendix B. Identifying The Accountable ExecutiveB-1
Figure B-1. Accountable Executive Decision ProcessB-2
Figure B-2. Verifying The Accountable ExecutiveB-3
Appendix C. References And Additional InformationC-1
Advisory Circular Feedback
FIGURES Number Page
Figure 2-1. Hazard Notification Process2-33
Figure B-1. Accountable Executive Decision ProcessB-2
Figure B-2. Verifying the Accountable ExecutiveB-3
TABLES Number Page
Table 2-1. Implementation Plan Example2-16
Table 2-2. Safety Risk Acceptance Authority Example2-21
Table 2-3. Sample Risk Matrix2-29
1-1 CHAPTER 1. INTRODUCTION
1.1 Purpose of This Advisory Circular (AC). This AC provides information to assist certain certificate holders under 14 CFR part 21 in developing, implementing, and maintaining a safety management system (SMS) to meet the regulatory requirements of 14 CFR part 5. This AC is not mandatory and does not constitute a regulation. This AC describes an acceptable means, but not the only means, to develop, implement, and maintain an SMS. This guidance is not legally binding and will not be relied upon by the FAA as a separate basis for affirmative enforcement action or other administrative penalty. Conformity with the guidance is voluntary only and nonconformity will not affect rights and obligations under existing statutes and regulations.
1.2 Integration. An SMS is not meant to be a separate system built alongside or on top of your other business systems. An SMS should be integrated into your existing business structure. A properly integrated SMS fosters a fundamental and sustainable change in how you view and analyze data and information, how you make informed decisions, and how you develop new operational and business methods. Development and implementation of an SMS is necessary to comply with part 5 but is not a substitute for compliance with other federal regulations.
Note: It is not the intent or purpose of an SMS to override any existing regulatory standards or alter approval and acceptance processes that already apply to your organization. Your organization must still comply with all other applicable statutes and regulations.
1.3 Applicability. This AC is applicable to part 21 type and production certificate holders, applicants, and licensees that are developing and implementing an SMS to meet the requirements in part 5.
1.4 Where You Can Find This AC. You can find this AC on the Federal Aviation Administration’s (FAA) website at FAA Advisory Circulars or on the FAA Dynamic Regulatory System at FAA DRS.
1.5 Implementation Strategies. Because aviation organizations range widely in size, scope, and complexity, each organization may tailor their SMS policies, methods, and procedures as needed to comply with part 5. This concept is widely referred to as scalability. The organization is free to adjust their means of achieving compliance with all applicable requirements of part 5, but scalability does not allow the organization to set aside sections of part 5. This AC will provide useful considerations and, in some cases, examples of how the organization may integrate new, practical, and effective SMS methods and procedures to complement the complexity of their existing operations and processes while recognizing existing policies, procedures, or methods that may comply with part 5 SMS requirements.
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1.6 Contact Information. For additional information or suggestions, please contact:
Organization and System Policy Branch (AIR-630) Policy and Standards Division Aircraft Certification Service (AIR) Email: 9-AVS-AIR-SMS@faa.gov
1.7 Terminology. Throughout this AC the term “organization” is used and means part 21 type and production certificate holders, applicants, and licensees. For the purpose of this AC and from an SMS perspective they should be considered the same. The term “person” is a legal term defined in 14 CFR part 1 and, in the context of part 5 for this AC, refers to type and production certificate holders, applicants, and licensees.
1.8 AC Feedback Form. For your convenience, an AC feedback form is provided on the last page of this AC. Note any deficiencies found, clarifications needed, or suggested improvements regarding the contents of this AC on the feedback form.
2-1 CHAPTER 2. SAFETY MANAGEMENT SYSTEM COMPONENTS EXPLAINED
2.1 Overview of This Chapter. Safety management system requirements are organized around the four components of safety management. These components are broken down into subparts of part 5 (e.g., Subpart B, Safety Policy). This chapter contains a description of each SMS requirement contained in part 5. After the title of each requirement the following is provided:
2.1.1 Regulatory Text Box. A copy of the part 5 regulatory text for reference which should facilitate the reader’s ability to relate regulatory requirements with explanations without the need to cross-reference additional documents.
2.1.2 Discussion. A more detailed plain language explanation of the process as it relates to the SMS.
2.1.3 Implementation Strategies. Acceptable means of compliance to the applicable part 5 section, including examples.
2.1.4 Scalability Examples. The FAA recognizes that there is a spectrum of complexity within organizations across the aviation product and service provider industry.
Therefore, we have included scalability examples of how your organization can meet the pertinent SMS requirements based upon where your organization may fall on the spectrum of complexity. These examples are intended to serve as general descriptions to guide you in assessing the best approach for your unique organization. The scalability examples demonstrate ways you might choose to implement these requirements based upon where your organization may fall on the spectrum of complexity. The scalability examples are not the only ways the requirements could be met. Ultimately, an SMS should be tailored to meet the needs of your organization.
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2.2 Subpart A: General.
2.2.1 Discussion. Sections 5.1(d) through (g) define the organizations that are required to comply with part 5.
2.2.2 Implementation Strategies.
2.2.2.1 You must comply with part 5 if your organization meets any of the following:
1. Is a holder of a type certificate and a production certificate for the same product [§ 5.1(d)].
2. Is a holder of a production certificate for a product and is a licensee of the type certificate for the same product [§ 5.1(e)].
3. Applies for a production certificate for a product and holds the type certificate for the same product [§ 5.1(f)].
4. Applies for a production certificate for a product and is a licensee of the type certificate for the same product [§ 5.1(f)] § 5.1 Applicability.
This part applies to all of the following:
(a) Any person that holds or applies for a certificate issued under part 119 of this chapter authorizing the person to conduct operations under part 121 of this chapter.
(b) Any person that holds or applies for a certificate issued under part 119 of this chapter authorizing the person to conduct operations under part 135 of this chapter.
(c) Any person that holds or applies for a Letter of Authorization issued under § 91.147 of this chapter.
(d) Any person that holds both a type certificate and a production certificate issued under part 21 of this chapter for the same product.
(e) Any person that holds a production certificate issued under part 21 of this chapter for a product for which the person is a licensee of the type certificate for the same product.
(f) Any person that applies for a production certificate under part 21 of this chapter for a product for which the person is the holder or licensee of the type certificate for the same product.
(g) Any person that holds a type certificate issued under part 21 of this chapter for a product, except for persons that hold only type certificates issued under § 21.29 of this chapter, that allows another person to use the type certificate to manufacture the same product under a production certificate.
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5. Is a holder of a type certificate for a product (other than type certificates issued under § 21.29) that the organization is licensing to allow another person to obtain a production certificate to manufacture the same product [§ 5.1(g)]. The term “production certificate” in § 5.1(g) includes a production certificate issued by the FAA under part 21 or a production certificate or equivalent authorization issued by a foreign civil aviation authority.
Note: Part 5 applicability is intended for entities involved in the design and manufacturing of products (aircraft, aircraft engine, or propeller).
2.2.2.2 Meeting one or more of the following does not trigger the requirement for an organization to comply with part 5:
1. Is a holder of a production certificate that does not approve production of a complete product. For example, a production certificate issued for “articles or parts only.”
2. Is a holder of a type certificate for a product that is not produced. For example, a type certificate where there is no associated production certificate, including a foreign production certificate or equivalent authorization.
3. Is a holder of a supplemental type certificate.
4. Is a holder of a production certificate issued for a supplemental type certificate.
5. Is a holder of a supplemental type certificate that is licensed to another person to obtain a production certificate.
6. Is a holder of a parts manufacturer approval.
7. Is a holder of a technical standard order authorization.
8. Is a holder of a type certificate issued under § 21.29 that produces a product in the United States under an extension of a foreign production approval.
9. Is a holder of a type certificate issued under § 21.29 that is licensed to another person to obtain a production certificate.
2.2.3 Scalability Examples. Not applicable.
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2.2.4 Definitions.
2.2.4.1 Discussion. Section 5.3 provides definitions used throughout part 5.
2.2.4.2 Implementation Strategies. Not applicable.
2.2.4.3 Scalability Examples. Not applicable.
§ 5.3 Definitions.
• Hazard means a condition or an object that could foreseeably cause or contribute to an incident or aircraft accident, as defined in 49 CFR 830.2.
• Risk means the composite of predicted severity and likelihood of the potential effect of a hazard.
• Risk control means a means to reduce or eliminate the effects of hazards.
• Safety assurance means processes within the SMS that function systematically to ensure the performance and effectiveness of safety risk controls and that the organization meets or exceeds its safety objectives through the collection, analysis, and assessment of information.
• Safety Management System (SMS) means the formal, top-down, organization-wide approach to managing safety risk and assuring the effectiveness of safety risk controls.
It includes systematic procedures, practices, and policies for the management of safety risk.
• Safety objective means a measurable goal or desirable outcome related to safety.
• Safety performance means realized or actual safety accomplishment relative to the organization's safety objectives.
• Safety policy means the person’s documented commitment to safety, which defines its safety objectives and the accountabilities and responsibilities of its employees in regard to safety.
• Safety promotion means a combination of training and communication of safety information to support the implementation and operation of an SMS in an organization.
• Safety Risk Management means a process within the SMS composed of describing the system, identifying the hazards, and analyzing, assessing, and controlling risk.
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2.2.5 General Requirements.
2.2.5.1 Discussion. Section 5.5 requires an SMS to be scaled to fit the organization, include all four SMS components, and be maintained.
2.2.5.2 Implementation Strategies.
2.2.5.2.1 Your SMS must be scaled to the size, scope, and complexity of your organization and include the four SMS components [§ 5.5(a)]. This means that your SMS can be scaled in a way that works for your organization.
Note that scalability allows flexibility to match the SMS to your organization but does not alleviate the requirement to meet all applicable sections of part 5. Scalability examples are provided throughout this chapter to assist with your SMS implementation.
2.2.5.2.2 You must maintain your SMS [§ 5.5(b)]. Maintaining an SMS means that your SMS processes and procedures, documentation (e.g., organizational system description, policies, procedures), and records (e.g., safety risk management, safety assurance, training) are accurate and kept current.
2.2.5.3 Scalability Examples. Not applicable.
2.2.6 Part 121, Part 135, or § 91.147 Requirements.
§ 5.5 General Requirements.
(a) SMS components. An SMS under this part must be appropriate to the size, scope, and complexity of the person’s organization and include, at a minimum, all of the following components:
(1) Safety policy that meets the requirements of subpart B of this part.
(2) Safety risk management that meets the requirements of subpart C of this part.
(3) Safety assurance that meets the requirements of subpart D of this part.
(4) Safety promotion that meets the requirements of subpart E of this part.
(b) Continuing requirements. Any person required to develop and implement an SMS under this part must maintain the SMS in accordance with this part.
§ 5.7 Requirements for domestic, flag, and supplemental operations.
§ 5.9 Requirements for commuter and on-demand operations or passenger carrying flights for compensation or hire.
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2.2.6.1 Discussion. Sections 5.7 and 5.9 are not applicable to part 21 type and production certificate holders. See AC 120-92 for information pertinent to certificate holders under parts 121, 135, and Letters of Authorization (LOA) holders under § 91.147. Entities operating under one or more of these parts that are also type certificate or production certificate holders or licensees must meet all part 5 requirements applicable to every certificate or LOA held.
2.2.6.2 Implementation Strategies. Not applicable.
2.2.6.3 Scalability Examples. Not applicable.
2.2.7 Requirements For Production Certificate Holders That Are Holders Or Licensees Of A Type Certificate For The Same Product.
2.2.7.1 Discussion. Section 5.11 provides the steps required to develop, implement, and maintain an SMS for holders of a production certificate for a product that hold or are a licensee of a type certificate for the same product.
§ 5.11 Requirements for production certificate holders that are holders or licensees of a type certificate for the same product.
Any person that holds a production certificate issued under part 21 of this chapter for a product for which the person is the holder or licensee of the type certificate for the same product on or before May 28, 2024, must:
(a) Develop and maintain an organizational system description in accordance with § 5.17 of this subpart.
(b) Submit an implementation plan in accordance with § 5.19 of this subpart for FAA approval in a form and manner acceptable to the Administrator no later than November 28, 2024.
(c) Develop an SMS that meets the requirements of this part.
(d) Implement the SMS in accordance with this part no later than May 28, 2027.
(e) Make available to the Administrator, upon request, all necessary information and data that demonstrates that the person has an SMS that meets the requirements set forth in this part.
(f) Maintain the SMS as long as the person is both a holder of a production certificate and a holder or licensee of a type certificate for the same product.