What are included in the bulk materials and what is the definition of engineering approval?

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For #1, see appendix F in the 3rd Ed. of the PPAP manual. For #2 - I don't know if this is a trick question, but I'm guessing that at any point where "engineering" has to "sign off" to indicate approval of any new or changed part and/or process, which is part of the bulk material PPAP approval process. See para I.2.2.3 of the PPAP Manual for a futher explanation.