Hi Weeds,
If you look at the checklist above, everything above the dotted line are what’s called ‘memory items’. They must be performed from memory by the crew without reference to the QRH. There are quite a few of these checklists on the 737. Checklists that must be done from memory are that way because they are flight safety critical and need to be completed in a timely manner. The ‘Engine Fire or Engine Severe Damage or Separation’ checklist is another.
Once the memory items are done (and any other necessary tasks completed) we go back and do the whole checklist from the beginning for 2 reasons: 1. To confirm all the memory items are complete, and 2. to complete the reference items below the dotted line, which contain info of a less urgent nature, such as performance effects of the failure, and effects on the remainder of the flight, such as other systems degraded by the malfunction, and other relevant data. In this case, you stay in this checklist until landing. In other checklists, you might finish it and go back to the normal checklists for the remainder of the flight. It just depends on what the failure is.
Below is an example of running 2 checklists in the B777. The crew deal with an engine fire (all from memory). They only do the memory items of the first checklist as they are unable to extinguish the fire (more important to get the folks off than running through the reference items, which have no effect).
They then run the Evacuation Checklist (read and do - no memory items).
The scenario is similar on all Boeing jets.
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