LOBJECTION

QA / QC

IN OIL & GAS projectsENJEUX & OUTILS

1ORIGIN OF NON QUALITYORGANISATIONLOGISTICSPROCUREMENTBREAKDOWN RATEDEFAULTSPLANNING

OPERATORPOOR ATTENTIONLACK OF TRAINING

70 80 %20 30 %2Quality Basis

by paying attention totheir qualificationsby a periodic and systematic approch by looking to their performances

QA/QC WHY ?

The objective of implementing a quality assurance approach for work done by suppliers / contractors / vendors is to:ensure that the equipment or service supplied complies with specification or contract requirements.reinforce the Contractor's awareness to his responsibility for the workminimise Company's involvement and hence Company's costsminimise delays to schedule caused by the use of excessive Hold pointsproduce evidence of compliance (the 'audit trail') and measure Contractor/Supplier performance.

Purpose

The purpose of this procedure is to specify the Company's minimum requirements for Quality Assurance/Quality control during design, procurement and construction phase of HelM facilities.

5Scope

This procedure presents the Sarost's minimum requirements for QA/QC in all Contracts and Purchase Orders with their nominated Suppliers (Consultants, Contractors and Vendors).

The requirements are based on the use of the ISO 9000 Series of Quality Management and Quality Assurance Standards.

6NOW LETS SEE MNT HAS EVOLVED OVER TIME.Scope

This procedure forms a part of the Contract or Purchase Orders. Contract Quality Plan and Quality Control Plan Guidelines, offers Suppliers (Consultants, Contractors and Vendors) guidelines on the contents and development of a Contract Quality Plan and Quality Control Plan that will meet the requirements of this procedure.

A system or equipment item will be critical if it safeguards the integrity of the facility or impacts upon its ability to meet performance objectives.

An activity can be critical by reason of its importance to the success of the project or through risks associated with it.

QA/QC for Critical activities / Equipments

Quality Assurance of Design

List of all the types of deliverable produced by the design contractor.

Identify which deliverables requires Sarost review / approval to ensure the technical integrity of the design.

Design QA Plan

Project Engineer shall prepare and approve authorisation matrix defining the required technical authorisation (TA) level for each type of project documents for review and approval.

The Design Deliverables Matrix The matrix specifies the discipline TA approval required for each deliverable depending on the criticality level.

A default criticality has been assigned to each deliverables.

DELIVERABLE REVIEW LEVELSTechnical Autorisation LevelsLevel 1Corporate Functional Discipline Head. Sets the boundaries wherein the discipline operates.

Level 2Experienced Professional. Can handle himself without outside support in almost all discipline situations.

Level 3Engineer with specialised but yet incomplete skills in one or more areas of the discipline.

Design QA PlanThe design contractor produces and verifies the deliverables according to its own ISO 9001 approved QA system before issuing to the Sarost engineer.

The deliverable(s) is then issued to the Sarost engineer who is responsible for obtaining the correct level of review and approval in accordance with the approved design QA plan.

Once the necessary approvals have been obtained the Sarost engineer returns the deliverable(s) back to the design contractor.

Process flowchart for design deliverables is shown in Appendix 3.

Process flowchart for design deliverables(Same as PQP)

Deliverable Criticality Rating

Quality SystemThe Supplier (Consultant, Contractor, Manufacturer and Vendor) shall implement and use a Quality System that complies with the appropriate Standard from the ISO 9000 Series, (latest edition), as listed below, and the requirements of this procedure. ISO 9001: Quality Systems - Model for quality assurance in design development, production, installation and servicing.orISO 9002 :Quality Systems - Model for quality assurance in production, installation and servicing.The Standard shall be selected to cover all work activities (consultancy, project management, procurement, construction, and provision of goods, products or services), associated with the Contract or Purchase Order.

16CONDITIONAL PROBABILITY OF FAILURE:-THIS ASSUMES THAT WHEN A PIECE OF EQUIPMENT IS NEW IT WILL NOT FAIL FROM NEW BUT WILL REACH A POINT WHERE IT WILL START TO WEAR OUT.

BUT AS ENGS WILL INCLUDE A COMFORTABLE FACTOR OF SAFETY WHICH REDUCES THE USEFUL LIFE SPAN,Q? HOW CAN YOU MAXIMISE THE USEFUL LIFE: CONDITION MONITORING.TYRE EXAMPLE:-Where the Contract includes design work, ISO 9001 shall be used.

Where the Contract is purely for production, construction, installation, commissioning and hand over, then ISO 9002 shall be used.Quality System

Elements of a Quality Management System

The term Process Control in ISO 9000, shall be considered to embrace all work activities from Tendering and Contract Award to Completion of the Contract.

Activities such as; Contract Management, Cost Control, Planning and Scheduling, Progress Measurement, Reporting, 'As Built' Documentation etc. shall have properly documented Procedures or Work Instructions. Quality System

Quality System

Suppliers in selected Work Categories may be required to attain Third Party Registration of their Quality System.

Work Categories required to attain registration will be informed by the project Manager.

20Quality SystemWhere Suppliers are not required to attain Third Party Registration, they shall demonstrate that they have a Quality System that complies with ISO 9001 or 9002, as appropriate for the contract or purchase order scope.Quality Management during tender processDocuments to be Submitted

23Quality system documentation

QA/QC Procedure Organisational StructureSubject to Approval byCompany andSarost

Office basedSite basedFull orpart time ?

Mobilisation Dates ?

quality system shall embody for design, production and distributionquality system shall embody for design, production and distributionDocuments to be Submitted with the tender

If not availableDocuments to be Submitted Within 14 Days of Contract Award Quality ManualContract Quality Plan (CQP)Control Quality Plan3.Identify all work activities and sub-activities, including those performed by Sub-Contractors, to be controlled by the CQP.

4.Detailed methodology how quality system and work performed by Sub-Contractor shall be monitored and controlled by the Supplier.

5. Details of how Quality Planning shall be undertaken and controlled.

Construction Checks

Construction Checks

Quality Control Plan (Test and Inspection Plan) - Typical Format

Quality Control Plan - Typical Example for Hydro Testing

Service Contract Work Orders

Indicate how the Contract Quality Plan and specific Quality Assurance requirements will be applied to individual Work Orders issued under a Service Contract. This may be in the form of a Project Quality Plan, developed from the Contract Quality Plan.

Service Contract Extra Work Orders

Subject to Company & SarostsApproval before workstartsApplicable Procedures, Work Instruction & Checklists

QUALITY CONTROL What is Quality Control ?

Quality Control is a process to measure and analyze project results from specific operational activities using specialized operational monitoring and verification tools and techniques to determine if the results in compliance to established quality standards or requirement.

This process shall also include identification and elimination of nonconforming products and identifying ways to eliminate the causes of non-conformances.

The quality control activities shall include the following:

Conduct general surveillance on engineering deliverables Conduct required inspection at SUPPLIERs manufacturing/fabrication facilities

Lead specific data analysis works for quality improvement Conduct third party inspection verification Conduct general surveillance on construction and commissioning activities Witness and approve Welding Procedure / Welder qualification Witness and approve validation other special construction and commissioning work processes Monitor construction process traceability Monitor punch list program Conduct verification on mechanical completion and commissioningcompletion readiness Lead specific data analysis works for quality improvement Final DocumentationQuality Control Plan shall include *Specified Acceptance / Rejection Criteria*List of Activities and Sub-Activities requiring Quality Control and or stage inspection.

*Hold, Witness, Surveillance, Monitoring and Review points *When Third Party Inspection (TPI) is a Contract requirement, the QCP(s) and Quality document(s) shall also be reviewed and endorsed by the nominated TPI Agency.*Sub-Contractor(s) QCP(s) and quality document(s) shall be reviewed and endorsed by Contractor, before submitting for Company approval. *Inspection &Test PlansQC Inspectors (Location Site Office)The QC inspector shall operate independent of the personnel performingthe work and report to the QA/QC Engineer for the Contract. He shall beresponsible for: Surveillance of all specified construction activities as per inspectionplan, specifications and codes. Witnessing all checks/ tests, as per ITP and interpretation of results. Reporting of non-conformance to QA/QC Engineer. Preparation of inspection reports and compilation of test packs.2.7Qualifications and Duties of The Suppliers Quality Assurance, Inspection (Quality Control) and Verification Personnel.2.7.1Corporate Quality Assurance Manager2.7.2Quality Assurance Engineer2.7.3Quality Control Inspector - Multi-Discipline (Welding, Painting, NDE)2.7.4QC Inspectors - Civil and Structural2.7.5Q C Inspectors Instrumentation

2.8Quality Assurance Auditing2.9Purchasing2.10Inspection, Measuring and Test Equipment2.11Third Party Certification

2.12Pressure Vessels2.12.1Vessels Manufactured Outside Tunisia2.12.2 Vessels Manufactured in Tunisia2.13 Static Equipment2.14Quality System Certification2.15 Legal Authorizations

Acceptance / Rejection CriteriaThe following Statistical Indicators are controlled:- Improvement Indicator:I (ii) = Non Conformities closed at Target date > 1 Non Conformities that should have been closed at Target date- Percentage of welding repairI (wr) = (Measured in Inches) repaired welds < 0.3 % (Total inches) welds - Percentage of steel reworkI (cr) = (Measured in Kg) reworked/defected steel < 0.1 % (Total in Kg) installed steel structure

Quality Records

Internal Audit Schedule48Audit ScheduleThird Party Certification

Where Third Party Certification is required in the Scope of Work, include details of the Third Party Certification Authority.Include details of the services they will provide to the Supplier, in the form of a draft Sub-Contractors Quality Plan.Provide details of the personnel they will employ on the Contract.

Third Party Certification

*Monitoring, surveillance, inspection, witnessingand acceptance testing to be carried out by the Third Party Certification Authority.

*Include Curriculum Vitae of all personnel for approval by Sarost.

GENERAL QUALITY ASSURANCE PROVISIONSScopeApplicable DocumentsOrder of PrecedenceContractor RequirementsInspection ProvisionsIn-Process ControlQuality Conformance InspectionNonconforming MaterialManufacturing ProcessesInspection RecordsCertificationsIdentification and Traceability Protective Finishes and CoatingsLatent Material DefectInspection MethodsInspection and Test EquipmentTest MethodsCorrosion Prevention and ControlScrew ThreadsGENERAL QUALITY ASSURANCE PROVISIONSWelding TorqueFit Testing of Covers and CasesSoldering & BrazingElectrical Tests for Electrical / Electronic AssembliesTensile TestCharpy Impact TestMacro-Etch ExaminationHardness Test Case Hardness DepthStakingRivetingPackaging InspectionMarking InspectionNondestructive TestingMagnetic Particle InspectionRadiographic Sample PlanFirst Article RequirementsSpecial Process Procedure

Quality Management during the Contract

Quality Management during the Contract

Quality Assurance, Inspection (Quality Control) and Verification Personnel

Notes:The above numbers exclude any personnel employed either by the Supplier or Company from a Third Party Certification Authority.

Numbers specified in the above Table do not include Corporate QA Personnel.Qualifications and Duties of the Suppliers Quality Assurance, Inspection (Quality Control) and Verification Personnel

Supplier's all QA, Inspection (Quality Control) and Verification personnel shall be subject to Company approval prior to mobilisation on Contract and to site. The duties of the Quality Assurance, Inspection and Verification personnel shall include, but not be limited to the following activities:

Corporate Quality Assurance Manager

Note: For Design Consultancy contracts, the candidate shall have appropriate technical qualifications on above lines and possess same number of years of relevant experience as per serial 3 above in the design organisation involved in oil and gas offshore facility design.QUALITY & RISK59 QUALITEImpose une dmarche globaleRegroupe autour des CINQ ZERO OLYMPIQUES

Le ZERO DEFAUTLe ZERO DELAI Le ZERO STOCK Le ZERO PAPIERLe ZERO PANNE60La Rgle 20 / 80

milestonesRetards de plus de 15 jours80 %20 %61EXERCICELISTER LES 20 % des MILESTONES QUI SELON VOUZ SONT A LORIGINE DES 80% Des RETARDS SUR LE PLANNING.62

QUALITY

Good63ONE in THREE CHANCES to SUCCEED !!!Source : PMI

RISK MANAGEMENT STANDARDIt is assumed that the reader is fully acquainted with the contents of the Risk Management Principles that support the Standard. The start of Risk Management for a project should be done in conjunction with the production of the Project Statement as part of the Definition Phase of the Systems Development Life Cycle (SDLC). Project risks should be recorded in the Risks, Assumptions and Constraints paragraph of the Project Statement.There are two stages in the process of Project Risk Management. They are: Risk Assessment; andRisk Control.

RISK ASSESSMENT

There are three steps to be performed in the completion of Risk Assessment.1. Identify Review all the project plans and identify areas of uncertainty 2. Analyze Define how the identified areas of uncertainty could affect the performance and success of the project in terms of scope, quality, duration and cost. 3.Prioritize Prioritize each risk to determine the amount of action or effort required.

RISK ASSESSMENT

The proposed Ship Recycle Plan adopts the following processes across the various recycle stages:

Identify Assess Mitigate Manage

AnalyzeRisk Analysis is performed by categorizing all the identified risks according to the likelihood of their occurrence and the impact that they will have on the project. Use the matrix below to assist in the Risk Analysis. This will also assist with the Prioritization of the Risks.

AnalyzeLIKELOOD OF OCCURENCEThe High or Low likelihood of a risk occurring is to be determined by the Vendor Project Manager andappropriate project team members and rated accordingly. Record this determination and provide a comment describing the rating Likelihood of Occurrence. PROJECT IMPACTRate each risk High or Low according to the impact that it will have on the project. Record the overall Impact Rating and provide a comment to further describe this rating to the project. Also record (as appropriate) additional Impact Rating comments in terms of scope, quality, time and/or budget.Update the Risk Definition Form with the appropriate ratings and comment(s) relating to the Analysis performed

PrioritizeEach risk must be Prioritized for action by the project team as follows:

RISK CONTROL

CONCEPT DEVELOPMENT SELECTION

CONCEPT DEVELOPMENT SELECTION

Assessing the risks three categories

Management Check-list

Environmental Risks

Sub Sea bad surprises !!

Main actors in oil drilling and shipping processes

ProcurementProcurement Strategies Development and ImplementationCall for Tenders launch and follow-up Bid evaluation Negotiation of contractsExpeditingContract ManagementContractual Strategy Definition and Implementation Claims preparation (EOT, Variations and Disruption) Subcontract AdministrationQuantity SurveyingSubcontracts Close-outCost ControlIdentification, Recording, Tracking and Allocation of all expenses according to Cost Breakdown Structure (CBS)Cost Control Procedures Implementation Budget Preparation and Follow-up Cash Flow ForecastingChange Orders Management

Planning

Breakdown Structures set-up (WBS, OBS, RBS and CBS)Resource ManagementScheduling (CPM, PERT,...)Physical progress follow-upShutdown PlanningReportingCost EstimatingAnalogous Cost Estimating (Top-Down)Parametric modeling (Capacity-Factored, Equipment-Factored,...) Detailled Cost Estimating (Bottom-up) CapitalizationQuality ManagementProject Quality Plan set-upQuality AssuranceQuality Control InspectionDocument ControlEstablish and Maintain Document Control proceduresRisk MangementRisk Management Plan set-upRisk Identification, Assesment and Mitigation