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IMPLEMENTING AN EHS & QUALITYMANAGEMENT SYSTEM FOR ISO 9002/14001

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Agenda: Dual ISO 9002 & 14001 Certification

Where - Qatar Who - Qatargas What - Dual ISO 9002 & 14001

Certification How - Continuous Improvement Lessons Learned

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MIDDLE EAST COUNTRIES

SYRIA

EGYPT

IRAQ

SAUDI ARABIA

IRAN

KUWAIT

OMAN

YEMEN

STATE OF QATARSTATE OF QATAR

BAHRAIN

U.A.E.

STATE OF QATAR

RAS LAFFAN

UMM SAID

DOHA

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M bilom

Marubeni MITSUI & CO. LTD.TOTAL

Qatar Liquefied Gas Company Limited

QATARGASQATARGAS PRIMARY BUSINESS LNG PRODUCTION

BECAME A DYNAMIC ENTITY 1992

RAPIDLY EXPANDING START-UP COMPANY 1993 - LESS THAN 20 EMPLOYEES

1994 - LESS THAN 100 EMPLOYEES

1996 - APPROXIMATELY 650 EMPLOYEES

1998 - OVER 800 EMPLOYEES + 800 CONTRACTORS

OVER 30 DIFFERENT NATIONALITIES

STARTED PRODUCTION IN NOVEMBER 1996

FIRST CARGO TO JAPAN IN DECEMBER 1996

TOTAL END TO END INVESTMENT $14 BILLION

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82 Km - 32" pipeline

RAS LAFFAN

LivingQuartersPlatform

Platform 2

Flare

Wellhead Platform 1

BSP1

BSP2

Wellhead

Process Platform - PR

Wellhead Platform 3

3rd Train Offshore Facilities

6 Km - 20" Trunkline

UPSTREAM DEVELOPMENT OFFSHORE FACILITIES 2 TRAINS & 3rd TRAIN

Process & Utilities Platform - PU

PR - WH3 Submarine Power & Fibre Optic

Communications Cable

QATARGAS - OFFSHOREQATARGAS - OFFSHORE

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Gas PipelineGas Liquid PipelineOil Lines

STATE OF QATAR

RAS LAFFAN

UMM SAID

DOHADUKHAN

HALULMAYDAN MAHZAM

EDD EL SHARGI

BUL HANINE

NFA

QG

PT.B

GAS

QATARGAS - OFFSHOREQATARGAS - OFFSHORE

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What is Continuous Improvement?

The ongoing process to systematically improve Systems, Processes, Activities and Practices

Embodied in the Deming Model of

PLAN - DO - CHECK - ACT

PLAN

DO

ACT

CONTINUOUS IMPROVEMENT

CHECK

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Continuous Improvement at Qatargas

Promoted thru the acronym QMSI:

QATARGAS MANAGEMENT SYSTEM

FOR CONTINUOUS IMPROVEMENT

QMSI - Qatargas strategy and methodology to achieve Continuous Improvement

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What is a Management System?

What an organization does to manage its

processes and activities

Includes policies, procedures, guidelines,

organization charts, job descriptions, etc.

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QMSI Objectives

Thru Continuous Improvement:

Establish a Unified Management System

Provide Consistent and Concise Policies,

Procedures & Instructions

Comply with Statutory Requirements

Meet or Exceed Customer Expectations

Meet Shareholder, Employee, Contractor,

Community & Government Expectations

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History: Significant Qatargas Milestones

Apr 98 - QMSI Initiated

Sep 98 - PROSPER Baseline audit

post Sep 98 - QMSI Implementation (Gap analysis)

May 99 - HESQ Policy Revised

Jun 99 - Internal Auditor Training

Dec 99 - Internal PROSPER Audit

Feb 00 - Improvement Suggestion System

Feb 00 - Corporate Direction Statement Approved

Apr 00 - ISO 9002/14001 “test-audit” by DNV

Jun 00 - Then, ISO certification audit by ABS

Jul 00 - Qatargas awarded ISO 9002 & 14001 certifications

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Continuous Improvement

From an HESQ Perspective Management System Standards

Rating Tool for Baseline Audit

Follow-on ISO Compliance Audits

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HESQ Management System Standards & Rating Tools

Standards (Checklists) against which we measure our Management System

Several Management System rating tools available

Audits and certification

Provide the means to progressively measure level of improvement

Qatargas selected DNV PROSPER

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WHY PROSPER?

An existing integrated HESQ Management System Standard & Rating Tool

PROSPER*

ISO 9002

British StandardsIQRS*

ISRS*

IERS*ISO 18001 ISO 14001

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PROSPER & QMSI

Framework for HESQ Management System 17 elements divided into 110 sub-elements HESQ Management System rating (Audit) tool 10 award levels September 1998 Qatargas at Award Level 2 Award Level 4 equal to Dual Certification Qatargas presently at Award Level 7

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CHANGING ROLE OF PROSPER

PROSPER - Initially a Tool to Help Construct and Strengthen Elements of the Qatargas HESQ Management System

PROSPER - Now a Tool to Measure, Police & Protect HESQ Goals & Objectives

police

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ISO & QMSI

Dual Certification - a significant milestone

QMSI did not stop at certification!

Retain certification by re-assessment

(compliance audits every 6 months)

ISO - International Organization for Standardization

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HESQ Management - Misconceptions

Each makes a significant contribution, but real improvement involves more

Policies & ProcedurePolicies & Procedure

A Product QualitySystem

A Product QualitySystem

Business Process Modeling

Business Process Modeling

Team BuildingTeam Building

ISO Certification

ISO Certification

Non-conformities& observations Non-conformities& observations

The Business PlanThe Business Plan

Owned by Management

Owned by Management

HESQ Department Program

HESQ Department Program

UnnecessaryWork

UnnecessaryWork

Not Just

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HESQ Continuous Improvement Implementation

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The benefits of HESQ Continuous Improvement are many . . .

Streamlined work processes with every action adding value

Employees who know their roles in the organization

Clear and open communications

Safe and environmentally sound workplace

Opportunity to receive recognition for a job well done and to be rewarded accordingly

Benefits to employees, contractors, customers, shareholders, suppliers, community and country

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How Does Continuous Improvement Affect the Organization?

Every employee & contractor is involved - they

must help make it happen

All work processes are inter-linked

Use Vendor & Supplier feed back in the Continuous

Improvement process

Teamwork

“We want everyone to feel that they can be all that they want to be; that their ideas are welcome and that they are part of the Qatargas family.”

- Pioneer April’00

“We want everyone to feel that they can be all that they want to be; that their ideas are welcome and that they are part of the Qatargas family.”

- Pioneer April’00

Continuous Improvement is mutually inclusive

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Lessons Learned from ISO Implementation

Select appropriate Management System ProtocolCategorize Protocol sub-elements into ISO/ Non-ISO critical

Conduct baseline audit & identify gaps

Ensure “Company Action Plan” reflects ISO - Critical tasks

Develop & Implement Requisite Documents and Standards (e.g., Policies, Procedures,

Instructions, Forms, Record keeping) Implement Internal Auditor and Non-Conformity Procedures/Training/Audit System ASAP

Use “Cross-Functional” Support Team role

Develop Key Performance Indicators (Metrics)

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Align EMS (Environmental Management System) with ISO 14001 standard & train personnel

Internal Audit & ISO Test Audit were invaluable Cascade Corporate Objectives down to individual employee “Publicize” to all:

Implement a Management System “Orientation” courseConduct perception surveys company-wideIssue special company newslettersWrite monthly articles for company newslettersEstablish a web site

Lessons Learned from ISO Implementation

Don’t over-rely on written communications; use workshops & other training courses

25*Onshore & Offshore (Plant & NFB)

Develop Key Performance Indicators

Lessons Learned - Minimum HESQ Management System Requirements

QMSI Manual

Management Review

Management Systems Audit

Non-Conformitiesand Observations

Improvement Suggestions

Mgt. HESQ Comm.

Mgt. of Change

HESQ Handbook*

Contractor HESQ Evaluation

Fire System: ITM Program

Env. Mgt. System

Env. Monitoring & Reporting*

Register Env. Aspects & Impacts

Air Emissions Inventory

Waste Mgt. Plan

Quality Safety/Health Environment

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Performed every 6 months

Probably new non-conformities identified

Corrective Action Plan developed

Verification of Corrective Action Plan implementation

Certification body typically focuses on weak areas

Lessons Learned - ISO Surveillance Audits

Bottom Line: ISO process requires surveillance audits every six months and typically are 2-4 days in length, performed by 2 surveyors. Minimal preparation time is expected.

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Qatargas must comply with new standard by 2003

Align QMS (Quality Management System) with ISO 9000 standard

What is involved More customer focus, including metrics for customer appraisal system

More Business Process Modelling

More Senior Management Involvement

A Word About New ISO 9000/2000

Bottom Line: ISO 9000/2000 addresses product QC/Service conformity and need for an organization to demonstrate capability to achieve customers satisfaction.

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Continuous Improvement Is . . .

Owned by all Employees and Contractors, not just Management.

About creating the right culture that:

– accepts improvement and change; – encourages employees to adopt continuous improvement

A means to fully utilize the strengths and ideas of your employees and contractors to work better as a team.

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Summary: Continuous Improvement is a Two-Way Street!

Direction Statement

Business Plan Strategy

Corporate Objectives

Department Objectives

Individual Objectives Individual Initiatives