CP-190 - Quality Management System for Project Delivery

Petroleum Development Oman L.L.C.

Document title: Quality Management System for Project Delivery - Code of Practice.

Document ID CP-190

Document Type Code of Practice

Security Unrestricted

Discipline Quality Management

Owner CFDH Quality Management

Issue Date 06 Aug 2014

Version 2

Petroleum Development Oman LLC Version 2.0Effective: Sep -14

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Page 2 CP-190: Quality Management System for Project Delivery Printed 03/05/23

The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED.

Keywords: This document is the property of Petroleum Development Oman, LLC. Neither the whole nor any part of this document may be disclosed to others or reproduced, stored in a retrieval system, or transmitted in any form by any means (electronic, mechanical, reprographic recording or otherwise) without prior written consent of the owner.


i Document AuthorisationAuthorised For Issue – August 2014




ii Revision HistoryThe following table lists the four most recent revisions to this document. Details of all revisions prior to these are held on file by the issuing department.

Version No. Date Author Checked Scope / Remarks

1.0 Sep. 09 UEQ UEOD First Issue

2.0 Aug. 14 UEQ UEOD Format revised, Quality Road Map added, FELT Review Comments incorporated.

iii Related Business Processes

Code Business Process

ORP Opportunity Realisation Process

iv Related Corporate Management Framework (CMF) DocumentsThe related CMF Documents can be retrieved from the CMF Document Control.

Doc. ID Document TitlePolicy PL-15 Quality Management PolicyCode of PracticeCP-117 Project Engineering Code of Practice CP-114 Maintenance & Integrity Management Code of PracticeCP-180 Recruitment Code of PracticeCP-131 Risk and Opportunity ManagementCP-129 Contracting and Procurement - CoPCP-142 Audits and Reviews Code of PracticeSpecificationSP-2061 Engineering and Operations Technical Authority SystemSP-1122 Specification for Project Quality PlanSP-1171 Specification for Quality Management System for Product and ServiceSP-2065 Document Management for Projects



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ProcedurePR-1247 Project Management of Change ProcedurePR-1029 Competency Assessment and AssurancePR-1568 Corporate Document Management ProcedurePR-1233 Contract & Procurement ProcedurePR-1866 Quality Audit ProcedurePR-2052 Project Quality Management system ReviewPR-2053 Control of Non-Conforming Product ProcedurePR-2066 Managing Deviations from Standards and ProceduresGuideline GU-611 PDO Guide to Engineering Standards and ProceduresGU-711 Model Project Quality Plan

v Related International Standards

ISO9000 Quality Management System – Fundamentals and Vocabulary

ISO9001 Quality Management System – Requirements

ISO9004 Managing for the sustained success of an organization —

A quality management approach

ISO10005 Quality Management Systems – Guidelines for Quality Plans

ISO10006 Quality Management Systems – Guidelines for quality management in projects

ISO10015 Quality Management – Guidelines for Training

ISO19011 Guidelines for Auditing Management Systems

ISO/TS 29001 Quality Management Systems – requirements for the design, development, production, installation and service of products for the petroleum, petrochemical and natural gas industries

ISO/TR 10013 Guideline for quality management system documentation




TABLE OF CONTENTSi Document Authorisation........................................................................................................3

ii Revision History.................................................................................................................... 4

iii Related Business Processes.................................................................................................4

iv Related Corporate Management Framework (CMF) Documents..........................................4

v Related International Standards............................................................................................5

1 Introduction........................................................................................................................... 8

1.1 Background.....................................................................................................................8

1.2 Purpose........................................................................................................................... 8

1.3 Scope.............................................................................................................................. 9

1.4 Objective.......................................................................................................................... 9

1.5 Distribution/Target Audience...........................................................................................9

1.6 Review and Improvement..............................................................................................10

1.7 Step-out and Approval...................................................................................................10

1.8 Terminology, Definitions and Abbreviations...................................................................10

Term / Abbreviation.................................................................................................................... 10

Definition (or meaning for the purpose of this document)...........................................................10

2 Managing Project Quality....................................................................................................13

2.1 Quality Policy................................................................................................................. 13

2.1.1 PDO Corporate Quality Management Policy PL-15................................................13

2.2 Management Responsibility...........................................................................................14

2.3 Roles and Responsibilities.............................................................................................15

2.3.1 Head of Quality UEQ..............................................................................................15

2.3.2 Business Opportunity Manager (BOM) / Project Manager or Engineer (PM / PE). .15

2.3.3 Project Quality Manager/Asset Lead Quality Engineer...........................................16

2.3.4 Senior Quality Assurance Engineer........................................................................16

2.3.5 Quality Assurance Engineer....................................................................................17

2.3.6 QC Inspectors.........................................................................................................18

2.3.7 Disciplines...............................................................................................................18

2.4 Quality Management System Structure and Documentation Hierarchy.........................18

2.5 Quality Management Deployment Model.......................................................................19

2.6 Scaling / Application of a QMS......................................................................................19

2.7 Quality Planning.............................................................................................................21

2.8 Resource Management.................................................................................................27

2.9 Quality Training..............................................................................................................28

2.10 3rd Party Inspection Agencies.......................................................................................28

2.11 Measurement, Analysis and Improvement.....................................................................29

2.12 Audits & Reviews...........................................................................................................29




2.13 Key Performance Indicators...........................................................................................29

2.14 Non-conformities............................................................................................................30

2.15 Quality Improvement......................................................................................................30

3 Appendices.........................................................................................................................31

Appendix 1 Risk Form................................................................................................................32

Appendix 2 Quality Activities and Deliverable Guideline Road Map..........................................33

Appendix 3 Project Quality Delivery Plan..................................................................................35

Double click on the icon for opening the file...............................................................................35

Appendix 4 PQP Narrative Checklist.........................................................................................36

Appendix 5 Quality Management Key Performance Indicators.................................................37



Code of Practice -190

Laws and Regulations

Project QualitySP-1122SP-1171

Quality Risks


1 Introduction

1.1 BackgroundIn the majority of significant major incidents (irrespective of whether they are financial, safety or operational by nature), investigations conclude there were often inherent weaknesses in, and a lack of commitment to, the management of quality throughout the business processes.

For any project to function effectively there must be a clear and well thought out framework of business controls applied - Opportunity Realisation process (ORP), Quality Management is one of those controls and is aimed at assuring compliance with requirements, however the existence of good management system does not in itself guarantee a quality product; this has to be accomplished via a combination of technical competence and, most importantly, adherence by all contributors to the system.

1.2 PurposeThe purpose of this Code of Practice is to ensure that quality is consistently applied and implemented in PDO projects by supporting the ORP to provide a standardised approach to Quality Management in projects and give direction to Project Management Teams. See Fig 1.

Quality Management Activitites(Quality Planning)

Front-end Development / Engineering

ExecutionDetail

DesignProcurement Construction/

Commissioning and Hand-over

Fig 1Interfaces with other PDO related assurance activities including Flawless Project Delivery (FPD), Operational Readiness (OR), Asset Integrity Process Safety Management (AIPSM) and the Discipline Controls and Assurance Framework (DCAF) have also been taken into account.



Id e n ti fy A s se ss S e le ct D e fi n e E x e cu te O p e rate

Support Processes: Risk Mgt, HSE, Procurement, Cost & Planning, Finance etc.

Related Assurance activities: FPD, DCAF, OR, AIPSM etc.


It is acknowledged that there is a degree of overlap between these activities:

FPD / OR and DCAF apply a specific level of QA/QC to individual activities;

A QMS provides the overall system framework within which all these activities are effectively managed and improved.

It is therefore important that the boundaries and interfaces are clearly defined and agreed during the opportunity framing with the relevant accountabilities, responsibilities captured in the Project Quality Plan (PQP), See SP-1122 Specification for Project Quality Plan.

1.3 ScopeThis CoP shall be applicable to all phases of a project as defined in the ORP (ORS) and CP-117, up to and including the hand-over of the Asset.

Plant changes during the operating phase are also included, irrespective of size.

Subsurface and well engineering activities, as well as operations and maintenance activities after project handover are excluded.

1.4 ObjectiveThe primary objective is to set the recommended standard for project quality management related activities by;

Providing a road map for project managers/engineers, quality managers, quality engineers and others in determining the right level of quality to suit their particular project.

Providing direction and outline the quality management principles and practices; the implementation of which are important to, and have an impact on, the achievement of quality objectives in delivering projects

In its simplest format, quality is delivered via the Deming PDCA cycle – See Fig 2.

Fig 2

1.5 Distribution/Target AudienceThis Code of Practice is applicable to all PDO-staff and contractors who are involved in the processes and activities directly related, or in support, to the delivery of a project or modification to an existing Asset.



Plan: Design or revise business process components to improve results

Do: Implement the plan and measure its performance

Check: Assess the measurements and report the results to decision makers

Act: Decide on changes needed to improve the process

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1.6 Review and ImprovementCP-190 shall be reviewed every three (3) years. In case of change in company policies or long term directions, it may be necessary to update and re-issue at an appropriate time to ensure PDO’s current position is reflected.

1.7 Step-out and ApprovalAny changes that need to be made to this Code of Practice shall be forwarded to the Corporate Functional Discipline Head (CFDH) for Quality Management UEQ, See PR-1247 Project Management of Change Procedure and PR-2066 Managing Deviations from Standards and Procedures.

1.8 Terminology, Definitions and AbbreviationsTable 1 below lists the terminologies, definitions and abbreviations used throughout the text of this document, wherever the term ‘project’ occurs, it may also mean ‘opportunity’.

Throughout this document the term Quality Management System (QMS) is used to describe the Quality System through which QM is implemented.

This CoP uses “Shall” , “Should” and “May” in the following context:

“Shall” indicates a mandatory requirement and dispensation can only be granted by the relevant authority. “Should” indicates a recommendation and “May” indicates a possible course of action and is optional.

Table 1

Term / Abbreviation

Definition (or meaning for the purpose of this document)

AccountabilityBeing liable for certain actions to be taken and results achieved.Accountability = Responsibility + Authority.

AI-PSM Asset Integrity Process Safety Management.

AuditSystematic, independent and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which audit criteria are fulfilled.

BMSBusiness Management System. A set of policies, practices, processes & procedures used in developing strategies, their execution and all associated management activities.

BOM Business Opportunity Manager.BFD Basis for Design.CFDH Corporate Functional Department Head.

ChangeA planned action to revise: a rule, procedure, standard, process, hardware (including equipment and plant configuration) or organization. The approval of a change must be obtained in advance of its implementation.

CMF Corporate Management Framework.Company Petroleum Development Oman.

Contractor A third party (person, company, joint venture) employed to complete a specific task on behalf of the Company.

CCMS Project Completions Management System.CoP Code of Practice.CQP Contract Quality Plan.CSR Company Site Representative.DCAF Discipline Control Assurance Framework.




Term / Abbreviation


DE Decision Executive

Deviation

A proactive and planned intentional or approved non-compliance with mandatory requirements of a procedure, standard or specification. The justification shall be submitted for review and approval obtained from an appropriate technical authority prior to the deviation taking effect. A deviation can be temporary, but will often be permanent for a specific installation.

DRB Decision Review Board, led by the Decision ExecutiveEMC Engineering Maintenance Contract.EPC Engineering, Procurement, Construction.FAT Factory Acceptance Test.FEED Front End Engineering Design.FPD Flawless Project Delivery.

Inspection Conformity evaluation by observation and judgement accompanied as appropriate by measurement, testing or gauging.

ISO International Organisation for Standardisation.ITP Inspection and Test Plan.KPI Key Performance Indicator.

Monitoring To check periodically and systematically. It does not imply that any action will be taken.

MS Management System. System to establish policy and objectives and to achieve those objectives.

NCR Non-Conformance Report.NDT Non-Destructive Testing.Nonconformity Non-fulfilment of a requirement.ODC Off-plot Development Contract.OR Operations ReadinessORM Opportunity Realisation ManualORP Opportunity Realisation Process.ORS Opportunity Realisation StandardPAP Project Assurance Plan.PCAP Project Controls and Assurance Plan.PDO Petroleum Development Oman LLC.PE Project EngineerPEP Project Execution Plan.PM Project ManagerPQP Project Quality Plan.

Project Unique process, consisting of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements, including the constraints of time, cost and resources.

Quality Plan Document specifying which procedures and associated resources shall be applied by whom and when to a specific project (product, process or contract).

Project Team Team involved in the project for the purpose of monitoring activities of the Contractor in all project phases.

Procedure Specified way to carry out an activity or a process.




Term / Abbreviation


PWR Practices Worth Replicating.

QA Quality Assurance. Part of quality management focused on providing confidence that quality requirements will be fulfilled.

QC Quality Control. Part of quality management focused on fulfilling quality requirements.

QM Quality Management. Coordinated activities to direct and control an organisation with regard to quality.

QMS Quality Management System. Management system to direct and control an organisation with regard to quality.

RASCI Responsible, Accountable, Supporting, Consulted and Informed.

Record Document stating results achieved or providing evidence of activities performed.

Responsibility The execution of a delegated task, activity or process. Being required to undertake specific actions.

Review Activity undertaken to determine the suitability, adequacy and effectiveness of the subject matter to achieve established objectives

TA Technical Authority.TBC To be confirmed.TBD To be developed.TI Technical Integrity.TPI Third Party Inspection.VAR Value Assurance Review.

Verification Confirmation through to the provision of objective evidence that specified requirements have been met.




2 Managing Project QualityThe commitment and active involvement of the project and functional leadership team(s) is essential for developing and maintaining an effective QMS.

This CoP has been based on eight (8) management principles which underpin successful Quality Management:

Principle 1 – Customer focus: Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.

Principle 2 – Leadership: Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization’s objectives.

Principle 3 – Involvement of people: People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization’s benefit.

Principle 4 – Process approach: A desired result is achieved more efficiently when activities and related resources are managed as a process.

Principle 5 – System approach to management: Identifying, understanding and managing interrelated processes as a system contributes to the organization’s effectiveness and efficiency in achieving its objectives.

Principle 6 – Continual improvement: Continual improvement of the organization’s overall performance should be a permanent objective of the organization.

Principle 7 – Factual approach to decision making: Effective decisions are based on the analysis of data and information.

Principle 8 – Mutually beneficial supplier relationships: An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value.

2.1 Quality PolicyThe project quality policy shall support the overall corporate and project objectives; It is a means by which PDO and/or a project organisation is able to channel its actions in meeting its specific objectives towards Quality.

2.1.1 PDO Corporate Quality Management Policy PL-15

It is PDO’s policy that working practices and a Quality Management System that aligns with the requirements of Code of Practice 190, shall be applied throughout our organization that:

Make Quality Management an integral part of normal business activities.

Provides adequate resources throughout the organization, ensures competency of personnel by developing and maintaining a healthy Skillpool of Quality professionals and includes Quality performance as part of staff performance appraisal and reward.

Ensure completed works and Assets comply with the requirements of Engineering Design, the laws of the Sultanate of Oman and Internal Standards.

Establish Business Performance and Project Delivery quality objectives and targets; measure, appraise and report quality performance.

Achieve continuous improvements in Business and Project Delivery performance.




Engages future Asset-owners to align Project definitions and delivers Flawless start-up.

The impact of this policy is that there is a Quality Management System established, maintained and continually improved that aligns with the requirements of PDO Code of Practice CoP-190. The Quality Management System includes key matrices, which will be used to monitor the effectiveness of the system in contributing to top quartile performance.

The purpose of this policy is to:

Ensure understanding of PDO’s commitment to Quality by recognizing Quality performance and accountability.

Ensure Engineering Designs are clearly documented and agreed with the Business and Project owner that address specified Asset Integrity and Process Safety requirements.

Ensure commitment to develop and allocate competent Quality resources within PDO Assets and Projects.

Create a culture in which PDO and contractor employees are encouraged to share PDO’s commitment to QM principles.

Promote best QM practices within the Oil and Gas industry of the Sultanate of Oman.

Implement individual accountability to comply with QM requirements.

NOTE: Any individual project Quality objectives shall as a minimum address and comply with PL - 15.

2.2 Management Responsibility The achievement of the quality objectives is a management responsibility, therefore the commitment and active involvement of PDO senior management and /or project organisations are essential for developing and maintaining an effective QMS.

Typical actions required to demonstrate commitment:

Applying PDO Corporate Quality Management Policy (PL-15)

Providing the infrastructure and resources to ensure achievement of the project quality objectives;

Making decisions based on data and factual information;

Empowering and motivating all project personnel to improve the project processes and product;

Planning for future preventive actions (continual improvement process)

The project top management shall nominate a quality management representative who must have sufficient responsibility and authority for identifying and resolving quality issues and retain a high degree of independence and objectivity.

Key performance indicators (KPI’s) should (dependant of size of Project and Risk) be developed and agreed for monitoring and steering quality performance throughout the project (See Section 2.13).

Management shall ensure that Contractors also identify suitable quality resources which will be subject to acceptance by the project team and/or CFDH.

Contractors management shall also define their commitment to execute the project in accordance with ISO/TS 29001 and SP-1171.





2.3 Roles and ResponsibilitiesQuality related responsibilities in projects are described below (See also CP-117 Project Engineering CoP, CP-180 Recruitment Code of Practice and SP-1122 Specification for Project Quality Plan), specific project related responsibilities of individuals may be further described in individual project documents and/or procedures and specifications.

2.3.1 Head of Quality UEQHead of Quality (UEQ) is the Management Representative who, irrespective of other responsibilities, shall have responsibility and authority that includes:

Ensuring that processes needed for the QMS are established, implemented and maintained (PDO Quality Technical Authority TA1);

Reporting to the Engineering & Operations Director UEOD on performance of the QMS and any need for improvement, and

Providing support and guidance to all Project Teams on quality related matters and ensuring competent quality (QA/QC) resources are available within the Project Teams.

UEQ is also responsible for the quality management system review: ensure its continuing suitability, adequacy and effectiveness. Key project personnel shall be invited to contribute to the reviews as appropriate. These reviews shall be formal, and recorded in detail, to monitor the effectiveness of the QMS. These reviews are described in the Project Quality Management System Review Procedure PR-2052 and compliment the ongoing feedback and continual improvement of the QMS in its day-to-day implementation.

2.3.2 Business Opportunity Manager (BOM) / Project Manager or Engineer (PM / PE)The BoM/PM/PE has overall responsibility for quality and its implementation at every stage of the project. The BOM/PM/PE should ensure that the project QMS is reviewed at regular intervals ensuring its continuing suitability, adequacy and effectiveness. Where repetitive projects (portfolio of projects) are covered within a single contract scope, a single QMS / PQP may be developed (see sections 2.4, 2.6, 2.7), underpinned by level 3, 4 documents / deliverables.

Suitability is judged by its ability to sustain current performance;

Adequacy is judged by its ability to deliver the project that satisfies requirements, standards and regulations;

The review output should include decisions and actions related to the improvement of the effectiveness of the project QMS, its processes and related resource needs.

Further responsibility and authority include;

Ensure that project quality requirements are addressed and included within the PEP.

Establishing the budget and resource estimate for quality: ensuring that appropriate quality resources are available within their respective project team and contractors organisations in order to achieve PDO’s Quality Policy & Objectives;

Establish, implement and maintain the project QMS including quality strategy and PQP;







Ensure that project quality requirements are included within contract documents and that contractors, subcontractors and vendors comply with project QMS requirements;

Team development to ensure all project personnel are aware of quality responsibilities;

Promoting a consistency of approach & sharing learning across projects and for promoting continual improvement within their project organisation;

Taking the appropriate action necessary to address quality issues impacting project delivery including document reviews, and corrective and preventive actions are completed in a timely manner;

Making use of available quality related information to evaluate options and make decisions;

Identifying and implementing quality KPI’s and applying rewards/penalties as applicable under established contracts.

2.3.3 Project Quality Manager/Asset Lead Quality EngineerThe Project Quality Manager / Asset Lead Quality Engineer is the focal point for the project / asset for all quality aspects and is responsible for:

Ensuring the project QMS strategy and processes/plans are established, implemented and maintained;

Provide support in developing and implementing the PQP, Transition Plan and project specific procedures and/or work instructions;

Identifying quality shortfalls and creating training / coaching requirements;

Managing the overall project assurance, surveillance, audit and review activities and executing project/contractor audits;

Coordinating the timely closeout of audit actions as applicable to their project;

Compile relevant quality statistics/KPI’s and implementing lateral quality learning’s;

Monitoring the performance of the EP, C, EPC/ODC/EMC and/or major contractors against contract requirements;

Reporting to the project manager/engineer and the quality CFDH on the performance of the QMS, including needs for improvement;

Review and approval of the contractors QA / QC personnel.

Liaising with supply chain management and function to:

Confirm supplier’s capability/approved vendor list;

Agree surveillance plans as applicable;

Act on surveillance reports as necessary.

Assist PM / PE in the identification / compilation of quality documents subjected to review and approval by project team.

2.3.4 Senior Quality Assurance EngineerSr. QA Engineer is responsible for day to day management of quality for a given project / asset area under supervision of the Project Quality Manager / Asset Lead Quality Engineer. He is responsible for:




Provide support in developing and implementing the PQP, Transition Plan and project specific procedures and/or work instructions;

Identifying quality shortfalls and creating training / coaching requirements;

Managing the overall project assurance, surveillance, audit and review activities and executing project/contractor audits;

Coordinating the timely closeout of audit actions as applicable to their project;

Compile relevant quality statistics/KPI’s and implementing lateral quality learning’s;

Providing early contribution to the contractor's ITP/QCP to identify critical hold, witness, monitor and review points including PDO’s activities;

Reviewing contractor and manufacturer contract quality plan and relevant procedures as per SP-1171 Specification for Quality Assurance Requirements for Product and Service)

Ensuring the quality requirements identified in the contractor's or manufacturer's ITP/QCP are followed;

Conducting surveillance of contractor's activities in the procurement, fabrication, construction and installation of a facility or product by:

Reporting problem areas to the quality manager (lead project engineer if project does not have a designated quality manager) and raising non-conformance reports (NCR’s) or Product NCR’s to document work that fails to meet the specified quality requirements so that remedial action can be taken;

Verifying that all NCR’s and Product NCRs have been satisfactorily resolved;

Reviewing the contractor's submission of the QC data package at completion of the work. It is the PM’s/PE's job to see that the quality related requirements are adhered to and that competent resources are available, in time, to assist in achieving same (see BOM/PM/PE responsibility requirements).

2.3.5 Quality Assurance EngineerIs responsible for ensuring the quality requirements identified in the contractor's or manufacturer's ITP/QCP are followed; conducting surveillance of contractor's activities in the procurement, fabrication, construction and installation of a facility or product by:

Providing early contribution to the contractor's ITP/QCP to identify critical hold, witness, monitor and review points including PDO’s activities;

Reviewing contractor and manufacturer contract quality plan and relevant procedures as per SP-1171 Specification for Quality Assurance Requirements for Product and Service)

Reporting problem areas to the quality manager (lead project engineer if project does not have a designated quality manager) and raising non-conformance reports (NCR’s) or Product NCR’s to document work that fails to meet the specified quality requirements so that remedial action can be taken;

Verifying that all NCR’s and Product NCRs have been satisfactorily resolved;

Reviewing the contractor's submission of the QC data package at completion of the work. It is the PM’s/PE's job to see that the quality related requirements are adhered to and that competent resources are available, in time, to assist in achieving same (see BOM/PM/PE responsibility requirements).




2.3.6 QC InspectorsProvide early contribution to a project in order to ensure:

Adequate inspection during fabrication / construction;

Inclusion of the asset holder requirements;

Records and evaluates the findings of manufacturer and contractor QC activities so as to recommend improvements;

Assist in evaluating the impact of new fabrications on existing facilities and provides recommendations on best options;

maintains records of repairs and changes in the maintenance administration and information.

2.3.7 DisciplinesEnsure the effectiveness and efficiency of processes under their control.

NOTE: Specific requirements should be detailed in individual job descriptions.

2.4 Quality Management System Structure and Documentation HierarchyProject QMS documentation is firmed up post DG3 space as illustrated in Figure 3.




Fig 3Principal contractors / sub-contractors selected to execute the work, shall (dependant on work to be executed) develop and implement specific quality plans, associated procedures, work instructions, and inspection and test plans. The PM/PE shall identify which documents are subject to review by the Project Team and shall form an integral part of the overall Project QMS.

2.5 Quality Management Deployment ModelThe quality management deployment model is illustrated in Fig 4 below. This model is common to both ISO10006 & ISO9001, and shall be used as the basis for developing the project QMS.



Customer / Stakeholder

RequirementsSelect & Define Governance &

AssuranceSelect & Define Strategies, Policies,

SystemsDefine Plans /

SystemsExecute Procedur

es

IdentifyC

MF

MoA

Internal / External

Board

Execution StrategyContracting StrategyQuality

Strategy & Policy

Project Quality Plan

Supporting Assets / Work Streams / InterfacesF

EED

Eng

Proc / Const

Pre-Comm

Identify project specific Customer / Stakeholder requirements: Business Principles Governance & StandardsSpecific Project Laws & Regulations

Engineering

Contract & Procurements Fabrication,

Installation / Const.

Comm., Hook-up & Start-up

Project QMS Procedures & InstructionsDesign Inputs / Design outputs, Checks, ReviewsCritic

ality Assessme

nt

Pre-Awar

d QA/Q

C

Post-Awar

d QA/Q

C

Suppliers QPs

& ITPs

Construction Contractors QPs & ITPsFabri

cation QC

Construction

QC

Mechanical

Completion QC

Commissioning QA & Flawless Start-up

FPD

Q - Areas

AIV Plan

Execution

Quality Intervention

Plans(TPIs &

Company)

Identify project specific Assurance controls: Business Control Reviews: PDAB / DRB / DE / BAC VAR / ESAR / Audit / PERT / PSUADCAF

CoP 117, 190, ISO 9001, ISO/TS 29001, ISO 10006ORConstructabilityIn Country Value (ICV)BenchmarkingLessons Learned

Define project specific: Standards / Codes Risk and Opportunity ManagementMoCFPD

Identify project specific:Project Specific QA/QC RequirementsSpecificationsProceduresMoC

Audits

Quality

KPIs

Lessons

Learned

Corrective &

Preventive Actions

Benchmarking

& Health Checks

Continual Improvemen

t


Fig 4To facilitate deployment, the elements of the model should be grouped according to their affinity to one another:

Managing the Project - Management Responsibility / Resource Management / Measurement, Analysis & Improvement.

Realising Project Quality - Comprise the demand fulfilment processes, e.g. Design / Construction / Commissioning together with the interdependent processes, e.g. HSE, Risk Management, Work Planning & Scheduling, Contracting & Procurement, etc.

2.6 Scaling / Application of a QMSScaling/tailoring the QMS for each project shall be defined by the opportunity project team and agreed with the Business Opportunity Manager (BOM), project manager and/or project engineer / CSR as applicable at the outset, recorded in the PEP and implemented via the PQP and reviewed at each decision gate.

This decision should be based on the interfaces with other business processes, the intent of each activity, identified risks and lessons learned from other projects.

Table 2 below shows the recommended application of a quality management system by ORP phase and project value.

Table 2Project size (millions)

Identify & Assess

Select Define Execute

>$ 1000 <$ 1000 <$ 200




<$ 50 <$20 (EMC/ODC)

Recommended. Mandatory

Table 2 above is only indicative as Projects differ in terms of complexity and uniqueness, reflected in their risk exposure and applied mitigation actions.

The QMS is also unique and may differ in terms of structure, complexity and application based on the identified Risk and cost, Table 3 (example of Risk Form is provided in Appendix 1).

Table 3

Faci

lity

/ Cap

ital I

nten

sity

(in M

illio

n U

SD)

>$ 1000 QMS Level 3 QMS Level 4 QMS Level 4

<$ 1000 QMS Level 2 QMS Level 3 QMS Level 4



<$20 (EMC/ODC) QMS Level A1 QMS Level A1 QMS Level A2

Risk Category: Low Medium High

Risk category explanation: Low Risk: Conventional projects that involve limited engineering scope and only

few vendor interfaces, typically single discipline such as pipeline and overhead line projects, or single vendor package, standard materials, no prototype, low risk impact, limited brown field scope.

Medium Risk: projects with considerable engineering scope, many discipline interfaces, multiple vendors, various high grade material types, and /or medium risk impact. (gas compression/ production facilities steam projects, polymer projects, water-floods, some prototypes, brownfield projects)

High Risk: projects involving extensive multidiscipline engineering, many different vendors, typically sour, high pressure projects such as miscible gas, exotic materials, many prototypes, many discipline interfaces, high brownfield content, high risk impact.

Table 4 identifies the minimum quality management system(s) assurance and control requirements based on Value and/or Risk See also CP-131.

Table 4

Quality Management System requirements




QMS Level 3 & 4

a. The QMS / PQP should be specifically developed for the Project, including a Quality Strategy/objectives, supporting procedures and work instructions. PDO Corporate Quality Policy, management system and procedures shall be used as a main reference.

b. Quality Resources, including a Quality Manager and QA Engineer(s) should be dedicated to the project and should be progressively deployed during the Identify & Assess phases of the ORP.

QMS Level 2a. The Project’s QMS may be a combination of the PDO Corporate management system and procedures and project specific procedures. The level of documentation is to be assessed on an as-needed basis. b. A dedicated Quality Lead should be deployed as a minimum during the

Select phases of the ORP. QA/QC resources can be shared with other projects on an as-needed basis.

QMS Level 1 a. The Project Quality System should basically consist of a PQP that makes reference to, and is supported by, applicable PDO standards and processes; i.e. normally there will be no need for the Project to develop its own specific procedures.

b. More reliance should be placed on Line Management to practice their own responsibilities towards QA/QC activities at early phases; i.e. generally, a dedicated quality resource will be mobilized at the Define Phase of the ORP.

c. Minimum one dedicated QA Lead Engineer, additional QA/QC resources may be shared between more than one project through a matrix organization or skill pool.

EMC/ODC QMS level A1 & A2

QMS Level A2, dedicated Quality Lead full time to the project.

For QMS Level A1, QA/QC resources may be shared between more than one project through a matrix organization or skill pool. Supply Chain Quality Lead/Engineer, position may be covered by corporate Function.

Execution QA/QC Engineers and Inspectors, The number will vary per project and may include both full time and call-off arrangements. The roles may also be filled by 3rd. Party inspection agencies.

2.7 Quality PlanningIn order to achieve project quality objectives, it is necessary to manage and control the project processes and activities by means of Project Quality Plan (PQP). Where relevant, the PQP should be supported by lower tier quality plans, procedures and/or work instructions specific to discrete parts of the project, see SP-1122 and SP-1171 for specific details.

Quality Planning should commence at the Identify / Asses phase of the ORP (Fig 5) and be continually updated as and when project requirements become more clearly defined until final project delivery and hand-over to Operation.

To guide development of the PQP the primary quality activities and quality deliverables associated with each ORP phase, ‘What you do,’ are illustrated in the Quality Activity and Deliverable Roadmap, see section 3 Appendix 2.

An outline of project QA/QC activities and deliverables in various ORP-phases of Identify/Assess, Select, Define, and Execute respectively is provided in the Project Quality Delivery Plan (PQDP), see section 3 Appendix 3.

The PQP should indicate how the required activities will be carried out, either directly or by reference to appropriate documented procedures, or other documents (e.g. project plan, work instruction, checklist, etc, see also Appendix 4 – PQP Narrative Checklist Inputs that need to be considered include:

The project classification by Cost and Risk;




The requirements of stakeholders and any statutory, regulatory and industry specifications;

The capability / experience of the project organisation and maturity of the QMS.

The Quality Characteristics that need to be controlled, assured, improved, managed & demonstrated.

Quality Resources (both availability and capability)

If a requirement results in a deviation from the QMS, this deviation should be justified and authorised.

The depth and breadth of the PQP should be determined by the overall project / quality characteristics and associated risks to be mitigated (RE: Section 2.6).

Fig 5




Table 5 identifies the minimum quality activities and controls that should be addressed within the PQP, irrespective of the QMS scaling (details of corporate Codes of Practice, Specifications, Procedures and Guidelines are provided for reference, refer to LiveLink for latest copy).

Table 5QMS Requirement PQP Activity

Design & Development Quality Management

(Front-end Engineering & Detailed) including Technical Integrity.

(CP-117, CP-185, SP-1122, SP-1134, SP11-71, SP-2061, PR-1232, PR-1247, PR-1358, PR-1151, PR-1561, PR-1729, PR-1741, PR1727, PR1734, PR-1735, PR-1761, PR-1768, GU-603, PR1772, PR-1759).

The design quality assurance process is key in enabling the project to achieve its objectives and therefore must be effectively controlled.

The following steps should to be addressed and reviewed:

Setting Quality objectives for the design process; Submission of a Design Quality Plan (which should include

requirements for assuring technical integrity. Quality measures for indicating achievement of these design

quality objectives; A defined sequence of design processes, procedures, or tasks

that transform the design inputs into design outputs; Essential QA/QC requirements set out in project specifications; Checking, verification and approval procedures for establishing

that the process is achieving its objectives (internal and external);

Design change control is properly managed (internal external); Processes for improving the effectiveness of the design

process. Auditing effectiveness of the Competence Assurance process Drawing Office quality controls and associated procedures

should be available.All work should also be undertaken in accordance with the relevant Technical Integrity Framework and/or DCAF and other applicable Project Standards / Guides.

Where an Independent Verification Body is required to verify a design in order to comply with any prevailing regulations and legislation (e.g., Pressure Vessel Directive, Lifting Reg’s, etc), the requirement should be specified in the PQP and should identify both the internal Technical Authorities (TA) and 3rd parties required to review and approve the relevant documentation.

Interface Control

(Project specific document)

(CP-162, CP-111, PL-13, GU-435)

The project should have and implement an interface control procedure.

Establish and implement an effective communication system / process that address all project interfaces including internal/external Meetings, communications, reporting, correspondence etc.

This should be subject to audit and included in the Audit plan. Alternative arrangements to manage interfaces should also be addressed as a scope item in the Audit plan.

Change and Deviation Controls

(PR-1247, SP-2061, PR-1001x, PR-1029, PR-2066)

Management of Change and the Deviation processes should be subject to audit and included in the Audit plan. The audit scope should assure all technical deviations are approved by designated Technical Authorities, and that deviations are managed and controlled. The deviation register should be audited.




QMS Requirement PQP Activity

Risk Management Control.

(CP-131)

The projects should have a risk management procedure:

Develop project risk management procedure and establish risk register including mitigation measures and time frames.

System should be subject to audit and included in the Quality Audit plan. Alternative arrangements to manage risk should also be addressed as a scope item in the Audit plan.

Information Management / Document Control.

(PL-06, CP-102, CP-139, SP-1003, SP-2047, SP-2065, SP-2066, SP-2067, SP2079, PR-1009, PR-1561, PR-1568, PR1692, PR1772, GU-453, GU-493, GU-556, GU-582)

The document control system should be audited to assure achievement of information quality, and that changes/revisions, are approved, retained on file and issued in a controlled and systematic manner.

Quality record requirements should be set out in the IM plan. The IM process should be part of the audit plan.

Project Controls

(CP-131, CP-142, CP-185, GU-484, GU-569, GU-117, GU-521, GU-569, GU-611, GU-711)

The use of the project suite of project controls and procedures should be audited and included in the Audit plan. The audit of project control effectiveness should also extend to contractors and key subcontractors.

Quality in Contracting and Procurement.

(CP-129, SP-1122, SP-1171, PR-1233, PR-1279, GU-115, GU-556, GU-586, GU-598)

Robust and effective methods should be established to assess, monitor and control contractors, sub-contractor, suppliers and service providers at a very early stage in the project life.

The focus should be determined by the quality risks to the project and measures established to ensure effective delivery of all products, services and materials.

Key quality inputs should include:

Determining the level of quality management intervention through a risk based assessment of contracted and supplied services, equipment materials, and goods (e.g. criticality process).

Design Contractor Quality Appraisal and Evaluation Contractors/Supplier Quality Appraisal and performance

monitoringContract and Procurement Quality Control

The requirement for a Contractor/Supplier Quality Plan should be embodied in each major contract, or purchase order

The QA and QC inspection requirements (level of Quality Intervention) should be incorporated in purchase orders in order to reduce the risk of non-conformance to specification and late delivery.

Key quality inputs should include:

Quality Intervention Strategy and Plans Quality Control/Inspection, Testing and Quality Surveillance

plans Material Quality Control and Traceability (Procurement) Appraisal and Use of Inspection Contractors (Execution

Phase) Supply Chain Quality Assurance Plans





Construction Quality Assurance and Control.

(SP-1122, SP-1171, PR1483, PR-1561)

The PDO project team should ensure that a Construction Quality Plan and Quality Audit plan is available. It should cover the construction and installation quality activities and that any audits and reviews are planned in a methodical manner to assure that the construction work meets the requirements of the contract and project specifications.

Participation in contractor quality audit plans is an effective way to monitor implementation and effectiveness of construction and site QA/QC activities.

The extent of quality monitoring should be dependent upon the technical criticality of the work and contractor/subcontractor work scopes.

Key areas to check are

Project specific Inspection and Test Plans have been prepared that define critical fabrication steps, the acceptance criteria, and the specific methods and procedures to be used to ensure that all Contract requirements are met

Construction quality team is notified and involved in the review and sign off on inspection release notes, or Inspection and Test Plan hold points.

Inspection and Test plan actions are monitored to closure. This should also include supplied equipment and material.

Monitoring and measuring devices, applicable to inspecting construction work scope of work, is available and calibrated and is the proper instrument for inspecting the work.

Systems Handover Quality Control.

(SP-1131, PR-1000, PR-1150, PR-1612)

On handover of each completed system or subsystem to commissioning, a construction dossier shall be compiled that includes all quality information on that system (e.g. as-built drawings, test results, factory acceptance test outcomes, mechanical completion, vendor documents and data etc.). Project Completions Management System (CCMS) shall be used for systematic approach.

The site quality team should assure collection of these quality records is both effective and complete. The process should be audited as part for the construction audit plan. Contractor and subcontractor handover controls should be included.

Commissioning Quality Control & tools Project Completions Management System (CCMS).

(PR-1159, PR-1172, PR-1561, PR-1612)

Quality activities to verify that the Installation:

has been constructed as designed; meets its performance specification; is safe and reliable for operation; and design limits have not been violated.This is particularly important when items are constructed at a number of locations are brought together on site. Mechanical completion of systems should be confirmed by the completion of quality checklists prior to handing the system over for commissioning.

Incomplete minor items should be recorded on punch-lists. Commissioning should be executed using pre-agreed procedures and checklists.

On handover to Operations for start-up, the package of information transferred into the operations records should include:

Quality records and handover certificates and completed check sheets;

agreed punch lists of minor items to be completed after





handover; and outstanding inspection activity. Quality records of equipment and running trials.Readiness Review/Start-up (OR)

The methodology of the Flawless Project Delivery (FPD) should be applied on all PDO projects in accordance with the Operational Readiness and Assurance Plan (OR).

This will generally be co-ordinated by a dedicated OR Team with close liaison/tie-in with the site Quality team.

2.8 Resource ManagementWithin the QMS attention shall be given to the activities in the personnel-related processes to assure the competence of suitable resources to manage quality. The processes should ensure:

The establishment of the project quality organisation structure (both for the project and principle contractors)

The allocation of quality resources, and

Team development to ensure all project personnel are aware of quality responsibilities

A summary of key quality related responsibilities is provided in section 2.3 and shall be reflected in the tasks and targets of the project team roles.

The Quality Manager/Engineer should report direct to the PM / PE or most senior individual who has been given responsibility of assuring that quality and technical integrity requirements are compliant. Quality functionality remains with UEQ.

It is recommended that RASCI Charts (Responsible, Accountable, Support, Consult and Inform) are used to define who should do what quality activities on the project.

An indicative QA/QC resources required across projects is shown in Table 6:

Table 6

Position EPC Project QMS Level Comment

1 2 3 4Quality Manager 0 0 1 1 Level 3 - 4 project, dedicated full time to the

project.

Project Quality Assurance Lead/Engineer

1 1 1 2 On a Level 4 project, will be progressively involved from Identify & Assess phase through to Execution.

For level 2 or 3 projects, will become involved from Select phase and may be full time (Level 3) or support several projects (Level 2).

Note: the actual numbers will vary depending on Project portfolio.

Supply Chain Quality Lead/Engineer

1 1 1 1

Construction Quality Lead/Engineer

1 1 1 1

Execution QA/QC Engineers and Inspectors

As reqd

As reqd.

As reqd.

As reqd.

The number will vary per project and may include both full time and call-off arrangements. The roles may also be filled by 3rd. Party inspection agencies.




Position ODC/EMC Project QMS

Level

Comment

A 1 A 2South / North Asset Quality Assurance Lead / Engineer

1 1 Level A2 project, dedicated full time to the project.

For Level A1 project, generally provide support to all projects.

Supply Chain Quality Lead/Engineer

1 1 May be covered by corporate Function.

Execution QA/QC Engineers and Inspectors

As reqd. As reqd. The number will vary per project and may include both full time and call-off arrangements. The roles may also be filled by 3rd. Party inspection agencies.

The above table is indicative, should the project involve a shift rotation, the quality resources may increase significantly. The number of quality resources may also be influenced by the type of contractual arrangements and the role of the Principle contractor.

These resources should be planned across the ORP, ideally with the Quality Manager/Lead identified at the end of the Select / start of Define phase.

2.9 Quality TrainingProject personnel should be adequately familiar with project quality system requirements and their specific role in the system for the performance of their assigned tasks.

Initial quality system induction training is therefore required at the start of each (phase of a) project, followed by sustained training e.g. covering specific quality topics.

Specifically for the construction and commissioning phase QMS training is important as usually a large part of the supervisory staff are hired-in on short-term contracts and may not be familiar with PDO’s, Contractor/Subcontractor standard procedures and systems. See also PR-1029 Competence Assessment & Assurance.

2.10 3rd Party Inspection AgenciesTo help monitor the performance of its contractor and the supply chain (including expediting and inspection related activities), projects may employ the services of a 3rd Party Inspection Agency or utilise services through an EPC type contract.

Where such organisations are used, it is important they are able to demonstrate the necessary competency requirements. In addition performance of each individual inspectors shall be monitorerd for key factors of their performance such as competency, availablility, timeliness, documentation and accuracy.





2.11 Measurement, Analysis and ImprovementThe project organisation shall ensure that measurement, collection and validation of data is effective and efficient, to improve the organisations performance and enable continual improvement in both current and future projects.

Examples:

Evaluation of individual activities and processes;

Auditing;

Evaluation of supplier performance;

Evaluation of actual resources (cost/time) compared to original estimates.

2.12 Audits & ReviewsA Project Quality Audit and Review plan shall be developed and maintained for the whole project lifecycle SP-1866 Quality Audit procedure

. Its purpose is to:

Provide documentary evidence to stakeholders of the effectiveness of the project assurance process, the project management/quality management systems and business controls;

Demonstrate that compliance to Project specified requirements have been achieved;

Identify areas for continual improvement.

The Project Quality Audit and Review plan shall include audits of all key project controls, prime contractors and areas identified as at risk that may require a certain level of Quality intervention to assure compliance to project requirements.

The Quality Audit and Review Schedule shall detail the outline scope and frequency of all audit /reviews against each project control, contractor, sub contractor, supplier.

The status of audits/reviews and associated findings should be summarized and included in Project Reports issued to the PM Team. The review of Quality Audit /Review reports should be the primary method used in measuring achievement of the stated Project Quality Objectives.

2.13 Key Performance IndicatorsKey performance indicators should be both ‘leading’ and ‘lagging’:

Leading are used to signal ‘possible’ future events

Lagging follows the event. The importance of a lagging indicator is its ability to confirm that a pattern is occurring or is about to occur.

The leading indicators should focus on the effectiveness and efficiency of the QMS from a system, organisational, and process viewpoint. This should apply both internally (within the project team) and externally (critical contractors and suppliers).

The lagging indicators should be QA/QC focused, and aligned with Flawless Project Delivery objectives to avoid duplication.

Examples of both Leading & Lagging Indications are shown in Section 3 Appendix 5.




2.14 Non-conformitiesProjects shall ensure the control of all nonconformities by one or more of the following ways:

By taking action to eliminate the detected nonconformity;

By authorising its use, release or acceptance under concession by a relevant authority;

By taking action to preclude its original intended use or application.

Records of the nature of nonconformities (NCR) and any subsequent action taken, including concessions obtained, shall be maintained by the project.

See also PR-2053 Control of Non-Conforming Product Procedure.

2.15 Quality ImprovementProjects shall continually seek to improve the effectiveness of its QMS through the use of the quality policy (quality objectives), audit results (incl. PEER reviews, etc), analysis of data (e. g. training records, deviation control, change control, process monitoring measures etc.), Risk matrix/mitigating, corrective and preventative actions and management reviews.

This information should be captured in an appropriate database, to enable learning (both good and bad) to be assessed by other similar projects. A “Quality Alert” process shall also be used to communicate specific quality issues with other projects and UEQ.

The PM / PE should review the effectiveness of this process and take the necessary steps to continually improve the project organisation and the processes used to support effective project delivery. Where necessary, this may include working with the supply chain to ensure similar objectives are achieved.

Prior to closing a project it is recommended that the project team carry out a documented review of the project performance, highlighting experience from the project that can be used by other projects.




3 Appendices




Appendix 1 Risk FormRisk Type Risk

RatedJustification for Risk selection

Rating definitionIndividual Rating: H = 15, M = 10 & L = 5

Technical Risk Subsurface

Uncertainty Risk

H L: Development in a well-developed, mature area.M: Development in a relatively new area / location.H: Development in a new area in a particularly unusual setting.

Surface Complecity Risk

M L: Straight-forward repeat execution of a typical production system.M: Unsual development configuration, non-traditional facilities integration into existing system, brownfield development.H: Mid steam integration 9LNG/GTL).

Project Execution Risk

H L: Single well developed location, low likelyhood of late changes, C&P straight forward.M: Single location, manageable logistical challenges, low likelyhood post DG-3 changes, some C&P issues.H: Multi locations, cross business, logistical challenges, potential for late changes to concept, C&P vhallenges.

Novel Technology Risk

L L: No novel technology, all technology applied within PDO.M: New Technology, not applied in PDO, considerable experience outside PDO.H: New technology, not applied in PDO, limited experience outside PDO.

Ecomonic Risk L L: Well predicable economics (wages, currency), margin predicable.M: Limited economic risks (wages, currency), larger variation in margin possible.H: High economic risks (high impact currency fluctuations, wide variation in margin possible.

Commercial Risk L L: Commercial and JV contracts in place, no problems expected, partners with long standing relationship.M: Expect some problems completing commercial and JV contracts, partners with no clear alignment.H: No clear commercial and JV contracts in place, access to goods and services is limited by local environment, or dealing with partners known to be out of alignment or adversarial.

Organisational Risk Business

Environment Risk

L L: Well established line of business and relationships with government/regulators/venture partners well understood.M: Unusual business conditions or relationships challenges in a region that is otherwise well understood.H: New country entry. New venture, new line of business, area with known issues / relationship challenges

Risk of Team Capability to Deliver

M L: Expert team in place and available.M: More-experience Team in place and available.H: Less-experience Team in place.

Quality System/ DCAF Maturity Risk

M L: Very mature QMS / DCAF in place.M: QMS / DCAF practices embedded in projects.H: Only QMS / DCAF basic framework exists.

Environmental / Social Perfromance Risk

H L: No reputational issues, no community issues, no permit issues expected.M: Some reputational issues, limited community issues, manageable permit uncertainties.H: High reputational issues, serious community issues, major permit uncertainties.

Risk Summary M Risk Summary Rating: L< 75 M = 75 to 125 H>125



Appendix 2 Quality Activities and Deliverable Guideline Road Map

Identify Assess Select Define Execute Operate

Pre-FEED FEED

DG /VAR 1 2 3 (opt)3a 4 5

Key Activities Provide outline strategy for Quality Assurance against identified opportunity risks.

Frame strategy for Quality Assurance against identified risks and QA resource need. Establish Policy / Goals / Objectives / KPI’s / Procedures.

Determine level of Quality monitoring / surveillance / manpower / competency shortfalls / Risks.

Initiate Quality Audit plan and improvements. Establish and maintain action tracking system.

Confirm applicable QMS and work within it.

Populate DCAF for the project, monitor and measure implementation

Establish and follow-up Lessons learned

Refine strategy for Quality Assurance against identified risks and QA resource need.

Appoint Quality lead, determine Quality resource requirements, conduct quality training.

Draft Preliminary Project Quality Plan. Provide Quality inputs into Job descriptions

Populate DCAF for the project, monitor and measure implementation.

Periodic quality management review of the project within the defined QMS.

Conduct quality audits and peer reviews.

Provide Quality Assurance input to project execution strategy including contracting strategies

Updated strategy for Quality Assurance against identified risks.

Finalise Project Quality Plan.

Establish and set equipment and material criticality ratings and quality intervention levels.

Establish QA resource need.


Periodic quality management review of the project within the defined QMS/PQP.


Continual improvement, non-conformance reporting, corrective & preventative action, and trend analysis.

Surveillance of LL contractors & suppliers QA/QC systems and performance.

Updated strategy for field/site Quality Assurance against identified risks.

Update and set equipment and material criticality ratings and quality intervention levels critically rating.

Update QA and QC resource need. Determine special skills and/or training requirements.

Implement project specific PQP, and review periodically.

Align and approve QMS for FEED contractor.

Establish/implement Change management.

Populate DCAF for the project monitor and measure implementation.


Continual Improvement, Non-conformance reporting, Corrective & Preventative Action, and trend analysis, implement KPI’s,

Approved strategy for Construction/Commissioning Quality, Technical Integrity and Flawless delivery against identified risks.

Update critically rating.

Finalise QA/QC resource and 3rd

party inspection need.

Implement project specific PQP procedures and review periodically.

Conduct Quality awareness and training sessions.

Align and approve QMS and PQP for EPC contractor.


Conduct Quality Audits and Peer Assist. Maintain action tracking.

Continual Improvement, Non-conformance reporting, Corrective & Preventative Action, and trend analysis.

Surveillance of contractors PQP, and performance & suppliers QA/QC systems, ITP’s and performance.

Prepare monthly QA reports and analysis.

Conduct quality Health-check.

Provide input into Close-out report and Lessons Learned.


Identify Assess Select Define Execute

Pre-FEED FEED

DG /VAR 1 2 3 (opt)3a 4

Surveillance of contractors PQP & suppliers QA/QC systems and performance.

Key Deliverables

Strategies.

Aligned Quality Policy and Objectives.

Identified resource requirements.

Draft Audit plan / PAP

DCAF MOX

Risk Register

Preliminary Project Quality Plan.

Project Audit & Review Plan + tracking register.

Project Team Audit & Review reports.

Project Quality Plan.

Updated Project Audit & Review Plan + tracking register.

Quality Criticality Rating and Quality Intervention schedule.

Project Team and Contractor Audit & Review and Surveillance reports / trend analysis.

QA/QC Resource Plan.

Updated Project Quality Plan.

Agreed FEED contractor quality plans.

Updated Quality Criticality Rating and Quality Intervention schedule.

Updated Project Audit & Review Plan + tracking register.

Quality learning, measurement and trend analysis report.

Project Team and Contractor Audit & Review and Surveillance reports.

Change registers.

Final Project Quality Plan.

Agreed (EPC) contractor Project Quality Plan.

QA/QC Resource Plan.

Updated Quality Criticality Rating and Quality Intervention schedule for construction.

Third party inspection reports.

Quality learning, measurement and trend analysis report.

Project and Contractor Quality Audit & Review and Surveillance reports.

Quality certification records and hand-over documentation.

Quality health-check report.



Appendix 3 Project Quality Delivery Plan

Double click on the icon for opening the file.


Appendix 4 PQP Narrative Checklist Source: based on ISO9001, ISO10005 & ISO10006 (Guidance notes provided in Shell PS and PG’s).

PQP Part 1 Content Guidance

Man

age

Proj

ect Q

ualit

y

1. Introduction: Purpose & Scope Opportunity Statement Governance & Assurance

PS00 Project Development and Implementation + PS06 Project Controls + PS 07 Opportunity Framing / Project Premises + PS10 Project Execution Planning.

3. Project QMS Quality Objectives & Strategy Quality Policy QMS System Framework &

Document Hierarchy/Procedure Summary

Quality Management Review

PS13 Quality in Projects + Quality Toolkit.

5. Resource Management

Project Organisation (by ORP phase)

Quality Accountabilities & Responsibilities

Competencies for Quality and Inspection.

PS11 Project Organisation + Quality Toolkit.

7. Measurement Analysis & Improvement

Quality Audits & Reviews + Project QMS Health Check

Nonconformities & Corrective Action

Quality Performance Measurement / KPI’s

Quality Improvement

PS12 Lessons Learned + Quality Toolkit.

PQP Part 2 Contents

Rea

lise

Proj

ect Q

ualit

y

8. Design & Engineering Co-ordination (incl. DCAF/TQAF)

Technical Integrity Verification plan Interface

Performance Standards & Verification Schemes Interface

Change & Deviation Control Interface Control Constructability Equipment/Material Quality

Intervention Strategy

PS 08 Defining the Technical Scope + DCAF / TQAF + Quality Toolkit

9. Risk Management Reference to procedures, process and risk registers.

PS20 Risk Management

10. Cost Estimating, Cost Control and Planning

Reference to procedures, process and, plans and reports.

PS03 Capital Cost Estimating + PS04 Scheduling

11. Contracting and Procurement

Quality Assessment of Contractors / Suppliers

Inspection Test & Surveillance Plan

Co-ordination of Inspection Agencies

PS05 Contracting & Procurement Strategy Realisation + Quality Toolkit

12. Information Management & Document Control

Quality Records, Certification Hand-over dossiers

PS15 Information Management + Quality Toolkit

13. Construction & Installation, Commissioning

14. Start-up

Construction Site Quality Activities.

Inspection and Test Plans Flawless Delivery Interface

PS17 Construction + FPD/OR + Quality Toolkit




Appendix 5 Quality Management Key Performance IndicatorsLeading Quality Indicators - Project Quality Management System Health-Check Tool (See Shell Quality health check tool)

The tool is intended to be used when assessing the capabilities of a project and/or 3rd parties Quality Management System (QMS) to meet PDO’s requirements.

The questionnaire is aimed at projects categorised ‘business critical’ although it can be tailored to suit other situations.

Its primary purpose is to benchmark how mature an organisation’s processes are, how well they are embedded in their culture and to identify where the gaps are so that action can be identified to improve.

The questionnaire is not a replacement for independent third party certification, nor does it address all aspects of ISO9001: 2008. Its focus is on those elements of a QMS viewed by PDO as essential to successful project delivery.

The questionnaire has been divided into 5 elements which align with ISO9000 and ISO10006:

1. Quality Management System,

2. Management Responsibility,

3. Resource Management,

4. Product (Project) Realisation and Measurement,

5. Analysis and Improvement,

These are further broken down into sub-elements (example for Quality Management system sub-element 1, is shown below). For each sub element there are statements that characterise different levels of maturity. The five levels range from the most elementary stage (level 1) that indicates that the arrangements are under development and incomplete through to level 5 where systems are fully implemented, checked and personnel are constantly looking for ways to improve the system and performance.




Lagging Quality IndicatorsA lagging indication, by definition, is one that follows an event. The importance of a lagging indicator is its ability to confirm that a pattern is occurring or about to occur.

Lagging indicators are by far the most widely used in industry, in particular, those associated with measuring defects, e.g. % weld repair; % non-conformities; % waste.

Others take into account customer satisfaction – Totally satisfied / Fairly satisfied / Neither satisfied nor dissatisfied / Fairly dissatisfied and Totally dissatisfied.

It is suggested that a 4-stage process is followed:

Stage Objective/activity

1 Agree on the objectives and scope of the activity to develop performance indicators

2 Development of a deeper understanding by workshop attendees of the main stakeholders in the activity and their concerns.

3 Exploration of the evidence the main stakeholders require to address their concerns, i.e. appropriate and useful indicators. Selection of relevant stakeholders, concerns and indicators

4 Exploration of how the results of the performance measurement against the chosen indicators are going to be used for improving performance, and by whom

Exploration of the data required, the practicalities associated with collecting it and using the output, e.g. how this activity may link with the other measurement or monitoring activities taking place

Good practice examples of key performance indicators are shown below. They should be used across each ORP phase, reported using existing project management tools, and adjusted to meet the needs of an individual project.

Quality Management KPI’s:

Quality Indicator Measure ORP Phase

Threshold Review Frequency

Report Format

QK

PI 0

1 –

QM

S Ef

fect

iven

ess

Audits and reviews planned, actioned, outstanding

Total No. overdue Vs Total planned for period

All >90% Quarterly Statistic / Trend

Quality Resources No. of resources VsNo. of positions established

All >90% Quarterly Statistic / Trend

Closure of NCR’s No. raisedVs No. closed

All > 90% Quarterly Statistic / Trend

Management system Procedures per function/discipline

No. of documents delivered late VsNo. required by schedule / MDR

All < 5% Monthly Statistic / Trend

Management review meetings

Total No. overdue Vs Total planned for period

All >90% Yearly Statistic / Trend






Report Format

QK

PI 0

2 –

Qua

lity

in D

esig

nHAZOP actions outstanding

No. clearedVs Targeted

Select, Define

and Execute

> 90% Monthly Statistic / Trend

Holds outstanding No. design issues / queries closed Vs Targeted

Select, Define

and Execute


Design Changes and/or Deviations

No. raised VsNo. cleared

Select, Define

and Execute


Design deliverables No. of document delivered late VsNo. required by schedule / MDR

Select, Define

and Execute

< 5% Monthly Statistic / Trend

QK

PI 0

3 –

Qua

lity

in S

uppl

y C

hain

Closure of Supply Chain NCR’s

No. raisedVsNo. closed

Execute > 90% Monthly Statistic / Trend

Holds outstanding No. of Holds clearedVsTargeted


Correctness and completeness of the procurement documents

Correct TA level Approval for Material RequisitionsVsTechnical Specifications of POs (along with respective PE Signature) issued for criticality level CR1 & CR2 Items.

Execute 100 % Monthly Statistic / Trend

Document turnaround compliance (vendor/contractor/PDO)

Material Requisitions / Technical Specifications, Drawings & ITPs approved in ten (10 Working days) for criticality level CR1 & CR2 Items.

Execute > 95 Monthly Statistic / Trend

(An auditable Spread sheet

shall be developed

and implemented)

PGSC compliance Vendor / Sub-vendors selected from the AVME List or approved by CFDH (prior to award) for criticality level CR1 & CR2 Items.


ITP witness & hold points

No. of witness & hold points missed VsNo. required

Execute < 5% Monthly Statistic / Trend






Report Format

CR/ITP compliance (approval and H/W points)

Inspection visit performed for Hold or Witness points as per ITP for criticality level CR1 & CR2 Items.

Execute 100% for H & 95%for W

Monthly Statistic / Trend

Material delivery compliance (documentation & Technical)

Material / Equipment inspected and accepted prior to dispatch to sites for criticality level CR1 & CR2 Items.


Vendor Quality Records & Data outstanding



Vendor / supplier materials / equipment

No.of recorded material / equipment traceability / identification issues.VsNo of materials / equipment items received


QK

PI 0

4 –

Qua

lity

in F

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ITP witness & hold points

No. of witness & hold points missed VsNo. required


Field Trouble Reports No. cleared VsNo. raised

Execute > 90% Monthly Statistic

NCR’s No. closedVs No. raised

Execute > 90% Quarterly Statistic / Trend

Deviations / Concessions

No. clearedVsNo. raise


Weld repair rate (Piping) No of joints rejected VsNo of joints tested

Execute < 3% Weekly Statistic / Trend

Weld repair rate (Pipeline)

No of joints rejected VsNo of joints tested

Execute < 5% Weekly Statistic / Trend

Hand-over documentation



