Title: Quality Management Policies REDACTED - … Macondo Documents/15.a 1 (CD... · Title: Quality Management Policies Version Status: Level: Classification: Manual Number: Issue

Title:

Quality Management Policies

Version Status:

Level: Classification: Manual Number: Issue Number: Revision Number: Effective Date:

Governing Policies GOV-CMS-PP-01 01 00 January 1, 2017

Uncontrolled

Transocean

15.a 1 (CD) Quality Management Policies 01.01.2017 (redacted)

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Document Control Page

Table of Revisions

APPROVALS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section describes the documentation approval.

TABLE OF REVISIONS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section describes the revisions made to the document.


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Table of Contents

Section 1 .................................................................................................................. General Subsection 1 Subsection 2 Subsection 3

Introduction Quality and Governance Function Department Organization and Responsibilities

Section 2 ..................................................................................... Global Risk Management

Section 3 ....................................................................................... Management of Change

Section 4 ............................................................................Management System Lifecycle Subsection 1 Subsection 2 Subsection 3 Subsection 4

Management System Documentation Management System Document Review Management System Governance Board Rollout and Implementation of Management System Change

Section 5 .............................................................. Management System Communications Subsection 1 Subsection 2

Management System Communications Managing External Communications

Section 6 ....................................................... Performance Monitoring and Improvement

Section 7 ........................................................................................ Compliance Monitoring Subsection 1 Subsection 2 Subsection 3 Subsection 4

Company Audits External Audits Assessments Verifications

Section 8 ................................................................................. Control of Nonconformities Subsection 1 Subsection 2 Subsection 3 Subsection 4

Reporting Nonconformities Root Cause Analysis Corrective, Preventive and Improvement Actions Exemptions

Section 9 ............................................................................................ Management Review

Section 10 ............................................................................................................. Glossary


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Introduction Section 1 Subsection 1


The Company has developed a management system that defines and communicates Company leadership values, beliefs and expectations.

The Governing Principles is the highest level document in the management system. It captures the expectations of Executive Management and directs personnel to meet recognized standards, regulations, Customer expectations, Shared Values and achieve the Company’s Strategic Initiatives. It describes ‘who we are’ and ‘what we do’.

The Quality Management Policies (QMP) defines policies and requirements necessary to ensure standardized development, maintenance, evaluation, approval and continual improvement of Company Management System (CMS) processes across all Functions as directed by the Governing Principles. The QMP acts as a bridge between the Governing Principles and functional processes.


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Where the term “Company Requirements” is used, it stands for Company expectations, policies and procedures and where applicable, Customer’s agreed upon requirements, standards, codes and legal requirements, including statutory and regulatory.

Functional processes are defined in Level 1 documents and must align with the Governing Principles and the requirements of this document.

The Company Management System (CMS) Quality and Governance group is the custodian of the QMP. The CMS Quality and Governance Director is the Process Owner and responsible for its content and implementation. The CMS Quality and Governance Executive is the approver.

Recommended changes to the policies in this manual are submitted to the CMS Quality and Governance group through the Management System Feedback process in the Global Management System (GMS). This feedback process enables people at all levels in the Company to propose and implement changes to the CMS.

The relationship between the QMP and other management system documents can be found on the eDocs homepage.

English is the business language of the Company. All Company Management System documents must be written in English and as required translated into the predominant local language(s).


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CMS Quality and Governance Function Section 1 Subsection 2

1 GENERAL

CMS Quality and Governance form part of the Company’s Operations Integrity and HSE Function providing a service to operations and support Functions on matters related to Company Management System (CMS) Quality and Governance.

The role of systems Governance is outlined below:

CMS Quality and Governance – All

· Manage and maintain eDocs and its content

· Review applicable management system feedback and ensure necessary changes are made

· Facilitate management system review for revisions/additions to all applicable documentation

CMS Quality and Governance – Governing and Level 1

· Define and maintain Quality and Governing documents to meet Company Requirements

· Develop and maintain management system (MS) Feedback module and the corrective and improvement process (FOCUS) module in GMS

Governance - Level 2

· Provide support to Function Process Owners and Subject Matter Experts in the development and maintenance of Level 2 documentation

Governance – Specified Level 3

· Provide guidance to Operations in the development of Location-specific documents to ensure consistent application of management system requirements


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Department Organization, Roles and Responsibilities Section 1 Subsection 3

1 DEPARTMENT ORGANIZATION

The CMS Quality and Governance Executive role has overall responsibility for the Company Management System (CMS) Quality and Governance and ensures that CMS Quality and Governance is established and maintained in all geographical locations. The control of CMS Quality and Governance is delegated to the CMS Quality and Governance Director role.

Key responsibilities of the CMS Quality and Governance group are described below.

2 ROLES AND RESPONSIBILITIES

2.1 CMS Quality and Governance Director

· Act as the Management Representative for CMS Quality and Governance

· Ensure the processes needed for the Company Management System (CMS) are established, implemented and maintained

· Ensure the Governing Principles, Quality Management Policies and other support documentation are aligned with applicable management system industry and regulatory standards , e.g., ISM, SEMS, ISO, OHSAS, API RP75, API Q2, etc.

· Ensure actions are initiated by appropriate Functions to minimize the likelihood of the occurrence of nonconformities

· Report to Executive and Senior Management on the performance of the CMS including recommendations for improvement.

· Ensure guidance and support is provided to Global Function Process Owners

· Ensure the appropriate applications are in place to support and facilitate compliance to management system requirements, (e.g., FOCUS, Management System Feedback process, etc.)

· Ensure that the Company’s electronic repository for controlled documents (eDocs) is defined, managed and maintained

2.2 CMS Quality and Governance Manager

· Provide oversight for review and approval of Governing Level documents

· Ensure management system documents are developed, revised and rolled out in accordance with Company standards

· Ensure Governing, Level 1 and Level 2 documents are managed and maintained in the Company’s electronic document management system

· Assist Global / Operations Area Functions with CMS Quality and Governance related issues as required

· Oversee development and review of bridging documents as required


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·

· Lead review of new or revised policies, requirements and standards applicable to global operations

· Review management system Exemptions for global operations to identify improvement opportunities

· Review Management System Feedback from global operations to identify improvement opportunities

2.3 CMS Quality and Governance Focal Point

· Maintain the Governing Principles

· Ensure the Governing Principles and Quality Management Policies meet applicable management system regulatory standards

· Develop and maintain the Quality Management Policies and support documentation

· Provide guidance and support to Global Function Process Owners in the development and maintenance of Level 1 documentation

· Ensure the appropriate applications are in place to support and facilitate compliance to management system requirements

· Define, manage and maintain the Company’s electronic repository for controlled documents (eDocs)

· Ensure Level 1 management system documents are developed, revised and rolled out in accordance with Company standards

· Ensure Level 1 management system documents are managed and maintained in eDocs

2.4 Operations Area(s) Governance Focal Point

· Provide guidance and support to Operations Area Director role in the development and maintenance of Level 2 documentation in accordance with Company standards for defined area(s)

· Provide guidance and support to Global Function Process Owners in the development and maintenance of Level 1 documentation where required

· Participate with customers and other Functions in the development and preparation of bridging documents

· Participate in the review of new or revised regulations and standards applicable to assigned area(s)

· Prepare responses on HSE and quality matters for Marketing and contract tenders

· Provide oversight and support for identified Level 3 documentation

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2.5 CMS Administrator

· CMS Administrator

· Provide guidance and support to Global Function Process Owners and SMEs in the formatting and maintenance of Level 1 documentation

· Review and publish Governing and Level 1 documentation to eDocs


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Global Risk Management

Section 2

1 POLICY

Processes must be in place to ensure risks are managed effectively through hazard identification, risk assessment, and application of appropriate controls.

2 PURPOSE

The purpose of this policy is to eliminate or reduce harm to people or the environment, property damage, service disruption or loss to the Company.

3 SCOPE

This policy applies to all Company personnel and all personnel at Company locations.

4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for identifying hazards and reducing their risk. It aligns with Governing Principle Element 2 Planning and Risk Management.


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Management of Change

Section 3

1 POLICY

Processes must be in place to ensure that changes that may affect the Company, its personnel or the service are identified and managed.

2 PURPOSE

The purpose of this policy is to eliminate or reduce harm or loss when implementing or reacting to temporary and permanent changes.

3 SCOPE


4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for managing changes within the Company. It aligns with Governing Principle Sub-element 2.5 Management of Change.


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Management System Documentation

Section 4 Subsection 1

1 POLICY

A process must be in place to ensure Company Management System (CMS) documents are appropriately defined, developed and controlled.

2 PURPOSE

The purpose of this policy is to ensure CMS documents are clear, understandable, accurate and are available when needed.

3 SCOPE

This policy applies to all Company personnel.

4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for identifying documents of the management system and their levels of control. It aligns with Governing Principle Sub-element 9.1 Controlled Documents.


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Management System Document Review


1 POLICY

A process must be in place to ensure Company Management System (CMS) documents are reviewed with appropriate participation and frequency.

2 PURPOSE

The purpose of this policy is to ensure that CMS documents meet Company Requirements, avoid contradiction, are reviewed for clarity and feasibility, and the workforce has a mechanism for providing feedback.

3 SCOPE


4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for reviewing feedback and proposed changes to management system documents. It aligns with Governing Principle Sub-element 9.2 Management System Document Review.


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Management System Governance Board


1 POLICY

A process must be in place to ensure changes to management system documentation undergo appropriate Executive review and approval.

2 PURPOSE

The purpose of this policy is to ensure proposed changes to the management system are consistent with Executive management expectations and aligned with the Governing documents.

3 SCOPE

This policy applies to all Function Executives, Directors and CMS Quality and Governance.

4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for ensuring any addition or removal of a policy manual is reviewed and approved by members of the Executive Management team. It aligns with Governing Principle Sub-elements 2.5 Management of Change, 9.2 Management System Document Review and 9.10 Management Review.


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Rollout and Implementation of Management System Change


1 POLICY

A process must be in place to ensure revised or new Company Management System (CMS) requirements are communicated and implemented prior to the effective date.

2 PURPOSE

The purpose of this policy is to ensure personnel have the information and resources necessary to comply with new or revised CMS requirements.

3 SCOPE


4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for ensuring major changes to the management system are effectively roll-out and communicated to those affected. It aligns with Governing Principle Sub-elements 2.5 Management of Change and 9.2 Management System Document Review.


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Management System Communications


1 POLICY

Processes must be in place to ensure internal information that requires formal communication is identified and managed.

2 PURPOSE

The purpose of this policy is to ensure personnel are provided with appropriate and accurate information needed to meet their responsibilities.

3 SCOPE


4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for communicating management system information to those affected. It aligns with Governing Principle Sub-element 1.4 Communication.


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Managing External Communications


1 POLICY

Processes must be in place to ensure relevant information to and from external sources is collected, reviewed and communicated.

2 PURPOSE

The purpose of this policy is to ensure:

· Appropriate and/or required information is provided to external stakeholders

· Information from external sources is reviewed and made available and where appropriate incorporated into the Company Management System (CMS)

3 SCOPE

This policy applies to all Global Functions.

4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for communicating management system information to those affected. It aligns with Governing Principle Sub-element 1.4 Communication.


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Performance Monitoring and Improvement

Section 6

1 POLICY

Processes must be in place to establish and measure performance through the collection and analysis of data.

2 PURPOSE

The purpose of this policy is to improve performance by measuring results against established performance criteria.

3 SCOPE

This policy applies to all Company personnel and all personnel at Company Locations.

4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for ensuring appropriate Company information is collected and analyzed to identify improvement opportunities. It aligns with Governing Principle Sub-elements 9.8 Performance Monitoring and Analysis and 9.9 Organizational Learning and Improvement.


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Company Audits


1 POLICY

Processes must be in place to ensure Company audits are planned, performed, reported and reviewed.

2 PURPOSE

The purpose of this policy is to provide objective verification of conformance with Company Requirements and to identify opportunities for improvement.

3 SCOPE

This policy applies to all personnel at Company Locations and at selected Vendor locations.

4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for ensuring audits are planned, executed and followed up as required. It aligns with Governing Principle Sub-element 9.3 Audit.


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External Audits


1 POLICY

Processes must be in place to ensure external audits are planned, performed, reported and reviewed.

2 PURPOSE

The purpose of this policy is to ensure compliance with external requirements and identify opportunities for improvement.

3 SCOPE


4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for ensuring audits are planned, executed and followed up as required. It aligns with Governing Principle Sub-element 9.3 Audit.


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Assessments


1 POLICY

Processes must be in place to ensure assessments are planned, performed, reported and reviewed.

2 PURPOSE

The purpose of this policy is to evaluate the results of Company activities and improve operations through Subject Matter Expert (SME) and workforce collaboration.

3 SCOPE


This policy also applies to Service Providers that perform assessments on behalf of the Company.

4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for ensuring assessments are planned, executed and followed up as required. It aligns with Governing Principle Sub-element 9.4 Assessment.


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Verifications


1 POLICY

Processes must be in place to verify compliance with Company Requirements.

2 PURPOSE

The purpose of this policy is to verify personnel’s knowledge and understanding of, and compliance with, Company Requirements.

3 SCOPE


4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for ensuring verification activities are planned, executed and followed up as required. It aligns with Governing Principle Sub-element 9.5 Verification.


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Reporting Nonconformities


1 POLICY

Processes must be in place to identify and report nonconformities.

2 PURPOSE

The purpose of this policy is to define the controls and responsibilities for addressing nonconformities and to ensure responses are appropriate to the severity of the nonconformities and effects on the Company.

3 SCOPE


4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for ensuring nonconformities are reported for further action. It aligns with Governing Principle Sub-element 9.6 Control of Nonconformities.


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Root Cause Analysis


1 POLICY

A process must be in place for analyzing nonconformities to determine root causes.

2 PURPOSE

The purpose of this policy is to ensure a consistent root cause methodology is used and to prevent recurrence of nonconformities.

3 SCOPE


4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for ensuring nonconformities are properly investigated and actioned. It aligns with Governing Principle Sub-element 9.6 Control of Nonconformities.


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Corrective, Preventive and Improvement Actions


1 POLICY

A process must be in place to initiate and manage corrective, preventive and improvement actions.

2 PURPOSE

The purpose of this policy is to ensure that corrective, preventive and improvement actions are properly reviewed and approved to confirm they add value to the Company, are implemented as required, and are verified for effectiveness.

3 SCOPE


4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for ensuring nonconformities and improvement opportunities are actioned as required. It aligns with Governing Principle Sub-element 9.7 Corrective and Preventive Action.


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Exemptions


1 POLICY

A process must be in place to manage Exemptions from defined Company Management System (CMS) requirements.

2 PURPOSE

The purpose of this policy is to ensure that an approved alternate procedure or requirement is used when a defined CMS requirement cannot be complied with, while meeting the intent of the original requirement.

3 SCOPE


4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for ensuring exemptions are reviewed and approved by appropriate approval authorities. It aligns with Governing Principle Sub-element 9.6 Control of Nonconformities.


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Management Review

Section 9

1 POLICY

A process must be in place to ensure Company results are reviewed with management at defined intervals.

2 PURPOSE

The purpose of this policy is to periodically evaluate the effectiveness of the Company Management System (CMS) and identify opportunities for improvement.

3 SCOPE

This policy applies to Global Function and Operations Area Directors, and Executive and Senior Management.

4 REQUIREMENTS

SECTION REDACTED NON-CONFIDENTIAL SUMMARY OF INFORMATION: This section outlines the procedures for sharing Company information to Executive Management, ensuring management system effectiveness and identifying improvement opportunities. It aligns with Governing Principle Sub-element 9.10 Management Review.


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Glossary

Section 10

Advisory Formal notification to affected parties of changes to controlled documents.

After Action Review A review by people who participate directly in an activity to improve work process performance and results after work is completed.

As Low As Reasonably Practicable (ALARP)

Description of a level of risk indicating that the additional cost, effort or time of applying further controls would be disproportionate to additional risk reduction achieved.

Alert, Level 2 An Alert which communicates information specific to a Country that requires a formal plan using FOCUS.

Assessment A process, conducted by Location personnel and management in conjunction with Company Subject Matter Experts or Service Providers, which evaluates people, activities, facilities, systems or equipment against Company Requirements and identifies opportunities for improvement.

Audit Formal, independent evaluation of a process or management system to ensure compliance to requirements.

Audit Plan Description of the activities and arrangements for an audit.

Audit Program Arrangements for a set of one or more audits planned for a specific timeframe and directed towards a specific purpose.

Bulletin Announcement intended for sharing information with a targeted audience that does not require a formally tracked action plan.

Company Transocean Ltd. and its subsidiaries.

Company Audit Audits conducted by Company personnel or Service Providers contracted by the Company on Company Locations to verify compliance with Company Requirements and ensure the effectiveness of the management system, (i.e., Internal Audits, Management System Audits).

Company Management System

A framework of inter-related processes used to establish policy and objectives and to achieve those objectives. The Company Management System includes: organizational structure, planning activities, responsibilities, practices, procedures, processes and resources.

Company Requirements Company expectations, policies and procedures and where applicable, Customer’s agreed upon requirements, standards, codes and legal requirements, including statutory and regulatory.


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Glossary

Section 10

Continual Improvement An ongoing effort to improve product, services, or processes carried out in order to enhance performance.

Controls, Risk Management

Policies, procedures, standards, work practices, or hardware used to either eliminate or reduce risk.

Controlled Document Documents developed by the Company to meet the requirements specified in the Governing Principles. Controlled documents fall into one of the following types: Governing Principles and Global Function Policy manuals including procedures, handbooks, standards or recommended practices; document outputs resulting from any of the above requirements; or external documents which support the execution of Company operations.

Controlled Document Repository

Electronic Location for the publication of controlled documents within the Company.

Corrective Action Action taken to eliminate an identified deficiency or nonconformity and their causes to prevent reoccurrence.

Cross-functional Controlled Document Review

An evaluation of a controlled document by targeted Global Function and operations area personnel to ensure proposed changes do not contradict or conflict with existing requirements and are understood.

Cumulative Risk Increased risk due to the additive effects of separate, but related hazards.

Division Verification Process used by the Rig Manager to confirm the accuracy of the results of a Self-Verification.

Document Control Page Used to verify that the controlled document has been prepared, reviewed and approved by authorized personnel and includes a record of the revisions for a particular issue of a manual.

eDocs Electronic repository for Level 1, 2 and specified Level 3 controlled documents.

eDocs Notification E-mail notice that a change to a specific document has been published to eDocs. Notifications are only available through subscription.

End User Individuals who have identified responsibilities within the management system.

End User Matrix Table that attributes roles and job titles to responsibilities within the management system by manual.


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Glossary

Section 10 Enterprise Risk Management

The methods and processes used by the Company to manage critical business risks.

Executive Management Executive Management is President and CEO; Executive Vice President, Chief Operating Officer; and Executive Vice President, Chief Financial Officer.

Exemption Approval to use an alternate procedure or requirement when a management system requirement cannot be met.

External Audit Audits conducted by external parties on Company Locations to verify compliance with internal and/or external requirements.

External Communications

Any information from Customer, Vendors, regulators or other third parties that may impact the Company Management System and its operations, and any Company information that may impact Customers, Vendors or regulators.

External Documents Documents that are developed by parties outside the Company; for example, Customer, Suppliers, regulatory bodies, standard organizations.

Feedback Monitor Tool for managing feedback from Company personnel regarding management system documents and applications.

Focal Point An individual responsible for the coordination of activities and tasks among a group or several groups.

FOCUS (Application) Company system for the planning, tracking, approval and close-out of corrective, preventive and improvement actions.

Function Discrete disciplines or department within a Global Function

Global Function The core disciplines within the Company for organizing, conducting and managing the business; for example, Finance.

Global Function Process Owner

Director level individual within a Global Function with the responsibility of defining the requirements and processes necessary to meet Senior Management’s policies and expectations.

Global Management System (GMS)

Company’s electronic reporting system.

Goal High level statement of what the Company wants to do and/or be. Goals should be measurable.


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Glossary

Section 10

Hazard Anything that has the potential to cause harm to people and the environment; property loss or damage; business or financial loss; or damage to reputation.

Human Factors Organizational and job factors, and human and individual characteristics, which influence behavior in a way which can affect outcomes.

Improvement Action Action taken to optimize systems, equipment or processes to achieve more efficient and/or effective results.

Key Performance Indicator

Metric by which an organization measures the quality of the functioning of its processes, service or MODUs. Typically related to Safety, Operations, Maintenance and Finance.

Key Step Measures A measure used to track and benchmark operation activities carried out during the Well Construction process.

Latent Condition An existing, non-hazardous condition that becomes a hazard only when combined with other conditions or actions.

Legal Requirement Obligation imposed on an organization, including those that are statutory or regulatory.

Location An Office, Facility or Installation

Maintenance Equipment Alert

Information issued by the Company as the result of an internal or Original Equipment Manufacturer (OEM) technical change that requires actions that are entered into the Company’s Rig Management system (RMS)

Management of Change Process used to ensure risks associated with change are effectively managed.

Management Review A formal review of Company results by Executive and Senior Management to determine the effectiveness of the management system.

Management System A framework of processes used by an organization to achieve its objectives.

Management System Feedback

Comments or questions about defined requirements within the management system submitted to Global Function Process Owners for review, response and/or action.


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Glossary

Section 10

Management System Governance Board

A cross-functional team comprised of Senior Management responsible for reviewing changes to the Governing Principles; addition or removal of Level 1 manuals or Global Function policy; or change to the management system structure or format.

Management System Implementation

The process undertaken by End Users of complying with new or revised management system requirements.

Management System Rollout

The process undertaken by Global Function Process Owners to effectively communicate management system changes to End Users.

Metric A standard of measurement.

Mitigating Controls Controls that reduce the consequences of an incident if preventative controls fail or are not effective.

Newsletter An informal method for communicating timely and instructional information by e-mail to a defined audience.

Nonconformity A nonfulfillment of a specified Company Requirement.

Objective Specific measurable activity intended to accomplish or achieve a goal.

Obsolete Documents Documents that have been superseded by a current version or archived.

Operational Alert Any operational communication requiring actions and a formal acknowledgement of receipt by the OIM. (Maintenance Equipment Alerts are not included in this definition).

Organizational Change Management

Consideration given to the impacts on employees and other stakeholders when major changes are made to the Company, such as changes in personnel or organization structure.

Performance Analysis Objective interpretation of the meaning of data.

Performance Criteria A metric which sets a level of performance that is either acceptable or unacceptable.

Performance Evaluation Subjective judgment about the quality of the performance results.

Performance Standard (Metric)

Metrics which set a level of performance required to manage major hazards.

Periodic Controlled Document Review

A comprehensive review of a manual scheduled every three years from the effective date to ensure the manual remains accurate, current and relevant.


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Glossary

Section 10

Permanent Change Any change where there is no intention to return to the previous state or condition.

Policy Senior management expectations requiring strict adherence in order to support a Company Management System objective (policy).

A collection of related Company policies (Policy manual).

A statement of Senior Management’s commitment to a Global Function’s fundamental expectations in support of the Company vision, (Global Function Policy Statement, for example, HSE Policy Statement).

Preventive Action Action taken to prevent the occurrence of a potential nonconformity.

Preventive Control Control that minimizes or eliminates risk by reducing the likelihood.

Process Owner A person responsible for the development of management system documents for a specified Global Function.

Product Information Bulletin

Information from an Equipment Manufacturer about a specified piece of equipment used at the Company’s installations or facilities.

Qualitative Risk Assessment

Risk assessment where the likelihood and severity ratings used are descriptions, not numerical data.

Quantitative Risk Assessment

Risk assessment where the likelihood and severity ratings used are based on numerical data.

Quick Share A preliminary report of initial facts and findings resulting from an incident.

Residual Risk Risk that remains after preventive and mitigating controls are applied. Additional controls are applied until residual risk is acceptable.

Rig Maintenance System (RMS)

Computerized software management of maintenance.

Risk The possibility of suffering a specified level of loss, damage or harm. Risk is the product of the likelihood and severity.

Risk Assessment The process of evaluating the risk associated with the identified hazards against established criteria.

Risk Management The process of identifying hazards and reducing the risk.

Root Cause An identified cause for the presence of nonconformity. The most basic cause, which if eliminated, would prevent recurrence.

Senior Management Senior Vice Presidents and Vice Presidents.


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Glossary

Section 10

Subject Matter Expert (SME)

Focal Point in a certain area of knowledge.

Target Quantified statement of progress toward a goal or objective at a specified time.

Templates An electronic document that has a defined format that can be used to create a document or form multiple times.

Temporary Change Any change to a Location, system, equipment, management system, Company, etc., that will be restored to its previous state within a defined period of time.

Vendor Audits Audits conducted by Company personnel or Service Providers contracted by the Company Locations to verify compliance with Company Requirements, i.e., Global Vendor Quality Audits.

Verification Self-evaluation of a process or management system to ensure compliance to requirements.


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