UMM LULU FIELD DEVELOPMENT PROJECTS PHASE – II Package # 2

BID NO: E-2591-12

NON CONFORMANCE CONTROL PROCEDURE

DOCUMENT NO:

_________________________________

DOCUMENT REVIEW STATUS

1: Approved work may proceed

Approved with Comments Work may Proceed

2:
Subject to Implementation
Rejected Work may not Proceed Revise and
3:
Resubmit Incorporating Comments

4: For Information Only

SWIBER ADMA
Rev
Date Issue Type Originated Checked Approved Approved
No. Date Date Date
By By By By

A 14 Mar 12

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REVISION HISTORY

REV
DATE DETAILS OF CHANGE PAGE
NO.

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TABLE OF CONTENTS
1 PURPOSE ................................................................................................................................................4
2 SCOPE .....................................................................................................................................................4
3 ABBREVIATIONS, DEFINITIONS AND REFERENCE DOCUMENTS ..................................................4

3.1 ABBREVIATIONS ..............................................................................................................................4

3.2 DEFINITIONS ...................................................................................................................................5
3.3 REFERENCE DOCUMENTS ................................................................................................................5
4 RESPONSIBILITIES ................................................................................................................................5

4.1 PROJECT QA/QC MANAGER ............................................................................................................5

4.2 QC COORDINATOR OR QA/QA/QC SUPERVISOR..............................................................................6
4.3 DOCUMENT CONTROLLER ................................................................................................................6
4.4 HEAD OF DEPARTMENT / ACTION PARTY...........................................................................................7
5 PROCEDURE...........................................................................................................................................7

5.1 IDENTIFICATION & SEGREGATION OF NON-CONFORMING PRODUCT ...................................................7

5.2 HANDLING OF NON-CONFORMING PRODUCT .....................................................................................7
5.3 INITIATION OF NON-CONFORMANCE REPORT ....................................................................................8
5.4 PROPOSED ACTION .........................................................................................................................8
5.5 REPAIR RE-WORK OR REMEDIAL ACTION ..........................................................................................8
5.6 ACCEPT AS “FIT FOR PURPOSE” ......................................................................................................8
5.7 RE-GRADE FOR ALTERNATE USE......................................................................................................9
5.8 SCRAP AND REPLACE ......................................................................................................................9
5.9 CORRECTIVE ACTION ......................................................................................................................9
5.10 ASSESSMENT OF PROPOSED ACTION ...............................................................................................9
5.11 COMPLETION OF AGREED ACTION ..................................................................................................10
5.12 FOLLOW UP AND CLOSE OUT OF NCR ............................................................................................10
6 COMPANY ISSUED NCR ......................................................................................................................10
7 NON CONFORMANCE AT SUPPLIERS PREMISES...........................................................................10
8 NON-CONFORMANCE REGISTER ......................................................................................................10
9 REVIEW OF CORRECTIVE ACTIONS .................................................................................................11
10 QUALITY CONTROL DATA PACKAGE ...............................................................................................11
11 ATTACHMENTS ....................................................................................................................................11

© This document is the property of Swiber Offshore Construction Pte. Ltd. No part of this document may be reproduced or transmitted in any form or by any means, or used for any purpose other
than that which it is specifically furnished without the written consent of Swiber Offshore Construction Pte. Ltd.

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1 PURPOSE

This procedure details the process for the logging and management of Non-conformances identified
within Swiber, at company project sites and subcontractor / supplier sites. It shall be applied to all non-
conformances discovered after the following checks.

 Project Management Activities

 Production and/or installation activities
 Company non-conformance claims and or notes.

2 SCOPE

This procedure specifies the minimum requirements for the Identification and resolving satisfactorily all
the instances of non-conformance. It also systematically describes the control activities, related
responsibilities, which are required in order to handle the non-conforming products.

3 ABBREVIATIONS, DEFINITIONS AND REFERENCE DOCUMENTS

3.1 ABBREVIATIONS

Company ADMA OPCO

Client Samsung Engineering Company Ltd

SWIBER SWIBER Offshore Construction Pte. Ltd.

Subcontractor Refers to any Vendors to whom SWIBER intends to subcontract

any part of the work

QMS Quality Management System

QA/QC Quality Assurance / Quality Control

NCR Non Conformance Report

CAR Corrective Action request

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3.2 DEFINITIONS

Non conformance Any material, component, equipment service or activity, which does
not conform to specified requirements.

Corrective Actions Action taken to eliminate the cause of a detected nonconformity in

order to prevent recurrence.

Preventive Action Action taken to eliminate the cause of potential nonconformities in

order to prevent their occurrence.

Concession Deviation from a specified requirement.

Re-work The process by which a non-conforming item is corrected to

conform to a specified requirement.

Repair The process by which a non conforming item is restored to an

acceptable state

Scrap A non conforming product which cannot be repaired reworked or in

any other way used for its intended purpose.

Product Material, Components, Equipments, Products and Sub-Contracted

Parts, In-process parts or Sub-assemblies and services by
contractual agreement herein shall be referred as “Products”

3.3 REFERENCE DOCUMENTS

ISO 9001:2008 Quality Management Systems – Requirements

SP-1009 Specification for Requirements for Projects Contractor

Quality System

XX-XXX-00-SWIB-000000 Project Quality Plan

4 RESPONSIBILITIES

4.1 PROJECT QA/QC M ANAGER

 Shall be responsible for the SWIBER Project Quality Management System and its effective
implementation. He shall ensure that all QA/QC activities are performed in accordance with
COMPANY approved quality control plan.

 Ensures that the non-conforming products are handled as per clause 5.2 of this procedure.

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 Reviews, investigates and resolves all Non conformances received from COMPANY and internally
raised major NCRs, related to product/ process correction brought to his notice.

 Advise the Head of Department / Action Party for the appropriate disposition of non-conforming
product.

 Shall ensure that a master register for all NCRs from all locations indicating the current status are
maintained and updated.

 Responsible to carry out audits in accordance with the approved audit program.

 Should identify & record any products and/or any process that do not conform to the specified
requirements and raise an NCR, follow up and close out.

 Shall resolve any NCR, related to product correction and for its corrective actions.

 Follow up of final close-out of the NCR’s raised at work sites by QA/QC Supervisor / Senior
Inspector and or other party upon their re-inspection or by reviewing the documented evidence.

4.2 QC COORDINATOR OR QA/QA/QC SUPERVISOR

 Shall ensure inspection and testing are carried out as per applicable quality plan requirements.

 Shall Identify non-conforming product, raise NCR, investigate and record the root (underlying)
causes and complete section 1 of the NCR and Corrective Action Request form FM_QC_009_R0.

 Assess the proposed actions and ensures the action proposed is adequate. He shall then complete
section 2 of the NCR and Corrective Action Request form FM_QC_009_R0.

 Re-inspect the product after correction and ensure the corrected product is fit for its intended
purpose in accordance with the approved documented requirements.

 Shall then fill in and acknowledge part 4 of the NCR and Corrective Action Request form
FM_QC_009_R0.

 Shall maintain a register indicating the current status of each issued NCR’s from that particular
work site and shall forward the same to the Project QA/QC Manager on a weekly basis.

4.3 DOCUMENT CONTROLLER

 Shall issue unique NCR reference number for all locations.

 Shall maintain a master register for all NCR from all locations showing the current status including
non-conforming reports.

 Shall maintain a separate master register by indicating the current status for the COMPANY issued
NCR.

© This document is the property of Swiber Offshore Construction Pte. Ltd. No part of this document may be reproduced or transmitted in any form or by any means, or used for any purpose other
than that which it is specifically furnished without the written consent of Swiber Offshore Construction Pte. Ltd.

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 Shall maintain a copy for all NCR & Records of the non-conforming products and subsequent
actions taken and their close out status.

4.4 HEAD OF DEPARTMENT / ACTION PARTY

 Shall review the non-conformity description, investigate and resolve all instances of non-
conformance ASAP, and initiate corrective actions to correct the product and to prevent recurrence
in the future.

 Shall propose disposition actions in conjunction with the Project QA/QC Manager or the person
nominated by him.

 Shall carry out agreed actions as indicated on the NCR within the proposed time frame.

5 PROCEDURE

5.1 IDENTIFICATION & SEGREGATION OF NON-CONFORMING PRODUCT

After identifying the non-confirming items, it shall be tagged with label or wrapping an identification
tape around. Segregate them in order to prevent them from being used, inform the Discipline
Supervisor and fill out the NC Report.

Each non-conforming product shall be segregated or isolated in a location set aside for this purpose
where practicable.

5.2 HANDLING OF NON-CONFORMING PRODUCT

The non-conforming product is handled in one of the following ways.

 By taking action to eliminate the non-conformity.

 By accepting product under concession by relevant authority from SWIBER in consultation and by
raising Technical Query / Deviation Request to the COMPANY.

 By re-grading the product to preclude its original intended use.

 By scrapping the non-conforming product & replacing with new product.

 Repaired or Re-worked Product shall be re-inspected in accordance with the original Quality
Control Plan or with approved documented procedures by which it was inspected initially.

 Non-Conformances observed during construction activities at offshore locations shall be recorded

for all actions taken up to close out of the NCR and the records shall be maintained.

© This document is the property of Swiber Offshore Construction Pte. Ltd. No part of this document may be reproduced or transmitted in any form or by any means, or used for any purpose other
than that which it is specifically furnished without the written consent of Swiber Offshore Construction Pte. Ltd.

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5.3 INITIATION OF NON-CONFORMANCE REPORT

 Originator of NCR shall record the non-conformance in section 1 of the NCR and Corrective Action
Request form FM_QC_009_R0 on “what it is and what it should be” basis, and by describing the
relationship to the applicable standard, specification or code.

 Investigate the non-conformance and record the root cause thereof in conjunction with Project
QA/QC Manager or the person nominated by him at work site as applicable.

 The action party, to whom the NCR has been issued, shall review the same and sign at part-1 to
signify his acceptance of the non-conformity

5.4 PROPOSED ACTION

The discipline supervisor or head of department shall propose the disposition of the non-conforming
product in conjunction with Project QA/QC Manager or the person nominated by him by filling part “2”
of the NCR and Corrective Action Request form FM_QC_009_R0 from one of the remedial actions
indicated, adding explanatory notes if necessary, and then signs it.

The Project QA/QC Manager or his assigned field expert engineer shall consult COMPANY technical
authorities for critical decision making where applicable.

The disposition action shall be one of the following:-

 Repair/re-work or take remedial action to correct the product so as to be acceptable to the

specified requirements.

 Accept as “Fit For Purpose”

 Re-grade product to preclude its original intended use or for its alternate use.

 Scrap or return the product for replacement.

5.5 REPAIR RE-WORK OR REMEDIAL ACTION

The Head of Department or Action Party shall propose the method of repair or re-work in conjunction
with Project QA/QC Manager or the person nominated by him. He shall seek technical advice where
required for a suitable repair or re-work or remedial actions method from appropriate field expert
Engineer.

The Head of Department or Action Party shall also propose a reasonable time frame for completion of
remedial action. He shall then complete part 2 of the NCR and return the NCR to Project QA/QC
Manager or the person nominated by him for assessment.

5.6 ACCEPT AS “FIT FOR PURPOSE”

The Site Superintendent / Fabrication Coordinator or Head Of Department or Action Party evaluates
the non-conformed product to be of minor nature and considers that repair or re-work is not necessary,
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then he shall justify it in conjunction with Project QA/QC Manager or the person nominated by him to
accept as it is, stating that the non-conformed product is still fit for the purpose. “Fit for Purpose”
decision requires COMPANY approval. However, appropriate corrective action shall be taken to
prevent recurrence of the same.

When a decision is made “Accept as is” in order to use the non-conforming product, an engineering
justification shall be arranged stating that the product is “Fit For Purpose” through SWIBER project
group and a written approval for the said concession shall be sought from COMPANY.

5.7 RE-GRADE FOR ALTERNATE USE

The Head of Department or Action Party evaluates in conjunction with Project QA/QC Manager or the
person nominated by him, that the rejected product cannot be repaired and used for the intended
purpose. In order to use the non conforming product, it may be determined to alter & re-grade it to use
for another purpose precluding its original intended use.

A written approval for the above said “Re-grade for alternate use” shall be sought from the COMPANY
authorities through a documented correspondence justifying the reasons why the product cannot be
repaired and why it is necessary to use for the alternate purpose.

5.8 SCRAP AND REPLACE

The Head Of Department or Action Party evaluates in conjunction with the Project QA/QC Manager or
the person nominated by him, that the rejected product can neither be repaired and used for the
intended purpose nor can be used for alternate purposes. In this circumstance, it may be determined
to remove and scrap the non-conforming product from the site. However, the product shall be suitably
replaced in an appropriate time frame.

COMPANY shall be informed through documented correspondence, in case it is recommended to

scrap and replace the non-conforming product.

5.9 CORRECTIVE ACTION

While proposing actions and approving to handle the non-conforming products, the appropriate
corrective actions also shall be specified where applicable by the Head Of Department or Action Party
in conjunction with Project QA/QC Manager or the person nominated by him:-

 Immediate corrective action shall be taken to correct the product so that it shall be acceptable to
the specified requirements.

 Appropriate corrective actions shall be taken in order to avoid the recurrence of the nonconformity.

5.10 ASSESSMENT OF PROPOSED ACTION

The Project QA/QC Manager or the person nominated by him seeks advice from field experts
depending on the nature of technical problems involved for critical resolution of the NCR.

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However QA/QC Supervisor / Senior Inspector are authorized to make assessment of proposed
corrective actions at work site and sign in part two of NCR box.

5.11 COMPLETION OF AGREED ACTION

The Head of Department or Action Party shall ensure timely execution of the agreed corrective actions
specified on the NCR and complete part 3 of the form. Where repair / re-work or remedial action is
proposed, it shall be carried out following the original procedure and closely monitored by the QA/QC
Inspectors.

If COMPANY Specification calls for a repair procedure, then the repair or re-work shall be executed
using repair procedure.

5.12 FOLLOW UP AND CLOSE OUT OF NCR

The QC Coordinator / QA/QC Supervisor/ Senior Inspector shall follow up all agreed corrective actions
and re-inspect the product and shall ensure that it has been corrected to the specified requirements
where applicable and that the approved disposition has been implemented. He shall then complete
and sign part 4 of NCR at the re-inspection box.

The Project QA/QC Manager shall review the NCR and close out the NCR if the resolution of NCR is
correctly carried out as per this procedure.

6 COMPANY ISSUED NCR

The Project QA/QC Manager shall review all NCRs from COMPANY investigate and resolve the
issues to close-out NCRs.

7 NON CONFORMANCE AT SUPPLIERS PREMISES

Non-conformance identified through surveillance inspection / external audits at the Suppliers premises
shall be recorded & controlled by issuing Corrective Action Request. The CAR shall be followed up for
its close out and resolved in a reasonable time frame.

The suppliers shall also review, investigate & resolve any non-conforming product using their own
internal quality management system where possible and reasonably practicable.

8 NON-CONFORMANCE REGISTER

The Document controller shall maintain a NCR master register. He / she shall record all unique
reference numbers for all NCRs received from all work locations showing the current status, actions
taken and close out status.

Separate register will be maintained by the Document Controller showing similar details of NCRs from
COMPANY and CARs raised as a result of findings at the supplier’s premises.

A copy of master register for NCRs will be forwarded to COMPANY as and when required.

© This document is the property of Swiber Offshore Construction Pte. Ltd. No part of this document may be reproduced or transmitted in any form or by any means, or used for any purpose other
than that which it is specifically furnished without the written consent of Swiber Offshore Construction Pte. Ltd.

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9 REVIEW OF CORRECTIVE ACTIONS

The Head of Department or Action Party in conjunction with the Project QA/QC Manager or the person
nominated by him shall investigate the cause of the non-conformity and decide on the
corrective/preventive actions to be taken. Any investigation results / reports / records made in case of
major non-conformity, shall be attached to the NCR. The cause of non-conformity and proposed
corrective / preventive actions, with the target completion date shall be documented in the NCR and
Corrective Action Request form FM_QC_009_R0.

The QA/QC Supervisor/ Senior Inspector shall forward the copy of the NCR to the Project QA/QC
Manager when part two of the NCR/CAR (Proposed Disposition) is completed. Later shall review and
propose alternate corrective actions at the event that the action proposed are not adequate to prevent
future recurrence.

In the case of a Major NCR raised either by SWIBER or COMPANY or external third party, the Project
QA/QC Manager shall monitor the implementation of corrective actions by the relevant line department
and close out the NCR upon satisfactory implementation of the corrective actions.

10 QUALITY CONTROL DATA PACKAGE

The original NCR raised shall be compiled in the relevant Quality Control Data Package as applicable.
A copy of the closed out NCR shall be kept at file.

11 ATTACHMENTS

FM-QC-009 NCR and Corrective Action Request

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than that which it is specifically furnished without the written consent of Swiber Offshore Construction Pte. Ltd.

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QA/QC DEPARTMENT
Rev No. 0
Non-Conformance Report and Corrective Action Request

NON-CONFORMANCE REPORT

CORRECTIVE ACTION REQUEST

Audit Customer Complaint Inspection/Test

NCR/CAR No. Company Audited / Inspection

Date Department

Work Order No. Location

Ref. Cont. Docs/Specs/Std's Specify Title/Section/Clause:
Item Description

MINOR NCR MAJOR NCR

1. NONCONFORMITY DESCRIPTION
Discipline
Quality System
Material
Equipment
Welding
Painting
Hydrotest
Fabrication
E&I
Purchasing

Specify if others

ROOT CAUSE:

NCR Raised By Action Party

Name
Designation
Sign
Date
2. PROPOSED DISPOSITION

Repair or Rework/Remedial
Accept as "Fit For Purpose" Regarde for alternate use Scrap & Replace
Action
Describe recommended immediate actions to correct the product and corrective actions to prevent non-conformities where applicable.

Provided justification for actions other than repair or rework

Proposed date of
completion

Disposition Proposed by Disposition Assessed by

(Department Head/Discipline Head) (Snr. Inspector /QA/QC Manager/QA/QC Coordinator)
Name
Designation
Sign
Date
3. EXECUTION OF AGREED CORRECTIVE ACTION
Describe immediate actions taken to correct the product. State action taken to eliminate or to prevent such nonconformance in future.

Department/Discipline Head
Actual Date of Completion
(Name/Sign/Date)

4. CLOSE OUT OF NCR

Verify that the stated actions have been executed and that such action has resolved this NCR.
Comment if required:

Actions verified by the undersigned and acceptable to requirements: YES NO

Reinspected by Reviewed by QA/QC Manager
Name
Sign
Date