1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.

pdf

Practice 000.450.1600
Date 27Jan2021
Supplier Quality Surveillance
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

1.0 PURPOSE
This practice establishes the requirements for the preparation and issue of Supplier Quality
Surveillance (SQS) Reports.

2.0 APPLICATION
This practice is applicable to all projects where SQS personnel are performing supplier quality
surveillances, including reporting, verification and issue of SQS reports.

3.0 INTERFACING DISCIPLINES

Project Surveillance Manager (PSM)
Project Surveillance Coordinator (PSC)
Surveyor
Project Procurement Manager (PPM)
Logistics
Project Quality Manager (PQM)
Responsible Engineer (RE)
Construction Quality Manager
Client

4.0 DEFINITIONS
See glossary at the end of this practice

5.0 This section has been left intentionally blank

6.0 REQUIREMENTS
6.1 The PSM / Surveyor will assign a number to all SQS reports according to Attachment 01,
SQS Report Numbering System.

6.2 The PSM / Surveyor will hold the Supplier Quality Alignment Meeting (SQAM) and issue
the Alignment Meeting Report (AMR) to document the results of the meeting in
accordance with Attachment 02, Supplier Quality Alignment Meeting and Report.

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1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.pdf

Practice 000.450.1600
Date 27Jan2021
Supplier Quality Surveillance
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

6.3 The PSM / Surveyor will issue SQS Surveillance Reports in accordance with Attachment
03, SQS Surveillance Reports.
Prompt reporting is essential to keep project informed regarding quality surveillance activities.
Reports are to be generated utilizing the predefined templates available in Word format for the
specific commodity type. An Excel spreadsheet is also completed by the Surveyor which is
used by the PSM to update the surveillance information in MatMan.

6.4 The PSM / Surveyor will issue Non-Conformance Reports for identified
nonconformances, and also the associated Non Conformance Release Reports when
the nonconformance has been resolved, in accordance with Attachment 04, Non-
Conformance Report / Non-Conformance Release Report (NCR/NCRR).

6.5 The PSM / Surveyor will issue Supplier Observations when warranted in accordance
with Attachment 05, Supplier Observation Reports.

6.6 The PSM / Surveyor will issue the SQS Release Report for each Purchase Order once all
surveillance activities have been completed in accordance with Attachment 06, Supplier
Quality Surveillance (SQS) Release Report.

6.7 The assigned Surveyor will verify that all necessary documentation has been sent to the
PSM at the completion of the assignment.
Typically, documentation includes:

Final SQS Surveillance Report

Nonconformance releases (if applicable), Non-conformance Report / Non-conformance

Release Report (NCR/NCRR)

Final SQS Release Report

Measurement of Supplier Performance, Form 000.420.F1701 (if applicable)

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1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.pdf

Practice 000.450.1600
Date 27Jan2021
Supplier Quality Surveillance
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

7.0 SUPPORTING RESOURCES

Attachment
Attachment 01 SQS Report Numbering System
Attachment 02 Supplier Quality Alignment Meeting (SQAM) and Report (AMR)
Attachment 03 SQS Surveillance Reports (SRs)
Attachment 04 Non-Conformance Reports / Non-Conformance Release Reports (NCR/NCRRs)
(01Aug18)
Attachment 05 Supplier Observation Reports (SORs)
Attachment 06 SQS Release Reports (RRs)
Refer to Section 9 for more information.

8.0 SUPPORTING KNOWLEDGE

Practices
Practices 000.450.1521 Surveillance Assignments.pdf
Practices 000.200.0077 Criticality Rating System.zip

9.0 ATTACHMENTS, ADDENDA, WORK INSTRUCTIONS

Addenda
Not Used
Attachment
Attachment 01 SQS Report Numbering System
Attachment 02 Supplier Quality Alignment Meeting (SQAM) and Report (AMR)
Attachment 03 SQS Surveillance Reports (SRs)
Attachment 04 Non-Conformance Reports / Non-Conformance Release Reports (NCR/NCRRs)
(01Aug18)
Attachment 05 Supplier Observation Reports (SORs)
Attachment 06 SQS Release Reports (RRs)
Work Instructions
Not Used

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1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.pdf

Practice 000.450.1600
Date 27Jan2021
Attachment 01
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

01 SQS REPORT NUMBERING SYSTEM

Every SQS Report has its own alphanumeric numbering system.
There cannot be more than one report number "01" per document type.
The following prefix and numbering system will be applied to the applicable Report templates.

Report Name Prefix Numbering Sequence

Surveillance Assignment
SAI Not applicable
Instructions
Assignment Transfer AT 01, 02, 03, etc.
Assignment Instruction Revision AIR 01, 02, 03, etc.
A, B, C, etc. - Use alpha for RFQs
Quality & Certification Requirements QCR -or-
01, 02 , 03, etc. - Use numeric for POs
Supplier Quality Alignment Meeting
AMN 01, 02, 03, etc.
Notice
Supplier Quality Alignment Meeting AMR 01, 02, 03, etc.
Report
Assignment Acknowledgement AA Not applicable
Supplier Quality System Evaluation SQSE Not applicable
Non-Conformance Report NCR 01, 02, 03, etc.
Non-Conformance Release Report NCRR 01, 02, 03, etc. - Use same number as for the
associated NCR
Supplier Observation Report SOR 901, 902, 903, etc. - Sequential numbering with a
prefix of “9”
Surveillance Report SR 01, 02, 03, etc.
Surveillance Waiver Report SW 01, 02, 03, etc.
Surveillance Release Reports RR 01, 02, 03, etc.

Note: There are to be NO dashes, underscores, or spaces in report numbering

(e.g., SR01, SR02, NCR01, NCR02, SOR901, SOR902, RR01, RR02).

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1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.pdf

Practice 000.450.1600
Date 27Jan2021
Attachment 02
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

02 SUPPLIER QUALITY ALIGNMENT MEETING (SQAM) AND REPORT (AMR)

1.0 PURPOSE
These instructions provide the requirements for conducting a Supplier Quality Alignment Meeting (SQAM) at the
Supplier's facility and issuing the Alignment Meeting Report (AMR).
The purpose of the meeting is to ensure that the Supplier and those involved in fabrication and monitoring the quality
of the equipment fully understand the PO scope of work and corresponding inspection and quality requirements.
The meeting also serves to confirm that Fluor's surveillance participation is incorporated into the Supplier's ITP.
The Surveyor uses this information to prepare for, conduct and report the results of the SQAM.
Note: This is sometimes referred to as the Pre-Inspection Meeting (PIM), but Supplier Quality Alignment Meeting is
the preferred term.

2.0 WORK PROCESS

2.1 The PSM will determine if an informal or formal Supplier Quality Alignment Meeting is required, and
then notify the assigned Surveyor.
Supplier quality alignment meetings are held on all POs requiring SQS with the exception of POs requiring
only a final surveillance visit prior to release.
The PSM will identify on the Assignment Instructions to the Surveyor when there is a need for a formal
SQAM for a particular PO based on the Criticality Rating (CR). CR1 and CR2 items always have a formal
alignment meeting, whereas CR3 and CR4 items generally have an informal alignment meeting unless
requested otherwise by the Client or Project Management.
For informal alignment meetings, the assigned Surveyor meets with the Supplier to review and confirm the
Supplier’s understanding of purchase order requirements with no other project team members anticipated in
attendance.
For formal alignment meetings, other project team members and the Client generally attend as discussed
further in subsequent sections.
2.2 The assigned Surveyor will review the Assignment Instructions and prepare the meeting Agenda.
The assigned Surveyor will review the assignment package to gain a thorough understanding of the PO
quality requirements, including:
• Verify that the PSM has received and reviewed the Supplier ITP before holding the SQAM, and that the
ITP is included in the assignment package.
• Highlight special requirements on all documents included in the assignment package.
• Review MatMan Supplier Evaluations and list past and potential surveillance problems with the
Supplier.
• List points the Surveyor feels will need clarification during the SQAM.

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1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.pdf

Practice 000.450.1600
Date 27Jan2021
Attachment 02
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

02 SUPPLIER QUALITY ALIGNMENT MEETING (SQAM) AND REPORT (AMR)

• Try to determine the level of knowledge or background of the Supplier's attendees prior to the meeting
by phone contacting the Supplier Quality Control Representative prior to the meeting and obtaining this
information.
• Prior to the meeting, if Client representatives are planning to attend, contact the home office to obtain
this same background information.
• Review the Purchase Order and become familiar with the type of Equipment / Material and Scope of
Work that is being purchased.
• Review Supplier drawing and data commitment requirements as listed in PO attachments and/or
specifications.
• Be thoroughly prepared to state exactly what the Supplier will furnish to Fluor, and when. If necessary,
make a separate checklist which can be followed, checking off the data requirements as they are
discussed.
• Review the typical Agenda on Form 000.450.F1610, Alignment Meeting Notice, and adjust if needed to
reflect the Purchase Order scope. A document number is assigned as per the numbering system in
Attachment 01 (typically AMN01).
2.3 The assigned Surveyor will schedule the meeting in coordination with the PSM and the Supplier, and
then issue the Agenda.
The Surveyor will schedule the meeting, with the following considerations:
• Contact the Supplier and schedule the meeting in the timeframe specified in the Assignment
Instructions.
• Send the Alignment Meeting Notice to the PSM with the specific date of the SQAM at the Supplier's
facility.
Note: Notifications are to be issued at least ten working days prior to the meeting date so that any
interested Engineering or Client personnel can make the necessary arrangements to attend
the meeting.
Note: For a formal SQAM, the date(s) for the meeting will be considered tentative in order to give all
interested Fluor / Client representatives the opportunity to confirm that the scheduled date is
acceptable.
The PSM will forward the meeting notice to the Project Buyer, who informs other participants who may want
to attend the meeting (such as the PSM, Responsible Engineer, Project Buyer, Client, and/or other project
personnel).
Once attendance by other project personnel is determined and communicated to the Surveyor by the PSM,
the assigned Surveyor will:
• Notify the Supplier if the scheduled date needs to be changed to accommodate Fluor / Client
attendance. The assigned Surveyor can work directly with the attendees to reach a mutually agreeable
date for all parties.

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1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.pdf

Practice 000.450.1600
Date 27Jan2021
Attachment 02
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

02 SUPPLIER QUALITY ALIGNMENT MEETING (SQAM) AND REPORT (AMR)

• Verify that Supplier has made room arrangements for the meeting, including teleconferencing if Fluor /
Client representatives will not be attending in person.
If a Fluor direct-hire Surveyor is assigned, the PSM also notifies their SQS Field Supervisor of the Alignment
meeting for CR1 or CR2 items.
2.4 The assigned Surveyor will conduct the Supplier Quality Alignment Meeting.
The assigned Surveyor will act as the chair of the meeting and will address all items listed in the Agenda
found on the issued Alignment Meeting Notice (000.450.F1610).
This will be the Surveyor's first opportunity to project his/her professionalism to all attendees. The following
notes are provided to assist the Surveyor in conducting the SQAM per the issued Agenda:
1. Introductions / Purpose of Meeting
• Present HSE (Health, Safety, Environmental) Topic
• Introduce the Fluor Surveyor as the Meeting Chair (Fluor SQS)
• Introduce the attendees – As each attendee is introduced, ask that they give a little information
on their background, such as years of service with their company, function or duty and their
relationship to the scope of work, i.e., what they will be doing on Fluor's purchase order, etc.
2. Shop Tour
• Assess fabrication facilities and quality of work in progress.
• Assess shop loading (current and future).
• Confirm all the locations at which the work will be performed.
3. Purchase Order Review / Scope of Supply
• Obtain the Supplier’s Shop Work Order number
• Ask the Supplier to provide an overview of the equipment / materials being furnished as part of
the scope of supply.
Note: As sometimes happens, Fluor may increase or decrease quantities before the Surveyor
is made aware of these changes. It is better to confirm up front if any changes in the
scope of supply were made.
• Determine if the Supplier may have a different interpretation of the Purchase Order scope of
work and resolve any differences with the Responsible Engineer during the meeting, or
document differences in the meeting notes as Action Items for later resolution.
• Highlight special Purchase Order requirements i.e., project site regulatory requirements, code
requirements, etc.
• Confirm receipt of the Acknowledgement from the Supplier and their review of applicable
specifications, data sheets, purchase order attachments, drawings, and codes and standards.

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1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.pdf

Practice 000.450.1600
Date 27Jan2021
Attachment 02
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

02 SUPPLIER QUALITY ALIGNMENT MEETING (SQAM) AND REPORT (AMR)

• Provide an explanation and review of the Supplier Drawing & Data Commitment (SDDC) form.
• Review and discuss Non-destructive Examination (NDE), testing, and welding requirements.
• If welding is involved as part of the subject order, be sure to have a clear understanding of the
requirements.
Example: If the welding specification requires that welder qualification tests are to be witnessed
by a Fluor Welding Engineer, then verify the Supplier is aware of this witness requirement and has
plans to contact the Fluor contact in sufficient time to witness the tests. This notification will
consider PO notification requirements.
Example: Frequently the Suppliers do not have facilities or capabilities to conduct the required
NDE, so it is normally sublet to an outside firm. The Surveyor will confirm that Fluor's
specification requirements are in the possession of the NDE subcontractor as well.
Example: If radiographs are to be reviewed, indicate to the Supplier the provision that radiographs
will be reviewed after the Supplier's Representative and/or the Code Inspector has had the
opportunity to review them first and that they are acceptable per the applicable specification
requirements / acceptance criteria.
• Identify deviations or concerns where clarifications are required and record in the meeting
minutes for action as appropriate.
• Advise the Supplier that all concessions or exceptions to the PO requirements are required to
be identified in writing and approved by Fluor through the Project Buyer. Without that, any
deviation will result in the issue of a Non-Conformance Report.
4. Review Project Specifications and Requirements
• Have the Client and/or Responsible Engineer highlight any unique specification requirements
which may differ from code or from the Supplier’s typical practice. (Note: The Surveyor should
also highlight those areas in the Surveyor’s copy of the specifications for reference during the
fabrication process.)
• Verify that the supplier has been provided the latest revisions to the applicable specifications,
data sheets, drawings, supplements and attachments, and is aware of the applicable codes
and/or standards.
• Verify applicable specifications, data sheets, PO attachments, drawings, codes and standards
(including applicable revision numbers). Minute supplier’s confirmation that they have received
and reviewed all referenced documents. Any exceptions to be noted in the meeting minutes.
• Review of Supplier's drawing and data commitment requirements.
5. Quality and Certification Requirements (Q&CR) Form
• Perform a line-by-line review of the Quality & Certification Requirements (Q&CR) form. Any
changes to the form will be noted in the meeting minutes.
6. Inspection and Test Plan (including Major Sub-Suppliers)

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1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.pdf

Practice 000.450.1600
Date 27Jan2021
Attachment 02
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

02 SUPPLIER QUALITY ALIGNMENT MEETING (SQAM) AND REPORT (AMR)

• Perform a line-by-line review of the Supplier’s Inspection and Test Plan to:
- Confirm that Supplier understands Fluor comments (if any)
- Confirm Fluor activities and Supplier notification requirements
7. Correspondence / Lines of Communication
• Review correspondence / lines of communication. Typically communication is through the
Surveyor or the Project Buyer unless another designated communication contact is identified.
• Provide / Obtain contact information for routing of engineering documentation, commercial
issues, etc.
• Provide / Obtain contact information for inspection notification.
• Confirm Supplier is aware of advance notification requirements (indicate number of days) for
Inspection Witness, Hold and Observation points, and the requirement for the Supplier’s QA/QC
acceptance prior to presentation for inspection.
8. Major Suborders for Equipment / Material
• Review Supplier's intended sub-ordered work plan (i.e., identification of equipment / material,
names of sub-suppliers and locations).
Example: Special materials, fabrications, nondestructive testing, charpy impact tests and/or other
surveillance related sub-ordered manufacturing functions or operations, such as sandblasting,
painting, special coatings or linings, etc.
• Advise Supplier that all major sub-suppliers will need Project Management approval before use.
• Confirm un-priced copies of suborders, and a list of suborders will be submitted to the project.
• Obtain and minute the Supplier’s agreement to include flowdown PO requirements in their sub-
orders and forward all relevant project specifications to their sub-suppliers.
Note: Frequently a surveyor can, by virtue of the equipment being ordered, determine what sub-
orders will be issued by the Supplier. Having predetermined knowledge will also enable
the Surveyor to list the applicable specifications that would pertain to these sub-orders for
discussion during the meeting.
• Verify that the Supplier is aware of their responsibility to relay all applicable quality
requirements to sub-suppliers.
• Verify the Supplier is aware of their responsibility to review and approve sub-supplier
documentation prior to submission to the project.
9. Production Schedule and Status Review
• Obtain and review Supplier’s Production Schedule showing, in sequential order, enough detail
to track components, including sub-supplier activities.
• Confirm delivery date.

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1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.pdf

Practice 000.450.1600
Date 27Jan2021
Attachment 02
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

02 SUPPLIER QUALITY ALIGNMENT MEETING (SQAM) AND REPORT (AMR)

• Review Engineering status, such as preparation and issue of Drawings, Calculations, Data
Sheets, etc.
• Review Materials / Suborder status, such as requisition process and availability of materials.
• Identify status of suborders, location(s) of sub-suppliers, inspection and testing activities at sub-
suppliers, sub-supplier Inspection & Test Plan status.
• Review Approval status of documents required to be submitted to Fluor:
• Refer to SDDC Form attached to Purchase Order for listing of requirements / submittal dates.
• Typically this included procedures for Welding, Heat Treatment, NDE, Hydro testing,
Painting/Coating, Preservation/Packing, etc.
• Verify Supplier is aware of the requirement to attain a minimum “B” review status prior to the
commencement of the related activities.
• Review of Supplier's NCR history (if applicable).
• The Surveyor is required to share all previous NCR data, by category, with the Supplier at the
SQAM (if data is provided with assignment).
• The NCRs will be reviewed to determine what the Supplier has done or intends to do to
preclude occurrence of similar problems on the current Fluor order.
• As a finale to front-end planning, summarize all of special requirements that are pertinent to the
SQS function.
10. Alignment Meeting Report / Action Item Responsibilities
• Review meeting notes and determine Action Item responsibility.
• Summarize special notes, exceptions and action items.
• Indicate that report will be issued to Supplier for signature, then signed by Fluor Surveyor and
issued to all parties.
11. Questions
• Give everyone an opportunity to ask questions and/or raise concerns.
2.5 The Assigned Surveyor will issue the Supplier Quality Alignment Meeting Report (AMR).
The Assigned Surveyor will report the results of the SQAM on Form 000.450.F1611, Supplier Quality
Alignment Meeting Report (AMR).
• Include any content modifications to the Q&CR issued with the SQS assignment.
• List exceptions in the AMR report with a statement that the Supplier will take the appropriate action.
• Summarize all special notes, exceptions and/or action points.

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1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.pdf

Practice 000.450.1600
Date 27Jan2021
Attachment 02
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

02 SUPPLIER QUALITY ALIGNMENT MEETING (SQAM) AND REPORT (AMR)

• Indicate if Fluor or the Supplier is responsible to respond to the respective Action Items and a due date
for action completion.
• Assign a document number as per the numbering system in Attachment 01 (generally AMR01) and
transmit the report to the PSM within 48 hours of the meeting date.
2.6 The assigned Surveyor will prepare the Excel Worksheet that is used by the PSM for the update of
MatMan.
The Surveyor completes the Excel worksheet that was provided as part of the assignment package and
submits it with the Alignment Meeting Report to the PSM.
The entry information in the Excel sheet columns will match exactly to the entry in the Alignment Meeting
Report form as shown in the following example.
Note: None of the columns can be left blank (columns D-I).

Column Alpha Column Name Description of Required Information

A File Number Pre-populated; do not change content
B PO Number Pre-populated; do not change content
C Supplier Pre-populated; do not change content
D Report Number AMR01 – (No spaces, dashes, etc.)
E Contact Date MM/DD/YY - date the meeting was started / conducted
F Report Date MM/DD/YY - date the report was written
G Hours Expended Number of hours expended for preparation and meeting.
(match hours expended as indicated on your timesheet)
H Estimated Date of MM/DD/YY - date of next planned visit (must enter date)
Next Contact
I Estimated MM/DD/YY - date the purchase order will be completed
Completion Date

2.7 The PSM receives the minutes of meeting and Excel file from the Surveyor and reviews, edits if
necessary, makes the necessary distribution of the report in accordance with the project distribution
list, and files the report.
The PSM files the report in the corresponding purchase order assignment file on the network directory or in
an email folder for retention at project completion.

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1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.pdf

Practice 000.450.1600
Date 27Jan2021
Attachment 02
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

02 SUPPLIER QUALITY ALIGNMENT MEETING (SQAM) AND REPORT (AMR)

2.8 The PSM imports the report information into the SQS Module in Material Manager® using the Excel
worksheet.
2.9 The PSM and the assigned Surveyor reviews any meeting Action Items requiring follow-up and
monitors till closure.
The assigned Surveyor and PSM will monitor the Action Items which were identified in the report and tracks
them to closure.

3.0 FORMS USED

Form 000.450.F1610 Alignment Meeting Notice (AMN)
Form 000.450.F1611 Supplier Quality Alignment Meeting Report (AMR)

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1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.pdf

Practice 000.450.1600
Date 27Jan2021
Attachment 03
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

03 SQS SURVEILLANCE REPORTS (SRS)

1.0 PURPOSE
These instructions provide the requirements for the completion, transmission, and processing of SQS Surveillance
Reports.
Prompt reporting is essential to keep the project informed regarding quality surveillance activities. Reports are to be
generated utilizing the predefined templates available in Word and Excel Spreadsheet format.
This practice is applicable to SQS personnel who are performing supplier quality surveillances including reporting,
verification and issuance of Surveillance Reports.

2.0 WORK PROCESS

2.1 The PSM will provide instructions to the assigned Surveyor regarding the required level and detail of
surveillance for the purchase order.
The applicable Quality and Certification Requirements (Q&CR) Form (000.450.F20XX) is used to provide
instructions to the assigned Surveyor regarding the required level and detail of surveillance for a purchase
order. These instructions are provided with the surveillance assignment.
2.2 The assigned Surveyor will document the surveillance results of their visits to the Supplier facility
using the Surveillance Report template (000.450.sr20XX) applicable to the surveillance activity.
The appropriate assignment commodity report form (000.450.sr20XX) is selected. It will be the same 20XX
number as the assignment Q&CR form. Any modification to the baseline assignment Q&CR form will be
reflected in the matrix section of the report form.
Those items identified in the supplemental section of the Q&CR form should be included as well as any
additions or revisions identified during the Supplier Quality Alignment Meeting or surveillance activities.
The assigned Surveyor will verify that the SQS reports are accurate, complete, objective, and provide all the
necessary and most current information such as NCRs, SORs, and activity status to support surveillance
results.
Instructions for completing the form are provided on the following pages, as well as a graphic indicating the
fields where the required information is to be placed.

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Practice 000.450.1600
Date 27Jan2021
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SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

03 SQS SURVEILLANCE REPORTS (SRS)

Example Surveillance Report Form and Instructions

2.3 The assigned Surveyor will complete the SQS Surveillance Report (SR) form according to the
following instructions.
Complete the surveillance report including the appropriate surveillance activities associated with each visit to
a supplier's facility. When a surveillance activity is identified as not applicable include a brief explanation.
1. Insert Header Information (File Number and Report Number) by double clicking on the report form in
the header area next to “File Number”.

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Practice 000.450.1600
Date 27Jan2021
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03 SQS SURVEILLANCE REPORTS (SRS)

2. Type applicable file and report number for this report (see Attachment 01 of this practice for numbering
system). Typically it is SR01, SR02, etc.
3. Update the information for each of the following fields on the selected form (refer to the graphic on the
previous page for location of data):
Note: If needed use computer keyboard function key F11 to navigate to each of the fields (“A” through
“R”) when completing the Word document.
"A" Name of person to whom the report is to be addressed as noted in the
Surveillance Assignment Instructions (i.e., Office Quality Manager (Project
Lead Office Only) and responsible PSM/PSC)
"B" Project Purchase Order Number for the Assignment
"C" Current Project Purchase Order Change Order number
"D" Author of the Report (i.e., the SQS Surveyor)
"E" Supplier Name to whom the PO was issued
"F" Name of person(s) surveyor communicates with at the Supplier’s facility (“G”)
"G" Name of the supplier of commodity (who will manufacture the product). If the
supplier name is the same as the "Issued To" (“E”) name, enter "SAME" in
this blank.
"H" Description of equipment / material as reflected on Purchase Order
"I" Physical location of supplier location
"J" Tag Numbers as reflected on Bill of Material (If there are numerous items,
tag numbers may be listed in the body of the report). At the least reference
the tag numbers that were inspected during the visit.
"K" Date of visit or the last day for multiple day visits
“L” The Supplier’s scheduled completion date of the final PO line item (a date
WILL be entered. Entries such as “Unknown”, “Unavailable”, “TDB”, etc. will
not be accepted. The date is to be updated on each report as applicable
(will completion date change).
"M" The PSM/PSC will provide cc: distribution as applicable
"N" Surveillance Information Section
Item “1” New NCR(s) issued this report period
Check appropriate box by locating cursor over box and double clicking
Under “Default Value”, select option “Checked / Not Checked”)
If “YES” check the box accordingly and list NCR number

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Practice 000.450.1600
Date 27Jan2021
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03 SQS SURVEILLANCE REPORTS (SRS)

If “NO”, check the box accordingly

Item “2” Total NCR(s) Issued: Include total number of NCR(s) issued to date for this
assignment. If none type “0”
NCR(s) Open: List the total number of NCR(s) considered open pending
verification, disposition, correction, etc.

Item “3” Repeat instruction above (“N” / Item “1”) for new SOR(s) issued this report
period

Item “4” Repeat instruction above (“N” / Item “2”) for total SOR(s) Issued to date

Item “5” Action/Reply Required this Report Period

Check appropriate box by locating cursor over box and double clicking
Under “Default Value”, select option “Checked / Not Checked”)
If “YES”, include a note with required action/reply under SQS Report section I:
Areas of Concern / Action Items.
If “NO”, check the box accordingly

Item “6” Inspection Release Issued - check appropriate box by locating cursor over
the box and double click; select “checked / not checked”.
If “YES” check the box accordingly and list SQS Release Report number.
If, “NO” check the box accordingly.

Item “7” Type of Inspection Report –Include purpose of the visit

Inspection date(s): Include date(s) when the visit was conducted
Check appropriate box by locating cursor over box and double clicking
Under “Default Value”, select option “Checked / Not Checked”

Item “8” Next Inspection Visit Date:

This is estimated date Surveyor anticipates next visit to fabricator's facility.

Note: Entries such as “Unknown”, “Unavailable”, “TBD”, etc. will not be accepted.

Purpose: State short anticipated activities that will be performed during next visit (e.g. verify
material/WPS/NDE, witness bundle insertion, etc.)

Section I: Areas of Concern / Action Items (“O” on graphic)

This section will be used primarily to elaborate the details of any NCR/SOR and the disposition thereof.
The dispositions of the NCR/SOR will be detailed and dated with an explanation of the events that
resulted in clearing/closure of the outstanding NCR/SOR (e.g., Material accepted via e-mail from Mr.
Engineer, 9/23/2017. NCR Cleared).
After one report cycle, the deficiency details and disposition for NCR(s)/SOR(s) will then be dropped
from this section of the report.

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Practice 000.450.1600
Date 27Jan2021
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03 SQS SURVEILLANCE REPORTS (SRS)

This section is also to be used for any other type of concerns (quality system failure, slip in delivery
schedule, safety concerns, etc.).
Digital pictures that help demonstrate concerns, observations and/or Nonconforming items can be
referenced here, indicating pictures attached at end of report.
If no concerns/actions are identified, include a note indicating “No concerns during this reporting period”
or a similar statement.
Section II: Surveillance Activity Overview (“P” on graphic)
Item “1” References/Date/Revision Number- This portion of Section II will identify the PO
Specifications utilized (per Tag Item) during this report visit to conduct inspection activities reflected in
this report. Revisions and / or dates will be noted for all document references.
Item “2” Inspection Activity - Surveyor is to describe results of actual activities conducted during this
report period associated with the Inspection Activity in the left hand column. This description needs to
reflect the type of inspection performed, on what items and what referencing documents were used to
validate / verify compliance to the PO quality requirements. In addition, report the results of the
validation as in compliance or satisfactory.
If no activity is conducted on a specific Q&CR activity during visit covered by the report you are
preparing, reflect this as "No activity this report" and make reference to the previous reports associated
with those activities with some degree/percent of the activity that was performed.
Suggested wording can be "No activity this report, refer to Report No's __, __, __".
The activity completion progress (% complete) will be specific to the activity (welding, NDE, hydro)
inspected to date of the inspection.
Section III: Status Reporting
Surveyor is to give a brief narrative status of suppliers engineering submittals, material receipts,
fabrication progress vs. milestone schedule and fabrication completion information. Digital Pictures
that enhance the narrative status can be referenced here, indicating pictures attached at end of report.
Section IV: Conclusion
Check appropriate box by locating cursor over box and double clicking
Under Default Value, select option “Checked / Not Checked”
Note: If the Surveyor selects “NO”, a brief statement WILL be given by the Surveyor expressing their
opinion of the supplier's inability to meet delivery commitment(s). Include specific reasons for
the opinion.
Digital Pictures taken at the discretion of the surveyor to document concerns, observations,
nonconforming conditions and / or narrative status will be placed at this location.
All pictures will have a description that identifies the content of the photo. The description may be a
written caption under the photo within the SQS report or the file name of an individual photo. The photo

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Practice 000.450.1600
Date 27Jan2021
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03 SQS SURVEILLANCE REPORTS (SRS)

description will contain the Fluor tag item reference.
2.4 The assigned Surveyor will update the Excel Worksheet provided with the assignment package with
report information.
The entry information in the Excel sheet columns will match exactly to the entry in the Surveillance Report
form.

Column
Column Name Description of required Information
Alpha
A File Number Pre-populated; do not change content
B PO Number Pre-populated; do not change content
C Supplier Pre-populated; do not change content
D Report Number SR01, SR02, SR03, etc. (no spaces, dashes, etc.)
E Contact Date MM/DD/YY – last date of the visit
F Report Date MM/DD/YY – date report is written
G Hours Expended Number of hours expended for resulting in this visit / report
(match the hours expended as indicated on your timesheet)
H Estimated Date of MM/DD/YY – date of next planned visit (must enter date if more
Next Contact visits are planned per the Assignment Instruction)
Note: For final visit, no date required in this row.
I Estimated MM/DD/YY – date the purchase order will be completed
Completion Date

2.5 The assigned Surveyor will submit the completed Surveillance Report and the Excel file to the PSM
within 48 hours of a visit.
2.6 The Project Surveillance Manager (PSM) will review the Surveillance Report and verify its content
adequacy and correctness, and add any clarifying comments as needed.
Upon receipt review, the PSM reviews the report and discusses any revisions to the report with the Surveyor.
2.7 The PSM will distribute supplier Surveillance Reports in accordance with the project distribution list,
and then file the report.
Reports are filed on the network directory or in an email folder.
2.8 The Project Surveillance Manager (PSM) will import the report information into the SQS Module in
the Material Manager® database using the Excel worksheet.

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Practice 000.450.1600
Date 27Jan2021
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03 SQS SURVEILLANCE REPORTS (SRS)

2.9 The PSM will notify the Responsible Engineer, Project Buyer, and Project Management of any
nonconformances or other quality / schedule concerns reported by the Surveyor.

3.0 FORMS USED

Form 000.450.F20XX Quality and Certification Requirements (series of Q&CR forms by type of
equipment)
Form 000.450.sr20XX Activity Reporting Form (series of Surveillance Report forms by type of equipment)

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Practice 000.450.1600
Date 27Jan2021
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04 NON-CONFORMANCE REPORTS / NON-CONFORMANCE RELEASE REPORTS

(NCR/NCRRS) (01AUG18)

1.0 PURPOSE
This practice outlines the roles and responsibilities of a quality representative when a product or service presented
for Fluor acceptance fails to comply with a Purchase Order (PO) or Contract quality requirements.
A Non-Conformance Report (NCR) will be issued to supplier(s)/Contractor(s) when findings deviate from quality
requirements of the Purchase Order (PO), Contract, specifications, drawings, Codes, Standards, and datasheets.

2.0 WORK PROCESS

2.1 The assigned Surveyor will document findings that deviate from the quality requirements of the PO,
specifications, drawings, codes, standards, and datasheets through the issuance of an NCR.
The Surveyor will document the nonconformance results using the Nonconformance Report template
(000.450.F1641).
Conditions for issuance of a Non-Conformance Report (NCR) include:
· When equipment, materials, or parts, fully inspected by the Supplier, and offered to Fluor for
acceptance deviate from the requirements (this finding may occur during an in-process surveillance
visit).
· The supplier’s personnel are utilizing procedures deviating from the requirements, even though the
equipment, material, or part has not been offered for acceptance.
· When a Notification of Inspection is received and material is not ready for inspection on the specified
date of inspection.
Note: An NCR will not be issued for equipment, materials, or parts rejected by the Supplier's QC
personnel.
Each separate type of non-conformance description identified will be documented on separate NCRs.
Multiple tag items can be listed on a single NCR-NCRR form provided all tag items have the same type of
non-conformance description (such as testing, welding, or dimensions).
The Surveyor will ensure SQS reports are accurate, complete, objective, and provide all the necessary and
most current information such as NCRs, SORs, activities status to support surveillance results.
Instructions for completing the NCR-NCRR form are provided on the following pages, as well as a graphic
indicating the fields where the required information is to be placed.

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Practice 000.450.1600
Date 27Jan2021
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04 NON-CONFORMANCE REPORTS / NON-CONFORMANCE RELEASE REPORTS

(NCR/NCRRS) (01AUG18)

Example Non-Conformance Report and Instructions

2.2 The assigned Surveyor will complete the NCR portion of the form according to the following
instructions.
Update the information for each of the following fields on the selected form (refer to the graphic on the
previous page for location of data):

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Practice 000.450.1600
Date 27Jan2021
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04 NON-CONFORMANCE REPORTS / NON-CONFORMANCE RELEASE REPORTS

(NCR/NCRRS) (01AUG18)
Note: If needed use computer keyboard function key F11 to navigate to each of the fields (“A” through
“EE”) when completing the Word document.
"A" Provide an “X” in the box for a Non-conformance Report
"B" Provide an “X” in the box for a Non-conformance Release Report
"C" Person to whom report is to be addressed. Office Quality Manager (Project Lead
Office Only)
"D" Fluor Project Purchase Order Number
"E" Surveyor name writing the report
"F" The supplier to which the Fluor Purchase Order is issued to
"G" Supplier representative or contact person at the supplier
"H" Supplier name if different from who the purchase order was issued to
"I" Location (City, State, Country) where the surveillance activities are taking place
"J" Assigned Operation Center File Number
"K" The Prime Item Code that appears on the most recent Purchase Order/Change
Order Bill of Material (BOM)
"L" The date in which the non-conformance report is issued
"M" Report Number (NCR01, NCR02, etc.)
"N" The Supplier Shop Order Number
“O” The current promised completion date of the purchase order
“P” Description of the equipment that appears on the most recent Purchase
Order/Change Order Bill of Material (BOM)
“Q” Provide an “X” in the box for the description of the non-conformance.

Note: Only one box (Category) will be checked. Should there be more than one category of non-
conformance identified for a given item a separate NCR will be issued. When the “Punch List
Attached” option is selected, the surveyor will complete the non-conformance punch list information
and follow the above.
“R” Detailed description of the nonconforming condition
“S” Detailed Commercial or Technical Requirement in which the equipment does not
comply with

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Practice 000.450.1600
Date 27Jan2021
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04 NON-CONFORMANCE REPORTS / NON-CONFORMANCE RELEASE REPORTS

(NCR/NCRRS) (01AUG18)
“T” Information obtained from the supplier in order to correct the material
“U” Who was the NC reported to (Fluor Coordinator, Supplier Rep., etc.)
“V” How was the NC reported. (Via Email, Telephone, etc.)
“W” Date in which the NC was reported
“X” Does the NCR have a schedule impact, if so, describe the schedule impact
“EE” Provide an “X” in the box if the NCR was issued to the supplier.
Note: Items C – X are the details for the non-conformance report. Once the NCR is issued, this
information will not change even when the non-conformance release report is issued.
Important: do not change the report date in section “L”.
2.3 The Surveyor will complete the Corrective Action or Non-Conformance Release Report section of
the form when the NCR has been adequately addressed by the Supplier.
"B" Provide an “X” in the box for a Non-conformance Release Report
“Y” Provide an “X” in the box with the associated corrective action item
“Z” Description of the corrective action taken by the supplier
“AA” Provide the date the corrective action was completed
“BB” If there was a deviation from the requirements approved, who approved the
deviation
“CC” Date in which the deviation was approved
“DD” How was the deviation approval received? (Email, Official Change Order, Etc.)
“EE” Provide an “X” in the box if the NCRR has been issued to the supplier and if the
NCRR has been released in its entirety or if this is a partial release with
additional work/reports to follow.

Note: For Non-Conformance Punch List items to be repaired at site, the Surveyor will select the “Repair at
Site” box. The non-conformance will be closed and the NCR Punch List will be transferred to the
Site Quality Manager via distribution and be logged in the Project Quality Management System for
tracking and disposition at site.

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Practice 000.450.1600
Date 27Jan2021
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04 NON-CONFORMANCE REPORTS / NON-CONFORMANCE RELEASE REPORTS

(NCR/NCRRS) (01AUG18)

Example Non-Conformance Punch List

"A" – “F” This area is pre-populated by the MatMan System – DO NOT ADD OR
CHANGE ANY INFORMATION
Note: you may add rows for multiple punch items for a Tag Item
(See Example above)
"G" Surveyor to fill in quantity of items
"H" Surveyor to describe the deficiency of item that requires additional work
"I" Surveyor to provide overview of the disposition
"J" Project Surveillance Manager is responsible to rout form for signature of
applicable parties. The signed Punch List is then transmitted to the project
MCPlus coordinator. If MCPlus is not used, the PQM will issue stand alone NCR
in QMS to transfer the punch list items to the fabrication yard or site for
disposition / closure.

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Practice 000.450.1600
Date 27Jan2021
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04 NON-CONFORMANCE REPORTS / NON-CONFORMANCE RELEASE REPORTS

(NCR/NCRRS) (01AUG18)

2.4 The assigned Surveyor will complete the Excel spreadsheet to document each Non-Conformance
Report.
The entry information in the Excel sheet columns will match exactly to the entry in the Non-Conformance
Report form.

2.5 The assigned Surveyor will update the Excel spreadsheet to document each Non-Conformance
Release Report when the NCRs have been addressed and closed.
The entry information in the Excel sheet columns will match exactly to the entry in the Non-Conformance
Report form. When releasing an NCR, use the same NCR row entry you Opened the NCR with to Close it.
DO NOT CHANGE THE NUMBER FROM NCR01, NCR02, NCR03, etc!!!

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Practice 000.450.1600
Date 27Jan2021
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04 NON-CONFORMANCE REPORTS / NON-CONFORMANCE RELEASE REPORTS

(NCR/NCRRS) (01AUG18)
Description of Required
Column Description of Required Information For NCR
Column Name Information For NCR Input -
Alpha Input - OPEN
CLOSED
A File Number Pre-populated; do not change content No Change
B PO Number Pre-populated; do not change content No Change
C Supplier Pre-populated; do not change content No Change
D Report Number NCR01, NCR02, NCR03, etc (no spaces, dashes, No Change
etc.)
DO NOT CHANGE THE NCR NUMBER WHEN IT
IS RELEASED i.e. NCRR01!! REMAIN AS
NCR01, NCR02, NCR03…
E Report Date MM/DD/YY – last date of the visit No Change
F Status Open / Closed - choose OPEN from drop down Choose CLOSED from drop down
menu. (highlight box and dropdown shows up at menu. (highlight box and
bottom – arrow) dropdown shows up at bottom –
arrow)
G PO Completion MM/DD/YY - date the purchase order will be No Change
Date completed
H NCR Type NCR Category- choose Category from drop down No Change
menu. Matched Category on NCR Form. One
Category per NCR (highlight box and dropdown
shows up at bottom – arrow)
I Description of unlimited text – row will expand as text is entered. No Change
Nonconformance Text is to give full detail as to why NCR was
written. Be sure to “double click” in the applicable
row/column field where text is to be entered
(cursor will blink in field). (match description in
NCR form – copy and paste)
J Corrective Action to unlimited text – row will expand as text is entered. No Change
be taken by Text is to give full detail as to why NCR was
Supplier written. Be sure to “double click” in the applicable
row/column field where text is to be entered
(cursor will blink in field). (match description in
NCR form – copy and paste)
K Corrective Action Blank Corrective Action Category-
choose Category from drop down
menu. Matched Category on NCR
Form. One Category per NCR
(highlight box and dropdown
shows up at bottom – arrow)

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Practice 000.450.1600
Date 27Jan2021
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04 NON-CONFORMANCE REPORTS / NON-CONFORMANCE RELEASE REPORTS

(NCR/NCRRS) (01AUG18)
Description of Required
Column Description of Required Information For NCR
Column Name Information For NCR Input -
Alpha Input - OPEN
CLOSED
L Disposition Blank unlimited text – row will expand as
text is entered. Text is to give full
detail as to what corrective actions
were completed or who
dispositioned the NCR. Be sure to
“double click” in the applicable
row/column field where text is to
be entered (cursor will blink in
field). (match description in NCR
form – copy and paste)
M Corrective Action Blank MM/DD/YY - date the corrective
Date Action was completed
N NCRR Date Blank MM/DD/YY - date this report was
written to release the NCR
DO NOT CHANGE THE DATE IN
COLUMN E ABOVE !!!

2.6 The Surveyor will submit the Nonconformance Report and the Excel file to the PSM on the day of
detection.
The Surveyor will also provide a copy of each NCR-NCRR to the Supplier's Quality Control (QC)
representative prior to leaving the shop.
The assigned Surveyor will also notify, via telephone, the PSM or responsible Commodity Engineer
whenever an item that required an NCR is identified.
2.7 The PSM will review, process and distribute the NCR issued on the project in accordance with the
project distribution list.
Project Surveillance Manager (PSM)/Project Surveillance Coordinator (PSC) will verify NCR Report content
adequacy and correctness.
2.8 The PSM will file a copy of the report in the corresponding PO SQS assignment file.
2.9 The PSM will expedite the resolution of each NCR with the responsible Commodity Engineer.
2.10 The PSM will import the information from the NCR-NCRR form into the MaterialManager® SQS
Module using the Excel worksheet.
2.11 The PSM will select the impact level of the NCR in the MaterialManager® SQS Module as Low,
Medium, or High.
PSM will select the impact level of the NCRR in the MaterialManager® SQS Module as Low, Medium, or
High.

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Practice 000.450.1600
Date 27Jan2021
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SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

04 NON-CONFORMANCE REPORTS / NON-CONFORMANCE RELEASE REPORTS

(NCR/NCRRS) (01AUG18)
To select the NCR Impact, Highlight and Click open the NCRR in file.

Select NCR Impact based on below involvement progression and save.

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Practice 000.450.1600
Date 27Jan2021
Attachment 04
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SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

04 NON-CONFORMANCE REPORTS / NON-CONFORMANCE RELEASE REPORTS

(NCR/NCRRS) (01AUG18)

The impact level is determined based on involvement to disposition and is progressed as outlined below:

2.12 The Surveyor will document the completion of corrective action by the Supplier by completing the
release portion of the NCR-NCRR form and issue it to the PSM.
The Surveyor will release the non-conformance only when the authorized corrective action has been
completed.
The Surveyor also updates the release portion of the Excel spreadsheet as discussed in Section 2.5.
Note: The NCR-NCRR may be used to partially clear a non-conformance when only some of several items
on an NCR have been corrected.
A copy of each NCR release is also provided to the Supplier's QC representative.

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Practice 000.450.1600
Date 27Jan2021
Attachment 04
Full Practice Printed from Quality Requirements System Global Library

SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

04 NON-CONFORMANCE REPORTS / NON-CONFORMANCE RELEASE REPORTS

(NCR/NCRRS) (01AUG18)

2.13 The Surveyor will take the following steps when there is a Non-Conformance with Conditional
Release and Punch List.
If release is based on certain conditions being met prior to shipment and these conditions are not being met,
the following actions will be initiated by the assigned SQS representative, PSM, and Responsible Engineer
(RE):
1. The Surveyor will advise the Supplier immediately when materials / equipment cannot be released for
shipment due to the existence of non-conforming conditions at time for release for shipment.
2. The Surveyor will prepare a SQS Non-Conformance Report Punch List identifying all non-conforming
conditions and discuss with Supplier what action they intend to correct, schedule impacts, or what will
be deferred to site for correction.
Note: All corrective actions / work deferred to site will have Project Management approval prior to
shipment.
3. The Surveyor will provide the PSM copy of the non-conformance report and punch list if the Supplier is
planning on deferring any non conforming conditions / work to site for correction.
4. The PSM will provide the Project Manager, Project Procurement Manager, Site Receiving Manager,
Client Representative, and Responsible Engineer a copy of SQS Conditional Release Report
highlighting all non conforming conditions / work the Supplier is deferring to the site for correction.
5. The Project Management Team will collaborate with all affected parties (i.e. Logistics, Construction,
Procurement, Client, and RE) prior to issuance of conditional punch list acceptance of the Supplier’s
intention to defer nonconforming conditions / work to site for correction.
2.14 The PSM will copy and distribute the NCR-NCRR form once the release portion at the bottom of the
form has been completed.
2.15 The PSM will file the completed NCR-NCRR in the SQS assignment file.
2.16 The PSM will import the release information into the MaterialManager® SQS Module to close the
NCR.

3.0 FORMS USED

Form 000.450.F1641 Nonconformance and Nonconformance Release Report

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1/27/2021 000.450.1600 Supplier Quality Surveillance (SQS) Reporting.pdf

Practice 000.450.1600
Date 27Jan2021
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SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

05 SUPPLIER OBSERVATION REPORTS (SORS)

1.0 PURPOSE
These instructions are to be used by the Project Surveillance Manager (PSM) / Surveyor to document those
deviations, problems, and situations that are not by definition non-conformances, but which could, if left uncorrected,
result in NCRs at a later time. These types of deviations, problems and situations will be documented as Supplier
Observations.
These issues are documented in Supplier Observation Reports (SORs) which provide a means to track those
situations where the surveyor has taken a proactive role in avoiding potential quality problems and/or shipping
delays. It will also contribute to a more accurate quality profile of a Fluor Supplier. These are not on separate forms,
but are included in the Surveillance Reports.

2.0 WORK PROCESS

2.1 The assigned Surveyor will identify those deviations, problems, and situations that are not by
definition non-conformances, but which could, if left uncorrected, result in NCRs at a later time as
Supplier Observations.
2.2 The assigned Surveyor will document Supplier Observation Reports within the Action Items / Areas
of Concern section of the Surveillance Report.
The Surveyor documents SORs when a situation merits an SOR is detected during surveillance / shop visit
activities.
• Include SORs in the SQS Surveillance Report (000.450.sr20xx).
• SORs are documented under Section I of the report, "Action Items / Areas of Concern".
• Number the SORs is a sequential order with prefix 9 starting with SOR901 (e.g., SOR901, SOR902,
SOR903, etc.).
• Each reported observation will also have a category or type aligned with those of non-conformances
(Material, Welding, etc.).
• Observations will also be reported when discrepancies are discovered during a joint inspection and the
Supplier issues an NCR.
Note: If the Supplier issues an internal non-conformance, the Surveyor issues a SOR to monitor
suppliers NCR through closures. Surveyor then closes the Observation in the SQS Surveillance
Report when the NCR is closed.
Following is an example of how to report SORs:
• SOR901, WORKMANSHIP (Open): During surveillance visit to contractor, the writer noted that some
areas that had been galvanized needed additional cleaning. These areas had sharp burrs left from
galvanizing.

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Practice 000.450.1600
Date 27Jan2021
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SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

05 SUPPLIER OBSERVATION REPORTS (SORS)

2.3 The PSM/PSC will verify that SORs are documented in the Surveillance Reports and the condition
described by the SQS Surveyor has the necessary information to support the observation.
If the PSM feels an NCR has been issued in lieu of an SOR, the Surveyor is contacted to discuss the
circumstances surrounding the issuance of the SOR prior to report distribution.
2.4 The SQS Surveyor will verbally advise the Supplier’s quality representative of the identified
observation for corrective action.
2.5 The PSM/PSC will review, process, and distribute SQS Surveillance Reports in accordance with the
project distribution list and highlight the SORs when needed.
The PSM assists in resolution of any SORs which might require project input / action or support.
2.6 The SQS Surveyor will complete the Excel worksheet and submit it to the PSM for import to MatMan
for update of the SOR data.
Categories and description will be the same as those identified in the Surveillance Report and will indicate if
the SOR is “Open” or “Closed”.
The entry information in the Excel sheet columns will match exactly to the entry in the Surveillance Report
form in the Action Items / Areas of Concern section.
OPEN SORs –

Column
Column Name Description of Required Information
Alpha
J SOR # SOR901, SOR902, SOR903,…– (No spaces, dashes, etc.)
K SOR Type SOR Category – choose category from drop down menu. One Category per SOR.
(click box for drop down arrow)
L SOR Description Unlimited text, row will expand as text is entered. Text is to give full detail as to why
SOR was written. Be sure to “double click” in the applicable row/column field where
text is to be entered (cursor will blink in field). (match description in SR form – copy
and paste)
M Status Select OPEN (drop down)

N SOR Closed Date Blank

Note: There may be more than one entry of SOR per report. Just use the next row and add the next SOR number as
shown by 902 above. Do not enter the report information (columns D-I), only the SOR information (columns J-M).

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Practice 000.450.1600
Date 27Jan2021
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SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

05 SUPPLIER OBSERVATION REPORTS (SORS)

CLOSED SORs –

Column
Column Name Description of Required Information
Alpha
J SOR # SOR901, SOR902, SOR903, etc. (No spaces, dashes, etc.)
K SOR Type SOR Category – choose category from drop down menu. One Category per SOR.
(click box for drop down arrow)
L SOR Description Unlimited text, row will expand as text is entered. Text is to give full detail as to why
SOR was written. Be sure to “double click” in the applicable row/column field where
text is to be entered (cursor will blink in field). (match description in SR form – copy
and paste)

ADD – Brief disposition of SOR Closure

M Status Select CLOSED (drop down)
N SOR Closed Date MM/DD/YY – date SOR was dispositioned

2.7 The PSM will Import the SOR information included in the SQS Reporting Excel worksheet into the
MaterialManager® Supplier Quality Surveillance Module.
Each observation will be entered as a separate report using sequential numbers beginning with SOR901 as
reported by the Surveyor. The category, description and open/closed status of the SOR will be entered in
the same manner as an NCR.
Upon resolution of the SOR, the PSM will reflect the SOR as "Closed" in the MaterialManager® SQS
Module.
2.8 The SQS Surveyor will obtain the objective evidence needed to address and close the condition
described in the SOR prior to the Supplier presenting the material / equipment for Fluor’s
acceptance.
Closed SORs will be documented in the next issued Surveillance Report. Failure of the Supplier to
adequately address an SOR will result in the issue of an NCR.

3.0 FORMS USED

Form 000.450.sr20xx Activity Reporting Form (series of Surveillance Report forms by type of equipment)

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Practice 000.450.1600
Date 27Jan2021
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SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

06 SQS RELEASE REPORTS (RRS)

1.0 PURPOSE
These instructions provide requirements for preparing, issuing, and distribution of Supplier Quality Surveillance
(SQS) Release Reports.
An SQS Release Report is issued to a Supplier when the assigned Surveyor has completed the required surveillance
activities identified in the Assignment Instructions and found the activities associated with the product(s) meet the
PO/Contract quality requirements.
The Project Surveillance Manager (PSM), Project Surveillance Coordinator (PSC), and Surveyor will use this practice
when the Surveyor, in the execution of an SQS surveillance assignment, has found surveyed equipment / materials
conform to the Purchase Order (PO)/Contract requirements, including any conditional items.
Note: Issuance of the SQS Release Report does not relieve the Seller from any obligations related to the PO.

2.0 WORK PROCESS

2.1 The assigned Surveyor will determine if an SQS Release Report can be issued.
An SQS Release Report can be issued at the Supplier's facility when a product(s) presented by the Supplier
for Fluor acceptance have been found to comply with the surveillance activities performed by the assigned
Surveyor as outlined in the Assignment Instructions developed specifically for the PO/Contract.
2.2 The assigned Surveyor will prepare the Release Report (000.450.F1652), but will only prepare a
conditional Release Report with prior involvement and approval of the project team as coordinated
by the PSM.
The assigned Surveyor will contact the PSM and discuss conditional releases before releasing any materials
with conditions as some projects will not allow this.
The PSM will provide to the Project Manager, Project Procurement Manager, Site Receiving Manager,
Owner Representative, and Responsible Engineer a copy of SQS conditional release document, highlighting
all non-conforming conditions / work the Supplier is deferring to the site for correction.
The Project Management Team will collaborate with all affected parties (i.e., Logistics, Construction,
Procurement, Client, and RE) prior to issuance of a conditional punch list acceptance of the Supplier’s
intention to defer non-conforming conditions / work to site for correction / completion.
Upon receipt of project acceptance of the Supplier’s intention to defer non-conforming conditions / work to
site for correction, the Surveyor will prepare SQS Release Report indicating with an “X” in the appropriate
conditional release box(es).
Instructions for completing the form are provided on the following pages, as well as a graphic indicating the
fields where the required information is to be placed.
Example SQS Release Report Form and Instructions

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Practice 000.450.1600
Date 27Jan2021
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SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

06 SQS RELEASE REPORTS (RRS)

2.3 The assigned Surveyor will complete the SQS Release Report according to the following
instructions.
1. Insert Header Information (File Number and Report Number) by double clicking on the report form in
the header area next to “File Number”.

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Practice 000.450.1600
Date 27Jan2021
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SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

06 SQS RELEASE REPORTS (RRS)

2. Type applicable file and report number for this report (see Attachment 01 of this practice for numbering
system). Typically it is RR01.
3. Update the information for each of the following fields on the selected form (refer to the graphic on the
previous page for location of data):
Note: If needed use computer keyboard function key F11 to navigate to each of the fields (“A” through
“N”) when completing the Word document.
“A" Assign Operation Center file number.
"B" Self-explanatory (01, 02, 03, etc.).
"C" Person to whom report is to be addressed. Office Quality Manager
(Project Lead Office Only)
"D" Author of the Report (Assigned SQS Rep.).
"E" Self-explanatory.
"F" Assigned PO number.
"G" Company name to whom the PO was issued.
"H" Name of the supplier of commodity (who will manufacture the product). If
the supplier name is the same as the "Issued To" name, enter "SAME" in
this blank.
"I" Location of the commodity supplier if different than the "Issued To"
company. Location of the "Issued to" company if the supplier is marked
"SAME."
"J" End user (e.g. ExxonMobil, Conoco, etc.)
"K" Multiple tag items can be listed on a single SQS Release Report and will
be listed by P.O. Item Number in the same order as the items appear on
the most recent Purchase Order/Change Order Bill of Material (BOM).
"L" The surveyor will list by tagged item the material(s)/equipment(s) primary
document(s) revision number, revision date and project document review
status code that the assigned SQS representative used to validate the
surveillance activities performed as denoted within the issued SAI
(exceptions will be for structural steel. shop fabricated pipe, bulk
materials).
"M" The Surveyor will detail any deviations to the purchase order requirements
along with who (company, name, title) authorized the deviation.
"N" The Surveyor will indicate with an “X” in the appropriate box(es) the Order
Status and Final Condition update with each Inspection Release.
This update indicates if there are any open NCRs on the items being released.
Note: In the event an NCR is open on item(s) being released, shipment can only take place if
authorization is provided by Fluor Project Management.
In such a case, the details will be noted in the deviation section of the report if the release is for
partial or full order completion.

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Practice 000.450.1600
Date 27Jan2021
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SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

06 SQS RELEASE REPORTS (RRS)

If the release is based on certain conditions being met prior to shipment and these conditions are not
being met, the following actions will be initiated by the assigned SQS representative, PSM and RE:
· The Surveyor will advise supplier immediately if materials / equipment cannot be released for
shipment due to the existence of nonconforming conditions at time for release for shipment.
· The surveyor will prepare a “Supplier Quality Surveillance Report” and “SQS Non-conformance
Report (NCR) Punch List” identifying all non-conforming conditions and discuss with supplier
what action they intend to correct and schedule impact or defer to site for correction.
Note: All corrective actions / work deferred to site will have Project Management Approval
prior to shipment.
· The Surveyor will provide the PSM a copy of the SQS Release Report with conditions and the
SQS nonconformance report with associated punch list if the supplier is planning on deferring to
the site for correction any non-conforming conditions / work.
Release Statement on Form - This release indicates that the items / equipment was surveyed to
the degree outlined in the surveillance plan, Quality and Certification Requirements (Q&CR) form,
and Surveillance Assignment Instructions (SAI). The release issuance does not imply that 100%
surveillance was performed or that the equipment / material was accepted on that assumption.
2.4 The Surveyor will provide a hard copy or PDF copy of each SQS Release Report and SQS
Conditional Release Report to the Supplier's QC (Quality Control) representative prior to leaving the
Supplier’s facility.
An SQS Release Report is issued to the Supplier when the Surveyor has completed the required
surveillance activities identified in the SAI and found the activities associated with the product(s) meet the
PO/Contract quality requirements.
2.5 The assigned Surveyor will verify that the the associated Supplier Quality Surveillance Reports have
been issued reflecting the surveillance activities performed to allow issuance of the Release Report.
2.6 The assigned Surveyor will issue the SQS Release Report to the PSM for review and issue to the
project.
2.7 The PSM/PSC will review, process, and distribute the SQS Release Report in accordance with the
project distribution list.
Should the release contain conditions, the PSM/PSC will provide the Project Quality Manager, Project
Manager, Project Procurement Manager, Site Receiving Manager, Client Representative, and Responsible
Engineer (RE) with a copy of SQS Conditional Release Report with the highlighted conditional release items
that are deferred to the site for correction. The distribution may vary per project.
2.8 The Project Buyer will then issue a shipment release to the supplier, attaching a copy of the SQS
Release Report.
Note: This will:
1) Stop the supplier from assuming SQS release is shipping release and stop them from
prematurely shipping goods.

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Practice 000.450.1600
Date 27Jan2021
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06 SQS RELEASE REPORTS (RRS)

2) Provide the PSM a chance to review the release report prior to distribution.
3) Causes the project to wait for the SQS release prior to issuance of the shipping release.
2.9 The PSM will file an electronic copy of the Release Report in the SQS assignment file.
The report is filed in either the network directory or in an email folder.

3.0 FORMS USED

Form 000.450.F1652 SQS Release Report

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Practice 000.450.1600
Date 27Jan2021
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SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

DEFINITIONS
The following terms and acronyms apply to this practice.

Title Description

Alert and Warning List (AWL) Contains listing of suppliers and contractors whose recent performance or
financial conditions indicate capability issues in providing consistent
execution to Fluor projects. Refer to Practice 000.400.0800, Alert and
Warning List.

Coreworx (CWX) Coreworx (CWX) is the approved Fluor Document Management System
(DMS) and Project Collaboration System (PCS) that allow the project team to
exchange files or access documents and data issued on the project.

Discipline Control Level This is a special type of Level 4 schedule for Engineering, used by Project
Schedule (DCLS) Discipline Leads for planning their work.

Non-Conformance Non-Conformance (sometimes called a Non-conformity) is the nonfulfillment

of a specified requirement. Also see “blemish”, “defect”, and “imperfection”.
Posted with permission from ASQ. ISO 9001 lists quality system
requirements. When an organization deviates from these requirements, a
nonconformity occurs. When a product, process, procedure, system, or
structure deviates from ISO requirements, a formal nonconformity exists.

Non-Conformance Report / A form used for documenting non-conforming conditions and release of those
Non-Conformance Release conditions.
Report (NCR/NCRR)

Project Surveillance Works for the PSM and may assume some of the duties assigned to the PSM
Coordinator (PSC) as delegated.

PSM Project Surveillance Manager

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Practice 000.450.1600
Date 27Jan2021
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SUPPLIER QUALITY SURVEILLANCE (SQS) REPORTING

Quality and Certification Quality and Certification Requirements (Q&CR) form has two purposes: 1.
Requirements (Q&CR) Conveyance to Supplier as to observations and hold points that are required
to be included in the Supplier’s Inspection and Test Plan, an attachment to
the PO, or to the Supplier’s equivalent ITPs. 2. Used by PSM or Project
Surveillance Coordinator (PSC) as instruction to the assigned Surveyor on
the required level and detail of surveillance for a particular order. Note: he
Q&CR form is NOT used to outline all inspection and quality control
requirements. These are defined by the Commodity Engineer in the
requisition and data sheets.

SQS Release Report Supplier Quality Surveillance (SQS) Release Report indicates that the
equipment has been surveyed to the degree outlined in the SAI and its
issuance does not imply that 100 percent surveillance was performed or that
the equipment/material was accepted on that assumption.

SQS Surveillance Report (SR) SQS Surveillance Report (SR) is a key deliverable of source inspection and is
the progressive inspection reports detailing the documents reviewed,
inspection activity performed, observed and/or witnessed during the source
inspection visits. The report is normally on a standard format, and follows a
consistent approach to reporting as specified by the purchaser.

Supplier ITP Supplier Inspection and Test Plan (ITP) is a detailed plan developed with all
stages of inspection and various witness points; includes observations and
essential details and is an attachment to the PO, or to the supplier’s
equivalent ITPs; integrates practices and procedures contained in the
Supplier’s Quality Management System.

Supplier Observation Reports Supplier Observation Reports (SOR) are PSM and/or Surveyor identified
(SOR) deviations, problems and situations which are not by definition NCRs, but
which may, if left uncorrected, could result in NCRs at a later time. The intent
is to verbally inform supplier(s) of a potential non-conforming situation or
fabrication practice.

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Practice 000.450.1600
Date 27Jan2021
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Supplier Quality Alignment Supplier Quality Alignment Meetings (SQAM) are meetings held with
Meetings (SQAM) suppliers on POs that require SQS to ensure alignment of all activities and
communications. Formal alignment meetings are arranged for high critical
and high value purchase orders. The meeting is chaired by the assigned SQS
Surveyor with multiple project team member participants, and may include the
Client. Informal alignment meetings are typically requested for medium to low
critical and valued purchase orders. The meeting will be chaired by the
assigned SQS Surveyor with no project team members anticipated in
attendance.

Supplier Quality Surveillance Refers to a supplier quality surveillance approach that provides a specific
(SQS) level of assurance that material/equipment released for shipment conforms to
the PO requirements and/or approved project deviation.

Surveillance Assignment Surveillance Assignment Instructions (SAI) refer to directions and/or

Instructions (SAI) instructions issued for the performance of surveillance tasks, duties, and
responsibilities in a specific assignment. Surveillance instructions are used to
provide the Surveyor with the necessary direction, PO documentation, and
requirements to conduct a surveillance of a Supplier.

Surveyor Surveyor (sometimes called an Inspector) is the person responsible for

providing surveillance activities on a PO/Contract, identifying conditions of
non-compliance and reporting surveillance activity results.

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