BLA-Q-PR-00-202 1B
Contract No.3510005187
SHEET 1 OF 9NON-CONFORMITY CONTROL PROCEDURE FOR EQUIPMENT AND MATERIALS
BLOCK-A GAS DEVELOPMENT PROJECT
X Class 1 Class 2 Class 3
REV DATE PURPOSE CONTRACTOR COMPANY
PREP’D CHK’D APP’D APP’D
1B 01-Jun-16 APPROVED FOR CONSTRUCTION Nurhadi K. Fuad K. Fuad
1A 10-Mar-16 APPROVED FOR CONSTRUCTION Nurhadi K. Fuad K. Fuad
1 03-Feb-16 APPROVED FOR CONSTRUCTION W. Hartono K. Fuad K. Fuad
0 22-Jan-16 ISSUED FOR CONSTRUCTION W. Hartono K. Fuad K. Fuad
B 11-Jan-16 ISSUED FOR APPROVAL W. Hartono K. Fuad K. Fuad
APPROVED FOR CONSTRUCTION
RECORD OF REVISION
The revisions listed below have been incorporated in this copy of the document.
REV.
NO. SECTION PAGE
NO. DESCRIPTION OF CHANGES
1B Attachment- 2 To added “Closed Out” on the disposition flow
TABLE OF CONTENTS
1. GENERAL ... 4
1.1 Scope ... 4
1.2 Purpose ... 4
1.3 Objective ... 4
2. ABBREVIATIONS AND DEFINITIONS ... 4
2.1 ABBREVIATIONS ... 4
2.2 DEFINITIONS... 4
3. REFERENCES ... 5
4. RESPONSIBILITY ... 5
5. PROCEDURES ... 6
5.1. Description of Non-Conformity ... 6
5.2. Disposition of Non-Conformity Item ... 6
5.3. Identification and Segregation of Non-Conforming Item ... 6
5.4. Non-Conformity Report ... 7
5.4.1. Form of Report ... 7
5.4.2. Immediate Reporting ... 7
5.4.3. Investigation and Analysis of Root Cause and Determination of Disposition ... 7
5.4.4. Disclosure and Approval to COMPANY ... 8
5.4.5. Corrective Action ... 8
5.4.6. Monitoring of NCR ... 9
5.4.7. Confirmation of Completion of Non-Conformity Report ... 9
5.4.8. Exception to Preparer, Issuer and Deal of Non-conformity Report ... 9
5.5. Distribution of NCR... 9
6. ATTACHMENTS ... 9
1. GENERAL
1.1 ScopeThis procedure covers the process for the identification, reporting, controlling and disposition of Non-Conformity.
This procedure applies to all equipment and materials fabricated/manufactured and supplied by Vendor/Manufacturer for Blok-A Gas Development Project.
1.2 Purpose
The purposes of this procedure are to ensure the followings in the standardized manners.
(1) To prevent un-intended use or delivery of non-conforming items.
(2) To deal with non-conforming items appropriately.
(3) To implement corrective actions to eliminate causes of a detected nonconformity or other undesirable situation to prevent recurrence.
1.3 Objective
The objective of this procedure is to achieve continual improvement by implementation of this Non-Conformity Control Procedure to achieve COMPANY’s satisfaction by letting COMPANY’s feel at ease that only conforming items are delivered.
2. ABBREVIATIONS AND DEFINITIONS
2.1 ABBREVIATIONS
EM : Project Engineering Manager.
FQCM : Field QC Manager.
IRC : Inspection Released Certificate MDR : Manufacturing Data Record NCR : Non Conformity Report.
PM : Project Manager PQCM : Project QC Manager.
QCE : Project QC Engineer.
2.2 DEFINITIONS
COMPANY : PT. Medco E&P Malaka
CONTRACTOR : Consortium of PT. JGC Indonesia and PT. Encona Inti Industri (JEC)
VENDOR : Any organization who provides equipment / materials for the project.
SHALL : Requirement; Mandatory SHOULD / MAY : Recommendation; Discretional
3. REFERENCES
The latest revision of the following documents shall be referred to and shall form a part of this procedure:
1. BLA-Q-PD-00-101 (Contractor ID: S-000-1110-001)
: Project Quality Plan
2. BLA-Q-PD-00-201 (Contractor ID: S-000-1520-001)
: Quality Execution Plan
3. BLA-Q-PR-00-201 (Contractor ID: S-000-1520-002)
: Quality Control Requirements to Vendor
4. RESPONSIBILITY
PM shall be responsible to endorse of all NCR and disposition plan.
EM shall be responsible to approve NCR and disposition plan and evaluate the extent of such Non-Conformity and planning of the disposition.
He is also responsible to ensure that PM is kept informed at all times as to the seriousness and proposed resolution of all Non-Conformity.
Discipline Engineer shall be responsible to review NCR and disposition plan with respect to the technical basis and advise to EM for further evaluating the Non-Conformity.
PQCM shall be responsible to approve the NCR and disposition plan with respect to the quality aspect and the impact of such Non-Conformity to final quality of the product, and distributes the NCR to any related discipline.
QCE shall responsible to review NCR and disposition plan in respect to quality aspect.
Inspector shall be responsible to prepare Non-Conformity Report and submit to Project QC Manager.
Inspector shall also be responsible to monitor and verify implementation of the disposition plan until restoration approved by COMPANY.
VENDOR shall be responsible to prepare Non-Conformity Report including disposition for corrective action and submit to CONTRACTOR for review and approval.
VENDOR shall also be responsible to propose disposition for corrective action and submit to CONTRACTOR for approval.
5. PROCEDURES
5.1. Description of Non-Conformity
Non-Conformity means a discrepancy (affected to safety, cost, schedule, and function), which renders the quality of equipment or materials unacceptable or indeterminate or not according to specified requirements of Purchase Order.
The following shall be considered as Non-Conformities when detected:
a) Any defect, flaw, overage, damage, inferior quality of material or equipment or deviation of work performed, drawings which is not conform to specification Code, Procedure, or Client Requirements and any other project contractual documents.
b) Deviation in characteristics, documentation or procedure that cause the quality of an assembly, part of an assembly or materials unacceptable or not according to specified requirements of Engineering Design.
c) Repairs or alterations to base material.
d) Equipment and materials, or works which subcontractor has repaired or kept as it and proceeded with next process (repair and modification are carried out later as required).
e) Material discrepancy or unauthorized substitution of material.
f) Failure of material or equipment during required testing.
g) Major welding repair on casting as below:
- Casting leak during hydrostatic testing.
- The depth of the repair cavity prepared for welding exceeds 50% of the wall thickness or 25mm whichever is smaller.
- The surface area of all repairs to the part exceeds 10% of the surface area of the part.
- The repair cavity is longer than 150mm in any direction.
- Repairs are to any rotating components.
However, the following cases are exempted of Non-Conformity:
a) Cosmetic repair work on the surface by grinding or weld repair on non-pressure parts.
b) Ordinary repair work in accordance with the approved repair procedure such as repair of weld defects detected by nondestructive examination except crack defect.
5.2. Disposition of Non-Conformity Item
Disposition flow of Non-Conformity Items is presented in Attachment-2.
5.3. Identification and Segregation of Non-Conforming Item
When a Non-Conformity is detected during fabrication or inspection, VENDOR is requested to identify the item as “HOLD” and control the non-conforming items by appropriate means such as marking, labeling, tagging, etc., and segregate / quarantine them from fabrication lines.
The non-conforming items shall always be accompanied by a copy of NCR to ensure that defective and suspect parts are not combined and to ensure that status of the non- conforming items is always known among staffs during movement to quarantine area.
VENDOR shall suspend further processing of the non-conforming items until the non- conformity has been evaluated and approved.
5.4. Non-Conformity Report 5.4.1. Form of Report
When Non-Conformity occurs, VENDOR shall prepare NCR by using form as shown in Attachment-1.
5.4.2. Immediate Reporting
(1) VENDOR shall submit NCR to CONTRACTOR immediately after detection/confirmation of the non-conformity. This shall be reviewed and approved based on their own quality systems before submission. It is acceptable if VENDOR will fill in up to Part 6
“Nonconformity Description” for this Immediate Reporting, while Part 7 and later may be filled in when feasible.
The following shall be described in the NCR:
1. Non-Conformity Report title.
2. Purchase Order Number.
3. Vendor.
4. Item Description.
5. Item Number.
6. NCR Type.
7. Non-Conformity Description.
(2) Part 7, Nonconformity Description shall include the following information:
1. Date of occurrence.
2. Date of detection
3. Detector’s name, position and company’s name
4. Location of occurrence (process, shop, company’s name) 5. Location of detection (process, shop, company’s name)
6. Location where Non-Conformity item is currently controlled/quarantined (shop, company’s name)
7. Non-Conformity description (Note that Vendor shall clearly mention the requirement which is not fulfilled referring to the specific paragraph of the documents (including drawing, specification, code, standard, etc.) applicable to Purchase Order). Sketch and/or photographs shall be attached to support the description.
5.4.3. Investigation and Analysis of Root Cause and Determination of Disposition
(1) VENDOR shall immediately investigate and analyze Root Cause, then deliberate and propose disposition of Nonconforming item to fulfill the requirement specified in the Purchase Order by filling in Part 7 and 8 and submit it to CONTRACTOR.
(2) CONTRACTOR shall review them from the following standpoints of view:
a. Whether content of report addresses not only direct cause but Root Cause of Non- Conformity.
b. Whether proposed disposition complies with requirements set in the contract with COMPANY.
c. If item is assured to fulfill the requirements after disposition. The assurance is accountable to COMPANY with proven technology.
d. Whether the accountable reason with the proven technology is provided for COMPANY to authorize its use, release or acceptance under concession, if item will not fulfill the requirement.
(3) CONTRACTOR shall proceed to approval for disposition proposed by VENDOR in Part 9 “Approval of Proposed Disposition” as follows:
Checked/Reviewed : by QC Engineer in charge (in respect to quality aspect).
Reviewed : by Lead Discipline Engineer in charge of Requisition (in respect to engineering aspect).
Approved : by PQCM and EM
(4) The proposed disposition plan submitted by VENDOR shall be reviewed and checked by CONTRACTOR to determine the disposition classification and resolution as one of the following:
Rework
The process of resolution of Non-Conformity item which is made to confirm original requirement by completion of correction.
Repair
The process of restoring a Non-Conformity characteristic to a condition such that the capability of an item to function reliably and safely in accordance with its intended function, even though that item still does not fully conform to the original specified requirements.
Reject / Scrap and Replace
A term applied to the action which will be taken to eliminate a nonconformance item from its specified use.
Use-as-is
A disposition permitted for a Non-Conformity item when it can be established that the item is satisfactory for its intended use without affect to the performance of this materials or equipment.
As a result of above review, CONTRACTOR comment on the NCR and return to VENDOR for further action. And only after the approval, VENDOR may start works.
5.4.4. Disclosure and Approval to COMPANY
All Nonconformity Reports shall be available for COMPANY’s audit at any time, and be included within Manufacturing Data Records (MDR). When nonconformity of equipment and materials has been dealt by FQCM, NCR will be recorded under confirmation and agreement between PQCM and FQCM.
All NCRs shall be disclosed to COMPANY and disposition issued shall obtain COMPANY’s approval and signature.
5.4.5. Corrective Action
VENDOR shall propose corrective action which eliminates causes of nonconformities in order to prevent recurrence and report it to COMPANY in Part 11. Proposed Corrective Action shall be reviewed and approved from the following standpoints of view:
(1) whether it is appropriate to the effects of nonconformity encountered.
(2) whether it defines requirements for evaluating the need for actions to ensure that the nonconformity does not recur.
(3) whether it defines requirements for reviewing the effectiveness of proposed corrective actions such as documented systems, expected record of corrective action taken, etc.
After PQCM’s approval, corrective action shall be implemented; VENDOR shall submit record of corrective action taken to COMPANY.
5.4.6. Monitoring of NCR
CONTRACTOR and VENDOR shall monitor that disposition is implemented in accordance with the requirements documented on the NCR, including CONTRACTOR and COMPANY Hold and Witness Points, as appropriate.
5.4.7. Confirmation of Completion of Non-Conformity Report
After completion of disposition and corrective action is confirmed, PQCM will sign in Part 12
“Closed out of Non-Conformity Report”. Inspection report and photographs shall be attached as evidence of completion of the disposition and closing of the NCR.
Before close out of NCR, PQCM will not approve Inspection Release Certificate (IRC) for equipment and materials.
5.4.8. Exception to Preparer, Issuer and Deal of Non-conformity Report
In case VENDOR will not submit NCR in timely fashion despite repeated reminders and/or PQCM judged it appropriate that CONTRACTOR Inspector/QC Engineer will prepare/issue NCR considering the characteristic of non-conformity, CONTRACTOR Inspector/QC Engineer will prepare/issue NCR (including cases of non-conformities caused by CONTRACTOR).
When non-conformity with equipment and materials has been judged appropriate to be dealt by FQCM considering the location/timing where/when non-conformity is detected, Field QC Engineer can deal with it under confirmation and agreement between PQCM and FQCM.
5.5. Distribution of NCR
PQCM shall regularly notify and distribute list of NCR among relevant project team members in order to raise an alert for recurring the same/similar nonconformities (Attachment-3: Non- Conformity Control Status). When NCR itself is judged to be effective for this purpose, a copy of the NCR, including unclosed ones, shall be attached to the list.
Non-Conformity status shall be informed to COMPANY by weekly.
6. ATTACHMENTS
ATTACHMENT-1: Non-Conformity Report Form
ATTACHMENT-2: Disposition Flow of Non-Conformity Items ATTACHMENT-3: Non-Conformity Control Status
ATTACHMENT-1 Non-Conformity Report Form
NON-CONFORMITY REPORT
Job Code 0-0709-00-0000
PJ Name Block-A Gas Development Project COMPANY PT Medco E&P Malaka
7. Non-Conformity Description
Prepared by (Subcontractor) Approved by (Subcontractor) Confirmed by (CONTRACTOR QC Use/ QC Coordinator or Inspector) (Sign) (Sign) (Date) (Sign) (Date)
8.Root Cause (s)
9. Proposed Disposition (s) Use as is Repair Rework Reject / Replace
Prepared by (Subcontractor) Reviewed by (Subcontractor) Approved by (Subcontractor)
(Sign) (Sign) Sign) (Date) ____
10. Approval of Proposed Disposition (CONTRACTOR Use) (Submit to the COMPANY for Approval Yes / No )
Confirmed by (QCC.) Reviewed by (Lead Engineer) Approved by (FQCM) Approved by (FEM) Endorsed by (Site Manager)
(Sign) (Sign) (Sign) (Date) (Sign) (Date (Sign) (Date
11. Approval by the COMPANY for the CONTRACTOR Approved disposition (if required)
(Sign) (Date) 12. Proposed Corrective Action to Prevent the same kinds of Nonconformity
Prepared by (Subcontractor) Approved by (Subcontractor ) Approved by (CONTRACTOR FQCM) (Sign) (Sign) (Date) (Sign) (Date) ___ ___
13. Closed Out of Nonconformity Report by CONTRACTOR’s PQCM and COMPANY (Photograph Yes No)
(CONTRACTOR’s PQCM) (COMPANY)
(Attachment) (Sign) (Date) (Sign) (Date)
NCR Reference No. Rev. 1. NCR Title
2. Subcontract no. 3. Sub-Contractor
4. Work or Item Description
5. Item No. if applicable
6. NCR Type : Material
Welding
Dimensional Performance / Testing
Painting / Rusting Document / Procedure
Other
ATTACHMENT-2: Disposition Flow of Non-Conformity Items
Note1: If COMPANY’s approval for NCR is required in accordance with the contract.
Note2: In cause VENDOR will not submit NCR in timely fashion despite repeated reminders and/or PQCM judged it appropriate that CONTRACTOR Inspector/QC Engineer will prepare/issue NCR considering the characteristic of Non-Conformity; CONTRACTOR Inspector/QC Engineer will prepare/issue NCR.
Identify and Control the Non-Conformity
Start Implementing Disposition
Complete the Disposition
Implement the Corrective Action Confirm
Approve
Approve
Approve Inform
Inspect
*Note2
CONTRACTOR VENDOR
COMPANY
*Note1
Approve
Detect the Non-Conformity
Submit the record of the results of action taken
Add the Proposed Corrective Action (Part 11) to theNCR
Add the Root Cause (Part 7) and Proposed Disposition (Part 8) to the Non-Conformity Report
Report the Non-Conformity Description (up to Part 6) (Issue the Report immediately after
detection/confirmation)
Approve
Closed Out
DISPOSITION DATE STATUS DATE STATUS DATE REV.
NO.
COMPANY NOTIFICATION ISSUED DATE
DISPOSITION COMPLETION STATUS DISPOSITION REQUIRED
DISCIPLINE IN CHARGE
PO NO. DESCRIPTION TYPE REMARKS
(NCR SUMMARY) NCR NO.
COMPANY APPROVAL
VENDOR ORDERED ITEM MANUFACTURER COUNTRY CLASSIFICATION TIMING