Previous Issue: 28 January 2012 Next Planned Update: 28 January 2017
Revised paragraphs are indicated in the right margin Page 1 of 17 Primary contact: Kakpovbia, Anthony Eyankwiere on +966-3-8801772
Engineering Procedure
SAEP-381
17 March 2013
Project Quality Issues Escalation Process
Document Responsibility: Inspection Engineering Standards Committee
Saudi Aramco DeskTop Standards
Table of Contents
1 Scope………... 2
2 Purpose……… 2
3 Conflicts and Deviations……… 2
4 Applicable Documents……….. 3
5 Definitions……… 3
6 Violations Definitions………. 4
7 Instructions……….. 5
8 Responsibilities……….. 8
9 Cancelled Quality Notifications……….. 10
Appendix A - Quality Issues Reporting Process…… 11
Appendix B - Contractor’s Internal NCR………. 12
Appendix C - Quality Issues Escalation Matrix…….. 13
Appendix D - Examples of Violations and Escalation Steps………... 14
Appendix E - Responsibilities for Quality Issue Notification………... 16
1 Scope
1.1 This Procedure establishes instructions for escalation of unresolved quality issues in Saudi Aramco projects including delinquent quality concern notifications. 1.2 This SAEP does not apply to:
● Escalation of non-conformities identified by Operation Inspection Division (OID) during assessments of Operation Inspection Units (OIUs) in operating facilities.
● Deficiencies noted during internal assessments by the Inspection Department. ● Deficiencies noted during Health Checks conducted by APMID for Asset
Performance Management (APM).
2 Purpose
2.1 The purpose of this SAEP is to:
2.1.1 Implement a consistent method for escalating quality issues including Logbook Entries (LBEs), Non-Conformance Reports (NCRs),
Worksheets (WSs) and Delinquent Worksheets (DWSs), as defined in
Appendix A, “Quality Issues Reporting Process.”
2.1.2 Clearly define the corporate process for project quality issue escalation including its documentation, requirements and definition of violation categories, systems and procedures.
2.1.3 Ensure roles and responsibilities for project quality issue escalation are well defined and auditable.
2.2 The intent of quality issue notification is to report and record quality or technical deficiencies, determine the root cause of the problem, record the actions taken to correct non-conformities, avoid recurrence and enhance overall project quality.
3 Conflicts and Deviations
3.1 Any conflict between this procedure and other applicable Mandatory Saudi Aramco Engineering Requirement (MSAER) shall be resolved in writing through the Chairman, Inspection Engineering Standards Committee (IESC). 3.2 Direct all requests to deviate from this procedure in writing to the Manager,
4 Applicable Documents
The applicable requirements in the latest edition of the following Saudi Aramco Engineering Procedures, Schedule “Q” and General Instructions (GIs) shall be considered an integral part of this procedure.
Saudi Aramco Engineering Procedures
SAEP-301 Instruction for Establishing and Maintaining Saudi Aramco Engineering Requirements
SAEP-302 Instructions for Obtaining a Waiver of a Mandatory Saudi Aramco Engineering Requirement
SAEP-379 Quality Issues Notification SAEP-380 Equipment Deficiency Report SAEP-1150 Inspection Coverage on Projects
SAEP-1151 Inspection Requirements for Contractor Procured Materials and Equipment
Contract Schedule “Q” Quality Requirements Saudi Aramco General Instruction
GI-0400.001 Quality Management Roles and Responsibilities
GI-0002.710 Mechanical Completion and Performance Acceptance of Facilities
5 Definitions
ACD: Agreed Completion Date
APM: Asset Performance Management
APMID: Asset Performance Management Integration Division
DWS: DELINQUENT WORKSHEET - Mechanism to escalate unresolved Worksheets
CQP: Contractor Quality Personnel CQR: Contractor Quality Representative
INCR: Internal Non Conformance Report (Issued by Contractor)
LBE: Logbook Entries (First level of reporting quality deficiency using Manual
MCC: Mechanical Completion Certificate
MPCS: Mechanical Performance and Close-out System MSAER: Mandatory Saudi Aramco Engineering Requirements
Non-Conformities Escalation: A structured mechanism to progressively escalate
pending quality and technical deficiencies to the concerned management.
NCR: Non Conformance Report (Issued by Saudi Aramco through SAP QM).
Project Quality Manager (PQM): The Senior Inspection Representative responsible
for coordinating all inspection requirements on behalf of Inspection Department with SAPMT throughout all project phases, from Project Proposal up to Mechanical completion.
QMIS: Quality Management Information System (also known as electronic Inspection
Logbook).
Repeat Violation: A non-compliance of the same MSAER, project specifications or
standard drawings in the same activity area, that occurred more than once within six (6) months.
SAPMT: Saudi Aramco Project Management Team
SAP QM: Systems, Applications and Products in Data Processing-Quality Module Technical Deficiencies: Non-compliance to any MSAER or project specifications Worksheet: Mechanism for reporting major violations or escalating pending valid
NCRs as stipulated in this Procedure.
6 Violations Definitions
MAJOR (If any one of the following applies)
1) Violations of company standards including GIs that put the quality and integrity of the facility including its workers and equipment at risk.
2) Actions that violate the Corporate values by submitting forged items & counterfeit materials.
MODERATE (If any one of the following applies)
1) Any violation to MSAER, project specifications and approved IFC drawings that if the next phase of work (critical path) is continued without correcting the violation,
the structural integrity of the next phase will be jeopardized. Such violation if not corrected in a timely manner will lead to more severe damage or complexity. 2) Any violation to Schedule Q.
Commentary Note:
Minor violations related to Schedule Q listed in Appendix D are excluded from this definition.
3) If the violation will be categorized ‘YES’ item as defined in GI-0002.710 during the partial MCC stage.
MINOR (If any one of the following applies)
1) Any violation to SAES, SAMSS, project specifications and approved IFC drawings but the next phase of work is not dependent on the correction of the violation. 2) If the violation will be categorized as ‘NO’ item as defined in GI-0002.710 during
the partial MCC stage.
7 Instructions
7.1 Quality Issues Notification
7.1.1 Quality or technical deficiencies shall be reported in a timely manner through QMIS for LBE, or SAP QM (NCR or WS) depending on the identified violation as defined in Section 6.
7.1.2 Potential non-conforming materials, products or work shall be pro-actively highlighted through the QMIS to avoid re-work.
7.1.3 A letter of concern signed by the PID Superintendent shall be addressed to the Department Head of the MCC/PMCC Chairman whenever
MCC/PMCCs are approved in the MPCS without ID signature due to converted and unresolved ‘YES’ items for other Organizations. This letter shall be copied to ID and PMT Department Managers. 7.1.4 A letter of concern signed by the ID Manager shall also be addressed to
the Manager of the MCC/PMCC Chairman whenever MCC/PMCCs are approved in the MPCS system and ID’s ‘YES’ items are converted to ‘NO’ without obtaining ID’s agreement. This letter shall be copied to Proponent VP, ES VP and PM VP.
7.1.5 A letter of concern signed by the ES Chief Engineer shall be addressed to the Admin Area head of the MCC/PMCC Chairman whenever a Facility is commissioned without Inspection Department’s
review/signature on the MCC/PMCC. This letter shall be copied to Internal Auditing, ES VP and PM VP.
7.1.6 Starting a project which excludes ANY Mandatory Saudi Aramco Engineering Requirement (MSAER), without securing the required waiver approved by applicable management level authority shall be issued a Worksheet.
7.1.7 Initiators, approvers and other interested parties of quality issue notifications shall be in accordance with Appendix E, “Table of
Responsibilities for Quality Issue Notification.”
7.1.8 Third Delinquent Worksheet (DWS3) shall be copied to Internal Auditing for their follow-up action.
7.2 Agreed Completion Date (ACD) for LBEs, NCRs and Worksheets
7.2.1 PID PQM, SAPMT Senior Project Engineer or Lead Project Engineer and the Contractor Quality Representative are responsible for determining the initial Agreed Completion Date (ACD) for LBEs, NCRs and Worksheets. 7.2.2 When no agreement on the ACD of any type/category of Quality
Notification could be reached, the ACD shall be decided mutually by the next level of authority from ID and PMT, depending on the Quality Notification category.
7.2.3 If an extension of ACD is justified and mutually agreed by ID & PMT representatives, one-time basis approval of ACD extension is allowed. If no agreement of the new ACD is reached by the ID and PMT initiators and approvers, the ACD shall be established by the next higher signature level(s) per the below matrix.
Quality Notification Type ID Rep PMT Rep
Contractor’s Internal NCR ID Field Supvr PMT Project Engineer
Logbook Entry (LBE) ID Field Supvr PMT Project Engineer
NCR ID Unit Supervisor PMT Sr. Project
Engineer
Worksheet ID PQM PMT Project Manager
In case a conflict on establishing the ACD continues, the PMT Department Manager shall make the final decision.
7.3 Handling of Contractor’s Internal NCR
7.3.1 Saudi Aramco strongly encourages all Contractors to take advantage of all opportunities to enhance their quality management system
implementation and to fully utilize their internal QA/QC system towards a high project quality delivery.
7.3.2 ID shall initiate escalation if a Contractor does not act to correct quality/technical non compliances within the mutually agreed ACD. 7.3.3 To encourage Contractors’ QC Team to implement their internal quality
management system effectively, the Contractors’ recommended completion date shall be accepted, unless found unreasonable by PMT project engineer and the ID Field Supervisor.
7.3.4 When the Contractor’s QC personnel report and document a quality non-compliance, ID shall follow the work process per Appendix B,
“Contractor’s Internal NCR.”
7.3.5 When an Internal NCR has been issued by the Contractor’s QC, Saudi Aramco quality notification shall be recorded by PID in the “General Comments” category of the QMIS, for the purpose of Lessons Learned collection. The QMIS entry shall be closed when the internal NCR is completed or when escalated to SA NCR due to non-compliance within the ACD.
7.4 Clarifications to Appendix D “Examples of Violations and Escalation Steps” 7.4.1 Clearance of “Unavailability of approved Contractor QA Manager or
Contractor QC Manager" in Appendix D shall be based on actual mobilization at the project site of the approved Contractor QA Manager or QC Manager and not just submission or approval of resumes’. Absence of an already approved and mobilized Contractor QA/QC Manager, due to verified emergency leave could be exempted by the PQM provided that the leave of absence shall not be more than seven (7) calendar days without an approved replacement.
7.4.2 Clearance of – “Insufficient QC Manpower (Deficiency > 10% of Plan)” in Appendix D shall also be based on actual mobilization of the approved Contractor QC personnel at the project site, and not just submission or approval of resumes’.
7.5 Non-Conformities Escalation Process
7.5.1 Escalation processes shall be in accordance with Appendix C, “Quality Issues Escalation Matrix”.
7.5.2 Logbook Entries (LBEs) shall be made for deficiencies defined as Minor.
LBEs shall be made through the QMIS or Manual logbook. (Manual logbook entry shall be done only in exceptional cases and shall have prior approval by the relevant Division Head.
7.5.3 Repeat of Moderate or Major violation within six (6) months will result to a Quality Notification starting at the next higher level of Violation Category and Notification. Repeat of a Minor violation due to negligence shall be considered as Moderate violation.
7.5.4 Repeated Internal Non-Conformance Report (INCR) within six (6) months shall be, as in Appendix B, “Contractor’s Internal NCR”:
7.5.4.1 Escalated to SA NCR if the Contractor failed to Report the Repeated INCR
7.5.4.2 Escalated to Violation-after-the-fact Entry in the QMIS if the contractor has detected and reported the Repeated INCR 7.5.5 Valid NCR shall be escalated to a Worksheet (WS) when any of the
following applies:
7.5.5.1 Valid NCR is not corrected or completed on the ACD (including the extension period, if extension is approved) 7.5.5.2 Valid NCR issued by Inspection Department is not approved
by SAPMT within five (5) working days
7.5.6 A Worksheet that was not resolved on or before the ACD, including the approved extension period (if extension is approved), shall be escalated to Delinquent Worksheet, after discussing and notifying the relevant PMT representative.
7.5.7 Once the project reaches its MCC stage, all open LBEs, NCRs,
Worksheets and DWS shall be transferred to MPCS. Items required for start-up or impacting safety are to be marked as ‘YES’ Items. All other items shall be designated as ‘No’ Items.
8 Responsibilities
8.1 Project Inspection Division Head
8.1.1 Reviews and approves or rejects PMT request to extend ACD for Worksheets
8.1.2 Approves Worksheets issued by the PQM/Sr. Supervisor 8.1.3 Initiates issuance of Delinquent Worksheet (DWS1)
8.1.4 Reviews and approves or rejects the deletion of SAP notifications 8.2 Project Quality Manager (PQM) or Senior Supervisor
8.2.1 PQM may initiate issuance of Non-Conformance Reports (NCRs) in lieu of Field Supervisor
8.2.2 Initiates issuance of Worksheet (WS)
8.2.3 Reviews and may grant one-time approval of ACD extension prior to escalation of valid NCR
8.2.4 Decides cases of violations not clearly defined in Section 6 and not listed in Appendix D “Examples of Violations and Escalation Steps”
8.2.5 Performs quality roles and responsibilities defined in this SAEP,
GI-0400.001 “Quality Management Roles and Responsibilities” and
GI-0002.710 “Mechanical Completion and Performance Acceptance of Facilities”
8.3 Project Inspector or Field Supervisor
8.3.1 Highlights to SAPMT any potential non-conforming material, product or work through the QMIS to avoid re-work.
8.3.2 Reports in a timely manner any quality or technical deficiency through the QMIS or SAP QM (LBE or NCR) depending on the committed violations as defined in Section 6 and categorized in Appendix C, “Quality Issues Escalation Matrix”
8.3.3 Field Supervisor may initiate issuance of Non-Conformance Reports (NCRs) in lieu of Project Quality Manager (PQM)
8.4 SAPMT
8.4.1 Ensures project full compliance with SAEP-302, “Instructions for
Obtaining a Waiver of a Mandatory Saudi Aramco Engineering Requirement”
8.4.2 Approves valid NCRs initiated by Inspection Department within five (5) working days
8.4.3 Performs quality roles and responsibilities defined in this SAEP, GI-0400.001 “Quality Management Roles and Responsibilities” and GI-0002.710 “Mechanical Completion and Performance Acceptance of Facilities”
9 Cancelled Quality Notifications
Submitted quality notifications in SAP QM shall not be marked for deletion without proper justification approved by PID Division Head. The approved justification shall be attached in the quality notification being “marked for deletion”.
Revision Summary
28 January 2012 New Saudi Aramco Engineering Procedure.
Appendix B – Contractor’s Internal NCR
Contractor’s INCR
PID to Initially record INCR in the General Comments of QMIS, marked as “For Info”
Moderate Or Major Violation? Repeat INCR? w/in 6 Months Yes Repeat Minor INCR? w/in 6 months No Yes No
Escalate INCR into SA-NCR, then Close INCR & QMIS
Yes
Follow the Quality Issue
Reporting Process
Close INCR & QMIS Change QMIS entry
to “Violation-after-the fact” Completed on ACD? No Yes Completed on Extension Date? Yes One-time extension granted? No No No One-time extension granted? No Completed on Extension date? Completed on ACD? No Yes Yes Yes Yes No Reported by Contractor? Yes No
Appendix C - Quality Issues Escalation Matrix Violation Type 1st Notification ESCALATION STAGES 1 2 3 4 5 Minor LBE NCR WS DWS1 DWS2 DWS3 Moderate NCR WS DWS1 DWS2 DWS3 - Major WS DWS1 DWS2 DWS3 - -
Appendix D - Examples of Violations and Escalation Steps
ESCALATION MATRIX
Recommended Phase for
Proactive Notification Violation Category
S/N Sample Violation
1. Forged Quality Documents Job X/Kick-off/Weekly QC
Meetings Major
2.
Procurement and/or Installation of counterfeit materials classified as inspectable per SAEP-1151
Note: For non-inspectable materials, PQM decides on the initial Violation Category
Job X/Kick-off/Weekly QC
Meetings Major
3.
Starting a project which excludes ANY Mandatory Saudi Aramco Engineering Requirement (MSAER), without securing the required waiver approved by applicable management level authority.
Job X/Kick-off Meetings Major
4. Unavailability of approved Contractor QA Manager or Contractor QC Manager Job X/Kick-off Meetings/
Weekly QC Meetings Moderate
5. Commencing of Special Process activity as specified in Schedule Q without approved procedures/personnel Job X/Kick-off/Weekly QC
Meetings Moderate
6. Concrete or Asphalt placement without pre-approval of the batching plant or mix design Kick off Meetings/Weekly QC meetings Moderate
7. Use of non-approved third party service providers Kick off Meetings/Weekly QC meetings Moderate
8.
Starting work without IFC Drawings or not submitting required Quality Documents as per Schedule “Q” Note: Categorization is PQM discretion
Kick off Meetings/Weekly QC meetings
Moderate Minor
9. Placing RVL/Inspectable materials and equipment with unapproved source Kick off Meetings/Weekly
QC meetings Moderate
10. Carrying out modification work on accepted systems (PROCESS-RELATED) without SA approval Kick off Meetings/Weekly
QC meetings Moderate
11.
Preservation and Storage of equipment and materials classified as ‘Inspectable’ per SAEP-1151 that are not in accordance with the approved quality plan and schedule “Q”
Note: Categorization is PQM Discretion
Kick off Meetings/Weekly QC meetings
Moderate Minor
12. Contractor’s Internal NCR not resolved at the approved completion date Kick off Meetings /
Weekly QC meetings Moderate
13.
Failure of the Contractor to control and implement the quality requirements of its batch plants, subcontractors and other service providers as required per Schedule Q. (e.g., Not assigning his own QC inspectors at the manufacturer and service provider locations per Schedule Q, and relying only on the In-House QC)
Kick off Meetings /
Weekly QC meetings Moderate
14. Contractor failure to conduct complete quality system audits per Schedule Q requirements Kick off Meetings /
ESCALATION MATRIX
Recommended Phase for
Proactive Notification Violation Category
S/N Sample Violation
15.
Contractor failure to conduct the 6-months Management Review Meetings and submit the results/recommendations to Saudi Aramco at the prescribed time
Kick off Meetings /
Weekly QC meetings Moderate
16. Insufficient QC Manpower (Deficiency > 10% of Plan) Job X / Kick-off Meetings/
Weekly QC Meetings Moderate
17.
Contractor failure to perform/implement inspection per approved ITP without adequate notification or
justification (HOLD POINT activities)
Kick off Meetings /
Weekly QC meetings Moderate
18.
Contractor failure to perform/implement inspection per approved ITP without adequate notification or
justification (Witness Point activities)
Kick off Meetings /
Weekly QC meetings Minor
19.
QC Personnel on part time basis, either routinely performing non-QC functions or covering QC jobs in a different geographical location without prior approval of the ID Area Field Supervisor
Job X / Kick-off / Weekly
QC Meetings Minor
20. Insufficient QC Manpower (Deficiency < 10% of Plan) Job X / Kick-off Meetings Minor
21.
Failure to submit, incomplete, poor quality or late submittal of the required weekly or monthly deliverables as required by Schedule Q
Kick off Meetings /
Weekly QC meetings Minor
22.
Poor or incomplete quality submittals or documentations
Note: PQM has the option to increase this category as MAJOR if the submittals are for critical activities such as hydro test package of oil & gas facilities
Kick off Meetings /
Weekly QC meetings Minor
23.
Poor, late or incomplete submission of the required weekly or monthly deliverables/documentations as required by Schedule Q
Note: PQM has the option to increase this category as MAJOR if the submittals are for critical activities such as hydro test package of oil & gas facilities
Kick off Meetings /
Weekly QC meetings Minor
24.
Failure to submit the required weekly or monthly deliverables/documentations as required by Schedule Q
Note: PQM has the option to increase this category as MAJOR if the submittals are for critical activities such as hydro test package of oil & gas facilities
Kick off Meetings /
Weekly QC meetings Minor
Legend:
L = e-Log Book entry
N = Non-Conformance Report (Q8 Notification) W = Worksheet (Q9 Notification)
Appendix E - Table of Responsibilities for Quality Issue Notification
Responsible Initiator / Issuer Approver Recipient /
Addressed To Interested/Copied Parties
NCR Field Supervisor/ PQM Project Engineer / Sr. Project Engineer PM Representative
Division Head, PID Division Head, PM Project Manager Proponent Site Rep. Worksheet PQM/ID Sr.
Supervisor
Division Head, PID Department
Manager, PM
General Manager, PM Sr. Project Engineer Department Manager, ID Division Head, PM Proponent Site Rep. DWS1 PID Division Head Department Manager, ID General Manager, PM Vice President, PM Vice President, ES Chief Engineer Project Manager Dept. Managers, PMT &
Proponent
DWS2 ID Manager Chief Engineer Vice President, PM
Vice President, ES General Manager, PM General Auditor Dept. Managers, PMT &
Proponent PID Division Head DWS3 Chief Engineer Vice President, ES Sr. Vice
President, E&PM Vice President, PM General Manager, PMT General Auditor Project Manager ID Manager
Dept. Managers, PMT & Proponent
Appendix F - Index
1 Scope………..……… 2
2 Purpose………..……… 2
3 Conflicts and Deviations………..……… 2
4 Applicable Documents………..…… 3
5 Definitions………...………… 3
6 Violations Definitions……… 4
7 Instructions……….……… 5
8 Responsibilities……….……… 8
9 Cancelled Quality Notifications……….……… 10
Appendix A – Quality Issues Reporting Process………... 11
Appendix B – Contractor’s Internal NCR……… 12
Appendix C – Quality Issues Escalation Matrix………. 13
Appendix D – Examples of Violations and Escalation Steps……….……….…. 14
Appendix E –Responsibilities For Quality Issue Notification……….……….…. 16