NCR Management Procedure - 000-ZA-E-009600 - B

PLANT LOCATION CUSTOMER JOB UNIT
KHURAIS – SAUDI ARABIA ARAMCO OVERSEAS COMPANY B.V. 032184 000

PROJECT / UNIT Doc no. 000-ZA-E-009600
KHURAIS AREA FACILITIES EXPANSION & SATELLITE GOSP
Sh. 2 of 12 Rev. B
CONTENTS
1. SCOPE AND PURPOSE ....................................................................................................................................... 3
2. TERMS AND DEFINITIONS .............................................................................................................................. 4
2.1. Abbreviations ................................................................................................................................................................ 4
3. REFERENCE .......................................................................................................................................................... 5
CONTRACTOR’s documents: ....................................................................................................................................................... 5
COMPANY’s contractual documents:.......................................................................................................................................... 6
4. PROJECT RESPONSIBILITIES ......................................................................................................................... 6
5. DESCRIPTION OF ACTIVITIES........................................................................................................................ 6
5.1. Workflow Description .................................................................................................................................................... 6
5.2. Identification, Evaluation and Recording ....................................................................................................................... 6
5.3. materials and equipment ............................................................................................................................................... 7
5.4. Non-conformity correction ............................................................................................................................................ 7
5.5. Corrective Action ........................................................................................................................................................... 8

5.5.1. Root cause analysis ....................................................................................................................................................... 8
5.6. Quality Records.............................................................................................................................................................. 9
5.7. Site Involved Functions .................................................................................................................................................. 9
6. FLOW DIAGRAM .............................................................................................................................................. 10
ATTACHMENT I: NONCONFORMITY REPORT ............................................................................................... 11
ATTACHMENT II: NONCONFORMITY REGISTER .......................................................................................... 12
________________________________________________________________________________________________________________________________
This document has been prepared by Saipem Spa for Aramco Overseas Company.
It contains information that is Confidential and such information is intended to be for the exclusive use of the individual or entity named above.
It shall be neither shown to third parties nor used for purposes other than those for which it has been disclosed. Page 2 a 12
Sh. 3 of 12 Rev. B
1. SCOPE AND PURPOSE
This document is in accordance with SCHEDULE “Q” § 7.5 “Control of Non-Conformance”, and
defines roles, responsibilities, methodologies and tools for the management of nonconforming
products related to materials, machines, fabrication, installation, construction works including
productive assets (equipment, etc). A Nonconformity is the non-fulfillment of a requirement and in
particular the mismatching of one or more required characteristics.
This Project procedure is not applicable to nonconforming products detected during Inspections
carried out at Supplier premises that are addressed by Post Order Service applicable Project
Procedure “QC REQUIREMENTS FOR SUPPLIERS OF MATERIALS AND EQUIPMENTS” doc.
No. 000-ZA-E-009310.
As requested by SCHEDULE “Q” § 7.5.3, CONTRACTOR, Subcontractors, manufacturers and/or

suppliers shall document all non-conformities to Contract requirements, approved CONTRACTOR
quality plan(s), inspection & test plans, and procedures. CONTRACTOR’s PQM (SITE) shall
forward to COMPANY records of all recorded non-conformities within forty eight (48) hours of
issue.
In addition to NCR issued by Contractor/Subcontractor managed according the provision of this
procedure, Contractor is responsible to respond to all NCR issued by COMPANY in writing within
48 hours of receiving notification of Non-conformance, including his proposed corrective actions,
as indicated in SCHEDULE “Q” § 7.5.6.
This document defines the work process to issue, record and manage Nonconforming products
and shall be followed for all Nonconforming products related to:
• Processes whose results are “embedded” in the product itself (e.g.: special processes, etc.) and
production equipment
• Non-conforming products
• Non-fulfillment of Applicable standards
• Faults and breakdowns having impact on production activities
• Etc.
This procedure doesn’t apply to:

• “normal” defects and “faults”/”breakdowns” during fabrication, construction and installation that
cannot compromise regular production activities and can be fixed locally in line with normal
practices and with approved procedure (e.g.: welding defects); these defects are normally
recorded through inspection and test reports;
• Over (excess) and shortage of material listed in the packing list or in the Purchase Order, the
“SITE BACK-CHARGE PROCEDURE 000-ZA-E-009407” is applied.
The target of this procedure is to carry out relevant actions to manage nonconforming products in
order to avoid its incorrect use, in particular:
• Avoid implementing processes that determine nonconforming products;
• Avoid that nonconforming material and items are accepted and used for production activities;
• Assure that Nonconformity management is carried out by authorized personnel in line with
defined procedures;
• Assure that relevant records are issued to systematically manage correction activities;
• Assure relevant Nonconformity distribution in order to share information with involved Functions.
________________________________________________________________________________________________________________________________
Sh. 4 of 12 Rev. B
2. TERMS AND DEFINITIONS
• COMPANY: “COMPANY” shall mean either SAUDI ARAMCO, Aramco Services

Company, or Aramco Overseas Company as indicated on the signatory
sheet of Contract. (SCHEDULE “Q” §1.2)
• CONTRACTOR: Saipem S.p.A. (OOK); Snamprogetti S.A. (IK)
• WORK: All work and services to be performed by CONTRACTOR
pursuant to this Contract.
• OOK: WORK to be performed outside the Kingdom of Saudi Arabia.
• IK: WORK to be performed within the Kingdom of Saudi Arabia.
• Construction
Subcontractor: Also identified as Construction Contractor is the Organisation(s), including
its Subcontractors to whom any part of the Works has been subcontracted
by by CONTRACTOR.
• Vendor/Supplier: Supplier of items or equipment or other goods.
• Non-conformity: the non-fulfilment of specified requirements.
• Approval Function: Project/Site Function that is responsible to approve the proposed correction
• Concession: Permission to use or release a product that does not conform to specified
requirements
• Correction: Action to eliminate a detected nonconformity
• Corrective action: Action to eliminate the cause of a detected nonconformity or other
undesirable situations
• Deviation permit: Permission to depart from the originally specified requirements of a product
prior to realization product prior to realization
• Inspection: Test and check activity on a specific item to verify the compliance with
relevant requirements
• Quality Function: Project/Site Function responsible for QMS Management
• Product: Result of a process
• Release: Permission to proceed to the next stage of a process
• Regrade: Alteration of the grade of a nonconforming product in order to make it
conform to requirements differing from the initial ones
• Repair: Action on a nonconforming product to make it acceptable for the intended
use
• Responsible Function: Project/Site Function that is responsible of the activities/product subject
to Nonconformity
• Rework: Action on a nonconforming product to make it conform to the requirements
• Reject/Scrap: Action on a nonconforming product to preclude its originally intended use
• Site: performed by Saipem organization or subcontractor, except Supplier
premises
2.1. Abbreviations
CONTRACTOR Function/Organization
Site Function
PM-C - Project Manager Construction Phase
________________________________________________________________________________________________________________________________
Sh. 5 of 12 Rev. B
CM - Construction Manager
FEM - Field Engineering Manager
FSE - Field Specialist Engineer
PQM (SITE) - Project Quality Manager (SITE)
MM - Project Material Manager
PreCOM - Pre-Commissioning Manager
COM - Commissioning Manager
PCOM - Pre-Commissioning Manager
WI - Welding Inspector
WS - Warehouse Superintendent
DS - Discipline Superintendent
Home office Function
PD - Project Director
PM-EP - Project Manager Engineering and Procurement Phase
TM - Technical Manager
PPRM - Project Procurement Manager
PQM (HO) - Project Quality Assurance Manager (Home Office)
PCM - Project Control Manager
PIC - Procurement QC Manager
PSL - Project Specialist Leader
PPL - Project Process Leader
HSEM - HSE Manager
ICT - Project Information Technology Coordinator
IM - Interface Manager.
Organisation
HSE - Health, Safety and Environment
QUAL - Quality
APR - Procurement
ACQM - Materials Purchasing Department
3. REFERENCE
CONTRACTOR’s documents:
STD-COR-QUAL-015 Corrective Actions Management

STD-COR-QUAL-001 Quality Reporting
STD-COR-QUAL-017 Management of Nonconforming Product
FORM-COR-QUAL-031 Nonconformity Report
000-ZA-E-009605 Quality System Improvement And Data Analysis Procedure
000-ZA-E-009040 CONSTRUCTION EXECUTION PLAN
000-ZA-E-009400 SITE COORDINATION PROCEDURE BETWEEN CONTRACTOR AND
SUBCONTRACTOR
000-ZA-E-009401 MATERIAL MANAGEMENT AT SITE
________________________________________________________________________________________________________________________________
Sh. 6 of 12 Rev. B
000-ZA-E-009407 SITE BACK-CHARGE PROCEDURE

000-ZA-E-009414 SITE MANAGEMENT OF SUPPLIER
COMPANY’s contractual documents:
Contract 6600033895 (IK)

SCHEDULE “Q” § 7.5 Control of Non-Conformance
SAEP-381 Project Quality Issues Escalation Process
COMPANY Standards and Procedures containing Quality Requirements
4. PROJECT RESPONSIBILITIES
PQM (SITE) is responsible to:

• ensure at project level that all Nonconformities are managed according to the present standard
procedure;
• ensure the filing of Nonconformities in the relevant Nonconformity Register (Attachment II);
• ensure correct reporting to Company Quality Manager in accordance with the Corporate
Standard Procedure “Quality Reporting” (STD-COR-QUAL-001-E).
Relevant Responsible Functions and Approval Functions are responsible to define, approve and
implement Correction, within their duties, as described in the following section.
5. DESCRIPTION OF ACTIVITIES
5.1. Workflow Description
Activities carried out for nonconforming products managements are: identification, evaluation,
recording, segregation, correction and relevant documentation management (see also Sect. 6
“Flowchart”).
5.2. Identification, Evaluation and Recording
A potential Nonconformity shall be raised to Quality Function for its evaluation by Originator or
following an event (e.g.: input from Event Report recording, if applicable). The Responsible
Function has the duty, with the coordination of the Quality Function, to define if the potential issues
must be managed as Nonconformities.
Once the Nonconformity is identified, the relevant Nonconformity Report shall be issued by the
Quality Function (in line with FORM-COR-QUAL-031-E, see a sample in Att. I) that shall be filled
with the following information, where applicable:
• Information of Project/Site
• Information of item/working phase
• Reference Document (e.g.: requirement, drawing, specification, procedure, standard, etc.)
• Project Function/Supplier/PO/Material/Subcontractor
• Date
• Nonconformity description
________________________________________________________________________________________________________________________________
Sh. 7 of 12 Rev. B
• Quantity
• Responsible/Approval/Quality Function involved
5.3. materials and equipment
Once a Nonconformity is detected, the Responsible Function shall assure that:

• Product/equipment is clearly identified and managed separately in order to avoid its use (e.g.:
segregation in a Quarantine Area). This activity is managed by the Project procedure “Material
Management at Site” doc. No. 000-ZA-E-009401;
• Product/equipment already installed or in use is identified and kept under control through the
appropriate methodology.
5.4. Non-conformity correction
CONTRACTOR’s PQM (SITE) shall forward to COMPANY records of all recorded non-
conformities within forty eight (48) hours of issue (SCHEDULE “Q” § 7.5.3).
As requested by SCHEDULE “Q” § 7.5.7, CONTRACTOR shall rework or repair and re-inspect
items in accordance with COMPANY approved procedures. CONTRACTOR shall notify the
Company Representative prior to final closure of any nonconformity.
Contractor is responsible to respond to all NCR issued by COMPANY in writing within 48 hours of
receiving notification of Non-conformance, including his proposed corrective actions, as indicated
in SCHEDULE “Q” § 7.5.6.
The Responsible Function, in cooperation with the Quality Function and involving
Supplier/Subcontractors if required, identifies potential Nonconformity correction, choosing (but not
limited to) among the following:
Concession Permission to use or release a product that does not conform to specified
(*) requirements.
Accept as it deviation Permission to depart from the originally specified requirements of a product
is permit prior to realization
regrade Alteration of the grade of a nonconforming product in order to make it
conform to requirements differing from the initial ones
Action on a nonconforming product to make it acceptable for the intended
repair
use and equipment breakdown/crash
rework Action on a nonconforming product to make it conform to the requirements
Reject/scrap Action on a nonconforming product to preclude its originally intended use
(*) Concession shall only be granted for a Non conformity or Nonconforming item after issuance of 'deviation
permit' by Company.
The Quality Function is responsible for carrying out the following actions:
• Evaluation of suggested correction with regard to Quality issues;
• Nonconformity Distribution matrix;
• Evaluation of Client involvement;
• Nonconformity signature and transmission to the Approval Function.
The Approval Function is responsible for carrying out the following activities:
• Evaluation of suggested correction with regard to Contractual/Time/Cost issues;
• Nonconformity signature and transmission to Quality Function for registration
________________________________________________________________________________________________________________________________
Sh. 8 of 12 Rev. B
When required by Contract, the Nonconformity is transmitted to the Client.

The Responsible Function carries out the correction within the defined time, giving written
information of the successful implementation and verification to all parties involved (Quality and
Approval functions as a minimum).
The Quality Function verifies if the correction is carried out properly through the execution of
required inspections or checks; if the correction is satisfactorily carried out, the Nonconformity is
considered closed and duly registered in the Nonconformity Register (see a sample in Attachment
II).
The Approval function, with the support of the Responsible function, evaluates the Cost and Time
impact of Nonconformities.
5.5. Corrective Action
Following Non-conformity analysis, if it is determined that the Nonconformity could potentially recur
or when considered mandatory, the Quality function, with the support of the Responsible and
Approval Functions, initiates a CAR process in accordance with “QUALITY SYSTEM
IMPROVEMENT AND DATA ANALYSIS PROCEDURE” doc. No. 000-ZA-E-009605 and in line
with STD-COR-QUAL-015 “Corrective Actions Management”.
As requested by SCHEDULE “Q” § 7.5.8, escalation process for unresolved quality issues
including delinquent quality concern notifications shall be in accordance with SAEP-381
requirements.
To prevent potential nonconformities the "Quality System Improvement and Data Analysis
Procedure" Doc. No. 000-ZA-E-009605 shall be utilized.
5.5.1. Root cause analysis

As requested by SCHEDULE “Q” § 7.5.4 CONTRACTOR’s PQM (SITE) shall investigate the root
cause of nonconformities and initiate Corrective Actions to prevent recurrence of nonconformities
maximum seven (7) days of the issue date.
The underlying reasons (s) for the occurrence of the reported nonconformity will be evaluated and
the cause description including and explanation will be stated (extract from the
NONCONFORMITY REGISTER):
9) STARTING CAUSE
Fault - Lack of maintenance
Fault - Non compliance with requirements
Fault - Wrong use
Product - Damaged material (transportation)
Product - Damaged material (material handling/preservation)
Product - Defective or incomplete material/supply
Product - Non compliance with requirements
Product - Wrong material specification
Product - Wrong traceability/identification
Service - Incomplete/wrong documentation
Service - Method statement definition
Service - Method statement implementation
Service - Non compliance with requirements
________________________________________________________________________________________________________________________________
Sh. 9 of 12 Rev. B
Service - Resources
Other
5.6. Quality Records
All documents relevant to Nonconforming products are managed according to Company/Project

relevant procedures.
CONTRACTOR’s PQM (SITE) shall maintain a summary of the open nonconformities (NCRs,
Discrepancy Reports, COMPANY Logbook entries, etc.) and submit it at the regular project
progress meetings (SCHEDULE “Q” § 7.5.5).
5.7. Site Involved Functions
Originator All
Quality Function Field Project Quality Manager
Responsible Function Field Engineer Manager/Discipline Superintendent
Approval Function Project Manager for Construction
________________________________________________________________________________________________________________________________
Sh. 10 of 12 Rev. B
6. FLOW DIAGRAM
Company involvement NC=Nonconformity
________________________________________________________________________________________________________________________________
Sh. 11 of 12 Rev. B
ATTACHMENT I: NONCONFORMITY REPORT
________________________________________________________________________________________________________________________________
Sh. 12 of 12 Rev. B
ATTACHMENT II: NONCONFORMITY REGISTER
________________________________________________________________________________________________________________________________

NCR Management Procedure - 000-ZA-E-009600 - B

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

NCR Management Procedure - 000-ZA-E-009600 - B

Uploaded by

Copyright:

Available Formats

PLANT LOCATION CUSTOMER JOB UNIT

KHURAIS – SAUDI ARABIA ARAMCO OVERSEAS COMPANY B.V. 032184 000

1. SCOPE AND PURPOSE ....................................................................................................................................... 3

2. TERMS AND DEFINITIONS .............................................................................................................................. 4

2.1. Abbreviations ................................................................................................................................................................ 4

CONTRACTOR’s documents: ....................................................................................................................................................... 5

COMPANY’s contractual documents:.......................................................................................................................................... 6

4. PROJECT RESPONSIBILITIES ......................................................................................................................... 6

5.1. Workflow Description .................................................................................................................................................... 6

5.2. Identification, Evaluation and Recording ....................................................................................................................... 6

5.3. materials and equipment ............................................................................................................................................... 7

5.4. Non-conformity correction ............................................................................................................................................ 7

5.5. Corrective Action ........................................................................................................................................................... 8

5.6. Quality Records.............................................................................................................................................................. 9

5.7. Site Involved Functions .................................................................................................................................................. 9

6. FLOW DIAGRAM .............................................................................................................................................. 10

ATTACHMENT I: NONCONFORMITY REPORT ............................................................................................... 11

ATTACHMENT II: NONCONFORMITY REGISTER .......................................................................................... 12

1. SCOPE AND PURPOSE

As requested by SCHEDULE “Q” § 7.5.3, CONTRACTOR, Subcontractors, manufacturers and/or

This procedure doesn’t apply to:

2. TERMS AND DEFINITIONS

• COMPANY: “COMPANY” shall mean either SAUDI ARAMCO, Aramco Services

STD-COR-QUAL-015 Corrective Actions Management

000-ZA-E-009407 SITE BACK-CHARGE PROCEDURE

COMPANY’s contractual documents:

Contract 6600033895 (IK)

PQM (SITE) is responsible to:

5.1. Workflow Description

5.2. Identification, Evaluation and Recording

5.3. materials and equipment

Once a Nonconformity is detected, the Responsible Function shall assure that:

5.4. Non-conformity correction

When required by Contract, the Nonconformity is transmitted to the Client.

5.5. Corrective Action

5.5.1. Root cause analysis

5.6. Quality Records

All documents relevant to Nonconforming products are managed according to Company/Project

5.7. Site Involved Functions

Company involvement NC=Nonconformity

ATTACHMENT I: NONCONFORMITY REPORT

ATTACHMENT II: NONCONFORMITY REGISTER

You might also like