Engineering Procedure

SAEP-380 6 January 2013

Equipment Deficiency Report
Document Responsibility: Inspection Engineering Standards Committee

Saudi Aramco DeskTop Standards

Table of Contents

1 Scope............................................................. 2
2 Applicable Documents.................................... 2
3 Definitions....................................................... 2
4 Instructions..................................................... 4
5 Responsibilities.............................................. 4
6 EDR Escalation Process................................ 9

Appendix A – EDR Process Flowchart............... 10

Previous Issue: 10 April 2011 Next Planned Update: 6 January 2018

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Primary contact: Kakpovbia, Anthony Eyankwiere on +966-3-8801772

Copyright©Saudi Aramco 2013. All rights reserved.

Document Responsibility: Inspection Engineering Standards Committee SAEP-380
Issue Date: 6 January 2013
Next Planned Update: 6 January 2018 Equipment Deficiency Report

1 Scope

1.1 The objective of the Equipment Deficiency Report (EDR) is to take effective
corrective action to prevent recurrence of deficiencies. The EDR provides Saudi
Aramco approved suppliers with the opportunity to evaluate the effectiveness of
the quality management system and to identify where continual improvement of
the quality management system can be made.
Note: EDR system is not designed to correct the deficiency. Correction should be
handled through different processes.

1.2 The purpose of this Equipment Deficiency Report (EDR) is to ensure that
reporting, investigation, and documentation of equipment deficiencies are
handled consistently; this includes proper feedback to the EDR coordinator,
EDR originator, the supplier, and other appropriate organizations.

2 Applicable Documents

The following standards were used in the preparation of this procedure:

 Saudi Aramco Engineering Procedures

SAEP-301 Instructions for Establishing and Maintaining
Mandatory Saudi Aramco Engineering Requirements
SAEP-1150 Inspection Coverage on Projects

3 Definitions

Corrective action: An action taken to eliminate the causes of an existing nonconformity.

Correction: An action taken to eliminate existing nonconformity.

EDR Coordinator: An individual assigned by the Vendor Inspection Division (VID)

to coordinate the EDR investigation.

EDR Originator: An individual who creates and submits the EDR through SAP
notification (type Q4) to report the equipment deficiency.

Equipment Deficiency Report (EDR): SAP notification (type Q4) listing equipment
deficiencies with sufficient detail reflecting procurement document, specifications, the
equipment manufacturer and investigation result.

Equipment Deficiencies: Equipment/material deviations from specific purchase order

requirements including applicable Mandatory Saudi Aramco Engineering Requirements
(MSAERs).

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Document Responsibility: Inspection Engineering Standards Committee SAEP-380
Issue Date: 6 January 2013
Next Planned Update: 6 January 2018 Equipment Deficiency Report

Inspectable Material: Inspectable materials are classified by the Vendor Inspection

Division (VID) in coordination with the Responsible Standardization Agents (RSA).
The inspectable materials ( ) categories are defined below:
 Category A (IDCAT-A): When materials under this category are procured, it is
required that they are visually inspected (per the applicable Inspection Plan
“SA-175 form”) and released for shipment by the assigned Inspection Office. It is
also required that these materials are procured from approved manufacturing plants.
These materials should be linked to the applicable inspection plan “SA-175 form”.
 Category B (IDCAT-B): When materials under this category are procured, it’s a
requirement that the Inspection Office reviews the certificates (as per the applicable
inspection plan “SA-175 form”) and releases the materials for shipment. It is also a
requirement that these materials are procured from approved manufacturing plants.
These materials should be linked to the applicable inspection plan “SA-175 form”.
 Category C (IDCAT-C): When materials under this category are procured,
inspection is not required (i.e. no visual inspection and no certificate review).
However, it is required that these materials are procured from an approved
manufacturing plant. These materials should not be linked to any inspection plan
“SA-175 form”.
 Category S (IDCAT-S): When materials under this category are procured, it is
required that they are visually inspected or certificates are reviewed (as per the
applicable Inspection plan “SA-175 form”) and the materials are released for
shipment by the assigned Inspection Office. This category is applicable for
inspectable spare parts only. Approval for manufacturing plants supplying these
materials is not a necessary (to allow procurement of spare parts to run existing
equipment purchased from a supplier who might be put on hold). These materials
should be linked to the applicable inspection plan “SA-175 form”.
Note: Information concerning whether a specific material is inspectable or
non-inspectable can be obtained from the SAP system.

Mandatory Saudi Aramco Engineering Requirements (MSAER): Requirements

listed in SAEP-301 including SAMSS, SAES and Standard Drawings.

Major deficiency: The deficiency considered major if caused by manufacturing

problem in which quality and/or integrity of the material is compromised.

Responsible Inspection Office (RIO): Quality Control Unit of VID AOC-The Hague,
AOC-Tokyo and ASC.

Substandard Material: Any material delivered to Saudi Aramco that does not meet
material specifications, either as stated in the purchase order or fails in use when installed
in Saudi Aramco facilities. (As per Supply Chain Management Manual, SO18.05).

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Document Responsibility: Inspection Engineering Standards Committee SAEP-380
Issue Date: 6 January 2013
Next Planned Update: 6 January 2018 Equipment Deficiency Report

4 Instructions

4.1 This document shall be used to identify, investigate and, document substandard
inspectable material procured directly by Saudi Aramco Purchasing Department
or through contractors for Saudi Aramco projects. Equipment Deficiency
Reports (EDR) through SAP (quality notification type Q4) will be used to report
deficiencies on the inspectable and non-inspectable materials.

EDRs issued for non-inpectable material will be archived for a bi-annual analysis.

EDRs issued for deficiencies caused by transportation will be archived for future
analysis.

4.2 EDRs are issued when a purchased material arrives at a Saudi Aramco plant or
project site with a major deficiency (), or when it fails prematurely after being
put in service due to manufacturing problems.
Note: Examples of non-major deficiencies:

● Incorrect place of equipment(s) tag(s) or nameplate(s).

● Trivial Missing information in equipment(s) tag or nameplate (the Missing

information should not compromise the traceability otherwise, it should be
considered as major deficiency).

● Superficial scratches.

4.3 Online courses for EDR and other SAP QM transactions can be found at the
following web site: http://sapcc.aramco.com.sa/qmudoc/default.asp

5 Responsibilities

5.1 EDR Originator

5.1.1 The EDR originator shall gather all required information to report
equipment deficiency, and then create EDR quality notification in SAP,
and EDR quality notification is to be submitted within one month
from the date of creation otherwise notification is to be deleted.
Whenever possible, originator should attach to the EDR notification
copy of related documents (e.g., purchase order, change orders and
project specifications, internal correspondence, NCRs, photos,
investigation reports, etc.). External documents can be attached to the
EDR notification through the Service for Objects icon.
a) The proponent organization is responsible for originating the EDR
for material and equipment procured under Saudi Aramco purchase
orders for the benefit of plant operations or warehouse.

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Document Responsibility: Inspection Engineering Standards Committee SAEP-380
Issue Date: 6 January 2013
Next Planned Update: 6 January 2018 Equipment Deficiency Report

b) The Inspection Department Projects Inspection Units is responsible

for originating the EDR for material and equipment procured under
SAPMT contractor purchase orders and direct orders placed by
Saudi Aramco Purchasing Department for the benefit of a specific
project.
Note: The originator of an EDR for a project should maintain
construction contractor name, address and details under the tab
Contact persons > Vendor address.

5.1.2 Project Engineer, Project Quality Manager, and assigned Saudi Aramco
Inspection Representative shall be included in the interested party
section for all project material EDRs.

5.1.3 Once the EDR originator changes the quality notification status from
“Created” to “Submitted”, the system will automatically forward the
EDR via SAP workflow to the EDR Coordinator for further processing.
Note: The EDR will be accepted by the EDR Coordinator if all requested
information is available including:

 9COM number

 Vendor Address; name and complete details (construction

contractor name and details if for projects)

 Manufacture Address; name and complete details Clear description

title and write-up of the defects (Inspection Lot number should be
mentioned within the deficiency description write-up)

 PO Number (as applicable either the Aramco PO number or the

Contractor PO Number and Aramco Dummy PO Number)

 Complete 10-digit WBS number if for project

 Quantity of defective material items.

5.1.4 The EDR Originator can change or delete the notification prior the
submitting through SAP/PRC transaction IQS22.
Note: To delete the notification the originator should open the EDR in
transaction IQS22 and follow path to Notifications > Functions >
Deletion Flag > Set. This action will cancel the workflow; however, all
data will be archived.

5.2 EDR Coordinator

The EDR Coordinator shall perform the following functions when he receives
the EDR by workflow:

5.2.1 Review the EDR and ensure that it clearly specifies the purchase order,

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Document Responsibility: Inspection Engineering Standards Committee SAEP-380
Issue Date: 6 January 2013
Next Planned Update: 6 January 2018 Equipment Deficiency Report

vendor/manufacturer, manufacturing plant location, material/equipment,

and description of the deficiency with reference to the specific violated
requirement. EDRs that lack complete information should not be
processed. After 1 week from the reminder with no action, EDR
coordinator should escalate this to Originator’s Supervisor. EDR will be
completed without investigation if the required information still not
submitted after one week from the escalation.

5.2.2 The EDR Coordinator should process the task assignment within one
month after submitting date.

Deleting/Rejecting of the EDRs should be as follows:

● If multiple EDRs were created for the same issue and the same
material; one EDR will be considered and the remaining will deleted
accordingly
● If the Originator requests to cancel/withdraw the EDR; the EDR will
be deleted by the EDR coordinator
● Non-valid EDRs; such as EDRs issued for Missing documentation;
will be rejected after Quality Assurance Unit (QAU) Supervisor
concurrence

5.2.3 After an EDR notification is approved, the EDR Coordinator assigns tasks
of the reported deficiency to the RIO. The EDR will be completed (closed)
only after the RIO has finalized the corrective action, which includes
ensuring the effectiveness and prevention of the recurrence.

If fabrication defect involved more than one manufacturer located at

different RIO areas the tasks will be assigned to the RIO responsible for
final release of the equipment.

5.2.4 Follow-up on the on-going EDRs and review the results of assigned
tasks to RIO.
Note: Corrective action should address quality system failures rather than the
correction of the equipment deficiency. Consideration should also be
given to previous EDRs for the same manufacturer.

5.2.5 Once all tasks are completed, he reviews the EDR tasks and decides if
additional tasks are necessary to ensure that these defects will not recur
in the future.

5.2.6 After the new tasks have all been completed, EDR Coordinator once
again reviews the notification and if satisfied then, the EDR Coordinator
should complete the EDR notification in SAP within one month.

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Document Responsibility: Inspection Engineering Standards Committee SAEP-380
Issue Date: 6 January 2013
Next Planned Update: 6 January 2018 Equipment Deficiency Report

5.2.7 If the RIO investigation reveals that the deficiency was not created by
the equipment supplier the RIO should attach supporting documents to
the notification and complete the task. The EDR will be completed by
the EDR Coordinator.

5.2.8 Prepare a monthly EDR status report, EDR Index and submit it to the RIO
Supervisors and copy to the QAU Supervisor and VID Superintendent.
Note: Prior to issuing the monthly report the EDR Coordinator should view all
EDRs not yet completed through SAP/PRC transaction QM11 and
applying the following filters: Notif. Status = Outstanding and In proc.;
Notif. date = Jan-01 current year through current date; Notification type
= Q4.

5.2.9 Notifications pending in the system by Originator having status of CRTD

for more than 2 weeks, EDR Coordinator should contact the originator by
email and advise that EDR will be deleted within 2 weeks if not submitted.
Note: To delete the notification the coordinator should open the EDR in
transaction IQS22 and follow path to Notifications > Functions >
Deletion Flag > Set. This action will cancel the workflow; however, all
data will be archived.

5.3 Responsible Inspection Office Supervisor

The RIO Supervisor or his designee shall do the following:

5.3.1 Review the task forwarded to him by the EDR Coordinator via SAP
workflow.

Estimate and fix a reasonable Estimated Time of Completion (ETC) date

within the first 4 weeks from task assignment date. ETC date shall be
justified and at any point shall not exceed 6 months from the task
assignment date. EDR coordinator will revise the END date accordingly.

5.3.2 Track all on-going EDR tasks assigned to his Inspection Office and
ensure that actions are taken and followed-up. Ensure that the EDR is
completed within 8 weeks of the initial task assignment date or within
the agreed-upon date
Note: RIOs should Create Note under Services for Objects and indicate the
ETC date for each pending EDR. Create Note should also be used
for documenting status updates. It is recommended that RIOs should
update the EDR status with a new Create Note at least bi-
weekly. Even with no change in status a fresh note will provide a
positive indication that the EDR status is being monitored.

5.3.3 Provide written feedback to the manufacture indicating final disposition

of the EDR. i.e., acceptance or rejection the corrective action and the

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Document Responsibility: Inspection Engineering Standards Committee SAEP-380
Issue Date: 6 January 2013
Next Planned Update: 6 January 2018 Equipment Deficiency Report

action to prevent future occurrence.

5.4 Responsible Inspection Office Inspector

The assigned inspector shall do the following:

5.4.1 Review the task forwarded to him by the Responsible Inspection Office
Supervisor or his designee via SAP workflow. Then, he releases the task
in the EDR notification.

5.4.2 Obtain a copy of the purchase order, specification, etc., if it is not

provided with the EDR notification.

5.4.3 Review the reported deficiencies against the purchase order requirements
and contacts the EDR originator, proponent, supplier, etc., as necessary
to understand the nature of the deficiency. He makes a physical
inspection of the equipment, when deemed necessary, to confirm the
reported deficiency.

5.4.4 Conduct investigation with the manufacturer and/or inspection agency

(if applicable), and if the investigation result found satisfactory, RIO will
complete the assigned task and notify EDR coordinator. Otherwise, RIO
will conduct a quality evaluation and recommend a remedial action such
as revising the quality status to Quality System Approved with
Corrective action (QSAC) or Quality System On-Hold (QSOH).
(See EDR process flowchart)

5.4.5 Update the information in SAP concerning what has been done to
prevent recurrence of the deficiency in the future. He shall attach related
documents to the task in SAP.

5.4.6 Once all actions are taken and data are entered in the SAP system,
he will then complete the task of the EDR notification and report
investigation results along with initiated corrective action according to
the following sequence:
 Go to SAP inbox.
 Double-click on EDR notification to open.
 Create attachment(s) to task for related documents such as
nonconformance report, corrective action report, emails and other
correspondence that provide evidence that corrective action ensures
the effectiveness and prevention of the recurrence.
 Create note at task Services for Object confirming that RIO has
reviewed and accepted corrective action and future recurrence has

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Document Responsibility: Inspection Engineering Standards Committee SAEP-380
Issue Date: 6 January 2013
Next Planned Update: 6 January 2018 Equipment Deficiency Report

been prevented.

 Click on the icon RELEASE.

 Click on the icon SET STATUS and select radio button

number 30 PROCESSING.

 Click on the icon COMPLETE.

 Click on the icon SAVE to close the transaction.

6 EDR Escalation Process

A time lag in the processing of EDR notification will be escalated to management as per
the following table:

Escalated to Escalated to VID Escalated to Inspection

Process
QAU Supervisor Superintendent Department Manager
Complete Expiration of ETC After 4 weeks from After 8 weeks from
the task Expiration of ETC Expiration of ETC

If there is a strong justification for the delay or ETC needs to exceed 6 months, RIO
should Contact VID Superintended with the justification and get approval for the new
date to complete the task, and then escalation will take place after the new date agreed
upon.

Revision Summary
6 January 2013 Major revision

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Document Responsibility: Inspection Engineering Standards Committee SAEP-380
Issue Date: 6 January 2013
Next Planned Update: 6 January 2018 Equipment Deficiency Report

Appendix A –Submitted EDR Process Flowchart

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