WORK METHOD

Title:
Quality Notifications (Q-Notes) Halliburton Management System
Function/PSL: Document Number:
Region:
WM-GL-HAL-MM-302
Global Supply Chain – Materials Management

Owner:
Approved By: Job Revision By: Rev Date: Rev No: Page:
Supply Chain – Materials
Tat Lam Ginger Swolley 26-Sept-2014 A 1 of 4
Management

OVERVIEW

The use of Quality Notifications (Q-notes) is for documenting nonconforming products

received from suppliers by Halliburton Field P&M and Field Operations. This
document is to outline the roles and responsibilities in the Goods Receipts process as it
relates to the use of Q-notes.

This process applies to all Halliburton locations that have implemented the Q-note
process. Other locations should continue to use the Miss-shipment tool and the
Correction, Prevention, and Improvement (CPI) system until implementation. The Q-
note process pertains only to nonconforming materials procured from external
suppliers with a SAP Purchase Order.

Nonconforming materials received from Halliburton internal manufacturing plants will

continue to be documented via the MisShipments and Tool Return Reporting System
and the CPI system.

In the event of service failure to meet customer requirements as a consequence of a

nonconformance, the PSL shall create a CPI to document the nonconformance. The CPI
shall be assigned to Procurement, who will be responsible for documenting the
nonconformance against the supplier utilizing SAP Q-notes.

DEFINITIONS

Quality Notification (Q-note) - Documentation within SAP of a nonconformance

received from a supplier to the specified requirements provided by Halliburton and a
record of the actions taken.

Q-note types - There are several types of Q-notes available to select when a
nonconformance has been identified. Below are the definitions that are applicable to
Field P&M.

Printed version of this document is uncontrolled

 WORK METHOD
Title:
Quality Notifications (Q-Notes) Halliburton Management System
Function/PSL: Document Number:
Region:
WM-GL-HAL-MM-302
Global Supply Chain – Materials Management

Owner:
Approved By: Job Revision By: Rev Date: Rev No: Page:
Supply Chain – Materials
Tat Lam Ginger Swolley 26-Sept-2014 A 2 of 4
Management

Q2 - Nonconformance of purchased items or send out operations not meeting

Halliburton requirements which are discovered during receiving inspection in the
warehouse by the Materials group.

Q4 – Nonconformance of purchased items or send out operations not meeting

Halliburton requirements which are discovered after the initial receiving inspection.
i.e. found in stock, discovered during operations, or at a customer’s location.

Q5 - Nonconformance of purchased items or send out operations not meeting

Halliburton requirements which are discovered by the supplier prior to shipment of
materials and are requested for deviation approval through a non-conformance request
(approved by Technology via the Q-note).

RESPONSIBILITIES

Materials group
 Identify and segregate nonconformance for Q2/Q4 type Q-notes.
 Initiate the Q-note within SAP, according to the Q-note Creation visual work method.
 Ensure that all Q-note tasks have been completed.

Field operations group

 Identify and segregate nonconformance.
 Communicate the nonconformance to the designated PSL Service Quality (SQ)
Representative.
 Generate Job-or non-Job CPI for supplier issues discovered during field operations

PSL Service Quality group

 Communicate nonconformance to the Materials group.
 Approve Correction/Prevention Improvement (CPI) completed by the Supplier.

Buyer
 Ensure all information contained within the Q-note is accurate and that all required
fields have been completed.

Printed version of this document is uncontrolled

 WORK METHOD
Title:
Quality Notifications (Q-Notes) Halliburton Management System
Function/PSL: Document Number:
Region:
WM-GL-HAL-MM-302
Global Supply Chain – Materials Management

Owner:
Approved By: Job Revision By: Rev Date: Rev No: Page:
Supply Chain – Materials
Tat Lam Ginger Swolley 26-Sept-2014 A 3 of 4
Management

 Ensure Correction/Prevention Improvement form, has been approved by the PSL SQ

Rep.
 Complete Q-note via T-Code QM02.
 Responsible for the entire process for a Q5 type Q-note.

PROCESS

1. Detect the nonconformance.

2. Tag and segregate nonconformance.
3. Determine the appropriate Q-Note type and document the nonconformance via the
Q-Note.
 Q2 and Q4 type – initiated by the Materials group.
 Q5 type – initiated and completed by the Procurement group.
4. Initiate Q-note in SAP. (T-code QM01)
5. Insert Q-note tasks to the appropriate groups to review, disposition and
document follow-up actions.
6. CPI number, if a CPI was generated, must be documented in the Q-note. The PSL
SQ group is responsible for reviewing and accepting/rejecting any
corrective/preventative actions received from the supplier.
7. The Buyer, designated in the Q-note, is responsible for reviewing the Q-note and
ensuring all required fields are completed, the appropriate disposition code has
been set, and closing the Q-note after all tasks/activities are completed.

Q-notes should be closed within 30 days of origination.

Reference Documents

R171084, Qlikview Supplier Performance Scorecard

R165140, Qlikview Supplier Performance Report
SAP Report – T-code ZMQM3
PM-GL-HAL-MM-302, Good Receipts Process

Printed version of this document is uncontrolled

 WORK METHOD
Title:
Quality Notifications (Q-Notes) Halliburton Management System
Function/PSL: Document Number:
Region:
WM-GL-HAL-MM-302
Global Supply Chain – Materials Management

Owner:
Approved By: Job Revision By: Rev Date: Rev No: Page:
Supply Chain – Materials
Tat Lam Ginger Swolley 26-Sept-2014 A 4 of 4
Management

ST-GL-HAL-HMS-803, Nonconforming Product

ST-GL-HAL-HMS-806, Corrective and Preventative Action and Root Cause
Analysis
WM-GL-HAL-SQ-806, Documenting SQ Incidents and Performing the SIR
Process
PM-GL-HAL-HMS-806A, Initiating a CPIx`x
Q-Note Job Aid

Printed version of this document is uncontrolled