Inspection Procedure

00-SAIP-13 Project Assessment Procedure Document Responsibility: Inspection Engineering Standards Committee 19 August 2009

Saudi Aramco DeskTop Standards

Table of Contents 1 2 3 4 5 6 7 8 9 10 11 Scope............................................................. 2 Purpose.......................................................... 2 References..................................................... 2 Definitions...................................................... 2 General.......................................................... 3 Assessment Team......................................... 4 Planning and Preparation............................... 4 Responsibilities.............................................. 5 Assessment Execution .................................. 6 Reports.......................................................... 7 Follow-Up....................................................... 8

Appendix I............................................................ 9 Appendix II......................................................... 10

Previous Issue: 21 December 2005 Next Planned Update: TBD Revised paragraphs are indicated in the right margin Primary Contact: Kakpovbia, Anthony E. on 966-3-8747226 CopyrightSaudi Aramco 2009. All rights reserved.

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Document Responsibility: Inspection Engineering Standards Committee Issue Date: 19 August 2009 Next Planned Update: TBD

00-SAIP-13 Project Assessment Procedure

Scope This procedure establishes the minimum criteria for planning, performing and reporting of quality assessments on LSTK and LSPB type contracts for capital projects (IK/OOK) exceeding 50 million USD. Excluded from the scope are GES, LS, CR, and RC contracts.

Purpose The purpose of this SAIP is to evaluate the effectiveness of the implemented quality system in meeting specified quality objectives at any phase of the project.

References SCHEDULE Q SAEP-1023 SAEP-1150 Quality Systems for Major LSTK Projects Saudi Aramco Engineering Procedure / Inspection Coverage in Projects Saudi Aramco Engineering Procedure, Contractor Quality Assurance and Quality Control Requirements General Instruction Manual, Mechanical Completion and Performance Acceptance of Facilities General Instruction Manual, Quality System Roles and Responsibilities

GI-0002.710 GI-0400.001
Note:

The Project Plan and Inspection & Test Plan shall be considered as references.

Definitions Corrective Action: An action taken to eliminate the causes of any existing nonconformity or other undesirable situation in order to prevent recurrence. Lead Assessor: A person who has the qualification to perform and manage quality assessments. Nonconformity: A nonfulfillment of specified requirements. Objective Evidence: Qualitative or quantitative information, records or statements of fact pertaining to the quality of an item or service, or to the existence and implementation of a quality element, which is based on observation, measurement, or test and which can be verified.
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Document Responsibility: Inspection Engineering Standards Committee Issue Date: 19 August 2009 Next Planned Update: TBD

00-SAIP-13 Project Assessment Procedure

Observation: A statement of fact made during an assessment and substantiated by objective evidence. Quality Assessment: A systematic and independent examination to determine whether the assessed quality activities and related results comply with planned arrangements and whether these planned arrangements are implemented effectively and suitable to achieve objectives. Quality Manual (QM): The document consisting of, or referring to, the recorded quality system procedure(s) intended for the overall planning and administration of activities which impact the quality within an organization. Quality Plan (QP): The document setting out specific project organizations, interactions, quality practices, resources and sequence of activities relevant to the contract. It shall explicitly define the direct control function and procedures which inspect, measure, test, record and regulate procurement, fabrication, construction, installation, pre-commissioning and/or mechanical completion activities through established methods, specifications and standards for all disciplines involved. Saudi Aramco Inspection Representative (SAIR): A person who is responsible for inspection activities during the design & procurement phase of the Project. Subcontractor: Any Company with whom the CONTRACTOR has an agreement to supply services or materials for the WORK, including the Subcontractor suppliers, vendors and/or manufacturers. LSTK: LSPB: VID: PID: OID: SPC: SAPMT: 5 General 5.1 5.2 Assessments are routinely scheduled or may be prompted by significant deficiencies or changes in the project quality system. Assessments are planned and scheduled by the Inspection Assessment Group as detailed in Paragraph 6. Assessments shall be coordinated with the responsible SPC, SAIR, or PID Unit Supervisor for scheduling with the contractor.
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Lump Sum Turnkey Lump Sum Procure and Build Vendor Inspection Division Project Inspection Division Operation Inspection Division Single Point Contact Saudi Aramco Project Management Team

Document Responsibility: Inspection Engineering Standards Committee Issue Date: 19 August 2009 Next Planned Update: TBD

00-SAIP-13 Project Assessment Procedure

5.3

A minimum of two assessments will be conducted during the project life for all LSTK and LSPB capital projects. Verification of implemented corrective actions is in addition to the minimum assessments. ID Manager or SAPMT Project Manager may call for assessments on projects any time during the project lifecycle.

5.4

Assessment Team 6.1 6.2 The lead assessor and assessment team members shall be nominated by the Inspection Assessment Group Leader and approved by the ID Manager. An assessment team shall consist as a minimum of a Lead Assessor and an Assessor. Additional assessors may be assigned to the assessment team depending on the assessment objective. Project assessments shall be performed by qualified assessors. Lead assessors should have received formal training in conducting assessments to the ISO 9000 series of standards and meet the requirements for assessor or lead assessor as defined by the Registrar Accreditation Board (RAB) or Institute for Quality Assurance (IQA). Whenever a team or individual carries out an assessment, a lead assessor shall be placed in overall charge. SAPMT shall be invited to observe all assessments.

6.3

6.4

Planning and Preparation 7.1 7.2 The Inspection Assessment Group shall establish and maintain a list of active Projects designated for assessments. The lead assessor shall prepare a detailed assessment schedule and coordinate with the other team members participating in the assessment regarding their area of responsibilities and assessment planning activities as required. This schedule shall contain the following information as a minimum: BI Project name Contractor Location Contract Type Planned assessment dates Assigned Lead Assessor
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Document Responsibility: Inspection Engineering Standards Committee Issue Date: 19 August 2009 Next Planned Update: TBD

00-SAIP-13 Project Assessment Procedure

7.3 7.4 7.5

Assessment Team members Schedule date of project onstream Project Manager Single Point Contact (when applicable) Saudi Aramco Inspection Representative (SAIR) Planned Assessment date

The schedule shall be maintained and updated as a minimum quarterly by the Inspection Assessment Group to add projects for assessment as appropriate. Assessors shall utilize the appropriate checklists and add select items from project documentation on the checklist form. The Lead assessor shall notify the PMT for the projects scheduled for assessments in writing at least two weeks prior to the scheduled assessments through the SAIR, SPC, or PID unit supervisor by (see Attachment I).

Responsibilities 8.1 8.2 The Inspection Assessment Group Leader administers and coordinates the Inspection Department's project quality assessments. The Inspection Assessment Group Leader prepares and maintains the list of assessments scheduled during a calendar year. He coordinates changes and/or additions to the assessments with SAIRs, SPC, or PID Unit Supervisor. He adds projects to the Assessment Log for follow-up action if advised by the lead assessor. The Inspection Assessment Group Leader reviews and forwards the assessment reports to the ID Manager for approval. The Lead Assessor is responsible for all phases of the assessment and has the authority to make final decisions regarding the conduct of the assessment and any findings. He represents the assessment team with contractor's management and submits the assessment report and Corrective Action Request(s) in a timely manner. The Lead assessor defines the assessment requirements for team members, plans the assessment, briefs the assessment team, prepares the assessment agenda, reports critical nonconformities to the assessed party immediately, reports any major obstacles encountered during the assessment and reports on the assessment results upon completion of the assessment.
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8.3 8.4

8.5

Document Responsibility: Inspection Engineering Standards Committee Issue Date: 19 August 2009 Next Planned Update: TBD

00-SAIP-13 Project Assessment Procedure

8.6

The assessment team is required to prepare for the assessments by reviewing the contractor's Quality Plan, Schedule A, B, G, H & Q of the Contract Document, applicable quality system standards (ISO-9001/9002 or equivalent Industry Standards), Saudi Aramco Materials System Specifications (SAMSS), Saudi Aramco Engineering Standards (SAES), Saudi Aramco Engineering Procedure (SAEP), Industry Standards, and Inspection & Testing Requirements (SA-175Forms). The assigned assessors shall familiarize themselves with the assessment requirements and prepare appropriate working documents and checklists within their area of responsibility to meet the assessment objectives. The project assigned SAIR, SPC, or PID Unit Supervisor shall notify PMT of the assessment date, location and agenda. Each assessor shall prepare a list of findings and appropriate Corrective Action Requests for his area of responsibility and forward to the Lead Assessor.

8.7

8.8 8.9

Assessment Execution 9.1 Opening Meeting Upon arrival at the site, the lead assessor shall conduct an opening meeting. The purpose of the opening meeting is to: 9.2 Introduce the members of the assessment team. Review the scope and the objectives of the assessment. Provide a short summary of the methods and procedures to be used to conduct the assessment. Establish the official communication links between the assessment team and the assessed party. Confirm that the resources and facilities needed by the assessment team are available. Confirm the time and date for the closing meeting and any interim meetings of assessment team and the assessed party management.

Performance of the Assessment 9.2.1 Objective evidence shall be collected through interviews, examination of documents and observations of activities in the area of concern. Areas suggesting non-conformities should be further investigated. Information gathered through interviews should be verified from other independent sources such as physical observations, measurements, and records.
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Document Responsibility: Inspection Engineering Standards Committee Issue Date: 19 August 2009 Next Planned Update: TBD

00-SAIP-13 Project Assessment Procedure

9.2.2

All assessment observations shall be documented. Prior to the closing meeting with the assessed party, the assessment team shall review their observations and agree on the non-conformities to be reported to the assessed party management. The assessment team shall ensure that these are documented in a clear and concise manner and are supported by objective evidence. Nonconformities shall be identified in terms of the specific requirements of the standard or other related documents against which the assessment was conducted.

9.3

Closing Meeting 9.3.1 The assessment team shall hold a closing meeting with the assessed party's management and those responsible for the functions concerned. The Saudi Aramco Project Manager shall be invited to attend the closing meeting. The main purpose of this meeting is to present the assessment observations to the assessed party's senior management to ensure that assessment results are clearly understood. The contractor should be requested to acknowledge all nonconformities. Disagreements should be highlighted and discussed with contractor and SAPMT. The time frame of submitting corrective action and implementation shall be agreed upon during the closing meeting with the concerned parties.

9.3.2

9.3.3

9.3.4

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Reports 10.1 The lead assessor shall submit the assessment report to the Inspection Assessment Group Leader within two weeks of the assessment completion for review and processing. The ID manager will approve the final report. As a minimum, the assessment report shall include the following information: a) b) c) d) e) f) g) Executive summary Assessment dates Purpose of assessment Assessment scope (i.e., listing of documents in preparing the assessment, including references to prior assessments.) Persons contacted during the assessment Assessment Team Details of assessment/results
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10.2

Document Responsibility: Inspection Engineering Standards Committee Issue Date: 19 August 2009 Next Planned Update: TBD

00-SAIP-13 Project Assessment Procedure

h) 10.3 10.4 10.5

Corrective actions and the agreed on time frame.

Requests for corrective action shall be documented on Corrective Action Request (CAR) form (Attachment II) and attached to the Assessment Report. Copies of all assessment reports and Corrective Action Requests shall be maintained in the Inspection Assessment Group's files for up to five years. Working papers for individual assessments are maintained in the Inspection Assessment Group's files until the assessment is closed and all corrective action originating from the assessment have been effectively implemented. Working papers include as a minimum: a) b) c) d) Attendance Register Assessment Checklists Assessment notifications Assessor notes

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Follow-Up 11.1 When corrective action is required by the contractor, the action taken by the contractor shall be documented on the Corrective Action Request form(s) (CAR) and returned to the Inspection Assessment Group within the agreed upon time frame. Depending on the severity of the assessment findings, follow-up visits may be required upon receipt and review of the contractor's corrective action. In general, for assessments, resulting in numerous nonconformities, follow-up visits should be scheduled by the Inspection Assessment Group to verify effective implementation of corrective action. Whenever practical however, the assigned SAIR, SPC or PID Unit Supervisor should conduct follow-up assessments to verify implementation of the corrective action and complete the CAR Form.

11.2

19 August 2009

Revision Summary Revised the "Next Planned Update". Reaffirmed the contents of the document, and reissued with editorial changes.

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Document Responsibility: Inspection Engineering Standards Committee Issue Date: 19 August 2009 Next Planned Update: TBD

00-SAIP-13 Project Assessment Procedure

Appendix I

Inspection Assessment Group

, Dhahran Tel: XXX-XXXX Fax: XXX-XXXX XXXXXXXXX ID/IAG-XXXX CONTRACTOR QUALITY ASSESSMENT _____________________ _____________________ _____________________ Please be informed that the Inspection Assessment Group is scheduling a contractor assessment for the following project: BI: Contractor: Location: Date: Attached for your information is the agenda of the intended contractor assessment that will be conducted by, Lead Assessor, ___________________ If you have any questions, please contact XXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXX, Group Leader Inspection Assessment Group __________________________
cc: Project Mgr., XXXXXX Project, BI-XXXX Supt., VID, E-1340A, Dha. Supt., PID, E-1340B, Dha. Supvr., QA Unit, East Park, Rm 120, Dha. Assessment File, IAG Letter book Lead Assessor

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Document Responsibility: Inspection Engineering Standards Committee Issue Date: 19 August 2009 Next Planned Update: TBD

00-SAIP-13 Project Assessment Procedure

Appendix II Corrective Action Request

Project: BI Number: Contractor: Location: Company Representative: Nonconformity: Assessment Report Number: Assessment Date(s): Lead Assessor:

Reply Requested by: Cause: Action taken to Correct:

Originator:

Approved by:

Date:

Action to Prevent Recurrence:

Date for Full Compliance:

Contractor Representative: Contractor Reply is Satisfactory: Contractor Reply is not Satisfactory: Action taken is Satisfactory: cc: [ ] [ ]

Date: Originator/Inspector: Implementation Verified by: Date: Date:

Project Mgr., XXXXXX Project, BI-XXXX Supt., VID, E-1340A, Dha. Supt., PID, E-1340B, Dha. Assessment File, IAG

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