DOCUMENT TYPE : QUALITY MANUAL

DOCUMENT CODE : QAM - 001

DOCUMENT TTLE : QUALITY MANAGEMENT MANUAL
DATE OF SSUE: 13/06/2012 STATUS : ACTVE REVSON : 2 Page 1 of 29
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APPROVED BY :
MANAGING DIRECTOR
ISSUED BY :
QUALITY MANAGER
TERNA S.A.
DOCUMENT TYPE : QUALITY MANAGEMENT MANUAL
DOCUMENT CODE : QAM -001
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Date of Issue: 13/06/2012 Rev. 2
REVISION PAGE
PARAGRAPH
NUMBER
DESCRIPTION OF ALTERATION
0 0 N N T T A AL L S SS SU UE E
1 1
R RE EV V S S O ON N D DU UE E T TO O R RE EV V S SE ED D S ST TA AN ND DA AR RD D
S SO O 9 90 00 01 1: :2 20 00 08 8
2 2
A AP PP PR RO OV VA AL L A AU UT TH HO OR R T TY Y O OF F T TH HE E Q QU UA AL L T TY Y
M MA AN NU UA AL L A AN ND D T TH HE E Q QU UA AL L T TY Y P PO OL L C CY Y
TERNA S.A.
DOCUMENT TYPE : QUALITY MANAGEMENT MANUAL
DOCUMENT CODE : QAM -001
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1. TABLE OF CONTENTS
1. TABLE OF CONTENTS ....................................................................................................................... 3
2. SCOPE OF APPLICATION.................................................................................................................. 5
3. BACKGROUND AND ACTIVITIES OF TERNA S.A. - GEK-TERNA GROUP .......................... 5
4. QUALITY MANAGEMENT SYSTEM ............................................................................................... 6
4.1. GENERAL REQUIREMENTS.................................................................................................. ..6
4.1.1. IN GENERAL.............................................................................................................................. 7
4.1.2. QUALITY MANUAL................................................................................................................... 7
4.1.3. DOCUMENT CONTROL ........................................................................................................... 8
4.1.4. RECORDS CONTROL ............................................................................................................... 9
4.2. MANAGEMENT`S COMMITMENT............................................................................................ 9
4.3. FOCUSINGONTHE CUSTOMER ............................................................................................. 10
4.4. QUALITYPOLICY...................................................................................................................... 11
4.5. QUALITYPLANNING(DESIGN) .............................................................................................. 12
4.5.1. QUALITY OBJECTIJES .......................................................................................................... 12
4.5.2. PLANNING OF THE QUALITY MANAGEMENT SYSTEM.................................................... 12
4.6. RESPONSIBILITIES, AUTHORITIES ANDCOMMUNICATION........................................... 13
4.6.1. RESPONSIBILITIES AND AUTHORITIES.............................................................................. 13
4.6.2. MANAGEMENT REPRESENTATIJE...................................................................................... 13
4.6.3. INTERNAL COMMUNICATION.............................................................................................. 13
4.7. REVIEWOF THE QUALITYMANAGEMENT SYSTEMBYTHE MANAGEMENT ............ 14
4.7.1. GENERAL................................................................................................................................. 14
4.7.2. REJIEW DATA (REJIEW INPUT) .......................................................................................... 14
4.7.3. REJIEW RESULTS (REJIEW OUTPUT) ................................................................................ 15
5. RESOURCE MANAGEMENT........................................................................................................... 16
5.1. PROVISIONOF RESOURCES.................................................................................................... 16
5.1.1. MEANS (RESOURCES) ........................................................................................................... 16
5.2. HUMANRESOURCES................................................................................................................ 16
5.2.1. GENERAL................................................................................................................................. 16
5.2.2. SKILLS, INFORMATION, TRAINING ..................................................................................... 16
5.3. INFRASTRUCTURE.................................................................................................................... 17
5.4. WORKENVIRONMENT............................................................................................................. 17
6. PRODUCTIVE PROCESS IMPLEMENTATION (PRODUCT REALIZATION) ....................... 18
6.1. PRODUCT REALIZATIONPLANNING.................................................................................... 18
6.2. CUSTOMER RELATEDPROCESSES........................................................................................ 19
6.2.1. DETERMINATION OF PRODUCT RELATED REQUIREMENTS ......................................... 19
6.2.2. REJIEW OF PRODUCT RELATED REQUIREMENTS.......................................................... 20
6.2.3. COMMUNICATION WITH THE CUSTOMER........................................................................ 20
6.3. DESIGNANDDEVELOPMENT................................................................................................. 20
6.3.1. DESIGN PLANNING................................................................................................................ 20
6.3.2. DESIGN INPUTS ..................................................................................................................... 21
6.3.3. DESIGN OUTPUTS, REJIEW, JERIFICATION, JALIDATION............................................ 21
6.3.4. CONTROL OF DESIGN CHANGES........................................................................................ 22
6.4. PURCHASES................................................................................................................................ 22
6.4.1. PURCHASE PROCESS ............................................................................................................ 22
6.4.2. PURCHASE INFORMATION .................................................................................................. 22
6.4.3. JERIFICATION OF PURCHASED PRODUCTS .................................................................... 23
6.5. PRODUCTIONANDPROVISIONOF SERVICES .................................................................... 23
6.5.1. CONTROL OF PRODUCTION AND PROJISION OF SERJICES......................................... 23
6.5.2. JALIDATION OF PRODUCTION AND SERJICE PROJISION PROCESSES...................... 23
6.5.3. IDENTIFICATION AND TRACEABILITY ............................................................................... 24
6.5.4. CUSTOMER PROPERTY......................................................................................................... 24
6.5.5. PRODUCT PRESERJATION................................................................................................... 24
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6.6. CONTROL OF INSPECTION, MEASURING ANDTESTINGEQUIPMENT .......................... 25
7. MEASUREMENT, ANALYSIS AND IMPROVEMENT................................................................. 25
7.1. GENERAL REQUIREMENTS..................................................................................................... 25
7.2. MEASUREMENT ANDMONITORING..................................................................................... 26
7.2.1. CUSTOMER SATISFACTION.................................................................................................. 26
7.2.2. INTERNAL AUDITS................................................................................................................. 26
7.2.3. MONITORING AND MEASURING PROCESSES ................................................................... 27
7.2.4. PRODUCT MONITORING AND MEASUREMENT................................................................ 27
7.3. CONTROL OF NON- CONFORMINGPRODUCTS.................................................................. 27
7.4. DATAANALYSIS ....................................................................................................................... 28
7.5. SYSTEMIMPROVEMENT......................................................................................................... 28
7.5.1. CONTINUAL IMPROJEMENT ............................................................................................... 28
7.5.2. CORRECTIJE ACTIONS ......................................................................................................... 29
7.5.3. PREJENTIJE ACTIONS.......................................................................................................... 29
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2. SCOPE OF APPLICATION
The Quality Management Manual presents the Quality Policy of TERNA S.A. and
describes the Quality Management System applied by the company, as established in
order to fulfill the SO 9001:2008 standard and the company's Quality Policy. The Quality
Management System covers all market sectors in which the company has commenced
business activities:
preparation for participation in Construction Project Tendering Procedures
organization and construction of construction projects up to the stage of the
project's final acceptance by the customer and the completion of the
respective contractual requirements.
The Company is committed to implement the Quality Management System it has
developed.
3. BACKGROUND AND ACTIVITIES OF TERNA S.A. - GEK-TERNA GROUP
n 1999 GEK and TERNA, in the context of the development of the construction branch,
and in order to better utilize their capabilities, decides to unite their powers and to create
a strong and flexible Group.
GEK was established in 1969 and has been mainly active in the construction of
ndustrial Buildings. n short time, its activities expanded to building projects of all kinds
and to special constructions.
TERNA was established in 1972 and has since then been active in undertaking and
performing a wide spectrum of composite construction and investment projects.
Today, TERNA S.A. is one of the most important Contractor Companies in Greece with
a strong presence in the regions of Southeastern Europe and the Middle East. TERNA
covers the entire spectrum of Construction, ndustrial and Energy projects both of the
Public and of the Private Sector. Today, it successfully implements a substantial number
of major and complex infrastructure, Building and Energy projects.
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TEPNA is a subsidiary company controlled 100% by the GEK-TERNA S.A. Group, which
covers the sectors of construction activity (private and public projects, building and
infrastructure projects), concessions, i.e. major self-financed projects (e.g. Motorways),
Public-Private Partnerships (PPP), energy production and real estate development.
TERNA possesses high level infrastructure as regards owned equipment and T
systems, a modern organizational structure and particularly experienced human
recourses.
TERNA's development is incorporated into the overall strategy of the GEK-TERNA
Group and is based on:
ts capability to build major projects achieving a level of quality, effectiveness and
reliability which secures long-term stable relationships with its customers and a large
share in the construction market.
The extensive investment program it implements and the improvement of the skills of
its human resources through continuous education and training.
4. QUALITY MANAGEMENT SYSTEM
4.1. GENERAL REQUIREMENTS
The written Quality Management System of the company fulfills the requirements of the
SO 9001:2008 standard and supports the company's Quality Policy. Special emphasis
is given in this written Quality Management System to the identification and satisfaction
of the customer's requirements.
The procedures developed are organized under an "activities group" rationale (process
oriented), in order to ensure the functionality of the company's Quality Management
System.
n particular it:
identifies and documents the processes comprising the system
specifies the interactions between processes
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specifies criteria and methods in order to ensure efficient operation and control of
processes
secures the availability of required information in order to support and monitor the
processes
t also carries out measurements and analyses of processes and specifies measures in
order to achieve planned objectives and continual improvement.
DOCUMENTATION REQUIREMENTS
4.1.1. IN GENERAL
The Quality Management System comprises the following levels of documentation:
Quality Manual
Quality Procedures
Work nstructions
Quality Forms
4.1.2. QUALITY MANUAL
The method of mplementation of the requirements of the SO 9001:2008 standard
through the written quality management system (with the above structure) is depicted in
the table showing the correspondence between the SO 9001:2008 standard and the
Written Quality Management System of the company, such table being attached hereto
as Annex (B)
The Quality Management Manual describes the quality policy of TERNA, the general
structure of the company and the method of fulfillment of the requirements of the SO
9001:2008 standard in each of its paragraphs in order to confirm that each action has
been performed according to the requirements.
Job
Descriptions
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Quality Procedures specify "who does what and when, as well as the method of
documenting that each action has been implemented according to the prescribed
requirements as well as which data will be filled with a view to properly manage acquired
knowhow.
Work nstructions describe how a job is done and are developed wherever their lack
could influence quality.
Forms and Lists: The forms are used in order to provide "evidence that the system is
properly managed and that the quality requirements are met. Completed forms are
hereinafter referred to as Documents and Files. The Lists are usually ancillary files
supporting specific procedures.
Job Descriptions specify/summarize authorities -responsibilities of every employee of the
company.
4.1.3. DOCUMENT CONTROL
A written procedure for the management of documents and data has been established
by the company.
All quality forms are drafted in a specific manner, prescribed under the respective
procedures, in order to avoid errors and omissions.
All quality documents are inspected before being issued, both as regards their
sufficiency and conformity with the company Quality Policy by the person responsible for
their approval and as regards their compliance with the SO 9001:2008 standard by the
person responsible for their issuance.
TERNA maintains a Master Controlled Documents List showing the current status of
quality documents.
At TERNA the original of the controlled quality documents is maintained under the
responsibility of the Quality Manager who distributes the documents of the Quality
Management System in a controlled manner to all company employees, wherever
necessary.
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Cases of mass reproduction of system forms are handled with care in order to avoid the
use of previous/invalid issues.
Previous, revised and invalid issues are destroyed, except of some Original Documents
of previous issues kept for legal and/or historical reasons and which must be identified in
order to ensure that they will not be used.
Changes are reviewed and approved by the same person who has carried out the initial
inspection and approval. n case this is not possible, a new person with sufficient
experience in this matter is appointed.
Where required, the nature of the change is noted in the documents.
4.1.4. RECORDS CONTROL
Completed forms constituting proof of successful achievement of quality and fulfillment
of the customer's requirements, as well as forms which are useful for the continual
improvement of the Quality Management System are kept as records at the company
and are specified in the respective procedures.
The manner of identification, collection, filling, storage and maintenance of the records
as well as the period of their maintenance is set out under the respective procedures.
MANAGEMENT RESPONSIBILITY
4.2. MANAGEMENT'S COMMITMENT
The company Management is committed to fully satisfy the requirements of its
customers.
The company fully observes legislative and other requirements during the construction of
all projects (building, infrastructure, energy etc. projects).
A customer-centered policy is implemented in order to satisfy the needs and
expectations of its customers and to gain their trust, while, at the same time, the
company's interest is always focused on issues of quality, technological development,
support etc.
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TERNA fulfills the above requirements through its organization pursuant to the Quality
Management System according to the SO 9001:2008 standard based on:
the qualified and specialized personnel operating within the framework of a perfectly
organized internal structure;
the constant training of its employees and the evaluation of its results;
the continual evaluation of its suppliers and associates;
the continual improvement and modernization of the work environment and
equipment;
the constant updating on issues pertinent to its activities.
The Management's Commitment relates to the everyday level of operation of the
company and is documented by the decisions carried at the Quality Management
System Review meetings of the Management.
4.3. FOCUSING ON THE CUSTOMER
The company identifies the needs and expectations of the customers in combination with
the technological developments in the sector and introduces the experience acquired
from each customer to the existing service provision framework.
Furthermore, TERNA identifies the needs of all persons or organizations directly or
indirectly influenced by it and it handles their requests as if they were customers of the
company. Hereinafter we will designate the above category of the population as ndirect
Customers.
Moreover, the company is able to assess the percentage of achievement of the quality
objectives specified by itself as regards customer satisfaction, thus being able to
constantly improve the quality of its services.
For the above reasons it has established and implements a series of procedures
securing that the provision of services to its customers meets the quality requirements.
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4.4. QUALITY POLICY
Our Companv is committed to achieve the Maximum Possible Degree of Satisfaction of
the customer, and the full observance of all contractual requirements and modern state-
of art best practices.
Our obfectives are.
Building of construction profects.
Within the period specified under the contractual obligations or within the time
schedules specified bv the companv.
Incorporating the excessive knowhow of the companv and fostering its growth at
the same time
Research and utili:ation of new activities related to the Companvs subfect-manner
Constant efficiencv improvement.
The obfectives are achieved through the existence and completion of the following
conditions.
Detailed planning of companv activities
Maintenance of experienced and active personnel
Confirmation of the fact that companv emplovees understand the requirements of the
customer

Renewal and constant maintenance of the Mechanical equipment
Monitoring market requirements and scientific developments
Knowhow transfer from and to each profect through an organi:ed communication
svstem
Continual improvement of the Qualitv Management Svstem of the Companv based on
market requirements and experiences gained from the profects
Careful evaluation of suppliers and subcontractors
Training of the Companvs personnel
The Managing Director
George Peristeris
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4.5. QUALITY PLANNING (DESIGN)
4.5.1. QUALITY OBJECTIVES
The company establishes quality objectives as regards the construction and operation of
the projects, which are both qualitative and quantitative, and are measured, analyzed
and revised during Quality Management System Review meetings of the Management.
The recording and measurement of the objectives is carried out based of documented
indices.
4.5.2. PLANNING OF THE QUALITY MANAGEMENT SYSTEM
At TERNA S.A. planning in quality issues is carried out through the implementation of
the written Quality Management System and the establishment of system control and
improvement procedures.
The Quality Management System planning for each project undertaken by TERNA is
based on the determination of the following:
Activities influencing the quality of the project
Required inspections and tests
Equipment and resources in general required for the project
Personnel qualifications
Required control and progress records
Observed specifications and regulations
A Project Quality Manager is appointed for each project, who, in cooperation with the
Company's Quality Manager and the entire staff, undertakes the planning of the project's
Quality Management System according to the requirements of the SO 9001 standard,
the specifications, the state-of-the-art, as described in the respective procedures of the
quality management system.
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4.6. RESPONSIBILITIES, AUTHORITIES AND COMMUNICATION
4.6.1. RESPONSIBILITIES AND AUTHORITIES
The organizational structure of TERNA S.A. is described in the attached Organization
Chart of Annex (A), where the levels of responsibilities and authorities of the staff
directing, performing and verifying works influencing the quality of company's activities
are laid down.
The distribution of responsibilities and authorities at TERNA S.A. is described at an initial
level in the Company's Job Descriptions or in the Job Descriptions of each project and
more detailed at a second level in the System Procedures
. .
4.6.2. MANAGEMENT REPRESENTATIVE
The Management Representative is responsible for ensuring that the Quality
Management System is effectively implemented, fulfilling the principles of the SO
9001:2008 standard and of the Quality Policy, by all company employees as regards the
role played by each employee and procures its continual improvement and upgrading.
The Management Representative directly cooperates with the Project Quality Managers
in order to monitor the effective implementation of the System, informs the Company's
Management on all quality issues either directly or by convening the Quality
Management System Review Board and secures the implementation of the measures
specified by the Review Board.
4.6.3. INTERNAL COMMUNICATION
nternal communication within the company is secured at all levels and for all activities
required for the maintenance of the Quality Management System. n particular:
mportant information is communicated through the notice boards located at obvious
spots.
The findings of nternal Audits are communicated to the interested parties
n particular, the company's Quality Policy is notified to all company employees using
one of the following manners:
This Manual
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Direct publication (posting).
Training of employees in quality matters
Quality procedures
The Management closely monitors through the Management Representative the
establishment and implementation of the Quality Policy.
4.7. REVIEW OF THE QUALITY MANAGEMENT SYSTEM BY THE
MANAGEMENT
4.7.1. GENERAL
A written Procedure for the planning and conduct of the Quality Management System
Review Meeting is established in the Company. The review is carried out at least once in
each year.
During the Review it is examined:
whether the Quality Managements System is sufficient and effective
whether Quality Policy has been achieved
whether the level of training of the staff covers the needs pertinent to the works
suggestions for the improvement of the Quality Management System in general
Members of the Quality Review Board are the Chairperson of the BoD, the Managing
Director of the Company, the Technical Directors, the Management Representative, the
Quality Manager(s) and any other person deemed necessary by the Management
Representative. The findings of the Review are notified to the higher levels of the
company's management.
4.7.2. REVIEW DATA (REVIEW INPUT)
The Management Representative in cooperation with the Quality Manager(s), before the
commencement of the Quality Management System review meeting, organize a file with
all data to be used during the meeting, such file been forwarded to the participants.
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The file contains:
1. Findings of Audits
2. nformation Customer Complaints Data regarding degree of customer
satisfaction
3. Data on the implementability and functionality of the procedures
4. Records of non-conforming products.
5. Suggestions on points requiring the development and implementation of
Corrective Preventive Actions
6. Progress- evaluation of the implementability of corrective actions decided at the
previous Quality Management Review Meeting
7. Monitoring measures decided by the previous Quality Management Review
Meeting.
8. Changes that might influence the quality of the Management System.
9. New technologies and trends
4.7.3. REVIEW RESULTS (REVIEW OUTPUT)
nclude decisions and measures related to:
The improvement of the effectiveness of the Quality Management System and its
procedures.
mprovements on projects under construction by the company in relation to
customer requirements.
Resources required for improvement.
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5. RESOURCE MANAGEMENT
5.1. PROVISION OF RESOURCES
5.1.1. MEANS (RESOURCES)
At TERNA the means (resources) required for the operation of the company at all levels
are identified as specified in the respective Procedures.
The resources required may be divided into the following categories:
Smooth operation of the company
dentification, evaluation and participation in tendering procedures for the
construction of projects and conclusion of contracts with the customer.
Construction of projects.
The identification of the resources is performed for each of the aforementioned sectors
due to the particularities of each sector. Through the organization of the company and
the communication structures the resources required for the qualitative operation of each
sector are identified and evaluated and the method of their provision is organized.
5.2. HUMAN RESOURCES
5.2.1. GENERAL
TERNA has established a written procedure based on which the human resources
required for the establishment and improvement of the Quality Management System are
defined and provided. t is ensured that the members of the staff whose work affects the
quality of services have the proper training and experience.
5.2.2. SKILLS, INFORMATION, TRAINING
The company has established a written procedure in order to secure that:
Works affecting the quality of projects are performed by employees having suitable
skills, information and training.
Training needs are identified
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Proper training procedures are planned and implemented
the distribution and transfer of knowhow from experienced company employees to
younger employees will be achieved
Records are kept regarding training/experience of personnel.
5.3. INFRASTRUCTURE
The needs for the improvement of material-technical infrastructure are analyzed and
identified at the company and the necessary measures are implemented in order to
ensure its continual improvement. The Equipment of the company is fully recorded and
codified and the operating status of each device is indicated. Maintenance cards are
provided for each device, insofar as its operation is crucial, and a file for the device is
also provided where all documents related to the operation of the respective device are
included.
The needs for the improvement of the infrastructure result from the Quality Management
Review Meeting, the nternal Audits, the corrective and preventive actions and the
collected problem reports.
5.4. WORK ENVIRONMENT
TERNA ensures a satisfactory work environment:
During the construction and the operation of the projects the work-areas are
functional, manageable and safe.
All health and safety regulations are observed.
A written risk assessment is regularly prepared.
An emergency plan has been established.
Fire safety design.
The proper safety singing has been installed in the company's premises.
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Employees are obliged to use the appropriate personal protective equipment and
access to construction sites is controlled
Suitable accident prevention equipment is provided
Finally, the equipment necessary for diminishing the effects of an accident has
been installed
6. PRODUCTIVE PROCESS IMPLEMENTATION (PRODUCT REALIZATION)
6.1. PRODUCT REALIZATION PLANNING
Written Procedures have been established at TERNA in order to secure that
construction and operation is planned and performed under controlled conditions.
"Controlled conditions include the following:
All personnel performing crucial work for the quality of the project is selected, trained
and evaluated in order to ensure its capability to successfully complete its work.
Personnel which has not yet completed its training or deemed as having received
insufficient training for the performance of any specific activity is employed in
activities not affecting the quality of the project or is closely supervised by a
supervisor as regards every part of its work..
During all phases of the construction of the project all kinds of tests are conducted in
order to ensure that the product will be of the required quality. Checks are conducted
by experienced and trained personnel using the equipment necessary.
The company's equipment is sufficiently maintained and calibrated on a
prescheduled basis in order to ensure continuity of the works. Equipment not
calibrated is only used for ancillary measurements conducted by the company. An
Equipment List exists (including crucial equipment for the quality of the final product),
based on which all equipment is monitored.
Personnel training records and maintenance control and equipment calibration records
are kept.
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6.2. CUSTOMER RELATED PROCESSES
6.2.1. DETERMINATION OF PRODUCT RELATED REQUIREMENTS
TERNA possesses a written description of the methodology based on which the
identification of the requirements related to the final product is ensured.
n particular, the method of identification of the requirements related to the product is
detailed therein for each sector where TERNA is active.
TERNA has established written Procedures in order to secure that contracts (tenders,
project contracts, customer orders) are reviewed.
During the preparation phase of the tender for a project, the contractual requirements
are analyzed by experienced personnel and the ability of the company to meet the
requirements is ensured. Justification may be provided for the tender upon a respective
request of the customer.
n case the project is awarded to TERNA, experienced personnel confirms, following an
examination of the contract, that the requirements of the customer are clear and
documented and ensures that any differences between the contract and the tender are
solved.
During the project organization phase the contract is examined and its requirements
regarding time, quality and work control are determined.
During the implementation of the project, oral orders of the customer are documented
and reviewed and any amendments to the contract are examined, in order to evaluate
their effect on the works already completed, on the time schedule and on costs.
Communication with the customer on contractual issues is in writing and the respective
correspondence is kept based on a written procedure.
Required information is available at the Company's Management.
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6.2.2. REVIEW OF PRODUCT RELATED REQUIREMENTS
The company reviews the requirements related to the product during each phase of its
construction or production. The detailed methodology used for the review of the
requirements is described in the procedures.
6.2.3. COMMUNICATION WITH THE CUSTOMER
Communication with the customer is ensured by means of the written Quality
Management System where the methodology used in such communication is detailed.
Communication prevents the production or construction of products not compliant with
the customer's requirements, solves any discrepancies, enables the identification and
review of all requirements laid down by the customer in relation to the construction of the
product, enables the identification of the degree of customer satisfaction and, finally,
enables the recording of any complains.
6.3. DESIGN AND DEVELOPMENT
TERNA S.A. possesses a written Procedure ensuring control and review at the required
stages of the designing in order to meet the specified requirements.
6.3.1. DESIGN PLANNING
n case that the development of a Design is a requirement under the tender and/or the
Contract documents; the Company analyzes the documents (tender or contract) for
defining:
subject-matter and categories of the design (type of design, degree level etc.)
design stages/phases
design specifications and applicable Legislation
milestones and time schedule data for the development of the design.
Based on the aforementioned the categories/specializations of the designers who will
have to be engaged in the preparation of the design are specified and a design
development plan is laid down, specifying the basic deadlines and the persons
responsible for monitoring its development.
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6.3.2. DESIGN INPUTS
The design inputs, which include the following, are determined:
Minimum contractual requirements of the customer which define the design
boundaries and provide project objectives and operation and performance
requirements
Applicable legal and regulatory requirements
nformation from previous similar designs, where possible
All the essential design requirements
The sufficiency and completeness of design inputs is examined, while, where
deficiencies, ambiguous or conflicting requirements are ascertained, all required actions
are undertaken for the provision of supplementary clarifications by the Company or the
customer, if necessary.
6.3.3. DESIGN OUTPUTS, REVIEW, VERIFICATION, VALIDATION
ntermediate and final design outputs are recorded, verified and reviewed as regards
their correctness. t is also examined whether they meet the requirements of the design
inputs and the prescribed requirements.
The review of the design by the competent personnel is then conducted, which
comprises:
Examination whether all design specifications have been met
Examination whether the performance of the works, as designed, is feasible
Examination whether it is possible to procure the materials, as specified in the
design
Examination whether the construction of the project is feasible based on the
prescribed acceptance criteria
Determination of construction characteristics and parameters that are crucial for
safety and proper operation
Examination whether the construction of the project is financially feasible
The designs approved by the company are submitted for approval to the customer
according to the call for tenders or the contract of the Project.
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6.3.4. CONTROL OF DESIGN CHANGES
All changes and amendments to be made on any design are documented, identified,
reviewed, verified and approved by competent persons before their implementation. The
review of the amendments includes an evaluation of the effects of the design
amendments.
6.4. PURCHASES
6.4.1. PURCHASE PROCESS
The Company has established written procedures in order to ensure that the products
and services to be procured meet specified requirements.
The procurements procedure includes equipment procurements, equipment
maintenance services, equipment calibrations, personnel training and special services.
6.4.2. PURCHASE INFORMATION
All the suppliers of goods and services cooperating with the Company are evaluated in
order to ensure that their features correspond to the requirements. Thus, in order to
select a supplier the following are examined, if applicable:
References to the supplier company's history.
References to the production system or the quality system by independent
auditors.
nspection / Audit of the supplier's premises by TERNA.
The Company maintains a list of approved suppliers for goods and services that are
crucial for the quality of the final product.
The Company issues official documents for all procured goods, equipment and services.
Procurement documents, as applicable, include information such as:
Description of procured material.
Purpose of the procurement
Packaging requirements
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Specifications
Certification requirements
Manual requirements
Storage/transportation requirements
Handling requirements
Material labeling (serial or lot number)
Delivery time.
6.4.3. VERIFICATION OF PURCHASED PRODUCTS
Materials procured by TERNA are checked upon delivery to ensure that they meet
agreed requirements. Conducted checks are scheduled for each case and recorded in a
special form.
6.5. PRODUCTION AND PROVISION OF SERVICES
6.5.1. CONTROL OF PRODUCTION AND PROVISION OF SERVICES
TERNA has established written Procedures and work instructions in order to ensure that
the completion of the projects as well as their operation is designed and conducted
under controlled conditions.
6.5.2. VALIDATION OF PRODUCTION AND SERVICE PROVISION PROCESSES
All production and service provision processes implemented by TERNA S.A. are
controlled and validated in an organized manner.
As regards the project construction sector, the validation of the processes is conducted
by means of the organization and implementation procedure for the new project and, in
particular, through the development of the Project Quality Management System and the
Project Quality Plan.
n general, for each company activity:
Process review and approval criteria are specified
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Human and material resources used are evaluated in order to meet the requirements
of each process
Methods used comply to the existing specifications and the state-of-the art
Required records are kept
Finally, the causes making a review and re-validation of the processes necessary are
identified.
6.5.3. IDENTIFICATION AND TRACEABILITY
dentification and traceability at the projects implemented by the company is enabled,
to the extent necessary (contractual requirements, project significance) and feasible
(nature of works), by means of:
the labeling of the materials incorporated in the project
the filing of drawings and specifications
the completion and filing of control and progress forms
the filing of information, such as material certificates, order forms,
agreements with subcontractors/suppliers etc..
the Project Log
6.5.4. CUSTOMER PROPERTY
For the materials supplied by the customer a special procedure is developed for the
project, describing the entire flow of the material (from its procurement to its
incorporation in the project) and how to contact the customer in case of non-
conforming material.
6.5.5. PRODUCT PRESERVATION
TERNA S.A. identifies for each product the necessary conditions which must exist for its
preservation until it is incorporated in the project but also during its delivery to the
customer. Therefore, all storage requirements are observed both for the materials to be
incorporated in the project and for the materials to be used at any stage of the operation
of the company. Also, all measures necessary are taken in order to preserve the
products to be incorporated in the projects during transportation.
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6.6. CONTROL OF INSPECTION, MEASURING AND TESTING EQUIPMENT
TERNA has established a written procedure for the management of measurement
equipment in order to ensure that:
the method of calibration of the measuring equipment is specified
the suitable devices (i.e. those capable of providing the required accuracy and
reliability) are selected
the manner of handling, maintenance and storage of such devices ensures their
accuracy and suitability for use
no measuring devices are used that have not been calibrated except in cases where
their use aims to a simple indication.
The Company maintains a list including all devices and their calibration plan.
The handling, maintenance and storage of measuring devices are carried out according
to the specifications of their manufacturers, in order to ensure their accuracy and
suitability for use.
Calibration of the measurement equipment is conducted at prescribed intervals, based
on the instructions of the manufacturer. Calibration is carried out by an accredited
organization and the respective certificates are kept.
n case a device is no longer accurate, the consequences of its use are examined and
required measures are decided.
7. MEASUREMENT, ANALYSIS AND IMPROVEMENT
7.1. GENERAL REQUIREMENTS
The company has, on the one hand, specified the operation standards and the objective
to successfully perform its activities and, on the other hand, has planned and maintains
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an effective and decentralized measurement, analysis and continual improvement
system for the Quality Objectives, and the operation and the efficiency of the Quality
Management System.
7.2. MEASUREMENT AND MONITORING
7.2.1. CUSTOMER SATISFACTION
A written procedure exists at TERNA S.A. based on which the degree of customer
satisfaction in relation to provided services is examined and necessary measures are
undertaken in order to improve such satisfaction.
The identification of the customer satisfaction degree (customers may be direct or
indirect, as described under the respective procedure) is carried out by means of the
dispatch to the customer of the evaluation form for the offered services. Completed
forms are received by the Quality Manager who analyses and evaluates the data. The
processing of the aforementioned forms enables the determination of the customer
satisfaction indices. The company's objective is the improvement of the above indices. n
order to achieve the objectives the respective corrective and preventive actions are
planned.
7.2.2. INTERNAL AUDITS
nternal Quality Audits at the company are always conducted according to the written
Procedure, in order to maintain an effective System.
Audits are scheduled by the Quality Manager based on the importance and complexity
of the works, the experience of involved personnel and of the findings of previous audits.
Auditors may belong to the company's personnel (but they must be independent from
the audited activity) and must be trained in the conduct of audits or may be external
specialized consultants.
The findings of Audits are recorded and notified to the personnel responsible for the
audited unit. Deviations or failure trends observed during Audits are investigated in order
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to undertake suitable Corrective Actions. Finally, competent persons monitor the actions
undertaken in order to abolish any deviations.
The findings of the Audits are examined at the Quality Management Review Meeting.
nternal Quality Audits reports are kept as records.
7.2.3. MONITORING AND MEASURING PROCESSES
TERNA S.A. has established a written procedure based on which critical processes are
monitored. A flow chart exists depicting the processes flow and the conducted controls.
Each activity is monitored and both its significance for the production of the final product
and measurable performance indicators are established. The evaluation regards both
compliance of the manner of performance of the specific activity in relation to the
provisions of the respective written procedure and the procedure itself.
The purpose of all aforementioned actions is the identification of the points for which
corrective or preventive actions must be undertaken in order to achieve the objectives
prescribed by the agency.
7.2.4. PRODUCT MONITORING AND MEASUREMENT
Controls and measurements of products have been specified in order to ensure the
quality of the product as well as it compliance with the specifications/requirements laid
down by the Management or prescribed by the legislation.
7.3. CONTROL OF NON - CONFORMING PRODUCTS
TERNA S.A. has established a written Procedure for the management of materials and
works not compliant with the specified requirements. t includes the methods of
identification, recording, assessing and immediate handling of the non-conformity as well
as the method for the notification of the non-conformity where needed.
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The authorities and responsibilities for the acceptance and disposal/handling or non-
acceptance of the non- conforming products are defined, as described in the respective
Procedure, depending on the case in question
Non-conforming materials are clearly distinguished in order to avoid their use until their
disposal.
Non-Conformities are monitored in order to confirm their settlement.
Non-Conformities and the method of their settlement are examined during the Quality
Management Review Meeting.
The company keeps records of Non-Conformities, including the actions taken and the
decisions made.
7.4. DATA ANALYSIS
Achievement or failure to achieve the preferable Quality of the works provided by the
Company is monitored through the Quality Records.
Observance and updating of Quality records serves the following objectives:
Documentation of provided works.
Documentation of the operation of the Quality Management System.
Support for traceability requirements.
Provision of information and measurable results regarding performance and
effectiveness of the company's works.
7.5. SYSTEM IMPROVEMENT
7.5.1. CONTINUAL IMPROVEMENT
Written Procedures exist at the company for the continual improvement of the Quality
Management System.
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Customer complaints, non-conformity reports, findings of internal and external quality
audits and expected trends of problem occurrence are recorded and investigated in
order to determine the required measures for the avoidance of their repetition.
Each action taken for the improvement of the Quality Management System is defined as
a Corrective or Preventive Action. Competent for the approval of corrective and
preventive actions is the Management Representative of TERNA S.A., who, when he
deems it expedient based on the particularities of each case and the significance/ extent
of the corrective/preventive action, requests approval by the competent Director of the
Company through the Quality Management Review Meeting.
Upon completion of the implementation of the corrective/preventive actions their effect
on other elements of the Quality Management System is examined.
7.5.2. CORRECTIVE ACTIONS
At TERNA S.A., non conformities, customer complaints and supplier problems are
examined by the Management Representative in order to indentify the causes and to
plan the most effective method for the solution of the problems and the prevention of a
repetition of the problems.
Respective records are kept.
7.5.3. PREVENTIVE ACTIONS
The prevention of repetition of errors and omissions in a project, the incorporation of new
information, technology and developments into the system and the identification, by
means of the monitoring of the system, of its failure trends, lead to the preparation of the
Preventive Actions Plan. Respective records are kept.