QUALITY PLAN POWER TRANSFORMERS MANUFACTURING

CUSTOMER: SIDOR C.A.PROJECT: POWER TRANSFORMERS FOR R5 SUBSTATION ENLARGEMENT

Job Quality Assurance Plan

ABB Transformers

Pereira

C

U

S

T

O

M

E

R

S

MARKETING &

SALES

ENGINEERING

DISTRIBUTION TRANSFORMERS

POWER TRANSFORMERS

LOGISTIC

SUPPORT PROCESSES*

SUPPLYMNGMNT.

HUMANMNGMNT.

INFORMATION SYSTEMS

INTEGRAL QUALITYMNGMNT.

FINANCIAL CONTROL

MAINTENANCE & GENERAL SERVICES

SUPP

LIER

S

CUSTOMERS

SERVICE

* Mutual Interaction

CO

MM

UN

ITYSTRATEGIC MANAGEMENT

TRANSFORMER TESTS & OIL ANALYSIS

Code: F01- MGIPTG001

PROCESS

LEADER

OBJECTIVE

SUPPLIER INPUT

SU

B

PARTICULAR ACTIVITIES DOCUMENT RESPONSIBLE OUTPUTS Customer

To define and to update the scope of the System of Management

To define and to update the Processes of the System of Management, its sequence and interaction

To lead the definition of the Programs and Indicators of the System of Management

To give support in the update of Aspects and Environmental Impacts and Dangers and Risks

To define and to communicate practices for the Operational Environmental Control and of OHS for the processes, suppliers and contractors

To identify and access to Legal Requisites and other acquired requisites

To lead the planning of changes that affect the System of Management

To identify and to plan the response to potential situations of accidents and emergencies, and to prepare and to mitigate the possible illnesses that are

associated

To carry out activities of verification of the operational controls defined at the environmental level and OHS

To carry out the external management of the residues

To take care of the minor injuries

To support technically the Processes of Manufacture

To carry out periodic tests to the procedures of preparation and response before emergencies

To prepare and to execute Programs of calibration / verification (including software when necessary)

To update and to communicate the Legal Requisites applicable to the activities, products and services carried out and given by the Organization

To evaluate periodically the fulfillment of the Legal Requisites and others applicable, and to keep records of this evaluation

To manage the Legal Fulfillment with the interested Parties

To keep the program: School of the Quality

To coordinate the activities of Continuous Improvement and QIT

Mgt. System Processes

Requisites of Mgt. SystemContract with Certifier entityReports of previous Audits Indicators of management A

udits

To plan and to carry out the Audits of the Mgt. System

NEZCP026NTC ISO 9001:2000

NTC ISO 14001:2004NTC OHSAS 18001:2000

QITManager of PTQInternal auditorsAudited Persons

Plans of Actions of ImprovementRecords

Managerial report of AuditsCertificates of Mgt. System

General managerCertifier Entity

Processes of Mgt. SystemInterested Parties

QIT

Coordinators of Evacuation

NEZCP046Manager of PTQ

Assistants of PTQ

Competent and Careful PersonnelMinutes of the QIT

Plans of ActionRecords of Continuous Improvement

Quality SchoolBA PTPR 1LAA000022

Updated Matrix of Legal Requisites Supports of Legal Fulfillment

Records

PT Division Interested parties

Certifier EntityCustomers

CIDET

PT Division

PT DivisionInterested parties

AuditorsCertifier Entity

Manager of PTQManager of PTH

Records of Operational ControlQuality records

Record of Evaluation of SimulationsEquipments and devices of measurement and

monitoring calibrated / verifiedRecords

Equipped Classrooms

Internal auditors

Pro

cess

of I

mpr

ovem

ent

of th

e In

tegr

al Q

ualit

y

Computing EquipmentsQIT/Managing Boards

PTQ Manager (Representative of the Direction for Mgt. System) Equipped offices

HUMAN RESOURCES

Mgt. System Processes

Brigade of Security Room of Metrology

MANAGEMENT OF RESOURCES

To plan and to implement the tools of the System of Integral Management of the PT Division, so that both the operation and the control of the Processes of the Mgt. System are effective.

Mgt. System ProcessesInterested parties

PT DivisionInterested parties

Pla

nnin

g of

the

Mgt

. Sys

tem

Activities of the Processes

Operational ControlsPractices of response before

EmergenciesResidues of the Processes

Information of Security of Chemical Products

Equipments of following up and measurement (It includes software

when necessary)

Mgt. System ProcessesCustomers

Ope

ratio

nal c

ontro

l and

Res

pons

e be

fore

Em

erge

ncie

s Le

gal c

onfo

rmity

Integral Quality Management

Integral Quality Manager

Scope of the Mgt. SystemProcess map

Program of ManagementGraphic of Central Control

Matrix of Environmental AspectsMatrix of Dangers and Risks

Matrix of Legal RequisitesMatrix of Administration of Changes

COABBPT Division

Interested parties

MGIPTG001NTC ISO 9001:2000

NTC ISO 14001:2004NTC OHSAS 18001:2000

NEZCP061NEZCP045NEZCP046NEZCP060

Manager of PTQQIT

ITPTQ001 - 002PAPTQ006 - 007 - 008 - 009 - 010

PAPTH002 - 003PAZCC022

PAZCH015 - 016NEZCP063 - 064 - 065ITPTQ040 - 041 - 042

PAPTQ003PAPTQ004PAPTQ005PAPTQ013PAPTQ027PAPTQ028

ITPTQ006 - 008ITPTQ010ITPTQ015ITPTQ035

ITPTQ037 - 039

Manager of PTQAssistants of PTQProcess managers

Technician Laboratory of OilsOperatorsSuppliers

ContractorsVisitants

Engineer Room of TestsUsers of equipments /

devices

Users of Mgt. SystemAgenda QIT

Activities of the OrganizationChanges to the New Processes

or Modifications of the Requisites

Results of verifications of Operational Control

Previous evaluationsCommunications of Interested Parties

Information Technology Resources (Intranet, internet, databases: SSA, CCRP, Borwin, CRS)

RESOURCES OF INFRASTRUCTURE

Assistants of Integral Quality

OHS committee Brigade LocationNursing station

Room of conferences with audio-visual aids (video beam, VHS, TV and projector)

Matrix SGI

Wasted Chemical Prod.Chemical Prod.

Management ToolsCritical Com. Legal Reg. Measurement and MonitoringEnviromental Aspects Dangers and Risks Management Prog.

Code: F01- MGIPTG001

PROCESS

LEADER

OBJECTIVE

SUPPLIER INPUT

SU

BP

ACTIVITY DOCUMENTS RESPONSIBLE OUTPUT CLIENT

To prepare a program of Engineering

To study Technical Specifications

To review or to perform Check List

To do Order Clearing

To prepare a Pre-design

To do a Technical Offer

To draw up electrical design

To do a Structure in BaaN

To carry out Cards of Manufacture

To prepare information for tests

To carry out a design of Active PartTo carry out a design of assemble,

connections y cubing.To carry out a design of isolations (only

TrafoStar)To carry out Plans for approval (if it is

needed by the client)To carry out external design

To do a Structure in BaaN

To review, to verify and to validate the Electrical and/or Mechanical Design

To control changes of Electrical and/or Mechanical design

Electrical Design Engineer

Requests of Changes of Design

MANAGEMENT OF RESOURCES

Mechanical Design EngineerComputing Equipment (computers, printer and plotter)Information technology resources (Intranet, Internet, software of design, database BA)

PTOITPTE001PAPTE001PAPTE003

PTEPTMPTSBA

PTMPTE

BA PTPR

Technical specifications of the ClientTechnical and Commercial offer

Technical normsTechnical instructions of BA

ITPTE002 - ITPTE009

Des

ign

for

Offe

rs

ITPTE001ITPTE010ITPTE011

Technical specifications of the ClientTechnical and Commercial offer

Technical normsTechnical instructions of BA

Electrical Design

Technical normsTechnical specifications of the Client

Price Database Technical instructions of BA

Manager of Engineering Equipped offices

HUMANS INFRASTRUCTURE

PTMPTE

BA PTPRElectrical Design

Electrical Designers

Ele

ctric

al d

esig

n fo

r pr

oduc

tion

PTO, PTQPTDPTP

Electrical and Mechanical Designers

Engineering

Manager of Engineering

To define and to plan the activities that allow to obtain designs that meet the requisites agreed in the contract and to achieve their ratification and the later satisfaction of the clients, at the same time the costs of engineering and materials foreseen in the selling are met, and also the technical requisites of the product are met.

Program of EngineeringRecords of Order Clearing PTO

Manager of Engineering Electrical and Mechanical

Designers

Pla

nnin

gRecord Meeting SUMPlan of Invoicing

Technical specifications

Mec

hani

cal d

esig

n fo

r pr

oduc

tion

Plans of Manufacture Technical Support

PTDPTPPTO

Rev

iew

and

Con

trol

of C

hang

es

PAPTE004PAPTE002

Manager of Engineering Electrical and Mechanical

Designers

ITPTE002 - ITPTE009

Designers of Offers

New Designs

Cards of ManufacturePlans

Electrical designStructure of Materials

Data for TestsTechnical Support

PTDPTPPTO

Mechanical DesignRoom for Tests

Technical Offer PTM

PTPPTD

Mechanical Designers

Matrix SGI

RemaindersRemainders

Chemical Prod. Management ToolsCritical Com. Legal Reg. Measurement and MonitoringMeasurement and Monitoring

Enviromental Asp. Dangers and Risks Management Prog.

Code: F01- MGIPTG001

PROCESS

LEADER

OBJECTIVE

SUPPLIER INPUT

SU

BP

PARTICULAR ACTIVITIES DOCUMENTS RESPONSIBLE OUTPUT CUSTOMER

PTPBA PTPR

PTQPTEPTO

Product in ProcessCriteria of Acceptance

Sigma CardsCards of Program of Manufacture

Plans / designsGeneral Schedule Macro planning

Pro

cess

con

trol

To inspect and to test the product in process

PAPTP001, PAPTQ001, ITPTP016,

Supervisor Control of Processes of PTP

Quality records (Sigma Cards)Sub process of Room of

Tests

To prepare isolations

To paper conductors

To wind

To dry and to press Windings

To dry and to press Windings

To separate plates by groups

To prepare table for stacking

To stack, press and put vertically the cores

To strain or to apply Asecond

To mount Windings in core

To close top yoke

To connect Active Part

To prepare cubing

To dry Active Part

To tight again and to cube

To mount accessories

To prove preliminarily the Airtightness

To try and to analyze the Dielectric Oil

To do vacuum and to fill with oil

To rest and To impregnate

To place control wiring

To Carry out electrical Tests

To test control wiring

To prepare protocols of tests

To test airtightness, to dismantle external accessories, to do identification and

marking, to coordinate their packaging

To register consumptions in BaaN and to do entry to Warehouse

Technician of Laboratory of Oils

Operator of Cores and Active Part

Chief of Room of Tests

Operator Laboratory PTP

Wiring Operator

Operator of Connections

Operator of Shipments

Operator of Cubing and Final Assembly

Assistant of Assembling

Assistant of Materials

Assembling Leader

Operator of Oils

Planner of Production

Supervisor of Production

INFRASTRUCTURE

Manager of Production Plant of manufacture of Power transformers

Equipped offices

Sub process of Room of TestsPTSPTE

Transformer ready for shippingRegistration in BaaN PTO

Rea

dyin

g an

d O

pera

tive

Shi

ppin

g

ITPTP038ITPTP045

Leader and Operators of Assembling and Shipping

Released Transformer for ShipmentPackaging

Packing List

WarehouseStandard and customized

materials, approved, and minor raw materials

Win

ding

man

ufac

ture

ITPTP004, ITPTP005, ITPTP006, ITPTP024, ITPTP025, ITPTP026, ITPTP036, ITPTP039, ITPTP043,ITPTP046

Power Transformers

Production Manager

To plan and to carry out the production of the Power transformers, under controlled conditions that allow the fulfillment of the requisites of the Product and the Organization

Leader and Operators of Windings

Block of WindingsSub process of Assembling and

Connections

PTSSub processes of Cores,

Windings and Warehouse

WindingsCore

ClampsSwitch

Plans/Designs

Act

ive

Par

t Ass

embl

y

ITPTP026ITPTP009ITPTP044

Leader and Operators of Assembling

Active part assembled and connected Sub process of cubing

Cor

e M

anuf

actu

re

ITPTP003 ITPTP008

Leader and Operators of Assembling

Verticalized CoreSub process of Assembling and

Connections

Sub processes of Assemble and Connections and Warehouse

Active connected partTank

AccessoriesProcessed and proved oil

Plans/Designs

Tan

king

and

Fin

al A

ssem

bly

ITPTP015, ITPTQ029, ITPTP037, ITPTP038, ITPTP040, ITPTP042

Leader and Operators of Assembling

Transformer finished and ready for tests

Sub process of Room of Tests

PTPPTE

Transformer for testsGeneral information of Tests

Fin

al T

est

PAPTQ002, ITPTQ011,ITPTQ012,ITPTQ014,

ITPTQ016 - ITPTQ022ITPTQ032

Engineer of Room of Tests

Transformer released by Room of Tests, Protocols of Tests, Minutes of Controlling, Reports of Feedback to

the Design

PTP, PTO, PTE

Financial resourcesOperator Assembly Windings

Paper Operator

Teams of safety and personal protection

Equipment for the handling of heavy loads

Operator Windings

Assistant Assembly Windings

MANAGEMENT OF RESOURCES

Leader of WindingsEquipment of inspection, such as micrometers, gauges and others, related to the technical instructions

Machinery and equipment of plant to manufacture the product in accordance with the provisions of the instructions of BA and the Production Manuals of LDT and TrafoStar

Operator of Insulations

Assistant of Windings

Computing equipment

Information technology resources (Intranet, Internet, databases, BaaN System)Recursos informáticos (Intranet, Internet, Bases de Datos, Sistema BaaN)Room of Tests for transformers of Potency and Laboratory of Oils

HUMANS

Matrix SGI

Waste Chemical Prod. Managment Tools Critical Com.Critical Com.

Legal Reg. Mesasurement and MonitoringEnviromental Asp. Dangers and Risks Managment Prog.

ABB

Internal AuditorsQHSE - BASC

QITManagers´ Team

Quality

Carlos Ossa

H & SM. Marín – L. Montoya Samuel Zuluága

Test Processes

JCV – JM - HV

EnvironmentalPaula Mesa

SPT TR

DTR TR

Oil Analysis

Safety Brigade

Evacuation Coordinators

OHS Advisor

Integral Quality Organization Chart

General Management

BASC

Quality School Instructors

QHSE Management

A little of history (Integral Quality milestones)

Ø 1990: ABB Group arrives to Pereira´s factory through a global acquisition ofWestinghouse T&D segment

Ø 1996: Quality Management System is certified with ISO 9001 by BVQi

Ø 1999: Environmental Management System is certified with ISO 14001 by BVQi

Ø 2002: Philip Crosby´s Quality Improvement Process is implemented

Ø QIT: Quality Improvement Team is established with the local TopManagement

Ø QS: Quality School program is launched to give all people trainin in Quality issues, technical competence and to encourage their Quality Awareness

Ø 2003: Six Sigma tool is implemented for TrafoStar power transformers

Ø 2005: Occupational Health and Safety Management System is certified withOHSAS 18001 and the 3 Management Systems are integrated in QHSE

Ø 2006: BASC Managemen System is certified by the WBO (Business Alliancefor Secure Commerce)

Last 10 years improvement profile and our VISION

2002

QIP

1

2005

ISO

900

1

ISO

140

01

1996 1999O

HS

AS

180

01

+ S

GI Q

HS

E

2009

2

3

4

5

6 σσ

ττ2006

BA

SC

World Class Manufacturer

We have a great VISION

Ø In 2009 ABB Pereira will be a World ClassManufacturing plant

Ø Happy people doing well their work

General view of windings shop in Chonqing All employees celebration

Zero FailuresZero ImpactsZero Accidents

TPT & TTPT reduction

On Time Delivery Customer Satisfied

More orders

Best pricesGreater EBITStability & Safe labol

COPQ’s reduction

Cash Flow

A good present for Everybody!

The Integral Quality way

Our Integral Policy show us the way

QHSE and BASC Policy (Translation)

Do well our work since first time to get Customer's Satisfaction by means of Quality Products and Quality Services delivered on time, producing the budgeted profitability.

To get this, our commitment is:

Ø Promote people's Competence and Awareness as our greatest asset

Ø To rise the life's quality of our employees by means of the continuous improvement in H&S issues

Ø Reduce waste generation and natural resources consumption in ourprocesses

Ø Improve continuously our Processes efficacy

Ø Prevent illegal practices in our processes (terrorism, illegal trade, drugs traffic, etc.)

Ø Fulfill all the legal requirements in our processes

ABB

Our Zero Defects Objectives

ZD does not mean that we will not have failures, it meansthat we will not be happy with any failure!

Quality ISO 9001

100% OTD

Zero TestFailures

100% Customer Satisfaction

H U A C A L T A N Q U E

C O N S E R V A D O R

PROTECCION

AISLADORES

H U A C A L

R A D I A D O R E S

OHSAS 18001

Zero Lost DayIncidents

Environ. ISO 14001

Zero Oil Spilling

QHSE Objectives

Zero COPQ

Zero ElectricalEnergy Waste

BASC

Zerocontamination

Quality ISO 9001

100% OTD

Zero TestFailures

100% Customer Satisfaction

H U A C A L T A N Q U E

C O N S E R V A D O R

PROTECCION

AISLADORES

H U A C A L

R A D I A D O R E S

Quality ISO 9001

100% OTD

Zero TestFailures

100% Customer Satisfaction

H U A C A L T A N Q U E

C O N S E R V A D O R

PROTECCION

AISLADORES

H U A C A L

R A D I A D O R E SH U A C A L T A N Q U E

C O N S E R V A D O R

PROTECCION

AISLADORES

H U A C A L

R A D I A D O R E S

OHSAS 18001

Zero Lost DayIncidents

Environ. ISO 14001

Zero Oil Spilling

QHSE Objectives

Zero COPQ

Zero ElectricalEnergy Waste

BASC

Zerocontamination

The Quality Strategy

1. Philip Crosby´s – QIT – Quality Improvement Process:

n Quality School

n Quality Improment Team

n Zero defects philosophy

2. Integration QHSE + BASC

Philip Crosby

Quality Improvement Process launchingsince

2002

Quality School´s principle:

“The Competence and Consciousness of our employeesare our greatest assets”. BA PPTR Mnger.

since

2002 Quality Improvement Process launching

since

2002 Quality School launching

Quality Class Room

QS: Every body talking same languaje:QS: Every body talking same languaje: Quality!Quality!

u Quality Throughout Work Team (QTWT)

Each Improvement Project1000 USD Savings

Course for Blue collars Course for Blue collars (15 Hours in 6 weeks)(15 Hours in 6 weeks)

Each Improvement Project1000 USD Savingsuu Quality Education Quality Education

System (QES)System (QES)

Course for White collars Course for White collars (25 Hours in 10 weeks)(25 Hours in 10 weeks)

Course for Managers Course for Managers –– QIT QIT (12 Hours in one weekend)(12 Hours in one weekend)

Course to get internal Quality Instructors Course to get internal Quality Instructors

since

2002 Quality School strucutre

EMC:

ü General Manager

ü Quality Manager

ü Controller

ü Logistic Manager

ü Human Resource Manager

ü Engineering Manager

ü Production Manager

ü Marketing Manager

ü Supply Manager

ü Order Handling Manager

Quality Improvement Teamsince

2002

The QIT in 2002. Today it has 10 membersand they meet each two weeks with thefollowing agenda…

Basic Cyclic Agenda

Quality Improvement Team

NCR DistributionTransformersAudit ReportsSix Sigma &

dpmo’s5S and

Housekeeping

NCR PowerTransformers

EnvironmentalManagment

System –

Follow up toQHSE Objectives

Metalshopsupplies

Follow up

OHSAS 18001Training Program& Quality School

Quality ActionPlans on going

ManagmentSystems´

Integration

CCRP

and

CustomerSatisfaction

Balance ScoreCard

Quality Performance

Index

Improvement Projects

- QS -

4th Meeting3th Meeting2nd Meeting1st Meeting

In each session at least three of this topics are reviewed

1. People develope a holisitic processes´ approach

2. One integral Policy easier to implement and follow

3. Less number of internal and external audits, we pass from 12 to 4 per year

4. One integral Manager´s review

5. Integral operational control for Environmental and OHS systems

6. One integral induction program for new employees

7. More efficient use of IS resources and leaner documentation

8. Less number of registers

9. Prevention of lawful nonconformity

10. One integral Manual book (it is an interactive document)

Advantages we have from the QHSE integration

QHSE + BASC Integration

QHSE + BASC Certifications

ISO 9001

since 1996

ISO 14001

since 1999

OHSAS 18001

since 2005

BASC

since 2006

BELIEFS

SYSTEM ISO 9001, ISO 14001, OHSAS 18001, BASC, etc

PROCEDURES MP, TI, Manuals, etc.

BEHAVIORS

VALUES

TraditionalFocus

World ClassFocus

Certifies are not enough to be World Class

STRUCTURE Resources

By Abraham Maslow (1908 – 1970)

QHSE Management evolution

The Integral Employee

knows, wantsand has will

power!

June /08Test Rooms accreditation acc. to ISO – IEC 17025

December /09Iberoamerican Quality Management Award

December /08Columbian Quality Management Award

December /08Integrate QHSE + BASC + SR

December /08Implement Social Responsibility Management Systemacc. to SA 8000 Standard

DATEDESCRIPTION

Next steps