1

As of Jun 28, 2017

QA&QC Activitiesfor Manufacturing Procedure For the butt weld fitting

-Based on DNV.GL Report(Pipeline Fittings Quality Assurance Technical Paper, PP179886)

QA&QC Activitiesfor Manufacturing Procedure For the butt weld fitting

-Based on DNV.GL Report(Pipeline Fittings Quality Assurance Technical Paper, PP179886)

2Quality Policy

QualityTK Corp

Transparency透明性

-All manufacturing process shall be clearly

transparent

Traceability追跡性

-All manufacturing process shall be traceable

Training敎育訓鍊

-All TK members shall be regularly & properly trained & educated

Investment投資

-Continuous investment can ensure continuous

quality improvement

Quality Culture品質文化

(*)-TK shall build his own

quality culture

Jump TK (*)Quality culture building campaign co-work with JGC, Japanese EPC

3Case Summary

National Energy Board Amended Safety Advisory

NEB SA 2016-01A2

TK Corporation Fittings Case

In September 2012, a fitting manufactured by TK Corporation (TK) was deformed during a hydrostatic test conducted by a pipeline operator at a pump station on a provincially regulated pipeline. As a result, further testing was conducted on additional TK manufactured fittings which resulted in the pipeline operator being unable to identify which fittings potentially did not meet specifications. An engineering assessment was conducted to determine the criteria for replacing over 400 of the fittings.

The pipeline operator that discovered the issue advised other pipeline operators and instituted revisions to internal engineering standards as well as quality assurance procedures. In addition, manufacturers and distributors were provided with improved guidance on the operator’s requirements for materials.

The Board has been informed by TK that once it learned of the hydrostatic test failure, it conducted an investigation into the manufacturing process of its high strength welded fittings and, based upon its findings, it made improvements to its equipment, starting materials and quality assurance programs. TK also confirmed to the Board that it is committed to protecting public safety.

4Activity against Gab between Standards & Regulation

1. Traceability (para 5.4 Manufacturing Traceability)Current industry standards do not require traceability of raw materials such as slabs, plates and welding consumables

(Para5.8 Inspection and Testing Enhancements)Mandate traceability to clearly track each fitting from raw material to finished goods.

Activities for Traceability in TK Corporation

To enhance traceability, TK has maintained below activities

1) Raw material Receiving Inspection

TK’s Receiving Inspection Manager gives HCN (Heat Code Number) to each raw material in addition to Raw material’s Heat Number. HCN will be put on each size (O.D & Wall thickness respectively) per each Raw material’s Heat Number.

2) In-process from Cutting

(1) Color coding

(2) Identification Marking with low stress die stamp

Material Symbol+ Raw Material Heat No. + Traveler Card No. (Bar code No.)

(3) Highlight with paint or paint marker

(4) Bar code label and Work Instruction (traveler card)

(5) Consecutive marking has been done to L6, L650, P9, P11, X65 and others since September of 2012

5Activity against Gab between Standards & Regulation

Big Color coding notice boards are posted in many places(size : 1.2m x 1.8m).

6Activity against Gab between Standards & Regulation

No Process Picture Identification Method

1 TK gives clear identification marking (low stress die stamp) from cutting process of raw material

① Identification Marking with low stress die stamp Material Symbol+ Raw Material Heat No. + Traveler Card No. (Bar code No.)

② Highlight with paint or paint marker③ Color coding④ Bar code label or work instruction(traveler card)⑤ Consecutive marking has been done to L6, L650, P9, P11, X65 and others since September of 2012

Note) 1) Bar code label shall be attached on each single piece of fitting. 2) In case of L6 or higher grade CS or AS, additional consecutive marking is required as L6, L650, P11,

P9, X65 and others.3) Other markings: RT No, Welder ID, MT Operator ID, AV(Alloy Verification)

Cutting raw material

Identification Marking

Rolling

Fit up & Welding

Before forming

⑤① ②

③

④

7Activity against Gab between Standards & Regulation

Job No. Current progress

Item Weight & Quantity

Material Project title

Dimension Color coding

Customer name NDE

Delivery Remaining days

Barcode

Barcode number / date of issue

8Activity against Gab between Standards & Regulation

2. Materials Verification (para 5.6 of Technical Paper, Para 5.8)-Quality safeguards within industry standards are insufficient to identify all potential issues, and the use of sample coupons and/or testing of starting material may not accurately represent the properties of finished products.

-Conduct destructive tests of finished components to verify the accuracy of coupon tests.

To ensure accurately represent the properties of finished products, TK conducts additional test on WPHY material by using not only attached specimen, but also sacrificial fitting and prolongation part test since 2013.

* The results are reported to Top management every week.

Specimen Test

(CSA 9.1.1.1)

Sacrificial fitting Test (Additional)

Prolongation Part Test

(Additional)

For seamless pipes, TK put sacrifice fittings per each HCN for mechanical test.

For welded pipe for hot forming elbow, elliptical forming elbow, elliptical forming tee, TK take prolongation part per each HCN for mechanical test.

CSA 9.1.1.1

Test specimens for mechanical tests shall be representative of finished fitting.

9Activity against Gab between Standards & Regulation

RepresentativeCoupon

4" and below I,T I,(T) (Sacrificial)

5" and above I,T I,T (Sacrificial)

WELDED ALL I,T I.T (Prolongation)

Cold forming SML'S ALL I,T I,T (Sacrificial)

4" and below I,T I,(T) (Sacrificial)

5" and above I,T I,T (Sacrificial)

WELDED ALL I,T I.T (Prolongation)

2-SEAM WELDED ALL I,T - (Specimen attached)

4" and below I,T I,(T) (Sacrificial)

5" and above I,T I,T (Sacrificial)

WELDED ALL I,T - (Specimen attached)

14" and below I,T I,T (Sacrificial)

16" and above I,T I,T (Sacrificial)

WELDED ALL I,T I,T (Prolongation)

12" and below I,T I,(T) (Sacrificial)

14" and above I,T I,T (Sacrificial)

WELDED ALL I,T - (Specimen attached)

* NOTE1. C : CHEMICAL ANALYSIS, I : IMPACT TEST, T : TENSILE TEST 2. Tensile/Yield and Hardness test shall be included.3. Heat treatment of a specimen for receiving inspection shall be carried out according to TK heat treatment specification.4. All tests shall be carried out after heat treatment.5. WPHY "I,(T)" : When taking IMPACT specimen, Tensile strength test shall be carried out if a specimen for tensile test can be taken.6. The hardness test shall be carried out for WPHY, WPL3 and AISI4130 that the quenching is applied.

Elliptical formingSML'S

ITEM Manufacturing Method TYPE SIZE

WPHY (NOTE 1,2,3,4,5,6)

Additional Test

REDUCERSML'S

ELBOW

Hot formingSML'S

TEE

Cold formingSML'S

Elliptical formingSML'S

TK’s standard practice to enhance accuracy of coupon test

10Activity against Gab between Standards & Regulation

3. Heat treatment Control (para 3.1.2 and others of Technical Paper)-The stacking of fittings in the furnace, and use of certain steel support racks effectively increased the overall thickness and mass of the material to be heated and hence the hold time in the furnace.

-A separate issue identified involved the adequacy of quenching following normalization. In this case the temperature of the quenching medium was not monitored and maintained to assure rapid cooling of the products.

To ensure the soundness of products that heat treatment is applied, the below activities have

been implemented from 2013.

1) Prohibit stacking to prevent any of non-uniformity during heating, holding and cooling.

2) Training Program / Periodic training program for heat treatment operators: once a month

3) TK modified heat treatment procedure. Transfer time to quenching bath is specified as 60 seconds.

4) Monitoring system / Monitoring supervisor is checking the status of heat treatment twice a day, and keep the records. The results shall be reported to the top management every day.

5) Self Inspection / Self-inspection procedure was strengthen, and the foreman shall report his results of quality control (Self-Inspection Report) as daily basis to the top management, myself.

6) Hardware investment To prevent rush works, TK is increasing the quantity of furnace TK had 5 heat treatment furnaces ; A) New Normalizing +Quenching furnace (15 tons) was built at May 2012. B) Another new 5 tons Normalizing gas-furnace was built until May 30, 2013 C) Quenching bath control and Monitoring devices were installed.

7) Other existing 15 tons & 7 tons furnaces were upgraded at Sep 30, 2014in

11Activity against Gab between Standards & Regulation

4. Heat treatment Control (para 3.1.2 and others of Technical Paper)-The stacking of fittings in the furnace, and use of certain steel support racks effectively increased the overall thickness and mass of the material to be heated and hence the hold time in the furnace.

-A separate issue identified involved the adequacy of quenching following normalization. In this case the temperature of the quenching medium was not monitored and maintained to assure rapid cooling of the products.

Alarm system to inform that heat treatment is completed Procedures and Work Instructions

Notice Board on Heat treatment

To inform and share what customer requirements are and what kinds of procedures are applied, Work Instruction and Procedures reflecting customer requirements are displayed on the Notice Board which is located very next of furnaces.

According to these Work Instruction and Procedures, heat treatment is being carried out.

12Activity against Gab between Standards & Regulation

Measuring and Monitoring The cooling water temperature(Max. 50deg.C), transfer time toQuenching bath(Max. 60 Second), water quality are Monitored (Display Panel, Check sheet) and maintained from 2013.

Agitating water in the quenching bath to prevent bubbling on product surface

13Activity against Gab between Standards & Regulation

Check point

1. Calibration was done?

2. Effective dates

3. Latest version of applicable procedure

4.Special requirement from TM-IPC-012 applicable ?

5. Recorder

6. Holding time

7. Cooling method

8. TK difference >1” per each lot

9. Gap between products

10. House keeping

11. Un-necessary thing?

12. Correct Work Instruction?

13. Comply with Hold time?

14. Waiting area control

Daily check sheet For Heat treatment

14Activity against Gab between Standards & Regulation

Check point

15. Mixture of material

16. Waiting fittings for 3 days?

17. Waiting specimen for 3 days?

18. Rack material control

19. Hardness check

20. Hardness tester condition

21. Quenching

22. Ferrite No. for all products

23. Recording F NO. on the heat treatment chart

24. Water Cooling within 60 seconds

25. Cooling water temperature

26. Chloride concentration check

Daily check sheet For Heat treatment

Quenching

15EXPERIENCE LIST with improved system

Year Material Grade Size Q'ty (pieces) Customer

2013 WPHY grades 1”~ 64” 7,992 BP and Other 38 customers

2014 WPHY grades 1”~56” 22,182 ARAMCO and other 50 customers

2015 WPHY grades 1/2” ~ 56” 15,368 TOTAL and other 46 customers

2016 WPHY grades 1/2” ~ 60” 13,817 ARAMCO and other 46 customers

2017 WPHY grades 1”~ 64” 794 ADMA-OPCO and other 30 customers

TOTAL 60,153 pieces

TK has supplied High Yield Strength Fittings to the global customers without any quality issues

16

117-12, Noksan Saneop Daero, Gangseo-gu, Busan, KoreaTel : +82 51 970 6600 Fax : +82 51 831 5599Email : tkbend@tkbend.co.kr http://www.tkbend.co.kr

Head Office Export & Import Subsidiary DaeShin Co., Ltd. TK Fitting USA INC.801, Jwadongsunhwan-ro 80, Haeundae-gu, Busan, KoreaTel : +82 51 747 8103~8 Fax : +82 51 747 8444~5Email : tkworld@tkbend.co.krhttp://www.tkbend.co.kr

16300 Katy Freeway Suite #220, Houston, TX 77094, USATel : +1 713 464 4808 Fax : +1 713 464 5105Email : yjk@tkbend.co.krhttp://www.tkbend.co.kr