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REPORT

TPL25 Quality Management Plan of 23

QUALITY MANAGEMENT PLAN

Project Name: FIRE UPGRADE PROJECT Project Number: HO/1244 Author: Trevor Albertyn, SiVEST SA (Pty) Ltd Owner: Transnet Pipelines Client: TPL Fire Specialist Project Sponsor: Sharla Pillay Project Manager: Charl Bothma Revision Number: 1 Approved by: Shiven Panday Release Date: Print Date: 13/07/2015 Template Date: 01/01/2012 Document No:

Distribution

Name Location

Fire Upgrade Project Transnet Quality Management Plan Date: 13/07/2015


DOCUMENTATION DISTRIBUTION, REVISION AND APPROVAL HISTORY

REVISION NUMBER

DATE DISTRIBUTION/ REVISION

PREPARED BY

REVIEWED BY

APPROVED BY

1 13/07/2015 Charl Bothma T Albertyn

SIGNATORIES: Prepared by:

Trevor Albertyn, SiVEST SA(Pty) Ltd Date

Checked by:

Didier Regnaud, SiVEST SA(Pty) Ltd Date

Reviewed by:

Charl Bothma, TPL Project Manager Date

Reviewed by:

TPL Quality / Technical Manager Date

Approved by:

Shiven Panday, TPL Date



CONTENTS

1. Purpose ...................................................................................................................... 4

2. Scope ......................................................................................................................... 4

2.1. Background ......................................................................................................... 4

3. References ................................................................................................................. 5

4. Quality Management System ........................................................................................ 5

4.1. Quality Policy and Management Commitment ......................................................... 5

5. Quality Management ................................................................................................... 5

5.1. Definitions ........................................................................................................... 5

5.2. Abbreviations ....................................................................................................... 6

5.3. Quality Management Philosophy and Overview ....................................................... 7

5.3.1. Project Quality Management .......................................................................... 7

5.3.2. Quality Management Process ......................................................................... 7

5.3.3. Roles & Responsibilities ................................................................................. 7

5.4. Quality Management Philosophy and Overview ..................................................... 11

5.4.1. Quality Objectives ....................................................................................... 11

5.4.2. Audits/Assessments .................................................................................... 12

5.4.3. Management Reviews.................................................................................. 12

5.4.4. Definitions of Project Quality Scope .............................................................. 13

5.4.5. Scope of Quality Review .............................................................................. 13

5.4.6. Documents Subject to Quality Reviews ......................................................... 13

5.4.7. Quality Review Participants .......................................................................... 14

5.5. Engineering and Design Quality Management ....................................................... 14

5.5.1. Records...................................................................................................... 14

5.5.2. Overview .................................................................................................... 14

5.5.3. Preliminary Design ...................................................................................... 15

5.5.4. Scope of Drawing Reviews ........................................................................... 15

5.5.5. Drawing Subject to Review .......................................................................... 15

5.5.6. Timing of Drawing Revisions ........................................................................ 15

5.5.7. Drawing Review Participants ........................................................................ 16

5.5.8. Responsibilities ........................................................................................... 16

5.5.9. Review of Technical Specifications ................................................................ 16

5.5.10. Formal Design Reviews ................................................................................ 16

5.5.11. Change Control Principles ............................................................................ 16

5.6. Procurement Quality Management ....................................................................... 17

5.6.1. Overview .................................................................................................... 17

5.6.2. Quality Assurance Activities.......................................................................... 18

5.6.3. Quality Assurance Levels ............................................................................. 19

5.6.4. Quality Control ............................................................................................ 19

5.6.5. Construction ............................................................................................... 19

5.6.6. Quality Risk ................................................................................................ 20

5.6.7. Non-Conformance Control ............................................................................ 21

5.6.8. Concessions ............................................................................................... 21

5.7. Deliverables ....................................................................................................... 22

Annexure 1 – Project QCP .................................................................................................. 23



1. PURPOSE

The purpose of this Project Quality Management Plan (PQMP) is to confirm the following:

Outline the Project Quality objectives;

Define the Project Quality System and Procedures;

Outline the approach for implementing Quality;

Project Procedures;

Quality roles and responsibilities;

The QA/QC monitoring programme.

2. SCOPE

The scope of this Quality Management Plan includes all quality related functions and activities

for the project management, design, engineering, procurement, fabrication, construction and

commissioning of the TPL25 Fire Upgrade Project for the 24 sites considered by the project.

2.1. Background

Transnet Pipelines owns, maintains and operates a network of high-pressure petroleum and

gas pipelines across 5 Provinces. These receive fuel from the two refineries in Durban, the

crude refinery at Coalbrook (Natref) and the Synfuel plants at Secunda (Sasol II and III).

There are numerous intake stations, pump stations and delivery depots within the network

distributed across KwaZulu-Natal, Free State, Gauteng, North West and Mpumalanga.

TPL have undertaken to upgrade the fire protection systems on a number of existing pump

stations and depots to ensure the functionality and quality of the fire protection is in line with

company’s objectives.

The project includes 24 sites and is being managed by TPL with WSP as the appointed fire

specialist during FEL3 and SiVEST having completed the design of the system for this phase.

The project has been approved for FEL4 and is to be executed with a procurement strategy

which sees the full scope of work for each site being tendered separately such that each site

will have a main contractor who is responsible for all procurement and construction as well as

some elements of design.

The scope includes the construction of a full fire protection on each site including the water

tanks, pump house building, diesel fire pumps, foam storage and induction, control and alarm

systems with extensive detection and the piping network with deluge valves and various end

of line equipment.

The Quality Management Plan is applicable to the processes completed by the Contractor in

the implementation of the project.

This plan describes Quality Assurance and Quality Control functions and activities to be

implemented and includes or refers to established Quality Control plans, procedures and

standard forms.



3. REFERENCES

ISO 9001:2008 Quality Management Systems - Requirements

4. QUALITY MANAGEMENT SYSTEM

TPL is not an ISO 9001-2008 accredited operating division of Transnet S.O.C but has adopted

the principles of ISO 9001.

SiVEST were appointed to perform engineering and construction management services for the

TPL25 Fire Upgrade for TPL at the twenty four sites impacted by the project. SiVEST is as ISO

9001-2008 accredited company and the use of their systems is integrated into the overall

project management system

The suitability, adequacy and effectiveness of the TPL QMS will be monitored throughout the

Project through the measures described in this Quality Plan.

4.1. Quality Policy and Management Commitment

TPL's objective is to establish, implement and maintain an effective Quality Management

System for this project, which meets the requirements of TPL and TPL's own organizational

goals.

TPL's commitment to quality, and to continuous improvement in performance, begins at the

top management level as endorsed by our quality policy. The objectives are communicated

and committed to by all members of the project team.

5. QUALITY MANAGEMENT

This section describes the quality management system that will be used throughout the entire

implementation of the project.

5.1. Definitions

Standard terminology, based on I S O 9001 - Fundamentals and Vocabulary (in Quality

Management), will be used to ensure uniformity and consistency of terms by all TPL's project

functional departments. The following definitions define the terms used in this Quality

Management Procedure - Audit/Assessment.

Corrective Action:

Action taken to eliminate the causes of an existing non-conformity, defect or undesirable

situation to prevent recurrence.

Evaluation:

An appraisal to determine whether or not design, manufacturing, manufacturing facilities,

construction processes and quality programs are capable of producing a quality item or

service and of generating evidence that support decisions on acceptability.

Guideline:

The document that describes the preferred method for suppliers or contractors to carry

out a task.



Inspection:

A phase of Quality Control, which by means of examination, observation or measurement,

determines the conformance of materials, supplies, components, processes or structures

to, predetermined quality requirements.

Procedure:

The internal document that describes the preferred method of carrying out a task.

Project Execution Plan (PEP):

The internal document that defines the quality activities as planned evaluation of the

adherence to the project's standards, processes, and procedures as well as specific quality

assurance measures related to each activity.

Quality Assurance (QA):

All those planned and systematic actions necessary to provide adequate confidence that

a product or service will satisfy given requirements for quality.

Quality Audit:

A documented activity conducted for the purpose of verifying by examination and

evaluation that the applicable elements of the Quality Assurance Program have been

established, documented and effectively implemented.

Quality Control (QC):

The operational techniques and activities that are used to fulfil requirements of quality.

Quality Plan:

A document setting out the specific quality practices, resources and sequence of activities

relevant to a particular product, service, contract or project.

Quality Risk:

The effect of uncertainty on the project Quality objectives in ensuring items are identified,

analysed, and mitigated. This is done by risk impacts of non-conformances, concessions,

rework, or rejections

Quality Systems:

The organizational structure, responsibilities, procedures, processes and resources for

implementing quality management.

Specification:

The document that prescribes the requirements with which the product or service has to

conform.

Traceability:

The ability to trace the history, application or location of an item or activity, or similar

items or activities, by means of recorded identification.

Other terms may be defined in the project specifications Supplier/Contractor Quality Assurance

Manuals in their specific areas of application.

5.2. Abbreviations

FAT Factory Acceptance Test

FIP Field Inspection Pack

HSE Health, Safety and Environment

MDR Manufacturers Data Report

MRQ Manager Representative for Quality

NCR Non-Conformance Report

PEP Project Execution Plan

PQMP Project Quality Management Plan



QA Quality Assurance

QC Quality Control

QCP Quality Control Plan

SAT Site Acceptance Test

TPL Transnet Pipelines

5.3. Quality Management Philosophy and Overview

5.3.1. Project Quality Management

Project quality management ensures that the project satisfies the needs for which it is

undertaken. It includes all activities that determine the quality policy, objectives and

responsibilities and implements them by means such as quality planning, quality control,

quality assurance and quality improvements within the quality system. Project quality

management addresses both the management of the project quality and the project's end

product.

5.3.2. Quality Management Process

Quality Management consists of the following processes:

Quality planning is the identification of the relevant quality standards and the

determination of how to satisfy them. The output from quality planning is a quality

management plan that documents how the project management team will

implement its quality policy. It addresses quality control, quality assurance and

quality improvement for the project. In addition, it includes operational definitions

or metrics (explicit descriptions of what something is and how it will be measured)

and checklists (to verify that a set of required steps has been performed or that a

set of required features have been included).

Quality assurance evaluates overall project performance on a regular basis to

provide confidence that the project will satisfy the relevant quality standards.

Quality audits (structured reviews of other quality management activities) play a

key role in quality assurance. Quality assurance results in quality improvements.

Quality control is the monitoring of specific project results to determine if they

conform to the relevant quality standards and the identification of ways to

eliminate the causes of unsatisfactory performance. Inspection using checklists as a

guide and trend analysis are key elements of quality control. The project results

that are monitored include both deliverables and cost/schedule/scope performance.

Quality control results in quality improvements, process adjustments (immediate

corrective or preventive action) and rework. Since rework is a frequent cause of

cost and schedule overruns, the goal of quality management is to minimize the

amount of rework required and get it right the first time.

5.3.3. Roles & Responsibilities

TPL Quality/Technical Manager Transnet Pipelines Quality/Technical Manager is the appointed management

representative with the responsibility for administration of the project Quality

Management System (QMS) and has the responsibility and authority to ensure

implementation of the project QMS requirements by the following means:

Administration of Quality Assurance, Quality Control and Expediting activities.

Periodic internal QMS audits and surveillances.

Directing and reviewing QA audits



Issuing Corrective Action Requests (CAR’s).

Reporting on the effectiveness of the QMS to the TPL Senior Project Manager

SiVEST SA (Pty) Ltd. MRQ

SiVEST SA (Pty) Ltd. MRQ responsibilities include:

Ensuring Administration of all aspects of internal quality audits of the SiVEST SA

(Pty) Ltd. ISO 9001 QMS

Bringing the results of audits to the attention of the personnel responsible for the

work area audited.

If and when nonconformity is found, the MRQ immediately initiates corrective

action in accordance with procedures and follows up to verify that the corrective

action taken was effective.

Reporting Audit findings to MANCO and to the Managing Director for inclusion in

the MD’s Report to the Board. Appropriate, preventive action and improvement

projects are initiated.

SiVEST SA (Pty) Ltd. Project Manager

The SiVEST Project Manager will be responsible for and have ultimate authority for overall

quality management of the Contractor.

SiVEST SA (Pty) Ltd. Project Manager responsibilities will include:

• Is responsible for management of the Quality Plan

• Quality Assurance checks to ensure that the Project meets the required quality

standard in all activities and functions

• Establishing, implementing and coordinating all Quality Assurance Procedures

• Communicating Quality Assurance Responsibilities to the Project Team members

• Inspection agency's Contracts will be managed by the Project Manager, who will also

review and accept proposed inspectors, and carry out orientation and other

associated functions (if found to be required)

• Familiarisation with the project requirements

• Communication of Quality Control requirements to Vendors, and Quality Assurance

confirmation that inspection and Test Plans are complied with

• Overall Coordination of Quality Assurance efforts, including QA by Consultant, QA by

Project team on site, Testing Consultants, Inspection Companies, Regulatory

Inspection Services

• Maintaining strong lines of communications with the other Managers

• Liaison with the Company's Quality Assurance Representative

• Management of Project Audits and Assessments

• Manage and supervise Audits at Vendors facilities (when required)

• Management of Quality Documents

• Management of Quality Risk

• Assessing the effectiveness of the Quality Management Plan, and managing required

changes

• Interfacing with TPL's Quality Department

• Ensuring that material, equipment and installation specifications are prepared and

include Engineering, Quality Goals, Quality Severity and levels defined and "scopes of

inspection" applicable to specific types of equipment, goods and services. When

approved these documents will identify special inspection and test activities required,



witness and hold points, review, acceptance criteria and records for documentation

in conjunction with the Designer

• Ensuring that each Enquiry for design work is reviewed to verify that all the proper

requirements and attachments are included with the Enquiry

• Ensuring that technical reviews of design work and revisions are performed in

conformance with Project Engineering Process

• Communicates Quality Management responsibilities to the Lead Engineers

• Ensuring that design and engineering documentation are properly checked and

approved

• Ensuring that Supplier/Vendor's Design Change Control Procedures are developed

and implemented, and are adequate

• Participating in supplier/Vendor surveys and audits if necessary.

The SiVEST SA (Pty) Ltd. Project Manager in conjunction with the Site Manager is

responsible for:

• Preparing and maintaining internal audit schedule

• Schedule sufficient audits to cover all functions of the project

• Plan, prepare and conduct internal and external audits and lead Audit Teams

• Identify and initiate corrective action and monitor progress

• Prepare corrective action/non-conformance and summary reports

• Analyse data on quality related trends

• Identify general areas for continuous improvement

• Assist with the evaluation and assessment of potential suppliers to ensure compliance

of contractors, suppliers and vendors

• Compile assessment reports

• Implementation of the Site aspects of the PQP in consultation with Project Managers

• Acceptance of Field Inspection Packs (FIP) in preparation for pre-commissioning

testing

• Liaising with Contractor QA/QC personnel

• Coordinating TPL's field inspections, sampling, and testing activities identified in

Contractor QCP, e.g. attendance of interventions points such as witness and hold

points (as applicable)

• Interfacing with Client Site representatives and any third party inspection agencies

on QA/QC matters, e.g. field survey activities

• Coordination of Site QA / QC records, including:

o NCR's, concession and deviation databases

o FIP's and field inspection checklists

o Inspection and NCR reports, etc.

o Contractor QCP

o Test results, etc.

o Mark-ups of P & ID's to record inspections.

• Witness FAT and SAT requirements

• Check Data Books

• Ensure adequate Site document controls are implemented and maintained

• Ensure that the required intervention points are identified in the Contractor QCP's and

attended to.



• Ensure that the "Designers" fulfil their obligations in terms of the OHS Act and its

Regulations and include it in the Project Quality Plan, (PQP), and Contractor QCP as

intervention points

• Review and distribution of inspection reports, and inspection releases

• Work in conjunction with the respective discipline engineering leads to expedite and

resolve issues identified during inspections

• Coordination and expediting the resolution and distribution of Supplier non-

conformance reports

• Facilitation and coordination of Supplier pre-inspection meetings

• Coordinate periodic audits of Supplier QC records and project audits to ensure

compliance with approved working procedures and processes

• In conjunction with the SiVEST’s lead Engineers set up and maintain the QA records

tracking system and ensure records of all inspections are maintained as well as non-

compliance items

• Manages the Non Conformance Reports, (NCR), from issue to close-out and maintain

a NCR Register

• Recommends and follows up corrective actions to prevent internal or external

deficiencies

• Provide representation at site contract meetings with respect to QA/QC matters

• Supports the Change Management Process, FEQ's, Concessions, DCN’s, PCN's, etc.

• Reports to the TPL Project Manager and SiVEST Project Manager on the status of

Quality Management on a monthly basis

TPL Procurement Manager

The TPL Procurement Manager's Quality responsibilities include:

• Ensuring that procurement of equipment, material and services for the project is in

accordance with approved Project Procedures, in terms of Prequalification

• Pre and Post Enquiries, purchase Order/Contract preparation, revisions and approval

are managed

• Reviewing each Enquiry to ensure completeness and accuracy

• Ensuring that each Enquiry includes a Quality Control section, with a request for an

Inspection and Test Plan

• Liaison with the Engineering, Quality, and Construction Managers

• Communicate any quality issues related to enquiries to the Quality/Technical Manager

for resolution

• Ensuring that all correspondence related to Enquiries are transmitted formally to

Suppliers/Vendors only by the Procurement Department, including the original

Enquiry and any subsequent revisions, addenda, clarifications, meeting notes,

substitutions or other changes

• Participating in supplier/Vendor surveys and audits as appropriate if necessary.

Site Manager

The Site Manager's Quality Assurance responsibilities include:

• Developing and maintaining appropriate document control procedures for ensuring

that construction materials and workmanship for the project is in accordance with

approved Project Procedures

• Ensuring QA/QC requirements for site construction are being performed in accordance

with the Quality Assurance Execution Plan for Contracts and Construction



• Support the Field Engineers to perform assigned verification, and witness inspection

activities in conformance with the Quality Management Plan and relevant Project

Specifications and Codes and in accordance with Contract and construction discipline

requirements

• Communicating significant quality problems to the SiVEST Project Manager and the

Engineering or Procurement Managers

• Check Red Line and Final "As Built" documents

TPL QA Representative

The TPL QA Representative responsibilities include;

• Ensuring QA/QC requirements for specialist oversight of TPL specifications (principally

Mechanical, Structural and Corrosion Protection) are being performed in accordance

with the Quality Assurance Execution Plan

• Perform assigned verification, and witness inspection activities in conformance with

the Quality Management Plan and relevant Project Specifications and Codes and in

accordance with Contract and construction discipline requirements

5.4. Quality Management Philosophy and Overview

5.4.1. Quality Objectives

The quality objectives established for the project are as follows:

QUALITY OBJECTIVES MEASURES RESPONSIBILITY

PROJECT MANAGEMENT

Create open

communication in which all participants are well

aware of project progress

Project Meetings (MOMs) Project Manager

Promote Quality Management Knowledge

and behaviour

Project Team and Project Induction training

Communicate results of Quality Audits conducted

Project Managers / TPL Quality/ Technical Manager

Verify Suppliers /

Contractors QMS

Compliance to Quality

Review of QMS

Lead Engineers / TPL QA

Representative

Conduct QMS Process and

Procedural Audits No. of Non-Conformances SiVEST Project

Manager/Quality/Technical

Manager

ENGINEERING

To deliver the best

innovative technical

solution on time and on budget which meets the

client’s needs and expectations. Compliance

with all statutory

legislation

Scope management:

Number of Trends, and

DCN Man - hours (Planned vs. Actual)

SiVEST Project Manager /

Lead Engineers

Develop a Reliable and

Safe Engineering Design Package

Conduct Design Reviews

and Engineering Assurance Assessments.

SiVEST Project Manager /

Lead Engineers

TRAINING

All project employees will

be provided with the

Training needs

assessment, gap analysis,

Employee Line Managers



required skills

development to support the PEP and Project

Objectives

development of a training

strategy

Evaluate Discipline Performance

Engineering Budget and schedule performance

Discipline Leader

PROCUREMENT

To procure equipment and

materials on a timely and orderly basis, at the

optimum net cost, in strict accordance with

Specifications.

(No slip on award dates)

Procurement Status Report Commitment to

Date vs. Planned Capital Cost Variance

Procurement Manager

TPL Snr/Project Manager

CONSTRUCTION

To construct, assemble and erect the plant on

time, under budget, within

quality requirements which meets the Client's

needs and expectations

Planned Man hours vs. Actual Meeting Key

Milestone dates Within

Site Quality Management Plan Customer complaints

and improvements

Site Manager

COMMISSIONING

To prepare, plan the plant for cold and hot

commissioning and handover successfully on

time, under budget and

Clients requirements

Planned Man hours vs. Actual Key Milestone

dates Customer compliance to User

Requirement

Lead Engineers

5.4.2. Audits/Assessments

Quality audits are a quality assurance activity to evaluate project performance on a regular

basis and provide confidence that the project will satisfy the relevant quality standards.

Quality audits of any quality management activity can occur e.g. reviews, document

checking, etc. The intent is to ensure that:

• Quality management activities have been identified and scheduled in the work

plan/schedule and completed as planned

• Action items resulting from quality management activities are being acted upon

• Quality management activities actually add value by improving quality

An initial quality audit will occur once quality management activities have started. The

results of the initial audit will determine the frequency of subsequent audits. The SiVEST

Project Manager and TPL Quality/Technical manager is responsible for scheduling the

audits and will involve the lead engineers and TPL QA specialists as required

5.4.3. Management Reviews

The management reviews will be conducted. The TPL Quality/Technical Manager will be

responsible for the coordination of the reviews, monitor and implement the actions

defined at the Management Review. During reviews the following will be considered:

• Audit and Self/Peer review results

• Client Feedback

• Conformity of services / concessions and output of project

• Status of corrective and preventative actions

• Quality Improvement / Incident Reports



• Changes affecting the PQP

5.4.4. Definitions of Project Quality Scope

Quality scope is the identifying and ensuring compliance of different project and Practice

functions and deliverables to the standard predefined by the project team. This includes

decisions and assumptions that affect the project objectives, scope, Quality cost and

schedule. Definition of project quality starts early in the project lifecycle process and

continues until the end of the project.

The objective of the Quality Scope is to outline an approach to:

• Project Management System that will provide project outcomes that meet or exceed

agreed upon criteria for measuring project success

• Defining appropriate project processes, workflows, guidelines, standards and

procedures to assist in project execution

• Achieving manufacturing, assembly and construction compliance with referenced

statutory codes, standards and specifications

• Minimize waste, non-conformities and re-work in order to reduce capital,

commissioning and operating/maintenance costs

5.4.5. Scope of Quality Review

Reviews will be either in an integrated meeting format or in the form of a squad check.

Each document that is reviewed will be reviewed for consistency with:

• Overall project objectives

• Scope definition documents from other disciplines in the same plant area

• Other scope definition documents from other plant areas for the same discipline

• Project standards for documentation

• Correct Project, engineering and contractual language usage

• Change Control and deviations

• Ensure applicable lines of communication and approvals

5.4.6. Documents Subject to Quality Reviews

Generally, documents formally issued to TPL for review and approval, documents formally

issued to outside third parties and any other documents identified as being critical to

project success are subject to design reviews are done according to the project, but

specifically, the following documents, will be subject to a quality review.

• Overall:

Project Execution Plan (PEP)

RACI Matrix and where applicable liability to be ensured

Project design basis and criteria

Standard specifications

Process/operation/control/plans descriptions

• Concept Drawings (where or if applicable):

Mechanical general arrangements

Control system architecture diagram

• Functional descriptions of controls

• Detailed Documents and Drawings:

Project schedule

Project equipment list

Equipment specifications



Project Procedure Manual

Project Work Plan

Detailed design/installation drawings

• Construction

Construction procedures, codes, standards, specifications as applicable

Vendor Quality deliverables such as PQP, QCP's, etc.

Review and acceptance of MDRs

Data books

Handover deliverables

Normally, a number of related documents are reviewed at the same time. Any document

could be reviewed more than once due to design responsibility or development, scope

change, change in execution strategy or the specific aspect being reviewed. Generally, a

document is reviewed prior to the initial official issue and/or at designated levels of

completion. Documents cannot be officially issued until the review has been completed

and approved (where applicable).

5.4.7. Quality Review Participants

The objective is to perform an independent review of a document by competent or

specialist not directly involved in the aspect being reviewed. Therefore participants in

quality reviews will be selected based on the document and the specific aspects of the

document being reviewed.

Potential participants include:

• TPL Snr Project Manager

• TPL/BP Project Manager

• SiVEST Discipline Engineers/Leads

• Responsible Engineers

• Technical Specialists

• Site Manager

• Commissioning Manager (If Applicable)

• Client Representatives

5.5. Engineering and Design Quality Management

5.5.1. Records

Identifiable and retrievable records will be maintained to furnish evidence of activities

affecting quality.

5.5.2. Overview

Quality management during project definition, preliminary and basic engineering phases

will be similar to quality management during the detailed engineering phase. All formal

drawing reviews will be documented.

Detailed design consists of producing the documents and drawings that will be used to

build the plant. The information that will be used as the basis of the documents will come

from the design Basis for Detail Engineering.



5.5.3. Preliminary Design

Preliminary design focuses on developing the information required to obtain quotations

on pre-purchased equipment packages.

The design criteria present project-specific standards to be used in the design process.

The standards can be applicable to TPL Standards, national, industry and internal

standards or statutory laws. In effect, the design criteria describe how the project's end

product will be designed.

A multi-discipline basis of design also is prepared, which documents design decisions and

describes what is being designed.

The design criteria and the basis of design are key inputs to the design process. Based

on these documents, each discipline initially produces:

• Concept drawings

• Standard specifications (specifications applicable to a number of pre-purchased

equipment packages)

• Equipment specifications (specifications applicable to only one pre-purchased

equipment package)

• Reports (documenting the results of design studies and the evaluation of design

alternatives)

Generally, the drawings, standards, specifications and reports are verified for consistency

and conformance with the design criteria, basis of design and other

drawings/standards/specifications/reports before being issued to the Client for comment

or approval. In addition, equipment specifications are verified for conformance with

applicable general specifications.

5.5.4. Scope of Drawing Reviews

Each document that is reviewed will be reviewed for consistency and conformance with:

• Overall project objectives

• Scope definition documents

• Integration of other Practices drawings

• Other drawings by other disciplines in the same area

• All other drawings included in the same contract

• Other drawings in other areas (especially interfaces)

• Drawing design standards

• Clarity of instruction and language used

5.5.5. Drawing Subject to Review

All drawings, lists, etc., will be reviewed prior to being issued for fabrication and

construction.

5.5.6. Timing of Drawing Revisions

Drawings will be reviewed prior to:

• Initial issue for manufacturing

• Initial issue for construction

• All subsequent issues (if the drawing has been revised)



5.5.7. Drawing Review Participants

Participants in the review of a set of contract drawings will be selected based on the

drawings being reviewed. Potential participants include:

• TPL Snr Project Manager / Quality/Technical Manager

• TPL/SiVEST Project Managers

• Project Engineer

• Project Discipline Engineers

• Responsible Engineer

• Technical Specialists

5.5.8. Responsibilities

The Discipline Engineers and SiVEST Project Manager will be responsible for ensuring that

drawing reviews are held and that action items are followed up. In addition, he or she will

be responsible for organizing, scheduling, holding, documenting the results and following

up on action items from the review of a set of contract drawings covering more than one

plant area and one discipline.

Site Engineers will have the same responsibilities for the review of all contract drawings

covering their applicable area only.

5.5.9. Review of Technical Specifications

Prior to being issued for tender, the SiVEST Project Manager is responsible to review all

technical specifications and other engineering documents for consistency and to ensure:

• The technical document complies with the overall project scope and objective

• Related drawings and other documents are included

• Client specific requirements are included

• Completeness and clarity of the document

5.5.10. Formal Design Reviews

In addition to frequent, informal design reviews, there will be typically two formal design

reviews. The first review is typically carried out during Basic Engineering and determines

that the main design concepts are correct. The second review typically occurs after the

detail design has been substantially completed and address all design issues including

constructability and maintainability.

• Review 1{approved for detailed design): Concurrent multidiscipline signs off through

a formal design review of reports or layouts to allow start of detailed design

• Review 2 {approved for fabrication/construction): Formal design review ·used to

confirm that output/deliverables could be issued for construction and signed from

originator through to professional Engineer/Project Manager with the appropriate

"issued for use", stamp displayed.

5.5.11. Change Control Principles

Listed below are a few examples of how the change management process is typically

applied within our projects:

• Ensure the Project Execution Plan, Management Plans, Procedures and Scope

statements have been agreed with the client

• Scope creep and submitting change requests, i.e. via a Project Change Notice (PCN)

to relevant levels of approval or a Design Change Notice (DCN)



• Field Engineering Queries (FEQ) - the engineering process used for construction

change and work authorize the contractor in performing work differently to what has

been specified or delivered as per the contractual agreement

• Forecasting of project trends and effects

• The recommendation/deviation and approval of preventative and corrective actions

• The updating of Project Management Plans, Procedures and Scope statements

• Approval of recommended defect repairs and the validation of defect repairs, etc.

In order to implement change the Project Manager will enlist a team that is responsible

for, and capable of making that change happen and ensures that the change is aligned

with the Client scope change policy and must be substantiated as a value add. It is

important that this team follows the following practical guidelines with regards to Change

Management:

• Carefully review the contract documents at the onset of the project to determine the

changes procedures and to identify those authorized to make changes.

• Caution your project management team members against reliance on changes

(additions, deletions or substitutions) made informally or through the shop drawing

process.

• Periodically review your cost control procedures to see that they are adequately

identifying and segregating extra costs.

• Outline any procedural steps and contract time limitations, which may affect your

entitlement to be paid for changed work, and make sure that your project

management team has that information and operates in a manner consistent with

preserving your entitlement to be paid for changes.

Change management of SiVEST will be dealt with in terms of the NEC3 PSC Contract. In

general no scope or design changes are to be actioned until approved in writing at the

appropriate level.

Once a change or potential change has been identified, a decision will be taken by the

TPL Project Manager as to whether work in the area concerned is to be stopped, or

continued on the previously agreed scope – until such time as the change is approved.

5.6. Procurement Quality Management

5.6.1. Overview

The overall approach to quality management for the procurement of goods and services

consists of:

• Selecting competent Suppliers/contractors in conjunction with the Employer

• Ensuring Procurement have a plan for controlling work processes and activities

• Monitoring compliance with the Procurement plan

In summary, the Suppliers will be responsible for the quality of their work while the project

team will be responsible for verifying that the Suppliers/Contractors are fulfilling their

responsibilities.

Quality management as it relates to the process of procuring goods and services consists

of:



• Defining quantitative bid evaluation criteria for use on all equipment purchase

packages (bid analysis, evaluation, and recommendation) have been done

• Ensuring that all of the technical and commercial requirements are adequately defined

in the bid documents

• Verify selecting Suppliers that best meet the evaluation criteria

• Verifying that each Supplier is in conformance with their Quality Plan and Quality

Control Plan as defined in the purchase order/contract

• Verifying the performance of each Supplier against the Works Information

Specification and Quality Plan during the delivery of the goods or services as called

for in the purchase order / contract

In their quotation, all bidders will be required to describe their quality management

system and the quality management system used by their sub-suppliers / subcontractors.

In addition, they will provide a copy of their corporate quality manual.

Prior to purchase order/contract award, the Suppliers will submit for review a quality

management plan (including an inspection and testing plan) for the specific scope of work.

The purchase order will be awarded once the quality plan has been finalized. Then the

project team can start performing the necessary reviews, inspections or audits required

to assure that the Supplier is in conformance with the plan and that the work conforms

to the requirements of the purchase order/contract documents.

Responsibility for managing Supplier Quality is shared by all the project team. Engineering

is responsible for defining the specific quality requirements applicable to pre-purchased

equipment packages and for determining the technical acceptability of bidders. The

Project Manager provides an input into the commercial recommendation of bidders related

to Quality and inspection/surveillance of Suppliers, as required, the overall responsibility

however lies with the Responsible Engineer.

5.6.2. Quality Assurance Activities

A Quality Surveillance program will be developed by the TPL and SiVEST Project Manager,

to monitor and evaluate suppliers and Vendors procedures (including QCP's), methods,

products and records (including MDRs) to ensure conformance to specified requirements.

This program will be administered by the SiVEST Project Manager, directing discipline

specialists, field representatives and if required the Quality Control Inspection Agency for

verification and witness inspection activities.

The Quality Surveillance Program will commence upon award of Engineering, Purchase

Order and/or Contract and will include but not limited to the following activities:

• Evaluating Suppliers' and Vendors' Quality Assurance and Quality Control Programs

• Monitor the Preparation of Suppliers' and Vendors' Quality Control Plans (QCP's)

• Monitor Preparation of by Suppliers' and Vendors' Manufacturers Data Reports (MDRs)

• Monitor and review material certification, traceability and documentation by Suppliers

and Vendors

• Technical review and acceptance of design documents (If applicable)

• Supplier and Vendor Quality Surveillance

• Review and acceptance of QCPs

• Review and acceptance of MDRs



• Internal Audit Program and audit check lists of Supplier and Vendor Quality Assurance

and Control Programs

• Supplier and Vendor Audit Program and audit check lists

• Non-conformance Applications, which are in effect changes to Specification

requirements

• Technical Queries initiated for technical review and resolution by the

Company/Engineering Representative

• Direct Material Substitution Requests by Suppliers and Vendors

• Data Books

• Package / Vendor Change Management

5.6.3. Quality Assurance Levels

During the Procurement cycle TPL Quality/Technical Manager will specify in the technical

specifications the QA Level required. The criticality analysis shall be used to determine

the need for and extent of Quality Control Plans.

5.6.4. Quality Control

Only suitably qualified and competent Quality Control Inspectors will carry out the various

QC activities. QC is intended to be by the Contractor

Prior to start-up of fabrication of any equipment a Kick-Off Meeting shall be held with the

suppliers. The purpose is to ensure that quality requirements and standards as stipulated

in the Purchase Order are understood by the Supplier.

The level of Quality Surveillance and the extent of Quality Control Plans/Inspection and

Test Plans will generally relate to the Quality Assurance levels as indicated above.

5.6.5. Construction

Quality Control Plans must be prepared by all Vendors for Construction Quality Control at

the Project site. They will be managed and overseen by the Site Manager, and typically

include but not limited the following activities:

• Civil works, (Excavation, Backfill/Compaction and Concrete)

• Steelwork (Structural and Miscellaneous)

• Welding and NDT

• Testing for Mechanical Completion

• Building and associated works

• Pavement Construction

• Bulk Services Infrastructure

• Electrical Works

Quality Management Plans describe the detailed activities that will be carried out to

verify that all services, material, equipment, and installations meet the Project

Specifications. Where surveillance or witness inspection by the project team is required,

only appropriately qualified and experienced inspection staff will be used to carry out

these inspection activities.

The level of inspection surveillance to be carried out by the project team will be

appropriate to the type, criticality and complexity of construction or equipment being

installed, and the degree of confidence in the Vendor, based on an assessment of their



Quality Plan and Procedures, personnel, facilities, demonstrated performance, and audit

findings.

The specific verification, witness inspection, quality surveillance and reporting

requirements for Contracts will be developed as part of the Enquiry document for these

services, and an acceptable agency selected and appointed to carry out this function.

QC verification, witness inspection and quality surveillance activities will be carried out

in conformance with this Quality Management Plan and relevant Project Specifications

and Codes and in accordance with Contract requirements, as follows:

• Carry out assigned inspections and verifications as necessary to ensure that the

equipment and material installed or fabricated on site, has been fabricated, installed,

tested and accepted in accordance with the requirements of the Contract and

discipline, and is ready for pre-commissioning activities

• Complete all recording and reporting requirements for each Contract

• Maintain contact, with the Vendor, from placement of the Contract throughout

fabrication and/or installation, until Practical Completion

• Follow-up Pre-Inspection Meeting action items as required

• Issue timely inspection reports of acceptable quality, indicating inspection results in

accordance with contract requirements

• Report Non-conformances on a priority basis

• Conduct regular review of Vendor's Quality Control Documentation for progressive

compilation

The Site Manager and the Designer will issue Final Release Certificates after all required

inspection, test activities and MDR documentation required by the Contract, have been

satisfactorily completed.

Non-Conformance Reports will be treated with the highest priority until the details are

established submitted to Company for comment and or approval and corrective action

implemented to resolve the problem.

Quality Control records will be maintained as follows:

• Non-Conformance Reports (NCR)

• Concession Requests

• Concession Register

• Non-Conformance Report Register

• Request For Information

• Direct Material Substitution Requests (DMSR)

• FEQ Requests

• FEQ Register

• "As-Built" Drawings

• Contract Inspection Records, including all related documents

5.6.6. Quality Risk

Quality risks are typically identified by analysing NCR's, Concessions, QIR's, Inspection

and Assessment Results and Internal or External Complaints originating from the Client

as well as the consultant/Contractor. As the aforementioned are analysed, they should be

reported and be incorporated into the Project Risk Register



5.6.7. Non-Conformance Control

All Non-Conformances that occur during the course of supply, fabrication or construction,

will be processed by the Supplier/Vendor such that Specification compliance is achieved.

A copy of all Supplier/Vendor or Contractor Non-Conformance Reports, with proposed

corrective action/disposition will be reviewed and approved as required by:

• The SiVEST Project Manager

• The Construction Manager

• The Company's Applicable Technical Representative (Designer)

• TPL QA Representative

• Consultants (Engineer of Record) where applicable

The parties will evaluate the potential for adverse impact on the project. The NCR's will

be regularly reviewed at Suppliers/Vendors premises as part of the Quality Surveillance

and Audit Programs, to verify effective control and close out.

Non-Conformances that occur as a result of audit, will be recorded on Non- Conformance

Report (NCR) by the audit team, and will be managed from Corrective Action and

Preventative Action, to close out, by the Supplier or Vendor, or the Contractor. These

Non-Conformance Reports will be regularly reviewed at Suppliers/Vendors premises as

part of the Quality Surveillance and Audit Programs, to verify effective control and close

out or at the construction site.

Supplier/Vendor or the Contractor requested disposition of non-conformances which

would result in a specification deviation will be notified in writing to the SiVEST Project

Manager, or the site representative, by returning the Non-Conformance Report, with

requested deviation as an action item. The SiVEST Project Manager will coordinate an

appropriate review, which includes the technical, regulatory, health and safety, and

environment with the Project manager or the Site Manager and the area/discipline

manager and the Company. The result will be presented to the Company for approval by

the TPL Project Manager.

5.6.8. Concessions

Where a Consultant/Contractor/Vendor requests a concession or waiver to vary the

requirement of the Purchase Order or specification and standard requirements as defined

by the Designer and conditions of contracting, the Consultant/Contractor/Vendor shall

raise the request with the TPL Project Manager and the request shall be captured in the

Concession register.

The Concession Requests shall clearly identify all elements of the proposed concession

together with any resulting technical, commercial and/or schedule impact or any benefits

in cost saving to the project and the Client which does not have a negative effect to the

project and to the design life.

No concession or waiver shall be implemented without formal written approval by the

Designer and TPL Project Manager.

The Completed original approved concession shall be updated in the concession register

and included in the Vendor's Data Pack.



5.7. Deliverables

Deliverables will be identified when the contract is formalized but are typically those

referenced in the attached Project Quality Plan (Annexure 1).



ANNEXURE 1 – PROJECT QCP