2014/3/13 Security Level:

www.huawei.com
Quality and Operation Dept, PMO

We Can Do Better!

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 1

 Contents

1 TOP Quality & EHS Issues and Concerns

2 Huawei Project Quality Management System

3 2014 Expectation For Partners

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 2

Top Quality & EHS Issues in 2013 Projects (1)
Some suppliers are lacking EHS/CSR management: Violation of red line requirement

Over-speed & no use

NO PPE Use child labor
safety belt
Materials are not qualified and according to the standard

Rebar dose not meet Aggregate dose not Damaged plywood

with quality standard meet with quality
standard

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 3

Top Quality & EHS Issues in 2013 Projects (2)
Bolts of tower are properly tightened

RIGGER WORKING ON Tower leg connectors

Bolts on tower
TOWER WITHOUT PPE
Missing bolts
leg not tightened not closed

Construction result is not according to the design requirement and standard

Some rebar used at Tower Aggregate used is not in Subcontractor use damaged
Tower
Foundation foundation
according to required The concrete
accordance intensity
with plywood in shuttering.
standard standardized
Bad grout of tower
excavation depth less doesn’tdimensions
meet with
base
than design requirement design requirement

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 4

Top Quality & EHS Issues in 2013 Projects (3)
Quality Issues in TE & MW equipments installation

ODU too close Battery terminal Battery safety

I lugs not installed covers not installed
to tower bar not installed

Quality Issues in TE equipments installation

Some rebar used at Tower

Foundation according to required
standard
Outdoor Site not cleaned after
cabinet cable BTS not mounted
inlet not sealed
installation

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 5

 Contents

1 TOP Quality & EHS Issues and Concerns

2 Huawei Project Quality Management System

3 2014 Expectation For Partners

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 6

 Quality＆EHS
Management is the Future !

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 7

Huawei supplier’s Quality & EHS Mgmt System
Customer
Satisfaction

Project Management

Project Quality Management

QEHS System Qualification Site Management Performance Management

Minimum Qualification Standard Evaluation Standard

QMS & EHS Spot Check
QMS & EHS Site Audit Key Personnel Management Result Application
QMS & EHS Regular re-audit Critical Issues Handling Improvement Plan & Execution

Contract Compliance

Page 8
General Requirements Specific Requirements Guarantee & Remedy

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 8

 Policy and QA
Concept Tactic
What is the PQMS of Huawei? Objective Organization

The Concept of Huawei PQMS:TL9000-based Project Quality Management System

Continuous Improvement of Project Quality Mgmt System

Customer
Expectation Mgmt
Mgmt Responsibility

Customer Satisfaction
Customer Requirement

Leadership Organization Policy

Resource & Organization Mgmt Review
Resource Mgmt Measurement, analysis Customer
& improvement Perception Mgmt
Competency
improvement Measurement & Analysis
IT & Tools Audit Internal
/Assessment Control
Knowledge Mgmt Continuous
Improvement

Value Creation Process

DRA DRB DR1 DR2 DR3 DR4

Analyze Plan Establish Realize Handover Close

PMP Project Project Project Project Project Project
Consulting & Network Network Design , Roll-out and Customer Support & Learning & Managed
Requirement Assessment Planning System Integration Assurance Education Service Product &
ISD Service
ISD Portfolio based on eTOM model and cover while life cycle of operator’s business

Focus on customer requirement, realize customer satisfaction through value creation process.
To win delivery through quality, to win quality through leadership. Based on leadership fulfillment, and continually improve business through
resource mgmt, measurement and analysis.
（Plan and Manage Project）
PMP（ ）improve ISD（
（Integrated Service Delivery）
）management level, realize high efficiency delivery value chain.

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 9

 Policy and QA
Concept Tactic
What is the PQMS of Huawei? Objective Organization

The tactics of Huawei PQMS: The Project Quality management Methodology

Analyze DRA DRB DR1 DR2 DR3
project DR4
Plan Project Establish Project Realize Project Handover Project Close Project

Quality Plan Quality Assurance Quality Control Quality Evaluation

1. Listen to Quality 4. Establish Quality 11. Process Quality
VOC Team Control 13. Release
quality staff
5. Adapt Customer Acceptance Process compliance test
Standard Quality control onsite and
issue management
2. Identify project 6. Adapt Customer 14. VOC Assessment
Quality performance
CTQ Delivery Process and Improvement
evaluation and improvement

3. Develop Project 7. Develop Quality

Quality Plan Mgmt Regulation
15. Develop Quality
8. Sign Q_Requirements 12. Acceptance Summary
in Subcontract Quality Control
Subcontractor Subcontractor inspection
Involved Activities 9. Organize Training
Conduct batch spot-check
VOC: Voice of Customer 10. Organize Pilot Trigger acceptance
CTQ: Critical to Quality Validation

16. EHS Management & Monitoring

Note : “PQMS” means “Project Quality Management System”

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 10

 Policy and
Concept Tactic QA Organization
What is the PQMS of Huawei? Objective

Organization Portrait
PMO Quality Dept. Positioning
The facilitators for
PMO Quality Dept. is a QA organization based The caregivers for
customer satisfaction
on PMP process, the main function is to ensure project quality
Improvement
each project is compliance with the Customer Satisfaction
requirements of PMP. Excellent Operation
The creators The protectors for
for quality culture Health and Safety

Responsibilities
DQAs organization building
HQ DQAs competence improvement
Quality strategy development

DQA ability enabling

Region DQA SWAT management
Project quality audit

Country Project quality audit

Project quality management

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 11

 Policy and
Concept Tactic QA Organization
What is the PQMS of Huawei? Objective

DQA Positioning
•Clarify requirements
Quality •Approve Quality plan DQA is the Chief Quality Officer of
Representative and standards project
Customer •Coordinate to solve
quality problem from DQA is the partner of PM, and helps
third party PM to achieve quality objectives

PD Country Office •Establish QA DQA

DQM organization Customer-Centric
“CQO”
•Ensure that Process-Based
DQA customer Operation-Assistance
requirements
implemented
DC Business QC in project PM
delivery
“CEO”
Field QC1 Field QC n PCM PFC
“COO” “CFO”

Subcontractor
QA
Subcontractor DQA represents customers to ensure
•Subcontractor Establish QA requirements to be met
organization
•Fully engaged in Huawei DQA represents the process owner to
quality activities control processes
To support PM to meet “win-win” target

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 12

What회사의
is Partner Involvement
투자 포인트 In the PQMS?
Project QMS Requirement Your involvement

3. Develop Project Quality Plan Prepare quality plan and get approval from Huawei before
implementation
4. Establish Project Quality Team Establish corresponding quality team and nominate QA.

5. Adapt Customer Acceptance Std. Conform to acceptance standards

6. Adapt Customer Delivery
Process Take part in process adaption and comply

8. Sign quality agreement Implement refer to requirement in quality agreement

9. Organize Training Subcontractor Employees get the certificate before

Implementation
Make pilot before implementation phase and make sure
10. Organize Pilot Validation it meets with Huawei standards
11.1 Quality control onsite & issue Make on-site quality & EHS control and rectify the
mgmt no-conformance Issues in time
11.2 Business Partner 100% self Make 100% quality self inspection and send quality report
inspection to Huawei SE/QC

12. Acceptance control No quality, no acceptance; no acceptance, no payment

16. EHS Management Make sure no EHS accident

www.themegallery.com

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 13

What is Absolute Rule of Project Quality Mgmt?
Develop Project Quality Plan BEFORE
Project Initiation

Confirm Acceptance Standard BEFORE

Project Implementation

Sign Quality Requirement including

Acceptance Standard WITH Subcontract

Pilot Verification BEFORE Rolling Out

Key Process Document to Be Prerequisite

for Subcontract Acceptance

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 14

What is Absolute Rule of Project EHS Mgmt?
Our Absolute Rules:
1. Always wear seat belts when
travelling in, or operating vehicles.
2. Always use suitable PPE, a safety
harness and fall protection.
equipment when working at height
3. Never carry out electrical work on
electrical equipment, circuits and
gear if you are not qualified.
4. Never work under the influence of
substance(alcohol or drugs) which
are illegal or excess of legal levels
or where this impairs the
individuals’ ability to perform tasks.
5. Never exceed speed limits or
travel at speeds which are
dangerous for the type of road,
We need to strive to cultivate EHS culture, and vehicle, or conditions.
provide resources let everyone know the 6. Never use a hand held phone
whilst driving and only make calls
requirements and comply with. by pulling over or using hands free
devices, when it is safe to do so.

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 15

What is the affections to partners from PQMS?
Cooperate Brand DO Not DO
Image
Improve Brand Image: Reduce Brand Image:
Good EHS&CSR Bad EHS&CSR
Good Reputation Bad Reputation
Good employee Loyalty Bad employee loyalty

Finance Operation Good Finance: Bad Finance:

Fast Acceptance Slow Acceptance
Better Payment Terms Common payment Terms
Fast Payment Slow Payment
Less quality failure cost More quality failure cost
Fast cash flow Slow Cash Flow

Long-term
Development Good Development: No Development:
More shares Less shares
Reward Penalty
Long-Term Partnership Termination of cooperation

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 16

 Contents

1 TOP Quality & EHS Issues and Concerns

2 Huawei Project Quality Management System

3 2014 Expectation For Partners

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 17

AS IS of Partners Implementing Huawei PQMS
The current situation of partners implementing Huawei PQMS is not good,
especially the following steps:

Not
Establishing
Quality Team

Not Adapting
No Developing and complying
Quality Plan Acceptance
Standard
AS IS:
Partner QEHS Mgmt is weak

Lack of Not Adapting

EHS&CSR and complying
Management Delivery Process

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 18

2014 Expectation-Project Quality Improvement
Huawei Partners need to improve the following quality activities

Establish Project Quality team Conform to Quality Requirement

Allocate full-time Quality Sign

Representative Acceptance Standard
for Huawei level A/B project Into contract and confirm
Focus
Make Quality Plan 2014 Comply Delivery Process
Make Adapt
Quality Plan Project Delivery process
and get Huawei approval before
with Huawei and follow it
implementation

CompanyHuawei
HUAWEI TECHNOLOGIES CO., LTD. Logo Confidential Page 19
2014 Expectation-Project EHS Improvement
Huawei Partners need to improve the following EHS activities

EHS Mgmt. Strategy EHS Absolute Rules

Remind Prohibit
1. Fulfill EHS Leadership, Wear seat belts Never work under
cultivate EHS culture when driving alcohol & drugs

2. Deploy EHS Fall protection for Never exceed speed

requirements to Working at Height limits when driving
subcontract
No electrical work Never use phone
without qualification when driving
3. Implement Min-
Standard, Comply with
absolute rules
Minimum Standard
4. Alert, Circular and Facility Operator
Accountability Configuration Qualification
Vehicle PPE Certification Health

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 20

 Thank you!

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 21