Shell Petroleum Development Company Of Nigeria Ltd.

Classification Status RESTRICTED

Contract Title OGBOTOBO FLOWSTATION POWER SYSTEM
REVAMP

Shell Project Ref. NG 01010952

Node Name OGBOTOBO

Document Title: PROJECT QUALITY PLAN.

Shell Document No: XXX-NG01010952-XXXX

Revision No. R01

Revision Date 17.07.2013

Proprietary Information: This document contains proprietary information and may not be partly or wholly reproduced without prior
written permission from Shell Petroleum Development Company

Revision Date Description Originator Checker Approver

R01 17.07.2013 Issue for Review O. AYOWALE A.IKPEA A.BRESCIA

LEE ENGINEERING
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
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SUMMARY PAGE

Client: Shell Petroleum Development Company of Nigeria Ltd.

Node: General
Project: OGBOTOBO FLOWSTATION POWER
SYSTEM REVAMP
Shell Project. Ref. NG 01010952
Title: Project Quality Plan.
Shell Doc. No. XXX-NG01010952-XXXX

SUMMARY
This Project Quality Management Plan establishes the minimum project quality requirements and
documentation in order to ensure that each phase of the Contract within the limits of contractual
obligation is executed to the required level of quality and in accordance with International Standards
and SHELL Standard Construction Specifications.

KEY WORDS: CONFORMANCE MEANS MAINTAINING A STANDARD

REFERENCES HOLDS

LEE E&C Document No Shell document No Description Page

XXX-NG01010952-XXXX PROJECT QUALITY PLAN 17

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Table of Contents
SUMMARY PAGE .................................................................................................................................................... 2
1 PURPOSE.......................................................................................................................................................... 4
2 SCOPE AND KEY FUNCTIONS RESPONSIBILITIES ............................................................................. 6
2.1 SCOPE ..................................................................................................................................................... 6
2.2 KEY FUNCTIONS RESPONSIBILITIES............................................................................................ 6
3 GLOSSARY OF TERMS AND DEFINITIONS ............................................................................................ 8
4 REFERENCES ............................................................................................................................................... 16
5 QUALITY ASSURANCE AND QUALITY CONTROL POLICY ............................................................ 18
5.1 POLICY STATEMENT ....................................................................................................................... 18
5.2 Quality Assurance Program ................................................................................................................. 19
5.3 Quality Assurance Documentation Structure ..................................................................................... 20
5.4 QA DOCUMENTATION STRUCTURE ............................................................................................ 21
6 PROCUREMENT PROCEDURE ................................................................................................................ 23
6.1 GENERAL ............................................................................................................................................. 23
6.2 SUPPLIERS AND VENDORS QUALIFICATION ........................................................................... 23
6.3 MATERIAL LIST REQUISITION AND ENQUIRES ...................................................................... 24
6.4 BID EVALUATION AND ORDER ISSUE ........................................................................................ 25
6.5 VENDOR INSPECTION AND CERTIFICATION ........................................................................... 26
6.6 INSPECTION AND EXPEDITING OF SUPPLIES .......................................................................... 27
6.6.1 SURVEILLANCE OF SUPPLIES .................................................................................................. 27
6.6.2 EXTERNAL MATERIALS READY FOR TESTING .................................................................. 27
6.6.3 TAKING CHARGE OF THE MATERIAL UPON RECEIPT .................................................... 27
6.7 MATERIALS SUPPLIED BY THE CUSTOMER ............................................................................ 28
PROCUREMENT SCHEMATIC SEQUENCE .................................................................................................. 29
VENDOR INSPECTION AND CERTIFICATION SCHEMATIC SEQUENCE ............................................ 30
7 TESTS AND INSPECTIONS PROCEDURES ............................................................................................ 32
7.1 GENERAL ............................................................................................................................................. 32
7.2 TESTS AND CONTROLS IN MANUFACTURING, ASSEMBLY AND FINAL INSPECTION. 32
7.2.1 INSPECTION AND TEST PLANS ................................................................................................. 32
7.3 PLANNING OF ACTIVITIES ............................................................................................................. 33
7.4 CALLING AND ASSISTANCE OF INSPECTORS .......................................................................... 33
7.5 FINAL INSPECTION........................................................................................................................... 33
7.6 DOCUMENTATION OF TESTS AND INSPECTIONS AND RESPONSIBILITIES ................... 34
7.7 THIRD PARTY INSPECTION ........................................................................................................... 34
8 MATERIAL CONTROL PROCEDURE ..................................................................................................... 36
8.1 GENERAL ............................................................................................................................................. 36
8.2 MATERIAL QC BY CERTIFICATE OF CONFORMANCE METHOD ...................................... 36
8.3 MATERIAL QC BY RECEIVING INSPECTION METHOD ......................................................... 37
8.4 MATERIAL QC BY SURVEILLANCE METHOD .......................................................................... 37
8.5 RECEIVING INSPECTION ................................................................................................................... 38
8.6 IDENTIFICATION AND TRACEABILITY ...................................................................................... 38
8.7 HANDLING AND STORAGE ............................................................................................................. 38
8.8 NON-CONFORMING MATERIAL ................................................................................................... 39
MATERIAL CONTROL SCHEMATIC .............................................................................................................. 40
9 HANDLING, STORAGE, PACKAGE AND DELIVERY .......................................................................... 42
9.1 HANDLING AND STORAGE CONTROL ........................................................................................ 42
9.2 PACKAGING, DELIVERY AND SHIPPING CONTROL .............................................................. 42
10 SUBCONTRACTOR CONTROL............................................................................................................ 44
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10.1 DURING WORK PLANNING ............................................................................................................ 44

10.2 DURING WORK EXECUTION.......................................................................................................... 44
SUBCONTRACT CONTROL SCHEMATIC SEQUENCE............................................................................... 45
11 CONTROL OF CONSTRUCTION PROCESS ...................................................................................... 47
11.1 GENERAL ............................................................................................................................................. 47
11.2 PROCEDURES AND INSTRUCTIONS............................................................................................. 47
11.3 SPECIAL PROCESSES ....................................................................................................................... 48
12 NON-CONFORMANCE CONTROL...................................................................................................... 50
12.1 GENERAL ............................................................................................................................................. 50
12.2 IDENTIFICATION OF NON-CONFORMANCES ........................................................................... 50
12.3 PROCUREMENT NON-CONFORMANCE ...................................................................................... 51
12.4 CONSTRUCTION PROCESS NON-CONFORMANCE.................................................................. 52
12.5 RECTIFYING NON-CONFORMITIES............................................................................................. 52
12.5.1 Minor non-conformities ............................................................................................................... 52
12.5.2 Major non-conformities ............................................................................................................... 52
12.6 CORRECTIVE ACTION ..................................................................................................................... 53
13 AUDIT ........................................................................................................................................................ 55
13.1 GENERAL ............................................................................................................................................. 55
13.2 RESPONSIBILITIES ........................................................................................................................... 55
13.3 MANAGEMENT REVIEW ................................................................................................................. 55
13.4 INTERNAL AND EXTERNAL PROJECT AUDIT .......................................................................... 56
13.5 AUDIT PROCEDURES/SCHEDULING ............................................................................................ 57
13.6 AUDIT PLANNING .............................................................................................................................. 57
13.7 AUDIT REVIEW/APPRAISALS ........................................................................................................ 58
13.8 CLIENT'S RIGHT To AUDIT............................................................................................................. 58
13.9 JOINT AUDITS ...................................................................................................................................... 58
13.10 AUDIT PERSONNEL........................................................................................................................... 58
13.11 AUDIT REPORTING ............................................................................................................................. 59
13.12 AUDIT FOLLOW-UP .......................................................................................................................... 59
14 QUALITY RECORDS .............................................................................................................................. 61
14.1 GENERAL ............................................................................................................................................. 61
14.2 INSPECTION RECORDS.................................................................................................................... 61
14.3 MONITORING INSPECTION RESULTS......................................................................................... 61
14.4 FINAL DATA BOOK ........................................................................................................................... 62
14.5 DISTRIBUTION AND FILING ........................................................................................................... 62
QUALITY RECORDS SCHEMATIC SEQUENCE ........................................................................................... 63
15 TRAINING/CERTIFICATION ............................................................................................................... 65
15.1 PERSONNEL SELECTION CRITERIA............................................................................................ 65
15.2 PLANNING THE TRAINING ............................................................................................................. 65
15.2.1 TRAINING, QUALIFICATION AND CERTIFICATION OF WELDERS ........................... 66
15.2.2 TRAINING, QUALIFICATION AND CERTIFICATION OF NDT PERSONNEL ............. 66
16 STATISTICAL METHODS ..................................................................................................................... 68
16.1 SCOPE ................................................................................................................................................... 68
16.2 QUALITY .............................................................................................................................................. 68
16.2.1 TRACKING THE PERFORMANCE OF EACH WELDER ................................................... 68
16.2.2 PROGRESS MEASUREMENT .................................................................................................. 68
16.3 SAFETY ................................................................................................................................................. 69
 WAGP UTOROGU GAS PLANT PERFORMANCE IMPROVEMENT
PROJECT
QUALITY ASSURANCE/QUALITY CONTROL PLAN REV
0
Contract No: W13195
LEE ENGINEERING

SECTION 1

PURPOSE

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1 PURPOSE

This document pertains to the activities related to the requirements of Project quality plan for Quality
Assurance/Quality Control.

This Project quality plan establishes the minimum project quality requirements and documentation in
order to ensure that each phase of the subcontract within the limits of contractual obligation is executed
to the required level of quality and in accordance with International Standards and SHELL Standard
Construction Specifications.
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SECTION 2

SCOPE AND KEY FUNCTIONS RESPONSIBILITIES

2.1 SCOPE

2.2 KEY FUNCTIONS RESPONSIBILITIES

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2 SCOPE AND KEY FUNCTIONS RESPONSIBILITIES

2.1 SCOPE

The Quality System described in this Quality Plan meets the following criteria:

 It has been established in order to meet the requirements of the company's internal control and the
expectations of the Contractor, guaranteeing the suitability for use, performances, applicability and
safety of the product designed, made, assembled and/or under maintenance.

 It defines responsibilities, authority levels, hierarchical lines, interfaces and lines of communication.

 It establishes that the quality of activity is the responsibility of whoever carries out the activity.

 It establishes that the personnel involved in carrying out special processes should be trained and
qualified in advance.

 It establishes that the main activities affecting the quality should be planned in time and documented
and checked in advance.

2.2 KEY FUNCTIONS RESPONSIBILITIES

- The Project Manager shall be responsible for the implementation of this procedure

- The project QA/QC Manager shall be responsible for distribution and ensuring the possession of
the latest revision of this document within all involved projects functions.

- The project QA/QC Inspectors shall be responsible for monitoring and interpretation of this Plan
hence ensuring that it is fully understood by all involved in project functions.
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SECTION 3

TERMS AND DEFINITIONS

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3 GLOSSARY OF TERMS AND DEFINITIONS

The following definitions are provided to assure uniform understanding, among project participants,
of selected terms that are commonly used; most of these terms also appear in this Quality Plan.

ACCEPTANCE CRITERIA
Threshold condition imposed on the characteristics of an activity, plant part, procedure or service
defined in the standard regulations or other technical documents.

APPLICABILITY
Relevance or lack of relevance of a document, procedure or specification to carrying out, of a given
activity or working stage of a plant part.

APPROVAL
The act of endorsing or adding positive authorisation, by an authorised person, of the responsibility
for a technical drawing or a document prepared by another person or organisations

AS-BUILT
Term used to identify the configuration effectively obtained at tile end of a production process of an
item or plant.

AUDIT
An activity planned and documented in accordance with procedures or to determine through
investigation, examination or assessment of objective evidence, the adequacy of and adherence to
established procedures, instructions codes and standards or other applicable contractual requirements
and the effectiveness of implementation.

AUDIT SCHEDULE
A list showing all those audits planned to be performed during a specified period such as tile first six
months of the project.

AUDITOR
An individual qualified by training and/or experience to conduct quality audits.

LEAD AUDITOR
An auditor designated to manage a quality audit.

CALIBRATION
Comparison of two instruments, one of which has a known standard of accuracy (or having a
relationship with a standard) with the purpose of knowing the accuracy of the other one.
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CROSSCHECK
Is a function of the quality control system carried out as an internal audit in the Technical Department
and in organisation involved in preparation of technical operation specifications.

It consists of a check performed by specialist directly involved in the project different from the one,
who executed the specification or calculation or design drawing.

CERTIFICATION
Written action of determining, ascertaining and certifying that activities, personnel, processes,
procedures or plant parts conform to specified provisions or reference standards.

CHARACTERISTIC
Any main feature of part of a plant, process or activity which is distinct, measurable and describable.

CONSULTANT
Specially qualified person or organisation that ensures a professional service or work to one of the
parties and considered, in terms of his responsibility and operation, as an integral part of the, who
assumes entire operating responsibility.

CONTRACTOR
Person or Organisation who, based on a contractual agreement, is responsible for the activities which
are the object of the contract. (Except otherwise expressly stated, the Contractor is herewith referred
to as Client or Customer).

CORRECTIVE ACTION
Measure adopted to correct conditions which could jeopardized the quality or to exclude the
possibility of these conditions being repeated.

CUSTOMER OR OWNER
Owner of the documents and/or plant parts to be built for the purpose of the works in accordance with
the relevant contract. The Owner of this project is The Shell Petroleum Development Company of
Nigeria Limited.

DEFECT
Non-compliance with the requirements.

DEROGATION
Written authorisation to depart from the original provisions.

DESIGN
Technical and management process which commence with identification of design input and which
lead to and include the issuance design output documents.
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DESIGN REVIEW
Formal and documented review of the engineering work, carried out in order to evaluate both
fulfilment of project requirements and adequacy of design methods applied.

DEVIATION
Departure from the original provisions accepted through the "derogation".

DOCUMENTATION
Set of non-administrative documents, issued and necessary for the start, development, verification,
and conclusion of the construction of a plant and necessary for confirming the quality achieved for the
work. Or, set of documents which illustrate, describe, define or certify the activities, provisions,
procedures or results.

DOCUMENT LIST
List of all the project technical documents showing also the state, revision, relative weight and
progress of each.

EXPEDITING
The action taken by the customer to intervene actively in the production process of the contractor, in
order to ensure delivery of the orders, compliance with the required characteristics, within the set
times and in the agreed place.

GAUGING
Control and/or adjustment of measuring or test equipment on the basis of a sample equipment or set of
reference parameters.

HOLD POINT
Stage of the design, production, construction, inspection and test activities which requires the
presence of an inspector on behalf of the customer and/ or controlling entity and beyond which the
work cannot proceed without the prior agreement of the organisation to which the inspector belongs.

INSPECTION
Type of check or control carried out in an appropriate manner (by means of observation,
measurements, tests etc.) aimed at verifying compliance of an activity or plant part to the provisions
specified.

INSTRUCTION
Documented information intended to provide concise provisions oil the ways of performing an
activity.

INTERFACE
Responsibility and competence divide through which pass tile information and operations between
two organisational units which work to achieve a common goal
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INTERNAL INSPECTOR
Person with considerable specific experience or purposely instructed, designated by the QA/QC
Department, responsible for checking the activities involved in quality.

ITEM
Commonly used with reference to material, part component or structure which forms part of a
material request.

MEASURING AND TEST EQUIPMENT

Means or system, which conform to set standards, used for gauging, measuring, calibration, verifying
and testing data which allow verification or compliance with given specifications.

NON-CONFORMITY
Non-compliance with specified requirements. Departure found in the execution or the characteristics
of a plant part with respect to specified provisions or documentation; deficiencies that make the
indeterminate. Examples of non-conformity include: physical defects test failures, incorrect or
inadequate documentation or deviations from prescribed processing, inspection or test procedures.

NON-DESTRUCTIVE EXAMINATION: (See non-destructive tests).

NON-DESTRUCTIVE TEST:
Simply stated, its is exactly what its name implies-testing without destroying. More specifically, a
non-destructive test is an examination of an object or material in any manner, which will not impair
its future usefulness. The purpose of the test may be to detect internal or external flaws, to measure
geometric characteristics, to determine materials structure or composition or to measure or to detect
some of the object's or material properties.

The major tasks of NDT are: Radiography (the use of X- and Gamma rays), Ultrasonic, Dye-
Penetrant, Magnetic Particle, Eddy Current and Acoustic Emission Testing.

OBJECTIVE EVIDENCE
Any information, documentation or evidence concerning the quality of a plant part, service or activity,
base on observations, measurements or tests which can be verified or demonstrated.

ORGANIZATION
Group of people, equipment and services set up in such a way that they can carry out specific
operations during the course of the works in a complete, autonomous and profitable manner, with the
achievement of a result.

PLANT PART
Any simple or complex physical element or set of these which forms part of the contract.

PROCEDURE
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A document which specifies or describes how an activity is to be performed. It may include methods
to be employed equipment or to be used and sequence of operations.
QUALIFICATION (PERSONNEL)
Characteristic or skill achieved through training and/ or experience, verified under conditions
established by means of tests, which make an individual capable of carrying out specific functions or
tasks required of him.

QUALIFICATION (PROCEDURE)
Demonstration of procedure ability to satisfy pre-determined requirements.

PROCUREMENT DOCUMENTATION
Document which identifies or defines the provisions, including those of Quality Assurance, to which
the activities, plant parts or services, which are subject of purchasing, must conform.

PRODUCTION SITE
Group of people, works, buildings, machines, equipment and services located on site and destined for
construction

PROJECT PROCEDURE
A project document that provides details of specific project activities to be done, it identifies when
they are to be done and by whom they are to be done. Project procedures also identify interfaces,
reporting and documentation requirements.

PROVISION
Compulsory requirement; The provisions are governed by the verbal form; "should"

QUALITY
The sum of the features and characteristics of a product or service related to its capacity to satisfy
stated or implied requirements.

QUALITY ASSURANCE
All those planned or systematic actions necessary to provide adequate confidence that all items or a
facility will perform satisfactorily in service and the actions performed in compliance with
specifications.

QUALITY ASSURANCE DOCUMENTATION

"Checked" documentation which defines the provisions and confirms the quality of the plant parts or
activities relevant for the purpose of quality.

QUALITY CONTROL
Those actions which provide a means to control and measure the characteristics of a gives activity,
item, plant part, process, procedure, service or facility, defined in the standards, regulations, or other
technical documents.
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QUALITY CONTROL PLAN

A document which states in an organic but not necessarily sequential way, the type of inspections and
tests planned for carrying out of an activity, component or plant part.

QUALITY PROGRAMME
A documented set of activities, resources and events serving to implement the quality system of an
organisation

QUALITY MANUAL
A documented which describes organisational structures and correlations and defines management
methods and responsibilities connected with the setting out and implementation of the quality
assurance programme.

QUALITY PLAN
Document which states the specific operating methods, resources and activity sequences which affect
the quality of a particular product, service, contract or project.

QUALITY SYSTEM
The organisational structure, responsibilities, procedures, processes and/or resources set up for the
company's Quality Management.

QUALITY AUDIT
Systematic and independent examination to determine whether quality activities and related results
comply with requirements, if they are effective and if they are suitable to achieve objectives.

REMARK
Advice for the adoption of corrective actions, on account of evidence of a violation of quality related
provisions.

REPAIR
The process of restoring a non-conforming characteristic to condition such that the capacity of an item
to function reliably and safely is unimpaired, and conforms to the original requirement.

REWORK
The process by which a non-conforming item is made to conform to a prior specified requirement by
completion, re-machining, reassembling or other means.

SPECIAL PROCESS
Work process whose results are determined by control of execution parameters and/or by the ability
of the operator. Furthermore, the results cannot be immediately checked by inspections and tests.
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STANDARD
A document which is drawn up through a process of unification prepared and issued by an authorised
person or organisation, whose competence and authority are acknowledged and accepted by the users
of the standard.

SUBCONTRACTOR
An organisation selected by the CONTRACTOR to execute a specific scope of work which is a subset
of the overall project contract.

SUPPLIER OR VENDOR
Any person or organisation that has a contractual relationship for the supply of material, plant parts
and/or services. This term, which is comprehensive, includes such terms as: Sub-vendor, Constructor,
Consultant, Contractor, Sub-contractor of the first or subsequent levels.

SURVEILLANCE
Control activity aimed at verifying whether the operations involved in the development of a plant or
activity conform to provisions laid down.

SPECIFICATION
A written document describing the general requirements of a material, inspection and/or process
including acceptance standards.

TEST
Checking activity to which a plant part is subjected, in order to determine its capacities to satisfy the
provisions specified by subjecting it to set physical, chemical, environmental or operating conditions.

TRACEABILITY
Unambiguous correlation between the characteristics, development history, location of a plant part
and the relative Quality Assurance documentation.

USE AS IT IS
Action proposed in relation to a non-conformity observed which exceeds the set provisions, when it is
certain that departure will not jeopardise the quality and safety prescribed for the plant or activity
concerned.

VERIFICATION
Action of examining, inspecting, testing, controlling, finding that part of a plant, process, activity or
document conform to the provisions laid down or in any case, qualitatively acceptable.

WITNESS POINT
Stage in the design, manufacture, construction, inspection and testing activity which must be notified
to the Inspector on behalf of the Customer's and/or Controlling Entity. Absence of the Customer's
Inspector does not preclude continuation of the work.
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SECTION 4

REFERENCES
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4 REFERENCES

- LEE'S Corporate Quality Manual

- IS09001-2008 Quality Systems: Model for Quality Assurance in Design/Development,

Production, Installation and Servicing

- SHELL Standard Construction Specifications and DEPs

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SECTION 5

QUALITY POLICY

5.1. The Policy Statement

5.2. Quality Assurance Program

5.3. Quality Assurance Documentation Structure

5.4. Q.A. Documentation Structure

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5 QUALITY ASSURANCE AND QUALITY CONTROL POLICY

5.1 POLICY STATEMENT

LEE Engineering & Const. Co. Ltd is engaged in the provision of all engineering needs of the oil
companies. Our areas of operations are, but not limited to Design, Mechanical, Civil, Electrical,
Instrumentation, Construction, Procurement, Project Management, Supply and Provision of Services.

It is the policy of LEE to provide our Clients with products and services which conforms to all
specified requirements in a timely and cost effective manner.

For LEE, Quality is one of the most important means for achieving the objectives of our engagement.
The concept of quality includes all aspects and features of a product or service having the purpose to
satisfy Client requirements and expectations.

We have established a Quality System based on ISO 9001, Quality System Model for Quality
Assurance in Design/Development, Production, Installation and Servicing. All procedures,
documentation and practice, in all areas, are equipped to meeting the requirement of this international
standard.

The achievement of these Quality Objectives and, as a consequence, of the basic objective to keep on
operating as a competitive and successful Company, depends on the quality of personnel, on the
adequacy of organization, on commitment to work and, above all, on everybody's attitude to the
problem of quality.

All personnel have the responsibility, the authority and organizational freedom to identify and
evaluate quality concerns and to initiate solutions. The workers are committed to continuous
improvements of quality and are encouraged to be actively involved in defect prevention and early
detection and elimination of non-conformances.

The Quality Assurance and Quality Control department acts independently from other departments
with the QA/QC Manager as head. The Manager of QA/QC function has got the necessary authority
and freedom of initiative to check that the Quality System is correctly implemented and to propose
and start any corrective action whenever deemed necessary.

The QA/QC Manager has the support of the Top Management to ensure, by any means that the
Quality Policies outlined in this Quality Manual are fully implemented and that proper development
and improvement programs are prepared, put into effect and monitored.

Signed:

for: LEE Engineering and Construction Company Ltd.

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5.2 Quality Assurance Program

The aim of the QA program for every project is to give confidence to LEE’s Client that contract
codes, specifications and quality requirements shall be achieved.

The QA program is designed to meet requirements of Quality Assurance International standards (see
Table of Comparison) and any additional requirements of the contract.

The QA program covers all project activities affecting quality (namely: engineering, procurement,
inspection and testing, site construction and installation) together with relevant documentation.

The activities covered by the QA program are carried out within a system where Organizational
structures, functional responsibilities, interfaces, reporting and communications lines are clearly
defined. Furthermore such activities are documented through adequate procedures.

All personnel are responsible for the quality of the work that they carry out. For each project the
Project Manager is responsible for implementation of the contractual QA program.

The Quality Assurance Organisation verifies the implementation of the QA program and evaluates its
adequacy to realise established quality objectives. Whenever necessary corrective actions are
requested to prevent and correct non-conformances.

The scope of Quality Assurance activities for construction projects is mainly to:

 Ensure that the work is accurately planned and organised.

 Ensure that procedures and instructions are issued for the performance of all required work.
 Ensure, by qualified inspection, which the work is carried out to required quality.
 Demonstrate by documented records that the work has been carried out and inspected to the
required quality.

The Client's Representatives have the right to verify all aspects of the QA system established for the
project. They shall have free access to documentation and facilities relevant to the contractual work
with assistance of QA Organisation.

The training needs and provisions for the training of all personnel, performing quality-affecting
activities, are identified by the Management and are part of the Quality Assurance Program.
In particular personnel performing special tasks (i.e. welding and NDT) shall be qualified on the basis
of appropriate education and in compliance with the applicable standards and regulations. Records of
such qualifications shall be maintained by LEE.
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5.3 Quality Assurance Documentation Structure

The Quality Assurance documentation is structured as shown here below:

Level 1 QUALITY ASSURANCE MANUAL

Level 2 PROJECT QUALITY ASSURANCE PLAN AND ITP’s

Level 3 PROCEDURES AND INSTRUCTIONS

Level 1:
This is the Divisional Quality Assurance Manual which describes the LEE quality policy, the Quality
Assurance program, the head office and project organizations, the Quality Assurance criteria applied
to each phase of the works.

Level 2:
Scope of this plan is to identify all quality-related activities of the specific project.
Such plan shall describe the project organisation; the sequence of planned activities, the list of
applicable procedures and instructions, the records to be produced and, inspection and test plan for
the project.
The Project QA Plan is to be prepared by the appointed Project QA Manager and approved by the
Project Manager before issuing for Client's approval.

Level 3:
These procedures and instructions cover both administrative and technical/operational activities.
For each project it is Project manager's responsibility to decide whether to produce dedicated
procedures or to utilize those already existing in LEE Organisation.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 21 OF 71

5.4 QA DOCUMENTATION STRUCTURE

INTERNATIONAL
STANDARDS and
REGULATIONS

QUALITY
ASSURANCE
MANUAL

CONTRACT
REQUIREMENTS

PROJECT
QA
PLAN

LEE
PROCEDURES
AND PRACTICES

PROJECT
PROCEDURES
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 22 OF 71

SECTION 6

PROCUREMENT PROCEDURE

6.1. GENERAL

6.2. SUPPLIERS AND VENDORS QUALIFICATION

6.3. MATERIAL LIST REQUISITION AND ENQUIRIES

6.4. BID EVALUATION AND ORDER ISSUE

6.5. VENDOR INSPECTION AND CERTIFICATION

6.6. INSPECTION AND EXPEDITING OF SUPPLIES

6.7. MATERIALS SUPPLIED BY CUSTOMER

PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 23 OF 71

6 PROCUREMENT PROCEDURE

6.1 GENERAL

The procurement activity is a critical element in the company's Quality System and is therefore
managed and controlled according to specific procedures, in order to ensure that Client's requirements
are met and that the Project objectives are achieved.

The system adopted aims to overcome the typical problems connected with an interface with an
external organization and to protect itself with regards to its technical, qualitative and management
reliability.

This involves:

 prior assessment and qualification of potential Suppliers and Vendors;

 definition of appropriate stepped technical, quality, management and commercial requirements,

consistent with the Procurement Plan, the Quality Plan and in keeping with the provisions drawn
up by Client;

 assessment of the offers from a technical, qualitative and commercial point of view;

 an appropriate control of any activities subcontracted, commensurate to the importance of such

activities;

 control of the supplies through testing, expediting and technical follow-up activities.

6.2 SUPPLIERS AND VENDORS QUALIFICATION

The services and products are generally supplied by Suppliers and/or Vendors who:

 are mentioned by the Client in his Vendors lists;

 are mentioned in the LEE's Vendors List following positive assessment.

The introduction of a Vendor in LEE's Vendor List, for a given product, occurs on the basis of
previous experience, or through the analysis of documents (questionnaire, Quality Assurance Manual,
etc.), or if necessary, by visiting the offices if the potential Vendor company.

Vendor 'Qualification' occurs through monitoring his performances by Quality and punctuality. Such
performances are translated into index by which it is possible to assess the capabilities of the Vendors
to provide product or services in keeping with those required.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 24 OF 71

6.3 MATERIAL LIST REQUISITION AND ENQUIRES

A list of materials to be purchased and subcontracts shall be finalized at the beginning of the works
and included in the overall project planning.

According to the above, the Project Engineering Department shall produce the material requisition
with all the necessary data for procurement. At this stage, the Quality Assurance Organisation shall
ensure that: applicable quality requirements are included, taking particular care of inspection and
certification requirements.

The Procurement Officer shall be responsible for issuing the Enquiries.

The Inquiries shall be issued only to qualified suppliers, vendors.

The qualification shall be assessed by the Procurement unit with the support of Engineering and
Quality Assurance, on the basis of audit/inspection reports, objective evidence of ability to comply
with specified requirements and previous experience in supplying same standard items.

The Procurement unit shall be responsible for updating the list of qualified suppliers and filing the
documentation related to supplier's qualification.

Inquiry documentation shall include:

 Correct description either of the item to be purchased or of the scope of work to be

subcontracted.

 Drawings/specifications establishing codes and standards to be fulfilled, including inspection

and testing.

 Quality Assurance system requirements.

 Certification by an accepted Inspection Entity, if applicable.

 List of required documentation and certificates.

 Requirements for packing, handling, storage and transportation.

The Unit issuing the requisition shall be responsible for including all necessary documentation. The
Project Quality Assurance Co-ordinator shall review the requisition for completeness and compliance
with contractual specifications before issuing the inquiry.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 25 OF 71

6.4 BID EVALUATION AND ORDER ISSUE

The steps here below described shall be followed by the different areas involved in bid evaluating and
order issuing:

The Procurement Organisation shall be responsible for distributing the bid and supplier
documentation to the different departments in charge of issuing the requisition.

The Engineering Department shall evaluate the bid on the basis of supplier’s engineering data and
technical capability.

The Planning Department shall evaluate the bid on the basis of delivery term.

The Quality Assurance Organisation shall evaluate documentation of Project quality planning.

The Procurement Organisation shall evaluate the bid on the economical point of view through price
comparison.

The Procurement organisation shall issue purchase orders and the supplier awarding reports and
deliver them to the Purchasing Committee headed by the Project Manager for the final internal
purchasing order approval.

Vendors and Subcontractors shall be approved by Client before issuing the Purchasing
Orders/Subcontracts.

Copy of the purchase order shall be handed over to the unit which issued the requisition and bids to
Quality Assurance and Material Control Organizations and to the Administration and Financial
Department.

The Procurement Co-ordinator shall maintain an updated register of purchase orders listing the
following:

 Item description
 Purchase Order number/revision
 Vendor
 Delivery date
 Status
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 26 OF 71

6.5 VENDOR INSPECTION AND CERTIFICATION

Where purchasing of materials and/or equipment is concerned, the inquiry shall specify inspection
and testing requirements at Vendor works and relevant certification.

The Project Q.A. Manager shall review the Quality Control plans produced by Vendors, marking up
the intended inspection points. Such review shall be performed in connection with specialist
engineers for the different involved disciplines (welding, NDT, electrical, mechanical, etc.).

Once completed and approved the Quality Control plans shall become the reference documents for
performance of inspection at Vendor works.

The assigned QC inspector shall be responsible for examining the specifications with all relevant
technical data and carry out the following activities according to the Quality Control Plan:

 Witnessing specified stages of work during inspection test plan.

 Witnessing final tests.
 Reviewing documentation and certification
 Checking material identification and packaging.

At completion of all required inspection, the inspector shall fill and sign an inspection release note,
issue it to the Vendor and to the Procurement Unit, who shall transmit release notes to the Quality
Assurance Organisation.

Where requested in contractual documents, purchased items shall be inspected at source by an

accepted Inspection Entity or Certifying Authority and consequently certified.

Such certification shall be part of the final documentation produced by Vendors before material
delivery.

The Certifying Authority shall inspect and certify all items on the basis of contractual rules and
regulations and shall be supplied by Purchase Order and relevant specifications.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 27 OF 71

6.6 INSPECTION AND EXPEDITING OF SUPPLIES

6.6.1 SURVEILLANCE OF SUPPLIES

The surveillance of supplies is carried out according to special Project-related procedures, by

inspectors appointed by the QA/QC Head.

The control and acceptance procedures adopted for the management of supplies are as follows:

 inspections carried out at the Vendor's office with regard to the "hold points" required by LEE (or
by SHELL);
 inspections of the Quality Control documents provided by the Vendor,
 inspection/testing upon receipt of goods.

The choice of method to be applied is based on the importance, complexity and type of supply and the
Vendor's quality performance and is made during project planning.

Documentary evidence on the condition of the supplies, regarding the technical and
quality/management aspects, is given to the SHELL in the manner stated in the contract.

Any situations found to be in contrast to the provisions of the contract, are quickly notified by the
inspector to QA/QC Head and the Project Manager in the case of critical supplies and, for information
only, to SHELL.

6.6.2 EXTERNAL MATERIALS READY FOR TESTING

The Vendor shall request attendance at the test, for previously set hold points, by telex or fax. If the
stages to be checked are highlighted by SHELL on the purchase order request, the Material Co-
ordinator sees to the notification, as provided in the contract.

Any deviation from the applicable specifications found in any Hold Point, shall be covered by a Non-
conformity Report.

6.6.3 TAKING CHARGE OF THE MATERIAL UPON RECEIPT

Once all the controls have been carried out and the relative certificate has been verified, tile QC
Inspector sends a copy of the acceptance report to the Material Co-ordinator so that the latter may
proceed with the release and transport of the material.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 28 OF 71

6.7 MATERIALS SUPPLIED BY THE CUSTOMER

Controlled management prevents the improper and unauthorised use of the materials and plant parts
supplied by the Customer.

Upon arrival at the site, the materials are inspected in order to verify their condition (completeness of
the delivery, possible damage due to transport, certification, etc.); in the event of an anomalous
situation, the Customer shall be quickly informed and the relevant material segregated while the
Customer makes a decision.

If required by the nature of the material, the measures necessary for preventing deterioration due to
the weather and environmental conditions, are applied. Moreover, periodic inspections shall be
carried out during the storage period, in order to identify any sign of deterioration.

Materials supplied by the Customer shall be managed in accordance with the procedures put into
practice for materials supplied by Vendors.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 29 OF 71

PROCUREMENT SCHEMATIC SEQUENCE

PROJECT
REQUISITION ENGINEERING
DOCUMENTATION

MATERIAL
LIST
PROCUREMENT

INQUIRY TO QA
QUALIFIED VERIFICATION
SUPPLIERS

BIDS

PROCUREMENT

COMMERCIAL QA & QC TECHNICAL

EVALUATION EVALUATION EVALUATION

PURCHASE SUPPLIER
PROCUREMENT ORDER P.O.
APPROVAL ACCEPTANCE

P.O. ISSUE
PROJECT MANAGER
QUALITY ASSURANCE
MATERIAL CONTROL
ADMINSTRATION & FINANCING
P.O. REGISTER

P.O. FILE
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 30 OF 71

VENDOR INSPECTION AND CERTIFICATION SCHEMATIC SEQUENCE

PO
SPECIFICATIONS

VENDOR

QUALITY PLAN

PROJECT SPECIALIST
QA ENGINEER
ORGANISATION

REVIEWED and
COMPLETED
Q.C. PLAN

SPECIALIST
VENDOR INSPECTOR

MANUFACT. INSPECTION
and and
TESTING TESTING

CERTIFICATION RELEASE
PACKAGE NOTE

PROJECT
VENDOR
PROCUREMENT QA
ORGANISATION

PROJECT
MANAGER

SITE
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 31 OF 71

SECTION 7

TESTS AND INSPECTIONS PROCEDURE

7.1. GENERAL

7.2. TESTS AND CONTROLS IN MANUFACTURING, ASSEMBLY AND FINAL

INSPECTION

7.3. PLANNING OF ACTIVITIES

7.4. CALLING AND ASSISTANCE OF INSPECTORS

7.5. FINAL INSPECTION

7.6. DOCUMENTATION OF TESTS AND INSPECTIONS AND RESPONSIBILITIES

7.7. THIRD PARTY INSPECTION

PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 32 OF 71

7 TESTS AND INSPECTIONS PROCEDURES

7.1 GENERAL

This section describes the actions that LEE shall carry to ensure that parts, components, manufactured
goods, products and services rendered meet the requirements of Quality during, manufacturing,
assembly and installation.

7.2 TESTS AND CONTROLS IN MANUFACTURING, ASSEMBLY AND FINAL INSPECTION

All production activities carried out Within LEE as well as work subcontracted to third parties,
undergo tests and inspections in order to prove the product's conformity to requirements set in the
contract documents.

Checking activities refer to the production phases in the workshop and at the site, final inspection and
commissioning.

Procedures for Inspections and Testings to be conducted are defined by Inspections and Tests Plans
(ITP’s) to control inspection activities. These Plans shall be prepared based on contract documents.

If any non-conformity is noticed during manufacturing or installation, they shall be described in a

Non-Conformity Report to be managed following specific procedures laid down by Contractor's Non-
Conformance Procedure and forms.

7.2.1 INSPECTION AND TEST PLANS

The QA/QC Co-ordinator shall develop Inspection and Test Plans (ITP’s) to control
inspection activities. Inspection and Test Plans shall bear the following information:

 Refer to applicable Requisition, Purchase Order or Subcontract.

 Describe the item/activity to which it applies.
 Refer to all applicable standards, codes, specifications and local
laws/rules/regulations.
 Identify all inspection and test activities necessary to verify conformance to
requirements.
 Identify all Hold (H), Review (R), Witness (W), Visual/Dimensional (V/D), Approval
(A) and Random Inspection (R), points.
 Identify inspection standards and acceptance criteria for each inspection activity.
 Identify QC forms and records.

All ITP’s shall be submitted to SHELL for review and approval prior to starting of the
affected activity.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 33 OF 71

7.3 PLANNING OF ACTIVITIES

The Inspection and Test Plan is the document used to plan and check all inspection activities during
the production stages.

It shows the sequence of control and testing requirements as foreseen by the reference documents,
which it refers explicitly to, step by step, such as:

 construction, fabricating and assembly procedures

 tables, cards, drawings for fabrication, construction and assembly
 inspection, testing and trial procedures
 every other applicable document indicated in the contract documents

The dates for inspection or testing are scheduled based on the real progress of works.

7.4 CALLING AND ASSISTANCE OF INSPECTORS

On the basis if the Inspection and Test Plan, the QA/QC Co-ordinator shall notify the authorised
inspectors and/or SHELL that a stage is getting close and it is time for the inspection. On the basis of
the Plan, the QC Inspector in charge is responsible for:

 carrying out measurements and controls in conformity with the indicated requirements;
 helping authorised and Customer's inspectors;
 ensuring the use of an adequate amount of gauged instruments;
 watching and certifying testing operations;
 signing examination reports.

7.5 FINAL INSPECTION

Final inspections verify that the completed systems and items are in conformance with specified
requirements. These inspections also verify the operational readiness of systems and items.
Examples of things checked during final inspections are as follows:

1) Installation has been made in accordance with specified requirements;

2) Workmanship is satisfactory;
3) Items have not sustained external physical damage;
4) All non-conformances have been corrected as required;
5) Checklist of punchlisted items to verify that they have been taken care of;
6) Safety features are being used and comply with applicable codes and regulations;
7) Item identification has been preserved throughout the installed systems.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 34 OF 71

The inspection techniques selected shall be determined by considering the characteristic or parameter
to be measured or the work operations being performed. The basic criteria for the selection of
inspection techniques and processes are the requirements of the applicable specifications, codes, and
standards.

When the physical inspection of completed items is impossible or disadvantageous, indirect control
by monitoring of the processing methods, equipment, and personnel can be performed. Inspection and
process monitoring shall be performed when control is inadequate without both.

7.6 DOCUMENTATION OF TESTS AND INSPECTIONS AND RESPONSIBILITIES

The objective evidence of the Quality reached by material or product is provided by:

 test reports singed by the QC Inspector;

 the ITP signed by the QC Inspector of LEE and the Customer's Inspector;
 the Final Inspection Report signed by the QC Inspector of LEE and the Customer's Inspector for
approval.

The QA/QC Co-ordinator is responsible for the management of the Inspection and Test Plans and
issuing the documentation.

7.7 THIRD PARTY INSPECTION

Where inspection activities such as Non-Destructive Examination (NDE) requiring the services of a
third party, the QA/QC Co-ordinator shall ensure that the inspection procedures conform to the
project requirements.

The QA/QC Co-ordinator shall be the interface between such third party inspection firm and the
Customer’s QA/QC function. He shall also liaise closely with the Project Manager on the activities of
any third party inspectors.

However, since we intend to perform NDE in-house, we do not envisage any third party in this
respect.

Where third party inspection involve Government authorities, the interface shall be either the QA/QC
Co-ordinator or the SAFETY functions, as appropriate.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 35 OF 71

SECTION 8

MATERIAL CONTROL PROCEDURE

8.1. GENERAL

8.2. MATERIAL QC BY CERTIFICATE OF NON-CONFORMANCE

8.3. MATERIAL QC BY RECEIVING INSPECTION METHOD

8.4. MATERIAL QC BY SURVEILLANCE METHOD

8.5. RECEIVING INSPECTION

8.6. IDENTIFICATION AND TRACEABILITY

8.7. HANDLING AND STORAGE

8.8. NON-CONFORMING MATERIAL

PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 36 OF 71

8 MATERIAL CONTROL PROCEDURE

8.1 GENERAL

All the material to be used on the project shall be subject to quality control in manufacturer site and to
inspection by the material control personnel at receipt at any location.

Quality control plan shall be necessary to establish method of acceptance of material in manufacturer
site according to following process:

 Acceptance by Certificate of Conformance Method.

 Acceptance by Receiving Inspection Method.
 Acceptance by Surveillance Method.

Dedicated project procedures shall be issued to detailing how materials shall be received, handled,
identified, stored and issued to production.

8.2 MATERIAL QC BY CERTIFICATE OF CONFORMANCE METHOD

In certain cases where there is no direct inspection by the purchaser, the purchaser may accept an item
based on a supplier’s certificate of conformance. A certificate of this type states that the specified
requirements have been met.

This certificate would be in addition to specific documentation, such as material certificates or reports
of tests performed which may be required by procurement documents. Even though the supplier is
obligated to furnish acceptable items in accordance with contract requirements, the certificate of
conformance would further motivate the supplier to furnish an acceptable item.

The certificate should identify the following:

1) The item or service;

2) The acceptance requirements and a statement that the items or service conforms to these
requirements;

3) The responsible person attesting to the authenticity of the certificate and that person's signature.

Acceptance by this method is usually satisfactory when the item or service is of a simple design and
involves standard materials, processes, and tests. This method may be used for nuts, bolts, flanges,
pipe, gages, thermometers, etc.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 37 OF 71

8.3 MATERIAL QC BY RECEIVING INSPECTION METHOD

The purchaser may accept an item or service solely by receiving inspection when the completed items
or services are as follows:

1) Relatively simple or standard in design, manufacture, and test;

2) Adaptable to standard receiving inspections and/or tests to verify quality characteristics;
3) Not adversely affected in integrity, function, or cleanliness during receiving inspection
operations.

Receiving inspections should be specified in written instructions which state those features to be
inspected. The features include identification; dimensional, physical, and other characteristics;
freedom from shipping damage; and cleanliness. Some examples of types of power plant equipment
for which receiving inspection might be desired are electrical cable, cement, aggregate, fire protection
equipment, structural steel, rebar, standard pumps and electric motors.

8.4 MATERIAL QC BY SURVEILLANCE METHOD

The surveillance method is the monitoring, witnessing, or observing of supplier activities at their
facilities to obtain assurance that the item or service meets procurement document requirements.
Acceptance by the surveillance method may be most desirable when the item or service:

1) is vital to plant reliability;

2) has quality characteristics that are difficult to verify after delivery to the purchaser's facilities;
3) is complex in design, manufacture, and test.

The surveillance method may not be warranted when the quality of the item can be verified by review
of test reports, inspections upon receipt, or other means.

When the surveillance method is used, it shall be performed at intervals consistent with the
importance and complexity of the item or service.

The surveillance method activities may include checking that the following has been accomplished:

1) Documentation on materials, inspections, and tests have been approved;

2) Fabrication procedures and processes have been complied with and that the applicable
qualifications, process records, and certifications are available;
3) Components and assemblies have been inspected, examined, and tested as required and
applicable inspection, test, and certification records are available;
4) Non-conformances have been corrected as required;
5) Components and assemblies are cleaned, preserved, packed, and identified in accordance with
specified requirements.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 38 OF 71

8.5 RECEIVING INSPECTION

Material Control personnel shall be provided with all purchase orders related to materials which will
arrive at the project store for use on the project.

All material and equipment received shall be carefully checked on arrival to ensure that:
 The items have sustained no damage during transport.
 All identification markings are in place and are correct.
 The items are in accordance with P.O. specifications.
 The items are the same items that were inspected and released from the manufacturing or supply
premises.
 The required documentation and certification is attached to material

All items received shall be logged by Material Control personnel with reference to the P.O.

Also attached documentation and certification shall be filed with reference to P.O.

8.6 IDENTIFICATION AND TRACEABILITY

All materials and equipment shall carry identification marking. Any material received which cannot
be identified against relevant documentation shall be segregated until it is identified and accordingly
marked.

Material released for construction or installation shall be clearly identifiable and traceable throughout
the process. Material full traceability means that identification marking on the material is referred to
on relevant certificates and its final position is recorded on as-built drawings.

Material not fully traceable (i.e. bulk materials ancillary structures, etc.) shall be identified only by
conformity certificate specifying material characteristics.

Before work commencement material categories, based on critically criteria, shall be established and
related traceability specified.

8.7 HANDLING AND STORAGE

It shall be the responsibility of the warehouse personnel to ensure that materials handled at the
operational base are not subject to damage. Project procedures or manufacturer’s recommendations
shall detail the methods of handling and storage for various materials to be used on the project. Q&A
personnel shall audit warehouse personnel and ascertain that applicable handling and storage
instructions are well known and duly implemented.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 39 OF 71

8.8 NON-CONFORMING MATERIAL

Material non-conformities include:

- Non conformance with codes, specifications, drawing, P.O.

- Physical defects resulting from manufacturing or handling/transport.
- Inadequate documentation against vendor data/certificates requirements.
- Identification not clearly marked up.
- Identification not complying with attached documentation.

Any non-conforming material shall be segregated and clearly marked until relevant corrective action
is implemented.

The material control personnel shall issue a "Non-Conformity Report" to QA, Engineering and
Procurement.

Engineering shall evaluate and define disposition in accordance with QA and Procurement.

The proposed disposition shall be submitted to Client for approval as applicable.

Material control personnel shall be given instructions on segregated material in order to reject,
rework, repair or use as it is.
 PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 40 OF 71

MATERIAL CONTROL SCHEMATIC

MATERIAL
VENDOR CO-ORDINATION

MANUFACTURER RECEIVING
OR INSPECTION
STOCK SUPPLIER

MATERIAL LIST MATERIAL

PURCHASE NON LOG
ORDERS CONFORMITY

QA
VERIFICATION

SEGREGATION
1.1.1.1.1.1.1 A
R
E
A

MARKING
DISPOSITION IDENTIFICATION
TRACEABILITY CERTIFICATES

HANDLING &
WAREHOUSE STORAGE
INSTRUCTION
USE AS REPAIR REJECT
IT IS
ISSUE TO
PRODUCTION
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 41 OF 71

SECTION 9

HANDLING, STORAGE AND DELIVERY

9.1 HANDLING AND STORAGE CONTROL

9.2 PACKAGING, DELIVERY AND TRANSPORT CONTROL

PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 42 OF 71

9 HANDLING, STORAGE, PACKAGE AND DELIVERY

9.1 HANDLING AND STORAGE CONTROL

At the production stage the Project Manager shall ensure and check that during handling and storage
of materials, at least the following general criteria are met:
 use of proper procedures in carrying out above activities
 use of measures suited to avoid damage, loss, deterioration or uncontrolled replacements
 transport and lifting aids are suited for the work to be carried out
 that documentary evidence is kept regarding the situation of stored and/or used materials
 removal of materials from the warehouse/storage in controlled manner.

In special cases (for example, for materials or components acquired directly from the client which are
to be installed at the construction site), the material personnel responsible for implementing and
checking that all expedients and precautions demanded by the client for warehouse storage are
implemented.

It is the duty of the Quality Assurance Co-ordinator to ensure that the personnel assigned to check
handling and storage operations:

 is informed of the problems connected with the handling and storage of materials, equipment,
spares, etc.
 uses procedures consistent with the type of material in question and that these procedures are
clear and complete
 is aware of any damage caused by handling, transport, closeness to incompatible material, etc.

9.2 PACKAGING, DELIVERY AND SHIPPING CONTROL

All the conforming parts, materials and equipment that are ready for transport are to be protected
and/or packaged in accordance with Client's instructions and/or contract documents.
Materials that are fragile, delicate or that require special transport or packaging will be paid extra
attention.

Quality Control inspectors shall be responsible for the surveillance of loading, transportation to site
off-loading and positioning of major items of equipment/skids at site.

A detailed procedure shall regulate loading, transportation, off-loading and positioning of contract
deliverables.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 43 OF 71

SECTION 10

SUBCONTRACTOR CONTROL

10.1 DURING WORK PLANNING

10.2 DURING WORK EXECUTION

PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 44 OF 71

10 SUBCONTRACTOR CONTROL

10.1 DURING WORK PLANNING

The process of Subcontractor's qualification, inquiry issue, bid evaluation and issue of subcontract i.e.
the same as described in the Section 6 - PROCUREMENT.

Prior to contract award the Subcontractor shall produce a plan of work execution including:
 Sequence of activities and schedule
 Dedicated organisation
 Project QA system
 List of applicable documentation (engineering, quality control, procurement, records)

Such planning shall be incorporated by LEE in the overall planning of the project. In particular the
Subcontractor shall produce quality plans covering his production activities, with reference to
acceptance standards, inspection stages and certificates.

A Project Engineer shall be responsible for the engineering co-ordination of the Subcontractor in
order to clarify all design requirements and ascertain the compliance of design documents produced
by Subcontractor. The Project QA Organisation is responsible for evaluating Subcontractor's QA
system and quality control plans.

The documentation produced by all Subcontractors shall be subjected to LEE review before issuing to
the Client and shall be incorporated in the overall project documentation.

10.2 DURING WORK EXECUTION

During execution of his scope of work the Subcontractor shall implement the approved quality plans,
providing internal quality control, subject to LEE and Client surveillance.

Depending on the complexity of the subcontracted activity and location, a LEE representative is
assigned to Subcontractor's control and surveillance.

The LEE representative at Subcontractor's works shall verify work quality and progress, discuss
contractual matters, and approve site changes (reporting to the Construction Manager Where
applicable).

LEE discipline inspectors shall inspect pre-established stages of Subcontractor's quality plan,
verifying its effectiveness and identifying deficiencies, if any. Any non-conformance shall be dealt
with as detailed in the Subcontractor's quality plan and supporting procedures.

Copy of all reports, certificates and as-built documents produced by Subcontractor shall be issued to
LEE Q.A. for incorporating in the overall final documentation package of the project.
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SUBCONTRACT CONTROL SCHEMATIC SEQUENCE

SUBCONTRACT

SUBCONTRACTOR

ENGINEERING QA SYSTEM
DOCUMENTATION &
Q.C. PLANS

LEE
PROJECT
PROJECT QA
ENGINEERING
ORGANISATION

CLIENT REVIEW
REVIEW and OVERALL PROJECT
and
APPROVAL DOCUMENTATION
APPROVAL

SUBCONTRACTOR

LEE WORK SUBC. ONT.

SURVEILLANCE EXECUTION INTERNAL
QC

PROJECT
FINAL
QA
DATA BOOK
ORGANISATION

OVERALL
PROJECT
DATA BOOK
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SECTION 11

CONTROL OF CONSTRUCTION PROCESS

11.1 GENERAL

11.2 PROCEDURES AND INSTRUCTIONS

11.3 SPECIAL PROCESS

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11 CONTROL OF CONSTRUCTION PROCESS

11.1 GENERAL

The construction production activities shall be duly planned and organized before work starting.

Technological Process to be adopted shall be evaluated not only under production performance
aspect, but also with respect to quality.

Resources, facilities and materials shall be provided on time in order to avoid delays or rework. The
production personnel shall be qualified and trained for the operations they will carry out.
Responsibility for the quality of the work is on those managing, supervising, planning the work and
on the personnel performing it. However in process inspection during installation and construction of
items, it shall be ensured that the required quality is being obtained in accordance with approved
procedures. It also assures that deficient items or systems are found and removed from further
processing early in the construction of the project.

Inspections of the work in progress shall be performed to verify that items are being installed,
assembled, and constructed in compliance with the contract, and the latest approved specifications,
drawings, installation procedures, codes, and standards.

11.2 PROCEDURES AND INSTRUCTIONS

The production activities shall be covered by adequate instructions, i.e. drawings, work procedures,
specifications.

The Project Engineers at project office shall timely issue above instructions to the work sites and
forward any subsequent revision ensuring that production personnel are provided with updated
construction/installation documents.

The Project QA Co-ordinator shall verify recording, filling and distribution of procedures and
instructions to personnel concerned on field.

The correct application of the procedures and instructions during the construction stage is the
essential premise for the acceptability of the work carried out.

The Quality Control Plan (together with the construction procedures), therefore used by the Project
Manager as an instrument for managing and controlling the activities carried out.
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11.3 SPECIAL PROCESSES

The special processes shall be covered by detailed procedures and qualified by tests before work
starting. Typical special processes are:

 Welding
 Non-Destructive Examination
 Cable Jointing
 Cable Terminating
 Coating
 Painting
 Pressure Testing

The construction operations involve carrying out special processes are appropriately controlled by
inspector of LEE in order to ascertain.

 That the special operating procedures and relative acceptability criteria are being followed
 That the operating procedures have been qualified in advance
 That the staff allocated meets the qualification level set.

The Project QA Co-ordinator shall ensure that qualification trials are carried out in compliance with
contract specifications and qualification documentation is complete and correct. He shall maintain a
log of all qualifications for both processes and operators.
After contract award a list of planned qualifications shall be finalized by the Project Manager and
included in the overall project planning.
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SECTION 12

NON-CONFORMANCE

12.1 DURING WORK PLANNING

12.2 DURING WORK EXECUTION

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12 NON-CONFORMANCE CONTROL

12.1 GENERAL

This section indicates the procedures to be followed to find, identify and document non-conforming
processes and/or materials.

Any non-compliance with the approved plans, drawings, procedure or specifications is a non-
conformance. Therefore non-conformances may be related to materials, documents and activities

Detailed procedures for the management of non-conformances shall be developed after contract
award, as part of project procedures

Such procedures shall establish:

 Which non-conformances can occur during the project development
 Who is responsible for processing non-conformances
 Who is responsible for relevant disposition
 How are the dispositions implemented and verified

The non-conformities of a process and / or product are generally determined by:

 Deviations from provisions contained in the contract documents and from applicable standards.
 Deviations from the provisions contained in the technical documents (overall drawings, diagrams,
specifications, etc.)
 Use of measuring, control, and testing equipment that is not gauged or off-gauge.
 Any situation that makes the quality of the product below standard or unacceptable.

12.2 IDENTIFICATION OF NON-CONFORMANCES

Non-conformities can be noticed in any step of the production process, from design activity to the
completion of the product.

When a non-conformity is found on a part of a system, the non-conforming part is clearly identified
and if possible, physically set apart. For major non-conformities, the QA/QC Co-ordinator shall be
notified of this and with the Construction Manager and the Sectional Head concerned, starts the
routine to remedy the situation, which may involve the Customer, by means of the issue of a Non-
Conformity Report. LEE QA organisation shall follow the Customer's system for controlling non-
conformance and shall utilise its forms to document any non-conformances detected during the
execution of the subcontract.

Non-conformities are classified as "Major" or "Minor".

Major non-conformities are those regarding:

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- technical prescriptions included in the contract documents or approved by the Customer,

- prescriptions imposed or approved by the Authorities.

Minor non-conformities are those regarding:

- LEE internal prescriptions, provided they do not involve problems of technical interface with
the Customer;
- non-conformities for which resolution criteria have been already agreed with the Customer
and/or the Authority;
- non-conformities for which resolution modes have been established in procedures and
specifications;
- any non-conformity not classified as major.

The Quality Assurance organisation shall maintain records of all non-conformances with relevant
dispositions and include them in the final documentation package.

12.3 PROCUREMENT NON-CONFORMANCE

These non-conformances are deviations from procurement document requirements. It is essential to

correct these non-conformances to prevent further processing, and completion or delivery of material
and equipment items to incorrect procurement requirements. This may be accomplished by
documenting the methods for the identification, control, and disposition of non-conformances. Non-
conformances to the procurement requirements, which fall into the categories listed below, shall be
submitted to the purchaser for approval of the recommended disposition:

1) A technical or material requirement has been violated;

2) A requirement in a supplier's document, which has been approved by the purchaser, is violated;

3) The non-conformance cannot be corrected by the supplier, that is, the item cannot be reworked so
that it shall meet requirements.

The non-conformance and control methods shall contain provisions for the following:

1) Supplier notification to the purchaser. The non-conformance notification shall include the
supplier's recommended disposition (such as "use-as-is" or repair and rework) and the technical
justification for the recommendation;

2) The purchaser's disposition of supplier's recommendation;

3) The supplier's verification that the non-conformance has been corrected;

4) Requirements for the maintenance of records for each non-conformance.

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12.4 CONSTRUCTION PROCESS NON-CONFORMANCE

It is important to prevent the use or installation of items which have been determined to be
unacceptable. An effective and positive system for controlling these items shall include procedures
for the identification, segregation, and disposition of the non-conforming items.

Non-conforming items shall be identified by the use of tags or other markings, or the placement of
these items in containers which are so marked.

It is useful to segregate these marked items by placing them in holding areas which are remote from
acceptable items. This segregation reduces the possibility of their use.

12.5 RECTIFYING NON-CONFORMITIES

The rectification procedure of non-conformities depends on the classification of the non-conformity.

12.5.1 Minor non-conformities

The resolution proposal is approved inside the organisation that has generated the non-conformity.
For example, in case of a supplier, the resolution is approved by the relevant operating unit of the
supplier; in case of LEE production site the resolution is approved by the QA/QC Co-ordinator in
agreement with the site technical office.

12.5.2 Major non-conformities

Resolution proposals shall be approved by Customer's PE and QA/QC Manager. They evaluate the
proposals made by the relevant operating units and, when necessary, they may require the support of
other functions. They also evaluate influence on technical documentation, quality, time and costs. In
case time and costs are affected, they shall submit the problem to the Project Manager.

The disposition of a non-conforming item may be to accept it "as it is," to "discard", or to "repair" or
"rework", so that the applicable requirements are met. The responsibility and authority for the
disposition of non-conforming items shall be defined to assure that these important decisions are
controlled.
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12.6 CORRECTIVE ACTION

The aim of a corrective action is to rectify non-conformances and prevent their recurrence.

The QA Co-ordinator (or the Project QA Engineer) is responsible for initiating any corrective action.

The corrective action is usually generated by an audit or an inspection as result of evidenced

deficiency.

Examples of such deficiencies are:

 material defects
 established procedure not implemented
 no existing procedure to cover work being performed
 lack of documentation
 failure on a process

The head of production function concerned with the audited/inspected activity shall propose and agree
to the corrective action together with the Project QA Co-ordinator.

Should no agreement be found between the Project QA Co-ordinator and the head of the production
function concerned, the Project QA Co-ordinator shall report the findings to the QA Corporate
Organisation.

The corrective action request shall be explained in a report (Corrective Action Report) where the
responsibility for its implementation is also identified.

The involved Department shall be responsible for the resolution of the non conformity under the
supervision of the QA Department.

The QA Organisation has the responsibility to verify the effectiveness of corrective actions.

The QA Co-ordinator uses corrective action reports to check the performance of the quality system.
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SECTION 13

QUALITY AUDITS

13.1 GENERAL

13.2 RESPONSIBILITIES

13.3 MANAGEMENT REVIEW

13.4 INTERNAL AND EXTERNAL PROJECT AUDIT

13.5 AUDIT PROCEDURES/SCHEDULING

13.6 AUDIT PLANNING

13.7 AUDIT REVIEWS/APPRAISALS

13.8 CLIENT'S RIGHT TO AUDIT

13.9 JOINT AUDITS

13.10 AUDIT PERSONNEL

13.11 AUDIT REPORTING

13.12 AUDIT FOLLOW-UP

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13 AUDIT

13.1 GENERAL

The scope of the internal Quality Audits is a systematic control of all the company's units in order to
verify the correct implementation of the Quality System described in this Project Quality Plan and the
operative procedures, as well as check the effectiveness and application of the Quality Plan for the
project.

The same applies to external audits.

In addition, the audits allow the identification of any areas of the Company's (or Vendor's) Quality
System that require refining and/or improvements.

13.2 RESPONSIBILITIES

Audits shall be conducted by the QA/QC Engineer or by a person appointed by him (Audit Team
Leader), that can guarantee unbiased opinion; he may not be directly involved in the production
activities. If the Quality department is the unit undergoing audit, the Project Manager shall appoint an
Audit Leader whose name he will forward to the Contractor's Project Engineer.

In particular, the QA/QC Engineer is responsible for:

 planning and conducting audits directly or by means of its own delegates
 preparing the checklist to be used to carry out the audit
 preparing, issuing and distributing the Audit Report to the concerned units
 notifying the Client of the proposed audit and the area to be audited
 submitting the Audit Reports to the Client as scheduled
 informing the Project Manager of the problems and difficulties encountered as a result of the
implementation of the proposed corrective actions.

The Audit Team Leader is responsible for:

 conducting the audit
 preparing the audit report
 proposing and co-ordinating with the head of the audited unit the necessary corrective actions.

The unit Heads involved are responsible for:

 co-operating with the Audit Team Leader
 agreeing with the QA/QC Co-ordinator on the corrective actions suited to remedy the non-
conformity discovered
 ensuring that the corrective actions are implemented within the agreed time.

The agenda for any Audit shall be made available to the SHELL seven (7) days before conducting the
audit.

13.3 MANAGEMENT REVIEW

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In order to satisfy the requirements of the Quality Policy, a periodical evaluation and review of the
adopted Quality Assurance System shall be provided by the Management,

For this purpose, an internal Quality System Audit program shall be established and implemented as
follows.

The Quality Assurance Engineer has the responsibility to verify that the Quality Assurance provisions
set out in this Plan are effective and improve the Management of the work within the specific project.

The Project Quality Assurance Engineer shall develop and implement for the project a specific audit
program, as detailed in sect. 3.2.3 of the QA/QC Specification for Sub-contractors.

The results of such auditing activities shall be distributed by the Quality Assurance Co-ordinator.

Depending on the findings reported by the auditing activities, corrective actions and suggestions shall
be proposed by the Head of Quality Assurance to the Construction Manager, and consequently
distributed to all other concerned levels of Management.

The Site Co-ordinator shall then analyse both feedback information, and return to the Head Quality
Assurance of the Division with any corrective action or modification to the Quality Assurance
System.

The Q.A. Manager shall be responsible for the implementation of the Management review provisions.

13.4 INTERNAL AND EXTERNAL PROJECT AUDIT

The Q.A. Head Manager in co-operation with the Project Q.A. Co-ordinator shall perform audits to
verify compliance with the Project Q.A. program and to measure the effectiveness of the program
during all phases of the design process, procurement and construction activities. The essential steps
of the audit shall be as follows:

a. Planning the audit by means of a planning document which defines the organizations and
activities to be audited and the frequency of the audits;

b. Providing audit personnel who are familiar with the types of activities to be audited and who do
not have direct responsibilities in the areas being audited;

c. Performing the audit in accordance with guidelines which identify those activities which affect
quality.

d. Preparing the audit report, which summarises the audit, results and details the non-conformances
observed;
e. Submitting the audit report to the head of the units responsible for the area audited for review
and corrective action of the non-conformances;
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f. Re-auditing of non-conforming areas when it is considered necessary to verify implementation of

the required corrective action.

13.5 AUDIT PROCEDURES/SCHEDULING

Audits are divided into three basic types:

 planned: when conducted in relation to a schedule set up by the QA/QC Co-ordinator,
sometimes upon Client's request
 random: when conducted without any warning to know and monitor the situation in a certain
area
 Finalised: when conducted in relation to unsatisfactory and/or inadequate quality in a certain
area, in the form of a specific survey to find the reasons.

The audits shall be regularly scheduled on the basis of the status and importance of work activities.
They shall normally be conducted at the beginning of a project, at monthly intervals during peak
periods, and near the completion of work.

Regularly scheduled audits shall be supplemented by additional audits when any of the following
conditions occur:

a. It is suspected that the quality of the item is in jeopardy due to deficiencies in the quality
management program;

b. Significant changes are made to the quality management program such as extensive re-
organization or procedure revisions;

c. Independent assessment of program effectiveness is considered necessary;

d. It is necessary to verify implementation of required corrective action.

13.6 AUDIT PLANNING

Audits shall be performed in accordance with checklists used by the auditor to enter all pertinent areas
in an orderly sequence and with a minimum waste of time and effort. Without a checklist, the auditor
may enter an area with only the requirements and/or working procedures at hand. It is difficult to leaf
through the requirements, documents, or procedures on the spot and pick out the specific items that
can be checked at that point. It is all too easy to leave the area only to find, often when it is entirely
too late to remedy the oversight, that one or more significant points have been overlooked. The audit
checklist provides a useful means of determining, at any time, what was actually done during the audit
and what the auditor found.
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13.7 AUDIT REVIEW/APPRAISALS

The QA/QC department shall establish a comprehensive programme of on-going internal and external
appraisals inspections and reviews defining the number and planned timing which shall be used by the
Company during the execution of the Work. Review/appraisal shall be split into the main work areas
as appropriate viz. Project Management, Engineering, Procurement, Construction and
Commissioning.

13.8 CLIENT'S RIGHT To AUDIT

Client may at any time during the execution of the Works carry out planned or unscheduled audits,
reviews or surveillance activities of any aspect of the works being undertaken or it's Subcontractors,
Vendor (Supplier) or Sub-vendor in addition to those already incorporated in the Project Quality Plan.

The Client may initiate such audits (internal or external) where it considers that activities are not
being conducted in accordance with the Contract.

The Company shall make staff available to the Client to assist with the conduct of these audits.

During the execution of the project should Client (Owner) desire to observe the works LEE shall
provide unrestricted access to such work locations.

13.9 JOINT AUDITS

A formal Audit Programme shall be submitted to Contractor at the start of the project. From the
Audit Programme, Contractor may select as many audits as it wishes which shall be designated as
'Joint Audits' to be conducted jointly with LEE. Finalisation of the Joint Audit Programme shall be
made no later than sixty (60) days following contract commencement date. This programme shall be
included in the Project Quality Plan.

The Joint Audits may look at any aspects of Engineering, Procurement, Construction and
Commissioning work in progress and review whether the activities comply with the quality
requirements of the Quality Plan.

Seven (7) days before the conduct of any 'Joint Audit' the agenda shall be submitted to Contractor for
approval.

13.10 AUDIT PERSONNEL

To avoid conflicts of interest, audits shall be performed by personnel who do not have direct
responsibilities in the areas being audited. Personnel performing audits shall be competent and have
sufficient authority and organisational freedom to make the audit process meaningful and effective.
When specific technical expertise is required in the performance of an audit, it is desirable to select
appropriately qualified technical personnel to participate in the audit.
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13.11 AUDIT REPORTING

Audit results shall be documented in an audit report which is transmitted to management personnel
having responsibility for the activity audited. An audit report shall include the following:

a. Description of the audit scope;

b. Identification of the auditors;
c. Personnel contacted during the audit;
d. Summary of audit results;
e. Details of specific non-conformances observed;
f. Recommendations for correcting quality program non-conformances or improving tile program;
g. Date of required response by the audited organisation.

The report shall be distributed to management of both the audited and auditing organisation and
issued within 5 working days after the audit. A copy of the audit report shall be submitted to Client
for comments.

13.12 AUDIT FOLLOW-UP

Management of the audited activity shall review and investigate all audit non-conformances stated in
the audit report to determine and schedule appropriate corrective action, along with the action, to
prevent recurrence (including, where necessary, changes to the quality management program). They
shall respond as requested by the audit report, documenting the results of their review and
investigation. The response shall be made within 30 days of the issuance of the report and shall
clearly state tile corrective action taken or planned and indicate how they intend to prevent
recurrence. In the event that corrective action cannot be completed prior to the issuance of the
response, a scheduled date for the implementation of the corrective action shall be included.

The audited activity shall provide a follow-up report stating the corrective action taken and tile date
the corrective action was completed. They shall also take appropriate action to assure that corrective
action is accomplished as scheduled.

Follow-up action shall be taken by the audit team leader for the following reasons:

a. To obtain a written response to the audit report, when a response is required and it has not been
submitted:

b. To evaluate the adequacy of the response;

c. To assure that corrective action and means of preventing recurrence are identified and scheduled
for each non-conformance;

d. To verify that corrective action is accomplished as scheduled

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SECTION 14

QUALITY RECORDS

14.1 GENERAL

14.2 INSPECTION RECORDS

14.3 MONITORING INSPECTION RECORDS

14.4 FINAL DATA BOOK

14.5 DISTRIBUTION AND FILING

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14 QUALITY RECORDS

14.1 GENERAL

The Quality Assurance program ensures that objective evidence of the quality of the work is provided
by LEE to Contractor and any concerned Authority.

For this purpose a system of records shall document the internal control on the project activities.

All Quality documents shall be managed in a controlled manner. Records shall be easily retrievable
and traceable to the activities for which they were produced for.

Therefore they shall be properly filed, preserved and provided with identification, date, signature, and
activity reference.

Each project function is responsible to produce and maintain records of his work. An indexing
system shall be established for all records to be produced on the project.

At the beginning of the works specific procedures and/or instructions shall be issued for the
identification, recording, filing and distribution of Quality documents. LEE shall use the Contractor's
Turnover System and Tracking Report to identify record and issue reports of status of all construction
Quality Records.

14.2 INSPECTION RECORDS

Documentation of inspection results is important for evaluation purposes and to provide evidence that
the inspected items or systems are acceptable. Checklists which list each inspection criteria shall be
prepared to document the results of the inspection. At a minimum, they shall identify the date of the
inspection, the inspector, reference appropriate drawings and specifications, and note the type of
observation, the results, the acceptability of the results, and the action taken in connection with any
deficiencies noted.

14.3 MONITORING INSPECTION RESULTS

The inspection results for the various construction processes shall be monitored to keep track of those
processes which are producing deficiencies. This monitoring is often called trend analysis. These
trend analyses shall be performed by complex methods (e.g., statistical evaluation) or simple methods
(e.g., plotting the percentage of rejects on weekly basis). Whatever the method selected, it is
important to perform these trend analyses, since they provide a much more objective and systematic
appraisal than that achieved by simply relying upon the memory of the inspection or construction
personnel.

Where the analysis reveals that there are numerous problems, the first step is to determine the cause
of the problem. When this is known, steps shall then be taken to correct the cause. It is not sufficient
to simply increase inspection, since this will only separate the good from the bad. Increased
inspection will increase costs because the money spent on work which was rejected cannot be
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retrieved and the increased volume of inspection work costs more money. The greater amount of
rework also affects the schedule, since less acceptable work is completed.

14.4 FINAL DATA BOOK

All project records shall be collected in the final data book which documents the complete history of
the work performed. The detailed list of the record to be included shall be finalized after contract
award under the responsibility of the Project Q.A. Organisation.

Typical records are:

 Engineering documentation as built drawings (last issue) computer outputs approved

procedures

 Vendor data books purchase order material certificates inspection/testing reports

release notes

 Material traceability material log as-built reports

 Production records processes qualification records (including Subcontractors)

operators qualification records equipment calibration
certificates

Inspection/testing reports

Commissioning reports
Non-conformances and concessions

At the end of the works the final data book shall be collected, reviewed and issued to Contractor
under responsibility of the QA Organisation and final approval of the Project Manager.

14.5 DISTRIBUTION AND FILING

The Project Manager shall draw up a Document Distribution Matrix which contains the type of
distributed document, the number of copies, the purpose of the distribution, issuing Office/Unit and
the addressee.

Project documentation shall be kept on paper or electronic support, for a period established by the
Project Manager. The retention time of Quality Records shall be agreed between LEE and the
Contractor.
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QUALITY RECORDS SCHEMATIC SEQUENCE

SITES APPROVED SUBCONTRACTOR

CHANGES DOCUMENTS APPROVED
ENGINEERING

VENDOR
DATA BOOK

PROJECT PROCUREMENT
ENGINEERING COORDINATOR

AS BUILT MATERIALS
DOCUMENTATION QC
RECORDS MATERIAL
TRACEABILITY

QC
QUALIFICATION
ORGANISATION
RECORDS

CALIBRATION
PRODUCTION CERTIFICATE
QUALITY
RECORDS
CONSTRUCTION
INSPECTION
REPORT
PERFORMANCE PROJECT FINAL
TEST QA INSPECTION
RECORDS ORGANISATION RECORDS

FINAL
DATA BOOK
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 64 OF 71

SECTION 15

TRAINING/CERTIFICATION

15.1 PERSONNEL SELECTION CRITERIA

15.2 PLANNING THE TRAINING

PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 65 OF 71

15 TRAINING/CERTIFICATION

15.1 PERSONNEL SELECTION CRITERIA

The personnel to be used in the activities of LEE are selected according to the following criteria:
 professional qualification
 work experience
 specific educational level
 aptitude for carrying out a specific task
 aptitude of group work
 aptitude for adaptation to organisational changes

Depending on the needs expressed by the Unit concerned, the staff may be put through specific
training before being assigned to the operational activities in order to gain proper level of
qualification.

15.2 PLANNING THE TRAINING

It is the duty of every Unit Manager to look after the training of his staff and enhance the professional
skill of each person, by assigning them to the most suitable jobs.

In particular, the QA/QC Engineer is responsible for training the personnel in charge of QA and QC
activities on the Unit level and with the project team.

A training programme is being defined by LEE for personnel that carry out functions relevant to
Quality. This programme, once it is approved by Management and by the QA/QC Engineer may
include:

 specific training courses for the particular function requested

 support to staff with consolidated experience in the specific field
 updates by means of participation in courses, conventions and conferences about new work
methods, computerised management techniques, etc.

On a regular basis, the Senior Manager (Operations) shall check the implementation of the training
programme and change its contents if he considers it necessary.

Similar training plans shall be prepared and implemented for the other functions reporting to the GM
and the other Departments.

Such plans are checked by the QA/QC Engineer who knows training priority, particularly for
activities that affect Quality.
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 66 OF 71

15.2.1 TRAINING, QUALIFICATION AND CERTIFICATION OF WELDERS

The QA/QC Co-ordinator shall prepare the qualification of the welders in accordance with the
relevant international standards and Client's specification and also in accordance with the welding
process taking into consideration the range of validity of the qualification.

The test coupons shall be inspected and if required, subjected to radiography. The result of all
inspection and examination shall be evaluated by the QA/QC Co-ordinator and the Contractor's
authorised representative.

Satisfactory result shall be recorded on welder’s qualification certificates which shall be approved by
the QA/QC Manager and countersigned by the Client's authorised representative.

The QA/QC Co-ordinator shall then prepare a comprehensive list of qualified welders for the project.
Each qualified welder shall be assigned with a unique identification number.

On completion of the qualification exercise the QA/QC Co-ordinator shall send the qualification
certificates and the list of qualified welders to the Contractor's QA/QC Manager

15.2.2 TRAINING, QUALIFICATION AND CERTIFICATION OF NDT PERSONNEL

LEE NDT personnel shall be qualified and certified in accordance with the recommendations of
ASNT; Recommended Practice No. SNT-TC-IA.

Radiographs shall be evaluated by Technicians qualified and certified as level 11.

Radiographs shall be performed by operators qualified as level 1 minimum.

PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 67 OF 71

SECTION 16

STATISTICAL METHODS

16.1 SCOPE

16.2 QUALITY

16.3 SAFETY
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 68 OF 71

16 STATISTICAL METHODS

16.1 SCOPE

LEE ENGINEERING & CONST. Co. Ltd in consideration of the variety and specificity of its
business, does not carry out regular statistics analysis on its products but, consistent with its policy,
control two fundamental aspects of its activities: Quality and Safety.

16.2 QUALITY

The state of Quality within LEE shall be subject of a quarterly report sent by the QA/QC Co-ordinator
to the Project Manager who will in turn submit it to the contractor's supervisor for the subcontract.

In the report, the collected data are analyzed to detect any problems which may affect the Quality
System. Such data are processed by the statistical methods considered most suitable (histograms, bar
charts, trend analysis etc).

Among the data collected by the QA/QC are, at least, the following:

 Tracking the performances of each welder.

 Average number and type of non-conformities per inspection.
 Number and types of corrective actions issued.
 Data collected during internal audits.
 Progress measurement.
 Number and type of complaints from clients/customers.

16.2.1 TRACKING THE PERFORMANCE OF EACH WELDER

Each welder having passed the qualification tests shall be certified with a unique identification
number (or stamp number) by the QA/QC Co-ordinator. This identification shall remain unchanged
for the duration of the project. The identification symbol assigned to each welder, when required by
the Contractor's Inspector shall be clearly and visibly marked on the welder's helmet, or on the
working clothes, to identify each welder without the necessity of asking him identification documents,
especially during work.

A monthly production report shall be issued in respect of each welder. This report shall indicate the
pipe size and pipe schedule as well as the number of joints welded to arrive at the total pipeinch
welded by each welder.

A similar report shall be prepared showing the defect rate of each welder. The report shall show the
weld number, the type and size of each defect (as indicated in the radiographic examination report),
the date weld was first made and the date of repair. Cases of cut-outs as a result of defective welding
shall be clearly highlighted.

The Contractor's Inspector has the right to revoke a welder's qualification certificate if during the
progress of the work, or after the first radiographic inspections, the welder is seen to be working an
unsatisfactory quality standard.
16.2.2 PROGRESS MEASUREMENT
PROJECT: OGBOTOBO FLOWSTATION POWER SYSTEM REVAMP
TITLE: PROJECT QUALITY PLAN
SHELL DOC. NO.: XXX-NG01010952-XXXX R01 PAGE 69 OF 71

At the initial stage of the subcontract, a Project Time Schedule shall be prepared. This Schedule shall
specify and list the key activities planned for the project performance.

Detailed bar chart schedules are derived from the Schedule and produced for the main activities such
as:

• Engineering time schedule

• Procurement time schedule
• Construction time schedule

The Schedule shall provide milestone dates for engineering, procurement and construction.

Detailed (computer printouts) bar chart schedules, derived from the data contained within the
Schedule, will be produced for areas of work such as:

 Bar chart for each unit or unit group

 Bar chart for construction work areas.

The system shall incorporate the definition of physical progress and productivity of each identifiable
activity measured and assessed in order to report the progress of the job.

Progress 'S' curves shall be used for monitoring and tracking all measurable functions.

The main progress curves anticipated for this project are:

Material procurement curves; which shall be developed for each class of material on cost basis
(orders placed and delivery at job site).

Field construction curves; which shall be developed for each construction and installation
discipline using direct labour or man-hours or cost figures (work performed to date).

"S" curves shall be updated monthly and shall show actual vs. planned progress and costs, and
projected progress and costs.

16.3 SAFETY

Every accident which occurred at the work site shall be notified to the SAFETY Officer on proper
form. The SAFETY Officer will in turn inform the Client's head of SAFETY function.

Collected data shall be processed by the SAFETY Manger by means of proper software. The
obtained parameters shall provide indications for corrective actions if necessary.