Non-Conformance

Control Procedure

DOCUMENT NO.: AZ/NCCP/JF-788

REV. No.: 00

NO. OF PAGES: 12

CONTRACT NO: TBA

AL ZAMIL JOB NO: JF/JS-788

PROJECT NAME: KHURAIS AL CRUDE INCRIMENT-300 MBCD,

KHURAIS, K.S.A

CLIENT: AL FANAR CONSTRUCTION(AFC)

COMPANY: SAUDI ARABIAN OIL COMPANY

 AL-ZAMIL METAL WORKS FACTORY
P.O. BOX 13168, JEDDAH CITY 21493
KINGDOM OF SAUDI ARABIA
TEL. 02-638-0766, FAX 02-638-0768

Non-Conformance Control Procedure

0 05/Nov/2016 Issued for approval M.A.R M.D M.S.I

REV DATE DESCRIPTION PREPD CHKD APPD

REVISIONS
DOCUMENT / DRAWING NO. TOTAL NO. OF SHEETS
(INCLUDING COVER)
AZ/NCCP/JF-788
12
 AL-ZAMIL METAL WORKS FACTORY AZ/NCCP/JF-788
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Non-Conformance Control Procedure

INDEX

1. SCOPE

2. PURPOSE

3. RESPONSIBILITY

4. REFERENCE DOCUMENTS

5. Procedure

6. RECORDS
 AL-ZAMIL METAL WORKS FACTORY AZ/NCCP/JF-788
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Non-Conformance Control Procedure

1. SCOPE:
This document gives requirements for Control of Non-Conforming product to
use for site erected storage tanks for KHURAIS AL CRUDE INCRIMENT-300 MBCD, KHURAIS
during any stages of project executions including materials receiving , fabrications and
Project site construction other as applicable.
2. PURPOSE:
Purpose of this procedure is to describe the activities performed in order to ensure
that product that does not conform to the Specified requirements is prevented from
unintended use or installation and to Ensure the identification, documentation,
evaluation, segregation (when practical), disposition of non-conforming product,
and notification to concerned departments.

3. RESPONSIBILITY:
Sr.QHSE Manager shall be fully responsible for the development, issuance, and
implementation of this procedure.

Note (1): Incase of conflict between this procedure and schedule Q requirements,
schedule Q requirements shall be given preference.

4. REFERENCES:
• AZ/QAM/01-Al-Zamil Quality Assurance Manual.
• ISO 9000:2005-Quality Management Systems Fundamentals and Vocabulary
• ISO 9001:2008-Quality Management System Requirements
• SAEP-381-Project Quality Issues Escalation Process
• 00-SAIP-10-Non-Conformance Report
• SAEP-302- Instructions for obtaining a Waivers of a mandatory Saudi Aramco
Requirements.
• GI-0400.001-General Instruction for Quality Management Roles & Responsibility
• AZ/QCM/01- AZ Quality Control manual
• AZ/MAP/14-Corrective/Preventive Action Procedure
• AZ/MAP/16- Control of Records Procedure

5. Procedure:

Non-Conformance observed in receiving Raw Materials Stage :

5.1 When a material is identified as nonconforming or short comings with respect to

stipulated specifications ,Purchase order and International codes requirements the
Materials Inspector labels it with the relevant sticker identifying its nonconformity
status (either HOLD or REJECT).

5.2 The store keeper shall move the nonconforming material to the area allocated to
storing it (QUARANTINE area). Isolating material in this way might be done by the
storekeeper before Materials inspection if he identified the material as
nonconforming.

5.3 Attach a HOLD Tag to the non-conforming item. When segregation is impractical
because of size or location, the item may remain in the manufacturing area or
 AL-ZAMIL METAL WORKS FACTORY AZ/NCCP/JF-788
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Non-Conformance Control Procedure

material receiving area, but the non- conforming item shall be clearly
identified by marking, " hold, Don't proceed further activity ".

5.4 The Materials Inspector issues a MDR (AZ-PUR-13D) with a unique number and
specifying the details of deviations or short coming.

5.5 A copy of this MDR and MRR will be issued to Purchasing,Project Manager, store
supervisor,and Production Manager ,in returns the related department to stop the
effected work and segregate the effected item to prevent the inadvertent use &
stored in quarantine area

5.6 If Non-Conformance is relevant to supplier issues, The Purchaser will follow up with
supplier to see that nonconformity is cleared.

5.6.1 Purchasing officer will receive an alarm from QC for the MDR which go
beyond one week and still open.

5.6.2 Once Supplier provide evidence of correction , purchasing officer forward it

to the Materials Inspector who raised the MDR for his review, and if agreed
with the Materials Inspector the same will be raised to the Sr.QHSE Manager
who in turn decides the proper disposition of these materials in coordination
with relevant parties (such as procurement, Engineering , QA/QC etc).

Nonconformance observed during shop fabrications / Projects Site

Constructions:
Situations addressing through NCR:
5.7 In case of following situations QC or QA Engineer shall initiates NCR :

5.7.1 Any condition which does not meet the applicable rules of the Code,
approved IFC drawings or other specified requirements.
5.7.2 Repetitions of customer issued LBE (within) two weeks.

Situations addressing through Observations reports:

5.8 In case of following situations QC or QA Engineer shall initiates Observations report :

5.8.1 Discrepancies related to temporary attachment.

5.8.2 Materials storage and handling issues which do- not impacting the quality of
materials.
5.8.3 Violations relevant to documentations review, approval and revision control.

5.9 Every Nonconformity must be corrected before the product can be considered
acceptable. Every NCR shall have a unique running serial.
5.10 Sr. QHSE Manager or site QC Manager will forward to contractor records of all
recorded non-conformities within forty eight (48) hours of issue.
5.11 Sr. QHSE Manager or Site QC Manager shall investigate the root cause of non-
conformities and initiate Corrective Actions to prevent recurrence of
nonconformities maximum seven (7) days of the issue date.
 AL-ZAMIL METAL WORKS FACTORY AZ/NCCP/JF-788
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Non-Conformance Control Procedure

5.12 Sr. QHSE Manager or Site QC manager shall maintain a summary of the open non-
conformities (NCRs, Discrepancy Reports, COMPANY Logbook entries, etc.) and
submit it at the regular project progress meetings if requires.
5.13 Sr. QHSE Manager or Site QC manager shall respond to all non-conformities (NCRs,
Discrepancy Reports, COMPANY Logbook entries, etc.) Issued by COMPANY in
writing within 48 hours of receiving notification of non-conformance, including his
proposed corrective actions.
5.14 AZ shall rework or repair and re-inspect items in accordance with COMPANY
approved procedures.

5.15 Sr. QHSE Manager or site QC manager shall notify the Company Representative prior
to final closure of any nonconformity.

DISPOSITION OF NON-CONFORMITY:
Disposition of non-conformity found during Fabrication, Final Testing and
constructions:
5.16 NCR for non-conformity found shall be forwarded to Sr. QHSE Manager or site QC
Manager for his review and recommendation of disposition action. If engineering
input is required, Sr. QHSE Manager or site QC Manager shall forward the non-
conformance report to engineering manager for verification with engineering
requirements. The QC Manager shall then process the NCR in accordance with
the following methods:

(1) When non-conformity within the scope of the applicable Code/ Specification
requirements, Sr. QHSE Manager or site QC Manager may provide the proper
disposition within the scope of his authority.
(2) If any repair or design changes is required or Sr. QHSE Manager or site QC
manager determines that more extensive evaluation is required , the NCR may
be forward to concerned department manager for their review and proposing
the disposition.
5.17 When a condition other than identified in (1) or (2) above occurs, Site QC
Manager or Sr. QHSE Manager shall call the responsible representatives from QA/QC,
Production, Design and other relevant departments, as appropriate, in order to
decide the disposition. The joint meeting shall evaluate the non- conforming
conditions and provide solution for the dispositions.
5.18 The proposed dispositions may be either to "Scrap", "Repair" or "Use-as-is".
When the proposed disposition is "Repair" or "Use-as-is", Manager QA/QC shall
forward the NCR to Manager Design for his review and concurrence of disposition
and as applicable reconciliation of design documents.
5.19 Sr. QHSE Manager or site QC Manager shall sign and date the non-conformance to
approve the disposition. Copy of t h e non-conformance shall then be
forwarded to concerned departments.

ln case of "Repair", concerned QC Engineer shall prepare a repair procedure

indicating the applicable WPS and other as requires.

Hold is removed only when the non-conformity is resolved to the satisfaction of the
QC manager and the client.

5.5 CORRECTION OF NON-CONFORMITY:

 AL-ZAMIL METAL WORKS FACTORY AZ/NCCP/JF-788
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Non-Conformance Control Procedure

The designated department shall perform the disposition in accordance with

the agreed disposition actions:

1."Scrap": Assigned Execution Supervisor shall move the item from the work area to the
scrap yard.

2. "Repair": Concerned s e c ti on of E x e c u t i o n department s hal l conduct repair work

in accordance with the repair procedure and the NCR, after removing the Hold marked
by QC engineer.

3."Use-as-is": Concerned QC Engineer/ inspector shall remove the Hold Mark from
the item and restore status as before.

4. Other: The Corrective action shall be stated as agreed in NCR.

QC Engineer shall verify the completion of the disposition, record the verification on
the NCR and related Inspection Report or ITP, as applicable, and shall release the
material for further activity.

Corrective /Preventive action against the non-conformity shall be taken as

appropriates
.
5.6 CLOSE-OUT OF Non-Conformance:
The Sr. QHSE Manager or site QC Manager, CLIENT and other party
as requires shall sign the NCR for close-out.

5.7 RETENTION OF NCR:

After closing out, the non-conformance shall be maintained in a file in QA/QC
department & NCR register shall be updated accordingly for review of clients if
required.

5.8 Waivers:
AZ shall not waive the requirements of any Quality Plan or Inspection and Test Plan
previously accepted by the customer without the express written consent of the
customer Representative.

6. RECORDS:
• NCR- AZ-QCF-54 Non-Conformance Report Form
• CAR- AZ-QCF-54a Corrective Action Request.
• AZ-QMS-19 Observation Report
• AZ-QCF-54b Materials Discrepancies Report
• AZ-QMS-01 NCRs Log

***End
 Page 8 of 12
NCR No:
NON-CONFORMANCE
REPORT Date:

Title: Job No.: Customer:

Violation Reference:
Item Description:
U

Description of non-conformity:
U

Initiated by: Received by:

Name: Name:

Sign/date: Sign/date:

Root Cause Analysis:

U

Proposed Correction action:

1) Scrap 2) Repair
U

3) Use as is 4) Other

Agreement to prosed correction action.

Proposed by: QMR Engineering Manager Customer review AI
(If Required) (when required) (ASME Coded
Job only)
Name:

Sign & Date:

Correction Action Verification:

QMR Verification:

Name:
Sign/date:

Corrective Action Request Required: Yes No If Yes, Ref. CAR No.:

CAR Closing remarks (if any)

Non-Conforming Dept: QMR: Customer AI

(When required): (ASME Job only):

Name: Name: Name: Name:

Sign/Date: Sign/Date: Sign/Date: Sign/Date:

Form: AZ-QCF-54 Rev.05

 Page 9 of 12
AZ/QC/OR-
Report No.
OBSERVATION REPORT /2016

Date

Discipline
Concerned
Department
Subject
Reference
Documents
Issued By: Received By:

Date & Sign

Name
Item
Observation Descriptions
No.

Correction Action

Taken By: Name: Signature : Date:

Verified By Accepted By:
Name:

Position:

Signature:

Date:

FORM No.: AZ-QMS-19: Rev.0

Page 1 of 1
 Page 10 of 12

DR No:
MATERIAL DISCREPANCY
REPORT Issue date:

Log Serial #
PO#:- MRR #: SUPPLIER NAME:
Item Description:

Description of Discrepancy:

Initiated by: Received by:

Name: Name:
Sign/date: Sign/date:

Proposed Disposition:

Proposed by: QA/QC agreement: Project Manager

Name: Name: Name:
Sign & Date: Sign & Date: Sign & Date:

Closer Verification:

Material Inspector QA Engineer :

Name: Name:
Sign/Date: Sign/Date:

 This Document is property of AZMWF and cannot be duplicated or disclosed for any use other than the purpose for which it is issued for;
without the written consent of AZMWF, It is not allowed to use or change this document other than AZMWF.

AZ--QCF- 54B Rev.0

 NON CONFORMANCE REPORT LOG Page: 11 of 12

DOCUMENT DATE OF ACTION

DEPARTMENT NCR NO TYPE OF NCR
Number Procedure FOLLOW UP TAKEN/BALANCE

Form: AZ-QMS-01, R-0

 Page 12 of 12
CAR No:
Corrective Action Report Date:

Project Title: Job No.: Customer :

Reference NCR No. : N/A NCR Issue Date:

Description of non-conformity: :
U U

Initiated by: Received by:

Name: Name:

Sign/date: Sign/date:

Root Cause Analysis:

U

Proposed Corrective action:

U

Agreement to prosed corrective action.

Proposed by: QMR Concerned Executive Customer review AI
(when required) (ASME Coded Job
only)
Name:

Sign & Date:

Corrective Action Completion Verification:

Verified by QMR:
Sign/date:

Distribution:
U

- Original-QMR
- Copy-Line Executive
- Copy-Non-Conforming Department

Form: AZ-QCF-54A Rev.0