Saudi Aramco 7180 (5/89) G.I.

NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

400.001
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INSPECTION DEPARTMENT QUALITY SYSTEM ROLES AND RESPONSIBILITIES

07/03/1999
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CONTENT:
This General Instruction prescribes the roles and responsibilities between the Inspection Department (ID) and Project Management (PM) during the various project phases under the Capital Program. This General Instruction contains the following information: 1. Purpose 2. References 3. Definitions 4. Commitment 5. Team Organization Structure 6. Roles and Responsibilities for Major Projects 7. Roles and Responsibilities for Small Projects 8. Attachments 9. Approval Authority

1.0

PURPOSE:
This instruction defines the roles and responsibilities of the organizations and personnel directly responsible for the quality of the facilities being provided to the Company under the Capital Budget for all projects managed by Project Management.

2.0

REFERENCES:
2.1 2.2 2.3 SAEP-1023 "Contractor Quality Assurance And Quality Control Requirements" SAEP-303 "Engineering Reviews of Project Proposal And Detailed Design Documentation" SAEP-1150 "Inspection Coverage On Projects"

3.0

DEFINITIONS:
3.1 Functional Reporting: For the purposes of this document, when the ID Representative functionally reports to the Project Manager, he is empowered to report and resolve all quality issues, concerns and violations directly with the Project Manager or his representative in accordance with SAEP-1023. In addition, the Project Manager will communicate all project quality documentation review/approval requests directly to the ID Representative. Administrative Reporting: For the purposes of this document, the ID representative will continue to report to his Project Inspection Unit on his daily inspection activities and

3.2

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

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INSPECTION DEPARTMENT QUALITY SYSTEM ROLES AND RESPONSIBILITIES

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assignments. In addition, all of his personnel records, promotions, evaluations and all other personnel activities will be retained by Inspection Department. 3.3 Major projects: Any project with a capital value more than $50MM, or any group of small projects agreed to by Project Management and Inspection Department. Small projects: Any project with capital value less than $50MM.

3.4

4.0

COMMITMENT:
4.1 Engineering and Operations Services (E&OS) is committed to providing facilities that are fit for purpose and designed, procured and built to the highest quality in accordance with Saudi Aramco Mandatory Engineering Requirements (SAMERs), Project Specifications and Contract requirements. PROJECT MANAGEMENT 4.2.1 As the Company Representative leading the project delivery effort, Project Management, through Project Management Teams (PMT's), is responsible for the overall quality of the projects in the capital program. Each Project Manager is responsible for implementation of quality systems that will effectively deliver the project per Saudi Aramco specified quality requirements. Project Management will provide the leadership, management systems, and resources required to effectively design, procure, construct and mechanically complete the projects. In addition, Project Management will provide on site qualified PMT supervision to insure that the Contractor adheres to all procedures and standards and the built facilities meet with Saudi Aramco Mandatory Engineering Requirements (SAMERs), Project Specifications and Contract requirements.

4.2

4.2.2

4.3

INSPECTION DEPARTMENT 4.3.1 Inspection Department is charged with the corporate responsibility to assure that an effective quality management system is in place, so that materials and equipment purchased, and equipment and facilities constructed for and by Saudi Aramco comply with Saudi Aramco specified quality requirements. Inspection Department will participate actively in the development of effective quality systems, and monitor and assess capital program execution to ensure the project meets specified quality requirements. Inspection Department will provide the resources required to effectively support and assess quality systems throughout all phases of the project: design, procurement, construction and pre-commissioning. In addition, Inspection Department will provide on site inspection in sufficient quality, quantity and detail to insure, through the Project Manager, that the Contractor effectively and efficiently enforces the Saudi Aramco Mandatory Engineering Requirements (SAMERs), Project Specifications and Contract requirements.
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4.3.2

4.3.3

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

400.001
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INSPECTION DEPARTMENT QUALITY SYSTEM ROLES AND RESPONSIBILITIES

07/03/1999
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5.0

TEAM ORGANIZATION STRUCTURE:

5.1 The basis for better definition of Project Management Team (PMT) and Inspection Department (ID) roles and responsibilities can be best illustrated in Attachment I, II & III which shows the Project Team Organization Structure Models for major projects at various stages. This model fosters a 'true' owner team that is aligned and fully responsible for Project Quality, Cost and Schedule. The key element is the assignment of an ID Single Point Contact for all major projects with capital value over $50MM. The same concept will be adopted for a group of medium and small size projects.

5.2

6.0

ROLES AND RESPONSIBILITIES FOR MAJOR PROJECTS:

6.1 INSPECTION DEPARTMENT REPRESENTATIVES: 6.1.1 Assignment and Reporting 6.1.1.1 For each major project or group of small projects, where the Project(s) requires more than one ID Representative, Inspection Department will assign a Single Point Contact (SPC) who shall be responsible for coordinating all inspection activities related to the project throughout all the work phases. The SPC will interface and work with all Project Managers to ensure that the project quality requirements are met. The SPC will be located IK at the location most effective for the work involved. After Contractor mobilization, he will generally be located at the construction site. Design and Procurement phase: During this phase, the Inspection Department SPC will form a vendor inspection team to cover the design and procurement inspection activities. This team will consist of the ID SPC and Saudi Aramco Inspection Representatives (SAIRs). During this phase each SAIR located at the Design Office will report functionally to the most senior PMT Representative (Sr. Project Manager, Project Manager. Sr. PE, PE) located at the Design Office and administratively to the SPC. The SAIR is responsible for the inspection activities during this phase of the project. Design, Procurement and Construction Phases Simultaneously: During this overlapping period and when the Site activities start, the Inspection Department SPC will form a project inspection team to cover the Construction phase. The inspection team will consist of Projects Inspection Division (PID) Supervisor(s), Field Supervisor(s) and Inspectors. Each Inspection Field Supervisor will functionally report to the respective PMT Site Representative and administratively to the PID Supervisor. The PID Supervisor will functionally report to the senior PMT representative on site and administratively to the SPC. The PID Supervisor will be responsible for the all project construction inspection activities. Each inspection Field Supervisor is responsible for inspection activities in his assigned area of the project. Also, the PID Supervisor is responsible for the inspection activities in his assigned project(s).

6.1.1.2

6.1.1.3

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

400.001
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INSPECTION DEPARTMENT QUALITY SYSTEM ROLES AND RESPONSIBILITIES

07/03/1999
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At this stage of the project, Inspection Department SPC will assign a VID coordinator over the SAIRs to coordinate all the Design and Procurement inspection activities. At the Design and Procurement office, the SAIR located at that Design offices will still functionally report to the most senior PMT Representative (Sr. Project Manager, Project Manger. Sr. PE, PE) located at the design office, and administratively to the VID coordinator. 6.1.1.4 Construction phase: the arrangement outlined in 6.1.1.3 will still apply; however, the PID Supervisor will report functionally to the Project Managers and administratively to the SPC. Also, the VID coordinator and all the SAIRs will move to the respective sites and continue their procurement phase inspection activities. They will functionally report to the senior PMT member and administratively to the SPC. Once all materials have arrived on site, the VID coordinator and SAIRs will report to VID.

6.1.2

Manning Level and Mobilization Plan 6.1.2.1 Immediately after Contract(s) award, the SPC will work with Projects Inspection Division (PID) Superintendent, Vendors Inspection Division (VID) Superintendent and Project Manager(s) to determine the required ID QA/QC manning level. He will assign Saudi Aramco Inspection Representatives (SAIRs), PID Supervisor(s) and discipline inspectors to each site and/or contract in sufficient numbers to effectively monitor the Contractor's quality system and insure that all procedures and critical systems are inspected to SAMERs, Project Specifications and Contract requirements. The SPC will continue to work with PID & VID Superintendents and Project Manager(s) to determine the ID inspectors Mobilization Plan during the various phases of the project.

6.1.2.2

6.1.3

Responsibilities 6.1.3.1 Prior to Contract Award a. The SPC or his representative(s) will actively work with Project Manager(s) in the development of the project overall QA/QC plans. As determined necessary by PM & ID, the SPC or his representative(s) will participate in technically qualifying the Contractors, subContractors and vendors providing services and materials to the project.

b.

6.1.3.2

Design and Procurement Phase a. The ID representative(s) will review the quality manuals, QA/QC Procedures and Inspection and Test Plans (ITP's) prepared by the Contractors in accordance with SAEP-1023 to determine if the Contractor's commitment, organization, quality system, personnel and processes are adequate to achieve contractual and project requirements.
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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

400.001
ISSUE DATE REPLACES

INSPECTION DEPARTMENT QUALITY SYSTEM ROLES AND RESPONSIBILITIES

07/03/1999
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b.

The ID representative(s) will work with the project manager to identify vendor inspection requirements, arrange for required inspection coverage, insure appropriate Contractor QA/QC coverage, and conduct spot vendor inspections to insure conformance to requirements. The ID representative(s) will document any violation to the Contract requirements in the Site Logbook. Also, he will issue NCR's and Work Sheets to the PM as needed. The ID representative(s) will keep the project manager appraised of all relevant QA/QC activities.

c.

d.

6.1.3.3

Construction Phase a. The ID representative(s) will review the quality manuals, QA/QC Procedures and Inspection and Test Plans (ITP's) prepared by the Contractors in accordance with SAEP-1023 to determine if the Contractor's commitment, organization, quality system, personnel and processes are adequate to achieve contractual and project requirements. The ID representative(s) will conduct sufficient on-site inspections in all disciplines to assure that the Contractor is effectively implementing his approved quality plans, and report discrepancies to the project manager. The ID representative(s) will maintain inspection logs and issue NCR's through the project manager to the Contractor as needed. The ID representative(s) will keep the project manager appraised of all relevant QA/QC activities.

b.

c.

d.

6.1.3.4

Precommissioning Phase a. The ID representative(s) will work with the project manager to develop an effective QA/QC plan during pre-commissioning. The ID representative(s) will provide sufficient QA/QC management and inspection to assist the Project Manager to insure that all exception items are identified, and assist the project manager as needed to insure their effective resolution.

b.

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

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6.1.4

Quality Assessments The SPC or his representative(s) is responsible to conduct focused technical assessments of the project work progress to ensure that the project quality activities and processes are effective. The schedule of these assessments will be agreed upon by PMT and ID. Quality Status Reporting 6.1.5.1 The Inspection Department Site Representatives shall provide QA/QC reports to the Project Manager highlighting the deviations from the Contract, SAMERs, Project Specifications or quality requirements and recommending corrective action. The ID site representative will also report specific areas of concern to Proponent, PMT and ES Executive Management in accordance with SAEP-1150. The SPC will analyze all the QA/QC reports and status data, and will report any areas of concern to the Project Management Department Manager. The SPC is responsible to promote and build awareness of the project QA/QC requirements and systems within the PMT.

6.1.5

6.1.5.2 6.1.5.3 6.1.6

Design Reviews In accordance with SAEP-303 "Engineering Reviews Of Project Proposal And Detail Design Documentation", the SPC or his representative(s) will participate in the project design reviews at appropriate stages.

6.2

PROJECT MANAGER 6.2.1 Project Quality 6.2.1.1 6.2.1.2 6.2.1.3 As the Company Representative, the Project Manager is responsible for the overall project quality. He is responsible for the effectiveness of the project QA/QC program on his project(s). He is responsible to have a PMT member acknowledge all logbook entries with initials and dates. He will resolve deviations identified by ID with the Contractor. All open issues will be addressed in regular PMT/Contractor meetings. Disagreements between the PMT and ID representatives shall first be resolved by the Project Manager. If the disagreement persists, it shall be resolved by the SPC and the Project Department Manager, or higher as appropriate. He is responsible for the performance of the ID representatives that functionally report to him.

6.2.1.4

6.2.1.5

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

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400.001
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6.2.2

Contractor Compliance 6.2.2.1 He must ensure through Inspection Department representatives that the Contractor(s), Sub-Contractors and Vendors implement project QA/QC requirements in accordance with SAMERs, Project Specifications and Contract requirements. He is responsible to ensure Contractor remediation of deficiencies reported by the inspection representatives.

6.2.2.2 6.2.3 Feedback

He will provide feedback on the ID QA/QC personnel performance to the Inspection Department. 6.3 PROJECT MANAGEMENT DEPARTMENT MANAGER 6.3.1 6.3.2 6.3.3 6.3.4 6.3.5 6.3.6 6.4 Provide guidance and support to the Project Manager as needed to assure project quality goals are met. Set department quality objectives and provide means to achieve them. Review project and departmental QA/QC programs and performance to insure effective implementation of corporate objectives. Periodically review project QA/QC results, and make appropriate policy adjustments to achieve the desired results. Interface with Inspection Department Manager as necessary. Resolve ID/PMT disagreements or refer them to senior management.

INSPECTION DEPARTMENT MANAGER 6.4.1 6.4.2 6.4.3 6.4.4 6.4.5 Develop and maintain Quality Performance Indices to assess the status of the project and benchmark at the Corporate level as a whole. Monitor quality compliance performance indicators and take corrective actions when deviations from plan start to appear. Assign qualified ID Single Point Contacts (SPCs). Call for and implement quality assessments to ensure compliance. Assign an individual or a team to conduct spot assessments of work progress. The objective of these assessments is to evaluate the effectiveness of the Contractor QA/QC coverage of a project. Provide feedback to executive management on quality issues as necessary.

6.4.6

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

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400.001
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07/03/1999
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7.0

ROLES AND RESPONSIBILITIES FOR SMALL PROJECTS:

7.1 INSPECTION DEPARTMENT REPRESENTATIVES 7.1.1 7.1.2 7.2 The Project Inspection Unit Supervisor will be the Single Point Contact (SPC) for the project. All other roles and responsibilities assigned to other Inspection Department Representatives listed in Section 6.1 are applicable.

PROJECT MANAGER The same as Section 6.2.

7.3

PROJECT MANAGEMENT DEPARTMENT MANAGER The same as Section 6.3.

7.4

INSPECTION DEPARTMENT MANAGER The same as Section 6.4.

8.0

ATTACHMENTS:
The following attachments are provided with this General Instruction: ATTACHMENT I: The PROJECT TEAM ORGANIZATION STRUCTURE MODEL DURING DESIGN AND PROCUREMENT PHASE. The PROJECT TEAM ORGANIZATION STRUCTURE MODEL DURING DESIGN, PROCUREMENT AND CONSTRUCTION SIMULTANEOUSLY. The PROJECT TEAM ORGANIZATION STRUCTURE MODEL DURING CONSTRUCTION ONLY.

ATTACHMENT II:

ATTACHMENT III:

9.0

APPROVAL AUTHORITY:
Vice President PM:

Concurred By: Vice President ES Approved By: Senior Vice President E&OS
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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

400.001
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INSPECTION DEPARTMENT QUALITY SYSTEM ROLES AND RESPONSIBILITIES

07/03/1999
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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

400.001
ISSUE DATE REPLACES

INSPECTION DEPARTMENT QUALITY SYSTEM ROLES AND RESPONSIBILITIES

07/03/1999
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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

400.001
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INSPECTION DEPARTMENT QUALITY SYSTEM ROLES AND RESPONSIBILITIES

07/03/1999
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