Quality

Quality is important to ensure the products and services provided met customers
requirements. In MMHE, quality is defined based on the aspects below :
1. Quality is fitness for use
Quality is defined as products and services provided does as what they
supposed to do.
2. Quality is meeting the customer expectations
Customer satisfied with the products or services.
Customer can feel the quality of the products or services.
3. Quality is exceeding the customer expectations
Quality is beyond the customers requirements and expectations.
4. Quality is superior to competitors
The products or services are compared to the other competitors.

Quality Management System (QMS)

A quality management system (QMS) is a set of policies, processes and procedures required
for planning and execution (production/development/service) in the core business area of an
organization. It is used to control the organization and drive to the quality.

ISO 9001:2008

ISO 9001:2008 is the International Standard for Quality Management Systems (QMS).
It provides the company with a set of principles that ensure a common sense approach to the
management of the business activities to consistently achieve customer satisfaction.
Benefits of registration :
o Customer satisfaction - through delivery of products that consistently meet
customer requirements
o Reduced operating costs - through continual improvement of processes and
resulting operational efficiencies
o Improved stakeholder relationships - including staff, customers and suppliers
o Legal compliance - by understanding how statutory and regulatory requirements
impact on the organization and its your customers
o Improved risk management - through greater consistency and traceability of
products and services
o Proven business credentials - through independent verification against recognized
standards
o Ability to win more business - particularly where procurement specifications
require certification as a condition to supply
There are 8 clauses in ISO 9001 such as:
1. Scope
General : - Organization needs to demonstrate its capability to consistently provide
product that meets customer satisfaction
Application: - All requirements are generic and are intended to be applicable to all
organizations, regardless of type, size and product provided
2. Normative references

-The following referenced documents are indispensable for the application of this
document. For dated references, only the edition cited applies. For undated references,
the latest edition of the referenced document applies.

3. Terms and definitions

-For the purposes of this document, the terms and definitions given in ISO 9000
apply. Throughout the text of this International Standard, wherever the term product
occurs, it can also mean service
4. Quality Management System
-Set requirements to identify, plan, document, provide and control the various
resources needed to operate and manage QMS processes, to continually improve
QMS effectiveness
5. Management responsibility
-Set requirements for top management to demonstrate its leadership and commitment
to develop, implement and continually improve the QMS
6. Resource management
-Set requirements to determine, provide and control the various resources needed to
operate and manage QMS processes, to enhance customer satisfaction by meeting
customer requirements
7. Product realization
-Set requirement to plan, operate and control the specific QMS processes that
determine, design, product and deliver an organizations product and services
8. Measurement, analysis and improvement
-Set requirements to plan, measure and analyze to improve processes that demonstrate
product and QMS conformity and continually improve QMS effectiveness

Quality Assurance (QA) and Quality Control (QC)

Quality Assurance (QA) :

Prepare the working procedure

Control documentation

Plan and arrange activity to achieve quality

Activities are done before the process

Quality Control (QC) :

Monitor the work during product realization in order to fulfil owner

requirements

Check and identify defect on the product developed before it can be released

Maintain and implement the procedure

Focus more on product realization

Document and Record

Document:

Reference or instruction for working

Provides information or evidence

Can be changed

Examples : QDD, transport, contract paper

Record:

Represent proof of existence

It cannot be changed

Example : Record transmittal sheet, death certificate

QAM, QGP, QDD

Quality Assurance Manual (QAM)

Overall QMS

Documents that provided by internal and consists of MMHE overview

Consists of policy used in MMHE

Quality General Procedure (QGP)

Documents that support QAM and contains of general system procedure

Shows relationship between the departments for a specific process or activity

General information about department

Quality Detail Document (QDD)

Documents that support QGP and consist of work instruction, scope, format and form,
codes, standard and specification

As a references for daily activities

Inspection and Test Plan (ITP)

Inspection and Test Plan (ITP) is a one plan that shows a flow of process from the first job
until the whole jobs are completed. The ITP is used as a guideline for the inspector and
customer. The ITP consists of which parts have to do inspection, what kind of method used
for the inspection and who is the person involves in the inspection.

ITP consists of :

Activity number

Reference procedure

Method of inspection

Report number

Inspection parties

Equipment

Frequency

Importance of ITP :

Can prevent from any mistake and error while conducting a certain job

To implement the requirements of ISO 9001:2008

The part to do inspection and types of method used for the inspection can be
seen clearly.

MMHE Business (General)

Corporate Profile
Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) is a leading marine and
heavy engineering services provider in Malaysia, focused primarily on the oil and gas sector.
We offer a wide spectrum of engineering and construction, marine conversion and marine
repair services at two yards in Pasir Gudang, Johor, Malaysia. Over the spam of 39 years,
MHB has grown organically while enhancing its capabilities and service offering through
strategic partnerships
With global leaders such as Technip SA of France, Samsung Heavy Industries of South Korea
and ATB Riva of Italy. Today, the group has a track record of delivering integrated and
complex services, including deepwater oil and gas support services, to local and international
oil and gas clients. It is also recognised for ots expertise in LNG ship repair and dry docking,
and as a one-stop centre for marine conversion.
Corporate History
MHB was incorporated in Malaysia in 1989 as a private limited company, under the name
MSE Holdings Sdn Bhd. In June 2010, MHB became a public company and subsequently
changed its name from MSE Holdings Berhad to Malaysia Marine and Heavy Engineering
Holdings Berhad.
On 29 October 2010, MHB was successfully listed on the Main Market of Bursa Malaysia
Securities Berhad, with its Initial Public Offering (IPO) raising of RM2.03 billion. The IPO
was the first in Malaysia to be conducted with an international strategic investor, Technip SA
of France, a renowned player in project management, engineering and construction in the oil
and gas industry.
The story of MHB dates back to the incorporation of its wholly-owned subsidiary, Malaysia
Marine and Heavy Engineering Sdn Bhd (MMHE) in May 1973, under the name of Malaysia
Shipyard and Engineering Sdn Bhd (MSE). MSE was established by the government to
advance Malaysias maritime industrialisation programme. It was subsequently privatised and
in 2006, became a wholly-owned subsidiary of MISC Berhad. Being within the MISC Group

of companies enabled the two organisations to align their goals and objectives to create
greater synergies.
One of MHBs proudest achievements to date in September 2006 was the completion of the
FPSO Kikeh and the Kikeh Dry Tree Unit Truss SPAR for the Kikeh field, Malaysias first
deepwater project. FPSO Kikeh was the first deepwater FPSO in Malaysia and the SPAR
platform was the first to be installed outside of the Gulf of Mexico.
Another milestone was achieved in 2007 when the MHB Group ventured abroad to operate
and manage the Kiyanly yard, the only fabrication yard in Turmenistan, on behalf of
PETRONAS Carigali (Turkmenistan) Sdn Bhd.
In April 2012, through the yard optimisation initiative, MHB expanded its yard size and
capacity with the acquisition of new land for the fabrication of offshore oil and gas related
structures, to cater to engineering, procurement, construction, installation, hook-up and
commissioning (EPCIC) works. The acquisition has significantly increased MHBs Pasir
Gudang yard capacity from 69,700MT to 129,700MT, making MHB the largest fabricator in
Malaysia today in terms of yard size and capacity. In conjunction with the acquisition,
MMHEs yard in Jalan Pekeliling was renamed MMHE West, while the newly acquired
yard is known as MMHE East.
MHB has come a long way since its incorporation. Today, MHB is recognised as a regional
heavy engineering and deepwater support services provider for the oil and gas deepwater
industry as well as a key player for LNG ship repair and dry docking. MHB is also a one-stop
centre for marine conversion.
Through partnership with Samsung Heavy Industries of South Korea,Technip SA of France
and ATB Riva of Italy, all of whom are leaders in their respective fields, we have improved
MHBs offerings thorugh the enhancement of capabilities and the transfer of technology.
Vision
A Leading Marine and Heavy Engineering Organisation of Choice
Mission

We are international business entity

Our core businesses are :

Offhshore construction

Offshore conversion

Marine repair

We provide quality products at a competitive price

We conduct all our activities in a manner that safeguards health, safety and the environment
Our employees are our greatest and we uphold our shared values in everything we do

Marine Repair Business Unit (MBU) Overview

Main business of Marine Repair Business Unit (MBU) are repairing vessel such as LNG
carries, ULCCs, VLCCs, petroleum tankers, offshore oil rigs, gas carriers and other offshore
support vessel. MBU is specialized in Repair, Life Extension and Conversion (RLEC)
services. MBU is divided into seven sections which are the Commercial, Project
Management, QA/QC, Production and Operation, QHSE, Financial Control and HR Business
Partner.
Marine Repair Business Unit (MBU) Organization Chart
The structure below shows the Marine Repair Business Unit (MBU) organization chart.
Organization chart below shows the position of Senior General Manager, General Manager
and Managers for each department in the MBU divisions.

Facilities and Capacity

The MMHE West Yard is the single largest fabrication yard by annual tonnage capacity in
Malaysia. It also boasts one of the largest dry docks in South East Asia.

Yard Size: 150.6 hectare with a 1.8km seafront

Capacity to undertake projects up to 69,700 MT per year

Open Fabrication Yard Areas

5 open fabrication areas covering 321,400 m2

Skidding facilities which can take up to 55,000 MT

Dry Docks

Dry dock 1 :

Size : 385m x 80m x 14m

Capacity : 450,000 dwt

Dry dock 2:

Size : 270m x 46m x 12.5m

Capacity : 140,000 dwt

Workshops

35 workshops covering an area of 99,000 m2

Shiplift

Size : 188.4m x 33.8m x 8m

Lift capacity : 50,000 dwt

Land berths

2 land berths ( each 345 metres in length)

Quays

8 quays ( lengths of up to 368 metres)

Function of each department

Commercial department
Business development
1. Marketing
Plan and build strategy
Prepare and estimate the annual sales budget
Deal with customer
2. Liaison Office
Work and communicate with agents from other company or organization for better
market coverage
3. Customer service
Build and prepare a customer service centre
Handling customer feedback and complaints

Estimating
1. Provide rough cost estimation for marketing team
2. Calculate the approximate cost for sales bids
Project Management Team
Project management

Managing particular project

Overall project planning and scheduling

Contract and Cost Control

Negotiate with client on project change orders

Keep alert with overall project budget

Project Planning and Documentation

Keep track with the project scheduling and documentation

Make sure of the project compliance and procedure

Quality Assurance (QA) and Quality Control (QC)

Quality Assurance (QA)

Ensure compliance to quality and ISO standards

Plan, prepare and coordinates activities for ISO certification
Management of quality documents and records

Quality Control (QC)

Conduct sampling to identify product defects for repair project

Conduct quality control on products based on contract requirement
Management of non-conformance product and complaint by client

Product and Operation

Resource allotment and allocation

Strategize resource planning in order to develop production capabilities to support the

project management team

Manage and control the productions work allocation to ensure optimum utilization of

production resources
Develop the criteria for assessing the performance levels of the sub-contractors or
internal workforce

Production / Subject Matter Expert

Monitor and execute production works b discipline

Keep track and manage production cost, quality and safety

Asset management

Managing MMHE yard asset such as cranes, vehicles for transportation

Create work and maintenance policy and procedure

Maritime and Equipment Operations

Prepare for docking, mooring, rigging and ship anchoring for repair
Operation of equipment like welding machine, ventilation fan, general and dock
bottom lighting and temporary cables

Health, Safety and Environment (HSE)

Compliance and Implementation

Prepare and guide implementation of HSE Management

Develop and implement MBU and project HSE plans and programmes
Enhance MBU and project HSE management implementation

Project monitoring

Enforcement of HSE rules and regulation to ensure compliance to procedure and safe

work practices
Investigate and analyse incidents and non-conformances to prevent by eliminating and
preventing potential causes of non-conformities

Finance Control
Finance team

Manage accounting processes to ensure proper recording of overheads costs, project

revenue and costs into books of accounts

Managing actual costs against project budget and business units budget

HR Business Partner
Workforce planning and recruitment

Recruitment strategy
Talent sourcing
Welfares

Foreign worker management

Contract management with agent

Work closely with immigration of training programmes
Performance management implementation

Welding ( Types / WPS / PQR / WQT / Performance )

Generally, welding can be defined as a process by which two pieces of metal are joined
together by applying heat or pressure either with the presence of filler or without filler. There
are five types of welding :
1.
2.
3.
4.
5.

Shielded Metal Arc Welding ( SMAW )

Gas Tungsten Arc Welding ( GTAW )
Gas Metal Arc Welding ( GMAW )
Flux Cored Arc Welding ( FCAW )
Submerged Arc Welding ( SAW )

Shielded Metal Arc Welding (SMAW)

Manual arc welding process that uses a consumable electrode coated in flux to lay the
weld.

An electric current, in the form of either alternating current or direct current from
a welding power supply, is used to form an electric arc between the electrode and
the metals to be joined.

As the weld is laid, the flux coating of the electrode disintegrates, giving off vapors
that serve as a shielding gas and providing a layer of slag, both of which protect the
weld area from atmospheric contamination.

SMAW continues to be used extensively in the construction of steel structures and in

industrial fabrication.

Advantages :

Simple, portable and inexpensive equipment

Wide variety of metals, welding positions and electrodes are applicable
Suitable for outdoor applications.

Disadvantages:

The process is discontinuous due to limited length of the electrodes

Weld may contain slag inclusions
Fumes make difficult the process control.

Gas Tungsten Arc Welding (GTAW)

A welding process, in which heat is generated by an electric arc struck between a

tungsten non-consumable electrode and the work piece.

The weld pool is shielded by an inert gas (Argon, helium, Nitrogen) protecting
the molten metal from atmospheric contamination.

The heat produced by the arc melts the work pieces edges and joins them.

Filler rod may be used, if required.

Tungsten Inert Gas Arc Welding produces a high quality weld of most of metals.

Flux is not used in the process.

Advantages :

Weld composition is close to that of the parent metal

High quality weld structure
Slag removal is not required (no slag)
Thermal distortions of work pieces are minimal due to concentration of heat in small
zone.

Disadvantages :

Low welding rate

Relatively expensive

Requires high level of operators skill.

Gas Metal Arc Welding (GMAW)

An arc welding process, in which the weld is shielded by an external gas (Argon,

helium, CO2, argon + Oxygen or other gas mixtures).

Consumable electrode wire, having chemical composition similar to that of the parent

material, is continuously fed from a spool to the arc zone.

The arc heats and melts both the work pieces edges and the electrode wire.
The fused electrode material is supplied to the surfaces of the work pieces, fills the

weld pool and forms joint.

Due to automatic feeding of the filling wire (electrode) the process is referred to as a

semi-automatic.
The operator controls only the torch positioning and speed.

Advantages :

Continuous weld may be produced (no interruptions)

High level of operators skill is not required
Slag removal is not required (no slag)

Disadvantages :

Expensive and non-portable equipment is required

Outdoor application are limited because of effect of wind, dispersing the shielding
gas.

Flux Core Arc Welding (FCAW)

Cored wire act as a continuous consumable electrode, with the flux at the core
providing the necessary shielding gases, slagging ingredient, arc stabilizers and alloy

additions and deposition rate enhancers

The shielding provided by the generation of gases from the core through the arc is
more effective than when gas is generated from an external coating.

Advantages :

High productivity
Larger and better contoured welds than SMAW
Excellent suitability for use in field
Can become semi-auto welding process

Disadvantages :

High smoke generated

Wire feeding apparatus and inherent welding defect
High skills operator required

Submerged Arc Welding (SAW)

A welding process, which utilizes a bare consumable metallic electrode producing

an arc between itself and the work piece within a granular shielding flux applied

around the weld.

The arc heats and melts both the work pieces edges and the electrode wire.

The molten electrode material is supplied to the surfaces of the welded pieces, fills

the weld pool and joins the work pieces.

Since the electrode is submerged into the flux, the arc is invisible.
The flux is partially melts and forms a slag protecting the weld pool from oxidation
and other atmospheric contaminations.

Advantages :

Very high welding rate

The process is suitable for automation

High quality weld structure.

Disadvantages :

Weld may contain slag inclusions

Limited applications of the process - mostly for welding horizontally located plates.

Welding Procedure Specifications (WPS)

A WPS is a document that describes how welding is to be carried out in production. Its
purpose is to aid the planning and quality control of the welding operation. They are
recommended for all welding operations and most application codes and standards make
them mandatory.
Procedure Qualification Record (PQR)
A PQR is required when it is necessary to demonstrate that your company has the ability to
produce welds possessing the correct mechanical and metallurgical properties.
A welding procedure must be qualified in accordance with the requirements of an appropriate
welding procedure standard, such as ASME Sec IX, as follows:
1.

Produce a welding procedure specification (WPS) as stated above.

2.

Weld a test piece in accordance with the requirements of your specification. The joint
set up, welding and visual examination of the completed weld should be witnessed by a
certified welding inspector such as an AWS certified CWI or an Inspection Body. The
details of the test such as the welding current, pre-heat etc., must be recorded during the
test.

3.

Once the welding is complete the test piece must be subject to destructive and non
destructive examination such as radiography and mechanical tests as defined by the
welding procedure standard. This work must be carried out in a qualified laboratory but
the Inspection Body may require witnessing the tests and viewing any radiographs.

4.

If the test is successful you or the test body completes the appropriate documents
which the test bodys surveyor signs and endorses.

Welder Qualification Testing (WQT)

Once the procedure is approved it is necessary to demonstrate that all your welders working
to it have the required knowledge and skill to put down a clean sound weld. If the welder has
satisfactorily completed the procedure test then he is automatically approved but each
additional welder must be approved by completing an approval test to an appropriate standard
such as ASME Sec IX as follows:
1.

Complete a weld test as stated above. The test should simulate production conditions
and the welding position should be the position that the production welds are to be made
in or one more severe.

2.

For maximum positional approval a pipe inclined at 45 degrees (referred to as the 6G

position) approves all positions except vertical down.

3.

Test the completed weld in accordance with the relevant standard to ensure that the
weld is clean and fully fused.

4.

For a butt weld this is normally a visual examination followed by radiography or bend
tests.

5.

Once the test is completed the necessary forms have to be completed by you or the
test body and signed by the test bodys surveyor.

6.

Note that any changes that require a new welding procedure (WPS) may also apply to
the welders approval, refer to the referencing code/ standard for precise details.

Non-Destructive Test (NDT)

Types of NDT :
1.Dye Penetrant Inspection (DPI)
DPI also known as liquid inspection or penetrant testing. It is used to detect surface defect for
non-ferrous and ferrous materials such as plastic and ceramic.
Limitation:

It can only detect surface defect

Indicate a little indication of depth
Critical surface preparation

Procedure:
i.
ii.
iii.
iv.
v.

Clean the surface by using cleaner or remover

Apply the penetrant (coloured/fluorescent) at the surface
Remove the excess penetrant
Apply the developer to draw out the penetrant from the surface breaking
discontinuities
Examined the bleed out under natural light or black (UV) light depends on the type of
penetrant

2.Magnetic Particle Inspection (MPI)

MPI is used to detect the surface and subsurface discontinuities in ferromagnetic materials
such as iron, nickel and cobalt. Ferromagnetic material is a material that can be magnetized to
a level that will allow the inspection to be effective. It cannot be applied for non-ferrous
materials such as copper, brass, aluminium, titanium and stainless steel.
Advantages:

It can detect surface and subsurface defect

Easy to apply
Rapid result
Simple surface preparation

Limitations:

It can only applied on magnetic material

No depth indication

Procedure:
i.

Ensure that the surface is free from grease, oil and moisture so that the particles can

ii.
iii.

be move freely
White contract is applied to ensure the discontinuities can be seen clearly
Magnetic force is applied by using the yoke to establish the necessary magnetic flux

iv.

on the test material

The defect obtained is examined

3.Ultrasonic Testing (UT)

UT is used to detect the welding defects. High frequency of sound wave is used to penetrate
the tested materials.
Advantages:

It can detect both surface and internal defect

Safe operation
Capable of measuring size and depth oh defect
Can be applied for metal and non-metal materials

Limitations:

High-skill operator is required

Good surface finish is required
Costly equipment

Procedure:
i.
ii.

The surface must be free from the grease, oil or contaminant

A small amount of couplant is applied to facilitates the transmission of ultrasonic
energy from the transducer into the tested specimen and prevent the air gap between

iii.

the tested materials

UT probe is placed on the test materials. High frequency of sound wave is used to

iv.

penetrate through material.

The probes transmitter will send a short pulse of ultrasound into the material. This
pulse is reflected back as an echo from the opposite surface of the material, returns to

v.
vi.

the probe receiver.

The probe will scan over the test materials
The signal due to the discontinuities is presented on Cathode Ray Tube Screen (CRT)

Calibration and Validation

Calibration is defined as check, adjust and determine the equipment accuracy by comparing
with the standard scale. In ISO 9001: 2008 in clause 7.6, Control of monitoring and
measuring equipment, the instruments are required to calibrate.
The instrument is required to calibrate when :

New instrument
After the instrument had been repaired or modified
At specific time
Before and after critical measure
Customer requirement

Instruments that have to be calibrate :

Thermometer
Sling hydrometer
Dry film thickness gauge
Measuring tape
AC yoke

Validation
Validation is defined as the conforming that the instrument is installed correctly, operating
effectively and performing without error. After the calibration, valid date is given as the time
for the next calibration.

Audit

Audit is defined as the systematic and documented process for obtaining evidence and
evaluating. It is also requirement in ISO 9001 clause 8.2.2 Internal Audit. Function of audit is
to ensure all requirements in ISO 9001: 2008 are fulfilled.
External Audit
-

Audit team is from the outside company or surveyor such as LRQA and
ASME

Internal Audit
-

Audit team is from the staff of company that qualified to do audit.

What are the purposes of audit?

To observe and check the effectiveness of Quality Management System (QMS)

applied in the company

To highlight the problems and opportunity for improvement
To observe either an organization or department are implementing ISO 9001: 2008 or

not
To figure out the new idea and plan for a better company management

Audit plan
Consists of area to be audit, time to audit, where to audit, auditor and auditee
Audit checklist
Is a set of question consist of area to be ask while conducting the audit. All the answer
given by the auditee must be recorded as a prove.
Audit finding
Discuss the findings obtained in meeting and categories the findings into major or
minor
Auditor must ensure that the findings have supported by evidence
Auditee must be informed and agree with the findings

Major findings : - failure to follow the requirement in ISO 9001: 2008

-effect on customer satisfaction

Minor findings : -failure to follow the requirement in ISO 9001: 2008