Inspection Procedure

00-SAIP-13 09 May 2016

Projects Quality Assessments
Document Responsibility: Project Quality Standards Committee

Saudi Aramco Desktop Standards

Table of Contents

1 Scope..............................................................2
2 Purpose...........................................................2
3 References......................................................2
4 Abbreviations.. 2
5 Definitions...................................................... 3
6 General 4
7 Instruction ..................................................... 5
8 Roles and Responsibilities..............................8

Appendix I Corrective Action Request ...11

Appendix II Category of Audit Findings.. 12
Appendix III Projects Quality Assessment Flow Chart ....... 13
Appendix IV CARs Closure Flow Chart .....14

Previous Issue: 23rd November, 2014 Next Planned Update: TBD

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Primary Contact: Othman S. Al-Amoudi on +966 13 8801423
Copyright Saudi Aramco 2014. All rights reserved.
Document Responsibility: Project Quality Standards Committee 00SAIP13
Issue Date: May 9th, 2016
Next Planned Update: TBD Projects Quality Assessments

1 Scope

This inspection procedure defines the minimum requirements for planning, performing,
and reporting of quality assessments by Inspection Department for all projects managed
by Project Management.
Note: Unscheduled projects quality assessment shall be requested in writing from the Inspection
Department Manager at least one (1) month before the assessment required date.

2 Purpose

The purpose of this 00-SAIP-13 is to document the assessment process to determine

whether the Project contractors Quality Management System is effectively
implemented and maintained.

3 References
SCHEDULE Q Quality Systems for Major LSTK Projects
SAEP-1150 Inspection Coverage on Projects

SAEP-1154 Guidelines for Contractor's Quality Plan

GI-0400.001 General Instruction Manual, Quality System Roles &

Responsibilities

ISO 9001 Quality Management System Requirements

ISO 10005 Quality Management Systems - Guidelines for Quality Plans

ISO 29001 Petroleum, Petrochemical and Natural Gas Industries -
Sector- Specific Quality Management Systems - Requirements
for Product and Service Supply Organizations

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Document Responsibility: Project Quality Standards Committee 00SAIP13
Issue Date: May 9th, 2016
Next Planned Update: TBD Projects Quality Assessments

4 Definitions and Abbreviations

4.1 Definitions

Assessed Party: A contractor for the project, which is assessed.

Assessment Team: A group of individuals selected to perform a project

assessment referred as assessors. The group consists of Assessment Team
Leader who assesses Quality Management System and leads the (Subject Matter
Experts) SMEs who are technical experts in various disciplines such as:
mechanical, electrical, instrumentation, civil, and/or as required.

Corrective Action: An action taken to eliminate the causes of any existing non-
conformity or other undesirable situation in order to prevent recurrence.

Corrective Action Request: A form used document Nonconformance(s) for

Project Assessment.
Assessment Team Leader: A person who has the qualification to perform and
manage quality assessments in Inspection Department.
Objective Evidence: Qualitative or quantitative information, records or
statements of fact pertaining to the quality of an item or service, or to the
existence and implementation of a quality element, which is based on
observation, measurement, or test and which can be verified.
Quality Assessment: A systematic and independent examination to determine
whether the assessed quality activities and related results comply with planned
arrangements and whether these planned arrangements are implemented
effectively and suitable to achieve objectives.
Quality Assessment Group (QAG): Quality assessment group is working under
the umbrella of Inspection Department ISSDQAG and is responsible for
performing the project assessments.
Quality Plan: The document setting out specific project organizations,
interactions, Quality Management System practices, resources and sequence of
activities relevant to the contract. It shall explicitly define the direct control
function and procedures which inspect, measure, test, record and regulate
procurement, fabrication, construction, installation, pre- commissioning and/or
mechanical completion activities through established methods, specifications and
standards for all disciplines involved.

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Document Responsibility: Project Quality Standards Committee 00SAIP13
Issue Date: May 9th, 2016
Next Planned Update: TBD Projects Quality Assessments

Subject Matter Experts (SMEs): Technical Assessors who support the lead assessor
in project assessment from different disciplines such as Electrical, mechanical, Civil
etc.

Yearly Projects Assessment Schedule: A schedule of projects that will be

assessed during the year. The projects will be selected form Master Scheduling
System Report and based on specific criteria. The schedule contains the names
and numbers of projects, contractor names, date of assessment, and the status of
the assessment result.

5 Abbreviations
CAR Corrective Action Request
ID Inspection Department
ISSD Inspection Support Services Division
PQM Project Quality Manager
QAG Quality Assessment Group
SAPMT Saudi Aramco Project Management Team

6 General

6.1 Assessments are planned and scheduled by QAG.

6.2 QAG Leads the projects assessments, however PIDs support QAG to perform the
assessment by providing required SMEs. ID Management will provide commitment
to the Pool of the SMEs to be maintained and utilized as required.

6.3 Yearly Projects Assessment Schedule is prepared for 5 Days for each assessment
however depending the actuals man-days may vary from 3-5 days depending on the
projects progress. Plan is communicated to the responsible PQMs at the beginning of
each year. Project Assessment will cover the contractors assessment and internal
audit will be jointly planned to consider the important areas of the associated PIDs
and will follow Internal Audit Procedure (8.2-QAP-01-ID).

6.4 Assessments are coordinated with the responsible PQM for scheduling with the
contractor and planning for the Internal Audit.

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Document Responsibility: Project Quality Standards Committee 00SAIP13
Issue Date: May 9th, 2016
Next Planned Update: TBD Projects Quality Assessments
6.5 The Projects Assessments are scheduled on yearly bases at the beginning of each
calendar year by QAG and endorsed by ID Manager, i.e., the projects that undergo
through design, procurement, construction, and pre-commissioning phases. The
selection of the projects is through Master Scheduling System Report and the criteria
include that projects exceed the value of more than $ 200 million and the progress is
greater than 20% and less than 70%, and cover all areas of roughly equal proportions.
The frequency of assessments during the lifecycle of the projects is also dependent
on the criteria as risk deemed suitable.

6.6 Assessments may be prompted by significant deficiencies or changes in the project

Quality Management System.

6.7 ID Manager may call for a project assessment to be carried out during the project life
cycle.

6.8 If the corrective actions are not completed within the specified due time, overdue
CARs will be reported to ID management. Elapsed due time can be extended with
proper justification.

7 Instruction

7.1 Competent Assessment Team Leader is assigned to conduct the assessment for the
project and shall have successfully completed 5-days ISO Quality Management
System Lead Auditor course from an accredited training service provider and passed
the examination.

7.2 The following six assessment phases shall be followed as applicable: initiating the
assessment, conducting documents review, preparing for the on-site assessment,
conducting on-site assessment, reporting assessment results, and conducting follow-up
activities.

7.3 Planning, Preparation, and Scheduling Assessment

7.3.1 QAG establishes and maintains a schedule of selected projects for assessments.

7.3.2 PQM is notified on the assessment dates by QAG for both contractors
assessment and PID Internal Audit prior to the scheduled assessment at least
one month and the contractor is notified on the assessment date by PQM at
least three weeks to ensure readiness. In situation where assessments are needed
immediately advance notification is not required.
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Document Responsibility: Project Quality Standards Committee 00SAIP13
Issue Date: May 9th, 2016
Next Planned Update: TBD Projects Quality Assessments

7.3.3 PQM is informed on the assessment plan by QAG at least one week prior to
the scheduled assessment for both contractors assessment and PID Internal
Audit and the contractor is notified on the assessment plan by PQM at least
three working days to ensure readiness.

7.3.4 The necessary documentations are reviewed in order to become thoroughly

familiar with the project prior to the assessment.

7.4 Conducting Project Assessment

7.4.1 The Assessment Team Leader will be responsible to coordinate the team
assessment activities at the projects location.

7.4.2 Upon arrival at the site, Assessment Team Leader shall conduct an Opening
Meeting. The purpose of the Opening Meeting is to:

Introduce the members of the assessment team.

Review the scope and the objectives of the assessment.
Provide a short summary of the methods and procedures to be used to
conduct the assessment.
Establish the official communication links between the assessment team
and the Assessed Party.
Discuss the availability of the necessary resources.
Discuss the time and date for the closing meeting with the Assessed
Party.
Record the attendees during the opening.

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Document Responsibility: Project Quality Standards Committee 00SAIP13
Issue Date: May 9th, 2016 Projects Quality Assessments
Next Planned Update: TBD

7.4.3 Objective evidence is collected through interviews, examination of documents,

and observations of activities in the area of concern. Areas suggesting non-
conformities should be further investigated.

7.4.4 Prior to the closing meeting with the Assessed Party, the assessment team reviews
their findings and agree on the findings to be discussed to the Assessed Party
management. The assessment team ensures that the audit findings are clear,
concise, and supported by objective evidence.

7.4.5 Corrective Action Requests (CARs) are identified in terms of the specific
requirements of the standard or other related documents against which the
assessment was conducted. CARs will be classified as Major and Minor CARs,
and observations while the final reporting. The criteria for Major, Minor and
Observation is referred in Appendix-II.

7.4.6 Observations will be recorded as Preventive Action request, (PARs), time frame
for the response shall not exceed 90 days maximum.

7.4.7 Respective Checklists are recommended to be used for the projects assessments
and to be submitted at the end of the assessment with assessment findings to the
Assessment Team Leader

7.4.8 Upon completion of the assessment, Assessment Team Leader conducts a closing
meeting. The purpose of the closing meeting is to:
Present the assessment findings to ensure that assessment findings are
clearly understood.
Any disagreements shall be highlighted and discussed with Assessed Party,
QAG Leader has the final authority in cases where the legitimacy of an audit
findings cannot be resolved.
Time frame for the CARs Closure may vary depending on the risk and impact
on quality, Classification and depth of root cause analysis but shall not exceed
90-Days maximum from releasing SAP notification.
Record the attendees during the closing meeting

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Document Responsibility: Project Quality Standards Committee 00SAIP13
Issue Date: May 9th, 2016 Projects Quality Assessments
Next Planned Update: TBD

7.5 Reporting Project Assessment

7.5.1 The assessment findings are reported in SAP through F6 Notification within
fourteen (14) working days from the date of the assessment completed, and handed
over for review and approval.

7.5.2 As a minimum, the assessment report in the SAP through F6 Notification includes
the following information: Executive Summary, Project Scope, Assessment Scope,
Methodology, Dates of Assessment, Assessment Findings and Findings
Reporting, Tracking, Closure

7.5.3 As a minimum, ID Manager, ISSD Division Head, PIESU Supervisor, QAG

Leader, PID Division Head, PID Sr. Supervisor, PQM, Assessment Team Leader,
SMEs shall be included in the notifiers list.

7.5.4 The Assessed Party completes all required corrective actions with objective
evidence for closure of the CAR(s) within the agreed time frame.

7.6 Follow-up on Assessment Findings

7.6.1 The designated PQM conducts follow-up on all issued nonconformities, verify
implementation, and upload the completed corrective actions with evidences in
the SAP. Associated PID will be responsible for the review of the contractors
assessment findings. Final validation and approval of assessment findings will be
performed by QAG for the closure of SAP notification.

8 Roles and Responsibilities

8.1 SAPMT Project Manager or his representative is responsible for the

following:

8.1.1 Attend opening and closing meeting

8.1.2 Follow up with Contractor to complete the required corrective actions.

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Document Responsibility: Project Quality Standards Committee 00SAIP13
Issue Date: May 9th, 2016 Projects Quality Assessments
Next Planned Update: TBD

8.2 PQM or his representative is responsible for the following:

8.2.1 Attend opening and closing meetings.

8.2.2 Notify the contractor of the scheduled assessment date at least three weeks prior
to the scheduled assessment.

8.2.3 Notify the contractor of the assessment plan at least three working days prior
to the assessment.

8.2.4 Report the CARs of the assessment to the assessed party.

8.2.5 Receive and verify completed corrective actions from assessed party.

8.2.6 Upload the completed corrective actions with evidences in SAP.

8.3 ID - Quality Assessment Group Leader is responsible for the following:

8.3.1 Prepare, maintain, and update projects assessments yearly schedule.

8.3.2 Assign qualified Assessment Team Leader to conduct the assessment for the
project.

8.3.3 Notify PQM for all projects scheduled assessments at least one month prior to
the scheduled assessment.

8.3.4 Review and approve quality assessment report in SAP.

8.3.5 Communicate Yearly Projects Assessment Schedule in the 4th quarter of each
year to the responsible PQM.

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Document Responsibility: Project Quality Standards Committee 00SAIP13
Issue Date: May 9th, 2016 Projects Quality Assessments
Next Planned Update: TBD

8.4 Assessment Team Leader is responsible for the following:

8.4.1 In charge for leading, planning, coordinating, assessing, reporting, and

following-up throughout the assessment.

8.4.2 Coordinate with the Internal Audit Leader and SMEs participating in the
assessment regarding their area of responsibilities as required.

8.4.3 Notify PQM for the assessment plan at least one week prior to the scheduled
assessment.

8.4.4 Represent the assessment team with Assessed Party

8.4.5 Make final decisions regarding the conduct of the assessment

8.4.6 Report assessment findings in SAP through F6 Notification.

8.4.7 Review all corrective actions and complete F6 notification in SAP accordingly.

8.5 Assessment team (Internal Audit Leader and SMEs) are responsible for the following:

8.5.1 Prepare for the assessments by reviewing the contractor's Quality Plan,
Schedule Q, B, and H of the Contract Document, applicable quality system
standards (ISO-9001or equivalent Industry Standards), and Mandatory Saudi
Aramco Engineering Requirements as applicable.

8.5.2 Prepare a list of findings for his area of responsibility and forward them to the
Lead Assessor to prepare a list of findings for his area of responsibility.
Revision Summary

09 May, 2016 Minor revision.

23 November 2014 Minor revision to reflect the new internal Inspection Department re-organization.

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Document Responsibility: Project Quality Standards Committee 00SAIP13
Issue Date: May 9th, 2016 Projects Quality Assessments
Next Planned Update: TBD

Appendix I Corrective Action Request

Saudi Aramco Inspection Department

CORRECTIVE ACTION REQUEST
8.5-F-01-ID (12/12)

Organization: Assessment Report Number:

Location: CAR Number:
Process Audited: Assessment Dates:
QA Manger / QMR: Assessment Team Leader:
Nonconformity:

Requirement:

Agreed Implementation Date:

Issued by: Date: Signature:

Acknowledged by: Date: Signature:

PROPOSED ACTIONS
Correction:

Root Cause:

Action to prevent re-occurrence:

Actual Implementation Date:

QA Manger / QMR: Date: Signature:

FOLLOW-UP ACTIONS
Are Actions taken Yes No
Acceptable?

Verified by: Date: Signature:

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Document Responsibility: Project Quality Standards Committee 00SAIP13
Issue Date: May 9th, 2016 Projects Quality Assessments
Next Planned Update: TBD

Appendix II
Definition of Audit Findings

Category of Audit Findings

Non Conformance:

a. Major Non Conformance: Specific system requirement not document and implemented,
multiple non-fulfillment of specific requirements, repeated non-conformities, total
breakdown that leads the quality and integrity of the Inspection services at risk.

b. Minor Non Conformance: Isolated cases and non-fulfillment of certain requirements,

odd deviation from the requirements that reduce the quality of Inspection Services and
create risk in fulfilment of its intended purpose.

Observation: A statement of fact made during the assessment, related to weak practices, or
in which not enough evidences found to rises to the level of nonconformity, but if not
corrected, may leads to become unidentified risk.

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 Document Responsibility: Project Quality Standards Committee 00SAIP13
Issue Date: May 9th, 2016 Projects Quality Assessments
Next Planned Update: TBD

Appendix III Projects Quality Assessment Flow Chart

Schedule Project Assessments by

Assessment Group Leader

Communicate assessment date to PQM

and request assessment documentations
by Assessment Team Leader

Send technical
documentation
Receive projects documentations by
Assessment Team Leader to Technical
Assessor

Review QMS project documentations by

Assessment Team Leader
Review project
technical
documentation
Conduct assessment by Assessment Team
by Technical
Assessor

Evaluation
NO
Satisfactory

Record Assessment
report and create SAP Yes
F6 notification with
Corrective Actions
Request Complete SAP notification

Send note

Assessment completed

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Document Responsibility: Project Quality Standards Committee 00SAIP13
Issue Date: May 9th, 2016 Projects Quality Assessments
Next Planned Update: TBD

Appendix IV CAR Closure Flow Chart

Uploaded CARs in the SAP through F6

notification by PQM

Receive / Review CARs by

Assessment Team Leader

Follow up
assessment YES
Create another task
required?
in the SAP for
Corrective Actions
Request
NO Conduct follows up
assessment by
Assessment Team
Leader
NO CARs
Satisfactory?

YES

Complete SAP notification and send note

CARs completed and closed

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