COMP2-SPM-QM-PRC-00003

NFPS Offshore Compression Complexes Project COMP2

COMPANY Contract No.: LTC/C/NFP/5128/20

CONTRACTOR Project No.: 033734

Document Title

: PROJECT QUALITY AUDITS PROCEDURE

COMPANY Document No.

: COMP2-SPM-QM-PRC-00003

Saipem Document No.

: 033734-Z-Z-00-SPM-QA-P-10004

Discipline

: QUALITY MANAGEMENT

Document Type

: PROCEDURE

Document Category/Class

: 1

Document Classification

: INTERNAL

Digitally signed by Muhsin Perincheeri DN: cn=Muhsin Perincheeri, o=Saipem S.p.A, ou=Quality, email=muhsin.perincheeri@saipe m.com, c=QA Date: 2023.03.23 09:38:31 +03’00’

sergio

Digitally signed by sergio DN: cn=sergio, o=Saipem, ou=Quality Dept., email=sergio.mezzotero @saipem.com, c=QA Date: 2023.03.23 14:58:55 +08’00’

23-MAR-2023

Approved for Construction

Muhsin Perincheeri Sergio Mezzotero

Ennore Paoli

09-FEB-2023

Issued for Approval

Muhsin Perincheeri Sergio Mezzotero

Ennore Paoli

14-DEC-2022

Issued for Review

Sergio Mezzotero Sergio Mezzotero

Ennore Paoli

REV.

DATE

DESCRIPTION OF REVISION

PREPARED BY

CHECKED BY

APPROVED BY

Saipem S.p.A.

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REVISION HISTORY

Revision

Date of Revision

Revision Description

02-DEC-2022

14-DEC-2022

09-FEB-2023

23-MAR-2023

Issued for Inter-Discipline Check

Issued for Review

Issued for Approval

Approved for Construction

HOLDS LIST

Hold No

Hold Description

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TABLE OF CONTENTS

INTRODUCTION …5

1.1 PROJECT OBJECTIVE …5 1.2 PROJECT SCOPE …5

DEFINITIONS AND ABBREVIATIONS …7

2.1 DEFINITIONS …7 2.2 ABBREVIATIONS …8

REFERENCE, RULES, CODES AND STANDARDS …8

3.1 COMPANY DOCUMENTS …8 3.2 PROJECT DOCUMENTS …9 INDUSTRY STANDARDS …9 3.3

PURPOSE …9

AREA OF APPLICATION … 10

RESPONSIBILITIES … 10

6.1 PROJECT DIRECTOR (PD)/PROJECT MANAGER (PM) … 10 6.2 PROJECT QUALITY MANAGER (PQM)/DEPUTY PROJECT QUALITY MANAGER (DPQM) … 11 6.3 LEAD AUDITOR … 11 6.4 AUDIT TEAM … 11 6.5 AUDITEE … 11

AUDIT PROCEDURE … 11

7.1 PROJECT QUALITY AUDIT PROGRAM (SCHEDULE) … 12 7.2 AUDIT SCOPE … 12 7.3 AUDIT TEAM … 12 7.4 PLANNING … 13

7.4.1 Preparation … 13

7.4.2 Checklist … 13

7.4.3 Notification and Agenda … 14 7.5 PERFORMING AUDIT … 14

7.5.1 Opening Meeting … 14

7.5.2 Audit Process … 14

7.5.3 Evaluating of Findings … 15

7.5.4 Closing Meeting … 15

PROJECT QUALITY AUDIT REPORT … 16

8.1 PREPARATION OF REPORT … 16 8.2 DISTRIBUTION OF REPORT … 16 8.3 AUDIT REPORT NUMBERING SYSTEM … 17

FINDINGS NUMBERING SYSTEM … 17

AUDIT FINDING MONITORING … 17

AUDIT FOLLOW UP AND CLOSE OUT … 18

LIST OF FORMS … 18

ANNEXURES … 19

ANNEXURE A ANNEXURE B ANNEXURE C

PROJECT AUDIT PROGRAMSME … 19 NOTIFICATION OF QUALITY AUDIT … 23 AUDIT ATTENDANCE SHEET … 25

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ANNEXURE D ANNEXURE E ANNEXURE F ANNEXURE G ANNEXURE H

AUDIT REPORT … 26 AUDIT NON-CONFORMITY REPORT … 28 AUDIT OBSERVATION … 29 SUGGESTION FOR IMPROVEMENT (SFI) … 30 AUDITS FINDING REGISTER … 31

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INTRODUCTION

The North Field is the world’s largest natural gas field and accounts for nearly all of the state of Qatar’s gas production. The reservoir pressure in the North Field has been declining due to continuous production since the early 1990s. The principal objective of the NFPS Project is to sustain the plateau from existing QG South Operation (RL Dry Gas, RGE Wet gas) and existing QG North Operation (QG1 & QG2) production areas by implementing an integrated and optimum investment program consisting of subsurface development, pressure drop reduction steps and compression. Refer to the figure below for a schematic of the North Field.

Qatargas Operating Company Limited is leading the development of the North Field Production Sustainability (NFPS) Project.

1.1 Project Objective

The objective of this Project includes:

• Achieve standards of global excellence in Safety, Health, Environment, Security and Quality

performance.

• Sustain the Qatargas North Field Production Plateau by installing new Compression Complex facilities CP6S & CP7S in QG south with integration to the existing facilities under Investment #3 program.

• Facility development shall be safe, high quality, reliable, maintainable, accessible,

operable, and efficient throughout their required life.

1.2 Project Scope

The Project Scope includes detailed engineering, procurement, construction, transportation & installation, hook-up and commissioning, tie-in to EXISTING PROPERTY and provide support for start-up activities of the following facilities and provisions for future development. The WORK shall be following the specified regulations, codes, specifications, and standards, achieves the specified performance, and is safe and fit‐for‐purpose in all respects.

Offshore

CP6S and CP7S Compression Complexes that are part of QG-S RGE facilities as follows:

• CP6S Compression Complex • Compression Platform CP6S, Living Quarters LQ6S, Flare FL6S • Bridges BR6S-2, BR6S-3, BR6S-4, BR6S-5 • Bridge linked Tie-in to RP6S

Production from existing wellheads (WHP6S & WHP10S) and new wellhead (WHP14S) are routed via riser platform RP6S to compression platform CP6S to boost pressure and export to onshore via two export lines through the existing WHP6S pipeline and a new 38” carbon steel looping trunk line from RP6S (installed by EPCOL). CP6S is bridge-linked to RP6S.

• CP7S Compression Complex • Compression Platform CP7S, Living Quarters LQ7S, Flare FL7S • Bridges BR7S-2, BR7S-3, BR7S-4, BR7S-5 • Bridge linked Tie-in to RP7S

CP7S shall receive production from existing wellheads (WHP5S & WHP7S) and new wellhead (WHP13S). There is only one export line for CP7S through the existing export pipeline from WHP7S. CP7S is bridge-linked to RP7S.

RGA Complex Destressing

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Migration of the Electrical power source, Telecoms, Instrumentation and Control systems from WHPs and RHPs hosted by RGA to the respective Compression Complexes listed below:

• WHP6S, WHP10S, WHP14S, RP6S and RP10S to CP6S Compression Complex • WHP5S, WHP7S, WHP13S and RP7S to CP7S Compression Complex

Destressing of Telecoms, Instrumentation and Control system in RGA Complex Control Room, which would include decommissioning and removal of telecom system devices and equipment that would no longer be required post migration and destressing activity.

Onshore

An Onshore Collaborative Center (OCC) will be built under EPC-9, which will enable onshore based engineering teams to conduct full engineering surveillance of all the offshore facilities. The OCC Building will be located in Ras Laffan Industrial City (RLIC) within the Qatar Gas South Plot. MICC & Telecommunication, ELICS related scope will be performed in the OCC building.

Figure 1.2.1: NFPS Compression Project COMP2 Scope

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DEFINITIONS AND ABBREVIATIONS

2.1 Definitions

Definition

Description

Audit

Systematic, independent, and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which audit criteria are fulfilled.

Audit criteria

Set of policies, procedures or requirements used as a reference against which the audit evidence is compared.

Audit evidence

Records, statements of fact or other information which are relevant to the audit criteria and verifiable.

Audit findings

Results of the evaluation of the collected audit evidence against audit criteria.

Auditor

Person responsible coordination.

to conduct audit activities under Lead Auditor

Company

Qatar Gas Operating Company Limited

Contractor

Saipem S.p.A.

External audit

Audit carried out by CONTRACTOR against Vendors and Subcontractors providing critical items / service.

Internal audit

Audit to be carried out by Contractors within Contractor’s organization.

IPR

Independent Project REVIEWS to be conducted periodically by COMPANY

Lead auditor

Person, nominated by CONTRACTOR Project Quality Manager, possessing the experience and training necessary to coordinate and manage an audit autonomously or with other auditors.

PQM or DPQM may be lead auditor for critical processes to be audited.

May

Verbal form used to indicate a course of action permissible within the limits of the document.

Non-conformity The non-fulfilment of a specified requirement

Observation

Request for an action of a problem or signals a possible problem for which further information is required and it probably might lead to a failure of the system if any remedial action is not taken.

Process

Product

Project

Set of inter-related resources and activities which transform inputs into outputs.

Result of activities or processes.

NFPS OFFSHORE COMPRESSION COMPLEXES PROJECT - COMP2.

Quality management system (QMS)

All activities of the overall management function that determine the quality policy, objectives, and responsibilities, and implement them by means such as quality planning, quality control, quality assurance and quality improvement with CONTRACTOR’s Quality System

Quality records

Any document which is identified as to be retained after the end of the project and a requirement of ISO 9001

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Root cause analysis

A set of analyzing and problem-solving techniques to identify reason for the nonconformity

Shall

Should

Verbal form used to indicate requirements strictly to be followed to conform to the document.

Verbal form used to indicate that among several possibilities one is recommended as particularly suitable, without mentioning or excluding others, or that a certain course of action is preferred but not necessarily required.

Subcontractor(s)

A party who is providing subcontracted services specified and ordered by CONTRACTOR.

Suggestion for improvement

Supplier

Opportunities for improvement for the auditee.

A person, company, or group that is the recipient of a “direct” purchase order who sells materials and equipment that are manufactured, fabricated, assembled, and / or packaged for COMPANY through CONTRACTOR.

Supply / Work

The provision of goods / the performance of services, or both.

Vendor

CONTRACTOR’s SUPPLIER(s) of CONTRACTOR procured item(s) - Synonym of SUPPLIER

2.2 Abbreviations

Code

Definition

DPQM OBS NC NCR PD PEP PM PQM PQP QA/QC QMS SFI

Deputy Project Quality Manager Audit Observation Non-Conformity Non-Conformity Report Project Director Project Execution Plan Project Manager Project Quality Manager Project Quality Plan Quality Assurance / Quality Control Quality Management System Suggestion for Improvement

REFERENCE, RULES, CODES AND STANDARDS

3.1 Company Documents

S. No

Document Number

Title

Exhibit 5 FINAL

Exhibit 6 FINAL

PROJECT Instructions

Scope of Work

200-20-QM-PRC-00098

Quality Assurance Requirements for SUPPLIERs

200-20-QM-PRC-00099

Quality Control Requirements for SUPPLIERs

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COMP-QG-QM-PLN-00002

Procurement Criticality Matrix

COMP-QG-QM-PLN-00003

Procurement Quality Surveillance Plan

PRJ-PJL-PRC-073

Major Project Quality Plan

PRJ-000-PRC-008

Lessons Learned

3.2 Project Documents

S. No

Document Number

Title

COMP2-SPM-QM-SPC-00001

Quality Requirements for Subcontractors

COMP2-SPM-QM-SPC-00002

Quality Requirements for Suppliers

COMP2-SPM-QM-PRC-00001

Lesson Learned Procedure

COMP2-SPM-QM-PLN-00001

Project Quality Plan

COMP2-SPM-QM-PLN-00002

Project Audits Program

COMP2-SPM-QM-PRC-00002

Project Non-Conformity Management Procedure

3.3

Industry Standards

S. No

Document Number

Title

ISO 9000:2015

“Quality Management Systems - Fundamentals and Vocabulary”

ISO 9001:2015

“Quality Management Systems – Requirements”

ISO 10005:2018

ISO 17025:2017

ISO 10006:2017

ISO 10005:2018

Quality Management Systems - Guidelines for Quality Plans. General Requirements for the competence of testing and calibration laboratories Quality Management Systems – Guidelines for Quality Management in Projects “Quality Management – Guidelines for Quality Plans”

PURPOSE

This document defines the work process, roles, responsibilities, and tools for Internal and External Project Quality Audit activities with the aim to assess the implementation of the quality management system and to determine compliance with project management commitments. It also provides assurance to COMPANY that the quality management system is operating as planned and in line with contractual, statutory & regulatory requirements and applicable international standards.

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Detail of audits are:

Project Internal Quality Audit

Project Internal Quality Audits are conducted by CONTRACTOR at planned intervals and documented to verify that the Project Quality Management System is:

• In compliance with the applicable requirements of ISO 9001:2015 Standard. • In compliance with the applicable Statutory & Regulatory requirements and Project specific

contractual requirements.

• Effectively and adequately implemented and updated to achieve customer satisfaction &

continual improvement.

Project External Quality Audit

Project External Quality Audits are conducted on selected Suppliers, Vendors and Sub- Contractors based on criticality of their activities/scope of work at planned intervals and documented to verify the following item:

• Scope of supply/services of Suppliers, Vendors and Sub-Contractors are in line with

requirement of Contract/Purchase Order requirements.

• Execution of activities being performed by Suppliers, Vendors and Sub-Contractor meeting the applicable Statutory & Regulatory requirements and Project specific contractual requirements.

• Quality Management System (QMS) of Suppliers, Vendors and Sub-Contractor complies with contractual agreements, International standards, and applicable Statutory and Regulatory requirements.

• QMS of Sub-Contractor/Vendors/Sub-Suppliers is effectively and adequately implemented

and updated to achieve continual improvement.

AREA OF APPLICATION

This procedure applies to the internal and external audits for activities of CONTRACTOR and their SUBCONTRACTOR, SUPPLIERS(VENDORS) for the NFPS OFFSHORE COMPRESSION COMPLEXES PROJECT COMP2.

All requirements prescribed within this document shall be flowed down the supply chain by the SUBCONTRACTOR to their TIER-SUBCONTRACTORS/SUB-SUPPLIERs for on the base of their relevant Scope of Supply and Scope of Work.

This Procedure shall be submitted to COMPANY for review and APPROVAL within sixty (60) days of EFFECTIVE DATE.

RESPONSIBILITIES

The responsibilities listed below are specific to the implementation of this procedure.

6.1 Project Director (PD)/Project Manager (PM)

The Project Management shall be responsible to:

• Support the Project Quality Manager in the establishment of the Quality Audit Schedule. • Approve the Project Quality Audit Program which identifies the Project Internal and External audits and also to provide adequate resources to ensure that the Project audits are carried out as planned.

• Ensure that audit findings are promptly and effectively actioned by the auditees and that

appropriate corrections are done, and corrective actions are taken

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6.2 Project Quality Manager (PQM)/Deputy Project Quality Manager (DPQM)

Project Quality Management shall be responsible to:

• Prepare and review of Project Audit Program for both Internal and External Quality Audits. • Ensure implementation of the Project internal and External Quality Audits as per

established Project Audit Program.

• Provision of support and necessary documentation to the Auditors • Inform COMPANY about the planned audits • Review and Approve the Project Quality Audit Reports. • Present the result of the audits to COMPANY. • Analyze findings of Project Quality Audits and input/present the analysis results during the

Project Management Reviews.

• Verification that the required actions to NC and OBS have been properly implemented,

documented and been effective through follow up Audits or desk review.

6.3 Lead Auditor

The Lead Auditor is responsible for:

• To select appropriate audit team members with the support of technical specialists

(whenever required) in the area(s) to be audited and brief the Audit Team

• Liaise directly with the auditee(s) to arrange the Audit and to issue the Audit notification and

agenda accordingly

• Review working documents to ensure adequacy • Establishing detailed audit checklists • Advising the participants • Chairing/participating in the opening and closing meetings • Conducting the audit • Evaluating responses • Issue and Review the Audit Report with the contribution of the audit team • In cooperation with PQM make final decision regarding the categorization of audit findings; • Preparing and issuing the audit reports and Non-Conformity Reports (if any) • Distribute the Audit Report; • Follow up the audit if necessary • Report any major obstacles encountered during the audit to PQM/PM/DPD/PD

PQM/DPQM may be Lead auditors for critical processes to be audited.

6.4 Audit Team

• Cooperate with and support the Lead Auditor in the preparation of the audit; • Review all relevant information related to their task assignment; • Prepare any work documents (including check list) necessary to carry out their tasks; • Conduct the audit; • Report deficiencies and findings to the Lead Auditor.

6.5 Auditee

The Auditee shall cooperate with the Audit planning processes, auditing and closure of audit

AUDIT PROCEDURE

This below section identifies the process for the planning, preparation, execution, writing of reports, recording of audits, and execution of follow-up activities.

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7.1 Project Quality Audit Program (Schedule)

CONTRACTOR shall develop an Audit Program that shall:

• effectively monitors the PROJECT performances to ensure compliance with Contract specifications, Quality Plan and associated procedures, and Technical Specifications. • be covering both internal and external (Sub-contractors and key VENDORS) project audits relevant

ISO 19011:2018 and

the

in accordance with to be performed CONTRACTOR’s/COMPANY requirements

• ensure that all critical aspects of the Project are evaluated. • ensure that all project activities are audited at minimum six monthly intervals. • Include the execution of a minimum quality compliance audits at the 30%, 60% and 90% the detailed design, procurement, construction, and

completion stages MC/commissioning phases based on their approved QMS, PEP and PQP

for

• Audit performance shall be monitored and reported as a Key Performance Indicator (KPI), all the audit related KPIs are identified in Project Key performance Indicators, refer COMP2- SPM-QM-PLN-00004 Project Quality Key Performance Indicator’s (KPI’s) Appendix 1, Item 1.1.

Audit program shall be developed at the beginning of the Project by the PQM, considering the following (non-exhaustive list):

• applicable Contractual Requirements • Assigned Procurement Criticality Rating • activities / products are on the critical path of Project Schedule • Scope of Work • the status and importance of the processes and areas to be audited • results of previous audits • outcome of risk analysis • review of lessons learnt • activities that has repeated deficiencies reported.

The Project Quality Manager shall develop the audit program with due consultation with Project Management Team resulting in one master audit schedule.

PD/DPD/PM verifies and approves the Project QMS Audit Schedule.

Project Audit Program shall be submitted to COMPANY for Review, comments, and APPROVAL within sixty (60) days of EFFECTIVE DATE

The audit program is a live document which may require revisit from time to time during project phase and will be updated monthly.

7.2 Audit Scope

The nominated lead auditor shall determine the scope of the audit based on pre-assessment questionnaires (where applicable), previous audit findings, departmental performance, management recommendations and criticality of the function being performed.

Where possible, audits shall consist of Desktop review, field interviews and performance inspections.

7.3 Audit Team

The audit team and Lead Auditor shall be selected by PQM based on the scope of the audit. The team shall include competent/expert personnel in the relevant processes and systems to be audited to fully assess within the audit scope.

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In case of critical processes to be audited, PQM/DPQM may act as appointed lead auditors to optimize the audit performances using the knowledge and skills acquired in their experience.

All members of the Audit Team shall have no direct responsibility in the audited process/area but must be competent to audit the relevant functions. As minimum, the Audit Team Leader/Audit Team Member shall have undergone a Certified ISO 9001:2015 Internal Auditor Training Course. Audit Team Leaders should have knowledge and skills in audit leadership to facilitate the efficient and effective conduct of the audit.

COMPANY shall be given the opportunity to be present in the audit on part- or full-time basis on their own discretion.

7.4 Planning

In planning an audit, the Lead Auditor shall first designate a unique number to be used for all references. The number shall be prefixed with the Project identifier then followed with a sequential number.

The Lead Auditor reviews the available information and prepares a detailed plan of the audit activities and sets down its criteria. The Lead Auditor shall be aware of:

• Geographical location. • Organizational structure. • Capabilities. • Key processes and equipment. • Status of the Quality Management Systems and its accreditation. • Legislation (acts and regulations). • Contract Conditions. • Project Specific Procedures & Technical Specification; and • Applicable Codes and Standards

7.4.1 Preparation

Preparation and scheduling of audits shall adopt a risk-based approach. PQM shall convene risk session with Project members to identify those areas where non-compliance will have a potential impact to the project.

The Lead Auditor shall collate and review results of previous audits, qualification questionnaires, performance reports, plans and procedures relevant to the defined audit scope.

A review shall be conducted on available information to establish specific requirements of each process, authorities, responsibilities, and duties of specific personnel.

7.4.2 Checklist

Based on information established during the desktop review, a checklist containing list of topics may be developed. The checklist will be used as a broader guideline for lead auditor/auditor but the actual questionnaire may be adjusted to suite the overall scope of the audit. It shall not limit the line of questioning or restrict investigation.

Appropriate procedures representing the function or activity under review shall act as the instrument may be referred in the development of the checklist.

Questions shall nominate specific respondents and may be duplicated for this reason. The checklist shall be grouped and ordered according to departments or personnel. An estimation of time for each question and order of investigations will form the basis for scheduling dialogues. Auditors may expand on the checklist at any time.

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7.4.3 Notification and Agenda

The Lead Auditor in consultation with department or organization being audited shall determine a mutually acceptable audit notification.

The notification shall specify:

• Purpose and scope of the Audit. • Scheduled dates & times. • Venue for the audit. • Personnel requested for attendance at meetings and interviews. • Time/duration allocation for opening/closing meetings and individual interviews. • Identification of the Audit Team; and • List of deliverables that will be audited

The Audit Notification Distribution shall as a minimum include:

• Auditees; • PM; • Technical / Discipline Managers; • COMPANY.

Once the audit plan for a specific audit has been determined, the Lead Auditor shall formally present a Notification to the Auditee and copy to the COMPANY for information.

CONTRACTOR shall forward all audit notifications and plan to COMPANY enough time before performing these audits (at least 14 working days before the audit date). COMPANY shall reserve the right to participate in these audits as an auditor or as an active observer.

Unplanned audits, due to significant failures and problems, may be notified at noticeably short notice according to the magnitude and criticality of the problem.

7.5 Performing Audit

The systematic methodology steps and protocol for conducting audits are described as follows:

7.5.1 Opening Meeting

An opening meeting shall be conducted attended by the auditee(s) and the auditors, during which the Audit Team will be introduced and the Audit scope, criteria, and methodology (e.g., random sample checks, personnel interviewed etc.) explained.

During the opening meeting, the Audit agenda should be presented in order to get confirmation of availability of relevant auditee(s).

The audit shall be conducted in a professional way assessing the conformity of items / processes to defined requirements through the objective evidence.

The auditors shall be independent from the area/process to be audited.

Where possible, any findings identified during the audit shall be discussed / agreed between the auditors and the auditee(s) during the course of the audit.

The auditor and auditee shall confirm the agreed action before completing the audit and register it.

7.5.2 Audit Process

The Lead Auditor coordinates the actions of its team members by allocating areas of responsibility.

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Each auditor will utilize their skills of investigation to evaluate response to questioning and activities observed.

The audit will follow the agreed agenda as far as is practical. However, this will not restrict the auditors from pursuing an investigation, where indications suggest the possibility of a noncompliance.

The process owner shall be advised of the general description of information collected and any observations noted (observations may be favorable and/or un-favorable), prior to moving on.

The auditor shall document observations, responses and objective evidence sighted, for evaluation prior to the closing meeting.

7.5.3 Evaluating of Findings

On completion of the audit process, the audit team will meet and compare notes. The audit team will discuss and assess the adequacy of the systems being audited. Where a discrepancy to a governing requirement is identified, an observation shall be listed. In the event conflicting statements are apparent, an immediate follow up may be instigated to resolve the issue.

Alternatively, the discrepancy will be identified as an observation.

The Lead Auditor shall discuss the listed observations with the audit team and evaluate them against system requirements and criticality.

All audit findings shall be recorded in Audit Report, which will be agreed by Auditee representative during audit close out and report shall be signed off by Lead auditor.

The audit findings can be classified into the following three (3) categories:

Non-Conformity Report (NCR)

• Audit NCR is a Non-fulfilment of a specified requirement. A deficiency in characteristic, documentation, procedure, or process which renders the quality of a service or product unacceptable for indeterminate.

Observation (OBS)

• Inadequacies of a potential nonconformity for which further information are required and it

probably might lead to a failure of the system if no action is taken.

• OBS will be recorded and followed up through Audit Observation, reference COMP2-SPM-

QM-FRM-00016.

Suggestion For Improvement (SFI)

• Opportunity made with the aim of continual improvement. • All the SFIs will be recorded in Audit Reports and audit findings register will be maintained

for the same.

7.5.4 Closing Meeting

A closing meeting shall be convened by the Lead Auditor in accordance with the agreed agenda. The attendance at this meeting shall be recorded. A summary of the meeting and resultant actions shall be recorded in the audit report.

The meeting shall emphasize that, the audit is not completed until the meeting closes. Where objective evidence(s) can be produced during the meeting to dispute an observation or NCR the issue shall be negated. In the event that the recipient refuses to acknowledge a NCR, the issue shall be brought to higher level.

The meeting shall summarize and explain any Observations, SFIs or NCRs raised.

NCRs, OBS and SFI must be agreed and signed by auditee before the completion of the audit session.

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The Lead Auditor shall advise attendees of the intended issue date of the formal audit report. A brief summary of the contents will be stated during the meeting which will highlight the positive and negative attributes encountered during the execution of the audit. The need for any follow-up actions or audits will be stated during closing meeting and recorded in the audit report.

Often a preliminary list of findings from the checklists should be recorded and presented by the audit team at the closing meeting. This list is used to summarize all the key events, observations and findings and also clarifies the focus for improvement activities by the organization under audit and as an interim action list that can be utilized prior to the receipt of the formal audit report. When the closing meeting has been concluded, audit team leader/members shall thank the Auditees, Co-auditors, Observers and depart promptly.

Attendee(s) of audit closing meeting shall be documented and included in the Audit Report.

PROJECT QUALITY AUDIT REPORT

8.1 Preparation of Report

On completion of the closing meeting Lead Auditor will issue

Lead Auditor with assistance of the audit team members, will issue audit report within maximum three (3) working days.

The report shall identify the objectives and methodology of the audit and summarize any findings.

The report shall detail positive and/or negative findings, Non-Conformity Reports, observations and may offer recommendations as SFIs – suggestion for improvements including follow up action.

The report shall not introduce any information or concepts that were not identified and/or discussed during the closing meeting. The report shall be supported by documentation generated during each phase of the audit. The Audit report consist of:

• Summary. • Opening meeting attendance. • Closing meeting attendance; and • Detailed Findings • Conclusion

The Audit Report shall be reviewed and approved by PQM prior to its issuance. Non-Conformity Reports if any shall be appended to the Audit Report.

8.2 Distribution of Report

Distribution of audit report will then be in accordance with a list identified on the report, consisting of attendees, project management and CONTRACTOR Representative. CONTRACTOR shall provide copies of Project audit reports, Non-Conformity Reports issued, together with their follow up and close out reports to the COMPANY. A record of all audits shall be maintained by the Project Quality Engineer.

CONTRACTOR shall submit to COMPANY within 5 Days of audit completion audits reports, follow up audits’ reports, proposed corrective and preventive actions to close the audit findings, concerns and observations.

The Audit report will be distributed to Auditees, CONTRACTOR PM, Quality Team, and COMPANY.

Should an external audit, identify findings, having contractual implications, the Lead Auditor shall ensure that the appropriate function(s) is (are) informed accordingly and references to the findings are included in the associated documentation.

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8.3 Audit Report Numbering System

Audit report numbering system shall be followed for all the audit reports which shall be issued by Lead Auditor after performing Project Quality Audit. This numbering structure shall be accordance to the below table.

The numbering structure is as follows:

Table 1 – Audit Report Numbering Structure

Project Code

Project Type & Discipline Group

Area Code

Document Type

Sequences Number

FINDINGS NUMBERING SYSTEM

The numbering structure for findings such as NCR, OBS and SFI are as follows:

Table 2 – Audit Findings Numbering Structure

Project Code

Project Type & Discipline Group

Area Code

Document Type

Finding Type Code

Sequences Number

Table 3 – Finding Type Code

Findings Type

Findings Type Code

Audit Non-Conformity Report

Observation

Suggestion for Improvement

NCR

OBS

SFI

10 AUDIT FINDING MONITORING

Audit Findings such as Observations shall be monitored for actions by the audit team respectively, following the target completion date defined. Audit team shall follow-up closely with the process owner(s), in order to ensure that the issued findings are addressed with necessary action taken within the required period without undue delay.

Management of the NCR process including any outstanding NCR will be identified at management review meetings.

Once a close-out has occurred, the responsible party shall complete the NCR and return a copy to the lead auditor who shall acknowledge the method of close-out and make comment in the Audit Findings Register. A record of all close-outs shall be maintained by the Project Quality Engineer.

The method of verification and acceptability of the close-out shall be determined by the lead auditor dependent on criticality noted on the NCR. A review of the Audit Findings register and comments may be presented at Project coordination meetings and management review meetings.

All audits’ findings and concerns shall be addressed and closed in a timely manner and shall be reported weekly and monthly by CONTRACTOR to COMPANY in formal reports.

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11 AUDIT FOLLOW UP AND CLOSE OUT

A follow-up (if required) and close-out shall be made to verify the status and implementation of the actions defined in response to NCR and OBS that originated from Internal and External Quality Audits performed. For External Quality Audit follow-up (if required) and closed-out can be performed through communication with Suppliers/Vendors/Sub-Contractors through e-mail to get and verify the evidence sent by them. In case the finding is related to critical equipment/service or impact to project schedule, a close-out visit may be performed for verification.

Whenever possible, the follow-up (if required) and close-out shall be performed by the same Audit Team, with the involvement of the Process Owner. In the event that the same Audit Team is not available, this responsibility will be transferred to the PQM/DPQM to decide the appropriate team for carrying out the same.

The follow-up (if required) and close-out shall be done within the target completion date as agreed.

Previous reports completed/closed Non Conformity Reports and Observations shall be made available for subsequent audits to confirm satisfactory rectification.

When a NCR is raised, the Lead Auditor shall complete the NCR form detailing the detected deficiency/nonconformity against applicable requirements.

The auditee shall identify the correction to be put in place in order to rectify the process and the required time; correction and scheduled completion date shall be agreed by Lead Auditor.

Appropriate NCR follow-up is carried out by the Lead Auditor in order to verify, with the support of objective evidence, the implementation of Corrections and Recommended actions within agreed completion date. Extension of time to implement agreed correction may be extended if duly justified and agreed with Lead Auditor, Technical Counterpart and Company, as applicable. Once the Contractor (and Company, when required) is satisfied with action implemented, the NCR can be closed (duly supported by required objective evidence).

OBS may be upgraded to NCR in future audit if no actions were found taken to correct / improve the detected inadequacies.

SFI are suggestion to the auditee to initiate changes for continual improvement. The auditee(s) may decide to take further actions without submitting official response to Contractor.

Recurrence of same findings on products and/or lack in the process / area audited could lead to issuance of a Non Conformity Report and further managed according to the relevant project procedure.

CONTRACTOR shall develop and maintain an Audit Findings Register available for COMPANY review.

12 LIST OF FORMS

Below are the list of Forms to be used in Project related to this procedure.

SL No Form No.

Form Title

COMP2-SPM-QM-FRM-00011 Rev-00

Project Audit Programme

COMP2-SPM-QM-FRM-00012 Rev-00

Notification of Quality Audit

COMP2-SPM-QM-FRM-00013 Rev-00

Audit Attendance Sheet

COMP2-SPM-QM-FRM-00014 Rev-00

Audit Report

COMP2-SPM-QM-FRM-00015 Rev-00

Audit Non-Conformity Report

COMP2-SPM-QM-FRM-00016 Rev-00

Audit Observation

COMP2-SPM-QM-FRM-00017 Rev-00

Suggestion For Improvement

COMP2-SPM-QM-FRM-00018 Rev-00

Audit Findings Register

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13 ANNEXURES

Annexure A Project Audit Program

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Annexure B Notification of Quality Audit

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Annexure C Audit Attendance Sheet

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Annexure D Audit Report

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Annexure E Audit Non-Conformity Report

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Annexure F Audit Observation

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Annexure G Suggestion For Improvement (SFI)

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Annexure H Audits Finding Register

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Project: Q-21699 - Saipem COMP2 Folder: RFQ Files

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