INTRODUCTION OF

PROJECT QUALITY MANAGEMENT

in Oil and Gas Industry

Public Lecture
Institut Sains Dan Teknologi Nasional
Jakarta
22 June 2013

Ina Khanifah Hakim ST.MT

 References
1. PMBOK Guide - 4th Edition
2. ISO 21500
3. ISO 9001 : 2008 – Quality Management
Requirements.
4. API Q1, 8th edition – Specification for Quality Program
for the Petroleum, Petrochemical, and Natural Gas
Industry.
5. ISO 10006 : 2003 – Guideline for Quality Management
in Projects
6. ISO 10005 : 2005 – Quality Management System –
Guideline For Quality Plans
 Quality is….
• Fit For Purpose
• Meeting Customer Requirements
• Zero Defect
• Etc …
 Why Quality important to ..
CONTRACOR
OWNER
a. Reduced cost
a. Requirements are met
b. Improved productivity
b. Defect free products
c. Fewer problems
c. On-Time deliveries
d. Avoids product liability
d. Reliable service
claims
 Consequences of Lack of Quality ..
OWNER
a. Requirements are not
met
b. Schedule delay CONSTACTOR
c. Project cost increased a. Increased cost due to
inefficient performance
b. Reputation Suffer
c. Product liability claims
 Quality Life Cycle
Strategic Initiatives
Work Planning
for Prevention

Revise
Prevention
Planning Implement,
Plan &
Perform

Awareness Training - People IMS

Change Process - Process
Lessons Learned - Project Continuous
New Materials/Equipment -
Resources Improvement Measure
Effectiveness
COQ (Project)
+
KPI
(Functional
Process)
+
Determine Audits
Action +
Performance
Evaluate Appraisals
Strengths
Weaknesses &
Risks
 Commitment of Management
Quality is effective only when it is the intention
of Corporate Policy and Procedures
POLICY IMS (INFRASTRUCTURE)

EXECUTIVE MANAGEMENT COMMUNICATION MEASURE OF

COMMITMENT BY EXAMPLE EFFECTIVENESS

ACCOUNTABILITY QUALITY
AWARENESS
TRAINING

Effectiveness is a measure of the outcome of the cause


Input
1. Scope baseline
2. Stakeholder register
3. Cost performance baseline
4. Schedule baseline
5. Risk Register
6. Enterprise environmental
factor
7. Organizational process assets
Plan Quality
Tool and Techniques
1. Cost-benefit analysis Output
2. Cost of quality
1. Quality management plan
3. Control chart
2. Quality metric
4. Benchmarking
3. Quality checklists
5. Design of experiments
4. Process improvements plan
6. Statistical sampling
5. Project document updates
7. Flow charting
8. Proprietary quality
management
9. Additional quality planning
tools
 Project Quality Plan
1. Scope of the Plan
2. Measurable Quality Objectives
3. Management Responsibilities
4. Documentation Management (including records)
5. Resources
6. Specific Requirements (project)
7. Communication
8. Design development, validation and verification
9. Procurement
10. Fabrication / Construction (Production)
11. Identification and Traceability
12. Storage and Handling
13. Non Conforming Product
14. Monitoring and Measurements
15. Inspection And Testing Equipment
16. Audit
Project Quality Organization (typical)
Project Quality
Manager (PQM)

Secretary

QC Supervisor /
QA Engineer Certification
Site QC

Discipline
Inspectors
 Quality Metric
How the Quality metric measurement drive the
improvement ?
1. Measure the efficiency and effectiveness of a
work process.
2. Use to track improving or deteriorating TRENDS.
3. Use to identify where a problem lies.
4. Use to set improvement TARGETS and GOALS.
 Quality Metric measurement
Sum Deliverables
KPI 4 (a) - Shop Drawing Zero Defect - Structural Sum Errors
(M 10) Data Source: Robin D' Cruz Avg. % Errors
Target
6000 2.0

1.8
5000
1.6

1.4
4000
1.2

3000 1.0

0.8
2000
0.6

0.4
1000 0.19 0.14 0.12 0.07
0.04 0.06 0.05 0.04 0.2
CY 05 Target 0.25%
0 0.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Form ula: No. of Draw ing Errors =Avg % Error
No. of Draw ings Checked
 Perform Quality Assurance

Input
1. Project Management Plan
2. Quality Metrics
3. Work performance
information
4. Quality Control measurements 2. Quality audit
Tool and Techniques
1. Plan quality and perform
quality control tools and
techniques
3. Process analysis
Output
1. Organization process assets
updates
2. Change requests
3. Project management plan
updates
4. Project documents updates
 Quality Audit
Audit within the Project may be used for several
purposes, such as :
- To monitor the implementation and effectiveness
of quality plans;
- To monitor and verify conformity with specified
requirements;
- For surveillance of suppliers to the organization;
- To provide independent objectives assessment,
when required, to meet the needs of customers
or other interested parties.
 Perform Quality Control
Input
1. Project management plan
2. Quality metrics
3. Work performance
measurement
4. Approved change requests
5. Approved change request
6. Deliverables
7. Organizational process assets
Tool and Techniques
1. Cause and effect diagram
2. Control charts
3. Flowcharting
4. Histogram
5. Pareto chart
6. Run chart
7. Scatter diagram
8. Statistical sampling
9. Inspections
10. Approved change request
review
Output
1. Quality control measurements
2. Validated changes
3. Validated deliverables
4. Organizational process assets
updates
5. Change requests
6. Project Management Plan
updates
7. Project document updates
Inspection

An Inspection is the examination of a work

product to determine whether it confirms to
documented standard. The result of an
inspection generally include measurements and
may be conducted at all level
 Length Tested The figure represents the percentage error in the Welds
KPI 1(b)-Weld Repairs by Discipline Repair Length performed. The graph represents the data for Structural Linear
UT welds performed and the repairs done. The measurement
Structural Linear - UT (M 2) Avg. % is categorized as 'Product Quality'. The data collected reflects
Ind. Std an increase in the weld repairs for the last three months but exhibits an
Process Owner: Roy Mathew overall improvement in the process.
Target
50000 1.2
AREAS FOR IMPROVEMENT
CY 2004 CY 2005 1. Chevron cracking in December in Pipe Mill and avoidance
of Chevron Cracking
1.0 2. Implement preventive action
40000
SHARE BEST PRACTICE ACTION PLAN
1. Welder training program and coaching
2. Welder audit on regular basis
0.8
3. Improve WPS
30000 4. Modify PCM to ID welder individual repair rates
5. Train Supervisors to be coaches
0 .54 0 .53 0 .52 0 .51 6. Stage development of training & Qualification protocol of
0.6 Fillet, Plate and Pipe
0 .4 6 7. PCM for welder performance
0 .4 1 0 .4 3
20000 8. Source young talent to train
0 .3 5 0 .4 9 9. Recognition for good performance
0 .3 2 0 .3 2 0.4 10. Fitters to be measured
0 .4 6
11. Empower welder to reject fit ups
0 .4 0 12. Welding council to improve equipment quality
0 .3 3 0 .3 0 13. Stress on quality control topics during toolbox talks
10000
0.2 14. First line inspection CWI for all leadermen
C Y 05 T arget 0.3% 15. Foreman to record manhours for repair
16. Maintain 40 hrs Training Course
17. Tool box Meeting to address Technical and Method
0 0.0 Statement prior to work commencement
18. Consider coaching of welder by Supervisors based on
Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec Jan Feb M ar criticality of work

Formula: Lengt h R eject ed =A vg. % Error

Lengt h Test ed
CAUSE & EFFECT DIAGRAM
PROJECT EXECUTION CORE PROCESS

FUNCTIONAL INPUT CONTROLLED BY FUNCTIONAL STAFF

BID PROCUREMENT
SUBMISSION PLANNING MATERIALS MGT. MARINE IMS SYSTEM

SCHEDULE FREE ISSUE HSE MGT. COMMITMENT

HISTOGRAM PROCUREMENT PLAN CARGO BARGE
LEVIL 1 GUIDELINES
CRITICAL PATH RFQ & TBE SUPPORT VESSEL
LEVEL 2 PROCEDURES
PRICE, DELIVERY BARGE SELECTION PREPARATION
MILESTONE
LEVEL 3 PLANS
VENDOR CAPABILITY LAYRATE / CYCLE TIME
AWARD PROGRESS MEASUREMENT
PROJECT AUDITS
WBS SUB-CONTRACTOR CAPABILITY DOWNTIME
CORPORATE AUDITS
REPORTING EXPIDITING LOGISTIC SCHEDULE
QUALITY PLANNING
QC/NDT PRODUCT CONFORMITY QC/NDT PRODUCT CONFORMITY
PROJECT QA CONSTRUCTION AID ISO 9000

WELDING PROCEDURE MEASUREMENT

PMT TEAM DRIVES

DEDICATED STAFF PROJECT
CLIENT CLIENT CLIENT END
INFLUENCE INFLUENCE INFLUENCE
PRODUCT
PROJECT TIME LINE
WELDING PROCEDURE LOCAL WORKFORCE
MILESTONES DESIGN PREMISE
QC/NDT PRODUCT CONFORMITY DEPTH & TIDES & CURRENT
EFFECTIVE & TIMELY
PROJECT REVIEW LESSONS LEARNED DELIVERABLES (ROS) PRODUCTIVITY AGENT FACILITATION &
CONTROLS SERVICES
RISK ASSESSMENT FEED
HSE
CHANGE ORDER/MGT. DESIGN VERIFICATION SITE LOGISTICS
4 WEEK LOOK AHEAD
& DESIGN REVIEW
CRITERIA SPEC MATERIAL CONTROL
TBE OF ENG. EQUIPMENT &
ENG. BULK MATERIAL DETAIL DESIGN
SOW & REQUIREMENT
PROJECT QA

CONTRACT DESIGN FABRICATION ENVIRONMENT

FUNCTIONAL INPUT CONTROLLED BY FUNCTIONAL STAFF

DEFICIENCY OUTCOME

 Management Commitment to Quality  Product liability Claim

 Quality not considered a Value and compromised  Loss of $ and Reputation
 Fab Supervision intimidation of QC Personnel