IRON OX METAL WORKS LIMITED

Greenville Oil & CORRECTIVE AND PREVENTIVE

Gas Co. Ltd. ACTION PROCEDURE

REVISION HISTORY
Revision Section ACTION Description

Rev. B ALL Initial Issue Issued for Review/Comments

Rev. 0 ALL Issued for use Issued for use

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 IRON OX METAL WORKS LIMITED
Greenville Oil & CORRECTIVE AND PREVENTIVE
Gas Co. Ltd. ACTION PROCEDURE

CONTENTS

1.0 SCOPE 4

2.0 PURPOSE 4

3.0 DEFINITIONS 4

4.0 ABBREVIATIONS 5

5.0 REFERENCES 5

6.0 ROLES AND RESPONSIBILITIES: 5

7.0 GENERAL PROCEDURE 6

7.1 GENERAL INFORMATION 6

7.2 IMPROVEMENT PROCESS, REVIEW AND ANALYSIS 6

7.3 MONITORING PROGRESS AND VERIFICATION 8

7.4 REGISTER OF IARs 8

7.5 IAR NUMBERING SYSTEM 8

7.6 RECORDS 8

7.7 SERVICE PROVIDER AND CONTRACTOR ORGANISATIONS 9

8.0 REFERENCES AND APPENDICES 10

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 IRON OX METAL WORKS LIMITED
Greenville Oil & CORRECTIVE AND PREVENTIVE
Gas Co. Ltd. ACTION PROCEDURE

1.0 SCOPE
This procedure applies to the corrective and preventive action process.
The process applies to strategic and control process activities as defined in
accordance with ISO 9001:2008 section 8.5.3 and 8.5.4
The system, processes, and terminology defined in this procedure as per
ISO9001.

2.0 PURPOSE

This procedure defines and describes the corrective and preventive action process
that applies throughout the Greenville’s INSTALLATION OF ERES 0.25 MTPA LNG
PLANT 1 AND 2 project.

The process defines activities applicable at all stages in the p r o je c t lifecycle,

from the start of the Define phase, throughout the Hand over phase – providing a
mechanism for input to the IRON OX improvement processes, as required by
ISO 9001.
The procedure describes how preventive actions designed to eliminate potential
causes of non-conformance are identified and implemented.
Preventive action may be generated from general work activity or the weekly
project meetings, as well as the nonconformance and corrective action system,
lessons learned, improvement suggestions etc processes, as applicable.
Preventive action is taken to prevent occurrence and recurrence; while the
corrective action is taken to correct the NCR and analyse the root cause of the
occurred NCR.

3.0 DEFINITIONS
Quality: degree to which a set of inherent characteristics fulfils requirements.
Corrective action: action to eliminate the cause of a detected nonconformity or
other undesirable situation.
Improvement: activity to increase the ability to fulfill requirements.
Non-conformance or nonconformity: non-fulfillment of a requirement.
Preventive action: action to eliminate the cause of a potential nonconformity or
other undesirable potential situation.
Requirement: need or expectation that is stated, generally implied or obligatory.

Improvement Action Request: (Preventive Action) proposal or request

generated from activities or observations which may have the potential for
improvement or preventive effect

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 IRON OX METAL WORKS LIMITED
Greenville Oil & CORRECTIVE AND PREVENTIVE
Gas Co. Ltd. ACTION PROCEDURE

4.0 ABBREVIATIONS
IAR Improvement Action Requests
NCR Nonconformance Report
IM/DCC Information Management Document Control
Centre

5.0 REFERENCES
IOX-QAC-GEN-0001-000 Management Systems Manual
ISO 9001:2008 Quality Management Systems
IOX-QAC-GEN-0002-000 Audit Procedure
IOX-QAC-GEN-0003-000 Control of Non-Conformance

6.0 ROLES AND RESPONSIBILITIES:

IAR ORIGINATOR
Responsible for improvement or preventive action identification, definition, raising
the IAR and for forwarding to the responsible project quality lead authorities.

IRON OX QUALITY MANAGER and LEAD QA ENGINEER

Responsible for the initiation, application and implementation of the procedures
and processes, which collectively form the IRON OX Projects Continual
Improvement processes.

PROJECT QUALITY LEAD/ENGINEER OR QUALITY FUNCTION

Responsible for the collation assessment, review of IARs and their incorporation into
the continual improvement process. Monitors IARs progress and verifies completion.

Responsible for ensuring the effective application of this procedure and to further
ensure the integration of this process with other continual improvement processes.

Responsible for record keeping.

IM/DCC
Responsible for the IAR numbering system, allocation of numbers, and
maintenance of the IAR Register.
Responsible for maintaining associated records, and IAR information to relevant
parties including recipients throughout INSTALLATION OF ERES 0.25 MTPA LNG
PLANT 1 AND 2 project lifecycle.

Responsible for record keeping.

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 IRON OX METAL WORKS LIMITED
Greenville Oil & CORRECTIVE AND PREVENTIVE
Gas Co. Ltd. ACTION PROCEDURE

7.0 GENERAL PROCEDURE

7.1 GENERAL INFORMATION

Corrective Action as a result of NCR is part of the NCR Process control and it is
a tool in order to close the NCR and Verify action is done ,however Preventive
action is a tool used to avoid future recurrence and as a vehicle for Improvement
together with the IAR.
IARs may be proposed by any member of the IRON OX Projects team, who are
encouraged to identify and report any potential for the improvement of
performance and quality of service, with the aim of fulfilling defined requirements
more effectively.
Quality related incidents or occurrences which may lead to potential
improvements or preventive actions may be identified as a result of scheduled
activities such as audits, reviews, inspections, self assessments, etc or may arise
during the course of normal working activities and observations, or discussions
such as walkabouts or project meetings.
Improvement/preventive action may also be identified by any team member as
the result of observance, review or analysis or output from:
• Audit

• Business management review

• Quality management system review
• Project progress and review meetings
• Project close-out
• Nonconformance and corrective actions
• Incident or accident investigations
• Improvement recommendations
• Customer satisfaction and feedback
• Lessons learned
• General feedback
An example of preventive action is the improvement or generation of a generic
company procedure to prevent a potential nonconformance on all contracts, as
the result of an investigation or observation on one specific project.

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 IRON OX METAL WORKS LIMITED
Greenville Oil & CORRECTIVE AND PREVENTIVE
Gas Co. Ltd. ACTION PROCEDURE

7.2 IMPROVEMENT PROCESS REVIEW AND ANALYSIS

In line with input into IRON OX and project management reviews, and the
continual improvement process the QA Manager or the QA Lead Engineers on
the projects carries out periodic reviews and analyses of all improvement
activities.
The following documents will be reviewed and analysed by the responsible
project quality function, with the intention to identify all instances of improvement
potential from both positive and negative findings.
• Audit reports
• Non-conformance/corrective action forms (NCRs)
• Project quality system/management review minutes
• Concession request analyses
• Improvement proposals and suggestions (IARs)
Improvement Action Requests are raised and numbered with a number issued by
IM/DCC, and forwarded to the Project Lead Quality Engineer for collation,
assessment and review. IARs may be forwarded electronically for review
The Project Lead Quality Engineer conducts the initial review and assessment,
and relevant Team Leaders from other functions and projects may become
involved as the requirement for action is identified discussed and then accepted
and agreed. Any review team is defined by the quality function.
The review is designed to:
• Test the value of the proposed improvement
• Verify the effectiveness of the various procedures which define part of the
process
• Identify best practice for incorporation into the Projects systems
• Determine where effective . preventive action can be taken to avoid non-
conformances and install improvements
• Define any deliverable or measure
The findings of the review will be recorded on the Improvement Action Request,
and review records. The purpose of this is to document agreed actions and
demonstrate the audit trail between the start point (e.g. the non-
conformance/improvement request) and the responding action
Improvement requests will be forwarded to the Function Head for acceptance
and subsequent implementation.

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 IRON OX METAL WORKS LIMITED
Greenville Oil & CORRECTIVE AND PREVENTIVE
Gas Co. Ltd. ACTION PROCEDURE

7.3 MONITORING PROGRESS AND VERIFICATION

The Lead Quality Engineer will monitor the progress of the IAR and verify on
completion of the required action.
The progress of all IARs will form an element of appropriate Continual
Improvement meetings and will provide input into the Project Management System
Review.

7.4 REGISTER OF IARs

The IM/DCC for the INSTALLATION OF ERES 0.25 MTPA LNG PLANT 1 AND 2 project
shall maintain a register of IARs and monitor to subsequent completion and close-
out.
The authorities concerned shall also maintain adequate records of relevant IARs
relating to the INSTALLATION OF ERES 0.25 MTPA LNG PLANT 1 AND 2 project’s
Continual Improvement processes.

7.5 IAR NUMBERING SYSTEM

IARs are numbered using a system based on the approved document numbering
system, as indicated in the (Example) table below.
IM/DCC will provide assistance and guidance in this process.

IM/DCC provide numbers and maintain the numbering system, transmit and
distribute IARs, and maintain the IAR register containing revision number(R01),
sheet number(001), area identifier(IAR).

7.6 RECORDS
IAR records are part of the IRON OX Projects demonstration of the continual
improvement process. Full records relating to IARs shall be maintained
IRON OX Project IM/DCC shall maintain copies of records related to IARs, and
these shall be made available to the for senior management for review.

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 IRON OX METAL WORKS LIMITED
Greenville Oil & CORRECTIVE AND PREVENTIVE
Gas Co. Ltd. ACTION PROCEDURE

7.7 SERVICE PROVIDER AND CONTRACTOR ORGANISATIONS

Service provider and contractor organizations shall define appropriate
improvement and preventive action processes to the satisfaction of Greenville.
These shall be made available to Greenville and project representatives for
scrutiny and the outputs also presented for audit and review purposes.

8.0 REFERENCES / APENDICES

IOX Quality Manual

Quality Management Systems ISO 9001: 2008

IOX Audit Procedure

IOX Control of Non-Conformance

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