Classification Status: Restricted OCTOBER, 2017 DOCUMENT NUMBER: AZIMARINE & GENERAL SERVICES LTD NONCONFORMANCE, CORRECTIVE & PREVENTIVE ACTION PROCEDURE AZUNCCPAPIO2S-C1 Proprietary Information: This document contains proprietary information and may not be pany or wholly reproduced without prior writen permission from AZIMARINE Revision | Date Description Originator Checker | Approver = Ct | 180017 | Tssued for Approval LEAN i WILL hes OSE | ‘comments incorporated) = First Issue for Internal Review ro | 180817 | Fretissue' U. SANDY Lwiiams | J. OsAsie Distribution - Controlled Copy x Crap - Al Page 1 of 7NONCONFORMANCE, CORRECTIVE & PREVENTIVE, Revision Change Details ACTION PROCEDURE: ‘AZUNCCPAP(028-C1 [Rev] Location of Change Brief Description of Change Deleted” will and Replace with shall and also attached Format for NCR/CAR ce 5.0 107.0 Revision Status Change From Ro to C1 Page 2 of 72.0 3.0 4.0 5.0 6.0 NONCONFORMANCE, CORRECTIVE ée PREVENTIVE ACTION PROCEDURE SCPAPIO2G.C1 TABLE OF CONTENTS PURPOSE... SCOPE. DEFINITIONS AND ABBREVIATIONS. .. REFERENCES... RESPONSIBILITIES... PROCEDURE... 6.1 GENERAL.... 6.2 PROCESSING NONCONFORMING PRODUCT... 6.3 CONTROLLING NONCONFORMING PRODUCT... 6.4 PREVENTIVE ACTIOI 7.0 APPENDICES.. Page 3 of 7NONCONFORMANCE, CORRECTIVE & PREVENTIVE ACTION PROCEDURE AZUNCCPAPIO28-C1 1.0 PURPOSE: ‘The purpose is to establish a Procedure for identification and resolving Nonconformities/ Potential Nonconformities ‘during the execution of the project 2.0 SCOPE: This procedure deals with identification, reporting, tracking, analysing, resolving, implementing corrective action, verifying the implemented corrective action and closing out the nonconformity. This procedure also deals with taking breventive actions on potential nonconformites. This procedure is applicable for all nonconformites identified by AZIMARINE or MPN either on AZIMARINE works or on supplier’ subcontractor works. 3.0 REFERENCE: > Azimarine Quality Plan Manual > GP 20-01-04, Upstrcam Project Quality Assurance-General Requirements, » 10 9001: 2015 Quality management systems -Requirements 4.0 DEFINITIONS AND ABBREVIATIONS > Correction : Correction refers to repair or rework and relates to the disposition of an existing Nonconformity > Corrective Action : Action taken to eliminate the cause of an existing Nonconformity or other undesirable situation > Non conformity: Any deviation from specified requirements. The deviation can result from the departure of a requirement or the absence of required characteristic > Preventive Action: Action taken to eliminate the causes of a potential nonconformity or other undesirable 4uality situation in order to prevent occurrence, > Product: A raw material or a fabricated/ manufactured assembly/ subassembly or a service. Abbreviations; > CA: Corrective Action > CAR: Corrective Action Request > NCR: Nonconformity Report > PA: Preventive Action > PAR: Preventive Action Request > QA/QC: Quality Assurance’ Quality Control Page 4 of 7NONCONFORMANCE, CORRECTIVE & PREVENTIVE ACTION PROCEDURE ‘AZINCCPAP/O28-C1 5.0 RESPONIBILITIES > Manager (QA/QCY QAIQC Lead is responsible for preparation, revision and implementation this procedure during the execution of the project. % All personnel working on the project ae responsible to identify any nonconfomity or Potential Nonconformity and ‘port to his/her immediate Supervisor/ Foreman/ Engineer or any QA/QC personnel > Concemed discipline engincer and QA/ QC Lead Inspector are responsible for documenting NCRICAR/PAR, analysing the root cause for the nonconformity, finding a suitable/appropriate corrective action and resolve the NCRICAR. > Concemed discipline Lead is responsible for implementing the agreed CA. > After implementation of CA, QA/QC personne! are responsible for verifying the CA, documenting the verification activity and closing out the NCR/ CAR/ PAR. ® Concerned discipline Head is responsible to segregate the nonconforming product and stopping any further activities, till the NCR/CAR is satisfactorily resolved and closed out, 6.0 PROCEDURE 6.1 General; * Nonconformity is @ change or deviation or deficiency from requirement of a drawing or code or procedure ot specification ot other applicable document. Weld repair is not considered as non-conformity. * Non conformity may occur at any siage like engineering, procurement, material receipt, fabrication, construction, installation, testing, etc. during execution of a project. * _Nonconformity may be identified by any individual of any discipline of AZIMARINE or by its subcontracior or by MPN. Identification of Nonconformity may be during inspection checks or routine surveillance activities or during audits, 62. Processing Nonconformity: * On identification of non-conformity, it will be communicated to the ‘Supervisor/ Foreman! Engineer responsible for the activity and/ or to QA/QC personnel, * The QA/QC Lead/ QC inspector shall issue an NCRICAR in “NCR/ CAR Format” (tached as Appendix-1) and shall not allow the product fr further processing ie. stop further work on the nonconforming product or in the area where nonconformity. i identified. * The engincer/ supervisor or other responsible person of the concemed discipline (to which the NCR/CAR pertains 0) shall analyze the Root Cause for the nonconformity and incorporate in the NCR/ CAR. "The engineet/ supervisor or other responsible person of the concemed discipline (to Which the NCR/CAR pertains to) will also indieate/ propose in the NCR/ CAR. @ suitable Corrective Action (CA) to prevent recurrence and correction” that shall be done to correct the nonconformity or “use as is". Page 5 of 7> o NONCONFORMANCE, CORRECTIVE & PREVENTIVE ACTION PROCEDURE AZINCCPAP/ZE-CI In the process of analyzing the Root Cause and finding a suitable Correction activity and CA, the Eoncemed discipline engineer/ supervisor may take the assistance! help of petsonnel from “neineering or quality or both. Incase of “use as is”, it shall be justified on he NCRICAR ‘The NCRICAR will be processed further, as detailed below The NCR/CAR, After incorporating the Root Cause and proposed Correction & CA, it shall be reviewed by Engineering Department in respect of aecepabilty ofthe proposed “convetion” The acceptability or non-acceptability or any other “correction” required shall be indicated on the Depeent PY @ responsible person (not below the rank of engineer) of the Engineering Department. Quality personnel shall review the proposed “Correction” and CA for acceptability. In case the Proposed CA is not acceptable, Quality personnel may suggest other acceptable CA of refer it back to the responsible discipline to propose an acceptable CA. similarly Quality personnel shall review we eameston” approved by Engineering Department and add any additional Quality requirements required. ‘Where required MPN approval will be taken. Each NCR/CAR shall be identified by a unique number and date, The NCRI/CARs shall be numbered as FMS/AZ/NCR/CAR/ZZZZ/ XXX (Z7ZZ.is the year in which the NCR/CAR is identified and XXX is the running sequential number). ‘The “Correction” as required and CA shall be implemented by the concerned department/ discipline After implementation of the “Correction” and CA, quality personnel shall verify the “Correction” and CA. for complianee with the agreed disposition. If they are found to be satisfactory on verification, it shall be recorded, signed and the NCRICAR shail be closed out ‘The product will then be cleared for further processing as required, 6.3 Controlling Nonconforming Product: tre eng ofthe NCR/CAR, further work on the nonconforming product area shall be stopped, till the NCRICAR is resolved and closed. QA/QC Lead/ QC inspector shall ensure that no forther ‘work is done on the nonconforming product/area, till the NCR/CAR is resolved, 4 onconforming material / product shall be segregated or identified by suitably marking or ‘tagging on the product/area to avoid any further processing inadvertently Quality Department shall prepare and maintain a Register/Log of NCR/CARS as per Appendix 2 From the Register of NCR/CARs, each NCR/CAR shal be monitored/ tracked till it is closed out. 6.4 Preventive Action: * Preventive action ‘shall be considered when an undesirable trend of quality with a potential for nonconformity is noticed! observed leans eet assess Quality trend either during regular inspection checks or through Quality performance reports or audits and identify the necessity for a Preventive Action. Page 6 of 7NONCONFORMANCE, CORRECTIVE & PREVENTIVE ACTION PROCEDURE AZUINCCPAP/O28-C1 The quality trend should be analysed by the respective Discipline Leads and or Quality personnel and suggest a suitable Preventive Action, Manager (QA/QC) will review whether the suggested Preventive action is suitable and adequate to prevent ne Discipline Lead may interface with personnel from Engineering and or Quality personne to evolve a suitable and adequate preventive action Any Preventive action taken shall be reviewed and recorded. 7.0 APPENDICES Appendix-1: Format for NCR; ‘Appendix-2: Format for CAR; Page 7 of 7MONCONFORMANCE, CORRECTIVE & PREVENTIVE ACTION PROCEDURE AZUNCCPAPOZS-CI Project Description: MPN FAB SERVICES AZI Non Conformance Doc No: AZ/NCRY.. ‘Azimarine and General Services Limited Ee lient: (MOI NON CONFORMANCE [Ties NCR] REPORT [nase SRW 2. Contractor/Suppli 4. NCR No: 5. Contract Ne 7.WO its 6. Part deseriptios 8. Qty: ‘9. Dwg No: Tacoming Inspection Ofer Yes (On delivery No Inprocess inspection Final inspection 13. seras-is Return to supplier Repair Reject Name: Rework ae ‘Non-critical NC ‘Name: ‘Name: Critical NC Date: po ject Engineer ‘Name: 16. Description of proposed action 18. Planned a ion has been cae’ ‘and corrected cea ive action has been initiated Page 8 of 7