PHASE II OF REFINERY IN DOS

BOCAS (HDN, HDDI, HDTGO, REF)

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REVISION HISTORY

Rev. DATE DESCRIPTION

A 10/01/2021 ISSUED FOR REVIEW

0 13/01/2021 ISSUED FOR CONSTRUCTION

*Note:

This page records all revisions on the document.

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Table of Content
1. GENERAL .................................................................................................................................................................. 4
1.1 PURPOSE ........................................................................................................................................................... 4
1.2 SCOPE ................................................................................................................................................................ 4
1.3 REFERENCES .................................................................................................................................................... 4
1.4 TERMS AND DEFINITIONS ................................................................................................................................ 4
1.5 ROLES & RESPONSIBILITY ...................................................................................................................................... 5
2. QUALITY INTERNAL AUDIT PROCESS. ................................................................................................................. 6
2.1 AUDIT PLANNING ................................................................................................................................................... 6
2.2 AUDIT ATTENDANCE .............................................................................................................................................. 7
3. AUDIT REPORT......................................................................................................................................................... 9
3.1 ISSUANCE OF AUDIT REPORT ................................................................................................................................. 9
3.2 AUDIT FINDING REPORT ......................................................................................................................................... 9
3.3 AUDIT REPORT NUMBERING ................................................................................................................................... 9
3.4 AUDIT REPORTS SHALL INCLUDE: ............................................................................................................................ 9
3.5 CORRECTIVE ACTION ........................................................................................................................................... 10
4. ATTACHMENT......................................................................................................................................................... 10
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1. GENERAL

1.1 PURPOSE

This procedure serves as the basis for addressing the internal quality audits to verify and assure the
implementation and maintenance of the Project Quality Management System in compliment to the International
Norm ISO 9001:2015 as well as PTI-ID’s contractual, statutory and regulatory quality requirements during the
all phases of the Dos Bocas New Refinery Project.

1.2 SCOPE

This procedure applies to overall phases of the project (Phase II) both on and off the site location as well as
applicable to quality audits completed by SAMSUNG on its own organization operations, and Sub Contractors.

1.3 REFERENCES

Annex 4 “Quality Requirements”

ISO 9001:2015 Quality Management Systems – Requirements,
Or its Mexican version NMX-CC-9001-IMNC-2015
R2B-P2-200-00-O-PLQ -00002 Project Quality Plan

1.4 TERMS AND DEFINITIONS

PTI-ID PTI – Infraestructura de Desarrollo S.A. de C.V.

SAMSUNG SAMSUNG INGENIERÍA MANZANILLO, S.A. DE C.V. / Asociados

Constructores DBNR S.A. de C.V. (Samsung Engineering Co., Ltd)

Project Dos Bocas New Refinery Project.

Quality Audit Systematic, independent and documented process for obtaining

objective evidence and evaluating it objectively to determine the extent
to which the audit criteria are fulfilled (ISO 9000:2015).

Interphase Personnel Representative personnel of audited area who will serve as a

connection with auditor team.

Objective Evidence Information based on facts that can be proved by means of search like
analysis, measurement and observation.

Finding Weakness on the process internal control detected by the auditor and
that could generate non-conformity.

Non-conformity Requirement breach.

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QA Quality Assurance; The part of quality management focused on

providing confidence that quality requirements shall be fulfilled (ISO
9000:2015)

QC Quality Control; The part of quality management focused on fulfilling

quality requirements (ISO 9000:2015)

1.5 Roles & Responsibility

1.5.1 Project Quality Manager is responsible for:

(1) Implementation, supervision and monitoring of this procedure.

(2) Plan, control and monitoring of internal quality audits.
(3) Designate Lead Auditor & Auditor team members.
(4) Review the internal quality audits plan.
(5) Non-conformity closing.

1.5.2 Lead Auditor is responsible for:

(1) Prepare the quality audit plan.

(2) Plan audits, prepare the work documents and instruct auditor team.
(3) Represent auditor team with the auditee and the general management.
(4) Prepare audit report.
(5) Inform to the auditee the audit results, including the findings.

1.5.3 Quality Auditor is responsible for:

(1) To comply with the audit applicable requirements.

(2) Document potential Non-conformities and Non-conformities.
(3) Inform to the auditee about the audit results, including the findings.
(4) Keep and protect the audit documents to assure its permanent confidentially.
(5) Obtain and analyze enough and relevant evidences which allow to obtain conclusions regard
audited quality system.

1.5.4 Auditee is responsible for:

(1) Inform the involucre personnel about the audit objectives and scope.
(2) Assign personnel members as responsible to accompanying auditor team members.
(3) Supply all necessary resources to the auditor team in order to assurance an effective
and efficient audit process.
(4) Cooperate with auditors to allow achieving audit objectives.
(5) Determinate and start corrective or preventive actions in basis the audit report.
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2. Quality Internal Audit Process.

2.1 Audit Planning

2.1.1 Audit Planning Schedule

An Audit planning schedule must be prepared by the Project Quality Manager and submitted to PTI-ID
for approval, in order to envisage the project audit activities for the following situations:

 Ensure the implementation of Project Quality Management System.

 The compliment of PTI-ID contractual quality requirements.
 To address changing construction circumstances.
 Areas of concern identified during project ongoing.
 Areas of concern identified on previous audits.

2.1.2 Audit Preparation

Prior to the celebration of each event planned on Audit planning schedule, Project Quality Manager shall
designate the Lead Auditor & Audit Team, who will be responsible for carrying out the audit activities.

For each planned audit, Lead Auditor shall prepare an Audit Plan which shall identify:

 Audit scheduled date & location

 Audit scope & objectives
 Audit team
 Relevant needed resources.
1) Locations that should be available to enter during the audit.
2) Suggested member of the auditee’s part who should be available
3) Reference documents to use as a basis to drive the audit process.
 Audit Agenda
 Audit methods to be employed.
 Audit criteria

Audit Plan must be reviewed and approved by Quality Manager.

2.1.3 Audit Criteria

Audit criteria will be defined as a result of the review of relevant reference documents applicable to the
project and its Quality Management System, as well as PTI-ID contractual requirements, that could be,
without limitation:

 Project Quality Management Plan

 Project execution plan
 Project procedures
 Contractual, statutory and regulatory requirements.
 PTI-ID standards
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 Inspection & test reports

 Previous audit s informs
 Work Instructions

2.1.4 Audit Checklist

To ensure compliance with the audit purpose and the coverage of the scope, the audit team shall issue
an Audit Checklist that will include the key verification points identified in the documents review stage,
and will be used as a guide to address the audit process.

Auditor will use the Checklist as support but it does not have to be a limiting to the audit execution, as
well as it could be modified during the process within the audit scope.

2.1.5 Audit Notification

Once the Audit Plan has been defined, is submitted to the auditee part by means of an agreed
communication channel between PTI-ID and SAMSUNG, ten (10) working days in advance of the event.

2.2 Audit Attendance

2.2.1 Opening Meeting

Audits will commence with an opening meeting, referred to as the “Audit Attendance Meeting”, where
Lead Auditor shall explain each relevant audit proceedings that shall include as minimum:

 Attendance list.
An attendance list of audited personal and the introduction of auditor team should be carried out by
the lead auditor.
 Confirmation of the Audit Plan.
The purpose & scope shall be explained as well as the reference documents that were used to
audit planning.
 Reading of the audit agenda.
Addressing the following:
 Approximate time to each audit phase.
 Possible changes to audit agenda due to unexpected events.
 Emphasize minimizing disruption of operations on work areas.
 Agreement of start time, recess and end of the day schedules.
 Resources Availability
Lead Auditor shall confirm that the auditee´s areas and personnel are available to be audited.
 A brief Summary of audit methods to use.
A description about the way to conduce the audit and the use of the Audit Checklist as a guide.
 Findings criteria.
The criteria to classify non-conformity findings, potential findings, improve opportunities as well as the
quality management system strengths must be notified to the audited areas representatives.
 Communication channels.
Audited area shall ensure the availability of interphase personnel as well as define who will be contacted
in their absence.

During the opening meeting, a representative of the auditee will be requested to be nominated to act as
a guide during the audit process.
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2.2.2 Audit Course

During the course of the audit, internal auditor shall obtain enough OBJECTIVE EVIDENCE provided by
audited personnel to each audit requirement trough:

 Personnel interviews.
 Document review.
 Observation of activities and interested areas conditions.

Recollected information through methods above has to be proved by other independent sources such as
physical observation, measurements and records in order to ensure that processes are been carried out
as per correspondent contractual, statutory and regulatory quality criteria.

Internal Auditors shall review the objective evidence recollected to determine findings. Evidence must be
qualitative and congruent with the performed activities for process products or services and must show
its compliance in each audited area.

In case of found a Finding, it will be agreed with the auditee’s interphase personnel and recorded on the
Audit Checklist. When an anomaly that cannot be satisfactorily explained on the spot is found, the Finding
has to be identified in order to be discussed during closing meeting.

Internal Auditor shall keep alert to evidence indications that could have influence on audit results and that
could request a wide audit.

In every phase of the audit, internal auditor shall be impartial and free of influences that could affect
his/her objectivity.

2.2.3 Findings Review.

Auditor team shall meet with Lead Auditor to review audit Checklist’s notes and findings found during the
audit. Each Internal Auditor delivers to Lead Auditor an audit finding summary to each area, regarding
the audit criteria and presented in sequential order. As a best practice, results shall be read and
information must be cross-checked to homologize findings.

Each finding must be analyzed in order to determinate if Non-conformity is applicable, based on previous
defined criteria. Also on this time Corrective Action Request are defined.

2.2.4 Closing Meeting

On completion of the audit schedule a closing meeting, referred to as the Audit Closing Meeting will
be held.

Lead Auditor will present a summary of the findings and Non-conformities of the audit to the auditee and
will discuss about the doubts or concerns that could be have place about the audit results in order to reach
a common agreement.

Any Corrective Action Request raised will be discussed in detail and remedial actions documented. A time
scale for completion of the actions will also be identified by the auditee. The Corrective Action Request will
be signed by both the auditee and auditor.
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In the cases where agreement cannot be reached, this fact will also be recorded.

It is of the utmost importance that the senior members of the auditee's organization are present at the
opening and closing meetings. This will ensure that audits are given the importance and status they
deserve, and should also guarantee that remedial actions are implemented.

3. Audit Report

3.1 Issuance of Audit Report

The Lead Auditor shall compile and issue reports for each Audit within ten (10) working days of
Audit completion.

The Auditor shall maintain registers of all Audit reports, non-compliances and requests for corrective action.

3.2 Audit Finding Report

Non-conformance, deficiencies requiring corrective action shall be identified to issue the Audit Finding
Report(AFR). AFRs shall be described in sufficient detail to ensure that effective corrective action can be
taken.

3.3 Audit Report Numbering

Audit Report is prepared according to following document numbering scheme.

X X X X - X X - X X X X - XX
(1) (2) (3) (4)

* (1) Audit Year to be executed by Auditors (e.g. 2020)

* (2) AP: Audit Plan / AC: Audit Checklist / AR: Audit Report / AFR: Audit Finding Report
* (3) Audited Team Code / Project No (e.g. SO6465) / Sub-Con. Name (e.g. CIM)
* (4) Serial No. (e.g. 01, 02, 03…..)

3.4 Audit reports shall include:

1) Scope and objectives (terms of reference) of the Audit

2) Audit criteria and Program
3) Procedures against which Audit was performed
4) Documents forming the basis of the Audit
5) Identity of auditor/audited personnel, including the name of the department or function audited;
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6) Summary of findings, including compliance with the Quality Management System, the SAMSUNG’s
PROJECT Quality Management Plan and the documented procedures;
7) Full details of all requests for corrective action for all areas of non-compliance;
8) Agreed close out dates for all areas of non-compliance together with the agreed action to be undertaken.

3.5 Corrective Action

3.5.1 The Auditor shall record the issued AFRs on AFR Log. The AFR Log shall provide for tracking the status
of the AFR until the AFR is closed out.

3.5.2 The organization assigned action on the AFR should provide a response indicating the corrective action
and cause analysis for finding or to be taken with the scheduled completion date indicated by the
requested Response Due Date.

3.5.3 The organization assigned on the AFR should notify the Auditor when all the corrective actions have been
completed. The Lead Auditor verifies the corrective actions taken by assuring that the noted condition
has been corrected and satisfactory results obtained.

4. Attachment

ATTACHMENT #1: QUALITY AUDIT PLAN

ATTACHMENT #2: QUALITY AUDIT REPORT
ATTACHMENT #3: AUDIT FINDING REPORT
ATTACHMENT #4: QUALITY AUDIT SCHEDULE
 ATTACHMENT 1 - QUALITY AUDIT PLAN

AP No.:
AUDIT PLAN
AC No.:
Issued Date:
□ : Scheduled □ : Unscheduled

Organization To Be Audited: Project No.:

Audit Scope and Objectives:

Audit Schedule Date: Reference Documents:

Audit Team:

Remarks:

Previous Audit Finding to be verified (if applicable): Yes □ No □

Prepared by: Reviewed/Approved by:

Lead Auditor/Auditor Date Quality Manager Date

 ATTACHMENT 2 - QUALITY AUDIT REPORT

AUDIT REPORT
Audited Organization: Audit Date: AR No.:

Audited Scope and Objectives:

Audit Team: Persons contacted:

Summary of Audit Results:

Finding : □ Yes □ No (AFR No.: )

Prepared by: Reviewed/Approved by:

Lead Auditor/Auditor Date Quality Manager Date

Distributed to:
ATTACHMENT 3 – AUDIT FINDING REPORT

Audit Finding Report

Issued Date:

Project/Organization: Response Due Date AFR No.:

Condition (Nonconformity):

Preventive Action Required Initiated by: Approved by:

Yes □ No □ Auditor Quality Manager

Causes of Findings:

Corrective Action(C/A) Taken or Planned:

Prepared by:
Scheduled Completion Date: Approved by:

· Corrective Action Plan Accept : Yes □ No □ Corrective Action Plan Accept

· Reasons for not accepting :
Accepted by:
Auditor
Verification for Corrective Action Implementation

Verified by : Approved by :
Lead Auditor / Auditor Quality Manager
 ATTACHMENT 4 – QUALITY AUDIT SCHEDULE for PHASE II

Audit Stage Progress Type of Audit Subject to be audited Audit Place Auditor

40% Adequacy / System Audit

Engineering & Project Execution Plan(Internal),
At CONTRACTOR
Procurement Engineering Execution Plan(Internal) Audit Team
Home Office
(Scheduled) Product, Close out & Final and Relevant Procedures
80%
Documentation

Construction Execution Plan(Internal)

30% Adequacy / System Audit
& Relevant Procedures
Construction
Construction Execution Plan(Internal), At Site Audit Team
(Scheduled)
Product, Close out & Final Field Procurement Procedure &
60%
Documentation Relevant Procedures
MC Hand-over Management

Module Execution Plan(Internal) &

30% Adequacy / System Audit
Relevant Procedures
Module Shop At Module Shop Audit Team
Product, Close out & Final Module Execution Plan(Internal) and
60%
Documentation Relevant Procedures

* Note : If serious quality issue occurs, un-scheduled Audit will be carried out.