Petroleum Development Oman

L.L.C.
Document title: Quality Management
System for Project Delivery - Code of
Practice.
Document ID

Document Type

Security

Discipline

Owner

Issue Date

Version

CP-190

Code of Practice

Unrestricted

Quality Management

CFDH Quality Management

06 Aug 2014

Petroleum Development Oman LLC

Version 2.0
Effective: Sep -14

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Keywords: This document is the property of Petroleum Development Oman, LLC.

Neither the whole nor any part of this document may be disclosed to others or
reproduced, stored in a retrieval system, or transmitted in any form by any
means (electronic, mechanical, reprographic recording or otherwise) without prior
written consent of the owner.

Page 2

CP-190: Quality Management System for Project Delivery

Printed 16/11/16

The controlled version of this CMF Document resides online in Livelink. Printed copies are UNCONTROLLED.

Document Authorisation

Authorised For Issue August 2014

ii Revision History
The following table lists the four most recent revisions to this document. Details of all revisions
prior to these are held on file by the issuing department.
Version No.

Date

Author

Checked

Scope / Remarks

1.0

Sep. 09

UEQ

UEOD

First Issue

2.0

Aug. 14

UEQ

UEOD

Format revised, Quality Road Map

added, FELT Review Comments
incorporated.

iii Related Business Processes

Code

Business Process

ORP

Opportunity Realisation Process

iv Related Corporate Management Framework (CMF) Documents

The related CMF Documents can be retrieved from the CMF Document Control.
Doc. ID

Document Title

Policy
PL-15

Quality Management Policy

Code of Practice
CP-117

Project Engineering Code of Practice

CP-114

Maintenance & Integrity Management Code of Practice

CP-180

Recruitment Code of Practice

CP-131

Risk and Opportunity Management

CP-129

Contracting and Procurement - CoP

CP-142

Audits and Reviews Code of Practice

Specification
SP-2061

Engineering and Operations Technical Authority System

SP-1122

Specification for Project Quality Plan

SP-1171

Specification for Quality Management System for Product and Service

SP-2065

Document Management for Projects

Procedure
PR-1247

Project Management of Change Procedure

PR-1029

Competency Assessment and Assurance

PR-1568

Corporate Document Management Procedure

PR-1233

Contract & Procurement Procedure

PR-1866

Quality Audit Procedure

PR-2052

Project Quality Management system Review

PR-2053

Control of Non-Conforming Product Procedure

PR-2066

Managing Deviations from Standards and Procedures

Guideline
GU-611

PDO Guide to Engineering Standards and Procedures

GU-711

Model Project Quality Plan

v Related International Standards

ISO9000

Quality Management System Fundamentals and Vocabulary

ISO9001

Quality Management System Requirements

ISO9004

Managing for the sustained success of an organization

A quality management approach

ISO10005

Quality Management Systems Guidelines for Quality Plans

ISO10006

Quality Management Systems Guidelines for quality management in projects

ISO10015

Quality Management Guidelines for Training

ISO19011

Guidelines for Auditing Management Systems

ISO/TS 29001

Quality Management Systems requirements for the design, development,

production, installation and service of products for the petroleum,
petrochemical and natural gas industries

ISO/TR 10013

Guideline for quality management system documentation

TABLE OF CONTENTS
i

Document Authorisation........................................................................................................ 3

ii

Revision History.................................................................................................................... 4

iii

Related Business Processes................................................................................................. 4

iv

Related Corporate Management Framework (CMF) Documents..........................................4

Related International Standards............................................................................................ 5

Introduction........................................................................................................................... 8
1.1

Background..................................................................................................................... 8

1.2

Purpose........................................................................................................................... 8

1.3

Scope.............................................................................................................................. 9

1.4

Objective.......................................................................................................................... 9

1.5

Distribution/Target Audience............................................................................................ 9

1.6

Review and Improvement.............................................................................................. 10

1.7

Step-out and Approval................................................................................................... 10

1.8

Terminology, Definitions and Abbreviations....................................................................10

Term / Abbreviation..................................................................................................................... 10
Definition (or meaning for the purpose of this document)...........................................................10
2

Managing Project Quality.................................................................................................... 13

2.1

Quality Policy................................................................................................................. 13

2.1.1

PDO Corporate Quality Management Policy PL-15................................................13

2.2

Management Responsibility........................................................................................... 14

2.3

Roles and Responsibilities............................................................................................. 15

2.3.1

Head of Quality UEQ..............................................................................................15

2.3.2

Business Opportunity Manager (BOM) / Project Manager or Engineer (PM / PE). .15

2.3.3

Project Quality Manager/Asset Lead Quality Engineer...........................................16

2.3.4

Senior Quality Assurance Engineer........................................................................16

2.3.5

Quality Assurance Engineer....................................................................................17

2.3.6

QC Inspectors......................................................................................................... 18

2.3.7

Disciplines............................................................................................................... 18

2.4

Quality Management System Structure and Documentation Hierarchy.........................18

2.5

Quality Management Deployment Model.......................................................................19

2.6

Scaling / Application of a QMS.......................................................................................19

2.7

Quality Planning............................................................................................................. 21

2.8

Resource Management................................................................................................. 27

2.9

Quality Training.............................................................................................................. 28

2.10 3rd Party Inspection Agencies.......................................................................................28

2.11 Measurement, Analysis and Improvement.....................................................................29
2.12 Audits & Reviews........................................................................................................... 29

2.13 Key Performance Indicators........................................................................................... 29

2.14 Non-conformities............................................................................................................ 30
2.15 Quality Improvement...................................................................................................... 30
3

Appendices......................................................................................................................... 31

Appendix 1 Risk Form................................................................................................................ 32

Appendix 2 Quality Activities and Deliverable Guideline Road Map..........................................33
Appendix 3 Project Quality Delivery Plan..................................................................................35
Double click on the icon for opening the file...............................................................................35
Appendix 4 PQP Narrative Checklist.........................................................................................36
Appendix 5 Quality Management Key Performance Indicators.................................................37

Introduction

1.1

Background
In the majority of significant major incidents (irrespective of whether they are financial,
safety or operational by nature), investigations conclude there were often inherent
weaknesses in, and a lack of commitment to, the management of quality throughout the
business processes.
For any project to function effectively there must be a clear and well thought out
framework of business controls applied - Opportunity Realisation process (ORP),
Quality Management is one of those controls and is aimed at assuring compliance with
requirements, however the existence of good management system does not in itself
guarantee a quality product; this has to be accomplished via a combination of technical
competence and, most importantly, adherence by all contributors to the system.

1.2

Purpose
The purpose of this Code of Practice is to ensure that quality is consistently applied and
implemented in PDO projects by supporting the ORP to provide a standardised
approach to Quality Management in projects and give direction to Project Management
Teams. See Fig 1.

CodeofPractice190

LawsandRegulations

Quality Management
Activitites

ProjectQuality
SP1122
SP1171

Front-end
Development /
Engineering

(Quality Planning)

QualityRisks

Execution
Detail
Design

Procurement Construction/
Commissioning
and Hand-over

Support Processes: Risk Mgt, HSE, Procurement, Cost & Planning, Finance etc.
Related Assurance activities: FPD, DCAF, OR, AIPSM etc.

Identify

Assess

Select

Define

Execute

Fig 1
Interfaces with other PDO related assurance activities including Flawless Project
Delivery (FPD), Operational Readiness (OR), Asset Integrity Process Safety
Management (AIPSM) and the Discipline Controls and Assurance Framework (DCAF)
have also been taken into account.
It is acknowledged that there is a degree of overlap between these activities:

FPD / OR and DCAF apply a specific level of QA/QC to individual activities;

A QMS provides the overall system framework within which all these activities
are effectively managed and improved.

It is therefore important that the boundaries and interfaces are clearly defined and
agreed during the opportunity framing with the relevant accountabilities, responsibilities
captured in the Project Quality Plan (PQP), See SP-1122 Specification for Project
Quality Plan.

Operat
e

1.3

Scope
This CoP shall be applicable to all phases of a project as defined in the ORP (ORS) and
CP-117, up to and including the hand-over of the Asset.
Plant changes during the operating phase are also included, irrespective of size.
Subsurface and well engineering activities, as well as operations and maintenance
activities after project handover are excluded.

1.4

Objective
The primary objective is to set the recommended standard for project quality
management related activities by;

Providing a road map for project managers/engineers, quality managers, quality

engineers and others in determining the right level of quality to suit their
particular project.

Providing direction and outline the quality management principles and

practices; the implementation of which are important to, and have an impact on,
the achievement of quality objectives in delivering projects

In its simplest format, quality is delivered via the Deming PDCA cycle See Fig 2.

Plan: Design or revise business process

components to improve results
Do: Implement the plan and measure its
performance
Check: Assess the measurements and report the
results to decision makers
Act: Decide on changes needed to improve the
process

Fig 2

1.5

Distribution/Target Audience
This Code of Practice is applicable to all PDO-staff and contractors who are involved in
the processes and activities directly related, or in support, to the delivery of a project or
modification to an existing Asset.

1.6

Review and Improvement

CP-190 shall be reviewed every three (3) years. In case of change in company policies
or long term directions, it may be necessary to update and re-issue at an appropriate
time to ensure PDOs current position is reflected.

1.7

Step-out and Approval

Any changes that need to be made to this Code of Practice shall be forwarded to the
Corporate Functional Discipline Head (CFDH) for Quality Management UEQ, See PR1247 Project Management of Change Procedure and PR-2066 Managing Deviations
from Standards and Procedures.

1.8

Terminology, Definitions and Abbreviations

Table 1 below lists the terminologies, definitions and abbreviations used throughout the
text of this document, wherever the term project occurs, it may also mean opportunity.
Throughout this document the term Quality Management System (QMS) is used to
describe the Quality System through which QM is implemented.
This CoP uses Shall , Should and May in the following context:
Shall indicates a mandatory requirement and dispensation can only be granted by the
relevant authority. Should indicates a recommendation and May indicates a possible
course of action and is optional.
Table 1

Term /
Abbreviation

Definition (or meaning for the purpose of this document)

Accountability

Being liable for certain actions to be taken and results achieved.

Accountability = Responsibility + Authority.

AI-PSM

Asset Integrity Process Safety Management.

Audit

Systematic, independent and documented process for obtaining audit

evidence and evaluating it objectively to determine the extent to which audit
criteria are fulfilled.

BMS

Business Management System. A set of policies, practices, processes &

procedures used in developing strategies, their execution and all associated
management activities.

BOM

Business Opportunity Manager.

BFD

Basis for Design.

CFDH

Corporate Functional Department Head.

Change

A planned action to revise: a rule, procedure, standard, process, hardware

(including equipment and plant configuration) or organization. The approval of
a change must be obtained in advance of its implementation.

CMF

Corporate Management Framework.

Company

Petroleum Development Oman.

Contractor

A third party (person, company, joint venture) employed to complete a specific

task on behalf of the Company.

CCMS

Project Completions Management System.

CoP

Code of Practice.

CQP

Contract Quality Plan.

CSR

Company Site Representative.

DCAF

Discipline Control Assurance Framework.

DE

Decision Executive

Deviation

A proactive and planned intentional or approved non-compliance with

mandatory requirements of a procedure, standard or specification. The
justification shall be submitted for review and approval obtained from an
appropriate technical authority prior to the deviation taking effect. A deviation
can be temporary, but will often be permanent for a specific installation.

DRB

Decision Review Board, led by the Decision Executive

EMC

Engineering Maintenance Contract.

EPC

Engineering, Procurement, Construction.

Term /
Abbreviation

Definition (or meaning for the purpose of this document)

FAT

Factory Acceptance Test.

FEED

Front End Engineering Design.

FPD

Flawless Project Delivery.

Inspection

Conformity evaluation by observation and judgement accompanied as

appropriate by measurement, testing or gauging.

ISO

International Organisation for Standardisation.

ITP

Inspection and Test Plan.

KPI

Key Performance Indicator.

Monitoring

To check periodically and systematically. It does not imply that any action will
be taken.

MS

Management System. System to establish policy and objectives and to

achieve those objectives.

NCR

Non-Conformance Report.

NDT

Non-Destructive Testing.

Nonconformity Non-fulfilment of a requirement.

ODC

Off-plot Development Contract.

OR

Operations Readiness

ORM

Opportunity Realisation Manual

ORP

Opportunity Realisation Process.

ORS

Opportunity Realisation Standard

PAP

Project Assurance Plan.

PCAP

Project Controls and Assurance Plan.

PDO

Petroleum Development Oman LLC.

PE

Project Engineer

PEP

Project Execution Plan.

PM

Project Manager

PQP

Project Quality Plan.

Project

Unique process, consisting of a set of coordinated and controlled activities with

start and finish dates, undertaken to achieve an objective conforming to
specific requirements, including the constraints of time, cost and resources.

Quality Plan

Document specifying which procedures and associated resources shall be

applied by whom and when to a specific project (product, process or contract).

Project Team

Team involved in the project for the purpose of monitoring activities of the
Contractor in all project phases.

Procedure

Specified way to carry out an activity or a process.

PWR

Practices Worth Replicating.

QA

Quality Assurance. Part of quality management focused on providing

confidence that quality requirements will be fulfilled.

QC

Quality Control. Part of quality management focused on fulfilling quality

requirements.

QM

Quality Management. Coordinated activities to direct and control an

organisation with regard to quality.

QMS

Quality Management System. Management system to direct and control an

organisation with regard to quality.

RASCI

Responsible, Accountable, Supporting, Consulted and Informed.

Term /
Abbreviation

Definition (or meaning for the purpose of this document)

Record

Document stating results achieved or providing evidence of activities

performed.

Responsibility

The execution of a delegated task, activity or process. Being required to

undertake specific actions.

Review

Activity undertaken to determine the suitability, adequacy and effectiveness of

the subject matter to achieve established objectives

TA

Technical Authority.

TBC

To be confirmed.

TBD

To be developed.

TI

Technical Integrity.

TPI

Third Party Inspection.

VAR

Value Assurance Review.

Verification

Confirmation through to the provision of objective evidence that specified

requirements have been met.

Managing Project Quality

The commitment and active involvement of the project and functional leadership
team(s) is essential for developing and maintaining an effective QMS.
This CoP has been based on eight (8) management principles which underpin
successful Quality Management:

Principle 1 Customer focus: Organizations depend on their customers and

therefore should understand current and future customer needs, should meet
customer requirements and strive to exceed customer expectations.
Principle 2 Leadership: Leaders establish unity of purpose and direction of the
organization. They should create and maintain the internal environment in which
people can become fully involved in achieving the organizations objectives.
Principle 3 Involvement of people: People at all levels are the essence of an
organization and their full involvement enables their abilities to be used for the
organizations benefit.
Principle 4 Process approach: A desired result is achieved more efficiently when
activities and related resources are managed as a process.
Principle 5 System approach to management: Identifying, understanding and
managing interrelated processes as a system contributes to the organizations
effectiveness and efficiency in achieving its objectives.
Principle 6 Continual improvement: Continual improvement of the organizations
overall performance should be a permanent objective of the organization.
Principle 7 Factual approach to decision making: Effective decisions are based on
the analysis of data and information.
Principle 8 Mutually beneficial supplier relationships: An organization and its
suppliers are interdependent and a mutually beneficial relationship enhances the
ability of both to create value.

2.1

Quality Policy
The project quality policy shall support the overall corporate and project objectives; It is
a means by which PDO and/or a project organisation is able to channel its actions in
meeting its specific objectives towards Quality.

2.1.1

PDO Corporate Quality Management Policy PL-15

It is PDOs policy that working practices and a Quality Management System that aligns
with the requirements of Code of Practice 190, shall be applied throughout our
organization that:

Make Quality Management an integral part of normal business activities.

Provides adequate resources throughout the organization, ensures competency

of personnel by developing and maintaining a healthy Skillpool of Quality
professionals and includes Quality performance as part of staff performance
appraisal and reward.

Ensure completed works and Assets comply with the requirements of

Engineering Design, the laws of the Sultanate of Oman and Internal Standards.

Establish Business Performance and Project Delivery quality objectives and

targets; measure, appraise and report quality performance.

Achieve continuous
performance.

Engages future Asset-owners to align Project definitions and delivers Flawless

start-up.

improvements

in

Business

and

Project

Delivery

The impact of this policy is that there is a Quality Management System established,
maintained and continually improved that aligns with the requirements of PDO Code of
Practice CoP-190. The Quality Management System includes key matrices, which will
be used to monitor the effectiveness of the system in contributing to top quartile
performance.
The purpose of this policy is to:

Ensure understanding of PDOs commitment to Quality by recognizing Quality

performance and accountability.

Ensure Engineering Designs are clearly documented and agreed with the
Business and Project owner that address specified Asset Integrity and Process
Safety requirements.

Ensure commitment to develop and allocate competent Quality resources

within PDO Assets and Projects.

Create a culture in which PDO and contractor employees are encouraged to

share PDOs commitment to QM principles.

Promote best QM practices within the Oil and Gas industry of the Sultanate of
Oman.

Implement individual accountability to comply with QM requirements.

NOTE: Any individual project Quality objectives shall as a minimum address and
comply with PL - 15.

2.2

Management Responsibility
The achievement of the quality objectives is a management responsibility, therefore the
commitment and active involvement of PDO senior management and /or project
organisations are essential for developing and maintaining an effective QMS.
Typical actions required to demonstrate commitment:

Applying PDO Corporate Quality Management Policy (PL-15)

Providing the infrastructure and resources to ensure achievement of the project

quality objectives;

Making decisions based on data and factual information;

Empowering and motivating all project personnel to improve the project

processes and product;

Planning for future preventive actions (continual improvement process)

The project top management shall nominate a quality management representative who
must have sufficient responsibility and authority for identifying and resolving quality
issues and retain a high degree of independence and objectivity.
Key performance indicators (KPIs) should (dependant of size of Project and Risk) be
developed and agreed for monitoring and steering quality performance throughout the
project (See Section 2.13).
Management shall ensure that Contractors also identify suitable quality resources which
will be subject to acceptance by the project team and/or CFDH.
Contractors management shall also define their commitment to execute the project in
accordance with ISO/TS 29001 and SP-1171.

2.3

Roles and Responsibilities

Quality related responsibilities in projects are described below (See also CP-117
Project Engineering CoP, CP-180 Recruitment Code of Practice and SP-1122
Specification for Project Quality Plan), specific project related responsibilities of
individuals may be further described in individual project documents and/or procedures
and specifications.

2.3.1

Head of Quality UEQ

Head of Quality (UEQ) is the Management Representative who, irrespective of other
responsibilities, shall have responsibility and authority that includes:

Ensuring that processes needed for the QMS are established, implemented
and maintained (PDO Quality Technical Authority TA1);

Reporting to the Engineering & Operations Director UEOD on performance of

the QMS and any need for improvement, and

Providing support and guidance to all Project Teams on quality related matters
and ensuring competent quality (QA/QC) resources are available within the
Project Teams.

UEQ is also responsible for the quality management system review: ensure its
continuing suitability, adequacy and effectiveness. Key project personnel shall be
invited to contribute to the reviews as appropriate. These reviews shall be formal, and
recorded in detail, to monitor the effectiveness of the QMS. These reviews are
described in the Project Quality Management System Review Procedure PR-2052 and
compliment the ongoing feedback and continual improvement of the QMS in its day-today implementation.
2.3.2

Business Opportunity Manager (BOM) / Project Manager or Engineer (PM / PE)

The BoM/PM/PE has overall responsibility for quality and its implementation at every
stage of the project. The BOM/PM/PE should ensure that the project QMS is reviewed
at regular intervals ensuring its continuing suitability, adequacy and effectiveness.
Where repetitive projects (portfolio of projects) are covered within a single contract
scope, a single QMS / PQP may be developed (see sections 2.4, 2.6, 2.7), underpinned
by level 3, 4 documents / deliverables.

Suitability is judged by its ability to sustain current performance;

Adequacy is judged by its ability to deliver the project that satisfies

requirements, standards and regulations;

The review output should include decisions and actions related to the improvement of
the effectiveness of the project QMS, its processes and related resource needs.
Further responsibility and authority include;

Ensure that project quality requirements are addressed and included within the
PEP.

Establishing the budget and resource estimate for quality: ensuring that
appropriate quality resources are available within their respective project team
and contractors organisations in order to achieve PDOs Quality Policy &
Objectives;

Establish, implement and maintain the project QMS including quality strategy
and PQP;

2.3.3

Ensure that project quality requirements are included within contract documents
and that contractors, subcontractors and vendors comply with project QMS
requirements;

Team development to ensure all project personnel are aware of quality

responsibilities;

Promoting a consistency of approach & sharing learning across projects and for
promoting continual improvement within their project organisation;

Taking the appropriate action necessary to address quality issues impacting

project delivery including document reviews, and corrective and preventive
actions are completed in a timely manner;

Making use of available quality related information to evaluate options and

make decisions;

Identifying and implementing quality KPIs and applying rewards/penalties as

applicable under established contracts.

Project Quality Manager/Asset Lead Quality Engineer

The Project Quality Manager / Asset Lead Quality Engineer is the focal point for the
project / asset for all quality aspects and is responsible for:

Ensuring the project QMS strategy and processes/plans are established,

implemented and maintained;

Provide support in developing and implementing the PQP, Transition Plan and
project specific procedures and/or work instructions;

Identifying quality shortfalls and creating training / coaching requirements;

Managing the overall project assurance, surveillance, audit and review activities
and executing project/contractor audits;

Coordinating the timely closeout of audit actions as applicable to their project;

Compile relevant quality statistics/KPIs and implementing lateral quality

learnings;

Monitoring the performance of the EP, C, EPC/ODC/EMC and/or major

contractors against contract requirements;

Reporting to the project manager/engineer and the quality CFDH on the

performance of the QMS, including needs for improvement;

Review and approval of the contractors QA / QC personnel.

Liaising with supply chain management and function to:

Confirm suppliers capability/approved vendor list;

Agree surveillance plans as applicable;

Act on surveillance reports as necessary.

2.3.4

Assist PM / PE in the identification / compilation of quality documents

subjected to review and approval by project team.

Senior Quality Assurance Engineer

Sr. QA Engineer is responsible for day to day management of quality for a given
project / asset area under supervision of the Project Quality Manager / Asset Lead
Quality Engineer. He is responsible for:

2.3.5

Provide support in developing and implementing the PQP, Transition Plan and
project specific procedures and/or work instructions;

Identifying quality shortfalls and creating training / coaching requirements;

Managing the overall project assurance, surveillance, audit and review activities
and executing project/contractor audits;

Coordinating the timely closeout of audit actions as applicable to their project;

Compile relevant quality statistics/KPIs and implementing lateral quality

learnings;

Providing early contribution to the contractor's ITP/QCP to identify critical hold,

witness, monitor and review points including PDOs activities;

Reviewing contractor and manufacturer contract quality plan and relevant

procedures as per SP-1171 Specification for Quality Assurance Requirements
for Product and Service)

Ensuring the quality requirements

manufacturer's ITP/QCP are followed;

Conducting surveillance of contractor's activities in the procurement,

fabrication, construction and installation of a facility or product by:

Reporting problem areas to the quality manager (lead project engineer if project
does not have a designated quality manager) and raising non-conformance
reports (NCRs) or Product NCRs to document work that fails to meet the
specified quality requirements so that remedial action can be taken;

Verifying that all NCRs and Product NCRs have been satisfactorily resolved;

Reviewing the contractor's submission of the QC data package at completion of

the work. It is the PMs/PE's job to see that the quality related requirements are
adhered to and that competent resources are available, in time, to assist in
achieving same (see BOM/PM/PE responsibility requirements).

identified

in

the

contractor's

or

Quality Assurance Engineer

Is responsible for ensuring the quality requirements identified in the contractor's or
manufacturer's ITP/QCP are followed; conducting surveillance of contractor's activities
in the procurement, fabrication, construction and installation of a facility or product by:

Providing early contribution to the contractor's ITP/QCP to identify critical hold,

witness, monitor and review points including PDOs activities;

Reviewing contractor and manufacturer contract quality plan and relevant

procedures as per SP-1171 Specification for Quality Assurance Requirements
for Product and Service)

Reporting problem areas to the quality manager (lead project engineer if project
does not have a designated quality manager) and raising non-conformance
reports (NCRs) or Product NCRs to document work that fails to meet the
specified quality requirements so that remedial action can be taken;

Verifying that all NCRs and Product NCRs have been satisfactorily resolved;

Reviewing the contractor's submission of the QC data package at completion of

the work. It is the PMs/PE's job to see that the quality related requirements are
adhered to and that competent resources are available, in time, to assist in
achieving same (see BOM/PM/PE responsibility requirements).

2.3.6

QC Inspectors
Provide early contribution to a project in order to ensure:

2.3.7

Adequate inspection during fabrication / construction;

Inclusion of the asset holder requirements;

Records and evaluates the findings of manufacturer and contractor QC

activities so as to recommend improvements;

Assist in evaluating the impact of new fabrications on existing facilities and

provides recommendations on best options;

maintains records of repairs and changes in the maintenance administration

and information.

Disciplines
Ensure the effectiveness and efficiency of processes under their control.
NOTE: Specific requirements should be detailed in individual job descriptions.

2.4

Quality
Management
Documentation Hierarchy

System

Structure

and

Project QMS documentation is firmed up post DG3 space as illustrated in Figure 3.

Customer /
Stakeholder
Requirements
Select
& Define

Identify project specific

Customer / Stakeholder I
d
Bo
requirements:
Identify project
e
C ar M
specific
Business
Principles
Assurance
d o
Intern
Mn
Governance & Standards
ti/ A
controls:
CoP
117,
190,
al
F
Execut

Specific Project Laws &

Governance &

f
ISO/TS
Extern
ISO 9001,
Business
Control
ion
Assurance
Regulations
Select
& Define
Contracti
29001,
ISO
10006
al y
Reviews: PDAB / DRB /
Strate
ng
Quality
/ BAC
Strategies,
OR
DE
gy
Strategy
Strategy
Projec
Define
Constructability
VAR / project
ESAR / Audit /
Policies,
&t Policy
Define
Supporting

In/ Country
Value
PERT
PSUA
specific:
Qualit
Assets
/
Work
(ICV)
Systems
DCAF
Plans /

Standards /
F Streams
E y Plan
Pro
Pr
/

Benchmarking
Codes
n
c/
eSystems

Lessons Learned E Interfaces

Project QMS
Execu
Identify
Risk and
E
g
Co
C
Procedures
& /
Eng
Design
Inputs
Opportunity
nst
o
te
F D Instructions
project
inee
Design
outputs,
Management
m
Crit
Pre
Pos
Contract
P
ring
Proce
Checks,
Reviews

MoC
specific:
m ticali
D
&
AIV
Su
Construct
FPD

Project
ty
Aw
Aw
dures
Q
Procure
Fabrication,
Plan
ppli ard
ion
Specific
Ass
ard
ments
Fa
Con
Mech
Installation /
Exe
ers QA/ Contracto
Quality
QA/QC
ess bri
QA/anica
Ar
stru
Const.
cuti
QP
rs
QPs
&
Interventio me
Requirements
QC ctio QC l
Commissioning
e
Comm.,
cati
on
s
&
ITPs

n Plans
Specifications
nt on QA & Flawless
a
Hook-up
n
Com
ITPStart-up

Procedures (TPIs &

s
& StartQC
QC
pletio
s

Company) Continua
MoC
n QC
up
l
Corre
Au
Qu
Les
Benc
ctive
dits
alit Improve
son
hmar
&
y
s
king
Preve
KPI ment
Lea
&
ntive
s
rne
Healt
Action
d
h
s
Chec
ks
Fig 3
Principal contractors / sub-contractors selected to execute the work, shall (dependant
on work to be executed) develop and implement specific quality plans, associated
procedures, work instructions, and inspection and test plans. The PM/PE shall identify
which documents are subject to review by the Project Team and shall form an integral
part of the overall Project QMS.

2.5

Quality Management Deployment Model

The quality management deployment model is illustrated in Fig 4 below. This model is
common to both ISO10006 & ISO9001, and shall be used as the basis for developing
the project QMS.

Fig 4
To facilitate deployment, the elements of the model should be grouped according to
their affinity to one another:

Managing the Project - Management Responsibility / Resource Management /

Measurement, Analysis & Improvement.

Realising Project Quality - Comprise the demand fulfilment processes, e.g.

Design / Construction / Commissioning together with the interdependent
processes, e.g. HSE, Risk Management, Work Planning & Scheduling,
Contracting & Procurement, etc.

2.6

Scaling / Application of a QMS

Scaling/tailoring the QMS for each project shall be defined by the opportunity project
team and agreed with the Business Opportunity Manager (BOM), project manager
and/or project engineer / CSR as applicable at the outset, recorded in the PEP and
implemented via the PQP and reviewed at each decision gate.
This decision should be based on the interfaces with other business processes, the
intent of each activity, identified risks and lessons learned from other projects.
Table 2 below shows the recommended application of a quality management system by
ORP phase and project value.

Table 2
Project
(millions)

size

Identify
Assess

>$ 1000
<$ 1000
<$ 200
<$ 50
<$20 (EMC/ODC)

&

Select

Define

Execute

Recommended.

Mandatory

Table 2 above is only indicative as Projects differ in terms of complexity and

uniqueness, reflected in their risk exposure and applied mitigation actions.
The QMS is also unique and may differ in terms of structure, complexity and application
based on the identified Risk and cost, Table 3 (example of Risk Form is provided in
Appendix 1).
(in Million USD)Facility / Capital Intensity

Table 3
>$ 1000

QMS Level 3

QMS Level 4

QMS Level 4

<$ 1000

QMS Level 2

QMS Level 3

QMS Level 4

<$ 200

QMS Level 1

QMS Level 2

QMS Level 3

<$ 50

QMS Level 1

QMS Level 1

QMS Level 2

<$20 (EMC/ODC)

QMS Level A1

QMS Level A1

QMS Level A2

Risk Category:

Low

Medium

High

Risk category explanation:

Low Risk: Conventional projects that involve limited engineering scope and only
few vendor interfaces, typically single discipline such as pipeline and overhead line
projects, or single vendor package, standard materials, no prototype, low risk
impact, limited brown field scope.

Medium Risk: projects with considerable engineering scope, many discipline

interfaces, multiple vendors, various high grade material types, and /or medium risk
impact. (gas compression/ production facilities steam projects, polymer projects,
water-floods, some prototypes, brownfield projects)

High Risk: projects involving extensive multidiscipline engineering, many different

vendors, typically sour, high pressure projects such as miscible gas, exotic
materials, many prototypes, many discipline interfaces, high brownfield content,
high risk impact.

Table 4 identifies the minimum quality management system(s) assurance and control
requirements based on Value and/or Risk See also CP-131.
Table 4
Quality Management System requirements
QMS Level 3 a. The QMS / PQP should be specifically developed for the Project, including a
&4
Quality Strategy/objectives, supporting procedures and work instructions.
PDO Corporate Quality Policy, management system and procedures shall be
used as a main reference.
b. Quality Resources, including a Quality Manager and QA Engineer(s) should
be dedicated to the project and should be progressively deployed during the
Identify & Assess phases of the ORP.
QMS Level a.
2 The Projects QMS may be a combination of the PDO Corporate management
system and procedures and project specific procedures.
The level of
documentation is to be assessed on an as-needed basis.
b. A dedicated Quality Lead should be deployed as a minimum during the
Select phases of the ORP. QA/QC resources can be shared with other
projects on an as-needed basis.
QMS Level 1 a. The Project Quality System should basically consist of a PQP that makes
reference to, and is supported by, applicable PDO standards and processes;
i.e. normally there will be no need for the Project to develop its own specific
procedures.
b. More reliance should be placed on Line Management to practice their own
responsibilities towards QA/QC activities at early phases; i.e. generally, a
dedicated quality resource will be mobilized at the Define Phase of the ORP.
c. Minimum one dedicated QA Lead Engineer, additional QA/QC resources may
be shared between more than one project through a matrix organization or
skill pool.
EMC/ODC
QMS Level A2, dedicated Quality Lead full time to the project.
QMS level
For QMS Level A1, QA/QC resources may be shared between more than one
A1 & A2
project through a matrix organization or skill pool. Supply Chain Quality
Lead/Engineer, position may be covered by corporate Function.
Execution QA/QC Engineers and Inspectors, The number will vary per project
and may include both full time and call-off arrangements. The roles may also be
filled by 3rd. Party inspection agencies.

2.7

Quality Planning
In order to achieve project quality objectives, it is necessary to manage and control the
project processes and activities by means of Project Quality Plan (PQP). Where
relevant, the PQP should be supported by lower tier quality plans, procedures and/or
work instructions specific to discrete parts of the project, see SP-1122 and SP-1171 for
specific details.
Quality Planning should commence at the Identify / Asses phase of the ORP (Fig 5) and
be continually updated as and when project requirements become more clearly defined
until final project delivery and hand-over to Operation.
To guide development of the PQP the primary quality activities and quality deliverables
associated with each ORP phase, What you do, are illustrated in the Quality Activity
and Deliverable Roadmap, see section 3 Appendix 2.
An outline of project QA/QC activities and deliverables in various ORP-phases of
Identify/Assess, Select, Define, and Execute respectively is provided in the Project
Quality Delivery Plan (PQDP), see section 3 Appendix 3.
The PQP should indicate how the required activities will be carried out, either directly or
by reference to appropriate documented procedures, or other documents (e.g. project
plan, work instruction, checklist, etc, see also Appendix 4 PQP Narrative Checklist
Inputs that need to be considered include:

The project classification by Cost and Risk;

The requirements of stakeholders and any statutory, regulatory and industry

specifications;

The capability / experience of the project organisation and maturity of the QMS.

The Quality Characteristics that need to be controlled, assured, improved,

managed & demonstrated.

Quality Resources (both availability and capability)

If a requirement results in a deviation from the QMS, this deviation should be justified
and authorised.

The depth and breadth of the PQP should be determined by the overall project / quality
characteristics and associated risks to be mitigated (RE: Section 2.6).

Fig 5

Table 5 identifies the minimum quality activities and controls that should be addressed
within the PQP, irrespective of the QMS scaling (details of corporate Codes of Practice,
Specifications, Procedures and Guidelines are provided for reference, refer to LiveLink
for latest copy).
Table 5
QMS Requirement
Design & Development
Quality Management
(Front-end Engineering &
Detailed) including
Technical Integrity.
(CP-117, CP-185, SP-1122,
SP-1134, SP11-71, SP2061, PR-1232, PR-1247,
PR-1358, PR-1151, PR1561, PR-1729, PR-1741,
PR1727, PR1734, PR1735, PR-1761, PR-1768,
GU-603, PR1772, PR1759).

PQP Activity
The design quality assurance process is key in enabling the
project to achieve its objectives and therefore must be effectively
controlled.
The following steps should to be addressed and reviewed:

Setting Quality objectives for the design process;

Submission of a Design Quality Plan (which should include

requirements for assuring technical integrity.

Quality measures for indicating achievement of these design

quality objectives;

A defined sequence of design processes, procedures, or tasks

that transform the design inputs into design outputs;

Essential QA/QC requirements set out in project specifications;

Checking, verification and approval procedures for establishing

that the process is achieving its objectives (internal and
external);

Design change control is properly managed (internal external);

Processes for improving the effectiveness of the design

process.

Auditing effectiveness of the Competence Assurance process

Drawing Office quality controls and associated procedures

should be available.
All work should also be undertaken in accordance with the relevant
Technical Integrity Framework and/or DCAF and other applicable
Project Standards / Guides.
Where an Independent Verification Body is required to verify a
design in order to comply with any prevailing regulations and
legislation (e.g., Pressure Vessel Directive, Lifting Regs, etc), the
requirement should be specified in the PQP and should identify
both the internal Technical Authorities (TA) and 3rd parties required
to review and approve the relevant documentation.

Interface Control
(Project specific document)
(CP-162, CP-111, PL-13,
GU-435)

The project should have and implement an interface control

procedure.

Establish and implement an effective communication system /

process that address all project interfaces including
internal/external Meetings, communications, reporting,
correspondence etc.

This should be subject to audit and included in the Audit plan.

Alternative arrangements to manage interfaces should also be
addressed as a scope item in the Audit plan.
Change and Deviation
Controls
(PR-1247, SP-2061, PR1001x, PR-1029, PR-2066)

Management of Change and the Deviation processes should be

subject to audit and included in the Audit plan. The audit scope
should assure all technical deviations are approved by designated
Technical Authorities, and that deviations are managed and
controlled. The deviation register should be audited.

QMS Requirement
Risk Management
Control.
(CP-131)

PQP Activity
The projects should have a risk management procedure:

Develop project risk management procedure and establish risk

register including mitigation measures and time frames.

System should be subject to audit and included in the Quality

Audit plan. Alternative arrangements to manage risk should also
be addressed as a scope item in the Audit plan.
Information Management
/ Document Control.
(PL-06, CP-102, CP-139,
SP-1003, SP-2047, SP2065, SP-2066, SP-2067,
SP2079, PR-1009, PR1561, PR-1568, PR1692,
PR1772, GU-453, GU-493,
GU-556, GU-582)
Project Controls
(CP-131, CP-142, CP-185,
GU-484, GU-569, GU-117,
GU-521, GU-569, GU-611,
GU-711)
Quality in Contracting
and Procurement.
(CP-129, SP-1122, SP1171, PR-1233, PR-1279,
GU-115, GU-556, GU-586,
GU-598)

The document control system should be audited to assure

achievement of information quality, and that changes/revisions, are
approved, retained on file and issued in a controlled and
systematic manner.
Quality record requirements should be set out in the IM plan. The
IM process should be part of the audit plan.

The use of the project suite of project controls and procedures

should be audited and included in the Audit plan. The audit of
project control effectiveness should also extend to contractors and
key subcontractors.

Robust and effective methods should be established to assess,

monitor and control contractors, sub-contractor, suppliers and
service providers at a very early stage in the project life.
The focus should be determined by the quality risks to the project
and measures established to ensure effective delivery of all
products, services and materials.
Key quality inputs should include:

Determining the level of quality management intervention

through a risk based assessment of contracted and supplied
services, equipment materials, and goods (e.g. criticality
process).

Design Contractor Quality Appraisal and Evaluation

Contractors/Supplier Quality Appraisal and performance

monitoring
Contract and Procurement Quality Control
The requirement for a Contractor/Supplier Quality Plan should be
embodied in each major contract, or purchase order
The QA and QC inspection requirements (level of Quality
Intervention) should be incorporated in purchase orders in order to
reduce the risk of non-conformance to specification and late
delivery.
Key quality inputs should include:

Quality Intervention Strategy and Plans

Quality Control/Inspection, Testing and Quality Surveillance

plans

Material Quality Control and Traceability (Procurement)

Appraisal and Use of Inspection Contractors (Execution

Phase)

Supply Chain Quality Assurance Plans

QMS Requirement
Construction Quality
Assurance and Control.
(SP-1122, SP-1171,
PR1483, PR-1561)

PQP Activity
The PDO project team should ensure that a Construction Quality
Plan and Quality Audit plan is available. It should cover the
construction and installation quality activities and that any audits
and reviews are planned in a methodical manner to assure that the
construction work meets the requirements of the contract and
project specifications.
Participation in contractor quality audit plans is an effective way to
monitor implementation and effectiveness of construction and site
QA/QC activities.
The extent of quality monitoring should be dependent upon the
technical criticality of the work and contractor/subcontractor work
scopes.
Key areas to check are

Systems Handover
Quality Control.
(SP-1131, PR-1000, PR1150, PR-1612)

Project specific Inspection and Test Plans have been prepared

that define critical fabrication steps, the acceptance criteria, and
the specific methods and procedures to be used to ensure that
all Contract requirements are met

Construction quality team is notified and involved in the review

and sign off on inspection release notes, or Inspection and Test
Plan hold points.

Inspection and Test plan actions are monitored to closure. This

should also include supplied equipment and material.

Monitoring and measuring devices, applicable to inspecting

construction work scope of work, is available and calibrated and
is the proper instrument for inspecting the work.

On handover of each completed system or subsystem to

commissioning, a construction dossier shall be compiled that
includes all quality information on that system (e.g. as-built
drawings, test results, factory acceptance test outcomes,
mechanical completion, vendor documents and data etc.). Project
Completions Management System (CCMS) shall be used for
systematic approach.
The site quality team should assure collection of these quality
records is both effective and complete. The process should be
audited as part for the construction audit plan. Contractor and
subcontractor handover controls should be included.

Commissioning Quality
Control & tools Project
Completions
Management System
(CCMS).

Quality activities to verify that the Installation:

has been constructed as designed;

meets its performance specification;

is safe and reliable for operation; and

(PR-1159, PR-1172, PR1561, PR-1612)

design limits have not been violated.

This is particularly important when items are constructed at a

number of locations are brought together on site. Mechanical
completion of systems should be confirmed by the completion of
quality checklists prior to handing the system over for
commissioning.
Incomplete minor items should be recorded on punch-lists.
Commissioning should be executed using pre-agreed procedures
and checklists.
On handover to Operations for start-up, the package of information
transferred into the operations records should include:

Quality records and handover certificates and completed

check sheets;

agreed punch lists of minor items to be completed after

QMS Requirement

PQP Activity
handover; and outstanding inspection activity.

Quality records of equipment and running trials.

Readiness Review/Start-up (OR)

The methodology of the Flawless Project Delivery (FPD) should be
applied on all PDO projects in accordance with the Operational
Readiness and Assurance Plan (OR).
This will generally be co-ordinated by a dedicated OR Team with
close liaison/tie-in with the site Quality team.

2.8

Resource Management
Within the QMS attention shall be given to the activities in the personnel-related
processes to assure the competence of suitable resources to manage quality. The
processes should ensure:

The establishment of the project quality organisation structure (both for the
project and principle contractors)

The allocation of quality resources, and

Team development to ensure all project personnel are aware of quality

responsibilities

A summary of key quality related responsibilities is provided in section 2.3 and shall be
reflected in the tasks and targets of the project team roles.
The Quality Manager/Engineer should report direct to the PM / PE or most senior
individual who has been given responsibility of assuring that quality and technical
integrity requirements are compliant. Quality functionality remains with UEQ.
It is recommended that RASCI Charts (Responsible, Accountable, Support, Consult and
Inform) are used to define who should do what quality activities on the project.
An indicative QA/QC resources required across projects is shown in Table 6:
Table 6
Position

EPC Project QMS Level

Comment

Quality Manager

Level 3 - 4 project, dedicated full time to the

project.

Project Quality
Assurance
Lead/Engineer

On a Level 4 project, will be progressively

involved from Identify & Assess phase
through to Execution.

Supply Chain
Quality
Lead/Engineer

Construction
Quality
Lead/Engineer

For level 2 or 3 projects, will become

involved from Select phase and may be full
time (Level 3) or support several projects
(Level 2).

Execution QA/QC
Engineers and
Inspectors

As
reqd

As
reqd
.

As
reqd.

As
reqd
.

Position

South / North Asset

Quality Assurance
Lead / Engineer

ODC/EMC
Project QMS
Level
A1

A2

Supply Chain Quality 1

Lead/Engineer

Note: the actual numbers

depending on Project portfolio.

will

vary

The number will vary per project and may

include both full time and call-off
arrangements. The roles may also be filled
by 3rd. Party inspection agencies.

Comment

Level A2 project, dedicated full time to the project.

For Level A1 project, generally provide support to
all projects.

May be covered by corporate Function.

Execution QA/QC
Engineers and
Inspectors

As reqd.

As reqd.

The number will vary per project and may include

both full time and call-off arrangements. The roles
may also be filled by 3rd. Party inspection
agencies.

The above table is indicative, should the project involve a shift rotation, the quality
resources may increase significantly. The number of quality resources may also be
influenced by the type of contractual arrangements and the role of the Principle
contractor.
These resources should be planned across the ORP, ideally with the Quality
Manager/Lead identified at the end of the Select / start of Define phase.

2.9

Quality Training
Project personnel should be adequately familiar with project quality system
requirements and their specific role in the system for the performance of their assigned
tasks.
Initial quality system induction training is therefore required at the start of each (phase
of a) project, followed by sustained training e.g. covering specific quality topics.
Specifically for the construction and commissioning phase QMS training is important as
usually a large part of the supervisory staff are hired-in on short-term contracts and may
not be familiar with PDOs, Contractor/Subcontractor standard procedures and systems.
See also PR-1029 Competence Assessment & Assurance.

2.10 3rd Party Inspection Agencies

To help monitor the performance of its contractor and the supply chain (including
expediting and inspection related activities), projects may employ the services of a 3rd
Party Inspection Agency or utilise services through an EPC type contract.
Where such organisations are used, it is important they are able to demonstrate the
necessary competency requirements. In addition performance of each individual
inspectors shall be monitorerd for key factors of their performance such as competency,
availablility, timeliness, documentation and accuracy.

2.11 Measurement, Analysis and Improvement

The project organisation shall ensure that measurement, collection and validation of
data is effective and efficient, to improve the organisations performance and enable
continual improvement in both current and future projects.
Examples:

Evaluation of individual activities and processes;

Auditing;

Evaluation of supplier performance;

Evaluation of actual resources (cost/time) compared to original estimates.

2.12 Audits & Reviews

A Project Quality Audit and Review plan shall be developed and maintained for the
whole project lifecycle SP-1866 Quality Audit procedure
. Its purpose is to:

Provide documentary evidence to stakeholders of the effectiveness of the

project assurance process, the project management/quality management
systems and business controls;

Demonstrate that compliance to Project specified requirements have been

achieved;

Identify areas for continual improvement.

The Project Quality Audit and Review plan shall include audits of all key project
controls, prime contractors and areas identified as at risk that may require a certain
level of Quality intervention to assure compliance to project requirements.
The Quality Audit and Review Schedule shall detail the outline scope and frequency of
all audit /reviews against each project control, contractor, sub contractor, supplier.
The status of audits/reviews and associated findings should be summarized and
included in Project Reports issued to the PM Team. The review of Quality Audit
/Review reports should be the primary method used in measuring achievement of the
stated Project Quality Objectives.

2.13 Key Performance Indicators

Key performance indicators should be both leading and lagging:

Leading are used to signal possible future events

Lagging follows the event. The importance of a lagging indicator is its ability to
confirm that a pattern is occurring or is about to occur.

The leading indicators should focus on the effectiveness and efficiency of the QMS from
a system, organisational, and process viewpoint. This should apply both internally
(within the project team) and externally (critical contractors and suppliers).
The lagging indicators should be QA/QC focused, and aligned with Flawless Project
Delivery objectives to avoid duplication.
Examples of both Leading & Lagging Indications are shown in Section 3 Appendix 5.

2.14

Non-conformities
Projects shall ensure the control of all nonconformities by one or more of the following
ways:

By taking action to eliminate the detected nonconformity;

By authorising its use, release or acceptance under concession by a relevant

authority;

By taking action to preclude its original intended use or application.

Records of the nature of nonconformities (NCR) and any subsequent action taken,
including concessions obtained, shall be maintained by the project.
See also PR-2053 Control of Non-Conforming Product Procedure.

2.15 Quality Improvement

Projects shall continually seek to improve the effectiveness of its QMS through the use
of the quality policy (quality objectives), audit results (incl. PEER reviews, etc), analysis
of data (e. g. training records, deviation control, change control, process monitoring
measures etc.), Risk matrix/mitigating, corrective and preventative actions and
management reviews.
This information should be captured in an appropriate database, to enable learning
(both good and bad) to be assessed by other similar projects. A Quality Alert process
shall also be used to communicate specific quality issues with other projects and UEQ.
The PM / PE should review the effectiveness of this process and take the necessary
steps to continually improve the project organisation and the processes used to support
effective project delivery. Where necessary, this may include working with the supply
chain to ensure similar objectives are achieved.
Prior to closing a project it is recommended that the project team carry out a
documented review of the project performance, highlighting experience from the project
that can be used by other projects.

Appendices

Appendix 1 Risk Form

Risk Type

Risk
Rated

Justification for
Risk selection

Rating definition
Individual Rating: H = 15, M = 10 & L = 5

Technical Risk
Subsurface
Uncertainty
Risk

Surface
Complecity
Risk

Project Execution
Risk

L: Development in a well-developed, mature area.

M: Development in a relatively new area / location.
H: Development in a new area in a particularly unusual setting.
L: Straight-forward repeat execution of a typical production
system.
M: Unsual development configuration, non-traditional facilities
integration into existing system, brownfield development.
H: Mid steam integration 9LNG/GTL).
L: Single well developed location, low likelyhood of late
changes, C&P straight forward.
M: Single location, manageable logistical challenges, low
likelyhood post DG-3 changes, some C&P issues.
H: Multi locations, cross business, logistical challenges,
potential for late changes to concept, C&P vhallenges.

Novel Technology
Risk

L: No novel technology, all technology applied within PDO.

M: New Technology, not applied in PDO, considerable
experience outside PDO.
H: New technology, not applied in PDO, limited experience
outside PDO.

Ecomonic Risk

L: Well predicable economics (wages, currency), margin

predicable.
M: Limited economic risks (wages, currency), larger variation in
margin possible.
H: High economic risks (high impact currency fluctuations, wide
variation in margin possible.

Commercial Risk

L: Commercial and JV contracts in place, no problems

expected, partners with long standing relationship.
M: Expect some problems completing commercial and JV
contracts, partners with no clear alignment.
H: No clear commercial and JV contracts in place, access to
goods and services is limited by local environment, or dealing
with partners known to be out of alignment or adversarial.

Organisational Risk
Business
Environment
Risk

L: Well established line of business and relationships with

government/regulators/venture partners well understood.
M: Unusual business conditions or relationships challenges in a
region that is otherwise well understood.
H: New country entry. New venture, new line of business, area
with known issues / relationship challenges

Risk of Team
Capability to
Deliver

Quality System/
DCAF Maturity
Risk

Environmental /
Social
Perfromance Risk

L: Expert team in place and available.

M: More-experience Team in place and available.
H: Less-experience Team in place.
L: Very mature QMS / DCAF in place.
M: QMS / DCAF practices embedded in projects.
H: Only QMS / DCAF basic framework exists.

L: No reputational issues, no community issues, no permit

issues expected.
M: Some reputational issues, limited community issues,
manageable permit uncertainties.
H: High reputational issues, serious community issues, major
permit uncertainties.

Risk Summary

Risk Summary Rating:

L< 75

M = 75 to 125

H>125

Appendix 2 Quality Activities and Deliverable Guideline Road

Map
Identify

Assess

Select

Define
Pre-FEED

DG /VAR
Key Activities

1
Provide outline
strategy for Quality
Assurance against
identified opportunity
risks.

Frame strategy for

Quality Assurance
against identified risks
and QA resource need.
Establish Policy / Goals /
Objectives / KPIs /
Procedures.

3
Refine strategy for
Quality Assurance
against identified risks
and QA resource need.

FEED

(opt)3a
Updated strategy for
Quality Assurance
against identified
risks.

Appoint Quality lead,

Finalise Project
determine Quality
Quality Plan.
resource requirements,
Determine level of
conduct quality training. Establish and set
equipment and
Quality monitoring /
Draft Preliminary
material criticality
surveillance /
ratings and quality
manpower / competency Project Quality Plan.
Provide Quality inputs
intervention levels.
shortfalls / Risks.
into Job descriptions
Establish QA
Initiate Quality Audit plan
Populate DCAF for the resource need.
and improvements.
project, monitor and
Establish and maintain
Populate DCAF for
measure
action tracking system.
the project, monitor
implementation.
and measure
Confirm applicable QMS
Periodic
quality
implementation.
and work within it.
management review of
Periodic quality
Populate DCAF for the
the project within the
management review
project, monitor and
defined QMS.
of the project within
measure implementation
Conduct quality audits
the defined
Establish and follow-up
and peer reviews.
QMS/PQP.
Lessons learned
Provide Quality
Conduct quality
Assurance input to
audits and peer
project execution
reviews.
strategy including
Continual
contracting strategies
improvement, nonconformance
reporting, corrective &
preventative action,
and trend analysis.
Surveillance of LL
contractors &
suppliers QA/QC
systems and
performance.

4
Updated strategy for
field/site Quality
Assurance against
identified risks.
Update and set
equipment and
material criticality
ratings and quality
intervention levels
critically rating.
Update QA and QC
resource need.
Determine special
skills and/or training
requirements.
Implement project
specific PQP, and
review periodically.
Align and approve
QMS for FEED
contractor.
Establish/implement
Change
management.
Populate DCAF for
the project monitor
and measure
implementation.
Conduct quality
audits and peer
reviews.
Continual
Improvement, Nonconformance
reporting, Corrective
& Preventative
Action, and trend
analysis, implement
KPIs,
Surveillance of
contractors PQP &
suppliers QA/QC
systems and
performance.

Identify

Assess

Select

Define
Pre-FEED

DG /VAR
Key
Deliverables

Strategies.
Aligned Quality Policy
and Objectives.
Identified resource
requirements.
Draft Audit plan / PAP
DCAF MOX
Risk Register

3
Preliminary Project
Quality Plan.

FEED

(opt)3a
Project Quality Plan.

4
Updated Project
Quality Plan.

Updated Project Audit

Project Audit & Review & Review Plan +
Agreed FEED
Plan + tracking register. tracking register.
contractor quality
plans.
Project Team Audit &
Quality Criticality
Review reports.
Rating and Quality
Updated Quality
Intervention schedule. Criticality Rating and
Quality Intervention
Project Team and
schedule.
Contractor Audit &
Review and
Updated Project
Surveillance reports / Audit & Review Plan
trend analysis.
+ tracking register.
QA/QC Resource
Plan.

Quality learning,
measurement and
trend analysis report.
Project Team and
Contractor Audit &
Review and
Surveillance reports.
Change registers.

Appendix 3 Project Quality Delivery Plan

Double click on the icon for opening the file.

Appendix 4 PQP Narrative Checklist

Source: based on ISO9001, ISO10005 & ISO10006 (Guidance notes provided in Shell PS and
PGs).

Manage Project Quality

PQP Part 1

Content

1.

Introduction:

Purpose & Scope

Opportunity Statement
Governance & Assurance

PS00 Project Development and

Implementation + PS06 Project Controls
+ PS 07 Opportunity Framing / Project
Premises + PS10 Project Execution
Planning.

3.

Project QMS

Quality Objectives & Strategy

Quality Policy
QMS System Framework &
Document Hierarchy/Procedure
Summary
Quality Management Review

PS13 Quality in Projects + Quality

Toolkit.

Project Organisation (by ORP

phase)
Quality Accountabilities &
Responsibilities
Competencies for Quality and
Inspection.

PS11 Project Organisation + Quality

Toolkit.

Quality Audits & Reviews +

Project QMS Health Check
Nonconformities & Corrective
Action
Quality Performance
Measurement / KPIs
Quality Improvement

PS12 Lessons Learned +

Quality Toolkit.

5.

Resource
Management

7.

Measurement Analysis
& Improvement

PQP Part 2

Realise Project Quality

Guidance

8.

Design & Engineering

Co-ordination (incl.
DCAF/TQAF)

Contents

Technical Integrity Verification

plan Interface
Performance Standards &
Verification Schemes Interface
Change & Deviation Control
Interface Control
Constructability
Equipment/Material Quality
Intervention Strategy

PS 08 Defining the Technical Scope +

DCAF / TQAF + Quality Toolkit

Risk Management

Reference to procedures, process

and risk registers.

PS20 Risk Management

10. Cost Estimating, Cost

Control and Planning

Reference to procedures, process

and, plans and reports.

PS03 Capital Cost Estimating + PS04

Scheduling

11. Contracting and

Procurement

Quality Assessment of
Contractors / Suppliers
Inspection Test & Surveillance
Plan
Co-ordination of Inspection
Agencies

PS05 Contracting & Procurement

Strategy Realisation + Quality Toolkit

9.

12. Information
Management &
Document Control

Quality Records,
Certification
Hand-over dossiers

PS15 Information
Quality Toolkit

13. Construction &

Installation,
Commissioning
14. Start-up

Construction Site Quality

Activities.
Inspection and Test Plans
Flawless Delivery Interface

PS17 Construction + FPD/OR + Quality

Toolkit

Management

Appendix 5 Quality Management Key Performance Indicators

Leading Quality Indicators - Project Quality Management System Health-Check Tool (See Shell
Quality health check tool)
The tool is intended to be used when assessing the capabilities of a project and/or 3rd parties Quality
Management System (QMS) to meet PDOs requirements.
The questionnaire is aimed at projects categorised business critical although it can be tailored to suit other
situations.
Its primary purpose is to benchmark how mature an organisations processes are, how well they are embedded
in their culture and to identify where the gaps are so that action can be identified to improve.
The questionnaire is not a replacement for independent third party certification, nor does it address all aspects of
ISO9001: 2008. Its focus is on those elements of a QMS viewed by PDO as essential to successful project
delivery.
The questionnaire has been divided into 5 elements which align with ISO9000 and ISO10006:
1.

Quality Management System,

2.

Management Responsibility,

3.

Resource Management,

4.

Product (Project) Realisation and Measurement,

5.

Analysis and Improvement,

These are further broken down into sub-elements (example for Quality Management system sub-element 1, is
shown below). For each sub element there are statements that characterise different levels of maturity. The five
levels range from the most elementary stage (level 1) that indicates that the arrangements are under
development and incomplete through to level 5 where systems are fully implemented, checked and personnel
are constantly looking for ways to improve the system and performance.

Lagging Quality Indicators

A lagging indication, by definition, is one that follows an event. The importance of a lagging
indicator is its ability to confirm that a pattern is occurring or about to occur.
Lagging indicators are by far the most widely used in industry, in particular, those associated
with measuring defects, e.g. % weld repair; % non-conformities; % waste.
Others take into account customer satisfaction Totally satisfied / Fairly satisfied / Neither
satisfied nor dissatisfied / Fairly dissatisfied and Totally dissatisfied.
It is suggested that a 4-stage process is followed:
Stage

Objective/activity

Agree on the objectives and scope of the activity to develop performance indicators

Development of a deeper understanding by workshop attendees of the main stakeholders in the

activity and their concerns.

Exploration of the evidence the main stakeholders require to address their concerns, i.e.
appropriate and useful indicators. Selection of relevant stakeholders, concerns and indicators

Exploration of how the results of the performance measurement against the chosen indicators
are going to be used for improving performance, and by whom
Exploration of the data required, the practicalities associated with collecting it and using the
output, e.g. how this activity may link with the other measurement or monitoring activities taking
place

Good practice examples of key performance indicators are shown below. They should be used
across each ORP phase, reported using existing project management tools, and adjusted to
meet the needs of an individual project.

QKPI 01 QMS Effectiveness

Quality Management KPIs:

Quality Indicator

Measure

Audits and reviews

planned, actioned,
outstanding

Total No. overdue

Vs
Total planned for
period

Quality Resources

ORP
Phase

Threshold

Review
Frequency

Report
Format

All

>90%

Quarterly

Statistic /
Trend

No. of resources
Vs
No. of positions
established

All

>90%

Quarterly

Statistic /
Trend

Closure of NCRs

No. raised
Vs
No. closed

All

> 90%

Quarterly

Statistic /
Trend

Management system
Procedures per
function/discipline

No. of documents
delivered late
Vs
No. required by
schedule / MDR

All

< 5%

Monthly

Statistic /
Trend

QKPI 02 Quality in Design

QKPI 03 Quality in Supply Chain

Quality Indicator

Measure

Management review
meetings

Total No. overdue

Vs
Total planned for
period

HAZOP actions
outstanding

ORP
Phase

Threshold

Review
Frequency

Report
Format

All

>90%

Yearly

Statistic /
Trend

No. cleared
Vs
Targeted

Select,
Define
and
Execute

> 90%

Monthly

Statistic /
Trend

Holds outstanding

No. design
issues / queries
closed Vs
Targeted

Select,
Define
and
Execute

> 90%

Monthly

Statistic /
Trend

Design Changes and/or

Deviations

No. raised
Vs
No. cleared

Select,
Define
and
Execute

> 90%

Monthly

Statistic /
Trend

Design deliverables

No. of document
delivered late
Vs
No. required by
schedule / MDR

Select,
Define
and
Execute

< 5%

Monthly

Statistic /
Trend

Closure of Supply Chain

NCRs

No. raised
Vs
No. closed

Execute

> 90%

Monthly

Statistic /
Trend

Holds outstanding

No. of Holds
cleared
Vs
Targeted

Execute

> 90%

Monthly

Statistic /
Trend

Correctness and
completeness of the
procurement documents

Correct TA level
Approval for
Material
Requisitions
Vs
Technical
Specifications of
POs (along with
respective PE
Signature) issued
for criticality level
CR1 & CR2 Items.

Execute

100 %

Monthly

Statistic /
Trend

Document turnaround
compliance
(vendor/contractor/PDO)

Material
Requisitions /
Technical
Specifications,
Drawings & ITPs
approved in ten
(10 Working days)
for criticality level
CR1 & CR2 Items.

Execute

> 95

Monthly

Statistic /
Trend
(An auditable
Spread sheet
shall be
developed
and
implemented)

Quality Indicator

Measure

ORP
Phase

Threshold

PGSC compliance

Vendor / Subvendors selected

from the AVME
List or approved
by CFDH (prior to
award) for
criticality level
CR1 & CR2 Items.

Execute

100 %

ITP witness & hold

points

No. of witness &

hold points
missed
Vs
No. required

Execute

CR/ITP compliance
(approval and H/W
points)

Inspection visit
performed for
Hold or Witness
points as per ITP
for criticality level
CR1 & CR2 Items.

Material delivery
compliance
(documentation &
Technical)

Review
Frequency

Report
Format

Monthly

Statistic /
Trend

< 5%

Monthly

Statistic /
Trend

Execute

100% for
H&
95%for W

Monthly

Statistic /
Trend

Material /
Equipment
inspected and
accepted prior to
dispatch to sites
for criticality level
CR1 & CR2 Items.

Execute

100 %

Monthly

Statistic /
Trend

Vendor Quality Records

& Data outstanding

No. of documents
delivered late
Vs
No. required by
schedule / MDR

Execute

< 5%

Monthly

Statistic /
Trend

Vendor / supplier
materials / equipment

No.of recorded
material /
equipment
traceability /
identification
issues.
Vs
No of materials /
equipment items
received

Execute

< 5%

Monthly

Statistic /
Trend

ITP witness & hold

points

No. of witness &

hold points
missed
Vs
No. required

Execute

< 5%

Monthly

Statistic /
Trend

Field Trouble Reports

No. cleared
Vs
No. raised

Execute

> 90%

Monthly

Statistic

QKPI 04 Quality in Fabrication, Construction & Installation

Quality Indicator

Measure

ORP
Phase

Threshold

Review
Frequency

NCRs

No. closed
Vs
No. raised

Deviations /
Concessions

Report
Format

Execute

> 90%

Quarterly

Statistic /
Trend

No. cleared
Vs
No. raise

Execute

> 90%

Monthly

Statistic /
Trend

Weld repair rate (Piping)

No of joints
rejected
Vs
No of joints tested

Execute

< 3%

Weekly

Statistic /
Trend

Weld repair rate

(Pipeline)

No of joints
rejected
Vs
No of joints tested

Execute

< 5%

Weekly

Statistic /
Trend

Hand-over
documentation

No. of documents
delivered late
Vs
No. required by
schedule / MDR

Execute

< 5%

Monthly

Statistic /
Trend