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CUEL Limited Document Number:

CPO1601V-QAL-QA-REP-1702-01

Rev: 0 Date: 23 January 2017


Subcontractor Pre-
Assessment Report Page: 1 of 11

EMCO LTD (THAILAND) LTD.

A 18 Jan 2017 Issued for Review thurman2 Tuskrichda


015
0 23 Jan 2017 Approved for use 2017.01.27 Thurman S.
17:50:25
+07'00'
Rev Date Description Approved
CUEL-QAL-Q-FRM-0009C R0
CUEL Limited Document Number:
CPO1601V-QAL-QA-REP-1702-01

Rev: 0 Date: 23 January 2017


Subcontractor Pre-
Assessment Report Page: 2 of 11

Contents
1) EXECUTIVE SUMMARY............................................................................................... 3
2) EXTERNAL AUDIT PROCESS..................................................................................... 3
2.1 Opening meeting ................................................................................................ 3
2.2 Scope of Pre-Assessment .................................................................................. 4
3) AUDIT FINDING AND RECOMMENDATION ............................................................... 4
3.1 Quality System Documentation .......................................................................... 4
3.2 Management Responsibilities ............................................................................. 4
3.3 Resource Management ...................................................................................... 5
3.4 Product Realization ............................................................................................ 5
3.5 Measurement, analysis and improvement .......................................................... 6
4) CONCLUSION AND RECOMMENDATION.................................................................. 6
ATTACHMENT 1: ISO CERTIFICATION ................................................................................ 7
ATTACHMENT 2: EMCO QUALITY MANUAL ....................................................................... 8
ATTACHMENT 3: EMCO ORGANIZATION CHART .............................................................. 9
ATTACHMENT 4: QC JOB DESCRIPTION .......................................................................... 10
ATTACHMENT 5: CALIBRATION EQUIPMENTS LIST ....................................................... 11

CUEL-QAL-Q-FRM-0009C R0
CUEL Limited Document Number:
CPO1601V-QAL-QA-REP-1702-01

Rev: 0 Date: 23 January 2017


Subcontractor Pre-
Assessment Report Page: 3 of 11

1) EXECUTIVE SUMMARY

This report refers to EMCO LTD (THAILAND) LTD. (EMCO) subcontractor quality pre-
assessment for CPOC project, at 543/6 Moo.1 Nongkham, Sriracha, Chonburi Thailand
20230, performed by CUEL personnel on 17 January 2017 at EMCO New Fabrication
Yard.

The pre-assessment scope was fabrication of Well head manifold and Duplex pipe spool
for CPOC – JDA BLOCK B-17-01 FIELD DEVELOPMENT PROJECT (PHASE 4).

EMCO has been certified Quality Management System in accordance with ISO
9001:2008 (Ref: Attachment 1)

Unfortunately, the EMCO new yard has no any fabrication activities, the facilities were
under construction and they also down sized to minimum office base manpower at that
time. By this pre-assessment, there are seven number of Quality Observations that were
raised which identify areas for potential improvement within the EMCO.

2) EXTERNAL AUDIT PROCESS

2.1 Opening meeting

A brief opening meeting was held at EMCO LTD (THAILAND) Ltd., 543/6 Moo.1
Nongkham, Sriracha, Chonburi Thailand 20230 Personnel directly involved
during the audit process are as follows:-

CUEL Ltd.

Auditor:-

Auditor – Tuskrichda K. (QA Engineer)

Technical Expert - Prasit S. (Inspection Services Manager)

Technical Expert - Tanwa S. (Construction Manager)

Technical Expert - Boonsong S. (Deputy Construction Engineering Manager)

EMCO LTD (THAILAND) Ltd.

Auditee’s:-

Deputy Managing Director (QMR) – Alongkorn Saiubol

Deputy Managing Director – Witthaya Jaipetch

QA/QC Manager – Saravoot Metah

CUEL-QAL-Q-FRM-0009C R0
CUEL Limited Document Number:
CPO1601V-QAL-QA-REP-1702-01

Rev: 0 Date: 23 January 2017


Subcontractor Pre-
Assessment Report Page: 4 of 11

2.2 Scope of Pre-Assessment


Applicable Elements of ISO 9001:2008 clause 4.0, 5.0, 6.0, 7.0 and 8.0;
Management Responsibility, Organizations, Product realization, Production and
service provision, Control of Nonconforming Product and Corrective and
Preventive action.
This audit was performed on a sampling base against ISO 9001:2008.

3) AUDIT FINDING AND RECOMMENDATION

3.1 Quality System Documentation


 Auditor reviewed EMCO Quality Manual (Ref: Attachment 2) and EMCO ISO
certificate. The Quality Manual was not updated to reflect EMCO New
Fabrication Yard. Anyhow, EMCO QMR plan to revise the Quality Manual
within end of January 2017 prior to Certify Body to perform surveillance audit
on 2 February 2017. The EMCO ISO certificate was still indicated old
fabrication yard location that not reflect to actual location.
Recommendation # 1
The Quality Manual should be updated and endorsed by EMCO Management.
The certify body will conduct the surveillance audit on 2 February 2017 at
EMCO site. Therefore, the ISO certificate should be revised and confirmed to
reflect actual location and scope of activities by certify body.

3.2 Management Responsibilities


 Auditor interviewed EMCO QMR about quality objectives of company, the 2016
quality objective was established but no actual production in 2016 due to
EMCO relocated to new fabrication yard so some KPI could not be measured
or monitor. The 2017 KPI was under set up and they informed auditor that they
will discussed in their Management Review in January 2017.
Recommendation # 2
EMCO top management should establish quality objectives of company
including needs to meet requirements for product relevant functions and level
within organization. The quality objectives shall be measurable and consistent
with the quality policy and project requirement. The monitoring and
measurement of KPI should be implemented.

 Auditor reviewed EMCO organization chart (Ref: Attachment 3), the


organization chart was reflect to existing EMCO manpower. However, the
EMCO organization chart for the project should be developed to meet project
requirement.
Recommendation # 3
The EMCO project organization chart should be developed and send to CUEL
for review prior to work package commencement.

CUEL-QAL-Q-FRM-0009C R0
CUEL Limited Document Number:
CPO1601V-QAL-QA-REP-1702-01

Rev: 0 Date: 23 January 2017


Subcontractor Pre-
Assessment Report Page: 5 of 11

3.3 Resource Management


 Human resource, auditor reviewed job description of QC inspector (Ref:
Attachment 4), the job description of QC inspector was not identify technical
competency.
Recommendation # 4
All personal performing work affecting conformity to product requirements shall
comply with project requirement. The necessary training for new personal shall
be planned and arranged to achieve necessary competence such as project
requirement, EMCO procedure, and etc. The training records shall be kept as
evidence.
 Infrastructure, the blasting & painting facilities were under construction (50 %
of progress at the time of audit) and plan to finish around end of February 2017.
Recommendation # 5
The blasting & painting facilities and also painting material storage shall be
established and maintained the infrastructure needed to achieve conformity to
product requirement, applicable statutory and regulatory requirement such as
department of industrial standard and safety.
 Infrastructure, the material warehousing facilities should be improve and
meeting the material management’s requirements.
Recommendation # 6
Welding consumable should be separately stored of each type and comply with
manufacturer recommendation. The holding time & temperature of welding
consumable shall comply with manufacturer recommendation. The records is
required as evidence for QC perform monitoring.
Coating Material should be stored to comply manufacturer recommendation.
The records is required as evidence for QC perform monitoring.

3.4 Product Realization


 Planning and product realization, EMCO informed that they will implement
approved documents for Inspection and test plans to ensure that customer
requirements are adequately understood, defined, and documented.
 Goods Receipt, upon receipt of free issue material from CUEL, EMCO
informed that they will perform physical and quantity checking to ensure that
the materials are complying with documents. After that, the direct material will
be kept in dedicated area. If the damaged material and over or shortage
material be found, the OS&D report will be prepared by EMCO and CUEL then
will be issued to concerned parties to take appropriate action.

CUEL-QAL-Q-FRM-0009C R0
CUEL Limited Document Number:
CPO1601V-QAL-QA-REP-1702-01

Rev: 0 Date: 23 January 2017


Subcontractor Pre-
Assessment Report Page: 6 of 11

 Calibration control, auditor reviewed Calibration Equipment’s List (Ref:


Attachment 5) which found that some certification of equipment were expired.
Recommendation # 7
The specific list of equipments for CPOC project is required to generate and
the equipments shall be calibrated within May 2017. The certificated of
calibration shall be kept as evidence.

3.5 Measurement, analysis and improvement


 Internal Audit, the EMCO internal audit plan to be conducted in May 2016 and
December 2016. The internal audits in May 2016 were not conducted at that
time and the most of internal audits in December 2016 were conducted as per
the plan. The result of internal audit will be discussed within Management
Review Meeting which will be conducted end of January 2017.
 Control of product nonconformity, EMCO informed that if non-conforming
materials be found then it will be identified and segregated.
 Corrective Action and Preventive Action, there was neither corrective action
nor preventive action raised in year 2016 because the plant and facilities was
under construction. Moreover, they also down sized to minimum manpower.

4) CONCLUSION AND RECOMMENDATION

This audit has not demonstrated that EMCO quality management systems is
reasonably effective, primarily causer is movement to new plant and facilities that
are still under development & completion. Moreover, they also down sized to
minimum manpower.
It is recommended that there should be a re-visit to EMCO after completion of their
facilities and management system. It is expected that the seven observations are
addressed in a timely manner by EMCO and their status are progressively
communicated to CUEL.

Signed

Tuskrichda Kunacheewa
QA Engineer
CUEL Limited.

CUEL-QAL-Q-FRM-0009C R0
CUEL Limited Document Number:
CPO1601V-QAL-QA-REP-1702-01

Rev: 0 Date: 23 January 2017


Subcontractor Pre-
Assessment Report Page: 7 of 11

ATTACHMENT 1: ISO CERTIFICATION

CUEL-QAL-Q-FRM-0009C R0
CUEL Limited Document Number:
CPO1601V-QAL-QA-REP-1702-01

Rev: 0 Date: 23 January 2017


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Assessment Report Page: 8 of 11

ATTACHMENT 2: EMCO QUALITY MANUAL

CUEL-QAL-Q-FRM-0009C R0
CUEL Limited Document Number:
CPO1601V-QAL-QA-REP-1702-01

Rev: 0 Date: 23 January 2017


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Assessment Report Page: 9 of 11

ATTACHMENT 3: EMCO ORGANIZATION CHART

CUEL-QAL-Q-FRM-0009C R0
CUEL Limited Document Number:
CPO1601V-QAL-QA-REP-1702-01

Rev: 0 Date: 23 January 2017


Subcontractor Pre-
Assessment Report Page: 10 of 11

ATTACHMENT 4: QC JOB DESCRIPTION

CUEL-QAL-Q-FRM-0009C R0
CUEL Limited Document Number:
CPO1601V-QAL-QA-REP-1702-01

Rev: 0 Date: 23 January 2017


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Assessment Report Page: 11 of 11

ATTACHMENT 5: CALIBRATION EQUIPMENTS LIST

CUEL-QAL-Q-FRM-0009C R0

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