Companies that have carried out successful quality revolutions have done so by taking some giant steps:
Juran on Leadership for Quality
• They undertook project-by-project improvement at a revolutionary pace. Those improvements provided impressive gains in product performance and in waste reduction, while arming the managers with experience and expertise in the improvement process
• They undertook to improve the quality-planning process in order to shut down that hatchery that was creating all those chronic waste problems
• They established strategic quality management by opening up the business plan to include planning for quality, and thereby made the revolution permanent”
Introduction
Quality management systems
Quality is defined as the totality of features and characteristics of a product or service that bear
on its ability to satisfy stated or implied needs. The definition encompasses such criteria as:
• Fitness for use
• Fitness for purpose
• Customer satisfaction
• Conformance to requirements.
The concept of quality as applied to projects covers both the functional integrity of the
asset hardware and systems handed-over to Operations at the end of ORP Phase 4Execute (i.e. the asset can be
started-up and operated in full
accordance with
project
requirements and
objectives) and the quality of the
project business
processes and the
way
in which they
are applied in pursuit of the
project’s HSE, cost and schedule
objectives.
The
opportunity/project quality management system and plan should account for
both
aspects of quality
assurance
1
.
The ISO-9000
The standards for quality management have wide applicability, but are written in a very
general way.
Not all the elements will apply to a particular project, but all projects shall have
QA input and a quality plan, as described later. Quality is established and sustained
by properly understanding the customer’s needs and the process and activities through
which they are to be satisfied. The critical activities are documented to clarify
responsibilities and records kept to allow the process to be audited. Most quality
assurance activities will be carried out by the line and can be summarised as:
• establishing what the customers’ needs are
• planning how to achieve them
• assessing what activities and products are critical
• allocating responsibilities and defining appropriate controls
• checking methods/results and correcting any mistakes
• keeping records to document all the above
• improvement
With respect to “customer’s needs”, it is clear that the (future) Asset Manager’s ”need” is
for asset functional integrity as discussed above. If the Asset Manager also has line
management accountability for all project outcomes then the “need” will also encompass
project HSE, cost and schedule outcomes in line with project objectives. If the position
does not have these other accountabilities then another appropriate line manager will have
this “need”.
The Project Quality Plan (Quality Management System)
The Quality Plan should be built around the ISO 9000 model shown in Figure 4.5.1.
To minimize paperwork, information contained in other documents should be referenced
and summarized rather than reproduced in the plan.
Management Framework
Policy
Determine and document the project’s policy with respect to quality. (What the latter’s
priority is compared to cost and schedule will have an impact on the policy statement).
Objectives
Set out the quality objectives in measurable terms. (e.g. throughput, uptimes, product
specification, operations philosophy etc.)
Strategies
Define the key documents controlling the project (Figure 4.5.2) and describe the strategies that
will be used to obtain the required policy and objectives outcomes.
Organization
Illustrate and describe the organizational structure and broad organizational responsibilities for quality.
Process Management
Responsibilities/Processes/Procedures/Standards
Identify critical systems and activities and set out the most important individual
responsibilities for their quality assurance.
A system or equipment item will be critical if it safeguards the integrity of the facility or
impacts upon its ability to meet its performance objectives. An activity can be critical by
reason of its importance to the success of the project or through risks associated with it.
For instance an activity will be safety-critical if it involves identifying, assessing,
controlling or recovering from a hazard – examples are designing a pipeline and building
that pipeline.
Map and describe the quality interfaces within and between the main project functions
(e.g. design, procurement, construction) and departments (e.g. Petroleum Engineering,
Well Engineering, Field Engineering, Operations, Contractors) and how these will be
managed.
The critical activities can be described in a table like Figure 4.5.3
4
. It should include
details as to responsibilities, standards, methods of verification and records. Activities
should be controlled wherever possible by reference to specific SIEP or OU documents
which define the standard to which it is to be performed.
The project engineer must confirm the activity is within the competence of the
individuals or team doing it, or whether any special training or assistance is required.
Those responsible for activities should avoid imposing excessive controls which infringe
on the area of competence of the staff involved. Formal QA requires that records are kept
verifying the completion of critical activities.
Increasingly, contractors
and vendors are required
to retain much of the
quality documentation for
their product (e.g. welding
radiographs) and their
responsibilities in this
region must be spelled-out
in contracts and purchase
orders. In the past, the
amount of QA
documentation required
from contractors/vendors
has been excessive and
costly and attention is still
needed by project teams
to minimising this
documentation whilst
ensuring that important
quality facets are not
overlooked.
To control suppliers and contractors the table in Figure 4.5.5 is useful to allocate
responsibilities and record the standards to be used.
Procedures and other manuals must be properly filed, and ‘controlled’ up-to-date copies distributed to the relevant departments and staff.
Assurance
Monitor
Describe how the quality of deliverables will be monitored.
For critical activities involving interfaces, project-specific procedures may be necessary.
To avoid later problems, monitoring and checking should be concentrated in the early
stages of an activity. Checking can be seen to have negative connotations, but on the
positive side, it is by monitoring achievement that senior engineers and managers show
they are concerned with the results of the work. People need to know their work is
important enough to be checked, and supervisors should treat checking and feedback as
important activities; almost as important as planning.
Audit and review
Develop and illustrate the Verification Plan, i.e. the audits and reviews that will be
carried out to verify the quality and effectiveness of the Quality Assurance Process,
their timing, responsibilities for organising them, undertaking them and closing-out
any actions. Describe the Action Register that records all actions arising from execution
of the Verification Plan and describe how actions will be closed-out.
Improvement
Describe the process for improvement of the Quality Management System.
Quality Assurance of Design
Basic quality objectives
Before a design can be started, key parameters and objectives must be defined in the
overall project specification or field development plan and agreed with the future operator.
They are as follows:
• performance requirements
e.g. throughput, product and waste-stream specifications
• production availability
• sustainable development, environment and
statutory requirements
• sustainable development, environment and safety
• operability and maintainability
• field or plant life expectancy
• extendibility, flexibility
• compatibility with existing facilities
Specification control
Equipment and materials should be specified in accordance with Group standards
(DEPs), Company standards or project specifications. Where manufacturer’s standards
allow lower quality of design or manufacture than specified in the Company or Group
standards, the lifetime cost of accepting such standards should be evaluated before being
considered for acceptance.
Quality requirements in a specification include the following:
• functional specification of performance, operational/maintenance requirements,
environmental conditions
• regulatory codes and standards
• essential additional QC requirements
• Group standards
• documentation requirements
• submission of quality plan
Specification control consists of assuring that each specification:
• is complete and has been verified
• complies with other specifications
• is compatible with interfacing specifications
• contains the necessary quality requirements
All specifications and standards shall be rigorously vetted to ensure their applicability to
the product in mind. Excessive specification is costly, leads to delays and does not ensure
that the product is fit for the purpose intended. Deviations from specification shall be
controlled, and a deviation register kept for handover to the asset holder.
Interface control
Major interfaces exist between:
• disciplines
• contractors
• structures
• modules
• projects
• operations
• Users and Sponsors
It is important to:
• establish controls
• clearly define work scopes
• use common design specifications
• document major interfaces
• use interface control drawings
• nominate responsible individuals
A Document Distribution Matrix should be prepared early in the project, to ensure
drawings, specifications etc. are distributed to the correct people as they are prepared for
review and if necessary, approval
8
. This ensures interfacing disciplines receive the necessary
information in time for proper review and prevents operational staff from being
confronted with batches of drawings or completed designs at a late stage in the project.
Engineering change controls
Change can only be controlled when there is a clear definition of the base-line. As the
project moves from concept to detailed design and construction, the data which is ‘frozen’
must be agreed with the future asset holder and clearly defined. The current agreed
configuration should be summarised and maintained in a controlled document such as a
Design Data Book. Each parameter should be formally agreed with the future asset
holder, and the document then represents the design ‘base-line’ for future change control.
A procedure is required whereby proposed changes to baseline documentation are
carefully reviewed to establish all resultant effects on other designers/disciplines before
approval to proceed is given. Proposed changes which would modify a basic design
concept, have HSE implications, increase cost or adversely affect schedule must be
referred to management for authorisation.
Reliability, Operability, Maintainability (ROM) engineering
In order to identify and, where possible, quantify the consequences of quality failures
and to allocate QA priorities, ROM engineering employs various analytical techniques:
• HAZOP (Hazard and Operability studies)
• FMEA (Failure Modes and Effects Analysis)
• FTA (Fault Tree Analysis)
• ETA (Event Tree Analysis)
• RA (Risk Analysis)
Reliability
Derive and include appropriate reliability targets in the specifications for process systems,
service systems and safety systems. For large projects, an availability study should be
considered. For major equipment items, the provision of spare items or capacity may be
justified by comparing the total installed cost of the spare with the revenue generated by
its effect on overall plant availability.
Operability
The operation of an installation may be carried out from a central control room with
supplementary local controls. Operability must then be considered for both locations.
Ensure controls are designed to minimise the chances of mal-operation with harmful
consequences, particularly with the emergency shutdown system. Consider variations in operating conditions (e.g. turn down ratios) and transient conditions. Prior to start-up,
prepare detailed operating procedures and undertake operator training.
Maintainability
Life-cycle operating cost estimates should be made in order to check the benefits of
investing in computer-aided operations or the provision of additional lifting equipment
to aid future maintenance.
In restricted layouts such as offshore platforms, studies should be carried out to confirm
the routes and methods by which running equipment items and large valves etc. can
be removed for off-site maintenance.
Design review
Design reviews include:
• discipline and inter-disciplinary checks carried out to confirm progress, verify
completed work and identify problem areas;
• formal reviews carried-out for specific technical purposes e.g. hazop, hazard analysis;
• milestone reviews carried out by experienced and independent engineers to confirm
the project can advance from one stage to the next e.g. from concept to detailed
design or from design to construction. (The VAR Process (2.5.3) provides part of
this requirement but additional reviews may be necessary.)
Design contractor appraisal and evaluation
Appraise prospective design contractors before inviting tenders. Appraisal should include
the contractor’s:
• experience
• track record
• quality system
• safety record
A quality plan shall be included in every design contract. Specify requirements for the
quality system and plan and incorporate the agreed quality plan into the contract.
Software
Software of all kinds should be formally validated before use. This applies to proprietary
applications used for engineering calculations and to ‘tailored’ applications for the
control of compressors, shut-down systems etc. Such programmable systems should be
subject to configuration and change control during the operational phase.
The use of Computer-Aided Drafting systems (CAD) by contractors requires specialist
training of the staff, and should be controlled by proper access authority codes and
procedure manuals. This is essential to ensure the integrity of design data and the
accuracy of clash-checking routines, calculations of weights and centres of gravity etc.
Weight control
11
For offshore projects, weight targets should be set early in the design in order to establish
allowable tolerances. As information becomes available, the trends can be used to assess
the significance of deviations and corrective action taken.
As built drawings
The final outcome of the engineering process must be accurate as-built drawings and the
process for obtaining these should be rigorously reviewed and monitored.
Procurement Quality Assurance
The contents of a typical quality plan for procurement by a project team or engineering
contractor are given in DEP 82.00.10.10.
Supplier appraisal
Restrict the tender list to suppliers whose capability has been previously established with
regard to:
• quality systems
• technical know-how
• production capacity/capabilities
• financial status
• safety record
All suppliers on a tender list should be operating a satisfactory quality system, preferably
in accordance with the appropriate ISO-9000 series standard.
Procurement control
Ensure that tender documents and purchase orders are complete. A supplier quality plan
should be embodied in each major purchase order. The QA and QC inspection
requirements must be incorporated in purchase orders and match the criticality of the
items to be supplied.
Quality Control (QC)
Suppliers must take full responsibility for the QC of their products. Supplier
performance may be monitored through any or all of the following activities:
• periodic evaluation of the quality system
• surveillance by resident or visiting inspectors
• witnessing of inspection and tests
• review of QC documentation
• audit of QC procedures
Materials control (procurement)
Ensure all material and equipment is:
• properly identified
• verified as conforming to specification
• properly documented
• properly preserved and stored
Appraisal and Use of Inspection Contractors
Inspection contractors may be engaged to verify the quality of supplier products.
The project team should establish whether the contractor has the competence, resources
and integrity to fulfil the task. Individual inspectors should be interviewed and tested.
They should be given up to date copies of the purchase specifications and preferably
attend preinspection meetings with the supplier to ensure that engineer, supplier and
inspector are familiar with the requirements. Inspectors must be kept up to date with all
changes to drawings, specifications etc.
Inwards Goods Inspection
Materials and equipment will need to be checked for any shortages or damage when they
arrive at site.
Construction & Commissioning Quality Assurance
Construction management
Quality management of construction should be based on the following contract strategy:
• the job specification includes QA requirements;
• the tender list is restricted to formally approved contractors with satisfactory quality systems;
• tenderers submit quality plans with the tender;
• a Company-approved quality plan is included in the contract;
• contractor’s QA is self-implemented but monitored by the project team.
When due to local circumstances it is impractical to qualify contractors in this way, each
tender should be weighted according to the assessment of the additional surveillance
required to provide assurance.
Construction material control
Ensure that:
• material received is properly identified, undamaged and properly documented;
• stored material is adequately protected and its identification clear;
• material released for construction is as specified and in good condition;
• preservation procedures are applied to maintain material identity and quality.
Inspection Contractor Appraisal
Inspection contractors may be engaged to verify the quality of construction.
The procedures herein should be used to establish whether the contractor has the
competence, resources and integrity to fulfil the task.
Individual inspectors offered should be interviewed and tested for competence.
Handover to Commissioning
On handover of each completed system or subsystem to Commissioning a Construction
dossier should have been compiled that includes all information on that system (e.g. as-built
drawings, test results, Factory Acceptance Test outcomes, vendor documents and data etc.)
Commissioning control
It is necessary to verify that the installation:
• has been constructed as designed
• meets its performance specification
• is safe and reliable for operation
• design limits have not been violated
This is particularly important when modules constructed at a number of locations are
brought together on site. Mechanical completion of systems should be confirmed by the
completion of checklists prior to handing the system over for commissioning.
Incomplete minor items must be recorded on punch-lists. Commissioning must be
executed using pre-agreed procedures and checklists.
On handover to Operations for Start-up, the package of information transferred into the
operations records will include:
• handover certificates and completed checksheets
• agreed punchlists of minor items to be completed after handover
• records of equipment running trials
A QA check on the following is required:
• completeness of as built drawings, records and specifications
• availability of vendor documentation for all equipment
• operating and maintenance procedures against experience gained during commissioning
Quality Assurance of Other Business Processes
The previous sections have all dealt with realising the functional integrity of the asset
hardware i.e. the quality of the deliverables from the Work Processes. In addition there is
a need to verify the appropriateness and the quality of the application of the Strategic
Processes
14
and the Control Processes
15
.
An overall, high-level verification that the processes are in place and are being applied
throughout ORP Phases 1-3 is provided by way of the SIEP Value Assurance Process
16
.
More detailed examination of the quality of the application of the processes is provided
by project reviews and audits of particular processes. Project reviews examine the quality
and appropriateness of the outcomes of the processes (e.g. the Project Execution Plan, cost
estimate, schedule, safety plan, etc.) Audits examine whether the processes are being
followed properly (or at all!) while the final deliverable of the process is being developed
17
.
The project Verification Plan should include not only reviews/audits directed towards the
Work (Technical) Processes but also reviews/audits aimed at the key Strategic and Control
Processes and their outcomes.
Benchmarking
18
The use of benchmarking in opportunity realisation is critical in assuring the quality of
business processes, decision making and cost and schedule estimating and, if possible,
improving on these.
Benchmarking is seen as a vital aspect both of quality assurance of business processes and
their outcomes and of the improvement process and is linked to the Value Assurance
Review (VAR) Process. Figure 4.5.5 provides a guideline on benchmarking requirements
for three project cost tranches, with Tranche III requirements being mandatory as part of
the VAR process.
“Internal Metrics” means a comparison of project cost and schedule estimates with the
Company’s own historic
data base.
“External Metrics” means
a comparison of project
cost and schedule
estimates with external
sources.
“Process” means a
comparison of the quality
of application of the
Opportunity Realisation
Process with historic
industry standards.
Tranche I – Projects costing less than 20MM$ (US)
These projects are seen as benefiting from the use of internal metrics but not necessarily
from external metrics. The above guidelines are simply meant to convey that external
metrics are not a requirement for the VAR stage gate. Project complexity, relative
importance of the project for the OU, and other business factors may lead an Opportunity
or OU toward seeking external metrics. The principle of limited benchmarking is applied
to insure that the relative competitiveness of the project is known and learnings obtained
but efforts should be kept to a reasonable level.
Tranche II – Projects costing between 20 to 100MM$ (US)
Projects in this cost range require that judgement must be applied with respect to choosing
to use only internal metrics or to also use external metrics. In general that judgement
should include the consideration of a number of factors. For example, routine projects in
this cost range, especially those in the lower end, should generally rely on internal metrics.
However, a representative sampling of such projects should periodically be evaluated by
the OU, using external metrics. (This would tend to insure that the OU and the
respective VAR team are not falling into a trap of being too familiar or comfortable with
the status quo.) Additionally, a higher percentage of such routine projects in the upper
end of the cost range should periodically use external metrics. Furthermore, non-routine
projects, e.g. projects using innovative technology, and projects of a critical nature (e.g.
project performance will have a critical impact on further participation in a development),
should elect to use external metrics. This would be valuable to both the review team and
the opportunity/project team in assessing the planning related to cost and schedule and,
to a degree, the risks associated with the innovation.
Tranche III – Projects costing over 100MM$ (US)
Projects in the cost range are expected to use external metrics. Projects at this cost level
follow the principle of full benchmarking. This stresses the importance of having a
thorough understanding of the relative performance and the sharing of project learnings.