01 E00-QSE-G001 - Project Quality Plan

DouNo:E00-QSE-001
Project Quality Plan
Ref. No:
Page:
B
1/59
REV. NO
DATE
REV. NO
PREPARATION DEPT.
Q-HSE GROUP
DESCRIPTION
PREPN
PREPN
REVIEW
D. K. NAM
W. H. Park
REVIEW
REVIEW
REVIEW
APPROVAL
APPROVAL
J. H. Yoon
This Document is the property of POSCO Engineering Company. Therefore, it shall not be released to
any third party without permission of an authorized personnel of the POSCO Engineering Company.
POSCO ENGINEERING
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Contents
Chapter
Description
Chapter 1
1.1
1.2
Chapter 2
2.1
2.2
2.3
Chapter 3
Chapter 4
4.1
4.2
Chapter 5
5.1
5.2
5.3
5.4
5.5
5.6
Chapter 6
6.1
6.2
6.3
6.4
Chapter 7
7.1
7.2
7.3
7.4
7.5
7.6
Chapter 8
8.1
8.2
8.3
8.4
8.5
Page
Policy and Objectives

Project Quality Policy
Project Quality Objectives
Introduction
Scope
Project Overview
Normative Reference
Terms and Definitions
Quality Management System
Overview of the QMS
QMS Documentation
Management Responsibility
Management Commitment
Customer Focus
Quality Policy Control
Quality System Planning
Responsibility, Authority & Communication
Management Review
Resource Management
Provision of Resources
Human Resources
Infrastructure
Work Environment
Product Realization
Planning of Product Realization
Customer-Related Processes
Design and Development
Procurement Control
Provision of Construction and Service
Monitoring and Measuring Equipment
Measurement, Analysis and Improvement
General
Monitoring and Measurement
Nonconforming Product
Analysis of Data
Improvement
6
9
16
26
31
47
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Chapter 1, Policy and Objectives

1.1 Project Quality Policy
The Quality Policy for the NOKIA HANOI OPERATIONS FACTORY Project (Hereinafter,
referred as NOKIA Project) was established and announced to all participants of the
project by the General Superintendent of Process & Energy Division, as shown below;
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1.2 Project Quality Objectives

The quality objectives with ultimate goals for the NOKIA Project are suggested by the Project
Director as listed below;
EHS Goal : Zero penalty
Project Management : 5% early completion

Design & Engineering : Minimize design revisions by meeting the
project requirements, local/international standard and cost effective
and optimum designs
Procurement and Quality : 10% reduction of NCRs
Construction Activity : 10% reduction of NDE fails
To achieve the project quality objectives, each discipline of the project organization has
initially identified the Key Performance Indicators (KPIs) under the consideration of current
status of its organizational competency and on the basis of previous project experiences.
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Chapter 2, Introduction
2.1 Scope
This document describes a quality plan for the NOKIA Project to be operated by the project
organization to achieve the project quality policy and objectives, which shall comply with the
requirements of ISO 9001:2008 standard and the Contract documents.
This project quality plan (Hereinafter, be referred as PQP) shall be applied to all
participants and interesting parties who involved to the quality-related activities for the
NOKIA Project in the processes of; project management, engineering and design,
procurement, inspection, QA/QC, construction, test & commissioning, and any other
supportive activities.
2.2 Project Overview
The NOKIA Project is a Design and Build project with following scope of works;
Engineering, Procurement, & Construction (EPC)

Pre-commissioning, commissioning and start-up operation
Acquiring initial acceptance
Training and other activities/services required to achieve all guarantee
2.3 Normative Reference
QMM-001 Rev.6, Quality Management Manual

ISO 9001;2008, Quality Management Systems requirements
ITB Documents and Project Specifications
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Chapter 3, Terms and Definitions

The terms and definitions used in this PQP are provided to make them easier and clearer to
understand and are not always consistent with those used in the other document.
Auditor
A person who is qualified and authorized to perform an internal audit, and whose
qualification has been verified in accordance with the relevant process
Capability
Capability of an organization, a system, or a process that intends to realize a product
meeting with the requirements
Certification
The act of proving, through documents, the qualification of personnel, processes, or items on
the basis of the specified requirements
Corrective
An action taken to correct any quality violations and prevent their recurrence
Action
Defect
Non-fulfillment of the requirements related with the intended or stipulated uses
Group
An organizational unit that performs a project and administrative works
Design
Input
Standards, variables, grounds or other requirements that become the base of final design
Design
Output
Results of the design in the type of drawings and specifications that clearly state the
technical requirements of structures, systems, components/equipment, and products
Design
Review
An official, documented, generic, and systematic investigation of a design to determine
whether it meets with design requirements, to identify any problems, and to propose
solutions; evaluation of design requirements and design capability
Design
Verification
A process of verifying the design through testing, or alternate calculation or independent
review for the purpose of confirming the accuracy of original calculation and design
processes
Effectiveness
Degree to which the planned results are achieved through planned activities
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Efficiency
Relationship between results achieved and resources used
Grade
A scope or a ranking given to each different quality requirement for the product, process, or
system that is used for the same purposes
Inspection
All the activities of checking one or more properties of a product or a service through
measurement, survey, and test, and then, judging whether the product or the service meets
with the stipulated requirements
Inspector
A person who is properly trained on the basis of the relevant process, and who is qualified to
inspect all the quality-related works of a product
Internal
Audit
Systematic and independent investigation to judge whether all relevant activities influencing
the quality/environment/safety management systems and their results are in accordance with
the plan, and if the plan is effectively performed and suitable for achieving the objectives
Nonconformity
Non-fulfillment of requirements
Objective
Data proving the existence of things or facts
Evidence
Preventive
Action
An action taken to eliminate causes of potential nonconformities or other undesirable
potential situations
Process
A set of activities converting input into output mutually related or interact with each other
Qualification
Characteristics or capability obtained through education or experience, to suit the made out
requirements to successfully perform the required functions
Quality
The degree to which a set of properties meets with requirements
Quality
Assurance
All the planned and systematic activities necessary for securing proper trust that a product or
a service will meet with the given quality requirements
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Quality
Operating techniques and activities to meet with quality requirements
Control
Record
A completed document that specifies an achieved result, or objectively demonstrates the
evidence of performance
Repair
An action taken to make nonconforming products suitable for an intended use
Review
An action that is performed to determine the suitability, fulfillment, and effectiveness of the
relevant topic for the achievement of the made out objective
Rework
An action that is taken to make nonconforming products meet with requirements
Scrap
The action of scrapping nonconforming products to prevent them from being used for the
originally intended uses
Special
Process
A process for which the result of a work greatly depends on process control, a workers
ability, and that requires a work shall be carried out in accordance with the approved
processes in order to guarantee the quality of final product (i.e., welding, NDE, PWHT, etc)
System
A set of elements that are mutually related or interact with each other
Test
An action of checking whether the performance of an item meets with relevant requirements,
under a specific physical and chemical environment or driving conditions
Traceability
The ability to trace the history, application or location of the areas of consideration
Validation
An action of confirming through objective evidences that the requirements for particularly
intended uses or applications are fulfilled
Verification
An action of proving, confirming, and documenting whether a product, a process, a
document, or an activity meets with the stipulated requirements
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Chapter 4, Quality Management System

4.1 Overview of the QMS
4.1.1 ISO 9001 Certification
1) In February 1995, the Quality Management System of POSCO Engineering Co., Ltd.
(Hereinafter, referred as the Company) was initially certified, and it has been continually
improved and re-certified in accordance with the extension of business fields.
2) The Companys Quality Management System (Hereinafter, referred as QMS) shall meet
the requirements of ISO 9001:2008, and the current version was certified by the British
Standard Institute (BSI) on July 13th, 2010 for;
Project management, engineering and design, procurement, construction
supervision services, construction management services and facilities
maintenance including site construction activities for civil, building and housing,
industrial plants and environmental facilities works. The provision of
environmental and traffic effect assessment services. The design and
manufacture of railway interlocking system, signal facilities, air-handling units,
pressure vessels, steel structures and electric instrument panels.
4.1.2 OMS Overview
1) The QMS stipulates the processes for management activities necessary for supplying
the products/services meeting customer requirements; provision of resources; realization
of products; measurement; analysis; and continual improvement. It shall guarantee the
management of the process, which has an influence on the conformity of products, even
in the event it is outsourced.
2) To meet customer requirements and continually improve customer satisfaction and its
effectiveness, the QMS employs the method of process approach.
3) The QMS shall be applied to all processes for the products/services being provided by
the Company, including sales, project management, design and engineering, purchasing,
inspection, construction activities, maintenance, and after-sales services.
4) The QMS documents are opened to all employees by posting them on company BPM
Portal website (http//bpm.poscoen.com), and it shall be immediately revised when
necessary for continual improvement and other management purposes.
5) In the event that any parts of the QMS document are revised, the latest edition shall be
immediately posted to the BPM Portal, and the contents of the revisions shall be clearly
announced to all employees.
4.2 QMS Documentation
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4.2.1 QMS Structure

1) The Companys QMS is documented by following levels.
Level (I): Quality Management Manual

The Quality Management Manual shall include the basic policy and the requirements of
the QMS in accordance with ISO 9001 and other related laws and regulations.
Level (II): Business Processes
These processes specify detailed procedure and guideline of each division related to
the QMS and comprises the following four (4) Mega Processes.
Management planning
Business Management
Project Implementation
Head Office/Division Work
Level (III): Work Instructions
Technical standard composed of work instructions, standards and guidelines which
describe working methods for each function in detail.
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2) In addition to documented QMS, following IT systems are being operated to ensure

effective implementation of the quality system requirements.
PDCS : Project Document Collaboration System
PMIS : Project Information Management System
EDMS : Engineering Document Management System
SHIMS : Shop Inspection Management System
HRMS : Human Resource Management System
e-Approval and other systems

3) As an example, following picture shows the configuration of PDCS/EDMS systems which
is developed for the purposes of the control of design, engineering processes and the
handover of as-built project records.
4.2.2 Project Quality Plan
1) Project Quality Manager (Hereinafter, referred as PQM) shall have overall responsibility
for establishing and maintaining the Project Quality Plan (PQP).
2) This PQP was established in accordance with the requirements of ISO9001;2008, the
Contract, and the Quality Management Manual (Hereinafter, referred as QMM).
3) This PQP shall be reviewed by the Leader of Quality Management Group and approved
by the Project Manager (Hereinafter, referred as PM).
4) Once this PQP is approved for issuance or revision, it shall be immediately distributed to
all the members of the project organization and interested parties so that they shall apply
relevant sections of the PQP for their scope of work.
5) Over the life of the Project, the PQM shall be responsible for establishing, controlling,
and maintaining this PQP and the QA/QC documents.
4.2.3 Document Control
1) General Requirements
(1) Documents shall include; records that are made for the communication of information,
evidence of conformities, sharing of knowledge; specifications; procedures; drawings;
reports; and codes & standards.
(2) The media of the document produced during project execution will be paper, magnetic,
electronic or optical computer disks, photos, samples, or a combination of the above.
As a rule, all documents shall be managed in the type of e-documents.
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(3) Documents i.e. technical documents, correspondences, records, etc shall be prepared,
distributed, maintained, and controlled in accordance with following requirements;
Approving documents for adequacy prior to issue,

Reviewing and updating as necessary and re-approving the documents,
Identifying changes and the latest revision of documents,
Relevant versions are available or retrievable at the points of use,
Ensuring that the documents remain legible and readily identifiable,
Identifying external documents and controlling their distribution,
Preventing unintended use of any parts of obsolete documents, and
Applying suitable identification to them if they are retained for any purpose.
(4) If an old documents and obsolete documents are needed to be stored for the purpose of
statutory information, knowledge preservation or other shall be properly identified,
stored and controlled in order not to be used for project execution.
(5) Unless otherwise designated, any change in an approved document shall be reviewed
and approved by the organization that has reviewed and approved for original document
through same procedure as it was applied for the original one.
(6) However, a trivial change resulting from the need to correct error in editing or spelling
does not be subject to the same review and approval procedure as for the first edition.
2) Control of QMS Documents
(1) QMS documents such as quality management manual, company business processes,
standard procedures shall be posted in the BPM Portal (http//bpm.poscoen.com) and
maintained by the leading Group of the BPM Portal.
(2) The documents which are directly related to quality management system shall be
issued, maintained and controlled by QA Manager in the Group of Quality Management.
(3) The responsibility for the control of other documents shall be in accordance with
relevant regulations and the requirements stipulated in quality management manual.
3) Control of Project Documents
(1) PM shall stipulate the requirements and procedures for control of project documents in
relevant section of the Project Execution Plan in order to systematically classify, store,
and maintain them to be produced during the execution period of the Project.
(2) In principle, the project documents shall be controlled through the Project Document
Collaboration System (PDCS) while a project is being performed, and then transferred
to the Enterprise Document Management System (EDMS).
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(3) In the event that project documents cannot be controlled by the PDCS, the PM shall
establish a separate procedure for document control.
(4) Project document that is published during project execution includes i) the Technical
Documents i.e. drawings, specifications, calculation sheets, technical manuals, working
standards, vendor printers, etc, and ii) the Administrative Documents.
(5) Lead Engineer of each discipline shall control the Technical Documents i.e. drawings,
specifications, calculation sheets, technical manuals, working standards, vendor
printers, etc to be produced by his/her discipline.
(6) Project Coordinator shall control the Administrative Documents i.e. contract documents,
bid proposal documents, customers document etc.
(7) QA Manager shall periodically monitor if the project documents are properly distributed,
maintained, and controlled in accordance with relevant business processes (BPM) and
the Contract requirements.
(8) Administrative documents shall be issued and approved in accordance with company
regulation for authorization, and maintained in the e-approval system.
(9) The Lead of each discipline shall ensure that latest version of project documents shall
be available and controlled at the point of use.
4.2.4 Control of Quality Records
(1) Quality record is a document that specifies achieved results or becomes the evidence
of an activity undertaken i.e. review, evaluation, qualification, inspection, test, etc, and
it can be used for providing traceability and evidence of corrective/preventive actions.
(2) Quality record shall be maintained in a proper manner enabling them to be easily read,
identified, and retrieved. The signatures of the authorized personnel and the issue date
shall be described on it.
(3) To prevent unauthorized modification or change a pencil or correction tape shall not be
used for correcting the quality record. In the event of a correction, correction date and
the signature of corrector and approver shall be specified in it.
(4) Quality record can be managed in its original type or in an electronic medium, such as
a disk or a tape. In the event that it is electronically stored, a measure for damage
prevention and decoding system shall be prepared.
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(5) Quality record shall be stored in the area where environmental conditioning and
security system are properly provided for preventing any deterioration, damage, or
loss.
(6) In the event that a quality record was lost, contaminated, or damaged while it has been
stored, it shall be recovered properly i.e. tracing original data.
(7) For easy identification and retrieval, quality records shall be listed, indexed, and
stapled in accordance with relevant filing codes.
2)
Responsibilities
(1) PM shall be responsible for specifying the requirements and procedures for control of
the quality records in relevant section of the Project Execution Plan for systematical
classification, identification and storage of the quality records.
(2) Lead Engineer of each discipline shall be responsible for the control of quality records
which are generated during his/her design and engineering activity i.e. design inputs,
applicable codes & standards, design review results, design change notices, etc.
(3) Project Coordinator shall be responsible for the control of administrative records i.e.
correspondences, meeting minutes, mails, etc.
(4) QA Manager shall be responsible for periodic monitoring of the control status of quality
records if they are properly indentified, filed, indexed, and maintained.
3) Handling of Quality Records

(1) When the project is completed, the PM shall transfer all of the quality records to the
Customer. Although a record does not need to be transferred, it shall be stored and
maintained with proper conditions for the designated period.
(2) In the event that the Customer or its representative requests to peruse the quality
records of the Contract requirement, the PM shall provide the Customer of the access
to the relevant quality records of the project.
(3) PM shall establish a retention period for each type of quality records, and prepare and
transfer electronic files to Library Manager throughout the EDMS system.
(4) Library Manager shall safely store, maintain, and preserve the quality records under
proper environmental conditions.
(5) Library Manager shall periodically classify the quality records whose retention periods
become expiration, and shall scrap them or extend the retention period after discussion
with responsible organization for the records.
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4.2.5 References
1
Company Standards
Document No
Document Title
QMM-001, Section 4.2.3

QMM-001, Section 4.2.4
BPM [D00-6100-010]
BPM [D00-6100-110]
BPM [C30-3000-010/20]
BPM [D00-8200-030]
BPM [D00-4100-150]
IT System
IT System
IT System
Control of Document
Control of Record
Control of QSE Manuals
Creation/Revision of Business Process
Preparation of Project Turnover Document
Transfer of Project Documents
Incoming/Outgoing of Documents
Business Process Management System (BPM)
Project Document Collaboration System (PDCS)
Engineering Document Management System (EMDS)
Project Procedures
E30-PMP-G001
E30-PMP-G002
E30-PMP-G006
E30-PMP-G007
E30-PMP-G008
E30-PMP-G009
E30-PMP-G010
E00-QSE-G009
Project Execution Plan

Project Coordination Procedure
Document Control Procedure
Document Numbering Procedure
Document Review and Approval Procedure
Vendor Print Control Procedure
Correspondences Procedure
Quality Record Control Procedure
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Chapter 5, Management Responsibility

5.1 Management Commitment
The Chief of Industrial Plant Division recognizes that ; i) the importance of the works that
are met with the customer requirements, laws, and regulations, and encouraging
communication among project participants, providing motivation, and promoting project
objectives; ii) establishes and publishes the Project Quality Policy, and ensures the
establishment of the Project Quality Objectives; iii) ensures the suitability, fulfillment, and
effectiveness of this PQP periodically through performing the management review, and; iv)
ensures the availability of organizational structure and resources that are necessary for the
management and improvement of the level of project quality.
5.2 Customer Focus
The Chief of Industrial Plant Division identifies and determines the customer requirements
under the consideration of the characteristics, competitiveness and social properties of the
products and services to be produced by the project organization, and operate the PQP for
the aim of enhancing customer satisfaction.
5.3 Quality Policy Control
5.3.1
The CEO establishes the Quality Policy of company level on the basis of the
ISO 9001 requirements, and announces to all employees and interested parties.
5.3.2
The Chief of Industrial Plant Division each business establishes the Project
Quality Policy for the projects on the basis of the company level quality policy.
5.3.3
If there is any significant change in managing environment or any major

deficiency in the PQM, the Project Quality Policy shall be reviewed, and revised
if necessary.
5.4 Quality System Planning

5.4.1
Quality Objectives
1) At the beginning of each year, the CEO establishes the Quality Safety & Environmental
(QSE) Objectives as a part of annual operating plan, and announces to all employees.
2) On the basis of the company level objectives, the Chief of each Group and PM/SM shall
establish the QSE objectives for their organization, reflecting the following subjects, and
shall document and implement the objectives;
(1) Vision, medium/long-term man strategies and annual operating plan
(2) Key performance indicators (KPI) of the organization
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(3) Level of customers and interested parties satisfaction on products/services

(4) Results and feedback of management review on last year
(5) Other quality issues defined as necessary by relevant organization
3) The QSE Objectives shall be measurable and consistent with the Quality Policy, and the
achievement of the objectives shall be evaluated periodically and countermeasures shall
be prepared and undertaken if an objective is delayed or did not be achieved.
5.4.2
QMS Planning
1) Each Group Leader and PM shall do their best for achieving the QSE Objectives for the
Company and the Project that have been established by their organization.
2) The Leader of Quality Management shall review the suitability of the QMS regularly. In
the event that there is any significant change in managing environment or any major
deficiency in the QMS, and it shall be revised if it is necessary.
3) If a part of the QMS is revised, the PM shall review the PQP if there are influences from
QMS revision, and shall revise the relevant part of the PQP if necessary.
4) PQM shall review the status of project quality when there is any serious complaint from
the Customer, critical problem, or any major quality deficiency found during monitoring of
project quality, and if necessary the PQP shall be revised.
5) Any changes or revisions to the PQP shall be planned and implemented within the range
of that the integrity of the QMS and the project quality are maintained.
5.4.3
1
References
Company Standards
Document No
Document Title
QMM-001, Section 5.4

BPM [D00-6100-060]
BPM [D00-6100-050]
Quality Objectives
QSE Management
QSE Objectives Control
Project Procedures
E30-PMP-G001
E00-QSE-G004

QSE Policy & Objectives Control Procedure
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5.5 Responsibility, Authority, and Communication

5.5.1
General
1) Upon award of a project, the Chief of Division appoints the PM.

2) The PM shall establish a project organization, and request the Group Leaders to assign
project engineers for execution of their scope of works.
3) Group Leaders shall assign project engineer from appropriate person for execution of the
Project engineer or the person who has license or qualification when it is mandatory.
4) PM shall approve the project members recommended by each Group Leader when their
knowledge, experiences, or qualifications are applicable to the works.
5) On the basis of following basic structure, the Project Coordinator shall develop a project
organization chart that indicates the information on names, phone numbers, and e-mail
address of all project members, and distribute it to all project members.
5.5.2
Responsibility & Authority of Project Organization
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1) Project Director
As the management representative of the project, the Project Director, who has ultimate
responsibility and authority for final decision on the quality matters over all phases of
the project execution, will be assigned by the Chief of Division.
2) Project Manager (PM)
PM shall generally manage overall project activities and the performances of the Project
with following the responsibilities and authorities;
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Composing a project organization

Establishing and fulfilling project quality objectives
Approving a project quality plan
Establishing and implementing a project execution plan
Generally managing project costs, processes, quality, and safety
Generally managing the business partners participating in the project
Generally managing the task of project completion and reporting on it
Implementing the contact point for customer as the general representative of the
Project, and performing overall activity for the Contract
3) Project Coordinator (PC)

PC shall assist the PM with project administration, scheduling, progress control, cost
control, document submittal control, and etc.
4) Project Engineering Manger (PEM)
On behalf of the PM, the PEM shall generally manage engineering and design works
which are being implemented by the Lead Engineers through the technical reviews on
engineering documents, leading resolution on technical issues, and etc.
5) Lead Engineer (LE)
LE shall generally lead and supervise the Assistant Engineers (A/E) in performing
overall engineering and design activities in their discipline, such as following;
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Establish an engineering and design plan

Lead overall engineering and design activities
Issue the engineering documents i.e. drawings, specifications, etc
Perform interface review for technical documents
Perform technical bid analysis in procurement phase
Vendor print review i.e. fabrication drawing, working procedure, etc
Attend kick-off meeting with vendors, suppliers, subcontractors, etc
Review design changes suggested by A/E, suppliers, or sub-contractors
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6) Procurement Manager
Procurement Manager has the responsibilities and authorities for sourcing, purchasing,
expediting, and delivery of the products to be used for the Project.
7) Site Manger (SM)
SM shall generally manage overall construction activities, such as following;
(1)
(2)
(3)
(4)
(5)
Overall responsibility for site operation

Establish and implement a site construction plan
Establish and implementing the site quality objectives
Generally manage sub-contractors and evaluate their performances
Control overall site issues i.e. cost, progress, quality, HSE, etc
8) Construction Administration Manager (CAM)

CAM shall assist the Site Manager by taking the activities of administration, scheduling,
control of construction progress & cost, and documents, and etc.
9) Construction Engineer (CE)
CE shall generally manage the construction work and progress, such as following;
(1)
(2)
(3)
(4)
(5)
Generally manage and control the construction works

Control subcontractors performance and report the progress to SM
Check quality of instruments, tools, and facilities being used at the site
Cooperate with the PQM and SQC for site quality control activities
Guide the workers in their using of clothes, tools, and instruments
10) Site Procurement Manager

Under the guiding of Procurement Manager, s/he shall carry out site procurement
activity and shall supervise the Material Controller on following activities;
(1)
(2)
(3)
(4)
(5)
Maintain proper conditions for material storage

Arrange receiving inspection for products
Control of the status of materials incoming and outgoing
Keep identification on stored materials in the warehouse
Identify defective materials and keep traceability of them
11) Field Engineer (FE)

Under the guiding of LE, the FE shall carry out site overall engineering activities;
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(1)
(2)
(3)
(4)
(5)
5.5.3
Survey and compare the site conditions with current design

Issue field change notice (FCN) if it is unavoidable for construction
Distribute the design change notice (DCN) to site organizations
Maintain the records related to engineering changes and revisions at site
Technically assist and lead the Sub-contractors
Responsibility & Authority of QA/QC Personnel
1) Leader of QM Group
S/he generally operates the Quality Management Group such as following;
(1)
(2)
(3)
(4)
(5)
Generally manage the members of QM Group

Establish the company quality policy & objectives
Review the QMM and propose for necessary revision
Qualify internal auditors and quality inspectors
Implement quality audits and management review
2) QA Manager
QA Manger generally operates the company QMS such as following;
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Establish the quality management manual

Establish the standard work processes(procedures)
Organize and provide the QMS-related training
Organize and conduct the quality audits
Maintain the qualification of quality auditors
Prepare the report for QMS management review
Assist planning and implementation of project quality
3) Project Quality Manger (PQM)

The PQM generally operate the project quality plan, such as following;
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Lead overall activities for achieving project quality

Establish and maintain the Project Quality Plan (PQP)
Maintain the qualification of inspectors and QC personnel
Assign the resident inspectors for vendor shops and the site
Conduct the Pre-Inspection Meeting for long-term delivery items
Review and approve suppliers inspection and test plan (ITP)
Manage quality techniques i.e. welding, NDE, special processes
Control non-conformities and corrective actions on the project
Supervise overall site quality issues i.e. planning, mobilizing, etc
4) Site Quality Controller (SQC)
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Under the guiding of PQM, the SQM generally operate overall site QC activities;
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Establish the Site Inspection and Test Plan / Procedures

Conduct the receiving inspection for equipment/materials
Perform the inspections and tests at the construction site
Perform site quality works i.e. planning, leading site inspectors, etc
Monitor site quality on special processes i.e. welding, NDE, etc
Investigate site non-conformities and suggest countermeasure
Verify the corrective/preventive actions at construction site
5) Shop Inspection Coordinator

Under the guiding of PQM, s/he shall arrange and control the shop inspection activities
through the Shop Inspection Management System, such as following;
(1)
(2)
(3)
(4)
(5)
Propose the assignment of resident inspectors

Assign the Inspectors for daily spot inspections
Coordinate with Customers inspector for their witness
Check the weekly/daily results and progress of shop inspections
Report the status and critical issues of shop inspection to PQM
6) Inspector
Under the guiding of the Shop Inspection Coordinator or the Site Quality Controller, the
Inspector shall perform inspection activities such as following;
(1)
(2)
(3)
(4)
(5)
(6)
(7)
5.5.4
Perform the witness inspections at shop or site

Report the results of witness inspections
Monitor vendors QC activity based on the approved ITP
Monitor the quality of special processes (i.e. welding, NDE, etc)
Issue the NCR when non-conformity is identified at shop or site
Investigate root cause of quality defect and report to the Coordinator
Verify if the supplier takes the corrective/preventive actions are properly
Internal Communication
1) Internal communication within the project organization shall be accomplished by means

of electronic media, documents, broadcasting, meetings, workshops, or announcements
as they are specified in relevant company regulation and business processes (BPM).
2) If an official communication between each discipline is necessary, it shall be performed
in document and approved via the e-approval system in accordance with company
regulation for the right of attorney.
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3) PM/SM shall promote internal communication within the project organization through
assisting the workshops, meetings, and teambuilding activities.
4) PQM shall announce the Project Quality Policy, the effectiveness of the PQP, and other
important information on project quality to all project members.
5.5.5
1
Reference
Company Standards
Document No
Document Title

Company Regulation
BPM [D00-1000-010]
BPM [D00-1000-020]
Responsibility, Authority & Communication

Job Duty of Each Discipline
Formation of Project Organization
Establishment of Project Execution Plan
Project Procedures
E30-PMP-G001
E30-PMP-G002
E30-PMP-G010
E30-PMP-G011

Correspondence Procedure
Communication Procedure
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5.6 Management Review

5.6.1
Review of the Company QMS
To ensure the suitability, fulfillment, and effectiveness of the QMS, a management review
shall be performed by the QM Group in first quarter of each year in accordance with the
requirements stipulated in the QMM and relevant business process (BPM).
5.6.2
Review of the Project Quality Status
1) The Project Director can request the QA Manager to perform a separate review for the
Project or a particular activity in the event that;
(1)
(2)
(3)
(4)
A serious complaint happens from the Customer,

Major or frequent quality defects on the product are found,
Major or frequent deficiencies on work processes or procedures are identified, or
It is necessary from the results of quality monitoring i.e. audit, inspection, etc
2) QA Manager shall evaluate the status of the project quality and prepare a management
review report that includes improvement opportunities on project quality policy,
objectives, and the PQP, and the necessity for changes in consideration of following;
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Results of internal audit and external audits,

Feedback from the Customer and interested parties,
Level of the achievement of project quality objectives,
Process performances and product/service conformity,
Status of preventive and corrective actions,
Follow-up actions from previous management review,
Changes that could affect the project quality, and
Recommendations for improvements from the Customer
Any other information that is important in project quality
3) During the session of management review, Project Director shall ensure that the results
of management review include decisions and actions for following:
(1) Improvements of the effectiveness of the PQP, processes, or procedures
(2) Improvements of the products/services related to the Customer requirements
(3) The needs of resources for effectively execution of the Project
5.6.3
Follow-up Actions
1) QA Manager shall distribute the results of management review including feedback from
the management to all project members.
2) If corrective/preventive actions are required from management review, QA Manager shall
issue the Corrective Action Request (CAR) in accordance with relevant process (BPM).
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3) Relevant personnel shall take necessary actions to resolve the results of management
review and submit their action results to QA Manager within due date.
5.6.4
Record Control
The results of management review shall be recorded, controlled, and maintained in

accordance with section 4.2.4 of this PQP.
5.6.5
1
Reference
Company Standards
Document No
Document Title

BPM [D00-6100-060]
BPM [D00-6100-040]
Management Review
QSE Management Review
Corrective/Preventive Action
Project Procedures
E30-PMP-G001
E00-QSE-G005
E00-QSE-G010

Quality Trend Analysis Procedure
Quality Management Review Procedure
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Chapter 6, Resource Management

6.1 Provision of Resources
6.1.1
Company Resource
The Company shall identify, determine, and provide the resources necessary for
operation, maintenance, and continual improvement of the QMS, for the improvement of
customer satisfaction, and for the achievement of the Quality Objectives.
6.1.2
Project Resource
1) PM/SM shall identify and determine the resources i.e. budget, manpower, infrastructure,
tools, and facilities which are necessary for project execution
2) PM/SM shall reflect identified resources for the Project into the relevant implementation
plans i.e. project execution plan, design plan, budget plan, etc.
3) PM/SM shall request the Groups which is responsible for provision of each kind of
resource in accordance with relevant business processes (BPM).
4) Project Director shall ensure that the resources necessary for project execution and the
improvement of the level of project quality shall be provided at appropriate time.
6.1.3
1
Reference
Company Standards
Document No
Document Title

BPM [C00-1000-030]
BPM [C00-5100-020]
BPM [C00-6100-020]
Provision of Resources
Planning of Project Budget
Agreement of Purchasing & Outsourcing
Project Procedures
E30-PMP-G001
E30-PMP-G002

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6.2 Human Resources

6.2.1
Competence & Awareness
1) The personnel who perform the works affecting the conformity of products/services
directly or indirectly shall be competent for their works in terms of educational
background, education/training, certification, license and skillfulness.
2) The criteria of the competence of a person who performs quality-related works shall be
based on the requirements stipulated in relevant processes, the Contract documents,
project specifications, and applicable codes & standards.
3) Group Leader shall identify the knowledge and experience of group members, and
assign competent personnel for project member.
4) To acquire and improve the competency of group members, the Group Leader shall
provide necessary education/training and evaluate the status continually.
5) Information on educational background, education/training, certifications, licenses, and
experiences of all employees shall be maintained through HR system. If necessary, such
information on project members shall be provided to the Customer.
6) The personnel who perform quality-related works shall recognize the importance of their
works and be aware of that their work will contribute to achievement of project quality.
7) Level of the awareness in project members on project quality shall be evaluated by
performing internal audit and measuring the achievement of the quality objectives.
6.2.2
Education
&
Training
1) Group Leader shall establish an education/training plan with the subjects necessary for
individual to acquire required competence, under the considerations of current level of
competence, previous experiences, and the characteristics of job duty.
2) PM/SM shall provide education/training to project members to inspire their awareness of
the importance of their work, and they shall be aware of how their work contributes to the
achievement of project quality objectives.
3) The person who performs internal audit or inspection, or involves in the work of special
process that needs in-process validation, shall be qualified in accordance with relevant
business process (BPM) or project procedure.
4) Qualification record for the auditors, inspectors, and the personnel who involves the work
of special process shall be prepared with following information;
(1) Name of personnel
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(2)
(3)
(4)
(5)
Scope of qualification certification

Date and validity term
Signature of the approver
Back-data of qualification certification (i.e. education/training records)
5) Education/training shall be given in the following ways:

(1)
(2)
(3)
(4)
Lecture
Discussion, seminar or workshop
Self-study of tasks
On-the-job training
6) The organizer shall evaluate the results of an education/training which shall be submitted
throughout HR system by the Trainee.
(1)
(2)
(3)
(4)
6.2.3
A list of trainees
A report of education/training if internal session
A Certificate of education/training if commissioned session
Text book if necessary for information
Record Control
The results of personnel qualification, education/training shall be recorded, controlled, and

maintained in accordance with section 4.2.4 of this PQP.
6.2.4
1
Reference
Company Standards
Document No
Document Title

BPM [D00-5300-010]
BPM [D00-5300-020]
BPM [D00-5300-030]
BPM [D00-5300-040]
BPM [D00-6100-080]
BPM [C00-6600-050]
Human Resources
Establishment of Annual Training Plan
Control of On-the-job Training
Control of Training Operation in each Group
Control of Commissioned External Training
Control of QSE Personnel Qualification
Welder Performance Qualification
Project Procedures
E00-QSE-G003
E00-QSE-G011
E00-QSE-G012
E00-QCP-G007
6.3 Infrastructure
6.3.1
Indoctrination & Training Control Procedure

Inspector Qualification Procedure
Auditor Qualification Procedure
Welder Qualification Procedure
General requirements
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The Company shall determine, provide, and maintain the infrastructure necessary for
ensuring the conformity of products/services, such as following;
(1) Workspace and utility
(2) Process equipment, hardware, and operating software
(3) Supporting services, i.e. maintenance, repair, transportation, IT system, etc
6.3.2
Infrastructure for the Project
1) PM/SM shall identify and determine the infrastructure necessary for project execution i.e.
site office, office supplies, tools, instruments, facilities, software, etc.
2) Necessary infrastructure for project execution shall be provided by the Group which is
responsible for the one in accordance with relevant process (BPM).
6.3.3
1
Reference
Company Standards
Document No
Document Title

BPM [D00-8100-010]
BPM [C00-6300-010]
BPM [C00-6300-020]
BPM [C00-6300-040]
BPM [C*0-2310-010]
Infrastructure
Management of IT System
Assets Management
Claim/Purchase of Site Assets
Support for Site Office Installation
Installation and Opening of Site Office
Project Procedures
E30-CCP-G001
E30-CCP-G002
E30-CCP-G003
Construction Execution Plan

Temporary Facility Plan
Construction Coordination Procedure
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6.4 Work Environment

6.4.1
1) The Company shall determine and maintain work environment necessary for securing
the conformity of products/services in accordance with the relevant process.
2) The Leader of General Administration Group shall establish and maintain the control
ranges of work environment, i.e. air quality, intensity of illumination, etc for head office.
3) The condition of work environment shall be regularly measured in accordance with local
regulations for health, safety and environment.
4) The Leader of Human Resource Group shall provide regular health examination to the
employees in accordance with local regulation for labor management.
6.4.2
Work Environment for the Project
1) PM/SM shall maintain the status of health and safety of all project members.
2) PM/SM shall abide by local regulations for health, safety, and environment and promote
a pleasant environment to prevent any safety incident or health problem.
3) The SM shall be responsible for verifying that the site safety and environmental aspects
are under the control, and if necessary, resources shall be provided and maintained in
accordance with the Contract and statutory requirements.
6.4.3
1
Reference
Company Standards
Document No
Document Title

BPM [C00-5400-030]
BPM [C00-6700-050]
BPM [C*0-2310-010]
Work Environment
Measuring/Monitoring of Work Environment
Regulation for Site Health and Safety
Installation and Opening of Site Office
Project Procedures
E30-CCP-G001
E30-CCP-G002

Temporary Facility Plan
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Chapter 7, Product Realization

7.1 Planning of Product Realization
7.1.1
General Requirements
The planning of product/service realization shall be consistent with the requirements of

the other processes of the QMS, and performed in accordance with relevant process
(BPM) and the requirements of the Contract.
7.1.2
1) In consideration of project characteristics, PM/SM shall establish the Project Execution

Plan that includes following, but not limited to;
(1)
(2)
(3)
(4)
(5)
Project quality objectives

Customer requirements
Project organization, work breakdown, education/training plan, communication
Planning for control of progress, procurement, and engineering
Scope, objects and acceptance criteria for all required verifications, validations,
monitoring, inspections and tests activities specific to the products/services,
(6) Kinds of quality records produced while project execution and control, and
(7) Development of work instructions and improvement activity.
2) The Leader of each discipline shall prepare a work execution plan for his discipline i.e.
quality plan, safety plan, design plan, etc in accordance with relevant process (BPM).
3) The Leader of each discipline shall develop the project procedures that are required by
the Contract requirements or for effective control of product/services realization.
4) The planning of product/service realization shall be consistent with the requirements of
the other business processes of the QMS and of the Contract.
7.1.3
Record Control
The records generated from the implementation of products/services realization processes

shall be maintained as the evidence that the processes and resulting products/services
meet the customer requirements, in accordance with section 4.2.4 of this PQP.
7.1.4
1
Reference
Company Standards
Document No
Document Title

BPM [C00-1000-030]
Product Realization
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BPM [C00-1000-060]
BPM [C00-1000-031]
BPM [C00-1000-032]
BPM [C00-2110-010]
BPM [C00-2110-020]
2
Establishment of Project Procedures

Project Quality Control Plan
Health & Safety Control Plan
Establishment of Project Design Plan
Preparation of Statutory Permission Plan
Project Procedures
E30-PMP-G001
E30-ECP-G001
E30-CCP-G001

Engineering Management Plan
7.2 Customer-related Process

7.2.1
Determination of Products/Services Requirements
PM/SM and the Leader of each disciple shall determine the customer requirements
related to the products/services, in consideration of following;
(1) Requirements stipulated in the Contract, design documents, and specifications as
well as those for delivery and post-delivery activities,
(2) Requirements not stated but necessary for specified or intended use where
known,
(3) Statutory and regulatory requirements related to the products/services, and
(4) Any additional requirements determined by the Company.
7.2.2
Review of Products/Services Requirements
1) Prior to deliver any products/services to the Customer, PM/SM and the Leader of each
discipline shall review if following items are satisfactory;
(1)
(2)
(3)
(4)
The requirements of the products/services are defined.

Differences from the bid or quotation previously offered are resolved.
The ability to meet the Customers requirements is suitable.
Other requirements i.e. preliminary review, maintenance, repair, etc
2) In the event that the Customer does not give their requirements in writing, the relevant
Group and PM/SM shall verify specific requirements before taking the order.
3) In the event that there are any changes in customer requirements i.e. project work
scope, design change, etc., the PM/SM and the Leader of each discipline shall correct
the relevant documents and be aware of the changes.
4) The results of the review of customer requirements related to the products/services and
those of follow-up actions shall be recorded, controlled, and maintained in accordance
with section 4.2.4 of this PQP.
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7.2.3
Customer Communication
1) To publicize technical competitiveness of the Company and to listen to the customer

opinions, the Company operates following channels for communication;
(1) Internet homepage of the Company (http://www.poscoengineering.com)
(2) PR documents i.e. brochures, newsletters,
(3) Attending to exhibitions, seminars or directly visiting to the Buyers
(4) Provision of technical services through contacting the Customers
2) If necessary, the PM/SM shall specify the procedure of customer communication in the
Project Execution Plan or a coordination procedure.
3) PM/SM shall establish a communication channel with the Customer to provide or take
following issues, and record important matters communicated with the Customer shall be
recorded in a document, i.e. correspondence, meeting minute, etc.
(1) Provision of the information on products and services
(2) Contract-related matters including amendments in the contract
(3) Customer feedback, including complaints
4) As a general, the Project Director as the management representative of the Project, shall
be the last window of customer communication on critical issues,
5) Before or upon award of a project, the Project Director shall hold serial review with the
Leader of each discipline in accordance with relevant processes (BPM).
7.2.4
1
Reference
Company Standards
Document No
Document Title

BPM [D00-1200-010]
BPM [B00-2000-010]
BPM [B01-2000-020]
BPM [B01-2000-032]
Customer-related Process
Contract Review
Order Acceptance Meeting
Review of ITB Document
Technical Meeting for Proposal Review
Project Procedures
E30-PMP-G001
E30-PMP-G002
7.3 Design and Development

7.3.1 Design & Development Planning
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1) Lead Engineer (Hereinafter, referred as LE) of each discipline shall establish the Design
Plan that includes following subjects;
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Responsibility and authority for design

Design manpower mobilization plan
Design schedule by each design step
Identification of design inputs
Scope and method of design review, verification, and validation
Method of design interface control
Management of design outsourcing, etc
2) PM shall ensure that the Engineering Design Plan of each discipline shall be properly
established, implemented, and maintained.
3) LE shall revise the design plan if necessary to cover current progress of design activity.
4) Design activity shall be performed by the personnel who have appropriate level of and
engineering competency or the qualifications required by the Contract requirements.
5) In principle, the PM shall be responsible for following;
(1)
(2)
(3)
(4)
Integrated management of design technology

Design interface adjustment between each discipline
Approval of design outputs and accumulation of technologies
Overall control of project designs by himself or assigning the PEM
6) The Leader of Design Group shall be responsible for following;

(1)
(2)
(3)
(4)
(5)
Provide necessary education/training

Maintain the competency and qualifications of design personnel
Establish and maintain infrastructure necessary for design activity
Develop engineering technologies and work instructions
Review and approve design documents i.e. drawings, specifications, etc
7.3.2 Design Input

1) LE shall identify the design input data i.e. design criteria, performance requirements,
codes & standards, statutory requirements, etc in document and review the suitability.
2) LE shall select the design input data in consideration of following;
(1)
(2)
(3)
(4)
Results of contract review

Regulations, codes/standards, specifications with year of application
Customer complaints and claims
Project information and investigation results
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(5) Information derived from a previous similar design, if applicable

(6) Statutory requirements for quality, safety, and environment
(7) Other essential requirements for design
3) Design input data shall not conflict with other requirements, and shall be maintained and
controlled as it shall be the basis of the final design documents.
4) The design input data shall be recorded, maintained, and controlled in accordance with
section 4.2.4 of this PQP
7.3.3 Design Output
1) A design output shall be of a suitable type and in detail for design verification in
connection with the requirements of relevant design inputs
2) Before releasing to other organization, design inputs shall be reviewed and approved by
the authorized personnel who are assigned by the PM.
3) Design outputs produced by design process shall meet following criteria;
(1)
(2)
(3)
(4)
Conformity to design input requirements

Clear statement or referring the criteria for acceptance or rejection
Identification of important design characteristics for functions
Provision of proper information for procurement, construction, and service
7.3.4 Design Review

1) LE shall implement the process of design review in accordance with the Design Plan, for
the purpose of evaluating the ability of a design output to meet the requirements, and to
identify problems and propose necessary actions.
2) Design review shall be performed by an individual or team who is sufficiently qualified or
who represents the discipline of the design activity.
3)
Design review shall be performed to evaluate the accuracy and conformity of design
output in consideration of following;
(1)
(2)
(3)
(4)
A suitable design method is used

Design inputs are correctly reflected in design documents
Design results are valid in terms of design inputs
Design inputs and confirmation requirements of interface organizations are clearly
stated in design documents
4) Design review shall be carried out by one of following methods;

(1) Cross check among related fields to check design interface
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(2) Regular review meeting with the Customers and business partners
(3) System design review for evaluating the design conformity
5) LE shall propose the corrective actions necessary for resolving the problems which are
identified through the process of design review.
6) The results of design reviews and corrective actions shall be recorded, maintained, and
controlled in accordance with section 4.2.4 of this PQP.
7.3.5 Design Verification
1) LE shall implement the process of design verification in accordance with the Design Plan
in order to ensure that a design output meets with design input requirements.
2)
Design verification shall be performed by design review or one of following methods;

(1) Substitution or Simple Calculation
This method involves calculation in any way other than original design calculation or
interpretation or in a simple calculation to check the accuracy of calculation results in
the process of design calculation or its interpretation. It is applied to check the
conformity of design assumptions, input data, software, and other calculation methods.
(2) Comparative Evaluation with Similar Designs
An existing design that has been verified before can be used without re-verification
when the degree of fulfillment of design verification requirements was evaluated. If
there is any change in existing design verified before, the influences from the change
on overall design shall be evaluated, and the change shall be verified.
(3) Qualification Test
Qualification test shall be carried out in a manner that the performance of structure,
system, or component/equipment can be demonstrated under worst condition. Test
results shall be documented, and it suitability shall be reviewed by design organization.
3) The results of design verification activity shall be recorded, maintained, and controlled in
accordance with section 4.2.4 of this PQP.
7.3.6 Design Validation
1) LE shall implement the process for design validation in accordance with the Design Plan
to ensure that the outputs meet with final requirements for use.
2) Design validation shall be carried out on a package of final design outputs by one of
following methods;
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(1) The representatives of all the fields that have participated in the project will review
the final design results at the final design stage.
(2) An evaluation of commissioning report on equipment, system, or facility fabricated
or installed as they are designed will be carried out.
3) The results of design validation activity shall be maintained and controlled in accordance
7.3.7 Control of Design Changes
1) Any changes in the approved design or any change in construction site shall be
controlled in the same manner as it was applied for original design process.
2) Design changes shall be approved by the organization or the team that worked on the
original design process unless the PM/SM has not entrusted the responsibility to another
design team or organization.
3) In case a design error or discrepancy is found in the approved design documents, it shall
be promptly corrected.
4) Design changes or corrections shall be identified and controlled suitably, and the results
of the approved design changes shall be released to the relevant organizations in the
same way as for the original.
5) The results of design changes i.e. FCR, FCN, DCN shall be maintained and controlled ,
in accordance with section 4.2.4 of this PQP
7.3.8 Reference
1
Company Standards
Document No
Document Title

BPM [C00-2110-010]
BPM [C00-5200-020]
BPM [C00-2120-020]
BPM [C00-2320-050]
BPM [C00-2120-000]
Design and Development

Establishment of Design Plan
Control of Design Progress
Control of Design Change (DCN)
Control of Field Design Change(FCN)
Preparation of Various Design Documents
Project Procedures
E30-EMP-G001
E30-EMP-G002
E30-EMP-G003
E30-EMP-G004
Engineering Management Plan

Field Engineering Procedure
Design Review and Validation Procedure
Feed Verification Procedure
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E30-EMP-G005
E30-EMP-G006
Design Change Control Procedure

Field Change Control Procedure
7.4 Procurement Control

7.4.1
Procurement Process
1) Evaluation and Registration of Supplier

(1) In the event that numbers of registered suppliers are insufficient, the Leader
of Procurement Group Leader shall invite the suppliers through an
announcement.
(2) Procurement Manager shall perform a technical evaluation on the Applicants
by means of document review. In case of equipment/material supplier, a
survey on the suppliers shop can be conducted if necessary.
(3) Technical capability and the ability of quality assurance of the supplier shall
be evaluated by one or more measures of following;
Evaluating past results of supplying the same or similar products

Evaluating the current quality ability based on objective data
Visiting the supplier to check its technology and quality ability
Evaluating samples or testing results of similar products
(4) The Leader of Procurement Group shall perform an evaluation on financial
status of the supplier, and present the evaluation results, together with the
result of technical evaluation, to an internal committee for final.
(5) Procurement Manager shall list up the approved suppliers on basis of the
evaluation results, and distribute the list to relevant organizations.
(6) Only for relevant project, following supplier can be considered as approved
supplier by an internal endorsement;
The supplier designated or recommended by the Customer

The supplier designated on the Contract
The supplier recommended by the joint- project partners
The supplier that holds exclusive patents or new technologies
National/public research institute, school, academic group, or individual on special
field to order a technical consulting or testing
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(7) Validity of supplier registration shall be from the date of registration to the
date of next registration in following year. To extend the registration period,
re-evaluation shall be conducted every year.
2) Selection of Supplier
(1) Procurement Manager shall purchase the products/services that can affect
on the status of project quality from approved suppliers.
(2) Procurement Manager Procurement Group Leader shall select a competent
supplier approved suppliers or other suppliers recommended by the Project
Group.
(3) In that event that the supplier shall be selected by bidding process, before
receiving bid price, technical ability of the candidates shall be evaluated to
verify that they can meet purchase requirements.
(4) The criteria for selecting a supplier and the degree to which they must be
managed shall be determined in consideration of the type of
products/services, and of the influences on the final products.
7.4.2
Purchase Information
1) Procurement document for a product shall include the following, together with the data
that clearly explain the items to be purchased;
(1) Type, kind, form, grade, or other data for clear identification of products,
(2) Approval or qualification requirements for processes, facilities, and
personnel,
(3) Title, identification, and publication date of specifications, drawings,
procedures, or inspection guides to be used for product realization,
(4) The requirements for quality assurance of the products,
(5) Authority for entering suppliers facilities and for reading documents
(6) Requirements for document deliverables and submission schedule
2) Procurement document for a service shall include general contract terms and conditions,
work scope, technical matters, and quality-related requirements.
3) Procurement document shall be reviewed and approved by relevant personnel to confirm
that the stipulated requirements are reflected.
4) Any changes on the procurement document shall be made out in accordance with same
process as it was applied for original document.
7.4.3
Verification of Purchased Product
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1) The products/services purchased for the Project shall be verified whether they meet the
requirements stipulated in procurement document.
2) PQM shall review and approve suppliers quality-related documents in accordance with
the business process for vendor print review.
3) Verification of the purchased product to confirm that the product meets the procurement
requirements shall be carried by the qualified at the place of supply or when it is received
at construction site.
4) In the event that in-process verifications on the quality of product during manufacturing
or construction are required, the items and the methods for shop inspections, shipment
and other verifications shall be clearly stated in the procurement document.
5) Verification of the quality of outsourced services shall be verified by responsible person
of the work field through one or more of following manners;
(1) Technical verification of the outcome
(2) Quality system audit
(3) Review of objective evidences
7.4.4
Reference
1
Company Standards
Document No
Document Title

BPM [D00-3100-020]
BPM [C00-6100-010]
BPM [C00-6100-020]
BPM [C30-212*-030]
BPM [C30-212*-040]
Procurement
Supplier Evaluation and Registration
Request for Purchasing & Outsourcing
Agreement of Purchasing & Outsourcing
Preparation of Technical Specification
Vendor Print Review
Project Procedures
E30-PMP-G001
E30-PMP-G002

7.5 Provision of Construction and Service

7.5.1
1) Construction works and services that directly affect on project quality shall be performed
in accordance with following requirements;
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(1) Prepare work guidelines i.e. procedures, specifications, drawings that

stipulate work methods, review them in advance and perform based on
them,
(2) Select and approve suitable equipments for the work methods and the
work environments i.e. time, temperature, pressure, etc,
(3) Use appropriate equipment for monitoring and measuring of the work,
(4) Perform monitoring and measuring activities for the work that can affect
on the characteristics of the products,
(5) Maintain the work guidelines i.e. procedures, specifications, drawings,
(6) Control the equipments suitably in order to guarantee its reliability, and
(7) Release products according to relevant procedures, deliver the
completely constructed facility, and undertake post-delivery services
2) In the event that a construction work or service is outsourced, the PM/SM shall control
the supplier to ensure that the Project is being performed under the control.
3) PM/SM shall handle the Customers request for post-delivery service in accordance with
relevant processes, the Contract requirements, or regulations.
4) When a post-delivery service is provided, PM/SM shall verify if any trouble still open and
shall distribute the action results to relevant organizations.
5) To ensure the continual improvement of the QMS, the causes of problems, the results of
actions/countermeasures taken shall be provided to QA Manager for reviewing the
necessity of the revisions of relevant processes or improving the QMS operation.
7.5.2
Validation of Work Processes
1) In the event that a construction work or service provided cannot be verified through
follow-up monitoring or measurement, work processes shall be validated. This includes
any processes where discrepancies become apparent only after the product is in use or
the service was delivered.
2) To the achieve planned results, validation shall demonstrate the ability of the processes,
and the arrangements for the processes shall be determined including whichever of the
following, as applicable;
(1)
(2)
(3)
(4)
(5)
Defined criteria for the review and approval of the processes

Approval of equipment and qualification of personnel
Use of specific methods and procedures
Requirements for records
Re-validation in the event that a condition or requirement is changed
3) PQM shall perform the validation activity for following works at manufacturing shop and
construction site in accordance with relevant processes or project procedures.
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(1)
(2)
(3)
(4)
(5)
Welding,
Heat treatment,
Non-destructive test,
Special painting, and
Other special processes
4) The results from process validation activity shall be recorded, maintained and controlled
in accordance with section 4.2.4 of this PQP.
7.5.3
Identification and Traceability
1) General requirements
(1) A physical method shall be used for identification marking, as
applicable. When it is difficult to make a identification mark
directly on the item, other suitable measure that meet following
requirements can be used.
Be readable
Have no influence on the quality
Include separate identification signs for items that are
separated
Not erasable by surface treatment or painting
Not corrosive
(2) Identification mark on the purchased items or construction works

shall not be lost, erased, damaged, or deteriorated by the activity
of manufacturing, storage, packaging, shipping, installation,
construction, testing, or commissioning.
2) Procedure for Securing the Traceability
(1) LE shall stipulate or refer the identification requirements for
purchased items and construction works in the procurement
documents i.e. specification, drawing, etc.
(2) PQM shall ensure that the status of inspection and tests shall be
identified by proper measures i.e. signatures, stamps, tags,
labels, cards, or an inspection record that shows the conformity
or non-conformity.
(3) The item judged as nonconforming during its assembly or
installation shall be isolated from the work place, process, or
clearly indicated.
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(4) Only the items that have passed the required inspections and
tests shall be transported to the construction site for installation
and construction.
(5) The products that have failed the inspection or test, or for which
judgment has been on hold, the status shall be indicated on the
items, and if possible, they shall be separated from conforming
items or returned.
3) Record Control
The results of traceability control activity i.e. tracing index, identification labels, etc shall
be controlled and maintained in accordance with section 4.2.4 of this PQP.
7.5.4
Customer Property
1) Customer property shall include, but not be limited to the following items;
(1) Design outputs i.e. drawings, specifications
(2) Products to be used for construction,
(3) Equipments for monitoring and measurement,
(4) Codes, standards, or statutory regulations applicable to the Project, and
(5) Software or intellectual property rights, or personal information
2) PM/SM or the Leader of relevant discipline shall control, maintain, and use the customer
property in accordance with relevant process or the Contract requirements.
3) In the event that a customer property is found to have no trouble, it shall be controlled,
handled, and used relevant process or the Contract requirements. When requested, it
shall be returned to the Customer.
4) If a customer property is lost, damaged, or unsuitable for use, or found to have trouble
while being used, the details of the problem shall be provided to the customer.
5) Records of troubles on customer property provided to the Customer shall be controlled
and maintained in accordance with section 4.2.4 of this PQP.
7.5.5
Preservation of Product
1) In the event that a material or equipment needs to be specially protected by the Contract
requirement or for securing the quality, PM/SM shall identify the requirements for special
protection measures, and shall advise to the LE.
2) LE shall specify the requirements for identification, handling, packaging, storage, and
protection of the products, in order to prevent any damage or deterioration of the quality,
in the procurement document at design phase.
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3) SM shall prepare a yard or a warehouse where environment is appropriate for storing the
products received from the supplier.
4) Material Controller shall control the status of outgoing and incoming of stored materials
and equipments from/to the storage area, and shall periodically check and record the
conditions of stored materials/equipments i.e. validity expiration, quality deterioration,
damage, loss, etc. If any problem, it shall be verified by Site QC.
5) The products that are completely manufactured, as they has passed the final inspection
and tests, shall be properly protected by packaging or other way protect from any
damage or quality degradation until they are delivered to the Customer.
6) PQM shall ensure that the conditions of packaging and protection are acceptable before
releasing a product for shipping.
7) Where applicable, manuals or technical instructions for installation, test, operation, and
maintenance of the products shall be provided to the Customer.
7.5.6
1
Reference
Company Standards
Document No
Document Title

BPM [C00-6600-040]
BPM [C00-6600-050]
BPM [C00-6500-030]
BPM [C00-6500-031]
Provision of Construction and Service

WPS/PQR
Welder Performance Qualification
Material Control
Control of Customer Property
Project Procedures
E00-QCP-G005
E00-QCP-G006
E00-QCP-G007
E00-QCP-G008
E00-QCP-G009
NDE Control Procedure

Welding Procedure Qualification Procedure
Welder Qualification Procedure
Welding Material Control Procedure
PWHT Procedure
7.6 Monitoring and Measuring Equipment

7.6.1
1) Monitoring and measuring activity shall be performed by the equipments which are
suitable for the objects of verification activity and the environment of use.
2) A measuring equipment used for verifying that an item or construction work meets the
specified requirements shall be calibrated or validated when;
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(1) Validity period of last calibration or validation is close to expiration

(2) The accuracy of the measuring equipment is in doubt
(3) Before using the measuring equipment
3) If a computer program is used for design or monitoring and measuring, the possibility that
the program can be converted shall be periodically controlled to check its soundness, and
the conformity of software program shall be verified before use and if necessary it shall be
verified periodically while in use of the program.
7.6.2
Control of Monitoring and Measuring Equipment
1) PM/SM shall ensure that the monitoring and measuring equipment necessary for verifying
the project works i.e. manufacturing, fabrication, installation, construction, etc shall be
fully identified and provided, and properly controlled in consideration of following;
(1)
(2)
(3)
(4)
(5)
Equipments shall be suitable for the activity

Equipments shall be identified and used with traceability.
Equipments shall be stored and maintained in proper environment
Calibration, inspection, or verification status shall be maintained.
Program used for design shall be verified before use and if needed while in use.
2) PQM shall verify that the equipments for inspection, measurement, and testing used in
the suppliers factory and construction site shall be suitably calibrated.
3) To ensure the valid results from the monitoring and measuring activity, the equipments
shall be properly maintained and controlled in consideration of following;
(1) Equipment shall be calibrated or verified by the national authority at the
designated interval. If it is calibrated internally, national or international calibration
standard shall be applied. If there is no authorized standard, manufacturers
guidelines or recommendations shall be documented as an internal standard.
(2) Equipments shall be adjusted when any discrepancy from the tolerances of
applicable standard is found as the result of calibration and verification.
(3) A label or draw a mark on the equipment body or its enclosure shall be put on to
identify the calibration status according to relevant guideline.
(4) Equipments shall be protected from damage or deterioration while they are
handled and stored to secure the accuracy and conformity for use, and they shall
be protected from undesirable adjustment that can invalidate measuring results.
(5) Equipment that did not calibrated or whose accuracy is in doubt shall be tagged or
isolated in accordance with relevant process until it is recalibrated. When it is
impossible to calibrate, it shall be repaired or replaced.
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4) When accuracy of measuring equipment is in doubt, it shall be re-calibrated. However, for

commercial tools i.e. rulers, measuring tapes, or levers whose accuracy is maintained,
they do not need calibration, but any tool that is damaged or worn out shall not be used.
5) In the event that measuring equipment is not calibrated or is out of calibration standard,
the validity of the previous measuring results obtained by the equipment shall be reevaluated and recorded, and proper countermeasures shall be implemented.
7.6.3
Record Control
Verification/calibration of monitoring and measuring equipments and design software shall
be controlled and maintained in accordance with section 4.2.4 of this PQP.
7.6.4
Reference
1
Company Standards
Document No
Document Title

BPM [C00-6600-010]
BPM [C30-212M-000]
BPM [C30-212M-040]
Monitoring and Measuring Equipment

Control of Monitoring, measuring & Testing Equipment
Control of IT Design Software
Development of IT Design Software
Project Procedures
E00-QSE-G006
Measuring Device Control Procedure
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Chapter 8, Measurement, Analysis, and Improvement

8.1 General
8.1.1 General Requirements
1) The Company shall abide by customer-focused quality policy and of understanding and
meeting the present and future requirements from the Customer, and trying to exceed the
customer expectations.
2) QA Manager shall determine and establish the processes for monitoring and
measurement activities i.e. inspections, tests, audits, customer surveys, etc in order to
following;
(1) To demonstrate conformity of the products and services,
(2) To ensure conformity of the quality management system, and
(3) To continually improve the effectiveness of the QMS.
3) The relevant Group Leaders shall implement the monitoring, measurement, and analysis
activities through reviewing the status of following data;
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Achievements of quality objectives

Results of product design and process monitoring,
Current status of quality planning
Determination of inspection levels
Current status of nonconformities
Results of the Customer satisfaction surveys
Status of the Customer complaints
Cases of inferior quality discovered during internal audit and monitoring
Analysis of data and discrepancies in the scope of guarantee affecting quality
8.1.2 Statistical Techniques

1) For the activities of monitoring, measurement, and analysis, the statistical techniques,
such as following but not limited to, shall be used
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Graph and control chart

Paretos chart
Histogram
Degree of scattering (scatter-gram)
Cause and effect diagram (fish bone)
Sampling method, or
Other quality control techniques
2) The statistical techniques to be used for monitoring, measurement shall be suitable for the
characteristics of the activities.
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8.2 Monitoring and Measurement

8.2.1 Customer Satisfaction Survey
1) Survey Process
(1) The Customer satisfaction survey shall be performed on the Customers and business
partners in major business fields of the Company.
(2) The Customer satisfaction survey shall be conducted periodically by questionnaires,
phone surveys, visits, or other means suitable to the characteristics of the object. It can
be conducted internally or by an outside professional institute.
(3) Under the assistances of PM/SM, the Leader of Strategic Planning Group shall define
the Customers, identify the requirements, decide survey methods, and set the items
and descriptions of the survey by review of following information;
Degree of customer satisfaction on the quality of products/services,

Degree of meeting the customer requirements and expectations
Responsiveness to the market and the changes in business environment, and
the competitiveness with competitors
Changes in products/services and working processes
(4) The method of customer satisfaction survey shall be adjusted in consideration of the
characteristics of the objects of each survey.
(5) The results of the customer satisfaction survey shall be published internally with a
document or an electronic medium. If necessary, it can be provided to the Customers.
2) Corrective and Preventive Actions
Based on the results of customer satisfaction survey, the Leader of Strategic Planning
Group shall prepare the countermeasures, and shall request relevant organizations i.e.
PM/SM, the Group Leaders, to take necessary actions.
3) Improvement Actions
(1) During internal audit, the QA Manager shall determine whether the corrective and
preventive actions resulted from the customer satisfaction survey are suitable and
properly implemented to relevant works, and necessary activities are being carried out
for continual improvement of the quality level of their works.
(2) The results of customer satisfaction survey and corrective and preventive actions taken
shall be reflected into the management review of the QMS.
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(3) If necessary, a customer satisfaction survey for particular projects or activities which
have been or being delivered to the Customers can be performed.
8.2.2 Internal Quality Audit
(1) To monitor and measure if the works and processes affecting the quality are being
effectively conducted in accordance with the QMS and relevant quality plan, internal
quality audits shall be performed by each Project or each Group by appropriate
interval.
(2) Internal audit shall be conducted by the personnel who are qualified in accordance with
relevant process (BPM) but have no direct responsibility for the work to be audited.
(3) The results of internal audits shall be reflected into the management review of the
QMS and this PQP for continual improvement.
(4) Internal audit shall be conducted for verifying if the QMS and project quality plans are
effectively implemented, and determining if the works being performed meet customer
requirements and if quality-related processes can achieve the planned results
2) Establishment of Audit Plan
(1) If requested, the PM/SM and Group Leaders shall provide the QA Manager with project
schedule, work priority, or other information required for establishing the audit plan.
(2) The Projects and Groups performing quality-related works shall be periodically audited,
and if necessary, a special audit can be performed additionally.
(3) QA Manager shall establish an annual audit plan by reflecting the object, time, and
scope of the audit, and inform to the organizations to be audited.
(4) Frequency of internal audit shall be decided on the basis of the business status in each
field and the importance to the Company.
3) Audit Preparation
(1) Prior to perform an internal audit, QA Manager shall organize an audit team with a lead
auditor, auditors, advisor, etc.
(2) For auditing a special area or particular process, professional or competent engineer
in the area can be invited as the advisor.
(3) Lead Auditor shall prepare a specific audit plan that includes the descriptions of audit
scope, applicable requirements, auditors and detailed schedules.
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(4) Auditors shall review the documents relating to the areas to be audited and prepare an
audit checklist and present to Lead Auditor for review and approval.
(5) QA Manager shall notify the specific audit plan to the organization to be audited
(Hereinafter, referred as the Auditee) in advance to perform the audit.
4) Audit Implementation
(1) Before commencement of an audit, the Lead Auditor shall hold a pre-audit meeting to
discuss the audit schedule, selection of a contact point, and other matters required for
the audit, with the Auditee.
(2) Auditor shall perform the audit on the basis of the approved audit checklist, record the
findings, and issue an audit report.
(3) The status and effectiveness of the corrective actions taken to the audit findings
identified by previous audit shall be verified during current audit, and the verification
results shall be recorded.
(4) Lead Auditor shall evaluate the audit results and hold a post-audit meeting with the
Auditee to discuss the audit results, any disagreements between the Auditor and
Auditee, selection of the personnel responsible to take corrective actions, and
settlement of action schedule.
(5) Lead Auditor shall handle the audit findings in accordance with relevant process. It,
however, shall be promptly reported to the management level of the Auditee when an
audit finding requires urgent actions.
5) Reporting and Evaluation of Audit Results
(1) Lead Auditor shall prepare an audit report that includes audit scope, the Auditor, the
Auditee, responsible personnel for action, and audit findings.
(2) Audit report shall be sent to the Auditee after the approval of QA Manager.
(3) QA Manager shall report a summary result of the audit to management representative
of the Company. If a serious discrepancy is disclosed, it can be reported to the top
management for preventing recurrence.
(4) The Auditee shall take necessary corrective and preventive actions to audit findings
and report their action results to QA Manager.
(5) The Lead Auditor shall evaluate the response from the Auditee. In the event that their
corrective and preventive actions are insufficient, supplementary actions shall be
requested for closing the action item.
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8.2.3 Monitoring and Measurement of Process

1) PM/SM and the Group Leaders shall establish and implement an action plan for
monitoring and measurement of the processes relating to their works.
2) Monitoring and measurement of the process shall be performed on the basis of the action
plan for achieving the planned KPIs and the Quality Objectives.
3) In the event that the planned KPIs and Quality Objectives are not fully achieved, or if
some further problems are identified, the PM/SM or relevant Group Leader shall timely
improve the relevant processes to achieve the conformity of the products and services.
4) QA Manager shall lead the monitoring and measurements of the-standard business
processes (BPM) and project procedures, and verify that corrective actions are properly
taken by the relevant organizations.
8.2.4 Monitoring and Measurement of Products and Services
(1) Monitoring and measurement of design outputs shall be performed through design
review, design verification, and/or design validation.
(2) Monitoring and measurement of the quality of the products shall be performed through
direct inspections and tests or by witness of them at suppliers factory and at
construction site. When a work or an activity is outsourced, it shall be witnessed.
(3) Evidence of conformity with the acceptance criteria such as the inspection report,
which shall indicates the person who has the authority to release the products or
deliver the services, shall be maintained as a quality record.
(4) Release of a product and service delivery shall not proceed until the planned activities
have been completed satisfactorily unless otherwise approved by the Customer.
(5) All inspections and tests shall be conducted in accordance with the approved plan and
procedures, and the results shall be documented with following information;
Target of inspection and test

Date of inspection and test
Inspector/tester
Type of inspection and test
Results of inspection and test (conformity or nonconformity)
Relevant data regarding nonconforming products
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2) Responsibility and Authority

(1) PM shall be responsible for reflecting monitoring and measuring methods in the
planning step of product realization, and for implementing these in order to determine
whether the requirements of products have been fulfilled.
(2) SM shall be responsible for conducting site inspection and test based on installation
specifications and for verifying the construction works performed by the Subconstructors.
(3) PQM shall be responsible for the verification of the products manufactured in the
suppliers factory in accordance with inspection and test requirements specified in the
procurement document.
(4) Inspectors shall be provided with necessary trainings and qualified in accordance with
relevant process (BPM), and shall fully understand relevant procedures, specifications,
drawing, and applicable codes & standards.
(5) The Site QC personnel shall be responsible for performing inspections and tests for
construction works and verify the conformity of special processes.
3) Establishment of Inspection & Test Plans
(1) Inspection and test plan (ITP) which includes the information on methods and
characteristics of target items, processes or works to be verified and acceptance
criteria shall be established.
(2) PQM shall establish a witness inspection plan for the products purchased from the
Suppliers, and lead the Site QC to establish an inspection plan for receiving inspection
of the delivered products and the construction works.
(3) In the event that sampling method is applied for an inspection or test, it shall be carried
out in accordance with applicable standard, process, or procedure.
(4) Witness and hold points for inspection shall be settled for manufacturing processes of
products to conduct the witness inspection.
4) Site Receiving Inspection
(1) SM shall ensure that any equipment or material received in the site shall not be used
for installation or construction before completion of receiving inspection.
(2) In the event that an item is judged as unacceptable in receiving inspection, it shall be
clearly identified, recorded, and traced for immediate replacement or alternate use.
(3) The Material Controller shall perform a receiving inspection upon arrival of the
materials or equipments to be used for construction works. If necessary, receiving
inspection shall be performed together with the Site QC.
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(4) In receiving inspection, following items shall be verified and recorded;
Quantity of equipments and materials delivered,

Damages or deteriorations during transportation, and
The status if they are passed the required inspections and testes at factory.
(5) Commercial items and bulk materials that have less influence on the project quality
can be put into the construction site by a visual inspection.
5) In-Process Inspection and Test
(1) In-process inspection and test for the products shall be witnessed in the Suppliers
factory, and those for the construction works shall be performed according an
inspection checklist or site inspection and test plan.
(2) The quality tests for civil works shall be conducted in an internal testing lab. If
necessary, special tests i.e. non-destructive testing can be outsourced, but test report
shall be received, reviewed and maintained.
(3) In the event that the Customers witness inspections are required, the witness points
shall be agreed with and notified to the Customer, and it shall be jointly conducted.
(4) If it is impossible to verify the quality of a product or system structure after completion
of the manufacturing, installation, construction, or it is necessary to verify the quality
during the process, in-process inspections and tests can be planned conducted.
(5) The results of inspections and tests and the action status for nonconformities found in
previous processes shall be verified before conducting the in-process inspection.
6) Final Inspection and Test
(1) Final inspection and test for the products and the constructed works can be performed
by various manners at several steps, but they are usually conducted by completion
inspection and system commissioning.
(2) For commercial items and bulk materials, final inspection and test can be completed by
witnessing the Suppliers final inspection and releasing the materials for shipment.
(3) In final inspection, the Inspector shall review the records of the action results taken for
resolving nonconformities found during in-process inspections.
(4) At final inspection, the Inspector shall fully verify the status of completion, identification,
calibration and verification of the products, protection measure from damage, and
other specified requirements before release.
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(5) The results of conformity or nonconformity of the products inspected and tested shall
be documented and approved by the authorized person.
(6) In the event that any modification, repair or replacement is made after the acceptance
of final inspection, re-inspection or re-test for the changed parts shall be conducted in
accordance with original process.
(7) The Inspector shall verify that the conformity and completeness of all quality records
i.e. test reports, check sheets, certificates, etc.
8.2.5 Reference
1
Company Standards
Document No
Document Title

BPM [D00-6100-020]
BPM [A00-1000-090]
BPM [A00-1000-100]
BPM [C30-2200-010]
BPM [D00-3200-010]
BPM [C00-2320-040]
BPM [C00-2320-041]
BPM [C00-6600-020]
Monitoring and Measurement

Internal Audit (QSE)
Customer Satisfaction Survey
Measurement of Organizations KPI
Shop Inspection for Material/Equipment
Control of Inspection Service Providers
Site Inspection and Test
Control of Quality Testing
Operation of Site Testing Lab
Project Procedures
E00-QCP-G001
E00-QCP-G002
E00-QCP-G004
E00-QSE-G002
E00-QCP-G011
E00-QCP-G012
Shop Inspection and Test Requirements

Shop Inspection and Test Plan
Field Inspection and Test Procedure
Project Quality Audit Procedure
Quality Requirements for Vendor
Quality Requirements for Subcontractor
8.3 Nonconforming Product

8.3.1 General Requirements
1) To prevent unintended use or delivery of nonconforming products, the procedure for the
control of non-conformity shall be established.
2) Following information shall be specified in the record of nonconformity.
(1)
(2)
(3)
(4)
Identification of nonconforming items

Reporting and documentation of the nonconformity
Causes
Isolation
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(5) Treatment
(6) Notifying to the relevant organization
(7) Responsibility and authority for corrective actions
3) PQM shall ensure that any nonconformity on the product or construction work shall be
recorded in the form of Non-Conformance Report (NCR).
4) LE shall ensure that an error or defect is found in the approved design documents shall
be corrected by revision of design document, or recorded in the forms of Design Change
Notice (DCN) or Field Change Notice (FCN).
5) PM/SM ensure that any non-conforming item shall not be used or open without final
disposition by the authorized personnel.
8.3.2 Identification of Non-conformity
1) Nonconforming product shall be identified by marking, attaching a label or other suitable
way of identification that shall not influence on the item itself.
2) Proceeding of the process, delivery, installation, or use of nonconforming item shall be
strictly controlled until the disposition is evaluated and determined by PM/SM.
3) If necessary, PM/SM can decide segregate the nonconforming item from good ones or
return it to eliminate any unintended use.
8.3.3 Evaluation of Non-conformity
1) The person who evaluates the way of disposition on the nonconforming item shall have
sufficient capability in the field and be able to understand the requirements, and s/he can
fully use the relevant information.
2) PQM and relevant LE shall review and evaluate the description of nonconformity and
suggest the disposition to treat the nonconforming item to PM/SM for approval.
3) In case a nonconforming item is identified after delivery or after use of the item, the
influence or potential influence from the item shall be identified, and proper actions shall
be taken to eliminate or minimize the influence.
8.3.4 Disposition of Non-conformity
1) The disposition on a nonconforming product shall be one of following;
(1)
(2)
(3)
(4)
Use-As-Is,
Repair,
Rework, or
Reject
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2) Unless otherwise specified, the disposition of Use-As-Is shall be approved by PM/SM or

the authorized person before delivery of the products.
3) In the event that a nonconforming item is determined as Repair or Use-As-Is, technical
adequacy shall be clearly stated in the NCR.
4) An item that is repaired or re-worked shall be re-inspected and re-tested in accordance
with original procedure unless otherwise specified.
5) Non-conformity in the design of the item determined as Use-As-Is shall be controlled in
accordance with the process for design control.
8.3.5 Record Control
The records of non-conformity control shall be maintained and controlled in accordance
8.3.6 Reference
1
Company Standards
Document No
Document Title

BPM [C00-5400-020]
BPM [C00-2120-020]
BPM [C00-2320-050]
Nonconforming Product
Control of Nonconforming Product
Control of Design Change (DCN)
Control of Field Design Change(FCN)
Project Procedures
E30-EMP-G005
E30-EMP-G006
E00-QSE-G007
Design Change Control Procedure

Field Change Control Procedure
Nonconformance Control Procedure
8.4 Analysis of Data

8.4.1 To verify conformity and effectiveness and to secure continual improvement of the status
of project quality, the data to be analyzed and evaluated shall be as follows;
1)
2)
3)
4)
5)
6)
Investigation of customer satisfaction: PM/SM

Quality defects such as nonconformities, corrective actions: PQM
Design errors and defects: LE, PM/SM
Status of the Customer complaints : PM/SM
Results of internal/external audits : QA Manager
Nonconformities in construction work : Site QC
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7) Status of quality audit on the Suppliers : QA Manager

8) Other necessary data
8.4.2 As a result of data analysis, root causes of major problems shall be clarified and
intensively controlled, and used as the input for continual improvement.
8.4.3 The measure of data collection shall be realistic depends on the nature to correctly
identify the phenomena, and proper statistical techniques shall be used to ensure that the
results of data analysis shall be systematic and for effective decision-making.
8.5 Improvement
8.5.1
Continual Improvement
1) Following information shall be reported to the management to determine and implement

the measures for improvement of the QMS and the level of project quality;
(1)
(2)
(3)
(4)
(5)
Achievements of quality policy and objectives

Results of internal and external audits
Results of data analysis
Results of corrective and preventive actions
Results of management reviews
2) To eliminate the causes of actual or potential nonconformities, necessary corrective or

preventive actions, which are suitable for the importance of quality issue or the level of
risk faced, shall be taken.
3) In the event that a process needs to be changed as a result of corrective and preventive
actions, the relevant processes shall be changed.
8.5.2
Corrective and Preventive Action
1) The organizations performing quality-related work shall inform to QA Manager verbally or

in writing when they found an error, quality discrepancy including defects or a potential
problem while they performing their works.
2) QA Manager shall analyze the root causes of quality discrepancy or potential problem
identified by internal quality audit and monitoring, classify the disposition as one of
following, and it shall be stipulated it in the form of Corrective Action Request (CAR).
(1)
(2)
(3)
(4)
Recommendation for adjustment

Preventive action required
Correction or calibration required,
Specific investigation required
3) The following can be presented as major root causes of a quality discrepancy;
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(1)Improper control or supervision

(2)Lack of capability or education/training of personnel
(3)Improper or ineffective process or procedure for performing the works
(4)Impractical or unreasonable schedule of work performance
4) When a major quality discrepancy or potential problem is found, QA Manager shall issue
the CAR and forward it to the relevant disciplines to promptly take necessary actions.
5) The Leader of relevant disciplines shall take corrective actions within due date and
provide the response with action results. In case it is impractical to complete the
corrective actions by the deadline, it can be extended when rational reasons are provided
to QA Manager.
6) QA Manager shall evaluate the suitability of the responses and verify the results of the
corrective actions. In case the corrective actions are not complemented within the due
date or the results are unsatisfactory, it shall be enforced and requested again to
complete the corrective actions in writing.
7) QA Manager shall control the status of corrective actions by a register form of the CAR,
and report to the status to management level.
8) QA Manager shall verify the completeness of the corrective actions through a quality
audit, document or review. If the changes in the QMS or the processes are required,
relevant Group Leaders and the PM/SM shall be requested for actions.
8.5.3
Record Control
Documents of corrective and preventive actions shall be maintained and controlled in
accordance with section 4.2.4 of this PQP
8.5.4
Reference
1
Company Standards
Document No
Document Title

BPM [D00-6100-040]
BPM [D00-6100-060]
Analysis of Data
Continual Improvement
Corrective and Preventive Action
QSE Management Review
Project Procedures
E00-QSE-G008
E00-QSE-G005
E00-QSE-G010
Corrective and Preventive Action Procedure

Quality Trend Analysis Procedure
Quality Management Review Procedure
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- End of Document -
POSCO ENGINEERING

01 E00-QSE-G001 - Project Quality Plan

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Project Quality Plan

Project Quality Plan

Project Quality Plan

Policy and Objectives

Project Quality Plan

Chapter 1, Policy and Objectives

Project Quality Plan

1.2 Project Quality Objectives

EHS Goal : Zero penalty

Project Management : 5% early completion

Procurement and Quality : 10% reduction of NCRs

Construction Activity : 10% reduction of NDE fails

Project Quality Plan

Engineering, Procurement, & Construction (EPC)

2.3 Normative Reference

QMM-001 Rev.6, Quality Management Manual

Project Quality Plan

Chapter 3, Terms and Definitions

Project Quality Plan

Project Quality Plan

Project Quality Plan

Chapter 4, Quality Management System

Project Quality Plan

4.2.1 QMS Structure

Level (I): Quality Management Manual

Project Quality Plan

2) In addition to documented QMS, following IT systems are being operated to ensure

PDCS : Project Document Collaboration System

PMIS : Project Information Management System

EDMS : Engineering Document Management System

SHIMS : Shop Inspection Management System

HRMS : Human Resource Management System

e-Approval and other systems

Project Quality Plan

Approving documents for adequacy prior to issue,

Project Quality Plan

Project Quality Plan

3) Handling of Quality Records

Project Quality Plan

QMM-001, Section 4.2.3

Project Execution Plan

Project Quality Plan

Chapter 5, Management Responsibility

If there is any significant change in managing environment or any major

5.4 Quality System Planning

Project Quality Plan

(3) Level of customers and interested parties satisfaction on products/services

QMM-001, Section 5.4

Project Execution Plan

Project Quality Plan

5.5 Responsibility, Authority, and Communication

1) Upon award of a project, the Chief of Division appoints the PM.

Responsibility & Authority of Project Organization

Project Quality Plan

Composing a project organization

3) Project Coordinator (PC)

Establish an engineering and design plan

Project Quality Plan

Overall responsibility for site operation

8) Construction Administration Manager (CAM)

Generally manage and control the construction works

10) Site Procurement Manager