DUQM – PROJECT QUALITY INDUCTION

EPC PACKAGE 2 – UTILITIES & OFFSITES

CONTRACT NO – CNT-1100-1000-007
PROJECT NO – JI-2037 / SO0267

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Housekeeping / Admin

No fire alarms planned Mobiles, Switch off or silent Mode

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SAFETY MOMENT
.

Frustration whilst driving…AVOID ROAD RAGE

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Induction Objective & Target Audiences

• To familiarize with project quality & client requirements

• To develop a quality culture across the project team through awareness

Target Audience – Everyone who is involved in the project –

(Field Manual Worker / Engineers/ Supervisors)

Petrofac & Subcontractors

Samsung, Client ( As & when Required )

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Project Information & Scope
Client Duqm Refineries and Petrochemical • Crude Import & Storage
Industries LLC (DRPIC) – JV of Oman Oil • LPG Storage and Associated Facilities
Company(OOC) and Kuwait Petroleum
International (KPI) – 50/50 shareholding • Sulphur Storage, Pelletisation and
Project EPC2 – Utilities and Offsites Loading
FEED&PMC / Amec Foster Wheeler / Allen & Overy
• Refinery Coke, Diesel & Jet A1 Truck
Legal Advisor Loading
• Natural Gas Reception Facilities
Licensor Not Applicable • Flare, Fire Fighting, Slop Oil, HC Drain,
Type of Lumpsum EPC
Flush Oil & Spent Caustic Systems
contract • Waste Water Treatment Plant
Site location Duqm ~ 600 KM from Muscat • Waste Handling and Disposal
Type of site Greenfield
System
• Drainage System – Oil Water System
Scope Engineering, Procurement, Construction,
Commissioning, Training, Start-up and • Drainage System – Clean Water
Initial Acceptance • Interconnecting Pipe racks,
ITT(Invitation ITT endorsement certificate was provided Infrastructure & Buildings
To Tender. along with PART 2 – FINAL TECHNICAL & • Export Product Pipelines ( LPG,
Endorsement UNPRICED COMMERCIAL bid confirming
correctness and completeness of the Naphtha, JetA1, Diesel & HSFO )
Tender Document

Bidding entity PIL & Samsung JV (50% PIL & 50%

Samsung); Project leader: Petrofac
Project Ready For Start Up – 39 Months
duration Issue Acceptance Certificate – 47 Months
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Vision & Values

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Petrofac Quality Policy & ISO Certificate
SECL’s Quality Policy & Objectives

Quality begins with me!

OBJECTIVES

 Enhancement of Quality
Competetiveness
 Continual process improvement
based on preventive action
 Accomplishment of Customer
Satisfaction

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Project Quality Policy
Section 5.0 PQP - PROJECT QUALITY POLICY
 
The JV team aims to deliver the project following quality policy of Duqm Refinery, all activities for the project
execution will be carried out in full compliance with JV quality management system which is fully in alignment
with company standards, design data, statutory and regulatory requirements (where applicable) and ISO
9001-2015.
 
JV Project Director will provide the leadership to the project management team and committed to provide the
following,
 
Initiate actions for understanding the needs and requirements of the customer including statutory and
regulatory requirements
 
Allot adequate and competent resources throughout the duration of the project execution
Establish JV Project Quality Management System covering all project activities ( Engineering, Procurement,
Construction, Commissioning to Handover ), and continually improve the effectiveness of quality
management system to enhance company satisfaction
 
The Contractors and its Suppliers shall manage Quality in line with DUQM REFINERY Quality Policy.
Contractor shall ensure the compliance with the requirements during execution of the Contracts. Initiate
activities and controls that will ensure products or services are delivered meeting the technical intent and
the asset is built to a level of standard which ensures safe, reliable operation.
 
Identifying needs and expectations of all interested parties and communicating company requirements
including regulatory requirements that will deliver the product meeting customer requirement consistently
 
JV Project Director will communicate Quality Policy to all stake holders and interested parties and create
awareness among the project team for its understanding and application.
 
The quality policy will be implemented through our project quality management system and periodic audits,
project reviews will be used to verify conformance with requirements, assess continuing suitability and
effectiveness with company requirements. 9
Project Quality Objectives
Section 6.0 PQP - Project Quality Objectives 
Following are the project quality objectives which are specified and recommended by the company
Compliance: Assure compliance with project specified requirements including project specifications,
national and international code and standards and statutory requirements where applicable
Technical Integrity: Assure that technical integrity is verified and maintained in all the project phases
Objective Evidence: Assure the evidence of “conformance to requirements” is clearly identified,
recorded and maintained. Identify, compile and verify quality records and documentation in a timely
manner during the life of the project
Vendor / Supplier / Sub-Contractor Quality Management: Assure supplier and sub-Contractor
manage quality in line with company quality requirements stated and implied
Lesson Learned and Continual Improvement: Recognize and apply lesson learned during the project
execution at various stages based on in house LL module and strive for continual improvement
throughout the project duration
ICV – Assure compliance to Schedule 17 of the Contract. Contractor, Subcontractors and Vendors to
contribute to Company’s objective of increasing in-country value (ICV) in Oman. For ensuring the in
country value, EPC contractor will utilise local companies to provide construction material, services and
equipment’s.
The above quality objectives will be further developed and detailed for different project phases as
appropriate, Key performance Indicators will be developed in line with above objective and same will be
monitored and reviewed as part of quality management system
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Project Quality Strategies
Section 7.0 PQP- Project Quality Strategies
Adopt “Right First Time” approach to minimize the amount of checking and rework. SQM will roll
out to site, to ensure we adopt the policy at the commencement of site-works.
Inbuilt Quality- Quality Built by Design.
Proactive Approach- Defect Prevention rather than detection and correction
Resources: Engage and use an effective, competent and skilled project team utilizing project and
group expertise available in the company that satisfies the needs of the project
Compliance: Clear and timely communication of requirements to the project team as well as
Contractors and suppliers. Adopt ISO 9001 as quality system standard applied to the project by all
parties. Verify and document compliance to the requirements through audits / reviews and
surveillance
Technical and Project Assurance : Establish an integrated Project Controls & Assurance Plan
that will be implemented to manage quality through the measurement of critical parameters in key
business processes, ensure compliance with Project requirements, demonstrate assurance to
Project stakeholders, provide clear audit trails and assess the continuing effectiveness of the
QMS. Ensure decisions and approvals of project deliverables by the competent authority through
the approved key personnel’s (as specified in contract).
Risk-based Quality Management System: Utilize a risk based quality audit and quality
intervention and criticality rating process for services, equipment, products, goods, and materials
to determine the appropriate level of quality assurance, surveillance and inspection activity.
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Overview of Project QMS
 Customer requirements are Management’s top priorities.
 QMS is managed through a web based electronic application.
 Project Quality Plan (PQP) is developed based Company Quality Management Plan PLN-1500-1000-001 & Company
Specification for Quality Management SPC-1500-1000-00 and Part 4 section 6 Quality Management DRP001-FED-GSU-U-000-
416
 PQP shall be applied by entire Project team, throughout the project duration, including Sharjah Home office, Value
Engineering Centers, Subcontractors and Site location.
 Quality Audit Procedure & Plan
 Non-conformance Procedure
 QA/C implementation During Engg.
 QA/C implementation During Procurement
 QA/C implementation During Construction
 Inspection Coordination procedure
 Key Performance Indicators (KPI)
 Management Review
 Continual Improvement

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Project Key Plans & Procedures
• Project Execution Plan • Document Control procedure

• Project Schedules • Risk Management Procedure

• Project Quality Plan • Management of Change Procedure

• Project Procurement Plan • Coordination Procedure

• Engineering Execution Plan • Field Change Procedure

• Construction Execution Plan • Punch Listing Procedure

• Interface Management Plan • Construction Procedure / MS for Lifting, Erection etc

• Project Risk Management Plan • Project Audit Procedure

• Commissioning and Start Up Plan • Project Non Conformity Procedure

• HSSE Plan • QA/QC Implementation During Engineering,

• Audit Plan / Schedule Procurement & Construction

• Training Plan • Material Control Procedure

Note – Project Web page is under construction, • Preservation Procedure

once ready key plans and procedures will be • Pre -Commissioning Procedures

published here • Performance Test Procedures

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 RIGHT FIRST TIME
There are four main Objective areas that have been
identified for all project phases ( EPC ) as being
critical to the success of the RFT process
SAFE, CLEAN, TIGHT, OPERABLE & MAINTAINABILITY

Identification of flaws during Design Reviews /

Studies
Implementation of Lessons Learned (LL) at Design
phase

Identification of flaws during

Vendor Kick off meeting
Vendor Bid – Clarification meeting
Vendor Pre-Inspection meeting
Petrobras P-36 Semi submersible
Implementation of LL towing to location. March 2001

Shop Inspections using

Approved Inspection and Test plans
Approved Drawings & Datasheets
Approved Procedures
Check list / Preservation / Record photographs
Implementation of LL during Manufacturing

Tool Box Talks

Line Walk down
Approved Site ITP’s / QCP’s/ITR’s/Risk studies
Box-up Inspections / Leak test
Implementation of LL

Dry out / Blow Out/ Target plates /

Leak test
Borescope Inspection
Flange Management
SAT tests
Implementation of LL
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Individual & Performance Test
Cost of Quality
Cost of Achieving Good Quality
• Prevention costs- costs incurred during product design
• Appraisal costs -costs of Inspection, Testing and analyzing
Cost of Poor Quality (CoPQ)
• Internal failure costs- include scrap, rework, Equipment failures, downtime
• External failure costs- include complaints, returns, warranty claims, liability
claims

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Quality Management – Construction & Completion
• Subcontractor Approvals
• Subcontractor Quality documents -based on contractor’s standard QCP / ITP and ITR
by incorporating project specific requirements The eight Golden Rules of Safety

• Subcontractor- to employ Qualified/competent personnel

• Material Receiving Inspection based on ITPs
• Positive Material Identification as per -DRP001-OUF-SPE-W-000-007.
• Ensure Material Identification and Traceability – Color coding etc.
• Welding Process Controls and NDE Inspection
• Inspection during Construction as per approved ITP- as per intervention stages
• Calibration of Subcontractor's- Measuring Devices and testing devices
• Maintain Inspection and Test Records- ITRs.
• Trainings where required
• Lessons Learned Implementation
• Field Engineering and Change Management
• Non conformance Controls- NCRs- Corrective actions
• Construction Audits & Management Reviews
• Daily Surveillance, Quality/ RFT Walkthroughs
• Close loop Quality management
• Certifications
• Adopt Right first time approach.

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Daily Surveillance at Site
Daily Surveillance will be conducted during
construction works at site, report and
discuss findings that have a potential to
cause non-conformities.

It work as an early warning system to identify

non- conformities and confidently assure that
the activities, as carried out are adequate as
part of the overall project risk management
program.

COMPANY, JV or Sub-Contractor’s relevant QC

Inspectors shall have full organizational
freedom to conduct surveillance during
construction works and report and discuss
findings

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 Project KPIs
Quality - HO      
Vendor Quality Document Review Cycle
1 % >80% within 2 weeks % of documents reviewed within 2 weeks vs. Documents Received
Time

2 NCR Response ( For Client NCRs ) % >80% within 1 week No of NCRs responded with prposed corrective actions

Rejection Status at vendors & Site Due to

3 % <1% % rejections vs. inspected items
Quality Shortcoming ( other than ESDR)
IRN within 5 working days of receipt of all IR and supplier documents
such as MTCs & Packing list .
4 Timely IRN Release % >90%
(IRNs on Hold due to Incomplete documentation and Documents with
Quality Issues are not to be considered)

Vendor Quality document approval Number of vendor documents approved in code-1 within 2nd revision
5 % >85% by Second revision
(Code-1) vs. number of vendor documents approved in code-1 after 2nd revision

Inspections visits aborted due to lack of Number of Inspection visits aborted Vs Number of Inspection visits
6 % <1% Inspection visits
readiness carried out

1 Weld Rejections      
% weld Joints rejected vs. Weld joints RT tested ( Reshoot joints
1.1 CS Pipeline % Max 5% Joint wise
shall not be considered )
% weld Joints rejected vs. Weld joints RT tested ( Reshoot joints
1.2 CS Pipeline % Max 1% Linear wise
shall not be considered )
For Fab shop Max 1% Joint wise % weld Joints rejected vs. Weld joints RT tested ( Reshoot joints
1.3 Utility Piping For Fabshops and Site %
For Site Max 3% Joint wise shall not be considered )
% weld Linear length rejected vs. Total Linear Weld length RT tested
1.4 Utility Piping % Max 0.5 % Linear
( Reshoot joints shall not be considered )
% weld Joints rejected vs. Weld joints RT tested ( Reshoot joints
1.5 Tank welding Joints % Max 5.0% shall not be considered )

% weld Joints rejected vs. Weld joints RT tested ( Reshoot joints

1.6 Tank welding Linear % Max 1.0% shall not be considered )

% of RFIs rejected vs. RFIs raised

2 Inspection Rejections (RFIs) % Max 2 %
(Excluding cancellations and postponements)
3 NDE Backlog % Max 10 % No of Joints Radiographed Vs No of Joints offered for Radiographed
For CS - Utility
150 (Rating) - Max. 5.5 %
300/600 - Max. 11 %
For CS Process -All other services
150/600 - Max 11 % Actual % of RT taken for the material type/ Pipe class Vs Specified RT
Excess RT Percentage (for Fab shops and
4 % For Stainless Steel %
Site ) 150 (Rating ) - Max. 5.5 % ( RT taken on Repairs/Reshoot joints shall not be considered )
300 (Rating) - Max 11 %
Jacketing
Circumferential Seams (All ratings)-
10.5%
No of Hydro tests failed Vs No of Hydro tests performed 18
5 Hydro test Failures at Project Site % 0% ( Leaks from gaskets/ temperory joints are not considered .
Leakages from Bare body is considered as failure in Hydro test )
Continual Improvement

PLAN 
Establish the objectives and processes necessary to deliver
results in accordance with the specifications.
DO 
Implement the processes.
CHECK 
Monitor and evaluate the processes and results against
objectives and Specifications and report the outcome.
ACT 
Apply actions to the outcome for necessary improvement. This
means reviewing all steps (Plan, Do, Check, Act) and modifying
the process to improve it before its next implementation.
Key Success Factors

• Leadership Commitment, Support & Involvement

• Understanding of requirements ( Client / Statutory / Corporate / Implied )
• Compliance to Project Plans, Procedures
• Right First Time and Every Time
• Effective Communication
• Keep it simple
• Monitor performance and effectiveness of process
• Manage the Risks
• Client Satisfaction

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Any Questions ?

Thank You

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