ge oil & gas quality manual 13 mb

QUAtGEO&G Rev. 2.0 – April 2014 QUALITY

Quality at GE Oil & Gas

GE imagination at work

GE Oil & Gas

2 - Quality at GE Oil & Gas

QUAtGEO&G Rev. 2.0 – April 2014

TABLE OF CONTENTS GE Oil & Gas and Quality Visions 4Our Customer Commitments 5 - 7The Quality Organization and Quality Policy 8 - 11Quality Management System 12 - 15Key Business Processes 16 - 21Quality Control Mechanisms 22 - 23ISO Cross-Reference 24 - 26

SUMMARY AND DISCLAIMER There has never been a more exciting time to be in GE Oil & Gas.Fuel, electricity and power are the backbone of modern society. If you are missing any one of the three you can’t compete in the global market, care for your people and grow as a society. At GE Oil & Gas we have committed ourselves to tackling the world’s toughest energy issues.This document provides an overview of the Quality Management System (QMS) that GE Oil & Gas has established to meet its commitment to quality. It describes the organization’s key business processes as well as the mechanisms that have been put in place for effectiveness and control of these processes.GE Oil & Gas audits, monitors, measures and analyzes these processes:• toachieveplannedresultsandconsistentlyprovideproducts

meeting the customer and applicable statutory and regulatory requirements,

• tocontinuallyimprovetheeffectivenessofitsQualityManagement System and enhance customer satisfaction by meeting customer requirements.

Scope: The GE Oil & Gas QMS applies across GE Oil & Gas and encompasses all of its products and services.

The content of this document is translated into the Global Quality Management System Manual OGQ-0100 and a set of formal procedures within the GE Oil & Gas’s Quality Management System. All GE Oil & Gas employees must comply with these procedural requirements. These procedures are available for all GE Oil & Gas employees in the GE Oil & Gas QMS Document Management System (Documentum).This document is intended to provide general information regarding GE Oil & Gas’s Quality Management System. Not all of the processes described will necessarily apply to all customers. This document does not constitute any offer, obligation, or representation. GE Oil & Gas’s responsibilities to its customer will be as set out in the contract between them.





GE OIL & GAS AND QUALITY VISIONS

Powering Potential GE Oil & Gas is a world leader in advanced technologies and services with more than 39,000 employees in more than 100 countries supporting customers across the industry – from extraction to transportation to end use. Making the environment, health & safety, quality & integrity our highest priorities is The Way We Work.

Quality at GE Oil & Gas - The Vision To be the global industry quality leader based on our shared commitment to a culture of quality compliance that enhances both customer and shareholder value.

GE Oil & Gas CEO Statement of Intent As one company and one team, we are personally committed to working together to solve problems and exceed expectations every time, every day, with a great passion for our customers.Quality is the core of our business. Our actions today protect our legacy and enable our future.We are totally engaged to doing it right, being recognized as a leader for Quality in the eyes of our Customers and making sustainable improvements visible to them and able to address their needs and exceed their expectations.Therefore, I am asking each and every employee in our business to make a personal commitment to building, maintaining and improving in GE Oil & Gas a high culture of quality aimed at error prevention and continual learning from past mistakes. Our commitment begins by understanding fully, following fairly and executing faithfully our quality policy and procedures.Since each of us is responsible for the quality of the products and services we deliver to our Customers, I strongly encourage all the employees to stop the line to prevent passing a defect downstream internally or to our Customers, to continually simplify and improve our operations and infrastructure and ultimately to drive customer satisfaction and compliance to applicable internal, customer and regulatory requirements.Our Customers deserve our full commitment to quality, and our shareholders expect nothing less.



OUR CUSTOMER COMMITMENTS

Customer Satisfaction - Our Passion, Our Commitment

GE Oil & Gas is passionately committed to driving customer satisfaction with all products and services we offer—and building long-term loyalty by working with our customers to help them be successful.

In particular, GE Oil & Gas:• definesthecustomersatisfactionattributesappropriatetothe product or service delivered

• definesthesourcesandthemethodsusedfordatacollectionto evaluate Customer Satisfaction

• analysescustomersatisfactionmeasurementresults,as appropriate, in order to identify improvement opportunities

• reportstomanagementinaccordancewithdefinedoperating rhythms, including Quality Management Review



Net Promoter® Score (NPS)

“On a scale of 0 to 10, how likely would you be to recommend GE Oil & Gas?”

• GEOil&GasconductstwotypesofNPSsurveys: - Relationship NPS - Conducted periodically on a sample basis

to gauge overall customer satisfaction with GE Oil & Gas - Transactional NPS - Ongoing surveys to gauge customer satisfactiononspecificeventsorprojects,suchasanoutage, part sale, or repair

• ForeachtypeofNPSsurvey,theQualityteamsanalyzethe results (including comments) to identify key areas for improvement

• Theseteamsworkwithregional,functional,andexecutiveleadership teams to develop an integrated action plan to drive impactful improvement

• Actionplansandsubsequentresultsarereviewedroutinelyatalllevels within the organization.

Net Promoter® is a registered trademark of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

Net PromoterScore

% Detractors(0 through 6)

% Promoters(9s and 10s)

0 10987654321

Detractors Passives Promoters

Not at all likely

Neutral

Extremelylikely

Customer Requirements

• GEOil&Gasunderstandscustomerrequirements associated with its products and services including those associated with their delivery and ongoing support

• Thisunderstandingwillcomefromwhatisstatedinthecontract,definedby applicable statutory and regulatory authorities, and the customer’s intended use of the product or service

• GEOil&Gashasestablishedchannelsfor effective communication of customer requirements as well as changes thereto throughout its organization.

Regulations And Standards

• EnsuringcompliancewiththeapplicableRegulations and Standards for every region where its products and services are sold is of paramount importance to GE Oil & Gas

• Managementteamsatalllevelsinthebusiness are engaged in a continually improving process of reviewing the regulatory landscape, understanding technical applicability, training, auditing, and rigorous adherence to policies and procedures with the ultimate goal of ensuring that products and services are compliant with the applicable laws and regulations of the region and locally where they are being sold

• GEOil&Gasunderstandsthatitscustomers count on GE to provide products that are compliant and is committed to meeting that expectation.

QUALITY





THE QUALITY ORGANIZATION AND QUALITY POLICY

The Quality Organization

More detailed organization structure documentation is available upon request.

Quality Policy

Every GE Oil & Gas employee is committed to• Passionatelydrivingcustomersatisfactionwithallproductsandservices

we provide and building long-term loyalty by partnering with customers to help achieve their success

• Ensuringstrictcompliancewithlawsandregulationspertainingtothequality, safety and performance requirements in every country where GE Oil & Gas products and services are offered

• SustainingcontinuousimprovementintheeffectivenessofGEOil&GasQuality Management System.

We shall meet these commitments with the highest integrity, through clearlydocumentedqualityobjectives,routinequalitymanagementreviewsand an all-encompassing Quality culture that employs the Lean Six Sigma methodology.

Product Lines QualitySupport Functions

GE Oil & GasPresident & CEO


Management’s Commitment to Quality

Executive leadership at all levels of GE Oil & Gas deliver on their commitment to the successful development and implementation of the QMS and continually improve its effectiveness by: •DeployingtheGEOil&GasQualityPolicy

• Establishingmeasurablequalityobjectivesthat enhance customer satisfaction

•Communicatingtothebusinesstheimportance of meeting customer and regulatory requirements

•Conductingmanagementreviewsatappropriate levels within the organization

• Ensuringthebusinesshasalloftheresources it needs to achieve the goals of the QMS.

Quality is everyone’s responsibility!


GE Oil & Gas Quality Management Review

Executive leadership review at planned intervals the QMS regarding its continuing suitability, adequacy and effectiveness in order to satisfy the Quality Policy and achieve thequalityobjectivesoftheorganization.Appropriatestrategic decisions are then taken to improve the performance of the QMS and of product related to customer requirements.Inputs to Quality Management Review include• resultsofaudits• customerfeedback• processperformanceandproductconformity• statusofpreventiveandcorrectiveactions• follow-upactionsfrompreviousmanagementreviews• changesthatcouldaffectthequalitymanagement system• recommendationsforimprovement.

Key performance Indicators reviewed are as follows- Net Promoter Score (NPS)- On-Time Delivery (OTD)- Customer Issue Resolution- Cost of Quality (COQ)- Escaping Defects

• TheKPIsaredeterminedthroughcustomerfeedback and defect trends • TheyhaveoperationaltargetsandLeanSixSigma projectsassignedtothem• Theyaretrackedthroughweeklyteamreviews, monthly reviews, quarterly operational reviews, and annual progress reports and validation



Review Rhythm … How We Track Ourselves

• ManagementreviewsatOil&Gasandbusiness level

• SeniorLeadershipreviews• InternalQualityReviews• Customeroverviewandregionaloutlook• Customerissueresolutionreviews• CommercialReviews• HumanResourcesSessionC• ProductLineReviews• BluePrintsReviews• ProductSafetyCouncil• Compliancereviewboard• NPIreviews• ProcessImprovementsReviews



QUALITY MANAGEMENT SYSTEM

FocusingontheBasicsforaStrongQMS

High Quality Documents

and Drawings

ContinuousImprovement

Training and

Staffing

Auditing and

Monitoring





Document Control

• Withrespecttocontrolleddocuments,GEOil&Gas defines,establishesandmaintainsdocumentcontrol methods to enable users to readily identify and access the current revision of all such documents. Document management systems store current versions of such documentsbyuniqueidentifierandrevisionlevel

• Controlleddocumentsneedtobe: - Legible - Identifiable - Retrievable

• Adocumentedproceduredefinescontrolsforbothinternal and externally supplied controlled documents that include: - Identification-Retrieval - Storage - Retention time - Protection - Archival and disposition - Access authorization.

The requirements regarding Document Control have been defined in the procedure OGQ-0101 - Document Control.

Training and People

• GEOil&Gasassignsresourcesto: - Plan, develop processes, and deliver products to meet or exceed customer requirements - Maintain and continually improve the quality management system - Enhance delivered quality and customer satisfaction

• GEOil&Gasmanagersarecommittedtodeploying personnelthatareproficientintheproceduresand technical capabilities required for the activities they are assigned

• GEpoliciesregardingEmployeeHealthandSafety andEnvironmentalProtectiondefineimplementation of requirements for adequate and safe facilities and plant activities.



Auditing

Focus for Internal Audits • CompliancewithGEOil&Gas’sQualityManagementSystem requirements

• Testeffectivenessoftheprocess:doestheprocessworkas intended and are planned results achieved?

• Risk-basedAuditPlanningbasedonstatusandimportanceof the process as well as results of previous audits

• Auditresults,includingtimelinessandeffectiveness of Corrective and Preventive Actions, are reviewed by management at all levels of the organization.

Audit Mechanisms • Localaudits:forhighfrequency,detailedprocessassessments

• Independentinternalaudits:full-timeandvolunteerauditors driving cross-organizational learning

• Customerandregistraraudits.

Audits are performed to several applicable industry standards. Certification details are available upon request. The requirements regarding Internal Audit have beendefined in the procedure OGQ-0127 - Internal Audit.

Monitoring and Measurement

• OrganizationswithinGEOil&Gasdefineandimplement monitoring and measurement needed to demonstrate conformity of product and the quality management system, and to identify opportunities for improvement by:

- Settingspecificandmeasurablequalityobjectivesand verifyingthattheseobjectivesarebeingachievedwithinthe specifiedtimeframes- Verifying that product requirements are met at the appropriate stages of production and/or service provision through in-process inspection and testing.



Continuous Improvement

• GEOil&GascontinuallyimprovestheeffectivenessofitsQMS through: -qualitypolicyandobjectives - audit results - customer satisfaction results - conformity to product requirements - characteristics and trends of processes and products - supplier performance - results of data analysis - corrective and preventive actions - management reviews

• GEOil&GasutilizesLeanSixSigmamethodologiesandtoolsalong with other quality management activities to drive sustainable improvements.

Corrective and Preventive Action

• InordertodrivesustainableCorrectiveandPreventiveAction,GEOil & Gas has established and maintains a process for Continuous Improvement of its products, services, and processes. This process definesrequirementsfor:

- Screening nonconformances, including customer complaints, auditfindings,andresultsofinternalandexternalqualitycontrol mechanisms

- Analyzing and determining the causes of the nonconformances - Evaluating the need for corrective and preventive action—to

prevent recurrence of the nonconformances and to prevent occurrence in related areas

- Determining and implementing the actions needed - Verifying the effectiveness of the actions taken.

The requirements regarding Corrective Action andPreventive Action have been defined in the procedureOGQ-0131 - Continuous Improvement.



KEY BUSINESS PROCESSES

SALES MANAGER

REQUEST FOR TENDER

PROPOSAL

SIGNED CONTRACT

CUSTOMER

SUPPLIERS

PARTNER

NEW PRODUCTINTRODUCTION

CONSTRUCTPROPOSALS ANDSUPPORT SALES

INQUIRY TO ORDER

COMMERCIALAGREEMENTS

NEW PRODUCTS

BUILD PRODUCT/DELIVER SERVICE

ORDER TO REMITTANCE

PURCHASING ANDSUPPLIER

MANAGEMENT

BUILD PLAN

PURCHASE ORDER

PRODUCT/SERVICE

SUPPLIER PURCHASINGCONTRACTS

PURCHASINGSPECIFICATIONS

WBS WORKBREAKDOWNSTRUCTURE

PRODUCT/SERVICE DELIVERY

PRODUCT/SERVICE

DEFINITION

TECHNICALCUSTOMERSUPPORT

SUPPORTREQUEST

CUSTOMER

STRATEGICPLANNING

HUMANRESOURCE

MANAGEMENT

MANAGEMENT PROCESSES

BUSINESS PROCESSES

FINANCIALMANAGEMENT

$$

SECURITY OFPERSONNEL,

FACILITIES ANDEQUIPMENT

QUALITYMANAGEMENT

SUPPORT PROCESSES

INFORMATIONMANAGEMENT

QQ ii

MARKET FEEDBACK

Inquiry-to-Order (ITO)

Inquiry-to-Order Process

• Inquiry-to-Order(ITO)atGEOil&Gasprovidesastandardand consistent process for developing commercial opportunities. GE Oil & Gas follows a risk review process to balance customer requirements with GE capabilities and the ability to manage any identifiedrisk

• TheITOprocessisdividedintofivephases: - Opportunityidentificationandscreening - Opportunity screening and bid/no bid decisions - Quote and proposal development, submission approval - Negotiated price and terms approval - Hand-off to the Order-to-Remittance process

1 5432

OPPORTUNITY IDENTIFICATION

R0

Owner Contributor

HAND-OFFTO OTR

R3R2R1

NEGOTIATEDTERMS APPROVAL

SUBMISSIONAPPROVAL

PROPOSALDEVELOPMENT

OPPORTUNITYSCREENING

PROCESSPHASE

RISK REVIEW

SALES

MARKETING

COMMERCIALOPERATIONS

RISK MANAGEMENT

PRICING

ENGINEERING

SOURCING

PRODUCTION

QUALITY

FINANCE

CONTRACTMANAGEMENT

EHS

Inquiry-to-order (ITO)



Order-to-Remittance (OTR)

Order-to-Remittance Process

• TheOrder-to-Remittance(OTR)processcoverstheexecutionofa sales contract from the time that the order is initiated to the time that finalpaymentisreceived.

• TheOTRprocessisdividedinto5phases: - Resource allocation-thatincludesdetailedtechnicaldefinitionas well as planning and scheduling of equipment, material and human resources - Procurement - of material resources to complete the order - Product realization - where in acquired resources are

transformedintofinalproduct - Fulfillment - where in the product is delivered to the customer specifiedlocationandthetermsofthecontractarefulfilled - Receipt of Payment

• Throughouttheprocess,controlpointsareinplacetoverifyand validate whether customer and regulatory requirements are met.



1 5432

RESOURCEALLOCATION

Owner Contributor

RECEIPT OFPAYMENT

FULFILLMENTPRODUCTREALIZATION

PROCUREMENT

PROJECTMANAGEMENT

ENGINEERING

SOURCING

PRODUCTION

FINANCE

QUALITY

Order-to-Remittance (OTR)

New Product Introduction (NPI)

New Product Introduction Process

• NewProductIntroductionspanstheentireproductdevelopment cyclefromtheidentificationofanewbusinessopportunitytothe post commercial introduction of the new product.

• Executionteamsexistforeverydefinedprogram.Teamsare responsible for achievement of all commercial and technical product objectives,including: - Meeting the product development and marketplace introduction schedules - Productperformance,programcost,productcost,andfinancial objectives - Validationandverificationperformedthroughouttheprocessto confirmproductmeetsrequirements

• Specificreviewsareutilizedtocontinuouslyassessiftheprogramis fulfillingrequirements.



1 873 6542

OPPORTUNITYIDENTIFICATION

Ower Contributor

FIELD VALIDATION

SERIAL PRODUCTION

MEASUREMENT AND

FEEDBACK

INITIAL PRODUCTION FACTORY TEST

PRELIMINARY DESIGN

DETAILDESIGN

CONCEPTUAL DESIGN

PRODUCT OPTIONS

PRODUCTMANAGEMENT

MARKETING

PROGRAMMANAGEMENT

ENGINEERING

SALES

PRODUCTION

COMMUNICATIONS

SOURCING

SERVICES

QUALITY

FINANCE

LEGAL

New Product Introduction (NPI)

Supplier Quality

GE Oil & Gas expects the same high quality standards from our externalsuppliers as we produce internally. GE Oil & Gas’s Sourcing function hasestablished rigorous processes around supplier quality and oversight toenable and verify this quality level for all sourced components and services.

Supplier ApprovalProcess

Approved to do businesswith GE … •EHS/Labor • Finance •TechnicalCapability

QualificationProcess

Released for Production • ProductCompliance • ProcessCapability

Surveillance Process

Sustaining Quality… • Monitoring • Auditing

PERIODICAL SURVEILLANCE REQUIRED • Qualitysystemsassessment(ifnotISOcertified)• Productaudit-compliancetotechnical requirements • Processaudit-compliancetospecialprocesses

ADDITIONAL AUDIT/INSPECTION REQUIREMENTS DEFINEDBY:• Customerrequirements,risk,supplier performance, defects



MUTUAL NON-DISCLOSURE AGREEMENT • Protectsproprietaryinformationforbothparties

INTEGRITYACKNOWLEDGEMENT• Supplier’scommitmenttocomplywithGE’s requirements

EHS(ENVIRONMENTAL,HEALTH,SAFETY)QUESTIONNAIRE• ProvidesbasicEHSdataforevaluationofEHS practices

GENERAL SUPPLIER PROFILE • Basicdatatosupportquality,financialviability, and overall risk

CRITICAL HARDWARE REQUIRES • Characteristicaccountability• Productqualityplan,manufacturingprocessplan• Processrisk(FMEA)

TEAM APPROVALS REQUIRED • Supplierqualityengineer,designengineer, materials engineer

QUALITY CONTROL MECHANISMS

Record Control

• GEOil&Gasdefines,establishes,andmaintains records to provide evidence of conformity to requirements and the effectiveness of their QMS

• Recordsneedtobe: - Legible - Identifiable - Retrievable

• Documentedproceduresdefine controls for:

- Identification - Storage - Protection - Retrieval - Retention time - Disposition of records.

The requirements regarding Record Control have been defined in the procedure OGQ-0102 – Record Control.





Control of Monitoring and Measuring Devices

•GEOil&GasutilizesawidevarietyofMeasuringand Test Equipment (M&TE) to inspect and measure product quality in development, production, and service work. This includes measuring instruments, software, measurement standards, reference material, and auxiliary apparatus or combination thereof

•TheM&TEiscalibratedatspecifiedintervalsorpriorto use against measurement standards traceable to NIST or equivalent international or national standards. If no such standards exist, the basis used for calibration is recorded. The calibration status is visuallyidentifiableandaregisterismaintainedofall M&TE requiring calibration. M&TE is protected from damage and deterioration during handling, maintenance, and storage

•WhenM&TEisfoundnottoconformtorequirementsor an out of tolerance condition occurs, appropriate actions are taken.

Control of Nonconforming Product

•Aproductorserviceisconsiderednonconformingwhenitdoesnotmeetspecifiedrequirements.Onceidentified,nonconformancesarerecordedanddispositioned through GE Oil & Gas’s quality systems

•Recordednonconformancesarereviewedregularlyfor the purpose of understanding the defect and providing a basis for continuous improvement.

The requirements regarding Control of Nonconforming Product have been defined in the procedure OGQ-0129 - Control of Nonconforming Product.



ISO CROSS-REFERENCE Refer to Table 1 for a cross-reference of ISO 9001:2008 requirements to the corresponding GE Oil & Gas QMS Procedures. Table 1 references the applicable procedures of the GE Oil & Gas QMS. Latest applicable procedures are controlled and maintained in Documentum.

OGQ-0100 is the GE Oil & Gas Quality Management System Manual

ISO Mandatory Procedure

Table 1

ISO Section Description Procedures of System Element 1 Scope OGQ-0100

1.1 General OGQ-0100

1.2 Application OGQ-0100

2 Normative References OGQ-0100

3 TermsandDefinitions GE O&G QMS Lexicon

4 Quality Management System OGQ-0100

4.1 General Requirements OGQ-0100

4.2 Documentation Requirements OGQ-0100

4.2.1 General OGQ-0100

4.2.2 Quality Manual OGQ-0100

4.2.3 Control of Documents OGQ-0101

4.2.4 Control of Records OGQ-0102

5 Management Responsibility OGQ-0100

5.1 Management Commitment OGQ-0100

5.2 Customer Focus OGQ-0100

5.3 Quality Policy OGQ-5.3-0066

5.4 Planning OGQ-0100

5.4.1 QualityObjectives OGQ-0100

5.4.2 Quality Management System Planning OGQ-0100



ISO Section Description Procedures of System Element

5.5 Responsibility, Authority and Communication OGQ-0100

5.5.1 Responsibility and Authority OGQ-0100

5.5.2 Management Representative OGQ-0100

5.5.3 Internal Communication OGQ-0100

5.6 Management Review OGQ-0105


5.6.2 Review Input OGQ-0105

5.6.3 Review Output OGQ-0105

6 Resource Management OGQ-0100

6.1 Provision of Resources OGQ-0100

6.2 Human Resources OGQ-0106


6.2.2 Competence, Training and Awareness OGQ-0106

6.3 Infrastructure OGQ-0100

6.4 Work Environment OGQ-0100

7 Product Realization OGQ-0109 OGQ-0110 OGQ-0111 OGQ-0112

7.1 Planning of Product Realization OGQ-0100

7.2 Customer-related Processes OGQ-0100 OGQ-0111

7.2.1 Determination of Requirements OGQ-0111

7.2.2 Review of Requirements OGQ-0111 Related to the Product

7.2.3 Customer Communication OGQ-0111 OGQ-0130

7.3 Design and Development OGQ-0110 OGQ-0116

7.3.1 Design and Development Planning OGQ-0110 OGQ-0116

7.3.2 Design and Development Inputs OGQ-0110 OGQ-0116

7.3.3 Design and Development Outputs OGQ-0110 OGQ-0116



ISO Section Description Procedures of System Element

7.3.4 Design and Development Review OGQ-0110 OGQ-0116

7.3.5 DesignandDevelopmentVerification OGQ-0110 OGQ-0116

7.3.6 Design and Development Validation OGQ-0110 OGQ-0116

7.3.7 Control of Design and Development Changes OGQ-0110 OGQ-0116

7.4 Purchasing OGQ-0107

7.4.1 Purchasing Process OGQ-0107

7.4.2 Purchasing Information OGQ-0107

7.4.3 VerificationofPurchasedProduct OGQ-0107

7.5 Production and Service Provision OGQ-0117

7.5.1 Control of OGQ-0117 Production and Service Provision

7.5.2 Validation of Processes for Production OGQ-0123 and Service Provision

7.5.3 IdentificationandTraceability OGQ-0117

7.5.4 Customer Property OGQ-0132

7.5.5 Preservation of Product OGQ-0124

7.6 Control of Monitoring and Measuring Equipment OGQ-0125

8 Measurement, Analysis and Improvement OGQ-0100

8.1 General OGQ-0100

8.2 Monitoring and Measurement OGQ-0100

8.2.1 Customer Satisfaction OGQ-0126

8.2.2 Internal Audit OGQ-0127

8.2.3 Monitoring and Measurement of Processes OGQ-0100

8.2.4 Monitoring and Measurement of Product OGQ-0128

8.3 Control of Nonconforming Product OGQ-0129 OGQ-0130

8.4 Analysis of Data OGQ-0122

8.5 Improvement OGQ-0131

8.5.1 Continual Improvement OGQ-0131

8.5.2 Corrective Action OGQ-0131

8.5.3 Preventive Action OGQ-0131



QUALITY

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