A three-part approach for improving the quality of me- chanical equipment is described in this recommended prac- tice, consisting of a the traditional methods used to help assure quality
Scope
This practice offers guidelines to enhance the quality of mechanical equipment, aiming to benefit users, contractors, and suppliers alike By fostering trust, teamwork, and communication, it seeks to improve relationships among all parties involved However, it does not serve to establish certification or compliance with any specific quality system specification.
This article outlines a three-part strategy for enhancing the quality of mechanical equipment It includes traditional quality assurance methods, techniques for identifying suppliers with effective quality systems that minimize the need for user involvement, and collaborative suggestions for users, contractors, and suppliers to work together to improve overall quality.
Section 2 outlines the processes for prequalifying suppliers, developing detailed specifications, holding communication meetings, auditing designs, implementing manufacturing quality surveillance, facilitating thorough factory testing, and performing on-site equipment inspections before the start-up.
Section 3 and Appendix A provide essential guidelines for assessing the quality system and its effectiveness utilized by suppliers Key focus areas include management's commitment to the quality system, the system's structure, relationships with subsuppliers, training initiatives, evidence of ongoing quality improvement across the organization, and the supplier's performance on recent projects.
Section 4 addresses ways that users, contractors, and sup- pliers can all work, together to improve their quality systems
The article emphasizes the importance of uniformity and collaborative development in equipment requirements, highlighting key aspects such as risk sharing, effective communication, training, and constructive feedback It encourages users to minimize lengthy supplemental specifications and instead focus on utilizing API standards and data sheets for better efficiency.
This recommended practice enhances the referenced standards by focusing on the development and evaluation of systems that integrate continuous quality improvement, specifically tailored for the mechanical equipment industry.
Definition of Terms
This recommended practice includes specific terms that need clarification The definitions provided below will help readers grasp the contextual meanings of these terms used throughout the document.
This recommended practice does not aim to establish a new definition of quality; rather, it suggests understanding quality through a traditional definition supplemented by clarifying statements.
Quality has traditionally been defined with phrases like
"Qualifying" in the context of customer satisfaction involves understanding who the customer is and accurately meeting their requirements consistently and punctually It emphasizes performance leadership by ensuring that the right actions are taken correctly on the first attempt Customers define quality through their desire for products and services that fulfill their needs and expectations throughout their lifecycle, all while providing value at a reasonable cost Ultimately, qualifying means addressing the needs, desires, and expectations of customers effectively.
A Quality System encompasses the activities, procedures, processes, resources, and organizational structure aimed at controlling, assuring, and enhancing the quality of products or services It may include elements such as quality control, which involves measuring and testing to ensure compliance with established standards; quality assurance, which focuses on monitoring and verifying that quality control methods are effective; and quality improvement, dedicated to the ongoing enhancement of quality across all levels and functions within an organization.
A Total Quality System is defined as a comprehensive quality framework that incorporates all three key elements outlined in section 1.2.2 This system engages every individual across all organizational functions and is committed to the control, assurance, and continuous improvement of quality.
The user serves as the final buyer and operator of mechanical equipment, with their needs and expectations for the equipment's suitability and reliability guiding the efforts of contractors and suppliers.
The contractor offers engineering, procurement, and construction services, serving as a vital link between users and suppliers They are responsible for the specification, purchase, and installation of mechanical equipment.
1.2.6 Supplier, in the context of this recommended practice, refers to a manufacturer of mechanical equip- ment and/or subsuppliers of equipment components and assemblies.
How to Use This Recommended Practice
This recommended practice is designed to help users and contractors identify potential suppliers, assess their quality systems, and determine the best collaborative approach Section 2.2 outlines the criteria for evaluating a supplier's capability to provide the necessary equipment for specific services Section 3 and Appendix A detail key elements for assessing the effectiveness of a supplier's quality system, enabling informed decisions on collaboration methods, whether through traditional approaches or reduced involvement The evaluation materials are tailored for those experienced with mechanical equipment and quality systems Section 4 offers guidance for enhancing the relationship between users, contractors, and suppliers, focusing on reliance on the supplier's internal quality systems and continuous improvement Figure 1 illustrates the recommended approach.
Continuous Improvement of This Recommended Practice
Constructive feedback is essential for the ongoing enhancement of this recommended practice Readers are invited to utilize the form provided in Appendix C, which can be submitted to the director of the Manufacturing, Distribution, and Marketing Department of M I.
]American Society of Mechanical Engineers, 345 East 47th Street, New York, New York 10017
*International Organization for Standardization IS0 publications can be ob- tained from the American National Standards institute
’American National Standards Institute, 1 1 West 42nd Street, New York, New York 10036
4Amencan Society for Quality Control, P.O Box 3005,611 East Wisconsin Ave., Milwaukee, WI 53201-3005
5Makolm Baidrige National Quality Award United States Department of Commerce, National institute of Standards and Technology, Gaithersburg,
6Depamnent of Defense Obtain from Commanding Officer, Naval Publica- tions Forms Center, Attn: NPFC 105,5801 Tabor Avenue, Philadelphia, PA
QUALITY hPRoVEMENT MANUAL FOR MECHANICAL EQUIPMENT IN PETROLEUM, CHEMICAL, AND GAS INDUSTRIES 3
METHODS TO
General
2.1.1 The traditional approach, that is, the use of detailed specifications and monitoring by inspection, may be chosen for many reasons The purchaser or user may not want to re- linquish methods that have been successful The purchaser or user may not have the time to audit a supplier’s quality sys- tem or may have audited the system and deemed it to be in- adequate The purchaser or user may have reviewed a supplier’s quality system and found it to be adequate but may want to oversee a test of the system to be sure that it works for the contract in question
2.1.2 With the traditional approach, the need for proper communication cannot be overemphasized There are several layers within a user’s organization, a contractor’s organiza- tion, and the supplier’s and subsupplier’s organizations that are involved from the conception of the requirements to the completion of the specified product, its installation, and its implementation The organizations involved in each activity must be informed of, adhere to, and produce the intent of the specification
2.1.3 The following are broad categories of major areas that must be addressed when the traditional approach is used and must be considered for the transition approach as well
In any project, certain key areas are essential for all participants, including supplier qualifications, comprehensive specifications, communication meetings, design audits, manufacturing quality surveillance, factory testing, and field inspection prior to start-up.
Supplier Qualifications
To ensure the purchase of quality equipment for a plant, facility expansion, or renovation, the process typically begins with an approved bidders list This list can originate from the user's prior experiences, be based on successful contractor recommendations, or be collaboratively created by both parties as equipment needs become clearer Depending on the equipment's availability and user preferences, the list may allow for global competition or be restricted to specific source countries.
The final approved bidders list must include only the names of acceptable and qualified suppliers for a specific inquiry It is not necessary to list all suppliers of quality equipment, as various commercial factors may prevent some qualified suppliers from bidding Importantly, the list should exclude any unqualified suppliers.
2.2.2 SOURCES FOR EVALUATING SUPPLIER QUALIFICATIONS
Users and contractors have access to various resources for assessing the qualifications of suppliers and subsuppliers, which helps in deciding who will be included on an approved bidders list Key sources of information include the suppliers' experience, reference lists of operational installations, and feedback from suppliers about their interactions with subsuppliers.
Experience is a crucial factor for users and contractors when determining a supplier's qualification for an approved bidders list It is essential that this experience is recent, ideally obtained within the last three years.
The lifespan of equipment should ideally be assessed from its initial start-up to its current condition, typically over a span of five years or more The term "recent" highlights that equipment is developed and managed by individuals rather than corporations Given the frequent changes within companies, understanding how these shifts impact product quality is crucial A corporation may alter its name and structure while retaining the same personnel and quality standards it has upheld for years Conversely, a company with a long-standing name may have experienced significant changes in both staff and product quality.
Experience can be categorized as either first-hand, derived from the equipment that a user or contractor operates, or second-hand, gained through interactions with other users and contractors Regardless of the source, it is crucial to evaluate this experience objectively For second-hand experience, it is important to consult individuals who have directly managed the startup, operation, and maintenance of the equipment, as well as others involved in the initial specification and shop testing, if time allows.
QUALITY IMPROVEMENT MANUAL FOR MECHANICAL EQUIPMENT IN PETROLEUM, CHEMICAL, AND GAS INDUSTRIES 5
Supplier reference lists serve as valuable resources for users and contractors assessing a supplier's qualifications, though the level of detail can vary significantly While some lists are comprehensive, others may lack useful information Generally, these lists offer enough data to initiate the qualification process, but users should request any additional information necessary for a thorough evaluation Key dates, particularly installation and start-up dates, are crucial, often taking precedence over shipping or order entry dates, which may be the only ones the supplier can provide firsthand Installation lists should include the names of both users and contractors to facilitate communication, and they typically feature model designations or frame sizes along with details on the equipment's operating parameters.
A reference list alone often fails to clearly demonstrate a supplier's qualifications, as actual operating conditions may differ from initial specifications To gain a comprehensive understanding, it is essential to conduct follow-up contacts with users and contractors familiar with the referenced installations Conversely, a reference list can indicate a lack of current experience, which may warrant the exclusion of a supplier from an approved bidders list Additionally, the origin of the referenced equipment is crucial, as many suppliers operate through licensees or joint ventures in foreign countries, necessitating careful evaluation before attributing one source's experience to another.
To ensure a supplier's qualifications are relevant today, it is crucial that the entries on their reference list are up-to-date, reflecting their current experience and capabilities.
A supplier's reference list does not effectively indicate their success in designing and building equipment for conditions beyond their experience Some suppliers consistently outperform others, prompting users or contractors to seek methods for assessing this success as part of their risk management strategies In the absence of direct experience, users or contractors can reach out to other clients for feedback; positive responses can increase their willingness to accept associated risks.
Some extremely weil-qualified suppliers have had fewer start-up and operational problems with prototype equipment than other less-qualified suppliers have had with “near-dupli- cate” equipment
Major equipment packages for process plant installation often include raw materials and finished products sourced from subsuppliers, which the primary supplier does not produce To ensure minimum quality levels, users and contractors typically limit the sources of these materials by specifying acceptable subsuppliers in their equipment specifications These lists generally encompass items like instruments, motors, bearings, and seals, but usually exclude unfinished materials such as castings and forgings For these unfinished items, quality information primarily comes from feedback from the primary supplier While specific sources may not be identified before a purchase commitment, suppliers can provide a list of potential sources for major subsupplier purchases Although users or contractors rarely create such lists, they serve a similar purpose to a user's approved bidders list for suppliers.
When qualifying a supplier, both users and contractors must consider various technical and commercial requirements beyond just the supplier's ability to deliver quality products While they share many objectives, their agendas differ slightly, necessitating the supplier's accommodation of both parties Key areas of interest for both include the supplier's design tools, inspection and testing capabilities, and the equipment's field performance, as well as timely delivery and installation within budget During the engineering phase, the contractor typically focuses more on the scheduling and quality of the supplier's drawings, which impact civil, piping, electrical, and instrument design work In the erection and start-up phase, although both parties value the completeness of the supplier's instruction manual, the user places greater emphasis on sections related to maintenance, special tools, and spare parts.
Both users and contractors often will judge a supplier’s qualifications by the supplier’s comments and exceptions to
6 API RECOMMENDED PRACTICE 683 the applicable specifications Comments may be nothing more than correct interpretations of the specifications, in which case the comments may be readily acknowledged
Supplier comments that misinterpret specifications need clarification, which may lead to noting them as exceptions Exceptions to specifications can be categorized into three main types: (a) necessary deviations due to differences in the supplier's basic design, (b) deviations required to comply with mandatory codes or safety regulations, and (c) deviations made for economic or competitive reasons Category (a) typically requires the user's decision on the acceptability of the design difference.
To resolve conflicts, it is essential to rewrite the specifications as outlined in Item b Additionally, Item c complicates the evaluation of competing proposals and raises concerns regarding the supplier's qualifications A more effective strategy is needed to address these issues.
Item c would have the supplier include the cost of compli- ance in the proposal and offer a comment on the savings and effects on quality of the alternate offering
Suppliers on approved bidders lists are expected to possess in-house capabilities for designing and producing their proposed equipment This includes not only technical and engineering expertise but also advanced analytical tools and software to meet the demands for shorter timelines and complex designs Such in-house capabilities are crucial, especially when dealing with new process technologies that involve untested equipment, as they help mitigate risks associated with unproven solutions.
2.2.3.3 Machine Tools and Plant Layout
Comprehensive Specifications
A crucial element in conveying project requirements is creating a written specification that distinctly outlines both the commercial and technical facets of the project Specifications must be clear and concise, eliminating the need for readers to depend on references or interpretative efforts Here are some essential guidelines for crafting effective specifications.
Wherever possible, widely accepted industry standards, such as API standards, ASTM7 standards, ASME codes, and
ANSI standards, that have a broad base of distribution, un- derstanding, and acceptance should be relied upon
For projects requiring input from users, contractors, or suppliers, it is essential to utilize standardized data sheets, such as API data sheets, which are universally recognized by all stakeholders involved.
’ASTM, 1916 Race Street, Philadelphia, PA 19103-1187
In-house specifications are essential when standard specifications do not fully address the subject matter It is important to include only the relevant sections of an in-house specification to ensure clarity and appropriateness.
If possible, meetings with qualified suppliers should be held to agree on data sheet information and the industry standards that will be involved by the overall project specification
To ensure accurate equipment quotations from suppliers, the initial inquiry must encompass all essential information, including detailed technical specifications and comprehensive commercial terms.
The supplier must submit their proposal along with the necessary technical information If the proposal does not fully comply with the bid specifications, it should include comments and exceptions Comments should address any uncertainties in the bid specifications for clarification, while exceptions should indicate any aspects of the specifications that the supplier cannot or will not adhere to.
The comments and exceptions shall refer to the location of the relevant specification and, if possible, offer alternatives
The proposal shall include price and terms of delivery
The proposal must feature a comprehensive list of supplier drawings along with the submission timeline based on the order receipt date A standard list of vendor drawings is available in the API mechanical equipment standards, such as API Standard.
617) Drawings are usually submitted for information or for approval
Information drawings are provided for the purchaser to assess their compliance with contract specifications If the drawings do not align with the contract scope or if the purchaser intends to modify the scope, the supplier should be informed The supplier will maintain their delivery schedule unless the purchaser communicates otherwise.
Approval drawings are submitted for the purchaser's review to ensure compliance with contract specifications, and they must be returned to the supplier with either approval or necessary revisions Typically, the supplier will not advance until the drawings receive approval It is essential for the proposal to include an anticipated turnaround time for the purchaser's review of the approval drawings to meet the target delivery date.
2.3.2.4 Final Order comments and exceptions and commercial terms
The final purchase order shall include all agreed upon
Communication Meetings
Effective communication is crucial in project management, serving as the foundation for conveying user needs to contractors, suppliers, and subsuppliers While much of this communication occurs verbally, it ultimately shapes the final written commercial documents A clear communication channel ensures that the delivered product meets its intended function or need while minimizing costs and delays.
The pre-award meeting is essential for establishing a preliminary timetable for subsequent meetings following contract award It is important to create a matrix of representatives from various involved disciplines and identify key contact personnel After conducting the meetings, minutes should be documented and distributed to attendees and other relevant personnel associated with the project scope.
Successful projects often involve various meetings, with the complexity of the project influencing the number of meetings required Key participants typically include users (U), contractors (C), and major suppliers (MS).
Before preparing bid specifications, it's essential to hold a meeting during the initial project planning phase This meeting should focus on discussing the project's concept and identifying the equipment that will best meet the user's needs.
2.4.2.2 Bid Conditioning (U, C, MS, and Major
Once the bid specifications are released and proposals are submitted, the purchaser typically compiles a shortlist of suppliers This shortlist is based on the commercial and technical merits of the proposals received.
The suppliers on the short list would be invited to discuss technical and commercial aspects of the contract Any un- certainties should be presented and discussed The bids shall
QUALITY IMPROVEMENT MANUAL FOR MECHANICAL EQUIPMENT IN PETROLEUM, CHEMICAL, AND GAS lNDUSTRlES 9 be subsequently modified to account for any of the items discussed
2.4.2.3 Pre-Award (U, Cy and MS)
After the bids are modified, a pre-award meeting should be conducted to define the final scope of the project
2.4.2.4 Coordination (U, Cy MS, and Major
Once the preliminary contract drawings and schedules have been adequately developed, a coordination meeting should be held This meeting will focus on discussing all technical aspects of the design to address any questions and ensure adherence to both the technical and commercial requirements of the contract.
As the project progresses and design efforts develop, it may be necessary to schedule additional meetings to address specific details Key topics for discussion include the inspection plan, suppliers and subsuppliers, design audits, test plans, and the installation plan.
Internal meetings across various functions within a company, including purchasing, engineering, marketing, drafting, manufacturing, quality assurance, testing, shipping, and field service, are just as crucial as inter-company meetings and should be actively promoted.
Design audits are essential and can be initiated by the contractor or user, with the supplier responsible for conducting them These audits should take place promptly once sufficient information is available to complete the design analysis, including aspects like fluid dynamics and mechanical performance It is expected that the supplier will carry out an internal audit before any second or third-party evaluations.
2.5.1 To decide if a design audit is warranted, the pur- chaser should evaluate the critical nature of the equipment, the supplier’s design history, previous industry experience, and the equipment to determine if it is fully spared This evaluation should be considered prior to purchase so that the requirements are identified in the proposal stage
2.5.2 The scope of the design audit should be defined in the proposal stage so that information milestones are identi-
The supplier and purchaser must agree on the audit's scope and determine if third-party consultants will be involved, ensuring that any additional work required from the supplier is clearly defined.
2.5.3 The audit will be beneficial to both the supplier and the purchaser Design functions and improvements, manu- facturing problems, procurement definition, installation, and maintainability of the equipment are some of the areas that should be addressed The intent of the audit is to define and correct design deficiencies before they delay a project or in- crease its cost
2.5.4 Refer to Appendix B for a typical design audit checklist and logic diagram of areas to be addressed for a centrifugal compressor These may be altered to apply to other process machinery
2.6.1 Quality surveillance may be used in varying degrees to ensure compliance with specifications The extent of surveillance may vary considerably It may consist of relying on the supplier’s quality system and reporting mechanisms, or it may consist of active involvement through observed or witnessed testing and/or the use of visiting or resident inspectors
Inspectors play a crucial role in verifying contractual documentation, including chemical composition reports For more complex testing, they may involve individuals with extensive technical expertise in mechanical and functional performance It is essential for the user or contractor to specify the necessary qualifications for these inspectors.
2.6.2 The degree of the surveillance of the documentation and testing should be identified at the bid conditioning meet- ing and later reviewed at the coordination meeting When- ever possible, the quality surveillance should utilize as many of the supplier’s quality standards as possible.
Factory Testing
Factory testing involves evaluating equipment, either partially or fully, before it is shipped, and can also encompass component-level testing These assessments may be included in the standard manufacturing inspection process for the designed product.
Testing is intended to verify the adequacy of a component to provide a function Many tests are part of the normal pro- cedure of manufacture Tests are normally done to prevent
Design Audits
Design audits are essential and can be initiated by the contractor or user, although they should primarily be conducted by the supplier These audits should take place as soon as the required information for finalizing design analysis, including fluid dynamics and mechanical performance, is accessible It is expected that the supplier will carry out their own audit before any second or third-party evaluations.
2.5.1 To decide if a design audit is warranted, the pur- chaser should evaluate the critical nature of the equipment, the supplier’s design history, previous industry experience, and the equipment to determine if it is fully spared This evaluation should be considered prior to purchase so that the requirements are identified in the proposal stage
2.5.2 The scope of the design audit should be defined in the proposal stage so that information milestones are identi-
The supplier and purchaser must agree on the audit's scope, including the involvement of any third-party consultants, to define any additional work required.
2.5.3 The audit will be beneficial to both the supplier and the purchaser Design functions and improvements, manu- facturing problems, procurement definition, installation, and maintainability of the equipment are some of the areas that should be addressed The intent of the audit is to define and correct design deficiencies before they delay a project or in- crease its cost
2.5.4 Refer to Appendix B for a typical design audit checklist and logic diagram of areas to be addressed for a centrifugal compressor These may be altered to apply to other process machinery.
Manufacturing Quality Surveillance
2.6.1 Quality surveillance may be used in varying degrees to ensure compliance with specifications The extent of surveillance may vary considerably It may consist of relying on the supplier’s quality system and reporting mechanisms, or it may consist of active involvement through observed or witnessed testing and/or the use of visiting or resident inspectors
Inspectors play a crucial role in verifying contractual documentation, including chemical composition reports For more complex testing, they may involve individuals with extensive technical expertise in mechanical and functional performance It is essential for the user or contractor to specify the necessary qualifications for these inspectors.
2.6.2 The degree of the surveillance of the documentation and testing should be identified at the bid conditioning meet- ing and later reviewed at the coordination meeting When- ever possible, the quality surveillance should utilize as many of the supplier’s quality standards as possible
Factory testing involves evaluating equipment, either partially or fully, before it is shipped, and can also encompass testing at the component level These assessments may or may not be included in the standard manufacturing inspection process for the designed product.
Testing is intended to verify the adequacy of a component to provide a function Many tests are part of the normal pro- cedure of manufacture Tests are normally done to prevent
To effectively address issues before they arise, it is crucial to implement recommended practices at the supplier's facility This proactive approach facilitates easier problem resolution and streamlines design verification, ultimately minimizing delays and costs.
During the proposal stage, it is essential to discuss the standard tests and identify any additional testing that will be included in the project scope at the bid conditioning meeting Each test should allow for the option to observe or witness its execution For tests that are particularly complex, a detailed test plan must be provided, outlining the tests to be conducted and the acceptance criteria.
Field Inspection Prior to Start-up 4 4 7 8 9 9 9 10
A highly effective method for improving equipment quality is conducting a field inspection of the installed equipment just before start-up This inspection yields the greatest benefits when performed by the same user and contractor personnel involved throughout the project, from commitment to drawing reviews and final shop testing While supplier quality may not be directly improved by these inspections, users gain significant advantages by identifying any mistakes, whether they occurred at the supplier's facility or during installation Additionally, providing feedback to the supplier about any shop errors can help prevent similar issues in future orders for comparable equipment.
FOR EVALUATION OF A
General
This section aims to offer guidelines for assessing whether a supplier has an effective quality system and to evaluate the foundational principles of that quality system.
1 Quality control (for example, MIL-I 45208A)
2 Quality assurance (for example, IS0 9001)
3 Quality improvement (for example, this recom- mended practice) c How the system is implemented d How well that system accomplishes the desired results
The evaluation will identify specific areas for improve- ment (see 3.4) The techniques described in Section 4 can be used by all parties to move beyond the traditional approach
The quality assurance system framework is outlined in sections 3.2.1 to 3.2.13, primarily structured around ISO 9001 and 9004, with enhancements tailored for API mechanical equipment users While ISO 9001 provides a general quality assurance system framework, it is adapted to meet specific user requirements.
I S 0 9004 is a guideline for the implementation of that sys- tem As a result, I S 0 9004 is the more definitive of the two and is used as the basis for the evaluation section
In addition to the quality assurance system guideline sug- gested by I S 0 9004, a framework for quality improvement is provided in 3.2.14 This framework is based on the Malcolm
Baidrige National Quality Award Application Guidelines-
1991, and it is one way a supplier can pursue quality im- provement The addition of quality assurance and quality im- provement to quality control results in a total quality system
The evaluation process is described in 3.3 What to do with the results of an evaluation and the various actions that may be dictated by those results are discussed in 3.4
Subsuppliers may be adhering to IS0 9002 or I S 0 9003; therefore, some parts of Section 3 (and Appendix A) will not be appropriate for evaluation.
Major Elements of a Total Quality System
3.2.1 MANAGEMENT OF THE QUALITY SYSTEM a Responsibility and authority This defines which func- tional areas are responsible for administration of the quality system and what their authority is b Communication of quality philosophy Top manage- ment communicates how quality relates to the mission of the company c Quality objectives planning How the company’s busi- ness planning activity defines the quality objectives of the company d Quality improvement planning This planning activity leads to the achievement of the company’s quality objectives e System implementation procedures How quality system operating procedures are installed and made functional f System communication procedure This is the mecha- nism used to communicate the quality system and operating procedures throughout the organization, including the policy on distribution of the particulars of the quality system out- side the organization g Quality system auditing This is the method of auditing quality system policy and procedures to ensure applicability and compliance levels h System change procedure This is the method of revising and re-issuing quality system procedures
3.2.2 MARKETING QUALITY ASSURANCE a Market requirements review How the marketindsales organization surveys the marketplace What kind of informa- tion is acquired b Marketing specification procedure The method that marketindsales uses to translate market needs and expecta- tions into equipment specifications Also, how those specifi- cations are transferred to the internal organization
The customer feedback processing procedure outlines how market insights are gathered from equipment users in the petroleum, chemical, and gas industries It details the methods of information collection, the processing of this data, and its subsequent applications to enhance quality improvement.
Project management assurance, while not explicitly defined in ANSI or ISO specifications, plays a crucial role in the manufacturing of equipment adhering to API standards It is integrated into the quality system framework, emphasizing the responsibility and authority required for effective project management This includes the review and translation of customer or marketing specifications into actionable internal documents, as well as establishing procedures for the communication of project information.
Effective communication of project-related information between internal and external organizations is crucial, encompassing the processing of data, assignment of responsibilities for various types of information, and the management of information retention Additionally, it is essential to identify who is accountable for the installation, operation, maintenance, and technical data manuals, as well as the specific information these manuals contain.
3.2.4 DESIGN QUALITY ASSURANCE a Responsibility and authority of the design function b Requirements review and design objectives planning
Effective methods for reviewing project technical documents and marketing specifications are essential for defining and planning design objectives The design output requirements specify the expected deliverables, including concepts, drawings, and specifications A structured design review procedure outlines how designs are evaluated and which functional areas participate in the review process To ensure compliance with requirements, a design verification procedure employs tools such as alternative calculations and third-party audits, while also considering any software used in the design process The design approval procedure details how designs are formally accepted for use within the organization Additionally, a configuration control procedure manages revision control and design changes, while design requalification involves periodic reviews to ensure the integrity of existing designs before re-release.
3.2.5 SUPPLIER (PROCUREMENT) QUALITY ASSURANCE a Purchase order contents requirements Definition of doc- uments and terms associated with communicating require- ments to suppliers b Supplier evaluation and selection procedure How sup- pliers are evaluated according to their history of performance or as potential suppliers with no history of performance c Supplier rating procedure Specifics of how historical performance data is gathered and evaluated to arrive at ob- jective ratings Key elements to be analyzed during the rating process are identified d Purchased material and service quality verification re- quirements procedure Planning that defines the quality level of purchased goods or services and how that quality level will be verified (for example, by receiving inspection or sup- plier certification) e Receiving and inspection of purchased goods and ser- vices procedure Definition of controls to be used for receiv- ing and inspection of purchased goods and services f Receiving quality records How results of receiving in- spections are documented, and how these records are in- cluded in the supplier rating procedure
3.2.6 PRODUCTION QUALITY ASSURANCE a Planning documents control procedure Which func- tional area has the responsibility and authority for process planning, including the authority to make changes b Product and process improvement planning Identifica- tion of objectives and planning for their achievement in both product quality and process refinement c Process capability analysis How process capability is measured and improved d Material control How the identity and traceability (when required) of material are managed from receipt as raw mate- rial to shipment as finished goods e Qualification of facilities and support equipment How new or rebuilt process machinery and supporting auxiliaries are qualified for production f Maintenance of precision in production facilities Pre- ventive maintenance of process machinery and periodic revalidation of performance capability, including disquali- fication or down-grading of production facilities when necessary g Product verification planning Guidelines for how and when verification inspections will be conducted on work in process and finished goods h Special process planning Planning for operations such as welding, heat-treating, and nondestructive testing, includ- ing qualification of personnel and machinery/instruments as applicable
3.2.7 PRODUCT QUALITY VERIFICATION a Control of measuring and test equipment How this equipment is kept in good repair, and what record-keeping requirements may apply b In-process product verification Guidelines for specifica- tion of inspection points for materials in-process c Final product verification Guidelines for specification of inspections of finished goods d Nonconformance control How nonconforming material is documented, identified, and disposed of, including means used to prevent mixing nonconforming material with con- forming material
The following elements focus on trend analysis rather than specific cases outlined in the nonconformance control procedure Firstly, it clarifies the responsibility and authority, specifying which functional areas are tasked with initiating corrective actions and which are responsible for coordinating the resolution of incomplete actions Secondly, it addresses the analysis of problems, detailing the process for identifying issues and designating them for corrective action.
3.2.9 SHIPPING QUALITY ASSURANCE a Preservation and packaging How preservation and packaging instructions are communicated to those perform- ing the shipping, and what the responsibilities are in this activity b Shipment identification How shipment identification in- structions are communicated to those performing the ship- ping, and what the responsibilities are in this activity c Transit, handling, and storage care instructions How in- structions are prepared for and communicated to those re- sponsible for preparing goods for storage or shipment and handling of material in process
3.2.10 FIELD QUALITY ASSURANCE a Responsibility and authority This defines which func- tional areas are responsible for field quality assurance and how authority is distributed b Installation, maintenance, and operation instructions
Effective communication of instructions to personnel involved in field activities is crucial, encompassing essential information about factory support for field service Clear definitions of interface points and responsibilities facilitate the flow of information and problem resolution Additionally, feedback on product performance is relayed to the supplier's internal organization, ensuring that negative trends are addressed within the corrective action system Informational materials and training courses are systematically communicated to customers and product users Furthermore, the administration of field repair facilities is linked to the parent factory, clarifying the responsibilities and authority for supporting these centers.
The quality records system outlines the responsibilities and authority of functional areas tasked with the effective storage of quality records It includes a review of quality document requirements to establish the necessity for these records Additionally, it specifies the procedures for the storage and retrieval of product quality verification records, ensuring that all records related to inspections, tests, and final product configurations are organized and accessible.
Training within an organization involves several key responsibilities and policies Functional areas are designated to oversee training initiatives, ensuring that members receive appropriate training tailored to their roles This includes both specific and cross-functional training, with clear requirements established for position-specific development New employee training is crucial for integrating individuals into the company's quality philosophy and cultural elements from the outset Additionally, awareness and motivation training is implemented to highlight the impact of individual contributions on quality and to encourage high performance Performance feedback serves as a constructive tool in motivating employees, while succession planning is strategically developed to address key organizational roles and prepare for unexpected vacancies.
3.2.13 PRODUCT SAFETY a Safety of design evaluation How designs are evaluated for safety hazards, and how hazards are dealt with b Communication of safety hazard How installers and users of product are made aware of safety hazards c Product failure investigation Methods of investigating product failure from all perspectives to eliminate safety haz- ards and to improve designs d Process failure investigation Methods of investigating failures in the processes used to manufacture product These methods are oriented toward eliminating process-produced safety hazards e Product recall procedure How product is recovered from
The Evaluation Process
qualification of the evaluators Evaluators must be capable of viewing the supplier’s operation objectively, recognizing quality system elements at work, and analyzing the effect of those elements on operations
Evaluators will formulate relevant questions for the evaluation process, which should be communicated to the supplier ahead of time This allows the supplier to gather and prepare the necessary supporting evidence to effectively address the inquiries.
An effective supplier evaluation is crucial for determining the presence and type of quality system a supplier has, assessing the extent of its implementation, verifying its functionality, and ensuring it meets the requirements of all parties involved.
Refer to Appendix A for possible questions to be asked
Evaluating Results
Evaluators must assess the supplier's suitability for the proposed work by agreeing on values for each evaluation response After completing the evaluation scoresheet, evaluators should meet with supplier representatives to discuss the results It is essential for all parties to understand the evaluation's basis and have an opportunity to present additional information that could influence the final decision This evaluation will reveal the supplier's status regarding quality system implementation and guide the user or contractor in effectively collaborating with the supplier.
To establish a long-term relationship with a supplier, users and contractors must define the critical elements of a total quality system that ensure product requirements are met As these requirements differ, the importance of system elements may shift, making effective evaluation techniques vital for selecting the right supplier This evaluation not only lays the groundwork for future collaboration but also focuses on mutual improvements that benefit all parties involved For detailed guidance on supplier collaboration and achieving enhanced results, please refer to Sections 2 and 4.
SECTION &WORKING TOGETHER TOWARD CONTINUOUS QUALITY IMPROVEMENT
General
quality system These recommendations may be used in con- junction with the results of a supplier evaluation (see Section
3) to work toward continuous quality improvement This section recommends ways in which users, contrac- tors, and suppliers can work together to move from the tradi-
A collaborative approach among users, contractors, and suppliers is essential for enhancing quality standards This method transcends traditional practices by placing a strong emphasis on the supplier's accountability for quality Users and contractors play a crucial role in supporting suppliers to develop and continuously improve a total quality system, while also identifying opportunities to enhance their own processes Building mutual trust and fostering teamwork are fundamental principles that underpin the success and sustainability of this approach.
Improved Communications
To ensure a successful project, users, contractors, and suppliers should schedule key meetings First, an advance review of the project scope and machinery requirements should take place during the preliminary planning stage, allowing for discussion of the project concept and the identification of suitable equipment Next, a user/contractor kickoff meeting should be held upon contractor selection to facilitate mutual understanding of each other's systems and personnel Finally, after forming the contractor team, a meeting should be conducted to evaluate prequalified suppliers and select a single supplier for the project.
Supplier order entry documents must be collaboratively prepared or reviewed with the user and/or contractor, ensuring they contain order-specific information for key subsuppliers This process aims to accurately translate the customer's requirements into the supplier's internal documentation, fostering discussion among all parties to achieve a mutual agreement.
Effective communication is essential for quality enhancement, making timely exchanges crucial Modern technology plays a vital role in ensuring the prompt and accurate transmission of data among project team members Recommended communication tools include facsimile transmissions and direct electronic links for computer-aided design.
To optimize the transmittal of drawings and data among team members, it is essential to develop effective links between their CAD systems This collaboration will minimize time requirements and reduce errors in data transmission Additionally, electronic mail can facilitate the exchange of various documents, such as computerized proposals, contractual data, order records, progress reports, nondestructive testing data, and material certificates Until a fully functional electronic mail process is established, information can be shared using computer disks.
4.2.4 TEST AGENDA AND ACCEPTANCE CRITERIA
Developing a test agenda with associated acceptance criteria is crucial for defining realistic and meaningful customer requirements Team members must focus on creating requirements that are valuable to the customer, clearly documented, achievable by the supplier, and cost-effective for the entire team The foundation for test and acceptance requirements should be built on API standards, industry standards, supplier standards derived from positive experiences, and customer standards based on operational insights.
To effectively meet customer requirements, it is essential to hold a team meeting to review the specifications against what was purchased and designed Additionally, the needs of both the installer and operator must be taken into account Engaging the right team members and familiarizing them with job requirements and the final implementation phase will help ensure a smooth installation, commissioning, start-up, and initial operation of the project.
Improved Feedback
To enhance quality improvement, it is essential to refine the feedback process, which encompasses all customer-supplier interactions throughout the order cycle, from marketing to field service, in a continuous improvement loop The effectiveness of meeting customer requirements is gauged by the feedback mechanisms implemented to assess satisfaction levels Recommended approaches for evaluating this aspect of the customer-supplier relationship include conducting post-shipment reviews and gathering user feedback.
Post-shipment feedback is often missed but is needed to provide the final measure of meeting requirements A post-
A shipment review meeting is essential for assessing whether requirements were met, identifying successes to build upon, addressing failures for correction, and reaching a consensus on requested changes to enhance future quality This process continues the approach outlined in section 4.2.5.
Enhancing order process feedback can be achieved through the meetings outlined in Section 2, along with additional as-needed meetings The pre-inspection meeting focuses on discussing customer requirements for inspections, testing, and certification, aligning these with supplier capabilities and cost benefits before manufacturing begins The project design audit involves a thorough review of the supplier's designs and analytical data to address concerns about safety and reference data, conducted after the final design is completed but before equipment manufacturing Lastly, the installation and commissioning review ensures that all parties involved in the installation are familiar with the equipment's installation requirements, ideally held before the mechanical test of the equipment.
Additional mechanisms for improving feedback are as follows: a Customer satisfaction surveys After commissioning, an integral part of the measurement of meeting the customer’s
Joint Development of Long-Term Requirements
The customer-supplier relationship is crucial, emphasizing the importance of analyzing order history and specific parts usage to identify strengths, weaknesses, and areas for improvement Additionally, operation and maintenance seminars, along with bulletins that provide product updates and improvements, play a vital role in enhancing this relationship Furthermore, technology seminars and bulletins are essential for keeping stakeholders informed about the latest advancements.
Effective feedback should be bidirectional, fostering a more collaborative team environment where valuable information is shared among all members This approach enhances the quality of processes for each individual within the team.
4.4 Joint Development of Long-Term Requirements
Customers can communicate their long-term process requirements, including flows, pressures, temperatures, machine capabilities, and environmental concerns, to suppliers In turn, equipment suppliers can outline their development programs, whether planned or in progress, to address these customer needs Regular discussions are essential to ensure that suppliers accurately and promptly understand the equipment requirements of their customers.
4.4.2.1 Commercial terms and conditions can be a source of delays and protracted negotiation Terms and conditions should be jointly developed on the following basis: a Are mutually acceptable for long-term or multiproj- ect use b Contain provisions for handling expectations c Eliminate redundant clauses d Contain provisions for periodic review by affected parties
4.4.2.2 Sharing of strategic planning needs (such as plant sizes, market predictions that might influence equipment needs, or cost/pricing methods) focuses on partnering, blan- ket terms and conditions, or overriding agreements
4.4.3 DEVELOPMENT OF QUALITY IMPROVEMENT TECHNOLOGY
A dedicated customer-supplier team is essential for fostering a long-term quality improvement process that benefits both parties and strengthens their relationship The recommendations provided should not be interpreted as limitations to the contractual agreements between individual customers and their suppliers.
2 Process feedbacks on performance and reliability
4 Aftermarket (parts) support and response A neces- sary part of this would be the supplier’s internal tracking
APPENDIX A-QUALITY ASSURANCE SYSTEM EVALUATION CHECKLIST
The evaluation questions are primarily based on the criteria set forth by ISO 9001, utilizing the implementation guidelines from ISO 9004 Each question is accompanied by the relevant paragraph number from ISO 9004 in the reference column.
In addition to those derived from I S 0 9004, certain ques- tions (identified by "#") are derived from the Malcolm
The Baldrige National Quality Award Application Guide, lines Z99Z, includes specific questions pertinent to the manufacturing of mechanical equipment for the petroleum, chemical, and gas industries These inquiries enhance the fundamental requirements of ISO specifications, addressing the unique needs of mechanical equipment manufacturing.
Evaluators must prepare for evaluations by selecting relevant questions from the evaluation model that suit the specific situation They are then responsible for communicating these appropriate questions to the supplier being assessed.
It is the responsibility of the supplier to prepare for the evaluation by assembling supporting evidence to properly answer the evaluation questions
During the evaluation process, evaluators will determine the level of implementation for each question by objectively analyzing the supplier's quality system elements in relation to the specific requirements After completing the evaluation, the team will collectively assign implementation levels and fill out the evaluation scoresheet Once the raw scores are summarized, evaluators will meet with supplier representatives to discuss the results, ensuring that all parties have a clear understanding of the final scores assigned.
The evaluation aims to assess a supplier's ability to manage quality aspects rather than to assign a pass/fail score Its focus is on understanding how the user or contractor can effectively collaborate with the supplier This practice does not extend to conferring certification or degrees of capability.
3.2.1 Management of the Quality System
COMMENTS (Provide support for high or low findings Note those items not capable of being evaluated)
QUALITY IMPROVEMENT MANUAL FOR MECHANICAL EQUIPMENT IN PETROLEUM, CHEMICAL, AND GAS INDUSTRIES 19
1 Has top management stated and communicated a corporate
2 Has the quality policy been organized into a formal, fully imple- quality policy? mented quality system?
QUALITY ASSURANCE SYSTEM EVALUATION CHECKLIST
3 Are functional areas aware of and able to execute their role in
4 Are adequate resources devoted to the quality system?
5 Are customer quality assurance requirements managed effec-
6 Does the supplier perform periodic audits of the quality system
7 Is this quality system qualified to national or international stan- the quality system? tively? and implement corrective action? dards?
8 Can this supplier demonstrate measurable quality improvement?
1 Does marketing/sales understand and communicate customer
2 Does a marketing system exist that gathers and monitors data expectations for quality, prices, and delivery? on product field performance?
3 Does marketing/sales obtain assurances from the internal orga- nization before technical and commercial commitments are made?
1 Does the supplier have a project management function?
2 Do persons staffing this function have demonstrable actual or
3 Does the organization structure confer adequate authority to related experience in managing similar projects? these project managers?
4 Does the supplier have an effective system to accurately transfer the customer's technical and commercial project requirements from marketing/sales to the internal organization after an order?
5 Are instruction or installation manuals the responsibility of pro- ject management? Do these manuals contain correct and proper technical information?
4 When does the project management function end its involve- ment with a proiect? aQuestions derived from I S 0 9004 are identified by the corresponding I S 0 9004 paragraph number Questions marked "#" are derived from the Malcolm Baidrige National Qualig Award Application Guidelines-I 991 or relate directly to the manufacture of mechanical equipment for the petroleum, chemical, and gas industries
- c o g 0 0 E 2 or lowfindlngs Note those items not capable z z 2 3 8 U 8 Q 3 ofixingwaiuateci)
QUALITY ASSURANCE SYSTEM EVALUATION CHECKLIST- continued
1 Does the supplier have a design function that is responsible for translation of customer and marketing specifications into internal comDanv lanauaae?
2 What are the duties of the personnel in the design function and how are the personnel made aware of their responsibility for the features have clear acceptance criteria included? Are safety, re- liability, maintainability, and serviceability factors considered by the design proiect?
I 4 Are design reviews conducted at the end of each design phase or in total at the end of the desian Droiect?
5 Are functional areas that affect quality represented in the design review process?
6 Does the supplier use a system of design verification (such as alternate calculations, prototype testing, third party verification, or design audits) to validate designs and any supporting soft- ware that is used?
7 Does the design approval process provide a formal authoriza- tion that releases the design for production?
8 Does the design control system require approval of design changes before the changes are implemented? Does this system provide for the removal of superseded documents or soitware and a method to veriiv that chanaes were correctlv effected?
9 Are results of field performance information gathering used to
1 Does the supplier have a system of managing the quality of pur- chased goods and services?
I 2 Does the supplier have a documented method of evaluating
I 3 Does the supplier periodically reevaluate sĩbsuppliers based on nerformance historv and chanoes in the business environment?
4 Does the supplier's communication of requirements include def- inition of quality elements the subsupplier is responsible for?
QUALITY IMPROVEMENT MANUAL FOR MECHANICAL EQUIPMENT IN PETROLEUM, CHEMICAL, AND GAS INDUSTRIES 21 c C
QUALITY ASSURANCE SYSTEM EVALUATION CHECKLIST- continued
1 Are product operations planned with documented steps neces- saw to achieve an outcome?
2 If plan steps are changed, does the planning authority validate those changes?
3 Do production plans or supporting design documents show ac- ceptance criteria for work being performed in the operations steps?
4 Do production plans require verification of quality at logical points within the sequence?
5 Does the supplier have documented evidence that the production facility is capable of producing the required levels of precision?
6 Do material control procedures assure that origins of goods re- quiring traceability are maintained during receiving, storage, and production operations?
7 Is there a preventative maintenance program that addresses those aspects of the production process that are key to the achievement of the reauired level of aualitv?