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DOW-PIC Olefins 2 Project, (OL2K), Al-Shuaiba, Kuwait Contract No. 03IN03 - 066

PMC:

FLUOR DANIEL B.V

Main Contractor:

Gulf Spic Contracting Company W.L.L

P.O. Box.46551, Fahaheel, 64016, Kuwait.

Doc. No. Project Title

Infrastructure Mechanical 1 Project

03IN03-066/GS/QP/019PROCEDURE FOR PRODUCT IDENTIFICATION AND

TRACEABILITY

0Issued to Owner for ApprovalLE(QC)QCMPM31st May 2006

Rev.DescriptionPreparedCheckedApprovedDate

TABLE OF CONTENTS1.0

Purpose2.0

Scope

3.0

References4.0

Abbreviations / Definitions 5.0

Procedure5.1

Control on material receipt and storage5.2

Control on Material Issue and use6.0

Documentation7.0

Attachments1.0Purpose:

The purpose of this procedure is to provide a system to ensure that materials and key consumables are properly identified and traceable at all stages starting from receipt, storage, issue and assembly into the final product during execution of M1 project.

2.0Scope:This procedure shall apply to the project material and consumables that become part of the final/permanent facilities used for Infrastructure M1-OL2K project.3.0 References:

03IN03-066/GS/PQP/003:GS Project Quality PlanG8S-6500-01

:General Welding SpecificationG8S-6500-02

:Welding Process RequirementsG8S-6500-03

:Welding Filler Metal Specification4.0Abbreviations/Definitions:

Owner

: Equate Petrochemical Company, K.S.C.C, Kuwait

or Designated Representative

GS

:Gulf Spic Contracting Company W.L.L.

Contract

:Infrastructure Mechanical 1 Project OL2K

LE (QC)

: Lead Engineer Quality Control

QCI

:Quality Control InspectorMRR

:Material Receiving Report

5.0 Procedure:

Material that form part of final/permanent installations shall be identified, and monitored for meeting traceability requirements from the receipt stage to final assembly.5.1Control on Material receipt and Storage:5.1.1At receipt, materials are identified by their part number or requisition number on the delivery documentation, which may be in the form of a delivery note, packing list, and/or tally sheet.

5.1.2On receipt at stores/field, delivered items are checked for necessary features including identification, material condition (damage, packing), conformance to Project specification and quantity, availability of material/test certificates, traceability to material/test certificates etc.

5.1.3While delivered items are awaiting receipt inspection under inspection tags/boards are placed to clearly identify the status of the materials. Inspected materials are accepted/cleared for use, are stacked in the designated storage areas. Identified/tagged with delivery order number as applicable. 5.1.4 The products that are found not complying with the requirements of project specifications and material requisition, material receipt report will be forwarded to the Owner material control for further action. Until the product is confirmed acceptance for use, it is placed in designated quarantine location and listed in the quarantined item list for monitoring its status.

5.1.5 The material controller will organize of non-conforming products to the designated quarantine area and where there is a mixture of materials to be quarantined, they shall be suitable type with respect to the materials to be stored, and controlled storage areas shall be provided where necessary. Only upon completion of satisfactory disposition and after acceptance of the disposition by the QA/QC team the material can if accepted, be moved to the designated storage areas.5.1.6 Material status in terms of under inspection accepted stock and quarantined is monitored by the Material Controller on regular basis.

All MRRs pending inspection are filed separately and the file handed over to QA/QC team for clearance. MRRs on approval are removed from this file and transferred to the accepted MRRs file. These files lively updated, and the status of items pending inspection can be obtained from this file at any time: a list for pending MRRs is prepared and communicated internally.

Accepted Stock status can be obtained from computerized stock status.

5.1.7 All accepted materials shall be stored in container, covered or open (as appropriate) warehouse and under stores direct control to prevent unauthorized use. Requirement for material storage and issue are coved in the procedure number: 03IN03-066/GS/QP/016.5.2 Control on Material Issue and Use:5.2.1 Product identification and traceability requirements during material issue are met by implementing the following steps.

Material controller to record on the issue slip all material details including tag no, serial no, batch no, and heat no as applicable and also to accurately record all drawing/location/activity reference information and the recipient name and designation.

Site foreman/inspector to record on the inspection report accurate location details including weld identification, line numbers, drawing reference. Inspection reports shall also include all material identification details required for traceability including tag no, batch no, and heat no, as applicable.

Site foreman/inspector to ensure transfer of all identification markings from main items to cut pieces for pipes to be cut for shop/field fabrication and for tie in welding, the pipe-no / heat-no shall be transferred to the cut ends prior to cutting.

The QA/QC team complies test packs, welding history sheets, which includes all materials, location, testing and inspection data and results required to meet traceability requirements.

Surplus materials at the end of the Project are listed with identification details and forwarded to the Owner.

5.2.2 Requirements for material released on an emergency release/positive recall basis are covered in the GS project quality plan.5.2.3 The table on the following page summarizes the traceability controls to be implemented for the project.

6.0Documentation:The following is the documentation required to comply with the requirement of this procedure:

Delivery Notes

Tally sheets

Packing Lists

Material Receipt Report

Identification Tags

Bin Cards

Quarantined item list

Issue Slips

Inspection Reports

Test packs

Welding History Sheets

Material / Test Certificates

Welding Reports

QCI will be responsible for preparing the welding inspection report, including all required identification/location information. 7.0Attachments:1. Product Identification for critical Raw materials

2. Colour coding for Piping materials

3. Colour coding for Gasket materials

GS Doc.No. 03IN03-066/GS/QP/019 Page 2 of 5 DOW-PIC Olefins 2 (OL2K) M1 Project Rev.No.0 Date: 31-May-06 Al-Shuaiba, Kuwait