PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title)

CONTENT INDEX

1. PURPOSE

2. REFERENCE

3. GENERAL

4. DEFINITIONS

5. PROJECT AUDIT SYSTEM PLANNING

6. AUDIT IMPLEMENTATION

7. RECORDS

8. ATTACHEMENT

Doc. No.: Pls insert document number Date here Page 1

PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title)

1.0 PURPOSE

This procedure describes the requirements for planning, scheduling, performing, reporting, and closing out a project audit by PEPPLE & SONS LTD Quality Assurance in the ------------- project. This procedure shall also apply to the audits for subcontractors and vendors involved in the project.

2.0 REFERENCE

QAC-001-0, Project Quality Plan ISO 9000-2008, Quality Management Systems-Fundamentals and

vocabulary ISO 9001-2008, Quality Management Systems-Requirements

3.0 GENERAL

The quality assurance (QA) audit shall be conducted by PEPPLE & SONS LTD quality assurance to assure that project quality - related activities are being conducted in accordance with the applicable governing documents such as Contracts, project manuals, procedures, instructions, drawings, specifications, code/standard, etc.

All departments, including subcontractors, with their responsible processes in the project quality management system shall be covered by QA audits.

4.0 DEFINITIONS

4.1 Governing documents-the lowest level of approved documents for projection execution, which include Contracts, project manuals, procedures, department instructions, engineering drawings and output documents, and applicable code and standard.

4.2 Audit finding- results of collected audit evidence against project criteria, which can indicate either conformity or nonconformity with audit criteria, or opportunity for improvement.

4.3 Observation- conditions or practices, which may warrant the attention of the audited organization but may not require a response. However, if specifically requested an observation shall require a response.

4.4 Nonconformity- Non-fulfillment of a requirement as specified by project governing documents.

4.5 Corrective Action- An action taken to eliminate the cause of a detected nonconformity or other undesirable situation.

Doc. No.: Pls insert document number Date here Page 2

PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title)

4.6 Correction- steps taken to correct a detected nonconformance, error, deficiency or violation of procedures.

4.7 Preventive Action– Action to eliminate the cause of potential nonconformity.

5.0 PROJECT AUDIT SYSTEM PLANNING

5.1 QA audit schedule (QAC-FM00.02) shall be prepared by Lead QA Engineer, reviewed by QA/QC Manager and approved by Project Manager before implementation.

5.2 A QA audit schedule shall identify the audit activities for a specific period, for example, one year, corresponding to the major processes of the project that can be anticipated at that time. The frequency of audits shall be appropriate to the project conditions according to the importance of specific activities and shall be agreed by both the client and contractor.

5.3 Lead QA engineer may revise his audit schedule, as necessary, consistent with changes in the project’s scope and / or project progress. A supplementary audit shall be performed if so required by the project quality system condition, for instance, if there is reason to believe that project quality program are not being adequately implemented. A revised schedule shall also be reviewed by QA/QC Manager and approved by project Manager.

5.4 If an audit cannot be performed at the scheduled time for some reason, it may be rescheduled for a later date. Audit shall be not re-scheduled for more than once. Re-scheduled audits shall be performed as soon as practical.

6.0 AUDIT IMPLEMENTATION

6.1 QA audits shall be performed by qualified QA engineers, who shall not have direct responsibility in the areas being audited.An audit team may consist of more than one auditor, and be assisted by technical professional.

6.2 The auditor shall forward a notification to the organization to be audited prior to the audit. The notification shall identify the elements of the planned audit, including the audit scope, activities to be audited, auditor’s name(s), governing documents, and audit date.

6.3 Before the audit, a checklist (Form No. QAC-FM00.03), shall be developed by the audit team lead based on applicable governing documents, and shall be approved by QA/QC Manager.

Doc. No.: Pls insert document number Date here Page 3

PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title)

As best practice, the areas to be audited should be marked-up in the applicable governing documents.The audit checklist shall be intended as a guide and should not restrict the audit investigation. It may be required for further investigation into those questions that are not specifically included in the checklist when deficiencies are raised during the audit activity.

6.4 A brief pre-audit meeting with the management of the audited organization shall be conducted to: Introduce the audit team.

Review the audit schedule.

Discuss administrative details, such as location of audits, facility to

be provided, personnel to be contacted, etc.

Discuss date and time for the post-audit conference.

6.5 An auditor shall conduct his audit with objectivity and impartiality.

During the audit he shall communicate effectively with the audited organization/department, objectively describe the findings, and assist the audited department to analyze nonconformity causes, if so found, and encourage them to take a correct action as soon as possible.

6.5.1The following approach is usually be used by an auditor to collect audit evidence:

Careful review of the audited organization documents,

Physical inspection to areas concerned, and/or

Interview with relevant person(s)

6.5.2The audit checklist, which is prepared beforehand, should be used as a guide only. If deficiencies rise during the audit, then a further audit investigation shall be made.

6.5.3The audit details/results may either be recorded on audit checklist, governing document, or on a data collection sheet.

6.6 Lead auditor shall hold a team internal meeting after data collection-

To sort out audited results detected by team member(s),

To determine which one can be identified as nonconformity or observation item, or otherwise a further investigation is required, and

To assess the audited quality system for its efficiency and effectiveness.

6.7 A post audit meeting with the management of the audited organization

Doc. No.: Pls insert document number Date here Page 4

PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title)

shall be held upon completion of the audit-

To appraise the audited organization of the audit findings, including any nonconformity and deficiency, and

To discuss with the management of the audited organization on an action for further quality system improvement based on the audit findings, including any nonconformities and other deficiencies.

6.8 An audit report with related documents, such as nonconformity report (NCR) and/or observation record (OBR) shall be issued to the audited organization/department as soon as audit is completed. A copy will be sent to the Project Manager and the Owner for their information.

6.9 QA engineer shall closely monitor the situation of the detected quality deficiencies, and conduct a follow-up audit to verify the corrective action for its effectiveness after received a response from the responsible department.

7.0 RECORDS

7.1 The audit report shall truly describe the audit activity performed, and all elements in a format (Form No. QAC-FM00.07).

7.2 All audits shall be recorded in an audit log (Form No. QAC-FM00.06). Separate audit logs should be maintained for Internal and vendor / subcontractor audits. The status of NCR & OBR shall be updated monthly.

7.3 All records/reports shall be legible, readily identifiable, retrievable and filed.

8.0 ATTACHEMENT

QA AUDIT FLOW CHART (adopted from Project Quality Plan, Doc. No. QAC-PR01-0)

Audit Schedule, form No. QAC-FM00.02

Checklist Format, form No. QAC-FM00.03

Nonconformity Report (QA) Format，form No. QAC-FM00.04

Observation Record Format，form No. QAC-FM00.05

Audit Log Format，form No. QAC-FM00.06

Audit Report Format, form No. QAC-FM00.07

Doc. No.: Pls insert document number Date here Page 5

PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title)

QA AUDIT FLOW CHART

Doc. No.: Pls insert document number Date here Page 6

QA Audit Schedule

1. Progress Schedule2. Quality Plan Audit

NotificationAcknowledge QA

Audit

Audit Report

NCR/OBRCorrective

Action

Project Manger

Relevant Depart.

Owner

PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title)

QUALITY ASSURANCE AUDIT SCHEDULE for

SUBPROJECT/DEPARTMENT/SUBCONTRACTOR

AUDIT ACTIVITIESSCHEDULE DATE

NOTE ：1.This schedule shall be modified, as required by project situation

Prepared by: Reviewed by: Approved by:

Form No.: QAC-FM00.02

PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title)

Quality Element Checklist Sub-Project/Dept./Subcontractor:

Scope：No. Element Characteristic Reference Verification details

Prepared by Date Approved by Date

Form No.: QAC-FM00.03

Audit No.

PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title)

Nonconformity Report (QA)

Depart. / Subcontractor Person in charge

QA Auditor Date

Nonconformance found：

Reference Document

QA Auditor_______________ Date:_________

Acknowledgement

Depart. / Organization In charge: Date:_________

Cause analysis of the Nonconformity：

Corrective Actions Plan：

With completion date expected.

Person in charge (Responsible Depart. / Organization): Date:

Result of corrective action:

Person in charge (Responsible department): Date:

Result of Follow-up Audit：

With Conclusion □ Closed. □Open Auditor: Date

Form No.: QAC-FM00.04

Audit No.

NCR No.: QA-

PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title)

Form No.: QAC-FM00.04

PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title

Observation Record

Depart. / Subcontractor Person in charge

Auditor Date

Observation:

ResponseYES□, NO□

Auditor Date

Received By: Date

Remarks

Form No.: QAC-FM00.05

Audit No.

OBR No.:

PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title)

AUDIT LOG AUDIT

NO.

SUB PROJECT/ DEPARTMENT. /SUBCONTRAC.

SCOPE

DATE

RESULTSAUDITOR

SIGNATURESTART FINISH

Prepared by Date

Form No.: QAC-FM00.06

PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title)

PEPPLE & SONS

LTDAUDIT REPORT

Audit No:

Page: of

Audited Organization:

Audited Scope:

Audit Date:

Audit purpose:

Audit basis:

Reference document:

Auditor team:

Audit Details:

Conclusion:

Lead Auditor Date

Approved by Date

Form No.: QAC-FM00.07

Audit No.

PLEASE INSERT THE NAME OF YOUR COMPANYPLS INSERT TITLE OF THE PROJECT

TANK QUALITY AUDIT METHOD STATEMENT (pls write correct document title)

PEPPLE & SONS

LTDAUDIT REPORT

Audit No:

Page: of

Audit Details:

Conclusion:

Lead Auditor Date

Approved by Date

Form No.: QAC-FM00.07