QMSI ORIENTATION COURSE

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IMPLEMENTING AN EHS QUALITY MANAGEMENT
SYSTEM FOR ISO 9002/14001
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Agenda Dual ISO 9002 14001 Certification

• Where - Qatar
• Who - Qatargas
• What - Dual ISO 9002 14001
• Certification
• How - Continuous Improvement
• Lessons Learned

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STATE OF QATAR

• MIDDLE EAST COUNTRIES

SYRIA
IRAQ
IRAN
KUWAIT
EGYPT
SAUDI ARABIA
BAHRAIN
U.A.E.
OMAN
YEMEN
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• Qatar Liquefied Gas Company Limited

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QATARGAS

• PRIMARY BUSINESS LNG PRODUCTION
• BECAME A DYNAMIC ENTITY 1992
• RAPIDLY EXPANDING START-UP COMPANY
• 1993 - LESS THAN 20 EMPLOYEES
• 1994 - LESS THAN 100 EMPLOYEES
• 1996 - APPROXIMATELY 650 EMPLOYEES
• 1998 - OVER 800 EMPLOYEES 800 CONTRACTORS
• OVER 30 DIFFERENT NATIONALITIES
• STARTED PRODUCTION IN NOVEMBER 1996
• FIRST CARGO TO JAPAN IN DECEMBER 1996
• TOTAL END TO END INVESTMENT 14 BILLION

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QATARGAS - OFFSHORE
UPSTREAM DEVELOPMENT OFFSHORE FACILITIES 2
TRAINS 3rd TRAIN
Wellhead Platform 3
Process Platform - PR
Living
Quarters
Platform
6 Km - 20" Trunkline
PR - WH3 Submarine Power Fibre Optic
Communications Cable
Wellhead
Platform 2
Process Utilities Platform - PU
Flare
82 Km - 32" pipeline
BSP1
BSP2
Wellhead
Platform 1

3rd Train Offshore Facilities
RAS LAFFAN
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QATARGAS - OFFSHORE
Gas Pipeline
Gas Liquid Pipeline
QG
Oil Lines
NFA
RAS LAFFAN
MAYDAN
MAHZAM
HALUL
EDD EL SHARGI
DUKHAN
BUL HANINE
DOHA
GAS
PT.B
UMM SAID
STATE OF QATAR
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What is Continuous Improvement?

• The ongoing process to systematically improve
  Systems, Processes, Activities and Practices
• Embodied in the Deming Model of
• PLAN - DO - CHECK - ACT

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Continuous Improvement at Qatargas

• Promoted thru the acronym QMSI
• QATARGAS MANAGEMENT SYSTEM
• FOR CONTINUOUS IMPROVEMENT
• QMSI - Qatargas strategy and methodology to
  achieve Continuous Improvement

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What is a Management System?

• What an organization does to manage its processes
  and activities
• Includes policies, procedures, guidelines,
  organization charts, job descriptions, etc.

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QMSI Objectives

• Thru Continuous Improvement
• Establish a Unified Management System
• Provide Consistent and Concise Policies,
  Procedures Instructions
• Comply with Statutory Requirements
• Meet or Exceed Customer Expectations
• Meet Shareholder, Employee, Contractor,
  Community Government Expectations

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History Significant Qatargas Milestones
Apr 98 - QMSI Initiated Sep 98 - PROSPER
Baseline audit post Sep 98 - QMSI Implementation
(Gap analysis) May 99 - HESQ Policy Revised Jun
99 - Internal Auditor Training Dec 99 - Internal
PROSPER Audit Feb 00 - Improvement Suggestion
System Feb 00 - Corporate Direction Statement
Approved Apr 00 - ISO 9002/14001 test-audit by
DNV Jun 00 - Then, ISO certification audit by
ABS Jul 00 - Qatargas awarded ISO 9002
14001 certifications
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Continuous Improvement

• From an HESQ Perspective
• Management System Standards
• Rating Tool for Baseline Audit
• Follow-on ISO Compliance Audits

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HESQ Management System Standards Rating Tools

• Standards (Checklists) against which we measure
  our Management System
• Several Management System rating tools available
• Audits and certification
• Provide the means to progressively measure level
  of improvement
• Qatargas selected DNV PROSPER

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WHY PROSPER?
An existing integrated HESQ Management System
Standard Rating Tool
PROSPER
ISO 9002
ISRS
IQRS
British Standards
ISO 18001
ISO 14001
IERS
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PROSPER QMSI

• Framework for HESQ Management System
• 17 elements divided into 110 sub-elements
• HESQ Management System rating (Audit) tool
• 10 award levels
• September 1998 Qatargas at Award Level 2
• Award Level 4 equal to Dual Certification
• Qatargas presently at Award Level 7

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CHANGING ROLE OF PROSPER
PROSPER - Initially a Tool to Help Construct and
Strengthen Elements of the Qatargas HESQ
Management System
Adapting PROSPER at Qatargas
1998 ------gt 2000 -------2001
PROSPER - Now a Tool to Measure, Police Protect
HESQ Goals Objectives
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ISO QMSI

• Dual Certification - a significant milestone
• QMSI did not stop at certification!
• Retain certification by re-assessment (compliance
  audits every 6 months)

ISO - International Organization for
Standardization
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HESQ Management - Misconceptions
Not Just
A Product Quality System
Owned by Management
ISO Certification
Non-conformities observations
HESQ Department Program
Unnecessary Work
Policies Procedure
The Business Plan
Business Process Modeling
Team Building
Each makes a significant contribution, but real
improvement involves more
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HESQ Continuous Improvement Implementation
Qatargas Management Team
Management Representative
QMSI Support Team
Qatargas Organisation
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The benefits of HESQ Continuous Improvement are
many . . .

• Streamlined work processes with every action
  adding value
• Employees who know their roles in the
  organization
• Clear and open communications
• Safe and environmentally sound workplace
• Opportunity to receive recognition for a job well
  done and to be rewarded accordingly
• Benefits to employees, contractors, customers,
  shareholders, suppliers, community and country

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How Does Continuous Improvement Affect the
Organization?
Continuous Improvement is mutually inclusive

• Every employee contractor is involved - they
  must help make it happen
• All work processes are inter-linked
• Use Vendor Supplier feed back in the Continuous
  Improvement process
• Teamwork

We want everyone to feel that they can be all
that they want to be that their ideas are
welcome and that they are part of the Qatargas
family. - Pioneer April00
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Lessons Learned from ISO Implementation

• Select appropriate Management System Protocol
• Categorize Protocol sub-elements into ISO/
  Non-ISO critical
• Conduct baseline audit identify gaps
• Ensure Company Action Plan reflects ISO -
  Critical tasks
• Develop Implement Requisite Documents and
  Standards (e.g., Policies, Procedures,
  Instructions, Forms, Record keeping)
• Implement Internal Auditor and Non-Conformity
  Procedures/Training/Audit System ASAP
• Use Cross-Functional Support Team role
• Develop Key Performance Indicators (Metrics)

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Lessons Learned from ISO Implementation

• Align EMS (Environmental Management System) with
  ISO 14001 standard train personnel
• Internal Audit ISO Test Audit were invaluable
• Cascade Corporate Objectives down to individual
  employee
• Publicize to all
• Implement a Management System Orientation
  course
• Conduct perception surveys company-wide
• Issue special company newsletters
• Write monthly articles for company newsletters
• Establish a web site

Dont over-rely on written communications use
workshops other training courses
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Lessons Learned - Minimum HESQ Management System
Requirements
Quality
Safety/Health
Environment
Mgt. HESQ Comm. Mgt. of Change HESQ
Handbook Contractor HESQ Evaluation Fire
System ITM Program
QMSI Manual Management Review Management
Systems Audit Non-Conformities and
Observations Improvement Suggestions
Env. Mgt. System Env. Monitoring
Reporting Register Env. Aspects Impacts Air
Emissions Inventory Waste Mgt. Plan
Develop Key Performance Indicators
Onshore Offshore (Plant NFB)
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Lessons Learned - ISO Surveillance Audits

• Performed every 6 months
• Probably new non-conformities identified
• Corrective Action Plan developed
• Verification of Corrective Action Plan
  implementation
• Certification body typically focuses on weak areas

Bottom Line ISO process requires surveillance
audits every six months and typically are 2-4
days in length, performed by 2 surveyors.
Minimal preparation time is expected.
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A Word About New ISO 9000/2000

• Qatargas must comply with new standard by 2003
• Align QMS (Quality Management System) with
  ISO 9000 standard
• What is involved
• More customer focus, including metrics for
  customer appraisal system
• More Business Process Modelling
• More Senior Management Involvement

Bottom Line ISO 9000/2000 addresses product
QC/Service conformity and need for an
organization to demonstrate capability to achieve
customers satisfaction.
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Continuous Improvement Is . . .

• Owned by all Employees and Contractors, not just
  Management.
• About creating the right culture that
• accepts improvement and change
• encourages employees to adopt continuous
• improvement
• A means to fully utilize the strengths and ideas
  of your employees and contractors to work better
  as a team.

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Summary Continuous Improvement is a Two-Way
Street!
Direction Statement ? ? Business Plan
Strategy ? ? Corporate Objectives ?
? Department Objectives ?
? Individual Objectives ?Individual
Initiatives