Qualification of Engineered Equipment Suppliers

1. Qualification of Engineered Equipment Suppliers Michael James Principle Consultant – Materials Engineering DuPont Engineering Technology

2. Why Qualification? Suppliers Of Engineered Equipment, Components And Services That Can Impact Process Safety and Unit Operation Are Subject to Qualification Evaluation To Help Ensure That They Have Appropriate Quality Programs and Are Capable Of Consistently Meeting All Specifications And Requirements (Company, Country, Legal, etc.) Maintenance Services That Can Impact Process Safety Are Performed By Qualified Personnel and Are Consistent With The Scope And Specifications For The Service. Companies Performing Repairs to Engineered Equipment Are Not Unlike Those Doing Original Fabrication 2

3. SUPPLIER QUALIFICATION PROCESS Primarily for Pressure Vessels, Atmospheric Tanks, Heat Exchangers and Fabricated Pipe

4. Why We Qualify Suppliers Before We Use Them Vendors Are Qualified Prior To Use To Ensure The Following: Possess Sufficient Knowledge And Systems To Support Engineering Design Support QA Requirements Support Fabrication Techniques Necessary to Produce Safe, High Quality Equipment That Meet Engineering Design Foster An Approved Safety Culture/Program With Verifiable Results. Allows Auditing Team The Opportunity To Understand The Vendors Previous Experience (Type of Builds) vs. Corporation’s Requirements.

5. Why We Qualify Suppliers Before We Use Them Allows For Further Review / Validation Of Supplier’s Financial Capacity Allows For Final Negotiation On Terms And Conditions

6. The Process Identify Potential Suppliers For Consideration Experience Recommendations From FSDC Peer Recommendations Other ? Can Be A Challenge for Global Suppliers Initial Evaluation Of Potential Suppliers Gather Data Via Standardized Supplier Evaluation / Information Forms Sent To Vendors Review All Data And Develop Final List Of Vendors For On-site Audit

7. Vendor Information Form

8. On-Site Evaluation of Each Vendor Team Composed of Qualified Personnel to Evaluate the Vendor in The Following Areas: Welding / Fabrication Capabilities – Technical Expert Design / Engineering – Technical Expert NDE / Inspection / QA Programs – Technical Expert General Work Quality and Shop Condition - All Safety - All Commercial - Commodity Buyer Results Recorded on On-Site Technical Qualification Template Provides a Audit Score for Each Vendor The Process

9. Evaluation Form Score Sheet

10. Compare Results of Evaluation With Criteria in A Vendor Classification Matrix Vendors Classified as High End, Mid-range, Low-End or Niche Supplier The Process

11. Classification Matrix

12. Add Qualified Vendors to the Approved Supplier List Update Corporate Approved Supplier List Get Information Out To All Sourcing, Corporate, Regional and Plant Site The Process

13. Approved Supplier List For Pressure Vessels & Heat Exchangers

14. After Shops are Qualified Opportunity to Bid on Engineered Equipment Carte Blanche ? Probationary Period with “Test” Jobs ? Global Region May Dictate Monitoring Progress? In-House Inspection Third Party Inspection The Process

15. Qualifying of Engineered Equipment Suppliers QUESTIONS?