IMPLEMENTING AN EHS & QUALITY MANAGEMENT SYSTEM FOR ISO 9002/14001
Agenda: Dual ISO 9002 & 14001 Certification • Where - Qatar • Who - Qatargas • What - Dual ISO 9002 & 14001 Certification • How - Continuous Improvement • Lessons Learned
MIDDLE EAST COUNTRIES RAS LAFFAN DOHA STATE OF QATAR UMM SAID STATE OF QATAR SYRIA IRAQ IRAN KUWAIT EGYPT SAUDI ARABIA BAHRAIN U.A.E. OMAN YEMEN
Qatar Liquefied Gas Company Limited m TOTAL M bil o MITSUI & CO. LTD. Marubeni
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 QATARGAS
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
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
CONTINUOUS IMPROVEMENT ACT PLAN CHECK DO 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
Continuous Improvement at Qatargas • Promoted thru the acronym QMSI: QATARGAS MANAGEMENT SYSTEM FOR CONTINUOUS IMPROVEMENT • QMSI - Qatargas strategy and methodology to achieve Continuous Improvement
What is a Management System? • What an organization does to manage its processes and activities • Includes policies, procedures, guidelines, organization charts, job descriptions, etc.
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
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 awardedISO 9002 & 14001 certifications
Continuous Improvement • From an HESQ Perspective • Management System Standards • Rating Tool for Baseline Audit • Follow-on ISO Compliance Audits
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
WHY PROSPER? An existing integrated HESQ Management System Standard & Rating Tool PROSPER* ISO 9002 ISRS* IQRS* British Standards ISO 18001 ISO 14001 IERS*
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
police 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 ------> 2000 -------2001+ PROSPER - Now a Tool to Measure, Police & Protect HESQ Goals & Objectives
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
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
HESQ Continuous Improvement Implementation Qatargas Management Team Management Representative QMSI Support Team Qatargas Organisation
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
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 April’00
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)
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 Don’t over-rely on written communications; use workshops & other training courses
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)
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.
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.
Continuous Improvement Is . . . • Owned by allEmployees and Contractors,not just Management. • About creating the right culturethat: • 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.
Summary: Continuous Improvement is a Two-Way Street! Direction Statement Business Plan Strategy Corporate Objectives Department Objectives Individual ObjectivesIndividual Initiatives