QM-58 Supplier Contract Quality Requirements Specification

1 Supplier Contract Quality Requirements Division Specification Title: Supplier Contract Quality Unique Identifier: QM-58 . Requirements Specification Area of Applicability: E. Documentation Type: PC. Revision: 0. Total Pages: 58. Next Review Date: March 2015. Disclosure Classification: CONTROLLED. DISCLOSURE. Supplier Contract Quality Requirements Specification Unique Identifier: QM-58 . Revision: 0. Page: 2 of 58. CONTENTS. Page 1. INTRODUCTION .. 4. 2. SUPPORTING CLAUSES .. 4. SCOPE .. 4. Purpose .. 4. 4. NORMATIVE/INFORMATIVE REFERENCES .. 4. Normative .. 4. Informative .. 4. DEFINITIONS .. 5. Eskom Definitions .. 5. ABBREVIATIONS .. 7. ROLES AND RESPONSIBILITIES .. 8. Division of Responsibilities .. 8. Eskom .. 8. Contractor .. 9. 3. ESKOM RIGHTS (NOT LIMITED TO THE FOLLOWING): .. 10. GENERAL Requirements .. 11. Quality MANAGEMENT POLICY .. 11. IMPLEMENTATION .. 11. Quality MANAGEMENT IN ENGINEERING .. 12. Design Quality Plan.

2 12. Design Planning and Control .. 12. Design Quality Planning .. 13. Criticality Assessment and Application .. 14. Design Inputs .. 15. Design 15. Design Verification .. 15. Inter-discipline Check and Review (Squad Check) .. 16. Design Validation (Including Software Validation) .. 16. Design Changes .. 16. System and Sub-System Lists .. 17. Design Element Identification, Traceability, and Composition Verification .. 17. Design, Safety and Model Reviews.. 18. Constructability Maintainability, Operability Reviews .. 18. Quality MANAGEMENT IN FABRICATION & 18. 18. Quality Audits and Related Quality Performance Reviews .. 20. Eskom Right of Access .. 21. TENDER SUBMISSION PHASE .. 21. Contractor documents with the tender .. 21. The Contractor shall submit a draft Contract Quality Plan (CQP) with the tender.. 22. TENDER EVALUATION, ADJUDICATION AND NEGOTIATION PHASE .. 23. 23. Contract AWARD PHASE .. 26. Contract AWARD AND Quality CONTROL PHASE.

3 27. Pre- Contract execution .. 27. Supplier and subcontractor Quality Management Plan .. 27. Supplier and Subcontractor Inspection and Documentation Requirements .. 28. Contract execution .. 31. Inspection Reports .. 31. Non-conformance Reports and Log .. 32. CONTROLLED DISCLOSURE. When downloaded from the EDS database, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the database. Supplier Contract Quality Requirements Specification Unique Identifier: QM-58 . Revision: 0. Page: 3 of 58. Contractor's inspection and testing .. 33. Verification of purchased product .. 33. Third Party Inspection .. 36. AIA .. 36. Eskom appointed AIA organization .. 36. MATERIALS MANAGEMENT PROGRAM .. 37. 37. Traceability .. 37. Positive Material Identification .. 38. Quantitative Quality measurement tools .. 38. Preservation .. 38. Expediting during Contract execution.

4 41. Quality Control on Completion of the 42. Manufacturing Record Books.. 42. Supplier Quality PERFORMANCE MONITORING PHASE .. 43. E- Quality TOOL (ACHIEVER PLUS) .. 44. PAYMENT AND DELIVERY .. 44. 4. AUTHORIZATION .. 45. 5. REVISIONS .. 45. 6. DEVELOPMENT TEAM .. 45. APPENDIX A : TENDER & Contract Quality Requirements .. 47. APPENDIX B : Quality Requirements FOR ISO 9001 SERIES .. 48. APPENDIX C : TEMPLATE FOR A TYPICAL Contract Quality PLAN .. 49. APPENDIX D : DEFECT NOTIFICATION .. 53. APPENDIX E : CAR .. 54. APPENDIX F : CONCESSION .. 55. APPENDIX G : CONCESSION .. 56. APPENDIX H: Requirements FOR A PRODUCT VERIFICATION PLAN .. 57. APPENDIX I: Quality CONTROL PLAN/INSPECTION & TEST PLAN .. 58. CONTROLLED DISCLOSURE. When downloaded from the EDS database, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the database. Supplier Contract Quality Requirements Specification Unique Identifier: QM-58 .

5 Revision: 0. Page: 4 of 58. 1. INTRODUCTION. This Specification is to specify and describe the minimum Quality Requirements for all existing and potential Eskom Contractors and Suppliers, and to define the Quality criteria for the evaluation, selection and monitoring of same. 2. SUPPORTING CLAUSES. SCOPE. Purpose The purpose of this Specification is to specify the Requirements by which Contractors and Suppliers shall manage, implement, maintain and continually improve a Quality management system (QMS) based on ISO 9001:2008 (or latest applicable revision). The intention is that Contractors and Suppliers should continuously adhere to Eskom's Quality Requirements in respect of the supply of products and related services. Applicability This Specification applies to all employees, entities, suppliers and Contractors involved in Eskom new build and operating and maintenance programme (plant refurbishment, engineering, procurement, manufacturing, installation, and commission works).

6 When applied to a particular Contract , the relevant clauses of ISO 9001:2008 (or latest applicable revision) and the business processes Requirements are indicated on the enquiry/ Contract /order Quality requirement forms (see Annexure A and B). This Specification will be applicable to any type of Contract , where the wording as well as applicable aspects shall be customised to the specific Contract , and reflected in the Contract document to be signed by Eskom and the Supplier . NORMATIVE/INFORMATIVE REFERENCES. Parties using this document shall apply the most recent edition of the documents listed in the following paragraphs. Normative [1] ISO 9001:2008 Quality Management Systems Requirements [2] ISO 9001:2005 Quality Management Systems Fundamentals and Vocabulary [3] ISO 10005:2005 Guidelines for Quality Plans Standard [4] ISO 10006:2003 Guidelines for Quality Management Systems in Projects [5] ISO 90003, Software Engineering Guidelines for the Application of ISO 9001.

7 Informative [6] ISO 9004:2009 Managing for the Sustained Success of an Organization A Quality Management Approach [7] NEC family of Contract documents, as applicable to the specific Contract CONTROLLED DISCLOSURE. When downloaded from the EDS database, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the database. Supplier Contract Quality Requirements Specification Unique Identifier: QM-58 . Revision: 0. Page: 5 of 58. [8] FIDIC form of Contract , as applicable to the specific Contract DEFINITIONS. Eskom Definitions a. Supplier The word Supplier refers to the Contractor b. Customer The word customer refers to Eskom Holdings SOC Limited (in the context hereof referred to as Eskom). c. Contractor A group of people and facilities (corporation, firm, enterprise, institution etc.) with an arrangement of responsibilities, authorities and relationships.

8 It also refers to Supplier , consultant and service provider d. Subcontractors An organization or legal entity that provides a product to the Supplier and/or that enters into a subcontract and assumes some of the obligations of the Supplier or prime Contractor e. Inspection Agency An organization or person appointed by Eskom for the purpose of performing Quality assurance or Quality control monitoring and or inspection services f. Approved Inspection Authority An organization or person approved by the Chief Inspector, South African Department of Labour, in terms of the Occupational Health and Safety Act 85 of 1993 and appointed by Eskom g. Regulatory body A person or persons representing a statutory body as required by law h. Works All deliverables expected from the Contractors as per the scope of works, Requirements specified in the request for tender i. Major plant items Plant and Material items ( components, works that have an impact on safety of staff or equipment, the environment, plant reliability and availability and are of a high cost (Refer to Guideline GGG 1099 General Plant level Classification).)

9 This also includes Transmission Primary and secondary Plant items, and same for Distribution. j. Refurbishment Restoration to a sustainable usable state or as near as possible to new state (within agreed limits). k. Quality Control Plan (QCP). A document specifying the activities to be inspected throughout the execution of the project, inclusive of test methods, procedures and acceptance criteria. (This term is equivalent to QIP and ITP). l. Contract Quality Plan A document compiled, as required by the Contract Quality Requirements Specification , by a Contractor which spells out the aspects of the Quality management system to be applied within a CONTROLLED DISCLOSURE. When downloaded from the EDS database, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the database. Supplier Contract Quality Requirements Specification Unique Identifier: QM-58 .

10 Revision: 0. Page: 6 of 58. specific Eskom project, and the methods to be utilized to ensure Quality assurance, control and improvement of the identified activities that they will be carried out as stated in the Works Information to ensure that the product/service meets Eskom Requirements (This document can be viewed as a combination of a PQP and QCP). m. Intervention points Intervention points are those control points indicated by the various controlling bodies concerned with the implementation of a specific QCP / ITP. These can be in the form of tests, inspection, surveillances, witnessing, reviews, failure and incident investigations). n. Hold points An activity of an inspection and test plan which must be notified by the Contractor to Eskom and beyond which work shall not proceed without the attendance of Eskom's representative or the written approval of Eskom to proceed. o. Surveillance Point Random monitoring of work processes and tests.