SUPPLIERS AND SUBCONTRACTORS

Transcription

1 Page: 1 of 8 SUPPLIERS AND ISSUE STATUS Issue Date: Issued for Use Revision Date: Revision No.: 1 Action Position Issued By: Reviewed By: Reviewed By: Approved By: QESH Document Controller Company QESH Management Representative HR and Operations Department Director Chief Executive Officer

2 Page: 2 of 8 1. Scope of the Procedure This Procedure describes the methodology for the initial selection of suppliers and subcontractors and their subsequent evaluation. 2. Field of application of the Procedure and responsibilities This Procedure is applicable for all suppliers and subcontractors related with the projects undertaken by the Company. Those responsible for its application are: The CEO; The COO: Chief Financial Controller; HR and Operations Centre Department Director; Commercial Director; Business Development Manager; Company Representative for Quality, Environmental, Health and Safety (QESH) Management System; Head of Information Technology; Head of Procurement; Plant and Equipment Manager; Design Office Manager; Tendering Manager; Country Managers; Country Representatives for Quality, Environmental, Health and Safety (QESH) Management System; Senior Project Managers; Administration Department Managers; Financial Controllers; Procurement Department Managers; Quantity Surveying Managers; Computer Department Managers; Insurance Department Manager; Workshops Manager; Project Managers; Construction Managers; Site Engineers;

3 Page: 3 of 8 3. Description of the Procedure CROSS FUNCTIONAL PROCESS - SUPPLIERS PROCUREMENT DEPARTMENT MANAGER BRANCH QESH REPRESENTATIVE MATERIAL / SERVICE USER / CLIENT AUDITOR(S) REVIEW TEAM CONDUCT INITIAL ASSESSMENT ON POTENTIAL SUPPLIER APPROVED? 3.5 ADD TO APPROVED LIST REVIEW SUPPLIER PERFORMANCE ANNUALLY P840 P830 AUDIT REQUIRED? END 3.4 TIFY BRANCH QESH REPRESENTATIVE APPOINT AUDITOR(S) CONDUCT AUDIT P REVIEW AUDIT RESULTS APPROVE?

4 Page: 4 of 8 CROSS FUNCTIONAL PROCESS - P310 NEW DRAFT 3 PROCUREMENT DEPARTMENT MANAGER BRANCH QESH REPRESENTATIVE MATERIAL / SERVICE USER AUDITOR(S) REVIEW TEAM CONDUCT INITIAL ASSESSMENT ON POTENTIAL SUPPLIER / SUBCONTRACTOR 3.3 APPROVE? 3.5 ADD TO APPROVED LIST REVIEW SUPPLIER PERFORMANCE ANNUALLY P840 P830 SUPPLIERS ASSESSMENT QUESTIONNAIRE REQUIRED? ROUTE QUESTIONNAIRE TO POTENTIAL SUPPLIER / SUBCONTRACTOR REVIEW RESPONSE APPROVE? AUDIT REQUIRED? END TIFY BRANCH QESH REPRESENTATIVE APPOINT AUDITOR(S) 3.4 CONDUCT AUDIT P REVIEW AUDIT RESULTS APPROVE?

5 Page: 5 of Definitions Supplier Company providing material or services based on an agreed (through quotation) fixed price and paid by issue of an Invoice Sub-Contractor Company offering materials or services through a subcontract agreement which incorporates rates and payment terms. Any supplier or subcontractor should be assessed and approved before any order is placed or any subcontract is signed. Supplier Selection All new suppliers (either producers, traders or service providers) are assessed by the Company prior to any co-operation with them using a set of selection criteria as stated below. The Relevant Department Manager is responsible for gathering the relevant information, which is recorded on the Form F P Supplier s / Subcontractors Selection. In the event that the Department Manager decides that a local audit is necessary, they will communicate with the Country QESH Management Representative in order to appoint an appropriate auditor (or auditors). Results from the audit are recorded as required by IMS Procedure P 830. Responsibility for proposing suppliers for incorporation into the approved suppliers list lies with the Department Manager in consultation with the Country Procurement Manager and the Country QESH Management Representative. The decision is recorded on the Form F P During the selection procedure, criteria such as the following are taken into consideration: Previous experience and past performance with the product/service to be purchased. Relative level of sophistication of the supplier s quality system, including meeting regulatory requirements or mandated quality system registration (for example, ISO 9001). Ability to meet current and potential capacity requirements, and do so on the desired delivery schedule.

6 Page: 6 of 8 Financial stability. Technical support availability and willingness to participate as a partner in developing and optimizing a long-term relationship. Total cost of dealing with the supplier (including material or service cost, communications methods, inventory requirements and incoming verification required). The supplier's track record for business-performance improvement. Total cost assessment. All approved suppliers for a certain category (production or service) and type of products are recorded on the approved suppliers / subcontractors list (Form FP ) by the Procurement Department Manager. 3.3 Subcontractor Selection Subcontractors could offer various types of services to the Company, such as: - Design / engineering; - Construction; - Laboratory inspection and testing; - Maintenance of mechanical equipment; For the subcontractors assessment, a similar process (ref. ) as for suppliers is applied. Responsible persons are: - The Design Department Head for design subcontractors; - The Senior Project Managers for construction subcontractors; - The Senior Project Managers for subcontractors offering laboratory inspection and testing services; - The Plant Department Manager for subcontractors offering workshop and maintenance services; - Other persons appointed by the Resident Manager according to the case for the rest of the subcontractors. For the subcontractors assessment, Form F-P.310/1 is used in the same manner as for suppliers. Responsible for approving or rejecting subcontractors is the Country Manager, in consultation with the relevant responsible person as mentioned above and the Country QESH Management Representative. The decision is recorded on the Form F P

7 Page: 7 of 8 During the assessment procedure, factors such as the following are taken into consideration: - The subcontractor' s personnel and organisation; - The available equipment; - The quality of subcontractor's works, according to his procedures and to the Company's experience from previous cooperation with him; - The subcontractor's capability to keep the time schedule; - The subcontractor's intention to meet his contractual obligations; - The subcontractor s reliability; - The subcontractor s ability to provide risk assessment and environmental impact assessments required by the QESH Management System; - The subcontractor s QESH System and certification; - Audits by third parties; - The Client s approvals and / or comments Audits of Suppliers / Subcontractors Any of the responsible persons mentioned in paragraph 3.3, may decide that an audit of a supplier or subcontractor is necessary, regardless of the existence of an audit during the assessment process. In co-operation with the Country QESH Management Representative an appropriate auditor (or auditors) is (are) appointed and the supplier / subcontractor is notified in advance of the exact audit date. Depending on the audit s scope, the auditor(s) may conduct a full audit of the supplier s / subcontractor s processes or examine a part of them. Results from the audit are recorded as required by P.830, which is then communicated to the relevant responsible person and a comment of the audit s outcome. The audit results are taken into consideration during the annual suppliers / subcontractors' review. 3.5 Annual Suppliers / Subcontractors Review At the end of each year, suppliers and subcontractors performance is reviewed during the QESH Management System s annual review (Procedure P.830) where factors such as the following are taken into consideration: - Results of the suppliers and subcontractors' audits conducted by the Company; - Comments and remarks of the reports of suppliers and subcontractors' audits conducted by Clients and Third Parties; - Results of the previous reviews; - Suppliers / subcontractors performance and their conformance to the QESH System requirements;

8 Page: 8 of 8 4. Forms - Customers and other interested parties requests / complaints concerning suppliers and subcontractors; - Suppliers and subcontractors' performance indicators (Procedure P.840). During the annual review any necessary actions needed (such as new market research, suppliers and subcontractors' audits, suppliers and subcontractors' removal from the Company s List of Approved Suppliers / Subcontractors etc) are decided and scheduled and those responsible for their implementation are appointed. A non-scheduled review of a supplier or a subcontractor is also possible, in cases of serious and repeated Non-Conformities during the execution of Company's works. 3.6 Suppliers / subcontractors files For each supplier / subcontractor files are prepared, maintained and updated. Each file may contain the following, according to the case: - Supplier's / subcontractor s initial assessment; - Supplier's or subcontractor s assessment questionnaire; - Supplier's / subcontractor s audit reports; - Certificates; - Brochures; - Offers; - Orders; - Inspection reports; - NCR s; - Reports on its performance; - Client s complaints. Responsible for the suppliers files as well as subcontractors files is the Procurement Department Manager. F P Supplier / Subcontractor Selection F P List of Approved Suppliers / Subcontractors F P Supplier / Subcontractor Evaluation 5. Records All suppliers / subcontractors records are maintained for five (5) years and are then scrapped, with the exception of the List of Approved Suppliers / Subcontractors which is updated annually. 6. Revision Revision 1.