QUALITY MANAGEMENT SYSTEM

Transcription

1 QUALITY MANAGEMENT SYSTEM Revision No: 3.3 Issued: Pronghorn Controls Ltd 101, nd Ave SE Calgary, AB T2C 3H3 BUS: (403) Proprietary Document Disclosure Restricted to Employees and Authorized Holders

2 REVISION HISTORY Revision # Date Changes Jun2015 Initial Release Jul2016 Updated External Review 3.2 8May Competence, Awareness Training b) The VP HR in conjunction with Director of Resourcing, with input from responsible managers, evaluates and qualifies applicants for specific job openings and succession planning on the basis of documented or demonstrated competencies. Where possible, qualification of existing employees is facilitated for new/changed jobs through the provision of education and training including on-the-job-training (OJT) Internal Audit Added form Internal Audit Checklist QMF 8.2.2c 3.3 Added new branch Lloydminster. APPROVAL HISTORY Approver s Name Signature Date Revision # Yves Tremblay 30Jun Dean Toly Dean Toly Dean Toly 13Jul May Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 2 of 30

3 TABLE OF CONTENTS QMS MANUAL INTRODUCTION...5 COMPANY BACKGROUND...6 QUALITY MANUAL ISSUE AND REVISION...6 PURPOSE...6 VISION STATEMENT SCOPE GENERAL APPLICATION NORMATIVE REFERENCE TERMS AND DEFINITIONS QUALITY SYSTEM REQUIREMENTS GENERAL REQUIREMENTS Documentation System DOCUMENTATION REQUIREMENTS General Quality Manual Control of Documents Records Management MANAGEMENT RESPONSIBILITY MANAGEMENT COMMITMENT CUSTOMER FOCUS THE QUALITY POLICY - CORPORATE PLANNING Quality Objectives Quality Management System Planning RESPONSIBILITY, AUTHORITY, AND COMMUNICATION Responsibility and Authority Management Representative (QMS Manager) Internal Communication MANAGEMENT REVIEW General Review Input Review Output RESOURCE MANAGEMENT PROVISION OF RESOURCES HUMAN RESOURCES General Competence, Awareness, and Training INFRASTRUCTURE WORK ENVIRONMENT Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 3 of 30

4 7. PRODUCT REALIZATION PLANNING OF PRODUCT OR SERVICE REALIZATION CUSTOMER-RELATED PROCESSES Determination of Requirements Related to the Product or Service Review of Requirements Related to the Product or Service Customer Communication DESIGN AND DEVELOPMENT PURCHASING Purchasing Process Purchasing Information Verification of Purchased Product SERVICE PROVISION Control Service Provision Validation of Service Provision Identification and Traceability Customer Property Preservation of Product Use of Third Party Services CONTROL OF MONITORING AND MEASURING DEVICES MEASUREMENT, ANALYSIS, AND IMPROVEMENT GENERAL MONITORING AND MEASUREMENT Customer Satisfaction Internal Audit Monitoring and Measurement of Processes Monitoring and Measurement of Product and Services CONTROL OF NON-CONFORMANCES ANALYSIS OF DATA IMPROVEMENT Continual Improvement Corrective Action Preventive Action Figures FIGURE 1: BUSINESS PROCESS MODEL FIGURE 2: STRUCTURE OF QUALITY MANAGEMENT DOCUMENTATION SYSTEM Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 4 of 30

5 INTRODUCTION Pronghorn Controls is a full service instrumentation and electrical products and services company which handles projects from concept to completion installation, commissioning and start up, ongoing maintenance and technical support, see Scope 1.1 for details. This Quality Management System (QMS) Manual defines the policies of Pronghorn Controls Ltd., and will be adhered to within all Pronghorn Controls Ltd. operational procedures and processes as identified in this manual. Implementation of policies defined herein includes the required responsibilities and essential controls that must be exercised in order to carry out various activities during the course of providing products, components or services as commercial deliverables. Procedures, forms, and flow chart documents define how tasks are performed in order to assure final product quality. This manual can also be used as a key Business Management document to establish the foundation and corporate governance that will be applied to guide and improve the company. This Quality Management System (QMS) is intended to be a tier one document that encompasses all facets of the company. The Pronghorn Controls Ltd. Quality Management System contains the following items: QMS body; Documented procedures; Forms as required; Logs as required; Roles and responsibilities; The QMS helps ensure that all customer requirements are met, and that company quality standards are maintained. It is mandatory that all Pronghorn Controls Ltd. personnel adhere to the procedures and organizational controls described in this QMS Manual. STATEMENT OF AUTHORITY The Pronghorn Controls Ltd. CEO shall establish the Quality Policy and will approve the Quality Management System. The QA/QC Manager is hereby appointed to administer the system describes in this manual. The QA/QC Manager has sufficient and well defined responsibility along with the authority and organizational freedom to initiate, recommend, and provide solutions to all QMS problems whether they are safety or operational concerns. This QMS has the full support of the senior management of Pronghorn Controls Ltd. who will ensure that adequate resources, including competent personnel, are provided in order to effectively implement the quality system processes in all operational districts and areas and in full compliance with the safety requirements of the SCA and Regulations. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 5 of 30

6 Any QMS problems which cannot be resolved through designated channels shall be brought to the executive s attention for resolution without compromising the Code or QMS. Yves Tremblay President & CEO COMPANY BACKGROUND Pronghorn Controls Ltd. commits to continuously improving its quality management practices so as to advance product quality, enhance customer satisfaction, and maintain and build market share. To achieve these quality objectives, we have implemented a Quality Management System (QMS) based on the IS International Standard. QUALITY MANUAL ISSUE AND REVISION The QMS Manager is responsible for the issue and revision of the Quality Management System Manual. The Quality Management System Manual is reviewed yearly to ensure its conformance to the current ISO 9001 standard, as well as to customer and company requirements. A documented revision number indicates a change to the Quality Management System Manual, with each revision canceling and replacing the previous issue. The revision number and date shown on each page indicate the current status of this manual. The QMS Manager and the CEO shall approve revisions to the QMS Manual. PURPOSE The purpose of this QMS Manual is to put into practice the Pronghorn Controls Ltd. commitment to implementing and maintaining the Quality Management System and to provide concise and accurate references that reflect the current corporate operating practices. VISION STATEMENT To be a recognized leader in industry for superior and maintained: Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 6 of 30

7 1) Safety; 2) Customer satisfaction; 3) Quality standards; 4) Employee health, wellness, and employment satisfaction; 5) Corporate and stakeholder profitability. 1. SCOPE 1.1 General Pronghorn Controls is a full service instrumentation and electrical products and services company which handles projects from concept to completion installation, commissioning and start up, ongoing maintenance and technical support. Preventative/Proactive Maintenance Infrared Scans Plant Turn-around Compressor Panel Construction Complete Oil Battery Construction Modification / Retrofit To Existing Facilities Complete Gas Plant Construction Commissioning Plant Start Up & Assistance Calibration Shutdown Checks Modular Skid Wiring Flow Measurement Fire & Gas Detection Systems Solar-Powered Chemical Analytical Equipment SCADA & RTU Water Injection Systems Dew Point Consultation Pneumatic & Electronic Control Valves Water Treatment Plants SCADA System Fluid Meter Provers RTU Radio, ROC, Scanner Pronghorn Controls Ltd. has developed this Quality Manual, work instructions and forms, and associated procedures using the ISO 9001:2008 Standard. When implemented and followed, this Quality Manual ensures that the services provided and the products developed by the company meet and exceed customer requirements and regulatory statutes. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 7 of 30

8 Rigorous application of the company Quality Management System by management, supervision, and all employees ensures that customer and statutory requirements are met fully and that implemented processes and procedures continually improve. Pronghorn Controls Ltd. maintains district branch shops in numerous locations. The District Manager at each location is the designated QC Lead for projects managed from the branch and has overall responsibilities to implement the Pronghorn QMS at their specific district. Shops locations and addresses are as follows: BROOKS KINDERSLEY 269 Aquaduct Dr 408 1Ave West Brooks, AB T1R 1B3 Kindersley, SK SOL 1S0 CALGARY LLOYDMINSTER 101, Ave SE Bay 1, Ave Calgary AB, T2C 3H3 Lloydminster, AB T9V 3K5 CAMROSE MEDICINE HAT St St SW Camrose, AB T4V 1H3 Medicine Hat, AB T1B 4A6 DRUMHELLER NISKU St Bay 1, St Drumheller, AB T0J 0Y0 Nisku, AB T9E 0A6 EDSON RED DEER St Bay 2, Ave Edson, AB T7E IV7 Red Deer, AB T4P 1M2 FORT ST JOHN ROCKY MOUNTAIN HOUSE Alaska Road Street Fort St John, BC V1J 6P3 Rocky Mountain House, AB T4T 1A3 GRANDE PRAIRIE TABER 102, Ave Bay A, Ave Grande Prairie, AB T8V 5A5 Taber, Alberta T1G 2J6 Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 8 of 30

9 1.2 Application QMS MANUAL Our QMS complies with all applicable requirements contained in ISO 9001:2008, covers the design and provision of all company products (when applicable) and encompasses all operations at and from our facilities located in Alberta, British Columbia, and Saskatchewan. The following table identifies ISO 9001:2008 requirements not applicable to our organization and provides a brief narrative justifying their exclusion from the scope of our QMS. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 9 of 30

10 ISO 9001:2008 Requirements EXCLUSION TABLE Clause or Sub-clause Exclusion Justification 7.3 Design and development We do not perform Design or Engineering 2. NORMATIVE REFERENCE Appendix I contains the list of key QMS documents referenced in this manual and defines the key top level processes for implementing this quality policy. 3. TERMS AND DEFINITIONS Note: Throughout this document, where the term "product" occurs, it can also mean "service". Terms and Definitions are documented and can be located in Appendix B. 4. QUALITY SYSTEM REQUIREMENTS 4.1 General Requirements Pronghorn Controls Ltd. has established a Quality Management System and will continually improve its effectiveness in accordance with the ISO 9001 requirements. The company has completed the following: Identified the processes needed and determined the sequences and interaction of the processes necessary for the operation of the business through the overall business process. Determined the criteria and methods required through the Quality Manual, processes, work instructions, and other support documents relevant to the related quality processes to ensure the effectiveness of the operation of these processes. Ensured all employees are orientated and trained to their roles and responsibilities related to the Quality Management System, are complying with all requirements, and are dedicated to continually improving the effectiveness of the Quality System. Allocated resources, including manpower, facilities, and support documentation in terms of forms and reports in order to support, measure, monitor, and analyze the processes needed to ensure that the QMS implementation is geared towards achieving planned results and continual improvement. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 10 of 30

11 The company has identified the processes needed, and the interface, interaction, and sequences (INPUT and OUTPUT of processes) necessary for the operation of the business, and improvement of the Quality Management System as shown in the following process models. Figure 1: QMS Process Model Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 11 of 30

12 4.1.1 Documentation System The Quality Management System, which is based on the life cycle business process, is documented in a four-level structure as shown in Figure 2 below. Level I Level II Level III Level IV Quality Manual Procedures Work Instructions Other Documents Figure 2: Structure of Quality Management Documentation System Level I: Quality Manual This document provides an overview of the Quality Management System and contains the Quality Policy. It also states the operational policies that form the basic principles of the company s operations. This manual makes reference to the Quality Objectives and working procedures of the system. Level II: Procedures Procedures describe operational practices, responsible personnel, and interfaces between the various departments and functions. It includes the documented procedures required by ISO 9001 and any other documents needed to ensure effective control of operations. Level III: Work Instructions Work Instructions delineate the details of specific tasks or activities, i.e., the how of performing a specific task and creating or verifying a product. Level IV: Other Documents Other documents include forms, tags, labels, and other documentation that prompts the recording of substantiation (per Levels I, II, and III) of compliance to requirements. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 12 of 30

13 4.2 Documentation Requirements General The company s documented Quality Management System includes: QMS MANUAL A documented Quality Policy, as well as specific measurable Quality Objectives for customer satisfaction and product quality; A Quality Management System Manual; Documented procedures, Control of Documents, Control of Records, Internal Audit, Control of Non Conformances, Corrective Action and Preventive Action; Documents required by the company to ensure an effective planning operation and control of its processes Quality Manual The company has established and maintains a Quality Management System Manual (QMS) that includes: The scope of its QMS, including details and justification of any exclusions; The documented procedures established for the QMS, or references thereto; and A description of the interaction between the QMS processes in the way of an overview process flowchart (see Figure 1) Control of Documents Formal procedures have been created and documented by the company to ensure all documents relating to the Quality Management System and operation of the company are properly controlled. Documents include the Quality Management System Manual, procedures, forms, work instructions, reports, and all specifications. These documents are drafted by business unit owners in coordination with the QMS Manager and Corporate Services Coordinator, reviewed by experts in the functional areas, and approved prior to issue. Procedures are reviewed periodically for continued applicability and updated as necessary to reflect current practices. When changes are made to these documents, the QMS Manager and the Corporate Services Coordinator ensures the document revision is approved and meets corporate governance, and the status is clearly identified. The QMS Manager ensures: a) The current revision status of documents is recorded on the document. b) Relevant versions of applicable documents are available at points of use. Documents remain legible, readily identifiable and retrievable. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 13 of 30

14 c) Documents of external origin (including customer engineering standards/specifications) are identified and their distribution controlled. d) The unintended use of obsolete documents is prevented, and suitable identification is applied if retained for any purpose Records Management Reference: Document Control Procedure QMP Formal procedures have been created and documented by the company to ensure the identification, storage, protection, retrieval, retention, and disposition of corporate records meets corporate requirements. These records are maintained for effective corporate operation, material and parts traceability, and to demonstrate compliance to the Quality Management System and corporate requirements. The records are kept as printed copies (i.e., hardcopy ) and/or in electronic form (i.e., softcopy ). Reference: Records Management Procedure QMP MANAGEMENT RESPONSIBILITY 5.1 Management Commitment The company is committed to the development and continual improvement of the Quality Management System. The CEO and QMS Manager: Have established a quality policy to communicate to all employees the importance of applying the ISO standards to meet customer requirements; Have defined quality objectives to assess the effectiveness of the Quality Management System to provide direction and achieve desired results; Conduct periodic management reviews to ensure that the quality policy and objectives remain relevant and suitable with respect to current operation of the company and that the resources needed to support these objectives are sufficient and appropriately allocated; and Ensure that customer, statutory and regulatory requirements are determined, fulfilled and communicated. All managers demonstrate their commitment to the development and improvement of the QMS through the provision of necessary resources, through their involvement in the internal audit process, and through their proactive involvement in our continual improvement activities; where emphasis is placed on improving both effectiveness and efficiency of our key QMS processes. Reference: Pronghorn Controls Organizational Chart Appendix C 5.2 Customer Focus The CEO and QMS Manager will demonstrate active involvement in establishing and maintaining mutually beneficial relationships between the company and its customers. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 14 of 30

15 Customer complaints and other customer input/feedback are continually monitored and measured to identify opportunities for improvement. Joint planning meetings are used as a method to interact directly with individual customers and ensure that proper attention to their unique needs and expectations is established and maintained. These customers focused communications and interactions ultimately yield clear, explicit customer requirements and expectations in the form of a contractual agreement or change orders. 5.3 The Quality Policy - Corporate Pronghorn Controls Ltd. employees are dedicated to fulfilling the expectations of our customers by ensuring products and services exceed the requirements and expectations of our customers. Pronghorn Controls Ltd. employees are dedicated to ensuring the continuous improvement of the Quality Management System, as well as meeting the requirements of statutory and regulatory provisions. Pronghorn Controls Ltd. has established the following Quality Objectives: a) Identify and mitigate corporate risk; b) Increase customer satisfaction; c) Provide continual improvement; d) Raise the quality of provided products and services; e) Provide information and data for management to administer and direct; f) Increase profitability for the company and all stakeholders. 5.4 Planning The company shall plan and develop the processes needed for product and service realization. The planning of the product and service realization processes shall be consistent with the Quality Management System Quality Objectives Pronghorn Controls Ltd. has established Quality Objectives. The QMS Manager maintains these Quality Objectives in coordination with the CEO, Senior Management and Department Managers. The Quality Objectives are reviewed, measured, and analyzed during Management Reviews, Project Review, and at other times as applicable. In order to achieve the Quality Objectives, the company shall: Implement and maintain a Quality Management System. Strive toward continual improvement in its operations and ensure that such improvements are identified and communicated effectively. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 15 of 30

16 Ensure all employees are complying with the Quality Management System and are dedicated to continually improving the effectiveness of the Quality System. In order to gauge the effectiveness of the Quality Management System, the CEO and QMS Manager shall: Periodically review QA portion of completed worksite inspections to look for gaps. Periodically review the performance indicators and the Quality Objectives with department managers and quality steering committee, and determine action plans to remedy any deficiencies Quality Management System Planning The CEO and QMS Manager ensure that the planning of the Quality Management System is accomplished to meet the Quality Objectives. The QMS planning process involves the establishment and communication of our quality policy and objectives through issuance of this manual and its associated procedures, and through the provision of resources needed for its effective implementation. Accordingly, this manual constitutes our overall plan for establishing, maintaining and improving an effective QMS. Our management review process and internal audit process ensure the integrity of our QMS is maintained. When significant changes are planned and implemented that affect our key QMS processes, the CEO and QMS Manager shall ensure the integrity of the Quality Management System is maintained. 5.5 Responsibility, Authority, and Communication Responsibility and Authority The Chief Executive Officer (CEO) The CEO sets direction and ensures the success of business through the clear definition and communication of QMS responsibilities and authorities. Other members of senior management include the Chief Operations Officer (COO) illustrated depicted in the company Organization Chart (see Appendix C Organization Chart). Senior Management Members of senior management hold ultimate responsibility for the quality of Pronghorn Controls Ltd. products and services as they control the systems and processes by which work is accomplished. Senior Management is responsible for business planning, development and communication of the quality policy, QMS planning including the establishment and deployment of objectives, and the provision of resources needed to implement and improve the QMS and management reviews. Management All managers are responsible for execution of the business plan and implementation of the policy, processes and systems described in this manual. Managers are also responsible for planning and controlling QMS processes within their area(s) of responsibility, including the establishment and deployment of operational level objectives and the provision of resources needed to implement and improve these processes. As required managers may delegate authority for their QC responsibilities to competent personnel Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 16 of 30

17 under their supervision. Management ensures that production across all departmental areas is staffed with personnel in charge of (or delegates responsibility for) product or service quality. Employees All employees are responsible for the quality of their work and the implementation of the policies and procedures applicable to processes they perform. Personnel responsible for product quality have the authority to stop production to correct quality issues. Employees are motivated and empowered to identify and report any known or potential problems, and recommend related solutions through internal audits, nonconformance identification, and/or the continual improvement and preventive action processes. Detailed responsibilities and authority for QMS implementation and improvement are contained in lower level documents referenced throughout this manual and other QMS documents including procedures, flow charts, job descriptions, etc. Responsibilities as defined or recognized within Pronghorns Job Description Documents or the QMS Manual may be transferred between individuals as required if it is acknowledged by both the delegator and the delegate that the delegate is both knowledgeable and competent to perform the role or responsibilities of the position. Delegation of Authority Form QMF will be completed and signed by both parties Management Representative (QMS Manager) Reference: Delegation of Authority QMF Ensures that processes needed for the performance of the Quality Management System are established, implemented and maintained. The QMS Manager reports to the CEO on the performance of the Quality Management System and the needs for improvement. Ensures the promotion of awareness of customer requirements throughout the organization Internal Communication The CEO and QMS Manager determine the channels and processes necessary to facilitate internal communication for the effective implementation of the Quality Management System. Organizational goals and customer expectations are conveyed throughout the policy and objective statements. Periodic meetings are held with the CEO, Senior Management, Supervisors and relevant personnel to discuss the latest issues relating to operation. Results of discussion, testing, inspection, and audits are channeled to the appropriate personnel through reports, records, and meeting minutes as necessary. Other information is conveyed through memos and verbal conversation. The company strives to document all information pertaining to the improvement or failure of the Quality Management System. The QMS Manager provides quality bulletins and related information and the District Manager or appointed designate posts information on quality bulletin boards throughout the company to convey information regarding the status and importance of quality activities. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 17 of 30

18 The QHSE Field Manager provides HSE bulletins and related information and the District Manager or appointed designate posts information on safety bulletin boards throughout the organization to convey information regarding the status of the Safety and Environmental Management Program, and related statutory/regulatory requirements. The Vice President of Human Resources provides HR bulletins and related information and the District Manager or appointed designate posts information on employee bulletin boards throughout the organization to convey information regarding employee benefits, programs, involvement opportunities, and applicable statutory/regulatory requirements. 5.6 Management Review General The CEO and QMS Manager review the effectiveness and suitability of the Quality Management System annually against the quality policy and objectives. The QMS Manager maintains all records of these reviews. The primary items for review include data that measures the conformance and performance of the QMS and the recommendations based on analysis of such data. Conformance is primarily assured through internal audits. This is demonstrated through a review of internal audit results and our ability to identify and correct/prevent problems. Performance is primarily assured through the deployment of corporate/operational level objectives and demonstrated through a review of the corporate ability to achieve desired results. The primary outputs of management review meetings are management actions taken to make changes or improvements to our QMS and the provision of resources needed to implement these actions Review Input The review shall cover the following inputs: a) Internal and external audit results; b) Customer feedback; c) Process performance and product conformity; d) Status of preventive and corrective actions; e) Follow-up actions from previous management reviews; f) Planned changes that could affect the Quality Management System; g) Opportunities and recommendations for improvement; h) Quality Objectives; and i) Quality Policy. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 18 of 30

19 5.6.3 Review Output QMS MANUAL At a minimum, output from management review meetings include new/revised corporate level improvement objectives and any related actions required for improvement of the QMS and its processes, improvement of product related to customer requirements, and provision of resource needs. Results of management review meetings are recorded and maintained by the ISO Management Representative. Actions and decisions arising from the Management Review include: Improvement of the effectiveness of the Quality Management System and its processes; Improvement of product related to customer requirements; Resource requirements, and; 6. RESOURCE MANAGEMENT Action Item List from all functional departments. 6.1 Provision of Resources Reference: Management Review Procedure QMP 5.6 Management Review Form QMF 5.6 To implement, maintain, and continually improve the Quality Management System, the company will receive input from all responsible managers to ensure appropriate resources (trained employees and equipment, facilities, support services and work environments) are available to implement, manage and improve an effective/efficient QMS and enhance customer satisfaction. These elements are identified and provided in budgeting and other business management processes. This shall focus on enhanced customer satisfaction by meeting and exceeding customer requirements and expectations. 6.2 Human Resources General All employees, including those affecting product or service conformity, shall be competent and possess appropriate education, training, skills and experience. In order to ensure that employees are competent, the company shall exercise care in the recruitment of new employees and is committed to evaluation, monitoring, and the continual improvement of all employees Competence, Awareness, and Training The competency of people assigned responsibilities defined in the QMS is determined on the basis of documented criteria for appropriate education, training, skills, and experience for each required competency or work assignment. The Vice President Human Resources (VP HR) has overall responsibility for administering Pronghorn Controls Ltd. Human Resource Management programs in accordance with the HR procedures and the following policies. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 19 of 30

20 b) Need Determination - competency needs are determined, including employee training and awareness needs, through the following actions: Senior Management identifies emerging competency needs during management reviews. Emergent competency needs are converted into job descriptions for the type and number of positions that need to be filled through external recruitment, internal reassignment/promotion, and/or outsourcing actions. The VP HR in conjunction with Director of Resourcing, with input from responsible managers, evaluates and qualifies applicants for specific job openings and succession planning on the basis of documented or demonstrated competencies. Where possible, qualification of existing employees is facilitated for new/changed jobs through the provision of education and training including on-the-job-training (OJT). The VP HR, with input from responsible managers shall establish and maintain job descriptions for each position held at Pronghorn Controls Ltd. to document specific competencies needed to ensure the quality of Pronghorn Controls Ltd. products and services. c) Provision - Training needs (identified as a result of the need determination activities above) shall be passed to the VP HR for appropriate planning and timely provision. d) Effectiveness - The effectiveness of all actions taken to meet competency needs shall be evaluated. Training is evaluated through immediate feedback from employees and managers, officers, or supervisors who identified the training requirement. Training effectiveness information shall be collected and documented by the manager responsible for each training event. The VP HR, with input from other responsible managers, shall monitor and measure the overall effectiveness of training and other actions taken to meet competency needs and provides related recommendations to senior management for review and action. e) Employee Awareness. The company shall endeavor to ensure that our employees are aware of customer requirements, the relevance and importance of their activities and how they contribute to the achievement of our quality policy and objectives. This is accomplished through awareness training and employee participation in internal audit and improvement processes. f) Records. The company shall maintain appropriate records of education, tickets, training, skills and experience in accordance with provision of Section The VP HR maintains employee qualifications, competency review records and results. The Projects Superintendent or QC Lead is responsible for documenting accurate records of all training completed for personnel assigned to that site. Employees are provided with the required training to equip them with the basic skills to carry out their work effectively. The Business Unit Managers identify employee-training needs with instruction and guidance provided through internal and/or external means. Periodic evaluations are performed to evaluate the effectiveness of the corporate orientation and any training. g) Exams or Quizzes. All training, orientations, and exams are to be documented with the date, topics, person facilitating the test, and employee position and signature. HR and Safety shall retain copies of all training exams as required. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 20 of 30

21 All corporate exams require a minimum 80% grade to pass. Any employee who does not obtain an 80% mark will be required to re-study the source exam material and re-write the exam. An approved management representative will proctor all exams. Exams will be marked in red pen, with all correct or incorrect answers indicated with a (check mark) or X. All incorrect answers will be explained to the examinee, and the correct answer circled. The employee will initial all corrected answers, and sign the completed test. 6.3 Infrastructure Reference: Human Resources and Employee Training Procedure QMP The company shall identify, provide, and maintain the infrastructure needed to achieve product and service conformity. This includes workspace, associated utilities, process equipment, and supporting services. Automation of processes and software information management systems will be utilized as a tool of reporting and monitoring of non-conformances, corrective action, and preventive action. Software will also be used to collect, analyze and report data collected in the management and execution of the Quality Management System, and management of the company. 6.4 Work Environment Reference: Information Technology Procedure QMP 6.3 The company shall identify and manage the work environment needed to achieve product and service conformity. The company shall consider environmental conditions as a work environment, and shall monitor work being performed in inclement or potentially dangerous conditions. Where employee safety or the quality of the provided product or service is in question, then work shall be immediately suspended until the time that these conditions and risks can be controlled. Risk such as these should be acknowledged, discussed and documented in the corporate safety program and job related work procedures and policies. Pronghorn Controls Ltd. provides employee benefits, interesting work, and involvement of employees in an empowered environment of continual improvement. We promote and generate total participation by involving employees in internal audit and improvement activities. The Human Resources department has overall responsibility for identifying, implementing and maintaining effective employee benefit and workforce involvement programs. The Company President and CEO has overall responsibility for identifying, implementing and maintaining safety and environmental management systems, and processes and controls needed to ensure product conformance meets customer, statutory and/or regulatory requirements. We monitor and improve workplace safety, health, and ergonomics through adherence to good manufacturing practices, and through safety team meetings and training. 7. PRODUCT REALIZATION Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 21 of 30

22 7.1 Planning of Product or Service Realization QMS MANUAL In planning Product or Service Realization, the company determines the following requirements for the provided product or service: The need to establish processes, documents, and provide resources specific to the product or service; Required verification, validation, monitoring, inspection, and test activities specific to the product or service, and the criteria for product or service acceptance; and Records needed to provide evidence that the realization processes and resulting product or services meet requirements. 7.2 Customer-Related Processes Achieving our quality policy to meet or exceed customer requirements requires that we determine, understand, and consistently meet or exceed our customers requirements and expectations, and that we establish effective communication systems with our customers in regards to product information, inquiries, contract or order handling and related changes, and customer feedback, including complaints. Management has overall responsibility for developing and implementing effective customer-related processes in accordance with the policies in this section and throughout the Quality Management System. Project specific Project Quality Management Plans will be developed using the template found in Appendix I Determination of Requirements Related to the Product or Service Reference: Appendix J, PQMP 7.2 Requirements for most major customers are identified in contracts documented and reviewed annually. In other cases, a customer order constitutes a contract and we ensure that the customer s requirements are clearly identified and confirmed prior to acceptance. Our process for determining product related requirements, included Product requirements specified by the customer, including the requirements for availability, delivery and support for any after-sales product service and/or post-delivery servicing provided as part of the customer contract or purchase order. Product requirements not specified by the customer but necessary for intended or specified use and obligations related to the product including regulatory and legal requirements; this may include recycling, environmental impact, and characteristics identified as a result of Pronghorn Controls Ltd. knowledge of the product or service and related production processes. All applicable government, safety, and environmental regulations applied to the acquisition, storage, handling, recycling, elimination or disposal of materials. Any additional requirements such as company policies and guarantees. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 22 of 30

23 7.2.2 Review of Requirements Related to the Product or Service Prior to accepting a customer order or submitting a bid, a review of all pertinent customer documents, customer and regulatory requirements and the corporate bid checklist shall be completed and reviewed. All pertinent information shall be reviewed and considered, such as price, delivery time, and terms and conditions. The following items will be included in the review prior to acceptance or submission: Any discrepancies arising from the review shall be resolved with the customer, and The company s capability of meeting the defined requirements is established. Our process for reviewing all applicable requirements is defined to ensure: All applicable product requirements are defined, understood and confirmed with the customer prior to acceptance; Performance feasibility of proposed (new or changed) products is investigated, confirmed and documented prior to making a commitment to supply; Contract or order requirements differing from those previously expressed are resolved; Records of the review and actions resulting from the review are maintained and when orders are placed through verbal means, the customer requirements are confirmed in writing before acceptance of the order(s). When amendments to an order are made, the changes are recorded and the relevant documents are modified. The change is conveyed to the related department through revised documents or memos. Reference: Bid to Contract preparation procedure QMP Bid to Contract review checklist QMF Customer Communication Sales/Customer Service/Planning departments are responsible for handling communications with customers relating to inquiries for product or service information, order processing, order amendment, and customer feedback. Customers are provided information for the following key customer contact personnel: CEO Chief Executive Officer COO Chief Operating Officer CFO Chief Financial Officer Quality Manager District Manager Project Superintendent Project Coordinator Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 23 of 30

24 NCSO or Safety Officer Account Manager Reference: Customer Communication Procedure QMP Design and Development The company doesn t perform engineering or design, and takes exception of this clause. 7.4 Purchasing Purchasing Process The company buyers are responsible for selecting and purchasing from suppliers who are able to meet specified purchase requirements such as price, delivery, quality, etc. Vendors are evaluated using QMF Vendor Supplier Prequalification Questionnaire and controlled according to processes within the company Procurement Department. Field assessments are completed on potential suppliers and vendors based on risk, whether financial, schedule, quality, safety, etc. A list of approved vendors and suppliers will be updated and maintained by the Procurement Department. Reference: QMF Vendor Supplier Prequalification Questionnaire Purchasing Information Information needed to support the purchasing activities is captured in a Purchase Order and/or other records that specify the terms and conditions for the intended purchase. The company shall ensure the adequacy of specified purchase requirements prior to their communication to the supplier Verification of Purchased Product Upon delivery of products and/or services by the suppliers, designated business unit personnel are responsible to ascertain that received products/services are in accordance with specifications and established quality parameters. Where code or regulatory applications are present, the company shall document the inspection process necessary to ensure that purchased product meets specified customer and purchase requirements. Where the customer or company plan to complete verification inspection of purchased product at the supplier s premises, the company shall document the intended verification arrangements and method of product release in the purchasing information. Reference: Purchasing QMP Approved Vendor and Supplier Log QML 7.4 Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 24 of 30

25 7.5 Service Provision Control Service Provision QMS MANUAL We utilize a process-focused approach to plan and control operations and support services related to production and service provision. Our initial focus is to assure the quality of process inputs - that is, employees, material, facilities and equipment, and methods. Employees must be equipped to perform the process properly through appropriate education, experience, training, and certification. Material must meet specified requirements and be properly identified, stored, and issued. Equipment and facilities must be adequate, available and properly utilized. Work instructions and other important data must be current and correct, methods must be appropriate and proven capable of accomplishing the desired results. The appropriateness of all these fundamental process inputs must be assured, and processes must be measured, monitored and controlled to assure effectiveness and/or to identify opportunities for improvement. Project Manager/District Manager or Designate ensures that production/service jobs are planned, scheduled, and carried out in accordance with procedures as summarized below. a) Information The District Manager or Project Manager, through the Project Superintendent and/or the General Foreman, ensures that all appropriate information (including final product/service specifications, raw material characteristics and the required product parameters) is provided to production personnel throughout the product/service provision process. It is distributed through job schedules/plans, production team meetings, work instructions (located in areas where they are needed), and/or in job specific information included in individual job files (including control plans, where applicable). b) Work Instructions The necessity for and required detail of work instruction is dependent upon the knowledge, skills, and abilities of employees and the complexity of the work process they are assigned to perform. Site Managers, with input from other technical personnel, identify critical production/service work steps. c) Equipment Management ensures the suitability and availability of all equipment and tooling used for production and service operations. d) Monitoring and Measurement Devices The business unit leader ensures that monitoring and measurement devices capable of meeting measurement requirements are available for use during production and service provision. e) Monitoring Activities The District Manager or Project Manager, through the Project Superintendent, ensures that production personnel monitor the quality of their own work and understand the procedures for reporting related problems and/or suspected non-conforming conditions. f) Release, Delivery, and Post-Delivery Processes Release of product is dependent on its compliance with all specifications and its ability to meet customer requirements, as identified in the contract or order. The appropriate project manager ensures that records of product approval are maintained and clearly indicate the authorizing employee. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 25 of 30

26 The QMS Manager periodically reviews operational data as well as progress towards achievement of corporate level product/service performance objectives and provides related recommendations for review by Senior Management Validation of Service Provision Reference: Process and Control Procedure QMP The company validates any process for production and service provision where the resulting output cannot be verified by subsequent monitoring or measurement. This includes any processes where deficiencies become apparent only after the product or service has been delivered. Validation demonstrates the ability of these processes to achieve planned results. The process for validation is documented including: Defined criteria for review and approval of the processes; Approval of equipment and qualification of personnel; Use of specific methods and procedures; Requirements for records; Identification and Traceability Material and components, except for non-controlled parts and consumables not related to a provided product or service and not part of a quality requirement, shall be clearly identified with all pertinent traceability and property information. Traceability is required to ensure material or component properties, identification and unique traceable identifiers are always identifiable Customer Property Reference: Product Identification and Traceability Procedure QMP The company shall exercise care with customer property while it is under its control. The company will identify, verify, and protect customer property provided for use or incorporation into the product. If any customer property is lost, damaged, or otherwise found to be unsuitable for use, this information will be reported immediately to the customer and appropriate records maintained. Action will be taken to reduce further occurrences. Reference: Receiving Materials QMP Preservation of Product The company shall ensure that product conformity is maintained throughout the production process until the delivery to its intended destination is completed. Conformance maintenance shall include proper identification, handling, packaging, storage, and protection of the product and the constituent components against loss, damage, and deterioration. Proprietary Document Disclosure Restricted to Employees and Authorized Holders Page 26 of 30