MATERIAL HANDLING PROCEDURE SAMREF I / E WORKS

MATERIAL HANDILING PLAN / PROCEDURE FOR SAMREF I/E WORKS

(SAMREF Contract # 4600000786)

MATERIAL HANDLING PROCEDURE SAMREF I / E WORKS

0 REV.

13-Dec-09 DATE

1st issue DESCRIPTION

IMA PREPARED

IMA / MNK CHECKE D

ZH / MAS APPROVE D

INDEX

1. 2. 3. 4. 5. 6. 7. 8. 9.

SCOPE REFERENCE MATERIAL RECEIPT , INSPECTION & NCR IDENTIFICATION OF RECEIVED MATERIALS IDENTIFICATION OF INPROCESS MATERIALS MATERIAL ISSUE CONTROL OF MATERIALS DURING PROCESSING MATERIAL RETURN DOCUMENTATION

MATERIAL HANDLING PROCEDURE SAMREF I / E WORKS

This procedure describes the system of material control at all stages of its processing including procurement, receipt & return. 2.0 REFERENCE 2.1 2.2 2.3 2.4 2.5 3.0 ASME section I ASME section II part A&B ASME section VIII Div. 1& Div. 2 Olayan Descon QMS Manual Olayan Descon ASME QC Manual

MATERIAL RECEIPT , INSPECTION & NCR 3.1 3.2 On receipt of the material, stores section shall prepare the client material receiving report (CMRR). Stores section shall receive the material, place it in Receiving Inspection Area (as appropriate) & identify the material by writing work order ODICO & Client (SAMREF) Purchase Order and CMRR number on it with paint or attaching a tag. Storekeeper shall then verify the quantity on the basis of PURCHASE ORDER provided by Client (SAMREF), as the case may be & visually inspect it for physical damages, if any. Quantity variation & physical damages, if any, shall be notified to Client SAMREF (Material Coordinator) for further action. Stores shall prepare daily material receiving report (DMRR) for all purchased materials by OLAYAN & client material receiving report (CMRR) for client supplied materials & send copies to concerned units / departments including Material Coordinator (SAMREF) & QA/QC ( SAMREF / ODICO). On receipt of CMRR, concerned QA/QC engineer (SAMREF / ODICO) or his designee shall inspect the material for quality characteristics & required identification markings, & shall inspect the material for quality characteristics & required identification markings, & shall verify the material test certificates. The

3.3

3.4

MATERIAL HANDLING PROCEDURE SAMREF I / E WORKS

basis of such inspection shall be PURCHASE ORDER provided by SAMREF. QA/QC engineer / inspector (SAMREF / ODICO) shall note the findings (acceptance or otherwise) on CMRR & sign it. 3.5 Client material: Discrepancy noted shall be recorded on CMRR and the material shall be rejected. Client SAMREF (Material Coordinator) shall be informed of rejection through Olayan. Imported Material: For non-conformance NCR shall be raised and material shall be identified with HOLD tag and kept segregated, whenever possible NCR shall be disposed according to NCR procedure. 3.6 Any non-conformity noticed in client supplied free issue material shall be recorded on CMRR and notified to client SAMREF (Material Coordinator) through Material Controller of the Olayan. After material acceptance, Material controller Olayan & Material coordinator (SAMREF )shall approve the CMRR. In case, some deviation are notices &/or further clarifications are required from supplier / client, QA/QC ( SAMREF / ODICO ) shall hold the material identifying it with a HOLD tag. In case of minor clarification, lack of documentation or based on urgency, material may be release provisionally for execution, but in such cases, positive traceability shall be ensured in order to re-call the material in case of rejections.

3.7 3.8

4.0

INDENTIFICATION OF RECEIVED MATERIALS 4.1 The received material shall bear identification as required by the applicable material specification & / or Purchase Order provided by SAMREF which shall include the following in general: 1. Manufacturers name &/or symbol 2. Material specification 3. Grade / class of material 4. Heat or batch number (as applicable) Above identification markings shall be verified by QA/QC engineer / inspector (SAMREF / ODICO) during receiving inspection with reference to applicable Material Test Certificates (MTC). Material received at stores against work orders shall be identified by writing work order number ODICO / Client Contract Purchase Order Number. Applicable material identification tag shall be attached on the received materials.

4.2

5.0

INDENTIFICATION OF INPROCESS MATERIALS 5.1 Materials during processing shall be identified by original marking or code marking acceptable to Al.

MATERIAL HANDLING PROCEDURE SAMREF I / E WORKS

5.2 When an item is cut into pieces, following markings / designated code markings shall be transferred to each cut piece prior to separation: 1. Work Order number 2. Material specification & grade 3. Heat number Should original marking be obliterated by an operation, the marking shall be transferred prior to operation to a location where marking is clearly visible after operation has been completed. Where there is a large quantity of small pieces/ identical items involved, an alternate traceability method (like colour coding / tags etc.) approved by Manager QA/QC may be adopted.

5.3

5.4

6.0

MATERIAL ISSUE 6.1 Concerned Material Coordinator (SAMREF) & Material controller (Olayan) shall approve the CMIR (Client Material issue Requisition) for each work order of Olayan / Client Purchase Order in the prescribed format and handover the same to Project Manager / Area Engineer (Olayan). Area Engineer / Execution supervisor (Olayan) or his designee shall request the client free issue material form Olayan stores. Storekeeper shall issue the material based on requisition and update material stock status. Stores shall send one copy of CMIR to Material Coordinator (SAMREF) for booking the material against Olayan work order / Client Purchase Order. Material Coordinator (SAMREF) / Material controller (Olayan) shall book the material in work order on the basis of completed CMIR received from stores.

6.2

6.3 7.0

CONTROL OF MATERIAL DURING PROCESSING 7.1 The QA/QC engineer/ inspector (SAMREF / ODICO) shall check the identification of materials arriving at shop in order to ensure that only intended materials are used for the work order. The QA/QC engineer/ inspector (SAMREF / ODICO) shall keep record of material identification. When service conditions do not allow stamping or if so desired by the customer (such as stainless steel with thickness less than 6mm), markings shall be done with paint. For pressure vessels. Material identification records shall be maintained in the form of Material Summary Control Sheet.

7.2 7.3

8.0

MATERIAL RETURN 8.1 Useful leftover materials* shall be returned back to Client (SAMREF). Concerned Material controller shall prepare CMRN (Client Material Return Note) on

MATERIAL HANDLING PROCEDURE SAMREF I / E WORKS

prescribed format mentioning Olayan work order number / Client Purchase Order Number, material details, identification etc. & return the Free Issue Client Material to Client (SAMREF). *For the purpose of this procedure, useful leftover material is defined as below: 1. Cable 2. Instruments 3. Junction Boxs 4. Cable Glands & etc. 8.2 Material controller / storekeeper shall receive the material & CMRN, check the condition, identification, size & quantity of returned material at appropriate location in the witness of QA/QC engineer/ inspector (SAMREF / ODICO). Material controller / storekeeper shall prepare CMTN (client material transfer note) to transfer the material to Client SAMREF. A copy of CMRN shall be sent to Material Coordinator (SAMREF) & QA/QC engineer/ inspector (SAMREF / ODICO) for updating the records of material booking against Olayan work order / Client Purchase Order Number.

8.3 8.4

9.0

DOCUMENTATION 9.1 Material Summary & MTC records for the work order shall be maintained by concerned QA/QC engineer. When required by the contract, copies of such records shall be compiled as QC Dossier & submitted to Client. For ASME coded jobs, QC documents shall be presented to the ASME authorised inspector for his review.

9.2