SZHL

QUALITY
POLICY
MANUAL
Quality Policy
Manual
Revision H
This manual is approved for implementation in all Baker Hughes INTEQ locations. The quality
system described herein, when implemented, will provide a foundation for increasing the quality
and reliability of the products and services that we offer to our customers. It is up to each of us
to understand and follow these quality guidelines. Remember, Quality depends on you!
Ray Ballantyne
President of Baker Hughes INTEQ
Uncontrolled when printed.

SUBJECT: NO. QPM
TABLE OF CONTENTS
REV. H
QUALITY POLICY MANUAL (QPM)
PAGE 1 of 1
REV QCN AMENDMENT DETAIL APPRVL DATE
D 95-33 Update Sections 1-6, 9, 10, 14, 15, 17, 18, 20; Forms J. Busche 6-30-95
E 95-103 Update Sections 4, 5, and 14 J. Busche 8-31-95
F 97-004 Update Sections 1 and new cover signature K. Earle 5-8-97
G 98-001 Rewrite of QPM K. Earle 10-1-98
H 00-003 Update Policy Statement, Sections 1-2, 4-6, 9 and 12 K. Earle 8-23-00
SECTION REV DESCRIPTION
POLICY C Quality Policy Statement

QPM-1 G Management Responsibility
QPM-2 F Quality System
QPM-3 E Contract Review
QPM-4 G Design Control
QPM-5 G Document and Data Control
QPM-6 F Purchasing
QPM-7 C Control of Customer Supplied Product
QPM-8 D Product Identification And Traceability
QPM-9 F Process Control
QPM-10 E Inspection And Testing
QPM-11 D Control of Inspection, Measuring, And Test Equipment
QPM-12 F Inspection And Test Status
QPM-13 D Control Of Nonconforming Product
QPM-14 F Corrective and Preventive Action
QPM-15 E Handling, Storage, Packaging, Preservation And Delivery
QPM-16 E Control of Quality Records
QPM-17 E Internal Quality Audits
QPM-18 E Training
QPM-19 D Servicing
QPM-20 E Statistical Techniques
SUBJECT: NO. QPM-1
MANAGEMENT RESPONSIBILITY REV. G
PAGE 1 of 5
C 94-027 Update Sections 1.0, 1.5, 1.7, 1.8 and Figures J. Busche 10-27-94
D 95-54 Update organizational charts J. Busche 6-30-95
E 97-002 Update organizational charts K. Earle 5-9-97
F 98-001 Rewrite of QPM K. Earle 10-01-98
G 00-003 Revised Policy Statement, 2.0 K. Earle 8-23-00
1.0 BAKER HUGHES INTEQ QUALITY ASSURANCE SYSTEM
This Quality Policy Manual documents Baker Hughes INTEQ’s policy for quality and approach for
complying with internal, customer, agency, standard and specification defined quality requirements.
2.0 QUALITY POLICY STATEMENT
Through continuous improvement we will provide our customers reliable products and
services that meet their expectations.
NOTE: This Quality Policy Statement will be communicated to all Baker Hughes INTEQ
employees to ensure they understand and apply its principles.
3.0 RESPONSIBILITY AND AUTHORITY
Responsibilities and authorities for all personnel who manage, perform, operate and verify work
affecting quality are identified within job responsibility descriptions, organization charts and operating
procedures. Organizational freedom and authority is assured for persons managing, performing or
verifying work affecting quality to ensure control of all such activities and delivery of conforming
product.
President of Baker Hughes INTEQ:
A) Approves and supports the quality policy.
B) Champions quality issues in the quality steering committee.

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Director of Quality Assurance
A) Develops quality policy and quality assurance system procedures for the company,
ensures policies are well-defined and understood.
B) Provides guidance and support to local facilities in their implementation of quality

systems.
C) Directs quality assurance activities in the design, manufacture and procurement of

INTEQ products.
D) Reviews the status of quality at INTEQ with the leadership team and recommends
strategy and direction for the organization pertaining to quality issues.
Quality Councils:
A) The steering committee, consisting of the INTEQ leadership team, provides

leadership for total quality management and develops INTEQ’s vision, mission,
strategy and goals.
B) Coordinating committees develops objectives and provides goal leadership.
C) Local quality councils deploy goals and objectives assuring implementation of

continuous improvement practices.
Local facilities:
A) Establishes a documented local quality assurance system meeting local quality needs
and customer requirements in accordance with the overall INTEQ quality policy.
B) Local management appoints and supports local quality representatives.

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C) Conducts and documents local quality reviews
D) Communicates quality issues, trends and customer quality feedback to the Director of
Quality.
E) Documents field quality issues / failures using the First Alert system.
Local Quality Assurance Responsibility
A) Ensures that a local quality system is developed and implemented in compliance with
this Quality Policy Manual.
B) Represents customer quality needs/expectations within Baker Hughes INTEQ.
C) Creates local quality procedures and work instructions
Employee Responsibility
A) Understand the company Quality Policy.
B) Understand and follow department procedures and work instructions.
C) Support and participate in quality processes and goals.
D) Know that you are responsible for the quality of your own work.
4.0 VERIFICATION, RESOURCES AND PERSONNEL
Baker Hughes INTEQ provides adequate resources and training to personnel to ensure products
produced and services performed meet requirements at all stages of the production and service cycle.
Verification activities are undertaken to assure compliance with requirements, however, Baker Hughes
INTEQ’s philosophy is that Quality is designed and built in and can never be inspected into a product
or service.
Conformance to the Quality Assurance System is verified through systematic audits. Adherence to
policy and procedures are monitored with continual emphasis on permanent corrective action and long
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term improvements. Internal audits are carried out by personnel independent from the area or function
being audited.
5.0 MANAGEMENT REPRESENTATIVE
The responsibility for quality is shared by every employee. All employees are responsible for
conformance to and assessment of the requirements for the products and services that they procure,
produce, operate or manage. Each local Manager has the overall responsibility for assuring compliance
with the quality assurance system. Quality Assurance representatives, within each unit, will be
appointed to support the units in their quality efforts.
The representative for quality shall have the responsibility and authority to:
A) Initiate action to prevent nonconformity.

B) Identify and record product quality problems.
C) Initiate, recommend or provide solutions.
D) Verify implementation of solutions.
E) Control further processing/delivery of nonconforming product until
deficiency/unsatisfactory condition is corrected.
For facilities registered to an ISO 9000 standard, an ISO representative will be appointed which may or
may not be the quality representative. This representative must be a member of the local facility
management staff and has the responsibility for ensuring that the quality system is maintained. The
representative will report on the performance of the quality system to senior facility management and
participate in the management review.
6.0 MANAGEMENT REVIEW
Each facility is responsible for initiating and documenting a management review of the quality system,
at least annually. More frequent reviews each addressing only a single or just a few topics or issues
may incur instead of a single annual review as long as all pertinent issues are reviewed at least
annually. The local Quality Council may be used as a forum for these reviews. A copy of the review(s)
will be forwarded to the Director of Quality for Baker Hughes INTEQ. A company-wide review of the
quality system will be undertaken by the Director of Quality based upon facility review feedback. The
senior manager of the local facility should chair the meeting(s). Senior management, the quality
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manager/representative and the ISO representative (if applicable) should attend. The management
review should consider the following topics:
A) The performance of the quality system and status of local quality goals.
B) Suitability and effectiveness of the quality system with regard to the quality policy
and objectives for quality.
C) Information based on customer feedback.
D) The degree of implementation and effectiveness of the quality system as determined

by audits, corrective/preventive action summary, nonconformance trends, etc.
E) Effectiveness of the Quality Program with respect to the Quality System registration,
product certification, ISO 9000 and other applicable oil and gas industry standards
including changes to the standards.
F) Other topics as deemed necessary by local management, the quality representative, or

as required by contract or specification.
7.0 RECORDS
Management Review records shall be maintained.

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QUALITY PROGRAM REV. F
PAGE 1 of 5
B 94-002 Update Sections 1.0, 1.1, 1.6; Renumber Sections J. Busche 1-10-94
C 94-028 Update Sections 1.0, 1.1, 1.2, 1.6, Figs 1 & 2; Add 1.7 J. Busche 10-27-94
D 95-55 Update Sections 1.0, 1.1, 1.2, 1.3, 1.4 & Fig. 1; Delete Sec. 1.5-1.7 J. Busche 6-30-95
E 98-001 Rewrite of QPM K. Earle 10-01-98
f 00-003 Update Sections 1.0 & 1.5 K. Earle 8-23-00
1.0 SCOPE
The Baker Hughes INTEQ Quality Assurance System is based on the requirements of ISO 9001, ISO
9002 and API Q1. This Quality Policy Manual applies to all INTEQ locations and describes the
company philosophy and approach to ensuring an effective quality system and compliance to
requirements. Definitions used in this manual are consistent with ISO 8402 and API Q1 6th Edition.
Locally developed Quality Assurance Manuals and other referenced company standards and
procedures, including local work instructions, provide the necessary control and detail to ensure that
the quality system is implemented completely.
1.1 QUALITY SYSTEM
The main functions of the Quality Assurance System are to:
A) Provide a documented and uniform system incorporating specific controls and

methods to assure that quality requirements are achieved and maintained during
design, procurement, manufacturing, testing, inspection and delivery.
B) Effectively implement a documented quality system throughout the company.
C) Assure that appropriate working documents of the proper revision are used.
D) Provide the purchaser with confidence that products meet prescribed design and
quality requirements.
E) Institute, for the training of personnel, standard methods that will ensure quality
performance.
Be sure this is the latest revision of this document!

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F) Establish quality interface control between Engineering, Manufacturing Engineering,

Software, Procurement, Manufacturing, Re-manufacturing, Operations and all other
departments.
G) Ensure that all functions affecting quality maintain documented historical records of
quality actions.
H) Report quality system status to appropriate levels of management on a continuing

basis and provide information on a day-to-day basis to management and employees
for awareness of quality problems or deficiencies, as they occur.
I) Assure that adequate preventive and corrective actions are instituted for quality
deficiencies.
J) Ensure that Quality Assurance Manuals are adequately created and followed.
(Guidance in writing Quality Manuals and Procedures will be provided by
Headquarters Quality Department.)
K) Provide a common language for quality assurance activities.
1.2 THE DOCUMENTED QUALITY SYSTEM
The Quality Policy Manual provides the basis for the Quality System. This manual was designed to
provide uniformity throughout Baker Hughes INTEQ worldwide. However, a locally developed
Quality Assurance Manual as well as additional procedures will be required to complete the
documented quality system. The Documentation Structure and hierarchy is shown in Figure 1. Each
facility/region will develop a Quality Assurance Manual that describes how the requirements of the
Quality System will be met and contains or references all applicable documents, procedures or manuals
used in that location. Additional department manuals may be developed for larger facilities or, for
smaller locations, procedures may be contained in a single local facility manual without the need for
other department manuals. A Quality Assurance Manual may be written for, and utilized, by more than
one facility. A translated version of this Quality Policy manual, procedures or forms is acceptable for
use in non-English speaking locations.
The revision level of the table of contents will be the top level revision of the manual and will show the
revision status of each section.

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Changes made to the Quality Assurance System that affect API Q1 requirements will be reviewed and
approved by API before implementation.
1.3 ELECTRONIC DOCUMENTATION
Key individuals may be issued a Quality Policy Manual or will have electronic access. All employees
will have read only access to this manual electronically. When issued in paper form, this Quality
Policy Manual will be serialized and issued under strict control and will be updated whenever the
manual is revised. The latest electronic version will be available on the Intranet “Insource” in the
Quality Assurance web page. This site is accessible to all employees. This policy manual may be
printed from that site, if needed, and may be distributed to customers but those copies will not be
considered controlled and will not be serialized.
1.4. INSOURCE
Baker Hughes INTEQ maintains an electronic document system using intranet technology. This system
is called Insource and is accessible by all INTEQ employees. The Quality Department maintains an
Insource web page where this manual as well as other required or supporting documentation can be
accessed. Additionally, general reference material is located there. Documents accessed through
Insource can be assumed to by the latest version (for those documents with revision controls.) All
internal documents referenced in this Quality Policy Manual can be accessed from this site. External
documents will be listed showing latest revisions but it will be up to each facility to obtain copies of the
external documents used locally.
1.5 QUALITY PLANNING
Quality planning is necessary to understand current requirements and performance, changes that are
needed to meet new requirements or improve performance and to set quality goals that meet customer
and internal needs. When planning for quality, consideration of the following topics are necessary:
A. What the customer requirements are.
B. Review of existing quality goals and setting of new goals and objectives.
C. Compatibility of product designs, manufacturing, inspection or operations processes with

customer or internal requirements.

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D. How the existing system is, or is not, sufficient.
E. What additional processes, procedures or techniques are required.
F. What additional equipment, services or skills are needed.
G. Lead times in development procedures or acquisition of skills, services or equipment.
H. What verification/validation is required.
I. What reference standards/acceptance criteria are necessary.
J. Understanding and clarification of standards and requirements.
K. Whether specific quality plans are required.
L. What Quality Records that will be required.
M. Identification of measurement requirements and development of needed capability.
1.6. QUALITY PLANS
Normally, the quality system and referenced procedures function as a general quality plan, however,
when specific contracts require a specific quality plan, or when the existing system will not meet
specific contract requirements, one will be developed and contain or reference existing or new
procedures necessary to fulfill contract requirements.

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BAKER HUGHES INTEQ QUALITY ASSURANCE SYSTEM
Quality Policy Manual

• Company wide quality policy and requirements
• Quality Policy Statement
Quality Assurance Manual

• Developed locally
• References company standard policy, guidelines,
procedures and specifications
• Contains or references local procedures and work
instructions
• May be supported by department manuals
Records
• Both electronic and paper files
• Retained locally
Figure 1

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CONTRACT REVIEW REV. E
PAGE 1 of 3
B 94-003 Delete Appendix A; Update Sections 4.1.2, 4.3.1 J. Busche 1-10-94
C 94-029 Delete 3.2; Update Sections 3.0, 4.0 J. Busche 10-27-94
D 95-56 Update Sections 4.2.1A, D, E, F; and 4.5.1 J. Busche 6-30-95
1.0 POLICY
Baker Hughes INTEQ has a systematic process for reviewing and controlling contracts to assure understanding
and agreement of all requirements for external customer contracts or internal inter-facility orders.
2.0 REFERENCES
2.1. n/a
3.0 REQUIREMENTS
3.1. Local documented procedures will describe the contract review process.
3.2. Contract Administration
3.2.1. Customer, whether internal or external, is defined as one that an agreement for a product or
service is made. This can be an external paying customer or one INTEQ facility placing an
order to another facility. Agreements may be made with a contract, purchase order, other
material request or verbally.
3.2.2. Each Baker Hughes INTEQ facility/office/department receiving a new customer

contract/order, or request for a change relating to an active contract/order will ensure that a
formal system is in place for the administration of contract review activities.
3.2.3. The function of contract administration will be defined and suitably fulfilled within the local
organisation.
3.2.4. Baker Hughes INTEQ Operations facilities are the focal point for external customer contact.
They are responsible for reviewing customer contract requirements and, if necessary, routing

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the customers documented technical, quality, safety, legal, or other specifications to the
appropriate company departments for review and action.
3.2.5. It is the responsibility of the Operations facilities to ensure that all internal Orders for the
manufacture or production of equipment and materials required are communicated in the
appropriate manner and submitted to the internal company department with responsibility for
supporting the referenced product. Internal orders effectively form a contract of work, and
will be formally controlled until the order has been fulfilled. In addition to the order
document, each party is responsible for maintaining adequate records of appropriate contract
related communications
3.2.6. General inquiries on products or services available, or inquiries relating to existing order
status from INTEQ, are not considered to be a customer inquiry that is required to be
documented or subject to contract review unless it results in the placement of a new order or
changes to existing orders.
3.3. Contract Review
3.3.1. All facilities that receive formal tenders for the provision of products or services, or internal
orders, will perform and adequately record a contract review activity upon receipt of a
contract or other formal product/services request. The management appointed contract
administration function is the co-ordinating focal point for all contract review activity. The
contract review process will, as a minimum, address the following:
A) Dated receipt of Customer order.
B) Acknowledgement of formal customer inquiry receipt and communication of
Baker Hughes INTEQ intentions for dealing with the order.
C) Review to ensure the scope of work is known and understood and to ensure all
contract requirements are clearly specified and are understood by BHI.
D) Review to ensure BHI has capability to meet contractual requirements in all
areas.
E) Review to ensure any differences between contract documentation and tender or
other previously agreed work definition are identified and resolved.

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F) Routing of applicable contract documentation to relevant BHI departments in a
timely manner for review or action as appropriate.
G) Review of API, or other certifying agency, product orders to ensure customer
requirements are within the scope of the API, or other, specification.
H) Identification of special contract requirements requiring a special quality plan.
I) Notification to the customer of any contract conditions which are not able to be
met by BHI in order that these elements may be re-negotiated to the satisfaction
of both parties.
J) Demonstration of acceptance of contract shall be performed by an authorised
individual.
3.4. Amendments to Contract
3.3.1. Revisions or Changes to Contracts will be processed and reviewed in the same manner as new
contracts. Acceptance of changes to a contract will be agreed to only by authorised
individuals.
3.3.2. Revisions or changes to contracts, once accepted will be circulated to all relevant
functions/departments in order to supersede existing information
3.3.3. An indication of contract change, or revision, will be clearly identified on any documentation
or within data systems.
4.0 RECORDS
4.1. Records of contracts and contract review will be kept.

SUBJECT: NO. QPM-4
DESIGN CONTROL REV. G
PAGE 1 of 5
C 94-030 Update Sections 2.0, 4.0; Add Sections 4.11, 4.22 J. Busche 10-27-94
D 95-57 Change Section 2.3 to 2.4; add new Section 2.3; Change Section J. Busche 6-30-95
4.22 to 4.23; Add new 4.22; Change 4.22.1 to 4.23.1; Update 3.1,
4.23 & 5.1
E 95-103 Update Section 4.19 J. Busche 8-31-95
G 00-003 Update 3.7 K. Earle 8-23-00
1.0 POLICY
The Baker Hughes INTEQ design functions provide for the transition of customer and internal
requirements into technical specifications, drawings, wellplans, operating procedures, products and
services.
2.0 REFERENCES
2.1. CPD Manual (750-500-016)
2.2. Integrated Drilling Design Process Manual (750-500-078)
3.0 REQUIREMENTS
3.1. Design control shall be performed according to a defined process using documented
procedures to assure document/design accuracy and verification of conformance to
appropriate standards and/or customer requirements. Design requirements that are ambiguous,
incomplete, or in conflict with specifications will be resolved before continuing with design
activities.
3.2. Well planning or integrated drilling design planning will follow a similar process using
applicable elements of this section. Procedures will be developed which meet the necessary
criteria as described in this document.
3.3. Design and development plans will be developed describing activities and responsibilities.
Plans will be updated as the design evolves.
Be sure this is the latest revision of this document

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3.4. Design and design verification activities shall be planned and assigned to qualified individuals
with adequate resources.
3.5. The organizational and technical interfaces will be defined so as to involve affected
departments within Baker Hughes INTEQ. Other organizational functions that input to the
design process will have access to necessary technical documentation for regular review and
will be included in the design process. Input from other department will be reviewed for
incorporation into the design.
3.6. It is the responsibility of the Engineering function (Design Engineer, Drilling Coordinator,
etc.) to use appropriate design standards and to adequately check the design outputs for errors
and compliance with standards and requirements. Engineering is responsible for controlling all
documentation according to detailed written procedures. Interfaces between functions
involving necessary input to the designs are documented to ensure information is transferred
and updated regularly.
3.7. A design file will be created as the design progresses and will be maintained and controlled.
This file will contain supporting documentation and include methods, assumptions,
formulations, calculations, test results, etc as well as design output documents. The contents
of the file will be readily accessible. The designated group responsible for keeping the
products updated and functional after release will have access to the original design file or
data.
3.8. Engineering shall maintain and control all information used to support each design such as
calculation worksheets, reliability analysis, etc. These shall be made available as appropriate
to those performing check functions or design review. API and other certified products require
a review of the design by someone other than the individual responsible for the design.
3.9. Design reviews will be planned and conducted at appropriate stages of design. Participants
will include representatives from all functions concerned with the design stage being reviewed
as well as other specialist personnel as necessary. These formal reviews will be documented
and records of the reviews will be maintained.
3.10. Design input requirements shall be identified, defined and documented. They will be reviewed
for adequacy and, as a minimum, the design input will include the following:

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A) A documented product concept, functional requirements or well path

objectives.
B) Management acceptance.
C) Identification of statutory, regulatory, legal or certification requirements.
D) Applicable contract review results and customer requirements.
3.11. The design output will meet the following minimum design requirements:
A) The design output must be documented.
B) The output must be able to be verified against input requirements.
C) The output must meet all specified final input requirements.
D) Acceptance requirements must be stated.
E) Design characteristics crucial to safe, proper functioning must be specified.
F) The design, and documents, must be reviewed and approved before release.
3.12. Design verification will be performed at appropriate defined stages to ensure input
requirements are being met. The measures and results will be documented. The following are
activities to be considered for design verification:
A) Performing alternative calculations.
B) Comparison of new design with similar proven design.
C) Review of drawings and documentation.
D) Conducting product or component tests and/or software modeling.
3.13. Design Validation will be planned and conducted to ensure that product conforms to
requirements. Considerations for validation are:
A) Successful design verification has been undertaken prior to validation.

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B) Validation is normally performed under defined operating conditions.
C) Validation, usually performed on final product, may be performed earlier on sub-

components.
D) Multiple validations may be necessary for different intended uses or operating

environments.
E) Validation of specific statutory, regulatory, legal or certification requirements

may be necessary
F) Validation of safety protection mechanisms may be necessary.
G) A documented field test validation program may be necessary.
3.14. After release, design document changes/modifications shall be accomplished using the same
control features as the original design and design documentation. This includes, but is not
limited to, critique of changes using the original design documents, calculations, etc., where
applicable; assessment of verification and testing requirements; evaluation of proposed design
changes with regard to requirements from regulatory bodies; and obtaining of required
approvals. Specific identified individuals may be required to review and approve changes to
certified products.
3.15. It is the responsibility of the Manufacturing function to review all product drawings for
manufacturing compatibility. Manufacturing may make changes to drawings that improve the
manufacturability of parts without affecting the performance, form, fit, function, or
interchangeability of that part. Any changes that alter Bills of Material, or dimensions, must
be made following the appropriate Baker Hughes INTEQ design control procedure.
4.0 RECORDS
The design file will be maintained.

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DOCUMENT AND DATA CONTROL REV. G
PAGE 1 of 4
C 94-031 Update Sections 2.2, 3.0, 4.1, 2.7; add 4.1.5, 4.1.6 J. Busche 10-27-94
D 95-58 Update Section 4.1.1, 4.1.2, 4.13, 4.13D, 4.14, & 4.2.1 J. Busche 6-30-95
E 95-104 Add Section 4.3.3.2 J. Busche 8-31-95
G 00-003 Update 3.8.3 K. Earle 8-23-00
1.0 POLICY
Baker Hughes INTEQ ensures control over all documents and data used to support the design,
development, production, acceptance, and installation of company products and services.
2.0 REFERENCES
2.1. Baker Hughes Incorporated records retention policy and plan.
2.2. Baker Hughes INTEQ Electronic Communications Policy.
2.3. QPM-16 Control of Quality Records
3.0 REQUIREMENTS
3.1. General
Appropriate procedures will be developed to ensure control of product and service related
documents and data. This may include but not be limited to:
A) Industry Standards/Customer specifications/ Contractual documents

B) Engineering design documentation including wellplans
C) Quality system documentation and data
D) Work instructions
E) Training and job functions
F) Purchasing documents
G) Departmental procedures
H) Process Control documents and Bills of Material

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I) Drawing Change Notices

J) Audit documentation
K) Product Service instructions
L) Software
M) Data files
3.2. Documents/data referenced in this Baker Hughes INTEQ policy may be those which are
physically present in paper format or alternatively they may be held in an appropriate
electronic media, eg CAD drawing files, InSource, etc.
3.3. Intranet documents/data (InSource)
3.3.1. Any document requiring control which is posted on the Intranet will have evidence of
review and authorisation/approval clearly identified. The function or department
identified as the owner will be responsible for ensuring its documents are maintained
on the Intranet at the current revision status, and that changes are posted in a timely
manner.
3.3.2. All users of Intranet documents/data have responsibility for ensuring documents used
are at the latest revision when using documents printed from an Intranet source. If a
printed copy is necessary, the document should be destroyed as soon as practical
after use, or alternatively clearly identified as an uncontrolled source of data.
3.3.3. Local facilities and departments may reference the Intranet data as a controlled
source. If further control and distribution of the data is required at the local level, this
must be defined in local quality management system procedures
3.4. Document Approval and Issue
3.4.1. All documents and data used as part of the design, development, production,
acceptance, installation and servicing of Baker Hughes INTEQ product will show
evidence of review and approval by authorized personnel. Documents will be
approved, issued and controlled by an identified department or function. This is
applicable regardless of the method used for distribution or control of the documents.

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Appropriate revisions of documents will be available at activity locations or

accessible to those needing the documentation.
3.4.2. Departments which create documents/data requiring control will ensure the
distribution of those documents is to appropriate identified functions. Those
functions identified as recipients of this controlled data are responsible for the further
distribution of the information they receive.
3.5. Each facility/location will define its document control system. The definition will include as a
minimum, the persons responsible for administering document control, including provision for
original and changed document review, approval and control, and reference to its local
document numbering scheme(s). This definition will also cover the control of industry
standards, government regulations, and other outside source documents required in the
processing of products or services.
3.6. A master list of all relevant controlled documents/data showing current revision status shall be
available and readily retrievable in each location. Insource document listings may be
referenced as a master list.
3.7. When documents are updated, older revisions that are still active shall be retained for
historical purposes but suitably identified as an earlier revision. A local documented system
shall assure that the correct revision is issued. Previous revisions of documents that are not
active are deemed obsolete. These documents must be marked and removed from point of
issue or use but may be retained for legal and/or knowledge preservation purposes in a
suitably identified archive file. Obsolete documents may be quality records and must be
retained in accordance with the records retention policy.
3.8. Document and Data Changes and Modifications
3.8.1. Any person who uses or is affected by the content of an internal document can
request changes to that document. Requests for change will be documented using the
locally defined methods. Changes to the Baker Hughes INTEQ Quality Policy will be
approved by the President of the company

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3.8.2. Document changes must be reviewed and approved before implementation by the
same functions that performed the original review and approval. Where this is not
possible, review and approval will be performed by an alternative defined function
with a demonstrated equivalent or appropriate level of knowledge/experience and
access to appropriate information.
3.8.3. When practical, changes to controlled documents will be identified. Document

changes are to be identified within the document or appropriate attachments.
3.8.4. Documentation approved by a product or system accreditation agency will not be

changed, except as allowed by the scope and remit of the product/type/system
approval. Where change is permitted, review and approval will be either as directed
by the approval requirements or in accordance with the Baker Hughes INTEQ
formally defined process.
3.9. Specification Review
3.9.1. A review of applicable outside published standards/specifications used internally

will occur to identify changes needed to Baker Hughes INTEQ designs, processes or
procedures, in order to meet new requirements.
3.9.2. A list of (as well as editions of, if required) each governing standard, specification
and internal document in its current revision will be maintained.
3.9.3. InSource may be referenced as a source of documents. The users of InSource do not
have to undertake a review to determine correct or latest revision. Master lists of
either internal or external documents on InSource can be used as evidence of latest
revisions of those documents.
4.0 RECORDS
4.1. Records will be maintained in accordance with QPM-16 and the Baker Hughes Record
Retention Policy.

SUBJECT: NO. QPM-6
PURCHASING REV. F
PAGE 1 of 7
B 94-006 Update Sections 4.1.2, 4.1.3, 4.3.10, 4.6.1 J. Busche 1-10-94
C 94-032 Update Sections 1.0, 2.3, 4.0, 5.2 J. Busche 10-27-94
D 95-59 Update Sections 4.1.1-4.1.5, 4.3.10, 4.6.1-4.6.4, 5.2; Del.Sec.4.7 J. Busche 6-30-95
F 00-003 Update 3.2.7, and L, M, N and O K. Earle 8-23-00
1.0 POLICY
Suppliers and subcontractors for the purchase of all materials, parts, software, and services used in
Baker Hughes INTEQ products and services, including items/services obtained through either purchase
orders or contracts, are evaluated for their ability to meet requirements and are approved if found
acceptable. Contracts and purchase documents are reviewed and approved to assure adequacy.
Suppliers are monitored and performance verified for acceptability in meeting requirements.
2.0 REFERENCES
2.1. n/a
3.0 REQUIREMENTS
3.1. Local documented procedures will describe the purchasing process. Authority for supplier
approval, purchasing approval, purchase order release or contract approval will be defined.
3.2. Approved Suppliers
3.2.1. Each location will determine a supplier’s capability and acceptability, and identify
approved suppliers. The method of assessing supplier acceptability must be
documented and maintained.
3.2.2. Suppliers that are not approved will not be allowed to supply products, parts,
materials, or services to Baker Hughes INTEQ except for suppliers supplying certain,
locally defined, noncritical support items.

SUBJECT: NO. QPM-6
PURCHASING REV. F
PAGE 2 of 7
3.2.3. Approved suppliers will be considered as to the type, or range, of products or

services they provide.
3.2.4. Wellbore services subcontractors or suppliers providing products and/or services,

where Baker Hughes INTEQ acts as a general contractor, must be approved and be
evaluated for their ability to meet contract requirements prior to their selection.
3.2.5. Subcontractors for products, services or activities that are components of, or affect,
the quality of Baker Hughes INTEQ products and services will be evaluated,
approved and monitored. Verification of subcontractors performance will be done to
the extent necessary to assure requirements are met.
3.2.6. Approved supplier records will be maintained, which may include general
information about the supplier as well as performance data, self-surveys, and audit
results to determine the continuing acceptability of their quality program.
3.2.7. Suppliers will be evaluated at least annually for continued approval. The extent of
the evaluation will depend on the criticality of the items supplied. The following
items should be appropriately considered when reviewing suppliers:
A) Performance of suppliers in meeting requirements
B) Prior recent Receiving History (acceptance rating based on

receiving records and other valid criteria).
C) Supplier Audit/Survey results.
D) Ability to meet Baker Hughes INTEQ internal requirements.
E) Ability to meet our customer requirements as flowed down to our

subcontractors.
F) Review of their Product Qualification Test results.
G) Current valid registration to an ISO 9000 standard by an accredited

agency.

SUBJECT: NO. QPM-6
PURCHASING REV. F
PAGE 3 of 7
H) Their qualified use of the API monogram or license requirements

for products supplied to Baker Hughes INTEQ.
I) Other recognized approval status (i.e., CSA, API, VAM, EECS,

etc.).
J) Ability to provide product to catalog or commercial specifications.
K) Any other factors determined to be relevant or important.
L) Manufacturer inspection at sub-facility
M) Manufacturer inspection upon delivery
N) Surveillance of subcontractor
O) Conformance to API 6th Edition Spec.
3.3. Supplier Audits
3.3.1. Suppliers being considered for approval may be subject to an on-site quality audit
prior to placement of an order.
3.3.2. Supplier audits/re-audits may be conducted when any of the following conditions
exist:
A) New requirements are added to the procurement specifications
B) Supplier organizational changes (relocation or sale of the facility,

new management, or a reduction in the QC staff, etc.)
C) A new supplier -- when no goods/services have been previously

procured
D) Product, service or safety quality is in question
E) More than a year has passed since the last procurement

SUBJECT: NO. QPM-6
PURCHASING REV. F
PAGE 4 of 7
3.3.3. The responsibility and process for disqualifying a supplier will be defined to ensure
removal from consideration as an approved supplier. An agreed plan of action with
objective evidence of improvement will be developed locally to form the basis for re-
approval.
3.4. Preparation of Purchase Orders
3.4.1. The purchase order shall contain sufficient information to ensure that all
requirements are clearly defined and understandable. It is the purchaser’s
responsibility to define and supply all necessary information to the supplier. All
purchases shall be reviewed and approved. Purchase approval authority will be
defined. Purchase documents will be reviewed and approved.
3.4.2. When an Engineering Change Notice (ECN), Technical Alert, First Alert resolution,
Corrective Action resolution, or other direction for changes to products or services
are issued, pending purchases, open orders, contracts, etc. will be reviewed to
determine impact of the changes on work in process.
3.4.3. Purchase orders may be required to be presented to Quality Assurance for review
prior to placing the order, depending on the facility and any specific customer
requirements.
3.4.4. Purchase order notes must be consistent with the type of material procured, the
supplier being used, and the requirements of the engineering specification. The
notes, such as purchase order, quality and legal requirements, will be included in the
body of the purchase order, attached along with the purchase order and/or on the
receiving form, or be referenced and sent as a separate controlled document. Quality
clauses that are applicable will be included with purchase orders.
3.4.5. Each purchase order shall contain a clear description of material and services
ordered, including, as applicable:
A) The type, class, style, grade or other precise identification of goods

purchased. (Example: part number, revisions, material grades, etc.)

SUBJECT: NO. QPM-6
PURCHASING REV. F
PAGE 5 of 7
B) The title or other positive identification and applicable issue or

revision of specifications, drawings, process requirements, quality
instructions and/or other relevant technical data.
C) A detailed description of all items procured and any documentation

required. (Material certifications, analysis, traceability, MSDS,
etc.)
D) Requirements for preservation, packaging, special handling, shelf

life, cleaning, storage and shipping instructions.
E) A statement that Baker Hughes INTEQ must be notified and

approve any changes to the purchased items prior to shipment.
F) Applicable inspection and testing requirements and quality or legal

clauses.
G) Right to access statement including verification activity performed

at the supplier facility.
H) Acceptance criteria.
3.5. The purchase order shall indicate the location from which the order is placed and should
indicate the individual procuring the parts and/or material. Identification codes may be used
for this purpose. The purchase documents must indicate the individual approving the purchase.
3.6. When changes or revisions to an approved purchase order are required, a description of the
changes, approval, and date or revision will be indicated on the purchase order. The changes
will be reviewed and approved in the same manner as the original purchase order.
3.7. Verification of Purchased Product
3.7.1. Baker Hughes INTEQ, or our customers, reserve the right to audit and have access to
verify that contract requirements, purchase order requirements, and quality
requirements, are being met by suppliers, subcontractors or internal manufacturing
locations. When verification is planned to happen at the supplier’s location, it will be

SUBJECT: NO. QPM-6
PURCHASING REV. F
PAGE 6 of 7
specified on the purchasing document or contract along with any arrangements

necessary to perform the verification. If necessary, product acceptance, release or
delivery in conjunction with site verification will be specified. Such verifications
shall not absolve the supplier of the responsibility to provide acceptable product, nor
shall it preclude subsequent rejection.
3.8. Dock-to-Stock Program
3.8.1. Suppliers that show a history of proven exceptional quality performance may be
considered for locally defined Dock-To-Stock (DTS) programs. The approval is
supplier and product-specific. The methods used to select, monitor and administer
dock to stock programs will be defined in local procedures but must take into
account the following:
A) Suppliers must have a strong documented and auditable

performance history.
B) Supplier must have completed a supplier questionnaire or have

been audited and must have been reviewed and approved.
C) The risk to Baker Hughes INTEQ from the reduced inspection

levels has been evaluated as acceptable.
3.9. DTS vendors will be monitored by a defined method which could include the following :
A) Inspection of a defined number of lots per time period.
B) The supplier maintaining a current ISO 9000 series or other

recognized Certification.
C) On-site audits.
D) Periodic source inspection.
3.10. If any DTS Supplier drops below a defined acceptance level on any of the periodic
evaluations, or if for any other reason, the quality level becomes suspect, a review of the

SUBJECT: NO. QPM-6
PURCHASING REV. F
PAGE 7 of 7
suppliers’s quality system will occur. If problems are confirmed, the supplier will be removed
from DTS status. Corrective action will be required to return suppliers’s performance to
acceptable levels and reinstate DTS status.
4.0 RECORDS
4.1. Purchase order documentation, approved supplier records, and supplier evaluation files will be
maintained.

SUBJECT: NO. QPM-7
CONTROL OF REV. C
CUSTOMER SUPPLIED PRODUCT
PAGE 1 of 2
A 93-001 Initial Release J. Busche 1-10-94
B 94033 Update Sections 1.0, 2.0, 4.0 J. Busche 10-27-94
C 98-001 Rewrite of QPM K. Earle 10-1-98
1.0 POLICY
Baker Hughes INTEQ maintains control over all customer supplied or owned material, data, software
and products to ensure they are properly identified and tracked to maintain status control. Purchaser
supplied material and products which are damaged, lost or found to be unsuitable for use, will be
reported to the customer.
2.0 REFERENCES
2.1. n/a
3.0 REQUIREMENTS
3.1. Procedures will be developed locally describing the process for control of customer supplied
product. For facilities that have no such product and do not expect to have any, procedures
do not have to be developed until such product is received.
3.2. Upon receipt, customer furnished items shall be checked for damage or integrity. Materials
received shall be checked for proper documentation, matching serial numbers, or other
identification and quantity.
3.3. All customer supplied material and product shall have controls for verification, storage,
maintenance, processing, and positive identification. Handling, storage, packaging,
preservation and delivery shall be addressed.
3.4. When it is not possible to keep materials physically separated, a system of internal tracking
and marking will be utilized within each facility to ensure identifiable segregation from

SUBJECT: NO. QPM-7
CONTROL OF REV. C
CUSTOMER SUPPLIED PRODUCT
PAGE 2 of 2
other materials. Controls will prevent purchaser supplied materials from being mixed with
company owned materials, and thereby lost.
3.5. Where applicable, additional purchaser contract specifications will be complied with.
3.6. Responsibility for all communication concerning customer supplied products will be
established. Information concerning customer supplied materials and products which are lost
in transit, lost while in Baker Hughes INTEQ's custody, received with shipping damages or
found to be unsuitable for repair and continued use (whether at receipt or during any process
while in the custody of Baker Hughes INTEQ) will be communicated to the customer for
resolution.
3.7. Customer owned data, records, welllogs, wellplans, etc. created by Baker Hughes INTEQ as
required by contract for delivery to the customer will be considered customer owned material
and will be handled in accordance with this policy and local procedures. Customer data,
retained by Baker Hughes INTEQ, will be appropriately controlled for the duration stipulated
in a contract. Disposition will occur as defined. When not defined, the customer will be
contacted for resolution.
4.0 RECORDS
4.1. Records of customer owned / supplied material or data will be maintained.

SUBJECT: NO. QPM-8
PRODUCT IDENTIFICATION AND TRACEABILITY REV. D
PAGE 1 of 2
B 94-007 Add Section 4.3.2.1 J. Busche 1-10-94
C 94-034 Delete 3.1, 3.2; Update Section 4.0 J. Busche 10-27-94
D 98-001 Rewrite of QPM K. Earle 10-01-98
1.0 POLICY
Baker Hughes INTEQ maintains identification of materials and products during all stages of
manufacture, processing, delivery and installation. Material traceability is maintained as required by
customer contract or product specifications.
2.0 REFERENCES
2.1. n/a
3.0 REQUIREMENTS
3.1. Local systems and processes will be developed, and defined in procedures, describing how
product identification and traceability is maintained locally during all stages of processing,
delivery, installation and use, to assure compliance with contract requirements, industry,
product or Baker Hughes INTEQ specifications.
3.2. In order to ensure that only conforming products are used, all products and raw materials
used in the creation or processing of Baker Hughes INTEQ product shall be positively
identified through a defined method during all stages of production or storage. Materials
requiring traceability shall be uniquely identified and traceable to the lot/batch/serial number
from receipt, throughout all processing steps, to delivery.
3.3. The identification markings shall not result in any harmful contamination or sharp
discontinuities. (Low stress stamps if metal stamping is utilized). Identification markings
shall in all cases be legible.

SUBJECT: NO. QPM-8
PRODUCT IDENTIFICATION AND TRACEABILITY REV. D
PAGE 2 of 2
3.4. Shelf-life material shall not generally be considered to be traceable material, but shall be
marked and controlled with the internal expiration date, and monitored until consumed or
disposed.
3.5. When material is purchased from suppliers, identification and traceability requirements will
be documented on Purchase Orders to provide suppliers with clear specifications, and to
ensure, parts/materials are identified. Material certifications, if required, special packaging
or handling requirements, etc. will be listed on the purchase order.
3.6. Each receiving location will verify incoming product from suppliers. Verification may
include review of chemical and physical certifications, inspection to applicable drawings, or
special inspections and tests. When material traceability is specified on the Purchase Order,
it must verified that the material has accompanying certificates and the material is properly
identified to assure traceability from the material to the certification documents.
3.7. Drop-shipped material will be verified by the organization receiving the material
3.8. When traceability of material is required for an order, traceability information, numbers, etc.
will be noted the work order. Traceability numbers will be maintained on the material
throughout the production process. If the number is removed during processing, it is the
operator's responsibility to remark the traceability number on the material/parts when the
process is completed.
3.9. Upon completion of manufacturing, traceability number(s) will be marked in the appropriate
location if required.
3.10. API monogrammed or other certified products will be identified in accordance with
specifications. Identification and traceability of these products or sub-components will be
described in local procedures.
3.11. Requirements for country of origin marking will be contained in local procedures.
4.0 RECORDS
4.1. Records of traceable materials and products will be maintained.

SUBJECT: NO. QPM-9
PROCESS CONTROL REV. F
PAGE 1 of 3
B 94-008 Update Sections 4.1.2, 4.1.3. 4.3.1 J. Busche 1-10-94
C 94-035 Update Sections 1.0, 4.0, 5.1, 5.2; Add 4.2.11 J. Busche 10-27-04
D 95-60 Update Sections 1.0, 2.5, 4.2.8 & 5.5 J. Busche 6-30-95
F 00-003 Add Update 4.1 K. Earle 8-23-00
1.0 POLICY
Production, operation and servicing processes are identified, planned and controlled to ensure that
consistent and acceptable quality is attained. Certain processes, known as special processes, are
qualified to ensure that specified requirements are met. Additionally, all equipment is suitably
maintained to ensure continuing process capability.
2.0 REFERENCES
2.1. n/a
3.0 REQUIREMENTS
3.1 Manufacturing, product maintenance, and field operations/servicing shall be carried out under
planned and controlled conditions which ensure consistent results in meeting acceptance
criteria.
3.2 Controlled processes will be identified and process control procedures will be written,
approved and maintained to control production or service processes, wherever product or
service quality would be adversely affected by the lack of them.
3.3 Through a system of drawings, work orders, routers, product service manuals, procedures and
other applicable documentation, the processes or sequence of operations performed is ensured
during manufacturing and operations activities. This documentation prescribes the check,
inspection, test, verification or data collection points to assure satisfactory completion and
acceptance by authorized personnel.

SUBJECT: NO. QPM-9
PAGE 2 of 3
3.4 Manufacturing and service conditions shall be controlled to assure compliance with standards,
workmanship criteria, quality plans, procedures and contract requirements. The correct
revision of documents shall be used.
3.5 Any operations manuals, drawings, process control documents, inspection criteria, etc.,
required will be issued with the materials or job, or be readily accessible.
3.6 Process parameters, including the work environment, shall be monitored and controlled to the
extent necessary to ensure that variability is minimized, and that it meets requirements and
specifications.
3.7 Written criteria for workmanship shall be stipulated or referenced, as required, in

specifications and/or by means of representative samples.
3.8 Training programs shall be implemented to ensure that all relevant personnel are
qualified/certified to perform or inspect production, special processes or operation of product.
3.9 Equipment will be suitable for intended utilization. Equipment shall be maintained in a
suitable condition to ensure that the process is capable of continually meeting specification
requirements. Service intervals shall be established based upon potential impact to product
quality and/or previous history. To the extent necessary, servicing methods will be
documented in procedures or will reference original equipment servicing guidelines.
3.10 Certain processes, known as Special Processes (the results of which cannot be fully verified by
subsequent inspection and testing), may require in-process inspection, or continuous
monitoring for control of process parameters. These special processes are qualified and
procedures are maintained to ensure that any additional controls are in place. Special process
procedures will define the requirements for equipment, operator qualification, and process
qualification, prequalification or requalification.
3.11 Special process procedures will be established and maintained containing detailed instructions
which explain the methods of performing nondestructive testing, unique manufacturing/service
processes, product servicing, heat treat, welding, etc. Special processes shall be qualified, as
required, to ensure continuous process control. Personnel shall be trained in performing the

SUBJECT: NO. QPM-9
PAGE 3 of 3
process, and qualified, as required, to ensure continuing competence in carrying out the
process.
4.0 RECORDS
4.1. Records will be maintained for process, equipment and operator qualification. Such records
are reviewed and approved by authorized personnel.

SUBJECT: NO. QPM-10
INSPECTION AND TESTING REV. E
PAGE 1 of 5
B 94-009 Update Sections 3.0, 4.1.4, 4.1.9.2; Delete Section 4.3.2 J. Busche 1-10-94
C 94-036 Update Sections 2.5, 4.1, 4.2.3.1, 4.3.5, 5.0 J. Busche 10-27-94
D 95-61 Update Sections 2.3, 3.9, 4.18, & 4.5.1; Add Section 4.6 J. Busche 6-30-95
E 98-001 Rewrite QPM K. Earle 10-01-98
1.0 POLICY
Inspection and test activities are performed to determine that specified requirements are met. The
following requirements for inspection and testing are established to assure product and service
compliance with the requirements:
A) Documented procedures are used
B) Supplier purchased materials are verified
C) Inspections are performed at appropriate stages
D) Conformance of finished products is verified
E) Specified product testing is properly conducted
F) Appropriate records are maintained.
2.0 REFERENCES
2.1. n/a
3.0 REQUIREMENTS
3.1 Documented procedures will be established describing the inspection and test
activities to assure specified requirements are met. When necessary, detail
inspection and test procedures will be referenced and used.
3.2 These procedures will constitute the standard inspection and test process.
Generally, no additional quality or inspection plans will be necessary unless
additional or different inspections and tests are required in specific instances by

SUBJECT: NO. QPM-10
PAGE 2 of 5
special internal orders, certified product requirements or specific customer

contracts.
3.3 Inspections and tests are to be made using applicable, current release, inspection
and test instructions, drawings, specifications and other appropriate reference
materials. Inspections and tests will be carried out only by qualified personnel.
3.4 A system to assure the use of the correct drawing, procedure or document, including
proper revision, will be in place.
3.5 Inspection and test documentation will provide evidence of completion of inspection
and test activities. Acceptance criteria will be stated and results will be recorded.
3.6 The amount and nature of inspections shall be related to the significance and
criticality of the items inspected, level of previous nonconformances and recent
supplier performance.
3.7 All required inspections and tests will be performed. When required inspections or
tests cannot be done within the facility, a qualified and approved supplier will be
used to perform the inspection or testing and will supply the results for evaluation
prior to acceptance of the item.
3.8 Purchase orders will contain or reference inspection and test requirements as well as
include documentation required to accomplish the inspection and tests.
3.9 Purchase orders will identify any paperwork, inspection or test reports, etc. the
supplier is required to deliver with the product.
3.10 When receiving products from a supplier, all special requirements and P.O. notes
which are referenced on the purchase order will be verified prior to acceptance.
3.11 Upon receipt, materials that have been source inspected need only be examined for
transit damage, and the completeness of the accompanying paper work.

SUBJECT: NO. QPM-10
PAGE 3 of 5
3.12 Where Dock-to-Stock programs are in operation, product will be inspected in

accordance with an established local procedure.
3.13 Where Sampling Inspection is to be performed, it must be done in accordance with

accepted statistical methods.
3.14 When an inspection or test step is reached in the processing sequence, product will
be put on hold until the inspection and tests are completed. If further processing
will not prevent inspection and tests from being performed properly, continued
processing may be allowed. Product inspection and test status will be identified at
all times.
3.15 In the event of an urgent need, incoming or inprocess, product can be released for
production purposes, as long as it is positively identified and recorded in order to
permit recall or replacement, in the event of nonconformance.
3.16 All nonconforming product discovered during inspection and test will be handled in
accordance with a Control of Nonconforming Product procedure. Current product
status will be identified and safeguards for inadvertent continued processing or
acceptance will be enacted.
3.17 Final acceptance is required prior to putting into to inventory or delivery to a

customer. Final acceptance will verify:
A) All operation, inspection and test steps have been completed in accordance
with plans and procedures, that the product conforms to special contract
requirements and evidence of inspection/test/acceptance is documented.
B) All nonconformances have been cleared prior to final acceptance. All

nonconformances and dispositions are to be recorded. Any additional
inspection or tests after rework have been completed.

SUBJECT: NO. QPM-10
PAGE 4 of 5
C) For API certified products or as specified in product certification

requirements or customer contracts, inspections will be performed by an
independent qualified inspector only.
D) Identification of individuals with acceptance authority will be noted.
3.18 If customer or 3rd party final inspection is requested or stipulated, the customer is to
be notified prior to final inspection within the timeframe specified in the contract.
Further processing will be put on hold until customer inspection is completed
and/or waived.
3.19 Product shall not by-pass Final Acceptance for any reason. Inspection shall
ensure/verify that all appropriate attributes have been inspected. Products will be
put on hold until final acceptance is performed.
3.20 All new manufacture or remanufactured product that is received from another
INTEQ facility that has been accepted and bears evidence of acceptance should only
require local receiving inspection to verify that the order received matches shipping
paperwork, that all paperwork is included, and to check for transit damage. Age
Sensitive materials will also be verified to ensure that Shelf Life has not exceeded
specification.
3.21 Products received in assembly form should be inspected or tested in accordance with
appropriate procedures to ensure that the equipment functions properly after
assembly or has not suffered any degradation of performance during transit.
3.22 Where product has not been used, or documentation and applied markings on
components demonstrates that the part maintains an accepted status, the receiving
facility is responsible for implementing suitable verification procedures to ensure
the product’s continued acceptance for use.
3.23 Products that are to be reworked after field use as part of the normal refurbishment
process shall not be considered to be nonconforming but shall be appropriately

SUBJECT: NO. QPM-10
PAGE 5 of 5
identified. Nonconforming field return products will be identified using the First
Alert System.
3.24 A stock inspection should be initiated if there is reason to believe that certain parts
or materials are discrepant and should be re-verified. EXAMPLE: An ECN, Tech
Alert or Field Maintenance Memo is distributed with a rework or re-inspection
disposition, or a Corrective Action or First Alert investigation requires recheck of
stock, etc.
4.0 RECORDS
Inspection and test records showing product acceptance will be retained.

SUBJECT: NO. QPM-11
CONTROL OF INSPECTION, REV. D

MEASURING, AND TEST EQUIPMENT
PAGE 1 of 5
B 94-010 Update Table 1 J. Busche 1-10-94
C 94-037 Update Sections 2.0, 4.0,. Delete Table 1 J. Busche 10-27-94
1.0 POLICY
Baker Hughes INTEQ establishes and maintains control, calibration, care, and maintenance of
Inspection, Measuring and Test equipment/software used in the production, testing,
qualification/acceptance or servicing of its products.
2.0 REFERENCES
2.1. n/a
3.0 REQUIREMENTS
3.1. Documented procedures will describe the process of controlling, calibrating and maintaining
equipment.
3.2. All inspection, measuring and test equipment/software used by Baker Hughes INTEQ to
determine conformance to product specifications will be periodically calibrated to ensure
integrity of measurements or results.
3.3. All persons using measuring equipment or performing calibration of equipment shall have
appropriate skill.
3.4. Inspection, measuring and test equipment that has not been calibrated, or when calibration
has expired, shall not be used as an acceptance medium. Expired equipment shall be
segregated and not used until calibration has been performed.
3.5. The environment where inspection, measuring and test equipment is to be calibrated and/or
used must be controlled to the extent necessary to assure required accuracy, with

SUBJECT: NO. QPM-11

PAGE 2 of 5
consideration given to temperature, humidity, vibration, cleanliness and other controllable

factors.
3.6. Inspection, measuring and test equipment shall have capabilities for accuracy, stability,
range and resolution required for the intended use.
3.7. Calibration standards shall have enhanced capabilities for accuracy, stability, range and
resolution sufficient for calibration purposes.
3.8. Equipment shall be stored and handled in a manner that protects and maintains fitness for
use.
3.9. Test fixtures used to qualify or accept product will be verified prior to first use and
periodically re-verified to assure continuing suitability.
3.10. Integrated/automated test equipment will be verified and/or calibrated, at the top level, on a
defined recall basis.
3.11. Software used to qualify or accept product will be identified with a version indicator It will
be initially verified for correct operation and periodically rechecked to determine integrity of
the software code. Whenever possible, software will be protected against alterations and the
correct version of the required software will be identified in test procedures or other
controlling documentation.
3.12. All inspection, measuring and test equipment shall be uniquely identified to allow tracking
and retrieval.
3.13. Personally owned equipment used to inspect or accept product will be uniquely identified and
will be included in the recall database. A record file will be established and they will be
subject to the same recall cycles and accuracy as company owned equipment.
3.14. Departments using inspection, measuring and test equipment are responsible for monitoring
calibration due dates and submitting equipment for calibration on schedule.
3.15. The user of any piece of measuring or test equipment requiring calibration is responsible to
ensure that such equipment has evidence of current calibration, and that it is removed from
service if calibration has expired or if the proper functioning of the equipment is suspect.

SUBJECT: NO. QPM-11

PAGE 3 of 5
3.16. Frequency of calibration will be determined by past history, repeatability, stability, frequency
of use or generally accepted recall periods. The assigned frequency of calibration may be
lengthened or shortened after wear/degradation characteristics have been established.
3.17. If frequency of calibration is determined by use, a method of tracking uses will be developed.
3.18. Whenever inspection, measuring, or test equipment has been damaged (dropped, roughly
handled, etc.) it shall be removed from service until it is checked.
3.19. New inspection, measuring and test equipment, whether company or employee owned, shall
be calibrated prior to use. Certificates of calibration from the equipment supplier, when
provided, are evidence of initial calibration.
3.20. Whenever inspection, measuring, and test equipment is loaned to a vendor, it should be
checked prior to such loan. Immediately upon return of such equipment, it should be re-
checked to ensure that no damage occurred during the loan period.
3.21. Inspection, measuring and test equipment, including test software, shall be safeguarded
against adjustments which would invalidate the calibration settings.
3.22. Calibration will be done using one of the following types of procedures: a) Baker Hughes
INTEQ Calibration procedures; b) Recognized industry standards for calibration; c)
Manufacturer’s recommended calibration procedures; or d) Other documented and approved
methods when a), b) or c) does not apply.
3.23. Procedures shall specify either the measurement standard to be used, or the required
accuracy of the standard and the accuracy of the item being calibrated.
3.24. Standards used for calibration shall be calibrated to ensure measurement capabilities with
documented traceability to a National or International Standard.
3.25. Environmental conditions, where needed, will be specified in procedures, and calibration
performed within stated conditions.
3.26. Calibration procedures for company designed inspection, measuring and test equipment will
be developed.

SUBJECT: NO. QPM-11

PAGE 4 of 5
3.27. Baker Hughes INTEQ is responsible for assuring that outside calibration sources are capable
of providing calibration services meeting the requirements of this policy. Outside sources
shall use calibration standards traceable to national standards. Outside calibration sources
must be approved suppliers.
3.28. Purchasing documents for outside calibration services will specify the requirements or
method used for calibration and will require certifications of traceablity to applicable
National or International Standards.
3.29. A calibration report will be required for each instrument calibrated by an outside calibration
agency. A calibration report will be also be supplied for instruments calibrated internally for
another Baker Hughes INTEQ location if requested.
3.30. The calibration data listed below is to be recorded for each calibration, whether internally or
externally calibrated, as it applies:
Calibration Frequency Calibration Due Date

Tolerance Traceability information
Location Acceptance criteria
Manufacturer Name Serial Number or unique ID
Equipment type Procedure or calibration method
Calibration Source Any out of tolerance condition
Calibration Date
3.31. After calibration is completed, the instrument is to be identified with a calibration sticker
indicating next due date.
3.32. Any out-of-tolerance condition will be documented and the user of the equipment notified so
the effect of previous uses on product acceptance can be evaluated.
3.33. In the event that an out-of-tolerance condition is discovered, and determined significant
enough to effect product integrity, an investigation will be conducted. Corrective action will
be taken, and, if deemed necessary, customers will be notified following the investigation.

SUBJECT: NO. QPM-11

PAGE 5 of 5
4.0 RECORDS
4.1. Calibration records, certificates and calibration supplier data will be maintained.

SUBJECT: NO. QPM-12
INSPECTION AND TEST STATUS REV. F
PAGE 1 of 4
B 94-011 Update Sections 4.1.2, 4.1.4.1 J. Busche 1-10-94
C 94-038 Update Sections 2.1, 2.7, 2.8, 3.0, 4.1; Delete 4.1.5.2 J. Busche 10-27-94
D 95-73 Delete References to QF-12.10 J. Busche 6-30-95
G 00-003 Update 3.3.4 E K. Earle 8-23-00
1.0 POLICY
Baker Hughes INTEQ ensures that the inspection and test status of products can be verified at all times.
This policy defines the use of color codes (where used) for the visual identification of parts and
material status.
2.0 REFERENCES
2.1. QPM-10: Inspection and Testing
2.2. API Spec 13A: Specification for Drilling-Fluid Materials
2.3. API Spec 7: Specification for Rotary Drilling Equipment
2.4. API Q1: Specification for Quality Programs
3.0 REQUIREMENTS
3.1. Local procedures will describe the process for identifying Inspection and Test Status.
3.2. Inspection and Test Status Identification
3.2.1. The appropriate identification shall be attached or marked onto the product
identifying current inspection or test status. The identification will clearly show
whether the product is conforming, non-conforming, in-process, or as other defined
status. Care shall be taken to ensure that the marking or tagging methods do not
affect part integrity, capability or reliability.

SUBJECT: NO. QPM-12
PAGE 2 of 4
3.2.2. Production documentation may be used as indication of inspection and test status
during manufacturing and/or production. This documentation will contain sufficient
information to ensure that the correct inspection and test status of the product can be
confirmed. Production documentation will remain with the parts/materials through
all stages of production.
3.2.3. When marking identification is not possible, the physical location of the material will
identify its status.
3.2.4. Marking and Tagging
When using color codes as a method of marking or tagging of parts to signify

status, it must follow the codes listed below:
STATUS COLOR CODING

New Part Accepted White
Used Part Accepted* Green
Rework, Repair, or Blue

Maintenance
Scrap Red
Limited Use Yellow
MRB Hold Orange
FIRST ALERT Orange with First Alert marking
• NOTE: As an internal inventory control measure, green tags/stickers may

be used to signify a repaired or used accepted part.
3.3. Stamping
3.3.1. The proper stamping method (steel, etch, rubber stamping) shall be selected to ensure
that parts are not damaged when stamped.

SUBJECT: NO. QPM-12
PAGE 3 of 4
3.3.2. Stamps shall be retained in a legible condition to ensure clear information transfer,
and will be assigned to authorized personnel only and controlled.
3.3.3. The use of a signature or initials by the authorized inspection/test personnel is

acceptable, although a stamp/date is recommended.
3.3.4. When stamps are used for indicating inspection status, the following stamp
configurations will be followed:
A. Inspection Acceptance Stamp: Used to indicate inspection acceptance of the article

conforming to applicable specification. This applies to received goods, in-process or
finalized work.
B. Manufacturing Test/Electrical Stamp: Used when the test/inspection is performed

by Manufacturing with QA surveillance and authority.
C. Defective Rejection Stamp: Used to show that lot is rejected.
D. Metal Acceptance Stamp: Used, when required, on finished items to indicate

inspection acceptance.
E. API Monogram Stamp: Can only be used by facilities that are licensed to use the API
Monogram (see API spec 7, 13A for proper use on specified products). In addition
to applying the monogram, the date of manufacture and the facility license number
shall also be applied to the product. Application of the API Monogram is controlled.
The authority responsible for applying and removing the monogram is the Facility
Manager or his designate.
3.4. Certificates of Compliance

SUBJECT: NO. QPM-12
PAGE 4 of 4
3.4.1. These are documents delivered to a customer for a product or item which
warrant that the part is “Accepted”. Certifications will be furnished to a
customer when specifically requested in the customer contract or purchase
order.
3.4.2. Certifications of Compliance will, by Purchase Order specifications, be

required from Baker Hughes INTEQ suppliers when there are critical
materials or processes involved. During receiving inspection, such
certificates will be reviewed for completeness and evidence that the product
complies with requirements.
3.5 No parts or materials will be issued for delivery without evidence of acceptance; only
“passed” product shall be released. Materials discovered without acceptance indication will
be held for verification of status.
4.0 RECORDS
4.1. Test and inspection acceptance documents and certificates of compliance will be retained.

SUBJECT: NO. QPM-13
CONTROL OF NONCONFORMING PRODUCT REV. D
PAGE 1 of 3
B 94-020 Update Appendix A J. Busche 1-10-94
C 94-039 Update Sections 2.0, 3.3, 4.0 J. Busche 10-27-94
1.0 POLICY
Baker Hughes INTEQ ensures that any product or service which fails to conform to specified
requirements is removed from use or operation, and retained under control until suitable review
and disposition has been undertaken.
2.0 REFERENCES
2.1. First Alert System Manuals
3.0 REQUIREMENTS
3.1. Documented procedures will be developed defining local processes for control and
disposition of nonconformances.
3.2. At Operations locations or the Wellsite, reporting and processing of nonconforming

products or services and corrective action shall be in accordance with the First Alert
system. The First Alert Manuals are located on Insource.
3.3. At Manufacturing locations a Discrepant Material Report (DMR) will be initiated when
a product or part fails to conform to specifications, requirements, has been damaged, or
where product integrity is suspect, and where the nonconformance cannot be dealt with
using documented repair and inspection criteria. DMR’s will be dispositioned by
authorized individuals.
3.4. The inspection status of all nonconforming product will be identified on, or attached to
items using the appropriate color coding, markings, tagging, stamps or physical location
and segregated where practical. A copy of a DMR or First Alert associated with the
item may also identify nonconforming material.

SUBJECT: NO. QPM-13
PAGE 2 of 3
3.5. Nonconforming products, services or field failures which are identified during
manufacture, procurement, or operation/use will be reviewed to determine the need for
corrective action. If corrective action is required and can be readily accomplished, the
cause and corrective action can be noted on the DMR or First Alert. If corrective action
is required, but it is uncertain as to required action or involves additional investigation,
the corrective action shall be undertaken in accordance with QPM-14.
3.6. Nonconforming product and associated documentation will be processed in accordance

with the formal disposition noted on the DMR or First Alert.
3.7. Repaired or reworked product will be re-inspected for conformance to Baker Hughes
INTEQ or other overriding specifications prior to continued processing.
3.8. API or other certified products found nonconforming shall be identified, the
nonconformance documented and appropriate analysis and corrective action completed
in accordance with certification requirements. If already applied, monograms or other
certification markings should be removed.
3.9. A review and disposition process will be established at each location. Individuals
authorized to make disposition decisions will be identified. The review shall consist of
input by appropriate function or department representatives. Other department,
customer, or supplier representatives may be consulted when deemed appropriate to the
correct dispositioning of materials that directly affect them.
3.10. Dispositions will be undertaken per the following classifications:
• “Use As Is” (UAI) - If the nonconformance does not adversely affect form, fit,
function, safety, or interchangeability.
NOTE: This classification cannot be given to any materials that are governed
by external specifications, i.e., API Specifications, product
certification, safety or a specific customer requirement.
• “Use As Is - Limited Use”- If the nonconformance will not jeopardize or

compromise product performance, although some operating parameters may need

SUBJECT: NO. QPM-13
PAGE 3 of 3
to be changed to accommodate the product when in use. This disposition will

require acceptance by the customer. The item will be sufficiently identified so the
limited use parameters are known by those using the product.
NOTE: This disposition cannot be given to any product governed by API or

other product certification specifications.
• “Rework” - If the nonconformance can be economically processed, reworked or

repaired to meet original specifications.
NOTE: “Rework” may include processing to a “Use As Is” status if approval

is given, and all other criteria for “Use-As-Is” dispositions are met.
• “Scrap” - If the nonconformance cannot be economically reworked to a useable

condition. Such product must be clearly identified and removed from all areas of
use or availability for use.
• “Return To Vendor” (RTV) - Returning a product to the vendor or supplier for

credit, replacement, rework or agreed action.
3.11. Requests of deviation/waiver may be used for requesting permission to deviate from
specified requirements. An appropriate review will be documented. These items shall be
sufficiently identified. No deviations are allowable for API or other product governed by
product certification or contract requirements.
4.0. RECORDS
4.1. Records of use-as-is, limited use or approved deviations will be maintained.

SUBJECT: NO. QPM-14
CORRECTIVE AND PREVENTIVE ACTION REV. F
PAGE 1 of 5
C 94-040 Update Sections 1.1, 2.3, 3.0, 4.0, 5.0; Add 4.2.2 J. Busche 10-27-94
D 95-62 Update Sections 1.1, 1.2, 1.3, 2.0, 4.1.1, 4.1.2, 4.1.3, 4.2.1, 4.2.2, J. Busche 6-30-95
4.4.3, 4.6.1, & 5.3
J. Busche
E 95-102 Add Section 4.6.3 8-31-95
1.0. POLICY
Baker Hughes INTEQ maintains a system to identify actual or potential problems and takes action to
prevent problems from occurring.
2.0. REFERENCES
2.1. First Alert System Manuals
3.0. REQUIREMENTS
3.1. The First Alert System will be used by the Business Units, Field Operations and District
locations for reporting, tracking and documenting problems and action taken as a result of
the problems. The First Alert manuals define system requirements and describe the use of
the system for reporting and tracking.
3.2. Manufacturing locations may use a separate system for corrective and preventive action.
3.3. This section of the Quality Policy Manual (QPM-14) defines the requirements for corrective
and preventive action regardless of the system used.
3.4. Local procedures will be developed describing how First Alert or other systems accomplish
the requirements for corrective and preventive action.
3.5. Corrective and Preventive Action, Remedial action, and Root Cause determination.
3.5.1. Corrective action is taken to prevent a reoccurrence of a nonconformity or adverse

incident. Corrective action occurs as a result of customer complaints, product or
service problems, field/rigsite incidents, system/process failures, nonconformities,

SUBJECT: NO. QPM-14
PAGE 2 of 5
audits, etc. They are intended to identify a problem so the root cause can be
determined and necessary action taken to keep the occurrence from happening
again.
3.5.2. Preventive action is taken to prevent a first time occurrence of a potential

nonconformity or undesired condition. Preventive action occurs as a result of trend
analysis, data/process reviews, performance reports, debriefings, SPC analysis or
the use of other sources of data to identify potential problems. This analysis or
review of information to identify potential problems so preventive action can occur
should be undertaken on a planned and systematic basis. However, any potential
problem should be considered for preventive action regardless of the manner of
discovery.
3.5.3. Remedial action, or problem correction, is taken as a response to an occurrence of a

failure or adverse action to minimize impact of the problem and as a remedy for the
specific situation. While this action is necessary to address a specific failure, this
action usually has no effect on reducing the likelihood of future similar failures.
3.5.4. Root cause determination is an investigation or consideration of the underlying

probable cause or factor that needs to be changed in order to achieve a permanent
solution to prevent a failure. Often, there are intermediate, or a chain of factors,
leading back from a failure to the root cause. A root cause investigation needs to
identify the fundamental factor if a solution is to be effective and not mistake an
intermediate factor as a root cause.
3.6. Corrective/Preventive Action Requests
3.6.1. A single system may be used for documenting and responding to preventive,
corrective and remedial actions as well as root cause analysis but should identify the
type of action occurring to avoid confusion or mistaking remedial action for root
cause solutions.

SUBJECT: NO. QPM-14
PAGE 3 of 5
3.6.2. Corrective/preventive action will occur whenever circumstances warrant formal and
positive solutions, to correct any nonconformance or problem encountered, likely to
be encountered, or in answer to a customer complaint.
3.6.3. Examples of types of nonconformities include but are not limited to:
• Product or service failure at the wellsite
• Product failure at a Baker Hughes Location
• Receipt of Discrepant material from internal manufacturing
• Receipt of Discrepant material from vendors
• Customer complaints
• Internal or 3rd party audits
• CIP identified actual or potential problems
• SPC analysis
• Deviation request
• Audits
• HSE identified near misses or accidents and incidents
3.6.4. Requests for corrective/preventive action can be submitted for local facility issues,
issues between facilities, or to suppliers.
3.6.5. Any Baker Hughes INTEQ employee can recommend corrective/preventive action
by contacting the person responsible for administering the First Alert or other
corrective action system.
3.6.6. Each corrective action will be uniquely identified and logged for tracking.
3.7. Closure of corrective action requests / First Alerts.
3.71. The First Alert or corrective action request will be routed to the individual,
department or manager who is best able to investigate and/or solve the problem.

SUBJECT: NO. QPM-14
PAGE 4 of 5
Occasionally, a team will be formed to investigate and respond. The individual or

team assigned will provide investigation into the root cause of the problem, and
supply a recommended course of action to eliminate the actual or potential causes of
nonconformance. The schedule for accomplishing the recommended action will
also be included in the response.
3.7.2. The significance, or risk, of a problem affecting quality should be evaluated in

terms of its potential impact on such aspects as production costs, quality costs,
performance, reliability, safety, and customer satisfaction. The resolution should be
appropriate for the significance and level of risk.
3.7.3. Effective responses may include process changes, design changes, and/or changes to
procedures. Such changes will be recorded to ensure that actions
prescribed/undertaken are traceable to the reported nonconformance, the affected
product or service and/or to the personnel responsible for both disposition and
implementation. Changes to formal documentation will be in accordance with
documented procedures.
3.7.4. Problem investigation or resolution which affects other departments or locations

will be coordinated with affected departments and/or locations, in a manner to
ensure that actions are appropriate and properly implemented.
3.7.5. In case of dispute regarding the problem or proposed action, the next higher
management level above the disputing parties will provide resolution. If response
or action is not accomplished by the due date, and an extension has not been
negotiated, the next level of management may be contacted for action.
3.7.6. The results of any investigation and other supporting information shall be recorded
as evidence to support the validity of proposed actions. Results of verification of
implementation and effectiveness of action taken shall be recorded. Appropriate
details of the evidence observed or reviewed shall be recorded, or attached, and filed
for reference.

SUBJECT: NO. QPM-14
PAGE 5 of 5
3.7.7. Authorized approval of response and planned actions will occur. Approval
authority will be defined in local procedures.
3.7.8. Solutions will be verified or reviewed for implementation and effectiveness in

preventing occurrence of the problem.
3.7.9. Upon the satisfactory completion of the planned actions and review of effectiveness,
the corrective/preventive action will be closed as authorized.
3.7.10. Preventive and corrective actions, and resulting changes, will be summarized and
included as part of management review.
4.0. RECORDS
4.1. Corrective and Preventive action records will be retained.

SUBJECT: NO. QPM-15
HANDLING, STORAGE, PACKAGING, REV. E

PRESERVATION AND DELIVERY
PAGE 1 of 3
B 94-013 Update Section 4.9 J. Busche 1-10-94
C 94-041 Update Sections 1.0, 4.0, 5.0 J. Busche 10-27-94
D 95-63 Change 3.0; Update Section 4.2 J. Busche 6-30-95
1.0 POLICY
Baker Hughes INTEQ maintains proper handling, preservation, storage, packaging, preservation and
shipping practices to protect the quality of deliverable products and to prevent damage, deterioration
and degradation.
2.0 REFERENCES
2.1. ESD Procedure 80750
2.2. Shelf Life list 80599
3.0 REQUIREMENTS
3.1. Local procedures will be developed to describe the requirements and process of proper
handling, preservation, storage, packaging, preservation and shipping practices
3.2. Baker Hughes INTEQ will assure that product quality is protected during shipping, handling
and storage such that inadvertent damage, actual physical loss, or exposure to conditions
detrimental to required or intended quality characteristics does not occur. Storage areas will
be designated and will be adequate to provide proper protection and security. Storage areas
will be appropriately identified.
3.3. Special marking, handling or shipping instructions, as necessary, will be included in

purchase documents. Subcontractor compliance to packaging and preservation, shipping,
handling and storage specifications designed to protect product quality will be monitored.

SUBJECT: NO. QPM-15

PAGE 2 of 3
3.4. Baker Hughes INTEQ personnel are responsible for monitoring the handling of goods
throughout all processes to assure adherence to both specified and common sense practices.
For instance, heavy or bulky items should be mounted on proper skids, delicate items should
be prevented from jostling damage, and static sensitive devices should only be
handled/stored using proper precautions.
3.5. All departments will be responsible to ensure the proper and secure storage of materials, that
specified environmental conditions are maintained, that materials are properly rotated, that
obsolete and out-of-date materials are removed, that materials are properly identified, and
adherence to all statutory regulations or customer contract specifications.
3.6. All materials that are time and/or temperature sensitive will be on a shelf-life list that will
define the shelf-life expiration date which shall be clearly marked on each item. All
materials that have deteriorated, or have exceeded the shelf-life expiration date, shall be
purged.
3.7. Periodic review of stock areas to assess current condition of products will be undertaken.
Inspection of items in stock in response to engineering changes, failure analysis, or
otherwise suspect parts will occur. Items found nonconforming will be identified and/or
removed. Items may be restocked after authorized disposition and/or rework.
3.8. Receipt and issue of materials will be controlled to ensure proper receiving and dispatch.
3.9. There shall be responsible parties designated to oversee the proper packaging of product and
materials prior to shipment to assure adequate protection of shipped items during transit
through delivery at the destination. This includes making sure that packaging specifications
comply with appropriate commercial practices, statutory regulations, customer contract
requirements and/or Baker Hughes INTEQ requirements, and making certain that all
interior and exterior containers are properly marked and certified, where necessary.
3.10. There shall be responsible parties designated to verify the proper shipping of product and
materials, including verifying that the shipping documents are correct and properly stamped,
that containers are properly loaded and secured in shipping vehicles, that customs, industry

SUBJECT: NO. QPM-15

PAGE 3 of 3
and governmental regulations are being complied with, and that the proper documentation is
included with the shipment.
3.11. Electronic items require special care to avoid both physical damage and damage from
electrostatic discharges (ESD.) Special packaging materials will be used, printed circuit
boards will be protected from bending and proper static grounding devices will be used when
handling electronic items.
4.0 RECORDS
Shipping and storage records shall be maintained.

SUBJECT: NO. QPM-16
CONTROL OF QUALITY RECORDS REV. E
PAGE 1 of 3
B 94-014 Update Sections 4.1, 4.5 J. Busche 1-10-94
C 94-042 Update Section 4.0; Add Section 5.4 J. Busche 10-27-94
E 00-003 Amend Sec. 3.4 and table to require minimum 5 yr. retention for API K. Earle 8-23-00
1.0 POLICY
Baker Hughes INTEQ will maintain a complete and accurate documentation/data records system. This
system will make provision for the retention of all records that demonstrate achievement of an effective
Quality System.
2.0 REFERENCES
2.1. Baker Hughes Incorporated Records Retention Policy and Plan
3.0 REQUIREMENTS
3.1. Baker Hughes INTEQ will assure that adequate, legible, and complete records will be
maintained in order to demonstrate that all systems, processes and operations are being
performed in accordance with the quality system, good manufacturing practices, customer
specifications, legal, API Monogram or certifying agency requirements, and Baker Hughes
INTEQ design acceptance criteria.
3.2. Documented procedures will be developed to describe the local record control processes.
3.3. Every Department has responsibility for identification of quality records and will ensure that
active files are established and maintained in a manner that enables effective retrieval of
specific data. The method of collection of records, indexing system, access, method of filing,
storage, maintenance, archiving and disposition will be described in local procedures.
Handwritten or printed records will be dark and legible. Electronic record files will be clearly
identified.

SUBJECT: NO. QPM-16
PAGE 2 of 3
3.4. Records that are stored electronically will be identified and controlled by a procedure to
assure that they are maintained and retained in accordance with these requirements.
3.5. A master file for records (both paper and electronic) will be established and identified. Back
up for electronic files will occur on a regular basis. When electronic documents are updated,
the master copies of previous revisions will be retained.
3.6. Quality records that are considered company confidential will be properly controlled.
Confidential material shall not be copied or issued outside the company without the
appropriate approval.
3.7. Permanent quality records will be maintained for a minimum period defined in the Baker
Hughes Incorporated Records Policy and Plan. Some records may be required to be kept for
longer periods if required by contract, regulation or other superseding requirement. For API
registered locations, quality records shall be kept a minimum of 5 years.
3.8. Temporary quality records will be identified with retention periods specified locally.
Temporary quality records are those records that must be retained for a specific need and/or
time frame but have no long term value and do not meet the requirements for quality records
requiring retention as defined in this policy or the Baker Hughes records retention policy.
3.9. When records are taken from active files and stored, containers to be used are to be clearly
marked as to contents, retention dates, and department ownership. Storage shall be in a
medium and location to prevent loss, damage or deterioration for the minimum retention
period.
3.10. Quality records pertaining to a specific order or contract will be available for review, for an
agreed period, by customers if contractually agreed.
3.11. Quality Certifications received from suppliers will be maintained. Typical certifications are as
follows: Original Mill Material Certification, Certificate of Compliance, Nondestructive Test
Certification, Welding Certifications, etc.

SUBJECT: NO. QPM-16
PAGE 3 of 3
3.12. The following table is an excerpt of the Baker Hughes Record Retention Policy and Plan and
lists only some of the required records and retention times. Refer to that plan for a complete
description of records retention requirements.
Record Type Retention Time
Contracts 6 years plus VP and Legal approval
Job Descriptions 3 years*
Engineering Change Orders 10 years
Work Orders 3 years*
Inspection / test / acceptance records Permanent
Calibration records 10 years
Supplier Quality records 10 years
Purchase Orders 6 years
Supplier Files 6 years
Policy, Procedure and Dept. Manuals Permanent
Research and Development records 20 years plus VP and Legal approval
Pilot run data 20 years plus VP and Legal approval
Minutes of Technical meetings 20 years plus VP and Legal approval.
* 5 years for API registered locations.

SUBJECT: NO. QPM-17
INTERNAL QUALITY AUDITS REV. E
PAGE 1 of 4
B 94-015 Update Sections 4.4; Add Section 4.10.1.1 J. Busche 1-10-94
C 94-043 Update Section 2.0; Add Section 4.12 J. Busche 10-27-94
D 95-64 Update Section 4.1, 4.4, 4.5, 4.8.2, 4.10 & 4.12 J. Busche 06-30-95
1.0 POLICY
Baker Hughes INTEQ conducts and documents internal quality audits to verify compliance and
effectiveness of the quality system. Suppliers are also subject to quality audits.
2.0 REFERENCES
2.1. QPM-14 Corrective and Preventive Action
3.0 REQUIREMENTS
3.1 Audits determine if established requirements are properly reflected in written procedures and if
actual practice follows both written procedures and other requirements. Internal audits are
performed to ensure compliance to governing systems and to help the organization improve upon
existing systems. The results of audits are, through closing meetings, written reports and written
corrective actions, brought to the attention of the personnel having responsibility for the area
audited.
3.2 Documented procedures for planning and implementing internal quality audits will be developed
locally.
3.3 A formal audit schedule will be established at least annually. The audit schedule will be created
in conjunction with facility management. The areas chosen, and frequency of audit, will be
scheduled on the basis of activity, risk, importance and status. All areas should be audited at
least annually. The schedule is used for planning purposes, and may be changed, as necessary.
Unscheduled audits will be conducted if requested, or as deemed necessary. These audits will be
added to the schedule as they occur.

SUBJECT: NO. QPM-17
PAGE 2 of 4
3.4 Usually, the audit schedule, or an audit agenda, will be distributed or available to concerned
departments/facilities prior to the audit date. Suppliers will normally be notified before an audit
is performed. However, unscheduled audits may be performed with minimal advance notice if
circumstances or requirements dictate.
3.5 Checklists or other guiding documentation that is used for the audits will be retained on file with
the audit report.
3.6 Formal audits shall be conducted by trained and qualified personnel who do not have direct
responsibility for, or control of, the area being audited. Minimum internal auditor requirements
are one of the following:
A) Successful completion of Baker Hughes INTEQ Auditor Training Program.

B) ASQ CQA or comparable outside certification board recognition.
C) Auditor Certification issued by a national registration board.
D) Recognized Internal Quality Auditing Course certificate.
3.7. The auditee is responsible to cooperate and assist the auditor in the performance of the audit, and
to assume responsibility for any assigned corrective actions. In those locations where a language
difference exists, assistance includes assignment to the auditor of a technically competent
interpreter.
3.8. During an audit, items found to be non-compliant are called “findings.” Findings (corrective
actions) fall into two categories according to severity and effect on the quality system.
A) Quality Improvement: Findings which, while a violation of the quality system, are not
currently resulting in delivery to the customer, any non-conforming product or service.
These should be corrected as part of the continuous improvement system
B) Hold Point: Findings which violate the quality system, including customer or industry
specifications, and which must be corrected immediately, in order to prevent the delivery
of non-conforming materials or services to the customer.
3.9. In addition to findings, observations (preventive actions) may be made:

SUBJECT: NO. QPM-17
PAGE 3 of 4
Observation: Processes which are not necessarily non-compliant at present, but which
may lead to non-compliance if not corrected, or which, if changed would improve the
quality system.
3.10. Corrective Action Requests will be prepared at the time of the audit, or immediately subsequent
to the audit, to document unsatisfactory findings. A system to track Corrective Actions will be
used to monitor and assure closure of Corrective Actions.
3.11. Timely corrective action on all deficiencies discovered will be the responsibility of the
department manager or supplier but may be delegated to others for completion.
3.12. At the conclusion of the audit, a closing meeting will be conducted with the supplier or
facility/department manager and associated personnel. The purpose of this meeting is to present
the auditor’s observations and, where appropriate, Corrective Action Requests. Closing meetings
for internal audits may be waived by the department manager, in which case the report along
with corrective actions will be sent to the manager as soon as possible.
3.13. An audit report will be written to formally document the department, facility, or supplier’s
demonstrated compliance to the quality system requirements, and needed corrective actions. In
most cases, this report will be available within two weeks of the Audit Exit Interview. The report
will be distributed and filed as a Quality Record. Management action may be initiated to resolve
audit findings.
3.13.1. The audit report will list the areas reviewed, the requirements reviewed against and the
specific corrective actions issued. It will also list the principal auditee and the auditor
participants in the review process. It may also describe exemplary situations
encountered where the auditee has performed exceptionally well.
3.13.2. A completed checklist containing items identified above may be used as the audit report
for internal audits.
3.13.3. A summary of the audit reports and corrective actions will be included in the yearly
Management Review.
3.14. All audits will be followed up to assure closure of Corrective Actions as described in the
Corrective Action section of this policy manual (QPM-14.) Failure to promptly respond to the

SUBJECT: NO. QPM-17
PAGE 4 of 4
corrective actions may result in upper management involvement (internal) or for a supplier to be
no longer considered approved.
3.15. Internal quality audits performed by Baker Hughes INTEQ Headquarters may be conducted..
Corrective actions written will be identified on an audit report but may not be assigned a
headquarters CAR number, responsible individual or due date. These corrective actions will be
delivered to the individual responsible for administering the local corrective action system. This
individual will complete CAR’s by assigning a local log number, due dates and responsible
individuals and is responsible for tracking, evaluating, and approving corrective actions. All
corrective actions written during corporate audits will require response. Results of internal audits
may be reviewed by a headquarters audit team.
3.16. All documents examined during quality audits will be treated with confidentiality, and will be
retained by the appropriate facility/department although copies may be made for inclusion with
audit reports or corrective action requests.
4.0. RECORDS
4.1. Audit reports, including checklists, and corrective action requests will be maintained as quality
records.

SUBJECT: NO. QPM-18
TRAINING REV. E
PAGE 1 of 3
B 94-016 Update Sections 2.0, 3.0, 4.3, 4.4, 4., 4.7, 4.10, 5.1 J. Busche 1-10-94
C 94-044 Update Section 1.0, 3.0, 4.0; Add Section 4.1 J. Busche 10-27-94
D 95-65 Update Section 1.0 & 4.7 J. Busche 6-30-95
1.0 POLICY
Baker Hughes INTEQ provides training and certification where necessary in order to maintain the
desired level of skill, training and experience in positions requiring specific skills to support the
company's quality objectives. Each employee has the required skills to perform the job competently.
Personnel are qualified based on education, experience and training.
2.0 REFERENCES
2.1. IN-FACTS Training and Development Manual
3.0. REQUIREMENTS
3.1. Documented procedures will describe the local system for identifying needs and providing
for training.
3.2. Baker Hughes INTEQ will provide internal employee training in order to maintain a
qualified work force. Training programs will be offered in many different work-related areas.
Examples are: management training and evaluation courses, rig operational practices,
technical training of sales personnel, computer training, Quality System and HS&E
Training, etc. The amount of training offered will be evaluated on an individual or group
basis, depending on the specific function performed, skill level required and the needs of the
employee.
3.3. Training offered by external sources will also be considered for employees, in order to meet
needs not covered by internal training programs. The company also encourages employees

SUBJECT: NO. QPM-18
TRAINING REV. E
PAGE 2 of 3
to pursue further educational opportunities in order to enhance their skills and knowledge, as
it relates to their current job, or potential positions within the company.
3.4. An INTEQ Field Advancement and Career Training System, called IN-FACTS, is the
training and development program for INTEQ field personnel. It has been developed to
provide guidelines for training and references requirements for each field position.
3.5. All employees will be given an explanation of the company's quality policy and the effect
and responsibility that each employee has with respect to quality
3.6. It will be the responsibility of each supervisor or manager to determine the level of skill
required for positions reporting to them. A training plan will be created and maintained for
each employee which shows training planned and training completed. This includes any
training requirements for personnel working with certified and/or monogrammed product.
3.7. All personnel performing tasks requiring specialized skills must be trained, qualified and/or
certified. Detailed procedures govern the performance of specific functions, where special
skills are required, and define the qualifications and testing required to be certified to
perform the function.
3.8. Personnel not satisfying the position requirements will have certification withdrawn and/or
tasks will be reassigned.
3.9. All individuals performing work affecting quality will be qualified for the tasks assigned.
Where necessary, training will be given to individuals regardless of whether they are
permanent, temporary, or contract, etc.
3.10. A job profile or position description will exist for each position and a list of individuals
filling those positions will be maintained. It is the department manager's responsibility to
create and/or update the job profiles for his/her department. As a minimum, each job profile
will contain:
A) Authority
B) Responsibilities

SUBJECT: NO. QPM-18
TRAINING REV. E
PAGE 3 of 3
C) Education or Skill and Qualification requirements
D) Experience requirements
3.9. An employee data record which shows the current job title, and other pertinent data, will be
completed for each employee. Whenever an employee is promoted, or has a job function
change, the employee file will be updated. The responsible manager will sign, signifying
that the employee has demonstrated his ability to satisfy the job requirements of that
position. On an annual basis, all employees receive a formal evaluation related to their job
assignment and training requirements.
3.10. Informal training may take place in each department, as desired, in order to enhance skills or
knowledge. This training need not be documented, however, on-the-job training used to
meet training requirements for a position must be documented.
4.0 RECORDS
4.1. Records of training and qualification must be retained and readily available.
4.2. When an employee transfers to another department or location, the training records should
be forwarded to the new supervisor. A copy of the records should be kept by the previous
supervisor or in a central controlled file so evidence of past qualification can be
demonstrated if necessary.
4.3. Employees should obtain a certificate of training (or other documentation) from each
training course completed. The employee should retain these certificates and give a copy to
their supervisor for inclusion in their personnel file.

SUBJECT: NO. QPM-19
SERVICING REV. D
PAGE 1 of 2
B 94-021 Formatting J. Busche 1-10-94
C 94-045 Update Sections 2.3, 4.0; Add Section 4.1 J. Busche 10-27-94
1.0 POLICY
Baker Hughes INTEQ assures that servicing, when specified in contracts, is performed by qualified
individuals and meets specified requirements.
2.0 REFERENCES
2.1. n/a
3.0 REQUIREMENTS
3.1. When servicing is specified in customer contracts, a local procedure will describe the
requirements for servicing and how servicing is performed, verified and reported to assure
that requirements are met.
3.2. Normally, activities, including what is commonly referred to as services, performed by

operations personnel (Field Service Engineers, Directional Drillers, Fluids Engineers, etc.)
to satisfy customer contracts would not be servicing as intended by this section of the QPM,
but would be considered part of our process of providing drilling related activities that are
covered by section 9 of this QPM. Servicing covered by this section is not normally
performed by Baker Hughes INTEQ, although may be so on rare occasions. When it is, the
requirements of this section will apply. Servicing as intended by this section includes after
sales support and ongoing maintenance (but not warranty repair) of products. Local facilities
do not have to develop service procedures until a contract for servicing exists.
3.3. Each facility shall ensure that all contracts are supported with the required resources for the
effective management and operation of all services provided to the customer.

SUBJECT: NO. QPM-19
SERVICING REV. D
PAGE 2 of 2
3.4. Only trained and qualified personnel will be used to:
A) Perform tests, inspections, or repairs, on any Baker Hughes INTEQ product;
B) Operate Baker Hughes INTEQ equipment at customer installations;
C) Maintain effective operations and technical support to both customer and company
personnel involved in working with, or delivering the service.
3.5. Baker Hughes INTEQ will ensure that all equipment/product used in the provision of any
service complies with contract requirements. Each facility will ensure that any special
customer specifications or requirements are met and controlled for the contract duration.
3.6. All inspection, measurement and test equipment used during the provision of any service
will be maintained under Calibration Control to ensure that all inspections, measurements or
tests undertaken produce accurate results.
3.7. Baker Hughes INTEQ will ensure that any information or data which is relative to the
successful performance of services, or has been requested in customer specifications, is
documented and available for review. This information or data will be traceable to the
customer contract/location and shall be retained per contract specification.
3.8. Where necessary, or when specified by the customer, Baker Hughes INTEQ will supplement
the service with additional procedural controls in order to ensure that special requirements
are fully documented and suitably controlled.
4.0 RECORDS
4.1. Record requirements, if any, will be specified in customer contracts.

SUBJECT: NO. QPM-20
STATISTICAL TECHNIQUES REV. E
PAGE 1 of 3
B 94-022 Revise Section 1.0 J. Busche 1-10-94
C 94-046 Update Sections 1.0, 2.0, 4.0, 5.1, Table II J. Busche 10-27-94
D 95-02 Delete Section 4.6.1.2 J. Busche 6-30-95
1.0 POLICY
Baker Hughes INTEQ uses appropriate metrics, statistical measurement and sampling techniques to
measure various key processes such as product acceptance, process verification and capability,
reliability, etc. Where required, however, 100% verification occurs. Statistical reports are used for
decision making where appropriate and will be made available to management for review.
2.0 REFERENCES
2.1. n/a
3.0 REQUIREMENTS
3.1. Each location will evaluate the need for statistical techniques for establishing, controlling
and verifying process capability and product characteristics. Procedures will be developed to
implement and control the use of statistical techniques.
3.2. Inspection and testing.
3.2.1. Inspection and testing will be performed in accordance with all requirements. API
products will be sampled using API product specification requirements. Inspection
and test requirements for other product certification or as specified in contracts will
be adhered to. Sampling will not be done when 100% verification is required.
3.2.2. A sampling plan indicates the number of units from each lot to be inspected and the
criteria for determining the acceptability of the lot (acceptance and rejection
numbers)

SUBJECT: NO. QPM-20
PAGE 2 of 3
3.2.3. The term “lot” shall mean a collection of “units of production” or supply from
which a sample is to be taken. Each lot shall, as far as practical, consist of units of
product of a single size, type, grade, and composition manufactured under
essentially the same conditions and at the same time.
3.2.4. The inspection level determines the relationship between the lot size and the sample
size. Inspection levels for Baker Hughes INTEQ are established from recognized
statistical sampling plans.
3.2.5. Sampling plans established in this document are applicable, but not limited to
inspection of the following:
A) End items
B) Raw materials
C) Component parts
D) Materials in process
E) Purchased material/items
3.2.6. Samples to be inspected shall be as randomly as possible selected from the lot and
shall represent the entire spectrum of stacked, layered, or jumbled parts.
3.2.7. Samples shall be drawn after all the units comprising the lot are completed.
3.2.8. The lot sizes established may be superseded by documented engineering

specifications or customer contract.
3.2.9. When defects are found during sampling, it will be acceptable to screen the entire
lot for the discrepant attribute accepting good parts and rejecting only the
nonconforming parts.
3.3. Acceptable Quality Level (AQL) Determination
3.3.1. Acceptable Quality Level is the maximum percent defective that, for purposes of
sampling inspection, can be considered satisfactory as a process average.

SUBJECT: NO. QPM-20
PAGE 3 of 3
3.3.2. Baker Hughes INTEQ shall normally use an AQL of 1.0 or lower unless otherwise
specified by Quality Assurance, Management or Engineering.
3.3.3. Large lot quantity materials, or others, where evidence shows very minimal
discrepancy history, can use alternate sampling criteria. This might include Dock-
To-Stock, Alternate Lot Sampling, etc.
3.4. Statistical Process Controls (SPC)
3.4.1. Statistical Process Controls (SPC) are applied when their use will aid Baker Hughes
INTEQ in ensuring that a process is under control, and when its use will minimize
variation. The use of SPC will be according to local procedures.
3.5. Performance Measures
3.5.1. Services provided by Baker Hughes INTEQ may be subject to Performance

Measures which are focused on establishing performance trends. The continual
monitoring of Performance Measures ensures that any deficiencies can be identified,
and that resources are applied to correct those deficiencies, in a timely manner.
Each facility is responsible for identifying the need for the use of statistical
techniques or performance measures and will develop local procedures for this use.
4.0 RECORDS
4.1. Records of process control and product acceptance will be retained.

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QUALITY

Uncontrolled when printed.

E 95-103 Update Sections 4, 5, and 14 J. Busche 8-31-95

F 97-004 Update Sections 1 and new cover signature K. Earle 5-8-97

G 98-001 Rewrite of QPM K. Earle 10-1-98

SECTION REV DESCRIPTION

POLICY C Quality Policy Statement

MANAGEMENT RESPONSIBILITY REV. G

REV QCN AMENDMENT DETAIL APPRVL DATE

D 95-54 Update organizational charts J. Busche 6-30-95

E 97-002 Update organizational charts K. Earle 5-9-97

F 98-001 Rewrite of QPM K. Earle 10-01-98

G 00-003 Revised Policy Statement, 2.0 K. Earle 8-23-00

1.0 BAKER HUGHES INTEQ QUALITY ASSURANCE SYSTEM

2.0 QUALITY POLICY STATEMENT

3.0 RESPONSIBILITY AND AUTHORITY

President of Baker Hughes INTEQ:

A) Approves and supports the quality policy.

B) Champions quality issues in the quality steering committee.

MANAGEMENT RESPONSIBILITY REV. G

Director of Quality Assurance

B) Provides guidance and support to local facilities in their implementation of quality

C) Directs quality assurance activities in the design, manufacture and procurement of

A) The steering committee, consisting of the INTEQ leadership team, provides

B) Coordinating committees develops objectives and provides goal leadership.

C) Local quality councils deploy goals and objectives assuring implementation of

B) Local management appoints and supports local quality representatives.

MANAGEMENT RESPONSIBILITY REV. G

C) Conducts and documents local quality reviews

Local Quality Assurance Responsibility

B) Represents customer quality needs/expectations within Baker Hughes INTEQ.

C) Creates local quality procedures and work instructions

A) Understand the company Quality Policy.

B) Understand and follow department procedures and work instructions.

C) Support and participate in quality processes and goals.

4.0 VERIFICATION, RESOURCES AND PERSONNEL

MANAGEMENT RESPONSIBILITY REV. G

5.0 MANAGEMENT REPRESENTATIVE

A) Initiate action to prevent nonconformity.

6.0 MANAGEMENT REVIEW

MANAGEMENT RESPONSIBILITY REV. G

C) Information based on customer feedback.

D) The degree of implementation and effectiveness of the quality system as determined

F) Other topics as deemed necessary by local management, the quality representative, or

Management Review records shall be maintained.

QUALITY PROGRAM REV. F

E 98-001 Rewrite of QPM K. Earle 10-01-98

f 00-003 Update Sections 1.0 & 1.5 K. Earle 8-23-00

1.1 QUALITY SYSTEM

The main functions of the Quality Assurance System are to:

A) Provide a documented and uniform system incorporating specific controls and

B) Effectively implement a documented quality system throughout the company.

Be sure this is the latest revision of this document!

QUALITY PROGRAM REV. F

F) Establish quality interface control between Engineering, Manufacturing Engineering,

H) Report quality system status to appropriate levels of management on a continuing

K) Provide a common language for quality assurance activities.

1.2 THE DOCUMENTED QUALITY SYSTEM

Be sure this is the latest revision of this document!

QUALITY PROGRAM REV. F

1.3 ELECTRONIC DOCUMENTATION

1.5 QUALITY PLANNING

A. What the customer requirements are.