Integrated Management System

Quality and Environmental Management Manual for

Vattenfall Power Consultant AB
CONTENTS

INTEGRATED MANAGEMENT SYSTEM ...................................................................... 3

ORGANISATION ............................................................................................................ 4

MANAGEMENT RESPONSIBILITY ............................................................................... 4

MANAGEMENT REVIEW............................................................................................... 5

HUMAN RESOURCES................................................................................................... 5

HEALTH AND SAFETY.................................................................................................. 6

CONTRACTS REVIEW .................................................................................................. 6

DESIGN CONTROL ....................................................................................................... 6

DOCUMENT CONTROL ................................................................................................ 7

PURCHASING................................................................................................................ 7

CONTROL OF CUSTOMER-SUPPLIED PRODUCTS .................................................. 7

PRODUCT IDENTIFICATION AND TRACEABILITY ..................................................... 7

PROCESS CONTROL ................................................................................................... 7

INSPECTION AND TESTING ........................................................................................ 8

CONTROL OF NON-COMPLIANCE’S........................................................................... 8

CORRECTIVE AND PREVENTIVE ACTIONS............................................................... 9

PRESERVATION OF PRODUCT................................................................................... 9

INTERNAL ENVIRONMENTAL, HEALTH & SAFETY AND QUALITY AUDITS ............ 9

2 (9)
Integrated Management System

The Management System for Vattenfall Power Consultant fulfil the requirements set in the
standards ISO 9001:2000 and ISO 14001:2004 as well as the Swedish regulation AFS
2001:1 (Occupational Safety and Health).

To obtain a system that is comprehensible, understood by the employees, flexible and user
friendly, the system is accessible on Vattenfall Power Consultant's intranet. This is the main
avenue to obtain information about the management and control of Vattenfall Power
Consultant operations. The system is easy to access and the computerised Management
System also provides opportunities for customer focus, information and continual
improvement. Revisions are on line and can be carried out rapidly.

To be able to achieve this, all processes within Vattenfall Power Consultant's operations
have been identified and documented procedures for these processes have been
established.

The processes that have been identified within the overall Vattenfall Power Consultant
operations are one main process: Project execution and the following supporting processes:
Business Development, Human Resources, Finance and IT.

There is also a special process for managing and control of the organization, the
Management Process as well as a process for control of Design and development activities.

All processes are built to meet the Plan, Do, Check, Act-circle.

To be able to manage operations within Vattenfall Power Consultant that have been
identified to cause major environmental impacts, and to ensure that procedures are in place
to prevent environmental impact and compliance with laws and regulations, certain special
procedures have been put in place for the following:

- Routine for environmental management with procedures for environmental issues,

environmental management program, communication with customers regarding
environmental issues and emergencies.
- Public documentation of Vattenfall Power Consultant’s environmental management
program and improvement efforts such as annual environmental reports etc.
- Legislation and other requirements
- Compliance
- Hazardous material management
- Waste management

Procedures for handling of environmental issues, environmental non-compliance and training

in environmental awareness are integrated into the overall system. Similarly, health and
safety issues are also integrated into the overall system.

The Management System is continually checked with respect to efficiency and compliance in
accordance with predetermined plans and modified when needed.

3 (9)
Operations are conducted in accordance with the procedures and guidelines of the
Management System, unless agreements have been made with the customer to use other
management systems for specific projects. If this is required, then it must be clearly stated in
the Request for Proposal or in the Contract.

It is each supervisor's responsibility to ensure that the employees have good knowledge of
the system and that the operations are in accordance with the system.

Quality plans are created for larger projects that require extensive management. The quality
plan will include information regarding project staffing, organisation, scope of work, project
procedures etc.

Quality plans are based upon ISO 10005 and are assembled in co-operation with the
customer, to be able to include all customer requirements during the completion of the
project.

The quality plan takes precedence over other documentation with regards to work on that
particular project. The quality plan is signed off by the Vattenfall Power Consultant C.E.O.
upon approval by the company overall quality and environmental management officers.

Organisation

The company is organised into eight different business areas: Kärnkraft (Nuclear), Energi &
Process (Thermal), Vattenkraft (Hydropower), Vindkraft (Windpower), Elnät (Power
Networks), Infra-Anläggning (Infra & Civil Engineering), Business Development and
International.

Within business area Thermal there is a unit known as the Combustion Technology in
Nyköping, Sweden. This unit has an accredited laboratory that fulfils SWEDAC's
requirements for the analyses being performed.

Management Responsibility

The organisation and key operational procedures as well as rules and regulations with
respect to the management of the operations have been established in a number of
Instructions and Guidelines with both company-wide and business area applicability. These
Instructions and guidelines are controlled by the overall company quality and environmental
management officers and approved by the company C.E.O.

The company overall goals are expressed in the company vision and mission,
environmental- quality and health and safety policies that are established by the company
C.E.O. Reviews are performed annually and the documents are updated when specific
issues arise.

The C.E.O. is responsible that measurable objectives are established and that the whole
operation is monitored and compared with set targets and policies.

4 (9)
The C.E.O. has appointed a company-wide quality manager and a company-wide
environmental manager. The C.E.O. has delegated the responsibility and authority for the
development and improvement of the company Management System to the quality manager.

The responsibility for the implementation of the Management System rests upon each line
manager. Each line manager shall ensure that, within the staff, affected personnel have
adequate proficiency and knowledge to comply with the requirements set forth in the
Management System.

Project managers are responsible for that environmental issues and legislative requirements
are identified for each project and that the environmental checklist is used.

Management Review

The quality and the environmental management officers are responsible for co-ordinating
internal audits of the Management System in accordance with set schedule. The results from
completed audits form the database, from which the C.E.O. will follow up the audit and make
decisions with respect to corrective actions and improvements. The company management
performs the management review quarterly. During these reviews, the quality and
environmental officers present the following:

- Results from the internal audits and any corrective or preventive measures taken.
- Information to what degree general and specific environmental targets has been
achieved.
- Evaluation of the layout of the Management System and suggestion for improvements.
- Questions raised by interested parties.

Human Resources

Vattenfall Power Consultant's human resources policy is based upon the view that the
company's main resource is its personnel. Vattenfall Power Consultant stresses the
opportunity to provide the personnel training and career development to more complex tasks
within the company.

When there is a need for additional professional proficiency, then the company policy is to
prioritise training of in-house personnel and secondly to recruit outside the company.

The employees that directly impact the quality on current and future Vattenfall Power
Consultant products and services will have the appropriate training and proficiency. Training
and career development is conducted in a planned and systematic manner. The annual
business plan process, preceded by supervisor-employee agreed targets, sets the structure
for this process.

5 (9)
Health and Safety

Control of the environment in which the personnel works, is an important factor for obtaining
safety, to minimise work-related injuries and also for achieving satisfied employees. To be
able to create a safe working environment both mental and physical impacts are considered
when planning and executing a project.

The requirements in AFS 2001:1 are therefore included in the procedures and guidelines for
Vattenfall Power Consultant's operations.

Contracts Review

All proposals shall be based upon a detailed budget for the completion of the project. Before
proposals are submitted, the proposal manager and the manager responsible for approving
the proposal review these jointly. Additional reviews have to take place later before the
contract is signed

To ensure that the final contract is in accordance with the proposal, the project manager and
the proposal manager review the contract jointly. These reviews are documented in writing
and archived in the proposal or the project file.

For alterations or deviations from contracts/agreement between Vattenfall Power Consultant

and customer, as well as between third parties and Vattenfall Power Consultant customers,
whose interests are represented by Vattenfall Power Consultant, there are formal
established procedures that must be followed.

Design Control

Projects involving investigations, pre-studies and project planning are the primary services
provided by Vattenfall Power Consultant. Construction of electromechanical, mechanical
equipment, earth and rock works and some heat-generating plants are also major parts of
the operation.

A process for Design and Development activities is developed and implemented.

It is Vattenfall Power Consultant’s goal to provide services that fulfil high expectations with
respect to professional proficiency and that proposed technical solutions stand up to
contemporary demands and opinions with respect to function, ability, environmental
friendliness, value and ergonomics. Solutions provided shall comply with applicable laws and
regulations.

The manager for respective business area within Vattenfall Power Consultant is responsible
that personnel with adequate professional experience, education and availability can
complete proposed and won projects.

6 (9)
Document Control

Vattenfall Power Consultant's operations create a large number of different types of

documents.

Documents that pertain to business operation, management of the different business areas
and project-related documents are examples of documents that need to be handled in an
appropriate manner. Management of controlling and reporting documentation, including the
procedures for how these types of documents are registered, archived, maintained and how
withdrawal of obsolete documents is managed, is described in a general routine. Specific
project-routines for handling of documents are established in accordance with the general
routine.

Purchasing

Purchases follow the procedures set forth for the company, unless other agreements were
made with the customer, and ensures that:

• Suppliers with adequate knowledge and experience are utilised,

• That appropriate requirements are put forth and
• That the supplier has an efficient management system that fulfils Vattenfall Power
Consultant's requirements for quality and environmental compliance.

Control of Customer-Supplied Products

The requirements set forth in ISO 9001:2000 apply to customer products that are part of the
final product delivered to the customer. Customer-supplied documents, drawings etc. are
managed in accordance with the section Document Control.

Product Identification and Traceability

The Companies Management System provide for Identification and traceability. If a customer
requests, Vattenfall Power Consultant can implement special procedures for traceability of
products in the project.

Process Control

The processes within Vattenfall Power Consultant's operations have been identified and
descriptions for the procedures within these processes have been established.

7 (9)
The processes that have been identified within the overall Vattenfall Power Consultant
operations is one main process:

Project execution

and the following supporting processes:

Business Development, Human Resources, Finance and IT.

There is also a special process for managing and control of the organization, the
Management Process as well as a process for control of Design and development activities..
All processes are built to meet the Plan, Do Check, Act-circle.

Inspection and Testing

Vattenfall Power Consultant’s products are either services in certain functions for the benefit
of a customer, or result-oriented work presented in a report format.

When providing products in the form of services for the benefit of a customer the
requirements in the actual standard for control and testing are followed.

For result-oriented work, the requirements set in the procedures in the Management System
for review and approval of documents are followed.

Control of Non-Compliance’s

Identified non-compliance or by customer noted non-compliance with respect to agreed

requirements or conditions for services or products provided by Vattenfall Power Consultant
must be managed systematically in accordance with approved procedures that ensure that:

• the non-compliance is analysed, corrective action is taken when a non-compliance is

identified, if possible, as needed,
• changes are made in the agreement with the customer,
• experience of the non-compliance is documented within Vattenfall Power Consultant
to prevent future similar non-compliance’s and
• the Management System is adjusted when identified non- compliance’s necessitate
adjustments of the Management system.

In contracts with a customers or where Vattenfall Power Consultant has signed a general
agreement of assignments, Vattenfall Power Consultant will draw up, if the customer so
requires, conditions and routines ensuring secure and correct handling of non-compliances.
These conditions and routines shall safeguard the customers involvement in the handling of
non-compliances.

8 (9)
Corrective and Preventive Actions

Due to the nature of Vattenfall Power Consultant’s products that are primarily services with a
small degree of repetitiveness, the need for corrective and preventive actions are primarily
within issues relating to work procedures and procedures for interaction with customers.
Primarily, the main source of information for corrective action, are internal audits of quality,
environmental issues and health and safety within Vattenfall Power Consultant as well as
feedback of experience gained from completed projects and customer inquiries.

Preservation of Product

Vattenfall Power Consultant's products are either services in certain functions for the benefit
of a customer, or result-oriented work presented in a report format.

For these products, no special procedures are necessary beyond those internal Vattenfall
Power Consultant procedures set forth for document and data handling.

In the case where the customer calls for specific requirements for preservation of products or
information, this will be covered by the contract.

Internal Environmental, Health & Safety and Quality Audits

Internal audits are performed in accordance with a set audit plan. Each business area is
audited at least every third year. Major changes in organisation or personnel may justify
audits with a shorter time interval than three years. Large projects can be audited with
respect to fulfilment of the management system and additional requirements in the contract
or other agreements with the customer.

Personnel conducting the audits have been trained especially for this task and they are
independent of the audited operations and organisational units.

There are documented procedures describing how the audits are to be conducted and
documented.

The result from the audit is presented to the audited unit as well as Vattenfall Power
Consultant's management, who has the discretion to implement corrective measures.
Corrective measures may also include changes in procedures or documentation of the
Management System.

Audit reports are part of the data that is used for the Management Review.

Environmental, health and safety and quality audits are tools for the Vattenfall Power
Consultant management to measure the efficiency of the internal operations to be able to
satisfy customers and other interested parties.

9 (9)