Quality :

Introduction to the Westad Quality system  

 

1.0 HISTORY
1.1 COMPANY MISSION, STRATEGY AND VISION
1.2 QUALITY POLICY
1.3 REPRESENTATIVE OF THE MANAGEMENT
2.0 QUALITY SYSTEM
2.1 DESCRIPTION OF DOCUMENTS IN THE QUALITY SYSTEM
2.2 DISTRIBUTION AND REVISE
2.3 STATISTICAL SYSTEMS
2.4 DOCUMENTS
2.5 NON-CONFORMANCE REPORT SYSTEM
2.6 CORRECTIVE AND PREVENTIVE ACTIONS
2.7 VERIFICATION AND REVIEW OF QUALITY
2.8 CONTINOUOS IMPROVEMENT FOCUS
3.0 ORGANIZATION

1.0 HISTORY

Westad Industri A/S was established in 1895 in Geithus where the firm also is situated today. The local wood-processing industry formed the basis for the activity in the beginning. The products were valves and pipe components then, as now. As the ship industry in Norway grew, products for this industry were developed and like many other ship equipment manufacturers, Westad kept contact and control of the marked when shipbuilding was moved out in Europe and Asia. Today the company is exporting about 75% of total production to these markets and is one of the leading suppliers of cargo valves for chemical, LPG, LNG-ship and terminals.

The production activity of oil and gas on the Norwegian section of Continental Shelf opened a new marked for Westad. The first delivery was as early as in 1978 for the Statfjord B platform. Since this Westad has delivered valves for almost every installation on the Norwegian section of Continental Shelf. The demands for anticorrosion, longer lifetime and maintenance free products have led to Westad developing products in constant more "exotic" materials, latest in titanium. The experience with titanium has also resulted in considerable deliveries to the South American mining industry.

As one of the Norwegian pioneer suppliers to oil and gas activities on the Continental Shelf, Westad was one of the first ones to get a certified QA-system. Westad was already in 1985 accepted according to NS 5801 by DnV. Our first certificate actually has number 006!

From the beginning and until 1985 Westad Industri AS was family business. BIRD TECHNOLOGY AS took over as a sole owner in 1985. In 1994 all BIRD's subsidiaries were sold and Westad was taken over by the American concern Mark Controls from 1.1.94. Mark Controls again was however bought up four months later by the exchange listed company Crane Co. which owned Westad Industri A/S until 2006. In April 2006 Westad was acquired by the Norwegian based Technor group.

The Technor group is an international technology group with its head office in Stavanger and with its own operational businesses in Norway, France, the UK and the United Arab Emirates. The Group has two core areas, ElectroTech and FlowTech, and two main markets, oil & gas and LNG.

1.1 COMPANY MISSION, STRATEGY AND VISION

Westad's Mission

To provide excellent financial performance and to assist other Crane Valve companies in achieving their strategic goals. For this Westad provides excellent products and services with a continuous customer focus.

While meeting its primary responsibilities, Westad is to serve its employees, end-user industries, suppliers and community with support for continued development and improvement.

Strategy

Westad currently provides specialised, engineering-intensive and quality-intensive butterfly valves and ball valves to the tanker marine and oil and gas industries. Typical marine applications include gas-cargo systems, chemical cargo systems and ballast systems. The products for the oil and gas industry are applied in process and utility systems. Where required to satisfy customer requirements for a complete package, the Westad-made product offering is complimented with private labelled valves, name brand valves, actuators and actuator systems.

Westad markets its products mostly through the pursuit of projects. Sales effort comes from direct employees and commissioned representatives. Buying influence resides with end-users, engineering consultants, and contractors (shipyards). The strength of the Westad brand name in the marine industry and the Norwegian offshore industry is a major factor in Westad's market position. In executing its market strategy, eBusiness will become an increasingly important tool.

Westad has an integrated manufacturing operation that takes bar material and castings and completes the product through assembly, testing and delivery.

Westad relies heavily on its internal engineering department for application-engineering support, manufacturing support and new product development.

Westad maintains a quality system in accordance with ISO-9001. The (DNV) certification is current. A formal Operational Excellence program is in place to co-ordinate continuous improvement initiatives. The program focuses on production and as well as transactional improvement opportunities.

Westad supports its greater community (employees, suppliers, industry and local civic community) in a variety of ways. The objective of these activities is to contribute to the progress of the constituents in their specific circumstances.

Vision (summary)

Westad's general objectives are formulated in support of profitable growth, broadening of the business base, fixed cost reduction and profitability enhancement.

1.2 QUALITY POLICY

As one of the Norwegian pioneer suppliers to oil and gas activities on the Continental Shelf, Westad was one of the first ones to get a certified QA-system. Westad was already in 1985 accepted according to NS 5801 by DnV. Our first certificate actually has number 006! Now we are accredited for ISO 9001.

We have designed our quality system on basis of what we do in practice, and it is proved through first and third party audits that we exceed the minimum requirements of ISO 9001, by far.

Vision:
The company, as a provider of flow control equipment, shall be focussed on customer needs and their constant search for improved products. We shall support our customers with flexible manufacturing resources that is anchored in know-how-intensive applications for the marine shipbuilding and Oil & Gas installations. The quality policy and the quality of the relationship with employees, customers and suppliers shall support the performance goals of the firm.

Targets:
· Westad shall meet all the mutually agreed customer requirements.
· Westad's on-time delivery shall exceed 95% of all deliveries from suppliers, internally and finally to customer.
· Westad shall prove continuous development of products, services and know-how.

Strategy:
· All employees are taught to be customer focused. The following questions are asked:
· Who are my customers? (internally or externally).
· What do I deliver to them?
· What are the criterias for a good delivery?
· The quality system is fully owned and managed by each member of the management.
· The quality system includes the process-improving function of: Operational Excellence, Lean Thinking, Six Sigma, Smed, MCRS, KPI to eliminate waste in processes and to improve management.
· Westad shall be in the front among the valve companies of using eBusiness as strategic tool to give the customer easy and quick access to updated information and services.
· The production cost of each product is constantly monitored.
· One department is constantly working with product development.
· We are constantly developing existing know-how databases, and also creating new ones.
· We have a well-implemented instruction & procedure system available on our intranet.

1.3 REPRESENTATIVE OF THE MANAGEMENT

The Quality Manager has the responsibility to update the quality system according to the demands of ISO 9001.

Further, the Quality Manager has responsibility to monitor the function of the system and that it is being followed up to in all parts of the organisation. If this is not the fact, the Quality Manager has authority to implement necessary initiatives. The effect of the quality system shall be monitored by the Quality Manager and the results shall be reported regularly to the management (ref. 1.5 The Management Evaluation).

1.4 THE MANAGEMENT'S EVALUATION

At least once a year the management has to evaluate the quality system. The Quality Manager is responsible for this. The evaluation shall cover, but not be limited to:

- Previous Mng. review.
- Reports from last internal audit.
- Reports from last third party audit.
- Review quality policy.
- Review quality targets and achieved results with plans of action.
- All major guarantee matters.
- Process performance and product conformity.
- The suitability of the quality system.
- Decide and document actions to maintain or develop the requirements for the QA system.

A document containing the guidelines for this meeting is internally available on the server.


2.0 QUALITY SYSTEM

Westad's quality assurance system is described in the Quality Handbook and in the Instructions available on Intranet.

The instructions are divided into fields described below and shall be composed by the person responsible to perform whatever described or by the superior of the person concerned. The President approves instructions, which are composed by his closest subordinates. The remaining instructions are to be approved by the Quality Manager. Each section leader is responsible for the instructions to be followed.

Definition of quality:

· The ability to deliver products or services that meets the agreed, written, spoken or implicitly requirements or expectations.

The quality system is built on the following principles:

· Quality includes all processes from product development to expiration of the guarantee period of a sold product
· Quality control is mainly own control by the one who is performing the work
· Quality shall not be controlled on the way into the system

The quality system shall be the management's tool for:

· Reaching the stated quality policy
· Reveal potential improvements in processes
· Supporting our customers
· Control of all operative activities in the company
· Ensuring that decisions made by the Management are implemented
· Optimise the profit


2.1 DESCRIPTION OF DOCUMENTS IN THE QUALITY SYSTEM

The quality assurance system at Westad Industri A/S shall follow the relevant parts of ISO 9001.

The quality assurance system is described as follows.

Quality Handbook

The quality handbook describes our quality system and is built upon our existing instructions, routines and documents. The intention is a superior description facing our employees and customers. The handbook is divided in 6 chapters, which each describes the different parts of the company's activities. The quality handbook is published in Norwegian and in English. By departure of the two handbooks, the Norwegian is the prevailing.
Instructions

Instructions describe how we perform our work. The instructions are divided in areas. The Quality Manager files paper copies of all instructions. The instructions are saved on the common area on the net server as *.pdf-files. When a file is saved as *.pdf, it is not possible to make changes and you can only reprint the file. Each user have easy and quick access through our intranet.

  * IN Purchase ML Painting RE Repairs
* IS Installation MO Assembly SE Service
* IT Data and safety MS Marketing and sales SP Special process
* KO Control PA Packing TE Testing
* KS Customer Support PL Planning TI Technical
* KV Quality PE Personnel VE Tooling
* LA Stocking PR Project VH Maintenance
* MA Machining RA Frame agreements ØK Economics

The handbook for Occupational Safety (HMS)

This book is considered to be a part of the quality system, and contains a combination of Government-laws and internal procedures. Reference to this book is made in the Personnel Handbook.

The Personel Handbook

  • This handbook is considered to be a part of the quality system, and contains:
    · Employment-relations, politics, responsibility, insurances,
    · Teaching
    · Regulation of working hours
    · Holiday
    · Leave of absence
    · Reporting of absence
    · Collaborator-talk
    · Dismissal
    · Human Resources-HR (HMS / Internkontroll)
    · Health-service
    · Safety Deputy
    · The Working-Environmental-Committee (AMU)
    · AKAN ( Anti Drug Committee )

The Project Handbook

This book is considered to be a part of the quality system, and describes important topics to be remembered by the Project Managers. References are made to the Westad Instructions whenever it is necessary.

Job descriptions

All employees have a general job description, but the following have a more exact job description: management, administration, foremen and inspectors. The job descriptions shall be filed.

Manufacturing Survey Arrangement (MSA):

The MSA is an agreement between DNV and Westad. We are accredited to do a certain amount of the valve testing on behalf of DNV and their surveyors. Ref. the MSA document in the QA office, and instruction:
KV 013N.
Pressure Equipment Directive (PED)

Our quality system will from spring 2002 allow us to supply products that are covered under the PED. This means that the quality system shall comply with all requirements in the PED. Several instructions are made just for this purpose, but old instructions have also been modified for the new process. The main instructions are TI 010E and TI 003N. The certificate from DNV can document this.


2.2 DISTRIBUTION AND REVISE

The quality handbook
The quality handbook is an open document, which is available for all employees. The handbook is not distributed as paper, but is available on our Intranet. Externally it is available by ordering on our web-site: www.westad.com . We will do an evaluation of the company who makes the requests before we release it.

The handbook for Occupational Safety (HMS)
This book exists in one paper version, and is stored the QA Manager's office. The laws and regulations exist in three copies: QA office, canteen 1. and 3. floor.

The Personnel Handbook
The Personnel Handbook is distributed to all employees in paper version. The revision number is indicated in the document.

The Project Handbook
The Project Handbook exists in paper version only. It is distributed to the Project Managers, Customer Support Manager and Quality Manager. One of the Project Managers has got the revision responsibility. Instructions related to project management are available on intranet.

Department routines
Within each department there are composed routines, which are not included written text in the quality system.

2.3 STATISTICAL SYSTEMS

The following statistical reviews are routinely used to decide on actions:
Weekly Management meeting:
· Sales, Bookings, Work order status, Hour reporting in production, Direct Labour variance, Sold order's status, Supplier delay and performance, Review of valve test performance, Purchase price difference, Backlog and margin, Account receivables, Balance of cash, Exchange rates.

Monthly Management meeting:

· Same content as in the weekly meeting and in addition…
· Monthly report in figures, containing all Key Performance Indicators (KPI) of all departments, review of next month, soft issues. In June 2002, the monthly report contains 65 KPIs reflecting issues of sales, quality, engineering, operational excellence, production, procurement, shipment, financial and helth-safety & environment.
· Review of scrap and rework of production. This is based on our electronic NCR reporting.

2.4 DOCUMENTS

In addition to documentation described in 2.1, existing documents, which each department files and deal with own filing and numbering systems.

The Quality Manager shall control that registration and filing systems for all documents are prepared. The section managers are responsible for establishing a registration and filing system. Each section manager is responsible for that the instructed documentation in the department is executed. Further he/she is responsible for all documentation coming to the department is distributed, announced and made use of, in addition to filing or forwarding.

Registration

All documents showing whether specification demands are fulfilled or not, shall be registered. Documents which shall be managed, include both product and system documentation. That means both documents from customer, authorities, organisations, if possible others, and documents (paper or electronic) composed in the company.

2.5 NON-CONFORMANCE REPORT SYSTEM

The Non-Conformance Report System is Westad's system for detecting, disposal, corrective actions and preventive actions. The system is fully electronic and includes the possibility for sending by e-mail to subcontractors etc.

The Quality Manager is responsible for determining the method, and also the survey and follow-up actions in this process. (Ref. Instruction KV 001N). The purpose is to increase the profit and quality in such way that it supports all parties. Today we have the proper tools for this task, in form of statistical analysis tools and process-improvement tools. Deviation treatment shall also secure that documents and products with deviation are not used in the further production.

All manufactured products received goods, drawings, equipment and remaining documents, which are not in accordance with specified demands, shall be marked and held separately or destroyed. This is to avoid unacceptable departures being used in further production or sent to customers.

2.6 CORRECTIVE AND PREVENTIVE ACTIONS

Corrective actions

Action to remove the cause of the existing problem:
When the deviation-cause is investigated, a proposal for necessary corrective actions shall be drawn up to avoid the same deviations arising again. Proposals for corrective actions shall be discussed with topical departments, before set into action.

The system for corrective actions includes finding the cause of the deviation and go through with necessary changes, this passes for both the management system as for the products in the company. When more extensive actions shall be effected, a meeting will be called to discuss necessary/desirable quality and productivity improvements. The participants in these meetings are normally the Quality Manager, Production Manager, Director of Engineering, purchaser, foreman and QC inspector.

Preventive actions

Actions to remove the potential risk of problems and deviations:
The preventive work is secured by the weekly quality fora, quality audit reports, guarantee costs analysis, failure production costs and reports from the quality group being examined by the management to find potential causes for departure, then to decide what could be done to avoid this happening again. These reports form the basis of the evaluation by the management.

2.7 VERIFICATION AND REVIEW OF QUALITY

A continuously process of updating instructions to improve the quality of our products shall be in progress. Our own and the customers experience with our products shall be brought into consideration.

The Quality Manager is responsible for planning and arranging all quality revisions. The revision shall be executed by a revision committee or by persons authorised by the Quality Manager.

The quality revision shall also be executed to control that the system is functioning according to the given quality purposes in the company and general demands to quality assurance.

Weekly quality meeting (QA-fora)

The Quality Forum is an ongoing / weekly event with the purpose to discuss and decide upon practical issues related to QA basically in the production, but also in other departments. The focus is on Lean Thinking, international and local standards. The issues are driven by a continuos need to bring our products in line with the always changing process descriptions, which again are driven by changes in customer needs, improvement proposals, etc. The issues are also driven by non-conformances. Between 3 and 7 new items each week.

Weekly and monthly Management meeting

As described in 2.3.

Internal audit (1. party)

The internal quality audit includes all elements in the quality assurance system. The audit shall be effected periodically according to plan. The audit shall be executed in each department and should also be executed if important conditions for the system have changed or when essential corrective actions are carried out. Several audits of processes covering several departments may replace the audit in each department.

The results of the audits shall be documented and be exhibited the responsible within each of the revised areas. The responsible for the field, shall do corrective actions according to the result of the audit within a determined time.

External audit (2. party)

Audit of subsuppliers shall be executed in the extent this is necessary to secure the final product. The Quality Manager is responsible for planning and execution of external audits together with the Purchase Manager. All audits shall be documented.

Our customers have the right to undertake an audit of our company if this is specified in the actual contract.

Authority audit (3. party)

DNV - Det Norske Veritas is executing the 3. party audit at Westad on yearly basis. All reports are registered.

2.8 CONTINOUOS IMPROVEMENT FOCUS

From 12-2001 Westad has employed a full time function working with continuous improvement. This function is the contact point with Crane Co.'s comprehensive improvement system: Operational Excellence (OPEX). The efforts are driven both from Westad and Crane Co. The focus is on making improvements from looking into process improvements by using known and new tools as Six Sigma, Smed, Lean Thinking, etc. We see this function in direct connection with the ISO 9001:2000.

3.0 ORGANIZATION

Chart as per 2008-08-27


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