Corrective Action
Corrective Action is an improvement or series of improvements to an Organization’s business processes and procedures to correct the root cause(s) of a non conformance and to prevent their recurrence.
Posts
Best Practices in Project Management for Nuclear Engineers
/in Project Controls /by Patrick DubreuilCalling all Nuclear Engineers and Scientists! Join PTAG this fall for the online course through Ontario Tech University on Best Practices in Project Management.
Non-Conformance
/in Efficiency Note, Project Controls /by Amraj SahotaNon-conformances are problems that have been found and need be addressed. They can be found anywhere – in a product, in service delivery, in work execution, in a process or even in the Quality Management System itself.
Owner Construction Management Performance Improvement Program
/in Case Study /by Amraj SahotaOverview
Company – Joint Venture, Oil Producer and Chemical Company
Industry – Advanced Chemical Refining
Category – Construction Management
Project Budget – $215M
Goal – Recover Schedule, Minimize Cost Over Runs, Improve Safety and Quality, Improve QA/QC, Develop Risk Mitigation Plans.
Obstacles – Existing supplier contracts lacked appropriate incentives and disincentives. Full craft employment issues in the region. Site construction culture not contusive to injury prevention, inexperienced and understaffed JV project management. Undersized steam plant to accommodate new capacity.
Solutions – Added Construction management teams between JV team and suppliers. Implements new Safety Plan, Re-Baseline of Schedule and Cost, Implementation of Project Controls including Cost/Schedule curves, comprehensive Dashboard and weekly reporting.
Results – Improved Safety results to lower than industry averages. Recovery of Schedule by two months, Reduced RFI’s and NCR’s, Improved craft productivity, Daily Progressing Accurate Cost Forecasting.
Goals
Improve all aspects of Construction Management to Deliver Project
- Establish and expand an experienced construction management team to replace seconded JV staff
- Improve JV decision making timeliness
- Establish reliable budget and schedule with a goal to recover as much schedule as possible
- Improve procurement and project controls
- Work with suppliers to develop Integrated QA/QC to reduce NCRs
- Improve engineering timeliness, quality and construction reviews to reduce the number of RFI’s and impact on quality, schedule and cost
- Establish and maintain a safe construction site reducing safety incidents for the 190 craft and CM personnel
Obstacles
Management of Change to Achieve Compliance
Challenges to meeting the goals of the project:
- Joint Venture structure impeded decision making and clarity on roles and responsibilities
- Brown field construction site, with complex work processes, multiple contractors and limited room
- Poorly drafted Supplier contracts with no incentives or disincentives
- Tight craft labour market
- Late engineering and procurement
- A culture change was required across the site to improved safety
Solution
PTAG’s Team of On-Site Subject Matter Experts Delivered and Implemented the Program
Reorganized the Joint Venture project management approach, establishing an experienced and expanded construction management team to replace supplement/replace personnel from the JV members. Six-person CM Team included Senior CM, Planner, Cost Engineer, Quality Manager, Safety Manager, Contracts/Procurement Manager
Reorganized the reporting, planning and meeting structures for Site, E&P, GC and Subcontractors to report to and integrate with the new CM Team to improve construction planning, execution, quality and safety.
Implemented a new GC led safety program based on “Beyond Zero Accident Techniques” with full site training. New experienced CM Team Safety Manager integrated Site and GC safety teams into a single team. JV and GC senior management attended weekly safety meetings. Improved the focus on behavior, hazard awareness, safety planning and supervision as key areas for continual improvement. Increased safety supervision.
Developed new manpower plan to attract additional craft including adding a second shift to help recover schedule
Using progress to date, updated engineering and procurement schedules, established a new baseline for project schedule and budget.
Developed a weekly reporting structure based on a one-page Dashboard that provides at a glance information on Highlights, Safety, Milestones, Construction, Engineering, Project Services, Quality, Risk and Commissioning/Start-up Readiness. Details for each Key Result Area contained in eight-page attachment. Trained all site management and supervision on new processes and required reporting
Established Risk Register with weekly updates included in the weekly Dashboard and Report
PTAG PROCESS
SMEs Delivered, Implemented, Administered and Monitored the Program
- Review and Assess
- Report Results
- Develop Program and Training
- Implement and Administer
- Monitor for Results
- Transition for Ongoing Support
PROCESS RESULT
SMEs Delivered and Implemented the Program
PTAG’s Advisory TEAM performed a two-week assessed reviewing contract documents, execution plans, supplier agreements, procurement schedules project, organization structure, estimates, budgets, schedules, craft productivity and safety plans and performance. We established that root cause to the poor safety, quality, schedule and cost adherence was an understaffed and inexperienced owners team, combined with weak supplier agreements, poorly developed scope, estimate and schedule with the Engineers and GC along with immature project procurement and project controls.
The solution proposed and accepted was an experienced 6-person CM team located at the project site with direct links to the JV Team for timely decision making to develop and implement a recovery plan. The CM Team implemented a recover plan starting with a new baseline for project budget and schedule, established a safe working environment, focused on engineering deliverables, procurement, quality and improving craft productivity.
RESULTS SUCCESS
- Resolved JV construction management deficiencies
- Developed and delivered construction execution plan
- Finalized Scope
- Established and maintained adherence to new baseline for Schedule and Budget
- Improved Safety performance
- Improved Quality performance
- Eliminated gaps in communication between Owners, Project, Site and key suppliers (E&P and GC)
- Improved Management of supplier contracts
- Implemented project controls with daily progress reporting, weekly reporting, earned value and control
- Improved Risk and Opportunity identification and management
“We now have visibility and confidence in the project’s schedule and budget”
Owner Senior Executive
PTAG provides leading firms in the Power, Oil & Gas, Petrochemical, Mining, and Capital Infrastructure markets with qualified People, efficient Business Processes, and Information Management Systems that ensure consistently successful delivery and efficient operation of major capital projects.
Original Equipment Manufacturer Quality Performance Improvement Program
/in Case Study /by Amraj SahotaCompany – Original Equipment Manufacturer – OEM
Industry – Electrical Generation
Category – Equipment Supply and Installation
Project Budget – Multiple Projects
Goal – Recovery action plan to improve quality performance to re-assure Owner that the OEM can be trusted to provide a reliable and warranted product
Obstacles – Global company with manufacturing facilities in numerous countries supplying equipment
Solutions – Conducted an internal analysis of both historical and active projects and audited their Quality Program. Recommended and supported the implementation of accepted actions items to address gaps in their Quality and Training programs.
Results – Improved quality results to assure Owner that the company can be trusted to reliably deliver on its commitments and jointly develop an “owner specific” approach aimed at improving customer satisfaction.
Goals
Improve Quality and Restore Owners Confidence
- Implement corrective actions to remain equipment supplier of choice
- Continuously improve equipment design and reliability
- Implementation of modern design tools and methods into the Quality program and training to targeted OEM organizational staff
- Develop QA/QC metrics used at different phases of the project and application of a more rigorous in-house inspection program
- Implementation of a revised quality manual to better suit Owner projects, including inspection and test planning early in the project lifecycle
- Minimize financial loss attributed to rework and deficiencies
Obstacles
Management of Change to improve quality performance
Challenges to meeting the goals of the project:
- Differing international interpretations of testing standards
- Compliance with published standards
- OEM Commercial position impacts on technical requirements and discussions
- Fully understanding the root cause in determining the needed corrective actions prior to revisions of the Quality program and supporting documentation
- Demographics associated with the coordination of training on and off site globally and ongoing refresher programs
- Program needed long-term monitoring of Non-Conformances and reporting to ensure continual improvement
Solution
PTAG’s Team of Subject Matter Experts Delivered and Implemented the Program
Original Equipment Supplier (OEM) was constrained from participating in any proposal submissions due to performance related issues until it was demonstrated to the Owner that existing technical deficiencies were addressed, and Quality program was enhanced.
The team developed and implemented the processes and procedural changes required for Quality improvement to their existing QA/QC program and identified areas for improved training opportunities. QA/QC Best Practices were deployed throughout the organization.
Mitigation plan was developed to limit the schedule impact of some of the on-going projects and to meet delivery requirements of future projects.
Identified the need for increased communication and provided a solution plan for a better communication structure to be applied at all levels of the OEM organization
Enhanced risk identification and control process were executed during the detail design, through manufacturing and installation phases
Constructed an internal audit process identifying findings and KPI measurements for improvement throughout all global facilities and on-site project locations. Team coached OEM project staff to identify and understand the planning techniques to mitigate the impacts of Non-Conformances
PTAG PROCESS
SMEs Delivered, Implemented, Administered and Monitored the Program
- Review and Assess
- Report Results
- Develop Program and Training
- Implement and Administer
- Monitor for Results
- Transition for Ongoing Support
PROCESS RESULT
SMEs Delivered and Implemented the Program
PTAG’s TEAM of 3 SMEs identified Quality Management Best Practices, delivered the expertise needed to modernize the organizations Quality Management program which resulted in a significant reductions in NCR’s and restored the CONFIDENCE of the Owner and its representatives
Owner was presented the OEMs action plan to enhance performance, improve quality, productivity, safety and eliminate rework occurrences
OEM welcomed suggested corrective actions from both the PTAG SME’s and Owner representatives to ensure the OEM remained the supplier of choice
Step 1: Define and Implement Your QMS
Step 2: Assess the Maturity of Your QMS
Step 3: Improve Your QMS
RESULTS SUCCESS
- OEM enhanced Owners satisfaction with a modernized Quality Management Program
- Business priorities are now linked in the Quality Management Program when developing and or supplying a piece of equipment
- Since the implementation of the revised Quality program, the organization’s culture continues to improve with the goal of zero Non-Conformance Reports
- Quality Program includes long range business planning objectives and ongoing performance assessments
- Quality program implements ongoing organizational learning, continuous improvement, sustainable work processes, productivity improvements, failure prevention, and conformance to requirements
ACHIEVEMENTS
- In house organization resources trained for assessing and improving the implementation of Quality Management Best Practices
- Performance metrics now embedded in the Quality Management Program
- Organization delivers products that meets Owners and Regulatory requirements
- Organization recognizes the importance of open and collaborative discussions in recognizing Owners requirements and expectations when interpreting technical specifications
- Significant reduction in projects that experienced over budget issues, late start-up, financial losses and unhappy board of directors and shareholders
- Recognized the need to define, identify and continuously improve in order to maintain Owners confidence
PTAG provides leading firms in the Power, Oil & Gas, Petrochemical, Mining, and Capital Infrastructure markets with qualified People, efficient Business Processes, and Information Management Systems that ensure consistently successful delivery and efficient operation of major capital projects.