Inspection Test Plan ITP Manufacturing Process

Inspection & Test Plan (ITP) / Manufacturing Process Quality Plan (MPQP) - training of suppliers to FMC Technologies, Norway QRL-0010001 FMC Standard Administration Requirements - Revision Q, released June, 2013 - Appendix 3 - Quality Requirements, section 11. 1. 1 & 11. 1. 2 - Appendix 4 - Technical Correspondence and Doc. Administration, section 5 Q 00392 – Supplier Inspection & Test Plan Q 00394 – Product MPQP Q 00398 – Process MPQP August 22, 2013 Inspection & Test Plan (ITP)

Learning Objectives • Why and when FMC require an Inspection & Test Plan (ITP) or Manufacturing Process Quality Plan (MPQP). • What the requirements are. • The responsibilities of issue, review and handling. • Why and when FMC require intervention points. • The different types of intervention codes. • Notification requirements – content & communication. August 22, 2013 Inspection & Test Plan (ITP) 2

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Purpose • Inspection & Test Plan / Manufacturing Process Quality Plan is a basis for verifying conformity with specified contractual requirements. • For FMC and the Supplier to establish and agree upon the following prior to production start; • Quality Control activities • Interventions for the Supplier, FMC’s Client and/or Third Party • Intervention points allow the parties to go into different steps in the production process to assure the quality. (mitigating risk) August 22, 2013 Inspection & Test Plan (ITP) 4

Requirement for ITP and/or MPQP • The requirement for ITP / MPQP can be found on the Part Report either by: • Throught DRLs (to be phased out) • Quality specification (Q 00392, Q 00394, Q 00398) • There will be Intervention points on all ITPs / MPQPs • Product-, Project-, and Supplier Criticality decides the level of intervention August 22, 2013 Inspection & Test Plan (ITP) 5

ITP requirement driven through DRLs • Listed in the Part Report referencing a Document Requirement List (DRL). • Requirement will be from QRL-0010001 August 22, 2013 Inspection & Test Plan (ITP) 6

ITP requirement driven through Qspec • Q 00392 • FMC Required ITP template in section 6 • Listing the sequence of inspection and test activities required by Agreement as applicable for the Parts covered by the ITP – – – August 22, 2013 Part Description for the part / group of parts covered by the ITP No Part Numbers listed, but all Parts covered shall follow the same production process, procedures and intervention points ITP may be reused when there are no changes to the above "Yes" or "No" drop down menu for ‘Do the subcomponent (lower level) Part Reports (DBIs) require Q 00392? If so, are the lower level Part Report requirements included in this ITP? ‘ Note: The ITP may contain subcomponent Part Report (DBI) requirements in one single ITP, only if the subcomponent Part Reports (DBIs) require Q 00392 Note: If Q 00394 (for Product MPQP) is on the Part Report for Raw Material, subcontractor of the Raw Material shall provide an MPQP acc to Q 00394 to the Supplier that will ensure FMC approval. Inspection & Test Plan (ITP) 7

FMC required ITP template – Q 00392 August 22, 2013 Inspection & Test Plan (ITP) 8

MPQP requirement driven through Qspec • Q 00398 FMC Required ITP template in section 7 • Applicable to many parts following the same manufacturing process. – For example, welding cladding operation on parts of the same base material may use identical manufacturing processes and procedures. • Supplier performing the actual process is accountable for generating the MPQP and obtaining FMC (and FMC’s Client through FMC, when required) approval. • Supplier may list alternative subcontractors and approved alternate special process procedure numbers. • NOTE Q 00398 shall only be used by suppliers executing document approval through e. SMDR/SMDR, otherwise Q 00394 shall be used to maintain traceability. August 22, 2013 Inspection & Test Plan (ITP) 9

FMC required Process MPQP template - Q 00398 August 22, 2013 Inspection & Test Plan (ITP) 10

MPQP requirement driven through Qspec • Q 00394 FMC Required ITP template in section 7 • Manufacturing process is unique to a specific part. • FMC part number is required on the MPQP document. one PN per MPQP. • Three Types: • • • Standard (any supplier commodity other than forging) Forging MPQ (Qualification) Forging MPQP • Supplier performing the actual process is accountable for generating the MPQP and obtaining FMC (and FMC’s Client through FMC, when required) approval. August 22, 2013 Inspection & Test Plan (ITP) 11

Q 00394 continued • Forging Template (MPQ & MPQP): – Process Parameters: • Section does not apply to induction bends. • Process Parameters G, H, I, L, M, and N do not apply to Forged Bar. Supplier shall state “N/A” for these cells. • All other forging suppliers shall complete all Process Parameters. August 22, 2013 Inspection & Test Plan (ITP) 12

Q 00394 continued • MPQ (Manufacturing Process Qualification): Supplier shall state the mill, starting ingot/billet size, NDE supplier/procedure and heat treatment vendor that will be used. • MPQP (Manufacturing Process Quality Plan): Supplier may list alternative mills, alternative starting ingot/billet sizes, alternative special process suppliers/procedures, and alternative heat treatment vendors. If alternatives are not approved by FMC or FMC’s Client, then the supplier shall be notified through the MPQP review process. Note: Alternative subcontractors may not be allowed forgings that required qualification. The Qualification test report (QTR) will document any restrictions on alternatives. August 22, 2013 Inspection & Test Plan (ITP) 13

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Responsibilities; issue & handling • ITPs / MPQPs shall be uniquely identified and revision controlled documents to ensure proper communication of the latest requirements. • Supplier shall submit an ITP, MPQ and/or MPQP (regardless of type) no longer than two weeks after receipt of FMC PO. – FMC responsible to forward to FMC Client for review if required • ITPs /MPQPs shall be listed on the SMDR (Supplier Master Document Register) /e. SMDR • If any change in manufacturing process on an ITP/MPQP still in use, the ITP shall be revised and resubmitted to FMC for review and approval. (provided that change is applicable for all parts it’s used for, unless issue a new document) August 22, 2013 Inspection & Test Plan (ITP) 15

Responsibilities; Review • Cycle Times • FMC to review and return document to Supplier within twenty (20) Business Days. • Supplier shall re-submit updated document within five (5) Business Days. • For every review cycle (revision) the supplier will receive a DR -4 document (Document Review) from FMC. • The DR-4 document will have an Approval Status Code and may have comments for action or information. • August 22, 2013 The procedure for submitting, reviewing and approving a supplier’s MPQP (Q 00398 or Q 00394) is described in Q 00399. Inspection & Test Plan (ITP) 16

Responsibilities; Review • The Approval Status Code and the DR reference shall be recorded in the SMDR – by the Supplier. Approval Status Codes: 1 Accepted with no comments 2 Accepted with comments incorporated. Revise and resubmit. 2 x Document returned before the Company's final approval/comments. Hold next revision of the document until receipt of FMCs final comments, or document is given approval status code 1. 3 Not accepted. Revise and resubmit 4 Information August 22, 2013 Inspection & Test Plan (ITP) 17

Intervention Codes The following definitions apply unless otherwise specified by the Part Report (DBI) • R = Review: Verification of a step in manufacturing or testing by FMC and/or Company by review of objective evidence. • M = Monitor: A step in manufacturing and testing that proceeds as scheduled, and may be subject to FMC and/or Company observation at FMC and/or Company discretion. Advance notification is not required. Monitor activities are intended for process verification, not product inspection. August 22, 2013 Inspection & Test Plan (ITP) 18

Intervention Codes • W = Witness: A critical step in manufacturing or testing where it is desirable that FMC and/or Company representative participates in the inspection / process activity of the material / equipment in order to ascertain that the product for delivery complies with the specified requirements. Formal advance notification shall be given in accordance with appendix 4. The step can proceed with or without the presence of FMC and/or Company representative after the designated time has passed. • H = Hold: A critical step in manufacturing and testing where it is essential that FMC and/or Company representative participates in the inspection /process activity of the material / equipment in order to ascertain that the product for delivery complies with the specified requirements. Formal advance notification shall be given in accordance with appendix 4. The step shall not proceed without the presence of FMC and/or Company representative, or without a written statement giving a waiver. August 22, 2013 Inspection & Test Plan (ITP) 19

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Notification of Witness/Hold points • Supplier shall notify FMC in writing prior to any hold/witness activities as specified in the ITP or MPQP. • Notification time - minimum ten (10) Business Days unless otherwise is stated in the PO/Agreement. • Submitted by Supplier latest 14: 00 GMT+1 (2 PM). • All notifications related to POs from Kongsberg (first issue, postponements and updates) shall be sent to: FKSnotifications@fmcti. com – – August 22, 2013 E-mail subject: FMC PO number and project number & name (not limited to) One e-mail shall only contain notification(s) for one project. Copy Commercial point of contact Copy Quality resource, if known Inspection & Test Plan (ITP) 21

Notification of Witness/Hold points - Content Shall as a minimum include (as applicable): • • • FMC project number and name. FMC Purchase Order ref, Part Number & Serial Number (quantity) Part description Start-up date & time for activity Duration Supplier approved ITP/MPQP doc number/rev with reference to activity Procedure document number and revision Location for activity Contact persons Other information needed (e. g. required personal protection equipment) Global Notification of Intervention Point Form: • August 22, 2013 http: //www. fmctechnologies. com/en/Supply. Chain/Subsea. Systems/Subsea%20 Requirements /Global. aspx Inspection & Test Plan (ITP) 22

Notification Format August 22, 2013 Inspection & Test Plan (ITP) 23

Issue formal notification to FKSnotifications@fmcti. com W and H points, acc to approved ITP/MPQP. Period acc to contact Supplier If not ok, state actions and ask Supplier to reschedule Evaluate notification Notification period, information and documentation, check availability FMC (Quality) Formally notify internally and to FMC Client (if Client W or H) FMC ( Quality) Acc to Client contract Evaluate notification Notification period, information and documentation, check availability FMC Client Revert with attendance information Both FMC Client & FMC (Quality) Reject or give attendance info / waiver Prepare for activity, if any changes, send an updated notification Supplier

Be aware • Recurring problems: – Documentation is a bottle neck • • • Internally in FMC Customer Contact FMC purchaser if delay in documents – Typing errors • • wrong / misspelled Purchase Order Number or Part Number several cases of ”copy-paste” • FMC is working on methods to inform about required intervention points at PO award. – For BP projects requirements for intervention will be included in the Part Report (DBI). Include those on first revision of ITP /MPQP • Notifications – August 22, 2013 Any special agreements with FMC or FMC’s Client (shorter notification time, document approvals etc) shall be clearly stated in the notification. Inspection & Test Plan (ITP) 25

QUIZ August 22, 2013 Inspection & Test Plan (ITP) 26