Guideness Quality Management Eng

.
1 115

QUALITY
MANAGEMENT SYSTEM MANUAL

OPEN JOINT STOCK COMPANY
"INTERPIPE NIZHNEDNEPROVSKY
TUBE ROLLING PLANT"

Facility location:
No. 21, Stoletov street
49081, Dnepropetrovsk,
Ukraine

Telephone: 38 (0562) 349 099
Fax: 38 (0562) 349 108
E-mail: MainOffice@ntrp.interpipe.biz

Revision #__13__
Implemented _Nov. 06, 2012_
Copy # ______

.2 115

QUALITY
MANAGEMENT SYSTEM MANUAL
GENERAL
The Quality Management System is integrated into the management practices of OPEN JOINT
STOCK COMPANY "INTERPIPE NIZHNEDNEPROVSKY TUBE ROLLING PLANT" (OJSC "INTERPIPE
NTRP").
The Quality management system construction principles, processes and associated standard
procedures, methodologies and instructions are set out or referenced in this Quality
management system manual (QMSM) and are in accordance with the following Standards:
ISO 9001,
DSTU ISO 9001,
API Specification Q1,
AAR Specification M-1003,
IRIS
The Quality management system of OJSC "INTERPIPE NTRP" was certified by:
Technical inspection TV Rheinland Cert GmbH for conformity with ISO 9001:2008
(# 01 100 015094);
In the System of UkrSEPRO by certification body State Enterprise "VNITI-TEST" for conformity
with DSTU ISO 9001:2009 (# UA 2.019.04438-10);
Quality system and product certification body of American petroleum institute for conformity
with API Spec. Q1 (## 5L-0289 and 5CT-0381);
Quality system and product certification body of Association of American Railroads for
conformity with AAR M-1003 (#QA-NTDU).
The text of the present Quality Management System Manual (QMSM) was complemented with
changes related to improvement of the System in accordance with IRIS requirements, new
organization structure of the enterprise, awareness raising of enterprise personnel and
implemented improvements. Changes in the text are marked with a vertical line.

APPROVED:
Board Chairman A.N. Korotkov

signature, date
CHECKED:
Quality Director O.V. Potyomkin

signature, date
DEVELOPED:
Chief of Technical Department D.A. Bogdan

signature, date

QUALITY MANAGEMENT SYSTEM MANUAL
OJSC " INTERPIPE NTRP"

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QUALITY POLICY

It depends from each and everyone at our enterprise
what product the customer gets - quality is born at
each workplace
The quality policy of is the basis for performance and perfection of Quality
management system.
The policy of our enterprise is based on principles of quality management.
The strategic quality objective of OJSC "INTERPIPE NTRP" is achievement of
leading position on the market of manufacture of high-quality products that entirely
meet customer requirements and expectations by strict observance of agreed
requirements.
In order to achieve strategic quality objective we set for ourselves the
following tasks:
continuous perfection of Quality management system,
orderly analysis of implementation of Quality objectives,
continual product quality focus,
informing and explanation of Quality policy to all employees of our
enterprise,
improvement of qualification, competence, continuous development of
knowledge, skills and responsibility of personnel of our enterprise,
provision and maintenance of infrastructure and work environment in
serviceable condition,
development of corrective and preventive actions based on analysis
results of customer satisfaction with quality of issued products,
extending of sales markets and realization of new product types,
development of corrective actions based on results of measurement of
process effectiveness.
OJSC "INTERPIPE NTRP" takes on responsibility for implementation of Quality policy,
intends to strictly follow stated principles and encourage all employees to take
active part in observance thereof.


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TECHNICAL SAFETY POLICY
Technical safety policy of "OJSC INTERPIPE NTRP" is intended to improve technical and
economic efficiency of production activity in order to ensure competitiveness of issued
products for railway industry.
Technical Safety objectives of "OJSC INTERPIPE NTRP" are:
1 Ensuring the manufacture of required product quantity of required quality;
2 Ensuring the required level of equipment technical availability at optimal level of
costs;
3 Ensuring the enterprise performance safety;
4 Ensuring the wheel product safety in its railway transportation service;
5 Prevention of negative impact of the environment.
Technical Safety policy of "OJSC INTERPIPE NTRP" is intended to solve the following
tasks that are defined with consideration of the current condition of fixed assets:
1 Overcome the trend of moral and physical ageing of fixed assets;
2 Improvement of the level of process and environmental safety and equipment
reliability;
3 Reduction of service costs and maintenance on account of implementation of
equipment with increased inter-repair period;
4 Improvement of wheel product service reliability;
5 Improvement of performance efficiency on account of improvement of equipment
characteristics, improvement of process control.
"OJSC INTERPIPE NTRP" creates the Technical Safety policy based on the following
principles:
1 Transparency and substantiation of taken technical decisions;
2 Intensive development and reproduction of engineering and management
competencies of enterprise personnel;
3 Safety performance of enterprise shops, prevention of negative ecological and
social consequences;
4 Integration of production activity and the activity of other subdivisions by means
of implementation at the enterprise of required management techniques;
5 Forming of long-term partnership relationships with suppliers and contractors
based on mutually beneficial cooperation;
6 Improvement of wheel product quality on account development, realization of
new product types that conform to the best world countertypes;
7 Conformity of manufacturing processes to the up-to-date level of process
equipment and technology development;
8 Prevention of technology non-observance and legislation violation;
9 Conformity of engineering solutions being developed to requirements and
regulations, normative and technical documentation, field management documents and
legal acts.


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CONTENTS
General 2
Quality Policy 3
Technical Safety Policy 4
1.0 Scope 7
1.1 General provisions 7
1.2 Application 7
2.0 Normative references 9
3.0 Terminology 10
4.0 Quality Management System 14
4.1 General requirements 14
4.2 Documentation requirements 17
4.3 Knowledge management 25
4.4 Management of multiple-site projects 25
5.0 Management responsibility 26
5.1 Management commitment 26
5.2 Customer focus 27
5.3 Quality Policy 31
5.4 Planning 32
5.5 Responsibility, authority and communication 36
5.6 Management Review 47
6.0 Resource management 50
6.1 Provision with resources 50
6.2 Human resources 51
6.3 Infrastructure 53
6.4 Working environment 54
6.5 Action plan in case of unexpected circumstances 55
7.0 Processes of product life cycle 56
7.1 Planning of product life cycle processes 56
7.2 Customer related process 57
7.3 Design and Development 64
7.4 Purchasing 70
7.5 Production provision 77
7.6 Control of measuring and monitoring devices 86
7.7 Project management 88
7.8 Configuration management 93
7.9 First article inspection 94
7.10 Product entry into service / Maintenance service at customer
facility

95


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7.11 Reliability, availability, maintainability and safety / life cycle cost
(RAMS/LCC)
95
7.12 Product obsolescence management 96
7.13 Change management 96
8.0 Measurement, analysis and improvement 98
8.1 General 98
8.2 Monitoring and measurement 99
8.3 Control of nonconforming product 103
8.4 Data analysis 106
8.5 Improvement 108
Annexes 111


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1.0 SCOPE
1.1 General requirements
QUALITY MANAGEMENT SYSTEM MANUAL (QMSM) represents a top-level
document to the Quality Management System of OPEN JOINT STOCK COMPANY
"INTERPIPE NIZHNEDNEPROVSKY TUBE ROLLING PLANT" (OJSC "INTERPIPE NTRP").
The QMSM describes the responsibilities, activities and internal relationships of the
structural divisions of OJSC "INTERPIPE NTRP".
The Quality Policy, Technical safety policy, objectives, standard procedures
and associated instructions, methodologies are set out or referenced in this QMSM in
order give a clear understanding of the OJSC "INTERPIPE NTRP" Quality management
system. All documented procedures and processes of Quality management system,
as presented in this QMSM, are approved, implemented and mandatory for
personnel covered by effect of these documents.
The Quality management objective is to satisfy customer requirements by
means of providing effective and efficient performance of processes. Quality
management system operates in accordance of requirements of the following
standards:
ISO 9001,
DSTU ISO 9001,
API Specification Q1,
AAR Specification M-1003,
IRIS.
1.2 Application
The application of Quality management system of OJSC "INTERPIPE
NTRP" is designing, development and production of seamless pipes,
railway wheels, wheel centers, tires and rings.
The Quality management system of OJSC "INTERPIPE NTRP" is integrated
with Environmental control System.
OJSC "INTERPIPE NTRP" developed a set of integrated documented
procedures that describe the process of document control and the process of
purchasing. Also environmental control requirements are reflected in technological
instructions in description of production manufacture processes.
OJSC "INTERPIPE NTRP" manufactured and designed product:
Seamless hot-formed steel pipes;
Seamless casing pipes and couplings thereto;


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Casing couplings and coupling stock;
Tubes for bearings;
Pipes for construction purposes and mechanical engineering;
Seamless steel pipes for steam boilers and pipelines;
Seamless cold-formed steel pipes;
Seamless cold-drawn steel pipes;
Casing pipes and couplings thereto in accordance with requirements of
API Specification 5CT, and threaded according to API Specification 5B
requirements;
Line plain-end and threaded pipes in accordance with requirements of
API Specification 5L and threaded according to API Specification 5B
requirements;
Line pipe couplings;
Solid-rolled wheels;
Rough wheel tyres for railway and subway rolling stock;
Rolled wheel centers;
Hot-formed rings.
Products of OJSC "INTERPIPE NTRP" are produced according to national,
international, foreign standards and customer agreed-on specifications.


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2.0 NORMATIVE REFERENCES
Reference Standards:
ISO 9000:2005 "Quality Management Systems Terms and definitions",
ISO 9001:2008 "Quality Management Systems Requirements",
ISO 9004:2009 "Quality Management Systems - Guidelines for performance
improvements",
DSTU ISO 9001-2009 "Quality Management Systems. Requirements";
DSTU ISO 9000:2007 "Quality Management Systems. Fundamentals and
vocabulary";
API Specification Q1 (8
th
Edition) "Specification for quality programs for
petroleum, petrochemical and natural gas industries",
AAR Specification M-1003 (August 1, 2011) "Specifications for Quality
Assurance";
IRIS (2
nd
Edition) "International railway industry standard".
The abovementioned documents are presented in versions current as of the
time of development of the present revision of QMSM. When using the present
document it is appropriate to check the validity of the referenced documents
according to the Lists of current documentation of OJSC "Interpipe NTRP". In case
when the referenced document has been replaced (revised), then when using the
present document the replacement (revised) document should be used.


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3.0 TERMINOLOGY
Quality
Degree to which a set of inherent characteristics fulfils requirements.
Acceptance Criteria
Specified limits of acceptability applied to process or product characteristics.
Acceptance inspection
Demonstration through monitoring or measurement that the product complies with
specified requirements.
Organization
Group of people with an allocation of responsibilities, authorities and relationships,
as well as miscellaneous means.
Verification (calibration)
Comparison with a reference standard of known accuracy and adjustment in
accordance therewith.
Delivery
Point in time and physical location at which the transfer of ownership takes place as
mutually agreed.
Supplier
Organization or person that supplies products.
Customer
Organization or person that receives products.
Design Acceptance Criteria
Defined limits placed on characteristics of materials, services or products established
by OJSC "INTERPIPE NTRP", customer, and/or applicable specifications in order to
achieve conformity to requirements of product technical documentation.
Manufacturing Acceptance Criteria
Defined limits placed on characteristics of materials, product or services established
by OJSC "INTERPIPE NTRP" in order to achieve conformity to production requirements
and services.
Product
The result of the process.
Process
Set of interrelated or interacting activities (operations) transforming inputs into
outputs.
System
Set of interrelated or interacting elements.
Management System
A system to develop policy and objectives and to accomplish these objectives.


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Quality Management System
Management system to direct and control the organization with regard to quality.
Control feature
Approved by OJSC "INTERPIPE NTRP" documented method to perform activity under
controlled conditions to achieve conformity to established requirements.
Tender
Offer made by OJSC "INTERPIPE NTRP" in response to an invitation to supply products.
Requirement
Need or expectation that is stated; generally implied or obligatory.
Management
Coordinated activities to direct and control an organization.
Quality Management
Coordinated activities to direct and control an organization with regard to quality.
Design Approval
Confirmation through provision of objective evidence that design requirements of
intended use or application have been fulfilled for a set of processes that transforms
requirements into specific characteristics or into product specification, process or
system.
Design Verification
The process of design acceptance though tests to confirm the conformity of a
product with design requirements.
Quality objectives
Something sought, or aimed for, related to quality.
Field Nonconformity
Product nonconformity that is detected after delivery or use has started.
Contingency work
Work or supply of components, which were not included into work scope and were
not expected by the supplier, but are required in order for completion of the work
and meet with the approval.
Deviation
Authorization to use or issue products that do not meet the specified requirements.
Results
All types of results presented for the purpose of supplies to meet the established
requirements.
Concession
Authorization for deviation from originally specified requirements to products prior
to its release.


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Technical revision
Implementation of new or revised standards, processes and procedures, delivery
conditions or new design that potentially affect health and safety or customer
performance efficiency.
Critical product
A product, which, as defined, can represent risks that directly or indirectly affect
health and safety, and/or operation.
Criticality
A risk level matched against the operation failure of critical product.
First article inspection
Inspection, verification and documented representation of results on representative
article obtained in issue of the new product batch.
Manufacturing process / Production process
Manufacture: actions on product realization. Production: actions on planning,
designing, purchasing, realization and delivery of products.
Multifunctional approach
All project-required specialists work as a team.
Outsourcing
Temporary transfer of performing of certain tasks or actions from product life cycle
processes to out-of-house performers (third party).
Project
Actions of temporary nature that are organized for realization of a unique product or
to achieve result.
Project life cycle
Project life cycle starts with a record on start of work and ends with final approval of
a customer.
Costs due to low quality
Costs related to supply of low-quality products that could have been excluded if all
products were manufactured properly on the first try, as well as costs that occur due
to ineffective or inefficient business-processes.
Safety
Should be understood in accordance with safety warranty level.
Supply chain
The network of organizations involved in various processes and activities that create
the value.


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Value chain
The selected supply chain with defined suppliers and customers, each of which
assists in adding value of supply to a customer.
Special process
A process wherein the conformity of finished products can not be verified in practice
or economically.


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4.0 QUALITY MANAGEMENT SYSTEM
4.1 General requirements
OJSC "INTERPIPE NTRP" has established, documented, implemented and
maintains the Quality Management System and continually improves its
effectiveness in accordance with requirements of Standards listed abovementioned
standards (see par. 2.0).
OJSC "INTERPIPE NTRP" has defined and approves main types of activity and
processes that lead to continual activity improvement, defined the sequence and
interaction of these processes, development towards continual improvement, as
well as employment of internal audits and top management review for process
improvement evaluation (figure 4.1).
Conformity of processes to Quality management system requirements is
ensured by:
the planned provision of resources and information that enable the
processes to be monitored, measured and analyzed,
the planned implementation of actions for continual improvement, as well
as planned results by utilizing various methods of monitoring and
measuring the process for analysis and reporting purposes.
Procedures and technology processes demonstrate the fulfillment of the
following Quality Management System requirements:
consistency and interaction of processes,
processes control,
management responsibilities and activities,
provision of resources,
purchasing of materials or sub-contracted services,
production
continual improvement.
When describing processes OJSC "INTERPIPE NTRP" defines effectiveness
criteria and/or key performance indicators, as well as process control methods that
are required for their effective performance and continual improvement.
OJSC "INTERPIPE NTRP" top management ensures resource and information
availability that are required for maintenance of these processes and monitoring
thereof, performance of continual monitoring, measurement and analysis of these
processes, as well as taking of required actions for achievement of results and
continual improvement of Quality management system processes.


Page 15 Total 115
4.1.1 Processes and/or services performed by subcontracted organizations
All outsourced processes that affect product quality are identified and/or
controlled as per appropriate standard procedures, organizational instructions or
methodologies. OJSC "INTERPIPE NTRP" bears responsibility for product conformity to
specified requirements when using outsourced processes.
The above listed requirements are stated in QMSM, standard procedures and
organizational instructions (methodologies).
General provisions. Additional requirements for enterprise management system
in production of wheel products for railway industry
For the case of complete or partial outsourcing of processes that affect
product conformity to requirements, as established in the contract (agreement),
OJSC "INTERPIPE NTRP" developed enterprise standard procedure, wherein
requirements for carrying the feasibility analysis, risk analysis, planning, customer
informing and first article inspection are defined.
The activity type is set out in the following documents:
MP NTZ-S-01 "Matrix of activity types and processes of
OJSC "INTERPIPE NTRP",
MP NTZ-S-02 "Matrix of activity types and processes in production of
wheel products for railway industry,
SP NTZ-S-14 "Data analysis and process assessment criteria",
SP NTZ-S-18 "Procedure of outsourced process control",
I NTZ-82 "Arrangement product acceptance by independent inspectors",
I NTZ-14 "Organization order and control methods of manufacturing
technology and product quality observance".


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- Value-adding activities
- Information flow

Figure 4.1 Model of Quality management system
CONTINUAL IMPROVEMENT OF THE QUALITY
MANAGEMENT SYSTEM
CONSUMERS
(CUSTO-
MERS)
CONSUMERS
(CUSTO-
MERS)
Section 7.0
PRODUCT REALIZATION
Section 6.0
RESOURCE
MANAGEMENT
Section 8.0
MEASUREMENT
ANALYSIS AND
IMPROVEMENT
Section 5.0
MANAGEMENT
RESPONSIBILITY

Require
-ments
Satisfac-
tion
Product
Input
Output


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4.2 Documentation requirements
4.2.1 General regulations and requirements
OJSC "INTERPIPE NTRP" developed and maintains documentation necessary
according to ISO 9001, DSTU ISO 9001, API Specification Q1,
AAR Specification M-1003, that consists of three levels:
Level 1: Quality Management System Manual (QMSM), Quality policy, Technical
safety policy, Quality objectives.
Level 2: Procedures (standard procedures of organization SP, Regulation on
top-management representative P, Process matrices MP).
Level 3: Organizational instructions and methodologies (I, M), technological
instructions (TI, STI), working instructions and job description (R, D),
product manufacture and inspection plans (PK), measuring instructions
and measurement procedures (II, MI), operation manuals IE, drawings
and other documents.
Level 4: Quality records.

Additional requirements for enterprise management system in production of
wheel products for railway industry
OJSC "INTERPIPE NTRP" top management approved documented regulations
of technical safety policy and safety objectives. OJSC "INTERPIPE NTRP" approved
Technical safety policy that is presented on page 4 of this QMSM.
OJSC "INTERPIPE NTRP" Quality management system includes management
system requirements that are imposed by government bodies.
OJSC "INTERPIPE NTRP" top management granted all enterprise personnel the
access to documents of enterprise management system related to production of
railway products and ensures familiarization of personnel with these documents.
Also, enterprise top management grants the customers and/or government
representatives the access to these documents.
4.2.2 Quality Management System Manual
OJSC "INTERPIPE NTRP" Quality Management System Manual establishes and
maintains the work order according to each requirement of the standards ISO 9001,
DSTU ISO 9001, API Specification Q1, AAR Specification M-1003, IRIS and includes the
following:


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a) general information of Quality management system (see s.1.0.), including
detailed description and explanation of exclusions (see s.7.5.1; 7.9; 7.11);
b) references to documented standard procedures (2
nd
level documentation),
organizational instructions, methodologies and other documents (3
rd
level
documentation) developed for the Quality management system;
c) definition and description of interaction between Quality Management System
processes, including subprocesses, which cover the following: Quality
management processes, Continual improvement processes, Analysis
processes, product design and development processes, Communications
processes, Product monitoring (measuring processes) and training processes,
and other processes.
The interaction between the Quality management system processes is based
on the Model quality management system given on the fig.4.1 (QMSM items
containing general requirements to these processes are given in brackets).
Quality management system processes and communication of the inputs and
outputs between these processes are shown on figure 4.2.
4.2.2.1 Quality management system manual of OJSC "INTERPIPE NTRP"
identifies ways (methods) by which OJSC "INTERPIPE NTRP" provides performance of
each standard requirement ISO 9001, DSTU ISO 9001, API Specification Q1,
AAR Specification M-1003, IRIS. Identification and interaction between all processes
of OJSC "INTERPIPE NTRP" are described in standard procedures, organizational
instructions and methodologies 2
nd
and 3
rd
level documentation, which are
referenced in Quality management systems manual at the end of each section or
item description.
Referencing the standard procedures in the present manual represents a clear
interrelation between IRIS requirements and documented standard procedures.
Processes and relationship of inputs and outputs between processes of
Enterprise management system are given in figure 4.3.
QMSM can be presented to the customer for information and evidence that
OJSC "INTERPIPE NTRP" works in accordance with IRIS requirements, as well as to
external certification body for evaluation and approval of Enterprise management
system.


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SP NTZ-S-07 "Distribution and storage of documentation in plant
workshops and services";
SP NTZ-S-08 "Procedure of development, design, endorsement, approval
and registration of documentation developed by plant services.


Page 20 Total 115

Performing measurement, analysis and improvement
Section 8.0 of QMSM
Monitoring and measurement
Customer satisfaction
Internal audit
Monitoring and measurement of processes and
products
Control of non-conforming product
Data analysis
Improvement
Responsibility of the Quality Management
Authorities
Section 5.0 of QMSM
Management commitment
Customer focus
Quality policy
Quality planning
Responsibility, authority and communication
Management review
Processes are described in 1
st
/2
nd
and 3
rd
-
level procedures (see references in QMSM
sections)
Resource Management
Section 6.0 of QMSM
Human resources
Infrastructure
Work environment
st
/2
nd
and 3
rd
-
level procedures (see references in QMSM
sections)
Production of steel, seamless pipes, railway wheels,
wheel centers, tyres and rings
Section 7.0 of QMSM
Planning of product realization
Customer-related processes
Design and development
Purchasing
Production and service provision (including API
requirements)
Control of measurement and monitoring devices
Processes are described in
1
st
/2
nd
and 3
rd
-level procedures
(see references in QMSM
sections)
st
/2
nd
and
3
rd
-level procedures (see references
in QMSM sections)
Normative Documents, Quality
management system manual,
Standard procedures, Organizational
instructions and methodologies,
Technological instructions,
Measurement instructions and
procedures

Data of Quality
and analysis results
Resources and requirements to them
Customer requirements
Initial raw materials, stock and contractor
services
Authorities of
OJSC "INTERPIPE NTRP"
Necessary
resources
Data of
quality
Information for
customers
Products prepared for
customers
Figure 4.2. Chart of Quality Management System processes interaction in OJSC "INTERPIPE NTRP"


Page 21 Total 115

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INPUT
(tech. bid )
Customer
property
PRODUCT LIFE CYCLE PROCESS PLANNING (7.1)
PRODUCT LIFE CYCLE PROCESSES
MARKETING (7.1.1)
ANALYSIS OF PRODUCT-RELATED REQUIREMENTS (7.2.2)
PROMOTION AND SALES (7.2.1)
DESIGN AND DEVELOPMENT (7.3)
CHANGE MANAGEMENT IN DESIGN AND DEVELOPMENT (7.3.7)
LAUNCHING INTO MANUFACTURE (7.5.1)
PRODUCTION PLANNING (7.5.1.1)
PRODUCTION PROCESS VALIDATION (7.5.2)
FIRST ARTICLE INSPECTION (7.9)
PURCHASING (7.4)
PRODUCTION (7.5.1)
PRODUCTION PROCESS CHANGE MANAGEMENT (7.5.1.3)
(Product)
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Page 22 Total 115
4.2.3 Documentation control
OJSC "INTERPIPE NTRP" provides developments, checking, endorsement,
approval, circulation, review and updating the current Quality Management System
documents on a regular basis. This process is described in detail in appropriate
standard procedures that are referenced in this section.
Chief of appropriate department, management, laboratory or shop is
responsible for availability of current (latest) revisions of necessary documents at all
corresponding workplaces they are related to.
Abrogated (canceled) documents shall be removed from the workplaces and
kept separately from the current ones. They are subscribed as "cancelled", but they
can be used as a reference (informational) source, if necessary. The identification
and control requirements to cancelled documents are set out in an appropriate
standard procedure.
Management principles of QMSM and appropriate procedures and processes
are given further in the text.
Quality director is responsible for development of Quality management
system manual, conformity of amendments, addenda and corrections made in
QMSM to requirements of approved and reviewed processes, and also for providing
the new QMSM revision or changes thereto for reviewing by the appropriate
certification body for observations and/or approval (if required).
4.2.3.1 All the documents are identified and summarized in listings (by inhering).
The listings contain documents, both of internal and external origin (standard
procedures, organizational instructions and methodologies, drawings, job
descriptions and work instructions, labor protection procedures, product and
Management system standards, specifications, environment control standards, etc.).
4.2.3.2 Changes shall must be verified and approved by the same services, which
realized the initial verification and approval of these documents. The procedure of
making changes in standard procedures and organizational instructions
(methodologies) and other documents shall be performed by the same subdivisions
and individuals and includes the same development, verification, approval,
documenting and distribution stages that were used when developing the initial
version.


Page 23 Total 115
OJSC "INTERPIPE NTRP" constantly demonstrates efficient management and
monitoring of all documents related to products supplied for railway industry. The
form of the documents and the procedure defined in a standard procedure require
indication of full name of employees that authorize and carry out documentation
analysis.
OJSC "INTERPIPE NTRP" implemented efficient systems for evaluation of the
documents of external origin.
OJSC "INTERPIPE NTRP" top management defined and manages the process
that provides traceability documents of wheel railway industry product customers,
such as specifications, requirements to supply chains.
Review
Standard procedures, organizational instructions and methodologies shall be
reviewed annually by the top management for adequacy and conformity to
requirements of ISO 9001, DSTU ISO 9001, API Specification Q1,
AAR Specification M-1003, IRIS and OJSC "INTERPIPE NTRP" Quality management
system.
SP NTZ-S-04 "Distribution and storage of documentation in plant
workshops and services",
and registration of documentation developed by plant services",
SP NTZ-S-11 "Control of outside normative documents",
I NTZ-66 "Change management in production of wheel products for
railway industry"


Page 24 Total 115
4.2.4 Control of Quality records
OJSC "INTERPIPE NTRP" Quality management system established control
features necessary to maintain quality records, which provide evidence of
conformity to requirements and provide the effective and efficient performance of
Quality management system. Control methods of accumulation, identification,
storage, protection, retrieval, preservation, retention time and removal of records
are described in a standard procedure, as well as in appropriate technological
instructions.
In cases determined by a customer quality records are to be submitted to a
customer or representative thereof for evaluation and review within specified time
period.
4.2.4.1 A documented standard procedure specified the following. Manager of each
department, laboratory or shop, or appointed individual are responsible to ensure
that quality records related to their division are stored in such a manner as to remain
legible, readily identifiable and retrievable, protected from damage, wear and loss
possibility.
OJSC "INTERPIPE NTRP" retains quality records that bring evidence of
effectiveness and efficiency of Quality management system or product quality for
not less than 5 years or for a period specified in special order, standard procedure,
instruction, customer or standard requirements (the longest period shall be chosen
from specified documents). Obsolete documents that are retained for legal and
reference purposes shall be appropriately identified.
OJSC "INTERPIPE NTRP" ensures that quality records are available to
customers and government bodies for analysis / or issuance in accordance with a
contract or legislative and normative requirements.
The activity type is set out in the following document:
SP NTZ-S-15 "Control of quality records".



Page 25 Total 115
4.3 Knowledge management
OJSC "INTERPIPE NTRP" defined, documented, implemented and regularly
updates the most efficient and effective work techniques in order to improve
process effectiveness, as well as quality of products, costs and supplies.
The work methods include without limitations the following:
- design rules;
- wheel product technology;
- instructions, methodologies and procedures.
OJSC "INTERPIPE NTRP" defined and implemented the knowledge
management process for the purpose of definition, acquiring, protection, usage and
evaluation of information, knowledge and technologies.
4.4 Management of multiple-site projects
At OJSC "INTERPIPE NTRP", in realization of projects with multiple sites, the
appropriate documentation project quality assurance plan shall be documented,
implemented and shall consider and include the following:
allocation of labor and interrelation in the course of work, including
customer requirements;
responsibilities and authorities and communication channels (both inside
the enterprise and with customer participation), including feedback on
activity results within responsibility of each site;
employed processes, standard procedures, instructions, methodologies,
documentation and records at each site;
assurance of conformity with IRIS requirements.
At OJSC "INTERPIPE NTRP", in realization of projects with multiple sites, (if
applicable), not less than once per year, the process efficiency evaluation is
performed by means of carrying out of internal audits, management reviews,
process analysis, customer claims.


Page 26 Total 115
5.0 MANAGEMENT RESPONSIBILITY
5.1 Management commitment
Top Management of OJSC "INTERPIPE NTRP" implements its commitment to
the implementation and development of Quality management system, as well as
continually improving its effectiveness and efficiency.
Each manager plays specific part in development, control and continual
improvement of Quality management system.
Top Management has authenticated organizational commitment and authority
for functioning and development of Quality Management System:
establish unity of purpose and direction of organization development by
creating and maintaining an internal environment, in which employees
of OJSC "INTERPIPE NTRP" can become fully involved in achieving the
organizations objectives,
involve employees at all OJSC "INTERPIPE NTRP" levels as their full
involvement in the performance of Quality management system enables
their abilities to be used for OJSC "INTERPIPE NTRP" benefit,
develop and maintain OJSC "INTERPIPE NTRP" Quality policy,
communicate to OJSC "INTERPIPE NTRP" personnel the importance of
product meeting customer (consumer) requirements, as well as
established normative and legislation requirements,
use various control methods for review and continual improvement,
develop various process control and measuring methods to provide data,
by which achievement level of the Quality objectives can be measured,
adopt production goals as the basis for measuring Quality Objectives,
provide the achievement of approved Quality objectives with
appropriate resources,
define and implement preventive actions to eliminate causes of potential
nonconformities of products, processes and Quality management
system,
recommend, maintain and monitor implementation of corrective and
preventive actions,
maintain Quality management system performance review by top
management,
make necessary resources available for Quality management system
performance and improvement.


Page 27 Total 115
All of the activities listed above are ongoing; however the review or revision
of the quality work plans and top management review of improvement of plans
thereof are to be conducted annually.
Records
Records confirming performance of this process are maintained according to
requirements set out in item 4.2.4 of this QMSM.
5.2 Customer focus
OJSC "INTERPIPE NTRP" Top management ensures that customer (purchaser)
requirements are defined and met in order to enhance customer satisfaction. This
QMSM section describes the processes and methods to communicate customers
requirements to all employees involved in the order realization at
OJSC "INTERPIPE NTRP".
For the purpose of understanding and satisfaction of customer requests and
expectations of concerned parties OJSC "INTERPIPE NTRP" top management
converted customer needs and expectations into specific requirements:
quality;
reliability;
functional and service suitability;
delivery;
price;
safety;
responsibility for product quality.
These requirements are communicated to all personnel by means of Quality
policy, orders, regulations and documentation of the enterprise.
OJSC "INTERPIPE NTRP" Quality policy reflects readiness of the enterprise to
satisfy customer requirements (see page 3 of this QMSM).
5.2.1 Customer standard requirements
Standard customer requirements are requirements that are included in the existing
design package, and which cover the products presented in Specializations and Catalogues.
Requirements are set out in current documentation and product supply order.


Page 28 Total 115
5.2.2 Non-standard requirements
Non-standard requirements are special requirements that are not presented in
OJSC "INTERPIPE NTRP" Specializations and Catalogues and require technical
appraisal. Non-standard customer requirements are examined by appropriate
services as for technical feasibility of manufacturing. If the order can be fulfilled the
appropriate documentation is to be developed and circulated to plant departments
involved in order fulfillment as described in appropriate standard procedures (see
interaction of processes outlined in Sections 7.1, 7.2 and 7.5 of the present QMSM).
5.2.3 Distribution of requirements
Standard and non-standard customer requirements are distributed to the
service of production and sales director. The service of production and sales director
circulates standard and non-standard customer requirements to all divisions involved
in the production process. Documents are registered by circulation date and
implementation date in accordance with OJSC "INTERPIPE NTRP" current standard
procedures.
5.2.4 Confidentiality
In case when customer requirements are to remain confidential then prior to
distribution to workplaces the information necessary for order fulfillment is to be
chosen only
5.2.5 Circulation
The specialists appointed for the purpose communicate customer
requirements to all appropriate personnel in various departments, laboratories and
shops.
5.2.6 Employee indoctrination
Chief of each department, management, laboratory or shop bears
responsibility for ensuring that each employee involved in fulfillment of customer
requirements has been indoctrinated with appropriate requirements. Chief of each
department, management, laboratory or shop bears responsibility for ensuring that a
copy of the customer specifications, or appropriate excerpts, is located at the
workplaces, where order fulfillment takes place.


Page 29 Total 115
Records
Special customer requirements contained in production orders are maintained
by services of production and sales director in accordance with requirements of item
4.2.4 of the QMSM and appropriate instructions.
SP NTZ-S-01 "Organization of customer order study, processing and
execution control",
I NTZ-11 "Ensuring of fulfilling customer requirements in product
manufacture".


Page 30 Total 115
Contract realization process Process Chart

Planning of product
realisation
Design & developement
Provision of resources
Work
environment
Human
resources

Infrastructure

Procurement
Review and commitment to
comply with specified
requirements

Production control
Monitor & measure
process, product &
customer satisfaction
Production process


Page 31 Total 115
5.3 Quality Policy
Top management shall ensure that the Quality policy is communicated and
understood by all personnel of the plant.
Quality policy adopted at OJSC "INTERPIPE NTRP" is given in page 3 of current
manual.
OJSC "INTERPIPE NTRP" Quality policy complies with objectives of the
enterprise and includes commitment to meet requirements and continually improve
effectiveness of Quality management system.
The OJSC "INTERPIPE NTRP" Quality policy is communicated to all employees
by placing on information boards in shops and subdivisions, though discussion at
general and daily briefings and the personnel training at all levels.
In the process of top management review Quality policy is analyzed for
continual serviceability. By results of such analysis top management makes a
decision of revision thereof.
5.3.1 Quality Policy is issued as a separate document, approved by Board Chairman
and covers all the divisions.
5.3.2 Business plan
OJSC "INTERPIPE NTRP" management established and at least once a year
updates and keeps actual the business plan that considers the activity of the
enterprise in the field of railway industry.
Business plan of OJSC "INTERPIPE NTRP" includes the following sections:
Mission and vision of OJSC "INTERPIPE NTRP";
Identified risks reduction plan;
Marketing strategy and product development strategy, including plans
of new product/process development and strategy accomplishment;
Influence of technological changes and changes of legislative and
normative requirements;
Strategy of "Production and purchasing";
Capabilities of the enterprise (existing and potential);
Enterprise activity objectives.


Page 32 Total 115
Top management ensures communication to OJSC "INTERPIPE NTRP"
personnel of Business plan regulations.
For the purpose of management of enterprise finances (including accounting
record-keeping and cost accounting) OJSC "INTERPIPE NTRP" established the process
of cost management.
Records
Records confirming functioning of this process are maintained in accordance
with requirements stipulated in item 4.2.4 of this QMSM.
The process is set out in the following document:
SP NTZ-S-13 "Procedure of development, implementation and review of
policies, objectives and programs";
SP NTZ-S-19 "Resource management".
5.4 Planning
5.4.1 Quality objectives
Top management of OJSC "INTERPIPE NTRP" ensures that Quality objectives,
including objectives necessary to meet product requirements, are established in all
structural subdivisions of the enterprise. The development and definition of quality
objectives of OJSC "INTERPIPE NTRP", as well as its structural subdivision objectives,
meet standard requirement with regard to measurement and accordance with
Quality policy of the enterprise.
Top management of OJSC "INTERPIPE NTRP" has present in a structured
fashion and allotted within the enterprise the business objectives. Top management
of OJSC "INTERPIPE NTRP" organizes the analysis thereof for each level of the
enterprise not less than once a year. OJSC "INTERPIPE NTRP" objectives are directed
to meet customer expectations. Top management of OJSC "INTERPIPE NTRP" ensures
accomplishment of business objectives within established time limits.


Page 33 Total 115
Records
Records confirming functioning of this process are maintained in accordance
with requirements stipulated in item 4.2.4 of this QMSM.
SP NTZ-S-05 "Structure and functions of quality management system.
Internal audit";
policies, objectives and programs".
5.4.2 Quality management system planning
Top management maintains the Quality management planning to ensure
Quality objectives and requirements with regard to quality are established, as well
as to ensure the performance and continual assessment of Quality management
system in operation.
Quality management system planning is performed to ensure the following:
identification of the processes needed for the Quality management
system and their universal application,
determination of the sequence and interaction of these,
determination of criteria and methods needed to ensure the efficient
control of Quality management system processes and their effective
performance,
availability of resources and information necessary to support the
performance and monitoring of these processes,
monitoring, measurement and analysis of Quality management system
processes (linkage and interaction of processes is outlined in Sections
4.2.2, 5.5 and 8.0 of this QMSM),
implementation of actions necessary to achieve planned results and
continual improvement of Quality management system processes,
reviewing and acting upon any non-compliance within the Quality
Management System.


Page 34 Total 115
Top management of OJSC "INTERPIPE NTRP" ensures Quality management
system integrity when planning and implementing changes in Quality management
system.
Top management of OJSC "INTERPIPE NTRP" ensures integratedness of Quality
management system, Enterprise management systems in production of wheel
products and Environment control system.
execution control",
SP NTZ-S-02 "Development and implementation of corrective and
preventive actions",
Internal audit",
SP NTZ-S-09 "Product and process design management",
SP NTZ-S-12 "Development, design and reviewing of technological
instructions",
policies, objectives and programs";
SP NTZ-S-19 "Resource management",
manufacture",
technology and product quality observance".
I NTZ-55 "Procedure of organizing the scientific and technological
measures planning development and control".


Page 35 Total 115
Quality objectives achievement Process Flow Diagram

Setting of quality
objectives
Quality management
system planning

Monitoring and measuring

Internal
audits
Commitment for continual
improvement
Data analysis

Corrective & preventive
actions

Top management review

Customer
Satisfaction

Process

Product
Planning of product
realisation

Planning Resources


Page 36 Total 115
5.5 Responsibility, authority and communication
Organizational structure of OJSC "INTERPIPE NTRP" is developed by the
director on personnel, reviewed and approved by the Board chairman and the
Chairman of the Supervisory council of OJSC "INTERPIPE NTRP".
A detailed organizational structure for each individual department, laboratory
or shop, if it comprises more than one position, is prepared by chief of each
department, laboratory or workshop, reviewed by specialists of department on
organizational management and personnel motivation and approved by director on
personnel.
Organizational Structure of OJSC "INTERPIPE NTRP" is classified as a matrix-
based management system. Two types of subordination exist within this matrix
management system: administrative and functional.
Administrative subordination, indicated on the scheme of organizational
structure with a solid line, involves time management, work assignment and work
place location.
Functional subordination, indicated with a dotted line on organizational
structure scheme, relates to methods by which activities are performed and criteria
by which this performance is evaluated.
Each subdivision shown on the OJSC "INTERPIPE NTRP" organizational
structure has a corresponding documented regulation that details its tasks, functions,
interrelations, rights and responsibilities.
Each position shown on the OJSC "INTERPIPE NTRP" organizational structure
and on a detailed organizational structure scheme for each individual department,
laboratory or workshop of OJSC "INTERPIPE NTRP" has an appropriate documented
instruction that details the duties, responsibilities and authorities for each individual
occupying certain position (linkage and interaction to processes outlined in items
4.2.3, 5.3, 5.4 and 6.2 of this QMSM).
Chief of affected department, shop or laboratory is responsible for
implementation, control and maintenance of duty descriptions of employees with
regards to Quality management system.
Top management of OJSC "INTERPIPE NTRP" defined for all process owners
their authorities and responsibilities (as shown in item 5.5.1 of this QMSM). Process
owners are specified in process matrices (by inhering).


Page 37 Total 115
Top management of OJSC "INTERPIPE NTRP" defined ways of interaction with
customers; a standard procedure defines and describes communication channels
therewith, which are continually maintained.
Records
Current copies of organizational structures, regulations, job descriptions and
working instructions are kept and maintained by chief of appropriate department,
laboratory or work. Check copies of organizational structures, regulations and job
descriptions and working instructions are maintained by the chief of department of
organizational management and personnel motivation. Obsolete copies of
organisational structures, regulations and job descriptions and working instructions
become records and retained as per item 4.2.4 of this Manual and associated
standard procedures.
execution control",
Internal audit";
and registration of documentation developed by plant services".
5.5.1 Responsibility and authority
The assignment of responsibilities to achieve the Quality system objectives is
performed as follows:
Board chairman is responsible for:
creating a culture of customer (consumer) focus and relations therewith,
ensuring integrity of Quality management system when planning and
implementing changes thereto,
ensuring the maintenance of operative communication process between
subdivisions,


Page 38 Total 115
ensuring that subdivision aspirations are aligned with the needs of
OJSC "INTERPIPE NTRP" and its customers in general,
ensuring development of Quality policy,
ensuring that quality objectives are set, including the objectives
necessary for ensuring compliance with the product requirements for all
subdivisions of OJSC "INTERPIPE NTRP",
monitoring that the commitments stated in the Quality policy are
achieved and that the Policy is regularly reviewed,
implementation, performance and development of the Quality
management system,
approval and implementation of the OJSC "INTERPIPE NTRP"
management strategy with regards to product and service supply and
orderly review thereof,
allocation of appropriate resources to ensure successful implementation,
operation and development of Quality management system,
analysis of Quality management system performance.
Quality director
Quality director bears responsibility for effectiveness of corrective and
preventive actions taken, ensuring customer satisfaction, maintaining the set of
works to prevent manufacturing and delivering of products non-conforming to
consumer requirements (see item 5.5.2).
Chief Engineer
Chief Engineer bears responsibility for scientific-technical progress at the
plant, increase the level of production technical competence, production technology
perfection, maintenance of OJSC "INTERPIPE NTRP" equipment in good working
condition, achievement of conditions required by contract of customers with
consideration of all requirements established by OJSC "INTERPIPE NTRP" Quality
management system.
Chief Engineer is also responsible for:
performance and serviceability of processes that maintain production,
technological processes and other processes within appropriate
competence,
customer satisfaction by meeting specifications of contacts in steel-
making, tube-rolling and wheel shops,


Page 39 Total 115
ensuring product certification works in various conformity assurance
Systems,
providing identification of limitations related to Quality and product
managements system, technological processes and production
maintenance processes,
approval and implementation of corrective and preventive actions within
appropriate competence,
taking actions for production efficiency improvement, introduction of new
and maintenance of existing production facilities, improving quality and
products consumer properties, as well as implementing new product
types, material and resource saving.
Production and Sales Director
Production and sales director bears responsibility for organization of
manufacturing the product completely meeting documented customer requirements
in order to ensure satisfaction thereof, and for organization of acquaintance of
personnel involved in order fulfillment with all customer requirements.
Production and Sales Director is also responsible for:
control the production workshops activities to ensure manufacture of
products in scheduled time and meeting all requirements of production
orders,
running the process of manufacture provision with necessary resources in
order to meet requirements of products supply orders,
preparing the propositions for working out measures directed for more
complete satisfaction of customer requirements.
Director on Purchase
Director on Purchasing bears responsibility for timely providing process of
manufacture with necessary resources in order to provide satisfaction of customer
requirements.
Director on finance and economy
Director on finance and economy controls activities related to increase in the
production efficiency, improvement of OJSC "INTERPIPE NTRP" economic activity,
financial flow co-ordination, pricing, complex economic analysis of production and
economic activity of the plant.


Page 40 Total 115
Director on Finances and Economy is responsible for:
determination and providing of financial and economic policy;
financing of activities directed to achieve objectives and problem solving
in accordance with accepted Quality policy and specified Quality
objectives;
cost accounting.
Director on personnel
Director on personnel bears responsibility for:
planning the need in manpower resources;
staff-manning of the plant according to production requirements;
development of personnel instruction, training and qualification
improvement plans as per Quality management system;
arrangement of personnel certification work;
organizing the training and selecting of teachers and lecturers.
Chief accountant
Chief accountant bears responsibility for:
accounting record-keeping.
Employees of OJSC "INTERPIPE NTRP"
Each employee (co-worker) of OJSC "INTERPIPE NTRP" bears responsibility
for informing the chief about any occurring problem / deviation from a
requirement in order to take appropriate corrective or preventive actions.
5.5.2 Management Representative
5.5.2.1 Top management Quality management system representative
Top Management Representative bears responsibility and authority to plan,
implement and maintain the Quality management system.
Top Management representative bears responsibility for:
organizing of development, implementation and maintenance the
processes necessary for Quality management system functioning,
monitoring of OJSC "INTERPIPE NTRP" Quality management system
processes,


Page 41 Total 115
organizing activities on maintaining and development planned measurable
quality objectives,
defining of all process owners, as well as their authorities and
responsibilities;
organizing of conducting of Quality management system internal audits,
analysis of information on occurring non-conformities, problems and their
reasons, and on corrective and preventive actions taken,
monitoring of fulfilling corrective and preventive actions taken and analysis
of effectiveness thereof,
organizing of inputs accumulation for review of OJSC "INTERPIPE NTRP"
Quality management system functioning, preparing a report for Board
chairman,
organization of evaluation of suppliers and sub-contractors providing
services that affect product quality,
defining of the ways of with customers, as well as for organising of works
on description and informing of customers about communication channels,
ensuring fulfilling of works on prevention issue and shipment of products,
which do not meet standards and customer (consumer) requirements,
ensuring documenting and examining customer claims and performing
corrective actions to achieve customer satisfaction,
preparing propositions on Quality management system improvement,
decisions on issues related to quality or with regards to suspending activity
in the field of development / production / supply / service maintenance if
critical requirements are not fulfilled,
top management presentation when performing Quality management
system certification and supervisory audits.
Board chairman appoints top management Quality system management
representative from among OJSC "INTERPIPE NTRP" management staff. Quality
director is appointed as the top management Quality system management
representative by the order of the Board chairman.
P NTZ-S-01 "Regulations on the Top Management Quality Representative".


Page 42 Total 115
Quality management system representative in subdivision
Quality management system representative is responsible for maintenance
and control of meeting Quality management system requirements in appropriate
structural subdivision.
Quality representative also:
controls observance of Quality management system requirements,
standard procedures, organizational instructions and methodologies,
technological instructions, specifications and standards in appropriate
subdivision;
takes part in product quality analysis in the subdivision and developing
measures on quality improvement,
monitors training of subdivision employees on Quality management
system main principles,
provides employees of appropriate subdivision with methodological
assistance in managing and implementation measures on Quality
management system,
organizes conducting visual information on Quality management system
implementation and functioning in subdivision,
reviews effectiveness of Quality management system processes within
the subdivision, prepares appropriate reports to the subdivision chief and
gives similar information to quality analysis department,
takes part in inspection of Quality management system functioning and
manufacturing technology in appropriate subdivision conducted by shop
and plant commissions,
takes part in quality meetings,
controls fulfillment of corrective and preventive actions taken,
ensures effectiveness and utility of continual improvement as a result of
corrective and preventive actions,
represents the subdivision when internal and external audits of Quality
management system,
takes part and provides necessary assistance when preparing and
performing product certification or certified product supervisory audits,


Page 43 Total 115
stimulates production subdivisions to continual improvement in order to
improve processes leading to certain quality improvement,
supervises appropriate subdivision inspection by conducting spot checks in
order to prepare the report and remove nonconformities of product or
processes,
comments on current results basing on existing data, detecting and
identifying trends related to subdivision quality objectives achievement.
SP NTZ-S-16 "Procedure of appointment, rights and duties of structural
subdivision Quality representative".
Process owner
Process owner, apart from their personal duties bear responsibility for:
control of process performance in accordance with process chart (process
description as per standard procedure and/or organizational structure);
keeping track of process performance procedure and making of
appropriate changes in process documentation;
ensuring of achievement of process objectives;
informing company top management about process nonconformities (if
they occur).
and registration of documentation developed by plant services".
5.5.3 Functional subordination scheme according to Quality Management
System
Information interchange at the enterprise, including the issues of Quality
management system effectiveness, is performed by means of conducting briefings
assemblies and meetings, issuing of administrative-regulatory orders, direct
interviews of chiefs with subordinated employees, group classes (express-
seminars), posting of information boards, in-house information sheets,
announcements in Lotus Notes database. The individual responsible for information
assurance on Quality management system is Quality director Top management
representative on Quality management system.


Page 44 Total 115
OJSC "INTERPIPE NTRP" implemented the information interchange system
from enterprise management to personnel and in reverse order on issues related to:
Policy of OJSC "INTERPIPE NTRP" and the company in general;
Mission and vision;
Activity of the enterprise and the company;
Customer-related issues.
OJSC "INTERPIPE NTRP" defined, implemented and maintains the process of
external communications. The process owner is Board chairman.
wheel products for railway industry".
5.5.4 Customer relationship management
OJSC "INTERPIPE NTRP" top management appointed the top management
representative on customer interaction, which apart from other duties is entitled
with authorities and responsibilities allowing to:
Ensure that processes required for customer satisfaction and requirements
thereof are developed, employed and maintained;
Report to top management about functioning of these processes and any
necessity of their improvement;
Ensure the development of awareness about customer request
satisfaction all over the enterprise with appropriate preparation
Board chairman is to appoint the top management representative on
customer interaction from among OJSC "INTERPIPE NTRP" management team. Quality
director by Board chairman order is appointed as top management representative on
customer interaction.
P NTZ-S-03 " Regulation on Top management representative on customer
interaction".


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5.5.3 Functional subordination scheme according to Quality Management System

Board Chairman

Director of
security
Services of
Director on
personnel

Chief
accountant

Director on
personnel

Product
manufacture and
sales director

TRM- 3,4,5
Wheel Shop,
Steel Plant,
Mould-casting shop
Motor transport
shop

Services of Product
manufacture and
sales director

Director on
purchase

Services of
Director on
purchase
Services of
Director on
finance and
economy

Director on finance
and economy

Chief of
administrative,
special-duty and
social service

Administrative and
special duty
department

Services of
Director of
quality
Department of
legal and
contractual
work

Chief engineer
Chief engineer
deputy on
technology

Subdivisions
subordinated to
chief engineer
deputy on
technology

Services of
Chief
engineer

Director on
information
technologies

Services of
Director on
information
technologies

Project Work
Management
Chief engineer
deputy on
investment and
technical re-
equipment
Subdivisions
subordinated to
chief engineer
deputy on
investment and
technical re-
equipment
Director of Quality Top management representative on Quality management system

Services of
Chief
accountant


Page 46 Total 115
5.5.4 Functional subordination scheme according to Enterprise management system in production of wheel products

Board Chairman

Director of
security
Services of
Director on
personnel

Chief
accountant

Director on
personnel

Product
manufacture and
sales director

Wheel Shop,

Motor transport
shop

Services of Product
manufacture and
sales director

Director on
purchase

Services of
Director on
purchase
Services of
Director on
finance and
economy

Director on finance
and economy

Chief of
administrative,
special-duty and
social service

Administrative and
special duty
department

Services of
Director of
quality
Department of
legal and
contractual
work

Chief engineer
Chief engineer
deputy on
technology

Subdivisions
subordinated to
chief engineer
deputy on
technology

Services of
Chief
engineer

Director on
information
technologies

Services of
Director on
information
technologies

Project Work
Management
Chief engineer
deputy on
investment and
technical re-
equipment
Subdivisions
subordinated to
chief engineer
deputy on
investment and
technical re-
equipment
Director of Quality Top management representative on Enterprise management system

Services of
Chief
accountant


Page 47 Total 115
5.6 Management Review
5.6.1 General
Results of Top management review are discussed at annual management
meetings regarding Quality management system review.
Top management review is performed to ensure continual meeting
requirements of Standards listed in par. 2.0 by OJSC "INTERPIPE NTRP" Quality
Management System. In the review the adequacy, effectiveness and efficiency of
current Quality management system are evaluated. Evaluation of development
potential and need to change Quality management system, including Quality policy
and objectives, is also included in the review.
5.6.1.1 OJSC "INTERPIPE NTRP" Board Chairman annually (i.e., the periodicity of
scheduled analysis shall not exceed 12 months) reviews of the Quality management
system. If necessary, the review of Quality management system can be more than
once a year. Quality management system review includes monitoring of
OJSC "INTERPIPE NTRP" quality objectives.
5.6.2 Review inputs
Inputs necessary for the Top management review include the following:
Quality policy,
technical safety policy,
findings of internal and external audits and analysis thereof,
results of achievement of the adopted Quality objectives,
reports on external nonconformities (s.3) and results of analysis thereof,
reports on nonconformities found during certification and supervisory
audits and results of analysis thereof,
documents on customer feedback,
tendencies of non-conformity occurrence,
status of corrective and preventive actions,
evaluation of quality resources allocation,
changes that could affect the Quality management system,
changes of requirements of Quality management system standards
ISO 9001, DSTU ISO 9001, API Specification Q1, AAR Specification M-1003
and IRIS or product (including changes in applicable standards of petroleum,
petrochemical and natural gas industries),


Page 48 Total 115
recommendations on improvement,
follow-up actions from previous management reviews.
Additionally to abovementioned requirements the review inputs shall include
the information on the following:
main conclusions of previous project reviews,
results of previous process reviews,
analysis of actual and potential service failures and their effect on safety or
environment.
In the course of management review the following KPI shall be analyzed:
all required KPI (Annex to this QMSM),
timeliness of deliveries to customers;
nonconformities revealed by customer in the course of entire product
(project) life cycle;
KPI, that contain information about the level of internal nonconformities
and supplier nonconformities in the course of entire product (project) life
cycle;
timeliness of supplier deliveries;
time of response to customer-revealed non-conformities;
costs related to nonconforming quality.
5.6.3 Review outputs
Review outputs of Quality management system top management review
include any decisions and actions related to:
effectiveness improvement of Quality management system and processes
thereof,
product quality improvement related to customer requirements
satisfaction,
resource needs.


Page 49 Total 115
Additionally to abovementioned requirements the review outputs shall
include information on the following:
process integration;
achievement of business objectives;
customer satisfaction.
Records
Top management review records are maintained as per the requirements of
item 4.2.4 of this QMSM and associated standard procedures.
The process is set out in the following documents:
SP NTZ-S-06 "Plant management review of Quality management system".


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6.0 RESOURCE MANAGEMENT
6.1 Provision with resources
In order to maintain Quality management system performance, improve
effectiveness thereof, and meeting customer requirements, top management of
OJSC "INTERPIPE NTRP" provide with following resources:
human resources (qualified personnel);
financial resources;
material and technical resources;
information resources, etc.
OJSC "INTERPIPE NTRP" top management periodically reviews and assesses
resources required to maintain and improve effectiveness of Quality management
system that ensures customer satisfaction by meeting all requirements thereof.
The periodical review ensures that the top management defined resources
that are adequate to sustain variations of existing requirements to resources and
facilitate improvement effected by external influences, customer requirements and
processes necessary to enhance customer satisfaction.
OJSC "INTERPIPE NTRP" developed and documented the standard procedure
that ensure appropriate capability of personnel, equipment, etc. with consideration
of current and potential orders within medium- and long-term periods.
Records
Top management review records are maintained as per the requirements of
item 4.2.4 of this QMSM and associated standard procedures.
SP NTZ-S-19 "Resource management",
I NTZ-55 "Procedure of organizing of works on scientific and technological
measures planning development and control".


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6.2 Human resources
6.2.1 General
OJSC "INTERPIPE NTRP" employs competent personnel that perform works
work that affect conformity of products to product requirements. This includes its
education, additional training, craftsmanship, and experience in application of
practical skills. OJSC "INTERPIPE NTRP" makes specific demands to competency of
personnel performing any duties within Quality management system.
6.2.2 Competency, awareness and training
OJSC "INTERPIPE NTRP" top management establishes required competency
level for performing of specific work and ensures through previously acquired skills,
experience, education and on-the-job training that employee qualification meets its
assignments that affect quality.
The result of training is evaluated by its effectiveness and includes personnel
competency with regards to achieving Quality objectives.
Service of director on personnel of OJSC "INTERPIPE NTRP" ensures
professional training of personnel (including contracted personnel) to any new or
modified work types that affect product quality.
Individual records are maintained indicating training plans, frequency of
training, education, previous education, previous training, skills and experience.
Director on personnel ensures control of documentation with information on
qualification level. Chief of each department, laboratory or shop determines the
need for personal training of personnel, noting the results of training. Appropriate
documentation is retained for a minimum of 5 years or for a period specified by
standard procedure, regulation, customer or industry product standard requirements.
6.2.2.1 OJSC "INTERPIPE NTRP" established control features (Regulation on
personnel training and development) to determine the needs in training and to
provide training of personnel that is involved in activities related to Quality
management system. Requirements to training ensure training of personnel on
Quality management system and vocational training. OJSC "INTERPIPE NTRP"
personnel training periodicity is to be not less than once in 5 years.
OJSC "INTERPIPE NTRP" has established the process that allows determining
personnel awareness level regarding necessity and importance of activity thereof,
as well as how they contribute in achievement of Quality objectives. Personnel
whose work can affect quality are informed of possible consequences for a
customer in case of quality nonconformance.


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OJSC "INTERPIPE NTRP" top management ensures awareness of its personnel
about actuality and importance of its activity and contribution in achieving safety
objectives.
6.2.2.1.1 Skills in product designing
OJSC "INTERPIPE NTRP" ensures that personnel responsible for product
designing is competent in meeting requirements to designing and possess skills to
use appropriate means and methods. The methods applied at OJSC "INTERPIPE NTRP"
are identified.
6.2.2.1.2 Personnel motivation and involvement
OJSC "INTERPIPE NTRP" top management motivates employees to achieve
objectives related to business, quality and safety, implement continual
improvements and creating an environment for innovations.
6.2.2.1.3 Personnel training
OJSC "INTERPIPE NTRP" developed and maintains documented Regulation on
personnel development and training, which establishes methods on defining and
planning of needs in training and maintenance of required competency level of all
personnel involved in activity that affects product quality and its safety at all levels
of the enterprise.
Outcome of actions on knowledge management (item 4.3 of this QMSM)
represent inputs for planning of training.
Personnel that performs specific tasks (for example, special processes,
actions to technical changes) shall be competent and qualified in accordance with
requirements, paying special attention to meeting customer requirements, requital,
legislative and normative requirements.
OJSC "INTERPIPE NTRP" training system is directed to sustain and improve
personnel qualification. All critical activities with regards to quality and safety of
OJSC "INTERPIPE NTRP" wheel products are summarized in general list. Based on it
the records on personnel qualification, performing such action, are kept and updated
on a regular basis.
OJSC "INTERPIPE NTRP" top management ensures that personnel, whose work
affect product quality and safety, is informed about possible consequences for
customer in case of nonobservance of quality and safety requirements.


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6.2.2.1.3 Activity management
OJSC "INTERPIPE NTRP" implemented the system for orderly setting of
individual objectives related to business objectives and analysis of individual
achievements. The system is described in the Regulation on periodic personnel
evaluation.
Records
Records of personnel competence and training are maintained in accordance
with item 4.2.4 of the present QMSM or appropriate standard procedures.
P-0022 "Regulations on OJSC "INTERPIPE NTRP" personnel training and
development",
P-0023 "Regulations on periodical OJSC "INTERPIPE NTRP" personnel
assessment",
Internal audit";
SP NTZ-S-19 "Resource management".
M NTZ-19 "Training and certification of personnel involved in product
nondestructive inspection according to standard requirements".
6.3 Infrastructure
OJSC "INTERPIPE NTRP" has incorporated the necessary buildings, work
premises, manufacturing process equipment (both hardware and software) and
supplementary services (including communication and information systems) needed
to support design and manufacture of products listed in item 1.1 of the present
QMSM.
OJSC "INTERPIPE NTRP" has implemented a preventive maintenance program
needed to maintain the infrastructure in appropriate condition to achieve
conformance with product requirements. The preventive maintenance program
includes a scheduled maintenance and repair system for equipment and other
infrastructure elements to ensure continual serviceability of production processes.
OJSC "INTERPIPE NTRP" top management conducts periodical monitoring and
review of infrastructure condition and, if necessary, arranges special measures to
improve infrastructure elements.


Page 54 Total 115
In addition to abovementioned requirements the infrastructure includes the
following:
scheduled action on technical repair and maintenance;
packing, storage and preservation / condition checking of equipment,
tools, devices and measurement means;
operating availability of spare parts and consumables for primary
production equipment;
tasks on documenting, assessment and improvement of maintenance and
repair objectives.
Records
Records of infrastructure review are maintained in accordance with
requirements of item 4.2.4 of the present QMSM and appropriate standard
procedures.
I NTZ-22 "Maintenance and repair of equipment",
I NTZ -31 "Organization of works on preparation and providing the repair of
metallurgical furnaces",
I NTZ -60 "Maintenance of local computer network".
6.4 Work environment
Work environment contains assemblage of factors (physical, environmental,
noise, temperature, humidity, illumination or weather conditions), which influence
productivity, satisfaction, personnel motivation, and which affect product quality and
its conformance that is the effectiveness of Quality Management System
functioning.
OJSC "INTERPIPE NTRP" top management has determined and maintains work
environment, necessary to meet product requirements.
OJSC "INTERPIPE NTRP" personnel keep order in the premises and organize
repairs to make them meet requirements to production processes.


Page 55 Total 115
OJSC "INTERPIPE NTRP" takes measures on ensuring product safety and
minimizing possible risks for employees. Special attention to this is paid in the
process of designing and development and in production processes.
OJSC "INTERPIPE NTRP" employees keep appropriate premises clean and tidy
in order, in good repair in accordance with requirements to production processes.
Records
Records of top management review are maintained in accordance with
procedures.
Internal audit";
Measurement procedures and measuring instructions.
6.5 Action plan in case of unexpected circumstances
OJSC "INTERPIPE NTRP" management develops action plan in case of
unexpected circumstances for mitigation of critical state cause by down time in
collateral system, breakage in supply chain, shortage in personnel, failure of primary
equipment and returns of product recall from service. This includes process analysis
results, as well as plan for overcoming consequences from unexpected
circumstances.
Records
Records of top management review are maintained in accordance with
procedures.


Page 56 Total 115
7.0 PROCESSES OF PRODUCT LIFE CYCLE
7.1 Planning of product life cycle
Planning of product life cycle is a series of consecutive documented steps
beginning with quality objectives and finishing with quality records.

OJSC "INTERPIPE NTRP" product life cycle planning is in accordance with
requirements to other Quality management system processes. Product realization is
one of product life cycle steps.
Product realization is conducted by means of design and development
process to ensure that for products (listed in item 1.1 of the present QMSM) required
Quality objectives, product requirements, required activity on verification, approval,
monitoring, inspection and testing activities specific to a given product, including the
product acceptance criteria are clearly formulated.
Technological instructions developed on the basis of process design and
development represent a quality plan and contain specific regulations on quality,
resources and activity coordination related to a specific process or references to
appropriate instructions and methodologies.
Plan of product manufacture and quality inspection is a document that
specifies sequence of technology operations and checkpoints of product quality
inspection performed by process and inspection personnel, designates controlled
variables (or document references, wherein they are specified), and specifies
nonconformity actions. Plans of product manufacture and quality inspection are
developed for products manufactured on foreign standards or on other normative
documentation for orders, in which availability of plan of product manufacture and
quality inspection is a mandatory requirement.
Procedure of development, verification approval and circulation of
technological instructions, plans of product manufacture and quality inspection, route
technologies is detailed in appropriate standard procedures.

Records of
products and
processes
conformity to
customer
requirements

Quality
objectives.
Requirements
to products

Information
for customers

Contract
conditions and
resource
analysis
before and
during the
process


Page 57 Total 115
7.1.1 When product requirements, including design and development inputs/outputs,
are provided by third-party organization, OJSC "INTERPIPE NTRP" includes these
requirements into the product realization process through the process of design and
development stipulated by item 7.3 of the present QMSM.
Records
Records are maintained as per the requirements set out in item 4.2.4 of the
present this QMSM and appropriate standard procedure.
SP NTZ-S-09 "Product and process design management",
instructions";
I NTZ-27 "Management of design and development process in production
of wheel products.
7.2 Customer related process
The present section of QMSM outlines the processes and methods established
at OJSC "INTERPIPE NTRP" for analysis of product specifications, price, tender
participation, commercial inquiries and supply requests, as well as product supply
contract reviewing and preparation.
7.2.1 Determination of product related requirements
Processes and methods established at OJSC "INTERPIPE NTRP" for analyzing
and determination of customer requirements are detailed in this item.
In the process of determination of product related requirements
OJSC "INTERPIPE NTRP" ensures the following:
requirements are clearly, unambiguously defined and documented,
all differences between requirements of tender participation, inquiry,
request, contract draft and requirements of a contract to be checked are
conformed and settled,
requirements on fulfilling warranty bonds, established in normative
documents for products, are defined,
OJSC "INTERPIPE NTRP" is capable to meet contractual requirements,


Page 58 Total 115
products can meet established quality requirements,
products required to receive a certification mark are within the scope of
normative document requirements for given products,
products that is to receive the API Monogram are within the scope of the
current editions of the API Specification 5CT (for different quality levels) or
API Specification 5L (for various quality levels),
for an agreed period, quality records can be available for evaluation by a
customer or the customers representative,
protection of product quality is to be provided after final inspection and
tests till the moment of shipment, when transfer of ownership takes
places at the moment of delivery to the destination point that is stipulated
in supply contracts (linkage and interaction with processes in item 7.5.5 of
the present QMSM),
when requested by a customer and agreed to by OJSC "INTERPIPE NTRP",
the proposed use or repair of products, which do not conform to specified
requirements, is to be reported to the customer or customers
representative. The interaction between customer and
OJSC "INTERPIPE NTRP" will be organized in a manner to provide prompt
decision making on nonconforming products (linkage and interaction of
processes is described in item 8.3 of the present QMSM),
requirements not stated by the customer but necessary for intended use
of products, will be determined,
product related requirements provided by legislation and/or requirements
established by specifications, if there are any at OJSC "INTERPIPE NTRP",
are defined,
any additional requirements as determined by OJSC "INTERPIPE NTRP" to
be significant and capable to affect product quality will be defined before
product manufacture begins.


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OJSC "INTERPIPE NTRP" defined the detailed procedure of work fulfillment in
calculating of planned prime cost of wheel products. Works on primary cost
formation are performed by economics department.
Records
Records on top management review are maintained as per the requirements
set out in item 4.2.4 of the present this QMSM and appropriate standard procedure.
I NTZ-25 "Calculation of planned prime cost of main and auxiliary shop
products".
7.2.2 Analysis of product related requirements
All data related to product manufacture with non-standard requirements are
analyzed before making a decision on product delivery. This analysis ensures that all
necessary quality related data are defined and OJSC "INTERPIPE NTRP" is capable to
fulfill all requirements specified by a customer.
The analysis results and follow-up actions are documented as per the
requirements set out in item 4.2.4 of the present QMSM.
If a customer has not provided documented requirements
OJSC "INTERPIPE NTRP" takes arrangements to ensure them before undertaking
obligations on manufacturing the product.
If the customer has changed product requirements they are analyzed and
documented in the manner as it is set out above.
Contracts are signed by production and sales director and chief accountant.
Contracts at OJSC "INTERPIPE NTRP" result in a form of a job ticket for product
manufacture (linkage and interaction of processes is described in item 7.5 of the
present QMSM).
Control of amendments and addenda to contracts is administered in the same
manner as applied to original documents.
At OJSC "INTERPIPE NTRP" the analysis of product related requirements is
performed according to a standard procedure.


Page 60 Total 115
7.2.2.1 At OJSC "INTERPIPE NTRP" a documented standard procedure establishes
control features and methods to analyze product related requirements.
In order to analyze requirements related to wheel products
OJSC "INTERPIPE NTRP" uses cross-functional approach (including suppliers, if
required). In the course of requirement analysis the issues related to project, design
and development management are documented in accordance with requirements of
OJSC "INTERPIPE NTRP" efficiently implemented the process ensuring that
established requirements are:
a) individually checked for compatibility (i.e., item by item);
b) discussed and renewed with consideration of suggested changes;
c) evaluated and taken into account;
d) appropriately communicated, understood, acknowledged and fulfilled by
all individuals involved in this process;
e) complete, clear, accurate, unambiguous, can be checked, tested,
maintained and feasible.
The process is set out in detail in the documented standard procedure.
OJSC "INTERPIPE NTRP" measures results of this process by means of KPI.
This process includes contract revision management, as well as customer
feedback.
The process is used at all stages: tender participation, entering into contracts
or order acceptance, amendments to contracts or orders.
OJSC "INTERPIPE NTRP" manages and corrects nonconformities revealed in the
course of requirement analysis process related to wheel products.
In order to decrease risks and execute Project / manufacture Products without
any problems the analysis shall include, at least, the following aspects (see item 7.7
of this QMSM):
key product characteristics;
customer requirements;
legislative and normative requirements;
application scope;


Page 61 Total 115
time;
expenses;
quality;
resources;
information interchange;
risks;
changes.
Reports are forwarded to OJSC "INTERPIPE NTRP" top management and jointly
with them orderly analyses (approval of preventive actions) are carried out covering
the following:
existing situation in comparison with planned situation as per time
schedule;
forecast (time to completion);
actions in unexpected circumstances;
response plans;
actualization of risk assessment and follow-up actions regarding the list of
unsolved issues.
Risks are identified, tracked, and consequences thereof are decreased to an
acceptable level, where applicable.
If necessary, the information on risks in circulated within
OJSC "INTERPIPE NTRP" and communicated to the customer.
Note 1: These requirements are also applicable to after-sale service described
in item 7.10 of this QMSM.
Records
Records are maintained as per the requirements set out in item 4.2.4 of the
present this QMSM and appropriate standard procedure.
execution control".


Page 62 Total 115
7.2.3 Customer communication
OJSC "INTERPIPE NTRP" implemented efficient measures of customer
communication with regards to the following:
information about products,
inquiries, agreements, contracts and order management (including
clarification of customer requirements, specification of customer
requirements, providing with product related information),
customer feedback, including customer complaints/objections.
OJSC "INTERPIPE NTRP" defined and implemented efficient methods for
communication of all information related to supplies in accordance with customer
contract requirements throughout the entire Supply chain.
Note 1: This requirement can be a part of enterprise supply chain
management.
Note 2: Within a Project a proactive informing with regards to supplier
management can be established.
OJSC "INTERPIPE NTRP" defined and implemented the Process of external and
internal communication (see item 5.5.3).
7.2.4 Management in holding a tender
In addition to requirements related to Products (see item 7.2.2 of this QMSM)
OJSC "INTERPIPE NTRP" defined, implemented and maintains the Process, and
documented the standard procedure to ensure that requirements defined at tender
stage are:
a) individually checked for compatibility (i.e., item by item);
b) discussed and renewed with consideration of suggested changes;
c) evaluated and taken into account;
d) appropriately communicated, understood, acknowledged and fulfilled by
all individuals involved in this process;
e) complete, clear, accurate, unambiguous, can be checked, tested,
maintained and feasible.
Activity results of this Process are measured by means of KPI.


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Before presenting commercial quotation OJSC "INTERPIPE NTRP" uses cross-
functional approach (including suppliers, if required) to study customer (consumer)
requirements, legislative and normative requirements. OJSC "INTERPIPE NTRP"
confirms the possibility of wheel product supply as required by tender conditions
with preparation of appropriate documents. In the course of tender analysis
OJSC "INTERPIPE NTRP" performs the procedure of quotation approval including
planning, resources and pricing.
Requirements to wheel products, risks and capabilities are formulated,
controlled and justified.
Records
Records on top management review are maintained as per the requirements
set out in item 4.2.4 of the present this QMSM and appropriate standard procedure.
7.2.5 Legal transfer of property and rights
OJSC "INTERPIPE NTRP" may entrust and transfer legal rights and property to
an individual person, firm, company or an organization (hereinafter referred to as
"Legal assignee") to perform the following actions:
representation of OJSC "INTERPIPE NTRP" products in the market and for
product supply tenders with the obligatory participation of
OJSC "INTERPIPE NTRP" representative,
signing of contracts on supply of OJSC "INTERPIPE NTRP" products,
provided that all the requirements and instructions mentioned in this
section of QMSM have been observed.
mutual relations between OJSC "INTERPIPE NTRP" and "Legal Assignee"
are stated in a the written document and legalized in the contract.
Records
Contracts and/or documents associated therewith are retained by appropriate
departments as per the requirements set out in item 4.2.4 of the present QMSM and
appropriate documents.
execution control";
SP NTZ-S-14 "Data analysis and process assessment criteria";


Page 64 Total 115
manufacture";
I NTZ-51 "Evaluation of customer satisfaction";
M NTZ-S-05 "Methodology of work order with customer claims and
complaints on product inadequate quality".
7.3 Design and Development
OJSC "INTERPIPE NTRP" developed and maintains the Process of designing and
development, which is documented as a standard procedure.
Activity results of this process are measured by means of KPI.
The requirements to designing and development, described in item 7.3 of this
QMSM are fulfilled for all new technologies / wheel products.
Documentation and preparation related to application of wheel products are
an integral part of the system and are planned and developed with emphasis to
safety in critical service conditions. OJSC "INTERPIPE NTRP" ensures that
documentation and training required for safe service of wheel products is identified,
developed, supplied as an integral part for ensuring the safe service.
Note 1: The essential attention is paid to prevention, but not to revealing, of errors.
7.3.1 Design and Development planning
OJSC "INTERPIPE NTRP" plans and controls the process of product design and
development.
During product design and development planning OJSC "INTERPIPE NTRP"
defines:
design and development process stages;
review, checking and approval of information that is appropriate to each
design and development stage;
responsibilities and authorities for design and development process
OJSC "INTERPIPE NTRP" manages the interfaces between various groups
involved in design and development to ensure effective communication and clear
assignment of responsibility.


Page 65 Total 115
During implementation of design and development process the results of
planning (plans, programs, diagrams, etc.), if necessary, can be updated.
Amendments to results of planning are developed, endorsed and approved following
the same procedure as for initial document.
7.3.1.1 A documented standard procedure of OJSC "INTERPIPE NTRP" established
features and methods for product design and development control.
OJSC "INTERPIPE NTRP" performs the following actions according to
supplementary requirements of API Q1:
documented control of current OJSC "INTERPIPE NTRP" documentation is
utilized throughout entire design and development process;
in case when design and development process is performed by a third
party, OJSC "INTERPIPE NTRP" ensures that selection of the executor is
made in accordance with requirements of section 7.3.
7.3.1.2 Design documentation shall include description of methods, conventional
theoretical procedures, proposals, formulas and calculations.
OJSC "INTERPIPE NTRP" defines the sequence of tasks, mandatory steps,
essential stages and configuration management method.
If necessary, depending on the complicacy OJSC "INTERPIPE NTRP" shall
consider the necessity of the following actions:
structuring of works on designing of essential structure elements;
for each structure element task analysis and required design and
development resources.
In case of such analysis the following is to be taken into consideration: responsible
individual, project description, inputs, planned limitations and working conditions. In
such cases as designing for ensuring safety, maintainability, protection of
environment, the appropriate designing conceptions are to be studies and applied
where required.


Page 66 Total 115
7.3.2 Design and development inputs
Inputs related to product requirements, process parameters that require
approval are defined and documented. Records of these inputs are to be maintained
(see item 4.2.4).
In order to provide completeness and accuracy of inputs the documents on
design and development inputs shall include, at least, information confirming that:
design and development inputs are defined and include product functional
characteristics, requirements of normative documents, information taken
from previous similar designs (if necessary), and other requirements that
are important for design and development,
design and development inputs are documented,
selection of design and development inputs has been checked for
adequacy,
requirements are complete, unambiguous and non-contradictory.
7.3.2.1 OJSC "INTERPIPE NTRP" reviews product related design and development
inputs. These data includes customer established requirements (see item 7.2.2).
Prior to placing an offer before a customer OJSC "INTERPIPE NTRP" is to ensure
that new technologies / new products (developed in accordance with market
requirements) are validated. Parameters of reliability, availability, maintainability
and safety / cost of life cycle (RAMS/LCC are to be taken into consideration as
design inputs on a mandatory basis.
7.3.3 Design and development outputs
Outputs of design and development are identified and checked with against
inputs and are reviewed prior to release.
Outputs will provide information on purchasing, production and acceptance
criteria in order to facilitate product realization.
Design and development outputs will clear specify product characteristics that
are essential for its safe and proper use.
7.3.3.1 OJSC "INTERPIPE NTRP" documents design and development outputs to make
it possible to control and check them against requirements of design and
development inputs.


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Design and development outputs are mandatory to be expressed in terms
that can be checked against requirements to design and development inputs of
production process.
Note 1: Design and development outputs include, for example, the following
(see item 7.5 of this QMSM):
specifications and drawings;
information on materials;
flow chart / location of production process;
wheel product production and quality inspection plan;
through-route technologies;
technological instructions, measurement procedures, measuring
instructions;
list of measuring means;
working instructions
process and product acceptance criteria;
information on quality, measurement, reliability, maintainability;
activity results on error prevention (for example, FMEA), if required;
methods of quick detection and responding to product / production
process nonconformities.
7.3.4 Design and development review
Systematic review is made at appropriate stages according to schedules
measures (7.3.1) in order to:
assess capability of design and development outputs 0to meet
requirements,
reveal any problems and making suggestions on their removal.
The review is carried by representatives of subdivisions involved in the
process of reviewed stage of the entire design and development process.
Records of review outputs and any necessary actions shall be maintained
(see item 4.2.4).
7.3.4.1 Final review is to be carried out by qualified specialists that did not
participate in the process development. Review results are to be documented in
accordance with a procedure established in OJSC "INTERPIPE NTRP".


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Systematic design and development reviews include the following:
- permission for proceeding to the next design and development stage.
Note 1: Design and development review is a part or inputs for analysis (see
item 7.7.5 of this QMSM). Design and development is carried out at each stage (for
example, configuration, designing, modular design).
If necessary, the review includes study of other functions required for product
characteristics analysis (for example, expenses, RAMS and service reliability).
Records
Records on top management review are maintained in accordance with
requirements of item 4.2.4 of the QMSM and appropriate standard procedures.
7.3.5 Design and development verification
Design and development verification shall be performed in accordance with
action plan (see item 7.3.1 of this QMSM) to ensure that design and development
outputs meet design and development inputs requirements of the given process.
Records of the results of the verification and any necessary actions shall be
maintained (see item 4.2.4).
Note 1: Verification of design and development is carried out at each stage
(for example, configuration, designing).
7.3.6 Design and development approval (validation)
Design and development approval (validation) shall be performed in
accordance with action plan (see item 7.3.1) to ensure that the resulting products are
capable of meeting the requirements for the specified application or intended use.
Validation process shall be completed prior to the delivery or implementation of the
product.


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Design and development approval (validation) is performed for all established
service conditions.
In case when approval (validation) requires testing the documented
procedure is developed, approved and documented as applicable (see item 4.2.3 of
this QMSM). These tests are planned, maintained, analyzed and documented in order
to guarantee the completion and ensure the following:
testing plans or technical requirements determine the product to be
checked and required resources, define objectives and testing conditions, registered
parameters and required acceptance criteria, testing conditions and capability of
environment conditions to recover;
testing procedures include the conducting procedure, sequence of
fulfilment and record keeping;
appropriate product configuration for testing is approved;
requirements to the plan and procedures of testing are met;
acceptance criteria are available.
Records
Records of the results of approval and any necessary actions shall be
maintained (see item 4.2.4).
7.3.7 Control of design and development changes
Design and development changes shall be identified and records maintained.
Changes shall be reviewed, verified and validated, prior to implementation. The
review of design and development changes includes evaluation of the effect of
changes on constituent parts and product already delivered. Any such changes
require the same verification as the original designed documents.
OJSC "INTERPIPE NTRP" employs the process for suspended and unplanned
works in the course of design and development.
Note 1: Management of design and development changes can be a part of
configuration management.


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7.3.8 Design approval
This is an exclusion because it is not applicable due to the nature of enterprise
activity.
Records
Records of review results and any necessary actions shall be maintained (see
item 4.2.4 of this QMSM).
SP NTZ-S-09 "Product and process design management.
of wheel products";
I NTZ-42 "Project management".
7.4 Purchasing
7.4.1 The purchasing process
OJSC "INTERPIPE NTRP" ensures that purchased services, raw and
supplementary materials, products necessary for production of
OJSC "INTERPIPE NTRP" conform to specified requirements for Quality management
system, standards and product specifications. The scope of control depends on the
criticality of purchased product against to the quality requirements of finished
products.
Suppliers are selected upon their ability to supply products in accordance with
specifications.
Details of criteria for selection, evaluation and re-evaluation are listed in
7.4.1.1 OJSC "INTERPIPE NTRP" standard procedures establish control features and
methods to control the process of purchasing and supplier selection.
OJSC "INTERPIPE NTRP" purchases the following services: transport services,
services on Quality and product management system certification (including
surveillance audits), accreditation of laboratories, examination of normative


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documents, special designing, scientific work and statistical researches, special
equipment repair, services on metrological certification of metrological equipment,
services of independent testing laboratories, services on product quality inspection,
provided by independent inspecting organizations, services on conducting processes
that need approval.
7.4.1.2 Criteria for selection, evaluation and re-evaluation.
There are seven criteria, one or more of which are to be selected to
determine whether a supplier can satisfy contract or purchase order requirements:
final on-site inspection of supplier's products by representatives of
OJSC "INTERPIPE NTRP"
inspection of purchased products or services by OJSC "INTERPIPE NTRP" in
process of supply to OJSC "INTERPIPE NTRP" (linkage and interaction of
processes are described in item 8.2.4 or the present QMSM),
monitoring and auditing by OJSC "INTERPIPE NTRP" whether a supplier
meets requirements of OJSC "INTERPIPE NTRP" to supplies (linkage and
interaction of processes are described in item 8.2.4 or the present QMSM)
supplier makes available Quality management system that is certified by
accredited certification body against requirements of ISO 9001:2008,
makes available documented Quality management system that meets
requirements of a standard similar to ISO 9001:2008,
materials, products, equipment or services to be supplied are certified by
state or international accredited body or by accredited independent or
state laboratory,
a supplier has reputation of an organization that for a long time supplies
products and services that meet quality requirements as required by
appropriate documents of OJSC "INTERPIPE NTRP",
manufacturer that holds the right to apply API monogram is considered as
certified supplier of materials and equipment that meet requirements of
OJSC "INTERPIPE NTRP" and customer thereof and are intended to be used
as a part of or in the process of OJSC "INTERPIPE NTRP" manufacture of
API-monogrammed products.
7.4.1.3 In cases when OJSC "INTERPIPE NTRP" makes decision to use services of a
third party organization to perform processes that require approval, the supplier of a
given service shall meet requirements related thereto of item 7.5.2 of the present
QMSM.


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In addition to ISO 9001:2008 OJSC "INTERPIPE NTRP" ensures the availability of
product purchasing process.
OJSC "INTERPIPE NTRP" defined, implemented and maintains the process of
selection, evaluation and re-evaluation and rating of suppliers. Activity results of this
process are measured by means of KPI (see Annex to this QMSM).
OJSC "INTERPIPE NTRP" implemented the system for quality assurance of all:
products purchased at suppliers;
products purchased at suppliers indicated by customer.
OJSC "INTERPIPE NTRP" ensures the following:
a) maintenance and application of the list of checked suppliers with
indication of their approval field;
b) deployment of customer requirements throughout the entire Supply chain,
and, in particular, employment of checked consumers of Special processes by
OJSC "INTERPIPE NTRP" and its suppliers, if necessary;
c) gave the subdivisions bearing responsibility for approval of supplier
quality system the authority to reject the source of purchase;
d) provides assessment and management of risks related to supplies of
critical products throughout the entire supply chain;
OJSC "INTERPIPE NTRP" cultivates suppliers for the purpose of improvement of
their production activity.
OJSC "INTERPIPE NTRP" suppliers shall pass certification regarding conformity
with requirements of ISO 9001:2008 in accredited certification body.
Records
Records of evaluations and any relevant resulting actions are maintained as
per the requirements set out in item 4.2.4 of the present QMSM.
SP NTZ-S-03 "Purchasing of raw and supplementary materials,
exchangeable equipment and services used in production work",
SP NTZ-S-10 "Evaluation of producer and development of "The list of
tested suppliers (producers)",


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I NTZ-20 "Creation, renewal, stacking and storage of raw materials, goods,
half-finished products, add-in products, fuel and tools",
I 243-S-21 "Provision of workshops with conversion metal (ingots, tube
stock, strip)",
I NTZ-23 "Provision of workshops with change-over equipment and
technological tooling",
I NTZ-82 "Arrangement product acceptance by independent inspectors".
7.4.2 Purchasing information
Purchasing information includes a complete list product or service
specifications.
Requirements to supplier's Quality management system shall be specified in a
contract for supplies.
OJSC "INTERPIPE NTRP" prior to signing of a contract makes sure that
information contained in a contract is correct and adequate.
7.4.2.1 OJSC "INTERPIPE NTRP" documents purchasing information that is given to a
customer. General points and requirements to placing orders on purchasing of raw
materials, goods, change-over equipment used in production, and services are set out in
detail in appropriate standard procedure.
In addition to ISO 9001:2008 purchasing information regarding products
includes, as appropriate, the following:
a) name other identification, necessary data on technical requirements,
drawings, requirements of process (to include special ones), instructions on
inspection and other technical data;
b) requirements to designing, testing, expert appraisal, inspection and
associated instructions on acceptance performed by organization;
c) requirements to test pieces (for example, method of manufacture,
quantity of test pieces, storage conditions) in order to pass project approval,
performing inspection, conducting research or audits;
d) requirements regarding the following: supplier notices to organization
about nonconforming products, organization's measures on approval of supplier's
nonconforming materials;
e) requirements on notification about changes made by supplier to products
and/or process and, where required, on receiving organization's approval;


Page 74 Total 115
f) right of organization, it's customer and government bodies to have an
access to all facilities used in order fulfillment, and to all used records as well;
g) requirements to customer regarding communication to appropriate
suppliers, the requirements from purchasing documentation, if necessary;
h) requirements to logistics in supply chain;
i) requirements to scope of product-related supplies.
OJSC "INTERPIPE NTRP" ensures selection of suppliers based on in-depth analysis
carried out prior to negotiations.
In the course of negotiations the following is taken into account:
conformity level of preliminary purchasing information;
requirements on general expenses (including LCC);
product quality, cost and timelines of previous supply maintenance.
Records
Purchasing information with regards to critical materials or services is
maintained in such a manner as to ensure that processes of Quality management
system are effective. The branch directors are responsible for maintenance of
purchasing information with regards to critical materials, equipment and services as
per the requirements set out in item 4.2.4 of the present QMSM.
exchangeable equipment and services used in production work".
7.4.3 Verification of purchased products
To prevent commercial usage of products failing to meet requirements of
normative documents and terms purchasing contract OJSC "INTERPIPE NTRP"
provides incoming inspection of purchased products.
Methods and features used at incoming inspection are chosen with
consideration of OJSC "INTERPIPE NTRP" documentation requirements.
In cases when OJSC "INTERPIPE NTRP" is planning to inspect manufacturing
technology and quality of purchased products at producer site or functioning of
Quality management system thereof, then a purchase contract shall specify
inspection terms and procedure of product transfer.
7.4.3.1 OJSC "INTERPIPE NTRP" processes ensuring that purchased products meet
requirements of products standards and requirements to purchasing are set out in
appropriate standard procedures and organizational procedures.


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OJSC "INTERPIPE NTRP" defined and implemented verification process, for
example, inspection or audit at supplier's site supported with inspection sheets and
master gauges.
The inspection (verification) includes the following:
obtainment of evidence about product quality from suppliers (for
example, supporting documentation, quality certificate, certificate of
conformity, test report, statistical data records, process control
records);
analysis of required documentation;
inspection of products as-received;
inspection and audit of supplier;
The purchased products will not be used until it is checked for conformity to
specified product or ill it requirements it receives an official permission from the
supplier regarding the deviation (see item 8.3.2 of this QMSM).
In cases, where OJSC "INTERPIPE NTRP" uses reports on inspection
(verification) tests of purchased products, the data of such reports are to meet
applicable technical requirements.
OJSC "INTERPIPE NTRP" periodically checks reports on testing of starting
materials.
OJSC "INTERPIPE NTRP" defines measures in case of delegating the inspection
activity to supplier or in case of supplier certification. In a case when
OJSC "INTERPIPE NTRP" delegates the inspection authority to supplier the
requirements to this delegating shall be specified in a contract and the list of
delegated authorities are to be maintained.
Note 1: In case of alteration of product design or production process these
requirements to delegating can be accordingly revised.
Records
Records about inspection of critical materials; equipment and services are
maintained to ensure that Quality management system activity and performance are
effective and that critical materials, equipment and services meet specifications.
Chiefs of appropriate subdivisions are responsible for management of procurement
records as per the requirements set out in item 4.2.4 of the present QMSM.


Page 76 Total 115
OJSC "INTERPIPE NTRP";
wheel products for railway industry;
exchangeable equipment and services used in production work"
SP NTZ-S-14 "Data analysis and process assessment criteria".
NTZ-01 "Subcontractor interaction procedure when finding non-
conformities in subcontracted work",
M NTZ-06 "Methodology of conducting incoming inspection of stock
quality,
M NTZ-S-07 "Incoming inspection of raw, supplementary and semi-
manufactured materials, and exchangeable equipment",
NTZ-18 "Supplier interaction procedure when finding non-conformities
in quality and quantity of purchased products".
7.4.4 Supply chain management
Supplies from suppliers are performed on schedule in accordance with
requirements to purchasing.
The order shall be supported with information system IT-enterprise, which:
covers supplies;
allows to access the information about customer, supplier and production
at key stages of purchasing process, and
ensures traceability of order progress.
OJSC "INTERPIPE NTRP" orderly presents to its suppliers the forecast on orders
in order enable them in management of their capabilities accordingly. Supplier shall
define and communicate to OJSC "INTERPIPE NTRP" the information about any short
quantity, ensure inspection and take measures on catching up with supply schedule.
Note 1: Identification of potential supply shortage is a part of risk
management that is performed in accordance with item 7.7.8 of this QMSM.


Page 77 Total 115
Note 2: The identified supply shortage is considered within a matter of action
plan for the case of unexpected circumstances in accordance with item 6.5 of this
QMSM.
Records
Records of approval results and any required actions are maintained (see.
Item 4.2.4).
exchangeable equipment and services used in production work".
7.5 Production provision
Production provision process is carried out in accordance with a procedure,
which ensures compliance with the ISO 9001, DSTU ISO 9001, API Specification Q1,
AAR Specification M-1003 and IRIS.
Note 1: OJSC "INTERPIPE NTRP" ensures that production process inputs are
presented in such a manner so they can be checked (verified) against resulting
design and development requirements, including:
specifications and drawings;
information on materials;
flow chart / location of production process;
wheel production and quality inspection plan;
working instructions;
acceptance criteria of processes and products;
information on quality, measurement, reliability, maintainability;
activity results on error prevention (for example, FMEA), if required;
methods of quick detection and responding to product / production process
nonconformities.


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7.5.1 Production control
OJSC "INTERPIPE NTRP" plans and provides production under controlled
conditions such as:
availability of technological and working instructions, plans of product
manufacture and quality inspection, route technologies,
availability of information on product characteristics,
infrastructure and equipment resources as required,
trained and competent personnel,
documenting and reviewing of critical requirements,
availability and use of inspection and measurement means,
control of any production provision means, where subsequent inspection
or measurement cannot inspect the resulting output (this includes any
services, where deficiencies become apparent during or after delivery),
scheduled implementation and review of organizational and technological
instructions,
use of approved processes,
use of approved equipment,
performing release and delivery activities.
As OJSC "INTERPIPE NTRP" does not provide maintenance of its products after
delivery, similar requirements are considered when preparing the vendor contract.
7.5.1.1 OJSC "INTERPIPE NTRP" activity of production control is set out in appropriate
documented procedure.
7.5.1.2 OJSC "INTERPIPE NTRP" documents all process control features and presents
as technological instructions, route technologies, and other types of control features
described in appropriate documentation that include requirements to compliance
checking against plans of product manufacture and quality inspection or product
normative documents. These documents contain references to instructions,
requirements to workmanship quality and process criteria, testing and control, and
customer inspection in specified checkpoints.


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Controlled conditions for all working shifts in production of railway products at
OJSC "INTERPIPE NTRP" include the following:
- records of all products in the course of production process (for example,
batch size, order distribution, nonconforming products);
- evidence that fulfilled operations on manufacture and inspection are
authorized and completed as planned in production schedule.
OJSC "INTERPIPE NTRP" defined, implemented and maintains the process for
management of suspended and unexpected production works.
wheel products for railway industry",
7.5.1.3 Production scheduling
Production of wheel products at OJSC "INTERPIPE NTRP" (including testing
equipment) is:
planned (short-, medium- (MPS is the main production schedule) and long
term (SOP is OJSC "INTERPIPE NTRP" sales and development plan)) for
fulfillment of customer requirements on purchasing;
supported with information system allowing to have the access to
production information at key process stages;
provided with order progress traceability.
OJSC "INTERPIPE NTRP" applies customer forecasts and orders for planning,
capability evaluation and periodic resource control depending on work load with
consideration of possible risks (for example, additional order receipt in extremis,
supplier failure).
Production "bottlenecks" are identified and improvement action plan is
developed.
execution control";
manufacture".


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7.5.1.4 Production documentation
Production operations are performed in accordance with approved data.
These data contain the following:
- drawings, work piece mix, process flow chart, including inspection
operations, production documentation (for example, wheel product manufacture and
quality inspection plans, through-route technologies, process charts, working
instructions, technological instructions) and documents on inspection (see item 8.2.4
of this QMSM);
- list of tools and software for computer numerically controlled machines
(CNC) and other relevant instructions related to operation thereof.
and registration of documentation developed by plant services;
instructions";
SP NTZ-S-15 "Control of quality records";
manufacture".
7.5.1.5 Production process change management
OJSC "INTERPIPE NTRP" developed, documented and maintains the process
production process change management. The personnel holding the right to approve
production process changes is identified.
OJSC "INTERPIPE NTRP" defined and receives change approvals from
customers and/or government bodies in accordance with contracts of customers
and/or legislative and normative requirements.
Changes affecting process, production equipment, tools and software are
documented.
OJSC "INTERPIPE NTRP" maintains records of date and sequential number of
each change implemented in production.
Note 1: Item 7.5.1.3 refers to change management process the requirements
to which are specified in item 7.13 of this QMSM.


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Records
Quality records of approval results and any required actions are maintained
(see item 4.2.4.
and registration of documentation developed by plant services;
instructions",
SP NTZ-S-15 "Control of quality records",
manufacture";
railway industry"
7.5.1.6 Equipment and tool management
OJSC "INTERPIPE NTRP" documented the procedure for provision of production
with serviceable production equipment and tools in accordance with project outputs.
Note 1: Requirements on approval (validation) of production equipment are
specified in item 7.9 of this QMSM.
Records
Quality records of product realization process are maintained as per the
requirements set out in item 4.2.4 of the present QMSM and appropriate standard
procedures.
On customer demand quality records will be retained and available for
evaluation and customer review, or responsible individual for an agreed period of
time.
Quality records on each order are maintained by an appropriate department
or shop.
Conformity records of product, appropriate equipment and personnel
operating this equipment are maintained and stored in appropriate departments,
laboratories or shops for at least 5 years or for a period prescribed by industry
standard.


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instructions";
SP NTZ-S-15 "Control of quality records";
manufacture";
I NTZ-22 "Maintenance and repair of manufacturing equipment (TOiR)".
7.5.2 Validation of production provision processes
OJSC "INTERPIPE NTRP" approves processes performed in accordance with
technological procedures tested for compliance and approved by the chief engineer.
Abovementioned processes are developed by means of design and development. All
procedures, associated with processes requiring approval, are accounted documents
located directly at the division, where the appropriate process is performed.
With regards to such processes OJSC "INTERPIPE NTRP" established measures,
which are set out in detail in appropriate procedures and include:
approved processes,
list of approved equipment,
established certified personnel qualification level,
definition of review and process approval criteria,
use of specified methods and procedures,
requirements to records,
process revalidation.
7.5.2.1 Processes requiring validation (steel-making, heat treatment, cold-working,
hot- working, coating, shot-peening and non-destructive inspection) are developed
by means of designing and developing of parameters thereof, including design and
development planning stages, determining design and development inputs, working
out design and development outputs, review, design and development control and
validation. Approval of such processes is carried out to ensure their ability to achieve
planned results.


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Management of special processes is performed in accordance to contractual
and/or in-house requirements.
OJSC "INTERPIPE NTRP" employs the process of special process management
including evaluation and approval thereof prior to usage in accordance with
documented technical requirement and any follow-up action.
All personnel employed in special processes is identified, trained and officially
approved.
Records
Validation and revalidation of each production-related process is documented
and maintained by the chief of technical department in order to demonstrate the
ability of specified processes to achieve planned results.
Records of process compliance that need validation, appropriate equipment
and personnel operating this equipment are documented and stored in appropriate
department, laboratory or workshop for at least 5 years or for a period prescribed by
instruction, decree, customer requirement or in industry production standard
requirements.
P-0022 "Regulations on OJSC "INTERPIPE NTRP" personnel training and
development",
SP NTZ-S-05 "Quality Management System structure and functions",
instructions",
I NTZ-01 "Validation of production processes",
I NTZ-22 "Maintenance and repair of manufacturing equipment (TOiR)".
7.5.3 Identification and traceability
The identification and traceability process is performed according to
requirements of instructions prepared in accordance with ISO 9001, DSTU ISO 9001,
API Specification Q1, AAR Specification M-1003 and IRIS.
OJSC "INTERPIPE NTRP" ensures identification and traceability of products on
all stages of product realization from receipt of a written confirmation to delivery
and installation as specified by OJSC "INTERPIPE NTRP" and the customer.


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Traceability is achieved by documented process of control and recording of
unambiguous identification of products.
7.5.3.1 OJSC "INTERPIPE NTRP" established control features in organizational
instructions and procedures, technological instructions for product identification and
traceability.
7.5.3.2 Control features include requirements to preservation or replacement of
identification and traceability marks.
7.5.3.3 The product status is determined with consideration of measurement and
inspection requirements.
7.5.3.4 Program of API monogram application
Marking procedure
Marking procedure establishes the order of API monogram application. The
marking includes license number, manufacturing date.
Removing the monogram
Control parameters for removing API monogram are established, if products
do not meet API requirements.
Authorities
The authority and responsibility for application and removal of API monogram
are clearly defined in an appropriate procedure.
Records
Records supporting the identification and traceability program and all
instructions used in technological process, inspection and testing reports, and, on
demand, records of nonconformity are maintained as per the requirements set out in
item 4.2.4 of the present QMSM.
I NTZ-S-02 "Application of API monogram";
I NTZ-S-06 "Organization of product storing and shipment in plant
conversion workshops",
I NTZ-39 "Management of nonconforming products";
M NTZ-04 "Periodic product quality inspection in dispatch warehouses in
plant shops",
technological instructions.


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7.5.4 Customer property
OJSC "INTERPIPE NTRP" exercises due care with customer property.
The property, as received, is identified, inspected, stored, protected and
preserved in the same manner as purchased materials.
If any property is found to be damaged or unfit for further use, then it will be
isolated quarantined and reported to the customer for disposition.
7.5.4.1 OJSC "INTERPIPE NTRP" documented procedures established control features
for inspection, storage, maintenance and control of customer property.
Records
Records that provide evidence of control of customer property are maintained
as per the requirements set out in item 4.2.4 of the present QMSM.
execution control".
M NTZ-07 "Incoming inspection of raw materials, goods, semi-finished
products and change-over equipment",
7.5.5 Preservation of products
The Preservation of products is carried out in accordance with a procedure,
which ensures compliance with the ISO 9001, DSTU ISO 9001, API Specification Q1,
AAR Specification M-1003 and IRIS.
7.5.5.1 The instruction on product preservation ensures preservation of product
conformity during -house processing and delivery to the planned destination
point. This includes arrangements for identification, handling, packaging, stacking
and storage.
7.5.5.2 Products stored in warehouses is to be inspected at certain intervals to
detect deterioration evidence, which may result in material nonconformity.
In accordance with technical and product requirements and/or applicable
normative requirements OJSC "INTERPIPE NTRP" includes in the activity on product
conformity preservation the following;
cleaning;
special handling with products sensitive with storage conditions;
marking and labeling;
control of storage period and stock turnover;


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special handling of hazardous materials.
OJSC "INTERPIPE NTRP" ensures that product documentation required in
accordance with contract/order conditions is available upon delivery and protected
from loss and damage.
Note 1: These requirements are also applicable to products supplied to
organization, including spare parts.
Records
Records of approval results and any required actions are maintained (see item
4.2.4).
M NTZ-04 "Periodic product quality inspection in dispatch warehouses in
plant shops";
I NTZ-S-06 "Organization of product storing and dispatch in shops of the
plant",
I NTZ-20 "Stock production, renewal, stacking and storage of raw
materials, goods, semi-finished products, assembling items, fuel and
tooling;
I NTZ-29 "Preservation of product conformity and periodic product quality
inspection in warehouses and shops";
I NTZ-71 "Procedure of passing finished products to dispatch warehouse
and registration customer shipment documents",
7.6 Control of equipment for measurement and monitoring
Control of equipment for measurement and monitoring is carried out in
accordance with an organizational procedure, which ensures compliance with
ISO 9001, DSTU ISO 9001, API Specification Q1, AAR Specification M-1003 and IRIS.
OJSC "INTERPIPE NTRP" developed processes, which ensure that monitoring
and measurements can be carried out and are carried out in accordance with
requirements to monitoring and measurements.
To ensure valid results OJSC "INTERPIPE NTRP" guarantees that measuring
equipment is:
calibrated or checked in certain time intervals, or prior to usage, traceable
in accordance with international or national standards for measuring, and,
in case when such references that are used for checking or calibration are
not available, features used for calibration are to be registered (item
4.2.4),


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safeguarded from adjustments that would invalidate the measurement
result,
protected from damage and wear during handling, storage and stacking,
in serviceable order. When the equipment is found to be nonconforming to
requirements the validity of previous measuring results are to be
assessed. Assessment of products checked with this equipment is to be
carried out as well.
When using computer software in monitoring and measurement, the ability
thereof to satisfy intended application tasks is to be confirmed. This is carried out
prior to initial use and in case of necessity.
7.6.1 OJSC "INTERPIPE NTRP" by means of documented instructions and procedures
established control features and methods of measurement processes, calibration
and maintenance of inspection and measurement means. Instructions and
procedures include: type of inspection and measurement means, individual
identification thereof, location, periodicity of checking, method or checking and
acceptance criteria.
7.6.2 Calibration (checking) of equipment used for monitoring and measurements is
carried out under controlled environmental conditions in accordance with
requirements of product standards and other normative documents.
OJSC "INTERPIPE NTRP" ensures that measurement equipment is removed
from service in accordance with established method when calibration is required.
OJSC "INTERPIPE NTRP" maintains the list of equipment used for monitoring
and measurement and describes a process employed for calibration thereof,
including description of equipment type, unambiguous identification. Location,
frequency of checks, method of checking and acceptance criteria.
OJSC "INTERPIPE NTRP" ensures conformity of environment conditions when carrying
out calibrations, measurements and tests.
Records
Records of calibration results for all instruments, measuring and testing
equipment needed to provide evidence of product conformity to specifications shall
be maintained as per the requirements set out in item 4.2.4 of the present QMSM.


Page 88 Total 115
NTZ-11 "Certification of testing equipment";
I NTZ-09 "Procedure for every-shift calibration of scales",
I NTZ-S-10 "Organization and procedure of calibration of electrical
measuring instrumentation",
I NTZ-S-18 "Metrological certification of measurement instrumentation",
I NTZ-24 "Metrological assurance of production",
I NTZ-32 "Each-shift calibration of linear-angular measurement
instrumentation in plant subdivisions",
I NTZ-34 "Procedure of fabrication, operation and calibration of
measurement instrumentation",
I NTZ-35 "Organization and procedure of calibration of temperature, and
fluid and gas consumption measurement instrumentation in shops of the
plant",
I NTZ-40 "Organization and procedure of calibration and checking pressure
measurement instrumentation in workshops of the plant".
7.7 Project management
OJSC "INTERPIPE NTRP" implemented the process of new wheel product
development referring to appropriate project management fields with description of
roles and responsibilities, bringing all required enterprise subdivisions into
multifunctional project team.
Note 1: Process application scope covers the period from tender till the end of
warranty (project life cycle).
Records
4.2.4).


Page 89 Total 115
7.7.1 Integration management
An integrated project fulfillment plan is developed to reflect specific project
fulfillment rules throughout the entire project life cycle, including change
management within project plan.
Note 1: The multifunctional project team includes employees involved in
designing, technology, quality, manufacture, technical support and other employees
of the enterprise, including, if necessary, representatives of supplier and customer.
Note 2: Project management process, as well as new product development
process, can be a part of general product life cycle process.
Records
4.2.4).
7.7.2 Work scope management
OJSC "INTERPIPE NTRP" ensures that the scope of all works is defined, divided
into groups, inspected and verified.
OJSC "INTERPIPE NTRP" manages work scope changes and ensures
observation thereof throughout the entire project, and reflects them in project plan.
Note 1: Work scope management regarding design and development is
specified in detail in item 7.3.1 of this QMSM.
Records
4.2.4).
7.7.3 Time management
OJSC "INTERPIPE NTRP" ensures timely completion of the project be means of
defining of:
specific actions, which shall be performed in order to achieve project
results;
linkage between various work stages, including supplier's activity as well;
sequence and duration of actions, requirements to recourses;
critical method.
Analysis, management and keeping of records regarding this work package
(for example, project schedule) are performed on a regular basis.


Page 90 Total 115
In case of inevitable deviation from due dates OJSC "INTERPIPE NTRP" defines
and performs appropriate corrective actions in order to avoid negative effect on
customers.
In case of making amendments in supply schedule OJSC "INTERPIPE NTRP"
coordinates these changes with customers.
Project schedule shall be orderly updated with regards to:
activity on development of measures jointly with suppliers (essential
stages of joint work with suppliers);
identification and management in case of long terms of order fulfilment.
Records
4.2.4).
7.7.4 Cost management
At OJSC "INTERPIPE NTRP" the process of const management is applied for:
planning of all project-related expenses throughout the entire project life
cycle;
orderly traceability of expenses on each work group and on each item in
the general cost structure, including cost estimation regarding project
completion.
Records
4.2.4).
7.7.5 Quality management
OJSC "INTERPIPE NTRP" implemented the process for project result
management.
Project results are managed with regards to:
identification, specification, fulfilment and control;
approval (validation) and timely supply;
customer approval (for example, points for product acceptance by
customer), where required, and


Page 91 Total 115
control of suppliers within project framework (for example, composing of
a list, criticality, innovations, measures, sites).
OJSC "INTERPIPE NTRP" manages unsolved issues, the appropriate resources
are directed to perform measures related thereto. Checks throughout the entire
project life cycle are periodically carried out and results thereof are documented.
Project stage analysis at established checkpoints is performed in order to
evaluate project conformity, achievement possibility of work results divided by
groups, for approval of moving to the following work stage.
Risk and capability management process at OJSC "INTERPIPE NTRP" is
intended to eliminate any problem / deviation revealed by means of performed
analysis in order to fulfill project work plan and schedule.
Evaluation of project accomplishment results shall be carried out for
monitoring of project achievements and its efficiency by means of activity
indicators.
Records
4.2.4).
7.7.6 Human resource management
Requirements specified in item 6.2 of this QMSM with regards to competency,
awareness and background, motivation and involvement, and activity management,
are applicable project team levels.
Human resource management at OJSC "INTERPIPE NTRP" covers the following:
identification, documenting and allocation of functions, responsibilities and
accountability interrelation in a project;
provision of appropriate resources, required for fulfilment of works
through to project accomplishment;
development of individual and team competencies for improvement of
project accomplishment results.
Records
4.2.4).


Page 92 Total 115
7.7.7 Communication management
OJSC "INTERPIPE NTRP" ensures that project team defines and takes into
consideration needs of interested parties (for example, as a communication plan).
This information includes:
information on project accomplishment;
specific product requirements;
reports on defects and information on railway industry risks that shall be
timely presented to all interested parties of a project;
Note 1: These requirements supplement requirements of item 7.2.3 of
ISO 9001 and item 7.2.3 of this QMSM.
Records
4.2.4).
7.7.8 Capability and risk management
OJSC "INTERPIPE NTRP" ensures availability of the process for identification,
analysis (quantitative and qualitative) and acceptance of the decision on the
necessity to respond to risks (for example, risk acceptance, decreasing of
consequences, risk assignment, risk prevention). OJSC "INTERPIPE NTRP"
documented as standard procedures and employs such methods as documented risk
assessment, FMEA and corrective action management.
OJSC "INTERPIPE NTRP" keeps records of the fact of responding to risks or
capability enhancement (records are kept) and communicating to all interested
parties, if necessary.
In the course of project accomplishment analysis OJSC "INTERPIPE NTRP"
performs orderly assessment of effectiveness of response plan.
Risk assessment results are orderly analyzed and updated in the course of
project life cycle.
OJSC "INTERPIPE NTRP" holds the evidence of:
appropriate awareness about product criticality, assignment and risks in
rolling stock, in which it becomes a component;
availability of appropriate production management procedures for the
possibility of risk consequence reduction.


Page 93 Total 115
Records
4.2.4).
I NTZ-42 "Project management"
I NTZ-44 "Risk management in production of products for railway
industry";
M NTZ-08 "Analysis of types, causes and consequences of potential
defects (FMEA)".
7.8 Configuration management
OJSC "INTERPIPE NTRP" developed, documented and maintains configuration
management process conforming to products.
OJSC "INTERPIPE NTRP" performs the following:
at the beginning of a contract defines the list of products the
configuration management whereof is to be provided. The list is to be
coordinated with the customer;
appeals to change management process within the scope of
configuration management process (see item 7.13 of this QMSM);
ensures traceability in the course of production and work execution.
Product configuration is determined by route technologies and coincides with
identification thereof. The identification of route technologies is described in a
standard procedure.
Note 1: Guidelines on configuration management are set out in ISO 10007 and
applied in OJSC "INTERPIPE NTRP".
Note 2: In case, when the change affects product being a configuration
management object, the principles set out in item 7.13 of t his QMSM are applied.
Records
4.2.4).


Page 94 Total 115
I NTZ-43 "Data analysis and process assessment criteria";
railway industry".
7.9 First article inspection (FAI)
OJSC "INTERPIPE NTRP" implemented the documented standard procedure
that includes inspection, checking (verification), documenting and updating of result
records of a representative article taken from the pilot batch of new products or in
case of significant changing of current product, including the following:
production process verification, or
changes which cancel the previous result of first article inspection (FAI).
OJSC "INTERPIPE NTRP" ensures availability of the process for planning,
initiation and performing of first article inspection (FAI). Activity results of this
process are to be measured by means of KPI.
In accordance with defined and agreed criteria FAI process and procedure are
applied to suppliers as well.
Note 1: If the product is a single piece then FAI is considered as validation.
Note 2: FAI is a essential stage in production.
Records
4.2.4).
I NTZ-62 "First article inspection (FAI)";
railway industry".


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7.10 Product entry into service / maintenance service at customer's facility
In a case if product entry into service / maintenance service at customer's site
is a contractual requirement then OJSC "INTERPIPE NTRP" employs an appropriate
process.
This process can include the following:
actions taken in case of problem occurrence after product supply
including studying, reporting about actions taken and measures on
informing the delivery service;
management and updating of technical documentation and its issuing;
approval, management and application of repair schemes.
OJSC "INTERPIPE NTRP" presents evidence that in the course of product entry
into service the qualified support of customers has been ensured:
prior to completion of product validation;
within warranty period;
before final acceptance of products by the customer.
Appropriate resources are available for ensuring customer support in
accordance with agreed requirements regarding all after-sale actions.
Records
4.2.4).
M NTZ-05 "Handling of customer claims".
7.11 Reliability, availability, maintainability and safety / life cycle cost
(RAMS/LCC)
Product maintainability aspects at OJSC "INTERPIPE NTRP" are a constituent
part of design and development process.
OJSC "INTERPIPE NTRP" documented standard procedure describing all activity
that ensures reliability, availability, maintainability and safety (RAMS), including:
calculation and documenting;
organization of data acquisition, analysis and improvement action plan
preparation;
fulfilment of prescribed action plan assignments.


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OJSC "INTERPIPE NTRP" implemented and employs life cycle cost (LCC)
management process.
In order to fulfil requirements of RAMS/LCC required resources are allotted.
Acquisition and analysis of RAMS/LCC data are maintained and continually
updated on the basis of previous experience accumulated during and after warranty
period of product service (see item 8.5.1of this QMSM).
Note 1: OJSC "INTERPIPE NTRP" requests and accumulates all necessary data
about products.
Note 2: LCC process represent cost management process (see item 7.7.4 of
this QMSM).
I NTZ-64 "Provision of reliability, availability, maintainability, and safety
(RAMS)";
I NTZ-67 "Calculation of Life cycle cost (LCC)".
7.12 Product obsolescence management
OJSC "INTERPIPE NTRP" developed a process that ensures suitability of
supplied products within established and agreed product life cycle.
Records
4.2.4).
7.13 Change management
OJSC "INTERPIPE NTRP" developed the process an documented standard
procedure for implementation, management and responding regarding changes that
affect product life cycle processes, including those changes, which require
examination by the customer for the purpose of approval in accordance with
regional requirements and customer requirements.


Page 97 Total 115
Consequences of any change, including those caused by any supplier (for
example, change of subcontractor, production process, standard) or by customer (for
example, introduction of new products), are evaluated and checked.
Prior to implementation for conformity assurance against customer
requirements the validation and approval measures are defined.
OJSC "INTERPIPE NTRP" employs control features to prevent implementation
of changes from external sources without prior permission from all interested
parties.
Effect of changes on form, compatibility and performance of brand-name
(patented) concepts (including working capacity and/or service life) is analyzed
jointly with the customer in order to have all due evaluation for all consequences.
Note 1: Any change in product life cycle processes and possible limitation
thereof affecting customer requirements appropriate communication and consent.
Note 2: The abovementioned requirement relates to design and development
changes (see item 7.3.7 of this QMSM) as well as to production process changes (see
item 7.5.1.3 of this QMSM).
Note 3: These requirements supplement requirements of item 7.3.7 of ISO
9001:2008 and 7.3.7 of QMSM.
Records
4.2.4).
of wheel products;
railway industry".


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8.0 MEASUREMENT, ANALYSIS AND IMPROVEMENT
8.1 General
OJSC "INTERPIPE NTRP" implemented monitoring, measurement, analysis and
improvement processes keeping statistical records as applied to these process and
product characteristics, as well as results of the management review of Quality
management system to:
demonstrate conformity to product requirements by inspection of product
and processes, testing of products and the use of statistical methods, if
necessary, with regards to these processes and product characteristics,
ensure conformity of Quality management system that uses management
reviews, internal audits and customer feedback,
continuously improve the effectiveness and efficiency of Quality
management system that uses management reviews, internal audits,
corrective and preventive actions, testing of products and statistical
methods, if necessary, with regards to these processes and product
characteristics.
OJSC "INTERPIPE NTRP" ensures availability of the process for measurement,
analysis and improvement.
Records
Records of the results of inspection, measuring, analysis, statistic account
with regards to product characteristics, and also the results of top management
review of Quality management system are maintained in accordance with
requirements of item 4.2.4 of the present QMSM.
NTZ-10 "Procedure of evaluating statistical data processing results of
product quality",
I NTZ-S-17 "Product quality analysis using methods of mathematical
statistics".


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8.2 Monitoring and measurement
8.2.1 Customer satisfaction
OJSC "INTERPIPE NTRP" monitors information related to customer perception
as to which extent the plant fulfills requirements thereof, making it one of the ways
to evaluate Quality management system performance.
OJSC "INTERPIPE NTRP" interacts with customers in order to determine
satisfaction level of the customer in relation to execution of a contract.
Quality management makes periodic reviews of the information of customer
satisfaction level in relation to execution of a contract.
OJSC "INTERPIPE NTRP" receives information of customer satisfaction level
from the following sources:
questioning of customer satisfaction,
information from customers about quality of received products,
The periodical report on customer satisfaction level is submitted to the
director of quality for review. By means of customer satisfaction level review it's
possible to determine if:
OJSC "INTERPIPE NTRP" did not meet contract requirements and does not
find rational support on side of dissatisfied customer,
OJSC "INTERPIPE NTRP" met contract requirements and customer
satisfaction,
OJSC "INTERPIPE NTRP" exceeded contract requirements as compared to
contract requirements and found rational support on side of a customer
that found quality exceeding expectations thereof.
OJSC "INTERPIPE NTRP" implemented the process for acquisition and
evaluation of data about customer satisfaction.
Note 1: See also item 8.4 of this QMSM.
Records
Records of documents resulting from this process are maintained as per the


Page 100 Total 115
M NTZ-05 " Handling of customer claims";
I NTZ-51 "Evaluation of customer satisfaction",
8.2.2 Internal audits
Director of quality is responsible for ensuring that internal quality audit program
at OJSC "INTERPIPE NTRP" is executed with certain periodicity by
OJSC "INTERPIPE NTRP" personnel. The annual internal audit is to determine whether
resulted quality activities ensures execution of all planned measures (see 7.1) is
accordance with standard requirements and requirements Quality Management
System as well. The audit is carried out in accordance with a procedure, which ensures
compliance with the ISO 9001, DSTU ISO 9001, API Specification Q1,
AAR Specification M-1003 and IRIS. Documented standard procedure defines
responsibility and requirements to planning and carrying out of internal audits,
quality record keeping and preparing reports of internal audits.
According to documented procedure the audit program is planned with
consideration of the status and importance of tested processes and scopes of
activity, as well as the results of previous audits.
Chief of audit department with a team of appointed internal auditors,
including workshop quality management system representatives, plans and
conducts audits and reporting results.
An auditor will only audit an area, in which he or she is impartial and can be
objective.
The management responsible for the areas (process) being audited
establishes the term to remove revealed nonconformities, provides timely correction
and corrective actions to eliminate revealed non-conformances and causes thereof.
Follow-up activities shall include effectiveness check of actions taken and reporting
of checking results (see as referenced in item 8.5.2).
Internal auditors have the qualification allowing to follow rules of auditor's
conduct and understanding requirements of specific parts of IRIS.
OJSC "INTERPIPE NTRP" conduct audit of all process of its enterprise
management system in production of wheel products in order to check their
conformity to all requirements (including any external requirements). Audit program
includes all production shifts.


Page 101 Total 115
Records
Internal audit";
SP NTZ-S-16 "Procedure of appointment, rights and duties of structural
subdivision Quality representative".
8.2.3 Monitoring and measurement of the process parameters
OJSC "INTERPIPE NTRP" applies suitable methods for monitoring and, if
necessary, measurement of Quality management system processes. This allows
demonstrating the ability of processes to achieve planned results.
The process and methodology of control and documenting of monitoring and
measurement of processes are implemented by:
applying automatic controllers and recorders to monitor and control
parameters on processes that require validation,
results of processes affecting products are inspected and/or tested to
determine conformity to documented requirements and planned results,
each workshop chief is responsible to periodically evaluate process
performance to confirm planned results for a process under their
responsibility and to identify and document any defects related to a
process,
internal audit is conducted to confirm planned results of manufacturing
process performance.
When choosing suitable methods OJSC "INTERPIPE NTRP" considers type and
extent of monitoring or measurement, which are in accordance with each
appropriate process with regards to involvement in meeting requirements to
products and in effectiveness of Quality management system.
When planned results have not been achieved, corrective and preventive
actions shall be taken to ensure conformity of products to standard requirements.
When processes receive any changes, OJSC "INTERPIPE NTRP" records and
keeps the dates of bringing changes into a process.


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In order to measure and monitor processes special mandatory KPI are
identified in accordance with the list in Annex to this QMSM.
Records
Documents that confirm monitoring and measurement of processes, including
recording and keeping the dates of bringing changes into a process, are maintained
as per the requirements set out in item 4.2.4 of the present QMSM.
SP NTZ-S-14 "Data analysis and process assessment criteria".
I NTZ-13 Procedure of conducting checkouts of technology observance
and Quality management system performance",
technology and product quality observance",
8.2.4 Monitoring and measurement of product parameters
OJSC "INTERPIPE NTRP" monitors and measures product characteristics in
accordance with a planned inspection program. The process is carried out at
appropriate stages of the product realization in accordance with the planned
arrangements (see item 7.1).
The inspection program covers encompasses, but is not limited, to activities of
receiving inspection, in-process verification inspection, non-destructive inspection
and final inspection.
Product release and service delivery is not to proceed until all planned
arrangements have been satisfactorily completed.
8.2.4.1 OJSC "INTERPIPE NTRP" documented instructions and procedures have
established control features and methods to monitor and measure product
characteristics.
8.2.4.2 The final acceptance (inspection) of products at OJSC "INTERPIPE NTRP" is
performed by personnel, which does not take part in product manufacture.
Requirements to measurement for product acceptance are documented.
This documentation is a part of product documentation and includes the
following:
acceptance criteria and/or product deviations;


Page 103 Total 115
the sequence of conducting measurement and testing;
measurement result records;
type of required measuring tools and required user's manuals.
Records on testing show actual data of test results in accordance with
technical requirements or acceptance testing plan.
Records
Documents to verify the monitoring and measurement of products are
maintained as per the requirements set out in item 4.2.4 of the present QMSM.
M NTZ-07 "Incoming inspection of raw materials, goods, semi-finished
products and change-over equipment",
technology and product quality observance",
I NTZ-82 "Arrangement of product acceptance by independent inspectors",
Plans of product manufacture and quality inspection, route technologies,
Measuring instructions and measurement procedures.
8.3 Control of non-conforming products
OJSC "INTERPIPE NTRP" provides identification and control of non-conformities
in order to correct situations and prevent their recurrence.
In case of revealing nonconformity, immediate actions to eliminate situation
that caused the nonconformity shall be taken. Nonconforming products are to be
isolated.
OJSC "INTERPIPE NTRP" deals with nonconforming products by taking one or
several actions of the following:
takes actions to eliminate revealed nonconformity,
get permission from appropriate authorized individual or, when necessary,
from a customer to perform usage, issuance or acceptance with deviation
from requirements,
takes actions to prevent its originally intended use or application.
Records of the nature of revealed nonconformities and any follow-up actions
taken, including obtained permissions to deviate from requirements, are maintained
(see 4.2.4).


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When a nonconforming product is corrected, it is subjected to re-verification
to demonstrate conformance with requirements.
If nonconforming products are detected after shipment or its use has started,
OJSC "INTERPIPE NTRP" takes actions according to severity level of consequences or
potential consequences of nonconformity.
Note 1: Any deviation with the scope of project / contract execution relates
to a nonconformity, for example, logistics aspects, documentation.
8.3.1 Issue or acceptance of nonconforming products
The process of evaluation, issue and acceptance at OJSC "INTERPIPE NTRP" of
nonconforming products includes one or several of the following methods:
) acceptance of products that do not conform production acceptance
criteria is only performed, provided that:
products meet project acceptance criteria,
production acceptance criterion, by which non-conformity is revealed, is
related to a category of non-mandatory with regards to meeting project
acceptance criteria,
products are repaired or reworked in a manner to meet project
acceptance criteria or production acceptance criteria,
b) acceptance of products that do not meet original project acceptance
criteria is performed provided that:
original project acceptance criteria have been changed according to item
7.3.7,
materials or products meet new project acceptance criteria.
8.3.1.1 Nonconforming process management
OJSC "INTERPIPE NTRP" developed, documented and maintains the control
procedure of enterprise management process unsteadiness, including:
definition, recording and analysis of unsteadiness root causes and, in case
when enterprise management process does not conform to requirements,
fulfillment of required measures on correction of nonconforming process;


Page 105 Total 115
assessment to check if enterprise management process unsteadiness led to
issue of nonconforming products;
identification of nonconforming products and its management in
accordance with item 8.3 of this QMSM.
8.3.2 Analysis of field nonconformities
OJSC "INTERPIPE NTRP" provides identification, documenting, reporting and
analysis of field nonconformities. The process of field nonconformity analysis, as
well as responsibility and authority of appropriate personnel are established in 2nd
and 3rd level documentation of the plant.
8.3.2.1 Customer concession
OJSC "INTERPIPE NTRP" is to obtain from customer a notice for concession or
deviation prior to proceeding with further treatment in all cases, when products or
production process differ from those characteristics that were approved by the
customer.
Penal charges due to concessions or deviations are recorded, analyzed and
charged to account of the one who caused it to happen.
Note 1: Penal charges caused by concessions and deviations are considered
as part of expenses due to nonconforming quality.
OJSC "INTERPIPE NTRP" maintains records on due date of such concession or
permitted quantity.
OJSC "INTERPIPE NTRP" ensures conformity to initial or amended technical
requirements after expiration of concession term.
Products supplied in accordance with such concession are to be duly
identified. This refers to purchased products as well.
OJSC "INTERPIPE NTRP" ensures that the concession requested by any
supplier is agreed before presenting to the customer.


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8.3.3 Customer notification
If products supplied to customers do not meet project acceptance criteria,
OJSC "INTERPIPE NTRP" notifies customer about that and keeps record of such
notifications (see. 4.2.4).
Records
The registration document resulting from of this process is managed
according to requirements item 4.2.4 of the present QMSM.
M NTZ-05 "Handling of customer claims".
I NTZ-14 "Procedure of organization and monitoring methods of
observance of production technology and quality of issued products"
I NTZ-39 " Management of nonconforming products",
8.4 Data analysis
OJSC "INTERPIPE NTRP" determines, collects and analyses data in order to
demonstrate the suitability and effectiveness of the Quality management system
and to evaluate where continuous improvement of its effectiveness is necessary.
This includes data generated as a result of monitoring and measurement and from
other relevant sources.
The data analysis provides information relating to:
customer satisfaction (see 8.2.1),
conformity to product requirements (. 8.2.4),
characteristics and trends of processes and achieved results including
opportunities for preventive action (see 8.2.3 and 8.2.4),
analysis of suppliers (see 7.4).
OJSC "INTERPIPE NTRP" establishes control parameters for determination and
use of various recognized methods and techniques for the analysis and presentation
of data to indicate trends which indicate performance, improvement or regression
with regards to continual improvement process.
8.4.1 OJSC "INTERPIPE NTRP" documented standard procedures, instructions and
methodologies have established control features and methods to identify and use
methods of data analysis.


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8.4.2 Additional requirements for enterprise management system in production
of wheel products for railway industry
The data analysis provides information relating to:
reports on field incidents related to wheel products;
product safety.
OJSC "INTERPIPE NTRP";
Internal audit";
SP NTZ-S-06 "Plant management review of Quality management system",
NTZ-05 "Handling of customer claims".
NTZ-10 "Procedure of evaluating statistical data processing results of
product quality",
I NTZ-17 "Product quality analysis using methods of mathematical
statistics",
I NTZ -51 "Evaluation of customer satisfaction".


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8.5 Improvement
8.5.1 Continuous improvement
OJSC "INTERPIPE NTRP" continuously improves the effectiveness of Quality
management system through the use of Quality policy, Quality objectives, audit
results, data analysis, corrective and preventive actions and management review.
Records
requirements set out in item4.2.4 of the present QMSM.
Internal audit";
SP NTZ-S-06 "Plant management review of Quality management system".
8.5.2 Corrective actions
OJSC "INTERPIPE NTRP" takes actions to eliminate causes of nonconformities
in order to prevent their recurrence.
Corrective actions ate taken in a manner to be adequate to effects of
revealed nonconformity.
A documented procedure establishes the following requirements:
reviewing nonconformities (including customer complaints),
determining causes of nonconformities,
evaluating the need for action to ensure that nonconformities will not
recur,
determining and implementing necessary actions,
recording results of action taken (see 4.2.4),
review of effectiveness of corrective actions taken.
8.5.2.1 OJSC "INTERPIPE NTRP" provides effectiveness of each corrective action.
Methods to provide effectiveness of corrective actions are described in an
appropriate documented standard procedure.
8.5.2.2 The term for nonconformity analysis at OJSC "INTERPIPE NTRP" and
preparation of scheduled plan of corrective action preparation and implementation in
a subdivision is no more than three working days period beginning with registration
of a nonconformity.


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In addition to requirements of ISO 9001:2008 a documented standard
procedure defines requirements to documenting of effectiveness and fulfillment of
corrective action.
Records
Internal audit",
8.5.3 Preventive actions
OJSC "INTERPIPE NTRP" takes actions to eliminate causes of potential
nonconformities in order to prevent their recurrence. Preventive actions are taken in
a manner as to be appropriate to effects of potential problems.
A documented procedure establishes the following requirements:
determine potential nonconformities and their causes,
evaluate the need for action to prevent recurrence of nonconformities,
determine and implement necessary actions,
record results of actions taken (see 4.2.4),
review effectiveness of preventive actions taken.
8.5.3.1 OJSC "INTERPIPE NTRP" provides effectiveness of each preventive action.
Methods to provide effectiveness of preventive actions are described in an
appropriate documented standard procedure.
Records


Page 110 Total 115
Internal audit";


Page 111 Total 115
ANNEXES
ANNEX A Comparative table of Quality management system requirements and
requirements of standards ISO 9001, API Specification Q1, AAR Specification M-1003.
ANNEX OJSC "INTERPIPE NTRP" activity is managed according to procedures,
processes, KPI and registered data on quality meeting the requirements of IRIS.


Page 112 Total 115
ANNEX
COMPARATIVE TABLE OF QUALITY MANAGEMENT SYSTEM REQUIREMENTS AND
REQUIREMENTS OF STANDARDS ISO 9001, API Specification Q1, AAR Specification
M-1003, IRIS
Section / item No. in
QMSM
Reference to
ISO 9001
Reference to
API Spec Q1
Reference to
IRIS
Reference to
AAR Spec M-1003
1.0 1.0 1.0; 1.1.1; 1.2.1 1.0 2.2.1
4.1; 4.1.1; 4.1.2
4.2; 4.2.1
4.1
4.2; 4.2.1
4.1; 4.1.1
4.2.1
4.1
4.2; 4.2.1
2.3.1
2.7.1
4.2.2; 4.2.2.1;
4.2.3; 4.2.3.1; 4.2.3.2
4.2.2
4.2.3
4.2.2; 4.2.2.1
4.2.3; 4.2.3.1; 4.2.3.2
4.2.2
4.2.3
2.3.2; 2.3.3; 2.3.4
2.7.2;2.7.3; 2.7.4
4.2.4; 4.2.4.1 4.2.4 4.2.4; 4.2.4.1 4.2.4 2.3.5; 2.3.6; 2.17
4.3 - - 4.3 -
4.4 - - 4.4 -
5.1 5.1 5.1 5.1 2.4
5.2 5.2 5.2 5.2 2.23
5.3; 5.3.1 5.3 5.3; 5.3.1 5.3 2.4.1
5.3.2 - - 5.3.1 -
5.4.1; 5.4.1.1 5.4.1 5.4.1 5.4.1 2.1.2; 2.1.3
5.4.2 5.4.2 5.4.2 5.4.2 2.5
5.5
5.5.1
5.5
5.5.1
5.5
5.5.1
5.5
5.5.1
2.4.2
5.5.2 5.5.2 5.5.2 5.5.2 2.4.2
5.5.3; 5.5.3.1 5.5.3 5.5.3 5.5.3 2.17.3
5.5.4 - - 5.5.4 -
5.6.1; 5.6.1.1 5.6.1 5.6.1; 5.6.1.1 5.6.1 2.19; 2.1.1
5.6.2 5.6.2 5.6.2 5.6.2 2.19
5.6.3 5.6.3 5.6.3 5.6.3 2.19
6.1; 6.2.1 6.1; 6.2.1 6.1; 6.2.1 6.1; 6.2.1 2.4.3
6.2.2; 6.2.2.1 6.2.2 6.2.2; 6.2.2.1 6.2.2 2.2.2
6.2.2.1.1-6.2.2.1.4 - - 6.2.2.1-6.2.2.4 -
6.3 6.3 6.3 6.3 2.15
6.4 6.4 6.4 6.4 2.15
6.5 - - 6.5 -
7.1; 7.1.1 7.1 7.1; 7.1.1 7.1 2.5; 2.10; 2.11; 2.12;
7.2.1 7.2.1 7.2.1 7.2.1 2.15; 2.23; 2.24
7.2.2; 7.2.2.1; 7.2.3 7.2.2; 7.2.3 7.2.2; 7.2.2.1; 7.2.3 7.2.2;7.2.3 2.23
7.2.4 - - 7.2.4 -
7.2.5 - - - -
7.3 - - 7.3 -
7.3.1; 7.3.1.1; 7.3.1.2 7.3.1 7.3.1; 7.3.1.1; 7.3.1.2 7.3.1 2.24
7.3.2; 7.3.2.1 7.3.2 7.3.2; 7.3.2.1 7.3.2 2.24
7.3.3; 7.3.3.1; 7.3.3 7.3.3; 7.3.3.1 7.3.3 2.24
7.3.4; 7.3.4.1; 7.3.4 7.3.4; 7.3.4.1 7.3.4 2.24
7.3.5 7.3.5 7.3.5 7.3.5 2.24
7.3.6 7.3.6 7.3.6 7.3.6 2.24
7.3.7; 7.3.7.1 7.3.7 7.3.7; 7.3.7.1 7.3.7 2.24


Page 113 Total 115

Section / item in
QMSM
Reference to
ISO 9001
Reference to
API Spec Q1
Reference to
IRIS
Reference to
AAR Spec M-1003
7.3.8 - - 7.3.8 -
7.4.1; 7.4.1.1; 7.4.1.2; 7.4.1.3;
7.4.1.4
7.4.1 7.4.1; 7.4.1.1; 7.4.1.2;
7.4.1.3
7.4.1 2.9
7.4.2; 7.4.2.1; 7.4.2.2 7.4.2 7.4.2; 7.4.2.1 7.4.2 2.9
7.4.3; 7.4.3.1; 7.4.3.2 7.4.3 7.4.3; 7.4.3.1 7.4.3 2.9
7.4.4 - - 7.4.4 -
7.5 - - 7.5 -
7.5.1; 7.5.1.1; 7.5.1.2 7.5.1 7.5.1; 7.5.1.1; 7.5.1.2 7.5.1 2.16
7.5.1.1 7.5.1.4 - - 7.5.1.1 7.5.1.4 -
7.5.2; 7.5.2.1; 7.5.2 7.5.2; 7.5.2.1 7.5.2 2.16
7.5.3; 7.5.3.1; 7.5.3.2; 7.5.3.3 7.5.3 7.5.3; 7.5.3.1; 7.5.3.2;
7.5.3.3
7.5.3 2.11; 2.12; 2.13; 2.14;
2.17
7.5.4; 7.5.4.1 7.5.4 7.5.4; 7.5.4.1 7.5.4 2.11; 2.16
7.5.5; 7.5.5.1; 7.5.5.2 7.5.5 7.5.5; 7.5.5.1; 7.5.5.2 7.5.5 2.11; 2.16
7.6; 7.6.1; 7.6.2 7.6 7.6; 7.6.1; 7.6.2 7.6 2.8
7.7 - - 7.7 -
7.8 7.13 - - 7.8 7.13 -
8.1 8.1 8.1 8.1 2.10; 2.11; 2.12; 2.20
8.2.1 8.2.1 8.2.1 8.2.1 -
8.2.2 8.2.2 8.2.2; 8.2.2.1; 8.2.2.2 8.2.2 2.4; 2.6; 2.21
8.2.3 8.2.3 8.2.3 8.2.3 2.20; 2.21
8.2.4; 8.2.4.1; 8.2.4.2 8.2.4 8.2.4; 8.2.4.1; 8.2.4.2 8.2.4 2.2; 2.5; 2.10; 2.11;
2.12; 2.17; 2.20
8.3; 8.3.1; 8.3.1.1; 8.3.2; 8.3.2.1;
8.3.3
8.3 8.3; 8.3.1; 8.3.2; 8.3.3 8.3; 8.3.1; 8.3.2 2.2; 2.12; 2.18
8.4; 8.4.1 8.4 8.4; 8.4.1 8.4 2.20
8.5.1 8.5.1 8.5.1 8.5.1 2.1; 2.6; 2.19
8.5.2; 8.5.2.1; 8.5.2.2 8.5.2 8.5.2; 8.5.2.1; 8.5.2.2 8.5.2 2.6
8.5.3; 8.5.3.1 8.5.3 8.5.3; 8.5.3.1 8.5.3 2.6


Page 114 Total 115
ANNEX
OJSC "INTERPIPE NTRP" ACTIVITY IS MANAGED ACCORDING TO PROCEDURES,
PROCESSES, KPI AND REGISTERED DATA ON QUALITY MEETING
THE REQUIREMENTS OF IRIS
Mandatory Item
in
QMSM
Referen
ce to
IRIS
Activities
K.O.
questions
Procedure Process KPI Records
4.1 4.1 Transfer of contract activities
4.2.3 4.2.3 Control of documents

4.2.3 4.2.3 Control of customer documents

4.2.4 4.2.4 Control of Records

5.3 5.3.1 Business plan
5.6.1 5.6.1 Management Review

5.6.2 5.6.2 Review input

6.1 6.1 Provision of resources

6.2.2 6.2.2 Competence, training and
awareness

6.2.2.3 6.2.2.3 Training

7.1 7.1 Planning of Product realization

7.2.2 7.2.2 Review of requirements
related to the Product

7.2.3 7.2.3 Customer communication

7.2.4 7.2.4 Tender management

7.3 7.3 Design and development

7.3.1 7.3.1 Design and development
planning

7.3.4 7.3.4 Design and development review

verification

validation (test Procedure)

7.3.7 7.3.7 Control of design and
development changes

7.4.1 7.4.1 Purchasing Process

7.4.3 7.4.3 Verification of purchased
Product

7.5.1 7.5.1 Control of Production and
service provision

7.5.1.3 7.5.1.3 Control of Production Process
changes

7.5.1.4 7.5.1.4 Control of equipment and tools

7.5.2 7.5.2 Validation of Processes for
Production and service provision


Page 115 Total 115

7.5.3 7.5.3 Identification and traceability

7.5.4 7.5.4 Customer property

7.6 7.6 Control of monitoring and
measuring equipment

7.7 7.7 Project Management or new
Product development

7.7.3 7.7.3 Project Management Time
management

7.7.4 7.7.4 Project Management Cost
management

7.7.5 7.7.5 Project Management Quality
management

7.7.8 7.7.8 Project Management Risk
and opportunity management

7.8 7.8 Configuration management

7.9 7.9 First Article Inspection (FAI)

7.10 7.10 Commission / Customer Service

7.11 7.11 RAMS/LCC

7.12 7.12 Obsolescence management

7.13 7.13 Control of changes

8.1 8.1 Monitoring, measurement,
analysis and improvement

8.2.1 8.2.1 Customer satisfaction

8.2.2 8.2.2 Internal audit

8.2.4 8.2.4 Monitoring and measurement of
Product

8.3 8.3 Control of nonconforming
Product

8.3.1 8.3.1 Control of nonconforming
Process

8.3.2 8.3.2 Customer Concession

8.5.2 8.5.2 Corrective action

8.5.3 8.5.3 Preventive action

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