Saep 397
Saep 397
Saep 397
Contents
1 Scope.............................................................. 2
2 Intended Users............................................... 2
3 Applicable Documents.................................... 2
4 Definitions....................................................... 3
5 Deficiency Classification................................. 4
6 Escalation Process......................................... 4
6.1 Notification Stage....................................... 4
6.2 Warning Stage........................................... 5
6.3 On Hold Stage............................................ 6
7 Responsibilities............................................... 7
1 Scope
The objective of the escalation process is to communicate major quality and technical
deficiencies, which directly impact the quality of supplied products, to vendor’s senior
management and ensure timely completion of corrective actions and improve vendors’
overall performance.
2 Intended Users
This procedure is intended for use by Engineering Services Admin area technical and
quality teams.
3 Applicable Documents
The requirements contained in the following documents apply to the extent specified in
this procedure.
Other Document
Vendor Review Committee (VRC) Bylaws
Page 2 of 9
Document Responsibility: Project Quality Standards Committee SAEP-397
Issue Date: 20 October 2015
Next Planned Update: 20 October 2018 Vendor Performance Escalation
4 Definitions
Equipment Deficiency Report (EDR): SAP notification (type Q4) listing equipment
deficiencies with sufficient detail reflecting procurement document, specifications, the
equipment manufacturer and investigation result in accordance with SAEP-380.
Page 3 of 9
Document Responsibility: Project Quality Standards Committee SAEP-397
Issue Date: 20 October 2015
Next Planned Update: 20 October 2018 Vendor Performance Escalation
5 Deficiency Classification
6 Escalation Process
The escalation process shall be initiated by the responsible Inspection office supervisor
or responsible Standards Committee chairman after one or more of the following
scenarios are experienced:
1. Major quality/technical concerns/deficiencies identified during manufacturing or
plant assessment.
2. Major product deficiencies identified during site receiving inspection or during
commissioning and operation.
3. Lack of vendor’s responsiveness to end user’s requests and after-sale services.
Comment: Major product deficiencies identified at site and lack of vendor responsiveness
cases will be reported in accordance with SAEP-380. This procedure will
govern the escalation process of Equipment Deficiency Reports.
Page 4 of 9
Document Responsibility: Project Quality Standards Committee SAEP-397
Issue Date: 20 October 2015
Next Planned Update: 20 October 2018 Vendor Performance Escalation
In case a vendor fails to submit a satisfactory corrective action plan within the
allocated time frame or fails to effectively complete required corrective actions
within the given time frames the following actions shall be taken:
1. Send Warning Letters
The responsible Engineering Services Department Head or his delegate
shall formally request the Industrial Development Department (for in-
Page 5 of 9
Document Responsibility: Project Quality Standards Committee SAEP-397
Issue Date: 20 October 2015
Next Planned Update: 20 October 2018 Vendor Performance Escalation
If a vendor fails to submit and complete the corrective actions specified in the
warning letter within the given time frame, the responsible Inspection office
supervisor or the Standards Committee Chairman shall initiate the placement on
hold process by the following steps:
1. Prepare the Vendor Review Committee Action Request forms and include
copies of the notification letter, the signed minutes of the performance
counseling meeting, and the warning letter.
2. Submit and present to the Vendor Review Committee the request to place
the vendor on hold. The presentation shall include potential impact on
projects, operation impacts, and alternative sourcing as a result of placing
the vendor on hold.
3. Upon obtaining VRC approval, contact the Industrial Development
Department to initiate SAP workflow in case a workflow is not initiated in
the notification stage. The responsible Inspection office supervisor and the
Standards Committee Chairman and their delegates shall process the
workflow with on hold action using SAP transaction code ZQ0017.
Page 6 of 9
Document Responsibility: Project Quality Standards Committee SAEP-397
Issue Date: 20 October 2015
Next Planned Update: 20 October 2018 Vendor Performance Escalation
7 Responsibilities
Title or Organization
Action or Task
Accountable
Saudi Aramco
Issue official notification and warning letters to the vendor’s senior
Subsidiaries
management
appropriate entity
Page 7 of 9
Document Responsibility: Project Quality Standards Committee SAEP-397
Issue Date: 20 October 2015
Next Planned Update: 20 October 2018 Vendor Performance Escalation
Title or Organization
Action or Task
Accountable
Revision Summary
20 October 2015 New Saudi Aramco Engineering Procedure that defines the escalation process of major
quality and technical issues and unsatisfactory performance by Company-approved
vendors that supply inspectable commodities.
Page 8 of 9
Document Responsibility: Project Quality Standards Committee SAEP-397
Issue Date: 20 October 2015
Next Planned Update: 20 October 2018 Vendor Performance Escalation
Yes No
IK Vendor
Satisfactory
Conduct Performance No
Counselling Meeting with Corrective Action Plan
Vendor Sr. Management within 14 days
Yes
No
Warning Stage (14 Days Max)
Verify Verify
Corrective Actions Yes Yes Corrective Actions
Implementation Implementation
No No
Inspection Supervisor or
SCC Recommends Hold
On Hold Stage
Placement to VRC
Yes No
VRC Approve Follow VRC
Place Vendor On Hold Recommendation Decision/Directives
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