Quality Manual

FO-2015-0

8.0

MEASUREMENT, ANALYSIS
AND IMPROVEMENT

Section : 8.0

Date : 05th Sept. 2013

Revision: 2

Page: 1 of 11

Prepared by : Quality Management Reps.

Approved by : President Director / CEO.

Signature

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8.1

: Dedy Kurniadi

: Paul Iman Parasi Pandjaitan

General.
Measurement and monitoring activities required to assure product conformity,
and to achieve improvement, are planned and defined. When applicable,
statistical techniques are used for analyzing measurement data.
Pipamas plans and implements the monitoring, measurement, analysis, and
improvement processes (including statistical controls) needed to;
Demonstrate conformity to product requirements,
Ensure conformity of the QMS, and
Continually improve the effectiveness of the QMS.
The effectiveness of the quality system is monitored by internal audits and by
measuring quality performance, corrective and preventive action, continual
improvement activities and customer satisfaction. Results of these activities are
reported to the executive management in management reviews and are used to
identify opportunities for improvement. Activities related to internal audits and to
measuring customer satisfaction and quality performance are further defined in
this manual in Sections 8.2.

8.2

Monitoring and Measurement.

8.2.1

Customer Satisfaction
Customer satisfaction is measured by collecting and analyzing direct
customer feedback, and by measuring secondary indicators of customer
satisfaction. Customer satisfaction data is used by the executive management
to identify opportunities and priorities for improvement.
Customer satisfaction is the principal objective of the quality system, and the
level of customer satisfaction is the most important measure of the
effectiveness of the system.

8.2.2

Internal Audit
All activities and areas relevant to the quality system are audited at least once
a year. Audits are scheduled on the basis of the status and importance of the
activity. Internal auditors are independent of those having direct responsibility
for the audited activity. Identified nonconforming conditions are brought to the
attention of the responsible managers and corrective actions are implemented
in response to audit findings.

Quality Manual
FO-2015-0

8.0

MEASUREMENT, ANALYSIS
AND IMPROVEMENT

Section : 8.0

Date : 05th Sept. 2013

Revision: 2

Page: 2 of 11

Prepared by : Quality Management Reps.

Approved by : President Director / CEO.

Signature

Signature

: Dedy Kurniadi

: Paul Iman Parasi Pandjaitan

Pipamas carry out internal quality audit to verify that quality system
requirements and procedures have been effectively implemented and complied
with and to determine the effectiveness of the quality system.
The Quality Management Representative (QMR) shall be responsible for the
company's quality audit program. Audits shall be scheduled and all systems and
procedures shall be audited at least once a year.
Audits shall be performed by qualified personnel independent of those who
performed or directly supervised the activity being audited.
The results of the audits shall be documented and brought to the attention of
the management personnel having responsibility in the area audited and shall
take timely corrections and corrective actions on the deficiencies found by the
audit.
Corrections and corrective actions taken shall be verified to ensure they are
effectively implemented before being recorded and closed.
As a rule, audit results shall be surfaced and discussed in the Management
Review meetings.
When planning audit, all previous audits result finding shall be taken into
consideration.
The Quality Management Representative (QMR) establishes an internal audit
plan and schedule and audits are performed according to Operating Procedure
(OP24: Internal Audit).
Internal audits shall be scheduled and conducted at least annually by The
Quality Management Representative (QMR) who performed or directly
supervised the activity being audited.
Pipamas identify response times for addressing detected nonconformities and
10 days are allowed for response otherwise Quality Assurance Manager will be
notified to facilitate obtaining a satisfactory response.
8.2.3

Monitoring and Measurement of Processes.

Pipamas applies, whenever possible, monitoring and measuring of quality
system processes.
Process performance is measured and monitored by variety of approaches
and techniques, as appropriate for a particular process and its importance.

Quality Manual
FO-2015-0

8.0

MEASUREMENT, ANALYSIS
AND IMPROVEMENT

Section : 8.0

Date : 05th Sept. 2013

Revision: 2

Page: 3 of 11

Prepared by : Quality Management Reps.

Approved by : President Director / CEO.

Signature

Signature

: Dedy Kurniadi

: Paul Iman Parasi Pandjaitan

These may include measuring and monitoring of:

Process output (Processed product characteristics);
Process parameters; and
Circle times, energy consumption, and other such process performance
indicators.
These methods demonstrate the ability of Pipamas processes to meet desired
results. When planned results are not achieved, corrective and corrective action
are taken, as appropriate, to ensure conformity of product.
In the event of process nonconformity, Pipamas shall:
Take action to correct the nonconforming process,
Evaluate whether the process nonconformity has resulted in product
nonconformity
Identify and controls the nonconforming product according to Operating
Procedure (OP12: Control of Nonconforming Product).
8.2.4

Monitoring and Measurement of Product

Product Monitoring and Measurement
Inspection and testing program for a product is defined in various types of
documents, such as product drawings and specifications, purchasing
documents, inspection and testing plans. Documents defining the inspection
and testing program for a product are collectively referred to as control plans.
Section 7.1 of this manual defines the process for establishing control plans.
Verification of Purchased Product
All purchased products are subjected to a visual inspection by the logistic
personnel, and then some designated products are subjected to a more
detailed and technical QC inspection. Operating Procedure (OP10:
Purchasing and Verification of Purchased Product) sets forward detailed rules
for performing receiving and QC inspections.
In-Process Inspections
In-process inspections may be in the form of Operator or QC inspections, or
statistical process control (SPC). The focus is on defect prevention rather than
detection. In-process inspection activities are regulated by Operating
Procedure (OP11: Monitoring & Measurement of Product) and Operating
Procedure (OP26: Analysis of Data).
Final Inspection
Finished products are subjected to the final QC inspection. First,
inspectors
verify that all specified receiving and in-process inspections have been carried

Quality Manual
FO-2015-0

8.0

MEASUREMENT, ANALYSIS
AND IMPROVEMENT

Section : 8.0

Date : 05th Sept. 2013

Revision: 2

Page: 4 of 11

Prepared by : Quality Management Reps.

Approved by : President Director / CEO.

Signature

Signature

: Dedy Kurniadi

: Paul Iman Parasi Pandjaitan

out satisfactorily. Then they perform the remaining

inspections
and
tests
necessary to complete the evidence of product conformity. Only products that
pass the final inspection can be shipped. Operating Procedure
(OP11:
Monitoring & Measurement of Product) regulates these activities.
Product Release
Products are released for delivery only after all specified activities have been
satisfactorily completed and conformity of the product has been verified. Only
personnel performing final product inspections and tests have the authority to
release products. Operating Procedure (OP-11: Monitoring and Measurement of
Product), defines specific methods for product release.
Pipamas established control
characteristics of the product.

features

to

monitor

and

measure

the

Results of inspections and tests are recorded. Rules for establishing records for
specific types of inspections are defined in Operating Procedures (OP-10:
Purchasing and Verification of Purchased Product) and Operating Procedure
(OP11: Monitoring and Measurement of Product). Filing and maintenance of
inspection records are regulated by Operating Procedure (OP18: Control of
Records).
Acceptance inspections are performed by Quality Control Inspectors.
The records indicate the person authorizing, Quality Assurance Manager for
final acceptance and release of the product for delivery to the customer.
8.3

Control of Nonconforming Product

Pipamas ensures that product which does not conform to requirements is
identified and controlled to prevent unintended use or delivery.
Nonconforming product is identified, documented, evaluated, and prevented
from being used or shipped. Repaired or reworked products are re-inspected.
Appropriate actions are taken when product nonconformity is identified after
delivery. Quality Assurance shall identify response times for addressing
detected Nonconformities. When appropriate, corrective and preventive
actions are implemented to prevent recurrence of identified nonconformities.
Quality Assurance shall be maintained of the nature of nonconformities and
any subsequent action taken including the concession and maintain records of
notification to customer as Operating Procedure (OP18: Control of Records).

Quality Manual
FO-2015-0

8.0

MEASUREMENT, ANALYSIS
AND IMPROVEMENT

Section : 8.0

Date : 05th Sept. 2013

Revision: 2

Page: 5 of 11

Prepared by : Quality Management Reps.

Approved by : President Director / CEO.

Signature

Signature

: Dedy Kurniadi

: Paul Iman Parasi Pandjaitan

A documented procedure has been established Operating Procedure (OP

12: Control of Nonconforming Product) to define control of nonconforming
product.
Identification and Documentation
Pipamas identifies and documents all product nonconformities, regardless of
how insignificant they seem to be or how easily they can be repaired or
reworked. Product nonconformity records are invaluable for tracking
performance and trends, and for identifying areas where corrective or
preventive actions should be implemented.
Nonconforming products are identified with a Nonconforming Sticker and
documented using a nonconformance report. It describes the nonconformity,
documents the disposition decision, and records closed-out of follow-up
activities (re-inspection, concessions, corrective actions, etc.). The function
concerned is notified of the nonconformity. Documentation of nonconformity
shall include identifying, documenting, reporting and analysis of field
nonconformities which are explained in Procedure (OP12: Control of
Nonconforming Product).
The use of nonconformity report
and its processing are explained in
Operating Procedure (OP12: Control of Nonconforming Product).
To prevent nonconforming products from being used or shipped, the products
are marked with a Nonconforming sticker and are segregated (when
practical).
Nonconformity Review and Disposition
QC inspectors and Production Supervisors may make the disposition decision
for a nonconforming product when it is obvious that the product must be
scrapped or when it can be repaired by a simple process without affecting its
quality or appearance. In all other cases, Quality Assurance together with the
concerned Department Manager, and, when required, Engineering Manager
are responsible for making disposition decisions.
The disposition decision may be:
Repaired or re-worked to meet specified requirements
Accepted with or without repair by concession, or as specified in below
paragraph
Re-graded for alternative application, or
Rejected or scrapped

Quality Manual
FO-2015-0

8.0

MEASUREMENT, ANALYSIS
AND IMPROVEMENT

Section : 8.0

Date : 05th Sept. 2013

Revision: 2

Page: 6 of 11

Prepared by : Quality Management Reps.

Approved by : President Director / CEO.

Signature

Signature

: Dedy Kurniadi

: Paul Iman Parasi Pandjaitan

Re-verification of Repaired or Reworked Product

Repaired or reworked products are re-inspected in accordance with applicable
procedures and instructions refer to Operating Procedures (OP10: Purchasing
and Verification of Purchased Product) and Operating Procedure (OP11:
Monitoring & Measurement of Product), as applicable.
When nonconforming product is corrected, it is re-inspected to ensure it
conforms to requirements.
When nonconforming product is detected after delivery, Pipamas will take action
appropriate to the effects, or potential effects, of the nonconformity.
In addition to any contract reporting requirements, Pipamas system provides for
timely reporting of delivered nonconforming product that may affect reliability or
safety. This notification shall include a clear description of the nonconformity,
which includes as necessary parts affected, part numbers and revs, quantity,
and date(s) delivered.
Depending on the nonconformity, this may include suppliers, internal parties
and customers.
The responsibility for review and authority for disposition of nonconforming
products shall be defined as specified in Operating Procedure (OP12:
Control of Nonconforming Product).
The process of evaluation and disposition of product that have been accepted,
include one of the following:
Accepting a product that does not satisfy manufacturing acceptance criteria
provided:
Product satisfy the design acceptance criteria, or
The violated manufacturing acceptance criteria is categorized as
unnecessary to satisfy the design acceptance criteria, or
It is repaired or reworked to satisfy the design acceptance criteria or
manufacturing acceptance criteria.
Accepting product that do not satisfy the original acceptance criteria
provided:
The original design acceptance criteria is change as per Section 7.3 of this
manual,
The product satisfies the new design acceptance criteria.

Quality Manual
FO-2015-0

8.0

MEASUREMENT, ANALYSIS
AND IMPROVEMENT

Section : 8.0

Date : 05th Sept. 2013

Revision: 2

Page: 7 of 11

Prepared by : Quality Management Reps.

Approved by : President Director / CEO.

Signature

Signature

: Dedy Kurniadi

: Paul Iman Parasi Pandjaitan

Detailed rules for nonconformity review, for making the disposition decision,
and for recording these activities are provided in Operating Procedure (OP
12: Control of Nonconforming Product).
When product nonconformity is detected by the customer after delivery or use
has started, the customer is instructed to return the product, or a part, on a
return authorization number issued by PIS Department.
Field reported nonconformance(s) are recorded in the Nonconformance
Report. The Quality Assurance Manager shall determine the cause of the
discrepancy, and provide corrective action to prevent recurrence of the same
nature. Field nonconformance(s) are reported during management review.
When product nonconformity is detected internally after delivery or use has
started, the customers are informed and instructed what to do with the product.
In situations when the nonconformity may create a safety or other hazard, the
product may be recalled. Only the President Director of the company is
authorized to make recall decisions.
Pipamas has established a documented Operating Procedure (OP12: Control
of Nonconforming Product) to define control of nonconforming product. This
procedure shall include the analysis and the requirements for identifying,
documenting and reporting incidents of all field nonconformities.
8.4

Analysis of Data
Pipamas shall establish control features for the identification and use of
techniques for the analysis of data, collects, compiles and analyzes information
and data required for evaluating the suitability and effectiveness of the quality
system and for identifying opportunities for continual improvement.
This data comes from a number of sources such as internal audits,
management reviews, product verification, and continual improvement activities.
Data and information recorded in quality records are compiled and analyzed
periodically to determine trends in the performance and effectiveness of the
quality system and to identify opportunities for improvement.
Quality Assurance is responsible for coordinating these activities, and for
reporting conclusions and trends to the executive management. This is
usually done within the framework of management reviews of the quality

Quality Manual
FO-2015-0

8.0

MEASUREMENT, ANALYSIS
AND IMPROVEMENT

Section : 8.0

Date : 05th Sept. 2013

Revision: 2

Page: 8 of 11

Prepared by : Quality Management Reps.

Approved by : President Director / CEO.

Signature

Signature

: Dedy Kurniadi

: Paul Iman Parasi Pandjaitan

system, in accordance with Operating Procedure (OP-27: Management

Review).
Following categories of information and data are recorded, compiled and
analyzed:
Characteristics of processes and products:
Process performance variation recorded in process control charts and
evaluated by Production.
Cycle times recorded in Process Control Routing, Operating Procedure
(OP13: Production Control) and reviewed for trends by Production
Managers.
Unscheduled machine downtime (including cost) recorded in equipment
maintenance log, Operating Procedure (OP21: Plant Maintenance) and
reviewed for trends by Production Manager.
Conformance to customer requirements:
Scrap, rework, repair rates (including cost) recorded in product
nonconformance reports, Operating Procedure (OP12: Control of
Nonconforming Product) and reviewed for trends by QA Manager.
On-time delivery performance recorded in delivery performance reports,
Operating Procedure (OP15: Preservation And Delivery Of Product)
and evaluated for trends by Procurement Inventory and Shipping (PIS)
Manager and executive management.
Suppliers:
Supplier quality performance recorded in subcontractor quality
performance files, Operating Procedure (OP09: Evaluation of Supplier)
and evaluated for trends by PIS Manager and Quality Assurance Manager.
Customer satisfaction and dissatisfaction:
Customer satisfaction levels recorded in customer satisfaction surveys
and reports, Operating Procedure (OP02: Customer Communication) and
evaluated for trends by executive management.
Customer complaints recorded in customer complaints log, Operating
Procedure (OP-02: Customer Communication) and evaluated for trends by
executive management.
Quality System:

Quality Manual
FO-2015-0

8.0

MEASUREMENT, ANALYSIS
AND IMPROVEMENT

Section : 8.0

Date : 05th Sept. 2013

Revision: 2

Page: 9 of 11

Prepared by : Quality Management Reps.

Approved by : President Director / CEO.

Signature

Signature

: Dedy Kurniadi

: Paul Iman Parasi Pandjaitan

Effectiveness of training recorded in training evaluation reports,

Operating Procedure (OP16: Training, Development & Performance) and
evaluated for trends by departmental managers.
Effectiveness of quality system recorded in internal audit reports,
Operating Procedure (OP24: Internal Audit) and evaluated for trends by
executive management.
Pipamas shall establish control features for the identification and use of the
techniques for the analysis of data.
One or more of the following data analysis tools may be employed in the
analysis of data trends:
Pie-Charts
Cause & Effect Diagrams
Tables
Histograms
Such analysis tools are aimed at identifying any deterioration of data trends
as well as identifying significant modes or causes of problem/potential
problem trends via Pareto Analysis. Based on these significant modes, if any,
corrective & preventive actions may be taken to arrest the unfavorable
deterioration of data trends.
8.5

Improvement
The improvement effort is driven by goals defined in the quality policy and
quality objectives. Improvement opportunities are identified by analyzing quality
performance data and information. Improvement projects are defined and
implemented through the system of corrective and preventive actions and
management review actions.
Causes of identified nonconformities are investigated and the requirements
for determining the causes of nonconformities shall be defined as Operating
Procedure (OP25: Corrective and Preventive Action), where appropriate,
corrective actions are implemented to ensure that nonconformities do not
recur. Preventive actions are implemented to eliminate the causes of potential
nonconformities. Corrective and preventive actions taken are recorded and
are followed up to ensure that they have been properly implemented and that
they are effective.

8.5.1

Continual improvement

Quality Manual
FO-2015-0

8.0

MEASUREMENT, ANALYSIS
AND IMPROVEMENT

Section : 8.0

Date : 05th Sept. 2013

Revision: 2

Page: 10 of 11

Prepared by : Quality Management Reps.

Approved by : President Director / CEO.

Signature

Signature

: Dedy Kurniadi

: Paul Iman Parasi Pandjaitan

The need for corrective action is determined on the basis of identified actual
nonconformities. Corrective action requests are typically triggered by such
events as a failed inspection, customer complaint and/or product return,
nonconforming delivery from a supplier, or a major quality system audit
finding.
Continual improvement actions are often defined as corrective and preventive
actions. Procedures (OP28: Continual Improvements), and Operating
procedure (OP27: Management Review), explain how the corrective and
preventive action system is used for facilitating continual improvement.
8.5.2

Corrective Action
Pipamas takes action to eliminate the causes of nonconformities in order to
prevent recurrence. Corrective actions are appropriate to the effects of the
nonconformities encountered. Pipamas has a documented procedure (OP25:
Corrective and Preventive Action) and (OP28: Continual Improvement) to
define requirements for:
Reviewing nonconformities (including customer complaints)
Determining causes of nonconformities,
Evaluating the need for action to ensure that nonconformities do not occur,
Determining and implementing action needed,
Record the results of action taken
Review of effectiveness of corrective action taken,
Supplier corrective action if it is determined they are responsible,
Specific actions where timely and/or effective corrective action is not
achieved.
Pipamas shall ensure that any corrective action is effective, and shall identify
response times for addressing corrective action. Ten (10) days are allowed for
response to any corrective action otherwise the Quality Manager to facilitate
obtaining a satisfactory response.

8.5.3

Preventive action
The need for preventive action is determined on the basis of information and
data regarding capability and performance of processes, product
nonconformity rates, post-production experience feedback, customer
complaints, and quality system audit findings. Such information and data are
collected and analyzed to detect unfavorable trends that, if not checked, will
increase the risk of nonconformities. The system for collecting and analyzing
quality performance information and data is defined in Section 8.4 of this
manual.

Quality Manual
FO-2015-0

8.0

MEASUREMENT, ANALYSIS
AND IMPROVEMENT

Section : 8.0

Date : 05th Sept. 2013

Revision: 2

Page: 11 of 11

Prepared by : Quality Management Reps.

Approved by : President Director / CEO.

Signature

Signature

: Dedy Kurniadi

: Paul Iman Parasi Pandjaitan

Preventive action is appropriate to the effects of the nonconformities

encountered. Pipamas has a documented procedure (OP25: Corrective and
Preventive Action) and (OP28: Continual Improvement) to define requirements
for:
Determining potential nonconformities and their causes
Evaluating the need for action to prevent occurrence of nonconformities:
Determining and implementing action needed
Records of results of action taken
Review of effectiveness of preventive action taken
Pipamas shall ensure that any preventive action is effective, and the records of
result corrective and preventive action taken shall be maintained as per
Operating Procedure (OP18: Control of Records).