LARSEN & TOUBRO HYDROCARBON ENGINEERING Document No.

: PM / O
LIMITED - CONSTRUCTION SERVICES Revision No.: 01
OCCUPATIONAL HEALTH, SAFETY & ENVIRONMENTAL Date: May 30, 2016
PROCEDURAL MANUAL

Internal HSE Audit

Purpose

 To determine whether the elements and activities of HSE Management System

conform to the planned arrangements and are being implemented effectively.
 To determine whether HSE Management System is fulfilling the
company's HSE policy, objectives and performance criteria.
 To determine whether HSE Management System complies with the
relevant legislative and regulatory requirements.
 To identify areas for improvement in HSE Management System, with the
aim of progressively improving the HSE Management System.
 To enable management to ensure that potential or actual flaws in the system are
addressed through effective Corrective Action / Preventive Action and follow-up.
Scope

All Project Sites, Country Offices, Head Quarters

Responsibility

HOD-HSED,
Procedure

Audit Type:

Typ Auditor Auditee Frequency

e
Head of Corporate office,
C1 MSC department, Powai Once in a year
Country office & Project Sites
Project Manager -Minimum
SBG/BU/JV Head with a team
C2 one Project under LTHE- Once in a year
consisting Senior Staff
Construction Services, division
Once in nine months
Project Managers of all major
C3 Head of HSE department or atleast once before
projects
the Projects ends
Site HSE Manager of another Project Managers of all
C4 Once in 6 months
project projects
Audit Team:

 Personnel on the audit team must be independent of the facility or process audited.
 Person conducting audit must be familiar with audit procedure and the facility to be
audited. Auditor must be competent as an auditor by virtue of his audit experience and
/or by training.
 The auditor or the audit team must be familiar with the audit procedure, the type of
Audit, the scope of audit and have a broad knowledge of HSE matters
 Adequate independence from the activities being audited, to enable objectives and
impartial judgment.
 Operational experience in the area being audited.
 The necessary expertise and experience in auditing practices and discipline.
Audit Findings

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 LARSEN & TOUBRO HYDROCARBON ENGINEERING Document No.: PM / O
LIMITED - CONSTRUCTION SERVICES Revision No.: 01
OCCUPATIONAL HEALTH, SAFETY & ENVIRONMENTAL Date: May 30, 2016
PROCEDURAL MANUAL

Audit findings / Non Conformities are classified according to the failure, severity and
closing action requirement.

Classification Action
Suspend all activities and take immediate corrective action before
Serious -S
resuming normal work activity.
Violation of Legal requirement / client specifications. Action items
High - H
which need immediate corrective action within 7 days
Non compliance of contract HSE plan and HSE management system.
Medium - M
Action items that need to be completed within 15 days.
Required for improvement listed as improvement point. Required to
be implemented within one month. Action items that need to be
Low - L
completed within a specified time frame and will be reviewed during
follow-up audit or next audit.
Audit Procedure:

Responsibility
Action
HSE Audit schedule Head of HSE

Draws out a half yearly audit plan which lists the sites, Country and
the scope of the audit.

Issue Audit Notification Auditor

Issue Audit Notification minimum before 10 working days of the

actual audit to the site in charge / HSEM and copies to HOD- HSE

Audit Checklist Auditor

Applicable Contract Management HSE Plan, Company Procedure and

guidelines can be directly used as checklist along with PM-00-OB as
applicable.

Audit Entry and Exit Meeting Auditor

The audit shall commence with an entry meeting defining the audit
criteria

Exit Meeting shall be conducted and the Non-conformances identified

shall be briefed to the audittee.

Issuing Non-Compliance Auditor

Non Compliances shall be issued at site to the concerned during

audit closing meeting - Format PM-00-NA and shall be subsequently
listed in a report.

Audit Report Auditor

The audit report shall be prepared listing all non-compliance,

observation, recommendation for improvement and good practices.
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 LARSEN & TOUBRO HYDROCARBON ENGINEERING Document No.: PM / O
LIMITED - CONSTRUCTION SERVICES Revision No.: 01
OCCUPATIONAL HEALTH, SAFETY & ENVIRONMENTAL Date: May 30, 2016
PROCEDURAL MANUAL

The report will classify the non-compliance based on the severity and
close out duration requirements. The report will recommend the
required corrective action along with the significance.
The score sheet given as per format PM-00-OB is also attached with
the format.

Issuing Audit Report Auditor

The audit report as per procedure shall be prepared referring the

applicable standard and the preliminary report shall be issued to the
responsible Auditee viz. the In charge of the location.
A copy is send to the HOD – HSED &

Audit finding Close Out Auditee

Once the Corrective Action / Preventive Actions are implemented Project Manager
within the specified time, the auditee informs the HOD-HSE to close
out the NCs.

Verification of the Corrective Action / Preventive Actions implemented HOD – HSE

and their effectiveness either by himself or through an authorized
source or early by mail depending on the severity of non-
conformance and if found satisfied closes out the NCs.

Action Tracking and Closeout Data Site HSEM

Maintain all audit and inspection findings in separate data sheet in

format PM-00-NA and update on the monthly basis. Send copies of
this data sheet to the corporate HSE.
Performance Weightage Audit Performance Score (W)

Audit Performance Score Performance Classification

0- 25% Unsatisfactory
26-50% Just satisfactory
51- 60% Satisfactory
61-75% Good
76-90% V.Good
Above 90% Excellent
5.1 Unsatisfactory
 Total non compliance and it is characterized on the basis of above scoring process
and it reveals total collapse of contract HSE MS.
 Stop the project, give a warning letter to the Site In Charge & concerned staff and still
not improved substantial action to be taken on him by BU Head.
 If this happens Project Manager has to investigate this as a major incident following
Incident investigation procedure and take immediate corrective action. The report of
the investigation required within seven days of the audit report.

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 LARSEN & TOUBRO HYDROCARBON ENGINEERING Document No.: PM / O
LIMITED - CONSTRUCTION SERVICES Revision No.: 01
OCCUPATIONAL HEALTH, SAFETY & ENVIRONMENTAL Date: May 30, 2016
PROCEDURAL MANUAL

 All corrective action must be closed within the specified time and notified to the auditor
who will subsequently conduct a follow up audit to measure the degree of compliance
and will recommend further course of action.
5.2 Just Satisfactory
 Stop the Project
 This outcome of the audit reveals only some paper work and site HSE standard need
immediate corrective action.
 Once the audit is characterised as this one, the concern Project Manager should
initiate investigation equivalent to Reportable lost time incident using the investigation
procedure. Investigation report required within fourteen days from the audit report.
Corrective action must be taken within the specified time which must not be more than
a month.
 All the investigation report and corrective action should be reported to the auditor for
tracking the corrective action.
5.3 Satisfactory
 Even though it is satisfactory to the extent that it does not reveal serious lapses but
once the audit finding reported as satisfactory, it shall be treated as equivalent to the
just satisfactory.
 Project Manager should initiate investigation equivalent to Reportable lost time
incident using the investigation procedure. Investigation report required within one
month from the audit report. Corrective action must be taken within the specified time
which must not be more than two months.
 All the investigation report and corrective action should be reported to the auditor for
tracking the corrective action.
5.4 Good
 Audit findings characterize as good will show that even though the site hazard controls
are satisfactory but shows a major non-compliance of HSE MS and requires immediate
corrective action.
 Required corrective action and improvement point need timely action. Must be
discussed in the management meeting and the site HSE Advisor has to provide audit
finding track data sheet.
5.5 Very Good
 Audit findings characterize as Very good will show the site hazard controls are good
but shows few major non-compliance of HSE MS and requires immediate corrective
action.
 Required corrective action and improvement point need timely action. Must be
discussed in the management meeting and the site HSE Advisor has to provide audit
finding track data sheet.
5.5 Excellent and Outstanding
 Once the two consecutive audit reports characterizes as excellent of which one should
be by HOD - HSED, then the project will receive an appreciation for maintaining HSE
standard from the Management.

Review:

The results of every internal audit are summarised which form part of the agenda for the
Management Review at site / country/ corporate level.
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 LARSEN & TOUBRO HYDROCARBON ENGINEERING Document No.: PM / O
LIMITED - CONSTRUCTION SERVICES Revision No.: 01
OCCUPATIONAL HEALTH, SAFETY & ENVIRONMENTAL Date: May 30, 2016
PROCEDURAL MANUAL

Records Format No. Retention

 Internal HSE Audit Plan PM-00-OA 3 Years

 Internal HSE Audit of Site - Scorecard PM-00-OB 3 Years
 Nonconformity Report PM-00-OC 3 Years
 CAPA Register PM-00-NA Till end of project

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