OSS Quality Highlights November 2013: OSS Singapore

QHSE MONTHLY MANAGEMENT REPORT November13

1) Halliburton (Sing II) Functionally accepted two parts of AGS housing and delivered to Halliburton Sing 2 for CMM inspection with NCR. Currently waiting for the CMM result from Halliburton Sing 2. 2) Customer Audit: i) ii) iii) Schlumberger vendor audit was completed on 6 & 7th Nov 2013. No major findings were recorded. Some highlighted observations are not yet closed. We will reply to Schlumberger by mid December 2013. Halliburton Safety audit was completed on 11th Nov 2013. No major findings were recorded. Some highlighted observations are not yet closed. We will reply to Halliburton by mid December 2013. Weatherford will visit Singapore plant for an audit on 9 Dec 2013.

3) Vendor Audit We have gone through with GOTI to reply to Halliburton on the findings. The current team in GOTI is not well prepared to reply on any findings which are concerns. We have spoken to Din to beef up his team and more actions are to be carried out to ensure that they are competent to handle any audit. The CAPA was sent to Halliburton and waiting for Mr Ragos reply. 4) Internal Audit Course: Syawai, Zarni, Zeyar and Amin attended internal audit course from 11th to 12th Nov 2013.

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OSS OSS Kakinada:

QHSE MONTHLY MANAGEMENT REPORT November13

The surveillance audit findings of 2 minor non conformances (AARs) are responded to API and all are resolved. OSSK can continue to use the Monogram. We are now waiting to receive all the certificates. HSE Management System has been implemented in OSSK. Prashant and Selva will continue to maintain the QHSE Management System in OSSK. There will be an impending audit from Schlumberger in early Dec 13. OSS Mumbai: HSE Management System has been implemented in OSSI. Prashant and Satish will continue to maintain the QHSE Management System in OSSI. SVP Thailand: Gopal and Sakthi will be travelling to SVP Sattahip for the 2nd stage API audit from 5th Dec 2013 to 20th Dec 2013. The 2nd stage audit has been scheduled on the 18th to 19th Dec 2013. According to discussion, the next plan is to assist SVP Songkhla for the API certification and continue the support services to SVP. PTOSS Jakarta: Gopal and Syawai has completed the 2nd stage API audit PTOSS Jakarta from 29th Oct 13 to 31st Oct 13. There were 7 minor non-conformances (NCs) recorded by the API auditor. Erwin has prepared the CAPA for the AARs but need to be revised. Targeted date on 15 Dec 2013 to complete and reply to API. OLIO Labuan: Full training for Amin was completed and he has started to prepare the documentations for stage one API audit. HSE Management System has been implemented in Labuan. Amin will continue to maintain the QHSE Management System in Labuan. Michael will travel to Labuan from 9th to 13th Dec 2013 to perform internal audit on the QHSE Management System and verify readiness of API Audit planned for Jan 14.

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OSS OSSTJ:

QHSE MONTHLY MANAGEMENT REPORT November13

HSE Management System has been implemented in OSSTJ. Chao Yunfei and Yu Fuheng will continue to maintain the QHSE Management System in OSSTJ. Michael will travel to OSSTJ from 2th to 6th Dec 2013 to check on the preparation status of the Quality Management System and verify readiness of API Audit planned from 3rd to 5th Jan 2014. INSPECTION STATUS / NON-CONFORMANCE ITEMS Summary Month of November 2013 OSS NCRs : 08 7 NCR Use as it (23 parts) 1 NCR Scrap (1 Part)

Details: 1 production non-conformance (068-13) is identified at production in-process inspection Customer: Halliburton Sing 2 Tool Description: 12.1875 HS NM SLEEVE STABILIZER NCR Description: As per Halliburton spec D00556974 Rev.A, maximum defect allowed 3 mm, existing defects size range from 3-6mm and also drawing SS.077204 Rev.C required Virgin Carbide on build up slopes area (8 places).Instead of that OSS placed 3/8 Virgin Carbide on build up slopes (8 places) which is oversize by 1/8. NCR Disposition: Use as it is (Given by customer) Rejected Qty: 2 pcs 1 production non-conformance (069-13) is identified at production in-process inspection Customer: Halliburton Sing 2 Tool Description: 8.405HS SPIRAL STABILIZER PM REPLACEMENT NCR Description: 1) As per Halliburton spec D00556974 Rev.A, maximum defect allowed 3 mm, existing defects size range from 4-6mm. 2) As per Halliburton drawing SS.077204 Rev.C required Virgin Carbide on build up slopes area (8 places).Instead of that OSS placed 3/8 Virgin Carbide on build up slopes (8 places) which is oversize by 1/8.

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QHSE MONTHLY MANAGEMENT REPORT November13 3) As per Halliburton drawing SS.077204 Rev. C the required pin connection counter bore ID (L23) is 3.125 (+0.010/-0.000), existing defects size is 3.146 for 1pc only (CP2340878). Use as it is (Given by customer) 2 pcs

NCR Disposition: Rejected Qty:

1 production non-conformance (070-13) is identified at production in-process inspection Customer: A. M. Castle & Co. Tool Description: ROUGHOUT MANDREL NCR Description: 1) Offset Undersized by 0.013on RH end and 0.017on LH end. 2) Run out over maximum tolerance by 0.008 3) Wall thickness over maximum tolerance by 0.0165 and under minimum tolerance by 0.004. NCR Disposition: Use as it is (Given by customer) Rejected Qty: 1 pc 1 production non-conformance (071-13) is identified at production in-process inspection Customer: Mersing Corporation (LL03146) Tool Description: 8 OD FLOAT SUB NCR Description: Bore ID was oversized by 3/4. NCR Disposition: Scrap - Return to Inventory for future order (Given by Production Manager) Rejected Qty: 1pc 1 production non-conformance (072-13) is identified at production in-process inspection Customer: Halliburton Sing 2 Tool Description: 5 3/4 Shorty Stabilizer Sleeve NCR Description: I.D. all oversized by 0.0025 to 0.004 from max tolerance. NCR Disposition: Use as it is (Given by customer) Rejected Qty: 8 pcs 1 production non-conformance (073-13) is identified at production in-process inspection Customer: Halliburton Sing 2 Tool Description: 12.1875 HS NM SLEEVE STABILIZER NCR Description: 1) As per Halliburton spec D00556974 Rev.A, maximum defect allowed 3 mm, existing defects size range from 4-6mm. 2) As per Halliburton drawing SS.077204 Rev.C required Virgin Carbide on build up slopes area (8 places).Instead of that OSS placed 3/8 Virgin Carbide on build up slopes (8 places) which is oversize by 1/8. NCR Disposition: Use as it is (Given by customer)
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OSS Rejected Qty: 6 pcs

QHSE MONTHLY MANAGEMENT REPORT November13

1 production non-conformance (074-13) is identified at production in-process inspection Customer: Halliburton Sing 2 Tool Description: 8.405HS SPIRAL STABILIZER PM REPLACEMENT NCR Description: 1) As per Halliburton spec D00556974 Rev.A, maximum defect allowed 3 mm, existing defects size range from 3-6mm. 2) As per Halliburton drawing SS.077204 Rev.C required Virgin Carbide on build up slopes area (8 places). Instead of that, OSS placed 3/8 Virgin Carbide on build up slopes (8 places) which is oversized by 1/8. NCR Disposition: Use as it is (Given by customer). Rejected Qty: 2 pcs 1 production non-conformance (075-13) is identified at production in-process inspection Customer: Halliburton Sing 2 Tool Description: 8.405HS SPIRAL STABILIZER PULSAR XOVER. NCR Description: 1) As per Halliburton drawing SS.077204 Rev. C required Virgin Carbide on build up slopes area (8 places). Instead of that, OSS placed 3/8 Virgin Carbide on build up slopes (8 places) which is oversized by 1/8. 2) As per Halliburton Spec No. D00556974 Rev. A, maximum defect allowed 3 mm, existing defects size range from 4-6mm. NCR Disposition: Use as it is (Given by Customer). Rejected Qty: 2 pcs Vendor NCRs :1

1 Vendor non-conformance (CP001-13) is identified at incoming inspection Vendor: CLEFTON PRECISION PTE LTD Tool Description: Ring Gauges NCR Description: ID Oversized. NCR Disposition: 2 pcs as reworked by Vendor & 1 pc as Scrap (machining cost was reduced for 1 pc). Rejected Qty: 3 pcs Customer Complaints (Quality Escapes) : 0

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OSS Summary to date (2013) Vendor NCRs to date (2013) NCR Issued to date (2013) Customer complaints to date (2013) KPI Quality Escapes to date (2013) PCR & COC: PCR & COC Reviewed: 500 nos PCR & COC on Time: 475 nos KPI Achieved : 16 : 75 to production : 14

QHSE MONTHLY MANAGEMENT REPORT November13

: To minimize Quality Escapes Max. 3 Nos allowed. : 14

: To achieve 92% of the Quality documents to be completed within 2 DAYS from the date of Job completion. : 95% of the documents are completed on time.

Raw Material Inspection: Total items inspected: 51 nos Total items inspected within 3 days: 51 nos Total items inspected above 3 days: 0 KPI Achieved : To achieve 90% of the Raw Material Inspection to be completed within 3 DAYS from request. : 100% of the raw material inspections are completed on time.

Internal Audit & Continual Improvement: KPI : To complete at least ONE Cycle of Internal audit in the year 2013.
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OSS Achieved workshops. QHSE MANPOWER MOVEMENT & OVERTIME: : Not yet.

QHSE MONTHLY MANAGEMENT REPORT November13

Note : Internal Audit Program has scheduled to carry out in Dec 2013 due to hectic schedule in providing support to the satellite

The Quality Inspectors, Document Controller and Engineers worked for 1651.38 Hours (Effective hours) in total which includes 330.75 hours (paid overtime) and 58 hours (no pay overtime). 5 Man days taken for Annual Leave for Nov 2013 4 Man days taken for MC for Nov 2013 6 Man days taken for NS for Nov 2013 6 Man days taken for Internal Audit Course for Nov 2013 Total 2 Man days taken for overseas assignment for Nov 2013

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QHSE MONTHLY MANAGEMENT REPORT November13

Report for the month / year of: November 2013 MAN-HOURS Total no of workers: Number of MAN-HOURS worked (inclusive overtime, Sunday & Public Holiday) Accumulated MAN-HOURS worked since beginning of year (inclusive overtime, Sunday & PH) SAFETY / OCCUPATIONAL INJURIES Number of FATALITIES in the month: Number of Accident in the month: 0 1 89 20024 191503

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QHSE MONTHLY MANAGEMENT REPORT November13

Description of Accident Name of person involved: Chen Guo Ping (Lathe Machinist) Date/Time: 11 Nov 2013 at 14.55 pm. How did it happen: 1. Chen Guo Ping had completed the threading works of a 8 (NM) Drill Collar (22 L) at the first CNC Lathe Threading machine (200021-CL) and wanted to withdraw the Drill Collar out from the chuck and place it on the Pipe Rack. 2. He stood within the Pipe Rack area and had hooked the Drill Collar with the 2 legged metal chains linked to the Overhead Crane. 3. His right hand was controlling the Control Pendant to lift the Drill Collar. 4. As the Drill Collar was lifted up in suspension, it was not balanced and tends to sway out in a clockwise direction. 5. Guo Ping tried to bring it back by using his left hand. Unknowingly, he placed his left fingers between the metal chain and the Drill Collar in a blind spot. And in a split second, his left middle finger was pinched between the metal chain link and the Drill Collar. 6. Guo Ping lowered the overhead crane using the control pendant in his right hand to loosen and free his left middle finger. 7. When his left hand was freed, he removed his glove and he realized that the left middle finger tip was bleeding. There was a cut ~ inch near the finger tip. Corrective action: Give first aid treatment to him and then brought him to hospital for further treatment. Toolbox briefing to all Supervisors and Safety Officer to carry out more supervision, observe unsafe acts and to stop workers whenever necessary to educate them. Appoint someone for Lifting Supervisor course. This person will assist to oversee the Lifting operations. Number of LOST TIME INJURIES (LTI) in the month: Number of MEDICAL TREATMENT CASES (MTC) for the injured person in the month: Number of RESTRICTED WORK CASES (RWC) in the month: 1 1 0
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QHSE MONTHLY MANAGEMENT REPORT November13

Number of FIRST AID CASES (FAC) in the month: Number of NEAR MISS INCIDENTS REPORTED in the month: Number of INCIDENT REPORT submitted to MOM in the month: Number of SAFETY FINDING in this month
4

1 0 1 13

Jan Feb Mar Apr May Jun July Aug

2 2

11

0 0

0 0

00

Sep Oct Nov

Accumulated SAFETY FINDINGS in year 2013 HEALTH Number of OCCUPATIONAL ILLNESS CASES (cases of illness caused by work) in the month: 0
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QHSE MONTHLY MANAGEMENT REPORT November13

Number of MAN-DAYS LOST DUE TO OCCUPATIONAL ILLNESS in the month: ENVIRONMENT Number of FUEL, CHEMICAL or OIL SPILLS reported in the month: TRAINING/ORIENTATION Number of workplace safety policy TALK conducted in the month: Number of NEW EMPLOYEE SAFETY ORIENTATION conducted in the month: Number of 3RD PARTY/CONTRACTORS/VISITORS SAFETY ORIENTATION conducted in the month: Number of SAFETY TRAINING conducted for the month: Number of tool box talks conducted in the month: Others
1.

3 3 3 3 20

Accident free days record. As at 30th Nov 2013, the total number of accident free days is 19 Accident Free days. One reportable accident occurred on 11 Nov 2013 involving Chen Guo Ping Lathe Machinist.

2.

Safety Training/ Orientation Safety Orientation given to Contractor/Visitors: a) Multicrane ADC Pte Ltd - Sai , Themuchok, Ruang Rit, Shi Guang Zheng b) Saltire Energy Pte Ltd Hardi and Ema. c) Iszunaidi Inspector (GOTI) Safety Orientation given to following new OSS employees: a) Qin Jian- Machinist b) Yap Oi Kee Technical Engineer
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OSS c) Cao Wei Machinist Safety Training

a) Iszunaidi - Inspector from GOTI Risk Assessment on LPI, MPI and QC Inspection. b) Raju Maintenance Asst Supervisor SWP Lock Out Tag Out c) Production Machinists & workers Requirements and selection of Personal Protection Equipment 3.

QHSE MONTHLY MANAGEMENT REPORT November13

Fire Drill Exercise A Fire Drill was conducted on the 28 Nov 2013 at 11.00am. The timing was 4mins 12sec. Though the timing was longer than the previous one - 3mins 20sec, it was still considered a success as the drill was executed smoothly without any incident. Moreover, for this drill, which day and what time to activate the alarm was not notified to everyone.

4.

HSE Management implementation at satellite workshops. a) OSS Mumbai & Kakinada, OSSTJ and OLIO Labuan HSE Policy Completed HSE Manual Completed HSE Procedures - Completed HSE Forms - Completed SWP - Completed HSE Records in progress. Risk Assessment, Training, Safety inspection, Registers of Lifting equipment, Chemicals (MSDS). Visits to all satellite will be arranged from Dec 2013. nd th OSSTJ 2 to 6 Dec 2013 th th Labuan 9 to 13 Dec 2013 th th OSSI Planned to travel from 15 to 20 Dec 2013

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