Document No.

SOP-3-090-2017-S

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MCO-I
INTEGRATED
MANAGEMENT SYSTEM
MANUAL 㻌
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Established: November 13, 2017
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Approved by Koji Otsuki

Reviewed by Lawrence Rominger

Prepared by Michelle Jamerson

Uncontrolled if Printed
 Contents
0. Introduction ........................................................................................................................................................ 1
1. Purpose and Scope of the Integrated Management System ............................................................................ 2
2. MCO-I Corporate Beliefs ................................................................................................................................... 2
2.1 Vision ........................................................................................................................................................... 3
2.2 Values.......................................................................................................................................................... 3
2.3 Our Mission ................................................................................................................................................. 3
2.4 MCO-I IMS Policy ........................................................................................................................................ 3
2.5 Business Objectives .................................................................................................................................... 4
2.6 Tenets and Guiding Principles .................................................................................................................... 4
3. References and Definitions ............................................................................................................................... 5
3.1 References .................................................................................................................................................. 5
3.2 Terms and definitions .................................................................................................................................. 5
4. Context of MCO-I ............................................................................................................................................ 10
4.1 MCO-I and its context ............................................................................................................................... 11
4.2 Needs and expectations of interested parties ........................................................................................... 12
4.3 Scope of the integrated management system .......................................................................................... 13
4.4 Integrated management system and its processes .................................................................................... 13
5. Leadership ....................................................................................................................................................... 14
5.1 Leadership and commitment ..................................................................................................................... 14
5.2 MCO-I policy .............................................................................................................................................. 14
5.3 Organizational roles, responsibilities and authorities ................................................................................ 14
5.4 Consultation and participation of workers ................................................................................................. 15
6. Planning........................................................................................................................................................... 16
6.1 Actions to address risks and opportunities ............................................................................................... 16
6.2 IMS objectives and planning to achieve .................................................................................................... 17
6.3 Planning for change .................................................................................................................................. 17
7. Support ............................................................................................................................................................ 18
7.1 Resources ................................................................................................................................................. 18
7.2 Competence .............................................................................................................................................. 18
7.4 Communication ......................................................................................................................................... 20
7.5 Documented information ........................................................................................................................... 23
8. Operation ......................................................................................................................................................... 25
8.1 Operational planning and control .............................................................................................................. 25
8.2 Requirements for products and services .................................................................................................. 26
8.3 Design and development of products and services .................................................................................. 26
8.4 Control of externally provided processes, products and services ............................................................ 28
8.5 Production and service provision .............................................................................................................. 29
8.6 Release of products and services ............................................................................................................. 30
8.7 Control of nonconforming outputs ............................................................................................................. 31
9. Performance evaluation .................................................................................................................................. 32
9.1 Monitoring, measurement, analysis, and evaluation ................................................................................. 32
9.2 Internal audit (SOP-3-091-2023-S) ........................................................................................................... 33
9.3 Management review .................................................................................................................................. 34
10. Improvement ................................................................................................................................................. 35
10.1 General .................................................................................................................................................... 35
10.2 Nonconformity and corrective action Corrective Action (SOP-3-091-2025-S) ....................................... 35
10.3 Continual improvement ........................................................................................................................... 36

Table of Figures and Attachments

Figure 1 - MCO-I Business Integration Scope………………………………………………………………………………….. 2
Figure 2 - Company's Integrated Management System Organization Chart ……………………………………………….. 15
Fig. 4-1 MCO-I Organizational Chart …………...………………………………………………………………………………. 37
Fig. 4-2 IMS Management System Diagram …………...………………………………………………………………………. 38
Table 4-1 Interested Parties …………...………………………………………………………………………………………… 39
Table 4-2 List of Applicable SOPs and Records …………...………………………………………………………………….. 40
Table 4-3 Process Control and Risk Assessment Plan for IMS …………...………………………………………………… 42
Table 5-1 Major Duties of Divisions and Departments …………...……………………………………………..................... 43
Table 5-2 Departmental Roles and Responsibilities …………...……………………………………................................... 45
Table 8-1 Operational Planning and Control ………………………………………………………………………………… 46
Revision History ……………………………………………………………………………………………………………………. 47
 SOP-3-090-2017-S (Rev. 4) 1/47

0. Introduction
Mitsubishi Heavy Industries Compressor International (MCO-I) developed and implemented an
integrated Quality, Information Security, Environmental and Occupational Health and Safety
Management System in order to document the company’s best business practices, better satisfy
the requirements and expectations of its customers, enhance its environmental performance,
ensure secure information and systems management, support and promote good health and safety
practices and improve the overall management of the company.

To understand our organization and context, MCO-I determined external and internal issues relevant
to and affecting its ability to achieve intended results of this Integrated Management System (IMS).

MCO-I meets the requirements of the international standard ISO 9001:2015. The system addresses
the design, development, production, installation, and servicing of customer products. It incorporates
the process approach where consistent and predictable results are achieved more effectively and
efficiently when activities are understood and managed as interrelated processes.

MCO-I meets the requirements of international standard ISO 14001:2015. The system addresses
the management of environmental aspects, compliance obligations, the actions to address risks and
opportunities. The management of the interactive processes provides for the achievement of
continual improvement and focus on efforts leading to the prevention of undesirable outcomes.

MCO-I meets the requirements of the international standard of ISO 45001:2018. The system
addresses the MCO-I policy commitments to comply with applicable legal requirements, to the
prevention of injury and ill health and to continual improvement.

MCO-I meets the requirements of the international standard ISO 27001:2013. The system
addresses the Information Security commitments to provide secure business systems the preserve
the confidentiality, integrity and availability of information by applying a risk management process
therefore giving confidence to interested parties that the risks are adequately managed.

Process based thinking is applied in this IMS and its processes utilizing a “Plan-Do-Check-Act”
methodology and focus on “Risk-Based Thinking” driving to the prevention of undesirable outcomes.

The manual describes the IMS, delineates authorities, interrelationships and responsibilities of the
personnel responsible within the system. The manual also provides the documented information
with procedures or references for all activities comprising the management system that ensures the
compliance to the requirements of the standards.

This manual is used internally to guide the company’s employees through the various requirements
of the quality, information security, environmental, and health and safety standards that must be
met and maintained in order to ensure good health and safety, environmental performance,
customer satisfaction, secure data and systems, continual improvement and provide the necessary
instructions that create an empowered work force.
 SOP-3-090-2017-S (Rev. 4) 2/47

1. Purpose and Scope of the Integrated Management System

The Mitsubishi Heavy Industries Compressor International (MCO-I) site campus is located in
Pearland, TX. MCO-I is committed to providing and continuously improving our high quality
products and services. We create and maintain robust health, safety and environmental
management systems and practices. We operate with state-of-the-art information technology
systems to ensure reliability and information security. We maintain robust relationships with our
internal and external customers and seek to meet or exceed their expectations. (Ref A.Table 4-1)

This manual explains how MCO-I’s activities are conducted and outlines documentation and
procedures that fulfil the requirements of Quality Management System (ISO 9001:2015),
Environmental Management System (ISO 14001:2015), Occupational Health and Safety
Management Systems (ISO 45001:2018) and Information Security (ISO 27001: 2013).
Department managers located at MCO-I have the responsibility to align their department with this
business-wide Integrated Management System (IMS) manual, the MCO-I Policy and MCO-I
Business Objectives. This IMS manual covers general information on Quality, Environmental,
Information Security, Health and Safety standard operating procedures and applies to all MCO-I
employees as assigned. (Ref A.Table 4-2)

MCO-I’s scope is design services, production, packaging, part storage, repair and on-site advisory
support for turbomachinery parts and equipment products. The scope of the MCO-I Integrated
Management System (MCO-I IMS) includes all processes that produce or obtain products, perform
repairs and overhauls, or provide service support to its customers as well as those that support
compliance of our systems and personnel in a safe, environmentally responsible way where
information technology systems and intellectual property are safe-guarded. MCO-I’s scope of
responsibility ends when the customer or contractor takes responsibility for performing on site work,
with MCO-I Technical Field Advisors (TFA’s) then providing only technical field guidance. TFA’s
comply with all on site protocols per applicable standards or customer requirements.

MCO-I Business Integration Scope

New Unit Business Customer Service Business

<=== QHSE & IT Integrated throughout the MCO-I Business Process ===>
Risk Management SOP Systems Continuous Improvement Customer Focus Stop Work Authority Managem ent Review

Figure 1 - MCO I Business Integration Scope

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2. MCO-I Corporate Beliefs

2.1 Vision
x MCO-I strives to be the premiere choice for turbomachinery products and services in North
America
2.2 Values
x Integrity
x Social Responsibility
x Harmony
2.3 Our Mission
x Deliver best-in-class customer experience
x Adopt global solutions through local presence
x Honor our values of integrity, social responsibility and harmony

2.4 MCO-I IMS Policy

MCO-I provides outstanding products and services that meet customer expectations and
requirements. We operate with passionate focus on health, safety, quality, environmental
responsibility, and optimized information systems. We foster a culture of teamwork, compliance
and continual improvement. The MCO-I team is committed to compliance with our Integrated
Management System and will ensure its ongoing effectiveness.

MCO-I employees have an instilled culture of compliance, cooperation and continual improvement
communicated through our Vision, Values, Mission, Policy Statement, Objectives, Team Principles
and Tenets. Top management ensures adequate resource and leadership is in place to support
health, safety, environmental, quality and information technology security initiatives as well as
ensure compliance with regulatory requirements. Top management is committed to providing safe
and healthy working conditions for the prevention of illness, reduction of risks and elimination of
known hazards. Top management is committed to consulting with and involving all workers in
development of the IMS. Furthermore, top management is committed to sound environmental
stewardship through pollution prevention, waste minimization, and conservation of natural
resources. Top management also ensures MCO-I employees and anyone working under MCO-I
direction are aware of our business compliance requirements.

MCO-I IMS Objectives:

x Safety – Establish safety programs fostering employee ownership and involvement. Drive
standardized safety equipment and practices and a robust, risk-based CAPA tracking
program.

x Quality – Deliver high-value, on-time and compliant products; engage customers and
develop measures for improvement opportunities; track and drive defects and opportunities
through a robust, risk-based CAPA tracking program.

x Environmental – Maintain all local, federal and corporate compliance and reporting
requirements through employee awareness, preventive measures, risk-based management
and oversight.

x Information Technology – Standardize, drive uptime and usage, data security, and
risk-based continual improvement in support of Information Technology systems.
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2.5 Business Objectives

MCO-I management believes it is important to establish business objectives at the beginning of
each year to meet targeted business obligations and to drive continual improvement within their
disciplines. Objectives are consistent with strategic business direction, relevant customer and
project needs, and industry requirements and regulations. Objectives are documented and
communicated to top management and MCO-I employees.

2.6 Tenets and Guiding Principles

As part of our One Team culture, MCO-I management provides tenets and guiding principles to
encourage best practice in all aspects of our business. These tenets are shared with all MCO-I
employees and are available to our customers.

MCO-I Team Principles

x Leadership: Always lead by example.
x Positive Approach: Focus on issue, process or behavior.
x Teamwork: Practice skills to encourage, listen, challenge, commit and deliver.
x Relationships: Foster positive relationships with customers and co-workers.
x Improvement: Drive compliance and continual improvement in every aspect of the business.
MCO-I Safety Tenets
x Stop Work: If safety is in question, report it.
x Know Your Job: Wear designated PPE.
x Take 5: Organize and plan your work.
x Right Tool for the Job: Use correct and certified tools.
x Recognize and Report: Eliminate, guard or identify hazards.
MCO-I Quality Tenets
x Stop Work: If quality is in question, report it.
x Don’t Accept or Pass Defects: Check quality before work; verify after.
x Process Compliance: Use only calibrated tools and equipment; only use certified suppliers.
x System Compliance: Use formal quality and document control systems to capture data and
information. Use standard process and ensure compliance. Track and trend to drive
continual improvement.
x Product Compliance: Ensure customer requirements, industry standards and engineering
specifications are followed.
MCO-I Environmental Tenets
x Stop Work: Prevent pollution. Protect the environment.
x Know your Waste Streams: Store and dispose of waste properly.
x Monitor and minimize: Be mindful of impacts to air, land and water.
x Reduce, Reuse and Recycle: Minimize waste production throughout daily processes.
x Recognize and Report: Eliminate, guard or control concerns.
MCO-I Information Security Tenets
x Stop Work: Protect information. Prevent data loss. Verify source and recipient.
x Prevent Access: Never share your password. Keep your PC locked when unattended.
x Protect Information: Never leave confidential information unattended.
x Report Information Security Risks: Report suspicious emails, virus threats or IT systems
misuse.
x Avoid Data Loss: Always back-up information to the network drive.

For IT requests, email: [email protected]

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3. References and Definitions

3.1 References

For dated references, only the edition cited applies. For undated references, the latest edition of
the referenced document including any amendment(s) applies.

x ISO 9001:2015, Quality Management Systems, Fifth Edition 2015-09-15

x ISO / IEC 27001:2013, Information Security Management Systems, Second Edition

2013-10-01

x ISO 14001:2015, Environmental Management Systems, Third Edition 2015-09-15

x ISO 45001:2018, Occupational Health and Safety Management Systems, First Edition

Terms and definitions

3.2.1 Terms related to organization and leadership (1/2)

No. Terms Definitions
1 Management system Set of interrelated or interacting elements of an
organization to establish policies, objectives, and
processes.
2 Integrated management system The collection of health, safety, environmental, quality and
information security management systems used to identify
discipline influences, fulfill compliance obligations, and
address risks and opportunities
3 MCO-I policy Intentions and direction of an organization related to
health, safety, quality, environmental and information
security performance, as formally expressed by its top
management
4 Organization Person or group who has its own functions with
responsibilities, authorities, and relationships to achieve its
objectives
5 Quality assurance department Person or group who assures quality of products
6 Corporate secretary Board contact, legal counsel and risk management
7 Procurement department Supplier management
8 Engineering Engineering & Design:
x Application Engineering Support
x Reverse Engineering
x Project Management
x Packaging Design
x Customer Support
x Root Cause Analysis
x Drawing Creation and Control
 SOP-3-090-2017-S (Rev. 4) 6/47

(2/2)
No. Terms Definitions
9 Sales department Marketing
Communications
Project Coordination
New Units Division
Customer Service Division
x Parts & Service
x Technical Service and Asset Management
x Training
10 Manufacturing / Production / Storage and Spare Parts manufacturing
Warehouse department In House Repairs
New Unit Assembly
Machining of Compressor and Steam Turbine components
Welding
Cleaning, Blasting and Painting
Rotor balancing
Planning and Production Control
Facilities
Logistics
11 QHSE & Systems Support for:
x Quality
x Health & Safety
x Environmental
x Information Security
12 Relevant Mitsubishi Company MHI (Mitsubishi Heavy Industries)
Relationships MHI-A O&G (Americas - wholly owned subsidiary of MHI)
MCO (Mitsubishi Heavy Industries Compressor
Corporation) is a wholly owned subsidiary of MHI
MC-A (Mitsubishi Corporation – Americas)
MCO-I (70% owned by MCO / 30% by MC-A)
13 Interested party Person or organization that can affect, be affected by, or
perceive itself to be affected by a decision or activity
14 MCO-I top management The president who directs and controls MCO-I at the
highest level of the Company

The officers, vice presidents and directors that report

directly to the president.
15 IMS Area Specific Committee Meeting body created to report, discuss, determine key
issues for health, safety, quality, environmental, or
information security activities
16 IMS Support Persons responsible for IMS document management
and control.
17 Departmental manager Person who oversees activities in a cost center or
functional department of the Company which include
health, safety, environmental, quality and information
security responsibilities for its team members
18 Integrated Management Person who coordinates IMS activities for a particular ISO
Representative - IMR Standard; there is one for each standard: Quality,
Environmental, Health, Safety, IT
19 Departmental IMS promoter Person who coordinates IMS activities in each department
of the Company
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3.2.2 Terms related to planning

No. Terms Definitions
1 Environment Surroundings in which an organization operates, including
air, water, land, natural resources, flora, fauna, humans,
and their interrelationships (natural and business
environments)

Note 1: “Surroundings” can extend from within an

organization to the local, regional and global
system.
2: “Surroundings” can be described in terms of
biodiversity, ecosystems, climate or other
characteristics. A natural environment as well as a
business environment can be included.
2 Environmental aspect Element of an organization’s activities or products or
services that interacts or can interact with the environment
3 Environmental condition State of characteristics of the environment as determined
at a certain point in time
4 Environmental impact Change to the environment, whether adverse or beneficial,
wholly or partially resulting from an organization’s
environmental aspects
5 Objective Result to be achieved
6 IMS health, safety, quality, Safety, health, quality, environmental and information
environmental and information security objective set by MCO-I consistent with its MCO-I
security objective policy
7 Prevention of pollution Use of processes, practices, techniques, materials,
products, services or energy to avoid, reduce or control
(separately or in combination) the creation, emission or
discharge of any type of pollutant or waste, in order to
reduce adverse environmental impacts
8 Requirement Need or expectation that is stated, generally implied or
obligatory
9 Compliance obligations Legal requirements that an organization has to comply with
and other requirements that an organization has to or
choose to comply with
10 Risk Effect of uncertainty
11 Risk and opportunities Potential adverse effects (threats) and potential beneficial
effects (opportunities)
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3.2.3 Terms related to support and operation

No. Terms Definitions
1 Competence Ability to apply knowledge and skills to achieve intended
results
2 Documented information Information required to be controlled and maintained by an
organization and the medium on which it is contained
3 Life cycle Consecutive and interlinked stages of a product (or
service) system, from raw material acquisition or
generation from natural resources to final disposal
4 Outsource (verb) Make an arrangement where an external organization
performs part of an organization’s function or process
5 Process Set of interrelated or interacting activities which transforms
inputs into outputs
6 Establish, implement, and The most important concept in this Manual and set of
maintain processes (verb) consistent activities to achieve intended outcomes
including enhancement of environmental performance

Process transforming an input into an output, which

specifies a procedure and control elements for physical
resources, human resources, operating methods, and
evaluation indicators related to and necessary for the
process to ensure appropriate and effective operation and
control of related processes as a whole

Physical Resources Human Resources

(Facilities/Materials/Information) (Personnel/Competence)

Input Business Process Output

(Process name,
responsible personnel)

Operating Methods
Evaluation Indicators
(Methodologies/procedures/
(Target values/measurement)
technique)

7 TFA (Technical Field Advisors) Highly skilled MCO-I field service personnel who advise
customer on-site functions including overhauls, new
equipment installations, or other contracted services.
TFA has authority to make recommendations but not take
any physical action.
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3.2.4 Terms related to performance evaluation and improvement

No. Terms Definitions
1 Audit Systematic, independent and documented process for
obtaining audit evidence and evaluating it objectively to
determine the extent to which the audit criteria
(requirements) are fulfilled
2 Conformity Fulfilment of a requirement
3 Nonconformity Non-fulfilment of a requirement
4 Corrective action Action to eliminate the cause of a nonconformity and to
prevent recurrence
5 Correction Temporary corrective action to eliminate a nonconformity
identified
6 Continual improvement Recurring activity to enhance performance
7 Effectiveness Extent to which planned activities are realized and planned
results achieved
8 Indicator Measurable representation of the condition or status of
operations, management or conditions
9 Monitoring Determining the status of a system, a process, or an
activity
10 Measurement Process to determine a value
11 Performance Measurable result

Performance can relate either to quantitative or qualitative

findings
12 Environmental performance Performance related to the management of environmental
aspects
13 Intended outcome What an organization should achieve by implementing its
integrated management system

The minimum intended outcomes include:

x enhancement of health, safety, quality, information
security and environmental performance,
x fulfillment of compliance obligations,
x achievement of objectives,
x evidence of continual improvement activities, and
x a common language and unifying culture
14 KPIs (Key Performance Key Performance Indicators – These are considered to be
Indicators) a subset of business or process indicators that if
controlled, steer other metrics in the right direction or they
are metrics deemed by the business to be critical to the
growth strategy and performance of the company.
 SOP-3-090-2017-S (Rev. 4) 10/47

4. Context of MCO-I

Company Background - Products and Services

About MCO-I

Mitsubishi Heavy Industries Compressor International Corporation (MCO-I) was established in the
United States in October 2012 as a group company of Mitsubishi Heavy Industries, Ltd. (MHI).
Mitsubishi Heavy Industries Compressor Corporation (MCO), a wholly-owned subsidiary of MHI in
Hiroshima, Japan, holds a 70% stake with Mitsubishi Corporation (Americas) as a 30% joint
venture partner. MCO-I is one of the world’s largest manufacturers of process compressors and
mechanical drive steam turbines. We are dedicated to providing advanced technology machinery
and after-sales service to a variety of industries in the Americas.

Products & Services

x Mitsubishi compressor
x Mitsubishi mechanical drive steam turbine
x Footprint replacement
x OEM spare parts supply
x Field Service (advisory only)
x Horizontal and vertical rotor storage
x Packaging and assembly
x Reverse engineering
x Training services
x Repair and refurbishment
x Asset Management

Turbomachinery manufactured by Mitsubishi Heavy Industries Compressor Corporation (MCO) is

used in gas and petrochemical industries. Specifically, these products include compressors, which
compress gas at production facilities, and steam turbines which drive the compressor. These
products are active in energy and petrochemical industry fields all over the world. The rotors MCO
produces range up to diameters of over 2 meters and weights exceeding 10 tons. MCO possess
the world-leading design and production technologies that are needed to ensure high-speed and
stable operation of these rotors.

The MCO-I facility, Pearland Works, integrates the systems built by MCO into packages, then sells
and provides aftermarket parts and services to the end users. The facility houses state-of-the art
rotor storage and asset management for planned and emergency applications. Engineering
services as well as on-site repair and rebuild services are also part of MCO-I customer offerings.

Industry Applications

MCO-I products and services are used in a broad range of fields, ranging from energy and
transportation to petrochemical fields, which support the infrastructure of society. Compressors and
Turbines products play a variety of roles, from drilling at oil and natural gas wellheads to the final
production and transport processes which bring benefit to our everyday lives. In order to meet the
needs for the fluid compression and expansion that is required by these processes, MCO offers
turbomachinery products and services delivering high performance, high reliability, and good cost
performance.
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4.1 MCO-I and its context

MCO-I monitors the markets and business capability needs that are strategic to its growth and that
may prevent meeting target objectives. Strategic business plans are developed and reviewed with
both branches of support from headquarters, MHI and MCO, to confirm direction. Internal and
external factors are reviewed.

Internal and External Issues

Lead
Area Source MCO-I Issues (Internal and External) Review Covered
Depts
Capital Procurement, Installation,
Machine Internal Building Expansion Mfg Production & Service
Staffing Levels, Training, Review,
Performance Management, HR, Mfg, Production & Service,
Personnel Internal Hiring/Firing, Engagement QHSE Dept Staffs
Work Ergonomics, Aging Workforce, Mfg, HR, Production &
Environment Internal Housekeeping, Aspects and Impacts HSE Services, Functional
Non-Approved Suppliers, No India / Dept Staffs,
Material Internal China Content Applications Pro, Quality Functional
SOP's and ITP's not fully developed for Mfg, Qualty,
Method Internal new business applications Eng Functional
Procuring and maintaining adequate
Tooling Internal calibrated tooling availaibility Mfg, Quality Functional
New Business, Customer Service, Sales, Serv, Board, Officer, Town
Customer External Issue Resolution Eng Hall
How to grow Market Share; Single Sales ,
Competitive External Source Suppliers Procurement Functional Staffs
TCEQ, EPA, Avetta, ISN, Corporate,
EEOC, Regulatory, Texas WorkForce Reporting and
Regulatory External Commission HSE, HR Functional Deep Dive
Employment Practices, Litigation -
client or customer, Non-Complete, HR, Gen Special Bi-Annual All
Legal External Privacy and Confidentiality Agreements Coun Hands
Still in implementation mode for ERP;
US technology application opportunities Initiative and Project
Technological External to replace dated MCO processes IT, Mfg Review
Bookings Rate and Customer Base: Officer Staff,
Market External Limited to North and South America Sales Department Staff
Japanese and US Harmonization, Prior
Cultural External Business Best Practice Integration HR, Mfg Functional Deep Dive
Religious Beliefs, Expectant Mothers,
Social External Right to Carry HR Functional Deep Dive
Political External Tarriffs, Embargos Procurement Functional Deep Dive
Need Development Support: Greater
Houston Partnership, Workforce
Solutions, TWC, Pearland Chamber of
Economic External Commerce Sales, HR Functional Deep Dive
Visas, Travel, Security and Protection,
International External Health Coverage HR Dept Staff
Domestic External H1B Visa to Permanent Residency HR Dept Staff
Inclement Weather Preparation, HSE ,
Regional External Response and Continued Operation Facilities Officer Staff
Competitors are in same locale -
Local External retention and recruiting pressure HR Functional Deep Dive
Growth into Small Compressor
Packaging and Manufacturing, ISO and
Corporate IT Standardization, Global Mfg Board, Officer, Town
Synergies External Compliance Mfg, QHSE Hall
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Cascaded objectives are then passed to the operations for planning, execution and deployment.
Standing Operational Reviews are conducted for review of business performance. Standing
Management Reviews are held for review of the IMS and its effectiveness. Risk is assessed at
numerous levels of the business with targeted actions taken to ensure a culture of compliance and
continual improvement.

At minimum, MCO-I provides updates, reviews progress and performance as follows:

MCO-I Team Rhythms
General Content (includes Internal and
Standing Review Freq. External Issues and Actions where Attendees
appropriate)
Schedule and Attainment, Project Updates,
2-5 Days / Constraints, Safety, Quality, Resource, Training, All Execution
Production & Service Week (W) Visitors Depts
W or Initiatives, Communications, KPIs, Trends and Functional
Department Staffs Monthly(M) Actions Staffs
Manufacturing, CSB, NUB, General and QHSE
Officer Staffs W Performance Officers
Functional Deep Dives / W or Non Conformances, Opportunities, Trends,
Continuous Improvement Annual/R Human or Other Resource Needs, Actions Select Depts
Cross-Functi
onal:
Customer and commercial requirements, Commercial
Initiatives and Project Schedule, Parts Availability, Resource Planning, & Execution
Reviews W or A/R Logistics, Inspections Depts
Multiple All
Town Halls Times / A Business Updates, Special Initiatives, Visitors Associates
Sales, Bookings, Profit, Cash Flow, Asset Officers /
Management, Resource Planning, Strategic Board
Board Meetings Quarterly Initiatives Members
All
Topic Specific A/R Bi-Annual Corporate Compliance Legal Training Associates
Employee Committees Select initiatives supporting QHSE, HR or other Volunteer
(non-union) M areas Associates
All Personnel with Performance Assessments vs. Objectives; All
Manager Bi-Annual Teamwork Associates
MCO &
MCO-I
Corporate Functional
Synchronizations A/R MCO vs MCO-I joint initiatives Counterparts
Officers and
Management Reviews 1 / Year Follow MCO-I Standard Template Managers

4.2 Needs and expectations of interested parties

x MCO-I recognizes we have a unique set of interested parties whose needs change and
develop over time. To ensure that our products and processes meet all relevant
requirements, we identify and assess the potential impact of any relevant needs and
expectations that may be elicited from interested parties.

x Where it is appropriate and to ensure alignment to deliver to our interested parties, we

convert their relevant needs and expectations into requirements which become inputs to
our IMS and our product and service designs.

x Reference Annual Communication Plan for interested parties and compliance guide.
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4.3 Scope of the integrated management system

This manual is available to all interested parties that request this or any sub part. The scope of the
IMS shall be as specified in Section 1 in consideration of the following items:
x External and internal issues referred to in Section 4.1
x Compliance obligations referred to in Section 4.2
x Business functions and physical boundaries of MCO-I
x Activities, products, and services of MCO-I
x MCO-I’s limit of authority and ability to exercise control and influence as shown in sourcing
and the MCO-I Business Integration Scope.

See the following attachments for reference:

x Attached Fig. 4-1: Company’s Organizational Chart Relating to IMS Manual
x Attached Fig. 4-2: Integrated Management System Diagram

4.4 Integrated management system and its processes

MCO-I establishes, maintains, and implements this IMS documentation system based on the
requirements of ISO 9001, ISO 14001, ISO 45001 and ISO 27001.
To achieve the intended outcomes including enhancement of its health, safety, quality,
environmental and information security performance, the Company, in accordance with the
requirements of this Manual, makes sure to:

(1) establish, implement, maintain, and continually improve the IMS including the necessary
processes and their interactions:

Attached Fig. 4-2 Integrated Management System Diagram

Attached Table 4-2 List of Applicable SOP’s
Attached Table 4-3 Process Control and Risk Assessment Plan for IMS: Quality

(2) consider knowledge gained in Sections 4.1 and 4.2 when establishing and maintaining IMS,

(3) follow conventions of documentation control as prescribed by Management of SOP

Documentation, (SOP-3-091-2020-S),

(4) utilize IMS documentation including:

x IMS Manual
x Standard Operating Procedures
x Work Instructions
x Forms
x Systems
x Drawings
x Organization Charts
x Limits of Authority
x Risk Registers
x CAPA logs
x Action Plans
(5) Documents may also be supplemented by corporate (MHI/MC/MCO), customer or
project-specific documents to satisfy client requirements and relevant project specifications.
 SOP-3-090-2017-S (Rev. 4) 14/47

5. Leadership

5.1 Leadership and commitment

Top management demonstrates leadership and commitment by:

x taking accountability for the effectiveness of the IMS, including the prevention of work related
injury and ill health as well as the provision of safe and healthy workplaces and activities;
x establishing the MCO-I Policy including health, safety, quality, environmental and information
security objectives which are compatible with the Company’s strategic direction and context;
x integrating IMS requirements into Company’s business processes;
x ensuring that the resources needed for the IMS are available;
x communicating the importance of MCO-I values and effective health, safety, quality,
environmental and information security management and conformance to the IMS
requirements;
x ensuring that the IMS achieves its intended outcomes;
x directing and supporting persons to contribute to the effectiveness of the IMS;
x promoting continual improvement;
x utilizing process approach and applying and promoting risk-based thinking; and
x supporting the roles of the Company’s management to demonstrate their leadership as it
applies to their areas of responsibility;
x developing, leading and promoting an organizational culture that supports the intended
outcomes of the IMS;
x ensuring a workplace free from reprisals for employees when reporting incidents, hazards,
risks and opportunities;
x ensuring the developed process(es) accounts for consultation and participation of workers;
x considering the need for committees that are relevant to the function of the IMS and
providing support for their functioning.

Top management ensures a focus on customer in order to:

x Ensure customer and applicable statutory and regulatory requirements are determined,
understood and met
x Risks and opportunities that can affect product and services conformity as well as customer
satisfaction are determined and addressed
x A continuous focus on enhancing customer satisfaction is maintained

5.2 MCO-I policy

MCO-I’s IMS policy is stated in section 2.4. This policy is shared with all MCO-I employees and
is the foundation of this IMS, supported by top management, shared with customers and
reviewed in all management reviews.

5.3 Organizational roles, responsibilities and authorities

Organizational roles, responsibilities, and authorities are defined to ensure that the IMS is
implemented. Figure 2 shows the Company’s IMS organization chart.

(1) MCO-I top management:

x Carry out the requirements specified in Section 5.1.
x Conduct the management review of the Company’s IMS activities.
 SOP-3-090-2017-S (Rev. 4) 15/47

x Develop measures relating to enhancing the corporate value of the Company.

x Appoints health, safety, quality, environment and information security leaders as the
Integrated Management Representative (“IMR”) for their area of expertise.
x Preside at the respective Integrated Systems Committees (“IMS”) as committee chair

(2) Integrated management system representative (IMR):

x Direct and control the Company’s health, safety, quality, environmental and information
security activities on behalf of the president and stand in for the Company IMS Committee
chair
x Solicit support for area-specific related statutory matters including internal MCO/MHI support,
third party organizations or standards organizations representatives as required
x Manage reporting and Company’s health, safety, quality, environmental and information
security activities including the IMS
x Develop action plan related to enhancing the corporate value of the Company
x Monitor departments under the umbrella organization and coordinate with internal audits

(2) IMS System Support – Provide support to IMRs, Divisions and Departments for all matters
related to the IMS including documentation creation, control and auditing.

5.4 Consultation and participation of workers

MCO-I established a process for consultation and participation of workers at applicable levels
and functions. Worker representatives exist in the development, planning, implementation,
performance evaluation and actions for improvement of the IMS. Consultation and participation
of Workers (SOP-3-121-2140-S) defines the participation programs established for
non-managerial workers at MCO-I.

Figure 2- Company’s Integrated Management System Organization Chart

 SOP-3-090-2017-S (Rev. 4) 16/47

6. Planning

6.1 Actions to address risks and opportunities

x Planning process
o MCO-I routinely evaluates risks and opportunities to achieve the outcomes of the IMS,
to reduce potential of undesired effects and to achieve continual improvement.
x Departments and IMRs consider
o external and internal issues referred to in Section 4.1;
o requirements referred to in Section 4.2; and
o the scope of the IMS.

x IMRs create action plans and identify KPIs, maintain and routinely review these to drive
initiatives and actions and confirm effectiveness.

x IMRs and departments create tracking and monitoring to ensure compliance and continual
improvement of KPIs.

x MCO-I evaluates relative risk criteria and assigns actions as noted below:

Applicable Identification Assessment Risk and Opportunity Action Examples

Standard Methods Examples

ISO 9001 Products and 1_IMS Risk Register Business Process Risk, Define Mitigation Actions, Provide
Services (Sample Table 4-3), Project Concerns, Standard Training / Verify Top Critical
2_Project Risk Resource Constraints / Drivers and Likelihood, Assign
Reviews, Product and Process Owners, Determine CAPA or
3_Functional Defect Defects (NCR’s), New Opportunity, Follow-up for
Data Analysis Technologies Effectiveness

ISO 14001 Environmental Risk Register Review New Employees, Provide Standard Training, Verify Top
Aspects and / Continuous Language Barriers Critical Drivers and Likelihood,
Compliance Assessment of Leading to Spillage, Assign Owners, Determine CAPA,
Obligations Impacts by EHS Changes to EPA Follow-up for Effectiveness
regulations, Hurricane
flooding

ISO 45001 Safety Risk Register Review New Employees, Create Emergency Response Plans,
Hazards and / Continuous OSHA Requirement Provide Standard Training, Verify Top
Compliance Assessment by EHS Gaps, Customer Critical Drivers and Likelihood,
Obligations Property, Field Risks Assign Owners, Determine CAPA,
Follow-up for Effectiveness

ISO 27001 Information Risk Register Review Data Security Breach or Provide Standard Training, Verify Top
Technology / Continuous Loss, Natural Disasters, Critical Drivers and Likelihood,
Security Assessment by IT Data Storage Assign Owners, Determine CAPA,
Limitations, New Follow-up for Effectiveness
Technologies

x Potential emergency situations: IMRs will anticipate and determine potential emergency
situations, and devise planning to prevent, respond or contain these.

x Supporting procedures are located in Attached Table 4-2.

x Supporting training is located in the E-learning library.
x Departments and the IMR will also retain documented information of compliance
obligations as environmental, safety and IT records.
 SOP-3-090-2017-S (Rev. 4) 17/47

6.2 IMS objectives and planning to achieve

The MCO-I management team drives an annual process to determine appropriate

objectives the business and for each function within the business.

The SMART method is encouraged to make sure that objectives are:

x Specific (simple, sensible, significant).
x Measurable (meaningful, motivating).
x Achievable (agreed, attainable).
x Relevant (reasonable, realistic and resourced, results-based).
x Time bound (time-based, time limited, time/cost limited, timely, time-sensitive)

Objectives follow board and executive review and approval process, followed by cascading
of objectives to the rest of MCO-I and inclusion of key KPIs into tracking mechanisms.
Regular status reviews are conducted and actions are determined when KPIs are trending
unfavorably. The business is kept informed of critical KPI performance through town hall
meetings and other communication methods.

Specific annual objectives for Quality, Health, Safety, Environmental and IT are cascaded
and tracked on run charts and reported monthly for
x Quality
x Environmental
x Health
x Safety
x Information Security

Department managers and IMRs conduct regular performance reviews in their areas.

6.3 Planning for change

Changes to the IMS: MCO-I document owners, IMRs and top management may request and
implement changes as they apply to product, services, quality, health, safety, environmental and
information security changes by following proper authorizations. Significant changes may also be
proposed during Management Reviews. Before undertaking, these should be confirmed as
adequate, suitable, and effective. There should also be a purpose for the change, it should not
degrade the integrity of the IMS, there must be resources available to assign and there must be an
owner to verify that the change is made and managed going forward.

Management of Change (MOC): For issues that may present high or unknown organizational risk
or challenges, there is the MOC process. The process is initiated on Share Point and allows any
change to be evaluated at the correct level of review. Anyone in MCO-I can submit the
request. The MOC request is reviewed by their manager and if considered outside the scope of
their team, is escalated. It is given a rating of Tier 1 (QHSE review) or Tier 2 (Senior Management
review). The changes are evaluated, risk-rated and tracked in the system until mitigated.
 SOP-3-090-2017-S (Rev. 4) 18/47

7. Support

7.1 Resources
MCO-I top management determines and provides the resources needed for the
establishment, implementation, maintenance and continual improvement of the IMS.

7.2 Competence

Competence management is used to acquire and verify the necessary abilities of workers
doing work which affects MCO-I health, safety, environmental, quality and information
security performance and its ability to fulfil its compliance obligations. MCO-I’s criteria for
specification, selection and on-going development of resource is as follows:

Discipline Job Experience and Selection and Internal

Requirements Education Evaluation Criteria Development
Who Drives: IMR or IMR or Department Lead and Support Committee and
Department Personnel Support Personnel
Environmental ISO 14001, EPA Aspects and Impacts Job description KPI Tracking;
Support Compliance, Identification and competence evaluation, Preventive Systems,
SOP Management, Oil & drug and background E-Learning SOP’s,
Compliance, Gas Heavy Industry checks, Skills in excess Job Descriptions, OJT,
Record keeping, Experience, of minimum Seminars and internal
Develop Annual Hazardous Field requirements, Attention trainings as prescribed
Plan and Risk Environments, to detail, Compliance by IMR, Emergency
Register Members of and control charting Response Personnel
Professional Training, HSE
Organizations, Committee,
Technical Degree Performance Review
Programs Process
Information ISO 27001, IT Platforms Job description All Users:
Technology MCO Corporate Knowledge, SAP, competence evaluation, E-Learning SOP’s,
Security IT Compliance, Team Center, drug and background Seminars and internal
Record Keeping, Servers, Cloud checks, Skills in excess trainings as prescribed
Develop Annual Storage, Hardware of minimum by IMR, Performance
Plan and Risk Support, SharePoint requirements, Attention Review Process
Register to detail, Compliance
and control charting
Quality ISO 9001, API Lean Tools, DMAIC Job description KPI and Formal
Support Compliance, process competence evaluation, Tracking Systems,
Continual understanding, drug and background E-Learning SOP’s,
Improvement, Formal Quality checks, Skills in excess Job Descriptions, OJT,
Record Keeping, Systems, Members of of minimum MCO Service
Develop Annual Professional requirements, Attention Technical TFR
Plan and Risk Organizations, to detail, Compliance Training, Emergency
Register Technical Degree and control charting Response Personnel
Programs Training, Performance
Review Process
Safety ISO 45001, Prior Safety Job description HSE Committee
Support OSHA Leadership Role, Oil competence evaluation, Members and Safety
Compliance, & Gas Heavy drug and background System Support:
Record Keeping, Industry Experience, checks, Skills in excess Preventive Systems,
Develop Annual Hazardous Field of minimum E-Learning SOP’s,
Plan and Risk Environments, requirements, Attention Job Descriptions, OJT,
Register Members of to detail, Compliance Seminars and internal
Professional and control charting trainings as prescribed
Organizations, by IMR, Emergency
Technical Degree Response Personnel
Programs Training, Performance
Review Process
 SOP-3-090-2017-S (Rev. 4) 19/47

x Top management picks competent leaders, approves target objectives and ensures
adequate resources are provided to meet the intended outcome of the IMS. Competence in
position is measured by individual contributions to the programs, compliance in reporting and
results, participation in auditing, and corrective and preventive actions that minimize risks of
unintended outcomes.

x Department managers and IMRs review and select team members for support personnel
opportunities they deem competent. They also determine trainings and frequencies to be
administered to these and all other employees as part of IMS program awareness.
Department managers and IMRs provide education and OJT on applicable health, safety,
quality, information security and laws and regulations to their practitioners who evaluate
compliance obligations.

x General required trainings for the IMS are created by the IMRs and administered using the
E-learning system which includes testing competence as part of the training.

x SOP’s can be administered over the E-learning system or by OJT. Supervisors maintain
competency training records in coordination with Human Resources.

x Department and the IMR will set forth emergency response competency and necessary
training plans in individual emergency response procedures or manuals.

x Internal auditors require certification and may be internal or third party as coordinated by the
IMS Support and the IMR. Internal audits are conducted per the internal audit procedure:
Internal Audit, (SOP-3-091-2023-S).
 SOP-3-090-2017-S (Rev. 4) 20/47

7.3 Awareness
Department managers and the IMRs ensure that workers doing work under the department (i.e.,
workers covered in the scope of this Manual as well as representatives of in-plant contractors)
are aware of the following requirements of general health, safety, environmental, quality and
information technology security education through training and daily work:

Requirements of general IMS education

x MCO-I policy
x Outline of the Company’s IMS – Share Point Portal Access
x Significant environmental aspects and related actual or potential environmental
impacts associated with their work
x Employee contribution to the effectiveness of the IMS, including the benefits of
enhanced health, safety, environmental, quality and information security
performance
x Implications of not conforming with the IMS requirements, including not fulfilling
the Company’s compliance obligations
x Benefits of following IMS to health, safety, quality, environmental and information
security

7.4 Communication

7.4.1 General
IMRs establish, implement, and maintain the process needed for internal and external
communications relevant to the IMS.

x The IMRs ensure Annual Communication Plans are created (see chart below).
Department managers will develop their own communication plans as appropriate to
the IMS including:
o Information to communicate
o Timing of communication
o Recipient of communication
o Method of communication
o Party who communicates

x When developing their communication plan, Departments and the IMRs take into
account their compliance obligations; and ensure that information communicated is
consistent with information generated within the IMS, and is reliable.

x Persons who communicate and recipients of communication retain documented

information as evidence of their communications as appropriate. A communication plan
includes whether or not communications should be documented.
 SOP-3-090-2017-S (Rev. 4) 21/47

Annual Communication Plan (Minimum)

Recipient of Party who Compliance Record
Timing Information Method
Communication Communicates Obligations Required

Internal
Company HSE IMR – M - FY EHS objectives, Company HSE — Yes
Committee Environmental, action plan, status Committee / E-Mail
members Safety - Activity vs previous Yr and SharePoint
- Any other important Update of Monthly
EHS topics Action Plan Report
Officers President and W Strategic initiatives and Reports, discussion Corporate Yes
Officers objective performance
reviews
President and VP QHSE and Q Management Reviews Record Update on — Yes
Staff IMRs (Quality, Safety, Share Point,
Environmental, IT) Presentation,
Discussion
President and All MCO-I Q Town Hall – State of Verbal, presentation No
Staff Employees the business
Department Department As Req Performance review / Reports, issues, __ No
staffs leaders customer deliverables verbal updates and
discussion
Departmental Practitioner As Req Preventive Checks & Tracking Tools and — Yes
practitioners Monitoring Logs

Senior Staff IMR - M Observations from E-Mail — Option

Environmental Senior Staff Walk /
Updated CAPA log
Applicable IMR – Safety, As Req Monthly Learning E-Learning — Yes
department Environmental, OSHA Topics and
members Quality other trainings
All MCO-I MIC – NY Legal A Req; Code of Conduct Face to Face Corporate Yes
2xA Opt Compliance
All MCO-I Respective As Req Assigned SOP’s E-Learning Option
Departments

External
Registrar IMRs Y Certification and Certified Auditors ISO Standards Yes
Compliance Audits
3rd Party IMRs Y Internal Audit Formal internal audit ISO Yes
Auditor Assessments Standards
KDDI and IT Director Y in Q1 Vulnerability Email Yes Yes
Seccuris Assessment Report
MHI Auditors IT Director Y in Q3 CLC and PEFR Email Yes Yes
Assessment
MAS Auditors IT Director Y in Q3 SAP role review Email Yes Yes
OSHA HSE Coordinator Y OSHA 300 Log and Web Portal Interface Yes Yes
Summary
3rd Party QHSE Specialist AR Safety, Insurance, Web Portal Interface Yes Live Record
Certification Quality Status –
Services Pre-Requisite to Work
Pearland City Facilities / HSE Y Wastewater Survey Email Yes Yes
Public Works Coordinator
MCO HSE Coordinator Y Environmental Data Email Yes Yes
Input Sheet
MHI CSR group Yin May CSR report and (1) Domain data ΔResponse Yes
Environmental corporate website (2) CSR Committee UN Global
Committee Approval Compact
(3) Print / website
MHI IMR - Y in Jun GHG emissions (Scope (1) Collection of data — Option
Environmental Environmental 1 to 3) by each Domain
Committee (2) Approval from
EMR
(3) Print / website
MCO VP Mfg M Mfg Performance Web Conference No Yes
Oasis HR W Payroll/Benefits Web portal/phone Yes Yes
Mgr./Generalist calls
MC/MHI HR Manager Q Training lists/status Email/Spreadsheets Yes Yes
Dept. of Labor HR/Oasis Y Headcount/employee Oasis Yes Yes
data
Customers MCO-I Sales As Req NPS, Ads, Tech Web, E-Mail, ERP No Yes
Support, Orders
 SOP-3-090-2017-S (Rev. 4) 22/47

7.4.2 Internal communication

Department managers at each level and function of the Company communicate information by
means of meetings, systems, training sessions, and internal notification emails or in any other
ways based on their annual communication plans and whenever necessary. This is to ensure
that the internal communication enables workers doing work under direction of MCO-I are
compliant and contribute to continual improvement.

Respective IMRs internally communicate the following information to departmental HSE

committee members and practitioners based on its communication schedule:
x FY safety, quality, IT and environmental objectives, initiatives and KPIs in Action Plans
x Action Plan status updates
x Other information relevant to the IMS

Respective IMR will, whenever necessary, internally communicate the following information to
departmental HSE committee members and practitioners or, as appropriate, to all employees:
x Information relevant to the Safety, Environmental Quality or IT management as well as
changes to the IMS including changes to the MCO-I policy and this Manual
x When a new employee is assigned to MCO-I, HR will assign a regimen of training to include
safety, environmental, quality and information technology security training as an onboarding
process, as a rule, within a month after the employment to raise his or her awareness of
environmental, safety, quality and information security activities and considerations.
Department specific training for safety, quality, environmental and information security may
also be required and will be provided by the department.
x Departmental HSE committee members and practitioners will internally communicate
information within their departments in response to internal communication from the IMR.

7.4.3 External communication

MCO-I communicates externally to a variety of interested parties to give and receive

information required to run and grow the business. Individuals are trained and authorized to
act as agents of the company and are expected to follow all compliance guidelines and
corporate beliefs during these exchanges,

Communications may include but are not limited to:

x Customers
x Certifying Bodies / Governmental Agencies
x Corporate Headquarters
x Institutions
x Press

Means of communications may include but are not limited to:

x Verbal / Phone Call / Face to face
x E-mail / Text
x ERP Systems
x Web Conferences
x Reports

Topics vary based on interested party relationship to MCO-I. Records maintained if required.
 SOP-3-090-2017-S (Rev. 4) 23/47

7.5 Documented information

7.5.1 General
Departments and IMS Support control documents as follows:

(1) Information to be documented

(a) Documented information required by this Manual as shown in Attached Table 4-2: List
of Applicable SOP and Records

(b) Documented information determined by Departments and the IMRs as being necessary
for the effectiveness of the IMS.

(2) Extent of documented information

Departments and the IMRs determine the extent of documented information, considering
the following points:
x size of an organization and its type of activities, processes, products and services;
x need to demonstrate fulfilment of compliance obligations
x complexity of processes and their interactions
x competence of workers doing work under MCO-I’s control

7.5.2 Creating and updating

When creating and updating documented information in accordance with the Management of
SOP Document (SOP-3-091-2020-S), Departments and IMS Support ensure appropriate:
x identification and description (document number and title);
x format (language, software version, or graphics) and media (paper or electronic); and
x review and approval for suitability and adequacy.

7.5.3 Control of documented information

(1) Control of documented information - IMS Support controls documented information in
accordance with the Management of SOP Documentation procedure:
x is available and suitable for use, where and when it is needed;
x is adequately protected from loss of confidentiality, improper use, or loss of integrity.
x if outside the IMS or Share Point portal, each department will create and maintain its
own document control register and document record register to prevent failure in
controlling documented information if the following documents are stored in different
files or storage places:
o Documented information to be maintained by each department
o Records to be kept by each department
(2) Activities for control of documented information - Departments and the IMS Support will
establish their own guidelines to ensure that the following activities are addressed:
x Distribution, access, retrieval, and use
x Storage and preservation, including preservation of legibility
x Control of changes (e.g., version control)
x Retention
x Obsolete document is archived from the latest documented information.
(3) If Departments and the IMS Support determine documented information of external origin to
be necessary for the planning and operation of the IMS, the documented information will be
identified as such, as appropriate, and controlled.
 SOP-3-090-2017-S (Rev. 4) 24/47

Internal & External Document Control Systems:

Type Documents Control System
Sales Business, Projects Customer Data, Project Details CRM
Project Management Customer Specifications, Project Planning Project Folders M:Drive /
SharePoint Links
QHSE & All Standard Operating Procedures, Regulatory SharePoint / SharePoint
Requirements & Certification Links
Engineering, Technical CAD Drawings, Metadata, Customer Prints, Team Center
Inspection Test Plans
Manufacturing BOM, Costing, Sales Orders, PO’s SAP
Procurement Supplier Records SAP, SharePoint
All Other Records and Evidence SharePoint Portal

IT Systems Landscape:
 SOP-3-090-2017-S (Rev. 4) 25/47

8. Operation

8.1 Operational planning and control

MCO-I plans, implement and control the processes needed to meet requirements of its products and
services and the intended outcomes of the IMS by:
x establishing requirements;
x determining criteria for the processes and acceptance;
x determining resources needed to achieve conformity to requirements;
x implementing control of the processes in accordance with the criteria;
x determining, maintaining, retaining documented information to demonstrate conformance;
x controlling planned changes using management of change form, ECN or other
system-controlled change, and review the consequences of unintended changes;
x taking actions to mitigate any adverse effects, as necessary;
x where work involves multi-employer workplaces, coordinate relative parts of this IMS
management system with the other organization; and
x ensuring outsourced processes are controlled and compliant to this IMS per 8.4.1.
x ensuring life cycle perspective considered in the design and development process for
products and services per Table 8-1 Operational Planning and Control.

Regarding Hazards and Risks to E, H&S, MCO-I approaches with the following controls order:
1. identify the hazard
2. eliminate the hazard
3. substitute less hazardous material, process or equipment
4. apply engineering controls
5. apply administrative controls
6. prescribe use of PPE

Cross Reference for Sections 8.2-8.7: Requirement / Evidence

9001 14001 45001 27001

8.2 Requirements for products Emergency Emergency Information security risk
and services / preparedness and preparedness and assessments conducted at
MCO-I Sales response / response / regular intervals / IT Risk
(SOP-3-050-2077-S) Emergency Action Plan Emergency Action Plan Assessment / IT Portal
(SOP-3-023-2005-S) (SOP-3-023-2005-S)
8.3 Design and development of Information security risk
products and services / treatment plan is executed /
Design Process (SOP-3- IT Action Plan / IT Portal
061-2029-S)
8.4 Control of externally
provided processes and
services /
Supplier Quality Mgmt Plan
(SOP-3-091-2037-S)
8.5 Production and service
provision /
MCO-I Sales
(SOP-3-050-2077-S)
8.6 Release of products and
services /
MCO-I Sales
(SOP-3-050-2077-S)
8.7 Control of non-conforming
outputs /
Nonconformance Reporting
(SOP-3-091-2022-S)
 SOP-3-090-2017-S (Rev. 4) 26/47

8.2 Requirements for products and services

8.2.1 Customer communication

MCO-I communication with customers includes:
x information relating to products and services;
x enquiries, contracts or orders, including changes;
x customer feedback for products and services, including customer complaints;
x handling or controlling customer property;
x specific requirements for contingency actions, when relevant.

8.2.2 Determining the requirements for products and services

Customer requirements for products and services include:
x applicable statutory and regulatory requirements;
x requirements considered necessary by MCO-I
x performance claims for products and services that can be met by MCO-I
x specific technical or commercial requirements

8.2.3 Review of the requirements for products and services

8.2.3.1 MCO-I confirms its ability to meet the requirements for products and services to be offered to
customers. Reviews are conducted prior to committing to supply products and services that include:
x customer requirements, including delivery and post-delivery activity requirements;
x non-customer requirements necessary for the specified or intended use, when known;
x requirements specified by the MCO-I;
x statutory and regulatory requirements applicable to the products and services;
x contract or order requirements differing from those previously expressed.
MCO-I makes every effort to ensure that contract or order requirements differing from those
previously defined are resolved. The customer’s requirements are confirmed by MCO-I before
acceptance, when the customer does not provide a documented statement of their requirements.

8.2.3.2 MCO-I retains documented information, as applicable:

x on the results of the review;
x on any new requirements for the products and services.

8.2.4 Changes to requirements for products and services

MCO-I ensures relevant documented information is amended, and that relevant
persons are made aware of the changed requirements, when the requirements for products and
services are changed.

8.3 Design and development of products and services

8.3.1 General
MCO-I maintains a design and development process that is appropriate to ensure the subsequent
provision of products and services.

8.3.2 Design and development planning

In determining the stages and controls for design and development, MCO-I considers:
x nature, duration and complexity of the design and development activities;
 SOP-3-090-2017-S (Rev. 4) 27/47

x required process stages, including applicable design and development reviews;

x required design and development verification and validation activities;
x responsibilities and authorities involved in the design and development process;
x internal and external resource needs for design and development of products and services;
x need to control interfaces between persons involved in the design and development process;
x need for involvement of customers and users in the design and development process;
x requirements for subsequent provision of products and services;
x level of control expected for the design and development process by customers and other
x relevant interested parties; and
x documented information to demonstrate design and development requirements are met.

8.3.3 Design and development inputs

MCO-I determines the requirements essential for the specific types of products and services to be
designed and developed. MCO-I considers:
x functional and performance requirements;
x information derived from previous similar design and development activities;
x statutory and regulatory requirements;
x standards or codes of practice that MCO-I has committed to implement;
x potential consequences of failure due to the nature of the products and services.

Additionally, MCO-I ensures

x Inputs are adequate for design and development purposes, complete and unambiguous.
x Conflicting design and development inputs are resolved.
x documented information is retained on design and development inputs.

8.3.4 Design and development controls

MCO-I applies controls to the design and development process to ensure that:
x results to be achieved are defined;
x reviews are conducted to evaluate the ability of the results of design and development to
meet requirements;
x verification activities are conducted to ensure that the design and development outputs meet
the input requirements;
x validation activities are conducted to ensure that the resulting products and services meet
the requirements for the specified application or intended use;
x any necessary actions are taken on problems determined during the reviews, or verification
and validation activities;
x documented information of these activities is retained.

*Design and development reviews, verification and validation have distinct purposes. They can be
conducted separately or in any combination, as is suitable for the products and services of MCO-I.

8.3.5 Design and development outputs

MCO-I ensures that design and development outputs:
x meet the input requirements;
x are adequate for the subsequent processes for the provision of products and services;
x include or reference monitoring and measuring requirements, as appropriate, and
acceptance criteria;
x specify the characteristics of the products and services that are essential for their intended
purpose and their safe and proper provision.
 SOP-3-090-2017-S (Rev. 4) 28/47

MCO-I retains documented information on design and development outputs.

8.3.6 Design and development changes
MCO-I identifies, reviews and controls changes made during, or subsequent to, the design and
development of products and services, to the extent necessary to ensure that there is no adverse
impact on conformity to requirements.

MCO-I retains documented information on:

x design and development changes;
x results of reviews;
x authorization of the changes;
x actions taken to prevent adverse impacts; and
x intellectual property (IP) clearance for non-OEM work.

8.4 Control of externally provided processes, products and services

8.4.1 General
MCO-I ensures that externally provided processes, products and services conform to IMS
requirements. MCO-I determines the controls to be applied to externally provided processes,
products and services when:
x products and services from external providers are intended for incorporation into MCO-I’s
own products and services;
x products and services are provided directly to the customer(s) by external providers on
behalf of MCO-I;
x a process, or part of a process, is provided by an external provider as a result of a decision
by MCO-I.
MCO-I determines and applies criteria for the evaluation, selection, and monitoring of performance
of external providers, based on their ability to provide processes or products and services in
accordance with requirements.
MCO-I retains documented information of these activities and any necessary actions arising from
the evaluations.

8.4.2 Type and extent of control

MCO-I ensures that externally provided processes, products and services do not adversely affect
MCO-I’s ability to consistently deliver conforming products and services to its customers.

MCO-I:
x ensures that externally provided processes remain within the control of its quality
management system;
x defines both the controls that it intends to apply to an external provider and those it intends
to apply to the resulting output;
x takes into consideration:
o the potential impact of the externally provided processes, products and services on
the organization’s ability to consistently meet customer and applicable statutory and
regulatory requirements;
o the effectiveness of the controls applied by the external provider;
x determines the verification, or other activities, necessary to ensure that the externally
provided processes, products and services meet requirements.
 SOP-3-090-2017-S (Rev. 4) 29/47

8.4.3 Information for external providers

MCO-I ensures the adequacy of requirements prior to their communication to the external provider.

MCO-I communicates to external providers its requirements for:

x the processes, products and services to be provided;
x the approval of:
o products and services;
o methods, processes and equipment;
o the release of products and services;
x competence, including any required qualification of persons;
x the external providers’ interactions with MCO-I;
x control and monitoring of the external providers’ performance to be applied by MCO-I;
x verification or validation activities that MCO-I, or its customer, intends to perform at the
external providers’ premises.

8.5 Production and service provision

8.5.1 Control of production and service provision

MCO-I implements production and service provisions under controlled conditions.

Controlled conditions include, as applicable:
x availability of documented information that defines:
o the characteristics of the products to be produced, the services to be provided, or the
activities to be performed;
o the results to be achieved;
x availability and use of suitable monitoring and measuring resources;
x implementation of monitoring and measurement activities at appropriate stages to verify that
criteria for control of processes or outputs, and acceptance criteria for products and services,
have been met;
x use of suitable infrastructure and environment for the operation of processes;
x appointment of competent persons, including any required qualification;
x validation, and periodic revalidation, of the ability to achieve planned results of the processes
for production and service provision, where the resulting output cannot be verified by
subsequent monitoring or measurement;
x implementation of actions to prevent human error;
x implementation of release, delivery and post-delivery activities.

8.5.2 Identification and traceability

MCO-I:
x uses suitable means to identify outputs when it is necessary to ensure the conformity of
products and services.
x identifies the status of outputs with respect to monitoring and measurement requirements
throughout production and service provision.
x controls the unique identification of the outputs when traceability is a requirement, and shall
retain the documented information necessary to enable traceability.
 SOP-3-090-2017-S (Rev. 4) 30/47

8.5.3 Property belonging to customers or external providers

x MCO-I exercises care with property belonging to customers or external providers while it is
under MCO-I’s control or being used by MCO-I.
x MCO-I identifies, verifies, protects and safeguard customers’ or external providers’ property
provided for use or incorporation into the products and services.
x When the property of a customer or external provider is lost, damaged or otherwise found to
be unsuitable for use, MCO-I report this to the customer or external provider and retains
documented information on what has occurred.
* A customer’s or external provider’s property can include materials, components, tools and
equipment, premises, intellectual property and personal data.

8.5.4 Preservation
MCO-I preserve the outputs during production and service provision, to the extent necessary to
ensure conformity to requirements.
* Preservation can include identification, handling, contamination control, packaging, storage,
transmission or transportation, and protection.

8.5.5 Post-delivery activities

MCO-I meets requirements for post-delivery activities associated with the products and services.
In determining the extent of post-delivery activities that are required, MCO-I considers:
x statutory and regulatory requirements;
x the potential undesired consequences associated with its products and services;
x the nature, use and intended lifetime of its products and services;
x customer requirements;
x customer feedback.
* Post-delivery activities can include actions under warranty provisions, contractual obligations such
as maintenance services, and supplementary services such as recycling or final disposal.

8.5.6 Control of changes

x MCO-I reviews and controls changes for production or service provision, to the extent
necessary to ensure continuing conformity with requirements.
x MCO-I retains documented information describing the results of the review of changes, the
person(s) authorizing the change, and any necessary actions arising from the review.

8.6 Release of products and services

x MCO-I implements planned arrangements, at appropriate stages, to verify that the
product and service requirements have been met.
x The release of products and services to the customer do not proceed until the planned
arrangements have been satisfactorily completed, unless otherwise approved by a relevant
authority and, as applicable, by the customer.
x MCO-I retains documented information on the release of products and services. The
x documented information includes:
o evidence of conformity with the acceptance criteria;
o traceability to the person(s) authorizing the release.
 SOP-3-090-2017-S (Rev. 4) 31/47

8.7 Control of nonconforming outputs

8.7.1 MCO-I ensures that outputs that do not conform to their requirements are identified and
controlled to prevent their unintended use or delivery.

MCO-I takes appropriate action based on the nature of the nonconformity and its effect on the
conformity of products and services. This also applies to nonconforming products and services
detected after delivery of products, during or after the provision of services.

MCO-I deals with nonconforming outputs in one or more of the following ways:
x correction;
x segregation, containment, return or suspension of provision of products and services;
x informing the customer;
x obtaining authorization for acceptance under concession.

Conformity to the requirements are verified when nonconforming outputs are corrected.

8.7.2 MCO-I retain documented information that:

x describes the nonconformity;
x describes the actions taken;
x describes any concessions obtained;
x identifies the authority deciding the action in respect of the nonconformity.
 SOP-3-090-2017-S (Rev. 4) 32/47

9. Performance evaluation
9.1 Monitoring, measurement, analysis, and evaluation
9.1.1 General
(1) Actions
Departments and the IMR determine:
(a) what needs to be monitored and measured and the affect or inclusion in business KPIs;
(b) the methods for monitoring, measurement, analysis and evaluation, as applicable, to
ensure valid results;
(c) the criteria against which MCO-I will evaluate its performance, and appropriate
indicators;
(d) when the monitoring and measuring will be performed;
(e) when the results from monitoring and measurement will be analyzed and evaluated.

Departments and the IMRs retain the recorded results from the monitoring, measurement,
analysis, and evaluation of the performance.

(2) Calibration, use, and maintenance of monitoring and measurement equipment

Departments and the IMR ensure that calibrated or verified monitoring and measurement
equipment is used and maintained, as appropriate, for performance evaluation.

(3) Effectiveness evaluation

When performing activities such as a routine follow-up of an action plan to achieve
objectives and compliance evaluation, Departments and the IMR evaluate the effectiveness
of the IMS including the operational processes needed to achieve the objectives in addition
to progress toward achievement of the objectives (effectiveness of safety, environmental,
quality or information technology performance).

Considerations:
x Product and service conformity
x Customer satisfaction – survey, meeting feedback, market share changes, warranty
x Was plan followed effectively
x Effectiveness of risk and opportunity actions
x Performance of external providers
x Delivery, cost or schedule impacts
x Need for IMS system improvements

The IMS Support and IMR undergo the review of effectiveness of safety, environmental,
quality or information security performance and IMS for each fiscal year.

(4) Internal and external communication

Departments and the IMRs communicate relevant performance information both internally
and externally, as specified in Section 7.4.

9.1.2 Evaluation of compliance

Departments and the IMR establish, implement and maintain the processes needed to
evaluate fulfilment of their compliance obligations and retain the recorded results from the
evaluation of compliance.
 SOP-3-090-2017-S (Rev. 4) 33/47

Departments and the IMR:

x determine the frequency that compliance will be evaluated;
x evaluate compliance and take action if needed;
x maintain knowledge and understanding of their compliance status.

9.2 Internal audit

9.2.1 General Internal Audit (SOP-3-091-2023-S)
The IMR and IMS System Support supports an internal audit program in order to provide
information on whether:
x the Company’s activities conform to:
o its own requirements for its IMS;
o the requirements of ISO International Standard
x the IMS is effectively implemented and maintained.

9.2.2 Internal audit program

(1) Establishment, implementation, and maintenance of internal audit program
When conducting periodic and special audits specified in the Internal Audit SOP, the IMR
and IMS System Support provide an internal audit program which includes the frequency,
methods, responsibilities, planning requirements and reporting of its internal audits.

The internal audit program and the IMR take into consideration the importance of safety,
quality, environmental and information technology security processes concerned, changes
affecting MCO-I, and the results of previous audits.

When conducting an internal audit, the IMR and IMS System Support:
x define the audit criteria and scope for each audit;
x select auditors and conduct audits to ensure objectivity and the impartiality of the audit
process;
x ensure that the results of the audits are reported to relevant management.
x take appropriate corrections and corrective actions as soon as possible

(2) Internal audit record

The IMS System Support and audited department retain internal audit records as evidence
of the implementation of the audit program and the audit results.
 SOP-3-090-2017-S (Rev. 4) 34/47

9.3 Management review

Purpose and conduct of management review

Top management reviews the Company’s IMS, at planned intervals, to ensure its continuing
suitability, adequacy, and effectiveness.

Management review considerations

x The status of actions from previous management reviews;
x Changes in external and internal issues that are relevant to the IMS;
o (ii) the needs and expectations of interested parties, including compliance obligations;
o (iii) its targeted key performance indicators;
o (iv) risks and opportunities;
x The extent to which objectives have been achieved;
x Information on the Company’s performance, including trends in:
x Nonconformities and corrective actions;
o (ii) monitoring and measurement results;
o (iii) fulfillment of its compliance obligations;
o (iv) audit results;
o (v) adequacy of resources;
o (vi) relevant communications from interested parties, including complaints;
o (vii) opportunities for continual improvement.
x Outputs of the management review include:
o conclusions on the continuing suitability, adequacy, and effectiveness of the IMS;
o decisions related to continual improvement opportunities;
o decisions related to any need for changes to the IMS, including resources;
o actions, if needed, when environmental objectives have not been achieved;
o opportunities to improve integration of the IMS with other business processes, if
needed;
o (d) any implications for the strategic direction of MCO-I.
x IMS System Support retains management review records as evidence of management
review results.
 SOP-3-090-2017-S (Rev. 4) 35/47

10. Improvement
10.1 General
Departments and the IMR implement necessary actions for opportunities for improvement from
performance evaluation, internal audits, and management review results, in order to achieve
the intended outcomes of its IMS. These may include:

x Products and services to meet current and future requirements

x Corrections or corrective actions
x Continual improvement
x Breakthrough changes
x Improvements to the IMS

10.2 Incident, nonconformity and corrective action

Root Cause Analysis_CAPA (SOP-3-091-2025-S)
When a non-conformity occurs, Departments and the IMR guide the correct system reporting,
direct assignment for action and assign appropriate level of response.

10.2.1 Report, correction, and corrective action

Reporting of non-conformance for tracking and action utilize systems as follows:

x Quality NCR System & CAPA Tracker
x Safety Observation System / CAPA Tracker
x Environmental Observation System / CAPA Tracker
x Information Security Help Desk Ticket System

x Response to nonconformity
o Evaluate and take appropriate action to control and correct it, deal with the
consequences of the nonconformity, including mitigating adverse impacts:
ƒ Lower level risks require evaluation and correction or possibly no action
ƒ Mid-level risks require analysis, corrective and possibly preventive measures
ƒ High level risks require failure analysis with corresponding actions to prevent
reoccurrence
x Evaluate the need for action to eliminate the causes of the nonconformity, in order that it
does not recur or occur elsewhere, by:
o reviewing the nonconformity;
o determining the causes of the nonconformity;
o determining if similar nonconformities exist, or could potentially occur
o implementing any action needed;
o review the effectiveness of any corrective action taken; and
o making changes to the IMS if necessary.

x Corrective and preventive actions must be appropriate to the significance of the effects of
the nonconformities encountered, including the environmental impacts. Departments and
IMRs assign the correct level of response based on experience and risk.

10.2.2 Documented information

Departments and the IMR will retain documented information as evidence of the:
x nature of nonconformities and any subsequent actions taken; and
x results of any corrective action.
 SOP-3-090-2017-S (Rev. 4) 36/47

10.3 Continual improvement

The Company continually improves the suitability, adequacy, and effectiveness of the IMS, in
order for everyone including officers and employees to enhance quality, safety, environmental
and information security performance at every level of MCO-I.

Continous Improvement Flow

Common Continuous Improvement (CI) Tools

CAR – Corrective Action Request - Standard response defect analysis and action form in 8D steps: 1. team members, 2. problem
statement, 3. containment, 4. root cause analysis, 5. corrective action, 6. preventive action, 7. effectiveness review, 8. Quality close.
NCA - Non Conformance Analysis - A formal defect analysis report using DMAIC or other engineering problem solving methodology.
Spreadsheet / Pareto – Data Analytics - Pareto means to apply a sortation of order so that largest contributors or opportunities can
become area of focus for greatest impact of actions. Repeat sortations can lead to largest root cause or opportunity and therefore have
the most impact to ensure continual improvement is achieved.
Fishbone (Ishikawa Diagram) - Method of mapping potential causes against a well stated problem on one page. Category areas
(spines of fish) to brainstorm and list out contributors typically include: Machine, Method, Environment, Measurement, Persons or others if
the problem has been narrowed down already. Multi-voting can be used to rule out and narrow most potential causes – further analysis
may be required to verify actual root causes of defect.
5 Why - Chart showing the answers to asking “Why?” 5 times to drill to root cause starting with obvious issue – something did not work.
Lessons Learned - Structured or informal brainstorming of issues that occurred during an event or project. Common elements include
constructing a timeline of events and then adding some rating system from bad to good of each event to see where systems, processes,
etc. can be improved for next similar activity. To complete the process, an action log shows items found needing to be addressed are
assigned, actions taken, and verified.
Kaizen / Workout - A 1-5 day focused team effort focused on breaking down a process, analyzing and redesigning the high impact areas,
reassembling and putting back into production or service to validate results. A skilled facilitator is typically used and team members are
given roles to play to keep the team on track. Scope is created at the front end to ensure focused effort and targeted results are defined.
Just Do It - A one page form used to show “Before” and “After” images of a process or area. These are completed by anyone, and
usually detail what is improved and by how much. Typically, these are focused on safety, 5S, Poka Yoke, etc.
Process Flow - A graphical, sequential mapping of a process that shows inputs, outputs, actions, interdependencies, decisions, persons
assigned, etc. that achieve a business function.

Poka-Yoke - To mistake proof something. This can be done mechanically or through a system to prevent defects. Example: adding a
taper and key-way to make sure a gear can only go on one way.
 SOP-3-090-2017-S (Rev. 4) 37/47

Attached Fig. 4-1 MCO-I Organizational Chart Relating to IMS Manual

MCO-I Organization Chart

President

QHSE & Systems

Quality - IMR
Safety & Environmental - IMR
Information Technology - IMR
IMS Systems Support
Internal Audit
Procurement & Logistics

Human Resources

Corporate Secretary

Accounting

Engineering & Design

Research & Development
Application Engineering
Project Management
Design Engineering

Manufacturing / Production
Operations
Planning and Facilities
Warehouse and Logistics
Sales & Marketing
New Unit Business
Customer Service Business
Parts and Service
Technical Service and Asset Management
Training
 SOP-3-090-2017-S (Rev. 4) 38/47

Attached Fig. 4-2: Integrated Management System Diagram

Internal and Needs and

external issue Context of MCO-I expectation of
interested party
Scope of Integrated Management System
Plan

Plan

1. Scope (except)
In consistency with the Company’s
Support integrated management system,
Leadership and
Improvement and Do
worker participation intended outcomes of the
Act operation
management system include:
- Improvement in ESQ & IT
performance
- Fulfillment of compliance obligations
A hi t f ESQ & IT bj ti
Performance
evaluation

Check
Intended outcome of
integrated

INPUTS PROCESS OUTPUTS

Understand
Customer Customer
Specifications Requirement RFQ / Proposal
Review Order
Customer Order Received Handover
Procurement
Requisition Purchase Products
Management
Job Folder Move to Production Router
Repair / Modify
Router Product or Finished Project
Complete Service
Quality
Inspection forms
Management Inspection Records
Certificate of Conformance
Pack and Ship
Product Bill of Lading
Invoice Payment
Customer Survey Customer Feedback
Information Security Management
Document Management
HSSE Management
Human Resources
 SOP-3-090-2017-S (Rev. 4) 39/47

Attached Table 4-1: Interested Parties

For each standard, a minimum list of interested parties is identified and maintained by the respective
IMR. Interested party registers for ISO 14001, ISO 27001 and ISO 45001 are on the MCO-I IMS
system. Registers are reviewed at the respective management reviews and on an as needed basis.

See Annual Communication Plan in the communication section of this document for managing the
IMS communication needs, addressing the what, when, with whom and how to communicate.

The chart below illustrates the interested parties for ISO 9001:

ISO Internal Customer Needs and Expectation

9001
Owner, Shareholder Profitability and Growth

Employees Shared value and security

Contractors Per project scope

Management Team Performance vs objectives and IMS

Board of Directors Profitability, growth and asset utilization

ISO
9001 External Customer Needs and Expectations

Customers Compliance, Delivery, Reliability and Value

Distributors and Retailers Quality and Price

Municipalities Good corporate standing

Suppliers Beneficial Relationships

US Government Compliance to Foreign Trade Zone

API Compliance to API standards

Registrar Compliance to ISO standards

MHI-A Q&G Growth, Good Corporate Standing

 SOP-3-090-2017-S (Rev. 4) 40/47

Attached Table 4-2: List of Applicable SOPs and Records

Additional documented information is outlined in the SharePoint IMS document index.

ISO Requirement No. SOP No. SOP Title Responsibility

IMS SOPs
MCO-I Integrated Management System Quality
General SOP-3-090-2017-S
(manual)
General SOP-3-023-2028-S Employee Handbook Human Resources

General SOP-3-047-2034-S Supplier Manual Procurement

General SOP-3-115-2104-S Field Service – HSE Manual Field Service

5.3 SOP-3-004-4018-R Authority Matrix General

6.1 SOP-3-121-2006-S Stop Work Authority QHSE (E-Learning)

6.1 SOP-3-091-2079-S Process Control and Risk Assessment QHSE

4.2, 9.1.2 SOP-3-093-2044-S Customer Satisfaction QHSE

7.2, 7.3 SOP-3-024-2062-S Competence Awareness & Training HR

9 SOP-3-091-2024-S Management Review QHSE & IT

6.3, 6.1.2,8.1,8.1.3 SOP-3-091-2102-S Management of Change QHSE

8.4.1 SOP-3-040-1013-P Procurement Policy Procurement

6 SOP-3-120-4036-WF Operational Planning and Control HSE

General SOP-3-072-2154-S Division of Work Manufacturing

General SOP-3-067-2146-S Division of Work Engineering (CSB)

General SOP-3-090-2202-S Division of Work Quality

ISO 9001:2015
7.1.5 SOP-3-092-2018-S Calibration Process Quality

7.5 SOP-3-091-2020-S Management of SOP Documentation Quality

6 SOP-3-110-2097-S Technical Risk Management CSB

8.51 SOP-3-072-2090-S, 2091 Production Cost Control/ Risk Assessment Manufacturing/ Production
SOP-3-072-4272-WF, Manufacturing/ Production
8.5 Manufacturing process
4270, 4285, 4286
8 SOP-3-066-2174-S Engineering Deliverable Management Engineering

8.3 SOP-3-066-4120-WF Internal Project Engineering Process Engineering

8.4.1 SOP-3-047-2027-S Supplier Management Procurement

8, 10 SOP-3-091-2022-S NCR Process Quality

9.2 SOP-3-091-2023-S Internal Audit Quality

9, 10 SOP-3-091-2025-S RCA_CAPA Quality

10 SOP-3-091-2026-S Continuous Improvement Quality

8.4.1 SOP-3-077-2040-S Logistics Management Manufacturing/ Production

8 SOP-3-050-2077-S MCO-I Sales Sales

8.5.5 SOP-3-091-2035-S Warranty Management Quality

8 SOP-3-115-4060-WF, Field Service process Field Service

4061, 4062, 4309-11
8 SOP-3-111-4291-WF Spare Parts Execution CSB
Sop-3-084-2004-S Equipment Preventive Maintenance Facility

ISO 14001:2015
10 SP PORTAL HSE CAPA tracker HSE

6.1 SP PORTAL Register Waste Streams HSE

6.1 SP PORTAL Register of Compliance Obligations HSE

4 SP PORTAL Register of Neighboring Companies HSE

SOP-3-123-2110-S Storm Water PPP HSE
SOP-3-123-2065-S Waste Management HSE
 SOP-3-090-2017-S (Rev. 4) 41/47

ISO Requirement No. SOP No. SOP Title Responsibility

ISO 45001:2018
8 SOP-3-120-2066-S Emergency Action Plan HSE (E-Learn)

7 SOP-3-121-2105-S OSHA 12 – Regular Annual Training HSE

8 SOP-3-121-2175-S Bloodborne Pathogens Program HSE

9.1 SOP-3-120-2061-S Compliance Management HSE

8.1 SOP-3-121-2139-S Control of Hazardous Energy HSE

8.1 SOP-3-121-2126-S Lifting & Rigging Equipment HSE

8.1 SOP-3-121-2117-S First Aid Procedure HSE

SOP-3-120-2125-S Compressed Gas Cylinder Safe Use & HSE
8.1
Storage
5.4 SOP-3-121-2140-S Consultation and Participation of Workers HSE

5 SOP-3-121-2127-S Security Protocol HSE

6.1 SOP-3-121-2059-S Hazard Communication HSE

8.1 SOP-3-120-2008-S Contractor Control HSE

6.1 SOP-3-121-2009-S Fall Protection HSE

ISO 27001:2013
4-8 SOP-3-100-1001-P IT Security Policy Information Technology

ISO Requirement No. SOP No. SOP Title Responsibility

IMS Records
7 SOP-3-084-2004-S Preventive Maintenance Records Facility

6.1 SP Home Stop Work Authority Record QHSE

7.2 SOP-3-024-2062-S Competence Records HR, HSE

9.2.2 SOP-3-091-2023-S Internal Audit Records QHSE, IT

9.3 SOP-3-091-2024-S Management Review Records QHSE & IT

ISO 9001:2015
6 SP Portal Process Control and Risk Assessment Quality

7.1.5.1, 7.1.5.2 SOP-3-092-2018-S Calibration Records Quality

7.5.3.2 SP Management of SOP Documentation Quality

8.5.2 SOP-3-094-2033-S Receiving Inspection Records Quality

8.53 SOP-3-072-2090-S Customer Property - Storage Manufacturing/ Production

8.5.6 Project Files Change Records Project Management

8.2.3.2,8.3.3 – 8.3.6 SP Project Deliverables Engineering Records Engineering

8.4.1 SOP-3-047-2027-S Supplier Control Records Procurement

8.6 Project Files Certificate of Completion Records Quality, CSB

8.7.2 SOP-3-091-2022-S NCR Records Quality

9.1.1 SP Portal -Objectives QMS Records Quality

10.2.2 SOP-3-091-2025-S Corrective Action Records Quality

ISO 14001:2015
6, 9.1.1 SOP-3-123-4112-R EMS Workbook Record HSE

7.4.1 SP PORTAL Communication Log HSE

9.1.2 SP PORTAL Compliance Evaluation HSE

10.2 SP PORTAL HSE Observation List HSE

ISO 45001:2018
8.2 SP Portal –Bus. Rec. Emergency Action Plan Records HSE

ISO 27001:2013
4-8 SP Portal –Bus. Rec. IT Security Records Information Technology
 SOP-3-090-2017-S (Rev. 4) 42/47

Attached Table 4-3: Process Control and Risk Assessment Plan for IMS
1. Form and Procedure Sample

Process Control and Risk Assessment Plan

Date (Orig.) Prepared by: Created by: QHSE

Support Key Product and Service Processes 10-11-17 QHSE

Process
Evaluation
Process Methods to Documen
Responsible Identified Method
Step Name / Inputs Outputs Ensure Required Risk Score ted
Person / Risks and (How Risk
Number Operation Required Expected Effective Resources (1, 2 or 3) Informati
Group Opportunities is
Description Operation on
Managed)
Risks
Identified?

2. Score / Risk Criteria Example

1 Potential Low Impact on Customer Satisfaction, Form, Fit or Function
2 Potential Medium Impact on Customer Satisfaction, Form, Fit or Function
3 Potential High Impact on Customer Satisfaction, Form, Fit or Function

3. Processes and Interactions

 SOP-3-090-2017-S (Rev. 4) 43/47

Attached Table 5-1: Major Duties of Divisions and Departments

Divisions/Department Major Duties
Integrated Management System
Duties related to environmental management system
Representatives (IMRs)
(1) Coordinating and maintaining QHSE & IT management system

Duties related to:

Independent Auditor z internal audits of IMS processes and evidence of use
z evaluation of internal control relating to reliability of compliance, risk
based management, continual improvement and system effectiveness

Duties related to quality assurance and control:

¾ Managing nonconformities and driving continual improvement
¾ Coordinate quality assurance and control in repair, services,
assembly, fabrication and machining of turbomachinery parts and
QHSE & Systems
equipment
z Health Safety and Environmental Planning programs and oversight
z Information Technology systems that focus on uptime and data security
z Information Technology systems that drive productivity through
standardization and simplification

Accounting Department - Duties related to:

z Coordinating overall corporate financial management and reporting;
z Support business strategy such as:
¾ mid- and long-term business plans;
¾ market research and benchmarking;
¾ alliances and M&A study; and
x P/O management, financial results, and cash flows
x Statutory audits, construction cost, building expenses, cost
Corporate Governance accounting, and cash management
Corporate Governance - Duties such as:
x Liaison to Corporate Headquarters and MCO-I Board of Directors
x Corporate Compliance and Risk Analysis;
x Delegation of authority
x Documentation and legal affairs;
Human Resources: Duties including:
x labor and personnel; development, hiring, firing, support
x benefits administration

Duties related to the following activities:

z Planning and coordinating material procurement operations
Procurement Department z Supplier management
z Strategic alignment of sources with business needs and growth

Marketing
x Corporate communications such as public relations
x Brochures, trade shows, articles, advertisement, press
communications, videos
Sales Department - Duties related to:
x Profit and loss management
x Short-term business plans;
x Sales activities for inquires;
Technical - Duties related to:
z Coordinating inquires;
Sales and Marketing
z Providing technical proposals and services to customers;
z Conducting technical negotiations with customers; and
NUB and CSB
z Master plans including equipment selection and technological study
z Provide training and installation-related information
Commercial – Duties related to:
x Conducting commercial negotiations
x Conducting contract negotiations
x Receive PO; release invoicing & request for payment
x Track commercial project execution
x Controls and reports financials to controller
 SOP-3-090-2017-S (Rev. 4) 44/47

Divisions/Department Major Duties

Production Management Section - Duties related to the following activities:

x Planning and construction of packaging systems
Production Control Section – Coordinate the following activities:
x Cost management
x Cost estimate
x Quality control
x Schedule management
x Development of manufactured processes and product
x Process control
Major Processes
Production, Logistics and Facilities x Rotor Balancing and Repair
x Machining
x Weld and fabrication
x Clean, Blast and Painting
Assembling & Shop Test Section - Duties related to:
x Assembly;
x Commissioning;
x Production and facility equipment introduction;
x Equipment management and maintenance; and
Preservation, Storage and Shipping
Packing, shipment, import, and export
Warehouse management
Export controls

In House Engineering
x Product planning;
x Drawing and part number creation
x Coordinating in-house design standards, internal and external
engineering standards, and specifications;
x Reverse engineering;
x Engineering and detailed design for compression systems,
equipment technologies, and piping structural technologies
x Instrument & Electrical Engineering Section - Duties related to
engineering and detailed design for instrumentation, electrical, and
control technologies
Engineering & Design Application Engineering Group - Duties related to the following activities:
x Providing engineering-related support for new sectors and inquiries
about mega projects
x Providing technical proposals to the Global Marketing & Sales
Division
x Providing technical assistance to the Global Marketing & Sales
Division in relation to services
x Providing assistance to the Global Marketing & Sales Division in
developing master plans including equipment selection and
technological study for inquiries
Project Management Group - Duties related to:
x Coordinating projects; and
x Coordinating company-wide system development

Technical Service Group - Duties related to the following activities:

z Turnaround management
Field Service (advisory only) z Customer training
z Spare parts and service advisory
z Customer asset management
 SOP-3-090-2017-S (Rev. 4) 45/47

Attached Table 5-2: Departmental Roles and Responsibilities

Section

President / Gen Counsel

Information Technology

QHSE

Procurement

Sales and Marketing

Design

Production / Service

Human Resources
No.

Integrated Management Manual (SOP-3-090-2017-S)

4.1 Understanding MCO-I and its context @ @ @ @ @ @ @ @

4.2 Needs and expectations of interested parties @ @ @ @ @ @ @ @
4.3 Scope of the environmental management system O O @ O O O O O
4.4 Integrated management system and its processes O O @ O O O O O
5.1 Leadership and commitment @ @ @ @ @ @ @ @
5.2 MCO-I policy @ @ @ O O O O O
5.3 Organizational roles, responsibilities and authorities @ O @ O O O O @
6.1 Actions to address risks and opportunities @ @ @ O O O O O
6.2 IMS objectives @ @ @ O O O O O
6.2 IMS objectives and planning to achieve @ @ @ O O O O O
6.3 Planning for change of the IMS O @ @ O O O O O
7.1 Resources @ O O O O O O @
7.2 Competence @ @ @ @ @ @ @ @
7.3 Awareness @ @ @ @ @ @ @ @
7.4 Communication @ @ @ @ @ @ @ @
7.5 Documented information O O @ O O O O O
8.1 Operational planning and control O O O @ O O @ O
8.2 Requirements for products or services O O O O @ O O O
8.3 Design and development of products or services O O O O O @ O O
8.4 Control of externally provided processes and services O O @ @ O O O O
8.5 Production and service provision O O O O O O @ O
8.6 Release of products or services O O @ O O O O O
8.7 Control of non-conforming outputs O O @ @ O O @ O
9.1 Monitoring, measurement, analysis and evaluation O O @ O O O @ O
9.2 Internal Audit O O @ O O O O O
9.3 Management Review O @ @ O O O O O
10.1 General O @ @ @ @ @ @ @
10.2 Nonconformity and corrective action O O @ O O O O O
10.3 Continual improvement O @ @ @ O @ @ O
*Remarks:
@ denotes a responsible department.
O denotes a related department.
 SOP-3-090-2017-S (Rev. 4) 46/47

Attached Table 8-1: Operational Planning and Control – Lifecycle Perspective Consideration

Process Consideration Comment

Noise When customer specifies noise NA
acceptance limitation, suitable
noise insulation will be
furnished with the compressor
and turbine to satisfy with the
requirement.
Gas / Steam Leak 1) Pressure containing parts MCO-I oppose performing gas
should be designed / fabricated tests / leak tests in the shop, as
/ tested to hold the pressure it is quite dangerous given the
without leak. entrained energy in the large
2) When the pressure volume of compressible gas
containing components are required to perform pressure
repaired, a hydrostatic pressure testing of components, giving
test shall be performed. rise to very serious health and
3) Compressor has seal safety concerns should a burst
system. When dry gas seal is occur. Therefore, it is stipulated
applied, it has small leak. that only hydrostatic tests can
Monitoring system for leakage be performed during the course
is provided for site operation of overhaul and repair work.
and alarm/shutdown system will
be applied according to the
customer’s requirement.
Machine Service Life Equipment (including NA
auxiliaries) design and
construction per API standard
is covered a minimum service
life of 20 years and at least 5
years of uninterrupted
operation.
Personnel protection Steam turbine has thermal NA
protection for personnel
protection. Thermal insulation
for proper operation and
personnel protection shall be
provided by vendor. Exposed
surfaces in personnel access
shall not exceed a temperature
of 60 degrees Celsius (140
degrees Fahrenheit). Turbine
casing and components shall
be insulated with removable
blanket type insulation
 SOP-3-090-2017-S (Rev. 4) 47/47

Revision History
Revision Approved Reviewed Prepared
Date Reasons by by by
Number

Established November 13, 2017 Newly established. Otsuki Rominger Jamerson

1 Feb 21, 2018 Add Tenets. Add MOC process Rominger Moir Jamerson

Add list of records. Update for ISO 45001 standard

approved. Update Internal/External issues table;
2 Mar 21, 2018 Rominger Moir Jamerson
update management system diagram to show input
and outputs
Document review to ensure OH&S standard
Steffenau
3 Nov 16, 2018 requirements are included. Added document Rominger Jamerson
er
names to Table 4-2
Clarify Field Service role as advisory in the scope of
4 Nov 22, 2019 the IMS (p. 8, 10 &44). Add consideration for Rominger Rominger Jamerson
lifecycle perspective (p. 25 & 46)