1. TQM Study in Royal Commission of Jubail CEM 515

2. Purpose of the royal commission Is to develop, construct and maintain the infrastructure of Jubail-2: Is to develop, construct and maintain the infrastructure of Jubail-2: Earth Work, Earth Work, Concrete channels & bridges Concrete channels & bridges roads roads Substations Substations 230/34.5 kV & 115/34.5 kV (SEC) 230/34.5 kV & 115/34.5 kV (SEC) Telecom (STC) Telecom (STC) pipelines: pipelines: - Seawater cooling (Marafiq) - Seawater cooling (Marafiq) - Water in/out (Marafiq) - Water in/out (Marafiq) - Industrial gas Methane/ Ethane (ARAMCO) - Industrial gas Methane/ Ethane (ARAMCO) - Industrial waste (Marafiq) - Industrial waste (Marafiq)

3. Sea water cooling pipeline

4. Problem statement Lack of Coordination between Royal Commission and Marafiq for the final acceptance of construction works of Jubail-2 Projects Lack of Coordination between Royal Commission and Marafiq for the final acceptance of construction works of Jubail-2 Projects

5. Effects Delay on close-out date of the project Delay on close-out date of the project Excessive submittal review work Excessive submittal review work Punch list items not in the scope of contract Punch list items not in the scope of contract Unfamiliarity with construction problems Unfamiliarity with construction problems Rework of finished work Rework of finished work Specifications correspondence between entities Specifications correspondence between entities Reject of work already paid/accepted Reject of work already paid/accepted

6. Pareto Note: Based on feedback from RC staff involved in the project

7. As-planned Award Initial Acceptance Close-out Project Timeline Final acceptance Approval of project Area of concern

8. As-built Award Initial Acceptance Close-out Project TimelineCommissioning Delay Final acceptance Approval of project

9. RC flow chart Start Plan the project Prepare budget Start design Marafiq involvement Start construction Handle-over to Marafiq IAMarafiq involvement Close-out End YES NO Area where problem is noticed Problem discussion

10. START Contractor complete Milestone & ready for Initial Acceptance (I/A) FCS & his group determine if milestone is complete and contractor request is ok Contractor send letter request for I/A If the above is accepted FCS prepare I/A inspection package A RC Acceptance team will designate team for inspection RC Acceptance team will issue I/A Deficiency List for the complete scope FCS will review items and issue letter to Contractor to complete all I/A deficiencies When I/A Deficiency completed to the satisfaction of FCS, a request for re-inspection of the completed items is sent The RC acceptance team will issue the Initial Acceptance Exception List (Exception for remaining deficiencies) A FCS will recommend Initial Acceptance Certificate with the exceptions to RC Contractor to complete all exception items during the warranty period If all I/A exception items are satisfactory completed and the one year warranty finish, the FCS/ Contract Administrator will recommend and issue Final Acceptance Certificate to RC approval All performance bond and release of financial issues will be done upon issuance of Final Acceptance Certificate INITIAL ACCEPTANCE FLOWCHART END Yes No RC Acceptance team will contact involved future Owner Utility Co. MARAFIQ SCECO POWER & TELECOM ROADS

11. Process mapping Marafiq RC Construction RC Engineering RC IA Team Contractor Plan Review Design A/E Design Review Award Construct SuperviseInspect Review Accept

12. Initial acceptance requirements AS-BUILT AS-BUILT O&M Manuals O&M Manuals Spare parts Spare parts Encroachment Permit Encroachment Permit Warranty Warranty Performance bond – cant be 3 rd party beneficiary Performance bond – cant be 3 rd party beneficiary Change orders Change orders Claims Claims

13. Close-out requirements Technical submittals-who should review them Technical submittals-who should review them QC documentation QC documentation Spare parts Spare parts O&M Manuals O&M Manuals As-built drawings As-built drawings Testing and commissioning-wittiness Testing and commissioning-wittiness Final quantities Final quantities Change orders and claims Change orders and claims In-House inspection In-House inspection

14. Force field analysis Contractor wants to finish work Finance department stress to close-out the project Jubail-2 schedule time Upper management monthly reviews Staff accomplishment records Reputation of the Royal commission Old procedures JMP-1975 NO custodian contractual liabilities specification correspondence Motivation of staff Overload on Marafiq Mutual scope clarification Warranty/Bond expiry

15. Cause and effect diagram Lack of coordination between RC and Marafiq Contractor procedureRC procedureMarafiq procedure Contractor peopleRC peopleMarafiq people No tracking system New staff No technology involved No mutual procedure Un familiar to RC No Motivation Overload Lack of knowledge Contractual obligation s When to review submittals No Mutual procedure No quality check No reporting system New staff No Motivation Overload Lack of knowledge No Motivation Lack of knowledge Not familiar with procedures

16. Solution Review IA procedure and requirements Review IA procedure and requirements Involve custodian in analysis design and all construction phases Involve custodian in analysis design and all construction phases Recruit more people Recruit more people Assign a contractual obligation to custodian in order to meet demands Assign a contractual obligation to custodian in order to meet demands Establish Mutual procedure Establish Mutual procedure Online mutual courses with Mutual procedure Online mutual courses with Mutual procedure Motivate people Motivate people