EGBA SPLIT CLAMPS LIMITED

Ref. No: ESCL-SOP-013

Outsourcing Procedure

Rev. No: 01
Issue Date: 6th May, 2013
Page 1 of 6

OUTSOURCING
PROCEDURE

APPROVAL AND REVISION STATUS

Rev. No.
01

Issue Date

Revision

06/05/2013

Identification
First Revision

Prepared by

Reviewed

Approved by

Production
Manager

by
QHSE
Manager

Managing
Director

EGBA SPLIT CLAMPS LIMITED

Ref. No: ESCL-SOP-013

Outsourcing Procedure

Rev. No: 01
Issue Date: : 6th May, 2013
Page 2 of 6

CHANGE (S)/AMENDMENT (S)

The change(s)/amendment(s) noted below have been made and approved by the
Managing Director for issue.

Change/Amendment No.

Date

Page

Description of Change/Amendment

EGBA SPLIT CLAMPS LIMITED

Outsourcing Procedure

Ref. No: ESCL-SOP-013

Rev. No: 01
Issue Date: : 6th May, 2013
Page 3 of 6

1.0

PURPOSE
Outsourcing involves transferring responsibility for carrying out an activity to an
outsourcer (supplier) for an agreed charge. The outsourcer provides services to ESCL
based on a mutually agreed service level, normally defined in a formal contract.
Many commercial benefits have been ascribed to outsourcing, the most common
amongst these being:
Reducing the organizations costs;
Greater focus on core business by outsourcing non-core functions;
Access to world-class skills and resources.
Despite outsourcing certain aspects of ESCL service delivery the control over the
outsourced process still lies with ESCL.
This procedure therefore, defines the controls, method and responsibility for
outsourcing in order to ensure that outsourced services conform to all clients, statutory
and regulatory requirements.

2.0

SCOPE
This procedure is applicable to the outsourcing of aspects of ESCL service delivery to
suppliers (outsourcers).

3.0

REFERENCES
NIS ISO 9001:2008, Quality Management Systems-Requirements.
NIS ISO 9000:2005, Quality Management Systems-Fundamentals and Vocabulary.
ESCL Quality Manual (ESCL-QM-001)
ESCL-SOP-012, Procurement Control Procedure
Form 108, Supplier Deficiency Report
Form 122, Supplier Evaluation
Form 123, Supplier Re-evaluation

4.0

TERMS AND DEFINITIONS

The following terms and definitions and the ones given in ESCL Quality Manual and
NIS ISO 9000:2005 apply.

4.1

ESCL: Egba Split Clamps Limited.

4.2

ISO: International Organization for Standardization.

EGBA SPLIT CLAMPS LIMITED

Outsourcing Procedure

Ref. No: ESCL-SOP-013

Rev. No: 01
Issue Date: : 6th May, 2013
Page 4 of 6

4.3

NIS: Nigerian Industrial Standard

4.4

Supplier (contractor, Vendor): Organisation or person that provides a product to

ESCL e.g. vendor of a product, or provider of a service or information.

4.5

Contract: Agreed requirement between ESCL and a supplier to perform or provide

specified services or products respectively transmitted in writing.

4.6

Purchase Order: An official document raised by ESCL, which sets out all the
requirements for an order. This could be for foreign orders or for local orders.

5.0

RESPONSIBILITIES AND AUTHORITY

5.1

Top Management: Responsible for the overall outsourcing activity in the company,
including review and approval of applicable Purchase Order/contract.

5.2

Production Manager: Provides all technical and contractual information relevant to

any outsourcing in a project. Responsible also for the overall control of any
outsourced service related to the production of Egba Split-Sleeve Clamps.

6.0

PROCEDURE

6.1

General

6.1.1 Outsourced services in ESCL are in the area of Calibration, Non-Destructive Testing
and Hydrotesting as applicable to a process/project.
6.1.2 Services are only outsourced to suppliers who have been evaluated and approved as
contained in the Procurement Control Procedure (Ref No. ESCL-SOP-012) or to
suppliers nominated and approved by the client.
6.1.3 This does not however, absolve ESCL of the responsibility of conformity to all clients,
statutory and regulatory requirements associated with the service delivery.
6.2

Type and Extent of Control to Outsourced Processes

6.2.1 The general control applied to outsourced processes is as contained in the

Procurement Control Procedure (Ref No. ESCL-SOP-012).
6.2.2 Specific controls for relevant outsourced processes in the production of
Egba Split-Sleeve Clamps are as follows:
a)

Nondestructive Testing(NDT)
Controls before engagement for NDT Processes include:
Current NNRA Certificate for Registration of Premises

EGBA SPLIT CLAMPS LIMITED

Outsourcing Procedure

Ref. No: ESCL-SOP-013

Rev. No: 01
Issue Date: :17th April, 2013
Page 5 of 6

Current NNRA Certificate for use of radioactive sources

NDT Personnel Certification
Emergency response procedure for source retrieval
Does the Dark room meet acceptable requirements?
Availability of Graph Viewer & other tools
Controls for NDT process during service delivery include:
Client acceptance of the contractor if applicable
NDT requisition to be signed by the Contractor, ESCL and Client(when required)
Released reports to be checked and accepted by ESCL and Client.
b)

Calibration
Controls before engagement for calibration Process include:
Have an acceptable procedure for calibration
Certified and calibrated measuring standards
Have track record of carrying out calibration for a reputable company
Job Hazard Analysis(JHA)
HSE Plan
Controls for calibration process during service delivery include:
Client acceptance of the contractor if applicable
Calibration requisition to be signed by the Contractor, ESCL
Calibration certificates to be issued within 24hrs after completion of calibration.

c)

Hydrotesting
Controls before engagement for Hydrotest Process include:
Have an acceptable procedure for hydrotesting
Certified and calibrated equipments
Have track record of carrying out HYDROTEST for a reputable company
Job Hazard Analysis(JHA)
HSE Plan
Controls for Hydrotest process during service delivery include:
Client acceptance of the contractor if required
Hydrotest requisition to be signed by the Contractor, ESCL

 Set - Up to be inspected and accepted by ESCL

EGBA SPLIT CLAMPS LIMITED

Outsourcing Procedure

Ref. No: ESCL-SOP-013

Rev. No: 01
Issue Date: : 6th May, 2013
Page 6 of 6

Upon completion, set-up to be inspected by ESCL before depressurising

Hydrotest charts and reports to be signed within 24hrs after completion of test.
6.3

Supplier Performance
Deficiencies encountered as a result of outsourcing of services in the areas of quality,
delivery, service provision are documented in Form 108. The information is used as an
input for the re-evaluation of the supplier.

7.0

RECORDS

7.1

Supplier evaluation and re-evaluation records

7.2

List of approved suppliers

7.3

Evidence of outsourced contract.