Final Report Intern - Nur Maizatul Adha

FACULTY OF BUILT ENVIRONMENT
DEPARTMENT OF QUANTITY SURVEYING
3SBEC
INDUSTRIAL TRAINING REPORT
CURRENT ISSUES: MUTUAL UNDERSTANDING IN MATERIAL

MANAGEMENT SYSTEM IN YARD
INDUSTRY ISSUES: HEALTH, SAFETY AND ENVIRONMENT RISK IN YARD
SEMESTER 2014/2015 - 02
ACTUAL BUILDER SDN BHD (731322-T)

G-01, BLOK E, JALAN JELATANG 4, TAMAN CAHAYA KOTA PUTRI, 81750
MASAI, JOHOR DARUL TAKZIM
SUBMISSION DATE: WEEKS 20 (25TH MAY 2015)
NAME: NUR MAIZATUL ADHA BINTI MU’ALIS

IC. NO.: 910621 – 01 – 5890
MATRIC NO: B13BE0027
1
2 CONTENTS
3 ACKNOWLEDGEMENT .............................................................................................................. 9
CHAPTER 1 ......................................................................................................................................... 11
1.0 Company Background and Philosophy ................................................................................. 11
1.1 Company Corporate Information .......................................................................................... 12
1.2 Mission and Vision ............................................................................................................... 13
1.3 Company Policy .................................................................................................................... 13
1.4 Organization Chart ................................................................................................................ 14
1.5 Product .................................................................................................................................. 14
1.5.1 Architectural (Engineering and Marine Repair) ........................................................... 15
1.5.2 Piping and Plumbing System (Engineering and Marine Repair) .................................. 15
1.5.3 Steel Fabrication ........................................................................................................... 16
1.5.4 Mechanical Installation ................................................................................................. 16
1.5.5 Structural (Engineering) ................................................................................................ 16
1.5.6 Manpower Supply ......................................................................................................... 17
1.6 Project List for Current and Past Tract Record ..................................................................... 17
1.7 License and Certificate.......................................................................................................... 21
1.7.1 Asbestos Removal Training Certificate ........................................................................ 21
1.7.2 PETRONAS CARI GALI License................................................................................ 21
1.7.3 Registration of MMHE Contractor and License ........................................................... 22
1.7.4 Registration with CIDB ................................................................................................ 22
1.7.5 Certificate of Completion.............................................................................................. 23
1.7.6 Certificate of Appreciation............................................................................................ 25
CHAPTER 2 ......................................................................................................................................... 27
4 CURRENT ISSUES IN OIL AND GAS INDUSTRY ................................................................. 27
5 (MUTUAL UNDERSTANDING IN MATERIAL MANAGEMENT SYSTEM IN YARD) ..... 27
2
2.0 License and Certificate.......................................................................................................... 27
2.1 Problem Statement ................................................................................................................ 27
2.2 Research Question ................................................................................................................ 28
2.3 Research Objective ............................................................................................................... 28
2.4 Significant Of Study ............................................................................................................. 28
2.5 Research Methodology ......................................................................................................... 28
2.6 Supply - Chain Management................................................................................................. 29
2.7 Strategic Sourcing by MMHE............................................................................................... 29
2.8 Process of Strategic Sourcing and Responsibility................................................................. 32
2.8.1 Identify Sourcing Category ........................................................................................... 32
2.8.2 Contracting Strategy ..................................................................................................... 32
2.8.3 Prepare Tender Document and Receive Tender............................................................ 33
2.8.4 Commercial Bid Opening and Evaluation .................................................................... 33
2.8.5 Perform Multi – Party Negotiation ............................................................................... 33
2.8.6 Prepare Award Recommendation ................................................................................. 33
2.8.7 Prepare and Issue Letter Award .................................................................................... 34
2.8.8 Contract Issuance and Approval Authority ................................................................... 34
2.9 Project Procurement Management ........................................................................................ 34
2.9.1 Receive Letter of Award and Prepare Overall Contracting Strategy ............................ 36
2.9.2 Prepare Procurement Plan ............................................................................................. 37
2.9.3 Receive Request ............................................................................................................ 37
2.9.4 Sourcing and Issuance of Purchase Order ..................................................................... 38
2.9.5 Monitor and Update Progress ....................................................................................... 38
2.9.6 Interfacing with Client / Project Management Team (PMT) ........................................ 38
2.9.7 Manage Vendor Documentation ................................................................................... 38
2.9.8 Post Award Activity ...................................................................................................... 38
2.9.9 Project Close out Report ............................................................................................... 39
2.10 Procurement Process for Material and Services.................................................................... 39

3
2.10.1 Receive and Verify Request .......................................................................................... 40
2.10.2 Issue Pre-Qualification.................................................................................................. 41
2.10.3 Prepare Approved Source List ...................................................................................... 41
2.10.4 Prepare Tender Plan and Issue Tender Document ........................................................ 41
2.10.5 Commercial Bid Opening and Evaluation .................................................................... 41
2.10.6 Perform Negotiation...................................................................................................... 42
2.10.7 Award Recommendation............................................................................................... 42
2.10.8 Issue Purchase Order ..................................................................................................... 42
2.10.9 Repeat Order ................................................................................................................. 42
2.11 Material Management and Logistic ...................................................................................... 43
2.11.1 Receive Material Delivery Information ........................................................................ 44
2.11.2 Prepare Storage Area .................................................................................................... 44
2.11.3 Material Receiving and Inspection Activity ................................................................. 44
2.11.4 Material Storage and Preservation Activity .................................................................. 44
2.11.5 Material Issuing and Returning Activity ....................................................................... 45
2.11.6 Manage Surplus Material and Disposal Material. ......................................................... 45
2.11.7 Safety and Record ......................................................................................................... 45
2.12 Mutual Understanding between MMHE and Subcontractor about Quality Material
Management...................................................................................................................................... 45
2.13 Material Damages when arrived at yard. .............................................................................. 47
2.14 Conclusion ............................................................................................................................ 48
CHAPTER 3 ......................................................................................................................................... 50
6 ............................................................................................................................................................ 50
7 INDUSTRY ISSUES IN OIL AND GAS INDUSTRY ............................................................... 50
8 (HEALTH, SAFETY AND ENVIRONMENT RISK IN YARD) ............................................... 50
3.0 Background Studies .............................................................................................................. 50
3.1 Problem Statement ................................................................................................................ 51
3.2 Research Question ................................................................................................................ 51
4
3.3 Research Objective ............................................................................................................... 51
3.4 Significant Of Study ............................................................................................................. 51
3.5 Research Methodology ......................................................................................................... 52
3.6 Health, Safety and Environmental Management System by MMHE ................................... 52
3.6.1 Health, Safety and Environment Management System Frameworks ............................ 53
3.6.2 Company Health, Safety and Environmental Policy..................................................... 53
3.6.3 Hazard Identification, Risk Assessment and Risk Control (HIRARC) ........................ 54
3.6.4 Environmental Aspect ................................................................................................... 54
3.7 Resources, Roles, Responsibilities, Accountability and Authority ....................................... 55
3.7.1 Company Organization Structure.................................................................................. 55
3.7.2 Company Offshore Business Organization Structure ................................................... 55
3.7.3 Company Marine Business Organization Structure ...................................................... 56
3.7.4 HSE Management Committee ...................................................................................... 56
3.7.5 Contractor Forum .......................................................................................................... 57
3.8 Health, Safety and Environmental Plan (HSE Plan) ............................................................. 57
3.8.1 Management Leadership and Commitment .................................................................. 58
3.8.2 Health, Safety and Environmental Objectives .............................................................. 58
3.8.3 Strategy for Achieving Objectives ................................................................................ 59
3.9 Organization, Responsibilities, Resources, Standard and Documentation ........................... 59
3.9.1 Project Manager ............................................................................................................ 59
3.9.2 HSE Officer .................................................................................................................. 59
3.9.3 HSE Safety Promoter .................................................................................................... 60
3.9.4 Construction Superintendents ....................................................................................... 60
3.9.5 Project Engineer ............................................................................................................ 60
3.9.6 Supervisor and Foreman ............................................................................................... 61
3.9.7 Workers ......................................................................................................................... 61
3.9.8 Health, Safety and Environmental Training by MMHE ............................................... 61
3.9.9 Daily Tools Box Talk.................................................................................................... 62

5
3.10 Planning and Procedure of identification Hazard and Reporting the Incident, Accident and
Investigation...................................................................................................................................... 62
3.10.1 Hazard Identification Risk Assessment and Risk Control (HIRARC) ......................... 62
3.10.2 Job Hazard Analysis (JHA)........................................................................................... 63
3.10.3 Control the Risk by Applied Personal Protective Equipment (PPE) At Yard............... 63
3.10.4 Procedure of reporting the Incident, Accident and Investigation .................................. 63
3.10.5 Health, Safety and Environmental Communication...................................................... 64
3.11 Critical Activities .................................................................................................................. 65
3.12 U – See U – Act Trending by First Oil Engineering Sdn Bhd (2014) and Actual Builder Sdn
Bhd (2015) ........................................................................................................................................ 70
3.12.1 UCUA Trending October 2014 ..................................................................................... 71
3.12.2 UCUA Trending November 2014 ................................................................................. 72
3.12.3 UCUA Trending December 2014 ................................................................................. 73
3.12.4 UCUA Trending January 2015 ..................................................................................... 74
3.12.5 UCUA Trending February 2015 ................................................................................... 75
3.12.6 UCUA Trending March 2015 ....................................................................................... 76
3.13 Conclusion ............................................................................................................................ 77
9 CHAPTER 4 ................................................................................................................................. 79
10 .......................................................................................................................................................... 79
11 METHOD STATEMENT OF THE PROJECT WORKS ......................................................... 79
4.0 Project Background ............................................................................................................... 79
4.1 Project Information ............................................................................................................... 80
4.2 Method Statement Preparation .............................................................................................. 81
4.3 Installation Sequence ............................................................................................................ 81
4.3.1 Installation Stud Pin ...................................................................................................... 81
This activity will be followed by spot – blasting and priming of all burned spots in the Living
Quarters areas before the next architectural feature is installed. This works responsibilities by blasting
and painting supervisor. ........................................................................................................................ 81
4.3.2 Installation Insulation .................................................................................................... 81
6
4.3.3 Installation Wall Panel .................................................................................................. 81
4.3.4 Installation Door ........................................................................................................... 82
4.3.5 Installation Rubber Matting and Wall Skirting ............................................................. 82
4.3.6 Installation Furniture and Electrical Appliances. .......................................................... 82
4.4 Architectural Work Method Statement ................................................................................. 82
4.4.1 Method Statement for Installation Pin and Insulation................................................... 82
4.4.2 Method Statement for Installation Wall Panel .............................................................. 83
4.4.3 Method Statement for Flooring ..................................................................................... 83
4.4.4 Method Statement for Installation Door and Ironmongeries ........................................ 84
4.5 Summary of Architectural Work Method Statement ............................................................ 85
4.6 Summary of Computer Numerically Controlled (CNC) Pipes Profiling …………………90
12 REFERENCE .......................................................................................................................... 104
13 APPENDIX ............................................................................................................................. 105
5.0 CPP Living Quarters Level 1 .............................................................................................. 106
5.4 CPP Living Quarters Roof .................................................................................................. 110
5.5 CPP Living Quarters Helideck ............................................................................................ 111
5.6 HIRARC Form .................................................................................................................... 112
5.7 Job Hazard Analysis Worksheet ......................................................................................... 117
7
FIGURE CONTENTS
Figure 1shows the Architecture for Engineering works. ...................................................................... 15
Figure 2 shows the Architecture for Marine Repair works. .................................................................. 15
Figure 3 shows the Piping and Plumbing system for Marine Repair. ................................................... 15
Figure 4 shows the Piping and Plumbing System for Engineering. ...................................................... 15
Figure 5 show the pallet was already broken when we received the door. ........................................... 47
Figure 6 shows the damage door that arrived at yard. .......................................................................... 48
Figure 7 the HSE Statistic Board .......................................................................................................... 64
Figure 8 shows the lifting process for toilet module :........................................................................... 95
Figure 9 shows the process of MAPRESS Copper: .............................................................................. 96
Figure 10 shows the Hydrostatic Pressure Test process: ...................................................................... 97
Figure 11 shows the Vinyl sheet installation process: .......................................................................... 98
Figure 12 shows the process of Underlayment Testing: ....................................................................... 99
Figure 13 shows the process of Underlayment Fire Testing: .............................................................. 100
Figure 14 shows the installation Wellhead Platform (WHP Module) at offshore (Bintulu, Sarawak):
............................................................................................................................................................ 101
8
3 ACKNOWLEDGEMENT
Firstly, I would like to thanks Universiti Teknologi Malaysia (UTM) for giving me
opportunity to having my industrial training. Besides that, I also want to thanks our industrial
training coordinator, Puan Tantish Bt. Kamaruddin and my industrial training supervisor
Puan Fuziah Bt Ismail who help me a lot in completing my industrial training.
Without doubt, I also need to thanks to Actual Builder Sdn Bhd for letting me
undergo my industrial training at their company and giving me this opportunity to had my
learning journey at there. Furthermore, I would like to thanks to my supervisor, Mohd Azuan
Bin Abu Shah, a well knowledgeable and experience Project Engineer for teaching me a lot
of thing and giving me valuable knowledge during my industrial training. I‟m very grateful
that he spends his precious time to give me guidance during my industrial training and not
giving up in providing me a useful knowledge regarding the working experience on the real
site situation and working responsibilities as the site engineer and manager.
Mr.Tn.Hj. ZainalAbidin bin Sanudin, General Manager, Actual Builder Sdn Bhd
Mr.Mohd Aizat Bin Mahful , Project Manager Actual Builder SdnBhd
Mr.Mohd Hafiz bin Kamisan, QC Engineer (Architecture), Actual Builder SdnBhd
Mr. Andrew JunitAnak Amis, Material Controller, Actual Builder SdnBhd
Mr. Roger bin Justin, QC Engineer (Plumbing), Actual Builder SdnBhd
Mr.AhmadHafizi bin Jusoh, Safety Coordinator, Actual Builder SdnBhd
Mrs.Asrahbinti Rahim, Technical clerk, Actual Builder SdbBhd
Mr.Salihuddin bin Yaman, Senior Project Engineer, PETRONAS CarigaliSdn. Bhd
Mrs.YantiBinti Ibrahim, Engineer Architecture, Malaysia Marine Heavy Engineering
(MMHE)
In addition, I want to thanks all my colleagues for providing guidance and encouragement me
during my industrial training.
Finally I would like to thanks both my parents and my family who support me in
terms of money and transportation.
9
3SBEC
ORGANIZATION BACKGROUND
SEMESTER 2014/2015 - 02


IC. NO.: 910621 – 01 – 5890
10
CHAPTER 1
ORGANIZATION BACKGROUND
1.0 Company Background and Philosophy
Actual Builder Sdn Bhd (ABSB) was formed by the director of Right Proceed Sdn
Bhd (RPSB), with a new bumiputera partner, specializing in Architectural works. RPSB
being a predecessor of our parent company, Actual Builder Sdn Bhd., was looking to
expand into engineering level in Architectural and Piping. Right Proceed Sdn Bhd with 20
years proven excellent track record supporting well established Oil and Gas Company,
Malaysia Marine & Heavy Engineering and Ramunia Fabricators Sdn Bhd.
Hence, combination with a bumiputera as a major shareholder who himself has more
than 30 years of experience and knowledge in Oil & Gas industries, Actual Builder Sdn
Bhd was granted with a Petronas license with its core business in Architectural Works,
Piping and Mechanical Works.
ABSB strive to provide excellent service to meet or to exceed customer‟s expectation

in Quality, Cost and Delivery with its strong team comprising relevant professional expertise
in their own areas. ABSB believe the “staffs” they had are the main asset and with “open
concept” communication between all staff and Management team, ABSB confident to make
your product realization takes place within the budgeted plan. ABSB committed to provide
equivalent respect and attention to all customers orders, regardless of the project value.
ABSB believe to work along with its supply chain partners rather than just another
supplier in providing a seamless flow of material required in supporting the Maintenance,
Repair and Operational needs during and after the project takes place. ABSB acknowledge
the wealth of experiences it gained coupled with its‟ believe in “continuous improvement” in
achieving company objectives and contributing to the industries.
11
1.1 Company Corporate Information
Name of Company: Actual Builder Sdn. Bhd.
Address: G-01, Blok E, Jalan Jelatang 4,

Taman Cahaya Kota Puteri,
81750 Masai, Johor, Malaysia.
Company Registration No: 731322 – T
PETRONAS License: L – 731322
Web Site: www.actualbuilder.com
E-mail Address: info@actualbuilder.com
Telephone No: +607 386 6624
Fax No: +607 388 6624
Constitution of Business: Private Limited
Date of Corporation: 25th June 2006
Paid – up Capital: RM 2,000,000.00
Authorized Capital: RM 5,000,000.00
Boards of Directors: Mr. Zahri Bin Edin

Mr. Mahmood Bin Hamzah
Mr Len Tin Khoon
Haji ZainalAbidin Bin Sanudin
Banker: Public Bank Bhd ( Masai,Johor )

OCBC(M) Bhd.Tmn.Molek
Company‟s Secretary: M & S Corporate Service Sdn.Bhd

Suite 1306, Level 13, City Plaza,
JalanTebrau, 80300 Johor Bahru, Johor, Malaysia.
Tel : +607 333 8202
12
1.2 Mission and Vision
Mission : To provide personel and profesional services in establishing a long lasting

business relationship.
Vision : To become one of the recognized and successful industry leader by our
customer in the Architecture works, Piping, Mechanical, Structural Works,
Removal Asbestos and Manpower Supply – related business in which we
compete.
1.3 Company Policy
Quality Policy HSE Policy Stop of Works Policy
Drug & Alcohol Policy

13
1.4 Organization Chart
1.5 Product
Actual Builder is one of the engineering and construction contractor which provided
complete oil and gas topside architectural work services solution in Malaysia. Actual Builder
offers a wide range supply of offshore architectural products including: medical offshore
facility, laboratory products & equipment, fire rated wall panel, ceiling, door & window,
offshore accommodation custom made bunk, cabinet & rack, workshop mechanical
equipment, kitchen equipment, plumbing system and etc. with installation work.
14
1.5.1 Architectural (Engineering and Marine Repair)
Figure 1shows the Architecture for Engineering works.
Figure 2 shows the Architecture for Marine Repair works.
1.5.2 Piping and Plumbing System (Engineering and Marine Repair)
Figure 3 shows the Piping and Plumbing system for Marine Repair.
Figure 4 shows the Piping and Plumbing System for Engineering.
15
1.5.3 Steel Fabrication
We have undertaken numerous steel engineering projects for all types of factories and
involve in several field of engineering like fabrication of customized pipe fitting for Willtech
Asia PTE LTD, jig & fixture for FMC Wellhead Equipment Sdn. Bhd., lift car framing,
stainless steel handrail and others.
1.5.4 Mechanical Installation
With the advantageous of being a local contractor strategically located at Iskandar

Malaysia (IM), the main southern development corridor in Johor, Malaysia, Actual Builder is
one of the experienced for mechanical installation works contractor for both upstream and
downstream. We are committed to providing complete customer satisfaction, accompanying
ours clients through every stage from planning, installation and commissioning through to
operation and continuous maintenance.
1.5.5 Structural (Engineering)
The company's range of oil and gas production capabilities extends to all areas of
marine design and construction including structural works.
16
1.5.6 Manpower Supply
It is no secret that the oil and gas (O&G) sector is in direct need of skilled workers to
meet the rising demand for energy. The growing emphasis on meeting the labour needs of the
industry has pave the way for Actual Builder to fill the gap for skilled labour with a certified
talent pool to meet labour demands in the O&G sector.
1.6 Project List for Current and Past Tract Record
2014 – 2015
CONTRACT
START WORK
NO PROJECT LOCATION VALUE
FROM DESCRIPTION
(RM)
MALIKAI EPC TLP MAR Architectural

1 MMHE --
PROJECT 2014 works
SK316 DEVELOPMENT AUG Architectural

2 MMHE --
PROJECT 2014 works
JAN o Architect
3 BESAR-A PROJECT MMHE --
2015 ural works
17
MAR Architectural
4 TAPIS-B LER PROJECT KEMAMAN --
2015 works
2013 - 2014
TANGGA BARAT CPP DEC Additional
1 MMHE 0.313 M
(LUMP SUM) 2014 Repair Works
Carpentry for
LQ,
JULY Refurbishment
2 ENERGY PRODUCER 6 MMHE 1.13 M
2014 of Flooring,
Ceiling, Wall
ETC.
F14DR-A TOPSIDE & Supply of
AUG
3 F14/F29 PROCESS MMHE 0.025 M Pigging Trays &
2014
MODULE Work Bench
Supply of
SHAPADU Specialist Teams
ENERGY & JULY for Upper Riser
4 TAPIS A PLATFORM 2.75 M
ENGINEERING 2013 Heavy Walled
SDN BHD Installation for
Tapis A Platform
F14DR-A TOPSIDE &
F14/F29 PROCESS Mechanical
MMHE
5 MODULE 2013 1.3 M Installation
(OBU)
(SARAWAK SHELL Work
BERHAD)
Hull, Outfitting
6 FPSO CENDOR MARINE MMHE (OBU) 2013 0.0083 M & Carpentry
Works
2011 - 2012
Misc. Cabin
Works of 40‟
1 FPSO CENDOR MARINE MMHE 2012 0.065 M Container and
Temporary
Office On boards
Supply and
Install
AMPA-9-HP
KENCAHA HL Underlayment
2 COMPRESSOR 2012 0.045 M
SDN BHD Deckrete Latex
MODULE
on the LCR Roof
(HP-98/99)
KINABALU CENTRAL Supply,
3 MMHE 2011 18 M
PROCESSING fabrication,
18
PLATFORM installation,
(PETRONAS CARIGALI) testing & pre-
commissioning
works
Architectural for
Living Quarters.
Piping/plumbing
for Living
Quarters
Installation of
the complete
Piping and
Plumbing
HERTEL (SIME System
LQ-B193 PROCESS
DARBY
PLATFORM
4 ENGINEERING 2011 2.5 M Architectural
(NATURAL GAS CORP,
SDN BHD outfitting works
LTD, INDIA)
YARD) Supply and
install (wall,
floor, insulation ,
furniture and
handrail)
2008 - 2010
AMPA-09 HP
SAPURA
COMPRESSION
KENCANA Architectural
1 MODULE 1. 2010 2. 0.4 M
PETROLEUM Works
(BRUNEI SHELL
YARD
PETROLEUM)
Modification
Works for
2 FPSO CENDOR PHASE
MMHE 3. 2010 4. 0.12 M upgrading FPSO
II (PETROFAC)
Cendor PMT
Office
KENCANA
WEST BELUMUT Architectural
3 FABRICATION
5. 2008 6. 10 M
(NEWFIELD) works
YARD
Fabrication,
installation,
testing & pre-
TANGGA BARAT
commissioning
CENTRAL PROCESSING
4 MMHE 7. 2008 8. 18.8 M works
PLATFORM – A
Architectural for
(PETRONAS CARIGALI)
Living Quarters
Piping/plumbing
for Living
19
Quarters
MOPU 256 Architectural

5 MMHE 9. 2008 10. 1.3 M
(PETROFAC) Work
2006 - 2007
Piping works.
TELOK
Architectural
SUMANDAK SELATAN RAMUNIA
1 2007 2.2 M works for
& TEPI (PETRONAS) FABRICATION
(SUJT-C &
YARD
SUPG-B)
TELOK Piping works for
EAST BELUMUT – A
RAMUNIA plumbing.
2 LIVING QUARTERS 2007 6.4 M
FABRICATION Architectural for
(NEWFIELD)
YARD Living Quarters.
Accommodation
piping work for
sanitary and soil
system. Portable
water, fresh
water, hot &
cold water
system.
MMHE Modified and lay

FSO ABU CLUSTER
3 (MARINE 2006 3.0 M new pipe.
(TALISMAN)
CONVERSION) Material CPVC
galvanize pipe
and conifer pipe.
Engine room
miscellaneous,
piping renewal.
Provide layout
and fabrication
drawing.
New piping
work for
T – 10 SELF TENDER MMHE accommodation,
4 DRILLING BARGE (MARINE 2006 2.3 M Brine system,
(SMEDVIG) CONVERSION) fire line and
other pipe
system.
20
1.7 License and Certificate
1.7.1 Asbestos Removal Training Certificate
Actual Builder representatives have participated and completed the asbestos removal
training programme conducted by Alliance safety Management Services Sdn. Bhd. , these
training are essential to meet the standards and covering all safety and technical subjects
outlined by the Occupational Safety and Health and Administration regulations.
1.7.2 PETRONAS CARI GALI License
Actual Builder has been supplying equipment‟s and providing manpower services for
PETRONAS Carigali Malaysia Oil and Gas project since 2006
21
1.7.3 Registration of MMHE Contractor and License
Ours renewal and approved registration with Malaysia Marine Heavy Engineering
(MMHE) as a contractor with validity period from November 2012 to November 2014
authorized us to continue providing services and operation for MMHEs' project in yard.
Registration of Contractor License with MMHE until 2017
1.7.4 Registration with CIDB
Actual Builder is now officially endorsed by CIDB, as a Grade G7 Contractor. This

endorsement adds to another milestone in our credibility as the preferred business partner in
providing quality services. With this, ABSB is capable of tendering for projects within the
area of expertise without any capacity limitation. The G7 grading is awarded to Malaysian
contractors based on the following criteria:
o Solid financial standings with steady business and customer satisfaction growth.
o Capable team of full time personnel with mandatory qualifications and experiences,
embedded within the Human Capital Development process of the company.
o Total years of industry experience held by the firm.
o Successful execution (with evidence) of all contracts or nominated sub-contracts.
22
Registration with CIDB
1.7.5 Certificate of Completion
We have completed projects and have served many satisfied clients as shown in
below Completion Certificates respectfully issued by our clients.
Bertam Field F14DR-A Topsides & GumusutKakap Semi

Development Project F14/F29 Process Module FPS Project
Project (Sabah Shell Petroleum
(Sarawak Shell Berhad) Co. Ltd.)
23
LQ-B193 Process F23R-A Topside KINABALU (KNPG-B)
Platform (Sarawak Shell Berhad) Topside-LQ,
(NATURAL GAS Module & MSF
CORP, LTD, INDIA) (PetronasCarigaliSdn. Bhd.)
F13E(SC)DR-A Topside AnDP-D Platform Pluto LNG Offshore

(West) (Petronas Cari gali Sdn. Platform Topside
(Sarawak Shell Berhad) Bhd.) (Messrs Woodside
Piping Work Piping (Host tie-in) Work Burrup Pte. Ltd.)
Mechanical Installation
Work
24
1.7.6 Certificate of Appreciation
Certificate of Appreciation Certificate of Recognition

UTM Faculty of Mechanical F14DR-A TOPSIDES & F14/F29
Engineering PROCESS MODULE
(Architecture)
Certificate of Recognition Certificate of Appreciation

F14DR-A TOPSIDES & F14/F29 GUMUSUT KAKAP Semi-FPS
PROCESS MODULE Project
(Mechanical)
25
3SBEC

SEMESTER 2014/2015 - 02


IC. NO.: 910621 – 01 – 5890
26
CHAPTER 2
4 CURRENT ISSUES IN OIL AND GAS INDUSTRY

5 (MUTUAL UNDERSTANDING IN MATERIAL MANAGEMENT SYSTEM IN
YARD)
2.0 License and Certificate
Malaysia Marine Heavy Engineering (MMHE) offers a full range of offshore

construction for the offshore and onshore oil and gas industry. It‟s from detailed engineering
design, procurement to construction, installation, hook-up and commissioning. Usually, the
project include the construction of production topsides, process modules, turrets, floating
production system, mooring buoy system and mobile offshore storage units. MMHE yard in
Pasir Gudang, Johor is the only yard in Malaysia that has constructed deep water structures
for oil and gas industry. Offshore construction services include deep water facilities for
example spar and semi – submersible, integrated platforms, Wellhead platform, compression,
dehydration and water injection modules, topsides and hulls, jackets, living quarters, turrets
and mooring buoys and enhanced oil recovery facilities. MMHE need a large area to ensure
all this services can be constructing in one yard.
In aging construction project, the material management team leading the construction
project focusing on the material purchase, material delivery and material storage in yard. Low
quality management might cause lower quality of material that has supply by sub-contractor.
To ensure the sub-contractor used good and high quality of material, all the subcontractor
need to follow the requirement that MMHE give to them.
2.1 Problem Statement
In order to produce a good construction project, main contractor and subcontractor are
compliance to understand the significant of site productivities and site quality management.
Theoretically, the implementation of quality material management system improve the site
productivity, however in the real situation some of the recent construction project had shown
that implementation of quality material management system had improve the quality outcome
27
but taken much duration to achieve the requirement quality standard due to the tight and
difficult requirement to achieved.
2.2 Research Question
1. What are the procurement process of material and services that MMHE provide for all
sub-contractor to follow?
2. How MMHE manage the project procurement for material and services during
tendering?
3. What are the guideline that MMHE give to sub-contractor to ensure they follow the
specification of material and services?
2.3 Research Objective
1. To determine the material management that sub – contractor must follow in the
offshore construction project.
2. To determine the mutual understanding in material services between MHHE and sub
– contractor.
3. To promote safety, improving working condition and maintain product quality.
2.4 Significant Of Study
1. To improve the material delivery and storage system in yard and at the same time
reduce the material damages when material delivered.
2. To fully implement and follow the requirement that client needed.
3. To fully extract all the benefit of the management system implementation.
2.5 Research Methodology
The research methodology applied can be divided into two types of data which are the
primary data and the secondary data. The primary data of research issues in through interview
session with the well experience project manager, project engineer, QC engineer and material
controller. The secondary data of the research issues are through internet and journal.
28
2.6 Supply - Chain Management
Supply- chain management can be defined as the configuration, coordination and

continuous improvement of a sequentially organized set of operations. The goal of supply-
chain management is to provide maximum customer service at the lowest cost possible.
Usually, materials, information, capital, labour, technology, financial assets and other
resources flow through the supply-chain. Since the goal of the company is to maximize
profits, so that they must maximize benefits and minimize the costs along the supply-chain.
Today, there are more opportunities for coordinating activities across a supply-chain even in
such complex operations as oil and gas, because of improving information systems and
communication technologies. Integrating operations management with other functions of the
operation allows all functions to be involved in the supply-chain management decisions.
In recent times, there have been concerns and many have argued that the oil and gas
industry may have entered an era of very scarce resources. In reality however, the resources
are not the cause of supply constraints, given the enormous potential still available including,
currently known and booked reserves, the increasing scope for recovery from existing fields
with new technologies, further potential discoveries, and the new frontier of vast oil sands
and oil shale reserves that are in the money at today‟s prices. The main challenge facing the
oil and gas industry is not the availability of oil and gas resources, but putting these reserves
into production and delivering the final products to consumers at the minimum cost possible.
Thus, a solid supply-chain management program will enhance this goal.
2.7 Strategic Sourcing by MMHE
This strategic sourcing is to give outline between MMHE and sub – contractor about
process for the development of a long term agreement for the item that have been identified
to be sourced strategically. In this strategic sourcing shows the process flow for development
of a long term agreement via Price Agreement, Frame Agreement, and rental Agreement
from the identification of material and services category until contract award.
29
Strategic Sourcing Executive Tender Secretariat
Start
Identify Sourcing
Category
Value Propose & Obtain

>RM1.0m ASL Approval
Prepare & Obtain

Contracting
Strategy Approval
Prepared TD &
Submit to TS
Refer to MMHE for

Tender Issuance /
Receiving Process
Refer to MMHE for

Technical Bid Opening
& Evaluation
Open & Perform Evaluation

for Technical Proposals with
Identification ET
Analyse, Prepare and Obtain

T.E.R Approval
30
Strategic Sourcing Executive Tender Secretariat
Open & Perform Evaluation Refer to MMHE for

for Commercial Proposal commercial Bid Opening &
with Identified ET Evaluation
Analyse, prepare and Obtain

CER. Approval
Perform Multi – Party

Negotiation
Prepare & Obtain Approval

for Award Recommendation
Prepare & Issues Letter of

Award
Prepare & Issue Contract for

Signing
End
31
2.8 Process of Strategic Sourcing and Responsibility
2.8.1 Identify Sourcing Category
First of all, MMHE need to identify the appropriate sourcing category within the
material or services spend, discus and seek approval from Senior Manager. Prepare request
for inspection (RFI) package and obtain approval from manager of Strategic Sourcing.
Strategic sourcing team will prepare and liaise with Tender Secretariat for the issuance of the
approved RFI to vendor or sub-contractor for the pre – screening process. Next, Tender
Secretariat will notify strategic sourcing executive the RFI feedback received for further
action.
2.8.2 Contracting Strategy
In contracting strategic, they will prepared the Approved Strategic List (ASL) for
contract value less than RM 1.0 million. This contract value is based on average yearly spend
for 3 years. For contract value more than RM. 1.0 million, strategic sourcing executive will
prepare the Contracting strategy. The following shall be included but not limited to:
 Approved Source List.

 Mandatory Evaluation Criteria.
 Spend Analysis
 Market trend or forecast.
After prepared all the documentation, finalize and obtain approval for the Contract Strategy
before issuance of Request for Quotation (RFQ) to sub-contractor. The Approval Strategic
List (ASL) shall be endorsed for submission by the Manager Strategic Sourcing and approved
by Senior Manager.
32
2.8.3 Prepare Tender Document and Receive Tender
Prepare the tender document after done the contracting strategy. Technical Secretariat
will prepare Tender Document for issuance to sub-contractor. This tender document must be
approved by General Manager of Technical Secretariat. All the subcontractor will submit the
tender proposal in separate sealed envelope to Tender Secretariat office.
2.8.4 Commercial Bid Opening and Evaluation
Evaluation team will open and perform the evaluation on the technical commercial
proposal as per scheduled. This evaluation will supervised by Tender Secretariat. Strategic
Sourcing Executive will prepare and finalize the evaluation report for approval. The
evaluation report shall be endorsed for submission by Senior Manager and approved by
General Manager.
2.8.5 Perform Multi – Party Negotiation
The negotiation team shall be appointed by Senior Manager of Strategic Sourcing

Department in consulting with General Manager and shall be comprised at least one
Technical member from Business Units (OBU). Next, finalize and tabulate the negotiation
result. The applicable, obtain revised and final quotation from sub-contractor. If any problem,
the revised quotation shall be submitted to Tender Secretariat Department.
2.8.6 Prepare Award Recommendation
Strategic Sourcing Executive (SSE) will open the revised and final quotation before
proceed with the Award Recommendation according to tender process. SSE will amend the
recommendation accordingly taking into account comments or feedback from the approving
authority.
33
2.8.7 Prepare and Issue Letter Award
After award recommendation was approve, SSE will proceed with preparation of
Letter of Award (LOA) and obtain necessary approval. This will refer to clause 6.10 for the
approval from authority. Next, issue the Letter of Award to the selected sub-contractor.
2.8.8 Contract Issuance and Approval Authority
In contract document for awarded subcontractor, they will state the specified period of
time and ensure the contract is signed by MMHE and the respective sub-contractor. The
following are the approval authority for the Letter of Award:
Contract Value
Approver
(RM)
> RM 5.0m Managing Director / CEO
< RM 5.0m Managing Director
< RM 3.0m General Manager
< RM 500K Senior Manager
2.9 Project Procurement Management
This Project Procurement Management was developed as guideline for Project

Procurement Team to monitor the procurement progress or activities from start until
completion of the project. It cover the process of Procurement activities from receiving of
Letter of Award (LOA) until submission of report (Close out Report) to Project Management
Team. Below shows the process flow of the Project Procurement Management:
34
Project Proc. Project Proc.
User Buyer Expeditor
Manager Coordinator
Start
Receive Receive &

Letter of Review
Award & Material Take –
Issue Off with
Material Relevant
Take - Off Documents
Prepare &
Obtain OCS
Approval from
Approving
Authority
Circulate the Receive for Receive for

Approved OCS procurement Tender Plan
Plan Preparation
Preparation
Issue Receive & Check

Request the Request
Discrepancy
Expedite
Assign Request to Conduct
Delivery &
Buyer Sourcing &
Payment
Issue PO
Process
Update
Procurement
Plan
35
Project Proc. Project Proc.
User Buyer Expeditor
Manager Coordinator
Prepare &
Receive &
Obtain Close
Review the
out Report
Updated Report
Approval
Circulate
Close out
Report to
PMT
Record and
Filling
End
2.9.1 Receive Letter of Award and Prepare Overall Contracting Strategy
Received Letter of Award from client and issue Material Take – Off (MTO) with
relevant supporting document to Project Procurement Management. Next, Project
Procurement Management (PPM) will prepare Overall Contracting Strategy (OCS) for the
project. Receive Material Take – Off was include the following document:
i. Client manufacturer.
ii. Summary of Customer Free Issue Material Equipment.
iii. Material and Equipment List within MMHE scope of Supply.
iv. Relevant Contract Document.
Project Procurement Management will prepare Overall Strategy (OCS) based on

Material Take – Off received as guideline for the procurement activities of the particular
36
project handled. This Overall Contracting Strategy shall consist but not limited to the
following:
i. Objective
ii. Project Background
iii. Project Description
iv. MMHE scope of works
v. Etc.
After prepared Overall Contracting Strategy(OCS), Project procurement management

will submit for approval by General Manager Business Unit. Circulate the approved Overall
Contracting Strategy to respective Buyer and coordinator for further action.
2.9.2 Prepare Procurement Plan
Project Procurement Coordinator will draft the Procurement Plan based on Overall
Contracting Strategy (OCS), Material Take – Off (MTO), Field Request Date (FRD) and
other planned duties for the various procurement activities. This draft include from issuing of
purchase and service requisition to issuance of order using a standard Procurement Plan
Template. Project Procurement Coordinator must ensure all the required item in the
Procurement Plan are well furnished for example Receive of Strategy date, Material receive
date and etc. Next, submit and finalize the draft Procurement Plan to
i. Lead Buyer.
ii. Procurement Manager.
iii. Engineering Manager / Coordinator.
iv. Planning Manager / Engineer
v. Project Manager.
2.9.3 Receive Request
Project Procurement Coordinator received and checks the approved request that
issued by user. Notify the user for any incomplete information or any discrepancy has found.
Next, assign each request to buyer based on Head Section advice for further action.
37
2.9.4 Sourcing and Issuance of Purchase Order
In sourcing and Issuance, buyer will perform sourcing activity and issue the Purchase
Order to Project Procurement Management. This stage, Project Procurement Management
shall lead and participate in the Techno – Commercial meeting commenced before issuance
of Purchase Order is furnished.
2.9.5 Monitor and Update Progress
Project Procurement Coordinator shall monitor and update the procurement progress
through the procurement Plan on daily basis. All the information received must relate to the
procurement and subcontracting progress shall be catered in the Procurement Plan. After
done update the progress, submit the updated report to Project Procurement Manager for
review.
2.9.6 Interfacing with Client / Project Management Team (PMT)
Project Procurement Management or coordinator interface with client and project

Management Team on the relevant procurement and services issues. They will attend meeting
as required, update the progress and highlighted the issues.
2.9.7 Manage Vendor Documentation
Project Procurement Management will manage the vendor documentation include the
delivery of material, completion of works by supplier or sub-contractor; monitor the final
document progress that have done by Expeditor.
2.9.8 Post Award Activity
Project Procurement Coordinator shall ensure the materials are delivered as per
contractual delivery date and services work is completed as per agreed in contract. They will
received and review assessment report that provided by Expeditor and ensure all the payment
progress are as per scheduled.
38
2.9.9 Project Close out Report
Project Procurement Coordination will prepare project close out report upon
completion of the project. Usually they prepare one month after the sail away date. This
Project Close Out Report obtain General Manager approval and submit the approved report to
Project Management Team for further action. All the report and relevant document must be
record and filing for audit and future reference.
2.10 Procurement Process for Material and Services
This procurement process for material and services is to ensure that the material and
services are in accordance with the requirement of works specification and systematically
controlled accordance to the system used. This procurement covers the tendering activities
from receipt of request until issuance of Purchase Order to supplier or sub-contractor by
Buyer, excluding the Marine Repair Business Unit (MBU) activity. Process flow of
Competitive Bidding Offshore Business Unit (OBU) shown as the following:
Activity Interface / Outcome

1. Tender Value > RM 500K
 Material/service Request
Receive & Verity  Mandatory Evaluation
Request criteria.
Issue Pre-Qualification  Pre-Qualification

 Relevant Document(s)
 Approved Source List

Prepare & Obtain  Tender Plan
Approval for the ASL  Relevant Document(s)
& Tender Plan
 Tender Plan
Prepare ASL
 Limit of Authority
Issue Tender
Document  Tender Document
39
Activity Interface / Outcome
Receive Tender
 Technical / Commercial
Proposal from Bidder &
Bid
Budget from Cost
 Budget
Controller
Conduct Bid Evaluation  Endorsed QER/QCF

& Prepare QER/QCF  Budget
for Approval  Relevant Document(s)
Conduct Technical Bid  Endorsed TER

Opening & Evaluation  Relevant Document(s)
Conduct Budget &  Endorsed CER

Commercial Bid  Relevant Document(s)
Opening & Evaluation
Perform Negotiation  Minutes Od Meeting
 Minutes OF
Prepare & Obtain AA  Revised Proposal

Approval for Award  Award Recommendation
Recommendation  Relevant Document
 Limits of Authority
Issue Purchase Order

 Purchase Order
2.10.1 Receive and Verify Request
Project Procurement Management will receive approved Material and Service request
with relevant supporting documents from user. Relevant document include mandatory
evaluation criteria, specification, drawing and etc. Project Procurement Management will
verify the request received. If have any discrepancy or incomplete request they shall be
notified to the User.
40
2.10.2 Issue Pre-Qualification
Buyer will conduct pre-qualification activity for purchase value more than RM500,
000. Project Procurement Management will issue approved pre-qualification to bidders via e-
mail, fax or courier.
2.10.3 Prepare Approved Source List
Buyer must prepare Approved Source List (ASL) for purchase value above RM 100
000. Approved Source List will based on Vendor Registration Database, comprises the
registration information such as registration category and registration expiry date. For the
purchase value up to RM 100 000, Approved Sourcing List are not required. They just need
select minimum of three bidders for tender issuances. Once award is recommended, buyer
must prepare Waiver of Registration or advise bidder to register with Supply Chain
Management (SCM) Vendor Registration. Finally, submit Approved Sourced List (ASL) for
approval.
2.10.4 Prepare Tender Plan and Issue Tender Document
Purchase value more than RM 500 000, buyer must prepare Tender Plan and submit
for review and get endorsement by Project Procurement Management. Obtain approval
concurrently for Approved Source List and Tender Plan. Next, buyer will issue tender
document to bidder via email, fax or by courier which is applicable. For value above RM 100
000, advise bidder to submit tender proposal through Tender Secretariat. Tender Secretariat
will receive the document and notify buyer the bid opening schedule.
2.10.5 Commercial Bid Opening and Evaluation
Seek advice from Manager of Section for any extension requested and communicate
with bidder the result achieved via email or fax. Buyer will conduct bid opening after bid
closing date as per scheduled by Tender Secretariat. This activity shall be carried out only at
Supply Chain Management Tender Bid Opening and evaluation room. For tender value above
RM 500 000 bid opening and evaluation shall be carried out by Bid Opening Committee or
Evaluation team.
41
2.10.6 Perform Negotiation
Buyer will conduct negotiation with one or more bidders based on factors such as
time frame and differences in prices. For multi – party Non – Conformity, usually applicable
for purchase value above RM 500 000 and difference is more than 5%. Next, after
completion of the multi-party negotiation, extend a copy of the document to Commercial
Services as reference.
2.10.7 Award Recommendation
Buyer responsible to prepare and submit recommended successful sub-contractor for

review and endorsement by respective parties. Obtain approval for the recommended
successful sub-contractor. Buyer will take action on the remark addressed by approver for the
rejected or unacceptable recommendation.
2.10.8 Issue Purchase Order
Preparation of Purchase Order must be done by buyer and submit to sub – contractor.
Buyer will receive acknowledgement of Purchase Order from the subcontractor. For
material procured, Purchase Order must be uploaded in the system and furnish the Handover
Checklist for Expeditor to proceed with the post award activities. Next, finalize the contract
for service transaction for value above RM 1.0 million.
2.10.9 Repeat Order
Repeat order is allowed for purchase value less than RM 100 000, it‟s depend on this
criteria which is the item must same with the specification, less than 10% change from
previous rates and minor change in specification with the same rates. Buyer must check with
the subcontractor to maintain the price based on historical purchased data. The entire relevant
document shall be kept and made available upon request for audit purposes.
42
2.11 Material Management and Logistic
Material Management and Logistic was developed as a guideline to describe Material

Management and Logistic functions in accordance with the requirement of material and
equipment involved. It does also align with MMHE Supply Management activities. Its cover
the process of material handling by Material Management and Logistic upon delivery of
material by Supplier until returning of surplus materials by Originating Department. Process
flow of Material Management and Logistic shown as the following:
Received and
2.11.1
Transmit Delivery
Information
Plan and Execute for
Transportation and
Custom Clearance
Plan and Prepare for

the Storage Area
Material Delivery
Perform Material
Receiving and Accept
Inspection Activity
Perform Material
storage and
Preservation Activity
NO
YES Perform Material
Accept
Issuing and Returning
Activity
Custom Application
and Clearance for Manage Surplus
Scrap Disposal Material
Dispose/Sale the scrap

Material
43
Receive Material Delivery Information
Material Management and Logistic received materials delivery information from

client and then transmit the delivery information to respective Logistic and Warehouse
Personnel for further action. Next, they will plan and execute for transportation and custom
clearance of the material. They need to prepare official application for tax exemption and
arrange the transportation mode.
2.11.2 Prepare Storage Area
After received of material delivery information, Material Management personnel need

to study the types of material according the packing list. Prepare the material handling
equipment and identify the storage area, facilities and manpower that they need. Next,
tracking the material delivery by contact the person in charge from the supplier. The lorry
must do the declaration before material can enter the yard.
2.11.3 Material Receiving and Inspection Activity
Preparing the document for inspection such as Good Received and Inspection Note
(GRIN), Material Acceptance Certificate (MAC), Delivery Order (DO), Purchase Order
(PO), attachment picture and certificate or any related supported document. Perform visual
and physical inspection of the materials to ensure the materials delivered are complied with
purchase order specification and requirements. When defected material found during the
inspection activity, material controller shall be notified to the supplier for further rectification
process.
2.11.4 Material Storage and Preservation Activity
Material controller need to relocate the accepted material as per identified storage
area. Next, perform preservation activity to ensure all the material accepted and stored are in
good condition.
44
2.11.5 Material Issuing and Returning Activity
Material Management personel receive and verify request for material from
subcontractor via Good Received and Inspection Note (GRIN) and Material Acceptance
Certificate (MAC) document. Then, make necessary arrangement for the issuance of material.
For material requested to be returned to warehouse, subcontractor need to perform inspection
activity with material inspector. Upon acceptance of the material, issue GRIN and MAC
document and arrange for transferring process.
2.11.6 Manage Surplus Material and Disposal Material.
Subcontractor need to identify surplus material and perform the inspection activity
with Material inspector. Issue the GRIN and MAC with relevant supporting documents and
return the material to surplus material storage area. Next material management personel shall
update and publish the Surplus Material List. For the disposal material, issue request for
disposal of scrap material to the Warehouse. Material management personnel ensure the
payment is monitored and the collection scrap inventory record are updated and distributed.
2.11.7 Safety and Record
All the representative needs to ensure the safety precaution are complied. Finally
record and file the necessary documents for future reference.
2.12 Mutual Understanding between MMHE and Subcontractor about Quality

Material Management
Understanding between both sides which is MMHE team and subcontractor about
material management aspect in oil and gas industry are relate to each other where any change
of one side will cause an impact to another aspect. When the MMHE teams focus on
construction works where the construction works are deal with finish on time without care
about the quality of material management, the MMHE team might not get the best quality of
material that require in specification. In order to ensure proper and good quality of material
supply for the construction project, understanding between MMHE team and subcontractor
about material management are the most important.
45
Early construction development project was only focus on the time element where
depending on the site productivities without care about the quality management process. The
relationship between the site quality management especially for material quality management
with site productivity can directly proportional or inversely proportional depending whether
the implementation of the site quality management to the construction project is effective or
not effective. According to the project engineer, the effective of site quality management will
shows positive result on the site productivities. However, poor quality management of project
may cause low site productivities.
According to the project manager, proper implementation of material quality

management will improve the quality of material production. Good quality management will
directly reduce the amount of material damages on site. Good quality material management
on the construction project will give the workers some sense of safeness while working in the
platform. Based on material controller, good quality material management aspect of all the
material supply will not affect and interfacing the platform module. In oil and gas industry,
most of the workers are worried about their daily works activities will disturb and affect the
daily income of the worker due to low margin of work progress. When the material arrived
delay at site that will be effect on the work progress. Thus, effective material quality
management improves the labour productivity and progress work where it give a sense of
easy going job to the workers. Understanding between both side which is MMHE and
subcontractor are important, that not only for the quality material but it‟s also may affect to
the quality productivities of workers.
46
2.13 Material Damages when arrived at yard.
REPORT FOR DENTED EXTERNAL DOORS
IN
OUT - Date and Time received: 25thApril
2015, 0920am
GATE
- 2 containers: Kontena Nasional Global
DECLARATION
Logistic Sdn.Bhd
- With D.O no. : 015874 and 015876
- D.O no. 015874: Consist 2 pallets, but 1

RECEIVING
pallet was damaged
(refer the attachment picture 1)
- No. of damaged pallet: 4 of 6

INSPECTION REJECTED - 4 damaged doors: 1) MD-01-ED1
2) LD-01-ED1
3) LD-03-ED1
4) LDM-01-ED1
ACCEPTED OK
STORAGE
Figure 5 show the pallet was already broken when we received the door.
47
On 25th April 2015 about 0920 hrs, we got the two container delivery from Kontena Nasional
Global Logistic Sdn. Bhd. Before the 6 pallets of external doors arrive at Johor Port, the
items were shipping by China Shipping Container Lines (CCL). However, when we make an
inspection of the delivery (D.O no. 015874) we found four dented doors on pallet no. 4 of 6.
As we can see on the images above, the pallet was already broken when we received the
door.
Figure 6 shows the damage door that arrived at yard.
2.14 Conclusion
The implementation of site quality material management on the construction project

will had the significant effect to the site productivity. The effective site quality management
will directly increase when the both parties between main contractor and subcontractor can
understand about the importance of the quality material management in construction project.
Therefore, the proper monitoring of the quality material management is important in ensuring
lead the high productivity rate.
48
3SBEC

SEMESTER 2014/2015 - 02


IC. NO.: 910621 – 01 – 5890
49
CHAPTER 3
6
7 INDUSTRY ISSUES IN OIL AND GAS INDUSTRY
8 (HEALTH, SAFETY AND ENVIRONMENT RISK IN YARD)
3.0 Background Studies
Malaysia has the 25th largest oil reserves and the 14th largest gas reserves in the world.
In general, the oil and gas industry is complex and have high risk of hazard. Accident in oil
and gas industry can make catastrophic (disaster) effect on people, the environment, assets
and reputation. Project in oil and gas take a several years to complete and involve large
capital outlays. Some of the project considered mega project, due to the huge magnitude, high
cost and high risk. Health, Safety and Environment (HSE) involves protecting the health and
welfare of people and the environment from adverse impacts due to the human and industrial
activities.
Malaysia Marine Heavy Engineering (MMHE) views Health, Safety and Environment
(HSE) as of paramount importance. It is committed to strengthen the implementation of HSE
initiatives across the Group in order to create a culture of healthy living, works safety and
environmental conservation. MMHE continuously are looking for ways and means to
strengthen their HSE commitments. A HSE Management Committee (HSE MC), which
comprises senior management and employee representative, meets monthly to monitor the
group and HSE performance. It is to provide input on issues related to the health, safety and
the environment. MMHE senior management also conducts a monthly HSE walkabout to
reinforce a culture of safety and to foster a closer relationship with employees. Through these
walkabouts, the senior management team is able to identify gaps in our HSE practices and
rectify these issues.
The management firmly believes in creating a healthy works environment to nurture a

healthy workforce. To ensure all the employees wellbeing, MMHE protect them from work
related illnesses and encourage the adoption of a healthy lifestyle. As a renowned player in
the heavy engineering industry, MMHE is committed to conducting their operations in
manner that sustains a healthy environment in the long term. Apart from implementing
50
various initiatives to preserve the environment, MMHE strive to continuously raise the level
of environmental awareness in their community.
3.1 Problem Statement
Oil and gas industry is complex and have high risk of hazard. Accident in oil and gas
industry can make catastrophic (disaster) effect on people, the environment, assets and
reputation. However, implementation of Health, Safety and Environment management on
construction project in control the risk and make the workplace zero of hazard. Therefore,
Health, Safety and Environment (HSE) involves protecting the health and welfare of people
and the environment from adverse impacts due to the human and industrial activities.
3.2 Research Question
1. What are the standard procedures for Health, Safety and Environment (HSE)
management?
2. What are is the most risk and hazard that have in yard?
3. What are the procedure and the process when accident occurred?
4. How to control the risk and hazard in yard?
3.3 Research Objective
1. To determine the risk and hazard in yard.

2. To control the risk and hazard at workplace.
3. To determine the HSE management when accident occurred.
4. To promote safety and improving working condition at yard.
3.4 Significant Of Study
1. To improve Health, Safety and Environment management system in oil and gas
industry.
2. To fully implement and follow the requirement by OSHA.
3. To fully extract al the benefit of HHSE management system implementation.
51
3.5 Research Methodology
The research methodology applied can be divided into two types of data which are the
primary data and the secondary data. The primary data of research issues in through interview
session with the well experience project manager, project engineer, QC engineer and material
controller. The secondary data of the research issues are through internet and journal.
3.6 Health, Safety and Environmental Management System by MMHE
Malaysia Marine and Heavy Engineering recognize that Safety, Health and the
protection of the Environment is of prime importance in the management of its business. Safe
and healthy working condition are create when employer and employees works together to
achieve this goals. HSE management system will give the information and guide all the level
management in their daily operations. The objective of this Health, Safety and Environmental
(HSE) system are:
 Provide information on the aspects of HSE that will aid all the level of management
and employees in planning, implementing and auditing the management system in
order to satisfy company, legal and social obligation.
 Assist the company to implement safe system of works associated with everyday
activity and specific job task and management system to enhance company‟s HSE
performance.
This HSE Management system intended to cover all the activities carried out by
company‟s employees, subcontractors, clients and third parties associated with the company
activities in company‟s premises in order to protect them against risks to safety or health. It
also minimizes the impact of its operation on the environment arising out of the activities.
The scope Occupational Health and Safety Management System is repair, construction,
refurbishment and conversion of ship and marine vessels, fabrication of offshore production
system, manufacture of pressure vessels and other heavy industrial process equipment and
treatment of sludge and slop.
52
3.6.1 Health, Safety and Environment Management System Frameworks
3.6.2 Company Health, Safety and Environmental Policy
Company Policy on Health, Safety and Environment provides an overall sense of

direction and sets the principle of action relating to HSE which are to be integrated into the
overall business process throughout the company. HSE policy also maintains specific drug
and alcohol policy that use of illegal drugs, misuse of medication and inappropriate use of
alcohol.
53
3.6.3 Hazard Identification, Risk Assessment and Risk Control (HIRARC)
MMHE requirements to have a total appreciation of all significant HSE hazard and
risk at yard. Identification of hazard and effects typically requires the application of tools and
technique such as Chemical Health Risk Assessment and Job Hazard Analysis (JHA) or Jab
Safety Analysis (JSA). Once the hazard or effect have been identified, it shall be considered
against on HSE risk screening criteria. In managing the HSE risk, MMHE shall adopt the
principle of ALARP for example minimize the risk to a risk that is As Low as Reasonably
Practicable (ALARP).
The risk from the hazard should be determined by estimating the potential of hazard
and the severity that harm will occur. Hazard evaluation and Risk Assessmentshall be done
before Risk Reduction Measure. After determining the risk control, it shall be given to
reducing the risk according to the following hierarchy:
i. Eliminate
ii. Substitution
iii. Isolation
iv. Engineering control
v. Administration control
vi. Personel Protection Equipment (PPE)
The hazard and effect register should be reviewed regularly. The period of review
depending on the nature of the hazard, magnitude of the risk, changes from normal operation
and the changes in raw material.
3.6.4 Environmental Aspect
Determine the environmental aspect that can have significant impact to the
environment. This process shall allow the company to identify, evaluate and control the
aspect that can causes impact to all the activities. The environmental aspect include the
routine and non – routine activities, potential emergency condition, introduction of new
operation procedure, changes of system and process including utilities before its
implementation and pre – commissioning of equipment, system and processes.
54
3.7 Resources, Roles, Responsibilities, Accountability and Authority
Company organization structure reflects the overall responsibility of HSE

management system. This company organization is headed by the Managing Director of
Chief Executive Officer (CEO) who shall have the ultimate responsibility for all Health,
Safety and Environment system. Therefore, MMHE create HSE committee for each business
unit (Offshore Business Unit and Marine Business unit) that responsible to monitored toward
achieving the objective of HSE management system.
3.7.1 Company Organization Structure
3.7.2 Company Offshore Business Organization Structure
55
3.7.3 Company Marine Business Organization Structure
3.7.4 HSE Management Committee
The head of Department HSE focal person will be the secretary for the committee.
The functions of this committee are as follows:
i. Implement, guide and monitor all the activities and arrange the associated with the
HSE Management System within the respective business unit.
ii. Review audit report within the respective business unit and provide necessary
directive and resources the correct deficiencies for HSE improvement.
iii. Set the target and meet the targets.
iv. Review the major incident and losses then follow – up recommended action.
v. Promote HSE through involvement in training and education programs
vi. Ensure compliance to all relevant industry requirement
vii. Develop HSE activity programed to involve all the members.
viii. Discuss and deliberate HSE procedures and works instructions.
ix. Review and endorse the HSE plan and assist in the development of Health, Safety and
Environment rules and safety system of works.
x. Communicate with the company Management Committee through the exchange of
minutes of meeting.
56
xi. Plan, organize and conduct workplace inspection minimum once a months.
xii. Conduct investigation for any case of complaint or incident that has occurred at the
work place.
3.7.5 Contractor Forum
Meeting with subcontractor chaired by the Head of Division, supply Chain

Management about any significant accident, incident and near miss including root causes,
action taken and lessons will be presented. A presentation about the current HSE performance
will be presented by Head of Division. The responsibilities are equal to the MMHE
employees and subcontractors personnel. Every employee are responsible for correcting
unsafe acts and condition, minimize impact such as pollutions to the environment and
notifying the supervisor if further preventive measures are necessary.
3.8 Health, Safety and Environmental Plan (HSE Plan)
Project HSE Plan is to ensure that the works was consistent with contractual
requirement. The HSE Plan contains provisions to ensure that the HSE Policy requirements
are fully implemented. Employers committed desire to continually improve the overall
Health, Safety and Environmental performance and to further enhance a proactive safety
culture and consciousness at all levels involved in this important project. HSE Plan will cover
all the employers personal involved in the heavy engineering works and activities that carried
out by the company for client project including material handling and waste generated from
such activities.
Employers must acknowledge that for Health, Safety and Environment to be managed
effectively, all employees must be aware of the standards demanded and be encouraged to
achieve those standards. Any person found to be disregarding the requirements of this plan
will be subject to disciplinary action which may result in their dismissal from the project.
57
3.8.1 Management Leadership and Commitment
Subcontractor management team and supervisors shall exhibit their leadership and
commitment to the HSE requirements by the clients. This Project HSE Plan shall provide a
visible and strong leadership and commitment to HSE, which is installed throughout the
organization based on:
i. Demonstration of leadership by nurturing a working culture of HSE consciousness.

ii. Participation of staff from all level in seeking their views and involvement in the
implementation of HSE programs.
iii. Motivation to improve staff HSE awareness level and performance based on positive
attitude and acceptance of their respective roles and responsibilities.
iv. Commitment of all levels in meeting the agenda of the Project HSE Plan.
v. Setting personal examples in day-to-day activities.
vi. Allocating the required resources to HSE matters.
vii. Promoting HSE matters in meeting agendas and publication.
viii. Communicating importance of HSE considerations in business decisions.
ix. Encouraging suggestions for improvement of HSE performance.
x. Rewarding HSE performance when objectives are met or exceeded.
To achieve a high standard for health, safety and environment, workers involvement
and commitment is paramount. Subcontractor management team will provide necessary
Personal Protective Equipment (PPE), Internal Training, Safety Briefing, Safety Incentives
and other programs that could enhance workers about safety awareness and will impose the
penalty system for the violation.
3.8.2 Health, Safety and Environmental Objectives
The objective of Health, Safety and Environment is to define the activities that will be
conducted to help prevent all accident, occupational disease, fire and preventing injury and
damage to people, plant, equipment and property.
58
3.8.3 Strategy for Achieving Objectives
Employers must have a several strategy to achieve the objective such as by

developing closer link with the DOSH, NIOSH and other similar bodies.
3.9 Organization, Responsibilities, Resources, Standard and Documentation
3.9.1 Project Manager
The Project Manager is responsible for the effective implementation of this HSE Plan
and has the ultimate responsibility for all HSE matters throughout the project. He shall
communicate the roles and responsibility outlined in the plan to the respective individuals
involved in the project. Participate in Project HSE Walkabout and HSE Meeting is one of his
responsibilities at least once a week and to give HSE Talk or Tool Box Talk at least once a
month. Ensure that the weekly HSE committee meeting need compulsory and participation
from all concerned are carried out effectively throughout the project. He also need to
participate in the Project Operations internal HSE Committee as management representative.
Besides that, ensure all management and staff cooperate in developing an effective safety
culture and site personnel are adequately trained to perform their work safely. Make sure all
the effective investigations are carried out for all accidents and incidents including near
misses in order to prevent re-occurrence and to reduce any unnecessary risk.
3.9.2 HSE Officer
HSE officer responsible to conduct daily HSE surveillance and inspection at

workplace on all unsafe acts, unsafe conditions and recommend corrective actions. He needs
to attend all critical activities and ensure the activities are carried out according to the Job
Hazard Analysis (JHA) and Permit to Work System (PTW). Inspection of daily tools and
equipment used at workplace must be done by HSE officer. This is to ensure its compliance
to HSE requirements. Act as focal point at site on all safety issues arising from workers and
ensure relevant signage is displayed on yard.
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3.9.3 HSE Safety Promoter
Ensure all the workers under his control participate and attend Daily Tool Box Talk is
one of the responsibilities of the HSE Safety Promoter. He needs to inform HSE Officer of
any new tools and equipment coming into the site and send for inspections prior starting
work. Other than that, he also need to be actively promote workers participate in identifying
hazard through submission of U-See and U-Act report. Liaise with HSE Officer and project
management team on progress of work and other necessary safety measures to be taken
before commencement of work. Randomly selected workers are sent for Drug andAlcohol
(DNA) Test as requested by MMHE HSE Department. Finally, establishing and trained
employee‟s site emergency response.
3.9.4 Construction Superintendents
Construction Superintendents need to participate actively in submission of U-See U-

Act respond and responding to safety. Attend and participate actively in HSE Meeting, Tool
Box Talk, HSE Walkabout and other HSE Activities in this HSE Plan. Besides, ensure the
effective implementation of program depicted in the HSE Plan and maintains communication
with MMHE & PCSB representatives in dealing with all Safety, Health and Environment
issues. Superintendents also responsible to participate in accident investigation and review of
all accidents and incidents in order to help identify the root causes and to make
recommendation to prevent re-occurrence.
3.9.5 Project Engineer
Attend HSE Meetings if required and participate actively in all HSE related matters
such as U-See U-Act program, HSE Talk, HSE Walkabout and others as per HSE Plan.
Project engineer also need to promote a positive attitude at all the times towards HSE
concerns. Participate in the investigation of all incidents and promote effective measures to
help prevent re-occurrence.
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3.9.6 Supervisor and Foreman
Supervisor and foreman are responsible to check and ensure that safe working
procedures and practices are followed by all the workers. Make sure the new employees are
well supervised and given full HSE awareness before start work. Prevent all unsafe acts and
unsafe conditions towards creating and maintaining a safe and healthy working environment.
Both of them also need to ensure that tools and equipment are inspected and provided with
valid tag or Equipment Pass and it safe to use. Participate in investigation into all accidents,
incidents and near misses then implement any necessary safety recommendations to prevent
re-occurrence. Participate actively in U-See U-Act reporting programs.
3.9.7 Workers
Carry out daily duties as required by their respective Supervisor and Foreman with
due regard to the Health, Safety and protection of the Environment at all times. Worker need
to ensure working tools and machines are properly inspected and maintained in safe
conditions before start the work. Report immediately to their respective Supervisor or Safety
Officer if any accident, incident and near miss occurring at fabrication site and workshops
throughout the project. All the worker need to participate actively in Daily Tool Box Talk and
Weekly HSE Talk. Besides that, wear all PPE provided and maintains all PPE in good
working conditions. Understand and adhere to the Permit-To-Work System at all the times.
Finally, follow and maintain well housekeeping standards and practices at the work site at all
times.
3.9.8 Health, Safety and Environmental Training by MMHE
To ensure that new employees are familiar with the safety, health, welfare,
environmental and medical arrangements, all the new worker are required to attend the
MMHE‟s Safety Orientation Course before start work. HSE training and indoctrination of the
employees play major role in accident prevention without adequate knowledge on the job.
Unsafe acts are unconsciously being committed if workers are unaware of the danger. HSE
training is considered mandatory and a condition for all work site employees, individuals
failing to participate in the required training program will not be allowed to start their work.
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3.9.9 Daily Tools Box Talk
Project manager and supervisor in charge will conduct this meeting daily with their
co-workers at workshop or at yard. The supervisor will give the briefing and talk on
prescribed HSE aspect relevant the day-to-day work program. The HSE personal will monitor
the presentation to ensure that talk is relevant and that the workforce understands the content.
The Tool Box Talk will be talking not more than 10 to 15 minutes. Attendance will be
recorded and submitted to HSE management team.
3.10 Planning and Procedure of identification Hazard and Reporting the Incident,
Accident and Investigation
3.10.1 Hazard Identification Risk Assessment and Risk Control (HIRARC)
To keep workplace safe and healthy, company need to ensure there is no hazard at the
workplace or they find the way to control the hazard which is employees could be exposed.
The employers should look for hazard in advance as a part of their risk management plant to
prevent the potential hazard. The following show the Process of Risk Management:
Classify Activities
(Works, Product, Services)
Identify Hazard
Assess the Risk
Risk Control
Review Risk Control
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3.10.2 Job Hazard Analysis (JHA)
Using the Job Hazard Analysis, company can ensure that the workers know the
potential hazard in workplace and adequate HSE training and precaution needed for the high
risk works activities are provided. The company will conduct the JHA on all the activities
that are under the high risk categories. The supervisor of the works is responsible to lead the
read our session with the workforce prior to execution of work. Formal inspection must be
carried out to ensure all measures as listed in the JHA form.
3.10.3 Control the Risk by Applied Personal Protective Equipment (PPE) At Yard
The company will ensure that sufficient numbers of PPE are making available to all
workers. It is the policy of the company to ensure where any foreseeable risk of injury can be
reasonably prevented or reduced by the use of suitable PPE due to the job task. It is
mandatory for personnel to wear the following the minimum PPE when on site for example
Red and Green Zone Area. When at the Red zone area, all the worker need to used full PPE
such as coverall, safety shoes, safety helmet and safety glasses.
Eye protection must be used especially when doing the works that have high risk to
the eyes for example cutting and welding, grinder, used of hazardous chemical, use of high
pressure testing or any operation where the risk to eyes is foreseeable and recommended by
the product supplier.
3.10.4 Procedure of reporting the Incident, Accident and Investigation
All accident, incident and dangerous occurrences will be reported using the Incident
Report Form and all completed forms forwarded to HSE Department. The accident must be
reported to the Project Manager and the Main Contractor site representative immediately. It is
essential that Near Misses and Incidents be reported at work sites so that actions can be taken
immediately by stop the work, remove or clear the unsafe acts or unsafe conditions.
Investigation shall be initiated and lesson learned after the investigation and root because
analysis applied and reviewed with all workers. When reporting any incident, accident or
dangerous occurrence, it is vital to give as much detail as known about the event. It is
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important to include any information on the current status and what steps have been taken to
prevent any similar reoccurrences.
The Project Manager shall ensure that all incidents, accidents and dangerous
occurrence occurring in the project are correctly reported. It must be remembered that “You
Cannot Control What You Cannot See” and therefore the reporting of all incidents, accidents
or dangerous occurrence is critical towards the management of safety and prevention of
accidents. A copy of incident Formal report shall be submitted to the client within 24 hours of
occurrence and Complete Report will be seven (7) days.
3.10.5 Health, Safety and Environmental Communication
Function of HSE Communication is to ensure the effective communication of safety

and health information various systems will be installed and maintained at yard.Each site
office shall produce and maintain a HSE Notice Board. The board shall display any recently
introduced site notices, safety bulletin and any other items pertaining to HSE matter.Safety
briefings will be regularly delivered by HSE Supervisor and these briefings‟ will be delivered
to focus on any current operations and any problem areas. Safety bulletins or information will
be produced as required, giving the reader details of any recent accidents or changed work
practices introduced following any accident.Site HSE Committee Meeting will also be used
for collecting and disseminating health and safety information.
Figure 7 the HSE Statistic Board
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3.11 Critical Activities
The following activity is the critical activities that have in yard:

i. Entry to Confined Space.
ii. Heavy Lifting (More than 15 Tons)
iii. Working in High Risk Area
iv. Working with Energized System
v. Hydro Testing
The most critical activities that faced in my yard are the heavy lifting. Lifting operation
can be categorized into 3 types which are normal, controlled and critical. The normal lift
which is well within the operating range and capacity of the crane, forklift or any other
mechanical means being used and which poses little risk or danger to personnel or
equipment. Controlled lifts are usually less than 15tons by using single crane. The critical lift
are the special nature where the load is more than 15 tons or approaching the crane maximum
capacity or more crane are required to execute the lift.
Before lifting operation is executed, Safety Officer needs to fill the HIRARC form for
identify the hazard of the lifting process. The following table shows the Hazard
Identification, Risk Assessment and Risk Control for the lifting operation:
Hazard Identification Risk Assessment Risk Control
No Work Hazard Cause of Existing risk Risk Recommended Control

Activity effect control Measures
1 Preparation Personnel Miss- Informal work Low JHA/SOP briefing to all

of facilities unaware communic brief. parties involved.
prior to of job ation
Use radio Lift plan shall be prepared
lifting of the requireme between
communicatio and communicate to all
materials/ nts/ personnel
n and hand parties involved.
equipment. procedure
signal to
communicate
with rigger
and crane
operator.
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Incompete Miss- Certified Low Lift plan shall be prepared
nt operating operator to and communicate to all
operator of crane operate the parties involved.
crane.
Use under Falling All lifting Mod Ensure approved calculation

rated materials/ equipment erate was done to guarantee crane
lifting equipment and crane are is capable to lift the respective
equipment rated for load.
. heaviest
component
(SWL).
Uncertifie Falling Carry out MPI Mod To provide inspection

d, invalid materials/ on lifting erate checklist for crane and
and/or equipment shackles/ pad assorted equipment for
. eyes. lifting prior to conduct visual
uninspecte
inspection.
d lifting Part/break Conduct
equipment of lifting visual Minimise personnel in works
and/or equipment inspection to area to essential personnel
crane. . any damage only.
on the lifting
equipment Personnel only permitted
with valid within works area with
colour coding. permission of Crane
Supervisor/Operator.
Ensure crane
in a safe Working area to be delineated
working with clear signage clearly
stating that access is restricted
condition with
to authorised personnel only.
valid PMA/
equipment
pass. If required provide traffic
control especially working
within an active site traffic
zone.
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Clear crane Observe the load and the load
2 Positioning Obstructio Collision path and Low placement area and keep well
of crane/s at n cause lifting area clear.
the lifting damage to from any
area. property, obstruction.
crane etc.
Barricade
lifting area
and provide
signage
“Lifting in
Progress”.
Crane to Clear area of trip and slip

Uneven tilt. Level uneven Low hazard where practical
ground ground for otherwise personnel must
level. Slip, trip crane path and mind your step.
and fall. position.
Ensure outrigger must be
positioned on flat surface, if
required using timber or
suitable material for pads to
evenly distribute the load to
the ground.
Crane to be located within the

radius for the load being
lifted.
Swaying Qualified Check the lift accessories

3 Secure all of hanging Human rigger using Low adequately secured with no
lifting load. injury e.g. correct loose object.
accessories Loose finger method to
and/or object pinch/cau attach lifting Inspect all attachment points
resting/ accessories to and check slings for faults
equipment. ght.
the load. ascertaining they are fit for
falling
each lift.
over. Wear proper
PPE e.g.
rigging glove.
Tagline used
to guide into
position.
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Lift up Check for lifting centre
4 Pre-lift Jerking Sling / materials / Low gravity prior to start pre-lift.
tension sling motion lifting equipment Avoid rush action.
to ensure tackle to slowly and
balance part equally
position.
loading.
Tagline used
to stable the
load.
Loose Falling Qualified Low Check lift accessories /

item object rigger using equipment adequately
Human correct secured.
injury method to
attach lifting
accessories to
the load.
Provide Provide adequate lifting sign

5 Lift up Unauthori Human signage Mod before lifting so people
materials/ zed injury “Lifting in erate around more aware.
equipment on personnel Progress”.
required around Provide soft Ensure all personnel not
barricade. involved with lifting activity
location. lifting
to be well cleared from lifting
area. area.
Barricade lifting area as

suitable for the particular
distance.
Communi Check walkie- It is advisable to have extra

Radio cation talkie well- Low radio communication in case
communic breakdow functioning any failure happens.
ation n. before start
(walkie- the work. Designate one dedicated
crane signal men with personnel
talkie)
operator Use hand identification (e.g. vest) to be
failure
confusion signal to in-charged in liaising with
due to communicate crane operator.
many with rigger
instruction and crane
s operator.
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Bad Human - Mod Assess wet and windy
weather injury erate weather conditions and
e.g. strong Property proceed cautiously or cease
wind, damage work accordingly.
lightning
Immediately stop the
operation in case of bad
weather e.g. sign of lightning,
heavy rain, strong wind > 10
knot.
Material Area of loading bay to be

6 Place down Area not to fall - Low levelled or placed with a
the materials/ even/level down and appropriate log of wooden to
equipment. led hit other covered.
nearest
personnel Tubular or pipe lay with a
Material wooden wedges/stopper
damage placed.
To arrange the largest
material at bottom.
Falling Qualified
7 Dismantle of Loose object rigger using Low Properly dismantling all the
lifting item Human correct lifting accessories / equipment
accessories injury method to from the load / crane and
and/or dismantling placed it on proper bucket /
lifting
equipment area.
accessories
from from the load.
materials
equipment.
Sharp Hand Wear proper Low Be more aware during contact
edges injury PPE e.g. with any surface and avoid
rigging glove. rush action while dismantling
lifting accessories /
equipment.
Improper Affecting Moderate Mod Ensure load lifted is under

manual to erate personnel ability. Do not
handling ergonomic forcing self to lift the load.
s matter
Personnel shall be trained on
right method of manual
handling.
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Good positioning in doing
manual handling.
Personnel
8 Lifting Untidy to slit, trip Tidy up and Low -
completed. activity and fall do
area Material housekeeping
to fall
down
3.12 U – See U – Act Trending by First Oil Engineering Sdn Bhd (2014) and Actual
Builder Sdn Bhd (2015)
U-See U-Act is the hazard identification and correction report that must be fill in by
the employees at yard. If the employees work in unsafe condition or unsafe act, employees
must report to the HSE officer by using the U-See U-Act card. This is to ensure that the risk
and hazard can be control to make sure the employees work in safety workplace. HSE Officer
will record the U-See U-Act card to shows that the employees participate actively in U-See
U-Act reporting program. Every week during safety general briefing on Thursday, MMHE
Safety Department will give KFC voucher to the workers that successful control the high risk
and hazard at the workplace. The following graft shows the U-See U-Act trending record by
First Oil Engineering Sdn Bhd.
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3.12.1 UCUA Trending October 2014
CUT OFF DATE : 30 OCTOBER 2014

UCUA Criteria Previous This Month Cumulative
PPE Non Compliance 62 20 82
Fire 2 1 3
Housekeeping 82 35 117
Electrical Hazard 2 2 4
Safety Equipment 4 0 4
Tools & Equipment 14 3 17
Scaffolding 22 2 24
Rigging/Crane Operation 5 0 5
Work Procedure 18 9 27
Ignoring safety Signboard 19 5 24
Behavior 49 2 51
Hazard Tripping, Slipping 37 7 44
Hazard Falling 14 15 29
Misconduct 10 0 10
Inadequate Illumination 16 3 19
Environment/Hygiene 2 0 2
Others 42 21 63
UNSAFE ACT 175 54 229
UNSAFE CONDITION 244 85 329
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3.12.2 UCUA Trending November 2014
CUT OFF DATE : 27 NOVEMBER 2014

Fire 3 0 3
Scaffolding 24 0 24
Work Procedure Violation 27 10 37
Behavior 51 0 51
Health Hazard/ Noise 0 2 2
Misconduct 10 2 12
Improper Material Handling 0 1 1
Inadequate Supervision 0 1 1
Unstable Condition 0 2 2
Others 63 16 79
72
3.12.3 UCUA Trending December 2014
CUT OFF DATE : 25 DECEMBER 2014

Fire 3 0 3
Scaffolding 24 3 27
Work Procedure Violation 37 8 45
Behavior 51 5 56
Health Hazard/ Noise 2 0 2
Misconduct 12 0 12
Improper Material Handling 1 0 1
Inadequate Supervision 1 0 1
Unstable Condition 2 4 6
Others 79 12 91
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The following graft shows the U-See U-Act trending record by Actual Builder Sdn
Bhd.
3.12.4 UCUA Trending January 2015
CATEGORIES NO.
PPE Non-compliance 9
Incorrect Work Procedure 7
Housekeeping 7
Electrical Hazard 2
Falling Hazard 16
Tripping Hazard 1
Tools and Equipment‟s 6
Behavior 9
Inadequate Supervision 1
Vehicle 1
74
3.12.5 UCUA Trending February 2015
CATEGORIES NO.
Housekeeping 8
Electrical Hazard 0
Falling Hazard 6
Tripping Hazard 1
Behavior 14
Vehicle 1
75
3.12.6 UCUA Trending March 2015
CATEGORIES NO.
Housekeeping 15
Electrical Hazard 5
Falling Hazard 9
Tripping Hazard 4
Behavior 10
Vehicle 3
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3.13 Conclusion
In conclusion, implementation of Health, Safety and Environmental management in

organization, the organization can control the complex and high risk of hazard in oil and gas
industry. Organizations also can create environment of a zero workplace hazards and the
possibility of any accident or injury that may occur. There are several benefits if Health,
Safety and Environmental management is carried out within the organization. This includes
improving thinking and awareness of employers, increase compliance with law and act, to
improve the management policies, reduce accidents and liability, creating awareness of
employees and create more efficient programs to improve the image of the organization to the
community. Health, Safety and Environment (HSE) also involves protecting the health and
welfare of people and the environment from adverse impacts due to the human and industrial
activities.
All the workers must know the Standard Procedure of the Heath, Safety and
Environmental to make sure they can control the risk and hazard at the yard. HSE
Management Committee is responsible to monitor the HSE performance and ensure that
employees can works safely and zero hazard workplace. Employees are important assets of
each organization. Thus, the collaboration between employers, employees, governments and
non-governmental organizations are needed to ensure that all the worker workplace are safe
and zero hazard. Occupational safety and health management strategies is important not only
to ensure the safety and health of workers cared for and protected but also contributes to the
enhancement of productivity, product quality, work motivation, job satisfaction and overall
improve the quality of life for the individual and society.
77
3SBEC
WORK STUDY
(METHOD STATEMENT)
SEMESTER 2014/2015 - 02


IC. NO.: 910621 – 01 – 5890
78
9 CHAPTER 4
10
11 METHOD STATEMENT OF THE PROJECT WORKS
4.0 Project Background
PETRONAS Carigali Sdn. Bhd. has undertaken the development of the NC3 gas field
located in SK316 Block, approximately 200km North of Bintulu, Sarawak. The water depth
in NC3 field is around 104m-107m. The development of NC3 field is envisaged to be in
complex-type configuration. NC3 will be made the hub for the SK316 gas development
which includes future NC8 Wellhead platform. NC3 Complex comprise of a Central
Processing Platform (CPP), a bridge-linked Wellhead Platform (WHP) and a future bridge-
linked Compressor Platform.
The processed gas will be evacuated to shore via the existing trunk line through E11R-
C or dedicated newly-to-be-installed trunk line to shore. The dehydrated condensate will be
spiked into the same trunk line. The processed gas and dehydrated condensate will be
separated again onshore prior to be fed into a new LNG Plant's Train 9. The gross volume of
the processed gas is 660MMSCFD including 20% CO2. The platform facilities inclusive of
piping, mechanical, electrical, instrument system, flow lines and interfiled pipeline shall be
designed for 25 years. Design life for structural and Trunk line shall be designed for 30 years.
NC3 CPP will be a manned platform with Living Quarters and bridge linked to NC3 WHP
and also future NC3 Compression platform.
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4.1 Project Information
COMPANY : PETRONAS CARIGALI SDN. BHD. (PCSB)

[The party who initiates the project and is ultimately
responsible for the funding of the Project]
CONTRACTOR : TECHNIP-MMHE Joint Venture (TMJV)
[The party who carries out EPCIC for the Project]
KEY CONTRACT : Technip and Malaysia Marine & Heavy Engineering (EPCIC)
VENDOR : Party who supplies and manufactures equipment / material or

Services specified and ordered by contractor or sub-contractor
SUBCONTRACTOR : ACTUAL BUILDER SDN. BHD.

[Party who providing subcontracting packages or services
Specified and ordered by contractor]
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4.2 Method Statement Preparation
Method Statement is the statement of work that described the how the construction
activities carried out by listing all the resources requires. Method statements used have a
large impact on the work programmes because the different method statement will cause
different in the planning use of the resources. Actual Builder Sdn Bhd will prepare the
methods statement of architectural works before the construction activities was carried out.
This method statement is a guideline for the architectural items to be installed in the
Module Control Room and Living Quarters of this project. The specific procedure shall be
prepared by the Construction Engineer or Superintendent for the every job with all specific
details. All the architectural features shall be in accordance with client latest specification.
For the interior steel surface of the building area and the under deck of the module, where
covered by insulation or wall panel shall be coated according to the specification prior to the
installing of any architectural feature application.
4.3 Installation Sequence
4.3.1 Installation Stud Pin

This activity will be followed by spot – blasting and priming of all burned spots in the
Living Quarters areas before the next architectural feature is installed. This works
responsibilities by blasting and painting supervisor.
4.3.2 Installation Insulation

Before this insulation is installed on the wall and ceiling, it is very important that all
support need to be finalized in these areas.
4.3.3 Installation Wall Panel

At this point close coordination is required among all disciplines to ensure that all
penetration, especially for E & I work, through the wall panels are identified and done before
all the panels are closed up. All the equipment can now be installed after all large equipment,
which could not be brought the normal door opening, have been placed in the rooms.
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4.3.4 Installation Door
Door frames should only be installed after all equipment, which is could not be
brought in through the normal door opening, have been placed in the rooms.
4.3.5 Installation Rubber Matting and Wall Skirting

After installation Door, install rubber matting by construction supervisor. Next, to
avoid damages to the tiles installation, protective plywood shall be placed over the completed
tile after completion of the skirting works.
4.3.6 Installation Furniture and Electrical Appliances.

Finally, for the finishing tiles, install the furniture as per request by client and
electrical appliances.
4.4 Architectural Work Method Statement
4.4.1 Method Statement for Installation Pin and Insulation.
Equipment - Welding machine

Manpower - Fitter and Helper
Procedure:
1. All insulation pin shall be install by welding. Primed surfaces which have damages
by the welding shall be spot – blasted and touch up using the approved painting
systems.
2. All stud pin shall be installed at approximately 300mm apart for ceiling position and
approximately 600mm apart for wall position.
3. All insulation shall be neatly trimmed to fit properly around angle bar, junction
boxes, conduit and etc. so that minimum of “holiday” exits in the insulation blanket.
4. Stud pin used for securing the insulation shall be bent or imbedded into the face of
insulation after the washer have been installed and checked prior to the wall panels
installation.
82
4.4.2 Method Statement for Installation Wall Panel
Equipment - Panel lifter

Procedure:
1. All electrical conduit, switches, cables and etc shall be installed and checked prior to
the wall panels installation.
2. The wall panels bottom profile shall be fixed correctly to the steel deck by tack
welding according to the dimension of the rooms in relation to steel bulkheads,
electrical conduit, pipe line and etc.
3. The top profiles shall be either install prior to the panel installation or after the panel
have been installed. It will depend on where it is located. In the area where there is
access to install the wall panel, the top profiles shall be installed first vertically above
the bottom profiles.
4. The wall panels shall be installed either by sliding from one or lifting the panels one
by one depending on the site situation.
5. The wall panel shall be fixed in position with revert to the top and bottom profiles for
the approximately one out of every five panels.
6. After the wall panels have been completely installed the PVC have been completely
installed the PVC skirting shall be installed around the bottom perimeter of the wall
panel.
4.4.3 Method Statement for Flooring
Material - Discrete Latex(glue) and cement

Procedure:
1. The existing floor level are checked to determine the thickness of screeding required
and the direction and extend of the floor gradient if so required.
2. The specification for the cement screed shall be from cement and sand (1:3) ratio.
83
3. The floor rendering will be done with construction joint if the relatively area is large
to prevent slab crack
4. The thickness of screeding on the slab should be checked to account for the floor
drops and gradients.
5. The cement is sprinkled on the screed surfaced and trowelled to achieve the smooth
rendered finish.
6. The floor rendered area is barricaded to prevent entry and damage to the area until it
has achieved the required hardness.
7. Area for the rubber matting shall be free from dirt‟s and grease within acceptable
flatness.
8. Un-flat area shall be leveled by grouting prior to the titles installation.
4.4.4 Method Statement for Installation Door and Ironmongeries
Equipment - Welding Machine and driller

Procedure:
1. Door frame installed at location shown in the architectural drawing by the door frame
installer.
2. The door frame vertical and horizontal are checked and confirm correct by project
engineer and superintendent.
3. After the alignment is confirm, the door frame shall be fully seal welded and care will
be taken on the welding sequence to avoid distortion of the door frame.
4. Door shall be installed with complete accessories as stated in the drawing and
approved by client.
84
4.5 Summary of Architectural Work Method Statement
No Item Method Labour Equipment Picture

1 Installation Pin All insulation pin shall be install by welding. 2 manpower Welding
and Insulation Machine
Primed surfaces which have damages by the
- Fitter
welding shall be spot – blasted and touch up - Helper
- F
using the approved painting systems.
i
t
t
All stud pin shall be installed at approximately
e
300mm apart for ceiling position and
approximately 600mm apart for wall position.
All insulation shall be neatly trimmed to fit

properly around angle bar, junction boxes,
conduit and etc. so that minimum of “holiday”
exits in the insulation blanket.
Stud pin used for securing the insulation shall

be bent or imbedded into the face of insulation
after the washer have been installed and
checked prior to the wall panels installation.
85
No Item Method Labour Equipment Duration
2 Installation All electrical conduit, switches, cables and etc 2 manpower Panel lifted
Wall Panels
shall be installed and checked prior to the wall
- Fitter
panels installation. - Helper
The wall panels bottom profile shall be fixed

correctly to the steel deck by tack welding
according to the dimension of the rooms in
relation to steel bulkheads, electrical conduit,
pipe line and etc.
The top profiles shall be either install prior to

the panel installation or after the panel have
been installed. It will depend on where it is
located. In the area where there is access to
install the wall panel, the top profiles shall be
installed first vertically above the bottom
profiles.
86
Installation The wall panels shall be installed either by 2 manpower Panel lifted
Wall Panels
sliding from one or lifting the panels one by
- Fitter
one depending on the site situation. - Helper
The wall panel shall be fixed in position with

revert to the top and bottom profiles for the
approximately one out of every five panels.
After the wall panels have been completely

installed the PVC have been completely
installed the PVC skirting shall be installed
around the bottom perimeter of the wall panel.
3 Installation The existing floor level are checked to 2 manpower

Flooring
determine the thickness of screeding required
- Fitter
and the direction and extend of the floor - Helper
gradient if so required.
The specification for the cement screed shall

be from cement and sand (1:3) ratio.
87
Installation The floor rendering will be done with 2 manpower
Flooring
construction joint if the relatively area is large
- Fitter
to prevent slab crack. - Helper
The thickness of screeding on the slab should

be checked to account for the floor drops and
gradients.
The cement is sprinkled on the screed surfaced

and trowelled to achieve the smooth rendered
finish. The floor rendered area is barricaded to
prevent entry and damage to the area until it
has achieved the required hardness.
Area for the rubber matting shall be free from

dirt‟s and grease within acceptable flatness.
Un-flat area shall be leveled by grouting prior
to the titles installation.
88
4 Installation Door frame installed at location shown in the 2 manpower Welding
Door and Machine
architectural drawing by the door frame
Ironmongeries - Fitter and driller
installer. - Helper
The door frame vertical and horizontal are

checked and confirm correct by project
engineer and superintendent.
After the alignment is confirm, the door frame

shall be fully seal welded and care will be
taken on the welding sequence to avoid
distortion of the door frame.
Door shall be installed with complete

accessories as stated in the drawings and
approved by client.
89
4.6 Summary Computer Numerically Controlled (CNC) Pipes Profiling
No Item Method Picture

1 General Specification
for CNC Profiling
Criteria Specification Remarks
Machine.
Diameter Min : 273mm
Max : 1200mm
Thickness 22mm (Max)
Length 2m(min) – 6m (max)
Cutting
allowance
<10mm thk 10mm
>10mm thk 20mm
2 Fast Frame
a) FastFrame is useful when cutting the multiple pipes.
- Estract center lines from 2D shopdrawing
- Define members center line in “Layer”form
90
FastFRAME
b) Assign Joint No:
- Type command “Frame”
- Select “Output Data”Tab
- Click output button to save in .ffd format
- Joint no will be assigned automatically
c) Check the Joint No. in Autocad

- Verify the Joint No.
- Save the files.
91
d) Open FastFRAME software

- Open FastFRAME program
- Open file :File Open mmudmat.ffd
e) Display 3D Pipe View

- Click to display profiles development
- Click to output CNC code.
f) Handover CNC codes to CNC operator

- Maximum size of files is limited to 2GB.
92
1 FastPIPE
FastPIPE will be used for cutting the profiling and adding
penetration to heavy pipe / node.
a) Identify the Node and Bracing (Branch) type.
- Open FastPIPE program
- Select specific cutting requires
b) Key in data
- Set branched connection „set-in or set-on‟ ok
- Select „near end‟ or „far end‟ ok
- Key in pipe properties.
- Compulsory at yellow box
93
FastPIPE
c) Output CNC code
- Click to output CNC code

- Handover CNC codes to CNC operator
- Maximum size of files is limited to 2GB.
The profiling machine cut the pipes based on the code

given.
94
Figure 8 shows the lifting process for toilet module :
All the safety officer and rigger Toilet module has arrived at LQ
waiting for the toilet module. level 1 using crawler crane.
Push the toilet module and placed it in the

right place.
Done lift the toilet module at LQ level 1
95
Figure 9 shows the process of MAPRESS Copper:
Ensure that the diameter of the press fitting matches the diameter of the pressing jaw or
pressing collar: Ø 12 - 35mm use pressing jaw, Ø 42 - 108mm use pressing collar and
adaptor. Check correct insertion depth has been made before removed the collar.
96
Figure 10 shows the Hydrostatic Pressure Test process:
Ensure the Ball Valve was clean Fill in water into the Ball Valve
from inorganic materials.
Close the Ball valve while keeping

the vent open.
Start pumps the pressure from 0 bar

Ensure the pressure gauge in 0 bar
to 8 bar
before start pump.
Hold 3 minutes when pressure reach 8

bars, continue until 20 bar. If no leakage,
the test was acceptance.
97
Figure 11 shows the Vinyl sheet installation process:
98
Figure 12 shows the process of Underlayment Testing:
Load was release at 1meter

height
Mark the maximum point at

the test piece.
Load was release in 2meter

height
Hack the test piece to ensure

underlayment can receive high
Test Acceptance / successful.
impact.
99
Figure 13 shows the process of Underlayment Fire Testing:
Picture below shows the Wellhead Platform (WHP Module) sail away:
Before WHP sail away, all the workers need to check WHP module and ensure there are in a
good condition at the barge. All the equipment have sealed and cover by canvas to make sure
the equipment do not move at the sea during sail away.
100
Figure 14 shows the installation Wellhead Platform (WHP Module) at offshore (Bintulu,
Sarawak):
101
CONCLUSION
From my opinion, the student industry internship training is an excellent program

organized by UNIVERSITI TEKNOLOGI MALAYSIA (UTM) in order to expose the
students to the real life working situation and as a starting point for the students to horned up
their soften skills as well as their technical skills. All these things are being planned and done
by UTM in order to produce more rounded students as stated in the Vision of UTM.
By having a 24 week of industrial training internship, it can be concluding that it is a

wise decision made by UTM management unit. In these 24 weeks of industrial internship
training, the author was able to understand more on how much the theory knowledge that had
learned in university can be apply in the everyday life. Furthermore, by having the industrial
training to be carry out during the 3rd year of study for bachelor degree, it is the suited time
for the author as this time the author is much more mature and are more ready to face the
society and working life. This will give opportunity to the students to think abroad and
students might seek collaboration or guidance not only with their lecturers, but also with the
engineers and construction managers that they have known while working during the
industrial training to help out on their projects.
Furthermore, in these 24 weeks of industrial training programme, the author is able to

achieve the objectives set by the author. The author is able to perform well by applying all the
theoretical knowledge that learned in the University on the industry working life. Next, the
author can also acquire personal communication skills, managing skills and planning skill in
the industry. By working along with different types of people and different kind of people,
the author is able to communicate in different language and deal with all sorts of people in
the working site.
The next achievement is that the author is able to practice ethical and professionals
working culture in the working site as Actual Builder Site Team full encourage their workers
to apply professionalism in their work. Furthermore, the author is able to perform or
implement health, safety, security and environment (HSSE) precautions in the working site.
This is because applying HSSE in the site is the main thing that keeps the author away from
dangerous hazard and risk. Lastly, the objective that the author achieved is that he is able to
deal with uprising conflict and issues on the site. In the site, the author has the opportunity to
102
discuss and raise out opinion on the issue that arise, this fully helps to build up confidence in
the author and the author is able to gain more knowledge.
As for recommendations, UTM should maintain the long period of industrial training
as these periods are good for the students to adapt and familiarize with the working
industries. As mentioned before, it will also help the student to understand and appreciate the
understandings and theories that is being applied or learned throughout the training so that
they are able to relate with their studies.
In conclusion, I am very pleased with the given opportunity to undergo the industrial
training at Actual Builder Sdn Bhd as I had gained priceless of experiences and knowledge
throughout the training. I hope that this program will continue its legacy with its long period
of training in the future and hope that UTM will be able to produce more well-rounded
graduates in pursuing the career of a construction manager.
103
12 REFERENCE
1. MMHE-HSEM_HSE Management System Manual_Rev2_20Jan2014
2. MMHE-QDD-OBU-02_Architectural Procedure_Rev0_01Sept2012
3. MMHE-QGP-SCM-01_Procurement Process (Material-Services)_Rev4_21Jan2014
4. MMHE-QGP-SCM-02_Project Procurement Management-Rev1_01Mar2013
5. MMHE-QGP-SCM-03_Material Management and Logistics_Rev1_15May2013
6. MMHE-QGP-SCM-10_Strategic Sourcing_Rev0_15Oct2012
7. ABSB SK 316 HSE PELAN
8. ABSB HIRARC 2 lifting operation
9. HSE-0001 New Worker Management Guideline Rev A
10. SK316-JHA-1004-INSULATION
11. SK316-JHA-1007-FLOORING
12. SK316-JHA-1009 Doors and Windows
13. SK316-JHA-1010 Furniture
104
3SBEC
13 APPENDIX
SEMESTER 2014/2015 - 02


IC. NO.: 910621 – 01 – 5890
105
5.0 CPP Living Quarters Level 1
106
107
108
109
5.4 CPP Living Quarters Roof
110
5.5 CPP Living Quarters Helideck
111
5.6 HIRARC Form
112
113
114
115
116
5.7 Job Hazard Analysis Worksheet
117

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FACULTY OF BUILT ENVIRONMENT

DEPARTMENT OF QUANTITY SURVEYING

INDUSTRIAL TRAINING REPORT

CURRENT ISSUES: MUTUAL UNDERSTANDING IN MATERIAL

ACTUAL BUILDER SDN BHD (731322-T)

SUBMISSION DATE: WEEKS 20 (25TH MAY 2015)

NAME: NUR MAIZATUL ADHA BINTI MU’ALIS

1.0 Company Background and Philosophy ................................................................................. 11

1.1 Company Corporate Information .......................................................................................... 12

1.2 Mission and Vision ............................................................................................................... 13

1.3 Company Policy .................................................................................................................... 13

1.4 Organization Chart ................................................................................................................ 14

1.5 Product .................................................................................................................................. 14

1.5.1 Architectural (Engineering and Marine Repair) ........................................................... 15

1.5.3 Steel Fabrication ........................................................................................................... 16

1.5.4 Mechanical Installation ................................................................................................. 16

1.5.5 Structural (Engineering) ................................................................................................ 16

1.5.6 Manpower Supply ......................................................................................................... 17

1.7 License and Certificate.......................................................................................................... 21

1.7.1 Asbestos Removal Training Certificate ........................................................................ 21

1.7.2 PETRONAS CARI GALI License................................................................................ 21

1.7.3 Registration of MMHE Contractor and License ........................................................... 22

1.7.4 Registration with CIDB ................................................................................................ 22

1.7.5 Certificate of Completion.............................................................................................. 23

1.7.6 Certificate of Appreciation............................................................................................ 25

4 CURRENT ISSUES IN OIL AND GAS INDUSTRY ................................................................. 27

5 (MUTUAL UNDERSTANDING IN MATERIAL MANAGEMENT SYSTEM IN YARD) ..... 27

2.1 Problem Statement ................................................................................................................ 27

2.2 Research Question ................................................................................................................ 28

2.3 Research Objective ............................................................................................................... 28

2.4 Significant Of Study ............................................................................................................. 28

2.5 Research Methodology ......................................................................................................... 28

2.6 Supply - Chain Management................................................................................................. 29

2.7 Strategic Sourcing by MMHE............................................................................................... 29

2.8 Process of Strategic Sourcing and Responsibility................................................................. 32

2.8.1 Identify Sourcing Category ........................................................................................... 32

2.8.2 Contracting Strategy ..................................................................................................... 32

2.8.3 Prepare Tender Document and Receive Tender............................................................ 33

2.8.4 Commercial Bid Opening and Evaluation .................................................................... 33

2.8.5 Perform Multi – Party Negotiation ............................................................................... 33

2.8.6 Prepare Award Recommendation ................................................................................. 33

2.8.7 Prepare and Issue Letter Award .................................................................................... 34

2.8.8 Contract Issuance and Approval Authority ................................................................... 34

2.9 Project Procurement Management ........................................................................................ 34

2.9.2 Prepare Procurement Plan ............................................................................................. 37

2.9.3 Receive Request ............................................................................................................ 37

2.9.4 Sourcing and Issuance of Purchase Order ..................................................................... 38

2.9.5 Monitor and Update Progress ....................................................................................... 38

2.9.6 Interfacing with Client / Project Management Team (PMT) ........................................ 38

2.9.7 Manage Vendor Documentation ................................................................................... 38

2.9.8 Post Award Activity ...................................................................................................... 38

2.9.9 Project Close out Report ............................................................................................... 39

2.10 Procurement Process for Material and Services.................................................................... 39

2.10.2 Issue Pre-Qualification.................................................................................................. 41

2.10.3 Prepare Approved Source List ...................................................................................... 41

2.10.4 Prepare Tender Plan and Issue Tender Document ........................................................ 41

2.10.5 Commercial Bid Opening and Evaluation .................................................................... 41

2.10.6 Perform Negotiation...................................................................................................... 42

2.10.7 Award Recommendation............................................................................................... 42

2.10.8 Issue Purchase Order ..................................................................................................... 42

2.10.9 Repeat Order ................................................................................................................. 42

2.11 Material Management and Logistic ...................................................................................... 43

2.11.1 Receive Material Delivery Information ........................................................................ 44

2.11.2 Prepare Storage Area .................................................................................................... 44