AUDIT AND INSPECTION Procedure : IKL-

PT. ISTANA KARANG LAUT HSE-0104

HSE PROCEDURE Date : 09-
Oct-06
Revision : 0
Page : 5 of
6

CONTENTS

1.0. PURPOSE.....................................................................................................

2.0. SCOPE..........................................................................................................

3.0. REFERENCES..............................................................................................

4.0. DEFINITION..................................................................................................

5.0. PROCEDURE................................................................................................

5.1 Audit and Inspections

5.2 Audits
5.3 Inspections
5.4 Informal Inspection
5.5 HSE Performance Report
5.6 Audit Result

6.0. APPENDIX..................................................................................................6

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 AUDIT AND INSPECTION Procedure : IKL-
PT. ISTANA KARANG LAUT HSE-0104
HSE PROCEDURE Date : 09-
Oct-06
Revision : 0
Page : 5 of
6
1.0 PURPOSE
The purpose of this procedure is to ensure that all IKL include all subcontractor are
implement all IKL OH&S requirements and verified the effectiveness of the
Occupational Health and Safety (OH&S) system implementation.
Regular audit shall be done twice a year, spot audit shall be conducted randomly to
each department / area per each project.
The purpose of spot audit is to observe, check and monitor the implementation of
OH&S system manual of procedure.

2.0 SCOPE
The procedure to conduct audit and inspection applies to all areas of work under the
direct or indirect control and area of influence of the Istana Karang Laut.

3.0 REFERENCES
 IKL OH&S Manual Section 4.5.4
 OHSAS 18000 clause 4.5.4
 ISO 19011 : Guidelines on quality and environmental management system
auditing

4.0 DEFINITION
Auditor : One or more persons under take audit, they should be independent of the part
of the organization or activity that is to be audited. Auditor should have basic
understanding about OH&S management system.

5.0 PROCEDURE
Audit will be performed by the auditor, against the documents of the OH&S assurance
system and / or the process of :
 OH&S assurance manual include HSE policy
 OH&S procedures and objective target and programme
 OH&S legal and other OH&S requirement
 OH&S performance of fabricator / sub-contractor / vendor

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 AUDIT AND INSPECTION Procedure : IKL-
PT. ISTANA KARANG LAUT HSE-0104
HSE PROCEDURE Date : 09-
Oct-06
Revision : 0
Page : 5 of
5.1 Audit And Inspection 6

5.1.1 Comprehensive audits and inspections verify that the IKL’s OH&S
system and the physical facilities are in compliance with acceptable
standard
5.1.2 Audit and inspection will be :-
 Based on clear definitive guidelines
 Conducted by means of observation, interview, sampling, physical
inspection and review documented records.
 Conducted by parties without a vested interest or external pressure.

5.2 Audits
Audit activity will consist of audit plan, and result analysis report and corrective
action request. In the spot audit, audit plan shall not fully implemented. HSE
department shall generate and distribute the standard checklist to be used for
the spot audit.

 The auditor is under supervision of HSE Manager

 A plan of audits will be established annually by HSE Department
 Internal audits will be under taken and reported in accordance with
prepared check list and report format.

These checklist will have as a minimum the following subject :

 General verification of organization and implementation
 Hazard identification and risk assessment and control
 OH&S legal and other requirement
 OH&S objective, target and programme
 Internal and external OH&S communication and consultation
 OH&S document and records control
 Operational of OH&S control from risk assessment and control including
direct and indirect hazard control
 Selection and evaluations of OH&S performance of supplier / vendor / sub-
contractor
 Preparedness and response of emergency situation

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PT. ISTANA KARANG LAUT HSE-0104
HSE PROCEDURE Date : 09-
Oct-06
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 Performance, monitoring and measurement for OH&S implementation
6
 Accident, incidents and all OH&S non conformance report, corrective and
preventive action
 Others subject who have influence for OH&S performance and OH&S
implementation
 Non-conformance and corrective action will be recorded in a log and follow-
up action will be taken to ensure that all non conformance are closed in
timely manner.

5.3 Inspection
 An inspection schedule will be prepared by the HSE Department
 Inspection will be undertaken against prepared checklist maintained by HSE
Department
 A report shall be produced indicating summary of finding and item prioritized
 Follow-up action will be taken to ensure that all non conformance are closed
in timely manner
 Inspection will be performed by HSE Department.
 Report of inspection will be kept by HSE Department

5.4 Informal inspection

In even an OH&S issue found by IKL and subcontractor employee, they are
responsible to inform their supervisor or Safety officer to be highlighted and
followed up.

5.5 HSE Performance Report

Audit result shall be reported and shall become a basic in assessing of HSE
performance or compliance of the implementation. When the audit result are
described in the HSE performance, the following parameter shall be record :
 Near misses
 First aid case
 Medical treatment case
 Days away from work cases or lost time injury
 Fatality or catastrophic

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PT. ISTANA KARANG LAUT HSE-0104
HSE PROCEDURE Date : 09-
Oct-06
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 Frequency rate based on OSHA formula :
Number of Accident / Incident x 200.000
Manhours

(See Appendix 2 - HSE Performance Report Form for Office and Appendix 3 -
HSE Performance Report Form for Total Operation)

5.6 Audit Result

If any non conformance found, Non Conformance Report (for OH&S system)
(Appendix 5) to be issued by the auditor complete with the recommend
disposition and the time limit filled by the audited department head.
The audit report (Appendix 6) complete with Non Conformance Report
(Appendix 5) (if any) to be forwarded to Director for review and comment (if
any). After signed by the audited department head, NCR Report (Appendix 5) to
be filled by HSE department for follow-up. If any non conformance to the
system found by other than the auditor, the finder shall prepare the NCR (for
OH&S Management System) (Appendix 5) by filling the description of non
conformance and which procedure is violated, then submit it to auditor to be
expedite or follows up as per the above procedure.

5.6.1 Non Conformance Report

The non conformance classified as bellow :
 Major :
A major non conformity relates to the absence, or the total break
down of a system to meet the requirement of a clause of OHSAS
18001 or OH&S legal requirement, or company OH&S procedure

 Minor :
A minor non conformity relates to the either a failure to meet one or
other reference documents or a single observed lapse in following
one item of a company procedure.

It is the auditor responsibility to follow up the corrective action required by filling

up the Non Conformance Report Status List (Appendix 7) for easier monitoring.

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 AUDIT AND INSPECTION Procedure : IKL-
PT. ISTANA KARANG LAUT HSE-0104
HSE PROCEDURE Date : 09-
Oct-06
Revision : 0
Page : 5 of
6
5.7 If need action to prevent from re-occurrence of potential non conformance / non
conformance, issue Preventive Action Form (Appendix 4)

6.0. APPENDIX
Appendix 1 Audit Plan IKL-HSE-0104-01
Appendix 2 HSE Performance Report Form for Office/Contractor IKL-HSE-0104-02
Appendix 3 HSE Performance Report Form for Total Operation IKL-HSE-0104-03
Appendix 4 Preventive Action Form IKL-HSE-0104-04
Appendix 5 Non Conformance Report (for OH&S system) IKL-HSE-0104-05
Appendix 6 Audit Report IKL-HSE-0104-06
Appendix 7 Non Conformance Report Status List IKL-HSE-0104-07

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