NTPC LIMITED

ENGINEERING DIVISION

MANAGEMENT SYSTEM MANUAL

LEVEL I

ISSUE III REV 0

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Engineering Division Management System Manual Level I

issue III Rev 0

January 28, 2011

SECTION A SECTION: A

1.0: STATEMENT OF COMMITMENT

We firmly believe in achieving Total Quality in all aspects, involving every function. Each function is responsible for establishing continuous improvement oriented management systems and procedures that comply with this Manual. Each employee of Engineering Division is expected to keep in focus while conforming to applicable requirement of the quality system. This will enable us to deliver quality services to our customers and will assure our sustained growth and is considered to be the best strategy to achieve Objectives.

We hereby jointly declare our commitment to attain the companys vision and objectives through full participation in implementation of Management System given in the Manual.

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Engineering Division Management System Manual Level I

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Table of Contents SECTION: A ........................................................................................................................................................2 1.0: STATEMENT OF COMMITMENT...............................................................................................................2 3.0: DISTRIBUTION LIST OF CONTROL COPY ..................................................................................................5 4.0: DETAILS OF REVISION ..............................................................................................................................6 SECTION B: ........................................................................................................................................................7 1.0: GENERAL ...................................................................................................................................................7 2.0: MANAGEMENT SYSTEM MANUAL DOCUMENTATION STRUCTURE: ........................................................7 3.0: CONTROL OF MANUALS: ..........................................................................................................................9 3.1: REVIEW & REVISION OF MANUALS :....................................................................................9 3.2: DISTRIBUTION OF MANUALS: ..............................................................................................10 SECTION C: ......................................................................................................................................................11 1.0 : QUALITY POLICY ...............................................................................................................................11 2.0: OBJECTIVES SETTING PROCESS ......................................................................................................11 2.1 : MEASUREMENT & MONITORING PROCESS FOR OBJECTIVES .................................12 SECTION D: .....................................................................................................................................................13 1.0 : RESPONSIBILITY & AUTHORITY: ...................................................................................................13 2.0 RESOURCE MANAGEMENT: .....................................................................................................................13 2.1 Resource Planning...............................................................................................................................13 2.2 Review .................................................................................................................................................14 2.3 Human Resources ...............................................................................................................................14 2.4 Competence development .................................................................................................................14 2.5 Infrastructure ......................................................................................................................................15 2.6 WORK ENVIRONMENT ........................................................................................................................15 3.0: PRODUCTS / SERVICES OF ENGINEERING DIVISION ...............................................................................15 3|Pa g e

Engineering Division Management System Manual Level I

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3.1: Planning: ............................................................................................................................................15 3.2: Measurement, monitoring and non conformity redressal: ..............................................................16 4.0 : ANALYSIS OF DATA AND IMPROVEMENT: .............................................................................................16 5.0: PURCHASING OF SERVICES BY ANY DEPTT IN ENGINEERING DIVISION: ................................................16 6.0: PRODUCTION AND SERVICE PROVISIONS:..............................................................................................16 7.0: IDENTIFICATION & TRACEABILITY ...........................................................................................................17 8.0: CUSTOMER PROPERTY............................................................................................................................17 9.0: CONTROL OF MONITORING AND MEASURING DEVICES: .......................................................................17 SECTION E: ......................................................................................................................................................18 1.0: MANAGEMENT REVIEW .........................................................................................................................18 1.1: Agenda ...............................................................................................................................................18 1.2: Records of Management Review Meeting ........................................................................................19 SECTION F: ......................................................................................................................................................20 1.0: LEVEL 1 MANUAL records: ......................................................................................................................20 1.1: CONTROL OF RECORDS: .....................................................................................................................20 APPENDIX 1 APPENDIX 2 APPENDIX 3 : NTPC & Engineering division profile : Engineering division organization structure, responsibility & authority : Engineering division MOU

APPENDIX 4 : Departmental products, their planning, measurement & monitoring and non conformity redressal philosophy APPENDIX 5 APPENDIX 6 APPENDIX 7 Appendix 8 Appendix 9 : Co-relation with ISO: 9001:2008 : Abbreviations : Level I Manual Drafting Committee : Revision record of Appendices : Record of the review of Manual

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Engineering Division Management System Manual Level I

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SECTION A 3.0: DISTRIBUTION LIST OF CONTROL COPY

Sr. No. 1. 2. 3. 4.

Control copy MASTER COPY AUDITOR COPY NTPC EOC RIOs

Issued to MR MR INTRANET ERP

Doc. type Hard copy Hard copy Soft copy Soft copy

NOTE: Old revision status and obsolete documents (electronically stamped as obsolete) will be maintained at a common folder on the NTPCEOC intranet for reference only.

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Engineering Division Management System Manual Level I

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SECTION A 4.0: DETAILS OF REVISION

SEC. NO.

REV. NO.

DATE

AMENDMENT DETAILS & IDENTIFICATION BY

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ENGINEERING DIVISION MANAGEMENT SYSTEM MANUAL LEVEL I

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SECTION B SECTION B:

1.0: GENERAL

This manual describes the Management System established and maintained to ensure that the products / services conform to the specified requirements. The documented management system will help in ensuring focus to continually improve effectiveness in achieving the objectives.

2.0: MANAGEMENT SYSTEM MANUAL DOCUMENTATION STRUCTURE:

Documented management systems, procedures and instructions are established in accordance with business requirements of the Engineering Division of NTPC while meeting provisions of ISO-9001-2008. The Management following: System Documentation structure includes the

Level I Manual: is Apex manual which includes Quality Policy, Objectives, resource management policy, products of Engineering division: their control philosophy, Management responsibilities and other system requirements. Level II Manual: is Divisional Level manual which includes common procedures & work instructions Level III Manuals: are Departmental Manuals which include department responsibilities & authority, procedures and other Quality system requirements Level IV Manuals: are Departmental work instructions which include Guidelines and Check Lists for effective functioning. Level I manual has eight appendices. Appendix 1: NTPC & Engineering division profile
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Appendix 2: Engineering division organization structure, Responsibility & Authority Appendix 3: Engineering division MOU Appendix 4: Departmental products, their planning, measurement & monitoring and non conformity redressal philosophy Appendix 5: Co-relation with ISO: 9001:2008 Appendix 6: Abbreviations Appendix 7: Level I Manual Drafting Committee Appendix 8: Revision record of Appendices Appendix 9: Record of the review of Manual

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ENGINEERING DIVISION MANAGEMENT SYSTEM MANUAL LEVEL I

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SECTION B 3.0: CONTROL OF MANUALS:

Level I & II manual are issued by the Management Representative (MR) with the approval of ED (Engineering). MR is authorized to control and issue revisions with the approval of ED (Engg.). Level III & IV manuals are issued, revised & controlled by respective HODs.

3.1: REVIEW & REVISION OF MANUALS :

All employees of Engineering Division, may suggest changes for improvements and give their feedback. The suggestion should indicate the relevant clause number and proposed change with the reason for change. All the suggestions will be addressed to their respective Group Head / HOD. HOD will forward the suggestions to MR.

REVIEW OF LEVEL I & II MANUALS The review committee appointed by MR will review the Manuals once every year to assess its continuity, adequacy and conformity to customer requirements. The review committee will also interact with suggesting departments / individuals, if required. The review committee will present their recommendations to apex committee. The apex committee consisting of ED (Engg.) and heads of all departments will review the changes suggested by review committee and if accepted the changes will be incorporated into the relevant manual. In case Manual is reviewed and adopted without any revision, then record of such review will be maintained as appendix 9 (i.e. Record of review of manual).

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ENGINEERING DIVISION MANAGEMENT SYSTEM MANUAL LEVEL I

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IDENTIFICATION OF CHANGES IN LEVEL I & II MANUALS.

The revised text of Manual will be highlighted with color. In the subsequent revision of the manual, earlier changes will be normalized and only the latest changes will be highlighted with color. Revisions are identified numerically e.g. 0, 1 , 2 n. With revision of any section, the manual gets a new revision number & date. The new revision number & date is indicated in header of the manual. When substantial changes are made in Manual the whole manual is reissued. The issues are identified by roman numerals e.g. I, II etc. along with date of issue. Each new issue supersedes all previous issues and revisions of the manual. The new issue of the manual will start with revision zero. The details of revision are given in Details of Revision section of this manual. Any change in the appendices will not be treated as a change or revision in the manual. Revision status of appendices will be identified by its date. Engineering division MOU (appendix 3) will be identified by the year of the MOU.

3.2: DISTRIBUTION OF MANUALS:

Latest version of level I, II, III & IV manual will be hosted on intranet / ERP. All manuals will be digitally signed documents. Revisions and reissues of the manual are distributed as per Distribution List. Old revision status and obsolete documents (electronically stamped as obsolete) will be maintained at a common folder on the intranet for reference only.

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ENGINEERING DIVISION MANAGEMENT SYSTEM MANUAL LEVEL I

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SECTION C SECTION C:

1.0 : QUALITY POLICY

Striving to be worlds largest & best power producer powering Indias growth through safe, reliable & environmental friendly power generation at optimum cost and time and achieving total customer satisfaction by: Adoption of state of art technology on continual basis Excellence in system engineering to achieve high level of efficiency, safety, reliability and cost effectiveness Environmental engineering for meeting the national norms of pollution of air, water and land by eco-friendly power generation Maintaining quality measures to ensure a high level of performance of products Ensure effective use of information technology in engineering activities for meeting targeted time schedules Continuous competency development of employees towards updating their knowledge base

2.0: OBJECTIVES SETTING PROCESS

Engineering Division's yearly MOUs (objectives) are finalized, based on annual business plan of NTPC. Engineering division MOUs becomes the basis for framing objectives of individual departments of Engineering Division.

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2.1 : MEASUREMENT & MONITORING PROCESS FOR OBJECTIVES

ED (Engg.) with the help of P&S deptt. monitors the performance of individual department on quarterly basis against internal MOU targets. ED (Hydro Engg.) with the help of P&S deptt. (Hydro Engg.) monitors the performance of individual department on quarterly basis. The objective achievements score card is maintained by respective P&S departments.

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ENGINEERING DIVISION MANAGEMENT SYSTEM MANUAL LEVEL I

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SECTION D SECTION D: 1.0 : RESPONSIBILITY & AUTHORITY:

ED (Engg) is overall in-charge for management system of Engineering Division. The Heads of functional groups described in the organization chart have the authority and overall responsibility for maintenance of management systems in respective areas for effective performance. They also have the authority to initiate action to prevent the occurrence of any non-conformity, identify problems related to products, initiate and record problems, recommend or provide solutions, verify implementation of solutions and control further processing of non-conforming product until the deficiency or unsatisfactory conditions have been corrected. They have freedom to re-organize the department and delegate authority to perform duties to subordinates but will retain the entire accountability of those duties. Organization chart of Engineering Division including Hydro Engineering, Functions and Responsibilities of HODs is elaborated at appendix 2. The responsibilities of other levels are given in respective Departmental Manuals. As part of Engineering Division, operations of Hydro Engineering are headed by ED (Hydro Engg.). Hydro Engineering has got separate functional heads. Hydro Engineering is also being supported by PE Infra-Structure Services, Quality Assurance & Inspection, Environment Engineering, Engineering IT Services, Cost Engineering and Library & Documentation departments. 2.0 RESOURCE MANAGEMENT: 2.1 RESOURCE PLANNING Resource planning is done at the beginning of each financial year projecting the resource required for Engineering Division activities. The resource planning include: Manpower

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Engineering assistance required from outside Skills Engineering support facilities (software, work stations, computers etc.) Logistics support facilities (reprographic equipment, communication facilities etc)

Resource planning is initiated at departmental level sufficiently in advance so as to finalize overall Resource Plan for Engineering Division before start of financial year. Overall resource planning & monitoring is coordinated by respective Planning & Systems Groups of Engineering Division.

2.2 REVIEW Review of augmentation and utilization of resources is taken by ED (Engineering), ED (Hydro Engineering) along with functional heads.

2.3 HUMAN RESOURCES HODs ensure that resources provided for, are effectively utilized. Control on resource utilization for the department is exercised by HOD. Control on resource utilization for consultancy assignments is exercised by the concerned Project Manager.

2.4 COMPETENCE DEVELOPMENT A continuous up-gradation of knowledge is undertaken in order to ensure quality work by Engineering division. Competence development / training needs requirements are identified and suitable training and education is provided. The training needs are identified by concerned departmental heads based on functional requirements and forwarded to HR department for arranging training programs. Special emphasis is provided by HODs to identify focused areas where knowledge
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base/skills enhancement is required. Training procedure is defined in Divisional Manual (Level II).

2.5 INFRASTRUCTURE The infrastructure covers engineering support facilities like library, software, servers, work stations, internet, LAN, ERP-SAP and other support facilities like reprographic equipments, scanners, printers, communication facilities etc. These are identified in the Resource Plan.

2.6 WORK ENVIRONMENT The work environment covers the factors related to personnel safety & security, lighting, HVAC, fire protection, canteen facility, sanitation and noise pollution control. The suitable work environment is provided to all employees by controlling the above factors in the engineering work area with the help of HR Department.

3.0: PRODUCTS / SERVICES OF ENGINEERING DIVISION

3.1: PLANNING: Overall planning is based on annual internal MOUs signed by Engineering division with Corporate Planning. Corporate Planning department finalizes the external annual MOU with Ministry of Power (MOP). The new projects are identified & forwarded by Corporate Planning to New Projects Group of Engineering Division. R&M of existing stations is planned based on R&M business plan. NTPC Consultancy wing also forwards project work received from various customers. Engineering support to existing plants is planned based on specific station requirements.

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The products / services of various departments of engineering division are defined at Appendix 4 along with planning of each product. 3.2: MEASUREMENT, MONITORING AND NON CONFORMITY REDRESSAL: Measurement, Monitoring and non-conformity redressal philosophy of each of the products is defined, in brief, in Appendix 4. 4.0 : ANALYSIS OF DATA AND IMPROVEMENT: Planning of delivery of various products help in assessing the work load of the individual groups / deptt. and helps in human resource planning. Monitoring of actual deliveries help in preparing strategies to meet new demands of customers. Non conformity data and other feedbacks received from site, suppliers, regional inspection offices are summarized for corrective & preventive actions, if any. Above data (MIS) is analyzed for future planning e.g. improvement in technical specification, strategies etc. 5.0: PURCHASING OF SERVICES BY ANY DEPTT IN ENGINEERING DIVISION: The process of purchasing of services or hardware by any deptt of Engg. Division is in line with Corporate Contracts procedures. Corporate contracts procedures are maintained by CS Department.

6.0: PRODUCTION AND SERVICE PROVISIONS: These processes are handled by EITS & ERP departments. EITS department is responsible for establishing and maintenance of computing systems including servers and LAN in EOC. ERP is responsible for maintenance of ERP-SAP system throughout NTPC.

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7.0: IDENTIFICATION & TRACEABILITY All products are identified by a number as per numbering scheme. The guidelines of the numbering scheme is indicated at Divisional manual (Level II). The products are traceable through their process of approval defined by individual department.

8.0: CUSTOMER PROPERTY Individual departments maintain records generated / documents received as a result of consulting assignment in the same manner as maintained for NTPC projects, as per procedure defined in Divisional Manual Level II.

9.0: CONTROL OF MONITORING AND MEASURING DEVICES:

Monitoring and measuring processes in Engineering Division are software driven. The monitoring & measuring software development or purchasing, their implementation and maintenance, is the responsibility of EITS department.

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SECTION E:

1.0: MANAGEMENT REVIEW Management reviews are undertaken to evaluate the status and adequacy of Management System to ensure its continued suitability, adequacy and effectiveness in meeting the requirements of ISO-9001-2008 and Quality Policy and MOUs (Objectives) of Engineering Division and Hydro Engineering ED (Engg.) appoints the management representative through a circular.

1.1: AGENDA Management Representative (MR) initiates the Management Review taking following into consideration: Result of Audit Critical issues affecting Quality, if any Introduction of new systems, where required.

ED (Engg.) takes Management Review Meetings in which MR, and Heads of all departments participate. The agenda for Management Review includes following: Trends on achievement of internal MOU objectives (furnished by P&S) Issues regarding non-conformities, corrective & preventive actions and customer complaints required to be discussed at HOD level (furnished by individual departments), if any Results of internal and external Quality audits (furnished by MR) Any other issue brought forward by HODs

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1.2: RECORDS OF MANAGEMENT REVIEW MEETING

MR prepares and circulates the Minutes of Management Review Meetings. Minutes of management review meetings are posted on the intranet (NTPCEOC) and ERP. Effectiveness of Management Review is ensured by ED through monitoring and personal observations.

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SECTION F:

1.0: LEVEL 1 MANUAL RECORDS:

Circular for appointment of Management Representative by ED (ENGG.) Trends on objectives achievements (maintained by P&S dept) Internal quality audits summary ( maintained by MR) External audit records ( maintained by MR) Minutes of management review meeting ( maintained by MR)

1.1: CONTROL OF RECORDS:

Appointment of MR by ED (Engg.) will be as per requirement and will be identified by its date. All other records will be generated twice in a year after internal audits. All the above records will be identified by the Month & year. These records will be maintained on intranet and ERP.

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