QUALITY MANAGEMENT SYSTEM (QMS) MANUAL



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Printed QMS Documentation is Uncontrolled Page 1 of 19 QUALITY MANAGEMENT SYSTEM (QMS) MANUAL ISSUE/ REVISION DATE DESCRIPTION ISSUE HISTORY PREPARED/ APPROVED BY 09/04/2014 Initial issue G.Rees 11/04/2014 Revision: General Quality Manager replaced by Quality Officer. Hooker Engineering Australia with Hooker Engineering Australia Australia. Profile, Quality Policy Statement, Clause 1.2 2 nd para, 1.3.2,1.3.3. 1.3.6, 2.1, 2.2, 2.3 Process Flow, 2.4 Business Objectives,.3.0 Procedure Index and Organisational Chart. Mike Hooker/ G. Rees 16/05/2014 Agreed Final Issue G.Rees, M. Hooker, W.Benedikovics

Printed QMS Documentation is Uncontrolled Page 2 of 19 CONTENTS FOREWORD COMPANY PROFILE 1.0 COMPANY POLICY 1.1 Quality policy statement 1.2 Quality system scope and exclusions 1.3 Organisation - authority and responsibilities 1.4 Organisation chart 2.0 SYSTEM OUTLINES 2.1 Quality system procedures 2.2 Quality planning 2.3 Quality system processes 3.0 PROCEDURE INDEX

Printed QMS Documentation is Uncontrolled Page 3 of 19 FOREWORD This Quality Manual is the means by which Hooker Engineering Australia Pty Ltd satisfies the requirements of its customers, particularly with regard to management responsibility. Hooker Engineering Australia Pty Ltd is obliged to ensure that its Quality Policy is fully and completely understood by its employees, and that its procedures are implemented and maintained at all times. This Quality Manual is in accordance with the requirements of AS/NZS ISO 9001:2008. All of the components of the Quality Management System (QMS) shall be periodically and systematically reviewed by both internal and external Quality Audit procedures. The Management Representative appointed by Hooker Engineering Australia Pty Ltd is the Managing Director/Engineer/designate, is responsible for the control of all matters relating to the implementation of these procedures. However, day to day operations shall be maintained and controlled by a Quality Officer. The assurance of quality is fundamental to all the work undertaken by Hooker Engineering Australia Pty Ltd. All personnel at every level in Hooker Engineering Australia Pty Ltd s structure shall practise the procedures established.

Printed QMS Documentation is Uncontrolled Page 4 of 19 COMPANY PROFILE Hooker Engineering Australia was formed in 2005 by Michael Hooker with the objective of providing hydraulic and mechanical engineering services to the mining and industrial sectors. Hooker Engineering Australia provides seamless project engineering services to a broad range of industries, both local and international. We provide engineering from the early stages of a project with initial conceptual design, through to detailed design and execution. Complete systems are designed, manufactured and assembled in-house with components being procured locally and internationally. Hooker Engineering Australia merges all disciplines - hydraulic, mechanical, electrical, and fabrication. Systems can be installed and commissioned by our field engineers in accordance with client requirements. Hooker Engineering Australia is a Turnkey One Stop Service Provider for mining and industrial applications. Our objective is to provide our clients with cost effective engineering solutions, manufactured to appropriate quality standards delivered on time and on budget. The company has established itself as a strong provider of customised hydraulic and lubrication systems to the iron ore, coal, gold and base metal mining equipment suppliers and operators. System supply, installation and after market support have been provided throughout Australasia, The Pacific Rim and Africa. Hooker Engineering Australia is fully aware of its responsibilities to staff, customers, suppliers and the wider community

Printed QMS Documentation is Uncontrolled Page 5 of 19 1.0 COMPANY POLICY 1.1 QUALITY POLICY STATEMENT Hooker Engineering Australia is committed to ensuring the development, design, manufacture, supply, installation, commissioning and ongoing service of products at the appropriate quality. The Company recognises that to achieve this, the needs and requirements of clients must be understood and responded to in an efficient, innovative and professional manner. This commitment to quality is underpinned by a comprehensive Quality Management System (QMS) consisting of processes and procedures written to the requirements of the international standard ISO 9001:2008, which is integrated into applicable facets of workplace operations. The manual, procedures and associated documentation of the QMS form a framework for all work done by the company with an emphasis on obtaining key information necessary for ongoing improvement of processes and products. The management of Hooker Engineering Australia firmly believes that compliance with the requirements of the ISO 9001:2008 International Standard is critical to the establishment of a truly excellent company dedicated to meeting and exceeding client expectations in all aspects of its work. To achieve this level of excellence Hooker Engineering Australia management will: Ensure the benefit and operation of the Quality Management System (QMS) is clearly communicated to all staff Track key performance indicators of quality in the workplace Incorporate information gained from the QMS into a quality plan for continual improvement Actively seek feedback from clients and follow a strict process for action on client responses Ensure all delivered products meet their specifications and schedule Provide adequate resources for the efficient and effective achievement of QMS objectives Employees and contractors also have a duty towards continual improvement in the company. In order to achieve this each individual is required to: Openly report problems as they arise and address those problems immediately where practical Contribute to continual improvement by providing ongoing feedback to senior staff members Inform themselves of the procedures and instructions detailed by the QMS Follow the procedures and instructions detailed by the QMS Strive for excellence in all aspects of their work Mike Hooker Managing Director/Engineer/designate Date:

Printed QMS Documentation is Uncontrolled Page 6 of 19 1.2 QUALITY SYSTEM SCOPE AND EXCLUSIONS The documented QMS for Hooker Engineering Australia covers the processes involved in design and manufacture of a range of specialised hydraulic and lubrication equipment for the mining and industrial sectors. Applicable elements of ISO 9001 apply to the manufacturing processes in force at Hooker Engineering Australia. 1.3 ORGANISATION 1.3.1 General The organisation chart shows the quality functions and reporting relationships within the company. Responsibilities of any individual who is absent are delegated to another appropriate employee. Job Descriptions for all positions shown on the organisation chart are maintained and list the key roles, responsibilities and authorities for that position. QMS procedures further define personnel roles, responsibilities and authorities. All personnel have sufficient authority in the organisation to enable them to undertake their responsibilities and are competent on the basis of education, training, experience as required by the nature of their duties. 1.3.2 Responsibility and Authority Managing Director/Engineer/designate The Managing Director/Engineer/designate is the executive and management representative, responsible for quality and for ensuring that the quality policy is implemented, understood and maintained at all levels in the organisation. 1.3.3 Responsibility and Authority - Quality Officer The Quality Officer has been appointed to maintain and control the implemented QMS. Reporting directly to the Managing Director/Engineer/designate the appointee has the vested authority to ensure that the requirements of the QMS are met within the company. Specifically, the responsibilities include: - a) Implement and maintain the QMS and manage all aspects of quality within the Company.

Printed QMS Documentation is Uncontrolled Page 7 of 19 b) Liase as required with customers and other external organisations on any aspects of the QMS. c) Arrange internal audits of the QMS and implementation of consequent change. d) Initiate all actions necessary to ensure that required quality levels are met. e) Implement and monitor revisions of the QMS. f) Plan and implement necessary training in respect of the QMS. g) Reporting to management on the performance of the QMS and need for improvement. h) Monitor customer service trends and make recommendations for improvements as necessary. The Quality Officer has day to day authority and responsibility for ensuring continual awareness among staff of the need to identify, determine and meet customer needs and expectations and to assist with decisions in the event of non conformance. 1.3.4 Responsibility and Authority - Staff - General a) To ensure the quality of work carried out within their respective areas. b) Verifying that approved procedures are adopted and any necessary complimentary instructions are prepared, approved and implemented. c) Monitoring levels of customer service and feedback. 1.3.5 Resources The Managing Director/Engineer/designate is responsible for identifying overall resource requirements for personnel and equipment, and for the provision of such resources, to ensure effective customer focus, management and performance of work resulting in customer requirements being met.

Printed QMS Documentation is Uncontrolled Page 8 of 19 The Managing Director/Engineer/designate is responsible for ensuring that future resource needs are foreseen and action taken to ensure availability consistent with company objectives and external factors. 1.3.6 Management Review and Internal Communication Management Review are held at pre-determined intervals to review the adequacy, effectiveness and continuing suitability of the QMS in relation to the achievements of quality policy objectives and the requirements of ISO9001. (refer QP.02) The Quality Officer liases with the Managing Director/Engineer/designate to arrange when the next Management Review should be held in terms of the agreed frequency and issues the formal Management Review Agenda - which schedules but is not limited to the motions listed - to all members with the agreed notice. Management Review process takes account of current results compared to planned objectives for a range of key areas as shown under clause 2.5 in this document. Where there is a need for change or an opportunity for continual improvement is identified appropriate measures are taken. Records of the Management Reviews are documented and maintained. The Quality Officer is responsible for ensuring that information regarding the QMS is communicated to staff through meetings, notices, memos, etc. The company s policy and objectives are reviewed and discussed at Management Review 1.4 ORGANISATION CHART (Refer to end of Manual for Landscape Organisational Chart) The Organisational Chart at the back of the QMS Manual reflects the QMS structure and responsibilities only. The Company may use other Organisational Charts in its operations.

Printed QMS Documentation is Uncontrolled Page 9 of 19 2.0 SYSTEM OUTLINE 2.1 Quality System The quality management system which has been established, documented and maintained has the specific objectives of ensuring that all works carried out by Hooker Engineering Australia meets the specified requirements of the customer. The quality system has a 4 tiered structure as shown below. Management Quality Manual Job forms Quality Management Procedures Quality Management Templates Work Instructions Quality Management System Records

Printed QMS Documentation is Uncontrolled Page 10 of 19 2.2 Quality Planning Company business and quality objectives are set by the Managing Director/Engineer/designate who is ultimately responsible for achievement of these goals. Goals and targets are communicated to staff as required. Quality objectives are set to realistically reflect company capability and as far as practicable are measurable. Company business information, future needs, market factors and customer feedback are used in setting and reviewing forward objectives. At the workplace level the overall key objectives of the quality management system are:- Maintain planned profit margins Completion of work on time and within budget Nil lost time accidents Minimise rectification work during manufacture and defect liability period Minimise non conformances The company strategy is to consistently provide an efficient and effective manufacturing and supply service to our customers. By organising our working routines in an effective manner this goal will be achieved and sustainable long term company growth assured. All work is confirmed by client order or contract and identified by job number. Each job is planned and resources scheduled by the Managing Director/Engineer/designate and other senior staff. Planning includes scheduling and generation of bills of materials, procurement of materials preparation of inspection and test plans and job safety analysis documentation and co-ordination with other contractors. The amount of job planning and number of senior staff involved in each contract is dependent upon the job size and complexity. The senior staff at Hooker Engineering Australia (HEA) review the order received and categorise it into different types of job. The Job Categories are: ES Engineering Service Full set of documents: Drawings, Management, Full Quality Control WA Workshop Assembly Basic documentation: No Design, some Management and Quality Control in accordance with client specifications WS Workshop Service Maintenance/Repairs (Warranty work/client request): Basic Records are maintained in accordance with client specifications or QMS requirements

Printed QMS Documentation is Uncontrolled Page 11 of 19 SS Site Service Maintenance/Repairs (Warranty work/client request): As for Workshop Service PS Product Sale Documentation: per QMS requirements. Once the order has been categorised into a type of job the applicable level of documentation and Quality Control is applied. Senior management are responsible for maintaining on-going review of company resources and ability to meet contract requirements as an integral part of quality planning. Consideration is given to factors such as plant and equipment, staff competency and skills, management control, records, etc in order to ensure continuing capability to meet customer needs. When continual improvement or changes to quality objectives involve a change to the documented quality management system the Quality Officer is responsible for ensuring the change process is controlled with no detrimental effect on capability to meet customer needs. 2.3 Quality System Processes Hooker Engineering Australia have clearly identified processes for tendering, contract receipt, job planning, job execution and control. Quality system procedures identify the documentation which form the input to or output from each process. Formal interaction between processes is indicated in the procedure by reference to other procedures.

Printed QMS Documentation is Uncontrolled Page 12 of 19 The Quality Management System is based on the following process model: CUSTOMER REQUIREMENT REVIEW & CONFIRMATION OF CUSTOMER REQUIREMENT TRAINING & COMPETENCE MONITORING & INTERNAL & EXTERNAL RESOURCING MANAGEMENT REVIEW POLICIES OBJECTIVES INTERNAL COMMUNICATION CUSTOMER FOCUS PLANNING LEGISLATION REGULATIONS MEASUREMENT REQUIREMENT PROCESSING INCLUDING, WHENEVER APPLICABLE, DESIGN & DEVELOPMENT CUSTOMER SATISFACTION DELIVERY OF REQUIREMENT As part of the Management Review process, the Organisation reviews the Quality Management System and, when required, makes changes in order to ensure that it continues to meet management requirements and market conditions. The Management Review includes but not exclusively ; quality policy review, planning and objectives, document and record control, internal quality auditing findings, staff training requirements and resources, performance trend analysis, non-conformances and corrective actions, preventive actions and customer satisfaction.

Printed QMS Documentation is Uncontrolled Page 13 of 19 A schematic representation of the key process interactions is shown on the following page. SCHEMATIC MAIN PROCESS FLOW AND INTERACTION PATHS CUSTOMER NEEDS AND REQUIREMENTS GENERATE TENDER AND REVIEW BY SENIOR STAFF FOR APPROVAL REVIEW AND ACCEPT CLIENT ORDERS ISSUE MATERIAL TO MANUFACTURE PRODUCT DESIGN AND ENGINEERING CALCULATIONS ISSUE ITP s, DRGS MDR AND OTHER DOCUMENTS PURCHASE MATERIALS AND SUB CONTRACT WORK RECEIVING INSPECTION AND ALLOCATE TO JOBS SCHEDULE WORK AND ALLOCATE RESOURCES FABRICATE AND MANUFACTURE CLIENT COMMUNICATION AND SUPPORT PROBLEM IDENTIFICATION AND CORRECTIVE ACTION INSPECTION AND SIGN OFF ITP s PACKING, SHIPPING AND DELIVERY SUBCONTRACT INPUTS Additional processes which interact with some or all of the above main processes include:- Document Control and Business Records Internal Quality Auditing Staff Training and Resource Provision Performance Information Analysis Management Review Planning and Determination of Policy and Objectives Control of measuring equipment

Printed QMS Documentation is Uncontrolled Page 14 of 19 2.4 Business Objectives The Managing Director/Engineer/designate is responsible for establishing executive key objectives and targets (refer 2.2 above) and is ultimately responsible for achievement of those objectives. The business objectives are set to realistically reflect company capability and as far as practical are measurable. Company business information, future needs, market factors and client feedback are used in setting and reviewing forward objectives. At the operational level, the overall key objectives of the quality management system are as shown below :- Objective How Measured Target Maintain an efficient and profitable engineering service Executive review of budgets Review monthly performance results To meet or exceed budgeted Forecasts Completion of projects and work on time and to client satisfaction Project close out review External and internal audits Client feedback Non-Conformances levels Defect liability levels Call back frequency Rates < 5% of projects over time/budget or defective Minimise non-conformances Non-Conformances level of: Customer Complaints Product deficiencies External / internal audits <2 per annum <5 per annum <5 per annum Compliance with ISO 9001:2008 External and internal audits <2 per audit Strive for continuous improvement through training and staff involvement External and internal audits Training needs analysis Management Review Toolbox Meetings All planed training should be processed in the period

Printed QMS Documentation is Uncontrolled Page 15 of 19 3.0 PROCEDURES INDEX Hooker Engineering Australia have documented procedures for all systems and functions that apply to the QMS as follows. Business Function Procedure Title Procedure Number Management Responsibility Document Control and Record Management QP-01 Measurement, Analysis and Improvement Performance, Monitoring and Improvement QP-02 Measurement, Analysis and Improvement Problem Identification and Resolution QP-03 Resource Management Human Resources and Training QP-04 Service Realisation Quoting, Tendering Sales Order Design Purchasing, Receiving Inspection & Despatch Measuring Equipment & Maintenance Workshop Work Scheduling Site Engineering Services Sales Client Communication/Satisfaction QP-05 QP-06 QP-07 QP-08 QP-09 QP-10 QP-11 QP-12 Refer to the Master Register for Index of QMS documents- including Standard Work Instructions, Registers and Logs.

Printed QMS Documentation is Uncontrolled Page 16 of 19 ISO 9001:2008 Clauses Comparison to Hooker Engineering Australia QMS clauses ISO Clause Clause Title or Description Refer to HE QMS Document 4 Quality Management System 4.1 General Requirements All documents 4.2 Documentation Requirements 4.2.1 General All documents 4.2.2 Quality Manual Quality Manual 4.2.3 Control of Documents QP.01 4.2.4 Control of Records QP.01 5.0 Management Responsibility 5.1 Management Commitment Quality Manual QP.02 QP.04 5.2 Customer Focus QP.02 QP.03 QP.05 QP.o6 QP.09 5.3 Quality Policy Quality Manual 5.4 Planning 5.4.1 Quality Objectives Quality Manual 5.4.2 Quality Management System Planning QP.02 QP.05 QP.06 QP.08 QP.09 Quality Manual 5.5 Responsibility, Authority and Communication 5.5.1 Responsibility and Authority All documents Job Descriptions 5.5.2 Management Representative Quality Manual All documents 5.5.3 Internal Communication QP.02

Printed QMS Documentation is Uncontrolled Page 17 of 19 ISO Clause Clause Title or Description Refer to DCI QMS Document 5.6 Management Review 5.6.1 General QP.02 5.6.2 Review Input QP.02 5.6.3 Review Output QP.02 6 Resource Management 6.1 Provision of Resources Quality Manual QP.05 6.2 Human Resources 6.2.1 General QP.04 6.2.2 Competence, Awareness and Training QP.04 6.3 Infrastructure Quality Objectives QP.04 6.4 Work Environment QP.04 7 Product Realisation 7.1 Planning of Product Realisation ) Quality Manual ) QP.05 ) QP.06 ) QP.08 ) QP.09 7.2 Customer Related Processes 7.2.1 Determination of Requirements ) QP.05 ) QP.06 7.2.2 Review of Requirements QP.05 7.2.3 Customer Communication ) QP.05 ) QP.10 7.3 Design and Development QP.06 7.4 Purchasing 7.4.1 Purchasing Process QP.06 7.4.2 Purchasing Information QP.06 7.4.3 Verification of Purchased Product QP.06 7.5 Product and Service Provision 7.5.1 Control of Production and ) QP.01 Service Provision ) QP.02 ) QP.03

Printed QMS Documentation is Uncontrolled Page 18 of 19 ISO Clause Clause Title or Description Refer to DCI QMS Document ) QP.06 ) QP.07 ) QP.08 ) QP.09 ) QP.10 ) QP.11 ) QP.12 7.5.2 Validation of Processes ) QP.09 7.5.3 Identification and Traceability ) QP.06 ) QP.10 7.5.4 Customer Property ) QP.09 7.5.5 Preservation of Product ) QP.10 ) QP.12 7.6 Control of Measuring and Monitoring Equipment QP.08 8 Measurement, Analysis and Improvement 8.1 General QP.03 8.2.1 Customer Satisfaction ) QP.03 ) QP.10 ) QP.12 8.2.2 Internal Audit QP.03 8.2.3 Monitoring and Measurement ) of Processes ) QP.02 8.2.4 Monitoring and Measurement ) of Product ) QP.04 8.3 Control of Non-Conforming Product QP.03 8.4 Analysis of Data QP.02 8.5 Improvement 8.5.1 Continual Improvement QP.03 8.5.2 Corrective Action QP.03 8.5.3 Preventive Action QP.03 Refer to the appropriate Master Register for a comprehensive listing of the Hooker Engineering Australia QMS documentation including Templates and Work Instructions.

Printed QMS Documentation is Uncontrolled Page 19 of 19 Organisational chart (Refer clause 1.4 above) Quality Officer Director/Engineer Management Representative Production/Workshop Supervisor QMS Team Member Senior Electrical Engineer QMS Team Member Business Development Officer QMS Team Member Financial Controller QMS Team Member Sub-Contractors Hydraulic/Electrical Technician Workshop Personnel Apprentices, Trades Persons Accounts/ Receptionist