Quality Management Handbook

Quality Management Handbook

Kongsberg Maritime AS operates as a profitable global organisation, focused on customer needs, devoted to building lasting partnerships and acting with integrity, honesty and a spirit of co-operation with customers and staff.

Vision: World Class – through people, technology and dedication

Mission: We maximize marine performance by providing

The Full Picture

W O R L D C L A S S - through people, technology and dedication

Kongsberg Maritime AS

Kongsberg Maritime AS is a Norwegian limited liability company. It is fully owned by the Kongsberg Gruppen ASA. Kongsberg Maritime AS is organised in divisions and subsidiary companies. Staff functions are found in Finance and Business Support. The company headquarters is located in Horten, Norway, with offices in Kongsberg and Trondheim. The company has a number of subsidiary companies around the world. A more detailed presentation of Kongsberg Maritime AS, its divisions and products are found at the company’s web site. Reference: Organisation illustration on last page.

Management team The upper management level in Kongsberg Maritime AS consists of: • 1 President • 1 Chief Financial Officer (CFO) • 1 Senior Vice President QM & Administration • 1 Vice President Human Resources (HR) • 5 Executive Vice Presidents - Operational divisions The President is also a member of the Kongsberg Gruppen top management. The CFO has the overall responsibility for the company finances and information systems. The Senior V.P. QM & Admin has the responsibility for Quality Management, handbook and audits, Health, Safety and Environment (HSE), and General Administration. The V.P. Human Resources has the responsibility for all HR administrative systems and routines as well as HR development and training. The Executive VPs of each division have the overall responsibility for the total performance of their division. These are the actual operational business units in the company. Management responsibility

Quality Policy and Quality Management (QM) System The Senior Vice President has the overall responsibility that the Quality

Critical success factors Customer satisfaction • The behaviour of all personnel in Kongsberg Maritime AS. • Always deliver to agreed quality, time and cost • Knowledge about our applications and customer needs. • High quality customer support world wide throughout the life cycle of a delivered system. • Long term view on our customer relations. Employee satisfaction • Interesting and challenging job. • Empowerment. • Education and development. • Career possibilities. • A good working environment and stimulating company culture. • Competitive conditions. Owner satisfaction • Return on capital employed. • Growth. • Professional management. • Quality and implementation of strategies. • Contribute to the overall performance of Kongsberg Maritime AS.

Monitoring success factors

Customer satisfaction • Debrief done in delivery projects. • Service reports from Customer Support gives information about relations with Customer. • Warranty cost. • All attendants at our training courses are asked to answer a questionnaire. • Information from exhibitions. Employee satisfaction • Annual climate survey. All employees participate in this survey. The result gives the management information about employee satisfaction. • All employees shall once a year have a personal talk with the department manager to reveal potential improvements. Owner satisfaction • Financial figures from the financial system. • The figures are defined by the owner. Evaluations are performed every month by the management. Page 2

Management System satisfies external and internal requirements. This is done in close co-operation with the QM Managers in the operational divisions. Operational managers are responsible for ensuring that the content of the Quality Management System is implemented, understood and complied with, at all levels in the organisation. Management review The management periodically reviews the adequacy, suitability, and continuing effectiveness of Kongsberg Maritime’s policy, procedures and performance results vis-à-vis the requirements of the Quality Management System and other quality requirements to which the company subscribes. System amendments and improvements are implemented when and where appropriate. The review evaluates fulfilment of policy, objectives and strategy, results from internal system audits and improvement activities, and will include other relevant information regarding quality. Areas needing improvement are identified, and actions initiated and monitored. The management team, as a minimum, conducts an annual quality system review to evaluate that the Quality Management System is serving its purpose. The Senior Vice President Quality Management documents the review and follow up actions. Quality audits The effectiveness and performance of the system are monitored through audits of the system and projects. The objective of the audits is to verify that the system is understood and implemented, and is appropriate for its purpose, and to identify areas of improvement. Each operational manager has a responsibility to follow up: • whether deviations (from the specified audit criteria) have been corrected • that selected areas of improvement are evaluated • that relevant actions are carried out. Kongsberg Maritime AS has a common internal audit plan. This plan is made and maintained by the QM managers.

Quality Management System structure

Quality Management documentation The Quality Management system is available and maintained at Lotus Notes. The Quality Management documentation structure consists of: • Kongsberg Maritime AS Quality Management Handbook • Kongsberg Maritime AS common handbooks / procedures • Division / departmental procedures • Project Handbooks, plans and procedures

Quality Management Handbook The Quality Management Handbook describes the basic quality principles, the Quality Management System and the company organisation. Common handbooks / procedures The following areas are described in common handbooks and procedures: Handbooks - “what to do” • Marketing and sales HDB 0001 • Product development HDB 0002 • Deliveries and projects HDB 0003 • Customer support HDB 0004 Procedures - “how to do it” • Preventive action PRO 0001 • Control of documents PRO 0002 • Handling of nonconforming products PRO 0003 • Internal audit PRO 0004 • Control of records PRO 0005

Company requirements

Quality Management Handbook

Common Handbooks / Procedures

Division / departmental procedures Kongsberg Maritime AS consists of several divisions working towards markets with different needs and requirements. There is a variety in process complexity ranging from off-the-shelf products, to large and complex deliveries of integrated systems with extensive engineering. Due to this variation there is a need to adapt requirements to fit the nature of the business and the external requirements in order to achieve optimum processes. The results of this work are documented in departmental procedures. They are prepared by the users, and subjected to a compliance check by the Quality Management Department. KM Quality Management System (QMS) This is a database where the approved procedures valid for the different divisions and departments of Kongsberg Maritime AS can be found.

General external requirements ISO 9001:2000

ISO 9000-3

The structure of the Quality Management System

AQAP-2110 AQAP-160 ISO 14001

documentation is shown in the figure:

Specific division requirements Division procedures

Specific market requirements Eg. Requirements from class societies MED

Job descriptions

Project requirements

Project Handbook

Project Quality Plan

Page 3

EX directive

Customer- / contract requirements

Contract

Agreements Alliances

(Cd90000)

The Quality Management System consists of the policies, objectives, processes, and resources needed to implement company policy. The Quality Management System meets applicable general external requirements, and is certified according to ISO 9001:2000. Kongsberg Maritime is certified according to ISO 14001. Relevant parts of the Offshore & Marine Division has an ATEX approval.

Company quality

Results

Quality policy

We are committed to understand our Customers’ needs, and to provide them with quality products and services meeting specified requirements and our Customers’ expectations. The Company focuses on continued improvements of the Quality Management System through refinement of processes and the organisation’s capabilities.

Improvements

Satisfied customers

Quality Management System

Productt & S Service quality

Business model

The model is presented as a business process. It comprises all important business, supporting and organisational processes. It also shows the relations to our customers that are involved through the whole life cycle. Our processes are influenced by the:

Personal quality

Process quality (Cd90001)

• laws and regulations • regulations from standardisation organisations and classification societies • technology available • vision, goals, policies and strategies • market and customer demands.

Business processes are those which create value and are directly related to our customers. Supporting processes are those needed for efficient and controlled business processes, but not directly associated with value creation and customer relations. Organisational processes are related to management and infrastructure.

Customer Requirements

Marketing & Sales

Manufacturing, projects and deliveries Purchasing requirements

Product development

Delivered product

Purchased goods & services

Purchasing and logistics BUSINESS PROCESSES

Quality Management

Human Resources

Finance

IT/IS

SUPPORTING PROCESSES

Problems and improvements

Environment activities

Configuration management

Health, safety & environment

Calibration of measuring equipment

Resources & infrastructure

ORGANISATIONAL PROCESSES Page 4

Kongsberg Maritime Vision, mission, policies and strategies

Specified product

Environment (laws, regulations, technology etc.)

Customer support

Contracts

(Cd90002)

Product management

Business processes

Product management and product development The product development process transforms ideas and requirements to approved and verified products or modules for use in our deliveries. The product shall satisfy: • customer’s needs regarding function, operation, usability, availability, reliability, safety and maintainability • need for simplicity in production, inspection, test, operation and maintenance • laws and regulations • regulations from standardisation organisations and classification societies • environmental regulation and considerations.

New idea, requirements

2 Phase II planning

1 Phase I idea

Improvement suggestion / problem report

3 Phase III implementation

Phase II report

Phase III report

4 Phase IV evaluation

Phase IV report

(Cd90003)

Marketing and sales The Marketing & Sales Division has a special responsibility for assuring that our strategy regarding customer focus is understood and implemented. Information from the market will be used to improve our products and services. The selection of market possibilities shall be based on the strategic plan. All activities regarding request for proposals, proposals and contracts with any later additions, shall be documented.

Development process Manufacturing, projects and deliveries The delivery process succeeds the marketing and sales process. Contractual requirements are transformed into delivery-, purchasing- and productionspecifications, and systems are manufactured and delivered. When the delivery is accepted the responsibility for support of the system is transferred to the Customer Support function. The main goal for our deliveries shall be to satisfy the customer with a system delivered on time, with functionality and quality in accordance with requirements and expectations, and according to project budget. Purchasing and Logistics The main logistic activities in Kongsberg Maritime AS are illustrated in the logistic chain below. The activities are described in division / departmental procedures.

Logistic chain Page 5

Customer support The customer support process comprises support activities towards installed systems until phase-out and removal. Our objective is to provide the customer with excellent support during the whole life cycle so that the delivered systems continuously fulfil the customer’s needs. Customer support comprises the following processes: • Order processing • Telephone assistance • Service visits (planned and on request) • Upgrading and updating of systems • End user training; • Handling of warranty claims; • Handling of maintenance agreements • Life-cycle end disposal • Updating of configuration status files.

Supporting processes

Quality Management The Quality Management department is Kongsberg Maritime AS’s staff within quality management. The main responsibilities of the Quality Management are to: • Establish and maintain a suitable and efficient quality management system in cooperation with the divisions and staff. • Verify that the quality management system is practised by co-ordinating and carrying out quality audits. • Participate in and facilitate improvement projects by having knowledge of efficient tools and methods. • Prepare statistics for defined key performance indicators; • Assist the projects in specific quality activities. • Establish and maintain systems and tools for reporting and handling of problems, deviations and improvement suggestions. • Contact with the certification bodies. • Contact with classification societies to ensure that products and solutions comply with defined requirements.

Finance Finance has the responsibility for the financial processes, such as to establish budgets together with the divisions and staff managers, accounting and preparation of financial status reports and preparation of the annual report. Human Resources Human Resources department coordinates and advises the other departments on HR related matters, processes, rules and regulations. Employees shall have the qualifications necessary to correctly perform their assignments. All employees have a responsibility for maintaining and developing own competence. Management shall analyse and monitor the competence needs in their respective areas. The long-range need for competence development shall be evaluated and aligned with the strategic plans. IS / IT The department has the responsibility to prepare and maintain the Company’s IS / IT strategy, to implement and maintain the Company’s IS / IT infrastructure, and to provide the divisions with administrative and technical support.

Organisational processes

The QM Managers are appointed as the management representatives in the divisions and report to the Senior Vice President QM: They have the defined authority, responsibility and organisational freedom to ensure that the quality management system requirements are implemented and maintained. Further they have the authority to make decisions concerning the quality of products and deliveries from the divisions.

Configuration management The system for configuration management ensures that our products are unambiguously identified, changes are controlled and the configuration status is updated throughout the life cycle of the product. The configuration management process is tailored to conform to product complexity and safety requirements. The following activities are covered: • Planning of configuration management • Identification of configuration items • Change control (configuration control) • Configuration status accounting • Configuration audits.

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The purpose of the change control process is to make sure that: • Changes are sufficiently described and traceable to the product and documentation. • Changes and their consequences are analysed and evaluated by qualified personnel before implementation. • Required actions to implement the change are identified with person responsible and due date. • Changes are approved by authorised personnel before implementation. Health, safety and working environment Kongsberg Maritime AS are focusing on potential hazards, and shall provide a safe and healthy working environment and shall take adequate steps to prevent accidents and injury to health arising out of, associated with or occurring in the course of work, by minimising, so far as reasonably practicable, the causes of hazards inherent in the working environment. The President of Kongsberg Maritime AS has the overall responsibility for working, Health, Safety and Environment. The Senior Vice President Human Resources has been appointed as the management representative responsible for the health and safety politics, and accountable for the implementation of the HSE elements. This shall not limit the individual division’s manager responsibility for own staff’s health, safety and working environment. The product managers have the responsibility that our products comply with laws and regulations, and that they do not expose personnel to health and safety hazards during installation, operation and maintenance.

Resources and infrastructure Resources and infrastructure in Kongsberg Maritime AS are spread on several locations in Norway and abroad, each one adapted to the location’s specific purpose and function in the Kongsberg Maritime network. However, common IS / IT systems support all operations. Calibration of measuring equipment Kongsberg Maritime AS controls the accuracy of measuring equipment by employing a system for calibration and maintenance that satisfies the requirements of ISO 10012-1. The need for calibrating measuring equipment is considered when such equipment is acquired. Kongsberg Maritime AS uses an external approved calibration laboratory. Problems and improvements Kongsberg Maritime AS continuously improve processes, products and services. Kongsberg Maritime AS systematically: • report and correct problems • plan and carry out necessary activities to implement improvements • follow up the results. Employees have a responsibility to report problems and improvement suggestions. These shall be reported and processed using standardized procedures. Larger improvement initiatives are organized as projects with defined goals.

Environmental activities Kongsberg Maritime AS consider environmental aspects during product development. Kongsberg Maritime AS has also traditionally focused on protecting the environment through recycling of goods and saving energy. As a Norwegian company, Kongsberg Maritime AS shall live up to Norwegian laws and regulations. In addition the company has an obligation to future generations to protect the environment. Kongsberg Maritime AS therefore wishes to find the best solutions in short and long term perspective.

Divisions

Kongsberg Maritime AS is divided in five Divisions: • Marketing & Sales are distributed in all locations • Process Automation are located in Kongsberg and Horten • Subsea and Marine IT are located in Horten • Offshore & Marine is located in Kongsberg, Horten and Trondheim. The divisions, through the leadership of their Executive Vice Presidents, have the responsibility of implementing the strategic plans, achieving the planned goals and financial results. The Executive Vice Presidents carry out the quality process in cooperation with the Quality Management by: • Communicating and implementing the quality policy. • Τailoring the Quality Management System to their own Divisions, with regard to market, product and customer requirements, and providing effective implementation. • Εnsuring that projects and activities conforms to relevant laws and regulations. • Εncouraging the employees to provide inputs to improve the quality process, within the Division and on Company level. • Εstablishing goals for achieving improvement within the Divisions.

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Marketing & Sales Division The Marketing and Sales Division has the responsibility for marketing, sales and customer relation management. Process Automation Division Process Automation Division is responsible for development, delivery and support of process control systems, safety systems and dynamic process simulators. Subsea Division Subsea Division has the responsibility for development, delivery and support of hydroacoustic instrumentation products and data processing systems for seabed mapping and underwater navigation. The Division uses manufacturing resources from Marine Electronics (Simrad AS). Marine IT Division Ship Simulation Department has the responsibility for development, delivery and support of type approved ship simulators. The simulator systems are based on highly detailed simulation models. Offshore &Marine Division Offshore & Marine Division has the responsibility for development, delivery and support of system solutions for Merchant Automation, Integrated Control Systems, Dynamic Positioning & Manoeuvring and Navigation. The Technology Base department develops basic hardware and software components to some of the other divisions.

Kongsberg Gruppen ASA

Kongsberg Business DevelopmenT *)

Kongsberg Maritime AS

Finance

B usiness support - HR - QM/HSE/IPR/Admin - IS/IT systems

Business development

Marketi ng & Sales

Offshore & Marine

Kongsberg Defence & Aerospace AS *)

Process Automation

Subsea

Marine IT *)

Marine Electronics (Simrad AS) *)

Vessel Traffic Systems/Port IT (Norcontrol IT) *)

Satelitte Positioning, A IS (Seatex AS) *)

Ship Simulators (Cd90005)

*) These companies are not covered by this Handbook.

HDB-0000 Rev

Date

Written by

Checked by

Approved by

1 2

05.01.04

ØF

FHK

TK

14.06.05

RA

FHK

TK

Kongsberg Maritime AS Strandpromenaden 50 P.O.Box 111 N-3191 Horten, Norway

Telephone: +47 33 03 41 00 Telefax: +47 33 04 44 24 www.kongsberg.com