asme section iii quality manual i3 r1 03ja2011

SSAANNDDVVIIKK MMAATTEERRIIAALLSS TTEECCHHNNOOLLOOGGYY P.O. Box 1220, Scranton, PA 18501-1220 Phone: (570) 585-7556 Q.A. Fax: (570) 585-7540

QQUUAALLIITTYY MMAANNUUAALL AASSMMEE CCOODDEE SSEECCTTIIOONN IIIIII

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PPRROODDUUCCTT AARREEAA TTUUBBEE ******** PPRROODDUUCCTT AARREEAA WWIIRREE AANNDD HHEEAATTIINNGG TTEECCHHNNOOLLOOGGYY

Issue 3 Revision 1

JANUARY 3, 2011

UNCONTROLLED COPY

MAILING ADDRESS: PLANT LOCATION:

SSAANNDDVVIIKK MMAATTEERRIIAALLSS TTEECCHHNNOOLLOOGGYY P.O. Box 1220 982 Griffin Pond Road Scranton PA 18501-1220 Clarks Summit PA 18411-9214

SANDVIK MATERIALS TECHNOLOGY QUALITY MANUAL ASME Code Section III

PRODUCT AREA TUBE * * * PRODUCT AREA WIRE AND HEATING TECHNOLOGY

Section: 0.1 INTRODUCTION AND GENERAL Issue: 3 Revision: 1 Date: 01/03/2011Table of Contents Page: 1 Of: 3 Section Title Rev. No. Rev. Date

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Cover Page 1 01/03/2011 0 INTRODUCTION AND GENERAL 0.1 Table of Contents 1 01/03/2011 0.2 Glossary 1 01/03/2011 0.3 Introduction 1 01/03/2011 0.4 Procurement and Supply of Tubular and Welding Products

per ASME Code Section III from Other Material Organizations

0 04/08/2009

1 RESPONSIBILITY AND ORGANIZATION 1.1.1 General 0 04/08/2009 1.1.2 General - Planning and Contact Review 0 04/08/2009 1.2 Scope and Applicability 0 04/08/2009 1.3.1 Organization – Quality Policy and Management Statement of

Authority 0 04/08/2009

1.3.2 Organization – Responsibility and Authority 1 01/03/2011 1.3.3 Organization – Organizational Charts 1 01/03/2011 1.3.4 Organization – Management Review 0 04/08/2009 2 PERSONNEL 2.1 Indoctrination, Training and Qualification of Personnel 0 04/08/2009 2.2 Personnel Records 0 04/08/2009 3 PROGRAM DOCUMENTATION 3.1 Quality Manual 0 04/08/2009 3.2 Procedures, Instructions, and Drawings 0 04/08/2009 3.3 Document Control 1 01/03/2011 3.4 Quality Assurance Records 0 04/08/2009 3.5 Records of Examinations and Tests 0 04/08/2009 4 Intentionally Skipped





5 CONTROL OF PURCHASED MATERIALS, SOURCE MATERIALS,

AND SERVICES

5.1 General 0 04/08/2009 5.2 Sources of Materials, Source Material, and Services

including the Approval and Control of Suppliers of Source Material and Service

1 01/03/2011

5.3 Intentionally Skipped Intentionally Skipped

5.4 Procurement Document Control 0 04/08/2009 5.5 Utilization of Unqualified Source Material 0 04/08/2009 5.6 Verification of Purchased Material, Products and Services 0 04/08/2009 5.7 Direct Shipment of Material from a Material Organization 1 01/03/2011 6 INDENTIFICATION, MARKING, AND MATERIAL CONTROL 6.1 General 0 04/08/2009 6.2.1 Marking Method and Indentification of Completed Material -

Tube 0 04/08/2009

6.2.2 Marking Method and Indentification of Completed Material - Wire

0 04/08/2009

6.4 Welding and Brazing Materials Identification 0 Not Applicable 7 PROCESS CONTROL 7.1.1 General 0 04/08/2009 7.1.2 Special Processes 0 04/08/2009 7.1.3 Maintenance of Equipment 0 04/08/2009 7.2 Manufacturing Process Control 0 04/08/2009 7.3 Welding Not Applicable 7.4 Handling, Storage, Shipping, and Preservation 0 04/08/2009 8 CONTROL OF EXAMINATIONS, TESTS, AND NONCONFORMING

MATERIAL

8.1.1 Inspection, Examination, and Test Control - Inspection 0 04/08/2009 8.1.2 Inspection, Examination, and Test Control - Testing 0 04/08/2009 8.1.3 Inspection, Examination, and Test Control – Records 0 04/08/2009 8.2 Control of Measuring and Test Equipment 0 04/08/2009 8.3 Discrepancies in Measuring and Test Equipment 0 04/08/2009 8.4 Inspection and Test Status 0 04/08/2009 8.5 Control of Nonconforming Material 0 04/08/2009





9 AUDITS AND CORRECTIVE ACTION 9.1 Audits 1 01/03/2011 9.2 Corrective Action 0 04/08/2009 10 CERTIFICATION REQUIREMENTS 0 04/08/2009 11 FORMS AND DOCUMENTS 11.1 List of Forms and Documents 0 04/08/2009 Manual Revision Approval:

01/03/2011 Keith M. Hottle Date Director, Quality and Metallurgy



Section: 0.2 Introduction and General Issue: 3 Revision: 1 Date: 01/03/2011Glossary Page: 1 Of: 12

G:\Quality Assurance\Controlled Documents\ASME Manual\Issue 3 Revision 1\0-2 Issue 3 Rev 1.DOC

Accepted Order Agreed requirements between Sandvik Materials Technology and customer

transmitted by any means.

Approval An act of endorsing or adding positive authorization or both, indicated by 5

stamp, initial, or employee identification number and a date of the approval.

Approved Supplier A supplier that has been evaluated and approved by Sandvik Materials

Technology in accordance with requirements of ASME Code Section III

NCA-3800 to supply qualified source material for conversion to material, or 10

provision of services, to Sandvik Materials Technology.

Audit A documented evaluation performed to verify, by examination of objective

evidence, that those selected elements of a previously approved quality

program have been developed, documented, and implemented in 15

accordance with specified requirements. An audit does not include

surveillance or inspection for the purpose of process control, or acceptance

of material or items.

Certification The act of verifying and attesting in writing that documents, processes, 20

procedures, source material, material, products, or the qualification of

personnel are in accordance with specified requirements.

Certified Material Code material which is in accordance with Certified Material Test Report

(CMTR) specified requirements, including the actual results of all required 25

chemical analyses, tests, and examinations. For non-Code material and

products, see Certification.





Certified Material A document attesting that the material is accordance with specification

Test Report (CMTR) requirements, including the actual results of all required chemical analyses,

tests, and examinations.

Contamination Foreign materials such as mill scale, dirt, oil, chemicals; any matter that

renders a fluid, solid or surface impure and unclean according to preset 5

standards of acceptable cleanness.

Contract See Accepted Order.

Continuous Actions taken continuously throughout the organization to increase the 10

Quality effectiveness and efficiency of activities and processes to provide added

Improvement benefits to both the organization and its customer.

Code American Society of Mechanical Engineers Boiler and Pressure Vessel Code

15

Control Procedure Instructions and Procedures issued and controlled by Quality Assurance.

and Instruction Commonly referred to as "CPI's", these instructions and procedures shall be

approved by Quality Assurance. These CPI's are sometimes referred to as

"Quality Assurance Procedures" and "detailed specifications written

instructions and procedures". 20

Corrective Action Measures taken to rectify conditions adverse to quality, and, when

necessary, to preclude repetition.

Customer The organization doing the buying from Sandvik Materials Technology. 25

Customer Order The document issued by a customer for buying products from Sandvik

Materials Technology.





Defective Material Material that does not meet specified requirements.

Designee Any person that performs a specific activity at the request of the person

primarily responsible for the activity. The person designating the activity 5

retains primary responsibility for the activity performed by the designee.

Discrepancy A condition outside of an established tolerance or requirement.

Documentation Any written or pictorial information describing, defining, specifying, reporting 10

or certifying activities, requirements, procedures or results.

Document Control Those measure established to control the preparation, review, release,

issuance, and disposition of documents, such as purchase orders,

specifications, instructions, procedures, and drawings, including changes 15

thereto, that describe or document activities affecting quality.

Examination Specific actions by qualified personnel using qualified procedures to verify

that source material and material are in accordance with specified

requirements. This term, when used in conjunction with qualification of 20

personnel to perform quality related activities, shall mean written

examination.

Executive Sandvik Materials Technology - NAFTA President and staff which

Management includes the managers of the four operating product areas/sales units and 25

support services. (Company Top Management)

Final Inspection Inspection which is performed on finished product before release for shipping

or stocking. For Code requirements it is performed by Quality Assurance.





Heat of Material Material produced from the same melt of metal.

(Heat Number)

Hydrostatic Test The pressurization of material to a test pressure using water or other liquid 5

as a testing medium with required examination per the Code

In-Process Inspection Inspection which is performed during the manufacturing in an effort to detect

defects prior to further processing.

10

Incoming Inspection which is performed on source material and material prior to or

Inspection after being assigned to a work order before start of manufacturing. For Code

requirements it is performed by Quality Assurance.

Inspection The actual act of verifying the conformance of source material and material 15

to specified requirements for the purpose of acceptance or rejection.

Inspector A qualified employee of an organization whose duties include verification of

quality-related activities such as inspection, test and/or examination.

Item Master List of source material and/or material used to manufacture finished product. 20

Lot of Covered The quantity of electrodes produced from the same combination of heat of

Electrodes material and dry batch or dry blend of covering mixture. Where applicable,

(Lot Number) military lot definitions shall apply.

25

Material Metallic materials manufactured to an SA, SB, SFA, or any other material

specification permitted in Section III of the Code, and that are manufactured,

identified and certified in accordance with the requirements of Section III of

the Code.





Material See “Certified Material Test Report” and Certification.

Certificate

Material An organization certified by holding Quality System Certificate issued by 5

Organization (Metallic) ASME to provide materials or services in accordance with the

Accredited requirements of ASME Code Section III, NCA-3800.

Material An organization surveyed and qualified by to provide materials and services

Organization (Metallic) in accordance with the requirements of ASME Code Section III, NCA-3800 10

Qualified to the accredited Material Organization (Sandvik Materials Technology) that

performed the qualification.

Material Specification A document that establishes the requirements of material.

15

Nonconformance A deficiency in characteristic, documentation, or procedure which renders an

item unacceptable or indeterminate. Examples on nonconformance include:

physical defects, test failures, incorrect or inadequate documentation, or

deviations from prescribed processing, inspection or test procedures.

20

Nondestructive The use of inspection methods intended to detect surface and internal

Examination (NDE) discontinuities in material that do not affect or change the items being

and Nondestructive evaluated. Nondestructive testing methods are those which do not affect or

Testing (NDT) change an item, such as radiographic, ultrasonic, liquid penetrant, magnetic

particle, eddy current and visual examination and leak testing. 25

Operating Directives Documented work instructions prepared by Production and approved,

and Instructions issued and controlled by Quality Assurance.

(ODIN's)





Order

Acknowledgment See Sales Order.

Package A wrapping or container including its content of material. 5

Performance A documented evaluation of material supplied by a previously

Assessment audited and accepted Quality System Program to verify continued

compliance with Code requirements. Performance assessments shall

document the effectiveness of the qualified material organization’s quality 10

system program and meet the following requirements: (1) Assessment

frequencies shall be commensurate with the schedule of production and

procurement, but shall be conducted at least once annually during the

interval in which material or source material are controlled, (2) Assessments

shall include a documented review of the qualified material organization’s 15

history of conditions adverse to quality, nonconformances, and corrective

actions, and (3) Assessments shall include a documented review of periodic

testing performed since the last assessment to demonstrate conformance of

sample materials to selected requirements of the material specification.

Such testing shall be conducted during the period since the last assessment 20

by the party performing the evaluation.

Procedure A document that specifies or describes how an activity is to be performed. It

may include methods to be employed, equipment or materials to be used

and sequence of operation. 25

Process Control A planning tool used to summarize and document for key product and key

Plan control characteristics, the capability of process/measuring system and the

plan to control the process.





Process Outline The sequential process steps to be taken for manufacture, testing,

examination, and inspection of final product or material.

Procurement Contractually binding documents that identify and define the requirements 5

Documents which materials or services must meet in order to be considered acceptable

by the purchaser.

Product Area Term used synomously with division.

10

Product Area Quality Individual assigned to the product area to maintain the operational controls

Professional of the quality assurance program. Titles may include Quality Manager,

Manager – Quality Assurance, Quality Engineer, Sr. Quality Assurance

Specialist, or Quality Assurance Specialist.

15

Product Area Product Area General Manager and staff which includes the managers

Management Team of the major functional areas within each product area.

Product Area Wire Synonomous in this program with Product Area Wire or Welding and Wire

and Heating Division. 20

Technology

Product Requirement That document prepared by Quality Assurance which is used in interpreting

Review Sheet (PRR) and specifying in detail the requirements of a specification or customer order.

Also referred to as "Specification and Order Review", "Specifications 25

Review", "Spec Review" and "Technical Requirement Review" in some

Quality Assurance documents and records.





Purchase Order The document issued by Sandvik Materials Technology for procurement of

materials, products and services.

Qualified Source Metallic products produced by an approved supplier, Material Organization,

or 5

Material Certificate Holder in accordance with the requirements of NCA-3800 or the

output requirements of the qualification process requirements of NCA-

3855.5.

Quality Assurance All those planned or systematic actions necessary to provide adequate 10

confidence that all materials and products designed, manufactured and

supplied are in accordance with the applicable rules of ASME Code Section

III, 10CFR50 Appendix B, and customer order requirements.

Quality Manual A written document that describes the Quality Assurance Program. 15

Quality System A controlled system of planned and systemic actions required to provide

Program adquate confidence that materials conform to the requirements of the rules of

Section III.

Quality Control Measurement of the characteristics of material, products or process to 20

determine conformance to specified requirements.

Quality Control Plan See Process Control Plan

Quality Function The function within Sandvik Materials Technology having the overall 25

responsibility for the Quality System. This function includes the Quality

Assurance Department, Scranton Works,the Materials Laboratory, and

inspection and testing.





Quality Improvement A permanent cross-functional team formed in each product area to

Team (QIT) manage the Continuous Quality Improvement process.

Quality Plan See Process Control Plan 5

Quality System A Certificate issused by ASME that permits an organization to perform

Certificate (QSC) specified Material Manufacturer or Material Supplier activities in accordance

with Code requirrements.

10

Quality System A Material Organization that maintains an ASME Quality System Certificate

Certificate Holder in accordance with the requirements of NCA-3800.

(Metallic)

Quality System A documented system of actions required to provide adequate confidence 15

Program that materials conform to the requirements of the Material Specification and

the rules of ASME Code Section III.

Receiving An act performed on source material and material prior to being assigned

Verification to a work order and on finished goods from outside suppliers to verify to the 20

purchase order type of material, quantity, size, marking, labeling and

condition of the shipment.

Repair (Rework) The process of physically restoring a nonconformance to a condition such

that the material complies with Code requirements. 25

Review An act of looking over or studying a document. A review, resulting in

acceptance, shall be indicated by stamp, employee identification number,

initial or signature and date.





Sales Order Those document sets issued by the Sales Department of Sandvik Materials

Technology used to process a customer order. The Sales Order sets include

the Order Acknowledgment set and the Shipping Order set. the Sales Order

is sometimes referred to as the Order Acknowledgment in documents and 5

records.

Sandvik AB and Parent companies of Sandvik Materials Technology, located in Sandviken

AB Sandvik Materials Sweden.

Technology 10

Sandvik Materials The official name of this company. Sometimes referred to in this Manual as

Technology Sandvik. Certain quality documents may still refer to Sandvik Steel

Company.

15

Shop Order See “Work Order”





Source Material Metallic products used by a Material Organization or Certificate Holder in a

product form conversion process in the manufacture of material [NCA-3851.2

(a) (1)] or in the qualification process based on test and examination to the

requirements of the material specification [NCA-3855.5 (a) (2) and (3)]. 5

Source material may be qualified or unqualified.

Special Process A process, the results of which are highly dependent on the control of the

process or skill of the operator, or both.

10

Specification A concise statement of a set of requirements to be satisfied by a product, a

material or process indicating whenever appropriate, the procedure for

determining whether the requirements given are satisfied.

Supplier Any individual or organization that furnishes materials or services in

accordance with a procurement document. 15

Survey A documented evaluation of an organization's ability to perform Code

activities as verified by a determination of the adequacy of the organization's

quality program and by a review of the implementation of the program at the

location of the work. 20

Tender Offer made by Sandvik Materials Technology in response to an invitation to

satisfy a contract award to provide product.

Testing An element of verification for the determination of the capability of materials 25

or products to meet specified requirements by subjecting the materials or

products to a set of physical, mechanical, chemical, environmental or

operating conditions.





Traceability The ability to verify the history , location, or application of material by means

of recorded identification.

Traveler See “Work Order”

5

Tubular Products Synonomous in this program with Product Area Tube.

Division

Unqualified Source Source material not produced by a Material Organization or approved

Material supplier in accordance with the requirements of ASME Code Section III 10

NCA-3800.

Vendor See Supplier

Verification A review to ensure that activities have been performed and documented in 15

accordance with applicable requirements.

Wire Products Wire for non-welding applications, such as spring wire and wire for medical

devices. Material for Wire Products may meet the Code, but the product as

defined above is not included in ASME Code Section III. 20

Work Instruction See Operating Directives and Instructions

Work Order That document or document set used by Production which outlines the

sequence of operations used in manufacturing. The Work Order is 25

sometimes referred to as "Traveler", "Shop Order", and "Mill Order".



Section: 0.3 INTRODUCTION AND GENERAL Issue: 3 Revision: 1 Date: 01/03/2011Introduction Page: 1 Of: 1


The purpose of this Quality Manual is to describe and summarize the Quality System Program

requirements per ASME Code Section III, nuclear safety-related requirements and certain MIL

applications and requirements for manufacturing and supplying of products from the Product

Area Tube and Product Area Wire.

5

The Quality System Program is designed to specifically meet the ASME Code Section III NCA-

3800.

The Quality System Program is also intended to meet the requirements of 10CFR50, Appendix B,

10CFR Part 21, and ASME NQA-1, 1989 Edition and 1994 Edition, 1995 Addenda, Basic 10

Requirements.

A separate quality manual exists to identify requirements per ISO 9001/ANSI Q9001 for tubular

products, welding and wire products, as well as products from the Spring Products Division and

Product Area Strip. 15

This Issue 3, Revision 1 of the Manual addresses editorial corrections to address title

inconsistencies, organizational changes in Product Area Tube, Product Area Wire and Heat

Technology, and Quality and Metallurgy and to remove the requirement that suppliers of

subcontracted auditing services must be evaluated using Appendix 2A-3 of ANSI/ASME NQA-1, 20

1994 Edition, 1995 Addenda.


PRODUCT AREA TUBE * * * PRODUCT AREA WIRE

Section: 0.4 INTRODUCTION AND GENERAL Issue: 3 Revision: 0 Date: 04/08/2009Procurement and Supply of Tubular and Welding Products per ASME Code Section III from Other Material Organizations Page: 1 Of: 3


As a Material Organization, Sandvik Materials Technology supplies material purchased from

accredited or qualified Material Organizations in accordance with the ASME Code Section III.

Products purchased and supplied are ferrous and nonferrous bars, seamless and welded without

filler metal tubular products, bare and covered electrodes, bare wire, strip electrodes, welding flux,

powdered filler metal, tube hollows, hot rolled rod and wire, and complementary products such as 5

plate, flanges, fittings, and forgings.

Qualification and approval of Material Organizations from which material is procured is given by the

Director/Manager, Quality and Metallurgy, per Section 5, "Control of Purchased Materials, Source

Materials, and Services", of this Manual. 10

Procurement of material from these approved Material Organizations, listed on the Approved

Suppliers List for ASME Section III and Military Applications, is controlled by the use of Sandvik

internal specifications and additional procurement information as applicable, stated on the purchase

order, which is reviewed and approved by the Product Area Quality Professional when specified in 15

Section 5, "Control of Purchased Materials, Source Materials, and Services", of this Manual.

Control of purchased material is accomplished by a receiving verification per Section 5, "Control of

Purchased Materials, Source Materials, and Services", of this Manual. Before any material is placed

in inventory, the Product Area Quality Professional (or designee) verifies all receiving verification 20

steps to assure that received material meets the requirements per the purchase order.

Verification is documented by Product Area Quality Professional (or designee) by reviewing and

approving the Certified Materials Test Report or Certification. Approval is indicated by stamping,

signing, and dating the Certified Material Test Report or Certification. In addition, the material is 25

released by Quality Assurance in the computer system via the assignment of a nuclear quality symbol

for the relevant heat number and lot number.





Materials kept in inventory shall be identified and traceable to the procurement documents by heat/lot

number and purchase order number. When a need exists to transfer identification marking of

material during re-line marking of pipe and tube after cleaning, and re-label and re-packaging of

welding material, controls are established by performing the identification marking transfer under a

work order. See Section 7, "Process Control" and Section 6, "Identification, Marking, and Material 5

Control" of this Manual. The transferred identification marking shall, as a minimum, contain the same

information as prior to the transfer.

Customer orders are reviewed by Inside Sales and Quality Assurance. Sales will issue the Sales

Order (EXHIBIT 1) indicating the relevant Product Requirement Review Sheet (EXHIBITS 2 and 3), 10

previously approved by the Product Area Quality Professional per Section 3, "Contract Review", of

this Manual. The Product Requirements Review Sheet (EXHIBITS 2 and 3) summarize the customer

requirements. Reference to the Product Requirement Review Sheet shall be made by Inside Sales

on the Sales Order.

15

Application of material to the customer order as specified on the Sales Order, by Inside Sales, is

done by Inventory Control.

Additional material testing and nondestructive examination required per the customer order are

indicated by the Product Area Quality Professional on the Product Requirement Review Sheet. 20

Controls of these activities are maintained by the Product Area Quality Professional per Section 8,

"Control of Examinations, Tests, and Nonconforming Material" of this Manual.

Unqualified source material applied to a customer order shall be purchased, tested and controlled

under the provisions of Section 5.5, "Utilization of Unqualified Source Material", of this Manual. 25

Prior to shipping, the identification marking of tube and pipe and welding material is verified by

warehouse personnel. For tube and pipe, this is documented through an electronic transaction in the





mainframe computer system. For welding material, the packing note is signed and dated by the

warehouse personnel.

The Product Area Quality Professional (or designee) reviews the sales/shipping order, the Material

Organization's Certified Material Test Report, or the Supplier’s certification, as applicable, work 5

orders, and other test and examination records as applicable. Approval of records is indicated by the

Product Area Quality Professional/Designee's signature and date on the Sandvik certification of

materials as indicated below.

When the reviews per above by the Product Area Quality Professional show that the requirements 10

per the customer order have been met, a Sandvik Material Certificate is prepared and signed by the

Director/Manager, Quality and Metallurgy, or appointee, in accordance with Section 10, "Certification

Requirements" of this Manual.

All applicable certifications received from other Material Organizations or Suppliers shall be 15

transmitted to the customer together with the Sandvik Material Certificate at time of shipment.



Section: 1.1.1 RESPONSIBILITY AND ORGANIZATION Issue: 3 Revision: 0 Date: 04/08/2009General Page: 1 Of: 1

G:\Quality Assurance\Controlled Documents\ASME Manual\Issue 3 Revision 0\1-1-1 Issue 3 Rev 0.DOC

The purpose of this Quality Manual is to describe and summarize the Quality System Program

requirements per ASME Code Section III, nuclear safety-related requirements, and certain MIL

applications and requirements for manufacturing and supplying of products from the Product

Area Tube and Product Area Wire.

5

The Quality System Program Program is intended to assure the quality during all phases of the

manufacturing and supply activities for Product Area Tube and Product Area Wire. The Quality

System Program Program is planned, documented, implemented and maintained to specifically

meet the requirements of ASME Code Section III NCA-3800.

10

The Quality System Program Program, as documented, addresses the technical aspects and

provides for the planning and accomplishment of those activities affecting quality. The Quality

System Program Program, as documented, provides for the control of special processes,

processes, inspection and test equipment, tools, and the requisite skills to ensure that the

required quality is attained and verified. 15



Section: 1.1.2 RESPONSIBILITY AND ORGANIZATION Issue: 3 Revision: 0 Date: 04/08/2009General - Planning and Contract Review Page: 1 Of: 4


In order to assure that quality requirements are met, to suit Sandvik’s method of operation, and to be

consistent with all other requirements of the Quality System Program, the format used for Quality

Planning is process outlines (shop travelers, product requirement reviews, etc.).

The process outline is a documented listing of all manufacturing, testing, examination, inspection and 5

other control steps, such as customer hold points. Applicable Control Procedures and Instructions

(CPI’s) are indicated by procedure number on the Process Outline.

Specific Process Control Plans/Quality Control Plans (EXHIBIT 18) are prepared, revised, issued and

controlled by Quality Assurance when required by customer orders or when deemed meaningful and 10

appropriate by Quality Assurance.

Written procedures in the form of Control Procedures and Instructions (CPI’s) are established and

maintained for contract review and for the coordination of these activities.

15

The Sales Department in each Product Area is responsible for receipt of all requests for quotations

and all customer orders and contracts. The responsible salesperson will identify and review all

customer requirements associated with the request for quotation or the order. This initial review is

conducted for the purpose of confirming that all requirements can be met. Order changes or

amendments are subject to the same review process as a new order. 20

Before submission of a quotation (tender) or at the acceptance of an order, any unclear or incomplete

requirements shall be resolved with the customer as soon as possible to prevent errors or delays in

completing the order. If the sales person has concerns about manufacturing capabilities, Production

Management and/or Process Engineering is to be contacted and capabilities confirmed. Concerns 25

with regard to inspection and testing requirements shall be resolved with the Quality Assurance

Department. The Traffic Department or , in the case of tubular products, the North American

Distribution Center are to be contacted should there be questions about handling and shipping





requirements. Any exceptions to or deviations from stated written requirements shall be

communicated in writing to the customer.

Verbal orders are not acceptable for Code work.

5

The sales person is responsible for determining if the customer order conforms to one or more of the

following conditions which require additional review by the Quality Assurance Department per

applicable Control Procedure Instruction (CPI):

1. Orders for nuclear material to be manufactured to ASME Section III requirements, where class, 10

edition and addenda are specified.

2. Orders having additions to, or invoking specific provisions of the ASME Code Section III.

3. Orders intended to fulfill any government contract shipping directly to a government facility from 15

Sandvik Scranton.

4. Orders requiring source inspection of any kind to be performed at Sandvik Scranton.

5. Orders having unique requirements or product specifications written by the customer or end user. 20

6. Orders requiring additions or exceptions to, or deviations from, established product specifications

or standards, and/or internal procedures.

If the order meets any of the conditions defined above, copies of the customer purchase order, 25

government contract (as applicable), and all supporting documentation are submitted to the Quality

Assurance Department for further review before continuing.





Documents reviewed or approved by the Product Area Quality Professionals are customer orders,

sales orders and work orders. For orders with high integrity requirements, such as ASME Code

Section III, a customer order and specification review is performed by Product Area Quality

Professionals, and a Product Requirement Review Sheet is issued by the Product Area Quality

Professionals (EXHIBITS 2 and 3), which will specify what requirements must be fulfilled for the 5

effective and correct processing of the customer order. When Control Procedures and Instructions

are referenced on a Product Requirement Review Sheet, no revision level for Control Procedures

and Instructions is required. All operations shall be completed to the latest revision of the referenced

Control Procedures and Instructions as controlled in Section 3.3 of this manual. Personnel in Sales,

Production, and Quality Assurance are responsible for the execution of the details documented on 10

the Product Requirement Review Sheet. A hard copy or electronic copy of the Product Requirements

Review Sheet is made available to Sales and Production.

Quality Function personnel review, prior to shipping, in conjunction with the certification of the

material the Sales Order, (EXHIBIT 1) which is issued by Sales to Production to cover the application 15

of material either inventoried or manufactured by Sandvik to a Customer Order. This Order specifies

type of product, grade, size, quantity, customer name and, when available, heat number and/or lot

number. Special order requirements which have been documented on the Product Requirement

Review Sheet which Quality Assurance has performed on the original customer order are also

indicated or referenced on the sales order. 20

If a customer requires special instructions or procedures, they shall be documented in a Control

Procedure and Instruction or a Product Requirement Review Sheet issued by the Quality Assurance

Department.

25





If a customer change notice or amendment is received during the processing of an order, previously

reviewed and approved by Quality Assurance, the change notice or amendment is sent to the

Product Area Quality Professional for review and approval. If necessary, the original Product

Requirement Review Sheet will be revised to show any changed or additional requirements that must

be fulfilled for the effective and correct processing of the change order. The Product Area Quality 5

Professional will immediately hand carry copies of or electronically distribute the revised specification

review to the foreman, production control and inspector in the plant where the material is being

processed. The Product Area Quality Professional or Production Control will show the latest Product

Requirement Review Sheet revision number on all travelers and test reports, and sign and date the

changes. The Product Area Quality Professional will review all manufacturing steps completed to 10

insure that the steps do not violate the requirements of the change order. If found acceptable, the

Product Area Quality Professional or designee will sign and date the traveler. If not acceptable, the

Product Area Quality Professional will issue a Non-Conforming Material Report (EXHIBIT 17) and

reject tag (EXHIBIT 5) in accordance with Section 8.5, "Control of Nonconforming Material" of this

Manual. 15

All contract review records shall be maintained per Section 3.4, “Quality Assurance Records”, per this

Manual.



Section: 1.2 RESPONSIBILITY AND ORGANIZATION Issue: 3 Revision: 0 Date: 04/08/2009Scope and Applicability Page: 1 Of: 3


General

The manufacturing programs and products stored, supplied and shipped by Sandvik Materials

Technology per Code requirements are handled by two product areas, namely Product Area

Tube and Product Area Wire.

5

The scope of activities include the following:

− The shipment of material from qualified Material Organizations to parties other Sandvik

Materials Technology.

− The qualification of non-accredited Material Organizations.

− The utilization of unqualified source material. 10

− The approval and control of suppliers.

Product Area Tube

The tubular products operations at Sandvik Materials Technology include manufacturing,

warehousing, and shipping of ferrous and nonferrous seamless pipe and tubes. Per ASME Code 15

Section III, this is done as a Material Organization in accordance with the requirements of ASME

Code Section III, NCA-3800.

The manufacturing processes used for seamless pipe and tubes are reduction by pilgering of

tube hollows received either from AB Sandvik Materials Technology, Sandviken, Sweden or from 20

other approved suppliers of source material. Examples of other processes applied during

manufacturing are degreasing, cleaning, annealing, straightening, belt polishing, cutting, testing,

inspection, examination, marking, and packaging.

The operations also include activities as a material supplier for procurement, receiving 25

verification, warehousing, testing, examination, inspection, and shipping of ferrous and

nonferrous bars, tube hollows, and pipe and tube, seamless and welded without filler metals. Per





ASME Code Section III, this is done as a Material Organization by furnishing material purchased

from Material Organizations or source material purchased from Approved Suppliers under

provisions necessary to assure compliance with the ASME Code Section III. See Section 0.4,

“Procurement and Supply of Tubular and Welding Products per ASME Code Section III from

Other Material Organizations” of this Manual. No weld repair will be performed even when 5

permitted by the applicable material specification(s).

Tubular products manufactured and supplied by Sandvik Materials Technology are processed,

tested, and inspected in accordance with the requirements of applicable ASME Codes and ASTM

specifications, or other required standards or customer specifications. 10

Product Area Wire

The manufacturing, warehousing and shipping of welding materials at Sandvik Materials

Technology include various sizes of bare welding wire, electrodes and rods, and covered welding

electrodes for ferrous and nonferrous materials. Per ASME Code Section III requirements, this is 15

done as a Material Organization in accordance with the requirements of ASME Code Section III,

NCA-3800.

The bare welding wire and rod operations include but are not limited to hot rod preparation,

drawing, annealing, spooling, coiling, cutting, straightening, polishing, cleaning, labeling, 20

packaging, alloy identity testing, inspection and final acceptance testing.

As a material supplier, bare and covered electrodes, bare welding wire, strip electrodes, welding

flux, powdered filler metal, and hot rolled rod and wire are procured, warehoused, and shipped.

25

The operation includes procurement, receiving verification, warehousing, labeling, packaging,

alloy identity testing as applicable, inspection and final acceptance testing as applicable. Per





ASME Code Section III, this is done as a Material Organization, and material is purchased from

Material Organizations or source material is purchased from Approved Suppliers, and controlled

under provisions necessary to assure compliance with the ASME Code Section III. See Section

0.4, "Procurement and Supply of Tubular and Welding Products per ASME Code Section III from

other Material Organizations" of this Manual. 5

Welding materials manufactured, supplied and shipped by Sandvik Materials Technology are

processed and inspected according to the requirements of applicable ASME Codes, and AWS

specifications, or other required standards or customer specifications.



Section: 1.3.1 Issue: 3 RESPONSIBILITY AND ORGANIZATION Revision: 0 Date: 04/08/2009 Organization - Quality Policy and Management Statement of Authority Page: 1 Of: 3


The Quality Policy of Sandvik Materials Technology reads:

“Our key directive is complete customer satisfaction. We provide our customers with

products and services that conform to all requirements. We will develop quality

objectives at appropriate levels to ensure those requirements are effectively

addressed in our business. We are fully committed to continuous improvement as a 5

strategic approach to achieve these quality objectives. Our policy and associated

quality objectives are reviewed and communicated to all employees on a regular

basis."

This policy is based in its entirety on the AB Sandvik Materials Technology, Sweden

Corporate Quality Policy. 10

This policy is defined by the Company’s Executive Management and is considered relevant to

Sandvik Materials Technology’s organizational goals and the needs and expectations of all

customers.

15

The system for causing quality shall be prevention rather than appraisal and defect detection. All

employees are encouraged to pursue never-ending improvement in quality. To support Sandvik’s

quality objective and policy, Quality System Programs and action plans for continuous quality

improvement shall be established within each Product Area of Sandvik Materials Technology. These

systems and action plans shall be commensurate with the products and services supplied by the 20

Product Areas.

Sandvik Materials Technology’s Executive Management shall ensure that this policy is understood,

implemented and maintained at all levels of the organization.

25

This Quality Manual describes and summarizes Product Area Tube's and Product Area Wire's Quality

System Program for manufacturing and supplying of tubular products and welding materials in





accordance with the Quality System Program's requirements of ASME Code Section III NCA-3800

and 10CFR50, Appendix B, and products requirements per ASME, ASTM and AWS specifications,

and other standards.

This Quality System Program shall remain in effect as long as Sandvik Materials Technology shall 5

manufacture and supply materials and products meeting the requirements of ASME Code Section III

and above identified Quality System Programs standards.

Further, the Manual describes the responsibilities of the Quality and Metallurgy Function and other

functions involved in the execution of the Quality System Program. The intention is also to give 10

information on the Company's policy in quality matters and describe the resources available for

quality assurance, testing, examination, and inspection. For internal use, there are detailed Control

Procedures and Instructions and Operating Directives and Instructions available, which deal with the

distribution of responsibility of individuals in the organization as well as work functions attached to

product and service quality within Sandvik Materials Technology. 15

The Quality System Programs defined in this Manual are supported by all levels of Management

within Sandvik Materials Technology. The Director/Manager, Quality and Metallurgy, has the final

authority and the responsibility to approve and implement the Quality System Programs defined in the

Manual. 20

All persons or groups given duties and responsibilities by this Manual or its supporting procedures

shall carry out those duties and responsibilities as the Manual or procedures describe.





In the event of conflict between the Quality and Metallurgy Function and other functions, the problem

shall be referred to the next higher level of Management for resolution. The resolution shall not be in

conflict with the ASME Code Section III, other applicable standards, or this Manual.

5

P. Frosini President, Sandvik Materials Technology

Date: 04/08/2009



Section: 1.3.2 RESPONSIBILITY AND ORGANIZATION Issue: 3 Revision: 1 Date: 01/03/2011Organization - Responsibility and Authority Page: 1 Of: 4


Quality and Metallurgy Function

All levels of management within Sandvik Materials Technology have given the Quality and Metallurgy

Function the authority, responsibility and freedom to:

A. Initiate action which results in solutions to prevent the occurrence of any nonconformities relating

to product, process and quality system. 5

B. Identify and record any quality problems related to product, process and quality system.

C. Initiate, recommend or provide solutions through designated channels.

D. Verify the implementation of solutions.

E. Control further processing and delivery of nonconforming product until the deficiency or

unsatisfactory condition has been corrected. 10

The Quality and Metallurgy Function, upon notification by the inspectors or for any justifiable reason,

has the authority to stop work for any production activity which may be in noncompliance with the

established requirements.

15

The Director/Manager, Quality and Metallurgy is responsible for the Quality and Metallurgy Function

and for the overall management of the Quality Systems in an effective and economical manner. He

reports to the President, Sandvik Materials Technology. In this function, he is sufficiently

independent from the pressure of production. He has direct access to the management level where

appropriate action can be initiated, and he reviews and reports regularly on the adequacy and 20

effectiveness of the Quality Systems. He is also responsible for the development, issuance and

implementation of quality policies, instructions and procedures necessary to comply ASME Code

Section III requirements, and any other quality requirements.

The Director/Manager, Quality and Metallurgy is also responsible for the issuance of quality system 25

procedures in the form of Control Procedures and Instructions and assures that all procedures and

methods comply with customer order(s) and ASME Code Section III requirements and are in line with

the established quality policy stated in this Manual. He is also responsible for monitoring of the





inspection, testing, and examination functions and the control and issuance of Certified Material Test

Reports.

It is the responsibility of the Product Area Quality Professionals and Technicians to assist the

Director/Manager, Quality and Metallurgy with the above functions and to investigate customer 5

complaints, evaluate customer orders and specifications, maintain the status of rejected material, and

report all discrepancies encountered to the Director/Manager, Quality and Metallurgy.

The Director/Manager, Quality and Metallurgy and the Product Area Quality Professionals have the

right to delegate quality assurance activities to qualified individuals within the Quality Assurance 10

function.

The Director/Manager, Quality and Metallurgy is responsible for the operation of the Materials

Laboratory and the Material Certificate Processing. The Materials Laboratory personnel establishes

test methods for accurate chemical analysis and physical testing. He supervises the Materials 15

Laboratory Group Leader/Supervisor who manages the Materials Analyst(s) and Metallographer for

performance of chemical and physical testing.

If the NDE Professional is a Sandvik Materials Technology employee, the Nondestructive Testing

Engineering function shall be responsible for SNT-TC-1A Level III activities. 20

The testing and inspection personnel are responsible for the performance of tasks as defined in the

Control Procedures and Instructions. This includes recording of results of all tests and examinations

performed. They are also responsible for performing work in a manner as directed by the

Director/Manager - Quality and Metallurgy. While testing and inspection personnel are responsible 25

for the performance of many Quality and Metallurgy Functions, The Director/Manager - Quality and

Metallurgy retains the responsibility for final acceptance of the finished material and products and for

auditing or otherwise verifying the execution of Quality and Metallurgy Functions.





Sandvik Materials Technology Management has given the above personnel authority and freedom

required to carry out the responsibilities defined per above. However, the direct responsibility for the

quality of the finished material and products for individual orders lies with the Production

Departments. 5

Non-Quality and Metallurgy Function Personnel

It is the responsibility of persons in departments other than the Quality and Metallurgy Function to

assist in the implementation of actions required to assure compliance with the established Quality 10

System.

It shall be the responsibility of personnel in Purchasing, Production Control and Inventory Control

functions to implement the requirements set forth by Quality Assurance in matters pertaining to

procurement of materials, services and manufacturing supplies to insure compliance with the 15

necessary quality requirements.

It shall be the responsibility of personnel in the Production and Traffic Departments to coordinate and

implement the requirements set forth by with Quality Assurance to insure manufacturing processes

and material handling are carried out in accordance with established Control Procedures and 20

Instructions.

It shall also be the responsibility of personnel in any function to report conditions adverse to the

quality to the Director/Manager, Quality and Metallurgy, whenever such conditions exist.

25

Personnel assigned responsibilities within the Quality System may delegate the performance of the

involved activities to qualified personnel within the same department.





Resources

Resource requirements are identified by Sandvik Materials Technology’s executive management

staff, who also shall provide adequate and trained resources for management, performance of work

and verification activities including internal quality audits. The basis for evaluating needed resources

shall include but may not be limited to the implementation and continued effectiveness of the quality 5

management system, ongoing compliance with customer requirements, and enhanced customer

satisfaction.

Verification of Code activities shall be carried out by personnel independent of those having direct

responsibility for the work being performed. 10



Section: 1.3.3 RESPONSIBILITY AND ORGANIZATION Issue: 3 Revision: 1 Date: 01/03/2011Organization – Organizational Charts Page: 1 Of: 6


Sandvik Materials Technology

The organization of the main functions of Sandvik Materials Technology is outlined in the organization

chart below:

Product Area TubeProduction UnitScranton, PA

Product Area TubeNAFTA Sales Unit

Scranton, PA

Product Area WireScranton, PA

Human Resources

Quality & Metallurgy Finance & Admin.,Central Purchasing, Traffic,

Central, Stores

Information Technology

Strip ProductsBenton Harbor, MI

Spring ProductsScranton, PA

Product Area StripScranton, PA

PresidentSandvik Materials Technology-NAFTA

Scranton, PA

PresidentAB Sandvik Materials Technology

Sandviken,Sweden

Sandvik ABSandviken,

Sweden

Product Area Strip are not covered by this Manual





Product Area Tube

The organization of the Product Area Tube Sales Unit is outlined in the organization chart below:

Vice-PresidentFinance and Administration

PresidentSandvik Materials

Technology - NAFTA

Director,Quality & Metallurgy

Product ManagersSpecial Products

Houston, TX

Sales & Marketing ManagerSpecial Products

Warehouse OperationsScranton, PA

NADC Flow SupervisorScranton, PA

Materials/Inventory Control

Salers OperationsScranton

Sales OperationsHouston

Sales OperationsSupervisor

Warehouse OperationsHTDC

Houston, TX

Warehouse & LogisticsManager

Houston, TX

Sales Operations & LogisticsManager

Scranton, PA

Staff Accounting

Controller(Shared W/ Production Unit)

Scranton, PA

Product ManagersHouston, TX

Product SpecialistHouston, TX

ManagerDistribution & Value Added Services

Houston, TX

Product ManagerHollow Bar and Bar

Product ManagerHigh Temperature

Product ManagerEthylene

Product ManagerHeat Exchanger

Sales ManagerStandardized Products

Scranton, PA

Quality ProfessionalHTDC

Houston, TX

Quality TechnicianTube PU/SUScranton, PA

Quality ProfessionalTube PU

Scranton, PA

Quality ManagerTube SU/PUScranton, PA

Inside SalesScranton, PA

Inside SalesHouston, TX

Inside Sales ManagerScranton, PA

Outside SalesEastern Canada, Southeast

Northeast, Midwest

Outside Sales ManagerEast

Outside Sales ManagerCentral and Western Canada,

West Coast,

Outside Sales ManagerWest

Applications EngineerRefinery

Houston, TX

Applications EngineerNuclear

Houston, TX

Applications EngineerAutomotive

Applications EngineerOil & Gas

Houston, TX

New BusinessDevelopment Manager

Houston, TX

Sales ManagerComplementary Products

Houston, TX

Key Account ManagerOil & Gas, BarHouston, TX

Vice-President/General ManagerProduct Area Tube

Tube AmericasScranton, PA





The organization of the Product Area Tube Production Unit is outlined in the organization chart below:

Vice-PresidentFinance and Administration

Director/ManagerQuality & Metallurgy

Legend:Functional/Technical ReportingAdministrative Reporting

Controller

Product Planning

Material Manager

Maintenance

Maintenance Supervisor

Production

Flow Managers

Process Engineer

Production Manager

Inspection and Testing

Quality ProfessionalTube Product Unit

Quality TechnicianTube Sales Unit/Product Unit

Quality ManagerTube Sales Unit/Product Unit

Communications ManagerTube Product Unit

Production ITAnalyst

Production UnitGeneral Manager

PresidentSandvik Materials Technology

Scranton, PA





Product Area Wire and Heating Technology

The organization of the Product Area Wire and Heating Technology is outlined in the organization

chart below:

Legend:Functional/Technical ReportingAdministrative Reporting

Dry Draw

Lead FacilitatorDry Draw

Process Manager Maintenance

Engineering Manager

Wire Finishing

Flow ManagerWire Finishing

Production Manager

Inventory Control MaterialsProcurement

Planning

MaterialsManager/Supervisor

Customer Service Inside Sales

Inside Sales & Customer ServiceManager/Supervisor

Program Management

Product ManagerConsumer Goods

Key AccountsManager

ManagerMarketing and Business

Adminstration

Division Controller

Product ManagerEnergy

Weld Laboratory

ManagerTechnical Marketing


Sr. Quality Specialist

Vice-President/General ManagerProduct Area Wire

Scranton, PA

Director/ManagaerQuality & Metallurgy

Vice-PresidentFinance & Administration

Outside Sales

ManagerField Sales


Technology - NAFTA





Quality and Metallurgy Function

The Quality and Metallurgy Function is composed of the Quality Assurance Department, the Materials

Laboratories and the Certificate Processing group.

Quality activities for the Spring Products Division in Scranton, Pennsylvania, and the Product Area

Strip in Benton Harbor, Michigan are part of the Quality and Metallurgy Function, but are not

applicable to the ASME Code Section III requirements per this Manual.

The main objectives of the Quality and Metallurgy Function is to develop, implement and maintain

Quality Systems to assure the Company's ability to manufacture and supply tubular products, wire

products, and welding materials; meet applicable codes, standards and customer requirements; and to

manage and facilitate the company’s continual quality improvement process. The activities related to

quality assurance are carried out and executed by the Director/Manager, Quality and Metallurgy,

Product Area Quality Professionals, the materials laboratory personnel, the material certificate

processing personnel, and the testing and inspection personnel.

The organization of the Quality and Metallurgy Function is outlined on the following page.





Quality & Metallurgy Function Organization


Technology - NAFTA

(1) The Level III activities may be addressed as a separate position within the QualityAssurance Department. The level III activities may also be incorporated into a specificposition within the Tube Production Unit. If the position is located within the TubeProduction Unit, the position shall report to the Director/Manager - Quality and Metallurgy ordesignee on NDE issues. An approved subcontractor may also provide this function asnecessary.


Quality Managers/Specialists:Product Area Wire

Spring Products Strip Products

ManagerQuality & Technology

Product Area Strip

Quality TechnicianTube SU/PU


Quality EngineerTube PU

Scranton, PA

Quality EngineerTube SU

Houston, TX

NDE Professional (1)

Quality ManagerTube SU/PU

Materials Analyst(s)

Metallographer

Materials Laboratory Material CertificateProcessing Personnel

Materials LaboratoryGroup Leader/Supervisor

Quality Assurance

Occupational Health& Safety Specialist

Safety & Environmental Manager

Director/ManagerQuality & Metallurgy



Section: 1.3.4 RESPONSIBILITY AND ORGANIZATION Issue: 3 Revision: 0 Date: 04/08/2009Organization - Management Review Page: 1 Of: 2

The Director/Manager, Quality and Metallurgy shall review yearly the adequacy of the entire Quality

System Program and submit a report about this adequacy to the President, Sandvik Materials

Technology. This summary report shall be based on regular cross-functional product area

management review(s) performed by each Product Area. In addition, Sandvik’s executive

management is kept informed on the status, adequacy and effectiveness of the Quality System 5

Program by:

A. Personal communication with Director/Manager, Quality and Metallurgy, and other personnel

directly involved in carrying out the Systems.

B. Review of internal audit reports, including any trends by element.

C. Review of the results of customer/third party audits. 10

D. Review of customer feedback including complaints.

E. Review of corrective action reports and trend analyses.

F. Review of preventive action activities.

G. Review of Quality System Program elements.

H. Process performance results and scrap and rework trends. 15

I. Follow-up actions from previous management reviews.

J. Changes that could affect the quality management system.

K. Recommendations for improvement.

Sandvik executive management, under the direction of the President, Sandvik Materials Technology, 20

shall annually review and document the adequacy and effectiveness of the Quality System Program

to ensure their continuing suitability and effectiveness in satisfying the requirements of ASME Code

Section III and the Company’s Quality Policy and Objectives. This review shall be based on the

information as outlined above and documented in a separate report by the President.



Section: 1.3.4 RESPONSIBILITY AND ORGANIZATION Issue: 3 Revision: 0 Date: 04/08/2009Organization - Management Review Page: 2 Of: 2

At a minimum, the outcome of the management review shall include:

A. Modifications/improvements of the Quality System Program and its associated processes, as

needed.

B. Improvements to customer-related product improvements/enhancements. 5

C. Modifications/reevaluations of required resources.

D. Action(s) to ensure compliance with customer requirements, product/process improvements, and

quality management system improvements.

Modifications of the Quality System Program, if needed, shall be made based on this review. Any

inadequacies or discrepancies found during the Management Review process shall result, at the 10

discretion of the Director/Manager - Quality and Metallurgy, in the issuance of Corrective Action(s).

The Director/Manager, Quality and Metallurgy shall notify ASME of proposed modifications for

approval prior to their implementation.



Section: 2.1 PERSONNEL Issue: 3 Revision: 0 Date: 04/08/2009Indoctrination, Training, and Qualification of Personnel Page: 1 Of: 2


The Quality and Metallurgy Function is responsible for identifying and assuring that the personnel

in the Quality Assurance Department, the Materials Laboratory, the Welding Laboratory, and the

Material Certificate Processing Group are properly trained and qualified. This training shall be

documented. It shall be the responsibility of the Director/Manager, Quality and Metallurgy to see

to it that adequate training in the Quality System Program is provided to Sandvik personnel. 5

Quality and Metallurgy personnel are selected by management on the basis of their qualifications

and their capabilities of maintaining acceptable level of performance.

In processing of tubular and welding products and welding materials. it has been observed that, 10

for newly-employed personnel, on-the-job training is very effective. Newly employed personnel

also undergo a format orientation program developed and conducted by an internal orientation

training group.

The managers of other departments responsible for the execution of functions affecting product 15

quality will be responsible for identifying the relevant personnel and assuring that those relevant

personnel in these functions are properly trained, including indoctrination training. This training

shall be documented. These operations and techniques will be subject to internal audit review to

assure the functions are executed in an effective manner.

20

Personnel responsible for nondestructive examination are qualified and certified by the Level III

person and the Director/Manager, Quality and Metallurgy, per the approved Written Practice in

accordance with the applicable edition of SNT-TC-1A, as specified by the Code, and the Code.

See Section 8.1.2, "Inspection, Examination, and Test Control - Testing" of this Manual. The

Written Practice is documented in a Control Procedure and Instruction. 25



Section: 2.1 PERSONNEL Issue: 3 Revision: 0 Date: 04/08/2009Indoctrination, Training, and Qualification of Personnel Page: 2 Of: 2


The Sandvik Level III is qualified by examination and certified by the Director/Manager, Quality

and Metallurgy in accordance with the requirements of the Written Practice. The Level III is

appointed by letter, signed by Director/Manager, Quality and Metallurgy.

The Level III shall certify Level I and Level II examiners. Record of qualification/certification of 5

nondestructive examination personnel are specified in the Written Practice and maintained by the

Director/Manager, Quality and Metallurgy.

The Director/Manager, Quality and Metallurgy (or designee) is responsible for the periodic

training of non-quality assurance personnel in matters relating to product quality and the Quality 10

System Program. The training is performed in the form of meetings and seminars.

Scheduled training of all employees in subjects related to Sandvik Materials Technology's

Continuous Quality Improvement Process is performed by qualified and certified internal trainers.

15

The effectiveness of the training given to all employees shall be regularly evaluated per an

established Control Procedure and Instruction.

Training and indoctrination records shall be maintained per Section 2.2, "Personnel Records" of

this Manual. 20


PRODUCT ARE TUBE * * * PRODUCT AREA WIRE

Section: 2.2 PERSONNEL Issue: 3 Revision: 0 Date: 04/08/2009Personnel Records Page: 1 Of: 1


Personnel records required by ASME Code Section III are maintained by the Director/Manager,

Quality and Metallurgy. These records consist of personnel (Sandvik and subcontractors)

qualifications for non-destructive examinations per the approved Written Practices in accordance

with SNT-TC-1A (edition as specified in the Code) Records of qualification/certification of

nondestructive examination personnel are specified in the Written Practice and maintained by the 5


Records of qualification/certification of lead auditors personnel are maintained by the


10

Quality Assurance shall also maintain other personnel records for qualification of personnel within

Sandvik in matters pertaining to product quality and the Quality System Program.

Personnel records are available for review within the Quality Assurance Department.

15

Records for training in the Quality System Program are maintained by Quality Assurance and

these records shall show subject covered, duration of training session, attendee, name of

instructor and date.

The Human Resources Department maintains personnel records related to job content and job 20

descriptions. The majority of these records are maintained electronically.



Section: 3.1 PROGRAM DOCUMENTATION Issue: 3 Revision: 0 Date: 04/08/2009Quality Manual Page: 1 Of: 1


Sandvik's Quality System Program has been established and documented in this Quality Manual to

verify that all requirements per the Code and of material and product specifications and customer

requirements have been met and to provide control over these functions affecting quality during

manufacturing, storage, handling and supply of material and products.

5

The Quality System Program provides for control of material and service procurement, order

processing, customer order and specification review, testing and inspection equipment and

procedures, as well as material and product traceability and identity. The Quality System Program

also provides for control of nonconforming material, corrective action, quality assurance records,

special processes, audits and Code-required documents. 10

The Director/Manager, Quality and Metallurgy, has the responsibility to establish a quality

organization and implement the Quality System Program described in this Quality Manual.

The Quality Manual is issued, revised and controlled by the Director/Manager – Quality & Metallurgy 15

in accordance with Section 3.3, "Document Control" of this Manual.

The following Section 3.2, “Procedures, Instructions, and Drawings” of this Manual outlines the

structure of the documentation used in Sandvik’s Quality System Program.

20



Section: 3.2 PROGRAM DOCUMENTATION Issue: 3 Revision: 0 Date: 04/08/2009Procedures, Instructions, and Drawings Page: 1 Of: 2


General

The structure of quality system program procedures and the documentation used in the Quality

System Program is as follows:

--- Quality Manual

--- Control Procedures and Instructions 5

--- Operating Directives and Instructions -- manufacturing work instructions

--- Laboratory Procedures and Instructions

These documented procedures are prepared to be consistent with the Quality System Program and

with the requirements of ASME Code Section III, and customer order requirements. 10

Control Procedures and Instructions

For control of operations, materials and products, and for implementation of the Quality System

Program, Control Procedures and Instructions are maintained as part of the Quality System Program.

The Director/Manager, Quality and Metallurgy, is responsible for issuance, revision and control of 15

these Control Procedures and Instructions, which internally are commonly referred to as CPI’s. They

describe the activities affecting quality and the elements in the Quality Systems, and are issued,

revised and controlled in accordance with Section 3.3, “Document Control” of this Manual.

Acceptance levels involved in these detailed Control Procedures and Instructions are set by Quality 20

Assurance in order to meet ASME Code Section II and ASME Code Section III, ASTM and AWS,

specifications and other standards, as well as customer specifications.



Section: 3.2 PROGRAM DOCUMENTATION Issue: 3 Revision: 0 Date: 04/08/2009Procedures, Instructions, and Drawings Page: 2 Of: 2


Operating Directives and Instructions

Work instructions are documented in Operating Directives and Instructions. The production

departments are primarily responsible for the development and revision of these documents, which

internally are commonly referred to as ODIN’s. Quality Assurance is responsible for issuance and

for control of these documents in accordance with Section 3.3, “Document Control” of this Manual. 5

Laboratory Procedures and Instructions

Laboratory Procedures and Instructions (commonly referred to as LPI’s) are issued, revised and

controlled by the Materials Laboratory personnel in accordance with Section 3.3, “Document Control”

of this Manual. 10



Section: 3.3 PROGRAM DOCUMENTATION Issue: 3 Revision: 1 Date: 01/03/2011Document Control Page: 1 Of: 5


At Sandvik, activities affecting quality are prescribed by and performed in accordance with

documents.

These documents are issued and controlled by Quality Assurance: this Quality Manual, Control

Procedures and Instructions (CPI), Materials Specifications (MS), Laboratory Procedures and 5

Instructions (LPI), Operating Directives and Instructions (ODIN), Process Control Plans and Process

Outlines. Documents are distributed to and used at the location where the activity is performed and

invalid and/or obsolete documents are promptly removed from all points of issue or use.

The Director/ Manager, Quality and Metallurgy, is responsible for the preparation, issuance, revision 10

and approval of this Quality Manual.

The Quality Manual is issued on a controlled basis to persons in the Sandvik Materials Technology

organization, and to ASME. Distribution of the Quality Manual to other persons outside Sandvik

Materials Technology will be on an uncontrolled copy basis unless a controlled copy is specifically 15

requested and the request is approved by Director/Manager, Quality and Metallurgy or designee.

Review of Code editions and addenda will be performed on an annual basis. The review and

necessary changes to the Manual shall be made within six (6) months of the "date of issue" of the

Code edition or addenda. This review shall be documented by the Director/Manager, Quality and 20

Metallurgy, in writing showing each edition or addenda and paragraph reviewed. When deemed

necessary, changes will be made to the Manual and submitted to ASME for approval prior to

implementation.

When revisions are required to this Quality Manual, they shall be made by section, except for the list 25

of Forms and Document section, which shall be revised by the exhibits and the revision identified on

the exhibits and the list of forms and documents.





When a change is made, the area of applicable paragraph shall be highlighted by a vertical line in the

margin (|) adjacent to the revision. The entire section shall carry the next higher revision number.

The Quality Manual table of contents shall show the current revision number, the date, and the

approval of the Director/Manager, Quality and Metallurgy. In addition, the cover page of the Quality

Manual shall carry the current revision number and date. Forms exhibited in the Quality Manual shall 5

be controlled by the List of Forms and Documents, which defines each exhibit by number, title,

revision and date of revision.

Each revision of the Quality Manual shall be submitted to the ASME and their acceptance attained

prior to issue and implementation of the changes. Exhibits may be revised and implemented prior to 10

ASME acceptance provided they contain at least the same information as the superseded exhibit.

Sandvik Materials Technology shall implement changes within thirty (30) days of receipt of ASME

acceptance.

Issuance of controlled copies of the Quality Manual will be recorded in a Quality Manual distribution 15

log which will be maintained by Quality Assurance. This distribution log shall show the Quality

Manual number, to whom issued, revision number, issuance date and date of acknowledgment. This

log shall also verify that the revision issuance was not made prior to ASME acceptance.

Uncontrolled copies of the Quality Manual may be issued outside the Sandvik Materials Technology. 20

An uncontrolled copy shall be current as of the date of issuance, but shall not be maintained nor shall

such issuance be logged unless required by Quality Assurance.

Controlled Quality Manuals and revisions will be issued through the use of Quality Manual

acknowledgment letter (EXHIBIT 6), which shall require acknowledgment of receipt of the Quality 25

Manual or the revised pages. For Quality Manuals held by persons outside of Sandvik Materials

Technology, revisions may be mailed with postal return receipt requested. Acknowledgment and

return receipts shall be filed by Quality Assurance. Use of postal return receipt does not apply to the





ASME copy. For Quality Manuals held by Sandvik Materials Technology personnel, acknowledgment

must be received within seven (7) days or a personal follow-up shall be made by the Product Area

Quality Professional (or his/her designee). When Quality Assurance determines that reason for the

acknowledgment of receipt not being returned is unacceptable, a corrective action shall be issued per

Section 14, "Corrective Action", of this Manual. 5

The Control Procedures and Instructions (CPI) are always approved by the Director/Manager, Quality

and Metallurgy, and issued and controlled by the Product Area Quality Professional. The primary

method for issuing and controlling Control Procedures and Instructions (CPI) is electronically.

Revisions or changes are approved and controlled in the same manner as the initial procedure. 10

When the CPI distribution and control is maintained through electronic means, the signing and dating

of the master index is not required. There is no need to acknowledge receipt of electronic documents

since the distribution/receipt is automatically controlled by the system. Hard copies of these CPI's

shall be issued to numbered controlled books assigned to individuals, or as partial books assigned to

specific work stations, controlled by the CPI Holders List and Table of Contents for each book. The 15

CPI Table of Contents lists all Control Procedures and Instructions by CPI number, revision level and

issue date. When partial books are issued, the number of the partial book from the Holders List shall

be referenced next to those Control Procedures and Instructions which are to be present in the

particular partial books. Hard copies of all Control Procedures and Instructions are stamped with a

"Controlled Document" stamp with the following text: "Controlled document only if this stamp is in 20

original red ink". New and revised Control Procedures and Instructions are hand delivered by the

Product Area Quality Professional or designee and superseded revisions and obsolete copies are

deleted and destroyed by the Product Area Quality Professional or designee. In order to ensure the

presence of the entire document, the approval section, which by default is at the end of the

document, of the CPI shall be present. This will indicate that all of the documents pages are present. 25

If the CPI distribution and control is maintained through electronic means, access to specific

documents will be done through system security and access controls designated by Quality





Assurance. The Quality Assurance person making the distribution shall sign and date the master CPI

index to indicate the distribution has been completed.

Material Specifications (MS) for procurement of source material and material for tubular products and

for welding products, are written by the Product Area Quality Professional or Wire Technical 5

Marketing personnel and reviewed and approved by the Director/Manager, Quality and Metallurgy or

his/her designee. They must also be approved by managers of all departments affected by the

specification. MS's are issued and controlled by the Product Area Quality Professional. These MS's

are issued on a controlled basis only, and any revisions are issued solely by the Product Area Quality

Professional. The primary method for issuing and controlling Material Specifications is electronically. 10

Revisions or changes are approved and controlled in the same manner as the initial procedure. If the

MS distribution and control is maintained through electronic means, access to specific documents will

be done through system security and access controls designated by Quality Assurance. They shall

be issued to numbered controlled books assigned to individuals and are controlled by the MS index

and Table of Contents. In order to ensure the presence of the entire document, the approval section 15

of the MS shall be present. This will indicate that all of the documents pages are present. The Quality

Assurance person making the distribution shall sign and date the master MS index to indicate the

distribution has been completed. If the MS distribution and control is maintained through electronic

means, the signing and dating of the master index is not required.

20

Laboratory Procedures and Instructions (LPI) and changes are approved by the Materials Laboratory

personnel. They are issued and controlled by the Materials Laboratory personnel. They cover in

detail the work to be performed in the Materials Laboratory for chemical analysis and acceptance

testing of source material and material. These LPI's shall be issued to numbered controlled books to

individuals and are controlled by the LPI index and table of contents. In order to ensure the presence 25

of the entire document, each LPI shall indicate the total number of pages. The person making the

distribution shall sign and date the master LPI index to indicate the distribution has been completed.





Operating Directives and Instructions (ODIN) and their changes are written by any responsible

employee. They are reviewed and approved by the Product Area Quality Professional, and by

managers of all departments affected by the ODIN. The control, issuance and distribution of ODIN's

are made by Quality Assurance in the same way as for CPI's.

5

Process Control Plans/Quality Control Plans and their changes are prepared by the Product Area

Quality Professional and issued by Quality Assurance to those functions affected by the documents.

Hard copies of the work order (shop traveler) are generated from the mainframe computer system. In

order to ensure the presence of the entire work order (shop traveler), the last page shall state “END” 10

or “END OF TRANSMISSION” or “END OF REPORT”.

National and international standards such as ASTM, ASME, and AWS specifications shall be

controlled by Quality per applicable Control Procedures and Instructions. When distributed outside of

Quality Assurance, controlled standards shall be assigned a controlled copy number and shall be 15

stamped "Controlled Document" on the title page. A current list of holders of controlled standards

shall be maintained by QA. Quality Assurance shall be responsible for review of applicable parts of

these standards, for availability of these standards where needed, and for assuring that superseded

standards are not used for product inspection, testing and acceptance.

20

Any obsolete documents retained for legal and/or knowledge-preservation purposes shall be suitably

identified. Documents and data can be in the form of hard copies or electronic media. When

electronic media is used, Control Procedures and Instructions (CPI’s) shall be established to control

all electronic media documents.



Section: 3.4 PROGRAM DOCUMENTATION Issue: 3 Revision: 0 Date: 04/08/2009Quality Assurance Records Page: 1 Of: 3


Records are prepared to furnish documentary evidence of the quality of material and products

and of activities affecting quality. It is Sandvik's policy to maintain these records for a certain

period of time, established by an approved Control Procedure and Instruction.

Records to be prepared, controlled, and maintained, including the retention time and disposition, 5

for each type of record are specified in a Control Procedure and Instruction. The following

records will be maintained: inspection records, test records, personnel qualification records,

calibration records, process qualification records for specific processes, Control Procedures and

Instructions, Laboratory Procedures and Instructions, Operating Directives and Instructions, order

review records, supplier audit records, internal audit records, nonconforming product records, 10

product identification records, corrective action records, management review records, training

records.

Quality records shall be legible, identifiable, and retrievable.

15

Inspection, examination, and test records are maintained and are traceable to the original

material or product. These records include but are not limited to: receiving, in-process and final

inspection and testing records.

Test reports submitted by subcontractors, independent testing laboratories and all material 20

manufacturers are compiled and maintained traceable to the original material.

Quality records shall be retrievable and be stored and maintained in a suitable environment to

minimize deterioration or damage to prevent loss.

25

Certain quality documents, such as Certified Material Test Reports and calibration records, are

created by restricted access to a computer system. Computer security features include the

following controls:





• Access to the system is controlled by user identification in conjunction with a user maintained

password.

• Access to each system menu is restricted by user identification.

• Resource security restricts access to individual files. Various access levels are defined by

user identification. 5

• Access to the system is established by the Director/Manager – Information Technology in

conjunction with Management. The Director/Manager – Information Technology reports to

the President – Sandvik Materials Technology, Scranton, PA.

• The Director/Manager – Information Technology is the only individual who has access to the

system security file. 10

• The system requires each user to change his or her password at a set frequency in days as

defined by the Director/Manager – Information Technology.

• The system does not allow for a user to sign on to more than one device; it is against

established company policy for a user to give out passwords to others.

• The system automatically logs off any user who has left his/her terminal signed on 15

unattended for more than 60 minutes.

• The system automatically locks out the device if a user inputs three (3) incorrect passwords.

• Access to the Information Technology Department is protected by a door lock security code

system.

20

Certain quality documents, such as Quality System Program documentation, nonconforming

material reports and corrective actions, are created by restricted access to a computer system.

Computer security features include the following controls:

• Access to the system is controlled by user identification in conjunction with a user maintained

password. 25

• Access to each system menu is restricted by user identification.





• Resource security restricts access to individual files. Various access levels are defined by

user identification.

• Access to the system is established by the Director/Manager – Information Technology in

conjunction with Management.

• The Director/Manager – Information Technology is the only individual who has access to the 5

system security file.

• The Information Technology Department is protected by a door lock security code system.



Section: 3.5 PROGRAM DOCUMENTATION Issue: 3 Revision: 0 Date: 04/08/2009Records of Examinations and Tests Page: 1 Of: 2


General

Records for inspection, examinations and tests are signed and dated or entered into a secure

computer system by the individual who performed the activity to verify that the activity was

performed and that the result of the activity was acceptable. These records are reviewed and

approved by the Product Area Quality Professional (or designee) to verify that all characteristics 5

required to be reported by the material specification and ASME Code Section III are recorded

and within specified limits as specified on the Product Requirement Review Sheets (EXHIBITS 2

and 3). The Product Area Quality Professional (or designee) sign and date the Laboratory Test

Reports (EXHIBIT 14).

10

Test results related to sales orders involving only destructive tests of material are recorded on the

Laboratory Request Item form (EXHIBIT 4). Once the results of testing are recorded on the Lab

Request Item form, it is sent to the requestor. If acceptable, the results of this testing are entered

into the mainframe test results computer file by lot order and heat number. The Product Area

Quality Professional (or his/her designee) will enter the test result(s) into the mainframe test 15

results database along with the Lab Request Item number and his/her initials.

Records are traceable through sales order, work order and/or lot number as applicable to

material specification and to procedure and revision to which inspection and testing is to be

performed, including acceptance criteria. 20

Pipe and Tube

Separate inspection forms are used for each work order indicating the status of eddy current

testing (EXHIBIT 15), ultrasonic testing (EXHIBIT 16) and final inspection (EXHIBIT 11). Results

from destructive testing performed in the Materials Laboratory are recorded on the Laboratory 25

Test Report (EXHIBIT 14) for each work order. This report is signed and dated by the Product

Area Quality Professional (or his/her designee).



Section: 3.5 PROGRAM DOCUMENTATION Issue: 3 Revision: 0 Date: 04/08/2009Records of Examinations and Tests Page: 2 Of: 2


Welding Material

Different forms are used for each work order to indicate the status and to record the results of

inspection and testing and with space for recording results.

EXHIBIT 21 is used for in-process and final inspection of bare electrodes and rods to be cut by 5

Sandvik Materials Technology.

Results of weld testing and chemical and physical testing are recorded on the Laboratory

Request Item form (EXHIBIT 4).



Section: 5.1 CONTROL OF PURCHASE MATERIALS, SOURCE MATERIALS, AND SERVICES

Issue: 3

Revision: 0 Date: 04/08/2009General Page: 1 Of: 1


Measures have been established to assure that all purchases material, source material, and

subcontracted services conform to the requirements of the Code. These measures are intended to

prevent the use of incorrect or defective material or source material including materials that have not

been examined or tested to specified requirements.

5

Material or source material in either Product Area Tube or Product Area Wire is not repaired by

welding.




Issue: 3

Revision: 1 Date: 01/03/2011Sources of Material, Source Material and Services Including Approval and Control of Suppliers of Source Material and Services

Assessment and Approval of Material Organizations and Suppliers Page: 1 Of: 4


Suppliers of source material, material, and services shall be selected on the basis of their ability to

meet Sandvik's requirements. An Approved Suppliers List shall be established and maintained. For

tubular products and welding and wire products per Code requirements, Quality Assurance

establishes and maintains the Approved Suppliers List for ASME Section III and Military Applications.

5

The approval and control of Material Organizations, suppliers of source material, and suppliers of

services per ASME Code Section III requirements shall be the responsibility of the Director/Manager,

Quality and Metallurgy. The approval shall be based on an evaluation of the Material Organization’s

or supplier's quality system program following a survey evaluated against applicable Code

requirements, or the Material Organization/supplier may be approved as an accredited Material 10

Organization holding a valid ASME Quality System Certificate (Materials) on file at Sandvik. The

survey of the Material Organization/supplier shall be performed by competent persons qualified and

designated as lead auditors by the Director/Manager, Quality and Metallurgy (see Section 9.1

“Audits” of this Manual), and per an approved Control Procedure and Instruction requiring the use of

a checklist prepared by the Director/Manager, Quality and Metallurgy, or his designee. This checklist 15

shall include the items relevant to the scope and type of material or services to be supplied. Within

ten (10) working days of the survey, the lead auditor will issue a survey report with his

recommendation. The Director/Manager, Quality and Metallurgy or designee will review the report

and will approve or disapprove the Material Organization/supplier as appropriate. The notice of the

Material Organization/supplier approval by the Director/Manager, Quality and Metallurgy (Approved 20

Suppliers List, maintained current) to other Sandvik personnel shall include the scope of material or

service for which the Material Organization/supplier is approved, the address of the approved facility,

the expiration date of an ASME certificate, if applicable, the due date of the next audit or performance

assessment, the Material Organization/ supplier's Quality Manual, date and revision, approved by

Sandvik, and the limitation of scope. 25




Issue: 3




Disapproval of a current Material Organization/supplier will cause deletion from the Approved

Suppliers List, but may be identified on the List cover page as "Disapproved Material

Organization/Supplier" and with a statement that a new survey is required prior to re-approval.

Material Organizations/Suppliers may remain on the Approved Suppliers List after reaching the next 5

audit due date. In this case, a new survey must be performed prior to placement of the next order.

This is identified on the Approved Suppliers List by a statement that indicates that a re-survey is

required.

After the initial survey and acceptance, the audit frequency of Qualified Material Organizations, 10

approved suppliers of source material and services shall be commensurate with the schedule of

production or procurement, but shall be conducted at least once triennially during the interval in which

material is controlled or services are performed. For Qualified Material Organizations and for

suppliers of source material, the triennial audits shall be supplemented with annual audits or

performance assessments documenting the effectiveness of the quality system programs. The 15

performance assessment shall be initiated by the Director/Manager, Quality and Metallurgy and shall

be conducted per an approved Control Procedure and Instruction annually during the interval in

which materials or source materials and controlled.

The assessment shall include a documented review of the history of conditions adverse to quality, 20

nonconformances, and corrective actions. The assessment shall include documented review of

periodic testing performed by Sandvik since last assessment to demonstrate conformance of sample

materials to selected requirements of the material specification.

All records for initial surveys, audits and performance assessments shall be kept by Quality 25

Assurance.




Issue: 3




Accredited Material Organizations, approved based on their valid ASME Quality System Certificate,

shall per Nuclear Regulatory Commission requirements, be evaluated annually by onsite audits or by

performance-based inspection and testing of all product characteristics reported on the material

certificate.

5

Qualified Material Organizations, and approved suppliers of source material shall notify Sandvik’s

Director/Manager, Quality and Metallurgy, or his designee, of proposed modifications to the accepted

Quality System Manual. This requirement shall be specified by Sandvik in the letter of approval to

the Qualified Material Organization or approved supplier of source material.

10

As an alternative to approval by surveying and auditing, a supplier of subcontracted services may

perform the activities in accordance with controls established by Sandvik Materials Technology in

approved Control Procedures and Instructions, which shall be listed under the scope of approval on

the Approved Suppliers List.

15

Suppliers of calibration and outside testing services shall be audited/evaluated by competent persons

qualified and designated as lead auditors by the Director/Manager, Quality and Metallurgy, to verify

the supplier's performance and that reference standards used are traceable to National Standards

where such exist, or to the equipment manufacturer's standards. This audit/evaluation shall be

documented and approved by the Director/Manager, Quality and Metallurgy. When the calibration 20

service is supplied by the manufacturer of the measuring and test equipment, the audit/evaluation

may be limited to verification of reference standards only, at the discretion of the Director/Manager,

Quality and Metallurgy.

The audit frequency of calibration services and outside testing services shall be every three (3) years, 25

with a yearly evaluation.




Issue: 3




As an alternative to survey and audit, suppliers of subcontracted calibration services may be

accepted if they are accredited by either the National Voluntary Laboratory Accreditation Program

(NAVLAP), American Association for Laboratory Accredition (A2LA), or other accrediting body

recognized by NAVLAP through the International Laboratory Accreditation Cooperation Mutual

Recognition Arrangement. The criteria for accreditation shall be ISO 17025:2005 – General 5

Requirements for the Competence of Testing and Calibration Laboratories. The published scope of

the accreditation for calibration services to ISO 17025 shall cover the needed measurement

parameters, ranges, and uncertainties. The purchase order shall specify that the calibration

certificate or report include the identification of laboratory equipment and/or standards used and the

pre-calibration (as-received) and post-calibration (as-returned) data. The calibration certificate or 10

report shall be reviewed and approved by Quality Assurance against the purchase order to ensure

all requirements have been met.

Suppliers of survey and audit services shall be approved by the Director/Manager, Quality and

Metallurgy, based on his evaluation of their performance, education, training, and experience. 15

The evaluation frequency of suppliers of survey and audit services shall be every three (3) years.

Report of surveys, audits and evaluations indicating their acceptability and approval status shall be

maintained by Quailty Assurance. 20




Issue: 3

Revision: 0 Date: 04/08/2009Procurement Document Control Page: 1 Of: 2


General

Source material and services for tubular and welding products are purchased from approved

suppliers and in accordance with specific requirements, included in or referenced on the procurement

documents.

5

When the requirements for procurement of source material, material, and services are specified in

Control Procedures and Instructions, or in Sandvik internal Material Specifications, the procedure or

specification is referenced on the purchase order. The applicable Control Procedure and Instruction

or Material Specifications and its revision shall contain, as applicable, requirements of chemical

composition, mechanical properties, production, service activities to be performed, and the quality 10

system program approved by Sandvik and listed on the Approved Suppliers List for ASME Section III

and Military Applications. For Code material, the supplier shall certify the same. The Control

Procedure and Instruction or Material Specification is approved by the Director/Manager, Quality and

Metallurgy or his designee, per Section 3.3, "Document Control" of this Manual.

15

Product Area Tube and Product Area Wire

Procurement documents for source material, material and subcontracted services are controlled for

transmittal of necessary Code and customer requirements to assure compliance with ASME Code

Section III.

20

This control is executed through internal specifications, which are used when Sandvik purchases

source material and finished goods of Code material as a Material Organization. These

specifications are originated by Sandvik Materials Technology in the form of approved Control

Procedures and Instructions (CPI), or Material Specifications (MS). They are designed to meet

requirements of applicable ASTM or AWS specifications as well as ASME Code, Section II and 25

Section III. To supplement the use of Material Specifications, the original customer purchase order

and associated documents may be transmitted to Material Organization manufacturing or supplying

the material.




Issue: 3

Revision: 0 Date: 04/08/2009Procurement Document Control Page: 2 Of: 2


When the Sandvik internal specification is not sufficient to procure source material or material, the

additional procurement information will be stated on the purchase order. In this case, these

procurement document shall be reviewed and approved by the Product Area Quality Professional to 5

ensure all relevant information is present.

These services may include (but are not limited to) testing and manufacturing operations, such as

grinding, slitting, cleaning and deburring. Purchase orders for subcontracted services are reviewed

and approved by the Product Area Quality Professional for completeness to assure that all Code and 10

customer requirements are transmitted.



Section: 5.5 CONTROL OF PURCHASED MATERIALS, SOURCE MATERIALS, AND SERVICES

Issue: 0

Revision: 0 Date: 04/08/2009Utilization of Unqualified Source Material Page: 1 Of: 2


Sandvik may, for Tubular and Welding Products, purchase and utilize unqualified source material not

produced by a Material Organization or approved supplier in accordance with the requirements of ASME

Code Section III, but produced by a supplier who provides a certification to the requirements of the

material specification that were performed during melting, heat analysis, and heat treatment under the

following conditions: 5

A. The supplier agrees in writing that no welding (with filler metal) was performed on the unqualified

source material.

B. For welding products, the supplier agrees that no welding without filler metal (splicing) was performed

on unqualified source material.

C. Sandvik performs a product analysis for each piece of material to verify the chemical composition. 10

D. Sandvik will perform all other requirements of the Material Specification on each piece of material.

E. The unqualified source material supplier submits to Sandvik a material certificate including heat

analysis and all other requirements that had to be performed during manufacturing.

The Product Area Quality Professional shall review the material certificate for compliance with applicable 15

material requirements, and shall arrange for testing of product analysis and other requirements per the

material specification on each piece of material per Section 8.1.2, “Testing” of this Manual.

Per ASME Code Section III, the Product Area Quality Professonal shall request testing for product

analysis and other requirements per the material specification by submitting a Laboratory Request Form 20

(EXHIBIT 4) to the Materials Laboratory for each piece of unqualified source material to be tested.

Samples are submitted to the Product Area Quality Professonal, who submits samples and request form

to the Materials Laboratory. Laboratory personnel record the results on the form and return the form

containing test results to the Product Area Quality Professonal. The Product Area Quality Professonal

reviews the test results for conformance to Code and material specification requirements, and, if 25

acceptable, enters the test results into the mainframe test results system .



Section: 5.5 CONTROL OF PURCHASED MATERIALS, SOURCE MATERIALS, AND SERVICES

Issue: 0

Revision: 0 Date: 04/08/2009Utilization of Unqualified Source Material Page: 2 Of: 2


As an alternative to “D” above, Sandvik may perform or subcontract all other requirements of the material

specification on each heat and lot of unqualified source material provided:

1. A Certified Material Test Report is provided with the unqualified source material.

2. The unqualified source material is traceable to the Certified Material Test Report.

3. Procurement documents require that suppliers of unqualified source material established written 5

procedures for identifying source materials in a manner that provides traceability to the Certified

Material Test Report.

4. Sandvik reviews and accepts the supplier’s identification and traceability procedures and verifies

compliance with the procedures through an audit of identification and traceability at a frequency

commensurate with the schedule of production or procurement, but at least once triennially. 10

5. Upon receipt, Sandvik shall verify by review of objective evidence, that the requirements of the

procurement document have been met.




Issue: 3

Revision: 0 Date: 04/08/2009Verification of Purchased Material, Products and Services Page: 1 Of: 1


For Sandvik Materials Technology manufactured product, customers shall be offered the right to

access Sandvik's facilities or approved subcontractors' facilities when so specified in the contract.

When the customer or customer's representative elects to carry out source inspection/verification at

Sandvik's facilities, or at Sandvik's approved subcontractor's facility, such inspection/verification shall 5

not absolve Sandvik from the responsibility to provide acceptable product, nor shall it preclude

subsequent rejection. Furthermore, the customer's inspection/verification shall not be used by

Sandvik as effective control of quality by the subcontractor.




Issue: 3

Revision: 1 Date: 01/03/2011Direct Shipment of Material from a Material Organization Page: 1 Of: 1


When material, manufactured and certified by a Material Organization qualified by Sandvik Materials

Technology is shipped directly (dropped shipped) to a customer, the final inspection shall be

performed under the direction of an individual, qualified and appointed by the Director/Manager,


5

The appropriate Product Area Quality Professional shall ensure that the material meets ASME Code

Section III requirements and customer order requirements. The following measures shall be taken:

• Verification that the Material Organization is listed on the ASME Code Section III Approved

Supplier Listing.

• Verification that all ASME Code and customer order requirements have been forwarded to the 10

Material Organization.

• Verification that the material has been inspected under the direction of an individual, qualified and

appointed by the Director/Manager, Quality and Metallurgy.

• Verification that the Certified Material Test Report (CMTR) from the Material Organization is

reviewed and approved by the Sandvik Materials Technology Quality Assurance Department. 15

Verification, when appropriate, that the certificates from other approved suppliers for required

chemical analysis (including melting mill heat analysis), heat treatments, tests and examinations

are reviewed and approved by the Sandvik Materials Technology Quality Assurance Department.

• Preparation of a Sandvik Materials Technology CMTR certifying conformance to the customer

purchase order. The Sandvik Materials Technology Quality System Certificate number and 20

expiration date shall be referenced.

• Transmittal prior to or at the time of the order shipment of the Sandvik CMTR including all

approved certifications received from the Material Organizations and, when appropriate,

approved suppliers for required chemical analysis (including melting mill heat analysis), heat

treatments, tests and examinations. These certifications shall be furnished as an identified 25

attachment to the Certified Material Test Report. The purchase order to the material organization

shall state that approval of the Certified Material Test Report is required by Sandvik Materials

Technology prior to shipment.



Section: 6.1 IDENTIFICATION, MARKING, AND MATERIAL CONTROL Issue: 3 Revision: 0 Date: 04/08/2009General Page: 1 Of: 2


Throughout all processing at Sandvik Materials Technology material identification shall be

accomplished in such manner that any material can be traced to work order and heat origin at any

point in the processing.

Test material for final acceptance testing and examination is identified by tagging the material or 5

identifying the sample container with (as a minimum) the work order and/or lot number by the

individual assigned that duty by approved Control Procedure and Instruction or instructions on the

work order. The identification is verified by inspectors or laboratory personnel.

If material or product is suspected to be nonconforming to applicable requirements anytime during 10

the processing, a yellow hold tag (EXHIBIT 7), reject tag (EXHIBIT 5), or uniquely numbered

Nonconforming Material Report (NCMR) (EXHIBIT 17) shall be applied to the suspect material by the

inspector. Removal of tags shall be by the inspector.

When material or product is found to be nonconforming, the material or product is labeled by 15

inspectors with the reject tag (EXHIBIT 5) or the uniquely numbered NCMR (EXHIBIT 17). All

material bearing reject tags or NCMRs shall be segregated by the inspector. Material is not

processed until material disposition is received from the Quality Assurance Department, per Section

8.5, "Control of Nonconforming Material" of this Manual.

20

When there are several units included on a rejection tag, such as several skids of material, a red

rejection tag (EXHIBIT 5) or the uniquely numbered NCMR (EXHIBIT 17) will be attached by the

inspector to each individual unit. When the reject tag is used, it shall be marked with the unique Non-

Conforming Material Report number.



Section: 6.1 IDENTIFICATION, MARKING, AND MATERIAL CONTROL Issue: 3 Revision: 0 Date: 04/08/2009General Page: 2 Of: 2


Identification and control are performed by utilizing a work order system and shop travelers. All

material is identified by tagging with work order number during all steps of manufacturing. The work

order number is traceable to the heat number, grade and size of material or description of product.

Material assigned to each work order must be from one heat and must be of the same starting size.

Each work order must be for one final size and for the same material or product specification. 5

The shop travelers (EXHIBITS 8 and 9) list each operating step in sequence. Listed also are

applicable material specifications and Control Procedures and Instructions to be used during

operations. The indication of the revision level for Control Procedures and Instructions on the traveler

is not required. All operations shall be completed to the latest revision of the referenced Control 10

Procedures and Instructions as controlled in the Section 3.3 of this manual. After completion of each

manufacturing step for tubular products and welding products (set-up steps are excluded), the

operator signs and dates the traveler, and after completion of each inspection step, the traveler is

signed off and dated by the inspector. Completion of testing steps is signed off by the operator or

inspector as appropriate for the test performed for tubular products, and by the inspector for welding 15

products. Each work order is represented by one traveler, which accompanies the material during all

processing steps.



Section: 6.2.1 IDENTIFICATION, MARKING, AND MATERIAL CONTROL Issue: 3 Revision: 0 Date: 04/08/2009Marking Methods and Identification of Completed Material - Tube Page: 1 Of: 3


Identification and control of incoming source material in the form of tube hollows is accomplished

through the use of legible tags or linemarking containing the grade, size, heat number, and lot

number, at a minimum. The absence of legible identification shall result in the scrapping of the

material. After receiving verification per Section 5, "Control of Purchased Materials, Source

Materials, and Services" of this Manual, material can be assigned for production. 5

Identification and control of material during production is accomplished through the use of heat

number and work order number. This control is established from the time raw material is assigned to

a work order until the shipment of finished product from production or inventory.

10

Processing and handling of pipe and tube during manufacturing is done in the form of bundles. Each

bundle is identified by two Bundle Identification Tags (EXHIBIT 10), showing the work order number.

The work order traveler will indicate the starting number of pieces.

The bundle identification tags are attached to each bundle by operators when source material, in the 15

form of hollows, is assigned to a work order of pipe and tube.

It is the responsibility of operators and/or inspectors, as applicable, to attach one tag to the first piece

going through any given operation or testing step, or to the container where the accepted pieces are

being collected, and to attach the second tag to the bundle immediately after the last piece is 20

processed. During processing, the second tag shall remain at a designated spot at the process

station.

The second tag will note the amount of pieces processed at the following steps: hydrostatic testing,

nondestructive testing when line marking is not combined with this test, and final inspection. 25

At any operation resulting in an intentional change of the number of pieces (such as cutting) the

number of pieces shall be determined and recorded on the bundle identification tag by the operator.





The piece count from the bundles for each work order shall be summarized on the traveler for each of

the above mentioned operational steps.

For a given work order, the number of pieces rejected or scrapped, if any, at an operational step,

shall be summarized and recorded on the traveler. 5

If a discrepancy has occurred in the piece count, Quality Assurance shall be notified immediately to

investigate and resolve the discrepancy. The work order shall go on hold (hold tags applied), and will

be released only by Quality Assurance when the discrepancy is satisfactorily resolved.

10

The in-process identification system and the use and control of the bundle identification tag is

detailed in an approved Control Procedure and Instruction.

As a final check that all processing steps have been performed in accordance with the work order,

each traveler is given a final review by inspectors at the completion of final inspection. This review is 15

a part of final inspection and is recorded by inspectors on the final inspection form (EXHIBIT 11) and

by inspectors signing and dating the traveler opposite the final inspection step.

Final marking of pipe and tube is performed in accordance with applicable specifications and with (as

a minimum) the following information: Sandvik's identification mark, work order number, grade, heat 20

number, size and specification. The heat number and the work order number identify the material

with the material certification. The method of marking, normally performed as continuous line

marking, shall not result in harmful contamination or sharp discontinuities.

The flow diagram on the following page shows the identification system applied to pipe and tube 25

manufacturing.





Source Material

(Hollows)

Receiving Verification Inventory

Stock

Manufacturing

Linemarking

Inspection

Packaging Inspection

Q.A. Approval

Inventory Stock

or Shipping

Segregated Areas

Quality Assurance

1

3

2

1

3

4, 5

3,4

6

3,4

2

Identification of Pipe and Tube

1. Each length stenciled with heat, size, and grade.

2. Reject tag listing, heat, size, grade, number of pieces, quantity rejected, reason for rejection, and reject (NCMR) number.

3. Bundle identification tag listing work order number. Work order number is traceable to travel card.

4. Linemarking with heat, size, grade, work order number, and specification.

5. Material tagged with heat, size, grade, work order number and specification.

6. Tape showing linemarking sent with inspection report to Quality Assurance

Note: Hold tag with work order number any time during processing when discrepancy found in piece count.



Section: 6.2.2 IDENTIFICATION, MARKING, AND MATERIAL CONTROL Issue: 3 Revision: 0 Date: 04/08/2009Marking Method and Identification of Completed Products - Wire Page: 1 Of: 6


General

Identification of material is established through the use of travelers (EXHIBIT 9), work-in-process

cards or material identification tags (EXHIBIT 12), green "OK TO PROCESS" tags (EXHIBIT 13), and

yellow hold tags (EXHIBIT 7).

5

Identification and control of material for bare electrodes, rods, and wire products is accomplished

through the use of heat number and work order number. This control is established from the time

that source material is assigned to a work order until shipment of finished product. When it is

established through the receiving verification per Section 5, "Control of Purchased Materials, Sources

Materials and Services" of this Manual that the material, hot-rolled rod or cold drawn wire, conforms 10

to the procurement order requirements, and the material has been released by the Product Area

Quality Professional following receiving verification, Production may apply the material to the work

order. Material will be located and held in storage until applied to work orders for processing.

Hot Rolled Rod and Cold Drawn Wire 15

Hot rolled rod to be drawn to wire by Sandvik Materials Technology will be examined by Sandvik

personnel and verified against work order for correctness when removed from inventory by the

material handler and again by the operator when the rod is conditioned. The durable identification

tags placed on the hot rolled rod by the supplier of materials contain purchase order number, heat

number and material specification or grade. The tags will remain with the material until the first 20

drawing operation. The inspector will verify the correctness of the material identity, including size,

grade and quantity and the collection of the correct number of test samples for each work order for

alloy identity testing. See Section 7, "Process Control" of this Manual.

At this stage, the material will be identified by a work-in-process card or material identification tags 25

(EXHIBIT 12). The inspector verifies and documents that all requirements have been met by initially

and dating the traveler. The material is tagged with an “OK TO PROCESS” tag (EXHIBIT 13) by the

operator and moved for further processing.





Wire being further processed through the drawing, annealing and cleaning operations will, at each

stage during processing, be identified with work-in-process cards or material identification tags.

Splicing by welding may be done between wire coils from the same work order (i.e., the same heat 5

and size of material) when allowed by the applicable material specification. An alloy identity test per

Section 8, "Control of Examinations, Tests, and Nonconforming Material" of this Manual shall be

performed for welding material on each end to be spliced in accordance with established Control

Procedure and Instruction, except where material is spliced to repair a break during manufacturing.

The alloy identity test is documented on the traveler (EXHIBIT 9) or the in-process/final inspection 10

form (EXHIBIT 21) by the inspector.

Splicing by welding is done between work orders when the splice can be positively identified by

crimping or coloring by the operator. The splice shall be removed after the processing operation.

Removal of the splice shall be verified by the inspector who signs and dates the traveler. In-process 15

inspection of the removal of the splice may take place in parallel with subsequent operations as

described in the traveler.

If the processing is the drawing operation, confirmation of weld removal will be done as established in

Control Procedure and Instruction for alloy identity testing. See Section 8.1.2, "Inspection, 20

Examination, and Test Control - Testing", of this Manual.

The following flow diagram shows the identification system during processing of hot rolled rod to cold

drawn wire





Source Material (Hot Rolled

Rod/Inventory Stock)

Identity Verification Conditioning

Drawing In-Process Inspection

Annealing Drawing Cleaning

Inspection Q.A.

Approval

Immediate Inventory

Stock

Segregated Area

1, 2

6

2,4

5

2

1, 2

Hold

Inventory Stocking or

Shipping

7, 8

3,4

5

2, 3

2, 4

Identification of Hot Rolled Rod and Sandvik Cold Drawn Wire 1. Supplier marking label or tag with: heat, purchase order

number, and grade or material specification.

2. Work-in-progress card or ID tag with (as a minimum) work order number.

3. Hold tag with (as a minimum) work order number.

4. OK-to-Process tag with (as a minimum) work order number.

5. Reject tag with: heat, grade, size, reject number, work order number, weight and quantity.

6. ID tag for final identification with: heat, grade, size, and work order number.

7. Coil or spool label with: heat, grade, size, work order number, and specification.

8. Sample labels sent with inspection report to Quality Assurance.





Bare Electrodes and Rods

Cold drawn wire to be processed to bare welding electrodes and welding rods is given an incoming

inspection by the inspector to verify identity prior to processing and to confirm that the wire conforms

to the work order requirements. Green "OK TO PROCESS" tags (EXHIBIT 13) containing the work

order number, are affixed to the material by the inspector. 5

The identification tags placed on the cold drawn wire by Sandvik or the supplier of materials are

examined by inspectors along with the material at incoming inspection and remain on the wire and

follow it right up to the time the wire is placed on the processing machine, at which time the tags are

disposed of by the operators. 10

As the material is processed, further identification tags and labels are applied to the material by

operators. In the case of cut straight length rods, the material is placed into containers having

identification labels attached by the operators. In the case of spooled electrodes, labels with the

appropriate information are placed by the operators on the spools as they are moved from the 15

spooling machines. These identification labels remain on the spools and are not removed by

Sandvik.

The final identity of material is accomplished by final labeling of the material by operators when all

processing is completed. 20

The final labeling is performed in accordance with applicable material specifications listed on the

traveler, and with (as a minimum) the following information: Sandvik's identification name, grade,

heat, size, work order number, specification and weight. The heat number and the work order

number or lot number identify the material with certification. 25

The inspector verifies by signing and dating the traveler that the material receives the proper

identification at the final labeling stage. He also verifies that the traveler operation has been signed

off. When the inspector is satisfied that the material is acceptable and the labels contain the proper





information, he signs off and dates and attaches to the traveler and forwards to Quality Assurance

one copy of the final labels for each work order.

The flow diagram on the following page shows the application of identification tags during processing

of bare electrodes and rods. 5





Source Material (Cold Draw n

Wire or Inventory Stock)

Incoming Inspection or

Identity Verification

Electrode Spooling

In-Process Inspection

Packing Final

Inspection Q.A.

Approval

Inventory Stocking or

Shipping

Quality Assurance

1

9

4

8

4,5,6

2

Hold 7,2

5

Segregated Area

3

Sandvik Cold Draw n Wire Intermediate

Inventory Stock

10

Rod Cutting

Tagging 5,6

5 5

3

3

2

Identification of Bare Welding Electrodes 1. Supplier marking label or stamp rods with heat,

lot number, and grade or material specification. 2. OK-to-Process and ID tag with (as a minimum)

work order number. 3. Reject tag with heat, grade, size, reject

number, work order number. 4. Spool label with heat, grade, size, work order

number, and specification. 5. Box label with heat, grade, size, work order

number. 6. Rods individually stamped with heat number

and grade. 7. Hold tag with (as a minimum) work order

number. 8. Sample labels sent with inspection report to

Quality Assurance. 9. Box or tube labels for bare electrodes and rods

with heat, grade, size, work order number, specification, and weight.

10. ID tag with heat, grade, size, work order number from wire drawing operation.

Stamping



Section: 7.1.1 PROCESS CONTROL Issue: 3 Revision: 0 Date: 04/08/2009General Page: 1 Of: 1


The manufacturing of pipes, tubes, bare electrodes, rods, and wire is performed under a controlled

system, utilizing Operating Directives and Instructions, work orders and travelers, as well as

approved Control Procedures and Instructions for control of special processes, examinations and

tests. The controlled system utilizes the work orders and travelers (EXHIBITS 8 and 9) to assure that

all processes and production steps are controlled in accordance with applicable material and

customer specifications and the rules of ASME Code Section III.



Section: 7.1.2 PROCESS CONTROL Issue: 3 Revision: 0 Date: 04/08/2009Special Processes Page: 1 Of: 2


Special processes are those of which the process result cannot be fully verified by subsequent

inspection, testing, and examination of the material or product. They shall be qualified and carried

out under controlled conditions per Section 7.1.1, "Process Control, General" of this Manual.

Heat treating and nondestructive examination are special processes used by Sandvik. 5

Heat treating is a requirement for tubular products and welding products, based on standard material

and product specifications as well as special customer requirements.

Nondestructive examination is used for tubular products (ultrasonic testing and eddy current testing) 10

and for welding products (radiography).

Heat treating and nondestructive examination of tubular products are controlled by Control

Procedures and Instructions, approved by the Director/Manager, Quality and Metallurgy, and by

specific instructions given on travelers, and are performed by personnel who are trained and qualified 15

per applicable internal requirements or per applicable Code and specification requirements in

accordance with Section 2.1, “Indoctrination, Training, and Qualification of Personnel” of this Manual.

Heat treating of pipe and tube is performed in continuous-type furnaces per a Control Procedure and

Instruction referenced on the traveler. The qualification of the furnace shall be done by performing 20

furnace uniformity test per a Control Procedure and Instruction. Heat treat data in the form of time,

temperature, travel speed, date, pieces per load and operator are recorded by the furnace operator

on the traveler. Inspectors verify that the operation was performed by reviewing and signing and

dating the traveler at final inspection. Time-temperature furnace charts showing time, temperature

and date are filed by the Product Area Quality Professional, the Quality Technician, or the Materials 25

Analyst.



Section: 7.1.2 PROCESS CONTROL Issue: 3 Revision: 0 Date: 04/08/2009Special Processes Page: 2 Of: 2


Thermocouples are calibrated per Section 8.2, "Control of Measuring and Test Equipment" of this

Manual, and calibration records are verified and filed by the Quality Assurance.

Nondestructive examination operations of tubular products shall be performed in accordance with

Control Procedures and Instructions, approved by the authorized Level III person, and shall be listed 5

on the traveler and shall be available to the examiner. Procedures shall be proven by actual

demonstration to the satisfaction of the Level III person. This is documented by the Level III person

approving the procedures. Nondestructive examination procedures shall be distributed per Section

3.3, "Document Control" of this Manual. Control of nondestructive examinations are further explained

in Section 8.1, "Inspection, Examination and Test Control" of this Manual. 10

Nondestructive examination of welding products (radiography) is performed by supplier of outside

services.

The Approved Suppliers List for ASME Section III and Military Applications includes independent 15

laboratories which perform special processes. All laboratories on the Approved Suppliers List are

audited for adequacy of their Quality System and their capability per Section 5, "Control of Purchased

Materials, Source Materials, and Services".



Section: 7.2 PROCESS CONTROL Issue: 3 Revision: 0 Date: 04/08/2009Manufacturing Process Control Page: 1 Of: 6


Work orders are prepared and issued by Product Area Production Control to Production to cover the

manufacturing of tubular products and welding products. Work orders for Code material and their

revisions are reviewed and approved by Product Area Quality Professional or designee to assure

proper requirements are transferred from the Customer Order. The work order will detail material

grade, size, heat number, lot number, method and sequence of manufacture and any special 5

production, inspection, testing, and examination requirements per the Customer Order, Code, or

applicable level for non-Code Work.

Material assigned to a work order shall be only material accepted per Section 5, “Control of

Purchased Materials, Source Materials, and Services” of this Manual. 10

Production Control identifies on the work order the specific lot number and heat number of the source

material to be used, and Product Area Quality Professional or designee reviews the work order for

tubular products and welding and wire products for ASME Code III material prior to issuance to verify

the acceptability of the material as indicated. This acceptance is based on the following: (1) Material 15

applied meets the requirements of the material specification, Code and customer order; (2) All

procedures to meet the material specification and customer order are correct, accurate and in the

correct sequence; (3) That no violation of Code procedures are noted on the work order. When the

Product Area Quality Professional /QualityTechnician approves the work order, he/she will sign and

date the same. 20

The work order set may includes several copies identical with EXHIBITS 8 and 9. The primary copy

is used as the traveler copy. Other copies may be used by Inspection, Production Control,

Warehouse, Quality Assurance, or Production as needed.

25

Rework of material or products during manufacturing is limited to allowances in applicable material or

product specifications and customer orders. When rework is performed after testing or inspection

activities, the reworked material or product shall be re-tested or re-inspected, as applicable, per the





same acceptance criteria used for the initial testing or inspection. Rework or repair by welding shall

not be performed on any tubular products and welding material.

When deemed meaningful and when required by customer orders, process control plans and

statistical process control methods shall be developed and implemented and used for monitoring of 5

certain products or processes as specified in applicable Control Procedures and Instructions or

Operating Directives and Instructions.

Criteria for workmanship, when practical, is defined in applicable Control Procedures and

Instructions, in Operating Directives and Instructions, or by means of representative samples. 10

Material and products which are found to be nonconforming after rework, re-testing and re-inspection

shall be handled per Section 8.5, "Control of Nonconforming Material" per this Manual.

The following pages show detailed manufacturing and quality control flow diagrams for the flow of 15

material or product from the receiving stage to final release and shipping.





9.1.1 Detailed Manufacturing and Quality Control Flow Diagram for Pipe and Tube

All reworked material is re-tested and re-inspected. All nonconforming material is rejected. Source Material

Receiving Verification

Q.A. Approval Inventory Stock

Q.A. Work Order Review and Material Verification

Incoming Inspection

Manufacturing Linemarking

Testing Examination Inspection

Packaging Inspection

Q.A. Approval

Shipping

Material Receiving

Verification

Q.A. Approval

Inventory Stock

Customer Order

Processing

Certification





9.1.2 Detailed Manufacturing and Quality Control Flow Diagram for Cold Drawing of Wire from Hot

Rolled Rod

All reworked material is re-tested and re-inspected. All nonconforming material is rejected.

Source Material Hot Rolled Rod


Q.A. Approval Inventory Stock

Q.A. Work Order Review and Material Verification

Conditioning

Hold Q.A.

Release

Annealing Drawing Cleaning

Inspection Q.A. Approval

Intermediate Inventory Stock

Quality Assurance

Certification

Shipping

Drawing

In-Process Inspection





9.1.3 Detailed Manufacturing and Quality Control Flow Diagram for Bare Welding Electrodes and Rods

All reworked material is re-tested and re-inspected. All nonconforming material is rejected.

Source Material Cold Drawn

Wire Receiving Verification

Q.A. Approval

Inventory Stock Incoming

Inspection or Identity

Verification

Cutting

Cleaning

Bare Wire Tagging In-Process

Inspection

Packaging/ Labelling

Final Inspection

Q.A. Approval

Q.A. Certification

Sandvik Cold Drawn Wire

Spooling, Cleaning Labelling

Testing

Shipping

Identification





9.1.4 Detailed Manufacturing and Quality Control Flow Diagram for Strip Electrodes, Fluxes and Other

Types of Welding Materials, Manufactured by Outside Vendors Material


Q.A. Approval

Inventory Stock

Customer Order

Processing

Inspection Q.A. Approval

Q.A. Certification

Shipping

Marking and Labelling

Packaging

Inspection

Testing



Section: 7.4 Process Control Issue: 3 Revision: 0 Date: 04/08/2009Handling, Storage, Shipping, and Preservation Page: 1 Of: 1


Sandvik makes every effort to maintain high levels of cleanliness in its manufacturing and

warehouse operations through good housekeeping, which is encouraged by Sandvik

management.

The procedures for handling, protection and storage of materials and products to prevent 5

damage and deterioration as well as procedures for packing, marking and shipping, are written in

the form of Control Procedures and Instructions as required. They regulate, in detail, the special

procedures to be followed by Production and Quality Assurance personnel, as well as special

requirements regulated by specific customer requirements. When special procedures are

required, they are specified on the traveler and verified by inspector signature and date. 10

Standard practices meeting ANSI, ASME, ASTM, AWS, MIL and other specifications are used for

packing of tubular product and welding and wire products. When additional customer

requirements apply, they shall be indicated in the work order.

15

Handling, protection and storage is performed to minimize contamination of pipe and tubes after

final cleaning. Clean slings are used for carrying tube bundles with overhead cranes; plastic

sheets are also used as lining in shipping containers when so specified. When specified by the

customer, plastic end caps are used on each length of pipe and tube.



Section: 8.1.1 CONTROL OF EXAMINATIONS, TESTS, AND NONCONFORMING MATERIAL

Issue: 3

Revision: 0 Date: 04/08/2009Inspection, Examination, and Test Control - Inspection Page: 1 Of: 4


The overall inspection system for material and product examination utilizes Control Procedures

and Instructions and is designed in order to comply with requirements per ASME Code Section

III, ASME, ASTM, AWS and other specifications, as well as requirements as specified in

customer orders.

5

Inspection shall be performed by personnel trained and qualified in accordance with Section 2,

"Personnel", of this Manual and per approved Control Procedures and Instructions. Tubular

products and welding products per ASME Code Section III shall be inspected by qualified

inspectors. Personnel performing inspection shall be other than those who have performed the

activity being inspected and shall not report directly to the immediate supervisor responsible for 10

the work being performed.

Control of purchased material and product is accomplished by receiving verification activities in

accordance with approved Control Procedures and Instructions applicable to each Product Area.

15

The receiving verification includes verification of packing list to be in accordance with purchase

order and verification of material to be in accordance with packing list. When applicable, the

material verification includes product marking and identification. The verifications are

documented by responsible personnel by signing and dating applicable documents or by

controlled entry and exit when electronic storage of data and records is used. 20




Issue: 3



Certified Material Test Reports for tubular products and welding products are reviewed and

approved by the Product Area Quality Professional or designee. When electronic storage of data

and records is used for Certified Material Test Reports and Material Certificates, controls shall be

specified in an approved Control Procedure and Instruction.

5

All suppliers of source material, material and services are required to supply material certificates

with the material. Material organizations having an ASME Quality System Certificate (Materials)

shall certify that the material or service was produced under the provision of ASME Code and

include their Quality System certificate number and expiration date. Suppliers of source material

and subcontracted services and material organizations not having an ASME Quality System 10

Certificate which have been approved by the Director/Manager, Quality and Metallurgy shall list

the revision and date of the written program to which the source material, material, or service was

manufactured or supplied. It shall be the responsibility of Quality Assurance to verify that the

required information is correct. The Approved Supplier Listing for ASME Section III and Military

Applications shall be used as the principal reference document. 15

No material received is placed in allocatable inventory or applied to a work order or customer

order until receiving verification is completed and documented. All inventoried material shall be

identified and traceable to the procurement documents by heat number and purchase order

number/lot number. 20

Any material not conforming to the requirements per purchase order and material specifications,

will be rejected and so identified. It will be segregated to await Product Area Quality Professional

disposition in accordance with the nonconforming material handling procedure per Section 8.5,

"Control of Nonconforming Material", of this Manual. 25




Issue: 3



The identification of source material or material assigned to a work order shall be verified by

trained and qualified personnel per applicable approved Control Procedure and Instruction,

Process Outline, or Process Control Plan/Quality Control Plan.

When incoming inspection is required, it is performed by inspectors per approved Control 5

Procedures and Instructions referenced on the traveler.

In-process inspection of welding products and final inspection of pipe and tube and welding

products are performed by inspectors per approved Control Procedures and Instructions to verify

that material meets material specification and Code requirements. 10

Sampling of pipe and tube is done per MIL-STD-105E and ANSI Z1.4.

Sampling of semi-finished and finished material for bare electrodes, rods and welding inserts is

done per Specification MIL-E-19933 for stainless grades and MIL-E-21562 for nickel alloys, 15

copper-nickel and copper alloys.

Sampling and AQL is established in approved Control Procedures and Instructions.

Detection of a defect at inspection by sampling for Code material shall require the total inspection 20

of that lot of material for that attribute.

Acceptance of covered electrodes per Code requirements is based on inspection by Quality

Assurance per approved Control Procedure and Instruction.

25




Issue: 3



Customer inspection hold points are not normally used in the manufacturing process. However,

upon request from a customer, such hold points could be established for the purpose of customer

review and observation of final inspection and testing operations.

If material or products, at any stage in the process of manufacturing or during examination and 5

testing, is found to be nonconforming, and not capable to be re-worked, the material or product

will be handled in accordance with Section 8.5, "Control of Nonconforming Material", of this

Manual.

10




Issue: 3

Revision: 1 Date: 04/08/2009Inspection, Examination, and Test Control - Testing Page: 1 Of: 4


General

All testing is done in accordance with approved Control Procedures and Instructions, Laboratory

Procedures and Instructions, and customer requirements. The Product Area Quality Professional

or Materials Laboratory personnel review test procedures and documents and verify by signing

and dating that all test results meet the applicable requirements. No material or products will 5

receive final approval and certification from the Quality Assurance Department unless the

required tests are performed and the results are documented and verified to be within acceptable

limits.

Test samples are identified as a minimum by work order or lot number, which is traceable to 10

specification, size and heat number. Identification is done by the individual responsible for

collecting samples and is maintained by laboratory personnel.

Destructive testing such as physical testing and corrosion testing is performed by Materials

Analysts in Sandvik's Materials Laboratory in accordance with applicable specifications and 15

customer requirements. Test material is identified, at a minimum, by work order number, which is

traceable to specification, size and heat number. Identification is verified by laboratory personnel

when collecting samples and is maintained by laboratory personnel during testing.

Nondestructive examinations are performed by Sandvik or by an approved supplier of testing 20

services. Approved procedures, which assure compliance with ASME Code Section III,

applicable material specifications and customer requirements, are issued and maintained on a

controlled copy basis by the Quality Assurance Department, along with applicable personnel

qualifications.

25

The Sandvik Level III person prepares the written practice in the form of a Control Procedure and

Instruction, which shall comply with the applicable edition of SNT-TC-1A. For material per ASME

Code Section III requirements, the written practice shall comply with SNT-TC-1A (edition as




Issue: 3



specified in the Code) and the Code. The written practice is approved by the Director/Manager,


When nondestructive examination is performed by an approved supplier of services in

accordance with the ASME Code, the following shall apply:

(1) The suppliers written practice shall be reviewed and approved by the Director/Manager, 5

Quality and Metallurgy as complying with SNT-TC-1A (edition as specified in the Code) and

the Code;

(2) The supplier personnel qualification records are reviewed and approved by the

Director/Manager, Quality and Metallurgy or Level III person;

(3) The nondestructive examination procedures to be used by the supplier shall be the Sandvik 10

Control Procedure and Instruction or the supplier's procedure approved by the

Director/Manager, Quality and Metallurgy, or Sandvik Level III. The nondestructive

examination procedure shall be specified on the purchase order;

(4) Supplier's nondestructive examination report shall be reviewed and approved by the Product

Area Quality Professional. At a minimum, these nondestructive reports shall indicate the 15

applicable examination procedure, the name and qualification level of the individual

performing the examination, reference to Sandvik purchase order/work order, number of

pieces examined, and number of pieces accepted.

Pipe and Tube 20

Testing is scheduled in the production operation sequence. Testing is performed to assure

compliance with applicable materials specifications, ASME Code Section III, and customer

requirements. These requirements are specified on Product Requirement Review Sheet listed on

the traveler. Detailed Control Procedures and Instructions for testing are listed on the traveler and

are available at each test station and maintained on a controlled copy basis by Quality 25

Assurance. They are available for review and approval by customers upon request.




Issue: 3



Welding Materials

Testing is performed to assure compliance with applicable materials specifications, ASME Code

Section III, MIL, and customer requirements. These requirements are specified on Product

Requirement Review Sheet listed on the traveler. Tests performed by Sandvik on welding

materials are chemical analysis, ferrite determinations, all-weld metal tensile tests, fillet weld 5

tests, groove weld usability tests and bend tests.

Test welding is performed in the Welding Laboratory by the test welder and the Materials

Laboratory personnel perform the chemical analysis and physical testing as specified on the

specification review sheet. 10

Radiography testing of weld plates per MIL specifications, customer or Code requirements is

performed by an approved outside testing laboratory.

In order to meet the requirements of certain MIL Specifications for welding materials, weld metal 15

material for MIL and Code applications is subjected to alloy identity testing during incoming

inspection. This alloy identity testing is performed by inspectors and/or Materials Laboratory on

each coil of hot rod and each coil, and capstan or spool of cold drawn. It involves the use of an

optical emission spectrometer or chemical analysis or other approved methods as specified in

approved Control Procedure and Instruction for alloy identity testing. Alloy identity testing is 20

documented by the inspector signature and date on the traveler.

Such controls of welding materials identity for MIL and Code applications are also applied at the

time of splicing by welding during further processing by Sandvik Materials Technology or its

vendor. 25




Issue: 3



Welding Products

Testing is performed to assure compliance with applicable materials specifications and customer

requirements. Chemical analysis and mechanical testing is performed by the Materials

Laboratory.

5



Section: 8.2 CONTROL OF EXAMINATIONS, TEST, AND NONCONFORMING MATERIAL Issue: 3 Revision: 0 Date: 04/08/2009Control of Measuring and Test Equipment Page: 1 Of: 3


Measuring and test equipment must be calibrated, used and properly maintained to assure

accuracy within necessary limits.

The calibration program is documented in a Control Procedure and Instruction. The program,

based on MIL-STD-45662A and ISO 10012, provides for the control of the accuracy of the 5

measuring and test equipment which is used to assure that supplies and services presented to

the government or a customer representative for acceptance, are in conformance with prescribed

technical requirements.

Calibration is performed by the Quality and Metallurgy Function or by a qualified subcontractor of 10

calibration services.

New and repaired measuring and test equipment is calibrated and/or verified prior to use. Master

gauge blocks used for calibration and instruments to be calibrated will be kept at the same

maintained temperature (+/-5oF) before and during calibration to eliminate any deviation due to 15

temperature change.

All measuring and test equipment shall be identified, serialized and a calibration record file

maintained by the Quality and Metallurgy Function. All measuring and test equipment records

shall identify the equipment and show the frequency of calibration requirements, tolerances, 20

results, procedure and revision used, traceability to the standard used, the name of the person

performing the calibration, and the date of calibration. Where appropriate, steps shall be taken to

prevent possible adjustments to measuring equipment that would invalidate the calibration and

subsequent measurement results. This may include, but is not limited to, removing wrenches

from the storage boxes and sealing adjustment screws with wax. 25





Records may consist of electronically-maintained records (See Section 3.4 For Computer

Security) or certifications from suppliers of calibration services.

The boxes or receptacles where the instruments and gauges are stored shall be properly

identified with the identification traceable to the instruments, and any defective and obsolete 5

gauges shall be immediately withdrawn from use and records shall be noted accordingly.

Calibration stickers are used to indicate date of calibration and next calibration due date and the

initials of the person performing the calibration.

All measuring and test equipment shall be calibrated utilizing reference standards whose 10

calibration is certified as being traceable to national standards, where such standards exist, or

the equipment manufacturer's recommended standards. Reference standards requiring

calibration by a high level standards laboratory shall be calibrated by an approved commercial

facility capable of providing the required service, a government laboratory or by the National

Institute of Standards and Technology (NIST). All reference standards used in the calibration 15

system shall be supported by certificates, reports, instrumentation identification and data sheets

attesting to the date, accuracy and conditions under which the results furnished were obtained.

The calibration source (Quality and Metallurgy Function or subcontractor) shall notify the

responsible Product Area Quality Professional in writing of measuring and test equipment found 20

to be out-of-tolerance. Measuring and test equipment damaged is considered out-of-tolerance.

When periodic checks to determine that calibration is maintained are performed by someone

other than the Quality and Metallurgy Function, necessary adjustments and re-calibration, as

deemed necessary, shall be performed by the Quality and Metallurgy Function. 25





Equipment for mechanical testing, such as tensile testing machines, hardness testers, equipment

for temperature control, pressure gauges, are calibrated at the established intervals by an

approved outside supplier of calibration services.

Calibration records will include the certification of equipment from the supplier with the results of 5

their test referenced in Sandvik's gauge records. The certification shall be checked by Quality

and Metallurgy Function personnel to verify that the certification is signed and dated and that the

equipment is within the specified tolerances as stated on the gauge record card. When it is

determined that the certification is in compliance with the above, gauge records will be updated

accordingly. 10

Standard nondestructive examination equipment is calibrated per approved Control Procedure

and Instruction, and calibration records and controls shall be in accordance with this section of

the Manual.

15

For chemical analysis equipment calibration is performed and maintained by Materials Laboratory

personnel. Calibration records for this kind of equipment is maintained and stored by the

Materials Laboratory personnel and shall be traceable to the equipment serial number.



Section: 8.3 CONTROL OF EXAMINATIONS, TEST, AND NONCONFORMING MATERIAL Issue: 3 Revision: 0 Date: 04/08/2009Discrepancies in Measuring and Test Equipment Page: 1 Of: 1


The Product Area Quality Professional shall document what corrective action is required for the

material or products which the defective measuring and test equipment could have been used on

since the last valid calibration of the measuring and test equipment. Since Sandvik does not use

specific measuring and test equipment, all material or product of the size, condition, or process

applicable to the use of the measuring and test equipment is considered suspect. If a review 5

determines that all applicable material or product requirements have not been met, the Product

Area Quality Professional shall prepare a Nonconforming Material Report identifying the involved

material or product by work order number and heat number. The Nonconforming Material Report

shall be processed in accordance with Section 8.5, "Control of Nonconforming Material" of this

Manual. When nonconforming material already has been shipped, the customer shall be notified 10

in writing of the condition.



Section: 8.4 CONTROL OF EXAMINATIONS, TESTS, AND NONCONFORMING MATERIAL

Issue: 3

Revision: 0 Date: 04/08/2009Inspection and Test Status Page: 1 Of: 1


Throughout the entire manufacturing operation sequence, the inspection and test status is

identified by a series of recording and labeling activities.

The system is designed to ensure that no material or product is dispatched until all the specified

inspection and testing activities have been satisfactorily completed and the associated data and 5

documentation have been reviewed and approved by authorized personnel.

Verification of compliance to customer orders, work orders and Product Requirements Review

Sheets is accomplished prior to shipping or stocking, and when the material or product is ready to

be certified. At the time of certification, Quality Assurance is responsible for having compiled all 10

required information to assure that the detailed requirements are met. This is accomplished by

the Product Area Quality Professional or designee review and approval of inspection and test

reports, material certificates for source material, laboratory test reports and any other special

document(s) generated during manufacturing.

15

The status of tests performed upon individual work orders of material is indicated on the traveler

by signing off by production supervisor or inspectors. Testing, examination, and inspection

reports are issued by SNT-TC-1A qualified inspectors for nondestructive testing and inspectors

for final inspection in accordance with Control Procedures and Instructions. See Section 8,

"Control of Examinations, Tests, and Nonconforming Material" of this Manual. 20




Issue: 3

Revision: 0 Date: 04/08/2009Control of Nonconforming Material Page: 1 Of: 2


If material or product is suspected to be nonconforming to the Code or any other applicable

requirements anytime during the processing, including receiving verification and incoming

inspection, the suspect material or product shall have a yellow Hold Tag (EXHIBIT 7) or a

uniquely numbered Nonconforming Material Report (NCMR) (EXHIBIT 17) or a red Reject Tag

(EXHIBIT 5) referencing the NCMR number applied or shall be scrapped immediately using the 5

scrap bins/hoppers throughout the facility. The yellow hold tag shall contain the work order

number as a minimum, and shall remain on the material or product until it has been established

by the Product Area Quality Professional or designee whether a nonconformance exists or if the

material or product can be reworked or reprocessed. If the material or product is found to be

nonconforming, the inspector shall remove the yellow hold tag, create an NCMR and tag the 10

material or product with a copy of the NCMR or a red reject tag. When the material or product is

scrapped immediately, the quantity and reason for the scrapping shall be recorded on the traveler

by the inspector or production supervisors.

All material or product, which has been rejected (regardless of reason), is segregated by the 15

inspector. The inspector administers the use of the reject tags and is responsible for the

recording of the necessary information from the nonconformance to the tags. He is also

responsible for the distribution of the reject information. The hard copy of the tag is attached to

the material or product, and all relevant information is electronically transmitted to Product Area

Quality Professional for disposition of the material. When there are several loose units included 20

on rejection tag, such as several skids of material, additional red reject tags will be attached by

the inspector to each individual item, and this tag shall be marked with the number of the original

NCMR.

The Product Area Quality Professional maintains a Nonconforming Material Report as the 25

permanent record of all rejections and dispositions of reject material or product.




Issue: 3

Revision: 0 Date: 04/08/2009Control of Nonconforming Material Page: 2 Of: 2


The Product Area Quality Professional or his designee approves the disposition of all

nonconforming material or product. The Product Area Quality Professional may decide and then

issue the disposition. When deemed necessary by the Product Area Quality Professional, the

disposition will be made by representatives of Quality Assurance, Sales, Materials, or Production.

5

When material or product received from outside suppliers is found to be non-conforming or

suspect during receiving verification, incoming inspection or any later stage of manufacturing or

processing, the supplier will be notified when necessary by the Product Area Quality Professional

of the reason for rejection by the forwarding to them of the applicable Nonconforming Material

Report. 10

To insure that the disposition is carried out, when the material or product is disposed of per

instructions, the hard copy of the reject tag, which was physically attached to the material, or

product is removed by the person verifying the disposition. This person shall remove the tag

when the disposition of the material or product is satisfactorily carried out. This person will then 15

forward the necessary disposition information to the Product Area Quality Professional or

designee. The Product Area Quality Professional or designee will then use this information to

generate the necessary objective evidence of proper material or product disposition.

When disposition of nonconforming material or products is complete, the Product Area Quality 20

Professional shall review the nonconformance for possible corrective action in accordance with

Section 9.2, "Corrective Action" of this Manual.

Nonconforming material or product that cannot be used for further processing and must be

scrapped shall be segregated and identified as scrapped material or product(s). The 25

identification can be made by tags, marking by paint, cutting up to short lengths or collected in

scrap bins prior to disposal.



Section: 9.1 AUDITS AND CORRECTIVE ACTIONS Issue: 3 Revision: 1 Date: 01/03/2011Audits Page: 1 Of: 2


In order to have independent internal control and provide timely feedback information in the

effectiveness of the entire Quality System Program, planned and periodic audits are performed

per Control Procedure and Instructions by an audit team such that the entire program is audited

annually. The timing shall be established by a schedule maintained by the Director/Manager,

Quality and Metallurgy for such audits. It will be the responsibility of the audit team by the use of 5

checklists approved by the Lead Auditor to determine that quality activities as documented in the

Quality Assurance Manual and Control Procedures and Instructions are effective and being

followed correctly. It is also their responsibility to identify problem areas and initiate corrective

action. The audits shall also determine that the document control system for Quality System

documents per Section 3.3, "Document Control" of this Manual is effective. 10

Internal audits are directed by a lead auditor whose qualification shall be based on education and

experience; (Appendix 2A-3 of ANSI/ASME NQA-1, 2008 Edition, 2009a Addenda shall be used),

training and written examination (passing an internally administered qualification examination or a

grade/certificate from an externally assessed Lead Auditor Training Course and Examination), 15

and audit participation (participated in a total of five (5) audits within three years) per an approved

Control Procedure and Instruction, and designated as a lead auditor by the Director/Manager,

Quality and Metallurgy, and are performed by persons knowledgeable in the area being audited.

Qualification of internal audit team members is covered in separate Control Procedures and

Instructions and shall be accomplished by the audit team leader through a pre-audit briefing. 20

This briefing will consist of the following topics:

1. Description of basic Quality System and review of Manual.

2. Review of present Control Procedures and Instructions. This review is done to enable

the audit team to know what guidelines should be used in auditing specific areas. 25

3. Review of audit checklist and areas to be audited.

4. Manner in which the audit is to be performed.



Section: 9.1 AUDITS AND CORRECTIVE ACTIONS Issue: 3 Revision: 1 Date: 01/03/2011Audits Page: 2 Of: 2


5. Review of last internal audit report.

Written evidence of the briefing shall be placed in the internal audit file. The audit team shall

consist of representatives drawn from various functions within the organization, as appointed by

the audit team leader. The audit shall be designed so that when a particular area is being 5

audited, the person(s) performing the audit in this specific area shall not have direct responsibility

for the activity being performed. This specifically includes the Quality Assurance Department.

Audit results shall be recorded on the audit checklist.

To supplement the internal audit of the Quality Assurance Department, external SMT qualified 10

lead auditors may be utilized to audit Quality Assurance activities on a biannual basis, at a

minimum.

Formal audit reports shall be issued by the audit team leader within seven days and submitted to

responsible product area management for review including the President, Sandvik Materials 15

Technology, the Vice President, Product Area Tube, the Production Unit Manager – Product Area

Tube, the Vice President, Product Area Wire, and the Director/Manager, Quality and Metallurgy.

The Director/Manager-Quality & Metallurgy shall also be provided with a copy of the audit

checklists. It shall be the responsibility of the audit team leader to initiate corrective action per

Section 9.2, "Corrective Action" of this Manual for the audit findings. The Director/Manager, 20

Quality and Metallurgy shall cause follow-up of audit findings to assure adequate resolution. The

completed Corrective Action Report shall be reviewed for objective evidence of corrections of the

findings. A follow-up audit may be required when considered necessary by the




Section: 9.2 AUDITS AND CORRECTIVE ACTION Issue: 3 Revision: 0 Date: 04/08/2009Corrective Action Page: 1 Of: 2


A corrective action program is established and documented in a Control Procedure and

Instruction to assure prompt identification of discrepancies and conditions adverse to quality. The

Product Area Quality Professional is responsible for reporting these conditions to the

management of the area where the discrepancies are found on a Corrective Action Report

(EXHIBIT 19 for tubular products and welding products). These areas include but are not limited 5

to: Production Departments, Sales Departments, Purchasing, Traffic, Quality Assurance,

suppliers of materials and products, subcontracted services, customer complaints and reports of

product nonconformities.

Quality Assurance shall use the Corrective Action Report to identify the discrepancy, the 10

requirement and may provide a recommendation. The Report will be sent to the responsible

individual requesting the cause of discrepancy, action taken to correct the discrepancy, action

taken to prevent recurrence, and to eliminate the root cause of nonconformities. The responsible

individual shall also indicate the timing required for completion. The Corrective Action Report is

used by Quality Assurance for documentation and for reporting corrective action to appropriate 15

levels of management within Sandvik Materials Technology.

A time limit shall be specified for the reply. When the response indicates that the corrective

action has been implemented promptly, the Product Area Quality Professional shall ensure that

corrective action was taken and that it is effective. When the corrective action cannot be 20

immediately implemented, the Product Area Quality Professional shall follow up, verify, and

document the implementation of the corrective action within an appropriate time frame, based on

the estimated completion date, to ensure that it is effective and in place. If the response is found

to be inadequate or ineffective, a second Corrective Action shall be escalated to a higher level of

management by the Product Area Quality Professional. 25

Repetitive nonconformances and trends shall be considered by the Product Area Quality

Professional. For repetitive nonconformances and trends, a separate Corrective Action Report



Section: 9.2 AUDITS AND CORRECTIVE ACTION Issue: 3 Revision: 0 Date: 04/08/2009Corrective Action Page: 2 Of: 2


shall be issued by the Product Area Quality Professional. The analysis shall be reported to and

actions followed up by the Product Area Quality Improvement Teams or Management Teams.

Based on the results of corrective actions and trends, changes to documented procedures shall

be made as needed. 5

When defective material or products or conditions adverse to quality are identified as resulting

from material supplier or subcontractor nonconformance and requiring corrective action as

determined by the Product Area Quality Professional, a Nonconforming Material Report (EXHIBIT

17) which refers to a Corrective Action Report for Tubular Products and for Welding Products 10

(EXHIBIT 19) shall be issued by the Product Area Quality Professional.

Vendors and subcontractors not providing adequate corrective action shall be removed from the

Approved Supplier List for ASME Section III and Military Applications. For ASME Code Section

III requirements, this removal shall be made by the Director/Manager, Quality and Metallurgy. 15

Rules for reporting of safety-related defects and noncompliances per 10CFR21 are established in

an approved Control Procedure and Instruction.



Section: 10 CERTIFICATION REQUIREMENTS Issue: 3 Revision: 0 Date: 04/08/2009 Page: 1 Of: 2

G:\Quality Assurance\Controlled Documents\ASME Manual\Issue 3 Revision 0\10 Issue 3 Rev 0.DOC

A Certified Material Test Report (CMTR) shall be furnished, certifying conformance to

specification or customer requirements.

Material Certificates (Certified Material Test Reports -- EXHIBIT 20) for Code material and MIL

specification material shall be prepared and signed by the Director/Manager, Quality and 5

Metallurgy or designee. A prior review of the material purchase and production records shall

have been made to assure the Director/Manager, Quality and Metallurgy or desigee, that all

requirements of the customer's purchase order have been met.

The Certified Material Test Report (CMTR) shall affirm that the contents of the report are correct 10

and accurate and that all test results and operations performed by Sandvik Materials Technology

or its subcontractor are in compliance with material specification and the specific applicable

material requirements of the ASME Code Section III. It shall include the actual results of all

required chemical analysis, tests and examinations and specific times, temperature ranges and

cooling rates, where applicable, to the heat treatment of pipe, tubes and weld test specimens. 15

Chemical analysis, tests, examinations and heat treatments required by the purchaser that were

not performed shall be indicated. The applicable Sandvik ASME Quality System Certificate

Number and expiration date shall be included on the certificate for Code material when the

requirements of this Quality Manual have been met.

20

The certification shall identify the applicable material by heat and/or lot number and shall include

the test results and operations performed by Sandvik and identify those performed by its

subcontractors. All approved certifications received from other Material Organizations or

approved suppliers for required chemical analysis (including melting mill heat analysis), heat

treatments, tests and examinations shall be furnished as an identified attachment to the Certified 25

Material Test Report. When operations other than chemical analysis, heat treatments, tests and

examinations are subcontracted, these operations and the approved suppliers performing these

activities shall be listed on the Certified Material Test Report, or the approved suppliers



Section: 10 CERTIFICATION REQUIREMENTS Issue: 3 Revision: 0 Date: 04/08/2009 Page: 2 Of: 2

G:\Quality Assurance\Controlled Documents\ASME Manual\Issue 3 Revision 0\10 Issue 3 Rev 0.DOC

certification for the operation shall be furnished as an attachment to the Certified Material Test

Report.

Where Sandvik supplies and certifies material procured from another Material Organization per

ASME Code Section III requirements, the certificate shall affirm that the contents of the report are 5

correct and accurate and that all test results and operations performed by Sandvik Materials

Technology or its subcontractor are in compliance with material specification and the specific

applicable material requirements of the ASME Code Section III; and identify the applicable

material by heat and/or lot number, and include those operations performed by Sandvik and

identify those performed by its subcontractors. Sandvik shall, as a Material Organization, 10

transmit with this certificate a copy of producing Material Organization’s Certified Materials Test

Report, and subcontractor’s certificate, and shall include the Sandvik Quality System Certificate

Number and expiration date on the Sandvik Certified Material Test Report (CMTR), when the

requirements of this Manual have been met.

15

When product form conversion is performed, the Certificate shall state that the material conforms

to the applicable dimensional requirements of the material specification and the ASME Code

Section III.

Sandvik will supply upon request any additional records of any subcontracted service, plus a 20

statement of compliance with all materials.

When unqualified source material is used, per ASME Code Section III requirements, Sandvik

shall transmit the source material manufacturer's heat analysis and the CMTR shall include the

product analysis of each piece of source material used. In addition, the result of all other tests, 25

examinations or treatments per the Material Specification, shall be included on the Certified

Material Test Report for each piece of source material.



Section: 11.1 FORMS AND DOCUMENTS Issue 3 Revision: 0 Date: 04/08/2009List of Forms and Documents Page: 1 Of: 1

G:\Quality Assurance\Controlled Documents\ASME Manual\Issue 3 Revision 0\Section 11 - Exhibits\11-1 R0.doc

The below-listed forms and documents are examples of those used in the Quality Systems. Modifications to these forms and documents can be made without revising this section of the Manual, provided the forms and documents, as a minimum, contain all of the information from the superseded form/document(s). However, at the next issuance of the manual, all forms shall be brought up to their current revision regardless. EXHIBIT NUMBER

TITLE

REVISION NUMBER

REVISION DATE

1 Sales Order 0 04/08/2009

2 Specification Review Sheet/Product Requirements Review for Tubular Products

0 04/08/2009

3 Specification Review Sheet/ Product Requirements Review for Welding Material and Wire Products

0 04/08/2009

4 Laboratory Request Item Form 0 04/08/2009

5 Reject Tag 0 04/08/2009

6 Quality Manual Acknowledgment Letter 0 04/08/2009

7 Hold Tag 0 04/08/2009

8 Tube Production Work Order (Shop Traveler) 0 04/08/2009

9 Welding and Wire Production Work Order (Shop Traveler) 0 04/08/2009

10 Bundle Identification Tag for Tubular Products 0 04/08/2009

11 Final Inspection Form for Tubular Products 0 04/08/2009

12 Material Identification Tags (Welding and Wire Products) 0 04/08/2009

13 OK to Process Tag 0 04/08/2009

14 Laboratory Test Report (Tubular Products) 0 04/08/2009

15 Eddy Current Test Report (Tubular Products) 0 04/08/2009

16 Ultrasonic Test Report (Tubular Products) 0 04/08/2009

17 Nonconforming Material Reports 0 04/08/2009

18 Process Control Plan/Quality Control Plan (SAMPLE) 0 04/08/2009

19 Corrective Action Report (Tubular and Welding Products) 0 04/08/2009

20 Certified Material Test Reports (Tubular and Welding Products)

0 04/08/2009

21 In-Process and Final Inspection Report for Bare Electrodes, Rods, and Welding Products Cut or Spooled by Sandvik Materials Technology

0 04/08/2009

SANDVIK MATERIAL TECHNOLOGY QUALITY MANUAL ASME Code Section III


Section: 11.2 EXHIBIT 1 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Sales Order Page: 1 Of: 1

G:\Quality Assurance\Controlled Documents\ASME Manual\Issue 3 Revision 0\Section 11 - Exhibits\11-2-1 R0.doc



Section: 11.2 EXHIBIT 2 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Specification Review Sheet/Product Requirements Review for Tubular Products Page: 1 Of: 3

G:\Quality Assurance\Controlled Documents\ASME Manual\Issue 3 Revision 0\Section 11 - Exhibits\11-2-2 R0.DOC


PRODUCT AREA WIRE * * * PRODUCT AREA WIRE

Section: 11.2 EXHIBIT 3 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Specification Review Sheet/Product Requirements Review for Welding Material and Wire Products Page: 1 Of: 2



PRODUCT AREA WIRE * * * PRODUCT AREA WIRE

Section: 11.2 EXHIBIT 3 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Specification Review Sheet/Product Requirements Review for Welding Material and Wire Products Page: 2 Of: 2




Section: 11.2 EXHIBIT 4 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Laboratory Request Item Form Page: 1 Of: 1


ELECTRONIC FORMAT



Section: 11.2 EXHIBIT 5 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009 Reject Tag Page: 1 Of: 1


RED WITH BLACK PRINT



Section: 11.2 EXHIBIT 6 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Quality Manual Acknowledgment Letter Page: 1 Of: 1




Section: 11.2 EXHIBIT 7 FORMS AND DOCUMENTS Issue: 2 Revision: 0 Date: 04/08/2009Hold Tag Page: 1 Of: 1

YELLOW WITH BLACK PRINT



Section: 11.2 EXHIBIT 8 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Tube Production Work Order (Shop Traveler) Page: 1 Of: 4




Section: 11.2 EXHIBIT 9 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/209Welding and Wire Production Work Order (Shop Traveler) Page: 1 Of: 1




Section: 11.2 EXHIBIT 10 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Bundle Identification Tag for Tubular Products Page: 1 Of: 2


Side 1 Side 2 WHITE WITH RED PRINTING, BLUE WITH BLACK PRINTING



Section: 11.2 EXHIBIT 10 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Bundle Identification Tag for Tubular Products Page: 2 Of: 2


Side 1 Side 2 WHITE WITH RED PRINTING, BLUE WITH BLACK PRINTING, OR ORANGE WITH BLACK PRINTING



Section: 11.2 EXHIBIT 11 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Final Inspection Form for Tubular Products Page: 1 Of: 1



PRODUCT AREA TUE * * * PRODUCT AREA WIRE

Section: 11.2 EXHIBIT 12 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Material Identificaton Tags (Welding and Wire Products) Page: 1 Of: 2



PRODUCT AREA TUE * * * PRODUCT AREA WIRE

Section: 11.2 EXHIBIT 12 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Material Identificaton Tags (Welding and Wire Products) Page: 2 Of: 2




Section: 11.2 EXHIBIT 13 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009OK to Process Tag Page: 1 Of: 1


GREEN WITH BLACK PRINT



Section: 11.2 EXHIBIT 14 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Laboratory Test Report (Tubular Products) Page: 1 Of: 1




Section: 11.2 EXHIBIT 15 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Eddy Current Test Report (Tubular Products) Page: 1 Of: 1




Section: 11.2 EXHIBIT 16 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/20093Ultrasonic Test Report (Tubular Products) Page: 1 Of: 1




Section: 11.2 EXHIBIT 17 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Nonconforming Material Reports Page: 1 Of: 3


Electronic Format – All Areas





Electronic Format – NADC Only!



Section: 11.2 EXHIBIT 18 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Process Control Plan/Quality Control Plan (SAMPLE) Page: 1 Of: 1


SANDVIK MATERIALS TECHNOLOGY

QUALITY MANUAL ASME Code Section III


Section: 11.2 EXHIBIT 19 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Corrective Action Report (Tubular and Welding Products) Page: 1 Of: 3


ELECTRONIC FORMAT (INTERNAL CORRECTIVE ACTION) – ALL AREAS






ELECTRONIC FORMAT (SUPPLIER CORRECTIVE ACTION) – ALL AREAS



Section: 11.2 EXHIBIT 20 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009Certified Material Test Reports (Tubular and Welding Products) Page: 1 Of: 4




Section: 11.2 EXHIBIT 21 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009In-Process and Final Inspection Report for Bare Electrodes, Rods, and Welding Products Cut or Spooled by Sandvik Materials Technology Page: 1 Of: 2




Section: 11.2 EXHIBIT 21 FORMS AND DOCUMENTS Issue: 3 Revision: 0 Date: 04/08/2009In-Process and Final Inspection Report for Bare Electrodes, Rods, and Welding Products Cut or Spooled by Sandvik Materials Technology Page: 2 Of: 2
