NGA 2015 Fall Operations Conference

Ralph Storti and

Tony Pezzulo

Safety, Quality & Training Initiatives @ South Jersey Gas

Understanding a Utility’s methodology to QA

Who is Storti Quality Consulting?

Overview of a Quality Assurance (QA) Program

– Benefits, Implementation and Assessment

Contractor Inspections

– Internal vs. Third Party

– Benefits

Questions

Approximately 364,000 customers Serves 7 southern counties of NJ

South Jersey Gas Company Key Drivers include:

Employee & Public safety

Employee & Contractor Qualifications

Infrastructure Replacement

Customer Growth & Conversions

Working Safely

Process Improvement – Eliminating wasteful steps

Adding value to the Customer – e.g. private mark outs

Conformance with Standards & Regulatory Requirements

SJG has adopted all of the above

Comprehensive Field Assessments of our employees

and contractor sites will drive issue identification -

find/fix

Current Focus:

Field Assessments via Safety & Quality Groups

Contractor Safety Meetings

Job Risk Assessment project

Training

The objective of this program is to create a pipeline of qualified individuals from which SJG, and our contractors, could draw resources.

• Current Focus

• Best Practices & SJG Book of Metrics

• Shows where we stand relative to the Industry

Helps identify P.I. areas

Emergency Response Team

As Built Records

Meter Inventory Procedures

Damage Prevention – supports employee & public safety –

Contractor Management – supported infrastructure replacement construction activities - resulted in a Quality Group and a Traceability Strategy

Leak Response Team

Go to the actual place where the work happens

Talk to the people who actually perform the work

Map the process as it actually happens then let the customer pull the process ( drive improvements )

Our Customers & Contractors were part of the effort

• Customer Experience Team – review business process to improve Customer Satisfaction

• Current Focus

• New Business & existing Customer Issues via focus groups, cross functional team

• Restoration process – tracking & QA/QC

• Customer Commitment Team

• Employee & Contactor Customer expectations

Audit Contractor Training

Licensed Plumbers to be used when moving meters inside to outside.

NGA OQ

Contractor Quality Program

• RAB Certified Quality System Auditor

• SBA Registered Veteran Owned Business

• 31 Years of Electric and Gas Utility QA Experience

• Independent Audits of Utility and Contractor QA Programs

• American Society of Quality Member

• Northeast Gas Association Plus Member

• To reduce both technical and programmatic risks; that is, risks thatthe facilities and equipment will not perform as intended.

• To minimize the risk that unacceptable conditions will goundetected.

• To ensure the quality of work.

• To be equal to or greater than the requirements listed in the QAProgram of the Utility being served.

Organization Inspection

Indoctrination, Training, Qualification Test Control

Design Control Control of Measuring & Test Equipment

Procurement Document Control Handling, Storage, and Shipping

Instructions, Procedures, Drawings Inspection, Test, and Service Status

Document Control Control of Non-Conformances

Control of Purchased Material Corrective Actions

Identification of Purchased Material Quality Assurance Records

Control of Special Processes Internal Audits

Quality Assurance - Comprises administrative and procedural activities implemented in a quality system, to verify that all program requirements and goals are achieved.

Quality Control - Is a process by which an inspector reviews the quality of field activities, to ensure all installation requirements have been met.

The purpose of creating a QA Plan is to identify, documentand specify the activities that will comprise a QualityAssurance Program (What and Why).

Assess current practices. Develop, approve, then implementthe program.

The mission is to provide a safe work environment for allemployees, including contractors.

The vision is to promote interaction between the utility andcontractors to increase performance, but not cost.

• Maintain consistent level of inspections to validate contractorQC Inspection Results.

• Inspectors identify trends and verify field critical scopechanges (i.e. Design, Obstacles, Rock, Customer Issues, etc.).

• Favorable acceptance by Regions and Business Units creates astronger unity between the two.

• Raise the level of customer satisfaction.

• Inspectors validate performance against invoices to confirmbilling.

• Accurate as-builts from contractors which can minimizepossibility of catastrophic events.

Policy

Manual

Procedures

Forms

Management Statement

“What” and “Why”

“How” to Do It

Documentation

In 2006 Crown Pipeline and J.F. Kiely Construction were awarded Blanket Contracts.

Crown Pipeline QA Program was developed and approved by SJ Gas on June 19, 2006.

J.F. Kiely Construction QA Program was developed and approved by SJ Gas on June 4, 2007.

In 2015 Utility Line Services and Kline Construction were added as Blanket Contractors.

Utility Line Services QA Program was developed and approved by PECO on June 30, 1998.

Kline Construction along with Storti are in the process of developing their QA Program for approval.

Summary of Independent Audit Corrective Actions

Contractor 2011 2012 2013 2014 2015

1 10 16 7 9 6

2 24 24 10 10 3

3 103 59 51 74 20

Over 5 year period, performance continues to improve* Self-Identified Program Enhancements are Positive.

Summary of Independent Audit Program Enhancement

Do What You Plan

Document What You Did

Author unknown

Independent – Unproven Performance. Inspections are performed byIndependent QC Inspectors only.

Quality to the Line – Proven Performance. Inspections may beperformed by Qualified Field Forces or Independent QC Inspectors.

All inspections are validated by the use of Radom Utility Inspectors.The goal is for contractor monthly satisfactory performance to bebetween 94% and 98%.

Unsatisfactory contractor inspections should be equal to or no lessthan a 1% delta to the total number of utility inspections found.

Note: This is not an exact science; however a proportionatecomparison can be made.

Initial inspections, found to be unsatisfactory, shall be documented as such, brought to the attention of the foreman, and if corrected documented as a satisfactory re-inspection. This will change behaviors of relying on the inspector.

Inspections would include, but are not limited to, Operator Qualifications, mark-out number-date, equipment calibration, trench depth width separation, fusion, welding, jeeping, caution tape, tracer wire, mercury regulator removal, gas/air test pressure, purging, backfill material, meter set, paving and restoration, and safety.

• Prepare Audit Plan and Audit Schedule

• Review QA System Documents and prepare Audit Checklists

• Conduct On–Site Audit Entrance Meeting

• Conduct SME audit interviews and document all observations

• Conduct On–Site Audit Exit Meeting

• Issue Final Audit CAR’s, PE’s and Audit Report

• Revise procedures and associated exhibits from Audit

• Prepare & send revised procedures & exhibits for review/comment

• Close CAR and PE Reports from Audit

• Prepare Audit Closeout Verification Report

• Issue Close CAR, PE, and Audit Closeout Verification Reports

• Send procedures and exhibits for approval and distribution

A fundamental QA technique is the audit, which looks at aprocess or equipment in depth and compares it to establishedprocedures and standards.

The purpose of a QA audit is to assure that proper controlprocedures are being followed, that required documentation ismaintained, and that status reports accurately reflect the statusof the activity.

The deliverable is an Audit Report to management consisting offindings and recommendations to determine compliance andevaluate overall program effectiveness.