Hydro-Flo Technologies, Inc.
Quality Assurance Plan

INTRODUCTION

This manual outlines and describes the methods and procedures employed by Hydro-Flo Technologies, Inc. to assure its customers of the highest quality products and services.  This manual will be revised annually or as needed to incorporate new methods as the same are developed and implemented or as otherwise required to satisfy customer needs.

Requirements contained in new requests for quotation, for both individual equipment and engineered systems, are carefully reviewed to determine that the quality assurance methods outlined herein are appropriate for such requirements and that such requirements are within the capabilities of Hydro-Flo Technologies, Inc.

SCOPE

This manual describes (via narrative and related exhibits) the overall quality assurance system.  This system addresses the functions of sales, engineering, purchasing, receiving, in-plant operations/routing, assembly, preparation for shipping, and quality control.

ORGANIZATIONAL FUNCTIONS

Vice-President / General Manager:

The Vice-President / General Manager is responsible for all aspects of plant operations.  He is responsible for all personnel working in all phases of engineering and manufacturing.  Overall responsibility for plant efficiency and the quality of all products and services rests with the Vice-President / General Manager.

Project Manager:

The Project Manager is directly responsible for the efficiency and quality of all products and services and reports to the Vice-President / General Manager.  More specifically, the Project Manager is responsible for the following post sale activity:

1. Examining customer drawings, specifications, delivery dates and project specific sales specification sheets.

2. Scheduling milestone due dates for engineering and production.

3. Collating and sending project submittal package per customer requirements.

4. Providing project progress reports to the customer.

5. Reviewing project bill of materials for accuracy.

6. Determining that proper resources are available for all personnel to properly and efficiently complete their work.

Engineering Manager:

The Engineering Manager is directly responsible for the efficiency and quality of all designs and drawings and reports to the Vice-President / General Manager.  More specifically, the Engineering Manager is responsible for the following post sale activity:

1. Examining customer drawings, specifications, delivery dates and project specific sales specification sheets.

2. Verifying proposed equipment meets customer needs in form, fit and function.

3. Scheduling workload for all persons in department to meet scheduled milestones.

4. Generation of project submittal package per customer requirements including, but not limited to: GA drawings, component data sheets, PID, electrical schematics.

5. Generating project bill of materials.

6. Determining that proper resources are available for all personnel to properly and efficiently complete their work.

Production Manager:

The Production Manager is directly responsible for the efficiency and quality of work performed in his department and for the personnel assigned to that department.  The Production Manager is also directly responsible for all work performed by outside fabricators/vendors.  The Production Manager reports directly to the Vice-President / General Manager and has the following post sale responsibilities:

1. Examining drawings and specifications.

2. Examining and checking work and production throughout the plant.

3. Determining that tools, gauges and fixtures are being properly used within the department.

4. Instructing and periodically checking the work of all personnel assigned to the department for accuracy and quality of workmanship.

5. Verifying all outsourced components pass functional QC check.

6. Marking up all assembly drawings to reflect as built changes.

Shop Hands:

All Shop Hands report directly to the Production Manager. The Shop Hands are responsible for properly setting up work assigned to them and operating the equipment in an efficient and workmanlike manner.  They are initially responsible for inspections of their own work with respect to accuracy and quality of work and for determining that parts otherwise meet all applicable customer specifications.  They must have the in-process inspector check and initial the assembly drawing as compared to the finished product.

Quality Manager:

The Quality Manager is responsible for administering the quality assurance system.  The Quality Manager reports to the Vice-President of Operations.

The Quality Manager is responsible for examining purchase orders and drawings to determine that the proper revision level is released to manufacturing.

The Quality Assurance function comprises the following areas:

1. Bill of Material Review

2. Receiving Inspection

3. In-Process Inspection

4. Final Inspection

5. QC Documentation Control

All procedures relating to inspection and originating at Hydro-Flo Technologies, Inc. are subject to approval by the President.

Testing Instrument Issuance and Control:

The Quality Manager issues all company-owned inspection equipment that is to be removed from the Quality Assurance Department.  An Instrument Location Form to show when an instrument is received/removed and location of use must be signed by the person receiving the gauge or instrument.  All gauges and inspection equipment must be returned to the inspection area in a timely manner.

All inspection equipment is checked and calibrated at the interval shown on the gauge/equipment Calibration Card.  Such calibration shall apply to employee-owned equipment that may have a direct impact on the quality of products or services.

The inspection equipment will be checked and calibrated as required by the instrument manufacturer or appropriate governing body of standards.

Receiving Inspection:

Receiving Inspection is responsible for inspecting all incoming material and parts/components.  This inspection will be performed based on customer prints and Hydro-Flo Technologies, Inc. purchase orders.

All components will be inspected and tagged for appropriate job # before being stocked.

All necessary components will be inspected and the results noted on the routing.  A green Accepted Material Tag will then be attached to the parts or container.

All raw materials and purchased piece parts found to be defective or nonconforming (based on prints, specifications, and/or purchase orders as applicable) will be rejected.  The supplier will be contacted by phone or facsimile and the material will be returned for rework or replacement.  Further, the supplier will be sent a Corrective Action Form, which must be filled out and returned.

If the customer furnishes material, the inspection procedure shall include the following:

1. Examining upon receipt to detect any damage in transit.

2. Inspecting for completeness and proper type.

3. Periodically inspecting to assure adequate storage conditions.

4. Properly identifying and protecting from improper use.

In-Process Inspection:

In-process inspection shall be responsible for determining that all assembly parts, components and sub-assemblies, manufactured, serviced or repaired by Hydro-Flo Technologies, Inc. conform to customer specifications before the equipment is released for final QC.

The in-process operator is required to inspect each assembly to determine that the proper components are being used to complete the final product per the assembly drawings.  The operator then initials the routing before proceeding with final assembly.

FINAL INSPECTION:

Final Inspection shall be responsible for carefully inspecting all parts prior to shipment and completing the final inspection checklist in a timely manner.

No item on the final inspection checklist shall be marked as satisfactory until the Quality Manager is completely satisfied that it meets customer prints and specifications and Hydro-Flo Technologies, Inc. quality requirements.

The Quality Manager will not sign the final inspection checklist until all items have been checked.  He or she will then fill out and attach an Accepted Material Tag to the assemblies or equipment before it is released for shipment.

If any equipment or assembly is found to be defective, the inspector will note the same on the checklist and will attach a Rejected Material Tag to the equipment.  The equipment will then be stored in a separate area while a determination is made as to the disposition of such equipment (i.e., rework, scrap, use as-is (variance)).

All final inspection will be performed to customer specification.

CONTROL OF NONCONFORMING MATERIAL

When material is determined to deviate from specifications or drawings, the following procedure will be followed:

1. A Rejected Material Tag will be filled out and fastened to the assembly or equipment by the Quality Manager

2. Rejected assembly will be stored apart from acceptable equipment.

3. Vice-President of Operations and the Quality Manager will determine the disposition of the rejected material.

When purchased material is found to be defective or not to required specifications, the supplier will be contacted by phone or facsimile.  The material will be returned for rework or replacement and the supplier will be sent a Corrective Action Form, which must be filled out and returned prior to payment.

When material produced in the plant is found to be defective or not to required specifications, the shop hand responsible for the nonconformance will be contacted and a written corrective action will be filled out and turned in to the Project Manager and a copy provided to the Production Manager.

Purchasing Procedure:

The purchasing agent shall place all orders for materials used in Hydro-Flo Technologies, Inc. contracts with reputable firms.  Materials purchased shall be as specified by customer material list or drawings.

The purchasing department will be responsible for determining that suppliers have quality control programs in place that are consistent with contract quality requirements of Hydro-Flo Technologies, Inc.

Preservation & Packing:

It is the policy of Hydro-Flo Technologies, Inc. to preserve and package parts in a manner that will prevent deterioration or damage, or as otherwise specified by the customer.

Internal Quality Audits
After the completion of each project, an audit will be conducted to discuss the quality issues that arose during production, assembly, in-process inspections, final inspections and equipment start up.  The findings of the audits will be used to improve the overall quality assurance plan in the forms of training and inspection.

Training
All personnel, including outside fabricators, involved in the manufacture, assembly and inspection of equipment manufactured by Hydro-Flo Technologies will be trained in the QC procedures used by Hydro-Flo Technologies.  As new procedures are implemented, all personnel will receive updated literature and hands on training to insure that the new procedures are properly implemented.

Records
Normal procedure of Hydro-Flo Technologies, Inc. is to maintain records of purchasing, receiving and production and inspection records for a minimum of three (3) years, unless otherwise required by our customer.