WELCOME TO FLOWSERVE BV, LOCATION ROOSENDAAL

JUNE 13, 2017

Page 2Flowserve Corporation Proprietary and Confidential

SPACER• Safety

• Purpose

• Agenda

• Conduct

• Expectations

• Roles

Agenda

15:00 – 15:20 Introductie Flowserve RSD15:20 – 16:25 Hoe doen ze dat bij…..?

a) Control of externally provided…b) Internal/supplier audits

16:30 – 17:25 Rondgang (productie & logistiek)

FLOWSERVE | ROOSENDAAL

Roosendaal plant overview

• Facility size : 5,800 m2• Shop floor : 3,600 m2• Headcount : 215; 72 direct, 143 indirect• Shop Capacity : 116,000 hours, 3 shifts• Warehouse : 2 shifts

• Core capabilities:– Knowledge center for pump seals & systems in EMA (technology & logistics)– Test facility completely refurbished in 2013/2014– Hub for all EMA Quick Response Centers (manufacturing & distribution)– QMS certified:

• ISO 9001 by Lloyd’s Register (since 1989)• ASME NQA-1 by AIB Vinḉotte

Scope QMSEngineering and manufacturing

ofmechanical seals, sealing systems and components for

rotating equipment for use in

petroleum, chemical, power, pulp and paper, mining and other industries.

Renewal CertificationISO 9001:2015 Implementation

Gap Analysis & StrategyPre-Implementation

20-22 Sept 2016May 20164Q15 1Q16Since 2013

5 – Implementation (level off) Process- and Risk Management

7 – Implement actions according to RAIL and update QMS documentation. For example Relationship managementRisk-based thinkingProcess approach

Start ISO Transition Roadmap. ISO 9001:2015 certified

High Level ISO Transition Roadmap

4 – Training InternalISO Audit team

Steering team to agree on transition approach, resources and timeline

3 – Deploy GAP Analysis tool and execute GAP analyze (QA), create RAIL and resources.

8 – Review, maintain, develop and improve QMS.

Half yearly QMS reviews and Surveillance Visits LRQA

Frequent Progress / Awareness/ Reporting to Management Team, auditors LRQA and internal ISO Audit Team.

1 – Knowledge QA by trainings, workshops, seminars, etc.

2 – Benchmark withother FLS Companies

6 – Align and verify approach with LRQA (Focus visit)

GAP Analyze tool

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FINDINGS SETTING

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PLIA

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RISK

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ACTUAL QMSInitials

Responsible Individual

Date Assigned Status First Due

DateActual

Due DateClose Date Comments / Result / Status / Update

1

2

3

4

5

6

7

8

9

10

Executed by:Title:

Site GAP ANALYSIS

XXX SECTION(S): xxxxxxxxxxxx REFERENCE: ISO 9001:2015

No ISO

CLAU

SERE

F. Identified changes or new issued requirements of ISO 9001:2015 (compared to ISO 9001:2008)

GAP ANALYSISN.B. Provide references to documentation where necessary

ACTIONS REQUIRED

Notes:

Revision:Updated:

0DD-MM-YY

Date of execution GAP ANALYZE this section: DD-MMM-YYYY Name(s)xxx & xxx

Analysis RAIL

Example

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FINDINGS SETTING

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PLIA

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KIN

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RISK

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ACTUAL QMSInitials

Responsible Individual

Date Assigned Status First Due

DateActual

Due DateClose Date Comments / Result / Status / Update

1Term "product" changed to "Product and or Service" in the scope of the ISO9001 standard.

70 1QA Manual and ISO9001 Certificate. Actual Q Policy describes "products and service".

WG 1-Feb-16 Open 1-Mar-16Ask for impact during transition training FLS in March

2 Exclusions of QMS no longer limited within clause 7: Product realization 100Clause 8.3 Design and development for products and services remain excluded from scope QMS RSD.

3 Fundamentals and vocabulary (ISO 9000) changed to 2015 version 100Dutch and English ISO9001:2015 available

WG 26-Jan-16 Open 1-Mar-16 27-01-2016: Not in NEN Contract RSD.

4 Terms and definitions (ISO 9000) changed to 2015 version 100 Idem 3

5Are external and internal issues determined that are relevant to its purpose and its strategic direction and that affect its ability to achieve the intended result(s) of its quality management system?

100SWOT executed by MT mid 2015, risks are translated into improvements projects and ranked for priority

6Does the organization monitor and review information about these external and internal issues?

70 7 Yearly review of SWOT with MT EK 1-Feb-16 Open 1-Sep-16

7Are the interested parties that are relevant to the quality management system determined?

100Stakeholderanalyse executed by man assistant with MT mid 2015

8Are the requirements of these interested parties that are relevant to the quality management system determined?

100 Part of Stakeholderanalyse

9Is the information about these interested parties and their relevant requirements monitored and reviewed?

10 7 Only annual identified. EK 1-Feb-16 Open 1-Sep-16

10Are the boundaries and applicability of the quality management system to establish its scope determined (and available and maintained as documented information)?

100Scope QMS in RSD-PR-GEN-000E QA manual

11Are the processes and their interactions, needed for the QMS and their application throughout the organization, determined?

100See appendix A of RSD-PR-GEN-000E QA manual

12Are the inputs required and the outputs expected from these processes determined?

10 10 Not all in- and outputs determined EK 1-Feb-16 Open 1-Sep-16

13 Are the sequence and interaction of these processes determined? 100See appendix A of RSD-PR-GEN-000E QA manual

14Are methods (including monitoring, measurements and related performance indicators) needed to ensure the effective operation and control of these processes determined and are the criteria applied?

100Outputs of processes by KPI/PI measurement

16 Are the responsibilities and authorities for these processes assigned? 100 Assigned by each QMS document WG 1-Feb-16 Open 1-Mar-16

17Are the risks and opportunities for these processes addressed? (according 6.1)

10 10Risk and opp per process not part of GAP analyse MT.

EK 1-Feb-16 Open 1-Sep-16

18Are these processes evaluated and are any changes implemented needed to ensure that these processes achieve their intended results?

Monitoring by KPI/PI's of processes WG 1-Feb-16 Open 15-Mar-16 To be asked in transition training FLS

19 Are the processes and the quality management system improved? 100See MoM periodical QMS review, Plant AC and departmental AC's.

20Is documented information to support the operation of the processes maintained?

10 3Process of maintenance is described in RSD-PR-QAC-149E, but structural periodical review is missing.

WG 15-Jan-16 Open 1-Sep-16

21Is documented information retained to have confidence that the processes are being carried out as planned?

100DI available as KPI's, Internal Audit reports and MoM Man. Review

Executed by:Title:

Level of process approach and their in- and outputs to be defined.

4.4.1 b)

4.4.1 c)

4.4.1 h)

4.4.2 a)Implement periodical review process of (critical) QMS documents and changes of process owners

4.4.1 e) Add resp and auth per process in QA manual

4.4.1 f) Identify risk and opp per process as defined in ISO9001

4.4.1 g) What is definition of evaluation?

Section 2: Normative references

Section 1

4.3

Notes:No 10, 20 & 21 allready identified by section "Documented information".

Revision:Updated:

001-Feb-16

Date of execution GAP ANALYZE this section: 01-Feb-2016 E. Kepers & W. GeukeManager QA/QC/CIP & QA Engineer

4.2.b)

4.2 Periodical review to be implemented in strategic MT meetings

4.4.2 b)

4.4.1

4.4.1 a)

4.1

4.1 Periodical review to be implemented in strategic MT meetings

4.2 a)

Section 1Check and or update (text) content of RSD-PR-GEN-000E and ISO9001 Certificate on "Product and or Service"

Section 2 Check if ISO9000:2015 is available (contract NEN or Techstreet)

Section 3 Idem 3

Section 1: Scope

Section 3: Terms and definitionsSection 4: Context of the organization

No ISO

CLAU

SERE

F. Identified changes or new issued requirements of ISO 9001:2015 (compared to ISO 9001:2008)

GAP ANALYSISN.B. Provide references to documentation where necessary

ACTIONS REQUIRED

Site GAP ANALYSIS

RSD SECTIONS: 1, 2, 3 and 4 REFERENCE: ISO 9001:2015

ISO 9001:2015 requirementsfor “Process approach”

1) Intended result2) Input and output3) Sequence and interaction4) Performance indicators5) Planning, implementation and control 6) Resource management7) Responsibilities/Ownership 8) Risk based thinking9) Evaluation, change and improvements10) Trends in process performance(s)

Defined processes of RSD(According RSD-PR-GEN-000E: QA Manual)

Core Processes: Supporting FunctionsOrder Entry & Booking

OE Customers(Customer Service Order

Fulfillment OE)

Order Engineering(Seal / System

Engineering & ATS)

Order Scheduling & Inventory Management(MRP Planning)

Project & (Nuclear) Order Management

(Seals & Systems)

Production Engineering & preparation

(Industrial Engineering)

Assemble, testing & Inspection

Seals / Standard Systems

(Manufacturing, Testlab &

Warehouse)

Produce Components(Manufacturing/Tool Crib)

Inspect Components /

Seals / Engineered Systems

(Quality Control)

Store Components / Seals / Systems

(Warehouse)

Pick, Pack & Ship Components /

Seals / Systems incl. Documentation

(Shipping & Export)

Human Resources Finance

Continuous Improvement

Program

Safety, Health and Environmental

Affairs

Maintenance(Facility

Management)

Information Technology

Supporting FunctionsOrder Entry & BookingAM Customers

(Customer Service Order Fulfillment AM)

Outsource Operations & Component Production

(Shop Planning)

Order Engineering (Chennai Engineering

Cell)

NC programming & 3D modelling

(Chennai Engineering Cell)

Quality Assurance

Production Planning(Shopplanning)

Purchase Components / Seals / Engineered Systems

(Purchasing)

RSD’s Template for “Process mapping”Process Model QMS RSD

“Process mapping” example

“Risk-based thinking”

Five steps of risk management:• Identify• Analyze• Action• Monitor• Control

RSD’s Template for “Risks & Opportunities Management”

Risico = Ernst x Kans x Beersbaarheid

“R & O Management” example

FLOWSERVE | HOE DOEN ZE DAT BIJ…..?

Internal Audits

• Each defined process minimum each 3 year;• Nuclear process(steps) yearly;

Order Entry & BookingOE Customers

(Customer Service Order Fulfillment OE)

Order Engineering(Seal / System

Engineering & ATS)

Order Scheduling & Inventory Management(MRP Planning)

Project & (Nuclear) Order Management

(Seals & Systems)

Production Engineering & preparation

(Industrial Engineering)

Assemble, testing & Inspection

Seals / Standard Systems

(Manufacturing, Testlab &

Warehouse)

Produce Components(Manufacturing/Tool Crib)

Inspect Components /

Seals / Engineered Systems

(Quality Control)

Store Components / Seals / Systems

(Warehouse)

Pick, Pack & Ship Components /

Seals / Systems incl. Documentation

(Shipping & Export)

Human Resources Finance

Continuous Improvement

Program

Safety, Health and Environmental

Affairs

Maintenance(Facility

Management)

Information Technology

Supporting FunctionsOrder Entry & BookingAM Customers

(Customer Service Order Fulfillment AM)

Outsource Operations & Component Production

(Shop Planning)

Order Engineering (Chennai Engineering

Cell)

NC programming & 3D modelling

(Chennai Engineering Cell)

Quality Assurance

Production Planning(Shopplanning)

Purchase Components / Seals / Engineered Systems

(Purchasing)

Internal Audits

• Each defined process minimum each 3 year;• Nuclear process(steps) yearly;• Yearly audit plan (approved & priorities by MT);

Internal Audits

• Each defined process minimum each 3 year;• Nuclear process(steps) yearly;• Yearly audit plan (approved & priorities by MT);• Feedback/results: Every 6 months by MR;

Total % 0.86 0.90 0.69 1.35 -0.05 0.74 0.87Warranty % 0.40 0.55 0.24 0.70 -0.46 0.35 0.32Scrap % 0.39 0.30 0.30 0.34 0.31 0.32 0.21Rework % 0.07 0.04 0.05 0.05 0.05 0.03 0.06LDs % 0.00 0.00 0.10 0.23 -0.11 0.02 0.26CARs # 37 - 45 13 13 9 10

Manufacturing FTR Rate MFG parts % 95.2 96.0 96.2 96.1 96.1 96.4 96.0Management Review # 2 2 2 1 0 1 0QMS Transitie ISO9001 % - 100 90 80 65 90 100Completed # 12 12 10 2 4 0 4CARs # 23 - 33 6 11 2 14Accurancy % 90 100 83 80 100 67 83

Inte

rnal

Pro

cess

es

Cost of Poor Quality (as % of Sales YTD)

Audits

QMS

Internal Audits

• Each defined process minimum each 3 year;• Nuclear process(steps) yearly;• Yearly audit plan (approved & priorities by MT);• Feedback/results: Every 6 months by MR;• Qualified auditors;

Internal Audits

• Each defined process minimum each 3 year;• Nuclear process(steps) yearly;• Yearly audit plan (approved & priorities by MT);• Feedback/results: Every 6 months by MR;• Qualified auditors;• Corrective/preventive actions of findings;

- Best practices : Shared with Process owner(s)- OFI : Input for CIP- NC : Global CAR-System

Internal Audits

• Each defined process minimum each 3 year;• Nuclear process(steps) yearly;• Yearly audit plan (approved & priorities by MT);• Feedback/results: Every 6 months by MR;• Qualified auditors;• Corrective/preventive actions of findings;• 6x year internal audit team meetings;

Questions ?

FLOWSERVE | RONDLEIDING

Rondleiding

• Van 16:30 tot 17:30 uur• In 4 groepen (met verschillende routes)• PBM: brillen en hesjes

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