Corporate Quality Management System

Corporate Quality Management System

The United Shipbuilding Corporation has become a winner of the Russian Federation Government Quality Diploma Award. The list of candidates was approved by the Award Board chaired by the Minister of Industry and Trade of the Russian Federation Denis Manturov

The award was presented in the 24th time, however until now the Competition has been participated only by certain manufacturers of particular products.

In 2020 a new format appeared: corporate management quality assessment. Such an approach allows to consider high quality production a result of harmonious collaboration of management and production. The Diploma received by USC is recognition of efficiency of the application by the parent company of the corporate quality management system with regard to one of the best shipbuilding companies in Russia PJSC Krasnoye Sormovo Shipyard.

The decision to develop corporate standards of the Joint-Stock Company and the Group member companies was made by the CEO of USC A.L. Rakhmanov in 2015. It was based on the Federal Law of the Russian Federation No. 162-FZ “On Standardization in the Russian Federation”. Corporate standardization was aimed at process optimizing of shipbuilding and nautical architecture products, reducing timescales of engineering, construction and testing thereof.

First steps

At the initial stage of project implementation, it was necessary to decide on the platform for corporate standardization customized for the USC. The point is that every Group member company is an independent legal entity that operates on the basis of its own objectives. Besides, it is important to take into account different technologic approaches when building above-water and underwater vessels manufactured within the framework of the state defense order. A separate sector is engineering and construction of vessels and marine facilities of non-military designation, technologies of which in certain cases conceptually differ from those of military designation  (both military and civil facilities are designed and built by Sevmash Production Association, Admiralty Shipyards, Sredne-Nevsky Shipbuilding Plant, Severnaya Verf Shipbuilding Plant, Central Design Bureau of Marine Engineering «Rubin», Saint-Petersburg Malachite Marine Machine-Building Bureau, etc.).

Upon analyzing the performance of the USC Group of Companies by the ad hoc Department of Quality and Standardization, it was decided to select the Quality Management System as the fundamental platform for establishing in-house corporate standards at all levels. The choice was based on the fact that each Group member company, including the parent company, undergoes annual certifications (inclusive of ISO) that support organizational and technical capabilities to manufacture high-quality products. Besides, in compliance with Russian legislation, all organizations participating in design, manufacturing and repairs of armaments and military hardware are mandated to have a certified Quality Management System.  

Another important issue was to define the area of application of corporate Quality Management System (QMS) standards. The Company had to identify business processes that were to be optimized or substituted by more efficient ones. This was handled by a special working group consisted of heads of QMS business units of all the USC Group member companies, each of them having a voting right. In fact, this is a collegiate body responsible for the implementation of the whole project. Corporate standards developed by the working group are first approved by the USC Quality Representative and only then are introduced in the member companies by order of the parent company CEO. The implemented mechanism of development, adopting and enforcement of the organization corporate standard are fully compliant with requirements of the federal legislation that establishes the procedure of development and adoption of national standards or of joining the implementation of international standards, norms and requirements. The adopted work scheme also allowed to establish a feedback mechanism for all the business units.

Required adjustments

Operation specifics of some companies that design and manufacture various shipbuilding products of military and non-military designation, promoted the development of mechanism restricting the area of application of standards to be adopted. Design companies have got a capability to create their own “clouds of corporate documents” that administer processes of limited application only in their definite segment. A similar “cloud” was created for companies that build ships, vessels and marine facilities.

In accordance with its authority, the working group has defined the structure, composition and application procedure of the QMS corporate standard within the USC JSC and the USC Group member companies. Thus, the Company has adopted an up-to-date model of standardization process management on a collegiate basis. The Quality and Standardization Department, performing the function of the corporate QMS coordinator, has confirmed its compliance with the national standard GOST 1.15-2017 “Standardization Units of Organizations. Rules of Creation and Operation”. The Department has conducted an audit of the current QMS documents, has developed, and obtained approval for, the extension of the validity date of permits and certificate while auditing the Oboronsertifikat Operation System. Quality guidelines developed by the Quality and Standardization Department was reviewed by the Board of Directors and approved by the Management Board of USC JSC.  

Visible effect

The first results of the application of the corporate standardization system were obtained during the efforts for expanding permitting and licensing capabilities of military and technical cooperation activities. As a result, the USC JSC and the USC Group member companies have acquired a new legal right to hold direct discussions with foreign customers on a wide range of armaments and military hardware, to enter into new agreements on construction, warranty and post-warranty service. 

Another important result of the corporate system functioning was upholding, in the Russian Maritime Register of Shipping, of the right of USC, being a management company, to conclude direct agreements, jointly with member companies, with contractors (including foreign ones) for engineering, construction and upgrading of non-military vessels and maritime facilities. That was the first permit of this kind that the USC has received since the time of its incorporation.   As of today, the USC Group member companies can use available capabilities to participate in competitions and tenders in the area of shipbuilding and repairs in any foreign country.

In addition, the developed methodology of corporate certification allows to systematize the development of local regulations for all the operation areas of the USC JSC and the USC Group member companies. Using that methodology, business units of the parent company and of the member companies have developed 150 corporate standards and procedures, and the USC JSC has 150 local regulations that govern all the areas of corporate operation. The IT Department has created a library of regulations available to all employees.

New approaches were also applied for developing corporate documents with regard HSE and fire safety. The corporate standard “Fire Safety Requirements for construction, upgrading and repairs of ships and vessels” developed by the USC JSC Quality and Standardization Department together with the USC Group member companies has been recommended by the Emergency Control Ministry for adoption as the national regulatory code in shipbuilding.

Intermediate results of the project implementation for corporate standardization in the USC JSC were presented at the academic workshop “Quality Issues of Military and Civil Production by the Military Industrial Sector” sponsored by the Military Industrial Committee under the Government of the Russian Federation and held in Nizhny Novgorod on 14-15 February 2018. Method and projects implemented in 2018 were recognized efficient and were recommended for application by companies of the military industrial sector of the Russian Federation.   

Pans for the future

Now that the first stage of the project is over and the set goals are reached, we must move on. In 2011 it was decided to increase the contribution of the USC JSC and the USC Group member companies into development of national standardization. Our mission is to become a leader in the establishment of standards regulating requirements for the development of the Arctic Zone of the Russian Federation, a trendsetter in engineering and construction of ice-class vessels and seaport infrastructure in the region.  The plan is to promote new technical solutions and development programs of standardization within the framework of the Rosstandard ad hoc Technical Committee TK-187 “Exploration of Polar Regions”, the elected Chairman thereof is the USC JSC Vice-President – Technical Development V.B. Boitsov. This activity is closely connected with the tasks performed by specialized business units of the State Corporation Rosatom, and we already have first agreements to conduct joint work in the polar regions of the Russian Federation. 

We are absolutely sure that the experience of corporate standardization of the QMS will become a reliable platform for developing cooperation not only with Rosatom, but also with participants of other Arctic projects. 

Corporate standardization optimizes organizational and technologic procedures

the diploma of the government of the russian federation is a result of sucessfully performed mana-gement solutions in the usc group