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Sustainability report

Sustainability report 2023 Download Sustainability report 2023

Quality Management

Quality Management

Key Visual

Each year, Hanwha Ocean establishes a quality management policy and shares it with our members. Additionally, we are building a system to manage risks and opportunities by reflecting organizational situations and quality-related demands of stakeholders. Our quality management system is operated based on international standards such as ISO 9001, ISO 29001, and ISO 3834, and we constantly improve our processes through periodic assessments of the quality management system. Furthermore, we strive to achieve high quality by providing satisfactory services to our customers throughout the entire product lifecycle, from ship ordering to delivery and maintenance. Additionally, we regularly monitor the quality and result of assessment of products, services, and technologies through our customer communication channels, and actively provide measures to address customer complaints.

Quality Management Promotion System

Hanwha Ocean is equipped with an organizational structure dedicated to quality management activities. Accordingly, we offer customer satisfaction services by securing quality based on the performance of roles assigned to each organization.

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  • Shipyard Head
  • Quality Management
    Manager
  • Quality Planning Part
  • Structural
    Quality Team
  • Outfitting
    Quality Team
  • Offshore Outfitting
    Quality Team
  • Material
    Quality Team
  • Painting
    Quality Team
Organization Roles
Quality planning Quality planning and improvement, Welder qualifications management,
Quality management system certifications management, Non-destructive testing (NDT) quality management
Structural quality Ship and offshore structure quality control and inspection (assembly, erection, and external BLK)
Painting quality Ship and offshore painting quality control and inspection (assembly, erection, and external BLK)
Commercial ship outfitting quality Outfitting quality control and inspection (tubular steel, electrical equipment, commissioning, machinery, CCS, wood outfitting, insulation), Outside cabin and engine casing
Offshore outfitting quality Offshore outfitting quality control and inspection (piping, electrical installation, instrumentation, cabin, ironwork),
Offshore construction quality management
Material quality Equipment quality inspection and management of quality issues,
Quality inspection and evaluation of equipment and material suppliers
Quality Management System Certifications

Hanwha Ocean strives to build a trusting relationship with our customers by establishing a quality management system centered on improving product quality. Based on this system, we conduct risk assessment and monitoring of product safety and quality, as well as reinforce our responsibilities towards customers, including after-sales service after delivery.

Scope of ISO 9001 and operating performance

Scope of ISO 9001 certification: Okpo Shipyard, Siheung R&D Campus, Hanwha Ocean Shandong, Seoul Office, Plant Division & Wind Power Division (to be added in Dec. 2024)

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  • Certification and operation of quality management systems
  • Quality system and quality mindset training 
  • Customer quality satisfaction survey
  • Internal audit on quality management system 
  • Supplier quality management
    (new supplier evaluation, regular evaluation)
  • ISO 9001 Images
    Images
  • ISO 29001 Images
    ISO 3834 Images
Quality Management System

Hanwha Ocean selected product safety and responsibilities towards customers as the key issues of quality management for 2023. Accordingly, we took actions by adopting smart quality management approach and listening to customer quality satisfaction.

Key issues Our response Key activities in 2023 Key achievements in 2023
  1. 1. Product safety and quality management
  2. 2. Responsibilities towards customers
To improve product safety and quality, we implemented a quality management system ((ISO 9001, ISO 29001, and ISO 3834 certified), conducted risk assessment and monitoring of product safety, and provided after-sales services after delivery. As such, we demonstrate our efforts to build a trusting relationship with our customers.
  • We adopted advanced technologies (mixed reality) and digitalized our operations to achieve work efficiency through smart quality management
  • We renewed ISO 2901 certification (quality management systems for petroleum, petrochemical, and natural gas) 
  • We are listening to and reflecting customer satisfaction on quality
  • We took 77 preventive and corrective actions after internal quality management system audits (execution rate: 100%)
Operating Status of Quality Management System

Hanwha Ocean conducts periodic internal and external audits to evaluate the effectiveness of our  quality management system, which is constantly improved. The following table details the audits conducted in 2023.

Classification Target No. of preventive and corrective actions taken (execution rate) Anticipated effects
Internal audit 24 organizations in total 79 (100%) Enhance the process and ensure compatibility through validation of quality system requirements
External audit 26 organizations in total 33 (100%)
Quality Indicators

Hanwha Ocean holds quality management meetings to review and assess the targets and performance of quality management indicators for production, design, and procurement. Our key quality management indicators include process inspection retest rate, hit rate, and NDT retest rate, etc. 

Classification Indicator (%) 2021 2022 2023
Goal Performance Goal Performance Goal Performance
Process inspection Retest rate 1.21 0.75 1.03 0.59 0.64 0.89
Hit rate 97.37 98.22 97.70 98.05 98.03 97.55
NDT Retest rate (radiographic test) 1.58 1.71 1.58 2.25 0.99 0.99
Retest rate (ultrasonic test) 0.54 0.17 0.44 0.22 0.32 0.35
  1. * Indicators related to the shipping business (separate indicators for naval and specialty ships)
Quality Risk Response Activities

Hanwha Ocean carries out preventive actions against quality risks through measures such as pre-inspection and claims analysis for preemptive management.

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Quality Risk
Prevention Activities
  • Lessons learned activities
  • Pre-inspection of quality management of key items
  • After-sales claims analysis
  • Preliminary project briefing sessions for suppliers
  • Pre-inspection of risk items of previous ships
  • Preliminary review of production drawings
Major Quality Management Activities

Hanwha Ocean selected the following key directions of quality management for 2024: minimizing the cost of failure through quality process innovation, preemptive quality prevention activities and early stabilization of quality, establishing a digital quality management system, securing quality of major equipment and stabilizing quality of suppliers, and creating a culture of responsibility for quality and strengthening quality management capabilities. Based on these initiatives, we work to realize the goal of smart quality management and process improvement to secure both process and quality at the same time.

Key Direction Key Activities
Minimizing the cost of failure through process innovation
  • Innovate quality inspection and management work process (specifications, contracts, inspection & test plans, production work-inspection linkage, etc.)
  • Innovate the quality verification process for first article and locally developed products
  • Conduct a preemptive quality verification of the products of the project’s first ship manufacturer to improve completeness
  • Perform system advancement in aggregating the quality failure cost by item
Preemptive quality prevention activities and early stabilization of quality
  • Explore preventive activities and processes to prevent quality problems, manage the process quality, and expand the scope of inspections delegated by shipowners
  • Respond rationally to customers and manage quality risks preemptively
Establishing a digital quality management system
  • Promote digital transformation by upgrading the integrated quality management system
  • Select smart quality inspection items and establish an implementation plan
Securing quality of major equipment and stabilizing quality of suppliers
  • Promote the practice of acting as one team to eliminate quality risks throughout the company (commercial & naval and specialty ships)
  • Carry out activities to secure the quality of LNG carrier equipment
  • Improve the quality management system of suppliers and manage the quality of new equipment ordered from foreign suppliers
  • Support suppliers to enhance their capabilities of technical and quality management and provide training on key quality control points
Creating a culture of responsibility for quality and strengthening quality management capabilities
  • Establish a culture of responsibility for quality across the company
  • Build a safety culture focusing on quality and establish basic order
  • Improve quality management capabilities and foster specialized skills
Integrated Quality Management System

Hanwha Ocean established a digital quality management system to improve and manage product quality with data-based approach. Thus, we manage all quality management-related processes through the integrated quality management system. Also, we created an environment where inspectors can directly handle all activities related to inspections on-site by linking with the mobile quality system, which was designed to increase production accessibility. To upgrade the existing integrated quality management system, which is our goal for 2024, we are developing detailed activities, including improving input data logic between processes and expanding the scope of remote and delegated inspections. These activities will lead us to advance our system and build an environment for smart quality inspection, resulting in improved work efficiency. Likewise, we will continue to take on challenges and innovate ourselves to become a “great challenger.”

Quality Failure Cost Estimation System

Hanwha Ocean continues to advance and promote improvements by establishing a quality failure cost estimation system to visualize and align the costs incurred due to quality issues. The quality failure cost estimation system allows us to determine investment priorities for quality improvement and estimate the effect of our quality management activities. Leveraging this system, we comprehensively manage costs arising from internal quality issues as well as costs due to customer complaints, constantly pursuing to enhance customer satisfaction and bolster our competitiveness.

Quality failure cost management process Images
  • Identify related costs when a quality issue occurs
  • Manage
    the cost data systematically
  • Identify issues
    through
    cost analysis
  • Establish and
    implement
    improvement activities
  • Conduct monitoring and receive feedback on the improvement effect