Internal Quality Audits at HDR American Society for Quality The 33rd National Energy & Environmental Conference Tucson, Arizona August 27-30, 2006 Session T21: Achieving Quality in Auditing – Executing Projects in Global and US-only Environments Internal Quality Audits at HDR The Evolution of a Quality Management System Dan Domalik, P.E., CQA East Region Lead Auditor HDR Engineering, Inc.

How does a consulting engineering firm ensure design quality? Introduction HDR Quality Office QA/QC Program Audit Program Summary Introduction Purpose of Presentation My Background Introduce HDR Our Quality Program Quality Auditing at HDR HDR Quality Office QA/QC Program Audit Program Summary Who am I? and Why am I here? How does a consulting engineering firm ensure design quality? QA/QC

QA/QC QA/QC Introduction Introduction Structural Engineer – 10 years Purpose of Presentation My Background Structural Engineer – 10 years BS Civil Engineering Technology MS Civil Engineering Professional Engineer (PE) HDR Quality Office QA/QC Program Audit Program Summary HDR Quality Office QA/QC Program Audit Program Summary Lead Auditor – 1 ½ years MBA? CQA? OJT! QA/QC QA/QC

Introduction HDR Quality Office QA/QC Program Audit Program Summary Introduction HDR Transportation Services Statistics Projects Awards Growth Quality Office QA/QC Program Audit Program Summary Planning Environmental Architecture HDR is an architectural, engineering and consulting firm that excels at managing complex projects and solving challenges for clients. www.hdrinc.com Construction Water/Wastewater Program Management Consulting Security Power & Energy QA/QC

QA/QC HDR HDR Introduction Quality Office QA/QC Program Regional/Local Audit Program Summary Introduction HDR Founded in 1917 More than 5,200 employee owners Over 130 locations worldwide $730 million in fees (2005) Headquarters: Omaha, Nebraska Services Statistics Projects Awards Growth Quality Office QA/QC Program Audit Program Summary QA/QC

Ventana Medical Systems Corporate Headquarters Introduction HDR Quality Office QA/QC Program Regional/Local Audit Program Summary Introduction HDR Cooper River Bridge Birck Nanotechnology Center Services Statistics Projects Awards Growth Quality Office QA/QC Program Audit Program Summary Ventana Medical Systems Corporate Headquarters City of Las Vegas Water Pollution Control Facility Expansion QA/QC Hoover Dam Bypass

Engineering News-Record Rankings Introduction HDR Quality Office QA/QC Program Regional/Local Audit Program Summary Introduction HDR Engineering News-Record Rankings # 17 - Design Firm # 2 - Health Care # 2 - Solid Waste # 5 - Dams & Reservoirs # 7 - Correctional Facilities # 7 - Highways # 8 - Bridges # 9 - Treatment & Desalination # 10 - Sewerage & Solid Waste # 10 - Transportation # 10 - Water Supply # 11 - Mass Transit & Rail # 13 - Wastewater Treatment # 15 - General Building # 16 - Fossil Fuel # 18 - Transmission Lines & Aqueducts Services Statistics Projects Awards Growth Quality Office QA/QC Program Audit Program Summary QA/QC

QA/QC QA/QC HDR HDR growing continuously improve Introduction Services Statistics Projects Awards Growth Quality Office QA/QC Program Audit Program Summary Quality Office QA/QC Program Audit Program Summary growing How does a consulting engineering firm ensure design quality? continuously improve QA/QC QA/QC

The HDR Quality Office: Leading Management’s Commitment to Quality Introduction HDR Quality Office QA/QC Program Audit Program Summary Introduction HDR Quality Office Technical tools QUALITY OFFICE Standards & Specifications QA/QC Program Audit Program Summary 2008 Strategic Plan QMS/ESS Client Satisfaction The HDR Quality Office: Leading Management’s Commitment to Quality Reviews QA/QC Program Project Management Training Technical processes QA/QC

QA/QC QA/QC Quality Office Quality Office Introduction HDR Quality Management Services (QMS) QA/QC Procedures Internal Audit Program Best Practices Peer Reviews Client Report Cards 2008 Strategic Plan QMS/ESS QA/QC Program Audit Program Summary QA/QC Program Audit Program Summary Engineering Support Services (ESS) Internet/Intranet Document control tools Software support Standardization Project Management Tools/Training Construction Administration QA/QC QA/QC

Documenting our approach to delivering Quality Introduction HDR Quality Office QA/QC Program Introduction HDR Quality Office QA/QC Program Audit Program Summary “Work Well Done.” 1980’s – Created QA/QC Program Gradually ignored Audit Program Summary History Components Procedures Training Documenting our approach to delivering Quality 1998 – Reestablished QA/QC Program Updated 2002-2006 2005 – Established Quality Office and Audit Program Regional Quality Directors QA/QC

QA/QC QA/QC Program QA/QC Program Introduction HDR Quality Office Regional/Local Audit Program Summary Introduction HDR Quality Office QA/QC Program Program Documents Quality Assurance Procedures Quality Control Procedures Technical Procedures Steering Committee Regional Leaders Technical Leaders Marketing Construction Ad Hoc Program Implementation Responsibilities Defines roles and responsibilities From the President to all employees Internal Audits Evaluate compliance with QA/QC Program Identify opportunities for improvement Share best practices History Components Procedures Training Audit Program Summary QA/QC

QA/QC QA/QC Program QA/QC Program Introduction HDR Quality Office Regional/Local Audit Program Summary Introduction HDR Quality Office QA/QC Program Policy & Definitions Establishes basis for authority Creates a common language Project Guides Project Management tool Project Communications Originating and maintaining correspondence Project Filing Paper and electronic files Project Reviews Inform management, mitigate risks Drafting Standards Standardize computer drawing production Quality Control Reviews Senior independent reviewers Verify quality of deliverables History Components Procedures Training Audit Program Summary QA/QC

QA/QC QA/QC QA/QC Program QA/QC Program Introduction HDR Quality Office QA/QC Program Introduction HDR Quality Office QA/QC Program History Components Procedures Training Audit Program Summary Audit Program Summary QA/QC QA/QC

Where Quality really happens – on the ground Introduction HDR Quality Office QA/QC Program Regional/Local Introduction HDR Quality Office QA/QC Program Regional/Local Audit Program Summary National Technical Leads (Disciplines) Best Practices Intranet Websites Quality Control Reviews Standards & Tools Training Audit Results Technical Regional Local Projects Audit Program Summary Where Quality really happens – on the ground Transportation Environmental Water QA/QC

QA/QC Regional/Local Regional/Local Introduction HDR Quality Office QA/QC Program Regional/Local Audit Program Summary Introduction HDR Quality Office QA/QC Program Regional/Local Lead Auditor/Auditors (“eyes & ears”) Conduct local quality audits Report findings Regional Quality Director (“hands & mouth”) Lead regional quality program Facilitate change Technical Regional Local Projects West Central East Audit Program Summary Transportation Environmental Water QA/QC

QA/QC Regional/Local Regional/Local Introduction HDR Quality Office QA/QC Program Regional/Local Audit Program Summary Introduction HDR Quality Office QA/QC Program Regional/Local Department Manager Implement QA/QC Program in office Monitor and verify application Office QA/QC Program Coordinator New employee orientation Communication Scheduling Training Technical Regional Local Projects Audit Program Summary QA/QC

QA/QC QA/QC Regional/Local Regional/Local Introduction HDR Quality Office QA/QC Program Regional/Local Introduction HDR Quality Office QA/QC Program Regional/Local Project Manager Incorporate applicable procedures Inform team Budget and schedule QA/QC Technical Regional Local Projects Project Team Know it! Do it! Audit Program Summary Audit Program Summary QA/QC QA/QC

The missing piece of the puzzle… Introduction HDR Quality Office QA/QC Program Audit Program Introduction HDR Quality Office QA/QC Program Audit Program Summary Audit Program white paper 2004 Quality Office and Audit Program launched Lead Auditors selected Summary History Roles Process Results Issues Draft audit processes developed 5 pilot audits conducted The missing piece of the puzzle… Accountability Audit processes finalized 2005 Formal Audit Program rollout Year-end reports developed First repeat audits conducted 2006 QA/QC

NATIONAL REGIONAL LOCAL QA/QC Audit Program Audit Program Introduction HDR Quality Office QA/QC Program Regional/Local Audit Program Summary Introduction HDR Quality Office QA/QC Program Audit Program Quality Office Director Reports to President Develops, coordinates, monitors QA/QC Program Director Establish, implement, maintain Promote awareness Audit Administrator Overall logistical support to Audit Program Lead Auditors (East, Central, West) Coordinates and leads quality audits Auditors Part-time – 1 or 2 audits per year Regional Quality Directors Audit follow-up, root cause analysis Development of action plan Office QA/QC Program Coordinators On-site logistical support for audits NATIONAL History Roles Process Results Issues Summary REGIONAL LOCAL QA/QC

QA/QC Audit Program Audit Program Introduction HDR Quality Office QA/QC Program Regional/Local Audit Program Summary Introduction HDR Quality Office QA/QC Program Audit Program History Roles Process Results Issues Summary QA/QC

QA/QC Audit Program Audit Program Introduction HDR Quality Office QA/QC Program Regional/Local Audit Program Summary Introduction HDR Quality Office QA/QC Program Audit Program History Roles Process Results Issues Summary We review individual projects We report on a business group and office level QA/QC

QA/QC Audit Program Audit Program Introduction HDR Quality Office QA/QC Program Regional/Local Audit Program Summary Introduction HDR Quality Office QA/QC Program Audit Program Observations → Findings → Areas for Improvement Facts → Conclusions → Issues to Work On History Roles Process Results Issues Summary QA/QC

QA/QC Audit Program Audit Program Introduction HDR Quality Office QA/QC Program Regional/Local Audit Program Summary Introduction HDR Quality Office QA/QC Program Audit Program Post-audit Action Item List (PAIL) History Roles Process Results Issues Summary QA/QC

QA/QC Audit Program Audit Program Introduction HDR Quality Office QA/QC Program Regional/Local Audit Program Summary Introduction HDR Quality Office QA/QC Program Audit Program June 2005 – June 2006 26 audits conducted 327 projects ($150 million in fees) 26 auditors participated Well-documented audit processes 4 procedure training modules History Roles Process Results Issues Summary Outcomes Increased awareness & focus Greater process formalization Shared best practices More feedback QA/QC

QA/QC QA/QC Audit Program Audit Program Introduction HDR Quality Office QA/QC Program Audit Program Introduction HDR Quality Office QA/QC Program Audit Program Challenges Faced by Audit Program Audit preparation – “gaming” the system Small offices Selecting projects for review Consistency among Auditors Audits Regions Culture change – acceptance Auditors “owning the problem” Standardization vs. entrepreneurship Keeping audit program “fresh” History Roles Process Results Issues Summary Summary QA/QC QA/QC

What did we learn? Where are we going? Introduction HDR Quality Office QA/QC Program Audit Program Summary Introduction HDR Quality Office QA/QC Program Audit Program Summary You improve what you measure Strengths Culture of quality – “Work well done” Quality Control Reviews Project files Project management What did we learn? Where are we going? Areas for Improvement QA/QC training 0% Reviews Management Reviews QC Plans QA/QC

Internal Quality Audits at HDR American Society for Quality The 33rd National Energy & Environmental Conference Tucson, Arizona August 27-30, 2006 Session T21: Achieving Quality in Auditing – Executing Projects in Global and US-only Environments Internal Quality Audits at HDR The Evolution of a Quality Management System Dan Domalik, P.E., CQA East Region Lead Auditor HDR Engineering, Inc.