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Annual Report 2017 Assessment of the EU Recognised Organisations Quality Management Systems Quality Assessment and Certification Entity © QACE 2018 QACE Company number 7455733 Copying from this Crown House Registered in England and Wales document can be done 72 Hammersmith Road Community interest company provided source London W14 8TH UK limited by guarantee referenced www.qace.co  From our Chairman Table of Contents Klaus Grensemann I. Executive summary ........................................................................................................................ 06 Chairman II. Scope of Activities .......................................................................................................................... 08 of the Board III. The 2017 Work Plan ....................................................................................................................... 10 IV. Assessment Activities .................................................................................................................... 12 V. Assessment Results........................................................................................................................ 18 VI. Recommendations ......................................................................................................................... 20 Dear Reader, VII. Working with Interested Parties ..................................................................................................... 22 VIII. Concluding Remarks....................................................................................................................... 24 This is the seventh edition of the annual report that QACE has been issuing since its inauguration in IX. Acknowledgements........................................................................................................................ 26 November 2010. Compared to other annual reports you receive this one is not compiled for commercial reasons. QACE as a non-profit “community interest company ” has the objective of delivering an independent Annex A assessment of the Recognised Organisations’ (ROs) (classification societies) standards and quality Elected Non-Executive Directors of the Board for QACE ............................................................................ 30 management systems, and - where appropriate – issuing recommendations to improve them. QACE has the obligation to keep all of its interested parties informed on its work plan and on it’s Annex B general findings and recommendations. Members Of QACE - EU Recognised Organisations ................................................................................... 31 From its first year of operation in 2011 QACE has undergone a remarkable development. At the start the Board of Directors decided to begin with observation of the Accredited Certification Bodies’ Annex C (ACBs) audits and to accept the certificates the ACBs issued. Today, QACE provides for a small Review of Assessments- 2018 Collective Recommendations .................................................................... 30 secretariat and five highly qualified assessors, resulting in a completely independent parallel assessment[s] resulting in QACE certification. General recommendations for improvement are included in Annex C of this report and, individual to the RO, recommendations are presented and followed up with each of the ROs. By the end of this year (2018) QACE will have undergone a complete change of personnel. The original founding members of the board of directors will have rotated out, and the secretariat as well as the assessor’s team will have changed. The foundations have been set, and with QACE’s flexibility, we have brought onboard the best people to operate a highly effective assessment and certification program, and will be able to fulfil all requested needs in the future. Klaus Grensemann, Chairman of the QACE Board of Directors Click here to have your say on the RO related issues that affect your organisation. 6 QACE 2017 Annual Report QACE 2017 Annual Report 7 I Executive Summary In 2017 QACE completed another successful year of assessment and certification, implementing new recommendations for the improvement of the EU ROs quality management systems (QMS) and issuing the first of new audit requirements. In 2016 QACE reported that ‘while important initiatives are ongoing, QACE is now firmly established and major changes to the organisation are not planned’. One year later QACE is to embark on a major project to develop its own audit requirements, that will ensure independence and control over the RO audit process. QACE believes that readers of this year’s report will recognise the relevance of the Collective Recommendations (Annex C of this report), especially concerning the recognised organisation classification societies maintaining necessary surveyor resources during these times of recession and downsized operations. Also, after a number of incidents, assessing that adequate controls over classed local service non- convention ships are in place. Awareness of QACE activities has been heightened over the years, especially with the increased distribution of these annual reports. QACE is looking for full engagement with its interested parties, inclusively establishing actions to improve delivery in meeting our common goals of safe ships and clean seas. Last year’s report had a focus on bringing our interested parties’ issues to the audit process and testing the RO’s systems and controls in relation to issues that affect your organisation. This process, while still in its infancy, will continue to be a focus. As stated above, based on its assessment activity, QACE would draw attention to the four 2018 Recommendations detailed in Annex C, relating to: 1/ Audit controls over surveyor resources. 2/ Auditing control over non-convention ships. 3/ The effectiveness of the survey report checking process. 4/ Implementation of Water Ballast Management requirements. This year’s report comes with an Interested Parties Survey. We would appreciate your comments. Please use the opportunity to raise any recognised organisation issues that affect your interest areas, which might be effectively included in the audit programme. QACE continues to commit to reporting the results and of its assessment activity in future annual reports. 8 QACE 2017 Annual Report QACE 2017 Annual Report 9 7 7 II Scope of Activities This is the seventh Annual Report, for recording QACE activities and communicating the Collective Recommendations (Annex C) to interested parties. The QACE Scope of Activities is defined as ‘The Assessment of the Quality Management Systems (QMS) of the EU Recognised Organisations (EU ROs) in accordance with the principles of ISO 19011:2011 ‘Guidelines for auditing management systems’, through the witnessed application of the ISO 9001:2008 and IACS Quality System Certification Scheme (QSCS) requirements by ISO 17021:2011 accredited certification bodies’. The basis of QACE assessment is the ISO 9001 quality standard. The inclusion of ISO 9001 expertise from the accredited bodies and their auditors, in addition to the auditor’s technical competence with IACS Quality System Certification Scheme (QSCS) continues to have a significant impact. With the two above mentioned standards, the audit scheme benefits from both vertical and horizontal audit techniques, which encompass both the highly technical nature of the RO’s work through ‘deep dive’ review of technical compliance as well as audit of the effectiveness of processes, systems and controls and the fostering of continual improvement. The ROs began, and some completed, their transition to the new 9001:2015 standard during the year. The update to the standard has a focus on risk identification and mitigation. While considering risk has always been fundamental to an RO's activity, it has not necessarily been included in a strategic, organised and documented approach. QACE is reviewing the effectiveness of the RO's implementation. 10 QACE 2017 Annual Report QACE 2017 Annual Report 11 III The 2017 Work Plan The plan for 2017: • To hold a January Assessor’s Meeting to develop the 2017 Assessment Programme, to undertake training, exchange views and consider recommendations. • To deliver training to the scheme’s auditors. • To deliver an extensive and effective annual Assessment Programme, in the most cost-efficient manner. • To monitor the audit and certification processes of the EU ROs (and applicant ROs) to ensure they are conducted consistently and to the highest standards. • To collect information to develop and adopt Individual and Collective Recommendations for the improvement of the ROs’ Quality Management Systems. • To enhance the ability of the ROs to rapidly identify and correct weaknesses in their rules, processes and internal controls for the safety of the ships they inspect and certify. Apart from the core activity, Assessment Programme, the 2017 Work Plan included: • To hold four Board meetings during the year, one meeting in conjunction with the Members’ Annual General Meeting. • To increase interest parties’ awareness of QACE activities. • To complete the second cycle of RO Individual Recommendations. • To initiate three-year trend analysis of audit findings. As an overall goal, to comply with the requirements of Article 11 of EU Regulation (EC) No 391/2009 in maintaining an independent assessment and certification entity. 12 QACE 2017 Annual Report QACE 2017 Annual Report 13 IV Assessment Activities The main objectives of QACE’s assessments are to promote safety at sea and the In 2017, 65 audits of the different types were witnessed (60 in 2016), over 48 visits (38 protection of the marine environment for the benefit of the community through in 2016). The 2017 assessments comprised: frequent and regular assessment of the quality management systems of Recognised Organisations, in accordance with the ISO 9001 quality standard criteria. • 15 Survey Locations (SL) (18 in 2016). QACE aims to attend at least one SL for each RO each year. The January two-day Assessor’s Meeting is an important event in the QACE calendar in designing the year’s Assessment Programme. The meetings include new internal • 4 Control Offices (CO) (5 in 2016). Smaller ROs do not have COs and all branch offices training, exchange of experience, as well as the locations, dates and types of audits for are controlled through the Head Office. assessment that will be recommended to the Board of Directors. A risk-based approach is employed in the selection of assessment visits, tailored to each RO’s fleet and • 9 Head Offices (HO) (4 in 2016). QACE has moved to attending HO audits every activities, while maximizing the cost and benefit effectiveness. second year, the alternate year attending the HO to discuss Individual Recommendations (refer section VI). 7 HO’s were attended in 2015. It is of great assistance in this process that the accredited certification bodies (ACB) auditors are increasingly effective in producing testing annual audit plans and in • 9 Plan Approval Offices (7 in 2016), and 13 New Construction Vertical Contract Audits selecting their own risk-based samples to audit, including complex new building (VCAs) (8 in 2016). The auditors are encouraged, wherever possible, to take a process projects and older ships in service major classification and statutory surveys. Further in- approach to the new building process and include audit of both the plan approval house expertise has been achieved with the appointment of a Technical Expert and construction of the same project. In the end-to-end approach the contract and responsible for internal and auditor training the ship’s formal classification and required records can be audited during HO audits. Assessments are held at the RO’s Head Offices (HO), Control Offices (CO), Survey • 15 Ships in Operation VCAs (18 in 2016). Vertical Contract Audits are an important Locations (SL) and Plan Approval (PA) Offices. Central to the audit scheme are the audit element, when the auditor can witness surveyors in the performance of their Vertical Contract Audits (VCAs), audits onboard ships during New Construction (NC) duties onboard ships during surveys. surveys, during major Ships in Operation (SiO) periodical and statutory surveys and audits of the ISM process. Due to the vagaries of ship operations, with regular delayed arrival times and postponed survey activity, Ships in Operation VCAs are the most difficult type of audit to organize. QACE is asking the question, are there better ways of doing it? Ideas for establishing how a remote review of surveyor and survey records may take a part in the audit requirements will be considered together with the ACB’s and ROs. EU Regulation (EC) No. 391/2009 Article 11.2 requires the assessment and certification, not only of EU recognised organisations, but of organisations requesting recognition. To that end QACE carried out assessment of Türk Loydu during the year. 14 QACE 2017 Annual Report QACE 2017 Annual Report 15 Table 1: List of QACE Assessments carried out in 2017 Ass No ACB RO Location Date Type Ass No ACB RO Location Date Type 37 BSI CRS Split 26-30 Jun HO 1 SGS CCS Tianjin 20-21 Feb NC VCA 38 DEKRA DNV GL Ulsan 29-30 Jun NC VCA 2-3 DEKRA RS Busan 21-22 Feb SL &PA 39-40 SGS KR Busan 14 – 18 Jul PA & NC VCA 4 DEKRA RS Geoje 23-24 Feb NC VCA 41 BSI BV Chittagong 19-20 Jul NC VCA 5 BSI BV Panama 6-7 Mar SiO VCA 42 SGS NK Taipei 20-21 Jul SL 6-7 BSI BV Houston 9 – 10 Mar M&E VCA & PA 43 SGS CCS Stockholm 24-25 Jul SL 8-10 BSI BV Fort Lauderdale 13-17 Mar CO, SL & SiO 44 SGS NK Singapore 25-28Jul PA & SiO VCA VCA 11-12 BSI TL Tuzla 13-16 Mar HO & SL 45 DEKRA RINA Southampton 29 – 30 Aug SL 13 DEKRA RS St Petersburg 14-17 Mar HO 46 BSI TL Constanta 7-8 Sep SiO VCA 14 BSI TL Izmir 17 Mar SL 47-48 BSI ABS London 11-13 Sep CO & PA 15-16 SGS CCS Shanghai 27- 31 Mar CO & PA 49 BSI CRS Sibenik 18- 19 Sep SL 17 CCJ PRS Gdansk 4-7 Apr HO 50 BSI CRS Yalova 25-26 Sep SiO VCA 18 BSI LR Ulsteinvik 20-21 Apr NC VCA 51-53 DEKRA RINA Shanghai 18-26 Sep PA, SiO VCA 19 SGS KR Manila 24-25 Apr SL &SL 54 BSI CRS Turkey 25-26 Sep SiO VCA 20 BSI IRS Rotterdam 24-25 Apr NC VCA 55 BSI LR Southampton 26-29 Sep HO 21 BSI CRS Kraljevica 28- 29 Apr NC VCA 56 DEKRA RINA Genoa 3-6 Oct HO 22-23 BSI ABS Dubai 30 Apr- 4 May SL & PA 57 BSI LR Gdansk 9-10 Oct SL 24 BSI ABS Abu Dhabi 7-8 May SiO VCA 58 BSI TL Istanbul 9-13 Oct HO 25-26 DEKRA DNV GL Tema 8-11 May SL & SiO VCA 59 DEKRA DNV GL Hamburg 17-18 Oct PA 27 BSI ABS Houston 15-19 May HO 60-61 BSI LR Hong Kong 30 Oct – 2Nov CO & SiO VCA 28 SGS KR Singapore 18-19 May SiO VCA 62 BSI TL Istanbul 20-21 Nov NC VCA 29 BSI IRS Houston 22-23 May SL 63 BSI TL Tuzla 22-23 Nov SiO VCA 30 BSI IRS Zhoushan 25-26 May NC VCA 64 CCJ PRS Cairo 5-6 Dec SL 31 BSI BV Paris 29 May -2 Jun HO 65 CCJ PRS Gdansk 18-19 Dec NC VCA 32 DEKRA RS Piraeus 31 May – 1 Jun SiO VCA 33 BSI ABS Mangalia 08-09 Jun NC VCA HO - Head Office PA - Plan Approval Office 34 BSI TL Ravenna 21-22 Jun SiO VCA CO - Control Office (SiO) - Ships in Operation (NC) - New Construction SL - Service Location Office 35 SGS NK Sakaide 21-22 Jun NC VCA VCA - Vertical Contract Audit Non member assessments 36 CCJ PRS Dubai 23-24 Jun SiO VCA 16 QACE 2017 Annual Report QACE 2017 Annual Report 17 The QACE Assessors are strategically located to deliver the Assessment Programme in Over the last few years, the world’s shipping activity for new construction and major the most cost-effective manner possible. QACE is very pleased to announce the addition surveys has gravitated to the Far East. At the same time it is still necessary for the RO’s to the assessor team of Mr Alvin Shepherd based in Houston who has responsibility for to provide surveyors and auditors for surveys and audits wherever a ship may call for assessment coverage in the Americas. them. All the RO’s global survey locations are required to be audited over time. To be confident that there will be appropriate ships under survey at the time planned for Map 2: QACE Assessor’s Locations Vertical Contract Audits QACE has concentrated its assessment activity on higher volume survey hubs (which can be seen from Map 1) and a concentration of assessments in Europe and the Far East. Apart from busy locations, QACE sees a different set of challenges smaller remote locations. Distant from control offices, where complex surveys are not routine and where local ship owners provide a large part of the office activity can present its own pressures and challenges. QACE introduced the selection of ‘remote’ locations in the risk-based assessment programme in 2016 and will continue with this policy. Map 1: QACE Assessment Locations 2016-2017 . KEY 2016 2017 Remote Locations 18 QACE 2017 Annual Report QACE 2017 Annual Report 19 V Assessment Results In line with Section III Work Plan and Section IV Assessment Activities there is significant In 2017 the twelve RO’s audit findings trend analysis varied between a download of the evidence that the combination of the highly competent and experienced auditors and numbers of findings against the various requirements to a full root cause analysis assessor team, risk-based sampling, auditing process effectiveness and targeted focus described above. QACE will work with the RO’s, stressing the importance of the process areas, is proving an effective test of the recognised organisation’s controls and in demonstrating lessons learnt, continuous improvement and, particularly with the new management systems. ISO 9001:2015 standard, the mitigation of risk and identification of opportunities. What is being done with all the information? The ROs have until the 15th September 2018 to transition to the new risk-based ISO When a summary of the assessments is prepared, several points are extracted that are 9001:2015 standard. Some achieved certification in 2017. With five different relevant as: certification bodies, distributed across the twelve RO’s, there have been differing approaches, both from the ACB’s and in the RO’s implementations. This is a • Potential recommendations to the RO or, as part of a trend across the ROs, as a disadvantage of the audit scheme, making it difficult to set a benchmark and to maximize potential Collective Recommendation (CR), or best practices. the benefits that should be brought to the RO’s through the new standard. QACE will closely monitor each RO’s applications, looking for weaknesses in implementation and • Trending items may also be relevant as proposed changes to the audit requirements. best practice. QACE will also look for areas of significant risk, applicable to the marine RO’s, that have not been translated into the audit scheme and where requirements may • Issues can also relate to opportunities for improvement to be raised with the audit need to be set. bodies during QACE annual meetings and at the November end-user workshop. With the advent of the Tripartite Agreements between QACE, the audit bodies and the RO’s in 2016, the requirement for ROs to provide an annual three-year Audit Finding Trend Analysis (AFTA) was instigated. QACE will place increasing emphasis on the consistency and effectiveness of the RO’s trend analysis. The requirement is designed to identify trends in the audit findings that may point to system or control weaknesses, potential risks and areas requiring improvement. Root cause analysis of any significant trends in audit findings is designed to identify underlying issue and help in the identification of more effective corrective actions. QACE uses this technique in constructing its Individual Recommendations for each RO. 20 QACE 2017 Annual Report QACE 2017 Annual Report 21 20 8 VI Recommendations Collective Recommendations The annual CRs have progressed from actions that are recommended for the ROs QACE publishes its annual Collective Recommendations (CRs) in Annex C of this report. to take, to recommendations to the auditors for inclusion in their auditing. In recognition the ACB audit bodies, formal feedback will make an important part of The RO’s responses to the annual recommendations are analysed in the 3rd quarter of meetings with QACE at the end of each audit year. each year to determine the actions to be taken and to be able to discuss the results with the involved and interested parties during the end-user workshops in November of each year. Results from last year’s Collective Recommendations (CR): CR 1 / QACE is pleased to report that assessments of all ROs in remote Audit of remote locations have demonstrated adequate controls in all but locations and isolated instances. QACE will continue with this focus in 2018. surveyors QACE Requirements Notice (QRN) was published during the CR 2 / year that excludes block inspections from the new building Exclusion of audits [that excluded new building audits of ships that were early stages of only at the block inspection stage] and kick-off meetings from surveys from ships in service audits. A fundamental of the Vertical Contract Vertical Audit process is that auditors verify the effectiveness of Contract surveyor’s delivery of requirements during significant Audits. structural and statutory survey items. CR 3 / Closed loop The audit bodies have agreed that their audit reports will audit focus area include feedback on the effectiveness of QACE specific interest reporting. areas for analysis and inclusion in future Annual Reports. CR 4/ QACE is pleased to report the effectiveness of the RO’s end-to- Extension of end Rule development and the audit teams effective process process auditing auditing. Isolated instances have been identified where new to Rule requirements have not been implemented by the development. implementation date. 22 QACE 2017 Annual Report QACE 2017 Annual Report 23 VII Working with Interested Parties In the past Annual Reports have been distributed to all interested parties by email, or The first year of the third cycle of Individual Recommendations hard copies, have been provided to the flag States and the organisations represented at Individual was completed in 2017. With the increase of available IMO during the Spring MSC meetings. QACE is increasing its distribution by posting the Recommendations information after six years of audit findings and assessment report to social media and by a significant increase in its email contact list. Last year’s activity the IR process has become highly effective in identifying report elicited significant interest in QACE activity and demonstrated that there is the strengths and weaknesses of each of the ROs, driving increasing awareness of QACE and its applicability to flag interests. The 2018 improvements to their quality management systems (QMS). Interested Parties Survey is designed to establish if QACE activities are meeting the New to 2017 has been the introduction of the RO’s audit body expectations and to identify any initiatives that can be taken to work together. (ACB) being copied into the recommendations and the RO’s response. The EU Commissions assessment of QACE activities in relation to meeting EU Regulation (EC) No. 391/2009 Article 11, on common rules and standards for ship inspection and QACE has found the process of attending each RO’s Head Office survey organisations, was received in October 2017. The assessment highlighted to discuss the recommendations as mutually beneficial in a findings: common understanding of the assessment recommendations and the necessary actions to be taken. • Concerning the requirements for QACE to issue interpretations of the relevant international quality standards. • To implement QACES’ own audit requirements, to ensure independence from the RO’s and the RO’s association IACS. • To ensure that QACE directors are free from conflicts of interest. QACE delivered its corrective action plan at the end of 2017 and awaits the Commission’s comments regarding the suitability of QACE plans. As part of the corrective actions QACE has launched a major project to develop its own audit requirements. 24 QACE 2017 Annual Report QACE 2017 Annual Report 25 VIII Concluding Remarks QACE has increased its direction to the five Accredited Certification Bodies (ACBs). The As highlighted in the QACE Chairman’s opening remarks, 2017 sees the beginning of a second year of November meetings has been highly successful in agreeing team working period of further change for QACE but, with the foundations that have been set, the between ACB auditors and QACE Assessors to achieve the two organisations different challenges can be met with some confidence. objectives through a single agreed audit outcome. Next year will see more extensive meetings to discuss and agree the audit plans. Last year’s annual report summarised the year as moving beyond compliance to the stepped changes required to achieve a continual improvement cycle, driving At the invitation of the European Commission DG MOVE, QACE presented a report to the performance. The QACE Board of Directors, in preparing this year’s report, realise how June 2017 Committee of Safe Seas (COSS) meeting of the EU member States. Feedback much has been achieved again in 2017. from the meeting centered on interest in the results of assessment and QACE expertise in RO assessment that is lacking with many flag States implementing the RO Code. There QACE activity is now firmly focused on RO performance, having established that the was some misunderstanding of the supposed duplication of QACE and IACS activity and necessary high standard of auditing is being maintained. The Tripartite Agreement, a common interest in including flag interest areas into the audit scheme. implemented in July 2015, has found the audit teams working ever more closely with the QACE Assessors. Both parties’ necessary independence has been maintained while During the year QACE met with both the Paris and Tokyo MoUs to explore common still engendering team work. QACE issues have been assimilated into the ACB’s audit plans and the audit execution has achieved a common outcome with no need for interest areas and opportunities to work together. separate QACE findings, apart from isolated instances. QACE established a suite of products during the year: • Launching a major project to develop its own audit requirements. • Issuing QACE Requirements Notices (QRNs) to establish individual audit requirements, outside of a formal QACE audit scheme. • Issuing QACE annual Specific Interest Areas (SIAs) to establish QACE’s annual audit focus areas. • Three-year Audit Finding Trend Analysis (AFTA) established under the QACE/ACB/RO Tripartite Agreement, calls for ROs to use the audit findings for the improvement of their systems, controls and service delivery through improvements to their management systems. The QACE Board of Directors and the Secretariat again commit to its principals of independence, transparency and in its promise to help drive the effectiveness of the necessary controls and improvements in the general and individual Recognised Organisation’s management systems performance. 26 QACE 2017 Annual Report QACE 2017 Annual Report 27 IX Acknowledgements The QACE Board of Directors and Secretary General acknowledge the importance of the QACE Assessors role in delivering the QACE core activity in its assessment programme. Without the expertise, professionalism and commitment they display it would be impossible to deliver the QACE objectives and interested parties’ expectations. QACE would particularly thank the Accredited Certification Bodies and the audit teams, for their positive implementation of the Tripartite Agreement and incorporation of QACE requirements and Assessors into the audit process, which has resulted in a team philosophy, in order that all participants can achieve their objective through a single agreed outcome. QACE was conceived and created by the efforts of many individuals and continues to secure its independent mandate by acknowledging the common purpose of safer shipping and cleaner seas that requires the commitment of so many. 28 QACE 2017 Annual Report QACE 2017 Annual Report 29 Glossary ABS ...................................................................................................... American Bureau of Shipping IRs ................................................................................................... Individual Recommendations ACB ...................................................................................................... Accredited Certification Body ISM ................................................................................. International Safety Management Code AFA .......................................................................................................................... Audit Focus Area ISO ........................................................................ International Organisation for Standardization AFTA ...................................................................................................... Audit Finding Trend Analysis KR ....................................................................................................... Korean Register of Shipping AGM ............................................................................................................ Annual General Meeting LR ........................................................................................................................... Lloyd’s Register BSI ................................................................... The British Standards Institution [Certification Body] NC ................................................................................... Audit finding graded as Non Conformity BV ......................................................................................................................... Bureau Veritas S.A. NGO .................................................................................... IMO Non-Governmental Organisation CCJ ........................................................................... Quality Certification Center [Certification Body] NK ..................................................................................................................... Nippon Kaiji Kyokai CCS ........................................................................................................... China Classification Society OB .......................................................................................... Audit finding graded as Observation CIC ................................................................................... Community Interest Company [Non Profit] PA ............................................................................................................. RO Plan Approval Centre CO ...................................................................................................................... RO Controlling Office PRP ......................................................................................................... Procedure Review Project CRs ........................................................................................................ Collective Recommendations PRS ................................................................................................. Polish Register of Shipping S.A. CRS ........................................................................................................ Croatian Register of Shipping QMS .................................................................................................. Quality Management System DEKRA ....................................................................... DEKRA Certification GmbH [Certification Body] QRNs .................................................................................................. QACE Requirements Notices DNV GL ...............................................................................................................................DNV GL AS QSCS .............................................................................. IACS Quality System Certification Scheme EC ..................................................................................................................... European Commission RINA ................................................................................................................. RINA Services S.p.A. EMSA ............................................................................................ European Maritime Safety Agency RO ............................................................................................................ Recognised Organisation EU .............................................................................................................................. European Union RS ........................................................................................ Russian Maritime Register of Shipping EUW ........................................................................................ IACS ACB Auditor End User Workshop SGS ...................................................................................................... SGS S.A. [Certification Body] HO ............................................................................................................................... RO Head Office SIAs ............................................................................................................... Specific Interest Areas IACS .................................................................... International Association of Classification Societies SL ....................................................................................................................... RO Survey Location IACS PR ............................................................................................... IACS Procedural Requirements TL .....................................................................................................................................Türk Loydu IACS UR .................................................................................................... IACS Unified Requirements VCA ............................................................................................................... Vertical Contract Audit IAF ......................................................................................... International Accreditation Forum, Inc. IMO ........................................................................................... International Maritime Organisation IRS ............................................................................................................. Indian Register of Shipping 30 QACE 2017 Annual Report / Annex A QACE 2017 Annual Report / Annex B 31 Annex A Annex B Elected Non-Executive Members of QACE – Directors of the Board for QACE EU Recognised Organisations Klaus GRENSEMANN ..........................................................................................Germany American Bureau of Shipping Christian BREINHOLT...........................................................................................Denmark Bureau Veritas S.A. C. Dean TSERETOPOULOS.......................................................................................Greece China Classification Society Hui XIE ......................................................................................................................China Croatian Register of Shipping DNV GL AS Under the conditions of the QACE Articles of Association terms of service, Francis Vallat Korean Register of Shipping retired on 7th November 2017. Lloyd’s Register Nippon Kaiji Kyokai Secretariat Desmond GUTTERIDGE ........................................................................ Secretary General Polish Register of Shipping S.A. Alima KAMARA .......................................................................... Administration Manager RINA Services S.p.A. Tim HO ...................................................................................................Technical Expert Russian Maritime Register of Shipping Sub-contracted Assessors The QACE Members Certificates of Compliance can be found on the QACE website Tim HO ................................................................................................................. Far East qace.co Hartmut NICKEL .................................................................................................... Europe Mike JENNINGS ..................................................................................................... Europe Elected President Gur SARUP ....................................................................................................... South Asia Patrick LE-DILY, Bureau Veritas Alvin SHEPHERD…………………………………………………………………………………………... Americas Approved Accredited Certification Bodies BSI Milton Keynes, U.K. CCJ Warsaw, Poland DEKRA Certification B.V. Arnhem, The Netherlands SGS S.A. Geneva, Switzerland 32 QACE 2017 Annual Report / Annex C QACE 2017 Annual Report / Annex C 33 Annex C Assessments Review 2018 Collective Recommendations QACE has completed an eighth year of its assessment activity and can report consistent, 2/ The auditing of the effectiveness of RO’s controls over non-convention ships. transparent and robust audits, strengthened procedures and general continuous improvement to the Recognised Organisation (ROs) quality management systems, While the responsibility for the standard and safety of ships lie with the owners and flag State, controls and service provision. instances have been reported where non-convention ships have been involved in incidents. In some cases, ships, under pressure because of poor maintenance have moved to local, national service, For 2018 QACE would draw attention to four areas of the audit system that may benefit dropping their statutory certification. While the RO’s responsibilities are limited to the classification from additional focus. of these ships, the associated risks should be incorporated into the RO's fleet management and controls. 1/ The auditing of the effectiveness RO’s control over surveyor resources. As a natural reaction to the industries recession and the downturn in work, some of the 3/ The effectiveness of the report checking process. larger ROs have reorganised and significantly reduced their head-count. Offices have been closed and more surveyors work remote from offices. The recession has also reduced the available revenue which has led to cost cutting and which can put pressure With more and more regulatory requirements increasing the complexity of the work it is difficult on the available monies and resources to support the highest standards. This comes at a for surveyors to get the reporting of surveys and audits right first time. Survey checklists have time when many organisations, including flag States, have also reduced their technical become increasingly important. The ROs reporting and surveyor support systems need to be capabilities and staff, which might result in an overreliance on the recognised constantly updated. As a result, reporting errors are a common audit finding, calling into question organisations. the effectiveness of the report checking or verification process. There are several related issues that QACE is including in its assessments during 2018, confirmation that locations still have sufficient resources to service the workload and 4/ Implementation of Water Ballast Management requirements that, when new projects are generated and workloads return to previous levels, that The Water Ballast Management (WBM) requirements came into force on 8th September 2017. sufficient surveyors will be available, competent and authorised to service the new work. Which was then extended another two years. A lack of take up of WBM systems is largely due to This is particularly relevant to plan approval and new construction surveyors. the costs and difficulties involved and that, provided certain requirements are satisfied, exemption can be granted by the flag Administration for de-harmonisation of the IOPP Certificate. Examples QACE is looking for the RO’s to include these issues in their risk mitigation, the necessary of submissions indicate common failures. The auditors have been trained in the requirements, the flexibility and planning to react quickly, when the market emerges from recession, to surveying and approval requirements and the evidence that should be expected. have adequate resources in place. From: Alima Kamara [mailto:[email protected]] Sent: Wednesday, May 02, 2018 11:25 AM Subject: Subject: QACE Annual Report 2017 to Interested Parties, Ref. EC Regulation 391/2009, Art. 11.5 To: EU Commission. Att: DG MOVE, dir. C. Berg EU Flag States. EMSA Att: Safety Assessment & Inspections, M. Hunter cc: QACE Chairman, Board of Directors QACE Board of Directors QACE President QACE Members Date: 2 May 2018 Subject: QACE Annual Report 2017 to Interested Parties, Ref. EC Regulation 391/2009, Art. 11.5 Dear Madam or Sir, Please find attached the QACE 2017 Annual Report to interested parties, pursuant with EC Regulation 391/2009 Article 11.5. According to the Regulation Art.11.5, the entity QACE is required to provide the interested parties, including flag States and the Commission, with full information on its annual work plan as well as on its findings and recommendations. The attached Report is the seventh QACE Annual Report. Maritime Transport Attaches receiving this mail and report are kindly requested to convey the report to their respective Maritime Administrations. The report is publicly available on the QACE web-site www.qace.co We would also like for you to complete the 2018 interested parties survey www.surveymonkey.co.uk/r/QACE Sincerely yours, Alima Kamara -- Alima Kamara Administration Manager 3rd Floor, Crown House 72 Hammersmith Road London W14 8TH, United Kingdom Phone office: +44 203 178 2301 Email office: [email protected] -------------------------------------------------------------- www.qace.co QACE - Entity for the Quality Assessment and Certification of Organisations Recognised by the EU CIC (QACE) is a community interest and not-for-profit company. Its objective is to fulfill the requirements of its articles with reference to the quality assessment and certification of Classification Societies. THEREFORE, QACE accepts no liability for any loss, damage or expense as a result of any QACE error, omission, negligence or act of breach of duty.