2009 Standardization ConferenceSC18 Committee on Quality Standards

Westminster, ColoradoJune 25, 2009

API Monogram Program

Status Report

W. Don WhittakerManagerMonogram Program/APIQRwhittakerd@api.org

Aaron DukeAudit Program ManagerMonogram Program/APIQRdukea@api.org

Laura LevandoskiAssociateMonogram Program/APIQRlevandoskil@api.org

• Program Status• Fraud/Misuse Update• Additional Agreements• Workload Solutions / New

Developments

Monogram Program Status

Program Status

Organizational Structure

http://www.api.org/certifications/monogram

Program Growth Licensees/Licenses

Most Popular Licenses

Reaudits and Suspensions

Suspensions, Cancellations, and Withdrawals

• 178 Suspensions• 210 Withdrawals• 76 Cancellations

• Most Commonly Suspended Specs: 6D, 6A, 7-1• Most common reasons for Suspension: Audit Nonconformances,

No Renewal Agreement, Non-Payment

• Most Commonly Cancelled Specs: 5CT, 6D, 6A• Most common reasons for Cancellation: Audit Nonconformances,

Failure to Provide Responses to Audit Nonconformances by Specified Date, Facility Closure

• Most Commonly Withdrawn Specs: 6A, 6D, 7• Most common reasons for Withdrawal: Facility closed, Facility

request, Product(s) No Longer Covered by Specification

Average Days of Actions

Actions

July

Augus

t

Sept

embe

r

Octob

er

Novem

ber

Decem

ber

Janu

ary

Febr

uary

Mar

chApr

ilMay

0

200

400

600

800

1000

1200

Open Actions

Actions Received

Actions Processed

Revised Specs [Effective in 2009]• API Standard 600– Steel Gate Valves - Flanged and Butt-welding Ends, Bolted

Bonnets 9/1/2009

• API Spec 5LD – CRA Clad or Lined Steel Pipe 9/1/2009

• API Standard 608 – Metal Ball Valves--Flanged, Threaded and Butt-Welding

Ends 6/1/2009

• API Spec 11E – Specification for Pumping Units 5/1/2009

• API Spec 12B – Specification for Bolted Tanks for Storage of Production Liquids

3/31/2009

• API Spec 12D – Specification for Field Welded Tanks for Storage of Production

Liquids 3/31/2009

• API Spec 12K – Specification for Indirect Type Oilfield Heaters 3/31/2009

• API Spec 12F – Specification for Shop Welded Tanks for Storage of Production

Liquids 3/31/2009

• API Spec 12P – Specification for Fiberglass Reinforced Plastic Tanks 3/31/2009

• API Spec 12J - Specification for Oil and Gas Separators 3/31/2009

• API Spec 12L - Specification for Vertical and Horizontal Emulsion Treaters

3/31/2009

• API SPec17J - Specification for Unbonded Flexible Pipe 1/1/2009

Fraud/Misuse Update

Handling Fraudulent Activity

Minor Cases Nonconformance letter - inaccurate license claims,

misuse of monogram on documentation, sales, incomplete license numbers, websites

Taking action on Fraud Issue warnings Periodic Audits (result of product falsely

monogrammed) C&D letter Cancel current license & applications 2 year ban from the program Add to website list of nonlicensees Legal Investigation

Company ACase: Website displaying the API MonogramActions:• Sent email to remove the API Monogram within seven

days – 3/10/09• They responded to remove API Monogram – 3/12/09• API Monogram was removed – 4/09/09

Company BCase: Website displaying API Monogram without the license no.Actions: • Sent email to correct the website – 3/19/09• They responded to update website – 3/20/09• Website updated with the license no. – 3/31/09

Minor Cases

Company CCase: Received fake certificate from userActions:• Ask user if products were monogrammed• Check website if fake certificate was displayed• Discuss with OGC• Send C&D letter• Review their response to the C&D letter• Listed on the Non-Licensed Organization (API

Composite List)http://compositelist.api.org/

NoticeRegardingNonLicensedOrganizations.asp

Major Cases

Company DCase: Applicant website displaying fake certificateActions:• Check database for status• Discuss with OGC• Conduct investigation in China• C&D letter sent by Chinese lawyers• Review their response to the C&D letter• Fake certificate removed from website• Application withdrawn and given 2 years to re-apply• Listed on the Non-Licensed Organization (API Composite List)

http://compositelist.api.org/NoticeRegardingNonLicensedOrganizations.asp

Major Cases

Additional Agreements

Alternative Marking Agreement

Guest/Host Program Definitions

Host - a facility at which all manufacturing is performed

Guest - a facility that has requested another organization to perform the manufacturing of a product on their behalf

Guest/Host Program Requirements• Both Guest and Host must have an active

monogram license

• The Guest must conduct an annual on-site second party audit of the Host

• A documented acknowledgment shall be provided to the purchaser that the product was “Manufactured for (Guest) under Agreement with (Host) located in (Host Location)”

• The license number includes GH (XXX-xxxx-GH)

Program Implementation• New program requirements take effect November

1, 2009 • April 20, 2009 – Letter sent to all clients and

auditors involved in the Guest/Host program highlighting the main changes to the program

• April 22, 2009 – New Guest License issued to all active Guest Licensees with an October 31, 2009 expiration date

• New applicants will not be issued a Guest/Host license unless they meet new program requirements

Benefits

• Ensure all clients using the Monogram have an established quality management system and meet API Spec Q1 requirements

• Ensure the integrity of the API Monogram

• Ensure control over the API Monogram Mark

Workload Solutions & New Developments

Client Information Update

Sys

tem

AP

I Re

vie

we

rC

lien

t

End

Yes

No

No

Associate checks reason from list

and leaves comment if

needed 0.08

System generates email for client to check website to

make update0.00

Client Logs In

0.00

Item entered into approval queue

0.00

Change needed?

Reviewer Validates

Information0.03

Approved?

Client enters new information

0.00

System generates approval email

0.00

Item Require Approval?

Yes

NoDatabase

updated via SQL Data Connector

0.00

Yes

Start

1.1.1 API Official Response Workflow

Ass

ocia

te 1

Sta

nd

ard

s A

sso

cia

teM

ana

ge

rS

eni

or

Ass

oci

ate

Ass

oci

ate

2

Collaborate in Person

0.25

Agree w/ Associate 2?

Review, Processes, and signs off on AAR

2.00

Collaborate in Person

0.25

Collaborate in Person

0.25

Approve?

Collaborate in Person

0.25

Reviews, Processes &

Generates AAR response

3.00

Reviews comments

0.25

Decide

0.25

OK?

Reach Consensus?

Review

1.00

Reach Agreement?

Collaborate in Person

0.25

No

No

Click to Post

0.00

Yes

Yes

Click to Post

0.00

Yes

No

No

System automatically assigns specific AARs (per their ISO code) to Standards Queue and there is always

an option to “flag for standards”

Inserts a comment to the message

board0.25

Standards signs off on the AAR

0.25

Any Associate or Manager can flag an AAR for the answer to a technical

question at any time. When this occurs, the workflow moves to the Standards Associate for a comment

End

1. Unit Certification Process

Sys

tem

AP

IC

lient

Aud

itor

Auditor Conducts Audit

Audit information is loaded into SharePoint

AARs are generated on

client site

All AARs are resolved

AAR Resolution

Process

Certification is marked as

complete and Ops Database updated

End

1.1 AAR Resolution Process

Sys

tem

AP

IC

lien

t

Response required from

client?

Client provides response to AAR

on SharePoint siteYes

SharePoint sets AAR status to

closedNo

API Official Response Workflow

starts

Official response is posted to

discussion board

From Unit Certification

Process

End

Document stored in Alchemy

Current Process Future Process

Process Analysis

• Automating client information updates

• Providing clients with a clear view of their current

certifications

• Providing clients with a view into actions required of them

• Enabling Auditors to manage and view their audit schedules

• Allowing Auditors, Clients, and API to interact with each

other about open Non-Conformance repots quickly and

efficiently

• Creating and Managing Financial Invoices both from the

Auditor and to the Client

• Facilitate the letter approval and response process via

discussion boards

The system will assist in:

• Inputting information from documents and forms into client

databases

• Scanning documents for database storage

• Printing, collating and stapling documents for group review

and signoff

• Tracking and managing these tasks manually

• Mailing formal responses to clients via USPS or FedEx

($175K)

The system will remove non-value added work

Information Update

• Current time expenditure: 593 actions at 4774 hours/year

• New time expenditure: 593 actions at 148.25 hours/year

• Estimated time savings: 96% decrease in processing time

Panel Processes

• Current time expenditure: 2190 hours/year

• New time expenditure: 500 hours/year

• Estimated time savings: 77% decrease in processing time

Quality Manual Processing

• Current time expenditure: 890 actions at 2225 hours/year

• New time expenditure: 890 actions at 445 hours/year

• Estimated time savings: 80% decrease in processing time

Contact Information:Mailing Adress Billing Address500 E. 51st St. 720 5th AveHouston, TX 33221 New York, NY 10036

Phone Contact: 555-555-5555

Halliburton

Contact:Jane Doyle

v Hyperlink 1v Hyperlink 2

Current CertificationsClick a link to view that certification

v Hyperlink 1v Hyperlink 2

Certifications in ProgressRed boxes indicate a Certification needs your attention

Green boxes indicate the Certification is under API review

AARs waiting on your response: 20AARs waiting on APIs response: 5

AAR Status

Update

Client Main Page

Audit Summary Page

AAR Main Page

Internal “Panel” Page

Current Solutions• Internal SharePoint site

• Document Control• Standardization of Communication (letters)

• Responses are reviewed with the audit packages

• Web driven workplace activities• Web based data queries, providing better

tracking, more and useful metrics

Bottom line……..efficient, fast, responsive

New Developments

Client Site reported down or not operating

API status changed to “Inactive” for 6 months

During six month period – Renewal / Abbreviated audit

After six month period – License “Withdrawn” and full initial audit will be required

If, after 1 year for ISO site, a Stage 1 audit will be required

Client Status

Report Nonconforming Product

Report Nonconforming Product at “ncr.api.org”.

API strives to continually improve the value of the Monogram Program. As such, notify API of nonconforming Monogrammed products.

Description of Nonconforming Product(s)

Spec Pick list:Product Pick list:Manufacturer Pick list:

If the manufacturer is not listed in the pick list above, please enter the company name below.

_____________________________________Date of Purchase:Number of Products Purchased:Number of Products Nonconforming:Date Nonconformance Discovered:Description of Nonconformance:Your Contact InformationCompany NameContact NameE-mail AddressPhone NumberComments:

API Certification Programs

For more information:• API’s Composite List: http://compositelist.api.org • API Certifications Dept.: +1-202-962-4791• Don Whittaker: whittakerd@api.org • Aaron Duke: dukea@api.org• Laura Levandoski: levandoskil@api.org