API Quality Specifications and the Efficiency of Leveraging a QHSE Management System

2013 Safety Driven Performance Conference9-10 October 2013

Robyn Stephens, PhD CRMA

Principal Consultant

Atkins, Energy, Oil & Gas

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Agenda

Who is Atkins?

What is the link between Quality and Safety?

What is a Management System

History of API Q1 and Q2

Understanding API Q1 and Q2

Examples of Overlap with HSE/PS MS

Advantages of Integration

Songjiang Shimao Intercontinental HotelPeople’s Republic of China

Architecture, structural engineering, civil engineering

Who is Atkins?

Why are they here?

Who is Atkins?

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Atkins is one of the world's leading design, engineering and project management consultancies.

Plan Design Enable

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Why are they Here?Management Systems

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Capital Fort, SofiaBulgaria

Architecture, interior design, mechanical, electrical, civil and structural engineering, BREEAM assessor,

acoustics, ICT strategy

What is the link between Quality and Safety?

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Release to Environment

Risk ManagementDifferent Sons of the Same Mother . . .

Procedure Failure

Equipment Failure

Human Error

Work Interruption

Fire and/or Explosion

Loss of Primary

Containment

Olympic ParkLondon 2012 Games

Multidisciplinary engineering infrastructure design, project managing enabling works,

site clearance and remediation, environmental impact assessment

What is a Management System?

How risks are controlled

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Management System Fundamentals

A Management System is ● a System of processes● Sustainable● Suitable to the organization● “The way we do business“

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Typical Hierarchical Structure

Corporate

Business 1

Site A Site B

Business 2

Site CSite Specific Procedures

Methodologies and Standards

Framework of Expectations

Management System Structure

Organizational Structure

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What is a Process

Process OutputInput

Resources

Controls

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A Sustainable System

Plan

Do

Check

Act

Burj Al ArabUnited Arab Emirates

Architecture, civil and structural engineering,

MEP engineering, cost consultancy

History of API Q1 and Q2

Quality Management Systems

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Evolution of Q1 and Q2

Originally titled "Specification for Quality Programs for the

Petroleum and Natural Gas Industry"

QMS for "product" – originally manufacturing oriented

Jointly managed with ISO as ISO 29001

ISO/API Separation 2012

Q1 8th Edition released December 2007

Quality impacts to industry rising● Failures of equipment

● Problems with service delivery

Increase in Nonproductive Time (NPT) exacerbated● Increasing complexity of wells

● Increasing rig costs

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Evolution of Q1 and Q2 - continued

Root causes of NPT: ● Competency/Training● Lack of procedures or adherence● Lack of robust Mechanical Integrity programs● Lack of contingency planning● Lack of history data● Lack of effective change management

Need for industry standardization

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Evolution of Q1 and Q2 - continued

SC18 TG 5 Created

Developed & balloted document in less than 9 months

Published Q2 in Dec 2011

Specification for Quality Management System

Requirements for Service Supply Organizations for the

Petroleum and Natural Gas Industries

Q1 9th Edition issued June 2013 – effective June 2014

Specification for Quality Management System

Requirements for Manufacturing Organizations for the

Petroleum and Natural Gas Industry

World Trade Center RedevelopmentUnited States of America

Program management,cost consultancy

Understanding API Q1 9th and Q2 1st

Differences from Q1 8th Edition

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New Quality ElementsQ1 9th & Q2 1st Over Q1 8th / ISO 29001

Documented competency of personnel

Risk assessment and management

Contingency planning

Supply chain controls – critical / non-critical services

Specific evaluation and selection requirements for "critical" product or service providers

Product / Service Quality Plan

Preventive Maintenance, Inspection and Test Program

Management of Change (MoC)

Bahrain World Trade CenterBahrain

Architecture, civil and structural engineering,

MEP engineering, sustainable design, construction supervision

Examples of Overlap

SEMS Requirements

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Overlap with SEMS30 CFR 250 Subpart S

SEMS/RP 75 Requirement API Q1 / Q2

(1) General (see § 250.1909) 4.1.2 Quality Policy4.1.3 Objectives4.1.4 Planning4.1.5 Communications4.2 Management Responsibility4.3.2 Human Resources6.5 Management Review5.9 Product/Service Validation6.2.2 Internal Audit6.3 Analysis of Data

(2) Safety and Environmental Information (see § 250.1910)

4.4 Documentation Requirements4.5 Control of Records6 Quality Management System Measurement, Analysis, and Improvement

(3) Hazards Analysis (see § 250.1911) 5.3 Risk Assessment and Management

(4) Management of Change (see § 250.1912)

5.3 Risk Assessment and Management5.11 Management of Change

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Overlap with SEMS30 CFR 250 Subpart S

SEMS/RP 75 Requirement API Q1 / Q2

(5) Operating Procedures (see§ 250.1913)

4.4 Documentation Requirements5.7.2 Product/Service Quality Plan

(6) Safe Work Practices and Contractor Selection (see § 250.1914)

4.3.2 Human Resources4.5 Control of Records5.6.1 Purchasing Control5.6.3 Verification of Purchased Products and Services

(7) Training (see § 250.1915) 4.3.2 Human Resources

(8) Mechanical Integrity (Assurance ofQuality and Mechanical Integrity ofCritical Equipment) (see § 250.1916)

5.6 Purchasing5.7.2 Product/Service Quality Plan5.7.6 Identification and Traceability5.7.8 Preventive Maintenance, Inspection, and Test Program5.8 Control of Testing, Measuring, Monitoring, and Detection Equipment

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Overlap with SEMS30 CFR 250 Subpart S

SEMS/RP 75 Requirement API Q1 / Q2

(9) Pre-startup Review (see§ 250.1917)

5.1.1 Requirements Review5.4.4 Design and Development Verification5.4.5 Design and Development Final Review and Approval

(10) Emergency Response and Control (see § 250.1918)

5.5 Contingency Planning

(11) Investigation of Incidents (see§ 250.1919)

5.10 Control of Nonconformities6.4.2 Corrective Action6.4.3 Preventive Action

(12) Auditing (Audit of Safety andEnvironmental Management ProgramElements) (see §§ 250.1920)

6.2.2 Internal Audit

(13) Recordkeeping (Records andDocumentation) and additionalBOEMRE requirements (see § 250.1928)

4.4 Document Control4.5 Control of Records

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Q1 8th Edition Q2 1st Edition Q1 9th Edition

Control of Documents Control of Documents Control of Documents

Control of Records Control of Records Control of Records

Internal Audit Internal Audit Internal Audit

Control of Nonconforming Product

Control of Nonconforming Product

Control of Nonconforming Product

Corrective Action Corrective Action Corrective Action

Preventive Action Preventive Action Preventive Action

6 Procedures Plus 18 More – Total 24 Plus 17 More – Total 23

Processes vs. Procedures

Required Documented Procedures

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Hurricane ProtectionUnited States

PgM/PM/CM, coastal restoration, engineering, environmental, GIS support,

cost estimating, CPM scheduling

Advantages of Integration

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Advantages of Integration

Consistency in Risk Tolerance & Appetite

Silo Minimization

Clarity on Applicability and Accountability

Reduced number of Procedures

More Consistent Procedure Application

Minimize Duplicative Infrastructures

More Efficient Governance and Administration

System Management – Process Interaction

Improved System Management

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Opportunity Realization

HSEMS QMS

QHSEMS

Solan Offshore DevelopmentPeople’s Republic of China

Structural design & assessmentsMechanical engineering

Safety Process engineering Concept design

Questions