The ATL’s Role in Todays Business Environment

Presented by: Ivor Altona

Topics

1. A Brief History (How Labs were Established)

2. The ATL’s Defined Role, PAST, PRESENT & FUTURE

3. An Inside Look (ATL’s Perspective)

4. Where are we (Customer Service & Energy Sector)?

5. How is the End User Affected?

6. The Way Forward

PERCEPTION:

‘’the way in which something is regarded, understood, or interpreted’’

or

‘’a belief or opinion, often held by many people and based on how things seem’’

‘’A PERCEPTION cannot be changed by FACTS but only by another

PERCEPTION!’’

1. A Brief History (How Labs were Established)Certification Bodies

ARP 0108SANS 10108

ARP 0108SANS 10108

LABLAB

LAB

1. A Brief History (How Labs were Established)

• Established 1974, National Calibration Services (NCS)

• In 1992 the NCS became National Laboratory Accreditation (NLA)

(The Accreditation of Testing Laboratories was included)

• In 1996 the NLA became South African National Accreditation System (SANAS)

• Was an NPO and in 2007 Legal Status changed to that of a Public Entity

• The ACT (Accreditation for Conformity Assessment) issued 16 March 2007 (Lab

Practices

1. A Brief History (How Labs were Established)

• Established 1891, ‘’Department of Mijnwezen’’ (Department of Mining)

• In 1997 Name was changed to the Department of Minerals and Energy

• In 2009 Mr Jacob Zuma Elected two new Ministers for ‘’Minister of Energy’’ and

the ‘’Minister of Mineral Resources’’

• MHSA and the OHSA refers in the Hazardous Location Regulation 10 to:

SANS 10108 and the ARP 0108

1. A Brief History (How Labs were Established)

• Responsible for the Occupational Health and Safety Act (OHSA)

• Electrical Installation Regulations 2009: 2.3.1: Specialized Electrical Installations

1. A Brief History (How Labs were Established)

ARP 0108: • Under Word Trade Organization (WTO) No Regulatory Requirements may exist in a

Standard

• From 2003 Regulatory Requirements had to be removed from Standards including

SANS 10108

• Solution: Create a Supporting Doc (ARP 0108) to the SANS 10108 to be read in

conjunction. (Created in 2005)

• DMR and DOL enforced this Document as the Mandatory Legal Certification

Requirements for Hazardous Location / Ex Equipment

• Latest: ARP 0108: 2018: ‘’Regulatory Requirements for Explosion Protected

Apparatus’’

1. A Brief History (How Labs were Established)

• SANS 10108: 2014 Ed 6: The Classification of Hazardous Locations and the Selection

of Equipment for Use in Such Locations

• Referenced in: Regulations of National Government

• Occupational Health And Safety Act, 1993, (Act No. 85 of 1993)

• Mine Health and Safety Act, 1996 (Act No. 29 of 1996)

SANS 10108:

1. A Brief History (How Labs were Established)

ARP 0108

SANS10108

OHSA

MHSA

Explosion: Impala Platinum 2009, Mponeng 1999, Ankara Turkey 2013, Venezuela

Refinery 2012, Buncefield Tank- England, Piper Alpha Oil Rig 1988

Risk

LABS

2. The ATL’s Defined Role, PAST, PRESENT & FUTURE

• PAST (Original):SANAS: R03-08: ‘’Accredited Body’’ means an organisation or facility that has been accredited by SANAS or by a

member of the recognition arrangements of the International Laboratory Accreditation Co-Operation (ILAC) or the

International Accreditation Forum (IAF; Act 19, 2006)

SANAS: PM01-08: ‘’Testing Laboratories’’: ‘’Tests performed on specified materials or products to specified test

methods’’

SANS 10108 & ARP 0108: ATL: Test laboratory that is accredited by a government-endorsed accreditation body (see foreword), and approved by the relevant regulator(s) to carry out tests specified in the appropriate standards and toissue certificates (known as IA certificates) for explosion-protected apparatus (EPA) indicating that suchapparatus complies with safety requirements and any other requirements of the relevant regulator(s)

2. The ATL’s Defined Role, PAST, PRESENT & FUTURE

• PAST (Original):SANAS: R03-08: ‘’Accredited Body’’ means an organisation or facility that has been accredited by SANAS or by a

member of the recognition arrangements of the International Laboratory Accreditation Co-Operation (ILAC) or the

International Accreditation Forum (IAF; Act 19, 2006)

SANAS: PM01-08: ‘’Testing Laboratories’’: ‘’Tests performed on specified materials or products to specified test

methods’’

SANS 10108 & ARP0108: ATL: Test laboratory that is accredited by a government-endorsed accreditation body (see foreword), and approved by the relevant regulator(s) to carry out tests specified in the appropriate standards and toissue certificates (known as IA certificates) for explosion-protected apparatus (EPA) indicating that suchapparatus complies with safety requirements and any other requirements of the relevant regulator(s)

2. The ATL’s Defined Role, PAST, PRESENT & FUTURE

Present: ATL: Test laboratory that (may or may not be) accredited by a government-endorsed accreditation body (see

foreword), and approved by the relevant regulator(s) to carry out (or not to carry out) tests specified in the appropriate standards and to issue certificates (known as IA certificates) for explosion-protected apparatus (EPA) indicating that such apparatus complies with safety requirements and any other requirements of the relevant regulator(s)

Future:

ATL: Test laboratory Any Legal Entity that (does not have to be) accredited by a government-endorsed

accreditation body (see foreword), and approved by the relevant regulator(s) to carry out ‘’or not to carry out’’

tests specified in the appropriate standards and to issue certificates (known as IA certificates) for explosion-

protected apparatus (EPA) indicating that such apparatus complies with safety requirements and any other

requirements of the relevant regulator(s)

2. The ATL’s Defined Role, PAST, PRESENT & FUTURE

2. The ATL’s Defined Role, PAST, PRESENT & FUTURE

SAFETY

3. An Inside Look (ATL’s Perspective)

3. An Inside Look (ATL’s Perspective)

Local VS International

Certification

Process

Certification

Process

Product Submitted

Product and Documentati

on Review

Customer Consultation

Test Plans

Actual Testing(Drawing

Evaluation to Standard,

Type Test or, Dimensionals,

IP, Conditioning

etc.)

Report Writing

Test Results Interpretation / Evaluation

Final Documentati

on Review

Certificate Issued

2 x Electricians

4 x IP Tanks

200M2

Training Facility

6 x Engineers

4 Ovens

1000m2

Facility3 x

Falmeproof Testing Stations

3 x IS Test Labs

8 x Administrators

300 + Clients

10 ton Crane

3 x Fridges

4 x Inspectors

2 x Batch Stations

Gas testing

Lab

Certification

Process

Product Submitted

Product and Documen-

tation Review

Customer Consultation

Test Plans

Actual Testing(Drawing

Evaluation to Standard,

Type Test or, Dimensionals,

IP, Conditioning

etc)

Report Writing

Test Results Interpretation / Evaluation

Final Documentati

on ReviewCertificate

Issued

3. An Inside Look (ATL’s Perspective)

• Regulators (No Supplementary’s / Revisions)

• Certification Bodies (SANAS Accreditation)

• Fraudulent Certificates

• ATL’s Splitting up and or Closing down ?

• Certification without Accreditation or Regulator Approval

• Lack of Expertise (Watered down Testing by ATL’s)

• Perception of Client (Safety or Grudge Cost?)

• Product Suppliers Inflating Certification costs to End User (Type Costs vs MARK Scheme or Batching)

• Pricing (CPI (PPI) not relevant). ATL’s Incur major costs Yearly.

3. An Inside Look (ATL’s Perspective)

ATL?Industry?

3. An Inside Look (ATL’s Perspective)

ATL? Industry?

3. An Inside Look (ATL’s Perspective)

Industry?ATL?

4. Where are we?

4. Where are we?

Households and Individuals Government

Businesses

Excess of

R800 billion

Is there Money?

4. Where are we?

Industries / Customer Expectations…???

Customer expectations are any set of behaviors or actions that individuals anticipate when interacting with a company

PAST: Fair Pricing and Quality Service

NOW: Pro Active Service, Personalized Interactions, Connected Experience Across Channels

4. Where are we?

What does the stats say?

4. Where are we?

What does the stats say?

4. Where are we?

The Energy Sector?

Energy Sector Consists off:• Coal, Crude Oil, Gas, Nuclear and Renewables and Waste

Supply of SA Energy (Transformation Process)• Coal to Electricity• Crude Oil to Liquid Fuels• Coal to Liquid Fuels• Natural Gas to Liquid Fuels

4. Where are we?

The Energy Sector?

Crude Oil and Petroleum• SA Imports more than 90% of Crude Oil form Saudi Arabia, Nigeria

and Angola

• SA Fuel Production Requirements Breakdown• 5% from Gas (GTL)• 39% from Coal (CTL)• 56% from Crude Oil (DOE)

4. Where are we?

The Energy Sector?

Majority of Petroleum Products are Refined in SA

4. Where are we?

The Energy Sector?

Crude Oil

• 16% of Energy Supply• All Crude Oil used (Local and Imported) for

Transformation for Liquid Fuels Production (Petroleum)

• > 5 million tons Imported

4. Where are we?

The Energy Sector?

Petroleum

4. Where are we?

The Energy Sector?

Natural gas• 3% of Energy Supply• SA has Limited proved Reserves (27 million cubic metres)• US Energy Information Administration (EIA) Estimates 390 trillion cubic

feet of recoverable shale gas in Karoo, 8th in the world• Lack of Regulations for Responsible Exploration• Domestic Production vs Imports

4. Where are we?

The Energy Sector?

Coal• 59% of Energy Supply (Eskom)• SA 5th largest Recoverable Coal Reserves (66.7 billion tons)• Most widely used Primary Fuel (40% of Worlds Electricity Production)• 51% Underground, balance Low Seam• 11 Mines accounting for 70% of Output• ESKOM ranked number 1 as a Steam Coal user and 11th as an Electricity

Generator• SASOL largest Coal-to-Chemicals producer in the World

4. Where are we?

The Energy Sector?

Renewables & Waste• 20% of Energy Supply• SA is 12th most Attractive Country for Investment in Renewable Energy• Renewable Energy Independent Power Producers Procurement Programme

(REIPPPP)• Attracted Investment of R201.8 billion, of which R48.8 billion (24%) is

foreign investment (IPPPP An Overview, 2017).• SA Government estimates 5 million jobs by 2020 (Green Economy, 1 of 12 job

drivers) • Renewable Energy Independent Power Producers Procurement Programme

(REIPPPP) 2003, Future power Generation, Eskom 70% and IPP’s 30% by 2030

4. Where are we?

The Energy Sector?

Nuclear• 2% of Energy Supply• SA one of Top Countries with uranium Reserves (5.2% of Global Reserves)• Koeberg Only Nuclear Power Station

• Owned By Eskom• All Uranium used are Produced Locally

• The South African Nuclear Energy Corporation (Necsa) is a state-owned company responsible for undertaking and promoting research and development in the field of nuclear energy and radiation sciences based in Phelindaba

4. Where are we?

The Energy Sector?

Energy Demand

4. Where are we?

The Energy Sector?

Energy Demand - Industrial Sector – Consumed Source of Energy %

4. Where are we?

The Energy Sector?

Energy Demand – Industrial Sub Sectors – Consumed Source of Energy %

4. Where are we?

The Energy Sector?

• Mining: 60% Electricity, 38% Petroleum• Iron & Steel: 36% Electricity, 30% Gas, 34% Coal• Chemical & Petrochemical: 26% Electricity, 35% Gas, 39% Coal• Non - Ferrous Metals: 81% Electricity, 3% Gas, 16% Coal• Non - Metallic Minerals: 12% Electricity, 24% Gas, 64% Coal

4. Where are we?

The Energy Sector?

Energy Demand – Transport Sector

4. Where are we?

The Energy Sector?

Energy Demand – Residential Sector

4. Where are we?

The Energy Sector?

If SA would lose the Energy Sector?

• Approximately 37% of GDP• Approximately 3 million Jobs• Approximately 37% of Gross Investment• Over 60% of Merchandise Exports• Approximately 60% of Capital Inflows into the Economy via the Financial Account of the Balance of

Payments• About 60% of the Countries liquid Fuel Supply• Approximately 70% of of the Market Capitalization of the JSE• Approximately 40% of Direct Corporate Tax Receipts• Largest Contribution by Value to Black Economic Empowerment

5. How is the End User Affected ?

• DMR Inspectors (Section 54’s)

• Inferior Products are being used

• Possible Accidents & Fatalities

• No Advancement

• ATL’s Seize to Exist

• Decrease in Product Sales

• Repairs instead of New Products

• SA Economy Collapse

Inadequate Certification and Non - Compliance…

6. The Way Forward

6. The Way Forward

• We are being Regulated (Law)• Hazardous Locations is a Reality and will Remain• ATL’s protect the Industry• Opportunities• There is Money in Businesses• Customer Service is Key• Energy Production and Usage (Economy)• Ice Cream Truck Certification• Industry Support ATL’s?• New Perception

The Role of an ATL Today….?