With the changing landscape of the oil and gas industry, companies are under increasing pressure to improve operational efficiencies as prices continue to remain low and margins are narrowed. In order to reduce costs and improve efficiency, many organizations are adopting a structured quality management system (QMS).
Health & Safety
Due to the hazardous environment that many oil and gas companies operate in, the federal government along with the International Organization for Standardization developed a standard for Process Safety Management procedures and protocols. While this addresses the procedures to prevent major chemical accidents and occupational safety hazards, it is limited in encompassing the operational aspects of the industry.
The goal, is to develop an oil and gas compliance solution that includes industry best practices for all systems such as service quality, risk assessment, employee training, document control, corrective actions and preventive maintenance. A comprehensive solution may seem difficult for our complex industry; however, incorporating common standards of practice is essential to realizing integrated operational excellence.
Clients and Stakeholders
Both clients and stakeholders, are becoming increasingly demanding regarding the standardization and regulations that those companies they do business with must comply with. As an example, many customers are now requiring that their service supply organizations comply with the API Spec Q2 requirement. Using a system designed specifically for this standard streamlines the administration and reporting of said requirements.
A quality management system increases efficiency and collaboration. It ensures compliance and provides metrics reporting to prove such compliance. It defines strategies, goals and best practices and the means to secure them. A good quality management system is, however, only as good as the team behind it. Ensure that policies and procedures are in place that clearly communicate expectations and requirements.
The Bottom Line
Planning and control of critical tasks is required to minimize risks and improve operational efficiency. A comprehensive management solution can connect multiple locations with secure, real-time communications, thus providing instantaneous performance feedback. Furthermore, deployment of an effective quality management system tells your customers that you are at the top of your class and aiming for the best in products and services, ultimately ensuring customer loyalty through operational efficiency
For more information on how Accupoint Software can help you implement a quality management system specific to your needs, please contact us today.
Service supply organizations are always seeking to optimize, by improving customer relationships for greater revenue and cost reductions. The constant demands, adjustments and upkeep of customers requires a more formalized way to compare and service them. That is why customer benchmarking is so key. In today’s post, we will examine a few factors that demonstrate the power and influence of customer benchmarking.
First, customer benchmarking demonstrates the costs and services that each customer is accumulating. It logs every customer interaction and the services provided to them, whether it is in the initial contract or not. This helps to determine the total cost for delivering your product or service to the customer.
Second, customer benchmarking helps to determine the true price of your product or service. A comprehensive software solution can isolate the amount of product and the price that is actually received from the customer. This helps to clarify the true value of the customer when compared to the cost of services.
Finally, you use benchmarking tools to determine the satisfaction and feedback of the customer. The tool automatically sends a survey to key stakeholders at the client company. The survey results are tabulated and provide feedback to provide continual improvement efforts. The data helps managers at your company understand how the customer truly feels about your performance. It also compares the feedback across all the customers to get a true sense of the most loyal and the least loyal accounts.
Accupoint’s solution family has helped many firms benchmark customers, improve satisfaction and meet compliance standards, leading to greater revenue and less costs. For more information about how Accupoint Software can help streamline the management of your customer benchmarking program, please contact us today.
Securing materials and equipment is the first step in the supply chain. A company's competitiveness is directly influenced by the performance of suppliers. A supplier that does not perform well can add costs, cause serious delays and can damage your company's reputation. It is imperative to have a system to evaluate your suppliers. It will help you determine potential problems like low standards of quality, poor communication, and substandard resources. Every company needs to have a supplier evaluation model in place to measure a supplier's ability to comply with their contractual obligations.
Supplier evaluation will identify their strengths and weaknesses. Several criteria should be considered including quality, delivery, service, and flexibility. Generally, the most important factor is quality followed by delivery, service and then flexibility. An effective means of evaluating suppliers is assigning them to one of four categories based on performance: full partner, associate partner, high risk and incapable. A full partner meets or exceeds all expectations. An associate partner needs some work, but performs well overall. A high risk supplier must be carefully evaluated. They can be used for the production currently underway, but future contracts require consideration. An incapable supplier will be dropped as soon as possible as they cannot properly fulfill their obligations.
A full partner must be compatible with you company’s current and future business plan. They will always demonstrate high quality, on-time delivery, superior service and flexibility. The supplier participates in your automatic ordering system. They will provide full support quickly, and be available anytime for questions. A full partner should also assist with new designs and provide samples within one to two weeks. They will demonstrate an ability to develop new processes and be committed to research and development. They will not ship out-of-spec parts, and have well documented quality controls. They will optimize lead times and allow order flexibility within reason. They will show commitment to cost reductions and share their cost structures and pricing models.
An associate partner will meet most of the criteria of a full partner. The associate partner should demonstrate a commitment to improving quality and delivery. You can work with them to develop action plans to meet your goals. The supplier must fulfill the needs of your company. They should be willing to work toward meeting the criteria to become a full partner.
High Risk Partner
A high risk partner is not compatible with the goals of your company. Their current quality and delivery are acceptable to maintain current production, but there is no benefit in expending the resources to bring them to associate or full partner status. The cost and quality are below your company’s acceptable standards.
Incapable suppliers do not meet quality standards. They do not demonstrate the capability of improving quality, delivery, service or flexibility. These suppliers must be dropped immediately.
Evaluating the performance of suppliers using an Analytical Hierarchy Process (AHP) model helps to determine the importance of each criterion and interpret the findings. You will determine what is most important for your company, and use that to rate your suppliers. Supplier can be measured based on the four main criteria: quality, delivery, service and flexibility. To determine the rest of the criterion you should consider whether the attributes are “soft” criteria (like supplier commitment or service) or “hard” quantifiable criteria (like the supplier's ability to fulfill orders). When thinking about cost, consider that the total cost of a product includes all the factors that go into getting your product to market in addition to its initial procurement cost.
For further information on how Accupoint can help your critical supplier management process, contact us today.
The petroleum industry requires dangerous work. Protecting personnel from injury requires rigorous monitoring and training protocols and scrupulous attention to reporting, prevention and data analysis when an accident occurs. Here are three fundamental concepts to keep in mind when designing an effective injury management program:
1) Know your hazards. Most injuries in the petroleum industry fall into one of two large categories: safety-related injuries and health-related injuries.
Safety-related injuries include those related to:
Health-related hazards include:
Be aware of where each of these may appear in your site or team workflows and make sure preventive and responsive protocols are in place to deal with each.
2) Manage your risks. A robust risk management program has the following 7 steps:
3) Design a program that works. Effective injury management programs must satisfy the following requirements:
If you adhere to the guidelines above when designing and refining your injury management program, you will be able to anticipate problems more effectively and resolve them more efficiently. For more information on how Accupoint’s web-based solution can help you improve your injury management program, please contact us today.