How well do you know your supply chain? A supply chain is only strong as its weakest link. When it comes to controlling your suppliers, the better you are at understanding the entire chain and identifying weak links, the better your company will be in the long run.
The recently released API Spec Q1 9th Edition – Addendum 2 focuses on supply chain controls, specifically relating to multi-tier suppliers. As you are aware, Q1 has always required us to manage our supply chain. However, the revised requirements expand the controls to include associated (tier 2 & 3 level) suppliers that are essential for product realization.
To that end, in today’s post we will focus on a couple of tips to improve the effectiveness of your supply chain controls.
An efficient supply chain control program enables your company to reduce costs, minimize risk and satisfy customer expectations. For more information on how Accupoint Software can help your organization to improve your supply chain control program, please contact us today.
The benefits of a corrective action program are immeasurable, and in the oil and gas industry, these programs are an integral part of any quality management system. An effective corrective action system works to identify the root cause of an issue, generates action plans to reduce or eliminate the chance of recurrence, and provides for evaluation of solution effectiveness.
That being said, some companies struggle with implementing an effective corrective action management program. Below are some of the key elements of a successful corrective action program.
1. Have the right people leading your corrective action program.
Put together a team to evaluate potential members for the program. Make sure that the people chosen understand the issue in question. Team members must have first-hand knowledge of the process being assessed.
2. Evaluation of Issue
The corrective action team should collect data on similar issues that have occurred in the past. Subsequently this information needs to be analyzed and evaluated to determine applicable root causes.
3. Develop Corrective Action Plan
The corrective action plan should identify the root cause of the issue, containment actions as well as specific action taken long term to reduce or eliminate the chance for a recurrence. Finally, ensure that the corrective and preventive action plan is properly communicated with applicable personnel within the organization.
4. Create Compliance
Once the corrective action has been implemented, utilize the evaluation results to drive your corrective action impact. The impact analysis will create benchmarks and pinpoint opportunities for process improvements.
Effectively managing your corrective action program is critical to your success. To find out how Accupoint can help improve the effectiveness of your corrective action program, please contact us today.
The Cost of Quality, sometimes referred to as COQ, is a measurement that sums up the costs related to the prevention and subsequent detection of defects, and the costs associated with these defects. The COQ defines the total costs of quality activities. This is money spent beyond the basic production costs to ensure that the customer receives a quality product. Let's take a look at how COQ is calculated.
The COQ includes the money spent on prevention, appraisal, and correction in a production environment. COQ can be expressed as the effort in terms of time, but it is probably best served as a calculation involving money.
The calculation itself is not complicated, and it is the addition of two compound values (which makes this the most straightforward approach to COQ):
The Cost of Control and Cost of Failure of Control each require a calculation based on their components.
Cost of Control
The Cost of Control can be defined as follows:
The Prevention Cost is the amount of money spent to prevent defects incurred during the manufacturing process. All Quality Assurance programs and efforts are included in this number, including any preventive measures taken.
The Appraisal Cost is the cost associated with all efforts focused on the detection of defects. The cost associated with Quality Control efforts are included here, including final testing and other forms of quality control.
Cost of Failure of Control
The Cost of Failure of Control is sometimes known as the Cost of Non-Conformance. This is the total cost of failure within the manufacturing process. It is broken up into Internal Failures and External Failures.
Internal Failure Cost is the direct cost associated with internally recognized defects and the costs associated with correcting them. For example, this would be the expense of fixing the discovered defects and retesting them, also known as Cost of Rework.
External Failure Cost is the cost associated with defects discovered by the customer and their correction. This Cost of Rework for external failures can include such items as product service, liability issues, and recalls.
Getting the COQ to a minimum requires careful balancing between the Cost of Control and the Cost of Failure of Control. The prevailing thought is that an increased Cost of Control will keep the Cost of Failure of Control to a minimum.
However, in most practical applications an increased Cost of Control can rapidly approach a diminishing return on investment when it is raised beyond a certain degree of effectiveness. The key is to keep the costs balanced as needed.
Quality has a price that can be calculated and studied. But the importance of maintaining the business image has many returns in repeat business and word of mouth.
For more information on how Accupoint can help your organization monitor and reduce your COQ, please contact us today.
Building situational awareness in oil and gas operations has always been vitally important. Without a strong foundation of situational awareness, there can be severe consequences. In fact, 88% of human error can be traced to a lack with situational awareness. Not just that, situational awareness can negatively affect oilfield operations and the ability to project future events.
Many offshore installations have the capacity to be hazardous and despite numerous rules and regulations in place to ensure that the risk of accident is kept to a minimum; accidents still occur. Having good situational awareness contributes towards the reduction of accidents. Situational awareness, or SA for short, is vital for when work being carried out is hazardous, or has the potential to be hazardous, as the workers must constantly monitor and evaluate conditions in an attempt to reduce accidents.
In a nut-shell, situation awareness can support decision making and aid performance. In fact, situation awareness is key to good decision making and safe, efficient performance.
Although situation awareness seems relatively easy to comprehend, some people struggle with it. Specifically, 78% of people don’t get the information that is needed. 17% of people do not correctly understand the information they receive and 5% of people don’t project what will happen in future.
Situation awareness is important for many factors and is the responsibility of the entire crew. Between us, we can reduce the risk of accidents and ensure a safe working environment for everyone in the gas and oil industry.
For more information on how Accupoint Software can help improve your situational awareness, please contact us today.
Quality management for service supply organizations in the petroleum industry is ever-changing due to increasing demands from customers to adopt new standards and avoid future catastrophes. The API Spec Q2 standard outlines a risk-based quality management system as compared to a processed-based management system. API Spec Q2 is now fully implemented and accepting applications for certification from organizations around the world. This certification is rapidly becoming a requirement for many service supply organizations and will expand to become a global mandate in the near future.
Applicants must have procedures in place to address dozens of key QMS elements. These pertain to risk assessment, contingency planning, management of change, service-related product, process design, supply chain controls, and service quality planning. Other requirements involve preventive maintenance, inspection and test and the competency of personnel. According to John Modine, API’s vice president of Global Industry Services, “Any drilling service provider who is in compliance with the requirements can now receive API Spec Q2 certification.”
SAM API Q2 Solution
Accupoint’s web-based solution is an easy-to-use API Spec Q2 management system designed to ensure that compliance requirements are managed and monitored consistently. Using the latest technology and industry best practices, SAM™ streamlines the process and ensures an easy integration into this new standard. In addition, the solution is accessible from any web enabled device and connects multiple locations with real-time communications and up-to-date records and information.
The SAM™ platform simplifies management of the requirements of API Spec Q2 standard, allowing for easy integration and compliance. It addresses all the key required components including;
Obtaining API Q2 certification is just the first step. Ensuring your quality management system stays compliant is the next. With 43 integrated modules and 85 built-in reports, administration and surveillance of the API Spec Q2 requirements is ensured. Contact us for any additional questions you may have on how to implement and maintain an API Spec Q2 quality Management program.