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.

• Understand the big picture. Gather performance data on each supplier in the chain and update it constantly.  If your data only includes some vendors or incomplete performance data, the picture of your supply chain is as incomplete as a jigsaw puzzle missing half the pieces. Without concrete data, you may have an idea of potential snags but ultimately you are guessing.  As a result, you're not able to make the best decisions on how to resolve issues that could impact operations.

 

• Use integrated technology to manage your supply chain.  Technology enables more efficient and effective data collection and analysis, giving you increased response time to head off potential problems.  In addition, by using integrated technology you can improve communications with relevant stakeholders resulting in minimized disruptions to production.
  

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.

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 increase efficiency, many service supply organizations are implementing API Spec Q2.

Accupoint’s SAM™ solution ensures compliance and the correct documentation to meet the API Q2 requirements. It defines strategies, goals and best practices and the means to secure them. Our system provides industry best practices for all components including: service quality, risk assessment, employee training, document control, MOC, corrective actions and preventive maintenance. A comprehensive solution may seem difficult for an industry with such vast core areas to cover; however, incorporating common standards of practice is essential to realizing integrated process management and operational excellence simultaneously.

The bottom line: API Spec Q2 tells your customers that you are at the top of your class and aiming for the best in quality and delivery of services, ultimately ensuring customer loyalty, operational efficiency and growth.

Please contact us today for more information on our family of quality management systems specific to the petroleum industry.

During the stages of conception, designing, building, operating, and decommissioning in the petroleum industry, a quantitative risk analysis is a primary tool used to analyze the safety and risk management in an effort to control hazards and operate safely. The quantitative risk analysis can identify potential hazards, determine the likelihood of them occurring, and the consequences of the hazard should it arise.
 
Why Quantify Risk?
Your company needs to be reliable and safe in the competitive petroleum industry. The potential harm to employees, the environment, assets, reputation and the local community should be priority number one. 

How Do You Quantify Risk?
In most scenarios, the use of a HAZID can be applied. A HAZID can help identify the potential risks during installation or operation of your company's work. Often, a hazard can become a series of hazards as they break down into a plethora of hazards, also known as an event tree. That is, when one operation breaks down, the HAZID can pinpoint the likelihood of the consequential events that may happen. Not only can the HAZID determine what might happen next, the HAZID can also quantify the probability of the events to follow.

Planning for the Future
With the risk analysis tools in place, your company can easily plan for the future by identifying your risks and quantifying the likelihood of their occurrence. With proper risk management, your company can avoid unnecessary costs, downtime, and injury to workers. 

For more information on how Accupoint’s solutions can help you manage your risk assessment process, please contact us today. 

Managing critical suppliers allows you to evaluate your most important sources of products and services. Depending on the size of your company and number of suppliers, you will use either a standard classification or a more complex system. The first step is to classify all of your suppliers based on their weight in your production process. You can place suppliers in one of four categories based on their performance and role. These categories include:

• Incapable Partner: This category may also be referred to as a Basic Partner. They do not meet quality standards. Their information sharing is limited. Their products or services are needed, but you should strongly consider dropping the contract at the end of its term.
• High Risk Partner:  Your relationship to this partner may impact operational efficiency. There is limited benefit in extending your contract with this supplier. The cost and quality are below ideal.
• Associate Partner: Also known as a Preferred Supplier. They demonstrate a commitment to improvement, openly share information and have valued expertise. They should be willing to work toward becoming a full or critical supplier.
• Full Partner: These partners can also be referred to as Strategic Suppliers. They are your most critical suppliers. Your partnership will offer a unique advantage. They will be willing to assist with market changes and demands. You will have direct communication. They will always demonstrate high quality, on-time delivery, superior service and flexibility. They will have well documented controls. They will provide full support quickly, and are available anytime for questions.

Evaluation of suppliers should be conducted on a yearly basis, at a minimum. You should thoroughly document evaluation criteria including:  Price, Performance, Service, Reliability, Quality performance, Risk potential and Complaint information.

Key criteria in choosing critical suppliers relationships include:

• Specifications, standards and supplier response
• Volumes and pricing
• Change control
• Innovation potential
• Production part approval
• Traceability
• Competency
• Supplier process monitoring and self-audit
• Non-conformance management

The weight of each criterion may vary depending on the product or service. For example, is it more important for the supplier to provide high quality or low price? Is innovation potential more important than process monitoring? Points should be given for each criterion. Once this process in complete you will have a clear overview of your production chain and suppliers.  You can then share your evaluation with the suppliers and identify areas where improvements can be made. In addition, the results can be used  to strengthen the most important relationships.

An effective supplier relationship management system,  will provide digital documentation of all  suppliers, data, documentation and evaluations in one place. This is especially useful when working with a large number of suppliers. The system should be standardized and allow for easy  access and evaluation.

Critical suppliers are the most important piece of the supply chain. You rely on them for the most crucial parts and services. You must maintain a strong relationship with these suppliers and maintain open communication. In today’s global marketplace competitors can spring up at a moment's notice, challenging product quality and prices. You likely buy components, ingredients and services from all over the world to source quality at the best price. Control of your supply chain allows you to protect your business. Clear documentation, scheduled re-evaluation and the support of managers are necessary for successful supplier management, which will give you a tangible competitive advantage.

For more information on how Accupoint can help you with critical supplier management, contact us today.

The Department of Labor states that on-the-job fatality rates are seven times higher for oil and gas extraction workers than all other industries. The only solution to this serious problem is proactive compliance with a comprehensive safety and health management program. Continual risk identification, analysis and policy enforcement are the keys to keeping workers safe and avoiding operational downtime.

Risk Assessments
Hazards in oil and gas industry are divided between safety and injury dangers and health and illness hazards. Front-line supervisors should work with safety managers to conduct risk assessments that are founded on historical experience, analytical methods and field knowledge and judgement. A risk assessment will ask three basic questions for each possible event: what can go wrong, how likely will it occur and what are the impacts. Both qualitative and quantitative answers offer unique value. Safety planning and risk assessments require that everyone involved understands the objectives, the methods, the resources required and how the results will be applied.

Standard Evaluation Methods
A risk assessment generally involves four basic steps: hazard identification, frequency projection, consequence assessment and risk evaluation. Hazard identification methods include literature research, safety audits, periodic walk-throughs and what-if brainstorming. Popular tools include FMEA, HAZOP and HAZID. Frequency assessment methods include fault tree, event tree, human reliability and common cause failure analysis tools. Consequence assessment methods include source term, aquatic transport, atmospheric dispersion and blast and thermal radiation models. Popular evaluation methods include risk profiles, indexes, matrixes and density curves.

The Hazard Identification (HAZID) Technique
HAZID is a safety tool to describe activities that identify risks and associated events. Offshore petroleum facilities often use HAZIDs to identify potential hazards to personnel, such as injuries and illness, to the environment, such as spills and pollution, and operational issues, such as delays and production losses.  Offshore petroleum leaders often use the HAZID technique to analyze operational procedures on vessels and machinery. A HAZID planning session will involve an interdisciplinary team that includes those who have experience with facility design, such as engineering, and facility operation, such as veteran employees. Together, they will use checklists to methodically brainstorm and identify potential hazards associated with each part of the system.

A what-if analysis uses subjective questioning to ponder potential performance problems and their consequences. For example, if an intake air filter is blocked, this will reduce the air flow through the compressor, which will consume more energy and lead to functional inefficiencies. The solution is through monthly inspections and scheduled filter replacements. Contact us today to learn how Accupoint can streamline your safety, compliance and risk assessments processes.