03/02/2006, 07/26/2010, and 05/19/2015. To the average person, these dates mean birthdays, anniversaries, birth and deaths. But to the petroleum industry, these are considered some of the costliest failures of quality management in recent petroleum history.
Prudhoe Bay, Alaska (March 2, 2006): Because of lack of maintenance, cracks in a pipeline spilled 843,000 gallons of petroleum, devastated pristine landscapes, killed wildlife and made people sick. Final cost: $500 million. Kalamazoo River, Michigan (July 26, 2010): Lack of maintenance caused a pipeline rupture that spilled 267,000 gallons of petroleum spilled into the Kalamazoo River. Final cost: $800 million Refugio, California (May 19, 2015): The decision not to install a simple shutoff valve caused the decimation of local wildlife, contaminated beaches and will continue to affect ocean life for many years to come. Final cost: Yet to be determined As you know, there are many other incidents within the industry where the question of adequate detection and mitigation could have reduced the impact of the incident. In fact, at a very basic level and according to the API Spec Q2 standard, your risk assessment and management should “control risk throughout the execution of a service.” In order to maintain compliance, your procedure should:
In short, managing risk requires proactive and preventive measures to protect your organization’s and customer’s interests. Detection and mitigation of risk potential should be at the core of your total risk assessment strategy. For more information on how Accupoint’s solutions can help you manage your risk assessment process, visit www.accupointsoftware.com or call us at 800.563.6250. As a professional within the oil and gas industries, your ultimate goal is to provide safe, reliable, and high-quality products and services to your customers. As you strive to consistently achieve this goal, you already know you need to control risk throughout your processes. You are a competitive leader within your industry, so you also know the value of quality standards and compliance. So what procedure does the API Spec Q2 standard mandate in order to achieve compliance?
According to the standard, “the organization shall maintain a documented procedure to control risk throughout the execution of service.” There’s four main components that your procedure should include, so as you develop your procedure, you’ll want to: 1. Identify potential or real risks associated with your company’s services 2. Recognize and use risk management tools and techniques 3. Choose, communicate, and implement preventive control measures to reduce and/or avoid risk exposure 4. Have a plan to alert your customer of any remaining risk (potential or real) that could impact your service to them Lastly, you’ll want to ensure you keep records of your assessment and any associated actions taken as a result of your process. Risk assessment is an active means of facing and dealing with quality-related challenges and doesn’t need to be complicated. It’s been said that great success requires great risks, but that doesn’t mean sacrificing safety, quality or service. For more information on how Accupoint’s solutions can help you develop your risk assessment and management procedures, visit www.accupointsoftware.com or call us at (800) 563-6250. |
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