Your company's ability to promptly respond to your customers' needs hinges in great part upon your suppliers' efficiency. While price should always be a key consideration when evaluating suppliers, there are other factors that also should be considered. Below are five supplier evaluation best practices to help ensure that you select a capable, top-notch supplier.

1) Assess the supplier's resources and scalability. A supplier should have the manpower, tools, and facilities to support your company's continued growth. Additionally, the suppliers you choose should be able to handle large orders or requests without significant delays.

2) Visit the supplier's operations. A live visit to a supplier's headquarters can be an eye-opening experience. Ideally, you should choose suppliers with clean, well-illuminated, organized facilities. Equipment should be well maintained and employees should demonstrate keen attention to safety protocol. 

3) Ask suppliers to outline their quality control procedures. Quality control procedures are vital to ensuring that products undergo a thorough inspection prior to dispatch. A good way to assess a supplier's commitment to quality control procedures is to find out if the supplier conducts internal audits on a regular basis.

4) Request references. A robust collection of glowing references from legitimate clients is a great indicator of a supplier's ability to meet your needs. Make sure that you contact each reference provided and ask whether the supplier was able to deliver products in accordance with cited promise dates.

5) Verify the supplier's certifications and accreditations. Industry certifications indicate that a supplier demonstrates a commitment to continued quality improvement and consistency in operations. Ideally, suppliers should possess ISO 9001 certification and Accredited Company Training Schemes (ACTS).

We invite you to contact us to learn more about our supply chain management solutions. We can help you separate the most accomplished suppliers from those that may not have the resources to promptly respond to your needs. We look forward to helping you expand your supplier network!

In today's world of data that shifts more quickly than any one person can keep track of, document control is a pre-eminent concern. Oilfields need to keep track of equipment inventories, data on personnel, and all information related to operations over various spans of time. Losing track of this information can range from problematic to catastrophic, but potentially even worse is a situation where multiple versions of the same data exist without the ability to easily tell which is most recent, or most relevant to the situation at hand.

Thus, a well-run oilfield needs a control of documents program to help keep everything in line. With proper document control, companies don't need excess worker-hours to keep all their paperwork in order. Is there an endless string of spreadsheets due to constant updating? The most recent one is always available, with clearly dated backups available as well. Are documents with necessary information shifting and changing as they pass through the hands of people who keep including further data? You always know which one is the latest, and who has had a chance to alter it as well. Relevant personnel files getting juggled as workers move on and off the field to start or finish their work periods? You'll always know who's coming in and leaving with a strong system of automated document control, eliminating the human errors in small matters that are so easy to make but so troublesome when they happen.

If you need better document control at your oilfields, contact us for more information.

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.

Primary Objective
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.

Increased Collaboration
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.

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.

It has come to our attention that a large number of people in the oil and gas industry are struggling with the topic of management of change (MOC). Although the details of implementation will be very different for different situations, great MOC programs are developed from the same basic foundation.

The first fundamental aspect of MOC is the actual change request. What change needs to be made? What are the individual specs for the materials needed? What plans and documents need to be included in the change request to fully communicate what is needed? If you can’t clearly communicate what it is that needs to be changed, then the change can’t be implemented properly.

The next aspect of MOC that needs addressed is the reward of the change. Why am I even making this change? Each change should be fully connected to satisfying a business objective. Again, specificity is important in addressing these concerns. The reward needs to clearly satisfy a business goal. If it does not, why even bother taking the risk?

Possibly the most important foundation of the MOC program is the evaluation team. The MOC evaluation team is responsible for the objective evaluation of the requests. Members should represent different areas of expertise throughout the organization, with different experiences under their belt. There shouldn’t be any aspect of a request that the team can’t properly address and evaluate. Team members should be respected among their peers, and confident enough to speak up when they have concerns. If these criteria are used, your organization will select a MOC evaluation team that can handle any challenge put in front of them.

Risk Analysis
The API Spec Q2 requirements take a risk-based approach to quality management. When making changes, risks must be identified and measured by level of acceptability. Risks that are deemed unacceptable must be paired with mitigation plans. These plans are then designated to be carried out before, during, or after the implementation process. The purpose of the mitigation plans is to help bring the risk down to an acceptable level.

The next area we will address deals with the approval aspect of MOC. Many organizations get into trouble in this area, confusing the need for approval with the need to inform. It’s important to note that every change doesn’t have to have the same approver. A great MOC program should have an approval matrix describing who needs to approve which type of decisions, as well as a list of people who “must be informed”. If your organization gets these steps right, the approval process will be quick and painless.

This leads us to the communication section nicely. As stated before, there are those who need to “approve” and those who “must be informed”. We need to track our communication efforts with respect to the MOC. In other words, any message and corresponding response must be documented. The person responsible for sending the message is also responsible for getting a confirmation from the recipient. This means after the change is communicated, a receipt confirmation should be requested. Also, it is important to make it clear to your organization that an email response should be expected from the recipient. Simply flagging it as “Request a Read Receipt” isn’t going to get the job done. Once the recipient has responded, stating that they have received the message and understand the information, then the responsibility shifts to them to carry out the appropriate action.

Implementation of the change
First, we will want to execute any per-implementation changes and corresponding mitigation efforts that were identified. Subsequent to the implementation we will want to perform any post-implementation tasks that are required. Example would include updating procedures or modifying training materials to address the change.

Next, we need to confirm the effectiveness of the change. Once the change has been implemented it is important to make sure that the change does what it was intended to do. Sometimes organizations experience undesirable results. When this happens, we must determine if the system should be restored to the old model, or develop a new MOC to address the unintended results.

Finally, we need to follow-up and confirm the success of our mitigation efforts. This ensures that the new system will not produce any unseen difficulties for the organization. Also, we need to verify that the change is going to leave the system running smoothly and safely. Once all of these steps have been completed in their entirety, then the change can be closed.

After closure, we still have one final but critical step remaining. We must perform surveillance audits to confirm the changes were carried out consistently and the system is being used as intended. Comprehensive process audits are a great way to determine implementation results. Randomly selecting a few processes related to the change and auditing them is a good way to achieve this. It is important to remember that audits should be performed at periodic intervals. The frequency of audits depends on several factors, but should be scheduled in a manner that guarantees the sustainability of the change.
 
To learn more about how Accupoint Software can assist with your Mangement of Change process, please vist our website or schedule a platform demo 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.

Full Partner
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. 

Associate Partner
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 Partner
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.

Process excellence and quality management systems have the power to transform entire organizations into lean, highly efficient cash flow machines that exceed customer expectations. While quality management systems, including API Spec Q1 or API Spec Q2, comprise different tiers and tools there are common methodologies for monitoring and improving quality within companies. Two common tools include standard operating instructions and quality auditing.

Standard Operating Instructions
Standardizing processes and systems is a critical step in quality assurance and enhancing operational efficiency. After benchmarking a process, the next step is to measure, analyze and improve it, leading to benefits for employees, customers and businesses. Writing a standard operating instruction is part of standardizing a process, so that subject matter experts along with management can analyze and improve it. These written instructions are either detailed or in an outline form, depending on the needs of employees and management.

Quality Auditing
Product, process and system audits improve the way individuals and teams function within organizations. These audits examine what the ideal process or system is relative to current state operations. This element of a quality management system is also closely tied with corrective action requests, which take a systematic approach to identifying and solving operational deficiencies. Independent audits related to efficiency and effectiveness have the power to drive quality and innovation in functional departments across organizations.

For additional information on quality management systems and the power of process excellence to improve your business, please contact us today.  System optimization can take your business to the next level, with the proper planning and professional support.

Happy Holidays!

The foundation of a profitable petroleum company is sound training management. This is best achieved through a customized training management program and continuing education for managers. Effective training management programs should cover quality assurance, workplace safety, risk assessment, and the importance of ongoing education.
 
Key Areas of Focus to Cover for Training Management 
 
Designers of training management programs for companies in the petroleum industry realize that trainers are often solely responsible for ensuring that all company employees are effectively trained in the following areas: 

• Compliance education
• Workplace safety training
• Petroleum sales techniques
• Product characteristics
• Quality assurance
• Risk assessment and management
• Finance and insurance solutions
• Customer service skills
• The need for continuing education

 
Accordingly, training management programs should be comprehensive in design to help managers achieve excellence in these areas. Managers, in turn, can use newly acquired information and skills to provide training to their staff. The end result is more competent employees and a higher level of customer satisfaction.
 
Critical Platform Design Components
 
Not all training management participants possess the same degree of experience and learning speed. Additionally, compliance training material can be dry, making it difficult to stimulate the interest of employees. Accordingly, an effective training management program should be flexible and should engage trainees. Effective platforms are typically marked by the following features:

• Easy to access. People can participate in training at any time by accessing online program materials.
• Flexible. Participants are able to receive training online using their device of choice.
• Affordable. A training management program should be cost-effective and yield a strong ROI.
• Engaging. Programs should incorporate a variety of media, such as photos, videos and interactive features.
• Easy to monitor. Program operators can track training participation and monitor progress and completion.
• Simple to update. The petroleum industry is changing every day and training management programs should be kept current.

 
The Importance of Ongoing Education for Training Managers 
 
The fields of medicine and law are notorious for emphasizing the importance of continuing education and training. Other industries, including the petroleum industry, have not kept pace in this area. This provides a significant opportunity for improvement, especially since training managers are often responsible for training senior sales staff and entry-level personnel. Participation in ongoing training will help your company gain an edge in the petroleum industry by arming your managers with the latest knowledge and tools to maximize profits. 
 
 
Choosing the Best Training Management Solution 
 
Selecting a training management solution that meets or exceeds all of the qualities outlined above can be challenging. Since 2007, Accupoint Software has been a global provider of management solutions that help companies streamline their training management and improve their efficiency.
 
Please contact us to find out how we can help you increase your company's profitability by enhancing your training management. We are delighted to provide you with a free demonstration of our innovative training management solutions and will answer any questions that you may have about our tools for success. We look forward to hearing from you!

As we continue into our evaluation of the API Spec Q2 standard, we thought we would concentrate on a topic that many organization struggle with, Customer Satisfaction Bench-marking
 
The API Spec Q2 standard requires us to monitor and work to improve our customer satisfaction.  According to the standard:

The organization shall maintain a documented procedure to monitor customer satisfaction. The procedure shall address customer feedback, key performance indicators (KPIs), and other information that the organization monitors to determine whether the organization has met customer requirements. Records of the results of customer satisfaction information shall be maintained (see 4.5).
 
Having the procedure is not the problem.  Obtaining actionable information from the customer is.  There are many ways to gauge customer satisfaction; some organizations develop in-depth questionnaires while others rely on the Net Promoter (NPS) format. 
 
Regardless of the collection method, we need to analyze the responses to develop an action plan to drive our continual improvement efforts.  Below is a Deming circle, outlining the major components:
 

1. Start with a quick gap analysis to compare the customer’s perspective with your internal SWOT analysis. This will help to highlight unknown issues.
   
2. Develop an action plan to drive improvement.   Make sure to establish specific goals with corresponding gates, to track progress.
3. Implement the plan across the organization.  Communicate specifics with applicable employees to encourage understanding and buy-in.
4. Re-evaluate customer satisfaction performance by conducting follow-up surveys at regular intervals.  Based on the results of the follow-up, revise the action plan to achieve the desired outcome.

 
For more information on how Accupoint can help you manage the Customer Satisfaction requirements of the API standards, call us toll-free at 800.563.6250 or visit us at www.accupointsoftware.com.

The API Spec Q2 standard has created some confusion regarding the implementation of certain requirements.  One frequent conundrum centers around the definition of a critical supplier, as well as the QMS requirements of said supplier.
 
The standard defines critical, in 3.1.6, as follows: That deemed by the organization or customer as indispensable or essential, needed for a stated purpose or task, and requiring specific action.
 
Let’s start with a simple definition of a critical supplier. The term “critical” and the criteria used in the designation should be determined by your organization and/or customer.  That being said, if a supplier is integral to the process or you cannot survive without them that would be a pretty good indicator that the supplier is “critical.” Keep in mind that “critical” can be defined in a variety of ways, so development of internal criteria is essential.
 
Next, let’s look at how to verify that your critical suppliers’ QMS conforms to your internal requirements. You may require your suppliers to have a third party certification in order to be approved.   In this case, you can outline the standard(s) required to satisfy your conditions. If you do not require certification, you should develop an audit checklist to verify that their QMS meets expectations.
 
The API Q2 standard requires the following, in section 5.6.1 Purchasing Control:
For critical services or service-related product, the criteria for the initial evaluation and selection of suppliers by the organization shall include the following prior to initiation of the purchase agreement:

1. Assessment of the supplier at supplier’s facility to meet the organization’s purchasing requirements, and
   
2. Verification that the supplier’s quality management system conforms to the quality system requirements specified for suppliers by the organization.
   

 
Remember, you’re only as good as your weakest link.  Q2 requires the management and monitoring of the supply chain.  Understand that this can create burdens and require additional resources to verify.   It is important that you develop a simple process to evaluate and monitor your vendors.
 
To find out about how Accupoint can help you streamline your supply chain management process, call us at 800.563.6250 or visit www.accupointsoftware.com