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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.
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.
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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.
Requirements
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.
Requirements
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;
- Project Management
- Service Quality Planning
- Contract Review
- Risk Assessment
- Training & Competency
- Preventive Maintenance, Inspection & Test
- Management of Change
- Supply Chain Management
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.
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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.
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.
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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.
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.
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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.
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.
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Visitor management refers to the tracking and accounting of visitors to a facility. Visitor management is very important in the petroleum industry because of the unique safety concerns that arise. The best practices for visitor management take the visitor from arrival to departure, making the experience both informative and safe for everyone involved.
Register Visitors
The visitor management process begins with registration. This should be done electronically when a new visitor arrives. The visitor's name, business, and time of arrival will be recorded. At this time, a badge or other form of identification can be given to the visitor so they are clearly identifiable by employees.
Safety
With the types of equipment and chemicals used in the petroleum industry, visitor safety is a major concern. Visitors may be given hard hats or other safety equipment as needed.
Supervision
Making sure visitors are always properly supervised is a best practice for visitor management. Employees involved with supervising visitors should give visitors access to any relevant safety rules before allowing them into the facility. The employee should remain with the visitor for the duration of the visit.
Restricted Areas
There may be certain areas of your facility that visitors cannot go. Using electronic visitor management, you can restrict these areas to all or certain visitors. You may also be able to track a visitor's movements throughout a facility using their badge.
Releasing Visitors
Visitors should be released by reversing the registration process. They will need to return their badge and any safety equipment they used. The time they are released will be noted electronically in the visitor record.
Using these visitor management best practices, your facility and all visitors will remain safe and well accounted for.
To find out how Accupoint Software can help your business with visitor management, contact us.
Register Visitors
The visitor management process begins with registration. This should be done electronically when a new visitor arrives. The visitor's name, business, and time of arrival will be recorded. At this time, a badge or other form of identification can be given to the visitor so they are clearly identifiable by employees.
Safety
With the types of equipment and chemicals used in the petroleum industry, visitor safety is a major concern. Visitors may be given hard hats or other safety equipment as needed.
Supervision
Making sure visitors are always properly supervised is a best practice for visitor management. Employees involved with supervising visitors should give visitors access to any relevant safety rules before allowing them into the facility. The employee should remain with the visitor for the duration of the visit.
Restricted Areas
There may be certain areas of your facility that visitors cannot go. Using electronic visitor management, you can restrict these areas to all or certain visitors. You may also be able to track a visitor's movements throughout a facility using their badge.
Releasing Visitors
Visitors should be released by reversing the registration process. They will need to return their badge and any safety equipment they used. The time they are released will be noted electronically in the visitor record.
Using these visitor management best practices, your facility and all visitors will remain safe and well accounted for.
To find out how Accupoint Software can help your business with visitor management, contact us.
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The oil industry is going through a rough patch right now. It may seem dire with wells going offline and new exploration being reduced, but this is not the first time this has happened and it won't be the last.
During times like these, companies find themselves looking for ways to maintain productivity and revenue while limiting exposure to the markets and unnecessary costs. Operational excellence lies at the heart of these efforts.
If your organization is reeling from the market shifts and looking for ways to survive, then now is the perfect time to re-examine your operational expenditures, project management, and other critical processes.
It can be hard for companies to step back from the current crisis and see the big picture, but gaining a high-level view of the company, markets, and industry is essential to long-term success. Doing this now will help you spot opportunities for cost reduction and reinvestment while the market is down, and it will place you in a better growth position once prices begin to rise again.
Remember that the ability to look at your current situation through the lenses of operations, compliance, and quality management is a strategic strength. It gives you a perspective that balances data, business goals, and risk management. Organizations that use this approach will discover ways to do more with less and re-establish growth.
If your organization is weathering the current storm well, then you should take advantage of your balance sheet and relatively strong position to realign operations toward future investments and even better results once the downturn ends.
Firms in a good position can arguably benefit the most quickly from improving operations because they are starting from a strong foundation. That said, operational analysis and management still needs to be taken seriously and given attention. You cannot rest on your laurels.
Companies that commit to improving their operations and/or maintaining their already high standards will see their fortunes improve much faster than firms that ignore issues during the downturn. Firms practicing operational excellence or working towards it will be more agile and responsive to market changes during this cycle and future ones.
Operational excellence is an asset in itself and times like these prove it. Take a look at your operations now and be willing to make changes, so that you are ready for the future. If you don't, then rest assured that your competitors will and it will cost you.
During times like these, companies find themselves looking for ways to maintain productivity and revenue while limiting exposure to the markets and unnecessary costs. Operational excellence lies at the heart of these efforts.
If your organization is reeling from the market shifts and looking for ways to survive, then now is the perfect time to re-examine your operational expenditures, project management, and other critical processes.
It can be hard for companies to step back from the current crisis and see the big picture, but gaining a high-level view of the company, markets, and industry is essential to long-term success. Doing this now will help you spot opportunities for cost reduction and reinvestment while the market is down, and it will place you in a better growth position once prices begin to rise again.
Remember that the ability to look at your current situation through the lenses of operations, compliance, and quality management is a strategic strength. It gives you a perspective that balances data, business goals, and risk management. Organizations that use this approach will discover ways to do more with less and re-establish growth.
If your organization is weathering the current storm well, then you should take advantage of your balance sheet and relatively strong position to realign operations toward future investments and even better results once the downturn ends.
Firms in a good position can arguably benefit the most quickly from improving operations because they are starting from a strong foundation. That said, operational analysis and management still needs to be taken seriously and given attention. You cannot rest on your laurels.
Companies that commit to improving their operations and/or maintaining their already high standards will see their fortunes improve much faster than firms that ignore issues during the downturn. Firms practicing operational excellence or working towards it will be more agile and responsive to market changes during this cycle and future ones.
Operational excellence is an asset in itself and times like these prove it. Take a look at your operations now and be willing to make changes, so that you are ready for the future. If you don't, then rest assured that your competitors will and it will cost you.
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Many service supply organizations are using internal audits as a method to improve operations and impact their bottom line. In addition to being required by API Spec Q2, an effective audit program will highlight potential problems areas, identify failure points, and determine the effectiveness of controls.
Internal auditing provides the mechanism that organizations use to examine business processes and evaluate compliance with both internal and external requirements. Successful auditing incorporates best practices and other tools to provide maximum impact. To that end, we have outlined five useful tips to help advance your next internal quality audit.
1. Strong Attention to Detail
It is important for internal auditors to note and document evidence throughout the auditing process. These notes are used later to analyze events and reconstruct specific situations. This does not mean that auditors should focus on tiny, unimportant details through nit-picking, but rather components that are a part of a bigger issue that can be addressed.
2. Friendly Attitude
Stress levels are already high when employees are dealing with an audit. If an internal auditor is aggressive, hostile, or difficult to deal with, employers often minimally engage and will not share as much. If an internal auditor presents with a friendly attitude and is open, they will be more likely to get feedback. The last thing an auditor wants to do is put an employee on the defensive or make them feel ill at ease.
3. Reporting Supported by ChecklistsInternal auditors use checklists to balance reporting and should ensure that they are clean and support numerical values and ratings. These checklists enable companies to report on growth as well as challenges that exist across various departments. These reports are essential and allow businesses to assess whether their improvement efforts are working, and what training is needed to reach their goals.
4. Generation of Auditing TeamsInternal auditing teams can be very successful, especially with all the documentation that goes into completing an audit the right way. While a single auditor would be responsible for actively listening while documenting their findings, a team can allocate responsibilities to various areas such as recording, listening, and documenting. This way, all team members can collaborate to ensure no information is overlooked.
5. Looking at the Whole Picture
When an internal audit is taking place, the auditor or team should be able to look at the picture as a whole, incorporating current situations as well as past audit results. Focus should take place on past issues to determine whether they have been corrected and closed before reassessments take place in the same area. This is a delicate balance that will prove most effective and time efficient.
In addition, there are numerous best practices that should be examined in relation to internal audit activities. An internal audit is usually successful when the auditor is able to implement the following activities.
For more information on how we can help manage your internal audit process, please call us at 800.563.6250 or visit us at www.accupointsoftware.com.
Internal auditing provides the mechanism that organizations use to examine business processes and evaluate compliance with both internal and external requirements. Successful auditing incorporates best practices and other tools to provide maximum impact. To that end, we have outlined five useful tips to help advance your next internal quality audit.
1. Strong Attention to Detail
It is important for internal auditors to note and document evidence throughout the auditing process. These notes are used later to analyze events and reconstruct specific situations. This does not mean that auditors should focus on tiny, unimportant details through nit-picking, but rather components that are a part of a bigger issue that can be addressed.
2. Friendly Attitude
Stress levels are already high when employees are dealing with an audit. If an internal auditor is aggressive, hostile, or difficult to deal with, employers often minimally engage and will not share as much. If an internal auditor presents with a friendly attitude and is open, they will be more likely to get feedback. The last thing an auditor wants to do is put an employee on the defensive or make them feel ill at ease.
3. Reporting Supported by ChecklistsInternal auditors use checklists to balance reporting and should ensure that they are clean and support numerical values and ratings. These checklists enable companies to report on growth as well as challenges that exist across various departments. These reports are essential and allow businesses to assess whether their improvement efforts are working, and what training is needed to reach their goals.
4. Generation of Auditing TeamsInternal auditing teams can be very successful, especially with all the documentation that goes into completing an audit the right way. While a single auditor would be responsible for actively listening while documenting their findings, a team can allocate responsibilities to various areas such as recording, listening, and documenting. This way, all team members can collaborate to ensure no information is overlooked.
5. Looking at the Whole Picture
When an internal audit is taking place, the auditor or team should be able to look at the picture as a whole, incorporating current situations as well as past audit results. Focus should take place on past issues to determine whether they have been corrected and closed before reassessments take place in the same area. This is a delicate balance that will prove most effective and time efficient.
In addition, there are numerous best practices that should be examined in relation to internal audit activities. An internal audit is usually successful when the auditor is able to implement the following activities.
- Schedule: An internal audit schedule can help communicate when a company can expect to be audited, which processes will be included, and the type of resources that are necessary. If audits are scheduled well in advance, they produce better results.
- Plan: An internal audit plan should detail the scope, objectives, and agenda, providing an outline from start to finish. This reveals what processes will be audited, when it will occur, and who will complete the segments.
- Manage: It should be noted what the internal auditor manages, including communicating changes to the plan, reviewing the progress, ensuring that the process is followed in an orderly manner, and reviewing areas that do not conform to standards.
- Report: During reporting, stakeholders must be presented with written observations and lists of non-conformities to allow discussion for internal audit results.
- Verification: Internal audit nonconformities are required to generate a response that includes a hypothesis of the root cause and proposed corrective measures.
For more information on how we can help manage your internal audit process, please call us at 800.563.6250 or visit us at www.accupointsoftware.com.
- Published on
The global economy has produced a business environment that is becoming increasingly globalized and commoditized, forcing companies in all industries to look for viable modalities that ensure that they are able to develop and sustain a competitive edge. Indeed, companies in the oil and gas industry have not been able to escape the need to be more competitive, which begins with effectively creating long-term solutions that facilitate an increase in gross profit. Some of the most effective methods for increasing profit are through increasing operational efficiency and the reduction of fixed costs.
Understanding Operational Excellence
In its simplest form, operational excellence can be understood as an integral component of organizational leadership that places great emphasis on multiples principles, tools and systems that work toward the sustainable improvement of identifiable central performance metrics.
Achieving operational excellence, however, is quite challenging, especially when considering the increased complexity in the area of extreme remote operational environments. One of the most effective approaches that many companies in the petroleum industry are implementing is the complete integration of all processes and assets into an all-inclusive management system. In doing this, the potential for increasing a more effective and efficient operational process, resulting in general operational costs.
Using Methodologies that Keep the Operational Process Connected
One thing that we place substantial gravity on is not allowing the complexity of remote environments to foster disconnects between mechanisms and entities that control performance. When it comes to quality management, we integrate more than 64 operational modules into a single seamless, online management system. By connecting all of our client's API Q2 requirements with one comprehensive solution, we provide our clients with a highly detailed perspective of their operational compliance in all key areas.
Integrated approaches to asset and operational management initially began with a goal of improving Process Safety Management (PSM) — with the primary focus being on HSE system efficiency. Due to the fact that oil and gas companies often operate in hostile environments, using hazardous materials and processes, it is imperative that these processes are effectively managed with a high level of precision and specificity in order to successfully avoid significant process-related accidents. This need for precision and safety resulted in the development of PSM programs and procedures that are normally housed within an HSE system.
Now the idea of integrated processes has been taken to an entirely different level as we work to implement safety and operational efficiency into one single integrated process, through which all variables and components of the operational process can be monitored and managed, even when functioning in extreme and remote environments.
Maximize Productivity
While safety is always at the forefront of any operational process, we understand that time is money, and when time is being wasted on operational processes, the company is hemorrhaging money. As the nature of operational processes continue to increase in complexity, the ability to manage these processes through multiple mechanisms has become increasingly difficult — making it necessary to develop integrated process applications through which the entire operational system can be effectively managed.
When high-paced operations require that API Spec Q1 and/or API Spec Q2 standards be met in multiple processes that are functioning simultaneously, integrating all required standards into one measurement mechanism helps to simplify the compliance and efficiency process. Integrated solutions help to prevent disconnects that can occur when multiple processes are managed through separate systems.
Accupoint can help facilitate operational excellence at a level that ensures that you are able to develop and sustain a competitive edge, as well as maintain quality and safety compliance standards.
For more information or to schedule a platform demonstration, click here.
Understanding Operational Excellence
In its simplest form, operational excellence can be understood as an integral component of organizational leadership that places great emphasis on multiples principles, tools and systems that work toward the sustainable improvement of identifiable central performance metrics.
Achieving operational excellence, however, is quite challenging, especially when considering the increased complexity in the area of extreme remote operational environments. One of the most effective approaches that many companies in the petroleum industry are implementing is the complete integration of all processes and assets into an all-inclusive management system. In doing this, the potential for increasing a more effective and efficient operational process, resulting in general operational costs.
Using Methodologies that Keep the Operational Process Connected
One thing that we place substantial gravity on is not allowing the complexity of remote environments to foster disconnects between mechanisms and entities that control performance. When it comes to quality management, we integrate more than 64 operational modules into a single seamless, online management system. By connecting all of our client's API Q2 requirements with one comprehensive solution, we provide our clients with a highly detailed perspective of their operational compliance in all key areas.
Integrated approaches to asset and operational management initially began with a goal of improving Process Safety Management (PSM) — with the primary focus being on HSE system efficiency. Due to the fact that oil and gas companies often operate in hostile environments, using hazardous materials and processes, it is imperative that these processes are effectively managed with a high level of precision and specificity in order to successfully avoid significant process-related accidents. This need for precision and safety resulted in the development of PSM programs and procedures that are normally housed within an HSE system.
Now the idea of integrated processes has been taken to an entirely different level as we work to implement safety and operational efficiency into one single integrated process, through which all variables and components of the operational process can be monitored and managed, even when functioning in extreme and remote environments.
Maximize Productivity
While safety is always at the forefront of any operational process, we understand that time is money, and when time is being wasted on operational processes, the company is hemorrhaging money. As the nature of operational processes continue to increase in complexity, the ability to manage these processes through multiple mechanisms has become increasingly difficult — making it necessary to develop integrated process applications through which the entire operational system can be effectively managed.
When high-paced operations require that API Spec Q1 and/or API Spec Q2 standards be met in multiple processes that are functioning simultaneously, integrating all required standards into one measurement mechanism helps to simplify the compliance and efficiency process. Integrated solutions help to prevent disconnects that can occur when multiple processes are managed through separate systems.
Accupoint can help facilitate operational excellence at a level that ensures that you are able to develop and sustain a competitive edge, as well as maintain quality and safety compliance standards.
For more information or to schedule a platform demonstration, click here.
- Published on
Despite the bitterly cold and blistering winter the Eastern Seaboard has just fought through, the mild and almost non-existent winter of the West Coast has the US using 30 percent less natural gas than we did last year. And now according to The Fiscal Times, "there is over 1,470 billion cubic feet of natural gas in storage." With the peak season over, improved natural gas pipelines, and this increase in supply, the US is experiencing the lowest price for natural gas in three years.
The improved pipeline situation is a result of new pipelines, and older ones being re-purposed, making it easier to get the gas where it needs to go at a fraction of the cost, and ultimately driving down the end price as well. The US Energy Information Administration claims, "The US natural gas pipeline network is a highly integrated transmission and distribution grid that transports natural gas to and from anywhere in the continental US. The grid is comprised of more than 210 natural gas pipeline systems, over 300 thousand miles of interstate and intrastate transmission pipelines, more than 11 thousand delivery points, 24 market centers or hubs, and 400 underground natural gas storage facilities."
It's likely that natural gas drillers, coal mining companies, and coal plant owners will be the hardest hit by the low prices, and will have to make strong and effective decisions to improve their operations in order to absorb some of the lost revenue. While consumers, and utilities that own their own power plants will come out ahead. It will be imperative for drilling companies to increase their productivity by deploying advanced technology, more efficient equipment, and smarter operating software systems. The natural gas industry certainly isn't going anywhere, and will come out of the price plummet situation more streamlined, effective, and prosperous. Please contact us today to increase your competitive edge with comprehensive quality management solutions that are designed to help companies optimize decision-making capabilities, and improve their bottom line while offering a flexible, cloud-based platform.
The improved pipeline situation is a result of new pipelines, and older ones being re-purposed, making it easier to get the gas where it needs to go at a fraction of the cost, and ultimately driving down the end price as well. The US Energy Information Administration claims, "The US natural gas pipeline network is a highly integrated transmission and distribution grid that transports natural gas to and from anywhere in the continental US. The grid is comprised of more than 210 natural gas pipeline systems, over 300 thousand miles of interstate and intrastate transmission pipelines, more than 11 thousand delivery points, 24 market centers or hubs, and 400 underground natural gas storage facilities."
It's likely that natural gas drillers, coal mining companies, and coal plant owners will be the hardest hit by the low prices, and will have to make strong and effective decisions to improve their operations in order to absorb some of the lost revenue. While consumers, and utilities that own their own power plants will come out ahead. It will be imperative for drilling companies to increase their productivity by deploying advanced technology, more efficient equipment, and smarter operating software systems. The natural gas industry certainly isn't going anywhere, and will come out of the price plummet situation more streamlined, effective, and prosperous. Please contact us today to increase your competitive edge with comprehensive quality management solutions that are designed to help companies optimize decision-making capabilities, and improve their bottom line while offering a flexible, cloud-based platform.
