Published on
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.

Published on
Staying ahead in today's global economy often requires companies to make changes. The ability to adapt to change is a crucial part of organizational management. When your company adopts clear methodologies and processes to respond to change you will be set up for success. Organizational buy-in has become a prominent topic of discussion. Due to the team-based structure of most companies, change is often created through influence. Therefore, you need to be skilled in gaining support for your ideas. You need buy-in to implement your revolutionary ideas that move the company forward.

To successfully achieve organizational buy-in, your effort needs to be constructed carefully with attention paid to all of the factors that help a change initiative gain support. While there is not one method that will always work to overcome natural resistance to change, here are four tips that will help you achieve successful organizational buy-in.

Make It Clear
Disciplined thought and honest effort go a long way. When you present reality truthfully, the right decisions become clear. Being honest will also allow your coworkers and employees to trust you. Perhaps the most influential factor in achieving organizational buy-in is committing to open, honest and complete disclosure. To be successful you need to go beyond the data and analysis. A change effort makes the most headway when you appeal to employees' emotions. Using clear, striking examples that appeal to feeling will compel people to want the change. Show what the existing problems are and how this change will resolve them. This will motivate others to act.

Make it Manageable
Presenting a complex, multiyear project can easily make employees and coworkers feel overwhelmed. When you break the project down into steps with clear goals, it will seem more manageable. Consider presenting the larger project as smaller bite-sized phases. This will also make it easier to feel like progress can be made; it will give the change momentum. You can use this method to implement the change in smaller steps in the real world also. Utilizing this technique will help you resolve any potential problems before they become bigger.

Listen to Employees
The relationship with your employees and coworkers is important. You will need their help to achieve buy-in. Your job is to sell everyone on your idea. Explaining your ideas clearly and making it manageable are both ways to strengthen your relationship. Then you need to listen. Address concerns or any interpersonal issues. Your change effort will depend on management's dedication to open dialogue. Remember that listening well can sometimes be even more important than speaking well. Your employees are a valuable source of ideas and support.

Trust the Team
When trying to achieve organizational buy-in, there needs to be strong methods to drive management from the bottom up. You will be implementing change as a team. When change is driven both from the bottom up and top down it creates a strong dynamic and momentum. This means getting both employees and even customers on board. Everyone will come together to harness the force of change and push for success.

Senior management is ultimately responsible for the success of the change effort. Avoid some common faults by paying attention to how much funding is needed, what the required competencies and capabilities are, and what metrics and rewards can be used to support the change. Effective leaders will find the right levers and incentives to reduce resistance and gain momentum for change.

For more information on achieving organizational buy-in, and a variety of other business management solutions for the oil and gas industry, contact us today.
Published on
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.

Published on
Key performance indicators, or KPIs, are a useful to way to determine the effectiveness of your team or company in its efforts to meet performance objectives. When establishing KPIs, it's important to understand exactly what would indicate success for your team, and whether or not it is measurable. Here are four KPI Metrics Measurement Fundamentals to consider.

Is it specific to your team and to your stakeholders?
A useful KPI targets a goal that your team has control over, and an outcome that your stakeholders desire. If you're managing a quality control laboratory, you likely wouldn't want to set a KPI dependent on the overall company's ROI. This is outside of your team's direct control, and it doesn't apply directly to your primary stakeholders.
Instead, ask yourself, what indicates my team is performing successfully, and what do our stakeholders care about. In a quality control laboratory, this might be number of tests run per day, or perhaps target turnaround times for each sample received.

Does it motivate or discourage?
Think of a KPI as a realistic stretch goal, not unrealistic perfection.
Improving customer satisfaction by 3% is likely doable. Requiring turnaround times under 24 hours for a 48 hour test is not.
What you set as a KPI directly impacts your team members and your stakeholders. It's up to you to set realistic, meaningful targets, and to frame it in a way that motivates instead of discourages.

How will the KPI be measured?
A KPI is only useful if there is a system in place to measure it. If you're targeting customer satisfaction, are you already sending out customer surveys? And do you have a baseline number to work from? 
Or, if you're interested in setting turnaround times as your KPI, how will this be measured? Is there already a software system in place? Do you, your team, and your customers have a common understanding of what a satisfactory turnaround time would be? What will the dashboard for the KPI look like, and how will results be communicated?

What do you hope to learn or improve by measuring this KPI?
KPIs are not only an opportunity to determine how effective your team is, they're also a way to determine opportunities for improvement and growth. When setting a KPI, ask yourself what might need to change in order to succeed, and what needs to change if you're unsuccessful. These could be things like processes, improvements in communication, or streamlining sample processing. Who will make these changes, and when?

Selecting and measuring effective KPIs is an important way to ensure team success and client satisfaction. Please contact us to find out how we can help you track your targets. We look forward to hearing from you!
Published on
An internal quality audit is folded into a company’s corrective and preventative practices. The audit takes a snap shot of the organization’s compliance procedures, and then analyzes that snapshot to identify potential problems. In the oil and gas industry, internal audits are an integral part of the quality management system. 

To that end we have outlined 5 key steps to ensure that your internal audit process is effective:

  1. Scheduling. Audit dates, the person leading the audit and the processes or machinery to be audited on those dates. Any and all pertinent documentation should be included in these audits. Everyone involved needs to be clear on when the audit will occur, and what is being audited. This gives them time to prep all their documentation and resources correctly.
  2. Plan. What is the plan for this audit? The scope and depth of the audit must be made available to all involved in the audit. Included in this plan should be the chronology of the actual audit. Again, preparing employees, staff and c-level for the audit process is as important as the audit itself.
  3. Audit manager communication. The person that leads the audit has to communicate any changes that may occur in a timely fashion. This means that a schedule change has to take into consideration the department being audited and how much time they will need to respond to the change. Keeping the schedule on track is of the utmost importance, other departments and divisions are relying on their schedule too.
  4. Generating accurate reports. Management, stakeholders and c-level staff are usually the first to receive the reports generated by the audit. Problems (noncompliance) are analyzed and discussed at this stage, along with solutions to bring the department back into compliance. All essential personnel need to get this information at the same time.
  5. Action taken. The compliance manager will respond to noncompliance issues on an agreed date. The response must include an investigation into the problem, along with suggested remedies and a date for those remedies to be completed. The lead auditor should sign off on these proposals before work can begin.

Oil and gas concerns are usually multi-state and multi-location enterprises with hundreds, if not thousands of employees. The compliance audits for the oil and gas industries are exhaustive and complex. Effectively managing the audit function will ensure compliance to customer requirements, as well as related regulations and standards.   For more information on how Accupoint Software can help improve your internal audit process, please contact us.
Published on
Whether prepping for an audit, updating your company processes with new best practice information, or simply checking up on employee training, gage calibration (or lack thereof) should be taken seriously. Lack of compliance, regardless of which standards is being applied, can bankrupt a company. Gage calibration best practices really consist of 2 main parts, which should be checked periodically:

  • Calibration certificates-Bureaucratic red tape gets a bad rap, but keeping important files and paperwork in order can save a lot of time and hassle. A monthly check of calibration certificates can alert you to bring in any gage from the field that needs calibrated ahead of its expiration date. 

  • Employee Training. When employees do not know how to properly operate equipment, problems arise. Misuse of gages can cause them to no longer be in calibration. It can lead to incorrect readings, damage due to not taking the environment into consideration when applicable, or even cause accidents to happen. In the event of an accident, employees should feel comfortable reporting inaccurate, damaged, or otherwise malfunctioning gages to the proper authority.

Of course, keeping on top of gage calibration can be tedious, and easily lost among other, more pressing issues. Having one system set in place that can handle all compliance management efforts streamlines the process and makes it easier for the whole company, as otherwise compliance efforts get split among different individuals and departments. This inevitably leads to something getting lost in translation, or through the cracks. For the best compliance management solutions that optimize your business practices while improving customer satisfaction, contact us today.

Published on
Depending on the industry under discussion, there are varying levels of incidents that can occur which make having an effective incident management plan a necessity. The petroleum industry most certainly falls into the category of operations where establishing and consistently maintaining an effective incident management response is of paramount importance. Understanding that there is no way to completely prevent incidents -- only to successfully and completely prepare for them when they do occur -- is often the difference between a brief interruption in operations and a long-lasting, expensive situation that negatively impacts a firm's reputation. Read on as we outline four basic steps in any solid effective incident management plan.

Develop a communication plan

This pertains to internal and external communication. Internally, the specifics of the plan are dependent on different factors unique to your organization (size, location, company culture), but whatever form the communication plan takes, it should be well-defined and able to be acted upon immediately. All internal employees should refer questions to your company spokesperson, with no exceptions.
Externally, an honest assessment with a realistic timeline is the best course of action. Ensuring stakeholders and the public in general that you are taking every step necessary to deal with the incident in the timeliest manner possible is vital at this point. 

Understand how to classify (and respond to) the incident

At this juncture, the severity of the incident is quantified. Will it affect operations in just one location, or at multiple company locations? Obviously this step will no doubt be drastically different depending upon the circumstances, but the key here is to understand what threats can result from the incident, and gauge the response accordingly.

Formulate a basic framework for costs

There's no question that any incident needs a successful resolution. However, a cost analysis is necessary to ensure that the response and recovery to the incident are not out of proportion to the severity of the situation. As with any business decision, a budget helps immensely for this step.

Ensure your team is complete

Probably the most important step in any effective incident management plan, having the right people in the right places is of utmost importance. The key here is to have a clearly defined plan of action, where all the members of the incident management team understand their role -- without any ambiguity -- and are ready to jump into action immediately.

Developing an effective incident management response is certainly an important consideration, especially for companies operating in the petroleum industry. As is the case with any successful concept, ample planning will ensure that your organization is ready to respond -- and act quickly -- should an unexpected incident occur.

If you have any questions about developing or maintaining your incident management plan, please don't hesitate to reach out to us -- there's a reason why our compliance management solutions are so highly touted!
Published on
A well-designed continual improvement program is the key to a company’s growth within the petroleum industry. In addition to providing the framework for attaining the highest quality of product and service, a continual improvement program helps petroleum companies target inefficiencies and reduce waste. The result is a company that has the resources to weather challenging market conditions and thrive in favorable markets. Below is a look at 10 elements of effective continual improvement programs.
  
  1. Link continual improvement programs to your company’s mission or goals. Employees need to understand why a continual improvement program is being implemented. By linking the program to your company’s mission, you will be more likely to garner support and participation at all employee levels.  
  2. Communicate goals and program benefits to employees. Identifying and relaying goals for improvement is critical to a program’s success. Goals should be specific, attainable and actionable to produce ideal results. If incentives will be offered to employees for exceeding performance goals, these incentives should be specified before a program’s inception.  
  3. Stress the participation of managers and supervisors. Involvement of upper management is necessary to lead and engage front line employees. Managers should model desired behaviors and highlight the specific ways that continual improvement programs will value specific employees within a company. Managers and supervisors must make sure that employees remain on track and focused on performance goals.  
  4. Regularly monitor program performance. Evaluating the effectiveness of a continual improvement program is impossible without regular performance monitoring and results tracking. Real-time, accurate program results are vital to the ability to a program’s success because companies can target under-performing areas of their organization.  
  5. Develop strategies to reduce waste. In the petroleum industry, strategies for waste reduction serve a dual purpose. They target supply chain inefficiencies and reduce the environmental effects of petroleum operations. Non-value added processes should be minimized and recycling should be considered when appropriate.  
  6. Focus on the prevention of common problems. In the petroleum industry, front-line supervisors are often unable to effectively manage employees or procedures because they spend much of their time reacting to problems and tackling exception reports. A continual improvement program focuses on the prevention of injury, waste, and supply chain bottlenecks.  
  7. Identify key inefficiencies. An effective program identifies and targets opportunities for improvement. This process can target sluggish activities at refineries, subpar sales performance, ineffective marketing, and bottlenecks in supply chain activity. Quality control and testing procedures should be evaluated for effectiveness and amended to enhance accuracy and efficiency.  
  8. Enhance employee training programs. A training program should be thorough and engaging for all employees. Safety and compliance should be key program focal points, and employees should be encouraged to develop new skills. Finally, employees should receive continuing education and ongoing training.  
  9. Link employee bonuses to performance improvements. Tying rewards or bonuses to performance improvement is a great way to keep employees engaged and interested in program outcomes. Periodic internal audits are an effective means of assessing program results.  
  10. Develop a long-term mindset. The most effective continual improvement programs are future-oriented in their approach. They stress preservation of the environment, conservation of resources, continued education, and long-term company growth. Finally, long-term solutions are valued more than short-term strategies. 

Seeking the Guidance of an Expert in Continual Improvement  

Not all continual improvement programs are created equal. The best way for you to design a sound continual improvement program is to enlist the expertise of an industry expert. Accupoint Software has been facilitating continual quality programs for companies in the petroleum industry for nearly a decade. Please contact us to learn how we can help you launch an effective continual improvement program. We look forward to hearing from you!

Published on
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.

Published on
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

Categories