api spec q2 overview

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API Spec Q2: An Overview

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An overview of the major components of the new API Spec Q2 requirements for service suppliers to the Oil & Natural Gas Industry.

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API Spec Q2: An Overview

Set to change regulatory landscape in the energy sector.

Results of findings from Macondo incident (Deepwater).

Companies will need to API Q2 certified by 2014 in order to work with any of the major oil & gas companies.

API is currently accepting applications for Spec Q2.

Spec Q2 is already a core requirement for new contracts for ExxonMobil. The same hold true for other major industry players.

Quality Management System Requirements for Service Supply Organization for the Petroleum and Natural Gas Industries.

Quality assurance-based standards for the industry to help avoid future catastrophes.

Released a proposed schedule for voluntary/mandatory Q2 compliance that is launching in North America and the Gulf of Mexico in 2014, and will quickly expand to international regions and it is anticipated to be a global mandate by 2016.

Operations integration of the new Q2 requirements will be required for: ◦ Oil & Gas Producers & Suppliers

◦ Associated Vendor, Distributors and Suppliers

Industry mandated (and possibly federal) timeline.

3rd party Service Providers will provide implementation and evaluation functions.

A majority of the API Q2 requirements have been integrated into the 9th Edition of the API Q1 Specification.

ISO 9001, ISO 29001: ◦ Process Based Management Systems.

API Q1 & API Q2: ◦ Process Based Management System.

◦ Risk Based Management System.

Applies to Service Providers and Service Related Product.

Service Related Product Definition: ◦ Materials, Equipment, and Software used in the execution of a service.

Competency/Training

of Personnel

Risk Assessment and

Management Service Design

Contingency Planning Supply Chain Controls Service Quality Plan

Preventative

Maintenance,

Inspection and Test

Service Performance

Validation

Management of

Change (MOC)

Most organizations are doing this is one form or

another.

Spec Q2 requires a more formal approach.

Particularly interested in skills assessment and development of training matrixes to ensure a

competent. well trained workforce.

Risk Assessment and Management is a major component of Spec Q2.

Spec Q2 asks us to create a formalized process to identify and document risks (potential and real) and then develop action plans designed to communicate, mitigate and control these risks.

Goal is to reduce or avoid exposure to loss.

Design review is fairly straight forward.

This requirement deals with the verification and validation in the design of the service and SRP (service related product).

One item of note is we see the risk assessment function identified in the design process.

Disruption Prevention.

Mitigation Measures.

Integration.

Actions required for significant risk.

Assignment of responsibility & authority.

Internal and external communications.

Supply chain controls are imperative.

In most cases organizations have some process in place.

SpecQ2 requires a much more formal and documented approach to supplier management. ◦ Develop methods to classify and qualify suppliers.

◦ Assess and identify critical suppliers.

◦ Verify that a QMS is in place and conforms to internal requirement.

◦ Track and report supplier performance metrics.

Ultimately our goals here are to minimize potential disruptions to operations and maximize cost savings.

Designed to document the procedures resources, processes and activities that identify and control the quality requirements of the service or SRP.

The Q2 spec requires your organization to clearly define; document and measure items associated the execution of the service.

Quality Plans should include: ◦ Compliance to customer requirements.

◦ Control of subcontractors

◦ Identification of requirements for acceptance

◦ ID and control of risk

◦ Required deliverables and related records.

Plans need to be documented and approved and when required by contract, communicated with the customer.

Validation activities should be completed throughout execution as well as upon completion.

Validation process should confirm all requirements (KPIs, critical success factors and acceptance criteria) were achieved.

Records of performance and validation must be maintained.

Planned preventive maintenance increases reliability.

Spec Q2 requires detailed, site-specific maintenance schedules, procedures, and training.

Equipment maintenance is critical for safe working conditions and long-term profitability.

Maintenance procedures should include ◦ Preventive maintenance

◦ Use History Logs

◦ Critical Spare Parts

◦ Controls for Equipment Integrity

The vast and complex nature of MOC has caused many companies to struggle with implementing change control management system.

Companies use a collection of disconnected manual systems, spreadsheets and databases, which results in duplicate data, increased costs, data errors, time delays and lack of visibility.

A well-documented MoC program can be used to demonstrate an organization’s commitment toward due diligence in risk mitigation efforts.

Includes communication with internal and external parties.

Q2 Comprehension and Application.

Transitioning from a process based to a risk-based management system.

Integrating new requirements into existing competencies.

Global Supply Chain. ◦ Geographical & Cultural Differences.

◦ Remote Locations.

Improves decision making.

Minimizes risk through identification, planning & controls.

Improves efficiencies.

Improves safety performance.

Improves identification and traceability.

Protects your revenue stream.

Designed for Oil & Gas Service Providers required to maintain API Q2 Spec certification.

A cloud-based business solution managing the oil and gas industry drivers identified in API Q2 requirements.

Risk based management system.

Intuitive solution designed for point of operation use.

Real time operational reporting from multiple/remote locations enabling quick decision making.

241 West Federal Street | Suite 308 | Youngstown, Ohio 44503

Phone: Toll-Free: 800.563.6250 | Fax: 330.746.6863

Website: www.accupointsoftware.com

For more information on our flexible, cloud-based API Q2 Compliance

Management solution, please contact us at: