2013 Standards ConferenceSC18 Committee on Quality Standards

Washington, DCJune 27, 2013

API Monogram ProgramStatus Report

API Monogram ProgramStatus Report

W. Don WhittakerManagerMonogram Program/APIQRwhittakerd@api.org

Aaron DukeCertification & Audit Program DevelopmentMonogram Program/APIQRdukea@api.org

API Monogram/APIQRProgram Status Report

API Monogram/APIQRProgram Status Report

1. Monogram Program Statistics2. Fraud and Misuse3. Q1 & Q2 Updates4. Audit Program5. License Format Changes6. API Conference & Expo – Beijing – 20137. myCerts Update

2004

2005

2006

2007

2008

2009

2010

2011

2012

YTD0

1000

2000

3000

4000

50004218

1645

API Monogram Licensees APIQR Certified Companies

API Monogram/APIQR Clients

6-13

4738 Active Clients

4218 Licensed Companies. 1645 Companies Certified with APIQR. 1125 Companies With Both.

6-13

API Monogram Licensed Companies

Top Countries:1. China – 14682. USA – 6193. India – 2264. S. Korea – 1435. Italy – 1056. Canada – 907. UAE – 758. Indonesia – 749. UK – 7010. Japan – 5411. Germany – 5412. Mexico – 4413. Singapore – 4314. Malaysia – 4115. Russia – 40 3713 Licensees. 78 Countries.

Asia PacificNorth AmericaEuropeSouth AsiaSE AsiaMiddle EastSouth AmericaAfricaAustralasiaCentral Asia

6-13

API Monogram Licenses

Top Countries:1. China – 22872. USA – 9173. India – 4314. Italy – 2275. S. Korea – 2096. UAE –1847. Canada – 1408. Indonesia – 1369. Germany – 10810. UK – 10411. Singapore – 9612. Japan – 9213. Mexico – 7414. Malaysia – 6715. France – 65 6130 Licenses.

Asia PacificNorth AmericaEuropeSouth AsiaMiddle EastSE AsiaSouth AmericaAfricaAustralasiaCentral Asia

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Top Specifications

API-5CT

API-6A

API-6D

API-7-1

API-5L

API-7K

API-16A

API-16C

API-5DP

API-4F

0

200

400

600

800

1000

6-13

Top Licensed Products

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API-6D Ball Valves 666

API-5L PSL 1 Line Pipe 542

API-5CT Threader 534

API-7-1 Threading 512

API-6A Flanges 510

API-6D Gate Valves 506

API-6D Check Valves 501

API-6A Valves 460

API-5L PSL 2 Line Pipe 452

API-6A Tees and Crosses 430

APIQR ISO 9001 Certified Companies

1192 Companies. 66 Countries.

North AmericaAsia PacificEuropeSE AsiaMiddle EastSouth AsiaSouth AmericaAfricaAustralasiaCentral Asia

6-13

Top Countries:

1. China 318

2. USA 313

3. Canada 61

4. India 54

5. Indonesia 38

6. Singapore 31

7. UAE 30

8. Russia 28

9. S. Korea 27

10. Mexico 25

APIQR API Spec Q1 Certified Companies

1214 Companies. 68 Countries.

North AmericaAsia PacificEuropeSE AsiaMiddle EastSouth AsiaSouth AmericaAfricaAustralasiaCentral Asia

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Top Countries:

1. China 329

2. USA 303

3. Canada 58

4. India 55

5. Singapore 41

6. Indonesia 39

7. S. Korea 30

8. UAE 30

9. Russian 27

10. Mexico 24

API Monogram Applications

918 Applications at 638 Companies.

Asia PacificNorth AmericaEuropeSE AsiaMiddle EastSouth AsiaSouth AmericaAfricaAustralasiaCentral Asia

6-13

Top Countries:

1. China 408

2. USA 115

3. India 61

4. Indonesia 33

5. S. Korea 31

6. UAE 28

7. Canada 28

8. Singapore 18

9. Italy 18

10. Romania 15

APIQR ISO 9001 Applications

340 Applications.

North AmericaAsia PacificEuropeSE AsiaMiddle EastSouth AmericaSouth AsiaAfricaAustralasiaCentral Asia

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Top Countries:

1. China 101

2. USA 88

3. Singapore 19

4. Canada 17

5. UAE 13

6. Russia 12

7. India 11

8. Indonesia 8

9. Malaysia 5

10. Italy 5

APIQR API Spec Q1 Applications

373 Applications.

Asia PacificNorth AmericaEuropeSE AsiaMiddle EastSouth AsiaSouth AmericaAfricaAustralasiaCentral Asia

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Top Countries:

1. China 112

2. USA 89

3. Singapore 25

4. Canada 15

5. Russia 13

6. UAE 13

7. India 12

8. Indonesia 8

9. S. Korea 6

10. Malaysia 5

Fraud and Complaints Overview

2009 2010 2011 2012 2013

0

5

10

15

20

25

30

35

40

Cases per year

• 27 cases received to date

• 11 open / 16 closed

• New trend towards investigative audits as resolution rather than issuing simple notices to facilities

• 9 cases have been handed to auditors for investigation in 2013

2013 Fraud Cases

Product Complaints

18 total product complaints received in 2012/2013

14 Clients/End

Users

2 API Affiliates

2 Ex-employees

Product Complaints

Complaint outcomes

4 total were unsubstantiated

3 resulted in suspension

1 resulted in cancellation

3 resulted in scope changes/reduction

Product Complaints

Complaint Details:

• 7F Roller Chain manufacturer• Chains that break after minimal

use• Complaining party was certain

facility performed nonconforming manufacturing practices

Investigation Result:

• Facility exposing products to corrosive liquids

• Facility performed analysis and issued warning to all clients

• Complaint dismissed

Product Complaints

Complaint Details:

• Report from potential client as a result of a customer audit

• Concerns that facility did not have minimum capability to design, weld, and heat treat 16A products

Investigation Result:

• Total of 19 findings• Incomplete design packages• Missing acceptance criteria for

calibrated equipment• Production not performed under

controlled conditions• Some missing evidence of final

inspections• Immediate Suspension

Product Complaints

Complaint Details:

• Report facility operated out of an office block

• Facility also lacked capability to design, fabricate, manufacture, assemble or test Derricks, Masts and Substructures

Investigation Result:

• Facility had a sub-site where they assemble, test, and Monogram

• Procedures did not explain or reference activities

• Facility forced to switch Monogram location to sub-site and switch main office to APIQR

Product Complaints

Complaint Details:

• 5L manufacturer delivering corroded pipes with low impact strength, poor finish, and inaccurate mill test reports

Investigation Result:

• Facility had been subcontracting manufacturing

• Only possessed capability to process pipe

• 5L scope immediately reduced from manufacturer to processor

Q1 & Q2 Update

API Spec Q1, 9th Edition Transition

June 1 through November 1, 2013• Audits conducted to 8th Edition• Auditor and Staff training to new requirements

July 8, 2013•Send “Conformance Matrix” to all participant Organizations

December 1, 2013 through May 1, 2014•Audits conducted to 9th Edition•Findings raised against new requirements will be “Concerns”

• Applicants Only: Beginning on March 1, 2014, any finding raised against new requirements will be considered a full nonconformance

June 1, 2014•Conformance to Spec Q1, 9th Edition mandatory •“Conformance Matrix” due

API Spec Q2 – Program Implementation

March 2013• Beta Assessments completed

July 29th – August 2nd 2013•Mock audit planned – Halliburton, Bakersfield•Full test of audit process, planning and reporting

Fall 2013•Accepting applications for certification•Train and qualify auditors and staff

First Quarter 2014•Audits to API Spec Q2

Audit Program Status Report

45%

37%

16%1%

MonogramDualRegistrationOther

1286 Audits Performed

Audits by Program: Monogram Only – 583 Dual – 480 Registration – 207 Other – 19

Audits by Country: China – 455 (35%) USA – 247 (19%) India – 68 (5%) Canada – 50 (4%)

2013 To DateTotal Certification Program Audits

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API Monogram Audits

Initial Renewal Re-Audit Other0

50

100

150

200

250

300

350

400

139

336

7335

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Dual (API Monogram / APIQR) Audits

Initial Surveillance Recertifica-tion

Re-Audit Other0

50

100

150

200

250

300

350

100

286

70

16 8

6-13

APIQR Registration Audits

Initial Surveillance Recertifica-tion

Re-Audit0

102030405060708090

10089

22

89

7

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First 6 Months Previous 12 Month Period (June-June)0

250500750

1000125015001750200022502500275030003250

20092010201120122013

2009 – 2013Historical Comparisons

Reg Surv-Recerts

Dual Surveillance-Recerts

Monogram Renewals

0 100 200 300 400 500 600 700 800 900

Complete Scheduled To Schedule

2013 Audits Due – Status

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Active API Monogram/APIQR Auditors

20062007

20082009

20102011

20122013

0

20

40

60

80

100

120

140

160

151 Active Auditors• 146 QMS-Monogram• 16 Auditors in training• 15 EMS-OHSAS• 11 API-U• 15 Perforator Witness

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Local Auditors in 31 Countries.

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Audit Program - Auditors

16 Auditors-in-training / 10 more started process• Focusing on USA

Auditor Training-Qualification Sessions• Houston-Longview & Carrollton• Training sessions with mock audits

Auditor Training-Qualification Plans• API Spec Q2 & API Spec Q1 – training• API Spec Q2 – qualify auditors for fall 2013• Still working on 5CRA and 20A plans• 10 auditor observations complete – 20 more scheduled for 2013

6-13

Audit Program - Audits

Product Spec Questions• In place for 34 product specs – all up-to-date• 12 more to be in place by mid-August

Periodic Audits – Goals Established for 2013• 44 scheduled or completed in 2013• Goal – perform 100 in 2013

Testing of revised audit report

Using SC5 draft audit tools – positive feedback to date

Adding operational resource in Houston office

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API Monogram ProgramProposed Changes to License Format

• Product listings getting longer and more complex• More grades, groups, PSLs, FSLs, quality levels, etc.• Cannot effectively be displayed on a 1 page License document• Looking at a 2 page format for the License

• Page 1 general license and scope information• Page 2 specific product scope with applicable details• Example follows

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QuestionsComments

OTHER OPTIONS• 1 page Monogram License document (see page 1 of example)• Only show generic scope with reference to API Composite List• Details included on API Composite List• 8 ½ x 14 format?

Any comments or concerns?

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www.apibeijing2013.org

Upstream TrackConference Schedule – September 11th, 12th and 13th, 2013

Health, Safety & EnvironmentalCharlie Williams–Center for Offshore Safety

williamsc@centerforoffshoresafety.org

Standards & RegulationsAaron Swanson–Baker Hughes–Aaron.swanson@bakerhughes.com

Roland Goodman–API–goodmanr@api.org

Quality & ReliabilityZhang Hanliang–Petro China–dudl@petrochina.com.cn

Rennie Van Wyck–Intertek–rennie.vanwyk@intertek.com

Drilling & Production – 2 SessionsJim Raney–Anadarko–Jim.raney@anadarko.com

George Gillespie–Weatherford–George.gillespie@weatherford.comTerry Lechinger–Stress Engineering–terry.lechinger@stress.com

Upstream Track

myCertsmyCerts.api.org

Laura LevandoskiSr. Associate –Project ManagerGlobal Industry Serviceslevandoskil@api.org

myCerts• What is myCerts?• myCerts-2013 Release• Testing

myCerts Today• myCerts.api.org• myCerts is our secure web site• Resolve audit findings

myCerts - 2013• Applications will only be accepted on-line• Electronic legal agreements • Contacts will be managed by the clients• Include product details • Audit resolution• New composite list

Migration Plan• Pilot - Fall 2013• Application process• Continuous review of business process• Full Launch – Late 2013• Migrate all clients • Only migrating email address

System Requirements• All common browsers will work

– Internet Explorer Version 8 or higher– Firefox Version 3.5 or higher– Chrome– Safari

• No additional plug-ins

Volunteers - Testing• July 2013 – client testing• Email API if interested – levandoskil@api.org• Expectations:

– 2-3 hours – Complete application and review audit response process– Document comments with screen shots and notes– Screen share with API

HelpdeskHelpdesk Information• myCerts -2013 will have a new helpdesk• Email: myCertsSupport@api.org• Email suggestions and issues

Questions?

Thank you……….

W. Don WhittakerManagerMonogram Program/APIQRwhittakerd@api.org

Aaron DukeCertification & Audit Program DevelopmentMonogram Program/APIQRdukea@api.org

Laura LevandoskiSr. Associate –Project ManagerGlobal Industry Serviceslevandoskil@api.org