Tim Gonzalez

Sales
Monogram Program / APIQR
Gonzalezt@api.org
API Program Overview
• Overview
• Certification Programs
API Monogram Licensing & Q1
• API Spec Q1
• Product Specifications
• License Agreement
The API Audit
• Audit Focus and Requirements
• The Auditors
• Audit Expectations
The Monogram Mark
• Meaning of the Mark
• Use of the Mark
• Composite List
ü Certify the Individuals
– Individual Certification Programs
– Training Courses
ü Certify the Management Systems
– API Spec Q1/ISO TS 29001
Registrations
– ISO 9001 Registration
– ISO 14001 Registration
– OHSAS 18001 Registration
ü Certify the Products and Services
– Monogram Licensing
– Engine Oil Certification
Comprehensive
Coverage
• Created by industry
• Standards drafted and maintained by
industry
• Regulated and directed by industry
ü Standardization and Consistency
ü Management System Implementation
ü Quality System and Industry Standardization
ü Auditor Competency
ü Internationally Recognized
ü Power of the Composite List
ü Industry Guidance and Oversight
April 2011
April 2011
o 3209 Licensees
o 76 Countries
Top Countries:
ØChina – 1,310
ØUSA – 546
ØIndia – 195
ØSouth Korea – 112
ØCanada – 93
ØItaly – 86
ØUnited Kingdom – 64
April 2011
o 5296 Licenses
o 76 Countries
Top Countries:
ØChina – 2,062
ØUSA – 816
ØIndia – 364
ØItaly – 187
ØSouth Korea - 159
ØCanada – 143
ØUAE – 132
April 2011
o 910 Applications
o 782 New Facilities
o 128 License Additions
Top Countries:
ØChina – 401
ØUSA – 87
ØIndia – 63
ØSouth Korea – 28
ØUAE – 27
ØItaly – 26
ØCanada - 24
3 Essential Elements
Quality System
conformance to
API
Specification
Q1
Conformance to
one or more API
Product
Specifications
And the License
Agreement /
Program
Requirements
3 Essential Elements
1
2 3
3 Essential Elements
Quality System
conformance to
API
Specification
Q1
Conformance to
one or more API
Product
Specifications
And the License
Agreement /
Program
Requirements
3 Essential Elements
2 3
1
• API Spec Q1 is developed and maintained by
petroleum industry professionals for petroleum
industry professionals
• API Spec Q1 is maintained by an API Quality
Committee which consists of international oil
company professionals, equipment manufacturers,
quality system auditors, service companies and API
equipment and quality professionals
• Standard specifies requirements for Quality
Management Systems for the petrochemical,
oil and natural gas industry
• Annex A specifies the requirements for the
API Monogram Program
} Not just limited to:
? the manufacturing of API specification
products or API Monogrammed products
• Total
• Valourec
• Hess Corp
• NOV
• FMC
• Chevron
• Weatherford
• Baker Hughes
• GL Noble Denton
• Transocean
• Cameron
• Halliburton
• Hunting
• US Steel
• Schlumberger
• GE Oil and Gas
• Nippon Steel
• BP
• Wood Group
• TMK
• Tuboscope
• Petrobras
• Shell
• Tenaris
• American Steel Pipe
• Tex Tube
• PDVSA
• Tubacero
• Uses ISO 9001:2008 as the base document
with additional / supplemental requirements
for the petrochemical, oil and natural gas
industry
• 41 Elements are the difference
- That is what makes Q1 STRONG!
19
Records & Control Features
• Referenced throughout standard
• Specific records required
• Records provide evidence of conformity
Quality Policy – Section 5.3
• Reviewed and current
• Framework for objectives
Outsourcing – Sections 4.1 & 7.4
• Must be controlled
• Evidence of process and spec conformance
Design Process – Section 7.3
• Control features implemented
• Evidence that product spec requirements
met
• Design validation & verification complete
• Competent people
• Design Packages must be established for
products
• Design outputs include spec & customer
requirements
• Evidence of review, verification and
validation
• Outsourced design must be controlled
Production Plans & Controls – Section 7.1 & 7.5.1
• Plan processes to ensure conforming product
produced
• Controls address product spec requirements
Processes Requiring Validation – Section 7.5.2
• Product Spec requirements
• API Spec Q1 – Heat treat, NDE, welding
• Includes outsourced processes – Section 7.4.1.3
Customer Satisfaction / Processes – Section 8.2.1
• Must monitor & measure customer satisfaction
• Management reviews & analysis
Internal Audits – Section 8.2.2
• Planned, completed, procedures
• Are product specs part of internal audits?
Corrective / Preventive Actions – Section 8.5.2/8.5.3
• Proactive vs. Reactive with Root Cause identified
} Licensee must comply with API Spec Q1, Annex
A
} Must meet all requirements of the Product
Specification
} Must comply with License Agreement
} Must apply the API Monogram on products in
accordance with Annex A
3 Essential Elements
Quality System
conformance to
API
Specification
Q1
Conformance to
one or more API
Product
Specifications
And the License
Agreement /
Program
Requirements
3 Essential Elements
1
3
2
• Accredited by the American National Standards Institute (ANSI).
• API maintains approximately 550 standards and publications.
• In great demand globally; many API standards have been
adopted by ISO and other regulatory bodies.
API standards are developed through an API organized,
collaborative process that includes users, manufacturers and
technical consultants.
• Series 2: Offshore Structures
• Series 4: Derricks and Masts
• Series 5: Tubular Goods
– Pipe
– Casing and Tubing
– Threading
• Series 6: Valves and Wellhead
Equipment
• Series 7: Drilling Equipment, Bits
• Series 8: Hoisting Tools
• Series 9: Wire Rope
• Series 10: Oil Well Cements
• Series 11: Production Equipment
• Series 12: Lease Production Vessels
• Series 13: Drilling Fluid Materials
• Series 14: Offshore Safety and Anti-
Pollution
• Series 15: Fiberglass and Plastic Pipes
• Series 16: Drilling Well Control Systems
• Series 17: Subsea Production Systems
• Series 20: Supply Chain Management
• Castings, forgings, NDE
• Std 594: Check Valves
• Std 599: Metal Plug Valves
• Std 600: Bolted Bonnet Steel Gate Valves
• Std 602: Steel Gate & Check Valves
• Std 603: Corrosion-resistant, Bolted Bonnet , Steel Gate Valves
• Std 608: Metal Ball Valves
• Std 609: Double Flanged Butterfly, Lug and Wafer-Type
• Std 650: Welded Tanks for Oil Storage
• Licensees for 65 Different Specifications
April 2011
5CT: Casing and Tubing
6D: Pipeline Valves
6A: Wellhead and Christmas Tree
Equipment
5L: Line Pipe
7-1: Rotary Drilling Equipment
7K : Drilling Equipment
16A: Drill Through Equipment
5DP: Drill Pipe
4F: Drilling Structures
IHS Global, Inc.
15 Inverness Way East
Englewood
CO 80112
www.global.ihs.com
303.397.7956
3 Essential Elements
Quality System
conformance to
API
Specification
Q1
Conformance to
one or more API
Product
Specifications
And the License
Agreement /
Program
Requirements
3 Essential Elements
1
2
3
} 42 clauses specifying the license requirements
} Provides buyer with additional protection / remedy
in legal situations with manufacturer
“Licensee agrees that use of the API Monogram on the
products shall constitute a representation and warranty
by Licensee to API and to the purchasers of the Licensee’s
products that the products conform to the applicable
standards, specifications and requirements of API”
OK
YES
NO
AUDIT
PROCESS
Quality
Manual
Review
Process
http://www.api.org/certificati
ons
QM
OK
API
FEEDACK
QMS
OK
YES
YES
YES
N
O
API Spec Q1
Requirements
Addressed? üApplication
üLicense Agreements
üRegistration Agreements
üProduct Info Sheets
üQuality Manual
üFees
API
FEEDACK
API
FEEDACK
N
O
} QMS Conformance with API Spec Q1
} Manufacturing capability
} Meet Program & License Agreement
Requirements
} Provide consistent, conforming products
} Continuous improvements
REQUIREMENTS
• ISO 17021 – Certification body requirements
• ISO 19011 – Audit requirements
• Direction from our technical committees
CRITERIA
• API Spec Q1
• Product Spec Requirements
• License Agreement & Program Requirements
• Advisories
SCOPE
• Products under licensing scope
• Oil and gas industry products / services
• QMS processes required by API Spec Q1
• All processes required to produce conforming
products
QUALIFIED & COMPETENT
• Certified QMS auditors
• Quality management system experience
• Auditing experience
• Technical oil and gas industry experience
• API specification and industry standard
understanding
• Professional referrals
• Completed product specification testing
• Trained & evaluated by Senior experienced API
staff and auditors
API Spec Q1 Requirements
• Records & Control Features
• Quality Policy
• Training and Competence
• Design Requirements
• Outsourcing
• Processes Requiring Validation
• Internal Audits
• Corrective / Preventive Actions
• Customer Satisfaction
Product Spec Requirements
• Product Questions
Manufacturing Capability
• API Audit Report
} Licensee’s QMS is compliant with API Spec Q1
} Licensee is a capable manufacturer and has the
technical capability to meet API Product
Specification requirements
} Licensee has entered into a warrantee with the
purchaser, meaning that products meet the API
requirements
} Licensee can only apply the API Monogram on
products for which they have the license
} Licensee has made a commitment to the industry
to improve
} Spending worldwide over $200+ billion USD
} 50% of the total for most upstream capital
projects
} International Oil Companies want:
– Interchangeability
– Reliability
– Supplier confidence
– Traceability of product
– Timeliness of service
– Accuracy of purchasing
– Defined terms and conditions
– Supplier conformity to contract
requirements
• Applied only by licensee at the licensed
facility
• Applied only when API Spec Q1 & API Product
Spec is met
• Must include license number and date of
manufacture
• Can be applied at any time during the
manufacturing process, but must be removed
if product is found to be nonconforming
• Products shall be marked by stenciling, or a
combination of stenciling and stamping, at
the option of the manufacturer, as stipulated.
• The complete monogram consists of the
following: “5CT,” license number of the plant
doing the manufacturing, the API Monogram,
and the date of manufacture.
} Available on CD and at
www.api.org/composite
list
} Applicable specification
} Product types
• Product
• Scope
• Company Name
• Standard
Required Information
• Company Name
• Street Address
• City, State or
Province and
Zip/Postal Code
• Country
• Telephone Number
• Fax Number
• License Number
Optional Information
• Mailing Addresses
• Sales Telephone Number
• Email Addresses
• Websites
Search by:
• Certifications
• Regions
• Products
• Country
• States (USA
Only)
API Program Overview
• Overview
• Certification Programs
API Monogram Licensing & Q1
• API Spec Q1
• Product Specifications
• License Agreement
The API Audit
• Audit Focus and Requirements
• The Auditors
• Audit Expectations
The Monogram Mark
• Meaning of the Mark
• Use of the Mark
• Composite List
Tim Gonzalez
Sales
Monogram Program / APIQR
gonzalezt@api.org