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SPE 86693

Benefits of an ISO-Registered Management System in Atlantic Eastern Canada


M. Robson, SPE, and J. Parsons, Schlumberger

Copyright 2004, Society of Petroleum Engineers Inc.


Introduction
This paper was prepared for presentation at The Seventh SPE International Conference on Schlumberger offices in the Atlantic Eastern Canada
Health, Safety, and Environment in Oil and Gas Exploration and Production held in Calgary,
Alberta, Canada, 29–31 March 2004. region were drowning under multiple management systems, all
This paper was selected for presentation by an SPE Program Committee following review of
with their own requirements, schedules, and costs. A change
information contained in a proposal submitted by the author(s). Contents of the paper, as had to occur that would meet our clients’ and our own
presented, have not been reviewed by the Society of Petroleum Engineers and are subject to
correction by the author(s). The material, as presented, does not necessarily reflect any expectations of achieving outstanding quality, health, safety,
position of the Society of Petroleum Engineers, its officers, or members. Papers presented at
SPE meetings are subject to publication review by Editorial Committees of the Society of
and environment (QHSE) performance while undergoing
Petroleum Engineers. Electronic reproduction, distribution, or storage of any part of this paper continuous improvement. We were also faced with the
for commercial purposes without the written consent of the Society of Petroleum Engineers is
prohibited. Permission to reproduce in print is restricted to a proposal of not more than 300 challenge of showing payback and value in promoting and
words; illustrations may not be copied. The proposal must contain conspicuous implementing any changes recommended.
acknowledgment of where and by whom the paper was presented. Write Librarian, SPE, P.O.
Box 833836, Richardson, TX 75083-3836, U.S.A., fax 01-972-952-9435.
Atlantic Eastern Canada Management Systems
Abstract The Atlantic Eastern Canada region consists of two
A leading oilfield service provider operates an integrated locations (St. John’s, Newfoundland and Halifax, Nova
quality and environmental management system that is Scotia) in the primarily offshore environment, and one land
International Organization for Standardization (ISO 9001 and base (London, Ontario), offering all the primary oilfield
ISO 14001) registered in the Atlantic Eastern Canada services functions from each base. St John’s had four separate
marketplace. This integrated management system offers International Standards Organization (ISO) 9000/1994 Quality
significant benefits to any company wishing to incorporate the system registrations for Project Management, Drilling &
program. The increased operational efficiency leads to better Measurements, Well Services, and Wireline accumulated over
risk assessment and safer operations. Minimizing the the past 5 years.
environmental impacts of our business not only helps the Each registration had separate manuals, policies,
environment, but also improves our image in the community procedures, and formats with their own audit schedule and
where we work. Improved customer satisfaction helps us to requirements. In addition to four yearly external audits, there
retain or increase our general market share, and we realize were three separate internal company management systems for
increased profitability by increasing efficiency and reducing safety, environment, and QHSE with their schedule for
costs. compliance. Halifax and London had no external management
ISO 9001:2000 is an internationally recognized quality systems but the same three internal systems.
standard that is a “process approach.” ISO 14001:1996 is the In the fall of 2000 ISO 9001:2000, a more service
internationally recognized environmental standard based on orientated Quality Management System was being released.
risk assessment, leading to better environmental stewardship. This change of ISO Quality system was going to drive an
These standards form the basis for the quality, health, safety, update of our registrations, pushing us to the conclusion that
and environment management system, in which an we could combine the current management systems and come
organization’s key activities are divided into their logical up with an externally ISO registered, integrated QHSE
groups or processes. management system (MS) based on the company’s worldwide
This paper explores the benefits and hurdles faced by QHSE MS program.
oilfield service companies when implementing, operating, and The goal we set was tangible QHSE improvement with
registering a quality and environmental management system. lower support costs due to an integrated MS. The first
Also discussed are the key challenges of program challenge we faced in the support cost side was to convince
development, accurate process mapping, and employee buy-in management of the merits of registering and complying with
and participation. external ISO management standards. Objections such as
The management system is maturing after 2 years and has “excessive paperwork,” “high costs,” and “bureaucracy” were
become part of “the way we do business.” Advantages for verbalized. In that atmosphere, in the fall of 2000 we took on
both the service provider and the client are explored that lead the challenge to adapt and register both St John’s and Halifax
to reliable customer satisfaction measures, and improved offshore bases to the integrated standards by the end of year
efficiency for both the service provider and the client. 2001. London registration would wait.
Our first belief was that by adopting and registering to a
proven quality system, it would result in a safer and more
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efficient workplace. Our second belief was that by integrating The basic structure of the integrated MS stayed the same as
all the systems, we could eliminate a substantial amount of our internal QHSE MS for legacy purposes and is detailed in
duplication and support costs in the three existing QHSE Fig. 1.
systems. Our expectation was that QHSE management is good The QHSE MS structure with eight elements brought
and cost effective business. continuity and familiarity to the organization. Continual
Results would be measured through: improvement is built into the system through measurements
• Better Quality, Safety and Environmental results and assessment. An updated QHSE policy and QHSE manual
• Better results would help retain and expand our were then written to meet these integrated ISO standards.
client base From this the organization’s key activities were divided
• Success motivates employees into processes.
The commitments made to management and the A timeline shown in Fig. 2 was developed with identified
organization were the following: tasks and dedicated man months. A critical task was to
• Challenge all duplication in an effort to simplify the MS. identify a cross-disciplinary team to train and develop the
• Minimize documentation and document control issues initial oilfield procedures from the processes that would meet
resident in all MS’s. the standards. Throughout this initial time period strong
• Do not allow the program to permanently build commitment was received from the Canada and Atlantic
overhead costs. management team.
To meet these commitments, the team adopted the Process flow mapping by the process owners allowed an
following guidelines: accurate capture of existing processes. From this visual
representation, process owners were able to recognize
• Use Web-based documentation to minimize document
continuous improvement opportunities. Risk assessments
control issues.
became part of the process to evaluate safety and
• Use legacy systems that are already in place.
environmental hazards and assess the effectiveness of the
• Combine existing internal MS’s, thereby eliminating
controls that were put in place to minimize their occurrence.
significant areas of duplication.
Communication was key to maintaining momentum and
• Remove any support positions created to introduce and acceptance internally and externally with our suppliers and
create the integrated MS within 1 year of initial clients. Existing client QHSE reviews were challenged to meet
registration audits. ISO principals of continuous improvement, risk assessment,
and effective closure. Metrics were identified to key
Integrated ISO Management System performance indicators so we could monitor both proactive
To meet these guidelines, we chose to integrate the ISO and reactive results. Continuous improvement of the processes
9001:2000 Quality Management System (QMS), the ISO would be measured through the development and recognition
14001:1996 Environmental Management System (EMS), and of best practices.
the Alberta Basic Safety Protocol into our existing legacy Making all employees feel part of system required constant
internal QHSE MS. These three management systems are communication and aggressively involving all in the
outlined below. improvement process. Risk reporting with monthly updates to
ISO 9001:2000 is an internationally recognized QMS that monitor incident closure, risk analysis, and hazard elimination
is a “process approach” to achieving continuous improvement. were measured and set up baselines for continuous
ISO 9001 is built on eight quality principals: improvement. The final result had to be a common
1. Customer focus understanding from top to bottom of our goals and objectives.
2. Involvement of people
3. Continuous improvement Deliverables of an Integrated ISO-Based MS
4. Process approach The main deliverable is that the MS is process-driven with risk
5. Leadership assessment, hazard analysis, and continuous improvement
6. System approach to management built in. An integrated MS provides a systematic and common
7. Mutually beneficial supplier relationships approach to managing QHSE risk. Common processes that
8. Factual approach to decision making. contribute to better quality, safety and environmental results
ISO 14001:1996 is an internationally recognized EMS include the following:
based on risk assessment, leading to better environmental
• Job planning, preparation, and service delivery are based
stewardship. ISO 14001 is built on five elements:
around risk and client requirements.
1. Environmental policy
• Documented job risk analysis and job safety analysis
2. Planning
processes on each job lead to defining crew training and
3. Management review
competency matched to job requirements.
4. Implementation and operation
• Incident analysis through root cause with continuous
5. Checking and corrective action.
improvement is tracked.
Alberta Safety Protocol—Certificate of Recognition, a
Safety Management System based on: • Lessons learned and best practices from client reviews are
1. Risk analysis captured and documented.
2. Training and competency for tasks. • The MS is an auditable management system and is
transparent and consistent. Policies are well known and
SPE 86603 3

available to the client brought early familiarity and eased the task of continuous
• Better use of the existing quality, safety, and improvement and retrieval.
environmental database to record all risks, incidents, and
actions to closure. Conclusions
The MS is continuing to mature after 2 years and has
Value and Return on Investment become the “way we do business.” Advantages for both the
The value and return on investment of the MS is seen service provider and the client are realized through improved
through improving efficiency by doing things right the first efficiencies. Results seen over the past 2 years are:
time, and avoiding the costs of failure, in particular repetitive • Incidents and repetitive failures have declined.
failure. The cost of a QHSE incident is defined as the • Risk and hazard reporting has increased
resources that a company must spend to restore the process to • Safety incident rates have improved.
the initial state. Even greater costs are the costs of a poor • Environmental losses were lowered while risk
QHSE record, resulting in loss of morale in the work identification increased.
environment, consequential loss of future business, and Further opportunities to improve still exist. Elimination
associated client losses. The beneficial costs of quality of duplicate reporting in legacy systems by populating all
management include communication, training, and supporting databases when data is entered and a better mechanism to
a safe work environment to meet or exceed capture the quantitative value of efficiency and
agreed requirements. process improvements.
Results
Acknowledgments
The expectation of an integrated management system is
The authors would like to thank Robert Drummond,
being realized. The client scorecards are emphasizing both
Atlantic East Coast Operations Manager and his management
reactive and proactive quality indicators Incident rates are
team for their full support during the planning, implementation
tracked and are improving (Fig 3). Safety incident rates have
and execution of this project.
improved with the increase of risk and hazard reporting (Fig
4). We have been recently recognized for a 10-fold reduction
References
in injury rates since program implementation. On the 1. The ISO 9000 Essentials—A practical handbook for
environmental side, losses were lowered coincidentally again implementing the ISO 9000 Standards, 3rd edition. Authored
with and increased risk identification rate (Fig 5). and Published by Canadian Standards Association, Toronto
We have satisfied our initial expectations that ISO can Ontario Canada April 2001.
become part of a normal, efficient, oilfield service operation.
The increased operational efficiency can lead to better quality,
safety, and environmental results. Independent worldwide
recognition by a registration agency has brought an improved
image in the community where we work with a corresponding
elevated team spirit.
The management team at all levels firmly believes in the
effectiveness of the integrated MS. They demonstrate through
their commitment and leadership the first element of the
integrated MS. Every business decision that is made takes
QHSE implications into account.

Lessons Learned
Lessons we have learned from implementing the integrated
MS include:
• Mapping the process allows organizations to look for
overlaps and to merge opportunities.
• A bridging document must be developed between ISO
and QHSE MS for external and internal navigation.
• Starting on the latest ISO standards even before they were
formally released allowed both auditors and organization
an early interpretation of their needs. ISO 9001:2000 was
only released 2 months before we did our first external
assessment audit.
• Web-based document system addressed document control
issues allowing ease and flexibility of movement and
document retrieval
• Revision level controlled procedures and processes.
• Combining and using legacy databases and systems
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Improvement

Correction

Control

Fig. 1—Legacy QHSE Management System

Fig. 2—Timeline for ISO registration of Management system

Quality Incidents

60
50
40
30
20
10
0
2001 2002 2003 (Oct ytd)

Fig. 3—Customer affecting quality incidents


SPE 86603 5

8 20
Injury and Work day Rates

6 15 Restricted Work

Risk reporting
Rate

Recordable Injury
4 10 Rate

Risk/Hazard
2 5 Entries/Employee

0 0
2000 2001 2002 2003 ytd

Fig. 4 — Improving Safety results with better risk identification

500

400

Environmental
300
Incidents
200 Losses

100
Risks identified
0

2002 2003

Fig. 5 — Lowering Environmental costs with better risk


identification