SPE-192511-MS

ESP Runlife Improvement through Auditing of ESP Workshops

Tamer Edries, Eid Sayed, and Mahmoud Abuelneel, Khalda Petroleum Company; Ibrahim Gahlan, Jeff Dwiggins,
and Chase Dwiggins, Artificial Lift Solutions Pte Ltd; Safwat Ghazaly, Egyptian General Petroleum Corporation

Copyright 2018, Society of Petroleum Engineers

This paper was prepared for presentation at the SPE Middle East Artificial Lift Conference and Exhibition held in Manama, Bahrain, 28-29 November 2018.

This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents
of the paper have not been reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect
any position of the Society of Petroleum Engineers, its officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written
consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may
not be copied. The abstract must contain conspicuous acknowledgment of SPE copyright.

Abstract
A continuous process improvement programme was undertaken to further enhance electric submersible
pump runlife in Egypt. Certain improvements had previously been achieved. However the process
improvement team noted that suppliers systems did not remain consistent and that an ongoing effort for
improvement must be achieved. This paper presents the audit teams efforts to implement a system for
continual process improvement. This system that has been put in place will yield ongoing ESP runlife
improvement.
The initial step of the process calls for a detailed system review. This required a team of 4-6 experienced
auditors broken into working teams. Each of the suppliers processes are carefully audited in detail. From
this effort, a detailed list of findings is developed that leads to a corrective action plan. The corrective action
plan requires routine feedback (typically monthly) on goal achievement.
The process calls for setting goals, verification of goals and ongoing corrective action plans. Where
warranted, these process improvements will be pushed deeper into the supplier's organization to ensure that
these improvements are maintained on an ongoing basis. The method for completing this process is through
a detailed auditing system. Through the auditing process, significant improvements have been achieved that
have led to ESP runlife improvement.
EGPC, Khalda Petroleum and Artificial Lift Solutions have developed a unique process for auditing and
ensuring process improvement.

Introduction
EGPC and Khalda Petroleum expect nothing less than products and services of the highest quality and
it is incumbent upon all manufacturers and service providers to assure that this expectation is met. A
proven technique for checking whether Manufacturing and Service Center systems/processes are in control
is an audit. An audit is a comprehensive inspection of a process to determine whether it is performing
satisfactorily. To insure effective quality, health, safety and environment (QHSE) control, Manufacturing
and Service Centers should conduct internal audits and undergo external audits by QHSE system certifying
organizations. Before entering into business transactions with a company, operators want to be sure that
the company has an effective QHSE system in place. Although a company may have QHSE certifications
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from external certifying organizations, this does not guarantee that the company is capable of providing
quality products/services in a safe, healthy and environmentally sensitive manner. To obtain this assurance,
the operator will normally want to conduct a QHSE audit themselves or they may nominate a third-party
inspector to conduct or participate in such an audit. It is imperative that the auditing group be experienced
and qualified to conduct such audits.

Objective and Purpose of the Procedure

The objective of this procedure is to provide a standard approach and methodology through which operators
and/or third-party inspectors can conduct thorough and effective Manufacturing and Service Center audits.
Although the primary purpose of the audit is to provide the operator with assurance that the audited
company can meet its contractual obligations and provide quality products/services in a safe, healthy
and environmentally sensitive manner, the auditable unit should perceive this as a positive process that
supplements their own QHSE efforts and provides additional benefits to their operation, i.e. it:
a. Assures that the company’s actual practices comply with their written procedures (what they say
is what they do).
b. Uncovers inaccuracies so they can be quickly corrected.
c. Reveals the consistency of a process (from person to person, or day to day).
d. Demonstrates a proactive approach to process improvement.
e. Encourages ongoing corrective action and continuous improvement.
f. Clarifies the operator’s requirements and expectations.

Scope of this Procedure

It is the intent of this procedure to provide details of the audit process and the necessary documentation to
perform comprehensive QHSE audits for Manufacturing and Service Centers. The procedure specifically
covers audits of the Quality and Health, Safety and Environment (HSE) Management Systems.The
procedure also covers Manufacturing Process Procedural audits.
A good audit requires:
a. Planning and clear procedures. A manufacturing audit is more than just walking into a work area
and looking for trouble.
b. Trained auditors. Auditors should be familiar with both the area they are observing and with
auditing techniques.
c. Announcement in advance. Audits are not meant to catch people doing something wrong. On the
contrary, during an audit you hope to catch people doing things right.
d. A rating scheme to classify problems discovered. A rating scheme provides a means to rank
problems in order to prioritize corrective actions.
Critical – Finding has a direct impact to ESP run life or is classified as a hazardous operation.
Major – Finding is a significant deficiency that has potential to negatively impact ESP run life.
Minor – Finding was not within specification (requires modification).
e. Corrective action when a problem is discovered.

Planning the Audit

Proper planning is critical to the success of the audit. Before announcing the audit, the audit team members
should discuss and agree on the primary objective of the audit and what each audit team member hopes to
achieve. For example, one audit team member may be primarily interested in the health and safety aspects of
the audit whereas another audit team member may be interested in the production capabilities of the facility.
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While it is preferable for the audit team members to meet and prepare their plan, if necessary this can also
be accomplished via email and telecom. Although this procedure provides the necessary documentation and
checklists to cover the general QHSE aspects of the audit, individual audit team members should prepare
their own "Punch Lists" (lists of questions) pertaining to their specific areas of interest to insure that they
come away from the audit with their questions/concerns fully addressed. While the focus or objective of
audits may vary anywhere from determining the operational readiness of a service center to a complete QMS
audit to confirm the competency of a manufacturing plant, this procedure should provide the guidelines and
documentation to cover the full range of objectives.

Determining the Members of the Audit Team

In many cases the audit team will consist of personnel from the particular area or region where the audit
is to be conducted. For example, a "Management System, Compliance and Operational Readiness" audit
conducted in West Texas may have an audit team including the local Production Engineering Manager and/
or Production Engineer, an HSE Representative and an ESP Specialist (in some cases this role may be filled
by a consultant with an extensive background in ESP manufacturing/services). Ideally the audit team should
be made up of individuals who have audit experience, but are also generally familiar with the technology
and processes to be audited. It should be mentioned here that the number of personnel on the audit team
and their areas of expertise will have a direct impact on the efficiency of the team and the time required
completing the audit. For example, if the audit is to be performed on a large manufacturing plant, it is
recommended that the team consist of at least one or two members with extensive QMS and HSE experience
and one or two members with extensive product and manufacturing process experience. This will facilitate
conducting the QMS/HSE and Manufacturing Procedural audits simultaneously and will reduce the overall
time required to complete the audit.

Scheduling and Announcement of the Audit

Prior to sending a formal announcement letter, the audit team should communicate with the auditable unit
and reach agreement on a suitable timeframe for both parties within which the audit can be conducted. This
may be discussed personally or via email or telecom. Once the timeframe has been agreed upon, the audit
team should send a formal announcement letter to the auditable unit detailing the following:
a. Scheduled date(s) / time-frame of the audit.
b. Purpose of the audit
c. Type of audit(s) to be conducted.
d. Request for auditable unit to identify a person to act as a single point of contact to facilitate the
audit, i.e. an "Auditable Unit Contact".
e. Request that the "Manufacturing or Service Center Audit Workbook" be completed and returned
to the audit team leader before the audit by the specified date (ample time should be given to the
auditable unit to properly complete and answer all questions in the workbook).
f. Commencement time of the opening meeting, input expected from the supplier and commencement
time of the closing meeting.
Appendix A provides The Manufacturing and Service Center Audit Workbooks.

Auditable Unit Contact Responsibilities

The audit will be most effective if the auditable unit supports the audit program from preplanning to closure.
To facilitate this, the auditable unit should name a representative to act as liaison to the audit team. The
responsibilities of the named representative are substantial and he/she should be allowed sufficient time to
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fulfill his/her role. The attached file in Manufacturing and Service Center Workbooks provides details of
the Auditable Unit Contact’s responsibilities. As mentioned in above, the workbook should be sent to the
supplier along with the audit announcement letter.

Pre-Audit Questionnaire
Before the audit team actually visits the auditable unit, a significant amount of preparation is required to
insure that the audit team is well prepared for audit. There are a number of questions that will need to
be answered by the auditable unit pertaining to personal protective equipment (PPE) requirements for the
audit team, general information about the auditable unit and details about their current QMS/HSE systems.
A substantial amount of documentation will also need to be provided to the audit team before the audit.
To facilitate this, detailed pre-audit questionnaires will be provided to the auditable unit well before the
audit to allow them sufficient time to complete them and return them to the audit team with all requested
documentation. The required questionnaires and details of the documentation required are included in the
attached Manufacturing and Service Center Audit Workbooks.

Manufacturing and Service Center Audit Workbooks

The Manufacturing and Service Center Audit Workbooks provide a means to collect and maintain all
required audit related documentation together in a single, well organized file. Two separate workbooks have
been developed to address the different size and scope of audits to be conducted at Manufacturing and
Service Centers. The workbook contains the following documentation:
1. Audit Workbook Instructions
2. Auditable Unit Contact Responsibilities
3. Quality Management System (QMS) and Health Safety and Environment (HSE) Audit Summary
4. QMS Questionnaire
5. HSE Questionnaire Form 1
6. HSE Questionnaire Form 2
7. QMS and HSE Audit Agenda
8. Auditable Unit Corrective Action Plan
9. Opening/Closing Meeting Agendas and Attendance Lists
As mentioned above, the workbook includes a Pre-Audit Questionnaire (HSE Questionnaire Form 1)
which is used to provide necessary information to the audit team before the scheduled audit date(s). A brief
summary of the necessary information is as follows:
a. Auditable Unit key personnel names and contact information.
b. Employee and contractor staffing levels.
c. List of required documentation, e.g. organization chart, facility layout, procedures and etc.
d. General information such as scope of auditable unit’s operation, special operations (e.g.
construction projects) scheduled during the audit and etc.
e. Audit team member requirements such as specialized training, PPE, local customs to be observed
and etc.
f. Details of regulatory action the facility may have been subjected to within the past three years.
The workbook also includes detailed Pre-Audit Questionnaires (QMS Questionnaire and HSE
Questionnaire Form 2) designed to provide the audit team with the auditable unit’s self-assessment of their
compliance with QMS and HSE standards. During the audit, the audit team will also use these documents as
SPE-192511-MS 5

checklists and will rate what they consider to be the auditable unit’s compliance with each element. Copies
of the Manufacturing and Service Center Audit Workbooks are attached.

Audit Agendas
To insure that all objectives of the audit are achieved within the scheduled time-frame, agendas should
be developed and followed for the opening meeting, the QMS/HSE audit, the manufacturing and repair
process audits and the closing meeting. Proposed agendas are provided (QMS and HSE Audit Agenda),
and (Meeting Agendas and Attendance Lists) in the attached Manufacturing and Service Center Audit
Workbooks. These agendas are only intended as examples and may be changed depending on the number
of audit team members and the time available to conduct the audit.

Conducting the Audit

Conducting the audit primarily involves gathering the information required to determine if the auditable
unit has developed and is adhering to systems/processes which will insure they can meet contractual
obligations and provide quality products/services in a safe, healthy and environmentally sensitive manner.
This information is normally gathered by reviewing documents and records, talking to employees, analyzing
key process data and observing processes in action. The focus of this activity is to gather evidence that
the process is functioning as planned in the QMS, HSE and Manufacturing Systems, and is effective in
producing the required results. The Audit Team should seek to not only identify areas that do not have
evidence that they are functioning properly, but also to point out areas of processes that may function better
if some changes are made. Checklists should be used by the audit team members as roadmaps throughout
the audit process. The attached Manufacturing and Service Center Audit Workbooks provide checklists for
the HSE portion of the audit (HSE Questionnaire Forms 1 and 2) and for the QMS portion of the audit
(QMS Questionnaire). Checklists for the Manufacturing and Service Center Process portion of the audit are
provided in the attached Manufacturing and Service Center Process Workbooks.

Communicating the Results of the Audit

After completing the audit, the audit team members should have a closing meeting with the auditable unit
team members to review the preliminary results of the audit. This is normally done in the closing meeting
prior to the audit team’s departure from the facility as detailed in (Meeting Agendas and Attendance Lists)
of the Manufacturing and Service Center Audit Workbooks. It should be stressed in the closing meeting
that these are only preliminary findings and a detailed Audit Results Letter will be prepared and sent to the
auditable unit team leader within a specified time-frame. The auditable unit will then be required to provide
a corrective action plan (CAP) concentrating on the root cause(s) of the findings and addressing systems
or programs to prevent reoccurrence of the issue. It is recommended that the time frame for the audit team
to complete and send the Audit Results Letter to the auditable unit should not exceed two weeks and the
time-frame for the auditable unit to complete and return the CAP to the audit team leader should also not
exceed two weeks.

Auditable Unit Corrective Action Plan (CAP)

To insure that all of the audit findings are fully addressed within an acceptable time-frame, it is important
that the auditable unit prepare a detailed CAP including the following information:
1. Findings are categorized as Strength (S), Observation (O), Non-Conformance (NC) and
numerically identified. The definition of these are as follows:
a. Strength: Any item that the audit team views as a strong point for the operating unit.
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b. Observation:Any item that the audit team observes as a concern or suggestion, but not
considered a non-conformance. This may also be a recommendation on a process or
procedure
c. Non-Conformance: Any item that the audit team observes as outside of the established
procedure
2. Description of the finding
3. Description of the root cause
4. Actions required to address the finding
5. Person(s) responsible
6. Planned start date
7. Planned completion date
8. Current status (to be updated monthly) and sent to the audit team leader
9. Issues/problems causing delays to corrective actions
10. Completion dates
The CAP should be prepared and provided to the audit team leader within two weeks after the auditable
unit’s receipt of the Audit Results Letter. The auditable unit should provide an updated CAP to the audit
team leader on a monthly basis. The audit team should closely monitor corrective action results and perform
follow-up monitoring to determine if the corrective actions have actually eliminated the problems or if
further action is required. As mentioned above, a CAP form is included in the Manufacturing and Service
Center Audit Workbook.
Appendix B provides an example of a summary for an audit results which was conducted for 4 ESP work
shop suppliers in Egypt.

Conclusion
This ESP Manufacturing and Service Center Audit Procedure has been developed to improve potential audit
team members’ understanding of the requirements and methodology of the audit process. It is designed
to facilitate the efficient assessment of an auditable unit to determine how closely existing management
practices and procedures correspond to QMS, HSE and Manufacturing Process Standards. The QMS and
HSE Standards have been rephrased in the format of simple questionnaires with a three-part scoring system,
as explained in this paper. In this format, even with limited background knowledge of QMS, HSE and
Manufacturing Process Standards, audit team members should be able to effectively review an auditable
unit’s operations to determine how they measure up to the standards.

References
1. Artificial Lift Solutions Pte Ltd audit documents and procedures
2. https://www.google.com/
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Appendix A

Audit Workbook
Audit Workbook Instructions
The following instructions are intended to provide the Audit Team and the Auditable Unit with the
information needed to successfully complete the Pre-Audit Questionnaire Workbook.
The Audit Workbook provides a means to collect and maintain all required audit related documentation
together in a single, organized file. The workbook contains the following documentation:
1. Audit Workbook Instructions
2. Auditable Unit Contact Responsibilities
3. Quality Management System (QMS) & Health Safety & Environment (HSE) Audit Summary
4. QMS Questionnaire
5. HSE Questionnaire Form 1
6. HSE Questionnaire Form 2
7. QMS & HSE Audit Agenda
8. Auditable Unit Corrective Action Plan
9. Opening/Closing Meeting Agendas & attendance Lists
The Auditable Unit must complete the appropriate sections of the workbook as detailed below and
return it to the Audit Team Leader before the audit, no later than the date specified in the Audit
announcement Letter.

Instructions for Auditable Unit Contact Responsibilities

1. The audit will be most effective if the supplier supports the audit program from preplanning to closure.
To facilitate this, the supplier should name a representative to act as liaison to the audit team. The
responsibilities of the named representative are substantial and he should be allowed sufficient time to
fulfill his role. (Auditable Unit Contact Responsibilities) provides details of the designated Auditable
Unit Contact’s Responsibilities.

Instructions for QMS and HSE Audit Summary

1. The Auditable Unit is to fill in Section A; lines 8 - 13 & 17 - 24 and Section B.
2. The Auditable Unit is also to fill in their "Self Audit Score" in Section D based on their responses
to the QMS & HSE Questionnaires.
3. The QMS Rating Scheme ranges from 1 to 3 as follows:
– A rating of 1 indicates that the required process has not been developed.
– A rating of 2 indicates that the required process has been developed but is not being adhered to.
– A rating of 3 indicates that the required process has been developed and being adhered to.

Instructions for QMS Questionnaire

1. The Auditable Unit is to provide a detailed response to each question in each section and rate the
level of their overall compliance with each section based on the rating scheme described above in the
instructions for (QMS & HSE Audit Summary). If the Auditable Unit does not understand the rating
scheme they contact the Audit Team Lead for clarification.
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Instructions for HSE Questionnaire Form 1

1. The Auditable Unit is to respond to each question and provide the listed documentation along with
the workbook before the audit, not later than the date specified in the announcement letter.

Instructions for HSE Questionnaire Form 2

1. The Auditable Unit is to provide a detailed response to each question and rate their level of their overall
compliance with HSE requirements based on the rating scheme described above in the instructions
for (QMS & HSE Audit Summary). If the Auditable Unit does not understand the rating scheme they
contact the Audit Team Lead for clarification.

Instructions for QMS and HSE Audit Agenda

1. The Auditable Unit is to fill in the names of the Process Owners for each QMS & HSE process to
be audited.

Instructions for Auditable Unit Corrective Action Plan (CAP)

1. The Auditable Unit will be required to use this form to fill in, maintain and provide regular updates
to the Audit Team Leader on the status of each audit finding.

Instructions for Meeting Agendas and Attendance Lists

1. The meeting agendas are provided for informational purposes only.
2. The attendance lists are to be filled in during the meetings.

Auditable Unit Contact Responsibilities

Introduction
The audit will be most effective if the auditable unit supports the audit program from preplanning to closure.
Preferably, one named representative from the auditable unit should be assigned as a liaison to the audit
team.

Expectations
The named representative should be allowed sufficient time to fulfill this role. The main areas in which the
auditable unit contact will assist are:

• To provide input regarding the audit scope with team leader

• To confirm/finalize the audit date and duration

• To co-ordinate the completion of the pre-audit questionnaire

• To inform lead auditor of any sensitive issues, local customs and cultural issues that should be
considered during the audit
• To assist with travel, accommodations and meals if required.

• To clarify facility requirements for the audit team with the lead auditor:

◦ Specialized training; (i.e., Offshore Water Survival, Marine Fire Fighting, etc.).

◦ Site Specific Safety Training

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◦ PPE requirements

◦ Restrictions on contact lenses within the facilities

◦ Restrictions on facial hair

• To assist in identifying sources of information/documentation identified before or during the audit.

◦ Below for some examples of information/documentation that may be reviewed.

• Participate in the pre and post audit conference calls if conducted

• To co-ordinate location(s) within the auditable unit for:

◦ The opening and closing meetings

◦ A workroom for the audit team. If possible the workroom should have:
– Telephone with external lines – preferably with a speaker phone
– Flipchart or white board
– Outlets for computer equipment – preferably with access to the internet.
– Copy of the auditable unit telephone directory
– Copy of the requested information as listed in Section 3.

◦ Daily briefing meetings

To arrange orientations, overview of the auditable unit and a tour for the audit team on day
one.
To act as liaison with site personnel for the audit team. This may include:
◦ E-mail or other notification to all auditable unit personnel of the audit date, scope, business
expectations regarding participation, availability, etc.
◦ Assisting with the identification of appropriate people for team members to interview

◦ Assisting with scheduling of interviews

• To participate in daily briefing meetings

• To participate in the opening and closing meetings

• Coordination of the auditable unit’s review of the draft audit report, nonconformances and
communication of comments or concerns to the audit team leader.
• May be responsible for coordinating work on the corrective action plan and other communications
regarding the audit.

Potential Documentation and Other Information That may be reviewed by

the Audit Team during the Audit
The following is a list of possible documents and other information that if applicable, should be available
for review by the audit team during the audit. This list is not a comprehensive list of all documents but some
examples. If documentation or other information is kept at other locations, arrangements should be made
with the audit team leader to allow time for review at the other locations or to have them at the base location
within the auditable unit during the audit.

PLEASE NOTE THAT ALL OF THE INFORMATION LISTED MAY NOT BE APPLICABLE
TO YOUR BUSINESS BUT IS FOR GUIDANCE ONLY. IF DOCUMENTATION IS NEEDED
10 SPE-192511-MS

DURING AN AUDIT, AND A COPY IS NOT AVAILABLE, THIS MAY RESULT IN A NON-
CONFORMANCE.

Health, Safety and Environmental System Documentation

• Health, Safety and Environmental Management System

• Safety and Occupational Health Management System Documentation

• Organization Structure and Responsibilities

• Audit Program and Procedures (Internal and Contractor). Including audit schedule.

• Awareness, Training and Competency

• Safety Meeting Schedule and Meeting Minutes

• Hazard Recognition and Communications

• Incident Reporting and Investigation Procedures

• Sub-Contractor Management Procedures

• Emergency Response Plan (ERP)

• Occupational Health and Environment Issues

– Pollution / Waste Management
– Drugs and Alcohol
– Health Hazard Identification and Control
• Most recent auditable unit audit report, Corrective Action Plans and Status Reports
Safety and Occupational Health
• Register of applicable safety and occupational health regulations and standards

• Document Control and Record Retention Policy

• Training documentation and records

• Employee and Contractor Injury and Occupational Illness Incident Rates (current and previous
year)
• Job Safety Analysis (JSA)

• Hazard Communication Program

• Chemical Safety, Chemical Lists and MSDS’s

• Radiation Safety/NORM Procedures and equipment maintenance records and schedule

• Permit to Work Procedures

• Lock out, Tag out (LOTO) program and procedures

• LOTO permit/authorization forms

• Fall Protection Program, Procedures and equipment maintenance records and schedule

• Lifting Equipment Program, Procedures and equipment maintenance records and schedule

• Contractor safety audits conducted

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• Documentation of contractor injury / illness incidents

• Confined space entry program, permits and equipment maintenance records and schedule

• Shop Safety Program

• PPE requirements, job / exposure assessment (matrix)

• PPE maintenance and care program, procedures and test records

Standard Operating Procedures

• Master list of all procedures and records maintained

• Pump Test Bench procedures

• Seal Test Bench procedures

• Motor Test Bench (Slant Idle) procedures

• Cable testing & repair procedures

• Equipment Assembly procedures (MPIs)

• QA/QC procedures and documentation

• Procedures for inspecting, measuring and testing equipment

• Calibration inspection guidelines and procedures

• Final inspection & testing procedures

• Shipping & handling procedures

• Inventory control procedures

• Management of Change procedure and documentation

• Measuring and monitoring records

• Non-conformance, Investigation and Corrective action procedures and records

Contractual Requirements
• Physical storage of equipment

• Document Control
– Certified drawings
– Maintenance/Repair History
• Service Facility Requirements

• Personnel Requirements

• Reporting Requirements

Other documentation may be reviewed as needed. This could include any relevant documentation within
the auditable unit or links outside of the auditable unit. For example:

• Quality management systems documentation

12 SPE-192511-MS

• Procurement processes

QMS and HSE Assessment Summary

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QMS Questionnaire
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QMS, HSE and Representatives Process Audit Agenda

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Auditable Unit Corrective Action Plan

SPE-192511-MS 21
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Appendix B
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