API Q1 and ISO/TS 29001 A Case Study in Successful Collaboration

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API Q1 and ISO/TS 29001 A Case Study in
Successful Collaboration

• Stacey Hagen, Drilling Materials Sr. QA Advisor
  OCTG Lead
• Chair, API Subcommittee on Quality

2
Overview

• ExxonMobil Background
• ExxonMobils standards strategy
• API Q1/ISO 29001 Case Study
• Conclusions

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Company Background

• Formed in 2000 as the result of the merger of
  Exxon and Mobil corporations
• Now the worlds largest publicly owned oil
  company
• 2006 net income of 39 billion US
• Total liquid and gas production available for
  sale was 4.2 million oil-equivalent barrels per
  day
• Refinery throughput of 5.6 million barrels per
  day
• On March 30, 2007 announced participation in
  Chinas first fully integrated refining,
  petrochemical and fuels marketing joint venture
  with foreign participation
• Agreement between Sinopec, Fuijan Province,
  ExxonMobil and Saudi Aramco

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Standards Strategy

• ExxonMobil has long been active in national and
  international standardization
• Member of the American Petroleum Institute (API),
  the leading oil industry standards developing
  organization since 1919
• Chairman and CEO Rex Tillerson currently serves
  as Chairman of the API Board
• Involvement in ISO activities since 1947,
  providing the chair of TC28, Petroleum Products
  and Lubricants since its inception and holding a
  variety of other positions in TC28 as well as
  TC67, Oilfield Equipment, Materials, and
  Offshore Structures and TC193, Natural Gas

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Standards Strategy

• Participation is based on business / industry
  need
• Resource cost assessed against standards added
  value
• Standards value combination of business
  benefits, priority, and spend
• Provide leadership where ExxonMobil has resources
  and expertise
• Standardization vehicle to improved performance
• Improved safety
• Improved reliability
• Reduce costs and enhanced supplier base

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Standards Strategy

• ExxonMobil participation in Upstream oil gas
• 50 technical professionals actively participate
  on API/ISO committees
• Annual prioritization of standards activities and
  proposals
• Steering team reviews accomplishments and forward
  plans

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API Q1/ISO TS 29001 Case Study

• API has been developing standards since 1923 and
  is recognized as de facto international
  standards1
• Industry undergoes tremendous transformation and
  growth
• 1970s North Sea Discoveries, 1980s frontier
  areas including China, Africa, Middle East
• TC 67 reactivated in 1989, API assumes
  secretariat on behalf of ANSI in 1995
• 1 Standards Competitiveness Coordination for
  Results removing Standards-Related Trade Barriers
  Through Effective Collaboration, US DOC report,
  May 2004.

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API Q1/ISO TS 29001 Case Study

• API Q1, Specifications for Quality Systems
  first published in 1985, two years prior to
  initial publication of ISO 9000 series
• API Q1 and API product specifications form the
  basis of APIs Monogram Program
• API Monogram Program is the leading industry
  conformity assessment program, with 2120 licensed
  facilities worldwide
• China has largest number of licenses issued to
  date, 560

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API Q1/ISO TS 29001 Case Study

• Why does oil and gas industry need more than ISO
  90012000?
• Failure of goods and services can have severe
  consequences
• Need for consistency in manufacturing
• API Q1 contains 9001 text in its entirety and 45
  additional requirements
• Control Features
• Independent Design Review
• Final Acceptance Inspection

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API Q1/ISO TS 29001 Case Study

• Oil industry determined need for a
  sector-specific solution similar to automotive
• Standard to be developed in liaison with the TC
  176 to ensure harmonization
• Q1 was recognized as model for an international
  sector-specific document so that final API and
  ISO standards would be identical

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API Q1/ISO TS 29001 Case Study

• How best to align API Q1 and ISO as a sector
  specific quality standard?
• APIs Subcommittee on Quality proposed a NWI to
  align a revision of API Q1 and the development of
  sector specific quality requirements in March,
  2002
• Draft Technical Specification January 2003
• Publication June 2003

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API Q1/ISO TS 29001 Case Study

• One standard accepted globally
• One assessment / certification body accepted
  globally
• Ensures consistency in audits
• Eliminates variances in interpretations
• Prerequisite for doing business

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API Q1/ISO TS 29001 Case Study

• Conclusions
• API and ISO can work together successfully if the
  vision and commitment is agreed at the projects
  onset
• ExxonMobil and the international Oil and Gas
  industry will continue to push frontier
  boundaries in the search for oil and gas,
  requiring more stringent quality assurance
  requirements
• API Q1/ISO TS 29001 will continue to help the oil
  and gas industry ensure consistency in
  manufacturing and reliability of products.

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• Xie Xie (Thank you)
• Contact Information
• Stacey Hagen
• Drilling Materials Sr. QA Advisor OCTG Lead
• ExxonMobil Global Service Company
• 16945 Northchase Dr
• Houston, TX 77060
• stacey.w.hagen_at_exxonmobil.com
• API www.api.org, standards_at_api.org
• ISO www.iso.org, central_at_iso.org

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Back-Up Slide

• Definitions
• API Spec Q1 Specification for Quality Programs
  for the Petroleum, Petrochemical and Natural Gas
  Industry
• ISO TS29001 Petroleum, Petrochemical and Natural
  Gas Industries Sector Specific Quality
  Management Systems Requirements for Product and
  Service Supply Organizations
• NWI New Work Item
• TC Technical Committee

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Back-Up Slide
Example clause ensures that documented methods
are available for audit
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Back-Up Slide
Example clause ensures independent review of
designs
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Back-Up Slide
Example clause ensures final acceptance
inspection of product