IACET - 5615750
Service Supply Organization Control
The API specifications only pertain to the Service Supply Organization, not the Operators. ROIP™ puts more control with the Service Supply Organization to manage and mitigate their risks. It allows the Service Supply Organization to self-declare their level of compliance through certified auditors, which is validated through a planned surveillance with a 3rd party approved provider.
This program allow the Service Supply Organization to change their level of compliance based on the business and risks. For example, a Service Supply Organization, who has a fully compliant API Q2 system in place at a facility, may not wish to maintain that if they lose all of their contracts through the loss of rigs in the current market condition. The Service Supply Organization may need to move capital equipment, service related product, and key personnel to other facilities and other regions to support business. This obviously changes the level of compliance and needs to. If a supplier were to certify every facility, this would not only be extremely costly, but they would not be able to maintain those certification when such drastic changes are made, which occurs routinely in the Upstream side of the Petroleum and Natural Gas Industry.
This is not the case for manufacturers; they maintain and ship product globally, regardless of their location, but service companies and drilling contractors, move their equipment, camps, service related product, and personnel based on contracts. ROIP™ allows the company to maintain the right level of control based on business while ensure that risks are mitigated to the operators.
ROIP™ delivers a strong Return-on-Investment (ROI) for Service Supply Organization and Operators. ROIP™ gives the Service Supply Organization ROI through a reduction in losses associated with efficiencies, rework, scrap, Non-Productive-Time (NPT), downtime, personnel injuries, planned and unplanned business interruptions, supplier returns and other process related problems that cost the service providers hundreds of thousands of dollars a year. ROI is a benefit to the service Supply Organization resulting from ROIP™. ROIP™ is used to evaluate the efficiency, risks and effectiveness of the organization within the region. In purely economic terms, it is one way of considering profits in relation to the actual cost of the program. ROIP™ provides a snapshot of quality assurance which results in profitability. Marketing decisions and advantages have obvious connection to ROIP™. For Operators, the level of recognition shows the level of controls and risk mitigation measures in place for a region compared to other Service Supply Organization.
API Q2 certification does not provide such assurances alone. Auditors are only authorized to check if controls meet minimum requirements during an API Q2 Certification Audit. A Service Supply Organization could certify two facilities in the same region on the same service line and pass the certification audits while doing something completely different or not following the corporate management systems. This is because certification is only facility specific and whatever the Service Supply Organization shows the auditor is what the auditor takes into account. This promotes inconsistency throughout the region, increases variables and risk, all of which were core business drivers that API Q2 was meant to minimize. ROIP™ is a program that is used to implement API Q2 beyond the facility, ensuring consistency throughout the region for all of the controls called out in the specification. In addition ROIP™ takes into account the many other API and ISO specifications and Industry best competency programs, such as those accredited by IADC.
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ID - D1113792
Advantage for both Operators and Service Supply Organization
Service Supply Organization Advantages & Assurance
The Regional Operational Integrity Program (ROIP™) defines the program’s requirements for Service Supply Organization (Service Providers and Drilling Contractors) for the petroleum, and natural gas industries. It is intended to apply to the execution of upstream, services in Petroleum and Natural Gas Industry. This is by far the most robust Compliance Program in the Industry; recognizing APIQR Certification, IADC Competency Programs, and ISO standards within a region. The program is designed to work with the following standards and specifications:
API Q1, Latest Edition, Specification for Quality Management System Requirements for Manufacturing Organizations for the Petroleum and Natural Gas Industries
An organization may enroll in the program to any one or a combination of the above standards for a specific service line(s) within a defined geographical region.
Regional Operational Integrity Program (ROIP™) for Petroleum and Natural Gas Industry
Wollam Petroleum Advisory Group, LLC (WPAG) © 2014 | All Rights Reserved
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There are multiple advantages to Operators, Service Supply Organizations associated with the Regional Operational Integrity Program (ROIP™) over the individual certified location.
First, an organization has demonstrated deployment, implementation and sustainment of a certified management system in a consistent and sustainable way throughout the region, regardless of who they service. Operators will have a higher level of confidence that the Service Supply Organization has control over their services and service related product and that they have identified and are controlling the risks associated with the services and service related product throughout the region, from manufacturing to well site execution.