API Q1, Q2 AND API MONOGRAM

The principal Oil and Gas Quality Management Standards are API Q1 Q2 and API Monogram and ISO 29001. The American Petroleum Institute (API) have developed their standards specifically for the Oil and Gas Supply Industry. Subsequently, these standards have become a fundamental part of organised management in this critical industry. The ISO 29001 Standard developed from the API Q1, but links back to ISO 9001: 2015. Today, they share common roots, but have significant differences.

What are API Q1, Q2 and ISO 29001

Several Management Standards apply to Suppliers in the Oil and Gas Industry…

API Q1 is the Quality Management System for Manufacturing Organisations. Only API Assessors can carry out your Certification.

The API Monogram Program applies to Product Compliance. If your business complies to the relevant API Technical Specification, the API Logo can be marked on your products. To qualify for the API Monogram, Manufacturers must, at least, comply to API Q1, although, not necessarily to full certification.

API Q2 is the Quality Management System for Service Supply Organisations and Service-related Products. Consequently, only API Assessors can carry out Certification.

ISO 2900: 2020 is designed to be technically equivalent to API Q1. As an ISO Standard, it is now aligned with ISO 9001. Certification is by UKAS (or similar) accredited Assessors.

Each of the above Management Standards developed from the ISO 9001 Quality Management Standard approach. However, ISO 9001 has been progressively modified over the years. Today, Service Organisations account for over 85% of businesses in the developed economies. For that reason, changes in the ISO 9001 Standard have reduced the manufacturing controls. So, ISO 9001 Quality Management Standard has become more relevant for these Service Organisations. Consequently, the relevance of the ISO Standard for the Oil and Gas industries has reduced.

The API Q1 and API Monogram Programme link to the API Product Technical Specifications. The API Technical Standards developed to restore the balance. They focus on manufacturing activities in the Oil and Gas Industry. For that reason, changes in the ISO 9001 Standard have reduced the manufacturing controls. In particular, they improve product safety, make parts interchangeable, as well as reduce risk and non-productive time.

New opportunities

Certification to the API standards opens a range of new opportunities. To satisfy your demanding customers you need to continuously improve your products and services and meet the requirements of the industry at large. However, Certification is not just about complying to the industry Standards. It goes deeper than that. It is about managing and improving your business to move ahead, to increase your competitiveness. Meeting industry standards through Quality Management is about getting away from the fire-fighting. It is not just about complying, it is about your business success.

API QI is a stand-alone Certification. Alternatively, certification with the API Monogram Program is possible. The latter relates to compliance and certification to the relevant product’s Technical Specification. This approach allows you to choose the best route for your business success.

What are API Q1 and Q2 Certification?

The API Q1 and Q2 Standards are specifically relevant to the Oil and Gas Industry. They stand apart from the ISO Management Standards for the following reasons…

1. API control the Certification. Only API Assessors can assess and recommend a business Certification. This is unlike ISO published Management Standards. ISO does not control the assessment process.
2. API have split the Management Standards between Manufacturing Organisations (API Q1) and Service Supply (API Q2) requirements. Your business can pick the appropriate Standard to help you focus on your business sector.
3. API Standards emphasise product quality compliance more than ISO Standards. This helps your business to reduce risk and equipment failures, service delivery problems and Non-Productive Time (NPT).
4. API can certify a Manufacturer to both the API Q1 Management Standard and the related Product Standard (Technical Specifications). Further, API will allow the Manufacturer to use the API Logo to their product. This is the API Monogram programme. The use of the logo allows your business industry-wide recognition for your quality products.
5. API issue a list of all current API certified Organisations worldwide. Consequently, certification allows your business to have increased visibility and access to global markets.

Commitment…

To achieve API Q1 and the API Monogram or API Q2 approval, Organisations must demonstrate full commitment. The Standards require a focused and systematic approach with fact-based decision making. Ultimately, successful organisations can demonstrate…

• Management commitment to quality.
• External independent API Assessment and on-going Surveillance visits.
• Product and service-related Risk Assessment and Management.
• Quality Design, including risk reduction and critical products.
• Specified requirements for trained, qualified and competent employees.
• Processes approach and working systems are effective.
• Applicable laws and regulation compliance.
• Preventative maintenance, inspection and testing.
• Management of Change process.
• Risk based Supplier controls.
• Identification and investigation of problems with corrective action and effectiveness checks.
• Business monitoring and records undergo continuous improvement reviews.

Consequently, API Q1 and Q2 Quality Management Systems lead to more focussed outcomes than ISO systems in this industry. As a result, API Standards are more specific on the work ‘processes’ and ‘records’ required for compliance, compared to ISO 9001.

Benefits of The API Quality Standards

The Oil and Gas industry faces a range of competitive pressures. Effective management requires a well-structured response to meet the needs of a discerning customer base. Consequently, the API Standards developed to equip your business with an organised management system. As a result, the Standards provide the following benefits…

1. Competitive Standards help you match customer needs in an increasingly competitive business arena.
2. API Q1 and API Monogram provides confidence that your business is…

   – using a properly documented system.

   – ensuring your products fulfil Product and Customer requirements.

   – fully committed to improvement.

   – provides Customer assurance of consistent Product Quality and Delivery.

3. API Q2 gives equivalent confidence for Services and Product-Services.
4. Clients will often specify compliance to a specific API Technical Specification. Consequently, it is easier for you to meet customer and market needs.
5. API Certified organisations join the API’s worldwide certified Organisations List. This prestigious List provides easy access to markets and sales leads.
6. The API Q2 and Q2 are Operational Standards. As such, they ensure maximum focus on your operational processes.

Integrated approach

Without a doubt, API Q1, Q2 and API Monogram provide a systematic and integrated approach to business processes. They provide a clear structure of operating processes, with emphasis on compliance and continual improvement of working systems. As a result, you will gain from reducing errors, duplication, complaints and problems.

API Standards certification is an investment, rather than a cost. Improvements are routinely seen in cost control, better production methods, improved productivity, reduction of waste, as well as better management control. Successful Assessment and Certification is also a business winner. Your improvements will help you retain existing customers and gain new ones.

Why You Need To Meet The API Standard?

API certification is required to be able to supply certain services or products to clients in the oil and gas industry. At CHARTER4 we have many years of experience in both ISO Standards and the API Standards. Given that the situation in this industry if changing fast, perhaps it is time to consider your position with respect to the Standards you are using. Certainly, API is now a critical standard for suppliers. However, at CHARTER4 we also think that your quality management system should be paying you back for your investment. We absolutely believe that your QMS should ‘improve your business, rather than just comply with the Standard. This means getting away from ticking boxes and instead using your system to make your business work more efficiently and more effectively for you and your customers.

If you would like to know more about our approach, or to take greater advantage of your management systems, please contact us. Simply click one of the buttons below and we will help you to move your business forward.