McYEARWOOD ENERGY-GAS-OIL QHSE AND ISO 9001 CONSULTANTS

Consultant ISO 9001: 2000 PRESENTATION [email protected] [email protected] ISO 9001:2000 QHSE-Audit-Business Planner-Project-Risk-QC/QA Consultant

Page 2 Consultant McYearwood MMC provides a full range of consulting, public and in-house training in international standards, regulatory requirements, and process improvement techniques which maximizes performance and profitability for your company Provides ISO 9001:2000 consultancy in QHSE-AUDIT- BUSINESS PANNING-ECONOMICS-QC/QA Management enhancements, ways and expertises which can support and provide improvement in your organization’s ISO 9001:2000 implementation or transition or other business process improvement activities

Page 3 Consultant PEMIT PETROLEUM-ENERGY-MEDICINE INDUSTRY-TECHNOLOGY DIVISION

Page 4 What is ISO 9001:2000? ISO 9001:2000 is an international standard for implementing a Quality Management System

Page 5 Why Use ISO 9001:2000? ISO 9001:2000 sets out how a company can establish an effective Quality Management System to meet its stakeholders’ needs

Page 6 IS0 9001:2000 Series of Standards ISO 9000:2000 - Fundamentals and Vocabulary Provides an introduction to Quality Management Systems (QMS) and vocabulary ISO 9001:2000 - Requirements Specifies requirements for a QMS where capability to provide product that meets customer and regulatory requirements needs to be demonstrated ISO 9004:2000 - Guidelines for Performance Improvement Provides guidance on using an established QMS to further enhance customer satisfaction and product/service quality

Page 7 Eight Quality Management Principles 1. Customer focus 2. Leadership 3. Involvement of people 4. Process approach 5. System approach to management 6. Continual improvement 7. Factual approach to decision making 8. Mutually beneficial supplier relationship

Page 8 ISO 9001:2000 CCOONNTTIINNUUAALLIIMMPPRROOVVEEMMEENNTTOOFFTTHHEEQQUUAALLIITTYY MMAANNAAGGEEMMEENNTTSSYYSSTTEEMM Management Customers responsibility Satisfaction Customers Clause 5 Measurement, RReessoouurrccee Clause 6 Clause analysis and mmaannaaggeemmeenntt 8 improvement Input Clause 7 Output Requirements PPrroodduucctt Product realization Value adding activities Information flow

Page 9 ISO 9001:2000 Requirements 1. Scope 1.1 General 1.2 Application 2. Normative reference 3. Terms and definition e.g., Supplier Organization Customer

Page 10 Permissible Exclusions Possibility to reduce scope No 9002 or 9003 Can reduce the scope of requirements related to “product realization” May not exclude any requirement that affects ability to provide product and/or service that meets customer and regulatory requirements

Page 11 Quality Management System To meet the requirements you must: Document Implement Maintain Continually improve effectiveness Quality and efficiency enhancement

Page 12 Quality Management System 4.1 General requirements Processes, interaction, improvement 4.2 Documentation requirements General Quality manual Control of document Control of records Knowledge translates into tailored service

Page 13 Management Responsibility 5.1 Management commitment 5.2 Customer focus 5.3 Quality policy 5.4 Regulatory compliance 5.5 Planning Objectives Management system

Page 14 Management Responsibility 5.5 Responsibility, authority and communication Top management emphasis Management representative Includes promotion of customer requirements throughout the organization Internal communication 5.6 Management review Lists of inputs and outputs Recommendation for improvement Action items expected Records

Page 15 Resource Management 6.1 Provision of resources to improve processes and enhance customer satisfaction 6.2 Human resource Determine competence Provide training or other action Evaluate effectiveness of action 6.3 Infrastructure Buildings, workspace, utilities Process equipment Support services 6.4 Work environment Manage conditions of environment to achieve product requirement conformance

Page 16 Product Realization 7.1 Plan and develop the processes Include product objectives, relevant processes and resource, appropriate test and validation 7.2 Customer related processes Customer requirement - stated and implied Statutory and regulatory Product requirements and changes Organization ability Communication with customers 7.3 Design and development Planning, inputs, outputs, systematic reviews, verification and validation, control of changes

Page 17 Product Realization 7.4 Purchasing Supplier evaluation and selection Relevant purchasing information Verification of purchased product 7.5 Production and service provision Controlled conditions including product characteristics, work instructions, suitable equipment, measuring devices, and system Release, delivery and post delivery activities Validation of processes when no other method Identification and traceability of product and it’s status Care of customer property Preservation of product Includes constituent parts

Page 18 Product Realization 7.6 Control of monitoring and measuring devices Calibrated where necessary Adjusted and readjusted Identifies status Safeguarded from invalid adjustment Protected from damage or deterioration

Page 19 Measurement, Analysis, and Improvement 8.1 General Plan and implement Measurement and monitoring processes To demonstrate product conformity, system conformity and continually improve the QMS 8.2 Monitoring and measurement Customer satisfaction Perception of fulfillment Internal planned audit, etc. Auditors independent of their own work Processes Demonstrate achievement of planned results Product Monitor and measure characteristics Conformity with acceptance criteria Waivers / Concessions

Page 20 Measurement, Analysis, and Improvement 8.3 Control of nonconforming product Elimination, concession, preclude intended use 8.4 Analysis of data Customer satisfaction Product and process requirements and trends Suppliers 8.5 Improvement Continually improve effectiveness of the system Corrective action Preventive action

Page 21 The Next Steps Phase I: Assess the present situation Phase II: Plan the implementation / transition Phase III: Implement plan Phase IV: Assess and review Phase V: Consolidate and improve Phase VI: External assessment

Page 22 The Next Steps Phase I: Assess the Present Situation Im plem entation Transition Assess existing Business R e view : System Scope I.D. Steering Team and Existing docum entation Im plem entation Team Assessment system M anagem ent review Prepare and coach Corrective and Preventive team s Action Systems Senior m anagem ent focus Perform ance since registration For com pliance gaps

Page 23 The Next Steps Phase II: Plan the Implementation/Transition Im p le m e n ta tio n T ra n sitio n D e ve lo p : D e ve lo p : P ro je ct P la n O v e ra ll tra n sitio n p la n D o cu m e n ta tio n p la n P la n fo r th o se to p ics T ra in in g p la n n e e d in g a tte n tio n a s a C o m m u n ica tio n p la n re su lt o f th e re vie w P ro ce ss m a p p in g p la n - D o cu m e n ta tio n C a lib ra tio n p la n (e sp e cia lly if e x istin g A sse ssm e n t p la n syste m is n o t p ro ce ss M a n a g e m e n t re v ie w fo c u s e d ) p la n - T ra n sitio n M easurem ent and P la n to im p le m e n t Im p ro ve m e n t p lan p ro ce sse s to fu lfill a n y R e g istra r se le ctio n p la n system gaps

Page 24 The Next Steps Phase III: Implement the Plan Implementation Transition Maintain project plan Map processes is not Provide training identified already Process map the business Measure processes processes Train assessors to assess for business effectiveness Gather metrics data Gather metrics data I.D. improvement issues I.D. improvement issues Publish improvement Publish improvement

Page 25 The Next Steps Phase IV: Assess and Review Assess Review Use internal assessment Use internal assessment to verify compliance and to verify compliance and I.D. business I.D. business effectiveness effectiveness issues issues Share information to gain Share information to gain improvement momentum improvement momentum Start management Continue management reviews reviews (revised)

Page 26 The Next Steps Phase V: Consolidate and Improve Implementation Transition $ Improvement issues $ Improvement issues (process mapping, (process mapping, assessments, customer assessments, customer satisfaction) satisfaction) Change the processes Change the processes Publish gains and Publish gains and success success Close gaps with Close gaps with compliance compliance

Page 27 The Next Steps Phase VI: External Assessment Implementation Transition Optional pre- assessment On going surveillance Registration (increase scope) assessment Upgrading the Business focus existing registration Business focus

Page 28 Summary ISO 9001:2000 is much more project driven Top management have greater accountability The organization is required to measure business performance against objectives If implemented correctly, it will help the organization to: Be more competitive Improve cycle times Reduce costs Improve morale

Page 29 PETROLEUM Petroleum Analytical Services ensures, the correct programmes are applied and calculated results are factored; as the goal towards the client objectives and on-site environment. We utilize a number of techniques to optimize the production process; based on our project review, client expectation and package that may be applied. Integrated Asset and Evaluation Management (IAEM) Integrated Engineering and Project Management (IEPM) Integrated Management Service Oil and Gas Industry (IMSOGI) Well-Energy-Production Enhancement Services (WEPES) We approaches every project, with sound proven engineering practices for measurable results. We are guided by the principles of API, IADC, NACE, ASME, AIChE, IASP, ISO, QHSEE, APPEGGA, OIS, SAP; nothing is routine. Understanding is fundamental to solving complex requirements. Attention to detail to ensures the best results with paramount concern towards material, quality, safety and the environment.

Page 30 ENERGY Energy: Planning involves an important part of the process, we are committed to consult with our client about the Project before commitments. We intend to communicate and consult in an open, honest and approachable manner. Our commitment to a two-way client consultation process includes asking for feedback on consultation process, providing information on project plans, and receiving and carefully considering client input and feedback. 1. Project descriptions, routing, management and location of facilities 2. Energy studies and associated facility development, 3. Land access for construction and related activities, 4. Environmental studies and assessments, 5. Energy management, 6. Noise, 7. Water resources, 8. Soil, land formation, groundwater, geology and permafrost, 9. Natural Resources, 10. Training Studies called environmental and socio-economic impact assessments (EIAs/SEIAs) are required as part of the regulatory application process. We must demonstrate our consideration of the Project's potential impacts and explain our plans for managing them.

Page 31 MEDICINE Medicine: Provide medical programmes, calculate and trace production, product, inventory, costs, marketing and sales to obtain the best results. Medicine Services approaches every project with sound proven practices for measurable results. Understanding the fundamental to solving the client complex requirements. We understand the complexity of the programme by understanding product, equipment, process, service and management to be analysis, best package and best application. In our analysis of the project we will study your process, review specifications; as part of our project design, we identify key parameters to analyze, which gives positive indication that the foulant is being removed. We test for these parameters on a scheduled basis using the latest in in-house management and field laboratory analysis and professional expertises.

Page 32 INDUSTRY Industry: Inspection services ● Start-Up & Commissioning ● Corrosion Management ● Implementation Management● Thermal Insulation Management● Engineering Management● Project Management ● Construction Management The division also operate an unparalleled Integrity and Independent Inspection Authority service, incorporating specialised Inspection Systems to maximise output by minimising production downtime within Risk Based Inspection and Maintenance regimes. All activities are constantly monitored by the company's QHSE department to ensure that the highest standards are maintained at every stage of project execution. We combine quality and safety with experienced management and advanced technical expertise to offer a complete service to industries worldwide. The Industry Division employs experienced, fully qualified level III-V technical support personnel who help the company maintain a competitive edge by constantly monitoring developments in new Industrial Technology.

Page 33 TECHNOLOGY Technology and biological know-how can provide catalysts in the form of globular proteins that drive chemical reactions in the cells of living organisms. As such, they have evolved – along with cells – under the conditions found on planet Earth to satisfy the metabolic demands of an extensive range of cell types. In general, these metabolic demands can be defined as: 1) Transfer of Technology and Management Services 2) Specific action according to class 3) Very fast reaction rates 4) Numerous applications for different tasks 5) Professional Expertises on an international industrial scale 6) Training Enzymes reduce the impact of manufacturing on the environment by reducing the consumption of chemicals and energy, and the subsequent generation of waste. Developments in genetic and protein engineering have led to improvements in the stability, economy, specificity and overall application potential of industrial and medical enzymes.

QHSE-RISK Page 34 Management and Inspection Monitor and Certify Plant and Equipment Safety and QHSE-Risk Management and Inspection, for Oil & Gas, Petrochemical Industries, Offshore facilities, Power Generation (conventional and nuclear), Pharmaceutical, Processing & Manufacturing Plants, Aerospace and Engineering industries worldwide. In order to achieve these objectives, the Company shall: Work with partners, suppliers, competitors, industry groups, and regulators to raise QHSE standards within our industry. Report our performance openly. At a minimum, comply fully with all legislative requirements, and implement stricter standards when those legislative requirements are insufficient. Recognize those within the Company who contribute to improving QHSE-RISK Management performance. Provide suitable and sufficient training for our staff and others such that we have a technically competent staff and an active QHSE culture. Participate in risk management, loss control, and monitoring processes, both internally and with our clients, to provide the assurance that our QHSE Management Systems are functioning correctly and that hazards and risks are assessed and minimized.

QHSE-RISK-PROJECT Page 35 Training

MANAGEMENT Page 36 Training

COST ANALYSIS Page 37 Training

Page 38 QHSE CHARTER The charter has established the following objectives in matters pertaining to Quality, Health, Safety and Environment. We’re dedicated to the protection and conservation of the quality, health, safety and environment of all persons in the community directly or indirectly affected by our Corporate presence. Consideration of safety in regards to operations, human health, respect for the environment and customer satisfaction as paramount priorities. Our commitments are to pursue the highest standards of quality, health, safety, and environmental performance. It is our policy to be in compliance with all applicable laws and regulations within the areas of our operation, to conduct all operations in a manner that promotes safe work practices and avoids risk to our employees, our neighbours, and the environment, and to implement the programmes, training, and internal controls necessary to achieve these goals. Public and Private health and environmental protection is dependent on the full partnership of employees and management and interactions with the community. Success will be accomplished by channelling the abilities of our valued employees towards these goals, and through the implementation of many small solutions to achieve greater results. No development or product launch may be undertaken without prior assessment of risk to quality, health, safety and the environment during the entire life span of the project or product; we encourage community participation and require employee dedication in developing and implementing solutions to prevent environment degradation and the enhancement of information, performance reviews, consultation and training.

Page 39 RISK CHARTER Risk is the chance of uncertainty or loss. In a situation that includes potentially favourable and unfavourable events, risk is the probability that an unfavourable event occurs. Uncertainty is the indefiniteness about the outcome of a situation. Uncertainty includes both favourable and unfavourable events. Risk is a measure of the chance that, due to unfavourable events, the planning, schedule or budgeted cost of a project will be exceeded. Uncertainty Analysis is a process of quantifying the estimating uncertainty due to variance in the estimating models as well as variance in the technical, performance and programmatic input variables. Risk Analysis is a process of quantifying the impacts of the unfavourable events.

RISK & COST Page 40 Analysis CCoosst t==aa++bbXXc c Cost Estimate Historical data point Cost estimating relationship $ Standard percent error bounds Input Cost Driver (Weight) variable

Page 41 RISK FACTORS tb Pr { T ≤ t } = ∑ P (i) , E [ T ] = ∑ t [ P (t) ] u=0 t=a Pr = Project Risk T = Time Delivered i = Insecurity R = Requirement t = Time Scheduled Pt = Probability T = R + t, R = 0

MONTE CARLO Page 42 Methods Monte Carlo Methods provide approximate solutions to a variety of mathematical problems by performing statistical sampling experiments. They can be loosely defined as statistical simulation methods, where statistical simulation is defined in quite general terms to be any method that utilizes sequences of random numbers to perform the simulation. This process involves performing many simulations using random numbers and probability to get an approximation of the answer to the problem. The defining characteristic of Monte Carlo Methods is its use of random numbers in its simulations. One of the most important uses of Monte Carlo Methods is in evaluating difficult integrals. This is especially true of multi-dimensional integrals which have few methods for computation and thus are suited to getting an approximation due to their complexity. It is in these situations that Monte Carlo approximations become a valuable tool to use, as it may be able to give a reasonable approximation in a much quicker time in comparison to other formal techniques. Two of the main reasons why we use Monte Carlo Methods are because of their anti-aliasing properties and their ability to approximate quickly an answer that would be very time-consuming to find out the answer too if we were using methods to determine the exact answer. This last point refers to the fact that Monte Carlo Methods are used to simulate problems that are too difficult and time-consuming to use other methods.

MONTE CARLO Page 43 Integration (2) Multiply value by the interval (b-a) (1) Solving the integral I ( b-a ) N b I = -------- ∑ f ( x ) I = ∫ f ( x ) dx N i=1 i a (4) Mathematical f(x), (Max(f(x)), (b-a)) (3) The variance equation bk ∫ f( x )xd ≈ __ M ( b-a ) 2 aN S=1N 2 --- ∑ ( X - = x ) n-1 I=1 i

MONTE CARLO Page 44 Simulation (5) Mathematical integration (6) Probability distribution bb bc d ∫ f ( x ) dx = ∫ f ( x ) ∫ f ( x ) dx = ∫ f ( x ) dx + ∫ f ( x ) dx a a ____ p ( x ) dx p ( x) aa c (7) Numbers 1, 2, and 3 the mean is 2 (8) m is the mean and N is the number Variance:- 22 2 2 1N 2 (1-2 ) + (2-2) + (3-2) S = ---- ∑ ( x - µ ) -------------------------------- = 0.667 N i=1 i 3

MONTE CARLO Page 45 Project Management Example: Normal CDF • By the Monte Carlo Method is • The approximation of t 2/2 dy n Φ(t) = ∫ 1 -y Φ(t) = 1 ∑ I xi≤t, - ∞ ---- e √2π n i=1 • With (exact) variance Φ(t)(1 − Φ(t))/n • The variables Ixi ≤ t are independent Bernoulli with success probability Φ(t). • Method breaks down for tail probabilities

MONTE CARLO Page 46 Project Management • Simulation from the true density f is not necessarily optimal • The method of an evaluation of Ef [h(X)], based on the alternative representation Ef [h(X)] = ∫ h(x) f(x) dx = ∫ h(x) f(x) g(x) dx , x x g(x) • We generate a sample X1, . . . ,Xn from a given distribution g and approximating m Ef [h(X)] ≈ 1 ∑ f(Xj) h(Xj) . m j=1 g(Xj) • The Strong Law guarantees m 1 ∑ f(Xj) h(Xj) → Ef [h(X)] m j=1 g(Xj)

MONTE CARLO Page 47 Finance Management Monte Carlo Simulation is an important tool for pricing and risk management of complex financial instruments. The reason is that many problems require the numerical evaluation of high dimensional integrals and Monte Carlo can approximate these integrals with expected error O(n−1/2), independently of the number of dimensions. Quasi-Monte Carlo methods, which use points from low discrepancy sequences instead of random numbers, have been found significantly superior to Monte Carlo for many high dimensional problems not only in finance but also in medicine, physics and chemistry. Under weak assumptions, we propose a model for a class of integrands, which can be used for functions in finance, and study quasi-Monte Carlo integration with respect to different covariance matrix decompositions. Our goal is not to dismiss any of the potential benefits of the Brownian bridge, or any other construction, but to point out that the advantages of a method depend on the structure of both the integrands and the sample points. In particular, we show that the worst case error of any two quasi-Monte Carlo methods that use points from the same low discrepancy sequence but rely on different covariance matrix decompositions is the same and, therefore, covariance matrix decompositions are equivalent for quasi-Monte Carlo integration. Id(f)=E[f(x)]=(2π)−d/2 |C|−1/2 ∫ f (x) e−OC−1x, x>/2 dx Rd =(2π)−d/2 ∫ f(Az) e−||z||2/2 dz, Rd

Page 48 PURCHASE Acquisitions and Assessment Providing standards and specifications for Tools, Equipment, Assistance, Machinery, Accessories, Instrument and Material utilized in the PEMIT Divisions and test capabilities for all products prior to delivery. World Class Logistics - Major Engineering Efforts on a joint venture with (Ferguson- Wolsely Group), We shall began the creation of a logistics support process designed to give our purchasing units a critical advantage over the normal logistics available to its competitors in the normal market process. Provide sourcing expertise covering all major MRO commodity areas. Access to a data base covering 385 commodity subgroups and thousands of current transactions with real life pricing. Ability to manage the entire transaction cycle to improve on-time delivery. Channel simplification options for certain commodities to help reduce cost and improve availability. State of the Art Data Collection and Analysis capability and assistance. Have at our disposal MRO experts source and procure in excess of $538 million in material each year covering the full range of indirect material needs, which are monitored for performance against world class standards and objectives. In addition, we shall develop direct sourcing access to a wide range of items from manufactures, not involved with its traditional distribution business and can use these contacts to help companies simplify their external supply channels.

Page 49 MANAGEMENT Management shall integrated its own personnel with management personnel of the Merger/Acquisition/Service Client. Management knowledge translates into tailored service to meet the unique need of our clients. We provide high-quality products and services, cost effectiveness, performance improvements, compliance, and energy risk management. Our professionals have deep- experience in PEMIT, as well as quality-health-safety- environment insight and regulatory compliance issues. Our professionals also have strong experience in assisting our client to select the best system, programme and solution to obtain the optimum results. Management believes that industry experience not only provides quality, it also provides efficiency. In today’s business environment; companies must pursue performance and operational improvements concurrent with other demanding priorities such as risk, cost, and compliance. Our services provide independent and objective client advice on improving decision-making, cost operations, systems and programme effectiveness and the overall performance.

Page 50 Consultant Mervyn Maastricht Carl McYearwood [email protected] [email protected]