1. Monogram/APIQR Program
Started in 1924 as a self-certification program to
API product specifications

2. API Monogram Program
Facilitate the availability of safe, interchangeable equipment and materials for general use in the petroleum drilling and production industry
3 existing licensees had to agree with your self-certification
1985 – API Spec Q1 “Specification for QMS Requirements for Manufacturing in the Oil and Natural Gas Industry

3. Quality Evolution in the Industry
1924
Birth of the API Monogram Program
Self-certification
1985
API Spec Q1, 1st ed. published
Monogram Program transitioned from self-certification to 3rd party verification
Monogram licensees required to meet Product Specification and API Spec Q1
1998
Registration program created
Began ISO 9001 Registration
2003
TC 67 WG 2 started ISO TS 29001
API adopted as ISO/TS 29001:2003
API adds Annex A creating Spec Q1, 7th ed.
API Spec Q1, 7th ed., published to align with ISO 9001
Registration to API Q-Plus launched
2011
API Spec Q2, 1st ed., published for service suppliers
2013
API Spec Q1, 9th ed., published –
No longer formatted as an ISO 9001 document
Introduced new requirements such as risk management, contingency planning and Management of Change (MOC)
Why standards? Without them we have barriers to trade that disadvantages some. With standards, we get fair competition, reliability of products, safety, interoperability, and compatibility.
1924 – Monogram and standards – Self-certification w/recommendation of 3 existing licensees
1926 – ISO began as the International Federation of National Standardizing Associations (ISA) – focused mostly on Mechanical Engineering
Both API and ISA (now ISO) are voluntary organizations
Build Standards through consensus using widely sourced expertise
Equal Treatment through High Standards

4. Monogram License for API Spec 5L, First Edition, January 1928
11 April 1928
Monogram License for API Spec 5L, First Edition, January 1928
3 existing licensees had to agree with your self-certification
1985 – API Spec Q1 “Specification for QMS Requirements for Manufacturing in the Oil and Natural Gas Industry

5. Monogram/APIQR Program Basics

6. What API Certifies Management Systems API Spec Q1/Q2 Registrations
ISO 9001 Registration
ISO Registration
OHSAS Registration
Products and Services
Monogram Licensing

7. Monogram / APIQR Vision
The Unassailable Brand – Renowned for Value and Integrity
Benchmark for Licensing and Certification Programs
Fair and equitable policies and processes for all clients
Postured and Ready for Industry Changes
Lead the Way with Competent and Effective Auditors, Assessors, and Staff

8. The Meaning of the API Monogram
To Equipment Purchasers and End-Users
Verification that the products meet the requirements of the API specifications and standards
Manufacturers have implemented a management system that provides assurances that processes have been implemented to provide consistent, conforming products
Manufacturers have implemented processes and controls to identify and address customer requirements, customer complaints and product issues
A method to trace products back to the original manufacturer, design and performance requirements
A means to report industry product and process issues and nonconformities
Visible identification in the field that a product was manufactured to conform to an API product specification or standard
The API Monogram constitutes a representation and warranty by the licensed manufacturer that, on the date of manufacture, the product conforms to all applicable, current editions of specifications, standards and requirements of API.
To Manufacturers
A way to be recognized by API and industry for product quality
Recognition of their capability to manufacture products that meet API specifications
A means to physically mark and identify conforming product(s)
The Monogram is a warranty that at the time of manufacture, the licensed manufacturer ensured the product met API Specs.
For Manufacturers, the Monogram makes them standout in the industry because it says they are a quality manufacturer who produces product that meet high standards.
For purchasers and end users, the Monogram says:
Product produced by a licensed manufacturer in accordance with API standards
That the product conforms to API standards and API Spec Q1 quality standards
That effective processes and controls are in place to ensure conformance and positive control to protect against non-conforming products
The product is traceable
That processes are in place to deal with non-conforming product
The mark is a visible means of verifying conformance
Monogram License Agreement Mandates Quality Requirements Apply to ALL Products

9. Benefits of the API Monogram Program
Helps equipment users identify suppliers capable of producing products that meet API specifications
Reduces and eliminates the users’ on- site supplier audits
Provides
A formal 3rd party objective review and monitoring system
Provides input to the product subcommittees to changes and improvements to the product documents
Licensees and certificants are in the Composite List
Our audit sends a signal that “we’ve look hard” at this licensee/certificant and their QMS
It provides a formal “3rd Party” review
There is a means for reporting a non-conforming product
There is a mechanism for feedback to the standards subcommittees.

10. What is the API Monogram Mark?
Monogram is:
- Location specific
- Only used on new product with the License number and date of manufacture
Monogram and License number marked on product provides traceability to:
- Original design
- Manufacturing specifications

11. Monogram Requirements
Must implement, maintain and continually improve quality management system (QMS) to meet the oil and gas industry’s QMS specification, API Spec Q1
Monogram Licenses are only issued after an on-site audit has verified that the facility meets the program requirements
Licensees must maintain continued management system conformity to
API Spec Q1; and
Product standard; and
Monogram program requirements in the license agreement

12. Monogram Requirements
To Remain Active: licensee must go through a renewal audit each 3 year period
Composite List: An on-line directory for all licensees, licensing information and licensing statuses
Enforcement: A legally binding agreement between API and the Licensee describes
Program requirements and obligations, including use of the mark
Reporting on nonconforming equipment
QMS conformity with API Spec Q1
Product conformity with the specification

13. Registration Programs – APIQR
QUALITY
API Spec Q1 Registration recognizes manufacturers conforming with API Spec Q1 for API and non-API products.
API Spec Q2 Registration recognizes service companies conforming to API Spec Q2 for service and service related products (beginning January 2013).
ISO 9001 Registration general management system certification covering all products and services for use within the oil and gas industry.
ENVIRONMENTAL
ISO Registration environmental system registration for companies within the oil and gas industry.
SAFETY
OHSAS Registration globally recognized standard registration for occupational health & safety.

14. API Specification Q1 First published in 1985; now on its 9th edition
Quality management system requirements for manufacturers of oil and gas industry equipment
Based on a concept that includes both quality assurance and quality control
Used as one of the audit criteria for the 3rd party on-site verification of the API Monogram Program
All monogram licensees must conform to high standards for quality manufacture.
ISO 9001:2015 is the floor for management systems
API Spec Q1 is the floor for the Monogram program.

15. API Spec Q2
Developed by the industry; Concepts similar to API Spec Q1, 9th edition
Specific to service suppliers in the upstream sector; identifies expectations for execution of services such as well construction, intervention, production and abandonment
Specifies requirements for service and service-related products
Aims to standardize risk mitigation and improve service reliability
Driven by the need for improved service technology and equipment/tool reliability and need for systems to ensure uninterrupted operations

16. Monogram/APIQR Program Status

17. API Monogram and Dual-Licensed Facilities
TOP 10 COUNTRIES
China
1630
United States
706
India
205
South Korea
149
Italy
115
United Arab Emirates
100
Canada 99
Indonesia 85
United Kingdom 73
Germany 60
Includes all Monogram-Only Licensed Facilities plus Dual Facilities.
78 Countries
4097 Licensees
6842 Licenses
76 Specs/Standards
NOTE: Includes all Monogram-Only Licensed Facilities plus Dual Facilities

18. APIQR Certified Companies
TOP 10 COUNTRIES
United States
554
China
516
Singapore 88
Canada 81
United Arab Emirates 65
India 54
Indonesia
Mexico 39
Russian Federation 38
United Kingdom 36
This includes Dual and APIQR only facilities (all facilities with at least 1 QR cert).
EMS Certified = 13
OHSMS Certified = 9
1835 Certified Companies
69 Countries
Total Certificates
3492
API Spec Q1 Certs
1727
API Spec Q2 Certs 71
ISO 9001 Certs
1672
NOTE: Includes Dual and APIQR only facilities (all facilities with at least 1 QR certificate).
EMS Certified = 13
OHSMS Certified = 9

19. Active Monogram Licensees and Licenses

20. API Licensed and APIQR Certified Companies

21. Top Monogram Specifications
Licenses in 76 different specifications and standards
* Please visit the STANDARDS table for additional information on API specifications
Nov 17-20, Shanghai

22. Top Monogram Products Spec Product Number API-6D Ball Valves 720
API-5CT
Threader
653
API-7-1
Threading for Rotary Shouldered Connections
599
API-6A
Flanged Connectors
585
Check Valves
517
Gate Valves
515
API-5L
Manufacturer of Line Pipe Plain End at PSL 1
510
Tees and Crosses
505
Valves
494
Manufacturer of Line Pipe Plain End at PSL 2
452
* Please visit the STANDARDS table for additional information on API specifications
Nov 17-20, Shanghai

23. New Business in 2016
Business Development Team completed a total of 239 new applications*. These applications included:
231 Monogram licenses
93 API Spec Q1
51 ISO 9001
7 API Spec Q2
1 ISO 14001
*Note: one application may contain multiple specs/programs.
Information Snapshot
231 Total applications
383 Specs/programs included
85 – China
302 – USA
Total number of applications down significantly from 2015

24. Audit Program

25. 3rd Party On-Site Verification
Audits to establish manufacturing capability
Three-year audit interval with periodic audits, if necessary
Facilities must meet both API Spec Q1 and product specification requirements
License granted to manufacturers that meet requirements
Even today, debate on new standards includes a discussion about what kind of review, assessment or audit there will be. Will this be “First Party Attestation?” Second Party “Peer Review”, or third party review using an independent auditor.
Monogram Licensees must be a manufacturer and capable of manufacturing the products they are licensed to mark in accordance with API Standards.

26. Audit to Decision Making Process1
myCerts 2
Auditor
Facility 4
Associate
Here is an overview of the review process.
The auditor, you, submits your report and all relevant documentation to myCerts. An API Associate is assigned the audit and reviews the findings as well as the facility’s responses. This information is then weighed against program standards and a decision is made. This decision is then sent to the Licensing and Registration Committee for additional input from other API Associates. If the decision results in an Active recommendation the certificates are issued (if necessary).
However, this process rarely runs so smoothly. There are several areas where inaccurate, incomplete, confusing, or contradictory information can be introduced, complicating the issue. The auditor can provide unclear findings or have produced an incomplete audit report. Facilities can provide responses that don’t address the nonconformities. The Associate can fail to ask the right follow-up questions. Decisions resulting in a Suspension, Cancellation, or Withdrawal of a license must be presented to the entire group of API Associates for a majority decision.
With all these areas of uncertainty and breaks in the proverbial chain, the fidelity and accuracy of the Audit Report is made that much more important. You have more influence than you might think! 3
Group Review (when necessary)
Licensing & Registration Committee
Nov 17-20, Shanghai

27. Active API Monogram/APIQR Auditors
APIQR/Monogram: 142
Active: 127
In-training: 15
Perforator: 12
EMS &/or OHSAS: 20
Q2 Auditors: 30
In-training: 8
In 2014 = 20 audits per auditor
In 2016 = 27 audits per auditor

28. Audit Program – What’s Happening?
Monthly Webinar Training for auditors worldwide
Currently transitioning QMS auditors to ISO 9001:2015 and ISO 14001:2015
Summits
Shanghai China – November 14 – 17, 2016
Savannah GA – February 27 – March 2, 2017

29. API Code of Conduct

30. API Code of Conduct
Promotes integrity, compliance, and equitable treatment for all
Applies to all
Clients must sign off that they have read and understand the Code of Conduct prior to any audit – audit can only be scheduled after this happens
Strictly enforced

31. The Future

32. API Monogram 2020
Planning for the future of the API Monogram Program
Increased audit frequency
Increase auditor training
Specific projects
Add additional value to the industry by changing how and what we audit
Improve efficiency and effectiveness reducing audit review cycle time
Rapidly respond to changing business environment and industry needs

33. API Monogram 2020 Risk-based Auditing
Advance quality programs to meet evolving industry needs
Continue to ensure safer, standardized, high performance and reliable equipment for users
Reduce nonproductive time and nonconforming equipment
Improve confidence in the manufacturing base
Posture for the future

34. Questions ?