API Monogram Program Status Report 2014 Standards Conference SC18 Committee on Quality Standards Addison, Texas January 23, 2014 W. Don Whittaker Manager Monogram Program/APIQR whittakerd@api.org Aaron Duke Certification & Audit Program Development Monogram Program/APIQR dukea@api.org

API Monogram Program Status Report Monogram Program Stats Audit Program Update Program Updates Misuse, Fraud and Complaints

API Monogram/APIQR Certified Companies 1-14

4263 Active Certified Companies. 1439 Companies APIQR Certified 3850 Licensed Companies 1439 Companies APIQR Certified 1026 Companies Dual 1-14

API Monogram Licensed Companies 3850 Licensees in 78 Countries China 1522 USA 650 India 228 S. Korea 147 Italy 108 Canada 96 UAE 76 Indonesia 73 UK 71 Germany 58 1-14

Top Specifications 1-14

API Monogram Applications 883 Applications at 623 Companies 1. China 404 2. USA 111 3. India 40 4. Singapore 31 5. UAE 30 6. Indonesia 7. South Korea 24 8. Italy 18 9. Canada 17 10. Romania 13 1-14

Audit Program Status Report 2014 Standards Conference SC18 Committee on Quality Standards Addison, Texas January 23, 2014 Aaron Duke Certification & Audit Program Development Monogram Program/APIQR dukea@api.org

Total Certification Program Audits 3280 Audit Performed Audits by Program Monogram Only – 1390 Dual – 1278 Registration – 555 Perforator, EMS-OHSAS,TPCP – 57 Audits by Country China – 1199 (37%) USA – 592 (18%) India – 167 (5%) South Korea – 110 (3%) Canada – 100 (3%) 1-14

Re-Audits Over 320 Re-Audits in 2013 1-14 10% of all audits in 2013 = re-audits 1-14

2013 Audits Due – Status 1-14

2013 – 2014 Audits 2014 1-14

Audit Program Auditors Audits 153 Active Auditors – 146 QMS-Monogram – 12 in training 2014 Auditor Summit – Shanghai – November 2014 API Spec Q1, 9th Edition Training – USA, Dubai, India, China, Europe Reaching out to third parties to develop resources API Spec Q2 – OHSAS-EMS specific competencies Audits API Spec Q1, 9th Edition started December 2013 API Spec Q2 – Stage 1s for March and April QMS process based audit reports Product questions in place for 53 product specifications MyCerts audit module in place end of Q2 2014 1-14

Program and Product Specification Updates

Program Updates API Spec Q1, 9th Edition Transition API Spec Q2 Audits started December 1, 2013 All Applicant audits to full requirements starting March 1, 2014 Conformity Matrix + Declaration due June 1, 2014 API Spec Q2 Applications received and processing First stage 1s set for March and April 2014 Houston Operations Three Associates based in Houston myCerts 2.0 Currently accepting applications and piloting process Audit functionality – Audit Response – end of Q2 2014 API Spec Q1, 9th Edition / API Spec Q2 Training Master Trainer Sessions – December 2014 Global roll out through API U

Misuse, Fraud and Complaints Overview

2013 Periodic Audit Results 49 periodic audits performed 11 still under review 27 related to product complaints & investigations

Periodic Audits 2013 Periodic Audit Results 7.5 findings per audit 24% re-audit 43% suspended-canceled No “clean” audits

Example of Investigation API performed periodic audits, three facilities cancelled, one suspended Supplier completed jobs without hydro-testing or verifying conformity of product To meet due dates Licensees outsourced work to suppliers, authorizing them to Monogram threads Licensees accepted jobs for Monogrammed product that exceeded capacity Five Licensees outsourcing threading contracts

Current Misuse Issues

Derrick Modification

THANK YOU QUESTIONS? W. Don Whittaker Manager Monogram Program/APIQR whittakerd@api.org Aaron Duke Certification & Audit Program Development Monogram Program/APIQR dukea@api.org