Publications

Benefits of joint audits to service company and operator

Proceedings Title : Proc. Indon. Petrol. Assoc., 21st Ann. Conv., 1992

Companies operating in the petroleum industry are showing an increasing collective awareness of quality management. The objective of management in any organisation is to identify potential hazards and develop and implement an action plan to eliminate these hazards and associated risk prior to the event resulting in injury, loss of life or damage to property, process and the environment.Joint audits between operating companies and service companies have proved an effective means of developing an objective and realistic proactive approach to risk identification. Joint audits, unlike external audits, enable both companies to develop, implement and monitor a meaningful improvement plan based on factual identification. Audit findings which are classified as either positive or areas in need of improvement are then reclassified into subgroups according to the time frame required to complete the action item.Findings are then analysed to ensure that the internal management policies of the operator and service company are in place and adhered to.To date, the most beneficial point of interest from these joint audits is the reaction of management to translate the audit findings into tools with which to improve and enhance their existing quality management policies and procedures.The paper describes the planning, execution and follow up of an in-depth joint audit. Analysis of the audit results generates action plans to correct areas in need of improvement for both the operating and service companies.Of these areas, most could be corrected and resolved within three months while the remainder are targeted for remedial action to be completed within one yearThe paper provides a thorough set of guidelines for all stages of a successful joint audit and illustrates, with examples, the operational improvements to be gained from such operator/service company co-operation.

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