The document provides an overview of the Quality Management System (QMS) at NOV Devin. It discusses the history and standards that inform the QMS, including ISO and API. The QMS aims to ensure products and services conform to requirements through documented processes and procedures. It outlines the key elements, clauses, and sub-clauses that make up the system, covering topics like management responsibility, documentation control, purchasing, production, monitoring and improvement. The overarching goals of the QMS are to maintain quality, meet customer expectations, and comply with industry standards.

2. Gulf of Mexico
Quality Management System (QMS) Overview
INTRODUCTION TO
NOV DEVIN OVERVIEW
OF THE QUALITY
MANAGEMENT SYSTEM
(QMS)

3. GoM Quality Management System
(Process-Based QMS Model)

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5. Gulf of Mexico
Quality Management System (QMS) Overview
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6. Gulf of Mexico
Quality Management System (QMS) Overview
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7. Benefits & Objectives of Module
Main Objectives
 Always Maintain Quality at all times
 Continual improvement of NOV’s
products and services
What will participants gain?
Understanding clear expectations of the NOV Devin Quality Management System
What is the importance and our role each of us plays in the Quality Management
System
Recognizing quality and reliability of
NOV’s products and services
What drives quality

8. The Big Picture
Companies spend millions before equipment is placed on location
for a single project!
From the exploration and drilling
segment
 Permits
 Right of Way
 Mineral Rights
 Leases
 Seismic Studies
 International Requirements, etc.
This only accounts for the
upstream segment.

9. It is ALL About Safety, Quality and Efficiency
and doing things on the fly
The 21st Century brings about a new age in exploration,
drilling and production in the oilfield
 Established Standards
 Verifiable traceability
 Accountability
 Consistency
 Repeatability
IT IS OVER!
The old days of the wildcat

10. What We Need to Understand About Our QMS?
By following the processes,
we will meet the needs and
the expectations of our
customers.
perform the daily tasks set to
maintain and ship NOV
products and services to our
customers
How is Control of Processes Accomplished
Say what you do and do what you say
Documenting NOV Devin processes through controlled manuals
Keeping the processes up-to-date
By Maintaining Organized Methods Through Controlled Processes, we will
 Consistently supply excellent equipment
 Always strive to provide excellent service

11. Why should we consistently supply
good products and services?
So we can meet the what our customers expect from us
CUSTOMER FOCUS
So we can maintain our market leadership
COMPETETIVE EDGE
So we can improve our revenue by reducing or eliminating
CONCESSIONS!

12. ISO 9001, ISO 29001 & API Q1/Q2
The Bottom-line purpose for ISO and API is to achieve and
sustain the quality of products and/or services that will instill
Confidence, Commitment, Communication and Trust,
so our Customers realize that quality is being achieved!

13. What if we don’t comply?
Consequences of “NOT DOING” what we say…
• We cannot meet the needs and expectations of our
customers
• Our customers become dissatisfied
• We lose NOV’s market position
• We lose revenue
• We increase costs
• We risk down sizing, includeing headcount reduction
• End results can be CATISTROPHIC!

14. When Quality is Ignored

16. NASA – Challenger Disaster (LOSSES)
The Challenger Incident's Stats:
What is the problem? - Loss of Challenger and astronauts killed.
When did it happen? - January 28, 1986
Where did it happen? - Canaveral STS-51- L Facility
How did it impact the goals? – Safety – Loss 7 astronauts (entire crew)
- Vehicle – Total loss of Challenger STS
- Mission – Total Loss of Mission
- Equipment – Redesign of solid rocket booster joints
- Labor, Time – Investigation, testing
Estimated cost – Insurmisable; just the vehicle was clearly over $1,000,000,000 (billion).

17. Root Cause of NASA Challenger Disaster
Quality Findings:
Root Cause - primary O-ring blow-by (the escape of hot
gas) occurred because the O-ring hardened and did not
fully seal at the low temperatures, and because the
decision was made to launch in low temperatures, despite
the fact that the vehicle was never certified to operate in
temperatures that low. This decision was found to have
been made because of ineffective launch commit criteria.
The presidential commission concluded that the cause of
the challenger was the failure of the pressure seal in the
aft field joint of the right Solid Rocket Motor. The failure
was due to a faulty design, rendering the seal
unacceptably sensitive to a number of factors.
Those factors included the effects of temperature, physical
dimensions, the character of materials, the effects of reuse
and processing, and the reaction of the join to dynamic
loading.
Cost of O-rings to test (estimation only) $100,000.00

19. BP Macondo Disaster (LOSSES)
Potential Price-tag:
Individual Liability 13.9 Billion
Operational Response: $14 Billion
Civil Penalties: $4.5 Billion to $17.6 Billion
Criminal Penalties: $5 Billion to $15 Billion
Environmental Damage: $5 Billion
Human Life:
11 Lives were lost
Oil Spilled:
4.9 million barrels of crude
Transcript:
GORDON AAKER, Mechanical Engineering Consultant:
“Every indication was that the well that blew out was already $10 million over. And to
get caught doing a remedial cement job, and going back in there and doing all this
work, was another $10 million. And that was going to impact them. So they were
cutting corners on an operations side, trying to get by with less.”

20. Quality Findings and Root Cause
1- Improper cement mixture
2- Improper testing of cement setting. (18 hours as
compare to 24 hours standard)
3- Blind Shear Rams- AMF Deadman-(cutting of drill-
pipe) could not cut the pipe totally because of the
bend suspected in the pipe.
4- The blue pod that runs in redundancy with the
yellow pod was found to be mis-wired before
lowering to the sea floor draining the blue pod’s
battery.
5- The yellow pod solenoid was mis-wired leaving each
solenoid instead of working in unison working
against each other leaving the valve paralyzed.
6- The 9 volt battery that operated the computer for the
blue pod failed which did not allow the solenoid to
initiate the valve.
7- No back up on the blind shear rams.
Cost of Root Cause – Estimations Only –
Approximately $500,000.00 if caught prior to disaster.
Root Cause of the Macondo Disaster

21. Gulf of Mexico
Quality Management System (QMS) Overview
The organization which today is known as ISO began in 1926 as the International
Federation of the National Standardizing Associations (ISA). This organization
focused heavily on mechanical engineering. It was disbanded in 1942 during the
Second World War but was re-organized under the current name, ISO, in 1946
The American Petroleum Institute was established on March 20, 1919:
• to afford a means of cooperation with the government in all matters of national
concern
• to foster foreign and domestic trade in American petroleum products
• to promote in general the interests of the petroleum industry in all its branches
• to promote the mutual improvement of its members and the study of the arts
and sciences connected with the oil and natural gas industry.
ISO 9001-29001, API Q1 and API Q2 (QMS Systems)
Brief History of Standards

22. Gulf of Mexico
Quality Management System (QMS) Overview
What is a Quality Management System?
ISO
• The act of overseeing all activities and tasks needed to
maintain a desired level of excellence. This includes creating
and implementing quality planning and assurance, as well as
quality control and quality improvement. It is also referred to
as total quality management (TQM). (Process Related)
Definition
API
• A documented quality management system is established,
implemented and maintained to ensure that products and
services conform to specified requirements. (Process Related)

23. GoM Quality Management System (QMS)
(Purpose)
• This is what happens “IF” we fail to ensure that products and services do
not conform to the specified requirements.
• Documented Processes and Procedures are required to verify that NOV
Devin meets specified requirements.

24. NOV DEVIN
QMS Business Process Model
Plan job according
to NOV Devin and
Customer
requirement
Perform job
according to NOV
Devin & Customer
requirements
Obtain
Equipment per
NOV Devin
external
purchasing
procedures
NOV Devin
Obtain
Equipment per
NOV Devin
internal order
procedures
External

25. Gulf of Mexico
Quality Management System SharePoint Document
Control and Record Management

26. QMS Elements, Clauses and Sub-Clauses
(Section 4) QUALITY MANAGEMENT SYSTEM Requirements
• 4.1 Quality Management System
– 4.1.2 Quality Policy
– 4.1.3 Quality Objectives
– 4.1.4 Planning
– 4.1.5 Communication
• 4.1.5.1 Internal
• 4.1.5.2 External
• 4.2 Management Responsibility
– 4.2.2 Responsibility and Authority
– 4.2.3 Management Representative
• 4.3 Organization Capability
– 4.3.1 Provision of Resources
– 4.3.2 Human Resources
• 4.3.2.2- Personnel Competence
• 4.3.2.3- Training and Awareness
− 4.3.3 Work Environment

27. • 4.4 Document Requirements
- 4.4.2 Procedures
- 4.4.3 Control of Documents
- 4.4.4 Use of External Documents in Product Realization
• 4.5 Control of Records
QMS Elements, Clauses and Sub-Clauses
(Section 4) QUALITY MANAGEMENT SYSTEM Requirements

28. 5. Product Realization
• 5.1 Contract Review
− 5.1.2 Determination of Requirements
− 5.1.3 Review of Requirements
• 5.2 Planning
• 5.3 Risk Assessment and Management
• 5.4 Design Development
− 5.4.1 Design and Development Planning
− 5.4.2 Design and Development Inputs
− 5.4.3 Design and Development Outputs
− 5.4.4 Design and Development Review
− 5.4.5 Design and Development Verification and Final Review
− 5.4.6 Design and Development Validation and Approval
− 5.4.7 Design and Development Changes
QMS Elements, Clauses and Sub-Clauses
(Section 5) QUALITY MANAGEMENT SYSTEM Requirements

29. • 5.5 Contingency Planning
− 5.5.2 Planning Output
• 5.6 Purchasing
− 5.6.1 Purchasing Control
• 5.6.1.1 Procedure
• 5.6.1.2 Initial Supplier Evaluation-Critical Purchases
• 5.6.1.3 Initial Supplier Evaluation-Noncritical Purchases
• 5.6.1.4 Supplier Re-evaluation
• 5.6.1.5 Supplier Evaluation-Records
• 5.6.1.6 Outsourcing
− 5.6.2 Purchasing Information
− 5.6.3 Verification of Purchased Products or Activities
QMS Elements, Clauses and Sub-Clauses
(Section 5) QUALITY MANAGEMENT SYSTEM Requirements

30. • 5.7 Production and Servicing Provision
− 5.7.1 Control of Production and Servicing
• 5.7.1.1 Production
• 5.7.1.2 Servicing
• 5.7.1.3 Process Control Documents
• 5.7.1.4 Product Realization Capability Documentation
• 5.7.1.5 Validation of Processes for Production and Servicing
− 5.7.2 Product Quality Plans
− 5.7.3 Identification and Traceability
− 5.7.4 Product Inspection/Test Status
− 5.7.5 Customer-supplied Property
− 5.7.6 Preservation of Product
• 5.7.6.2 Storage and Assessment
− 5.7.7 Inspection and Testing
• 5.7.7.2 In-process Inspection and Testing
• 5.7.7.3 Final Inspection and Testing
− 5.7.8 Preservation of Product
QMS Elements, Clauses and Sub-Clauses
(Section 5) QUALITY MANAGEMENT SYSTEM Requirements

31. • 5.8 Control of Testing, Measuring, and Monitoring Equipment
• 5.9 Product Release
• 5.10 Control of Nonconforming Product
− 5.10.2 Nonconforming Product
− 5.10.3 Release of Nonconforming Product Under Concession
− 5.10.4 Customer Notification
− 5.10.5 Records
• 5.11 Management of Change (MOC)
− 5.11.2 MOC Implementation
− 5.11.3 MOC Notification
QMS Elements, Clauses and Sub-Clauses
(Section 5) QUALITY MANAGEMENT SYSTEM Requirements

32. 6 Quality Management System Monitoring, Measurement, Analysis, and
Improvement
• 6.2 Monitoring, Measuring and Improving
− 6.2.1 Customer Satisfaction
− 6.2.2 Internal Audit
• 6.2.2.2 Performance of Internal Audit
• 6.2.2.3 Audit Review and Closure
− 6.2.3 Process Evaluation
• 6.3 Analysis of Data
• 6.4 Improvement
− 6.4.2Customer Satisfaction
− 6.4.3 Internal Audit
• 6.5 Management Review
− 6.5.2 Input Requirements
− 6.5.3 Output Requirements
QMS Elements, Clauses and Sub-Clauses
(Section 6) QUALITY MANAGEMENT SYSTEM Requirements

34. END
OF
PRESENTATION
NOV DEVIN
QUALITY MANAGEMENT SYSTEM (Overview)