TECH TALK

THE DIFFERENCE BETWEEN SYSTEMS AND PROCESSES

OIL, GAS AND CHEMICALS SERVICE

MARCH 2013

Introduction
For the purpose of this Tech Talk we will refer to a SYSTEM as being what we say we will do and that a
PROCESS is what we actually do. Ideally, our systems and our processes should be identical; however, in
reality they frequently differ as they are driven by different controlling factors. Our systems are typically driven by
the quality standards (ISO 9001, ISO 17025, etc.) that we work to and the various client instructions that we are
contractually obliged to follow. Our processes on the other hand tend to be much more varied because almost
all of our field work is performed at someone elses facility and it is THEIR SYSTEM that drives OUR
PROCESS. This difference between what we say we will do and what we actually do is the leading cause of our
claims and costs us tens of millions of dollars every year.

Immediate Actions

Examples

In most cases there is not a lot

that we can do to impact or
change the systems that are in
place in the facilities where we
work; however, when these
systems impact, conflict or
contradict the instructions that
we receive from our clients (or
international standards), there
are two very import steps that
we must perform in order to
protect ourselves and the
interests of our clients.

The following are some recent

examples of this problem that
have lead to both claims and
major client dissatisfaction. .

First and foremost we must

inform the client of any and
all
limitations
to
their
instructions that are imposed
upon us at the facilities
where we conduct our work.

Secondly,
we
should
request, in writing, that the
facility permit us to conduct
our work in accordance with
our clients instructions. This
would also include situations
where there are physical
limitations of plant and
equipment that prevents us
from carrying out our
assigned duties. In both
cases it may be necessary
to issue letters of protest to
further protect our clients
interests.

a) No matter how good a lab

is
it
cannot
give
representative results on
an unrepresentive sample.
If you cannot obtain a
representative sample from
a tank, as instructed,
because you are forbidden
by
the
terminal
from
ascending to draw samples,
and are limited to one side
arm sample this is not a
representative
sample.
You need to make all parties
fully aware that you do not
have
a
representative
sample, you need to issue a
statement of facts saying
that you requested to draw
the correct sample but
terminal regulations prevented it. Additionally, you need
to tell the customer that the
results on such a sample
cannot be considered as
representative. If you know
this is the case at the time
you accept the order you
MUST tell the customer
about such restrictions, in
writing,
on
the
order
acknowledgement.

b) Not all sample containers

are equal. Glass bottle and
new metal cans are the
preferred sample containers,
as per ASTM / ISO / EI etc.
IN SOME VERY LIMITED
cases plastic (and then only
some specific types of
plastic such as high
density polyethylene) containers may be used for
storage of some grades, but
it is not acceptable for all
grades to be sampled using
plastic containers.
c) Sample handling can have a
profound impact on the
result obtained in the lab.
RVP, H2S, viscosity, flash
point, distillation, pour point,
cloud point, CFPP can all be
impacted by poor sample
handling.
d) Composite samples must be
made up in a lab and
homogenised properly.
e) If
you
accept
an
appointment on a 50 / 50
basis BOTH clients have the
legal right to information at
the same time from the field
and from the lab. Clearly if
one party pays for extra
testing they retain the right
to that data, but if it is joint
data it is not our gift to
decide who gets what,
when.

TECH TALK
THE DIFFERENCE BETWEEN SYSTEMS AND PROCESSES
OIL, GAS AND CHEMICALS SERVICE

MARCH 2013

Conclusion
Please, make no mistake about the way in which business is conducted at the moment and how this impacts
our business.

The margins on deals are very thin

If anything goes wrong the principles are looking to recover the deal by claiming on insurance
The maritime lawyers have made it clear that the expectation is that inspectors, who advertise themselves
as professionals in the field, shall follow standards, norms and instructions to the very letter, and any
deviation is open for claim.
Most claims start at around 100 K USD and go on up rapidly.
Nobody cares at all how many good jobs we do, they just want the money for the bad ones

WE, as well as our direct competitors are very open to a raft of claims. Often these do not even go to arbitration
or court, its a question of settle or we will withdraw all our work worldwide. WE can only defend ourselves if you
stick 100% to the rules

It is not always easy balancing the various interests between clients and facilities but it must be done, especially
when the facility process is clearly in violation of international standards or client instruction. Additionally, we
must not make a bad situation worse by stating that such processes are in compliance and thus making
ourselves both complicit and possibly liable for the consequences of such actions. Do not let someone elses
system drive our processes and do not assume that everyone knows what the local system is, just because you
do. If the facility system is not in compliance with client instruction, let the client know.

TECH TALK
THE DIFFERENCE BETWEEN SYSTEMS AND PROCESSES
OIL, GAS AND CHEMICALS SERVICE

MARCH 2013

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