Quality Management in Gas Operations Survey Responses Gas Utility Best Practices Kickoff Meeting January 16, 2013 Andrew Lu

Definition of “Quality Management” “Quality management is the collection of all quality related activities which includes Quality Assurance work such as auditing and process assessments, Quality Control activities including random sampling of field activities to measure key areas, Investigations of incidents including root cause analyses, and a Corrective Action Program. Quality Management also includes the organization support through dedicated (and appropriately independent) quality focused personnel and the procedures which govern their work.” Sara Peralta, PG&E

Definition of “Quality Management” “Taking a proactive approach to identifying and preventing safety and quality issues - Taking action when safety and quality issues are identified - Continually seeking ways to measure and improve safety and quality performance.” Sheeba Gupta, Enbridge Gas “Quality management is insuring procedures, processes, technology and people work effectively to achieve excellence in safety, compliance, reliability and productivity.” Dan Berry, Vectren

Definition of “Quality Management” “Our company has very strict and regulated quality assurance and quality control procedures, with practices such as field inspections, supervision, and engineering reviews. However, we would define quality management as something beyond this. Quality management, for our company, goes more along the lines of a defined program with reviews and third party audits, along with specified indicators and targets. There may also be procedures and controls in place to improve upon or maintain quality.” (Concealed)

Definition of “Quality Management” “The Southwest Gas definition of quality aligns with the American Society for Quality (ASQ) definition of quality management as a formalized system that documents the structure, responsibilities and procedures required to achieve quality. The Southwest Gas Quality policy is to achieve quality performance right from the start in meeting the requirements of external and internal customers. Quality performance right from the start means understanding who the customer is, what the right requirements are, and meeting those requirements without error, on time, every time.” Bill Palmer, Southwest Gas

Q2: Within gas operations, does your Company have a Quality Management system in place? Main and Service Construction Mark & Locate Leak Survey Leak Repair Leak Investigation/Response Cathodic Protection Incident Review Station regulation Valve Inspection Employee safety Employee Training

Q2: Within gas operations, does your Company have a Quality Management system in place? Operator Qualification Materials Purchasing Engineering Integrity Management Maps/Records Meter shops Meter reading Customer safety awareness Customer call center service Customer requested work

Observations Of the 20 companies responding, a few had every activity incorporated in a Quality Management initiative while most had some, but not all Most common activities covered include: Construction Mark & Locate Safety Customer Call Center “Not really a formal QMS program, but rather indicating that there is quality oversight of these activities listed”

Q: Does your company have staff whose primary function is dedicated to overseeing or managing quality in gas operations?

Q: Provide staffing levels and job descriptions of all those who are involved? QA/QC manager QA/QC specialist QA/QC inspector Welding inspector Materials Engineer Risk Analyst Safety & Compliance inspector QA/QC consultant QA/QC Advisor Compliance Auditor Field Supervisor/ Mgr

Q: Provide staffing levels and job descriptions of all those who are involved? Quality & Improvement Department Gas Quality Lab Quality Control Department Field Operations QA Quality Systems & Auditing

Q: What department(s) do these individuals report up through within your organization? VP of Gas Operations VP of Standards & Policies Operations Technical Services VP of Utility Services Engineering Pipeline Integrity & Engineering Training & Safety Gas Compliance & Training

Q: Does your company have key performance indicators tied to quality and if so, what are they? How often are they re-defined? Mostly “Yes” Tied to number of audits/inspections performed and the findings Industry benchmarks used, depending on topic involved Typically an annul re-evaluation

Q: Is your company working toward compliance/certification to a quality standard? If yes, which one(s) and how do you document your processes in meeting the quality standard(s)?

List of standards provided PAS 55 Certification ISO/TS 29001 ISO/ASQ Standard for materials purchasing ISO 9000, Six Sigma DMAIC, Crosby, Juran, Deming

Q: Has your company received any feedback or directives from your state regulator(s), regarding your Quality Program? If yes, please describe the nature of the feedback or directives.?

Questions/Discussion So is an additional survey or data collection necessary?