API Monogram Program Status Report 2014 Standards Conference SC18 Committee on Quality Standards Chicago June 14, 2014 Shawn Adams Sr. Associate, Audit Programs Monogram Program/APIQR

1.Monogram Program Stats 2.Program Updates 3.Audit Program Update 4.Misuse, Fraud and Complaints API Monogram Program Status Report

API Monogram/APIQR Certified Companies 1-14

4559 Active Certified Companies Licensed Companies 1534 Companies Certified with APIQR 1061 Companies With Both 1-14

API Monogram Licensed Companies 1.China USA781 3.India224 4.S. Korea147 5.Canada108 6.Italy107 7.UAE97 8.Indonesia79 9.Singapore76 10.UK Licensees in 78 Countries 1-14

Top Specifications 1-14

API Monogram Applications 779 Applications at 546 Companies China USA99 3. India40 4. Canada26 5. UAE24 6. South Korea23 7. Indonesia22 8. Singapore20 9. Italy UK13

Audit Program Status Report 2014 Standards Conference SC18 Committee on Quality Standards Chicago June 19, 2014

1409 Audit Performed Audits by Program  Monogram Only – 585  Dual – 555  Registration – 262  Perforator, EMS-OHSAS,TPCP – 7 Audits by Country  China – 511 (36%)  USA – 330 (23%)  India – 64 (5%)  Canada – 45 (3%)  UAE – 45 (3%) 2014 Total Audits To Date 1-14

Over 169 Re-Audits in 2014 to date Re-Audits 1-14

2013 – 2014 Audits

Audit Program Auditors  175 Active Auditors – including 20 plus in training  Auditor Summits: Shanghai – Nov. 2014; San Francisco – Feb  API Spec Q1, 9 th Edition: Audit report updated  API Spec Q2 ~ 20 competent auditors  API developing lead auditor training and certification programs Audits  API Spec Q1, 9 th Edition started December 2013  API Spec Q2 – Audits being scheduled/performed  Product questions in place for 53 product specifications  MyCerts audit module Summer

Program and Product Specification Updates

Program Updates API Spec Q1, 9 th Edition Transition  Full conformance required June 1, 2014  Conformity Matrices: 3691 received, 1342 delinquent API Spec Q2  Applications received; audits scheduled  Stage 1 audits performed in US and SE Asia  2 audits completed and in the audit review process Houston Operations  Four Associates based in Houston myCerts 2.0  Soft launch scheduled for late June  Full launch – Summer 2014 API-U Training  API SpecQ1 & Q2 Training available globally  Product Spec training in development

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

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

THANK YOU QUESTIONS? Shawn Adams Sr. Associate, Audit Programs Monogram Program/APIQR