Aga quality management best practices roundtable bge supplier quality program
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AGA – Quality Management Best Practices Roundtable BGE Supplier Quality Program. February 14, 2013. Gas Delivery System Overview. Gas Franchise Territory: 3,000 Sq Miles Serve Customers in 9 Counties & Baltimore City. Material Quality.

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Aga quality management best practices roundtable bge supplier quality program

AGA – Quality Management Best Practices RoundtableBGE Supplier Quality Program

February 14, 2013


Gas delivery system overview

Gas Delivery System Overview

  • Gas Franchise Territory: 3,000 Sq Miles

  • Serve Customers in 9 Counties & Baltimore City


Material quality

Material Quality

  • Ensuringquality of pipeline materials and installations are becoming a strong focus of PHMSA, NTSB and legislative action

  • Materials quality is critical to ensure the systems safe operation

    • Usually the first questions asked in incident investigation

    • Materials records (traceability) and basis for use

    • “Prudency”


For operators utilities

For Operators/Utilities

  • The life of the facility records – includes materials : due diligence

  • Material in-field performance is essential to long term system safety

  • Public expectation of reliability


Bge established the supplier quality program in 1997

BGE established the Supplier Quality Program in 1997

Focus was on:

  • Reduce regulatory risk

  • Reduce material failures

  • Consistent supplier performance measures

  • Reduce waste/rejections

  • Optimize total cost of operations

  • Establish supplier relationships


Sqp building blocks road map

SQP – Building Blocks“Road Map”

  • Material Stratification:

    • Risk

    • Criticality

    • Economic

  • Material Standardization

  • Supply/Value determination – 80/20

    Focus on Critical Suppliers


  • Supplier material quality management program components

    Supplier/Material Quality ManagementProgram Components

    • Manufacturers quality program

      • Audits, sampling rates, certification, acceptance levels, etc.

  • Code compliance certification

  • Product performance testing/measurement

    • Failure analysis, corrective action

  • Manufacturing processes (JIT, lean, etc.)

  • Supplier plant auditing


  • Supplier quality program some of the hard stuff

    Supplier Quality ProgramSome of the hard stuff -

    • Management support – there will be cost and relationship pressures

    • Long term focus

    • Critical coordination between engineering, field forces and purchasing – equal partners


    Sqp results at bge

    SQP – Results at BGE

    • Material standardization

    • Supplier consolidation

    • Reduced incoming product inspections

    • Lower inventory – costs

    • Lower total costs – material spend

    • Increased service level

    • Reduced OQ scope for materials

    • Closer supplier relationships – support

    • Finding issues before they “hit the field”


    Sqp program observations

    SQP - Program Observations

    • Time for culture change

    • Better procurement efficiency

    • Field force confidence

    • Market insight – planning

    • Training – standardization

    • Must have a strong audit program

      • Trust but verify

      • Include outside testing

      • Ensure credentials of utility auditors


    Sqp recent implications

    SQP - Recent Implications

    • Material traceability

    • Component origin – certification

      • Buy America Act (FHWA)

  • System records

  • Field inspection – construction quality

  • Manufacturing /ownership changes

    • Locations/plants/consolidation

    • Outsourcing

    • Specifications (outside of code)


  • Communication industry awareness is key

    Communication & Industry Awareness is Key

    • The current marketplace is dynamic and global

    • Monitor the marketplace – stay plugged in

    • Develop strategies for international sourcing with regulatory compliance assurance

    • Keep specifications current

    • Contract flexibility

    • Always remember – we own the safety of our systems


    Bge sqp

    BGE - SQP

    • Some statistics

    • Q&A

      Thank you

    • Steve Troch – Manager of Gas Compliance ([email protected])

    • Joe Opert – Principal Engineer of Gas Engineering ([email protected])


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