Dock-to-Stock Program

Q: Is there a way to implement a dock-to-stock program that complies with API Spec Q1?  

I am being requested to implement a dock-to-stock program for certain part types. I have concern with this because I think it removes our ability to verify purchased product on all shipments.

In reading section 5.6.3 of API Spec Q1, I don’t think we could do dock-to-stock and state that we always verify that purchased products meet purchase requirements (since each PO is different). However, I could be wrong.

Some background on this: Due to Covid-19 and loss of employees we are very short-handed. It is becoming more difficult to keep up with production’s pace.  Our company is pushing for this so that orders are not held up and cause missed runs (aka. money lost).

A: I’ve seen dock to stock programs that land companies in trouble in the form of nonproductive time on drilling rigs, especially for those involved with offshore drilling in deepwater.

Notes:

• A Dock to Stock Program allows product to be received by an organization, but in cases bypasses receiving inspection and allowing product to go directly to storage or to the production floor. The program is typically based upon historic product quality and the level of confidence with any given supplier.
• Deepwater drilling¹ can be anywhere from 450 feet to greater than 10,000 feet below the surface of the ocean.

I recommend that you create a listing of all the items the company wants to include in the dock-to-stock program.

Ask the Engineering Department to prioritize those items based upon their criticality from 1 to 5 or 1 to 10; create a ranking system that makes sense to you.

While engineering may say the parts are not critical, all parts have some criticality especially if they fail during service.

So, the question to engineering is “what is the level of risk that we are willing to encounter?”

Considerations related to risk include, but are not limited to:

• Product failure/replacement cost
• Potential health, safety and/or environmental issues stemming from product failure
• Availability of replacement product and the time it takes to replace the product
• The amount of nonproductive time (NPT) the drilling operators could chargeback to your company

Remember, the deeper the location of the product, the more time and expense it is going to take to replace it.

Once engineering has established a ranking of the products, assign an inspection level to each product ranking level, and assign the inspection / test methods to be used.

The level of inspection should be proportionate to the level of potential risk, including customer perception related to any NPT.

Footnotes:

¹ Wikipedia contributors, “Deepwater drilling,” Wikipedia, The Free Encyclopedia

— Bud Weightman
President, Qualified Specialists, International