Stop the Line: Q&A with Glen Parkes

How are environment, health, safety and quality standards being enforced at GE India Oil & Gas?

We have an internal philosophy at Oil & Gas built around compliance, environment, health and safety (EHS), and quality called “Stop the Line.” “Stop the Line” is similar to an emergency stop button on a train or on a manufacturing machine: anyone at any time can hold their hand up and say “that isn’t right.” From there, the relevant managers investigate the issue. No product is ever shipped once that theoretical emergency button is pressed and the issue is investigated.

The “Stop the Line” program takes its background from the compliance message that flows through GE Oil & Gas, the Oil &Gas (O&G) compliance mantra from our CEO Claudi Santiago, is that there is only one way to do business, and that is the right way.

In the O&G industry, this practice is in effect with “stop work” procedures, whereby if an individual sees an unsafe practice, he or she can simply walk off-site and raise the issue.

The “Stop the Line” program is less of a procedure and more of a mindset shift from “delivery is king” to compliance. EHS and quality are always more important than delivery.

How has the program transitioned from a program historically based around compliance to EHS and quality?

The success of the compliance program led GE Oil & Gas to try and emulate this in the EHS and quality arena. The global supply chain leader, sourcing general manager and sourcing quality manager have “drilled” it into us to treat EHS and quality the same as compliance issues.

How has GE facilitated a culture that rewards compliance with the “Stop the Line” program?

Historically there has been massive pressure on the Quality team when a part is urgently needed from a supplier, and historically delivery has always taken precedence over quality. However, the global supply chain leader, sourcing quality manager and sourcing quality itself have not only supported us when we stand up and do not ship parts until we are sure that they are good parts, but they also reward individuals who recognize and speak up on quality-related issues.

Specific Case Study: GE India Oil & Gas, Sourcing Quality Team

“Stop the Line” for EHS and quality put into practice

How has the GE India Oil & Gas Sourcing Quality team been a proponent of “Stop the Line”?

In India, we have numerous challenges with our suppliers because India is a developing country. We have some of the best suppliers in the world, but unfortunately also some of the most challenging, in terms of compliance, EHS and quality.

A tier-one supplier we work with had paint capacity constraints and needed to hire a third party to complete two GE projects. Both projects had significant time pressure on them from external customers.

As a part of our process, the second-tier supplier was audited by GE and was found not to have met EHS or quality requirements.

What implications did this have for the projects?

This initially caused further short-term delays; however, the team in India “stopped the line” for EHS and quality and insisted that no GE work would be painted in the second-tier supplier facility until improvements in EHS and quality were made.

How did the first-tier supplier react?

The first-tier supplier insisted that the second-tier supplier meet Indian legal requirements for EHS and the first-tier supplier’s own quality requirements, but the GE team in India was steadfast in their decision to stop work at the second-tier paint facility until improvements were made. On many occasions, the GE requirements go beyond the local in-country legal requirements, but as a global company, we need to ensure that the highest international standards are met, as a minimum.

Can you give an example of a quality or EHS requirement that was not met?

I requested that the painters at the second-tier facility wear personal respiratory equipment.

The first-tier supplier VP responded by stating, “Our operations don’t/won’t wear them. They are uncomfortable and hot to wear. India is a third-world country, and you have to expect third-world standards.”

We made it clear that there would be no relaxation of GE standards and that GE standards supersede country law and project timings.

In reaction, the VP stated, “In view of your decision, we will initiate action to install a fume-extraction system as soon as possible, subject to an early availability.”

What was the ultimate outcome?

Within two weeks, the second-tier supplier made significant and acceptable improvements to EHS and quality requirements. They installed proper ventilation, provided personal respiratory equipment and enforced its use, enhanced the internal lighting, made their electrical wiring safe and secured in the correct electrical box, in addition to many other EHS/quality/5S improvements. We then agreed that they could proceed with the work. They then went on to complete the project very well and without any EHS or quality incidents.