Over the past two years, Baker Hughes has undergone an extensive reorganization from 7 independent P&L divisions to 9 cross-product line regional P&L centers. During the second year of this transformation, the acquisition of BJ Services was announced, thus adding to the services and products portfolio. Finally, the events in the Gulf of Mexico in 2010 have created a new level of standards and oversight from government regulators, third-party industrial groups and customers. In many ways, the requirements for Service Quality and HS&E are now converging for certain "Products & Services". In this presentation, we will cover the consolidation of 7+ divisional Quality systems into one operating and Quality Management System (QMS) and the change management process still underway to drive standardized and consistent execution of products and services worldwide. This includes consolidation of "best practice" processes/procedures over the product lifecycle including design, manufacturing, and operations.

Throughout this transformation, our goal has been to be compliant with all required, existing and new, regulatory, third-party (e.g., ISO, API) and customer-specific requirements. The Baker Hughes Operating System (BHOS) will enable flawless execution to help reduce our customers’ operating costs as well as drive internal productivity. As we enter the third year of our transformation, the benefits of the reorganization are now becoming measurable to Baker Hughes and our customers. This presentation will conclude with a summary of the progress to date, the ongoing changes to compliance standards and oversight for products and services due to the Gulf of Mexico, the growing synergies between Reliability, Quality and HS&E.

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