Asset Management and Maintenance Audits

BG 24-12 cover1_guide Cover 19/04/2012 12:21 Page 1 A BSRIA Guide www.bsria.co.uk Asset Management and Maintenance Audits By Ralph Bell and Jo Harris BG 24/2012

ACKNOWLEDGEMENTS This publication replaces two earlier BSRIA publications: AG 24/97 Operation and Maintenance Audits by Rohan Nanayakkara and Mike Smith AG 13/2000 Toolkit for Building Operation Audits by Cary Donaldson and John Armstrong This update was developed with input from industry representatives. BSRIA wishes to thank the following members of the CIBSE Maintenance Task Group for their contributions. John Armstrong Andrew Saville Stephen Gathergood Andy Green Geoff Prudence Neil Ambler Paul Kee Rob Farman Kate McCommick David Robinson Steve Hunter Javier Carnero Armville Consulting Armville Consulting G4S Integrated Services Faithful and Gould UCL Watson and Sole Hurley Palmer Flatt Abacus FM Engineering Consultancy SPIE Matthew Hall Babcock Mitie TFM Mitie TFM Special acknowledgement is given to Ashley Hemmings of Interserve FM for his work compiling the toolkit and willingness to share with the industry. Acknowledgements from AG 13/2000 are reproduced in appendix A. This publication was designed and produced by Joanna Smith. Every opportunity was taken to incorporate the views of the contributors, but final editorial control rested with BSRIA. A limited number of advertising slots were offered to BSRIA member Companies and to those who sat on the steering group for this publication. The advertisements in this publication do not necessarily reflect the views of BSRIA. BSRIA does not endorse the products and services of Advertisers and the technical content has not been influenced by the Advertisers. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic or mechanical including photocopying, recording or otherwise without prior written permission of the publisher. BSRIA 55943 July 2012 ISBN 978 0 86022 710 6 ASSET MANAGEMENT AND MAINTENANCE AUDITS i

PREFACE The issue of effective audits was raised by John Armstrong the author of AG 13/2000 Toolkit for Building Operation Audits in a recent CIBSE maintenance task group meeting. We are very pleased to be able to update this guide and make the toolkit available to the industry. I ll take this opportunity to apologise to Ashley Hemmings of Interserve FM, as he approached me over two years ago with his conversion of the original checksheet into a useful toolkit. We have been using the toolkit in earnest for two years, as has Ashley. It has been developed over the last 5 years on PFI projects within Interserve and trialled in the banking, arts and printing sectors. Between us we have now produced this guidance and toolkit that is easy to use, streamlines the audit process and allows you to track progress and capture the results effortlessly. The audit results can be used to benchmark performance and it is the intention of BSRIA to facilitate this benchmarking in the future to help quantify and improve the performance of building operation and maintenance. Jo Harris July 2012 ii ASSET MANAGEMENT AND MAINTENANCE AUDITS

CONTENTS Part 1 Audit Guidance 1 INTRODUCTION 1 1.1 What is an audit? 1 1.2 Purpose of audits 2 1.3 Business success criteria 3 2 AUDITS 4 2.1 Level of audits 4 2.2 Types of audits 5 2.3 The audit plan 6 2.4 The audit process 7 2.5 The role of the auditor 7 3 MANAGEMENT APPROACH TO AUDITING 10 3.1 Justifying the audit process 10 3.2 Terms of reference 10 3.3 Overlap of audit activities 10 4 THE AUDIT FUNCTION 12 4.1 Planned arrangements 12 4.2 Performance indicators 12 4.3 Gathering information 13 4.4 Information collection 15 4.5 Information analysis 15 5 THE AUDITOR 16 5.1 General 16 5.2 Auditor training and experience 16 5.3 Selection of an auditor 17 6 REPORTING 18 6.1 Format and contents 18 6.2 Introductory section or preamble 18 6.3 Summary of non-conformities and recommendations 18 6.4 The audit summary 19 6.5 Completed toolkit 19 ASSET MANAGEMENT AND MAINTENANCE AUDITS iii

CONTENTS Part 2 Audit Toolkit 7 HOW TO USE THE TOOLKIT 24 8 TOOLKIT GUIDE 26 8.1 Maintenance organisation and resourcing 26 8.2 Planning and management of the maintenance activity 28 8.3 Environmental and energy management 33 8.4 Health and safety 34 8.5 Financial planning, management and control 38 8.6 Communication 40 8.7 Records and documentation 40 8.8 Additional work 41 8.9 Client satisfaction 44 8.10 General quality of work 45 8.11 Site survey 46 APPENDIX A: AG 13/2000 ACKNOWLEDGEMENTS 48 APPENDIX B: TRAINING AND COMPETENCE LEVELS 49 APPENDIX C: DOCUMENTS AND RECORDS 50 FIGURES Figure 1 : Continuous Improvement 2 Figure 2 : Two levels of Audit 4 TABLES Table 1 : Optional audit front sheet 20 Table 2 : Property Information 21 Table 3 : Housekeeping checklist 46 Table 4 : Plant condition checklist 46 REFERENCES 51 iv ASSET MANAGEMENT AND MAINTENANCE AUDITS

INTRODUCTION 2 Part 1 Audit Guidance 1 INTRODUCTION Effective management of the operation and maintenance of any asset requires feedback. A well thought out and enacted audit will provide that feedback and allow an organisation to check their management systems, identify any deviations from those systems and make any necessary corrections. An audit does not have room for apportioning blame for problems. The audit process and its outcome is broken down to the following key stages: process review correcting problems preventing problems dynamic improvements. The audit process provided in this guide will support the implementation of good practice asset management as outlined in PAS 55-1 [1]. To assist this we have annotated the elements in section 8 of this guide, highlighting the relevant section in relation to clause 4 of PAS 55-2 [2]. 1.1 WHAT IS AN AUDIT? An operation and maintenance audit is a systematic examination, undertaken by those who have a knowledge and understanding of the operation and maintenance of buildings, to assess the effectiveness of the asset management. The main purposes of the audit are to highlight deviations from plans or expectations, to evaluate the need for improvement and to take corrective action. Operation and maintenance combines the availability of the building services plant and equipment with the implications of this in terms of environmental comfort, client satisfaction, business risk, disruption to the organisation, health and safety and financial management. Audits are part of a process of continuous improvement, as illustrated in Figure 1. They provide a structured means of collecting information and data to allow an assessment of current performance to be made, together with identification of where improvements can be initiated. ASSET MANAGEMENT AND MAINTENANCE AUDITS 1

2 INTRODUCTION Current performance is judged against criteria such as: acceptable downtime financial and budgetary criteria reliability and availability requirements of the engineering plant and services service level achieved key performance indicators (KPIs) occupant expectations. Figure 1 : Continuous Improvement Audit purpose Re-assess What do we know? Implement proposed actions Continuous Improvement Weighting targets Opportunities for improvement Notes and actions Is this happening? 1.2 PURPOSE OF AUDITS Operation and maintenance audits are carried out for a number of reasons including: assessment of current position comparison against best practice examination of efficiency to demonstrate that work has been carried out as specified and that the anticipated performance has been achieved. 2 ASSET MANAGEMENT AND MAINTENANCE AUDITS

2 AUDITS 2 AUDITS 2.1 LEVEL OF AUDITS An audit can be conducted at two levels - strategic or operational as illustrated in Figure 2. Figure 2 : Two levels of Audit STRATEGIC AUDITS Business Objectives Deliverables Benchmarks Maintenance Systems Customer Satisfaction OUTPUTS Productivity Quality Time Operation and Maintenance Process INPUTS Planned Arrangements Resources Knowledge Supervision planning and Control OPERATIONAL AUDITS Strategic audits Strategic requirements for operation and maintenance match organisational objectives and are determined at management level. The strategic audit examines the status and effectiveness of the organisation s operation and maintenance system. It determines whether the overall maintenance strategy, maintenance priorities and resourcing are suitable to achieve the objectives of the organisation. The strategic audit also enables management to continually review and re-focus maintenance strategies and action plans to meet those objectives. Strategic audits are concerned with the overall system performance to achieve the organisation s needs. For example; the organisation may require some building services plant to operate at a higher level of operational availability. Changing the requirements and setting different targets are strategic decisions. The method of achieving these targets and the deployment of resources, within the budget, are operational level decisions. At an operational level, these requirements are translated into tasks for carrying out operation and maintenance activities (procedures, rules, systems). 4 ASSET MANAGEMENT AND MAINTENANCE AUDITS

6 5 4 3 2 1 1 2 3 4 5 6 Allocated Audit Questions by Key Contact > Ref Audit Questions 0 0 0 0 0 0 8.1 MAINTENANCE ORGANISATION AND RESOURCING h h h h h h 8.1.1 Organisational and Structure sh sh sh sh sh sh 8.1.1.a Is there an organisational chart for maintenance staff that clearly identifies their job functions, duties and responsibilities and the reporting structure? 8.1.1.b Is the structure adequate and suitable to carry out the work? 8.1.1.c Are all of the positions shown on the organisational chart fully resourced? 8.1.1.d Is the organisation over-resourced? 8.1.1.e Do individuals understand their job functions and responsibilities? 8.1.1.f Is staff conduct, appearance, attitude and behavior satisfactory? 8.1.2 Knowledge, Competence and Training sh sh sh sh sh sh 8.1.2.a Is there a procedure for assessing and ensuring that the staff are competent to do their jobs? 8.1.2.b Is this procedure adequate to satisfy legislative requirements such as the management of Health And Safety at Work Regulations and the requirements of the business? 8.1.2.c Are there adequate arrangements to refresh training on specific duties, for example, refresher training of HV authorized persons? 8.1.2.d Do staff have the necessary qualifications, training, approvals, skills and competence to carry out their specific job functions in line with the company policy for competence? 8.1.2.e Are staff kept up to date with information required to carry out their work, for example current legislation, British Standards, innovations, etc.? 8.1.2.f Do the staff fully utilize the information provided by the company? 8.1.2.g Are there sufficient management controls to ensure that staff do not use outdated information? 8.1.2.h Do the staff receive any support training (e.g. Customer awareness, First Aid, Related trade information, etc.)? 8.1.2.i Is there an ongoing training programme? 8.1.2.j Are adequate budget funds allocated for staff training and development? 8.1.3 Information Technology sh sh sh sh sh sh 8.1.3.a Is there a company policy related to computer-based information systems? 8.1.3.b Does it compare well to the industry norms? 8.1.3.c Is this policy applied to the maintenance IT system? 8.1.3.d Does the maintenance organisation use the full potential of current IT systems to optimize its processes, for example CMMS & CAFM systems? 8.1.3.e Is the maintenance IT system fully understood by its users? 8.1.3.f Are information back-up facilities provided? 8.1.3.g Is the information on the system secure? 8.1.3.h Is the information security in compliance with the Data Protection Act 1998? 8.1.4 Staff Motivation sh sh sh sh sh sh 8.1.4.a Is the company organisational policy for staff well-being satisfactory (e.g. standard of accommodation, messing facilities, etc.)? 8.1.4.b Is there a staff grievance procedure? 8.1.4.c Have all past and present grievances been resolved? 8.1.4.d Is any staff dissatisfaction apparent (e.g. grievances re: pay awards, lack of training, lack of support from senior management, harassment, etc.)? 8.1.4.e Are there any systems in place for additional staff motivation (e.g. bonuses, career structure, etc.)? 8.1.4.f Is there a high level of staff turnover? 8.2 PLANNING AND MANAGEMENT OF THE OPERATION AND MAINTENANCE PROGRAMME h h h h h h 8.2.1 OPERATION AND MAINTENANCE DOCUMENTATION sh sh sh sh sh sh 8.2.1.a Are the Good Practice operation and maintenance documents and records available [as listed in Appendix C of the guide and worksheet tab labelled 8.2.1.a]. 8.2.1.b Are these records indexed and kept for easy access for those who require them? 8.2.1.c Is there a person / satisfactory system for updating these records as changes occur? 8.2.1.d Are these documents up to date? [as listed in Appendix C] 8.2.1.e Are these documents and records held on a computer-based system? 8.2.1.f Is there an Asset Register? 8.2.1.g Are all plant and equipment included? 8.2.1.h Are plant and equipment which are no longer in use identified as such in the Asset Register? 8.2.1.i Is there a person / satisfactory system for updating the asset register as changes are made to plant and installations? 8.2.1.j Is the Asset Register accessible to all those who require the information it contains? 8.2.2 Stores Management sh sh sh sh sh sh 8.2.2.a Is there an adequate budget for maintaining essential stocks? 8.2.2.b Is there a regular review of stocks levels, etc.? 8.2.2.c Is there a stock control and review procedure? 8.2.2.d Is there evidence of over-stocking? 8.2.2.e Are redundant stock items retained on site? 8.2.2.f Are the stock storage areas adequate? 8.2.2.g Does the method for purchasing stock comply with maintenance response times, e.g. lead time to obtain spares? 8.2.3 Issuing the Stock sh sh sh sh sh sh 8.2.3.a Is there any undue queuing while drawing stock? 8.2.3.b Is the security for stock holding areas adequate to reduce loss, damage and personal abuse, etc.? 8.2.3.c Are non-expendable items tested and checked on a regular basis? 8.2.3.d Are sufficient tools and test equipment available for completion of the maintenance tasks? 8.2.3.e Is test equipment checked and calibrated on a regular basis?