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Internal Property Audits
GDAIS Property Managers
June 14, 2010
NES - 2010
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Welcome / Introductions
Introduction:• Presenters today:
Mark Smith, CPPM Roy DeLauder, CPPM, CF Wendy Latimer, CPPM Glenn Markle, CCPM
Topic:• Conducting self assessment audits at General
Dynamics Advanced Information Systems (AIS).
Thanks for coming.
Questions are welcome at the end.
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What will be discussed today?
• Why conduct a self assessment audit? • What planning goes into conducting a self
assessment audit? (Pre-audit activities)• How do we conduct our self assessment audit? • What happens after the self assessment audit is
completed? (Post audit activities)• What are some lessons learned?• What are the benefits?
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Why Conduct a Self Assessment Audit?
• Yes, we are required to by FAR 52.245-1.– FAR 52.245-1 states; “The Contractor shall
establish and maintain procedures necessary to assess its property management system effectiveness, and shall perform periodic internal reviews and audits”.
• Another requirement, one more box to check off? Is this how you see it?
• It’s more than just a requirement – it’s an OPPORTUNITY.
• Conducting Self Assessment audits has opened more doors for our team and our profession than anything we have done.
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How do we conduct the audit?
Who will audit?
What to audit?
When to audit?
Where to audit?
How to audit?
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Who will audit?
Audit Team• Managers have several major and minor sites• Managers audit each other• Lead auditor is not from the site.
Manager is tasked to support the audit. Provides documents, records, logs, etc.
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(Planning)
Acquisition
Receiving
Identification
Records
MovementStorage
Inventory
ReportsConsumption
Utilization
Maintenance
Subcontractor Control
Disposition
Close-out
Life Cycle of Property
(15 Business Processes)
(Including Buy/Build/Lease Decisions)
Risk/liability
Analysis
Property Management
What to Audit?
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What to audit?
Questions on each Business Process• Canned set of Starter questions • Broken out by role: PM, CA, SCA, Custodian,
Specialist, Material Control, & Security• Interviews
Artifacts (records, logs, inventory results, etc.)• Includes list of contracts, list of all direct purchases
over last 12 months. Etc.• Samples chosen
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When to audit?
Can anything be done before the team arrives on site?• Samples chosen
Communicate to players• Some interviews can be but not all.
Schedule for on-site time:• Interviews / Entrance & Exit briefings• Record to Floor & Floor to Record Checks
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Where to audit?
What contracts are covered by the audit?
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Managers set 5 or 6 per year?
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How do we audit?
Notify site about 45 days out.
Artifacts posted into a shared file location. – 30 days prior.
Samples picked and communicated.
Entrance and Exit brief scheduled.
Pre-site interviews scheduled.
On-site interviews scheduled.• Focused on touching equipment.
Exit Brief => Final Report 2 weeks after.
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(Planning)
Acquisition
Receiving
Identification
Records
MovementStorage
Inventory
ReportsConsumption
Utilization
Maintenance
Subcontractor Control
Disposition
Close-out
Property Management System
(15 Business Processes)
Risk/liability
Analysis
Property Management
Exit Brief/ Final
Report
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Audit Finding 1Business Process - Receiving
While conducting interviews, it was communicated that there are no procedures that are being used for performing the receiving process.
Reference Document: PPQ-PRO-5.2
Assigned to: Al Thomas
13Final Report
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Results
Lots of Audit Information Provided• Our Methods comply with the FAR• We touch every business process
Through Interviews and Artifacts Process is thorough Results can be reviewed by any Property
Administrator (Online Repository)
Every Stakeholder/Key Player has a role and the importance of their role is realized
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Results
We know the health of our Property Management System
We have a way to capture areas that need improvement and follow up until closed. (Next Slide is an example of fields in our correction action log)• Training• Procedures
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Corrective Action Log
Finding Number: Example: PMO001
Division
Description
Corrective Action Type (Tools, Execution, Procedures, Training)
Documented By
Finding Date
Site/Program
Assigned to
Manager of Assigned to
Status
Due Date for CAR Completion
Date Closed
Notes/Comments
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Results
Most Important part of the audit is to Capture Observations and Findings and FOLLOW UP!!• There has to be a system/tool to document the
findings• There has to be a person continuously following up
on the status of the corrective actions• There must be a history of what was done and how
it was improved (we often look at that area again to see if the corrective action worked)
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Lessons Learned
Gain Upper Management Support!
Have Someone Designated as the Audit Lead/Audit Chair
Be Prepared
Be Organized
Be Ready for Pushback• I need a charge number• I don’t have time for this• Blah, Blah, Blah!
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Lessons LearnedDo what you can by telephone
Assign Interviews to the Auditors and let them schedule and coordinate their portion of the audit.
Have daily meetings and post whatever you can on a daily basis.
We didn’t get to this point overnight!• Communication with Audit Team• Communication with Sites and Participants• Teamwork
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Questions?
Thank you!!
Mark Smith, Greensboro NC 336-698-8834
Roy De Lauder, Fairfax VA, 703-277-1529
Glenn Markle, Santa Clara CA, 650-966-3802
Wendy Latimer, Washington DC 240-427-7230