The development of a methodology for the evaluation of installed CAPM system’s effectiveness and efficiency

The objective of this work was to design, develop and evaluate an audit for a Computer Aided Production Management (CAPM) system. Such systems, despite their costs of purchase and implementation, find wide application in industry but there is still considerable debate as to their contribution to the overall performance of a company. A variety of possible methodologies were explored. However, it was found that most of the existing analytical techniques tended to focus on a comparison of systems with respect to best practice or to require data that a company was unlikely to have. Best practice is not an absolute measure, nor does it take account of different company types and their individual requirements. A flexible methodology, 'the CAPM Audit', designed to establish the effectiveness and efficiency of any installed CAPM system, has been developed. The audit is a development of the Delphi approach and is designed to establish the contribution of the CAPM system to the company's overall competitive position. In its development, a generic model for any CAPM system was devised to facilitate analysis without reference to any particular technology, management mode, or manufacturing control system. The audit developed (in the form of a workbook) consists of four stages: stage one establishes the context; stage two determines the underlying architecture of the system; stage three quantifies the contribution to the company's competitive position; and stage four identifies the causes of any failure of the CAPM system. The design of the audit is such that: it enables a systematic investigation of the effectiveness and efficiency of an installed CAPM system to be completed; it enables the CAPM system's contribution to the company to be identified; and it also enables any inadequacies to be determined

Implications of the fraud triangle for external auditors

In recent years the role of the external auditors in relation to the detection of fraud has come under scrutiny. In an effort to give guidance, the auditing standard setters have employed the “fraud triangle” (which originated from Cressey’s work [1950]) setting out pressures, opportunity and rationalisation behind frauds. Traditionally, it could be said that external auditors have focused on opportunity (i.e. through the assessment of internal controls). Since the mid - 1990s auditors have looked at high level risks and so have been considering pressures on management. However, the third aspect of the fraud triangle, namely rationalisation, seems to have been ignored. The point is that two people may experience the same pressures and have the same opportunity to commit a fraud, but depending on how they rationalise the situation, one may commit it whilst the other may not. The under appreciation of this aspect of the fraud triangle may mean there is a weakness in the external auditors’ approach

Quality Risk Management: Seeking the Diamonds: Making the Case for Improved Formality in QRM Decision-making

In November 2020, a newly formed working group of the ICH (International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use) published a concept paper [1] outlining the considerations for an update to ICH Q9: Quality Risk Management [2]. In the concept paper, the expert group identified four areas for improvement with respect to the current application of Quality Risk Management (QRM). One of the areas identified as problematic was a ‘lack of clarity in risk-based decision making’. The paper described a ‘lack of clarity on what good risk-based decisionmaking means’. This paper looks at risk-based decision-making and, in particular, whether higher level of formality in decision-making would improve the effectiveness of both QRM and KM within key elements Pharmceutical Quality System (PQS)

A Water Accounting System for Strategic Water Management

This paper describes a water accounting system (WAS) that has been developed as an innovative new tool for strategic long-term water management. The WAS incorporates both disaggregated water use and availability, provides a comprehensive and consistent historical database, and can integrate climate and hydrological model outputs for the exploration of scenarios. It has been established and tested for the state of Victoria in Australia, and can be extended to cover other or all regions of Australia. The WAS is implemented using stock-and-flow dynamics, currently employing major river basins as the spatial units and a yearly time step. While this system shares features with system dynamics, learning is enhanced and strategic management of water resources is improved by application of a Design Approach and the structure of the WAS. We compare the WAS with other relevant accounting systems and outline its benefits, particularly the potential for resolving tensions between water supply and demand. Integrated management is facilitated by combination with other stocks and flows frameworks that provide data on key drivers such as demography, land-use and electricity production.water accounts, stocks and flows, water budgets, decision support systems, strategic management

Historical Calibration of a Water Account System

Models that are used for future based scenarios should be calibrated with historical water supply and use data. Historical water records in Australia are discontinuous, incomplete and often incongruently disaggregated. We present a systematic method to produce a coherent reconstruction of the historical provision and consumption of water in Victorian catchments. This is demonstrated using WAS: an accounting and simulation tool that tracks the stocks and flows of physical quantities relating to the water system. The WAS is also part of, and informed by, an integrated framework of stocks and flows calculators for simulating long-term interactions between other sectors of the physical economy. Both the WAS and related frameworks consider a wide scope of inputs regarding population, land use, energy and water. The physical history of the water sector is reconstructed by integrating water data with these information sources using a data modelling process that resolves conflicts and deduces missing information. The WAS allows strategic exploration of water and energy implications of scenarios of water sourcing, treatment, delivery and end use cognisant of historical records.water accounting, stocks and flows, historical time series, data modelling, calibration

Evaluation of Transportation Infrastructure: A Case Study of Gold Coast Light Rail Stage 1&2

Since the COVID-19 pandemic began, there has been increased reliance on new infrastructure projects to counter economic fallout and underpin employment security. Urban and inter-urban transportation projects, such as major road, rail and port facilities, are popular choices for national and state governments in Australia as they provide broad fiscal support across all sectors of the economy. The problem with stimulus is making sure that the quality of the new infrastructure provides collective utility to a community or region. Whether the benefits will be worthwhile and represent best use of resource inputs requires financial, social, ethical and environmental consequences to be evaluated in a comparable format. The aim in this paper is to analyse the Gold Coast Light Rail (GCLR) Stage 1&2 project using a method that is capable of merging tangible and intangible criteria using an ordinal ranking algorithm. While the GCLR case study is undertaken with the benefit of hindsight, normally these types of evaluations are performed in real time as a project progresses from initiation (design) to implementation (deliver) and influence (delight). The method adopted in this study represents a modern form of multi-criteria decision-making, which enables successful projects to be distinguished from unsuccessful ones using a time period from commencement until one full year of operation has occurred. The i3d3 model, developed by a team from Bond University, has the unique benefit of ranking projects from best to worst across an organisational portfolio, geographic region or industry sector. It also supports past project performance to inform new design through application of a continuous improvement process of recording lessons learned. The GCLR case study calculated 100% of the critical success factors in the model to be positive and produced an overall success ranking of 23 (on a scale of -100 to +100). This paper presents the approach taken to evaluate GCLR’s level of success and the calculations that took place to reach this finding. This is the first time i3d3 has been used on an Australian project