Best Practices and Benchmarking of Control System Integrators

Jamie D. Jordan CEO Applied Industrial Automation, Inc. 7316-A Pepperdam Ave. North Charleston, SC 29418

KEYWORDS
Control Systems Integrator (CSI), Control System Integrators Association (CSIA), Benchmarking

Abstract
Best Practices and Benchmarking of Control Systems Integrators, will address the need to evaluate CSI (Control Systems Integration) firms in order to minimize project risk and ensure successful project implementation. The Control System Integrators Association (CSIA) has recognized the need to evaluate CSI services and has developed tools that will assist in this process. In addition, the CSIA has also developed a system that will help the CSI to internally evaluate their company, provide a registration process that allows a third party audit firm to evaluate the CSI, and upon successful completion of the audit, become a CSIA registered firm. The following will provide the outline for the presentation and the CSIA registration process: Overview and definition of the CSI Industry The Benchmark Requirement The CSIA Benchmarking Methodology The CSIA Registration Process Benefits to the Industry

Overview and Definition of the CSI Industry

The use of CSIs has increased in recent years due to a reduction in the number of corporate engineers and the ever-increasing use of technology on the factory floor. The CSI is defined as an independent (or an independent profit/loss division) value-added engineering organization that focuses on industrial control systems, manufacturing execution systems (MES), and/or plant automation that requires application knowledge and technical expertise for sales, design, implementation, installation, commissioning and support. A CSIs services focus on the delivery of:

Process/Technology Knowledge Consulting Integrated Solutions Design and Application Development Support Services Value-Add services such as staff augmentation, training, site supervision, and on going maintenance, for example.

Most CSIs evolve out of singular services to a full range of services and take on many different looks along the way, thereby confusing the marketplace. The Control System Integrators Association (CSIA) was formed in 1994 to provide a means to help end-users understand and utilize the services of the CSI as well as to help the CSI to improve their level of service. The CSIA is the premier organization dedicated to the Control Systems Integration industry providing its members a unique forum for education and discussion of the business, marketing and technical issues they face. The CSIA Best Practices & Benchmarks provides the CSIs a means to both evaluate and continuously improve their practices by providing sound CSI Industry "Benchmarks", to be used in a selfdeterministic fashion for the markets they serve. In addition, the CSIA also officially "registers" CSIs that have been audited and meet key criteria on items deemed important by the industry it serves to successfully run a CSI business and associated projects.

The CSIA Benchmarking Methodology

The CSIA developed the most comprehensive system for establishing Best Practices & Benchmarks for the CSI industry. The system started with the development of the Best Practices & Benchmarks document, which consist of over 100 pages focusing on the six major areas of the CSI business. The six areas with sub-categories for each area are listed below with a brief overview of each section and sub-section: 1.0 General Management This section contains criteria (questions) associated with the control systems integrator's purpose, long-range plans, objectives and goals.

1.1 Strategic Management This section contains criteria (questions) associated with the control systems integrators purpose, long-range plans, objectives and goals.
A) B) C) Defined/Clear Strategic Objectives Regularly Monitored Short Range Objectives Formulated Owner/Management Transition

1.2

Organizational Structure A) Organization Chart/Structure B) Office Procedures Manual Facilities and Equipment A) Necessary Office/Field Equipment Available/Maintained B) Technical/Historical Project Archive Computer Systems Management A) Documented Computer System Policy B) Unauthorized SW Copying Violation Understanding C) Software License Management D) Adequate Backup System for Information E) Maintain Software Support Library F) Software License Transfer Practice Guideline Loss Prevention A) Adequate Insurance/CSI & Client B) Key Man and/or Buyout Insurance of Key Individuals C) Work Contractually Authorized D) Errors and Omissions

1.3

1.4

1.5

2.0

Human Resources & Professional Development

The management of human resources is a vital component of a successful control systems integrator. The most valuable asset any company has is the employees who perform the work. The H.R. management is concerned with four issues: Meeting Legal Requirements Recruitment Process Employee Development Retention Program

2.1

Administration A) Job Descriptions Established/Utilized B) Employee Turnover Rate - Quantitatively Track C) Enforce a Drug-Free Workplace Recruiting A) Standard Policy for Recruiting Employee Development A) Career Path B) Skill Development Retention Programs A) Employee Benefits

2.2 2.3

2.4

3.0 Project Management This section addresses issues that include clarity of scope, thoroughness of work planning, project team structure, practices/ standards, project execution methodologies, documentation, quality procedures, testing, and commissioning. The purpose is not to judge the actual methodology, but to ensure the methodologies are documented and followed as related to the project scope.

3.1

Project Planning and Methodologies A) Assignment of Qualified Team Personnel B) Project Information Review/Approval for Client Expectations C) Project Change Documentation with Client Approval D) Assigned Personnel Time Commitment/Project E) Key Personnel Briefed on Overall Scope of Project F) Project Management Via Plans and Schedules G) Risk Management Process/Involves Client Design Standards A) Software Standards Used Consistently and Improved B) Promote Development of Standard Design Techniques C) Project Execution Methodology Used and Improved Project Quality Procedures A) Verify/Document Deliverables Documentation A) Emphasize Accurate/Documented Communications B) Prepare Project Manuals for Project Execution C) Method to Track/Store Project Materials D) Documentation Standards Used on All Project/Docs E) Timely Close of Project with File Off-Site Storage

3.2

3.3 3.4

3.5

Testing and Implementation A) Panel Assembly Standards & Testing/Docs B) Factory Acceptance Test with Documented Results C) Prior Negotiate/Document before Field Modifications Safety Training on Projects A) Provide Safety Training B) Conduct Accident Reports C) Perform Safety Audits

3.6

4.0 Quality Management While quality very likely permeates all aspects of a successful business, this section deals with quality management as a distinct dimension of an organization.

4.1

Leadership A) Documented Goals and Policy that is Communicated B) Management Commitment to Implement Quality Systems Effective Communication A) Conduct Meetings on Quality Continuous, Measurable Improvements A) Verify Client Satisfaction and Document Customer Service A) Complaint Procedure & Verify Resolution

4.2 4.3 4.4

5.0 Financial Management The financial and accounting aspects of the control systems integrator should focus on the specific means required to manage, control, report, and plan the companys financial resources.

5.1

Measures of Financial Performance A) GAAP Financial System in Operation B) Timely Accounting Methods/Reports Financial Planning A) Cash Flow Forecast Requirements via Credit/Cash

5.2

5.3

Billing Procedures A) Change Procedures in Place for Proper Billing B) Invoices Checked for Accuracy/Compliance C) Monitoring Method for % Completion/WIP D) A/R Monitored with Overdue Accounts Pursued Project Financial Reporting A) Project Control Job Cost System B) Timely Review Job Cost System Reports C) Does Job Cost Require Forecast-to-Complete? Tax Policy A) Sales/Use Taxes Collected/Paid with Records B) Payroll Taxes Paid in Timely and Proper Manner C) Federal Taxes Estimated/Paid as Required

5.4

5.5

6.0 Business Development An effective business development program is required for the survival of every control systems integrator. New opportunities must be forthcoming at a reasonably steady rate and on terms that will provide the control systems integrator with financial stability. At the same time, overly zealous promotion can disrupt other aspects of a control systems integrators practice.

6.1

Business Development Practices A) Marketing Materials Present Accurate Information B) Maintain Accurate Resumes of Individual's Expertise C) Disclose/Define Relationship with Other Parties Development of Proposals A) Define When/Why Say "NO" to Proposal B) Guidelines of Defining Scope of Work/Supply C) Basis of Scope/Proposal Clearly Written D) Standards for Estimating/Pricing E) Administrative Review and Approval Policy Negotiating and Contracting A) Standard Commercial Documents Used/Reviewed B) Proposals/Contracts Reviewed for Liability Issues C) Contracts Straightforward/Easily Understood D) Software Ownership E) Intellectual Property Ownership

6.2

6.3

The CSIA Best Practices & Benchmarks document contains specific questions in each category and sub-sections of each category. The questions are then answered using a numeric score based on the following table:

SCORE 0 1 2

DESCRIPTION No evidence of policy, practice or standards "systems" in place, and no evidence of any work being initiated in this area. Basic policy, practice or standards "elements" initiated. Implementation, training, and documentation doesnt exist or is minimal. Basic policy, practice, or standards "elements" partially implemented. Training and documentation and/or records are minimal and incomplete. Effectiveness is not being satisfactorily demonstrated. Basic policy, practice or standards mostly implemented with supporting documentation. "Systems" can be considered minimally adequate, but with opportunities for improvement. Higher policy, practice or standards "elements" implemented with good supporting documentation. Knowledge of the "system" is good and is uniformly applied. Effectiveness is good, but not always evident, and continual improvement is strived for, but not demonstrated. Higher policy, practice, or standards are considered well thought out, documented and implemented to the point where they can be called outstanding. Effectiveness is evident and continual improvement is being demonstrated.

The CSI then evaluates each category and provides a rating based on the provided table. Areas that are identified as areas requiring improvement are corrected then reassessed. This self-evaluation process assists the CSI in preparing for the third party auditor that is required for the CSIA registration process.

The CSIA Registration Process

The CSIA registration provides the client with an effective method for immediate evaluation of a CSI. The registration criteria were jointly developed by CSIs, clients and manufacturers to ensure that the criteria reflect the requirements of the parties involved relative to the implementation of control systems. The criteria are as follows: An independent third party organization conducts the CSIA registration audit of a CSI based on the CSIA Best Practices and Benchmarks criteria. Members who have successfully achieved registration are identified on the CSIA website (www.controlsys.org). CSIA registration reduces the clients efforts, costs and risks associated with the selection of a CSI by identifying those CSIs that have met an established industry metric. Registration criteria addresses General Management, Human Resources & Professional Development, Project Management, Quality Management, Financial Management and Business Development.

Benefits To The Industry

The benefits of Best Practices & Benchmarking to industry are numerous to the CSI and the end user. The benefits are as follows: Provides a mechanism by which the CSI can continuously improve. Established an industry standard benchmark. Educates users to the requirements for a good CSI. Provides a means for CSI evaluation. Minimizes the potential risk when selecting a CSI.