FIT Information Systems Audit Services

Successful processing plant operation depends on effective and efficient information systems and technical infrastructure that provide optimal support to the organization. Ineffective systems and tools can be the basis of high operating cost, hampering the organization from achieving their potential and, in today's economic climate, can mean the difference between survival and failure. Systems need to be easily available at all work locations, nearly transparent to the users, intuitively providing standard tools in an easy to access and use environment.

FIT provides a service whereby seasoned FIT Information Technology (IT) professionals assist the client to evaluate all or any specific areas of the IT organization for efficiency, effectiveness, and support of plant and enterprise operation. FIT can provide an IT Improvement Program complete with staffing of any IT function or mentoring the internal IT staff.

The first step is to conduct an audit based on the specified scope: the objectives is to identify areas for improvement or change along with the bottom line benefit in making such changes; Step two is to support implementation of the Improvement Program, by way of both technical and managerial support and/or a mentored program for the in-house staff. Some clients perform just the first step as an impartial means to validate areas for change, if internal resources are available to perform the required changes.

The FIT specialists who perform the audits come from technical and managerial positions in hydrocarbon processing companies, most with over 20 years of experience. The Specialists use a very robust, time- proven set of products and tools, which can include industry benchmarks, models, cost and benefit evaluation tools, and written templates and programs. The audit is designed with a specific goal in mind, generally culminating in a management discussion of findings and alternatives to effecting positive change.

The IT audit reviews can cover but are not limited to the following areas and functions:

• Organization and Staffing, Training, Job descriptions and Salary Evaluations
• Application Systems, Development, Purchase, Hosting and Support
• Operations, Hardware, Operating & Support Systems and Network Infrastructure
• Policies, Standards & Procedures, Methodologies
• Planning & Budgeting
• Outsourcing
• Industry Comparisons
• Contracts, Leases and Agreements
• New Vendor & Product Evaluations
• Existing Vendor Relationships
• Administration & Management Reporting
• Cost Benefit Analysis
• End User Agreements and User Feedback Analysis
• User Evaluations and Responsibilities

An Applications Audit project can look at current systems and infrastructure and evaluate how the client environment compares to peer industry systems, how well they meets current and expected future business needs, and how well they support the organization. The audit could cover the following specific topics:

Expectations from the Planning Process

• System capabilities vs. requirements – too much or too little?
• Infrastructure capabilities vs. requirements
• Review of long-range plan – systems, infrastructure, support and staffing.
• Total cost of system and infrastructure support compared to peers
• Standardization – cost analysis for diversity vs. standardization (if applicable)
• Custom, commercial, out-host or out-source. Total costs and benefits.

Sample Project Activities

System Capabilities vs. Requirements; Infrastructure Capabilities vs. Requirements; Review of Long Range Plan

Initial meetings will be with the audit sponsor, to understand the focus and emphasis of the audit. Then, FIT specialists will meet with IT staff (if not the sponsors) to be briefed on systems, architecture, integration, infrastructure, standards, desktops, various technologies being employed and both short and long-term plans.

FIT consultants will then meet with select groups of users (determined by initial discussions, usually working in areas where users either do not feel they are properly supported or where there are systems difficulties) to define expectations from IT systems, as well as understand how reliably expectations are met.

If there are differences between users and the IT group or if the IT group is having difficulty with justification of what is needed to properly support users, FIT will provide the necessary support to clear up these issues.

Total Cost of System and Infrastructure Support Compared to Peers

The FIT consultants will look at systems and infrastructure to observe the cost of external support of both hardware and software. Staffing vs. peer organizations will be considered and a total cost comparison can be developed if needed.

Standardization – Cost Analysis for Diversity vs. Standardization (if applicable)

Most companies have established guiding principles and standards for IT. Sometimes, there are problems in everyone following these at all times. FIT can assist to determine whether the deviations from the norm are advisable or perhaps a change in the specific principal or standard is required.

Looking at Alternatives: In-House Custom, Commercial, Remote-host , or Out-source. Total Costs and Benefits.

FIT specialists are experienced in helping clients compare alternatives for computing resources. Many times, clients have had reason to write software and it has proven useful in providing a competitive edge. Multiple times, studies were able to show that hosting a system remotely had merit. Similarly, outsourcing sometimes is a viable and useful alternative. Frequently and more commonly, in-house support of commercial systems is an economic alternative that is preferred. Each situation is unique as determined by length of anticipated system usage, cost of internal or external support, availability of similar commercial software, etc., and needs. FIT uses our Economics of Change? tool to view alternatives and bases advisement on overall effectiveness of plant or enterprise support, weighted by overall cost factors.

From information gathered in the activities outlined above, the consultants:

• Benchmark existing systems, infrastructure, support and plans against industry peers. This benchmark provides a quantified measure of potential improvements in over twenty areas to insure that management and client customers are provided with the information that meets their needs.
• Estimate the economic value of any proposed changes, based on information supplied by client personnel and that obtained from existing structure and plans. The value comes from better utilization of resources to maximize the profit generated by the plant.
• Recommend further requirements for the future to maintain the standard of excellence achieved.
• Audit results enable either the FIT planning professionals or client professionals to prepare a plan of continuous improvement, with economic benefits clearly defined at each step along the way.

FIT's service structure is aligned so that a client can use as much or as little assistance from FIT as is needed. All of the services from FIT can be expanded, reduced or segmented as appropriate to each situation. We also look to leverage a client’s strength, to take advantage of a client’s ‘in-house’ talent, and to facilitate a client’s organization through improvement or change, always with an eye to impact on the bottom line. We guide our clients toward having the most cost-effective support systems that still meet the goal for which they were intended: optimizing the user community efficiency and productivity, and gaining maximum return from running the business.

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