Appropriateness of Design Standards

The review team needs to check the appropriateness of the organization's design standards.

One of the key drivers of capital expenditure is the standard to which we construct our assets. The capital expenditure for appropriate system operation will therefore be effected by the:

• Quality of the existing assets
• Quality or standard of the assets being created in the organization's renewal and improvement programs.

These capital works will need to:

• Allow the organization to meet agreed customer service levels
• Give the lowest life cycle cost, not only for the asset but also for the current business environment and the organization's objectives
• Meet industry best practice.

Benchmarking is also important here. In comparing benchmarking data, organizations should understand how they differ from other benchmarked organizations. Although standards may be similar within one country or state, international comparisons should be approached with care, paying attention to differences in:

• Service levels
• Customer expectations
• Materials used
• Labor rates
• Construction costs
• Climatic conditions
• Terrain
• Operation and maintenance practices
• Technology used
• Accounting practices
• Methods of recording data, etc.