FUEL CONSERVATION & EFFICIENCY INITIATIVES AUDIT PROGRAMME Page 1 of 24 Auditor Responsible Audit Reviewed by Audit Month/Year Estimated Man Days OBJECTIVE The fuel conservation & efficiency initiatives work program is develop in order to: - To determine the adequacy of the governance structure in the administration, implementation and monitoring of the fuel initiatives - To identify, review and evaluate the adequacy and accuracy of reporting for the fuel initiatives respectively. - Assess the effectiveness of the fuel conservation & efficiency initiatives implemented by the airline. - Evaluate if the fuel conservation and efficiency initiatives include major elements of best practices in the industry. - Identify gaps in the current initiatives’ practices including design and compliance of controls and project governance. - To provide recommendations for improvement for areas under review.
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FUEL CONSERVATION & EFFICIENCY INITIATIVES … Conservation WP 250408.pdf · · 2011-07-17- Assess the effectiveness of the fuel conservation & efficiency initiatives implemented
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OBJECTIVE The fuel conservation & efficiency initiatives work program is develop in order to:
- To determine the adequacy of the governance structure in the administration, implementation and monitoring of the fuel initiatives - To identify, review and evaluate the adequacy and accuracy of reporting for the fuel initiatives respectively. - Assess the effectiveness of the fuel conservation & efficiency initiatives implemented by the airline. - Evaluate if the fuel conservation and efficiency initiatives include major elements of best practices in the industry. - Identify gaps in the current initiatives’ practices including design and compliance of controls and project governance. - To provide recommendations for improvement for areas under review.
Introduction Airlines have little or no control over the price of jet fuel. Managing fuel efficiency is an attractive strategy that can save an airline between 3 to 8 % of its fuel expense. The environmental benefits of releasing fewer emissions into the atmosphere are an added bonus. However, success requires good metrics, a multi-disciplinary approach within a well structured, systematic program. From the operational perspective, the fuel efficiency initiatives derived from the recommended practices from IATA and airline manufacturers can be incorporated into the line operations by the process owners. However, to be able to measure the effectiveness of these initiatives as well as to continuous monitor and track of the progress of these initiatives, a working group will eventually have to be established Various airlines have established a working committee in developing fuel conservation & efficiency program and the committee is often made up of members from various operational departments within the airlines. The members may consist of;
Note: The following work program encompasses the project management aspect of the fuel conservation & efficiency initiatives as well as the process improvement aspects of line operations. The improvements and the fuel initiatives within this work program do not cover all initiatives practised by participating airline auditors and it is not exhaustive in their audit scope and testing. Further enhancement is required for more specific audit procedures and detailed testing. This work program had been jointly developed by the participants of the IAAIA Fuel Workshop in Kuala Lumpur from 15-16April2008, namely:
1. Cody Santos, Continental Air 2. Furqan Kamlani, Emirates 3. Menghistu Amare, Ethiopian Airlines 4. Robert Campos, Etihad Airways 5. Robert Engelbarts, KLM 6. Nestor Macaraniag, Philippine Airlines 7. Facilitators: Yeo Hock Kim & Gabriel Chang Thai Yau, Malaysia Airlines
3. Determine how the KPIs are formulated and its effectiveness in assessing the success of the initiatives.
4. Determine if there is an overall KPI set for the fuel conservation committee.
Communication/ feedback avenue between all stakeholders
1. Determine the frequency of meetings between stakeholders. 2. Determine if meeting minutes are available and all issues are
captured and addressed accordingly. 3. Determine if the overall KPI for the working committee is
presented to the Senior Management of the airline.
Inadequate monitoring and tracking of fuel initiatives. No continuation in the fuel initiatives after initiation.
Tracking of fuel efficiency/ conservation measurements
1. Determine if the fuel conservation performance data are monitored and documented for effectiveness rating.
2. Assess the effectiveness and adequacy of the data collected. 3. Assess the accuracy of the data. 4. Evaluate the fuel cost reduction or savings that have been
incurred. 5. Determine the accuracy of the data being reported to the
working committee.
Monitoring of the fuel efficiency conservation measurements
1. Obtain the trend of fuel savings over a period of time. Determine if the trend and data is deliberated in the committee.
Adverse impact on operations due to implementation of the initiatives
Cost benefit analysis (CBA) on fuel initiatives
1. Determine if CBA is carried out on each respective fuel initiatives. If yes, obtain the reports.
2. Determine if the implementation of the fuel initiative is in breach of any regulations or company policies.
Communication avenue for all stakeholders
1. Determine if there were any concerns raised by the stakeholders and if all issues are addressed accordingly.
Points to consider: 1. To ensure that the flight plans are prepared at the optimum
flight level. 2. To check if there are any other alternative routes considered. 3. To check if the plans are properly approved by the
supervisors or the managers. 4. To check if there are any justifications on the routes/
deviations chosen. 5. To check if the approved plans are analysed with the actual
utilization. 6. To check if there are any investigations and reporting of all
violations from the final approved plans. 7. To ensure that all discrepancies in the various flight plans
are explained and documented.
Inefficiency utilization of Cost Index for specific routes
Updated Cost Index Info 1. To check if efficient cost index utilization is part of the flight planning.
2. To check if the appropriate cost index is being used in the flight plans.
3. To check if the CIs are updated and reviewed for planning purposes.
4. To determine if all the cost elements/ factors are considered in the calculation of the cost index.
Training for the pilots 1. Determine if the pilots are given sufficient training on cost index utilization in the flight management system during flight.
Incorrect or delay in dissemination/receipt of information (e.g. payload, weather, etc)
Performance monitoring for third party service providers
1. To determine if the SLAs are signed and complied with. 2. To check if the SLAs are regularly reviewed. 3. To determine if there are any violations and applicability are
reported and investigated. 4. To check if any last minute changes are recorded,
considered, and effected accordingly. 5. To check if there is any review of the work performed. To
determine the adequacy of the level of review.
Written formal SOP for internal use.
1. To determine if the standard operating procedures are documented for reference.
2. To determine if the SOP are regularly reviewed and updated.
3. To ensure that the SOP are complied with.
Process Notes & Test Results C. Airport Operations 1. Fuelling & Tankering Potential Risk Expected Controls Audit Testing/ Questions WP Ref./
Completion Date
Initials
Incorrect refuelling of aircraft (Mismatch between equipment & aircraft-type)
Training of Fuellers & Technicians
1. To ensure that all the fuellers & technicians are properly trained and licensed to service the different types of aircraft and equipment.
1. To ensure that all the fuellers & technicians are properly trained and licensed to service the different types of aircraft and equipment.
Correct and accurate fuelling info in the flight plan
1. To check if there is any regular review performed on the flight plan to ensure that the fuel quantity uplifted complies with the fuel requirement as stated in the flight plan.
Approval of additional fuel uplift
1. To check if the request for additional fuel quantities is reported, justified, and approved.
Malfunction in fuel gauges (bowsers, aircraft, equipment breakdown, etc)
Preventive maintenance program
1. To ensure that the equipment is properly maintained. 2. To determine if there are records of maintenance and
maintenance schedules. 3. To determine if the fuel gauges have undergone regular
calibration.
Incorrect levelling of the aircraft
Initial & Refresher Training of Refuellers
1. To ensure that the fuellers are properly trained and licensed to perform their function.
Checklist for a/c refuelling 1. To determine if there is a checklist for completion before refuelling the aircraft.
2. If yes, to ensure that the checklist is regularly reviewed and updated.
Clearly defined Fuel Policy 1. To determine if there are any policies on fuel uplift. 2. If yes, to ensure that the fuel policies are clearly defined. 3. To determine if the policy is reviewed, updated, and
approved on a periodic basis.
Delay in ACARS transmission (fuel details, payload details)
Clear SOPs on ACARS usage 1. To determine if there are any delays in the ACARS transmission.
2. If yes, to ensure that the delays are being monitored and
Process Notes & Test Results 2. Aircraft Water & Waste Servicing Potential Risk Expected Controls Audit Testing/ Questions WP Ref./
Completion Date
Initials
Excessive/ inadequate uplift of water/waste
SOPS on water/waste servicing 1. To determine if there are any Standard Operating Procedures (SOP) for water servicing and if it is regularly updated.
2. To ensure that the SOP are clearly communicated. 3. To determine if there are any comparison on actual practice
and the standards as per the SOP. 4. If yes, to ensure that the deviations are investigated,
reported, and addressed.
Poor performance on the aircraft water & waste servicing
Availability of SLAs / internal SOPs
1. To determine if the SLAs are signed and complied with. 2. To check if the SLA are regularly reviewed. 3. To determine if there are any violations and applicability are
reported and investigated. 4. To check if any last minute changes are recorded,
considered, and effected accordingly. 5. To check if there are any review of the work performed. To
Standard Operating Procedures of Ground Handling Agent and Airport Service Team
1. To ensure that the SOP is available and is most current to address the potential risk.
Pre/ Post-Flight check procedures
1. To ensure the cargo is re-weighed before uplift. 2. To ensure that the weight is correctly reflected in loadsheet. 3. To ensure that the GHA correctly updates the passenger and
baggage load in the loadsheets.
Oversight Audit (Safety audits)
1. To check on the frequency of the audits. 2. To review the latest safety audit report. 3. To ensure that any outstanding issues are addressed as
highlighted in the previous audit report.
Obsolete Dry Operating Weight used
Regular review of weight schedule (As per regulatory requirements and after major modifications)
1. To ensure that the aircraft maintenance check report is available and any impact on the weight is recorded.
2. To ensure that there are calibration reports available. To ensure that it is certified by technical services approval holders.
3. To ensure that the aircraft weighing schedule is available. To check on the last weighing date of the individual aircraft and any major modification activities.
Engine degradation – poor engine performance, untimely communication of maintenance schedules and engine conditions
Compliance to the aircraft engine maintenance manual
1. To ensure that the engine maintenance manual is available. 2. To check on compliance and current revision of the manual. 3. To check if the service bulletins and modifications are
reviewed and action is taken. 4. To ensure that there are constant monitoring of engine
performance.
Untimely/ Irregular water wash of aircraft/ engines (aerodynamic deterioration)
Schedules for water wash for the aircraft/ engines
1. To review the schedules are current and aircraft/ engine age are taken into consideration for the frequency of water wash.
2. To ensure that the water wash schedules are taken into account during maintenance work plans.
3. To ensure that the logs are maintained for water wash and signed off by supervisory personnel.
Process Notes & Test Results 2. Monitoring of Service Bulletins & Modifications Bulletins Potential Risk Expected Controls Audit Testing/ Questions WP Ref./
Completion Date
Initials
Improper CBA on execution of SB/ MB
Review of the SB/ MB received
1. To ensure that there are CBA carried out on the SB/ MB received.