How to approach a KPI-based inspection optimisation program?
As a result of the recent events, regulators are looking more at the costs of regulatory inspections and for ways to optimise them. There are two major approaches for regulators that aim to achieve that:
- Approach #1: They reduce the cost of inspection resources by minimising travel time between inspection jobs or reducing travel for non-critical inspections by adopting remote inspection procedures.
- Approach #2: They are increasing the value of the inspection outcomes and ensuring that high compliance standards are met, and the inspection process guarantees greater certainty about the condition of the inspected entities.
The two approaches are both serving inspection optimisation purposes but differently. By focusing on the reducing inspection costs (Approach #1), regulators usually seek to realise immediate impacts on cutting costs. In contrast, the focus on improving the inspection program by increasing compliance standards (Approach #2) enables regulators to realise longer-term value like fewer disruptions in inspection schedules and cost overruns due to re-work and overtime work.
Regulators aiming to embrace all of these benefits are challenged to gradually transform their operations by adopting different modules at different times that will eventually be integrated into a complete inspection software platform. This process takes time, but usually, specific areas that can be transformed to realise the most benefits are identified at its initial phase.
What else is included in the 1-st phase of transforming the inspection program?
Phase 1: Defining inspection performance KPIs
The inspection cycle includes many KPIs. When regulators identify the areas that can be transformed to bring the most benefits quickly, the focus usually falls on KPIs like operational uptime, inspector availability, time spent on travel, or others. When regulators transform their inspection management system with Canalix, we encourage them to set the KPI definition right.
Read more about the essential KPIs in inspection performance in our most-read blog post here.
What comes after defining the critical inspection performance KPIs?
Phase 2: Designing the KPI-based inspection optimisation program
The critical KPIs that will be used to track the success of transforming the inspection management system determine the specific inspection software modules adopted with time. Suppose the goal is to reduce overbooking and overcome the issue of inspector availability. In that case, the design of the optimised inspection program must be focused on adopting regulatory self-submission modules or embracing a self-service portal framework to introduce a self-inspection program to balance the inspectors’ availability.
If the regulator’s specific goals are to reduce travel time and fuel costs, then the optimisation plan must start with an inspection scheduling module.
Phase 3: After designing a good inspection optimisation plan, track and measure
Keeping track of the KPIs of the inspection management cycle serves to validate the success of the transformation. This validation can also serve as a feedback loop to identify other improvements and cost reduction opportunities. For that to happen, regulators need reliable digital transformation partners.
In this case study, you’ll see how we helped other regulators transform their inspection programs:
Case study: Reduce operational costs with inspection scheduling software
Read it to understand:
- The advantages of modular digital transformation
- The vital architectural practices and technologies that enable modular transformation
- How a regulatory agency in the UK is benefitting from a modular approach.
The digital transformation approach of Canalix to optimise inspections starts with aligning requirements and KPIs (as described above) and then following a modular digital transformation plan.
The case studies from the regulators we work with in the UK show that our approach delivers consistent outcomes. That’s why we work with confidence when solving the problems of regulatory authorities and other public sector organisations. As you consider a new approach to address the cost of inspections in your regulatory agency, be sure you are working with an inspection software company with the right system to help you achieve your goals.
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