AAOM Handbook

WA.00 Approve Work/Expenditure Commitments Context For a business area to be successful in delivering its agreed output targets, at the lowest practical cost, it must complete the Right Work at the Right Time and in the Right Way. This work must also be completed sustainably, i.e. by dealing responsibly with safety, the environment, employees, communities, governments and asset life. Achieving these objectives entails a continuing series of decisions on the scope of work that is necessary to deliver the output targets, when the work needs to be done if ongoing performance sustainability is not to be compromised, and how all of the essential work can be completed within the constraints of the agreed expenditure budgets. While there are a large number of work packages to be processed in most business areas, a relatively small number of these have the potential for significant impact on process effectiveness, sustainability, and efficiency (the Pareto principle suggests that 20% of the work packages will produce 80% of the possible impact). While the necessity, timing and value of all work needs to be considered before it is undertaken, it is the quality of the approval/commitment decisions made on the significant 20% of work packages that will dominate the results achieved. Making these decisions requires consideration of;  Whether the work is really necessary (i.e. considering the Impact of not completing the work on achievement of the effectiveness, sustainability, and efficiency targets of the business area).  The standard or condition that the process needs to be operated or maintained in to meet future performance targets.  The required timing of the work, i.e. the time window within which the work can be completed without unreasonable risk to performance, and whether the work can be completed in stages, without hazards and risk.  The funds available to complete the work (i.e. were funds budgeted for the work, are resources available at no cost, or are funds available from another business area).  Whether other intended work may need to be adjusted to make funds available. There is frequently sufficient discretion within these parameters to enable effective management of work scope and timing to deliver all of the performance targets (effectiveness, sustainability, and efficiency). When there appears to be no available decision that allows all expectations to be met, it is essential that the potential unfavourable impacts be identified and escalated immediately.