Project Charter

1. Project Title : To improve the transfer of custody of project documents from RMs to HQ - RC (Records Center) Champion : Sharon HenryTeam Leader : Teresa “Bobbie” MontesaAsst. Team Leaders: Dorothy “Petite” Geronimo Philip Gutierrez Members :Janette “JV” Husmillo, Lorna Lyn Leonen

2. Project Charter Document No. OAFA-06-04/2W Project Title: To improve the transfer of custody of project documents from RMs to HQ – RC.Problem Statement: Project files created at the HQ are transmitted to RMs if delegated to them. In RMs, the projects undergo the project administration stage. These documents, which have accumulated to an average of 20 boxes per project, should then be transmitted back to HQ after a project completion report (PCR) has been done and circulated to the Board. There is no policy by which RMs must transmit back the projects files nor a deadline for them to comply. The project files remain in the RMs until they run out of space and that’s the time that they inquire on what to do with closed and PCRed files. These files need to be transmitted back to HQ because they undergo conversion and OED needs to have access to them for the preparation of PPAR, CAPE, SAPE and special evaluation studies. At the Records Center, these files undergo: (1) microfilming and conversion to CDs as part of business continuity and vital records protection; (2) await their disposal schedule (for non-permanent files), or; (3) transferred to the archives for permanent retention. Goal Statement: To ensure immediate HQ – RC custody of projects files for enhanced centralized access.

3. Project Charter Business Case: From 2001 to 2005, a total of 92 projects were PCRed in 12 RMs. Only 32 of these project files were transmitted back to HQ (35%). While the closed and PCRed project files remain in RM custody, access to the files is compromised. As part of the business continuity program of ADB, these project files need to be accessible and converted to electronic medium to ensure availability and replication in case of any emergency in the concerned RM. This Six Sigma project will seek a solution to ensure that closed and PCRed project files are immediately transmitted back to HQ for document conversion and protection and for OED purposes. The total six sigma project aims to cover four important issues to consider in transmitting RM delegated projects: security, integrity, access and cost. For this project, the team will look at access issues. For as long as the project files are not transmitted back to HQ, access is compromised and the requirements of HQ Records Center and OED are not met.

4. High Level Process MapProject Transmittal Process DEFINE START Project Processing by HQ Departments Project Processing Files turned over to RM Project Processing Files maintained in Respective HQ Depts. No Yes RM Delegated Project ? Project Administration Project Completion Send to OAFA-IR Records Center for Document conversion (CD and Microfilm) Microfilms Shipped to US Project Closed ProblemArea END

5. Detailed Process Map of Transmittal from RMs to RC-HQ

6. Detailed Cross Functional Map of the ADB Transmittal of Project Files

7. DEFINE

8. Time Line

9. Measure Project Documents Transmittal from HQ to RM SARD, prior to April 2006 reorganization, handled 6 RMs out of 21, representing 28% of all RMs. SARD Delegated Projects to Resident Missions as of 31 January 2006

10. Measure • ADB approved 73 projects in 2005 • Approximately 45 (61% based on sample gathered from SARD) of these will be delegated to RM’s • Each project generates approximately 20 boxes of documents • Approximately 900 boxes are expected to be transmitted back to HQ.

11. MEASURE RM Delegated Projects • Project Completion Reports (PCRs) are done approximately two (2) years after project closure. Projects should be sent to HQ-RC once PCRs are finished. • Defects are loan documents that have not been sent to HQ-RC even after having PCRs.

12. MEASURE Project Documents Period of Transmittal to HQ

13. Measure * OED Produces the following reports based on information from HQ and RM delegated project documents.

14. Measure

15. Measure High-Level Need: To increase turn-over of PCRed delegated projects to RC. Process Capability CTQ

16. Analyze • Quick Wins: • Projects delegated to RMs with Project Completion Reports (PCRs) are pro-actively monitored as to required transmittal date to HQ. • RM staff are made aware of current risks involved in delayed project transmittal to HQ and to rationalize use of RM file space.

17. Analyze Plan of Action

18. Analyze

19. Analyze Test for Normality Mean (20.606) is close to Median (21.000) But P-value < 0.05 therefore the distribution is non-normal

20. Process Capability Sixpack for non-normal data Ppk = -0.28 Process Capability = (1.5 + (-0.28*3)) = 0.66

21. Analyze MEASUREMENTS MATERIAL PERSONNEL - Unclassified documents - No dedicated Record Staff in RM - Lack of guidelines - Incomplete files - Lack of Records Management awareness of RM staff - No policy - Voluminous documents Low turn-over of PCRed delegated projects to RC. - Lack of space - Out-dated and low capacity servers - Hand-carried - No service bureaus in RMs - Location of RM - Air and Sea Mail - Low bandwidth - Lack of Document Repository System - Distance of RM from HQ - DHL ENVIRONMENT METHODS MACHINES/TECHNOLOGY

22. Improve

23. Improve Improved Process Map of Document Transmittal from RMs to RC-HQ

24. Control Data Gathered

25. Control

26. Control

27. Control Possible Results using Forecasted Data Test for Normality Mean (2.0047) is not so close to Median (2.2700) P-value < 0.05 therefore the distribution is non-normal

28. Control Ppk = 1.19 Process Capability = (1.5 + (1.19*3)) = 5.07 Capability Sixpack for non-normal distribution using Johnson Transformation.

29. APPENDICES A. Memo to call the attention of RMs with PCRed projects NOT YET transmitted to HQ-RC. To: CDs/AOs, RMs (names should be spelled out) Through: Amarjit S. Wasan, PD, OAS From: Sharon E. Henry, Head, OAFA-IR Subject:: Transmittal to HQ of Project Files of PCRed loans/TAs To provide its clients with better service, OAS has been reviewing its systems and procedures in records management. ADB’s vital records protection and business continuity programs require transmittal to Headquarters all completed delegated project files for which a PCR has been approved. This will ensure that the vital records are readily accessible and retained according to accepted records management practices and are available for audit and special evaluation studies. Attached is a list of delegated completed projects from your RM which have not been transmitted to HQ as of 15 July 2006. Please have your staff review and update the list and make arrangements with the Information Resources and Services Section of OAS to transmit the project files to HQ. On arrival, the files will be converted to electronic format and microfilmed for access and preservation. If you wish to have electronic copies, we can send them to you as soon as the conversion process has been completed (normally within a month). If you need clarification or more details please contact Sharon Henry, Head, OAFA-IR or Teresa S. Montesa (ext. 4264). Thank you for your cooperation.

30. B. Guidelines to be transmitted to RMs which will serve as our standard transmittal policy GUIDELINES IN THE TRANSMISSION OF CLOSED RM DELEGATED PROJECT FILES TO HQ-RECORDS CENTER 1. RATIONALE 1.1 Administrative Order No. 4.08, para. 7.1 mandates that “ records may be retained by authorized staff members only as long as these are in active use and thereafter should be sent… to the Records Center” of the Information Resources and Services Section of OAS. 1.2 Project files that already have Project Completion Reports (PCR) circulated to the Board. should then be transmitted back to the HQ-Records Center to undergo (1) SCANNING and conversion to CDs and microfilm rolls as part of the business continuity and vital records protection program of the Bank; (2) await their disposal schedule (for non-permanent files); and (3) transferred to Archives for permanent retention. 1.3 Delays in the non-transmittal of delegated project files compromise HQ accessibility of information contained in the records. These project files need to be accessible and converted to electronic medium to ensure availability and replication in case of any emergency. 2. APPLICABILITY 2.1 These Guidelines shall apply to all Resident Missions which have been delegated to handle the administration of project files, consistent with the Resident Mission Policy of 2001. 2.2 Moreover, it covers closed project files that have already been PCRed/TCRed and circulated to the Board. 2.3 All project files must be received by HQ-RC within 4 months after the circulation of the PCR/TCR.

31. 3. PROCEDURES 3.1 Records Center will send an electronic alert to the concerned RM requesting for the preparation and transmittal of the project files within 4 months from the date of PCR/TCR Board circulation. 3.2 Resident Missions are required that after receipt of the alert, they prepare the project file for transmittal to HQ-RC through: Ensuring that project processing files are chronologically arranged (see Annex 1 for a checklist of basic processing documents) Ensuring that project administration files are properly segmented (see Annex 2 for the list of segments) Integrating all counterpart files from the different RM staff involved with the project into one official file, checking them for possible duplication, retaining the original copies as well as all those files with important notations. Ensuring that projects are properly and correctly labeled (project title, loan number, segment number, folder number). Transferring completed projects from the cabinets into the shipping boxes for eventual shipment to HQ-RC 3.3 Concerned RM staff will fill-up a Records Storage Request (RSR) form available at the OAS intranet site for submission to HQ-RC. An copy will be automatically received by HQ-RC staff and will serve as a copy of intent. In the RSR, RM staff can indicate a request that an electronic copy of the complete project files be furnished to them. 3.4 Upon receipt by HQ-RC, an automated acknowledgement will be sent to concerned Country Director with timeframe for whence the electronic copy can be sent. RC will then initiate the following: Physically check the documents received against the submitted RSR as to number of folders sent and completeness of files vis-à-vis the checklist of project processing files and the project administration segments. RC will assign a location number and queue it for document preparation and conversion. If there are missing files or segments, concerned RM will be notified and await transmittal of said documents. The RSR data are then uploaded into the Records Center Control System. Hard copy project files would be converted into CD/microfilm. One microfilm copy will be sent to the National Underground Storage (NUS) Facility in the US; One CD copy will be sent to the concerned RM; One service copy will be retained; and 1 Master copy will be produced.

32. Vital Records Protection and Document Conversion Program Vital records contain information needed to re-establish or continue the business operations of an organization in the event of an emergency or a disaster. As part of ADB's vital records protection program, the Records Center converts paper records to CDs and microfilm rolls simultaneously. CDs serve as the service or reference copy. One master copy of microfilm roll is housed in an environmentally-controlled facility within the HQ premises (which is the Records Center) while another security copy is stored off-shore at the National Underground Storage in Pennsylvania, USA. Annex 1 Checklist of Project Processing Documents Loan No. _________ Country : __________ Project Title: __________________________________________________ Remarks ( ) Concept Clearance _______________________ ( ) Loan Application _______________________ ( ) Back-to-Office Reports ( ) Fact-Finding _______________________ ( ) Pre-Appraisal/Appraisal _______________________ ( ) Others _______________________ ( ) Position Paper for Fact-Finding _______________________ ( ) Project Brief ( ) Minutes of MRM Meeting _______________________ ( ) Minutes of SRC Meeting _______________________ ( ) Minutes of Loan Negotiations _______________________ ( ) Appraisal Report _______________________

33. ( ) RRP _______________________ ( ) Loan/Guarantee Agreements _______________________ ( ) Project Agreements/Other Agreements _______________________ ( ) Summary of Board Discussions _______________________ ( ) Loan Approval Memo _______________________ ( ) Press Release _______________________ ( ) Loan Effectivity Letter _______________________ ( ) Project Profile _______________________ ( ) SRC Draft of Appraisal Report _______________________ ( ) SRC Draft of RRP _______________________ ( ) Worksheets Supporting Cost Estimates _______________________ ( ) Basic Assumptions for Financial Projections _______________________

34. C. Proposed Long-Term Solution This is a draft narrative that will go into the Business Case which will be submitted to OIST. The Records 6-Sigma project will be a pilot for the bigger ISTS2 Document Repository project. It will target the three RM's (BRM, INRM, PRM) that we identified as having the most number of delegated projects. Purpose OAS is responsible for the overall security of records in ADB (AO 4.08 6b). In relation to this, one of the main tasks of the department’s Records and Archives unit in the Information Resources and Services Section is to collect and store all documents related to closed projects. These documents are then made part of the archives which are considered as ADB’s official depository and source of permanently valuable records (AO 4.08 4e). At the moment, there is a need to ensure that all such documents are properly forwarded to the section’s Archives. Strategic Issues & Background Since 2000, more and more projects have been delegated to the RM’s for project administration. When a project is delegated to an RM, all project processing files related to that project are sent to the RM. During the project lifecycle, the bulk of documents related to that project are generated in the RM. When the project closes, the project documents are shipped back to the Records Center for document conversion and archiving. On the average, an RM administered project produces 20 boxes of documents which will have to be shipped back to ADB HQ. These documents are then scanned and the images are stored on microfilm and CD-ROMs.

35. This transmittal of the documents back to ADB HQ poses a threat to the security of the project documents. Losses are bound to occur at any point from the packing of the documents, transport from the RM office to the pier, time spent at sea or on air, and transport from pier to ADB. This is just the risk in the transmittal process. There is also the risk of a disaster happening in the RM. Moreover, loss may also happen during the document filing process as most RM’s do not have staff assigned to do records management. • The physical filing of project documents in the RM’s raises an issue with regard to document access. Given this situation, there is a severe limitation in the accessibility of these documents as only staff in a specific RM have ready access to a set of project documents during the project administration phase. When a project closes, policy dictates that the responsibility for the project document should be transferred to the Records Center. However, the documents are still kept in the RM’s until a Project Completion Report (PCR) is made. It normally takes 2 years after project closing before the PCR is done. It then takes another 20 months on average before the documents are finally received here in ADB HQ. During all this time these documents are not accessible through the Records Center. • Benefits • The development of an electronic document repository will eliminate the need for the physical transmittal of project documents from RM’s to ADB HQ and effectively remove the risk of document loss. Having this system also assures business continuity in case of any disaster or emergency situation. • The availability of such a system will facilitate the document filing process and ensure the completeness of project documents. It will also provide enhanced access to the project documents. • The system will also save ADB the cost of shipping the documents as well as the cost of having to scan the physical documents to create electronic images.

36. The cost of shipping documents averages $75 per box. A project generates around 20 boxes of documents during its lifecycle. There were 73 projects approved in 2005 and approximately 42 of these are to be delegated to RM’s. For this group of projects alone, ADB will eventually pay around $60,000 to ship back the documents to ADB HQ. The cost of scanning documents is Php 1.77 per page. There are 2,000 document pages per box on average. That is roughly Php 3,500 to have a box of documents scanned. Again, for the 2005 approved and delegated projects alone, it would cost ADB Php 2,940,000 ($56,538.46) to have the project documents converted to electronic form. Investment Summary & Cash Flows This project could be treated as a pilot for the Document Repository project under ISTS2. Three RM’s (BRM, INRM, PRM) are targeted for pilot implementation as they have the most number of delegated projects.