IMPLEMENTATION OF PERIODICAL

TECHNICAL INSPECTION PROGRAM  

STAGE 2– ACTIVITY H
Provision of support in the process of implementation
of the periodic technical inspection system / drafting of
other additional necessary recommendations.
Implementation of an audit system

For LEPL “Unified National Body of Accreditation –

Accreditation Center” of the Ministry of Economy and
Sustainable Development of Georgia
 IMPLEMENTATION OF PERIODICAL TECHNICAL INSPECTION PROGRAM
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TA BLE OF CON T ENTS

1  DEFINITION. TERMINOLOGY ........................................................................................................ 4 
2  INSPECTION AND AUDIT............................................................................................................... 4 
2.1  Advice and support ................................................................................................................. 5 
2.2  Source of funding .................................................................................................................... 5 
3  INTERNATIONAL STANDARD ISO/IEC17020:2012 ...................................................................... 5 
3.1  Requirements for the Operation of Various Types of Bodies Performing Inspection.
Impartiality, Independence and Confidence ........................................................................................ 5 
3.2  Personnel Requirements......................................................................................................... 6 
3.2.1  Job description for technical manager of inspection body .................................................. 6 
3.2.2  Job description for vehicle inspector of inspection body ..................................................... 7 
3.2.3  Information to provide to the Accreditation Centre by PTI Center ...................................... 8 
3.3  Process Requirements ............................................................................................................ 8 
3.3.1  Inspection Methods and Procedures .................................................................................. 8 
3.3.2  Handling Inspection Items and Samples ............................................................................. 9 
3.3.3  Inspection Records. Vehicle Inspection Record (VIR) ........................................................ 9 
3.3.4  Inspection Reports and Inspection Certificates................................................................... 9 
3.3.5  Complaints and Appeals ................................................................................................... 10 
3.4  Management System Requirements ..................................................................................... 11 
3.4.1  Management System Documentation ............................................................................... 11 
3.4.2  Control of Documents ....................................................................................................... 11 
3.4.3  Control of Records ............................................................................................................ 12 
3.4.4  Management Review ........................................................................................................ 12 
3.4.5  Internal Audits ................................................................................................................... 12 
3.4.6  Corrective Actions ............................................................................................................. 13 
3.4.7  Preventive Actions ............................................................................................................ 13 
4  DECREE 511, DECREE 510 – GOVERNMENT OF GEORGIA ................................................... 14 
5  INTERNAL CONTROL................................................................................................................... 14 
6  ITERCOMPARISON METHODOLOGY......................................................................................... 15 
6.1  Scope .................................................................................................................................... 15 
6.2  Inter-comparison List ............................................................................................................. 15 
6.2.1  Inter-comparison 1: % of inspection rejection and major defects (quantity) over vehicle
rejected .......................................................................................................................................... 16 
6.2.2  Inter-comparison 2: period of time consumed between the inspection rejected and the re-
inspection passed .......................................................................................................................... 16 
6.2.3  Inter-comparison 3: major defect per Code of Practice´s chapter .................................... 17 
6.2.4  Inter-comparison 4: Major defect per sub-chapter of Code of Practice ............................ 17 
6.2.5  Threshold of tolerance ...................................................................................................... 17 
7  APPENDICES ................................................................................................................................ 17 

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7.1  Appendix 1: Recommendations for the Implementation of An Audit System: Templates .... 17 
7.2  Appendix 2: Recommendations for the Implementation of an Audit System: Maintenance
Routine and Calibration Plan ............................................................................................................. 17 
7.3  Appendix 3: Audit Program ................................................................................................... 17 
7.4  Appendix 4: Procedure on Internal Audits ............................................................................ 18 
7.4.1  PURPOSE ......................................................................................................................... 18 
7.4.2  SCOPE .............................................................................................................................. 18 
7.4.3  RESPONSIBILITY ............................................................................................................. 18 
7.4.4  DEFINITIONS.................................................................................................................... 18 
7.4.5  ASSOCIATED DOCUMENTS ........................................................................................... 18 
7.4.6  PROCEDURE ................................................................................................................... 18 
7.4.7  RECORDS ........................................................................................................................ 18 
8  NORMATIVE, REFERENCES AND BIBLIOGRAPHY .................................................................. 19 
 

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1 D EF IN I T ION . T ER M INO LOG Y

The consultant keeps the same terminology described and exposed in the last deliverables. We add:
1) “Audit fee to the Supervising Body”; source of funding to implement the audit program
2) “Appeal”; means request by the provider of the item of inspection to the inspection body for
reconsideration by that body of a decision it has made relating to that item
3) “Code of Practice”; means a standard inspection method that has been published or followed
for example, in international, regional or national standards, or by reputable technical
organizations or by co-operation of several inspection bodies or in relevant scientific text or
journals. This means that methods developed by any other means, including by the inspection
body itself or by the client, are considered to be non-standard methods
4) “Complaint”; means expression of dissatisfaction, other than appeal, by any person or
organization to an inspection body, relating to the activities of that body, where a response is
expected
5) “Freedom from conflict of interest”; means impartiality or neutrality or fairness
6) “Impartiality”; means presence of objectivity
7) “Inspection”; means examination of a process, service, or installation or their design and
determination of its conformity with specific requirements or, on the basis of professional
judgment, with general requirements. Inspection of processes can include personnel,
facilities, technology or methodology
8) “Inspection scheme”; means inspection system to which the same specified requirements,
specific rules and procedures apply
9) “Inspection system”; means rules, procedures, and management for carrying out inspection
10) “Manual of Procedure”; means code of practices
11) “Objectivity”; means that conflicts of interest do not exist or are resolved so as not to
adversely influence subsequent activities of the inspection body. Balance
12) “Process”; means set of interrelated or interacting activities which transforms inputs into
outputs
13) “Product”; means result of a process
14) “Service”; result of at least one activity necessarily performed at the interface between the
supplier and the customer, which is generally intangible. In roadworthiness provision of a
service involves an activity performed on a customer-supplied tangible product (the vehicle)
15) “Vehicle Inspection Report (VIR)”; means that the work carried out by the inspection body
shall be covered by a retrievable inspection report or inspection certificate

2 IN SPEC TION AND AUD IT

The Supervising Body shall have the right for purpose of determining the standards of service or
compliance with the terms of the regulation under it, to inspect, audit or conduct a survey of any
aspect related to the PTI services.
The Supervising Body will monitor the inspection service to ensure that it is delivering to agreed
performance standards and shall specifically be entitle to carry out planned and random check test on
samples or vehicle inspected during the term of the PTI operator´s accreditation or agreement. The
Supervising Body will have full and unrestricted access to the PTI operator´s premises and all relevant
information and documents held by or created by it in delivering the vehicle inspection service.
Supervising body will make periodic inspections of the PTI centres to ensure that they are fulfilling its
obligations under the agreement, contract or accreditation scope.

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2.1 A DVICE AND SUPPORT

Supervising Body shall be reinforced or rethink (new organism), and advised and supported by
external body on any matters relating to the vehicle inspection service.

2.2 S OURCE OF FUNDING

Funds to implement the audit program shall be provided in full by the PTI operators. The operators
shall be charged with an audit fee, which we recommend to be related (percentage) with the fees to
be paid by car owners to be given the PTI service.

3 INTERNA TIONA L STANDARD ISO/IEC1702 0:2012

All other matters regarding requirement to PTI centers that go beyond the scope of local legislation
are governed by ISO/IEC 17020:2012 which helps to the Georgian government to control the
roadworthiness system.
This International Standard has been drawn up with the objective of promoting confidence in bodies
performing inspection.
Inspection bodies carry out assessments on behalf of private clients, their parent organizations, or
authorities, with the objective of providing information about the conformity of inspected items with
regulations, standards, specifications, inspection schemes or contracts. Inspection parameters include
matters of quantity, quality, safety, fitness for purpose, and continued safety compliance of
installations or systems in operation. The general requirements with which these bodies are required
to comply in order that their services are accepted by clients and by supervisory authorities are
harmonized in this International Standard.
This International Standard covers the activities of inspection bodies whose work can include the
examination of materials, products, installations, plants, processes, work procedures or services, and
the determination of their conformity with requirements and the subsequent reporting of results of
these activities to clients and, when required, to authorities. Inspection can concern all stages during
the lifetime of these items, including the design stage. Such work normally requires the exercise of
professional judgement in performing inspection, in particular when assessing conformity with general
requirements.
This International Standard can be used as a requirements document for accreditation or peer
assessment or other assessments.
This set of requirements can be interpreted when applied to particular sectors.
Inspection activities can overlap with testing and certification activities where these activities have
common characteristics. However, an important difference is that many types of inspection involve
professional judgement to determine acceptability against general requirements, for which reason the
inspection body needs the necessary competence to perform the task.
Inspection can be an activity embedded in a larger process. For example, inspection can be used as
a surveillance activity in a product certification scheme. Inspection can be an activity that precedes
maintenance or simply provides information about the inspected item with no determination of
conformity with requirements. In such cases, further interpretation might be needed.
The categorization of inspection bodies as type A, B or C is essentially a measure of their
independence. In roadworthiness, inspection bodies belong to type A category.
Demonstrable independence of an inspection body can strengthen the confidence of the inspection
body's clients with respect to the body's ability to carry out inspection work with impartiality

3.1 R EQUIREMENTS FOR THE O PERATION OF V ARIOUS T YPES OF B ODIES

P ERFORMING I NSPECTION . I MPARTIALITY , I NDEPENDENCE AND C ONFIDENCE
Inspection activities shall be undertaken impartially. The supervising body shall be responsible for the
impartiality of its inspection activities and shall not allow commercial, financial or other pressures to

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compromise impartiality. The inspection body shall identify risks to its impartiality on an ongoing basis.
This shall include those risks that arise from its activities, or from its relationships, or from the
relationships of its personnel. However, such relationships do not necessarily present an inspection
body with a risk to impartiality.
A relationship that threatens the impartiality of the inspection body can be based on ownership,
governance, management, personnel, shared resources, finances, contracts, marketing (including
branding), and payment of a sales commission or other inducement for the referral of new clients, etc.
If a risk to impartiality is identified, the supervising body shall be able to demonstrate how it eliminates
or minimizes such risk.
The inspection body shall be independent to the extent that is required with regard to the conditions
under which it performs its services. An inspection body providing third party inspections shall meet
the type A requirements of Clause A.1 (third party inspection body).
The inspection body shall be responsible, through legally enforceable commitments, for the
management of all information obtained or created during the performance of inspection activities.
The inspection body shall inform the client, in advance, of the information it intends to place in the
public domain.
Except for information that the client makes publicly available, or when agreed between the inspection
body and the client (e.g. for the purpose of responding to complaints), all other information is
considered proprietary information and shall be regarded as confidential.

3.2 P ERSONNEL R EQUIREMENTS

The inspection body shall assess the competence requirements for all personnel involved in PTI
activities, including requirements for education, training, technical knowledge, skills and experience.
The competence requirements can be part of the job description based in current regulation,
Georgian Government, December 1st, 2017 as Decree 511, article 12, inc.1

3.2.1 JOB DESCRIPTION FOR TECHNICAL MANAGER OF INSPECTION BODY

Primary Responsibilities
 To whom is given the responsibility, control and managing of the PTI process
 He / She shall be responsible to ensure the impartiality and objectivity of the inspection
process.
 Responsible for the day to day management and supervision of assigned PTI Centre
operations to ensure that operations are run smoothly and according to inspection body
quality guidelines
 Responsible for the application of the rules of procedure for both technical and administrative
at the PTI Centre
 He / She is responsible to lead the processes upon Decrees 510 and 511, and current
regulation, inspection procedures, service, inspection equipment maintenance and calibration,
administrative arrangements and disciplinary processes.
 He / She may also be entrusted to manage appeal/complaint process upon the international
standard in concordance of the accreditation scope
Specific Responsibilities
 Ensure that all PTI Centre operations are carried out according to agreed procedures and in
line with inspection body quality standards
 Supervise and review the performance of all PTI Centre staff to ensure quality of the PTI
Centre operations

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 Uphold safety, health, environment and quality requirements and standards and ensure
system equipment integrity
 Work on maintenance plan to ensure that all PTI Centre maintenance activities are carried out
according to schedule
 Maintain full records of both technical and administrative work at PTI Centre; prepare with
monthly frequency management report on PTI Centre operations.
 Ensure new procedures and processes to be introduced as part of PTI Centre operations are
effectively and clearly communicated to all PTI Centre staff and assisting with training on the
same, as required.
 Mentor and train all staff and manage the team to ensure the best is derived from them at all
times;
 Develop and maintain partnerships with the local authorities, partners and the general within
the PTI Centre area of operation
Profile
 Bachelor’s degree in engineering (Mechanical, Electrical or Automotive)
 Minimum 1 year experience in a similar role, with experience in supervision of staff
 Engineer Board Registration Certificate required
 Fully trained in Vehicle Inspection per inspection body training guidelines
Required Skills
 Ability to manage, coordinate and lead a team towards a common goal.
 Ability to interact with all levels of management, third-party providers, clients, internal &
external customers.
 Ability to work autonomously and to plan/coordinate several activities simultaneously
 Technical knowledge and experience in related field
 Good communication, negotiation and interpersonal skills.
 Acts quickly and decisively; able to make tough calls.
 Works well under pressure, challenges status quo.
Applies judgment and acts according to the standards of independent, impartiality, ethics and
integrity.

3.2.2 JOB DESCRIPTION FOR VEHICLE INSPECTOR OF INSPECTION BODY

Primary Responsibilities
 To conduct and supervise vehicle inspection and issue certificates as required upon
completion of inspection. May be required to perform other duties as required in an efficient
manner, offering quality standard of service to clients (car owners)
 To be appointed as quality controller
Reporting to
 Technical Manager
Specific Responsibilities
 To effectively conduct and supervise the vehicle inspection in all lanes as per standard
procedure; responsible to ensure that inspectors undertake inspections as required.
 To ensure that all parameters are checked prior to issuing certificate.

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 Responsible to sign, upon station manager supervision and on behalf of inspection body, all
certificates prior to issuing to clients.
 Draw work and maintenance schedules
 Take responsibility for general health and safety at the test centre
 At all times, comply with the standards of independent, impartiality, ethics and integrity
 Undertake other duties required to maintain an effective test centre to be carried out as the
quality control:
o inspection routines and procedures
o testing standards
o handling testing equipment
o processing of the inspection results
Profile
 Motor Trade Certificate or National Craft Certificate or Diploma in Automotive /Mechanical
Engineering or its equivalent. Bachelor’s degree in Engineering is an added advantage
 Fully trained in Vehicle Inspection per inspection body training guidelines
 Minimum 1 year experience with vehicle mechanics is required, with experience in
supervision of mechanical workshop.
Required Skills
 Driving licence in concordance with accreditation scope for the PTI Center by which he / she
has been nominated
 Should be able to work with minimum supervision.
 Good communication skills both written and verbal.
 Excellent time management.
 Be a hands on person
 A team player.
 Be ethical and of high integrity.
 Flexibility

3.2.3 INFORMATION TO PROVIDE TO THE ACCREDITATION CENTRE BY PTI CENTER

The inspection body shall provide following information to the accreditation center the following
information:
 any changing to the list of inspectors
 modification in the training and certifications status of each inspector
 modification in the employment terms of the inspector

3.3 P ROCESS R EQUIREMENTS

3.3.1 INSPECTION METHODS AND PROCEDURES

The inspection body shall use the methods and procedures for inspection which are defined in the
requirements against which inspection is to be performed.

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The requirements against which the inspection is performed are normally specified in regulations,
standards or specifications, inspection schemes or contracts. Code of Practice or Manual of
Procedure for Periodic Technical Inspection.
The inspection body shall have sufficient knowledge of statistical techniques to ensure statistically
sound sampling procedures and the correct processing and interpretation of results.
All instructions, standards or written procedures, worksheets, check lists and reference data relevant
to the work of the inspection body shall be maintained up-to-date and be readily available to the
personnel.
The inspection body shall have a contract or work order control system which ensures that:
Work to be undertaken is within its expertise and that the organization has adequate resources to
meet the requirements; resources can include, but are not limited to, facilities, equipment, reference
documentation, procedures or human resources.
The requirements of those seeking the inspection body's services are adequately defined and that
special conditions are understood, so that unambiguous instructions can be issued to personnel
performing the duties to be required;
Work being undertaken is controlled by regular review and corrective action;
The requirements of the contract or work order have been met.
Observations or data obtained in the course of inspections shall be recorded in a timely manner so as
to prevent loss of relevant information (automated process). Calculations and data transfers shall be
subject to appropriate checks.
The inspection body shall have documented instructions for carrying out inspection in a safe manner

3.3.2 HANDLING INSPECTION ITEMS AND SAMPLES

The inspection body shall ensure items and samples to be inspected are uniquely identified in order to
avoid confusion regarding the identity of such items and samples.
Any apparent abnormalities notified to, or noticed by, the inspector shall be recorded. Where there is
any doubt as to the item's suitability for the inspection to be carried out, or where the item does not
conform to the description provided, the inspection body shall contact the client before proceeding.
The inspection body shall have documented procedures and appropriate facilities to avoid
deterioration or damage to inspection items while under its responsibility.

3.3.3 INSPECTION RECORDS. VEHICLE INSPECTION RECORD (VIR)

The inspection body shall maintain a record system to demonstrate the effective fulfilment of the
inspection procedures and to enable an evaluation of the inspection. The inspection report or
certificate shall be internally traceable to the inspector who performed the inspection.

3.3.4 INSPECTION REPORTS AND INSPECTION CERTIFICATES

The work carried out by the inspection body shall be covered by a retrievable inspection report or
inspection certificate.
Any inspection report/certificate shall include all of the following:
 Identification of the issuing body;
 Unique identification and date of issue;
 Date(s) of inspection;
 Identification of the item(s) inspected;
 Signature or other indication of approval, by authorized personnel;
 A statement of conformity where applicable;

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 The inspection results

This information listed above shall be reported correctly, accurately, and clearly. Corrections or
additions to an inspection report or inspection certificate after issue shall be recorded in accordance
with all relevant requirements mentioned. An amended report or certificate shall identify the report or
certificate replaced.
Supervising Body proposal in use

3.3.5 COMPLAINTS AND APPEALS

The inspection body shall have a documented process to receive, evaluate and make decisions on
complaints and appeals. A description of the handling process for complaints and appeals shall be
available to any interested party upon request. Upon receipt of a complaint, the inspection body shall
confirm whether the complaint relates to inspection activities for which it is responsible and, if so, shall
deal with it. The inspection body shall be responsible for all decisions at all levels of the handling
process for complaints and appeals.
Investigation and decision on appeals shall not result in any discriminatory actions.
The handling process for complaints and appeals shall include at least the following elements and
methods:
 A description of the process for receiving, validating, investigating the complaint or appeal,
and deciding what actions are to be taken in response to it;
 Tracking and recording complaints and appeals, including actions undertaken to resolve
them;
 Ensuring that any appropriate action is taken.
The inspection body receiving the complaint or appeal shall be responsible for gathering and verifying
all necessary information to validate the complaint or appeal. Whenever possible, the inspection body

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shall acknowledge receipt of the complaint or appeal, and shall provide the complainant or appellant
with progress reports and the outcome. The decision to be communicated to the complainant or
appellant shall be made by, or reviewed and approved by, individual(s) not involved in the original
inspection activities in question. Whenever possible, the inspection body shall give formal notice of
the end of the complaint and appeals handling process to the complainant or appellant.

3.4 M ANAGEMENT S YSTEM R EQUIREMENTS

The inspection body shall establish and maintain a management system that is capable of achieving
the consistent fulfilment of the requirements of this International Standard in accordance with Option
A of ISO 17020:2012. In this case, the management system of the inspection body shall address the
following:
 Management system documentation
 Control of documents
 Control of records
 Management review
 Internal audit
 Corrective actions
 Preventive actions
 Complaints and appeals

3.4.1 MANAGEMENT SYSTEM DOCUMENTATION

The inspection body's top management shall establish, document, and maintain policies and
objectives for fulfilment of this International Standard and shall ensure the policies and objectives are
acknowledged and implemented at all levels of the inspection body's organization.
The top management shall provide evidence of its commitment to the development and
implementation of the management system and its effectiveness in achieving consistent fulfilment of
this International Standard.
The inspection body's top management shall appoint a member of management who, irrespective of
other responsibilities, shall have responsibility and authority that include the following:
a) Ensuring that processes and procedures needed for the management system are
established,
b) Implemented and maintained; and
c) Reporting to top management on the performance of the management system and any need
for improvement.
All documentation, processes, systems, records, etc. related to the fulfilment of the requirements of
this International Standard shall be included, referenced, or linked to documentation of the
management system.
All personnel involved in inspection activities shall have access to the parts of the management
system documentation and related information that are applicable to their responsibilities.

3.4.2 CONTROL OF DOCUMENTS

The inspection body shall establish procedures to control the documents (internal and external) that
relate to the fulfilment of this International Standard.
The procedures shall define the controls needed to:
a) Approve documents for adequacy prior to issue;

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b) Review and update (as necessary) and re-approve documents;

c) Ensure that changes and the current revision status of documents are identified;
d) Ensure that relevant versions of applicable documents are available at points of use;
e) Ensure that documents remain legible and readily identifiable;
f) Ensure that documents of external origin are identified and their distribution controlled;
g) Prevent the unintended use of obsolete documents, and apply suitable identification to them if
they are retained for any purpose.
Documentation can be in any form or type of medium, and includes proprietary and in-house
developed software.

3.4.3 CONTROL OF RECORDS

The inspection body shall establish procedures to define the controls needed for the identification,
storage, protection, retrieval, retention time and disposition of its records related to the fulfilment of
this International Standard.
The inspection body shall establish procedures for retaining records for a period consistent with its
contractual and legal obligations, (three years). Access to these records shall be consistent with the
confidentiality arrangements.

3.4.4 MANAGEMENT REVIEW

The inspection body's top management shall establish procedures to review its management system
at planned intervals, in order to ensure its continuing suitability, adequacy and effectiveness, including
the stated policies and objectives related to the fulfilment of this International Standard.
These reviews shall be conducted at least once a year. Alternatively, a complete review broken up
into segments (a rolling review) shall be completed within a 12-month time frame. Records of reviews
shall be maintained.
The input to the management review shall include information related to the following:
a) Results of internal and external audits;
b) Feedback from clients and interested parties related to the fulfilment of this International
Standard;
c) The status of preventive and corrective actions;
d) Follow-up actions from previous management reviews;
e) The fulfilment of objectives;
f) Changes that could affect the management system;
g) Appeals and complaints.
The outputs from the management review shall include decisions and actions related to:
a) Improvement of the effectiveness of the management system and its processes;
b) Improvement of the inspection body related to the fulfilment of this International Standard;
c) Resource needs.

3.4.5 INTERNAL AUDITS

The inspection body shall establish procedures for internal audits to verify that it fulfils the
requirements of this International Standard and that the management system is effectively
implemented and maintained. ISO 19011 provides guidelines for conducting internal audits.

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An audit program shall be planned, taking into consideration the importance of the processes and
areas to be audited, as well as the results of previous audits.
The inspection body shall conduct periodic internal audits covering all procedures in a planned and
systematic manner, in order to verify that the management system is implemented and is effective.
Internal audits shall be performed at least once every 12 months. The frequency of internal audits
may be adjusted depending on the demonstrable effectiveness of the management system and its
proven stability.
The inspection body shall ensure that:
a) Internal audits are conducted by qualified personnel knowledgeable in inspection, auditing
and the requirements of this International Standard;
b) Auditors do not audit their own work;
c) Personnel responsible for the area audited are informed of the outcome of the audit;
d) Any actions resulting from internal audits are taken in a timely and appropriate manner;
e) Any opportunities for improvement are identified;
f) The results of the audit are documented.

3.4.6 CORRECTIVE ACTIONS

The inspection body shall establish procedures for identification and management of nonconformities
in its operations.
The inspection body shall also, where necessary, take actions to eliminate the causes of
nonconformities in order to prevent recurrence.
Corrective actions shall be appropriate to the impact of the problems encountered.
The procedures shall define requirements for the following:
a) Identifying nonconformities;
b) Determining the causes of nonconformity;
c) Correcting nonconformities;
d) Evaluating the need for actions to ensure that nonconformities do not recur;
e) Determining the actions needed and implementing them in a timely manner;
f) Recording the results of actions taken;
g) Reviewing the effectiveness of corrective actions.

3.4.7 PREVENTIVE ACTIONS

The inspection body shall establish procedures for taking preventive actions to eliminate the causes
of potential nonconformities.
Preventive actions taken shall be appropriate to the probable impact of the potential problems.
The procedures for preventive actions shall define requirements for the following:
a) Identifying potential nonconformities and their causes;
b) Evaluating the need for action to prevent the occurrence of nonconformities;
c) Determining and implementing the action needed;
d) Recording the results of actions taken;
e) Reviewing the effectiveness of the preventive actions taken.

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4 D ECR EE 511, DECREE 510 – GO VERNMENT OF G EOR G IA

The provider (applicant) shall examine and have no reservations to the Bidding Document (RFP) for
periodical technical inspection services in Republic of Georgia, specifically de Technical Regulation
adopted by the Georgian Government, Decree 511, 1st of December 2017.
Initial audit shall adjust to the technical regulation adopted by Georgian Government, Decree 511,
December 1st, 2017, on approval of requirements for the facilities and buildings, equipment and
personnel´s technical qualification for periodical technical inspection centres.
In this case we are referring to meet the requirements towards the building, the equipment of the
periodical technical inspection centres, and the technical qualification of personnel and training,
described in previous deliverables and collected in the provisions of Technical Regulation laying down
currently for PTI Centres by Government of Georgia.
On the other hand, ISO 17020 shall be followed by the PTI operators. This means that they have to
adjust their activities to this international standard, which covers the activities of inspection bodies
whose work can include the examination of materials, products, installations, plants, processes, work
procedures or services, and the determination of their conformity with requirements and the
subsequent reporting of results of these activities to clients and, when required, to authorities. PTI
System is a public service to be regulated and monitored by Government´s authorities, hence PTI
activity shall require the exercise of professional judgement in performing inspection, in particular
when assessing conformity with general requirements.
Reporting and performance review is a phrase to describe the obligation of the PTI Centres to report
to governmental agencies. It is a mandatory activity and the PTI shall demonstrate that it has the right
information system to generate, to evaluate and to transmit the suitable information to monitor and
control the PTI service development. The content of these reports are described in this audit
deliverable, see appendix accordingly, which follows ratios or KPIs described in international
standards and based in the best practices.

5 INTERNA L CON TROL

Internal control is a process to carry out for PTI operated, effected by themselves to provide
reasonable assurance regarding the achievement of objectives in the following categories:
a) Effectiveness and efficiency of operation
b) Reliability of financial reporting
c) Compliance with applicable laws and regulations
Internal controls are business processes that provide reasonable insurance regarding several key
business objectives:
a) That the business is operating efficiently,
b) That the assets are well protected,
c) That the company’s reputation is well protected,
d) That reporting is reliable and that the business is in compliance with applicable regulations
and internal procedures,
e) That all employees adhere to policies and procedures
Upon ISO 17020:2012, internal control is a quite recommended tool and it shall be split in:
a) Preventative, (proactive) controls (authorizations, approval, verification, security of assets) are
what PTI centre strives to implement. This type of control is aimed at preventing any errors or
irregularities from occurring which may have negative effects on PTI Centre.
b) Detective; detective controls (review of performances, reconciliation, physical inventories,
audits…) are designed to find out and discover the different errors or irregularities which may
have occurred and thus, can affect the PTI's ability to achieve its objectives

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6 IT ERC OMPAR ISON METH ODOLO GY

PTI operators shall follow upon Supervising Body a procedure to compare the results coming from
inspection process to guarantee high quality level.
This procedure shall develop an information system which shall allow to identify all inspections
performed and its final result. So, Supervising Body shall carry out a right control.
PTI Centres shall carry out an IT System whereby inspection data shall be transferred by web service
containing the inspection report.
This report shall provide the information appropriated to allow transparency and uniformity for any
inspection performed in any PTI Centre. All of them adjusted to the Code of Practice in force. This
procedure shall allow to compare the uniformity level between all PTI Centres.
The information provided by PTI Centres shall not include personnel data from the car owners and shall
be able to generate statistics useful for PTI system stakeholders.

6.1 S COPE
Inspections and re-inspections performed in a specific period of time linked with all categories of
vehicles.

 Categories of Vehicles  

 Vehicles for the carriage of passengers (private) and comprising no more than eight seats in addition to the driver’s seat, 
and having a maximum mass (“technically permissible maximum laden mass”) not exceeding 3.5 tons (M1) 

 Motorcycles (L1 , L2 , L3) 

 Carrying passengers 

 Vehicles for the carriage of passengers and comprising no more than eight seats in addition to the driver’s seat, and having 
a maximum mass (“technically permissible maximum laden mass”) not exceeding 3.5 tons (M1) 

 Vehicles for the carriage of passengers, comprising more than eight seats in addition to the driver’s seat, and having a 
maximum mass (“technically permissible maximum laden mass”) not exceeding 5 tons (M2) 

 Vehicles designed and constructed for the carriage of passengers, comprising more than eight seats in addition to the 
driver’s seat, and having a maximum mass exceeding 5 tons (M3) 
 Carrying goods 

 Vehicles for the carriage of goods and having a maximum mass not exceeding 3.5 tonnes (N1) 

 Vehicles for the carriage of goods and having a maximum mass exceeding 3.5 tonnes (N2, N3) 

 Traillers  (O1, O2, O3, O4) 

6.2 I NTER - COMPARISON L IST

The statistics analysis designed shall contain big detail of information allowing to know which
inspection points generate a satisfactory or unsatisfactory inspection, as well as its time for a repair.
This application shall allow to recognize which PTI Centres show diversion regarding the standard
parameters.The lists proposed are as follow:
 Percentage of inspection rejection and number of mayor defect over vehicle rejected
 Period of time between the inspection failed and the re-inspection passed

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 Major defect per Code of Practice chapter

 Major defect per Code of Practice sub-chapter

6.2.1 INTER-COMPARISON 1: % OF INSPECTION REJECTION AND MAJOR DEFECTS (QUANTITY) OVER

VEHICLE REJECTED
Objective: to analyze the % of rejection per PTI Centre, per category of vehicle and the number of
major defect over vehicle rejected, comparing regarding all fleet in use.
Scope: Inspections
Lists:
a) per PTI Centre (rows) and category of vehicle:
o % of rejection
o Number of major defect per vehicle inspected
b) Columns: Total (Over):
o Number of inspections performed
o % of rejection of inspections
c) The last row (all fleet in use in the country), shall show the same information but related to the
all fleet.
Calculus Methodology: as per each category of vehicle, it shall divide the number of inspections
rejected over the total number of inspections performed multiply by 100.
It shall divide the total number of major defects met in inspections rejected over the total number of
vehicle rejected.

6.2.2 INTER-COMPARISON 2: PERIOD OF TIME CONSUMED BETWEEN THE INSPECTION REJECTED AND THE
RE-INSPECTION PASSED
Objective: to analyze the time passed between the inspection rejected and the re-inspection passed.
It shall determine the % of inspection rejected, which have been sorted out in a re-inspection passed
as per the period of time considered.
Scope: all re-inspection with satisfactory result
Lists: per each PTI Centre and period of time considered, it shall report the % of re-inspection with
satisfactory result over the number of inspection failed.
a) The last column is the standard deviation according with its math formula
b) The last row shall show the same information, but related to all the fleet in use
Calculus Methodology: as per the period to take in consideration, it shall count the re-inspection with
satisfactory result and its inspection previously failed, taking the period of time between both and
generating the following intervals:
 Less than 1 hour
 Between 1 and 3 hours
 Between 3 and 24 hours
 Between 1 and 2 days
 Between 2 and 15 days
 More than 15 days

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6.2.3 INTER-COMPARISON 3: MAJOR DEFECT PER CODE OF PRACTICE´S CHAPTER

Objective: to analyze according to the Code of Practice´s chapters, the major defects detected by
each PTI Centre.
Scope: Inspections rejected
Lists: per each PTI Centre and category of vehicles, it shall determine the total number of major defects
got between all inspections rejected and the ratio of number of defects over 100 inspections, classified
as per the Code of Practice´s chapters.
a) The last column shall determine the number of inspection with unsatisfactory result
b) The last row shall determine the same information but related to the all fleet in use
Calculus Methodology: it shall determine all major defects found in the total number of inspection
rejected, classified per category of vehicle and Code of Practice´s chapter.
The ratio (major defect / 100 inspections), shall determine the total number of defects found between
number of inspections performed, multiplied by 100.

6.2.4 INTER-COMPARISON 4: MAJOR DEFECT PER SUB-CHAPTER OF CODE OF PRACTICE

This inter-comparison is similar to the prior inter-comparison, but related to the Code of Practice´s sub-
chapters.

6.2.5 THRESHOLD OF TOLERANCE

The results follow a normal distribution or Gauss Bell. This distribution fits an average and standard
deviation, values easy to get.
We must consider that 68,25 % of values are within average value of the Gauss Bell ± standard
deviation, accepting ±10 regarding to the average.

7 APPENDICES

7.1 A PPENDIX 1: R ECOMMENDATIONS FOR THE I MPLEMENTATION OF A N A UDIT

S YSTEM : T EMPLATES
a) Audit Work Request Form:
b) Assessment application operator and start-up,
c) Assessment operational way: upon ISO 17020:2012

7.2 A PPENDIX 2: R ECOMMENDATIONS FOR THE I MPLEMENTATION OF AN A UDIT

S YSTEM : M AINTENANCE R OUTINE AND C ALIBRATION P LAN

7.3 A PPENDIX 3: A UDIT P ROGRAM

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7.4 A PPENDIX 4: P ROCEDURE ON I NTERNAL A UDITS

7.4.1 PURPOSE
This procedure outlines guidelines to ensure that the internal audit function is adequate to effectively
achieve the implementation, maintenance and continual improvement of the PTI Management
System.

7.4.2 SCOPE
This procedure covers planning, scheduling, reporting and follow-up of internal audits in PTI Centre in
accordance with the implemented ISO certification and accreditation standards.

7.4.3 RESPONSIBILITY
All personnel involved in the planning, establishment, implementation, and maintenance of this
management system are responsible for performance in accordance with this procedure.

7.4.4 DEFINITIONS
The definitions of ISO 9000, ISO 9001 and ISO 17020 apply.

7.4.5 ASSOCIATED DOCUMENTS

a) Management and Operational Manual
b) Field Audit /Operational Reports

7.4.6 PROCEDURE
a) Internal audits shall be carried out as per the internal audit (to assign) schedule issued by
periodically plan.
b) There shall be one internal audits carried out annually. The planning of the audit shall ensure
that each area of operation or process is audited at least once a year. Each inspector shall be
audited at least once a year under the respective competence areas. Personnel and audit
areas that score poorly in any audit shall be audited regularly taking into consideration the
criticality of such performance and need for prompt improvement.
c) The auditors shall be independent of the specific activities being audited permanently
employed with the company and adequately trained to carry out audits. The station manager
shall ensure that the requirements of the relevant standards are met and complied with in
respect to auditor qualification. Audits carried out by other parties such as customers cannot
be considered to substitute or override the section’s own internal audit.
d) The auditor shall review the Management System, work instructions and procedures for
competence and adequacy. The auditor shall look for objective evidence of the
Implementation of procedures and authentic work instructions in the functional areas being
audited.
e) Non-conformities shall be recorded in the internal audit request forms. The time scale shall be
decided in consultation with the manager who must assess the seriousness of the non-
conformities. Completion of corrective actions shall be verified with the departmental
management and later closed out by the auditors.
f) Management shall maintain detailed documentary records of all audits. These records provide
the management with a continuous history of performance and a means of identifying
particular areas of weakness as well as providing data for trend analysis and auditor
performance evaluation.

7.4.7 RECORDS
a) Audit Schedules

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b) Corrective Action Request Forms

c) Audit Checklists
d) Audit Reports

8 NOR MATIVE, R EFERENC ES AND B IBLIOGRA PH Y

SGS states that moreover the normative (already mentioned in prior reports), reference and
bibliography below reported, has based this consultancy on its own practices and expertise.
a) Technical Regulation adopted by Georgian Government, Decree 511, December 1st, 2017,
on approval of requirements for the facilities and buildings, equipment and personnel´s
technical qualification for periodical technical inspection centres
b) Georgia Government decree №510, December 1st, 2017on approval of the technical
regulation regarding the “periodical technical inspection of the vehicles and their trailers”
c) ISO/IEC 17000, Conformity assessment — Vocabulary and general principles
d) ISO/IEC 17020, Conformity assessment
e) ISO 9000:2005, Quality management systems — Fundamentals and vocabulary
f) ISO 9001, Quality management systems — Requirements
g) ISO 19011, Guidelines for quality and/or environmental management systems auditing

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