Download - Jason Russell, The opportunity for efficiency savings: Highways Maintenance Efficiency Programme
Highways Maintenance Efficiency Programme (HMEP)
Jason RussellChair – Business Improvement
Topics Covered
• Highway Maintenance Efficiency Programme (HMEP)
• The Pothole Review
• Business Improvement Group
HMEP – The Challenge
CSR
HMEP – Public Priorities Top transport priorities, March 2011 %
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fuel cost
road condition
rail fares
road congestion
road safety
roadwork delaysbus frequency
rail overcrowdingenvironmental
HS2 other
Ipsos MORI poll of 991 British adults
HMEP - Background• Support sustained approach to maximising returns
from highways investment and delivering step change in efficiencies
• £6m over 2011/12 and 2012/13, whilst developing a longer term plan
• Links with Government Construction Strategy and Infrastructure UK Review
• Consistent with ‘localism’ agenda - providing the tools and opportunities - not central direction
• Partnership working between public and private sectors
• Target senior decision makers (Council Leaders, Portfolio Holders, Chief Executives, Chief Officers) as well as highways practitioners
• Building on best practice in the sector• www.dft.gov.uk/pgr/regional/hmep/
Programme Board
Overview of Workstream Groups
Group 1 Operational Service DeliveryChair – Matthew LuggProcurement StrategiesShared service provisionsAsset Management PlanningDesign Standards
Group 2 Business ImprovementChair - Jason RussellClient Leadership and GovernanceEmployment and SkillsKey Business ProcessSupply Chain ManagementChange Management
Group 3 Communications
Chair - Julian AbelCommunication and MarketingBenefits realisation
Group 4 Research and Data ManagementChair – Steve KentResearch and Horizon ScanningPrice/QualityMeasurement
Benchmarking of costs and performance
Workstream 1 Operational Service Delivery
WP1 – Standard suite of highway maintenance contract documentsWP2 – Standard highway maintenance specificationWP3 – Best practice toolkit to set up and operate alliances for highway
maintenance servicesWP4 – A toolkit to aid local highway authorities in setting up shared service
arrangements to deliver highway maintenance servicesWP5 – A best practice toolkit to aid procurement choice for highway
maintenance services WP6 – To develop a best practice toolkit for asset management life cycle
planningWP8 – To further increase the sector’s knowledge base of the benefits of asset
management by producing accredited practitioner trainingWP9 – To provide guidance on the most cost effective approach to managing
and maintaining drainage assetsWP10 – To produce a revised comprehensive guidance document for highway
asset managementWP11 – To develop a standard deterioration model available to all local highway
authorities
Pothole Review
• 2008/09 worst winter for 20 years
• 2009/10 worst winter for 30 years
• 2010/11 worst December for 100 years
• 42% increase in potholes 2009
• 59% increase from 2009• Estimated 2010 – 2.7m
potholes
The Review will Consider
• Causes• The management
arrangements for reporting and repairing potholes
• Service standards• The specifications for
repairs• The workmanship• User input
Business Improvement Group
• Not trying to invent something new!• Objective is “to develop practical tools and
methodologies that will help ensure local authorities have access to the capability required to implement efficiency measures”– Develop practical tools and methodologies– Integration of processes into existing contracts– Develop Local Authority capability to implement
efficiency processes– Assist in supply chain re-engineering– Improve employment and skills benefits
Themes
Client Leadership and Governance
Employment and Skills
Key Business Processes
Supply Chain Management
Emerging Outputs• Client Leadership
– Role of Client in leading change– Organisational models – do they matter? What capabilities are
required for each?
• Employment and Skills– Using procurement/contract management to ensure adequate
investment in skills by contractors– Identifying capabilities required for delivering efficiencies– Behaviours to deliver effective services
• Key Business Processes– Identify common business processes: those that will drive the right
behaviours and potentially contain the most ‘waste’
• Supply Chain Management– Engagement with supply side is key– Transparency of costs, down to 2nd and 3rd Tier– Incentives?
Enabling Change
• Effectively share existing best practice – matching solutions to problems
• Focus on three elements for each theme:– People– Process– Technology
• Develop proposals through workshops• Test effectiveness through pilot projects and
early adopters
Business Improvement – Pilots
• Engaging with a number of potential pilot authorities
• SE7: (Brighton and Hove, East Sussex, Hampshire, Kent, Medway, Surrey, West Sussex)
• AGMA: (Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford, Wigan)
• Northumberland
• Engage with main contractors engaged within pilot area using provisions of existing contracts
• Compare prices/terms offered and identify inconsistencies• Identify scope for further employment and skills benefits
within existing contracts• Engage with main contractors, suppliers and sub-
contractors to establish mechanism for improving prices• Invite submissions from main contractors identifying supply
chain re-engineering proposals• Main contractors run supply chain tendering process• Supply chain agreements entered into and performance
monitored
Supply Chain Engineering Process
Business Improvement – Pilot 1
• Review contracts for employment and skills provisions• Discuss voluntary adoption of employment and skills
requirements with contractors• Set benchmarks appropriate to contract• Workshops with contractors and supply chain to discuss
requirements and benefits• Develop an Employment and Skills plan • Implement plan and method statement and monitor
performance against KPIs in main contract and sub-contracts/supply agreements
• Consider application to National Construction Skills Academy to achieve Academy status
Employment and Skills
Business Improvement – Pilot 2
Thank you for listening
Any Questions?