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 %

0

10

20

30

40

50

60

70

80

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?