Magenta Living. Repairs & Maintenance Delivering for the Asset. Richard Woolfall, Assistant Director Asset Management
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1 Magenta Living Repairs & Maintenance Delivering for the Asset Richard Woolfall, Assistant Director Asset Management CIH Rethinking Repairs Conference 24 February
2 Briefing Outline What do we mean by Asset Management? Objective R&M and active Asset Management Methodology How R&M can deliver value Implementation Delivering value through R&M Outcomes Value that R&M can achieve
3 R&M and Asset Management Asset Management is about creating value through challenging the business to meet the evolving needs and expectations of customers You can not discuss Repairs & Maintenance in isolation of Asset Management Repairs & Maintenance and Asset Management are one and the same
4 Objective What can Active Asset Management and R&M Achieve Clearer roles, responsibilities and accountability Joined up thinking brings people and services together Better understanding of client s needs and aspirations Prepare for the future Predictability minimise surprises, sustainability Priorities through stock sustainability assessment Continuous improvement and understanding Strong business foundation viable future Helps define where you are now, where you are going and how to monitor and show progress
5 What it Can't Achieve Give you excuses for standing still Remove the need for people to make difficult decisions People are the innovators and rivers of success, if they work together
6 Key Questions? How R&M fits in with Asset Management? What is the Methodology? How does repairs and maintenance deliver value? How is value measured? What are the outcomes of a repairs and maintenance service delivered through active Asset Management?
7 Key Message need to understand the whole picture, otherwise...
8 Methodology Developing the Plan Build the R&M, and BP around the strategic direction and investment base position Creation of a 30 stock appraisal and 5 year detailed investment plan Affordability assessment current/proposed costs v base assumption Challenge current/proposed costs or review base assumptions Run the R&M plan through the BP model is it sustainable? If not, review the BP phase challenge your assumptions and/or review the strategic direction
9 ASSET MANAGEMENT METHODOLOGY STAGE 1 Business Plan Asset Management Strategy, Draft 1 Sustainability Assessment Cat 1 Cat 2 Cat 3 Cat 4 Cat 5 Cat 6 Neighbourhood Plan Current Customer Base Demand Size, Type Current Performance Stock Condition Survey, Life Cycles, Volume & Value, Investment Priority Business Plan STAGE 2 Asset Management Strategy, Draft 2 Consultation Board, Customers, Staff STAGE 3 Asset Management Strategy Approved Housing Management Implementation Plan Capital Investment Plan Repairs & Maintenance Plan Development & Regeneration Plan Finance Plan Performance Measurement & Management Plan Performance Measurement & Management Plan Performance Measurement & Management Plan Performance Measurement & Management Plan Performance Measurement & Management Plan STAGE 4 Procurement Strategy Performance Management Information Board Executive Management Team Senior Management Team Staff Group Meetings Customer Update (3 or 6 monthly) Resource Plan
10 Implementation - Repairs & Stock Sustainability Gain an understanding of all assets 100% stock condition data Understand asset performance performance measurement Creation of a base position of BP assumptions to measure business performance Challenge your base assumption, i.e. sweat your assets Creation of performance pyramid strategic, financial and operational performance measurement Understanding assets future life stock categorisation Current and future cost performance analysis stock categorisation to predict future cost performance Create future predictability and minimise surprises Culture of accountability is critical
11 Stock Sustainability Category 1 30 year life Full Investment Category 2 15 year life 60% Investment Moderate Maintenance Low Maintenance Category 3 Feasibility Review Limited Investment Moderate Maintenance- Category 4 No future value No investment Limited Maintenance Category 5 Development Opportunity No investment Limited Maintenance Category 6 Market rent Opportunity Full investment Moderate Maintenance
12 R&M and Return on Assets Performance Asset criteria performance indicators (Business Data) Local assessment criteria performance indicators (Neighbourhood Data) Social economic criteria performance indicators (Customer Data) Financial Return on Investment - Net Present Value (Financial Data)
13 Outcomes Value that R&M Can Achieve R&M should support the corporate focus on key strategic priorities Culture of accountability, value and improvement Establish greater level of joined up thinking, creating a common cause R&M, Capital Investment, Housing Management, Finance Focused understanding of Housing Management needs from the repairs service Detailed 5 year resource and cost plan mitigate surprises Predictability, Flexibility, Sustainability, Accountability, Value Greater understanding of the business position and future viability
14 Outcomes Value that Repairs Can Achieve An effective R&M service should compliment the Asset Management Strategy in creating value through challenging the business asset assumption to meet the evolving need and expectation of customers This process saved Magenta Living 1.2m pa from its repairs and maintenance service, and improved customer satisfaction by over 10%
15 What It Can t Achieve An excuse for standing still!
16 Thank you Thank you for your time Questions? Richard Woolfall Magenta Living
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