HAMIS. Highways Asset Management Integrated Service. Delivering Highway Maintenance Efficiency Savings

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1 HAMIS Highways Asset Management Integrated Service Delivering Highway Maintenance Efficiency Savings

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3 The additional efficiency savings of almost 300k in the first year of HAMIS is impressive and welcomed, especially in these challenging times for the Council. Background Andrew Lightfoot Managing Director of Local Government Services, Blackburn with Darwen Borough Council Blackburn with Darwen Borough Council and Capita Symonds have been working together through a strategic partnership since July The partnership provides the full range of highways and property services with the traditional consultancy (white collar) services sitting within Capita Symonds; and operations (blue collar) elements of the service being retained by the council and delivered through their Direct Services Organisation (DSO) As with most Councils, the consultancy and operational services teams did not always have the best of relationships, with communication between them often strained and in need of improvement. The partnership between Capita Symonds and the Council alone did not resolve the problems between the consultancy and operational teams. However, in the summer of 2008 Capita Symonds was volunteered to undertake a review of the entire service to understand how the structures, processes and relationships affected the service outcomes. This review identified issues in the end to end delivery process, but most importantly highlighted that the ultimate goal of improving the condition of the network would not be achieved unless the historic problems and barriers associated with the consultancy and operational teams were resolved. With this in mind, Capita Symonds set out the concept of an integrated service which would, for the first time, bring the consultancy and operational teams together under the banner of HAMIS (Highways Asset Management Integrated Service). The team would have a common approach with a focus on risk, efficiency, quality assurance and growth. A number of other options were considered including outsourcing the operational teams but these were quickly discounted since it was felt that the extent of the inefficiencies would have inflated the price charged by the private sector / 2010 Increased Income Achieved 288 THOUSAND 2010 / 2011 Efficiency Savings % 2009 / 2010 Increase in Operatives Productivity Target 15 % Actual 26 % Target 3% Actual 9%

4 An Integrated Team The HAMIS team was placed under council control and Capita Symonds formally seconded their asset management team and highway inspectors into the structure. Capita Symonds also seconded their industry expert, Shoaib Mohammad into the team as Head of Highways and set out to deliver private sector outcomes within a public sector environment through focusing on the following areas: Risk There were serious Health and Safety concerns and a need for comprehensive training to be delivered to all operatives. This training was focused around safe working practices, materials and delivery methods Quality The outcomes on site rarely met with expectations and often fell below the required standards. The contributory factors fell between both the consultancy and operational teams with tighter, more relevant and appropriate specifications required from designers and higher quality workmanship from deliverers being the essential criteria Efficiency The outputs delivered by the operational teams in the years leading up to the review was found to be way below that of their private sector equivalents. This inefficiency resulted from a number of areas but was primarily focused around inefficient utilisation of labour, plant and materials together with a complete lack of performance management Growth Capita Symonds is a growth organisation and with growth comes opportunity and motivation for staff. The Council s operational team was in decline in terms of both workforce and turnover. The HAMIS approach enabled a focus of growth to be applied and for a broader scope of works to be delivered by the operational teams thereby generating opportunities for staff 2010 / 2011 Reduction in overall Fleet Costs -25%

5 Objectives Service Improvement Options were considered by the Council, which included:- 1 No Change 2 Outsourcing the DSO to a Private Sector Contractor 3 Outsourcing the Client Function and DSO to a Private Sector Partner 4 Integrate the Client Function and DSO into a single Council Department In considering the Options the Council set the following objectives for the scheme:- > Efficiency Savings > Service Improvement > Risk Management > Job Security Proposed Solution Option 4 was chosen by the Council and its Partners. This option would integrate the Client Function and DSO into a single Council Department with Capita Symonds co-locating staff to a refurbished depot site with the management team and DSO operatives. To effect culture change and manage the transition to a more progressive contracting unit, Capita Symonds seconded to the Council a senior manager to act as the new Head of Service for the proposed joint working arrangement. The joint working arrangement was collectively referred to as the Highways Asset Management Integrated Service or HAMIS. The HAMIS initiative was targeted with achieving 2.9m of efficiency savings over a 6 year period which equates approximately to 20% saving of the overall highways budget. These efficiency savings would be generated by:- > Plant - rationalisation of the fleet and optimisation of the delivery programme > Materials - more effective procurement > Staff - increasing staff productivity to generate capacity > Growth from the additional capacity > Sub-contractors rationalisation of suppliers Increasing staff productivity through:- > Effective programming to reduce staff down-time > Enhanced job scheduling to ensure plant selection is optimised > Up skilling of staff to increase capability > Integrated management of resource > Shared data platform > Putting in place effective performance metrics Challenges included:- > Cultural barriers addressed through co - location and team development > Different employment terms addressed through strong leadership and an integrated management team > Service Transition supported through early pre-commencement engagement of all staff to be ensure clarity of information and development Reactive 63.8% Planned 36.2% Reactive 42.9% Planned 57.1% 2010 / 2011 Proportion of Reactive to Planned Maintenance Target Actual

6 HAMIS Key Benefits include Increase in Member satisfaction % - Increase > No TUPE > Fast implementation > Efficiency savings, allowing for reinvestment in the highway service > Embedding private sector skills ability for DSO to grow client base > HAMP focus - more planned, less reactive highway maintenance > Risk management approach reducing residual risk to the Council > Sustainable business approach to highway maintenance services > Job security for blue-collar workforce Operational benefits Title Description Benefit Delivery Programme Handhelds for highways inspectors Neighbourhood gangs GPS trackers Drainage Improvements Service Delivery Engineer A long term delivery programme of works established with detailed weekly review Introduction of GPS enabled handhelds for highways inspectors to register defects and raise orders for repairs Highways reactive maintenance gangs allocated to neighbourhoods Installation of GPS trackers in all highways, street lighting and winter fleet Improved co-ordination of drainage works with planned Highway schemes through network management board GPS and GIS enabled highway drainage management system in gully wagon A new Engineer recruited to assist in the efficient and safe delivery of the service Transparency of resources, improved productivity and planning Accuracy in data, improvement in response times and efficiency. Neighbourhood focused service, with area location ownership Improved management of fleet movement in the Authority, reduction in carbon foot print and improved management Reducing the highway network deterioration through the provision of adequate surface drainage systems Effective management of the highways drainage and a saving of one FTE Active development and management of the programmes and management systems EXOR V4 Web based upgrade gone live Integrated live data base working. One system providing transparent information. Street lighting Management system Introduction of an effective street lighting data management system Improved and efficient working. A more accurate account and reflection of the energy use. Training matrix Training matrix for all operatives established Visibility of staff capability and competency; allows for improved utilisation and planning of resources Footprint Reduction Reduction on the fleet through the rationalisation of plant A reduction in the carbon footprint of 61 tons per year

7 Reduction in Number of Operatives through retirement whilst maintaining service levels / 2010 (Actual) / 2011 (Target - achieved) Interim Results - year 1 of 6 Performance Areas Actual 2009/10 Target 2010/11 Actual 2010/11 Comments Efficiency Saving in the highways maintenance budget 3% 9% Overall efficiency saving for year one. Proportion of Planned to Reactive maintenance 27% 36.2% 57.1% More planned, less reactive maintenance Increased income on 09/10 achieved 30% 41% 288k additional income above baseline budget Total Operatives Reduction due to retirement and/ or resignation Increase in operatives productivity 15% 26% Reduction in overall fleet costs. 22% 25% Reduction in over all fleet costs for highway maintenance Fleet Costs / Operative 61 tonne Carbon reduction due to fleet optimisation

8 The additional efficiency savings of almost 300k in the first year of HAMIS is impressive and welcomed, especially in these challenging times for the Council. Andrew Lightfoot Managing Director of Local Government Services, Blackburn with Darwen Borough Council The insourced management model is an emerging business model for Capita Symonds and is one that is gaining considerable interest from our clients. Whilst the savings may be more challenging to realise in the short term, the results from the HAMIS initiative are proving that insourcing is a credible option for Councils looking to improve their in-house service delivery. Ian Richardson Director, Capita Symonds For further information please contact Shoaib Mohammad Highways Director e : shoaib.mohammad@capita.co.uk m :