Föredrag om Outsourcing/inhouse av Pekka Pakkala från Vägförvaltningen i Finland
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Transcript of Föredrag om Outsourcing/inhouse av Pekka Pakkala från Vägförvaltningen i Finland
November 9, 2001Pekka PakkalaPTL IT Meeting
Föredrag om
Outsourcing/inhouse
av Pekka Pakkalafrån Vägförvaltningen i Finland
på NVF 11 möte den 9.11.2001
November 9, 2001Pekka PakkalaPTL IT Meeting
Presentation Overview
Objectives:
Why Change Client Role Changes Models Used Innovative Project Delivery Methods Keys To Success Innovation Challenges In IT
Source: Pekka Pakkala - Finnra
November 9, 2001Pekka PakkalaPTL IT Meeting
Future Road Administration Perspectives
Future Funding Levels - Insufficient to meet needs
Unfair at Regional Levels Less Traffic Volume Roads Are Suffering Gravel Road Situation NEED => PROVIDE A BETTER ROAD SYSTEM IN
A HEAVILY CONSTRAINED FUNDING ARENA AND AN INTENSE COMPETITION FOR LIMITED ALLOCATION OF GOVERNMENT FUNDS
Source: Pekka Pakkala - Finnra
November 9, 2001Pekka PakkalaPTL IT Meeting
Future Client Perspectives
Why Change:
Insufficient Funds to Meet the Level of Road Care Management Fully Integrated Client Services Cost Savings (10-35%) in Long Term Contracts Risk Sharing Changing to Performance Based (Outcome Based Criteria) Partnering Potential Innovation Better Asset Management Road User Satisfaction Improved Budgeting Strategic Focus Too much Contract Administration Maintenance Budget Fluctuations
Source: Pekka Pakkala - Finnra
November 9, 2001Pekka PakkalaPTL IT Meeting
Fully Integrated Client Services
Lump Sum Contract for all activities: Routine Pavement Maintenance Asset/corridor management Vegetation control & Mowing Signs & Traffic Signals Resurfacing Pavement Rehabilitation Emergency Response Drying & Drainage Control Traffic Services Guard Rail Repair/Replacement Lighting Seal Widening & Repair Winter Maintenance
Source: Pekka Pakkala - Finnra
November 9, 2001Pekka PakkalaPTL IT Meeting
Paradigm Changes In Client Procurementof Maintenance
Source: Pekka Pakkala - Finnra
Estimated
Potential
Savings
Own Forces
(Method Based)
Outsourcing Long Term
Agreements
Outcome
Based
20%
35%
45%
November 9, 2001Pekka PakkalaPTL IT Meeting
Client Decisions
Traditional(Method Based)
Performance Based(Outcome Based)
RISKS Transferred NO YES
Keep Control YES NO
Innovation NO YES
Significant CostSavings
Minor/Some YES
Less Management NO YES
Reliance on AssetManagement
NO YES
Source: Pekka Pakkala - Finnra
November 9, 2001Pekka PakkalaPTL IT Meeting
PERFORMANCE CRITERIA
Performance Measures in PSMC Roughness (IRI) Skid Resistance Rutting Deflection (Structural Condition) Texture Cracking Residual Surface Life
Source: Pekka Pakkala - Finnra
November 9, 2001Pekka PakkalaPTL IT Meeting
Phases in Road Organization’s Reform
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7
Agency &Production
IdentifyClient and
Producer(Deliverer)
SeparateClient and
Producer CorporatizeProducer
PrivatizeProducer
CorporatizeClient
PrivatizeClient
Decreasing Government Involvement
Client Client
Road Fund
Source: World Bank, TNZ & Finnra
November 9, 2001Pekka PakkalaPTL IT Meeting
Client Role Changes
Need To Outsource All Capital & Maintenance Projects Need To Outsource Other Client Services Develop Clear & Well Defined Client Scope (What You Want) Develop Project Partnering Cultural Change TRUST Between Client & Contractors Developing Outcome Based Criteria Changing to Asset Management (Changing Skills) Aging Organization & Attracting New/Young Professionals Hope => Young Professionals in IT Area Risk Allocation - Which Ones to Transfer Contractors Will be Responsible for Development & Innovation
Source: Pekka Pakkala - Finnra
November 9, 2001Pekka PakkalaPTL IT Meeting
England MAC Model
Source: Highways Agency
Client
Managing Agent
Contractor
Network Board
November 9, 2001Pekka PakkalaPTL IT Meeting
USA Model
Characteristics 5 + 5 Year Duration Lump Sum Contract 50% Price & 50% Other (Varies in some states - Best Value) Some Outcome Based Criteria USA states still uses In-house forces for maintenance activities
Rehabilitation is not included (Resurfacing is included)
Results Innovations are realized - Equipment, Contractor efficiency,
pavement, markings & etc. (over the life time of the contract) Significant Cost Savings to Client
Source: Pekka Pakkala - Finnra
November 9, 2001Pekka PakkalaPTL IT Meeting
British Columbia, Canada Model
Characteristics Now 8 Year Duration (Previously 5 years - 3+2) Lump Sum Price 60% Price & 40% Quality Selection Criteria
Outcome Based Contract No resurfacing & rehabilitation
Results Some minor Equipment & Contractor efficiency innovations Some Cost Savings to Client Defaults due to Union labor problems & High Costs
Source: Pekka Pakkala - Finnra
November 9, 2001Pekka PakkalaPTL IT Meeting
New Zealand PSMC Model
Characteristics 10 Year Duration Lump Sum Contract Quality Price Trade Off - Selection Criteria Outcome Based Criteria Uses consultants for management & rehabilitation
Results Innovations are realized - Equipment, Contractor efficiency,
pavement, markings & etc. (over the life time of the contract) Incentives as a means to foster innovation Significant Cost Savings to Client
Source: Pekka Pakkala - Finnra
November 9, 2001Pekka PakkalaPTL IT Meeting
CONSTR.FINANCE DESIGN
PRE-PLANNING &
ACQUISITION
O & M(Operatons
& Maintenance)
UPKEEP&
IMPROVE-MENTS
FULL DELIVERY
IN-HOUSE D-B-B SEGMENTED
DESIGN-BUILD COMBINED
(DBOM)Design-Build Operate Maintain
Design-Build Finance Operate
(DBFO)
Consultants & PPP LONG-TERM
MAIN. AGREEMENTS
(PSMC)
CAPITAL PROJECTS
Index: Traditional: Green Innovative: Purple
Source: Pekka Pakkala - Finnra
Innovative Project Delivery Methods
November 9, 2001Pekka PakkalaPTL IT Meeting
Partnering Issues
CLIENT
CONTRACTOR
SUB-CONT. SUB-CONT. SUB-CONT. SUB-CONT.
SUPPLIERS
PARTNERINGPA
RTNERIN
G
PARTNERING
PARTNERING
P
RO
JEC
T
Source: Pekka Pakkala - Finnra
PA
RT
NE
RIN
G
November 9, 2001Pekka PakkalaPTL IT Meeting
Keys To Success
TRUST Partnering Cultural Change BOLD CHANGES - A Champion Among The Industry Future - Contractors will be Responsible for Development
Fully Integrated Client Services Longer Life Cycles Quality Based Systems IT Developments New Products (R&D) Innovative & Intelligent Work Places Intelligent Materials
Source: Pekka Pakkala - Finnra
November 9, 2001Pekka PakkalaPTL IT Meeting
Innovation
Long Term Agreements - Greater Than 7 Years Partnering (Both Client & Sub-Contractors) Lump Sum Contracts Provide Most Sub-Contractors With Same Long Term Agreement New Equipment Ability to Use Innovation Throughout the Length of the Contract Technical Efficiencies Efficiency in Controlling the Network Area Utilizing New Tools & Materials to Improve Efficiency & Quality Intelligent Materials
Source: Pekka Pakkala - Finnra
November 9, 2001Pekka PakkalaPTL IT Meeting
Briefing forChanges
Pre-Design Design,Engineering
Upkeep &Maintenance Construction
Briefing
Rehab orDisposal
ProductSpecification
Planning,Cost Information
Information Lifecycle
Source: VERA - Arto Kiviniemi
November 9, 2001Pekka PakkalaPTL IT Meeting
Information is shared inexploitable data format directly
between different systems
Goal in the Future
Source: VERA - Arto Kiviniemi
PMS
Design/Engineering
Asset Management RWIS
Product Specifications
Traffic Services Maintenance Mgmt Systems
Geometry
November 9, 2001Pekka PakkalaPTL IT Meeting
Challenges In IT
Interoperability New Business Opportunities E-Roads Project & Maintenance Management Integrating All Design Aspects Into Asset/Cost Management Traffic & Safety Management New Equipment Develop Young Professionals Ability to Use Innovation Technical Efficiencies Utilizing New Tools to Improve Efficiency & Quality
Source: Pekka Pakkala - Finnra