Richard Edwards - AMCL - CASE STUDY: Asset Management integration in the UK
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Transcript of Richard Edwards - AMCL - CASE STUDY: Asset Management integration in the UK
The Asset Management Journey
A Case Study of Asset Management Improvement
Richard Edwards
23rd June 2014
Sydney
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
Why Measure Asset Management Capability?
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
BSI PAS 55 – The Basic Framework
• Originally published in 2004 and revised
in 2008 following extensive consultation
• Provides the specification for what
should be in an Asset Management
system
• Organisations are increasing seeking
certification against the standard
• Translated into Spanish, French and
Portuguese
• PAS 55 was the base document
submitted to the ISO 55000 project
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
Other Standards & Publications
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
Asset Management
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
Role of the Independent Reporter
• Duty of care to both the ORR and
Network Rail
• Key role in supporting delivery of
Control Period 4 efficiencies
• Provide the ORR with independent
advice and assurance
• Provide Network Rail with
recommendations and advice on
Asset Management
• Extensive understanding of
global best practice
• Help to ‘fast track’ Network Rail’s
Asset Management improvement
programmes
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
Assessment of Network Rail
• Initial Assessment undertaken by AMCL in 2006
• ‘Asset Management Vision’ developed in 2007
• Network Rail implemented a number of improvement initiatives
• Second assessment undertaken by AMCL in 2009
• Asset Management Roadmap developed in 2010 with targets levels of
maturity agreed with ORR for:
• Submission of Initial Industry Plan for Control Period 5 (June ’11),
• Submission of Strategic Business Plan for CP5 (January ‘13); and
• The end of Control Period 4 (Mar ‘14)
• Asset Management Improvement Programme put in place by Network
Rail to achieve these target levels of maturity
• On-going assessments by AMCL to monitor progress
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
Network Rail Asset Management Policy Extract
By the end of the current control period (March 2014) our
commitment is to have developed capabilities in asset
management that are demonstrably comparable with best
practice elsewhere in Britain.
Over the following five years we are committed to
improving our business capabilities further, so that we
provide the benchmark against which organisations
throughout the world assess their own asset management
capabilities.
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
Asset Management Roadmap
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
So how has Network Rail performed?
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
So What?
• Reduced Capex: initial focus on highest spend asset group (Track) resulting
in extended asset lives, reduction of capital spend by around 20%
• Reduced Opex and maintenance costs per vehicle kilometre by 46%
between 2003/04 to 2011/12.
• Improved asset performance with greater reliability and sustainability, e.g.
incidents of broken rails have reduced from 322 in 2004/05 to 125 in 2011/12.
• Better regulatory outcomes: ability to demonstrate evidence for decision-
making to prove that approach is sustainable over the long term.
• BSI PAS 55 accreditation: achieved in April 2013.
• Safest ‘major’ railway in Europe, and significantly safer than road and
comparable with air transport.
• Carries more trains than ever before, with 10% more train kilometres and
3% more freight moved than 2004/05.
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
Control Period 5
• Asset Management Maturity Targets are being currently finalised for
the end of Control Period 5 (March 2019)
• These targets will become official regulatory measures meaning a
formal reporting process and significant financial incentives / penalties
• AMCL Asset Management Excellence Model will be used as the basis
for tracking progress against these targets
• Network Rail is starting to self-assess its Asset Management Maturity
across its individual routes and for the overall company
• This will help embed the Asset Management improvement programme
as it becomes internally driven
• AMCL will undertake an assurance role and periodic independent
assessment to verify Network Rail’s assessment
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
© Copyright 2014 AMCL Pty Ltd All Rights Reserved
Self Assessment
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Training
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Summary
• All stakeholders realised in 2005 the importance of Asset Management
in helping Network Rail to become more effective and efficient – the
‘low hanging fruit’ had all been picked!
• Recognition by Network Rail and the ORR that Asset Management
‘excellence’ is a long-term journey
• PAS 55 and ISO 55001 provide a good management system
framework but certification is not the end of the journey
• The AMEM provides the framework to undertake the maturity
assessments and to structure the improvement programmes
• Moving from an external assessment process to internal self-
assessment with independent assurance from AMCL
The Asset Management Journey
A Case Study using the AMCL Asset Management Excellence Model
Richard Edwards
23rd June 2014
Sydney