© 2013 sigma management development limited the value improvement programme & how it works...

© 2013 Sigma Management Development Limited© 2013 Sigma Management Development Limited

THE VALUE IMPROVEMENT PROGRAMME & HOW IT WORKS COMMERCIAL DIRECTORS FORUM 3 DECEMBER 2015

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AIMTo:-

give you some background to the Value Improvement Programme (VIP) and how it has worked in the past

show how we have developed New VIP in the light of that experience and how it could help improve collaboration going forward

explain the rationale behind the four pilot workshop programmes run over the last 18 months or so

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BACKGROUND

WHAT IS VIP? CONTEXT

First established in 2002, VIP is a rail industry initiative based around an agreed Code of Practice which is embedded via externally facilitated workshops.

The workshops are facilitated by Sigma MDL and Russell Chesterman

Their objective is to drive improved efficiencies, added value, and reduced costs via promoting & establishing more open behaviours and collaborative working

The VIP Code of Practice is a short document, available on both the RIA and Network Rail websites. You all have a hard copy of the Code and these slides.

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BACKGROUND

WHAT IS VIP? – KEY AREAS OF THE CODE OF PRACTICE

It encourages us to :- Communicate well, early and often Share plans & uncertainties Involve suppliers from an early stage Concentrate on value, innovation & life-cycle costs

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BACKGROUND

WHAT IS VIP? – KEY AREAS OF THE CODE OF PRACTICE (2)

And:- Obtain win/win solutions for all parties Challenge attitudes, customs and standards where they do

not aversely affect health and safety Develop ideas for continuous improvement and cost

reduction Treat people as you would like to be treated – behave

with mutual respect

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BACKGROUND

WHAT IS VIP? - EXPERIENCE TO DATE

The workshops can be used on individual projects; work programmes; framework contracts or anywhere where collaborative relationships are required. We have run over 100 successful workshops to date.

But the industry landscape has changed significantly since 2002.

So the initiative is being re-launched as ‘New VIP’ to meet the challenges of collaboration, cost reduction and efficiency (eg post McNulty) and amend the workshop process to:-

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BACKGROUND

NEW VIP – WHAT ARE THE DIFFERENCES?

o Use the workshops earlier in a process to build relationships rather than as a post-contract intervention measure once relationships had broken down

o Build in measureable business outcomes through improved behaviours.

o Do more to support Innovation in the industry

o Develop Integrated Supply Chain teams - involving Tier 2/3/SMEs

o Support the implementation of BS11000, the national collaborative working standard adopted and endorsed by Network Rail and many in their supply chain

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© 2013 Sigma Management Development Limited

WHERE NEW VIP CAN BE APPLIED

Delivery Test and Commissioning

Operations and Maintenance

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Work Winning Bid Support Developmen

t and Design

All relevant NEW VIP programme outputs can be used to help provide evidence for BS11000 certification


NEW VIP PILOTS UPDATE

NEW VIP –GOVERNANCE & PROCESS• We have a VIP Steering Group, chaired by RIA, which as well as RIA , Sigma &

supplier reps, includes clients representatives from ATOC (Neil Ovenden); Network Rail (Mike Pollard), HS2 (Phil Oxley) and TfL (Dorothy Wallace)

• We have recently run four pilot new VIP Programmes which were 80% funded by FutureRailway

• The four pilots were with Alan Dick Communications, Kier, Carillion Powerlines and Alstom

• Here are some headlines from the Kier workshops on the national footbridge programme

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WHY DID WE ADOPT THE NEW VIP PROCESS

Kier awarded National Level Crossing Risk Reduction Programme contract for

design and delivery of 104 footbridges at existing level crossings.

Key to success was close collaboration of the supply chain (NR, Kier, Sponsor

RAMs and Tier 2 suppliers) to reduce costs through o Efficient deliveryo process improvemento innovative and repeatable solutions


WHY DID WE ADOPT THE NEW VIP PROCESS

The VIP approach was chosen as it would:-

• Enable teamwork, supply chain integration & build critical levels of trust &

enable innovation

• Capture shared ideas for process and design improvements

• Enable challenge of the current NR specification to establish more cost

effective designs

• Focus on national delivery and overcome regional barriers

• Help to reduce programme delivery from 4-3 years


KEY OUTCOMES

Key outcomes were as follows:-

• Helical pile installation in 18 hours of a 34-hour possession with no

requirement for contingency possession

• Bridge superstructure in 12 hours of available 54 hour possession

• Overall cost savings of around 18%

• All parties benefitted from the innovations, reduced costs through open

collaborative working & improved behaviours, enabling shared ideas to reduce

time and cost


SUBSTANTIAL COMPLETION IN 30 HOURS!


WOULD WE USE THIS PROCESS AGAIN?

New VIP has proven beneficial to all parties involved in the Footbridge programme

Process improved collaboration between all parties developing areas for continuous

improvement and reduced costs

Challenges attitudes, existing approaches and current standards

We are now considering a “Phase 2” to cover

• GRP construction

• Further cost savings

• More installations

• Reduced delivery time

For further information from Kier contact Richard Turner at [email protected]


RAILWAY INDUSTRY ASSOCIATION22 Headfort PlaceLondon SW1X 7RYTelephone 020 7201 0777E-Mail: [email protected]: www.riagb.org.uk

SIGMA MANAGEMENT DEVELOPMENT LTD4 The CourtyardDenmark StreetWokinghamBerkshire RG40 2AZ

Telephone: 0118 977 1855E-mail: [email protected]: thinksigma.co.uk

FOR FURTHER INFORMATION

mailto:[email protected]

http://[email protected]/

http://thinksigma.co.uk/

© 2013 sigma management development limited the value improvement programme & how it works...

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