© 2013 sigma management development limited the value improvement programme & how it works...
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© 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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© 2013 Sigma Management Development Limited© 2013 Sigma Management Development Limited
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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© 2013 Sigma Management Development Limited© 2013 Sigma Management Development Limited
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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© 2013 Sigma Management Development Limited© 2013 Sigma Management Development Limited
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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© 2013 Sigma Management Development Limited© 2013 Sigma Management Development Limited
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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© 2013 Sigma Management Development Limited© 2013 Sigma Management Development Limited
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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© 2013 Sigma Management Development Limited© 2013 Sigma Management Development Limited
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
© 2013 Sigma Management Development Limited
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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© 2013 Sigma Management Development Limited
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
© 2013 Sigma Management Development Limited
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
© 2013 Sigma Management Development Limited
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
© 2013 Sigma Management Development Limited
SUBSTANTIAL COMPLETION IN 30 HOURS!
© 2013 Sigma Management Development Limited
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 Richard.Turner@kier.co.uk
© 2013 Sigma Management Development Limited
RAILWAY INDUSTRY ASSOCIATION22 Headfort PlaceLondon SW1X 7RYTelephone 020 7201 0777E-Mail: ploosley@riagb.org.ukWebsite: www.riagb.org.uk
SIGMA MANAGEMENT DEVELOPMENT LTD4 The CourtyardDenmark StreetWokinghamBerkshire RG40 2AZ
Telephone: 0118 977 1855E-mail: Russell.Chesterman@thinksigma.co.ukWebsite: thinksigma.co.uk
FOR FURTHER INFORMATION
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