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

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Why Measure Asset Management Capability?

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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

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Other Standards & Publications

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Asset Management

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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

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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

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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.

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Asset Management Roadmap

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So how has Network Rail performed?

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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.

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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

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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