Using Performance Measures to Enhance Asset Management in New Zealand

Transcription

1 6 th National Conference on Transportation Asset Management Nov 2005 Using Performance Measures to Enhance Asset Management in New Zealand Travis Gilbertson Opus International Consultants Ltd Barry Stratton Transit New Zealand 1

2 Agenda 1. Asset Management Procurement Models 2. Hybrid Performance Measures 3. Hybrid Compliance System 4. Hybrid Compliance Achievement and Experience 2

3 Transit New Zealand NZ National Highway Agency State Owned Road Authority Responsible for approx 11,000km of State Highway Asset Value = US$9.3B Annual Budget = US$650M 300 staff All Professional Services & Physical Works Outsourced 3

4 New Zealand Highway AM Mostly two lane, chip seal, flexible pavements 4

5 New Zealand Highway AM Asset Management Pyramid Community Outcomes Asset Outcomes Vertical Integration Service Levels Intervention Levels Work Instructions Physical work 5

6 New Zealand Highway AM Doing things right Doing the right things Setting the right objectives Efficiency Effectiveness Efficacy Operational Tactical Strategic Physical Work Work Instructions Intervention Levels Levels of Service Asset Outcomes Community Outcomes 6

7 New Zealand Highway AM Implementation Contractor Doing things right Management Consultant Doing the right things Governance Client Setting the right objectives Efficiency Effectiveness Efficacy Physical Work Work Instructions Intervention Levels Levels of Service Asset Outcomes Community Outcomes 7

8 New Zealand Highway AM The boundaries are blurred and information has to be shared across the boundaries Governor The Asset Management Manager Team Implementer 8

9 AM Procurement Models Currently three contract models (all outsourced) Traditional Hybrid Performance Specified Maintenance Contract (similar to P3 model) 9

10 AM Procurement Models Traditional Functional Relationship Client Consultant Contractual Engagement Performance (PSMC) Client Consultant / Contractor Contractor Hybrid Client Consultant Contractor 10

11 AM Procurement Models Extract from Transit New Zealand LONG TERM PROCUREMENT PLAN - JUNE

12 AM Procurement Models Hybrid Contract Roles Client - Transit New Zealand Governance, Funding Network Management Consultant Asset Management (Asset Preservation, Corridor Regulation, Road Hazard Mitigation, Information Management, Performance Monitoring) Network Contractor Asset Maintenance (Physical Work Operations, Maintenance & Rehabilitation) 12

13 AM Procurement Models Hybrid Partnering Philosophy Client Consultant Contractor Asset Maintenance Governance Asset Management Short Term Long Term Hybrid Project Team mix of Theory & Practical Knowledge 13

14 Hybrid Performance Measures Purpose Identify drivers & problems Identify solutions Make continuous improvement Demonstrate compliance Establish benchmarks Identify external influences Recognize deficiencies 14

15 Hybrid Performance Measures Ensure Effectiveness Clearly identify objectives Measures directly related to objectives Simple, easy to use & cost effective Improvement is the focus Trends are more important than achievement Timely feedback Process of review 15

16 Hybrid Performance Measures Key Outcomes Road Safety State Highway Protection Environment Asset Management Contract Delivery Culture Services Preventive Maintenance 16

17 Hybrid Performance Measures Contractor Measures Management Performance Measures (MPM) x12 Operational Performance Measures (OPM) x48 Network Performance Measures (NPM) x5 Consultant Measures Operational Performance Measures (OPM) x20 17

18 Hybrid Performance Measures Contractor MPM Example Key Objective Maintenance Contractor s work schedules must: Promote whole of life cost effective maintenance works so all Performance Criteria are achieved Optimize the level of service and investment Improve the reliability of the Network Consultant s forecasts Provide sufficient information for the Network Consultant to respond to stakeholder and customer issues. 18

19 Hybrid Performance Measures Contractor MPM Example Performance Measure MPM 2 - Contractor s Work Schedules Activity Contract Standard Frequency Routine Work Schedule Complies with this Section and accurately describes the proposed maintenance work for the coming month. With Monthly Report Draft Annual Work Schedule (Rehabilitation + Major Work) Complies with this Section and accurately describes the proposed resurfacing, area wide treatment, major drainage control and other works confirmed for the current and proposed for the following year. by 1 July each year Rolling Five Year Work Schedule (Rehabilitation + Major Work) Complies with this Section and describes the resurfacing, area wide treatment, major drainage control and other works proposed for the next 5 years. by 31 July each year Final Annual Work Schedule (Rehabilitation + Major Work) Complies with this Section and accurately describes the resurfacing, area wide treatment, major drainage control and other works that will be completed in the next year. by 1 September each year Ten Year Work Schedule Complies with this Section and optimises the level of service and investment. by 1 September each year 19

20 Hybrid Performance Measures Contractor MPM Example Notes Routine Work Schedule this schedule: details the location and extent of all routine (including noncyclic) maintenance work the Contractor proposes to complete during each month. includes the proposed cash flow (accrued indebtedness) for each work category for each month of the current financial year. As this contract is paid as a proportionate lump sum, the cash flow must reflect the percentage of work proposed under each work category each month, see Appendix 3.5 Draft Annual Work Schedule this schedule details the location and extent of all resurfacing, area wide treatment, major drainage control and if agreed other works such as recycling treatments confirmed for the current year and the work (including justifications) proposed for the following year. Rolling Five Year Work Schedule.. Final Annual Work Schedule Ten Year Work Schedule (TYWS) 20

21 Hybrid Performance Measures Contractor OPM Example Performance Measures OPM 3 Surface Integrity Highway Class All Highways All Highways Contract Standard There is no potential traffic hazards or public complaints as a result of failed pavement or surfacing or resulting from maintenance activities. There is no loose surface material tracked into adjoining properties and businesses OPM 4 Reinstatement of Pavement Markings and Raised Pavement Markers Highway Class All Highways Contract Standard Pavement markings and raised pavement markers are reinstated before temporary traffic management is removed. All Highways Pavement markings and raised pavement markers are reinstated within 48 hours of the surfacing being completed. OPM 5 Service Covers Highway Class All Highways All Highways Contract Standard At reconstruction sites all service covers are adjusted within ± 5mm of the surrounding pavement surface All service covers are within ± 10mm of the surrounding pavement surface 21

22 Hybrid Performance Measures Contractor NPM Example Performance Measures NPM 4 Major Treatment Quantities Year Contract Standard Quantum of Work All All The Contractor completes at least 10% of the contract treatment quantities annually unless agreed otherwise by the Principal. Treatments are traded annually to ensure that a fixed value of treatment work is delivered annually, which represents 20% of the contract value. 22

23 Hybrid Compliance System Three sequential months of minor N-C in any single measure will result in a Major N-C Contractor Performance System (Key Success Factors) Management Performance Measures (Office - Monthly) Quality System Programming Reporting Traffic Management Relationships Information Management Treatment Selection Construction Major N-C Operational Performance Measures (Field - Monthly) Routine Maintenance Activities Network Performance Measures (Field - Annual) Construction Standards Skid Deficiency Roughness Texture Three sequential months of minor N-C in any single measure will result in a Major N-C A Major N-C will result for any contract NPM not achieved 23

24 Hybrid Compliance System Contractor Performance Monitoring Compliance System Performance Measure Month MPM 1 C C Minor NC C MPM 2 OPM 1 Minor NC C Minor NC Minor NC C Minor NC C Minor NC A Major Non- Compliance is issued against OPM 1 OPM 2 C C C C >15 Minor NC issued in a single month = Major Non-Compliance > 3 Major NC Breach of Contract 24

25 Hybrid Performance Measures Consultant OPM Example Performance Measures Outcome ID Description Purpose Description Unit DATA Cnsltnt Basis of monthly calculation SH Protection P1 P2 Planning Consents Service Consents Ensure planning consents are processed within 10 working days. Ensure service consents are processed within 5 working days. Reports over response time (D3) Reports within response time (D3) Consents over response time (D2) Consents within response time (D2) No. 0 No. 1 No. 0 No. 3 pro-rated against total reports delivered pro-rated against total consents delivered in month 25

26 Hybrid Compliance System Consultant Performance System Achieve minimum 80% compliance 26

27 Hybrid Compliance Achievement North Canterbury State Highway Network Operational Compliance - Hurunui/Kaik koura Area - Feb 2001 Outcome ID S1 Description Hazards (1) Purpose Assess number of live hazards within 9m of road edgeline across the entire roading network. KPI Type measure Owner Consultant Description Total number of records in hazard register Total number of "live" hazards in register DATA Unit Fixed Cnsltnt Cntrctr No No. 720 Weighting Score Achievement (0- Card 100%) Score Outcome Result Outcome % % % Outcome S2 Hazards (2) Number of live hazards per lane km statistic Consultant Exposure network lane.km S3 Worksite Safety Audit (1) Safety audit of traffic management at Maintenance Contractor worksites measure Contractor Average audit rating using Transfund NZ site audit procedures score S4 Worksite Safety Audit (2) Safety audit of traffic management at Service Authority worksites measure Consultant Average audit rating using Transfund NZ site audit procedures score Number of crashes during contract No. 9 S5 Crashes at Worksites Ensure worksites are in a safe condition. measure Contractor Exposure network lane.km 744 Cumulative Months mths Average Network area AADT vehs 2500 Safety S6 Response time for preliminary fatal accident reports To ensure Transit have best information available at short notice measure Consultant Number complied within response time Number of reports No. No Safety S7 Response to sweep after sealing To ensure that new road surface is free from loose chip. measure Contractor Average response time hr 34 Required response time hr S8 Reseals & TAS - Response to reinstate road markings and RRPM's To ensure road markings are reinstated within required response time. measure Contractor Average response time hr 34 Required response time hr S9 Maintenance Patches - Response to reinstate road markings and RRPM's To ensure road markings are reinstated within required response time. measure Contractor Average response time hr 53 Required response time hr S10 Contractors internal safety record To ensure Contractor practices safe work methods measure Contractor Target LTI (per 100,000 manhours) LTI Achieved (per 100,000 manhours) No. 2 No S11 Number of crash reports To monitor number of crash received from Contractors reports received from and crash reporters Contractors and crash reporters statistic Consultant Number of crash reports received in the month No

28 Hybrid Compliance Achievement North Canterbury Network Management Operational Compliance Measuring Christchurch/Waimakariri Area Achievement (%) Aug Jul Achievement (%) Outcomes Outcomes 100 Trend - Operational Compliance 90 Safety Environment SH Protection Asset Management Achievement (%) Contract Delivery Culture 50 Service Overall Score Jun-05 Aug-05 Date Oct-05 Dec-05 28

29 Hybrid Compliance Achievement Project Outcome Trends Safety 90 SH Protection Environment Asset Management Contract Delivery 65 Culture Services 50 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Dec-00 29

30 Hybrid Compliance Experience Benefits Encourages no surprises environment Increased understanding of Contractor / Consultant activities Improved networking Promotes innovation Rising expectations / compliance Ownership of network & outcomes 30

31 Questions. Travis Gilbertson Geoplan Opus Consultants Inc. Victoria, BC, Canada 31