Session 1* Case study of an alliance railway renovation project Lielahti Kokemäki (Liekki) Pekka Petäjäniemi Finnish Transport Agency
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1 Session 1* Case study of an alliance railway renovation project Lielahti Kokemäki (Liekki) Pekka Petäjäniemi Finnish Transport Agency
2 It all started in LIPS 2009 in Karlsruhe, Germany LIPS 2009 Jim Ross introduced the Project Alliance EU-legislation is challenge in the public sector LIPS in Washington DC 2010 We can challenge the EU-legislation First Alliance pilot started 2011 No problems with procurement Law 2
3 Lielahti Kokemäki rail renovation project in short Lenght of railway renovation project 89,6 km Project original budget 91 M (incl. owner s material M ) Goal for the renovation is to: Improve safety for railway section and reduce maintenance costs by renewing and repairing constructions (railway sleepers, rails, ballast, culverts, bridges, drainage, build new and tear down old platforms) Reinforce surface and bench structures of the railway track so that it is possible to operate on 250 kn in km/h. Besides the renovation there are improvement needs, such as: Changes in bench width Removal of railway grade crossings First Public sector Alliance Pilot in Europe 3
4 Dialogue inside the owners side Started in May 2010 Coaching was needed Core team started to develop the Finnish approach for Alliancing in June 2010 Wider coaching in two workshops in November 2010 More coaching during the selection process
5 Changing culture is the issue Building trust, trust, trust Dialogue with the industry Started in May 2010 (1-day workshop) General information of the pilot projects in September 2010 Workshop with the industry in November 2010 Focus on commercial framework and selection criteria More workshops during the selection process
6 Alliance steps and situation Liekki situation 9/2015 STRA- TEGY ESTABLIS H ALLIANCE PROJECT DEVELOP -MENT PHASE PROJECT DELIVERY IMPLEMENTATIO N PHASE DEFECTS CORRECTION PERIOD
7 FinnTrA s Strategic Targets for Alliancing To improve productivity of the entire industry To change the culture into a more open and trusting way of working To improve the customer satisfaction for end products faster, better quality and cheaper To develop innovativeness and knowledge 7
8 Lielahti Kokemäki alliance Value for Money Total optimization Human in center: WE spirit ALLIANCE Way of action: best for project and as the needs arise Collaboration between owner, designers and contructors 8
9 Project Key Result Areas KRA Safety Schedule Operations Usability Alliance Objectives Zero harm in traffic and work safety on a very good level, open reporting culture Meet all milestone dates and project commissioned and handed over on agreed date Zero reliability incidents, including no late return of track possessions Use of railway track on agreed speed level
10 Outcomes of Key Result Areas Objectives Failure Minimum Conditions of Satisfaction Results Passenger Traffic Precision [%] ,65 26 Freight Traffic Precesion [%] ,93 9 Project Completion Date [dd.mm.yyyy] Deviation of Rail Safety [pcs] ,5 5 Safety measurements [%] ,8 7 Breakthrough KRAperformance Frequency of Accident at Work [pcs/1 Mhours] ,2 12 Total Value for Money 10
11 Usability of track under construction In three Years delivery period about trains passed the site, because of construction only 42 trains has been delayed or cancelled Accuracy of traffic during constuction: Freight Tarffic 99,93% Personal Traffic 99,65% (Avg. In FIN ~82 %) Cooordinaton between construction site and rail traffic has been excellent! 11
12 Effective delivery Project manage and effective schedule planning with Lean -tools Traditional project delivery Total Schedule of Project Administrative Plans Final Design Poject Delivery Initialization Alliance model Total Schedule of Project Administrative Plans Final Design Poject Delivery Initialization Project Delivery has been reduced about 2 years 12
13 Even fast delivery the project management has been succesfull Total management of construction works, final design and owner s administrative procedures. All decisions are made best for project Taking lean-principles to practice: Last Planner Gemba Walk Kaizen LPDS Collaboration in work coordination, management of change and innovative problem solving create efficiency. Training and guiding play a key role New way of collaboration requires constant learning during the project 13
14 Safety as performance Safety level has been high level throughout the project delivery Safety process has been created by alliance and it is part of daily action Safety measurements, about notes have been made Work Safety Level 95,8% Total hours of work about h Work accidents 4 kpl, of which lost working days totally 19 Frequency of work accidents 6,2 (avg. In Finland 20 in railway projects) Traffic Safety Deviations Commucation between Rail Traffic Control and Site Personal Securing the road traffic at level crossing Working in safety device premises without a permission Railroad traffic Safety in good level 14
15 Target Outturn Costs (TOC) Alliance Leadership Team has accepted TOC Level at (Begin of Implementation Phase) 85,6 M Fee Risks Owner Project Costs KRA 0 Bonuspool 1,7 M Service Producers Project Costs Total Project Costs 76,6 M 15
16 Outcomes of the commercial model Actual outturn cost prediction at the end of the construction period: 80,0 M Forecast: Gain +7,0 M Goals are achieved and the success of the project can be well demonstrated Project has been expanded combined constructions with municipalities Value for Money Palkkio Fee for korvattaville project kustannuksille specific costs Projektikohtaiset Risks yhteiskustannukset Owner s costs Direct Palveluntuottajan project costs for korvattavat non-owner kustannukset participant 12%/25,6% Owner has increased the project scope with 4,2 M gained during the alliance Project costs 71,5 M
17 Target Outturn Costs devided for Technical areas Estimated Realized k Design Railway sleepers, rails, ballast Total new level of costs [ 20%]! Excavation work
18 Public Relations during the Alliance great part of the achievements 18
19 Site of the Year 2012 in Finland! Exceptional collaboration between owner and service providers 19
20 Integrated Project Deliveries in Finland
21 Experience of Alliance + Successful Alliance pilot strong achievements + Remarkable Start for Finnish Alliance Market + No problems with EU Procurement Law + Begin of Project is possible with general plans + Project Management + Alliance Model has been created new skills + Good learning environment + Risk management Commitment of all participants Changes of Key Personal Key Result Areas also for Warranty Period Big Room common for all participants Initiation of Alliance Model way of working 21
22 Thank You for listening More information liikennevirasto.fi/lielahti-kokemäki Owner s Project Manager Mikko A. Heiskanen, Liikennevirasto p mikko.heiskanen@liikennevirasto.fi Alliance Project Manager Mikko Nyhä, VR Track Oy p mikko.nyha@vr.fi 22
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