Maintenance Phase 2b/c PIR findings and recommendations. Final Version September 2013

Transcription

1 Maintenance Phase 2b/c PIR findings and recommendations Final Version September

2 Contents Post Implementation Review Principles of Phase 2bc Scope of the PIR Findings Recommendations with proposed owners and timescales 2

3 Post Implementation Review This PIR is the final PIR for Maintenance Restructure Phase 2bc This PIR is mandated as part of the safety validation and by OSART It was a commitment to our staff, the ORR and the Trades Unions It s key objective is to confirm or otherwise whether the principles of Phase 2bc were achieved and if not what recommendations should be taken 3

4 Phase 2bc objectives Standardising the structure of the organisation to improve management and control of the business and facilitate smooth implementation of changes to improved working practices Consistently sizing the organisation on current maintenance work volumes Reducing the cost of maintenance activities Creating an organisation that has the flexibility to undertake alternative work (life extension, refurbishment and renewals) where this can be done cost effectively and meet business requirements Facilitating the appropriate redeployment and retraining of employees that may be affected by this proposal where this is appropriate and meets business requirements Providing a more efficient but no less effective faulting and response capability within the organisation Promoting and facilitating improved cross-discipline working and greater flexibility in the deployment and use of the workforce within and between delivery units and routes Bringing clarity on job purpose and accountabilities through the introduction of a suite of standardised job descriptions 4

5 Scope of the PIR Scope: Delivery of Phase 2b/c objectives Effectiveness of the organisation design, size and funding Management of safety/business risks and opportunities Management of vacancies, displaced staff and contracted resources Sustaining the delivery of the benefits Delivering productivity targets Section Manager workload Exclusions: Changes to the organisation post Phase 2b/c Wessex Alliance, Devolution, DIME and Olympus are all subject to separate reviews 5

6 PIR Findings 6

7 Findings (1) RAG Status versus the original objectives Delivery of Phase 2b/c objectives Standard template organisation structure for maintenance implemented The maintenance organisation headcount reduced by approximately 1,400 net as a direct result of Phase 2bc The volume of work (Maintenance and Works Delivery volumes), being delivered has remained largely unchanged since Phase 2b/c There is no adverse change in Asset condition measures or performance of the rail network (As an observation since the PIR there has been an adverse impact on performance and speed restrictions which may require further investigation to understand if this is partly or wholly due to Phase 2bc) Reliability trends are materially unchanged there is a continued reduction in incident counts Response time to fix metric unchanged since Phase 2b/c Devolution has had an impact on maintenance delivery with Routes operating in a new environment with direct control of maintenance budget and sizing decisions Over half of senior leaders interviewed commented that there is scope to further improve T&Cs across geographies, promoting multi-skilling (which needs to be defined), crossdiscipline working (supports recommendation 8) Redeployment and retraining activities have, in general, been successful but the pace could have been better (supports recommendation 6) 7

8 Findings (2) RAG Status versus the original objectives Effectiveness of the organisation design and sizing: Organisational design (the team structure below Section Manager) is considered fit for purpose but the number of vacant posts across the business means it is not working as planned. (supports recommendation 5) Some specific disciplines (Off-Track, OLE, Ultrasonic testing) have particular issues in the size of their organisation (supports recommendation 4) Instances of team size by task not being utilised effectively and the sizing principles not being consistently applied (supports recommendation 4&8) Although work volumes have not increased national work backlog has increased since Phase 2b/c and the causes and implications of this should be investigated further including whether it is due to funding and access availability to understand if remedial action should be undertaken (supports recommendation 3,4&5) 8

9 Findings (3) RAG Status versus the original objectives Management of safety/business risks and opportunities: There is no evidence to suggest that the changes have had material impact on the number of safety incidents. However, the key measures of AFR and FWI have increased but are now levelling off this is partially due to the implementation of the initiatives from 10 point plan 81% of Senior Leaders suggested that standard job descriptions have clarified the roles and responsibilities of all staff in regard to safety There remains scope to improve the level of understanding amongst the workforce around why we are delivering work and how we could do it smarter and more efficiently (supports recommendation 8) 9

10 Findings (4) RAG Status versus the original objectives Management of vacancies, displaced staff and contracted resources: 65% of Senior Leaders interviewed considered the displacement process to be transparent and suggested that it gave the opportunity to engage staff. 20% thought, however, that it led to the loss of some valuable team members Around 127 people remain displaced but 85% of those affected have been successfully released or redeployed Considerable vacancy gaps exist in some areas of the direct organisation including those posts created as part of the 6 month PIR (supports recommendation 5) There has been a marked increase in the use of Labour Only Subcontractors (LOSC) being used to cover core work and vacancies (supports recommendation 5) 10

11 Findings (5) RAG Status versus the original objectives Sustaining the delivery of the benefits: Standardised maintenance team structure materially remains in place although the Routes have resized some parts of the organisation Initial headcount reduction has been sustained to date, with the exception of roles reintroduced following initial 6 month PIR The cost of maintenance continues to outperform the CP4 requirements, but there are some data quality and opex/capex issues which require further work to improve the capture of maintenance costs (supports recommendation 3&7) New ways of working in place, but effectiveness should be challenged by the Depot Project and there are issues around the effective implementation of team size by task and effective use of the sizing principles (supports recommendation 8) Benefits of Phase 2b/c are being over-taken by Devolution and other change programmes 11

12 Findings (6) RAG Status versus the original objectives Delivering productivity targets: Depot teams are delivering broadly the same work volumes, but backlog has increased and the work is being delivered in many cases with fewer staff (supports recommendation 5) Data suggests that unit costs have reduced since Phase 2b/c Clear need to better understand productivity and agree a more transparent measure (supports recommendation 7&8) Instances of fragmented and disparate data systems at DU level could be impacting the effectiveness of local decision making (supports recommendation 7) Maximising the benefits from the working practice changes (supports recommendation 8) Consistent rostering has been implemented successfully but issues existing in the use of team size by task Current T&Cs for frontline staff are quoted by senior managers as one of the biggest barriers to maximising the business benefits across all Routes. 55% of Senior Leaders interviewed claimed that dropping multi-skilling from the scope of Phase 2b/c meant that a key enabler of future efficiencies was lost - this should be defined and reinstated as a key priority in the future Better management information across all depots would facilitate knowledge transfer and allow leaders to benchmark performance, particularly in relation to the introduction of new working practices (supports recommendation 7) 12

13 Findings (7) RAG Status versus the original objectives Section Manager workload and Planning: SM workload remains a longstanding issue and has not been successfully addressed as part of Phase 2bc (supports recommendation 1) SMs indicate that the average working week is high, at 52 hours, and 74% have seen an increase in workload since Phase 2 B/C (supports recommendation 1) 75% of SM indicated Phase 2bc has had a negative impact on the organisation (supports recommendation 1) 60% of RIMDs and IMDMs believe that they are not necessarily able to focus on the right work and that further support/training may be required to address this. (supports recommendations 1&6) Role profiles introduced in Phase 2b/c (not consulted with TU s) have not been effectively embedded into the organisation and could be improved by consideration in the Depot Project (supports recommendation 6) More clarity is also required on the SM support roles (Section Planner and Supervisor roles, Admin and consideration should be given to how this part of the organisation operates as is not operating at an optimal level at the moment (supports recommendation 2) Nearly half of RIMDs and IMDMs claim that it is difficult to recruit SMs due to the nature of the role, a lack of clear career progression and external competition for necessary skills (supports recommendation 2&6) 13

14 Recommendations Recommendations with proposed owners and timescales 14

15 Recommendations Recommendations have been grouped into eight themes: 1. Section Managers 2. Planning 3. Business Plan 4. Sizing 5. Vacancy management 6. Training and competencies 7. System and Management Information 8. T&Cs and pooling resources Proposed recommendation owners and timescales have been included. The recommendations are to enable compliance with the principles of Phase 2bc Where applicable the recommendations have been aligned to the Depot Project themes or projects to avoid duplication of work 15

16 1. Section Managers Recommendations Action Owner Timing 1. Section Managers: Undertake more detailed analysis on SM workload including required support and division of time including business continuity (cover for leave, sickness, training etc.) Consideration to be given to changing the organisation design of SM organisation including the reporting line of the direct organisation. In revising the responsibilities of the Section Supervisor /Planner/Administrator roles care should be taken not to just transfer accountabilities to the Team Leader Clearly define the role of a SM using a role based competence model including creation of a Section Manager Manual with competency requirements The TUs should be involved in the above reviews Route Managing Director LNW (Delivered via the Depot Project Activities theme) Within 6 months Objective: Focus Section Manager time on engineering Tasks 16

17 2. Planning Recommendations Action Owner Timing 2. Planning: Review the planning processes to align accountabilities, competence and tools at DU level Link to DU Project Review in more detail the role of the Section Planner, using a role based competence model, delivering focused training and support to this role This review to be undertaken ahead of ad hoc changes to Route planning and Admin arrangements Route Managing Director South East (Delivered via the Depot Project Planning theme) Within 6 months Objective: Restructure Planning and redefine role / competency of Planner roles 17

18 3.Business Plan Recommendations Action Owner Timing 3. Business Plan - funding and budgets: Calculate the true cost of maintenance for every Route and Delivery Unit Determine and confirm funding arrangements for actual cost of maintenance and align resource plans Route Managing Directors (Delivered via the Business Planning Process) Within 6 months Objective: Alignment between maintenance costs, resource plan and funding requirements 18

19 4. Sizing Recommendations Action Owner Timing 4. Sizing: Review the sizing of the SM and direct organisation including the consistent use of the sizing principles (linked to the Section Manager recommendations) Address specific issues around size of Off-track and OLE teams and some specialist services (e.g. Ultrasonic testing) activities at Route level Resize and consult in/out posts within the organisation where there is a change in the workload requirements Safety Validate the new organisation Route Managing Directors (Supported by the Establishment Review) Within 6 months Objective: Right sized organisation consulted and safety validated 19

20 5.Vacancy Management Recommendations Action Owner Timing 5. Vacancy management: Undertake a detailed analysis on the increased use of LOSC s and contractors to fill resource gaps in the current organisation Fill vacancies to meet the consulted direct maintenance organisation establishment and where staff and competency shortages are impacting the works delivery organisations performance. Support this with metrics for monitoring and measuring vacancies Use new Voluntary Severance scheme to target specific areas of the business with surplus resources Route Managing Directors (Supported by the Establishment Review) Within 6 months Objective: Effective resourced organisation which matches the organisation design 20

21 6.Training and Competence Recommendations Action Owner Timing 6. Training and competencies: Improve the selection and prioritisation of competences through the implementation of a national competency prioritisation system which identifies short, medium and long term requirements Provide better guidance on what constitutes short term or urgent requirements for training and competence and ask Routes to re-run their training needs analysis The TUs should be briefed / engaged on the competence prioritisation system Head of Professional Development and Training (Delivered via the Competence work stream of the Business Critical Rules Programme) Within 12 months Objective: Effective assessment process and training plan to support business requirements 21

22 7. Systems and Management Information Recommendations Action Owner Timing 7. System and MI issues: Define, capture and maintain a simplified set of safety, assurance, performance, resource and financial metrics and agree how to manage, analyse and report those metrics Provide the ability to easily identify separately maintenance and works delivery volumes in ellipse A number of data quality issues require further investigation and fixing: includes HR, and AI Systems. Consider creating a programme to integrate the systems used to store and analyse data at Depot level Route Managing Director Western (Delivered via the Depot Project Management Information theme) Route Managing Director Anglia (Delivered via the Depot Project Systems theme) Within 12 months Objective: Improvement in the data set that we manage/monitor our business with including leading and lagging indictors 22

23 8. Standard T&Cs and pooling resources Risks Action Owner Timing 8. T&Cs and pooling of resources: Consider revisiting the creation of a standard set of T&Cs Route Managing Director Scotland Within 12months Working practice changes: Investigate the extent to which working practice changes have been used properly across all DUs (Delivered via the Depot Project Rostering theme) Review the use of team size by task to enable a consistent use of its application across the DUs Consider and define what Multi-skilling elements are needed and practicable Reinforce that any proposed changes to organisation size or structure will require appropriate formal consultation with the relevant Trades Union New posts to be advertised in accordance with agreed process and D&I policy Objective: Standard set of T&Cs/Enforcement of existing T&Cs; pooling of resources 23