Securing supplier assurance

Transcription

1 Guidance on the principles of supplier assurance and how to engage with existing arrangements for today s GB mainline rail industry

2 About this document This document is about supplier assurance and how it supports procurement management. It has been produced by RSSB as part of the Supplier Assurance Framework Project for the GB mainline rail industry, sponsored by the Supplier Assurance Sponsor Group. The group includes representation from Network Rail, the train and freight operating companies, rolling stock leasing companies and suppliers. For more information, contact RSSB, telephone July 2011 Copyright RSSB 2011

3 Contents Page 1 Introduction: Supply chain risk management 2 2 Why do we need supplier assurance arrangements? 6 3 Generating supplier assurance 14 4 Working with supplier assurance arrangements 20 5 The future for supplier assurance 24 Appendix 1 Rail industry supplier assurance vocabulary 26 Appendix 2 Link-Up supplier qualification scheme 32 Appendix 3 RISAS Railway Industry Supplier Approval Scheme 33 Appendix 4 IRIS International Railway Industry Standard 34 Appendix 5 ATOC ACOP/EC/ Appendix 6 Freight Technical Committee Audit Protocol (FTC) 36 Appendix 7 Altius Vendor Assessment 37 Appendix 8 How the schemes map on to the supplier assurance model 38 Appendix 9 Other arrangements 40 1

4 1Introduction: Supply chain risk management Rail industry buyers have a responsibility to manage risk imported from suppliers. 1.1 Rail industry buyers The railway in Britain, like other railways, is a system, with each part interfacing with another, in order to move people and goods in as efficient, reliable and safe manner as possible. Although the system is complex, with many different companies and organisations taking part, they all share this common purpose. Each company has its own duty and responsibility to function, perform and succeed safely and reliably. This includes addressing risk, and having processes in place to manage it. Train and freight operating companies (TOCs and FOCs) work with Network Rail to run trains on its infrastructure, and often with rolling stock leasing companies (ROSCOs) who lease trains. There are complex but common supply chains that sit behind them. In essence, this is the operating framework for the railway. This includes a legal duty for transport operators the companies who have a direct role in running the railway - to cooperate and manage safety through ROGS (The Railways and Other Guided Transport Systems (Safety) Regulations) 2006, and have a safety management system (SMS). SMS holders like Network Rail and TOCs/FOCs tend to be the buyers in the rail industry supply chain. Their responsibility to manage risk extends to the risk imported from suppliers. Tools and techniques to manage this risk include supplier assurance. 2

5 1 Introduction: Supply chain risk management 1.2 Managing the risk in a common supply chain Procurement management should involve tackling the risk imported by buyers from suppliers into the supply chain. For rail industry buyers, the procurement process of specifying, procuring, contract managing and project managing all involve a common supply chain. Suppliers are expected to ensure they meet the industry s safety requirements. A shared motive for managing risk, along with a common supply chain, suggest a single framework for supplier assurance. However, history has led to the development of a range of different supplier assurance arrangements in an unstructured way. 1.3 Where industry is today and where it wants to be Supplier assurance arrangements exist through a combination of in-house systems developed by each SMS holder as a response to their own individual legal and safety duties, and third party schemes designed to support SMS holders in meeting their objectives. However, many in the rail industry consider them to be complex and confusing for existing and new suppliers to the GB mainline rail industry. Research has shown that there is an opportunity to realise an estimated annual time-cost saving of 35million per annum, which broadly equates to some 375 person years of effort, by making supplier assurance arrangements more simple, effective and efficient. In response, the Supplier Assurance Framework Project is aiming for a single set of integrated arrangements which provide value for money and are effective, efficient and easy to understand. It will require railway supply chain support in order to succeed, but has the potential to become a world-class example of supply chain co-operation and success. 3

6 1.4 What this document is and how it works This document aims to provide a shared and consistent explanation of what supplier assurance is, the principles that underpin it, and how companies go about securing it. It is aimed at everyone in today s rail industry who has an interest in procuring on behalf of, and in supplying to, SMS holders as well as managing ongoing relationships within the supply chain. It builds on and supersedes two documents already published by RSSB: Rail Industry Supplier Assurance Vocabulary Rail Industry Supplier Qualification and Assurance Guidance All the relevant information from them has been updated and included here. The updated Vocabulary is in Appendix 1 on page 26. This document also includes more detail on the principles of supplier assurance and how it relates to SMS holders risk management. It is designed to improve overall understanding of the supplier assurance landscape, alongside signposts and reference points to existing schemes and organisations which are designed to help. Sections 2 and 3 deal with the principles of supplier assurance, its purpose and a model to illustrate how it is generated. Section 4 outlines the present day arrangements for supplier assurance and explains how to work with them. Appendices 2-7 provide reference points and contact details for individual schemes. Appendix 8 shows how the schemes map on to the model. Section 5 describes industry s collective outlook on what future supplier assurance arrangements might look like, and the major cross-industry project underway to make the vision a reality. 4

7 1 Introduction: Supply chain risk management 5

8 2Why do we need supplier assurance arrangements? Supplier assurance is a necessary risk management tool, but the challenges of making the associated processes effective and efficient are not to be under-estimated. 2.1 What is supplier assurance? Supplier assurance can mean different things to different people, and historically there has been a lot of confusing terminology out in the field. In 2008, the rail industry agreed a set of consistent terms in a Vocabulary document (shown in Appendix 1). The rail industry s agreed Vocabulary (Appendix 1) defines supplier assurance as: Supplier assurance: The arrangements, implemented by a customer organisation, necessary to establish that supplier(s) are suitably competent, adequately resourced and can consistently deliver their products to the customer s specification. In essence, supplier assurance represents the confidence that buyers and suppliers have in each other when working together to manage the risks associated with the activities described in the definition above. The better the risk management by people in safety, engineering and procurement, the greater the level of confidence. It relies on having the right culture and behaviours in place. Supplier assurance itself has to be risk-based. This means that buyers will seek higher levels of assurance providing a higher burden of proof of a supplier s capability when procuring products and services which represent a higher risk to safety and the business. 6

9 2 Why do we need supplier assurance arrangements? 2.2 Why do we need supplier assurance? To comply with legislation (see section 2.6) To demonstrate management and control of risk To respond to learning from operational experience (see section 2.4 and 2.5) To make procurement more efficient To support management of mutually beneficial buyer-supplier relationships To foster continuous improvement in the business and across the railway system 2.3 How supplier assurance arrangements have evolved Over the past 20 years a variety of supplier assurance arrangements, including a number of third party schemes, have developed in an unstructured way across the rail industry. Contemporary supplier assurance arrangements were first introduced by British Rail (BR) (when the railway was nationalised under one umbrella organisation) via its Supplier Quality Assurance initiative which moved BR away from its inspection-based regime. The core drivers were the need to improve the quality of goods and services to aid the delivery of better passenger and freight services and the need to comply with European procurement legislation. Since privatisation in the mid-1990s, the complexity of the supply chain has grown, and in turn individual bespoke solutions for supplier assurance for different operational parts of the railway grew. 7

10 e inside front and rear covers, C) / Paul Bigland. 2.4 Learning from operational experience in GB rail Experience of operating the railway provides an active indicator of whether supplier assurance is working, and where improvements to assurance can be made. Ultimately, it is the operation of the railway which generates its revenue and supports the mechanics of the economy. The GB mainline network carries 3 million passengers per day, 450,000 of them commuting in the morning peak. Each day, 2 million people either begin or end their journey in London, and 200,000 tonnes of freight carried across the country. The network as a whole sees over 1.2 billion passengers a year. Demand for higher quality and more economic rail travel for passengers and freight use is set to increase. Capturing, and acting on, the learning from when things go right and wrong helps ensure continuous improvement in the management of safety and business performance. For example, the public inquiry (led by Lord Cullen) into the train accident at Ladbroke Grove in 1999 highlighted the need for improvements to be made to existing arrangements for the management of safety critical materials and services (see case study on p9). The industry s reaction to this has been a key driver in relation to management of safety related risk arising from procurement arrangements. Recognising that the rail industry needed to address these recommendations, arrangements were established to provide processes that enabled suppliers and buying organisations to demonstrate that safety critical materials and activity could be delivered in a consistent manner. 8

11 2 Why do we need supplier assurance arrangements? Case Study: Ladbroke Grove On 5 October 1999, a local service leaving Paddington passed a signal at danger and collided with an oncoming High Speed Train. 31 people lost their lives and over 400 were injured. The public inquiry report into the incident, led by Lord Cullen, went into the detail of the detrimental effects of fragmentation and the growing use of contractors in the industry. Cullen wrote that the award of contracts is not being operated in an appropriate manner, adding that it is essential that adequate steps are put in place to ensure that contractors and sub-contractors are selected by a process which gives due regard to their state of training (Cullen 2, 4.72). This led to a discussion on the viability of Safety Cases in the postprivatisation environment (Cullen 2, Chapter 7) and included two recommendations relevant to supplier assurance: Recommendation 24: Suppliers of products or services of a safety-critical kind for use on, or in regard to, the railways in Great Britain should be required to hold an accreditation as a condition of being able to engage in that activity. But the features of such a system require further study. Recommendation 47: The body should also be responsible for the accrediting of the suppliers of products and services and the licensing of individuals, subject to the supervisory activity of the safety regulator (para 10.15). The body referred to in Recommendation 47 is the organisation which evolved into today s RSSB. In response, RSSB facilitated the creation of RISAS (see also section 5) and more recently the Supplier Assurance Framework Project (see section 6). These reflect the industry addressing these recommendations. At time of going to print, ORR does not currently see that any specific further action is necessary in relation to these recommendations, but they will require ongoing continuous improvement and development to continue to meet the spirit of Cullen. 9

12 2.5 Learning from operational experience in other sectors Inspiration for improving supplier assurance does not come solely from experience on the railways. Other sectors also face their own challenges, and often reveal similar needs for similar fundamental connections between procurement, safety and overall business management. In October 2009, the independent review into the mid-air fire on RAF Nimrod XV230 while on a routine mission over Helmand Province, Afghanistan, showed that there was insufficient assurance of maintenance suppliers in their capability and processes. It showed that the responsibility for procuring maintenance services of critical products was insensitive to the nature and environment that those same critical products were exposed to in anger. Supplier assurance also has an important connection with safety culture. The National Commission on the BP Deepwater Horizon Oil Spill [April 2010] and Offshore Drilling report suggested that BP s approach to safety had not properly addressed process safety how the system works together as a sum of its parts, and how those parts relate to one another. The safety culture in a supplier will have a bearing on its overall approach to safety and performance across the business, including meeting the safety requirements of buyers. Like Ladbroke Grove, this suggests that procurement of safety critical products and services requires an intimate level of assurance that the supplier from top-to-bottom is proven capable. More information on the operational feedback from both the Nimrod and Deepwater Horizon examples (as well as others) is available on the RSSB website search RSSB operational feedback updates. 2.6 Legislation The regulatory framework The UK regulatory framework places general and specific duties on companies. Its origin is the Health and Safety at Work etc Act, which over the years has been supplemented by railspecific regulations. This legislation has influenced the industry s approach to the seeking and provision of supplier assurance. There are four particularly relevant and specific pieces of legislation that influence how GB mainline rail industry clients approach supplier assurance: The Railways and Other Guided Transport Systems (Safety) Regulations (ROGS) 10

13 2 Why do we need supplier assurance arrangements? The Railways Interoperability Regulations The Construction Design and Management (CDM) Regulations The Utilities Contract Regulations ROGS regulations The ROGS Regulations were first introduced in 2006 to implement the requirements of the 2004 Railway Safety Directive. The Safety Directive complements the Railway Interoperability Directive, with the combined intent of making the rail system more competitive by reducing barriers to entry to the market for new train operators, new suppliers and new products, whilst promoting the uninterrupted flow of passengers and goods across the EU. ROGS replaced the Railway Safety Cases and related regulations which had been in place since ROGS requires Transport Undertakings and Infrastructure Managers on the mainline railway to: Develop and maintain a Safety Management System (SMS) that satisfies all legal requirements Hold a safety certificate (or authorisation for Infrastructure Managers) from the ORR (the GB National Safety Authority) which confirms that the SMS complies with the regulations Have procedures in place to introduce new or altered vehicle or infrastructure, and manage change Identify all relevant risks and specify reasonably practicable control measures Work cooperatively with other Transport Undertakings and Infrastructure Managers to deliver a safe railway Manage safety critical work Report on safety performance to ORR ROGS requires Transport Undertakings and Infrastructure Managers (collectively known as Transport Operators) to identify, assess and control risks which arise from their own individual activities as well as those caused by others, including suppliers. The regulations and their supporting ORR guidance place specific emphasis on the management and control of suppliers. The regulations also place a formal duty on Transport Operators to cooperate with one another and other organisations (including suppliers) to maintain and improve safety of the railway system. Given that the Transport Operators that comprise today s GB railway share a common supply chain, a number of cooperative schemes and arrangements have been developed for the purpose of generating and sharing elements of supplier assurance. Further guidance on The Railways and Other Guided Transport Systems (Safety) Regulations 2006 (ROGS), A Guide to ROGS, is available at 11

14 Railways Interoperability Regulations New infrastructure or rail vehicles cannot be placed into service on the UK parts of the Trans-European Network unless the asset is authorised by the relevant Safety Authority in accordance with the Railways (Interoperability) Regulations The same applies for major works of renewal or upgrade, unless, on application to the Competent Authority (which is the DfT for Great Britain and the Department for Regional Development in Northern Ireland) it is decided that no authorisation is required. It is essential that anyone proposing to embark on a project for new build, or for the renewal or upgrade of an existing asset, takes the requirements of these Regulations into account in their project planning from the outset, because: There are likely to be mandatory standards applicable to the project Appointment of a Notified Body (NoBo) to carry out independent verification, conformance assessment and certification must take place relatively early in the life of the project The verification process has to happen throughout the design and build phases: it cannot simply be bolted on at the end of the project Further details related to interoperability are available at interoperabilityapproval/ The Construction Design and Management (CDM) Regulations The CDM regulations aim to integrate health and safety into the management of construction projects and encourage all parties involved to work together. In particular clients, designers and principal contractors are required to check the competence and resources of all appointees. Qualification and assurance schemes are often used to demonstrate that this duty has been met. The Utilities Contract Regulations The Utilities Contract Regulations implement requirements of the European Procurement Directive on Transport Operators to: Make calls for competition through the Official Journal of the European Union Evaluate tenders in a fair, open and transparent way These regulations in particular have influenced how the industry s major clients conduct the pre-tender qualification of suppliers. The qualification of suppliers generally forms the first step in a process to derive supplier assurance. 12

15 2 Why do we need supplier assurance arrangements? 2.7 Standards GM/RT 2450 Qualification of suppliers of safety critical engineering products and services This Railway Group Standard (RGS) was originally written for safety critical engineering products and services ultimately for use on Network Rail controlled infrastructure. These shall be procured from qualified suppliers who shall demonstrate their competence to supply products and services that will sustain the safety of the railway. It therefore requires that the procurer or its agent shall be competent to qualify its suppliers. This competence shall include professionalism in the relevant product or service fields, and competence in safety management. There shall be a process for qualifying suppliers that establishes at least the following: That the supplier understands the risks to the railway that are associated with the product or service That the supplier is competent to produce a safe product or service That the supplier s quality and safety management system is adequate and follows the principles of national and international standards That the supplier is competent to evaluate and select subcontractors The scope of the supplier s qualification That there is a process to monitor that suppliers continue to meet the criteria for qualification That records are kept, including a list of qualified suppliers and their scope of qualification In the longer term, the Supplier Assurance Framework Project, in fulfilling industry s aspiration for a new framework, is likely to lead to a replacement of this RGS with Rail Industry Standards and associated guidance. 13

16 3Generating supplier assurance Assurance generation is a key part of the procurement process and contract lifecycle. The cycle offers several key opportunities to intervene and generate assurance as part of buyer-supplier relationships. 3.1 The Assurance Generator model As mentioned in section 2, supplier assurance refers to the confidence that buyers and suppliers have in each other when working together to manage risk. Assurance will generally be derived through a continuous process, taking advantage of key opportunities to make appropriate and proportionate interventions. These interventions will vary depending on the risk being addressed and the level of assurance required. The Assurance Generator model shown on p16, has been agreed with all industry parties as the basis for seeking and providing supplier assurance in GB rail. The model is based on the buyer/supplier lifecycle and has five main stages. Each stage represents an opportunity to progressively develop assurance and confidence between buyers and suppliers over the course of a relationship. Industry s vision is to create a set of harmonised processes and interventions that will deliver meaningful assurance in the most effective way. This is the aspiration, although in reality, current assurance arrangements (see section 4) do not always provide a perfect fit with these life cycle stages, nor is a single information hub yet a practical reality, (see Appendix 8). This is being addressed through the Supplier Assurance Framework Project (see section 5). 14

17 3 Generating supplier assurance 3.2 Roles and responsibilities Essential for the effective introduction of new and rationalised assurance arrangements that reflect the life-cycle is a growing maturity of relationships between suppliers and customers throughout the supply chain. An organisation s procurement process requires input from engineering, assurance and procurement disciplines. Dependent upon what is being procured, the balance of this input may vary; however, it is essential that these disciplines recognise the need for appropriate supplier qualification, certification and assurance throughout the life-cycle of procurement and delivery. 15

18 The Assurance Generator 2 Pre-tender selection 3 Procurement Process 1 Capability Assessment Information hub / e-service centre Contract Delivery 4 Post-contract review 5 These stages suppose that the quality and scope of the supply chain relationships will mature, as trading partners develop and achieve an integrated and closer approach for delivery of products. 16

19 3 Generating supplier assurance Lifecycle stage What Assurance do we get? Buyer Role Supplier Role 1 Capability Assessment Proof of supplier status and capabilities, compliance with legislation and existence of management systems Understand what requirements they have of suppliers and then using only those suppliers who meet those requirements Demonstrate, maintain and develop their capabilities in line with buyer s requirements 2 Pre-tender selection Detailed information to maximise the likelihood of making the best choice of supplier Use the available information to match potential suppliers to the business requirement Understand the buyer s requirements and demonstrate alignment and competence to supply 3 Procurement process Detailed matching of suppliers products and services to the buyer s requirement. Planning for contract delivery of those requirements Communicate to make sure expectations in terms of the requirements are understood and that there are clear and formalised terms of engagement. Manage the relationship and interfaces appropriately Prepare for contract delivery and the contractual commitment to supply the buyer s requirements based on agreed terms and shared expectations. Implement appropriate processes to ensure compliance 4 Contract delivery On-going monitoring and management of progress towards required outcome Monitor and manage supplier relationship to ensure successful outcome Maintain compliant performance and fulfil commitment, whilst providing feedback to buyer 5 Post contract review Lessons learnt from experience to enable continuous improvement To review, consider, record and share lessons learnt To review, consider, record and share lessons learnt An enhanced version of the Assurance Generator is shown in Appendix 8, which includes an illustration of how existing schemes (described in section 4) map on to it. 17

20 3.3 How thorough should the assurance be? The level of assurance generated will need to be a proportionate effort in relation to the risk being managed as well as legislative requirements. There is a hierarchy of assurance techniques, each of which can be deployed depending on the category of product involved and the level of assurance required. Registration A process provided to suppliers to enable them to register their interest in becoming a supplier. Qualification Qualification is a process to determine whether or not a supplier, or potential supplier, meets a predetermined set of criteria. Registration The rail industry Vocabulary (Appendix 1) describes registration (see left) Registration with the buyer s defined scheme enables the supplier to make themselves known to a buyer and initiates an interest to supply. Information required will generally be company details and information of the products that are to be purchased. Little supplier assurance will be derived from registration, but for very low risk products and services, this may well be proportionate to the risk imported from suppliers. Qualification The rail industry Vocabulary (Appendix 1) describes qualification (see left) Qualification helps a customer build on the initial registration to derive more assurance. This might involve an assessment of the supplier to ensure that the product is appropriate and that the supplier s company is one that meets the pre-determined criteria for approved supplier listing. Part of the qualification process may be applied via one of the industry schemes on behalf of the buyer and may include an evaluation of questionnaire answers and, in some cases, an audit. It may even involve documenting the qualification via a certificate. However, this further qualification activity should not be confused with the certification process, which goes beyond this. Certification A formal process of issuing certificates (hard or soft copy) that provides the holder with documentary evidence that a successful assessment has taken place. See also Management System Certification and Process Certification. Certification The rail industry Vocabulary (Appendix 1) describes certification (see left) Certification provides customers with a more rigorous process to derive much higher levels of assurance than registration and qualification. It involves providing documentary evidence that there has been a successful assessment, a process which requires differing degrees of intervention at the supplier s premises, dependent on the risk that the product or service represents. 18

21 3 Generating supplier assurance Certification can apply to an assessment of an organisation s management system or of an organisation s process. Management system certification will provide evidence of a successful assessment of an organisation to the extent that it has a management system in place that gives it the capability to comply with specified requirements, but not evidence that such requirements can or will be met. Process certification will provide evidence of a successful assessment of an organisation to the extent that it has processes put in place to comply with specified requirements both in terms of its capability to comply and proof that these requirements are met. Such interventions may be undertaken by a third party scheme provider or be the result of an in-house process. Some third party accredited schemes offer a certificate to demonstrate compliance with the assurance process. The three steps described above (registration, qualification, certification) enable confirmation of a company s procurement control measures. For buyers and suppliers, maintaining control of purchasing costs and contracting arrangements is critical for successful business operation. A company should be able to demonstrate that procurement and verification of supplier assurance arrangements have been completed in a robust and consistent manner. As discussed in section 2, these may have been subject to legislative controls. Consequently, the processes for registration, qualification and certification allow suppliers and buyers to define supply, quality and performance requirements of products and therefore enable buyers to filter suppliers that meet specification. More information about how existing schemes support these processes is in section 4. 19

22 4Working with supplier assurance arrangements There are several recognised schemes used across the industry which can help buyers and suppliers generate supplier assurance. 4.1 Where schemes fit in Rail industry buyers usually SMS holders have a responsibility to manage risk imported from suppliers. Each will have its own individual approach to managing the issues around what level of assurance it needs to secure to satisfy itself that the risk imported has been managed as far as is reasonably practicable. The generation of supplier assurance might include use of a recognised scheme. There are a number of schemes currently being operated by various organisations to ensure that the suppliers they select to provide them with products and services have the relevant internal management systems, procedures and processes in place to ensure that what they supply is continuously fit for purpose. There are a number of similarities between the elements contained within each of the schemes. Indeed, it is widely recognised that as a result of there being so many different schemes in existence, there can be duplication of effort by both suppliers and buyers. One of the perceived key benefits to both buyers and suppliers is that it enables both parties to gain a better understanding of each other s organisational capabilities and current and future requirements. All schemes are contributing towards the achievement of the same objective, which is to ensure, to varying degree, that any qualified supplier is continually fit for purpose regarding the products and or services it is looking to supply to the GB mainline rail industry. 20

23 4 Working with supplier assurance arrangements Supplier qualification schemes Supplier certification schemes Management system certification Process certification Link-up Altius Vendor Assessment (Plan Assure) IRIS ATOC ACOP Freight Technical Committee (FTC) Audit Protocol IRIS ISO 9001 ISO ISO RISAS In-house arrangements (company-specific) 4.2 Supplier qualification schemes Supplier qualification schemes allow buyers to apply predetermined qualification criteria to a large number of suppliers that may express an interest. Buyers can also use schemes to help them comply with the Utilities Contract Regulations; Link-Up and Plan Assure are the only qualification schemes that do this. To enable this to happen, the relevant buying organisation (eg a train operating company or infrastructure manager) may, through a scheme service provider, place a Qualification Scheme Notice in the Official Journal of the European Union (OJEU). Suppliers may at any time register an expression of interest in supplying particular products or services through the scheme. By doing this the train operating company or infrastructure manager benefits from a list of suppliers from which a tender selection process can begin without a separate call for competition in the OJEU. This saves the organisation time and resources in the pre-tender qualification of suppliers, whilst still being compliant with the Utilities Contract Regulations. Companies that are not subject to the Utilities Contracts Regulations may also subscribe to a qualification scheme but judge its usefulness purely on the service delivered, as opposed to any need to comply with regulations. Such schemes are particularly attractive to certain rail industry 21

24 customers with high volumes of procurement activity. Achilles Link-up is currently the most widely used scheme in the GB mainline rail industry. Further details of this and other schemes are provided in the appendices. 4.3 Supplier certification schemes Whereas qualification will usually generate supplier assurance at a very high level, certification will usually provide a deeper understanding of a supplier s credentials. Within the GB mainline rail industry, the supply of critical products or services is generally subject to a more rigorous process that requires increasingly significant understanding of a supplier s capabilities, dependent on the risk that the product or service presents. Such an intervention may be undertaken by a third party scheme provider or be the result of an in-house process. Some third party accredited schemes offer a certificate to demonstrate compliance with the assurance process. The advantage of a third party certificate is that it can provide universally recognised supplier assurance which is effectively shared across the industry, avoiding the need to conduct separate, distinct interventions such as generic audits. Such certificates may also form an alternative to some or all of the pre-determined qualification criteria used in supplier qualification. Certification can apply to an organisation s management system or to an organisation s process. In any case, the method typically incorporates a review of Quality, Safety and Environmental Management systems against the International Standards Organisation (ISO) 9000, and series requirements and other industry requirements as a benchmark for the more detailed review of a supplier s management, business, contracting and engineering processes. RISAS (Railway Industry Supplier Approval Scheme) is currently the only industry recognised third party process certification scheme for critical products and services. Further details of this and other schemes are provided in the appendices. 22

25 4 Working with supplier assurance arrangements 4.4 Current inter-scheme recognition While there are a number of qualification and certification schemes in operation, there is currently limited cross-referencing within the respective scheme documentation. This can (and does) lead to confusion for suppliers when they are trying to gain status as a supplier to the GB mainline rail industry. There can be understandable concern about the duplicated demands for information that are imposed upon them as a direct result of there being so many different schemes and in-house arrangements in existence. Agreement has, however, been reached between RISAS and Achilles Link-up, whereby Achilles Link-up makes reference within its system that an organisation has RISAS certification and RISAS refers to Achilles Link-up as being complementary to engineering safety assurance. In addition, as part of the Supplier Assurance Framework Project, the first stage involves simplifying the GB governance of all schemes so that they become more aligned. Further mutual recognition will no doubt emerge and work will continue between the respective scheme providers to ensure recognition and alignment, thereby helping to eliminate unnecessary duplication. 4.5 Other rail industry related assurance arrangements There are additional supplier assurance arrangements used in the rail industry, specifically in relation to infrastructure maintenance, renewal and enhancement. While not the subject of this document, these are explained briefly in Appendix 9 to clarify their relationship with the main supplier assurance schemes. 23

26 5The future for supplier assurance The rail industry s vision is to enable identified annual time-cost savings of 35million (375 person-years of effort). The Supplier Assurance Framework Project Although this guide attempts to explain the existing arrangements as clearly as possible, many in the industry consider them to be complex and confusing for existing and new suppliers to the GB mainline rail industry. Research has shown that there is an opportunity to capture an estimated annual time-cost saving of 35million, which broadly equates to some 375 person years of effort, by making supplier assurance arrangements more simple, effective and efficient. In response, to enable long term cost reduction, the Supplier Assurance Framework Project is aiming for a single set of integrated arrangements which are effective, efficient and easy to understand. It will require railway supply chain support in order to succeed, but has the potential to become a world-class example of supply chain co-operation and success. The project is being managed by RSSB on behalf of the whole GB mainline rail industry including Network Rail, the Association of Train Operating Companies (ATOC), freight operating companies, rolling stock leasing companies and suppliers. In its early phases the project has focussed on establishing and communicating the current state of play with regard to the rail industry s supplier assurance knowledge as well as forming an industry consensus on policy objectives and principles and the characteristics of essential elements of assurance. In the short and medium term the project is seeking to unlock benefits by: Integration bringing existing schemes under a single set of formal rail industry governance arrangements, and encouraging more co-operation by scheme providers Modernisation building on the co-operation to establish a single rail industry supplier assurance system 24

27 5 Working with supplier assurance arrangements Performance improvement developing agreed processes and specifying smarter approaches for tackling performance issues In the immediate future, all of this means that the focus is on bringing existing schemes closer together, under one framework. Throughout the whole process, the work will also address culture and behaviour understanding the characteristics of organisational culture and behaviour conducive to modern supplier assurance. These stages, and the underlying work on culture and behaviour, are shown diagrammatically below: Culture & Behaviour Stage 1 Integration Stage 2 Modernisation Stage 3 Improvement The longer term goal is to introduce a new, unified supplier assurance and management arrangement for the GB mainline rail industry where the key stakeholders define the capability and competence standards for suppliers of goods and services and set and apply a governance framework to control the scope of operation of the arrangements, including oversight of the commercial requirements. This will help enable customers and suppliers to achieve their full potential. Throughout the evolution of new arrangements and any change management, there will remain the need to manage the risk appropriately. For more information about the project go to or contact RSSB enquirydesk@rssb.co.uk 25

28 Appendix 1Supplier assurance vocabulary This is a common vocabulary for the GB mainline rail industry with respect to supplier assurance. It was developed by RSSB and a cross-industry working group which later evolved into the Supplier Assurance Sponsor Group. In the course of working toward a vision of simpler, integrated supplier assurance arrangements, there was an identified need to develop a single reference point to promote a consistent use of terms that have been used in the past with variable meanings. This was first published in September 2008 and these have been reviewed and updated for this publication (July 2011). All relevant parties, including those in buying and supplying roles in the GB mainline rail industry including its suppliers and contractors are encouraged to familiarise themselves with these terms and their meanings, in order to aid consistent understanding through the adoption of a standard vocabulary, and help promote it as a single reference point. It s recognised that comprehensive definitions exist for some of these terms in legislation (and it is intended that the definitions in this document are complementary to them): Health and Safety at Work etc Act and derived regulations Railways and Other Guided Transport Systems (Safety) Regulations (ROGS) Interoperability Regulations 2006 Construction (Design and Management) Regulations (CDM) Utilities Contract Regulations Control of Major Accident Hazards Regulations Other relevant European directives and regulations For terms that are shown in bold type this identifies that they have a specific definition within this document, eg product 26

29 Appendix 1 Supplier assurance vocabulary Term Accreditation Architecture Assessment Assurance Buyer Certification Competence Competence Management System Customer Duty holder Definition The granting of the rights to an agent to act as a Certification or Approval Body. The overall framework that has been specifically designed to provide a coherent and effective structure for delivering a required output or outputs. Systematic and documented process for obtaining evidence and evaluating it objectively to determine the extent to which the criteria are fulfilled. The assessment may lead to the issue of an approval, certificate or other authority enabling the assessed organisation to perform a role or supply a product. A positive declaration intended to give confidence. Person or organisation actively involved in the procurement process and likely to apply/require levels of assurance appropriate to their perceived exposure to risk. A formal process of issuing certificates (hard or soft copy) that provides the holder with documentary evidence that a successful assessment has taken place. See also Management System Certification and Process Certification. 1. The state, or quality, of being adequately qualified and skilled to be able to perform a specific act or task. 2. Demonstrated personal attributes and demonstrated ability to apply knowledge and skills. A system that ensures that those undertaking work have, and continue to have, the competence required to do it. See ORR Railway Safety Publication 1 - Developing and Maintaining Staff Competence The generic term for any organisation that purchases, or seeks to purchase products. The term is used to cover all of the following: - end user, client, buyer, purchaser and procurer. A person or organisation holding a legal duty and, in particular, those placed by the Health and Safety at Work etc Act, the Management of Health and Safety at Work Regulations, the Railways and Other Guided Transport Systems (Safety) Regulations, the Construction (Design and Management) Regulations, and the Control of Major Accident Hazards Regulations. 27

30 Term Governance Licence Management System Certification Principal Contractor Process Process Certification Definition The means by which authority is exercised. Undertaken by a body for purposes of bestowing authority, undertaking proper administration, achieving requisite performance and ensuring propriety. A formal authority issued to organisations that perform particular duties. Examples include: Network Rail s Principal Contractor Licensing Scheme which is used to give authority to its principal contractors to undertake work on Network Rail s infrastructure (Note: this supersedes the Contractor Assurance Case) ORR depot access agreements Management system certification provides assurance that the supplier has put in place a management system that makes it capable to comply with specified requirements. NB: This means that the certification provides a positive evaluation on the capability of an organisation to comply with specified requirements, not that the requirements have, or will be, met. A particular type of supplier appointed to complete construction work and discharge the role of principal contractor as described in the Construction (Design and Management) Regulations. Set of interrelated or interacting activities which transforms inputs to outputs. Note 1: Inputs to a process are generally outputs of other processes. Note 2: Processes in an organisation are generally planned and carried out under controlled conditions to add value. Note 3: A process where the conformity of the resulting product cannot be readily or economically verified is frequently referred to as a special process. Process certification provides assurance that the supplier has processes put in place to comply with specified requirements. NB: This means that the certification also provides a positive evaluation of the capability of the supplier to comply with specified requirements, and assurance that those specified requirements are met. In other words, the supplier is capable of complying with specific requirements, and compliance is assured.. 28

31 Appendix 1 Supplier assurance vocabulary Term Product Product Acceptance (Network Rail) Product Approval Definition Result of a process Note 1: There are four generic product categories, as follows: - services (eg transport); - software (eg computer program, dictionary); - hardware (eg engine mechanical part); - processed materials (eg lubricant). Many products comprise elements belonging to different generic product categories. Whether the product is then called service, software, hardware or processed material depends on the dominant element. For example, the offered product automobile consists of hardware (eg tyres), processed materials (eg fuel, cooling fluid), software (eg engine control software, driver s manual), and service (eg operating explanations given by the salesman). Note 2: Service is the result of at least one activity necessarily performed at the interface between the supplier and customer and is generally intangible. Provision of a service can involve, for example, the following: - an activity performed on a customer-supplied tangible product (eg automobile to be repaired); - an activity performed on a customer-supplied intangible product (eg the income statement needed to prepare a tax return); - the delivery of an intangible product (eg the delivery of information in the context of knowledge transmission); - the creation of ambience for the customer (eg in hotels and restaurants) Software consists of information and is generally intangible and can be in the form of approaches, transactions, or procedures. Hardware is generally tangible and its amount is a countable characteristic. Processed materials are generally tangible and their amount is a continuous characteristic. Hardware and processed material are often referred to as goods. Note 3: Quality Assurance is generally focussed on intended product. Product acceptance is Network Rail s process for the acceptance of new or modified products for use in its business. Network Rail product acceptance applies to manufacturers only. A generic term for any process that is employed to determine a product s suitability for use in a given application. Product approval [Note previous definition Product acceptance (Network Rail)] can sometimes be a one-off approval of a new, or modified, item in order to deem it acceptable for use or it can be a routine approval to ensure continued conformance to specification or standard. 29

32 Term Product Certification Product Categories (also referred to as Product Codes) Qualification Qualification Scheme Rail Plant Registration Safety Critical Safety Management System Supplier Supplier Assurance Supplier Management Definition The process of issuing certificates to provide confirmation and evidence of product approval. A generic term used to describe types of products whose constituent items have similar characteristics and would likely be provided by the same supplier. Such categorisation, in conjunction with the purchasers own risk assessments, facilitate the identification of appropriate assurance processes. Qualification is a process to determine whether or not a supplier, or potential supplier, meets a pre-determined set of criteria. Qualification schemes may be designed to meet the requirements of the Utilities Contracts Regulations. Buying organisations who fall within these regulations may use compliant schemes to qualify their suppliers for the purpose of pre-tender selection, thus avoiding the need for individual calls for competition through the Official Journal of the European Union (OJEU); and repetitive assessment. Rail Plant includes any machinery, equipment or appliance specifically designed for use in a railway environment. This includes On-Track Machines (OTM) and On-Track Plant (OTP) - see Railway Group Standard GE/RT8000/ (the Rule Book) for more information The word Plant is used for other machinery, equipment and appliances. A process provided to suppliers to enable them to register their interest in becoming a supplier. Refer to the ROGS definition in Regulation 23 uk/upload/pdf/283.pdf (in particular paragraph 168 and the definition of safety critical work on page 62). The organisation and arrangements established by a company to ensure the safe management of its operations (see ROGS for more detailed information). The generic term for any organisation or individual that provides, supplies, or seeks to supply, products. The word Contractor may be used to mean the same, particularly with regards to construction. The arrangements, implemented by a customer organisation, necessary to establish that supplier(s) are suitably competent, adequately resourced and can consistently deliver their products to the customer s specification. The generic term for actions, processes and procedures applied by a customer, to ensure effective use of suppliers. 30

33 31

34 Appendix 2Link-up supplier qualification scheme Scheme provider Scheme type Key contacts Customers of the scheme Scope Brief description Website Achilles Information Ltd Supplier qualification scheme Rail and Transport Director, Achilles Information Ltd Link-up Operations Team Phone: Network Rail Major Infrastructure Contractors Train and Freight Operating Companies (Full list available from website) London Underground and other Metro systems All commodities including: Infrastructure components NR traction and rolling stock products and services Business services (Full list available from website) The Link-up Scheme presents suppliers with a web based Product Code structure in which expressions of interest are sought. Scheme allows subscribers to avoid having to place their own PIN notices in OJEU. Qualification assessment is based on the type of Product Codes selected. All suppliers annually complete a dynamic questionnaire which is based on their selection of Product Codes. Some Product Codes require the annual validation of the questionnaire via an audit. The supplier pays a fee for the assessment and audit of qualification questionnaires. The size of the fee is dependent on the type and number of product codes selected. Supplier details and qualification status for the chosen product codes are subsequently displayed to customers on the web based system. Customers using the scheme can select and search for suppliers and products and view supplier details. Customers pay an annual fee dependent on the levels of access and functionality that they specify. 32

35 Appendix 3RISAS (Railway Industry Supplier Approval Scheme) Scheme provider Scheme type Key contacts Customers of the scheme Scope Brief description Website RSSB on behalf of the industry (represented by the RISAS Board) Supplier process certification scheme RISAS Scheme Manager or RISAS Scheme Administrator RSSB Phone: GB mainline rail industry To provide an industry-governed, robust, transferable means of assurance of the quality of critical products and services suppliers via a third party accreditation, assessment and approval process which is consistent with applicable statutory, mandatory, industry, national and international standards. In the first instance it is applicable to suppliers of critical products and services initially for rolling stock maintenance, repair, modification, overhaul and refurbishment. RISAS was developed by RSSB on behalf of the whole rail industry in response to recommendations made in Lord Cullen s Public Inquiry Report into the accident at Ladbroke Grove. It was launched in May 2006 and is recognised by the ORR as meeting the needs of the report s Recommendation 24. RISAS adds value to both the clients and the suppliers by offering: A single, universally recognised assessment and certificate which reduces/ eliminates the need for general audits by other third party schemes or individual client companies in GB. Clear and transparent supplier assessments by competent independent bodies which support the operation of a client s safety management system in controlling risk. Challenging assessments which support suppliers in meeting client requirements and demonstrating excellence. Formalised mechanism for controlled feedback and resolution of customer issues. A robust system for the assessment and certification of rolling stock maintenance recognised by the Office of Rail Regulation (ORR). Assessments of suppliers are undertaken by Railway Industry Supplier Approval Bodies (RISABs) who are accredited by RSSB. Assessments test that the supplier has in place the appropriate systems, processes, procedures and competent resources. Following a successful assessment, the supplier will be awarded a RISAS certificate for a specified period of time which clearly identifies the range of products covered by their certification. Beyond the initial and subsequent refresh of a suppliers capability assessment, RISAS supports the practical safety management operation of the GB mainline railway by providing robust assurance that can be used by SMS holders with confidence. 33

36 Appendix 4IRIS International Railway Industry Standard Scheme provider Scheme type Key contacts Customers of the scheme Scope Brief description UNIFE the Association of the European Rail Industry Supplier management system certification / qualification scheme IRIS General Manager Full rail supply chain: system integrators and equipment manufacturers as well as operators The IRIS standard aims at global recognition and the avoidance of multiple business management system audits. Management systems of companies which design and/or manufacture and/or maintain Rolling Stock or Signalling. The IRIS standard was launched in May In November 2007, IRIS standard rev01 was launched. This addresses the supply of components to rolling stock and signalling. In June 2008 an addendum enlarged the scope to maintenance activities. In June 2009, the IRIS Standard Rev 2 was published. IRIS is a standard based upon ISO 9001 with additional requirements specific to the rail sector. Certification is awarded by certification bodies globally approved to IRIS specific rules. The evaluation process includes a mandatory preparedness review. The assessment is based upon a scoring methodology which provides consistency of interpretation and guidance for continuous improvement through five maturity levels. The audit tool and evaluation questionnaire which supports internal assessment is available separate from the IRIS standard. European train system integrators have committed to recognise IRIS certification as a direct replacement for their existing system audit requirements. IRIS is supported by a web-based portal. Website Auditors shall have a railway background and be trained and examined by the IRIS Management Centre. 34

37 Appendix 5ATOC ACOP/EC/01003 (Approved Code of Practice) Scheme provider Scheme type Key contacts Customers of the scheme Scope Brief description ATOC the Association of Train Operating Companies Supplier qualification scheme ATOC Engineering Council Train operating companies (members of ATOC Engineering Council) and suppliers and sub suppliers of products and services to Train Operating Companies This Approved Code of Practice (ACOP) was established via ATOC to implement the requirements of GM/RT2450 to ensure that safety critical materials and services procured for trains were fit for purpose. This scheme is focussed on but not limited to the traction and rolling stock element of the industry. The ACOP will assist Duty Holders to ensure that safety related and critical products (including services) procured for traction and rolling stock are fit for purpose, and provides a method by which the industry can consistently meet relevant obligations under the Railways and Other Guided Transport Systems (Safety) Regulations 2006 (ROGS) and other applicable legislation. Specific processes are described for: Assessing and documenting risks Supplier approval Supplier assurance audits The ACOP may be used to facilitate agreements between clients and their suppliers but is not intended to create legally binding obligations between train operating companies or between train operators and ATOC. Note: ATOC Engineering Council is actively reviewing where to mandate the use of RISAS for safety critical products and services; any products/ supplier accredited under RISAS do not require additional 1003 accreditation. Website The scheme was approved and introduced in

38 Appendix 6Freight Technical Committee Audit Protocol (FTC) Scheme provider Scheme type Key contacts Customers of the scheme Scope Brief description Freight Technical Committee (FTC) Supplier qualification scheme FTC Secretary: Suppliers to the Freight Operating Companies and associated supply chain. To ensure that safety critical materials and services procured for Freight Vehicles, Vehicle Audit and Site assessments Safety critical material, services for trains, freight vehicles and maintenance sites are fit for purpose (hereby referred to as the Supplier*) FTC certifies supplier* for specific scope. Stakeholder (RU, TU, ROSCO etc.) accepts certification of supplier for that scope. FTC with senior cross industry representation governs the protocol. The scheme is administered via the FTC Focuses the Private Vehicle Owner and Non PO. Freight Vehicle owners with an informed arrangement of Audit protocols to suit the needs of vehicle, site, procurement and services. Give assurance to FOCs for compliance against governed standards, for suitability of use. For stakeholders the FTC Audit Protocol provides - a means of assurance without need for individual stakeholder audits. Cross industry governance and accountability through FTC support. Website For suppliers the FTC Audit Protocol provides - a transferable assessment, which reduces audit burden, should improve efficiency and effectiveness, provide opportunities for continuous improvement and save time and money in the longer term. 36

39 Appendix 7Altius Vendor Assessment (Plan Assure) Scheme provider Scheme type Key contacts Altius Vendor Assessment Ltd Supplier qualification scheme Managing Director, Altius Phone Customers of the scheme Scope Brief description Unipart Rail All commodities Altius Vendor Assessment Limited acquired Plan Assure in 2009 and operates the scheme formerly known as PASS.net which presents suppliers with a web based Product Code structure in which expressions of interest are sought. Qualification assessment is based on the type of Product Codes selected. All suppliers complete a questionnaire, which is based on their selection of Product Codes. Some product codes require the validation of the questionnaire via an audit. The supplier pays a fee for the assessment and audit of qualification questionnaires. The size of the fee is dependent on the type and number of product codes selected. Supplier details and qualification status for the chosen product codes are subsequently displayed to customers on the web-based system. Website Customers using the scheme can select and search for suppliers and products and view supplier details. Customers pay an annual fee dependent on the levels of access and functionality that they specify. 37

40 Appendix 8How the schemes map on to the supplier assurance generator In section 3, the supplier assurance generator showed the range of assurance derived from different stages in the procurement management cycle. The model has five main stages. In section 4, the major schemes that support rail industry buyers in securing supplier assurance were presented, and further signposts are shown in the preceding appendices 1-7. This diagram is an enhanced version of the assurance generator which shows how the schemes map on to it. The model also shows where there can be duplication where more than one scheme is seeking to provide assurance on the same matter. This is being used in the Supplier Assurance Framework Project to align and modernise arrangements. Link-up, Plan Assure 2 Pre-tender selection 3 Procurement Process RISAS Capability Assessment ACOP 1003, IRIS & RISAS 1 Information hub / e-service centre Post-contract review Contract Delivery 4 5 ACOP 1003, & IRIS 38

41 Lifecycle stage What Assurance do we get? Buyer Role Supplier Role 1 Capability Assessment Proof of supplier status and capabilities, compliance with legislation and existence of management systems Understand what requirements they have of suppliers and then using only those suppliers who meet those requirements Demonstrate, maintain and develop their capabilities in line with buyer s requirements 2 Pre-tender selection Detailed information to maximise the likelihood of making the best choice of supplier Use the available information to match potential suppliers to the business requirement Understand the buyer s requirements and demonstrate alignment and competence to supply 3 Procurement process Detailed matching of suppliers products and services to the buyer s requirement. Planning for contract delivery of those requirements Communicate to make sure expectations in terms of the requirements are understood and that there are clear and formalised terms of engagement. Manage the relationship and interfaces appropriately Prepare for contract delivery and the contractual commitment to supply the buyer s requirements based on agreed terms and shared expectations. Implement appropriate processes to ensure compliance 4 Contract delivery On-going monitoring and management of progress towards required outcome Monitor and manage supplier relationship to ensure successful outcome Maintain compliant performance and fulfil commitment, whilst providing feedback to buyer 5 Post contract review Lessons learnt from experience to enable continuous improvement To review, consider, record and share lessons learnt To review, consider, record and share lessons learnt 39

42 9 Appendix Other arrangements Sentinel Track Worker Safety ID and Competence Scheme Procurement Process Figure 1 Typical mainline rail industry procurement process The Sentinel scheme comprises two distinct, but interdependent, Strategy Implementation Management & Control components: Demand & Requirements Supplier Assurance Framework Management of the computerised records of individual training/competencies andstage the 2production, distribution and Stage 3 Stage 1 Supplier Selection Contract Management Supplier control of associated competency cards; this is known as the Qualification National Competency Control Agency (NCCA). Linkup Plan-Assure In-House In-House In-House of licensed training Accreditation and assessment providers selecting right ACOP/1003 UTD, FTC, initial, entry level, for the job assessment (managed byofachilles supplier Information Limited).NRCL, RISAS, IRIS competence & capability consistent management & effective control Most of Network Rail s contractors, sub-contractors and labour agencies that access Network Rail managed infrastructure (NRMI) and work on or near the line are mandated to use the Initial Sentinel competency card identification scheme. However, On-going arrangements that enable temporary access to be granted are available using Track Visitor Permits (TVP). e inside front and rear covers, C) / Paul Bigland. More information is available from: Network Rail Principal Contractor Licensing RAIL INDUSTRY SUPPLIER QUALIFICATION AND ASSURANCE GUIDANCE Where Network Rail appoints suppliers to act as Principal Contractor in an environment that may import risk to the managed infrastructure, suppliers must comply with Principal Contractor Licensing requirements. Principal Contractors must be suitably Qualified through the Link-up Qualification Scheme. More information is available from: Network Rail Plant Operating Company Licensing Where Network Rail appoints suppliers to operate Rail Plant within Engineering Possessions, suppliers must comply with Plant Operating Company Licensing requirements. Plant Operators must be suitably Qualified through the Link-up Qualification Scheme. ND ASSURANCE 40 GUIDANCE 19 More information is available from: Stage 4 Supplier Performance In-House analyse performance & give feedback Exit

43 Network Rail Product Acceptance Network Rail standard NR/L2/EBM/029 mandates the process for the acceptance of new or modified products and change of application of, materials, equipment, and systems; Road- Rail Vehicles/attachments and Rail-Mounted Maintenance Machines, On-Track Machines, road plant and Portable and Transportable Work Equipment that could affect or interact with the infrastructure. Further information is available from: co.uk/aspx/3262.aspx, where a product acceptance application form can be downloaded if required. Users of equipment on NRMI should only use accepted equipment. Network Rail safety documentation specifies that users utilise the Parts and Drawings System (PADS) as the catalogue of approved parts. The link to the web based PADS site is 41

44 About RSSB RSSB is a member-driven organisation, owned by the rail industry. Its membership includes Network Rail, train and freight operating companies as well as rolling stock companies and suppliers. As a natural place for the industry to build consensus, and being independent of any one company, RSSB has become a hub for groups containing representatives from across the breadth of the industry including the Supplier Assurance Sponsor Group. The company is limited by guarantee and is governed by its members, and a cross-industry board that includes independent directors and observers from the Department for Transport (DfT) and Office of Rail Regulation (ORR). RSSB provides knowledge, analysis, and powerful information and risk management tools across a whole range of subject areas. RSSB s unique selling point here is that it represents an efficient and cost-effective means for the industry to research, develop and problem-solve whilst retaining complete ownership and direction of the products on its behalf. This means the industry makes cost and time savings, and holds accessible knowledge. About the rail industry R&D programme The rail industry s research and development programme is managed by RSSB and funded primarily by Department for Transport. Research is generally proposed by RSSB members, and it can be undertaken in any area that supports the improved performance of the GB railway system. It focuses on industrywide research that no individual company or sector of the industry can address on its own. 42

45 43

46

47

48 RSSB Block 2 Angel Square 1 Torrens Street London EC1V 1NY