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Zürich 27 May 2011

EFRTC Policy & Research Committee Market Strategy Report. Jeremy Candfield Chairman. Zürich 27 May 2011. Introduction. Spoke in Florence on the continuing delay in completing the report of workstream A on Market Strategies

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Zürich 27 May 2011

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  1. EFRTC Policy & Research Committee Market Strategy Report Jeremy Candfield Chairman Zürich 27 May 2011

  2. Introduction • Spoke in Florence on the continuing delay in completing the report of workstream A on Market Strategies • Intended to be the first of seven studies under a joint initiative of EIM/CER/EFRTC following-up Innotrack work: EFRTC GM, Zürich 27.05.2011

  3. Post-Innotrack Workstreams: A reminder EFRTC GM, Zürich 27.05.2011

  4. Introduction • Pending completion of A the Committee has not met. • But: • - the report has now reached Final Draft stage • - is being circulated by EIM to the WG for final comment and then publication • - agreed with EIM will discuss Workstream B – Long Term Funding – and Workstream E – Contracting Strategy – once A is completed • - if need be we may take E forward by ourselves • Patience is a virtue ....(but see later!) EFRTC GM, Zürich 27.05.2011

  5. The Study • Participants • Some Survey Conclusions • Case Studies • European Landscape • Result EFRTC GM, Zürich 27.05.2011

  6. Participants EFRTC GM, Zürich 27.05.2011

  7. Some Survey Conclusions • insourcing/outsourcing – decision-making criteria • value-adding behaviours • value-destroying behaviours EFRTC GM, Zürich 27.05.2011

  8. Part 1: decision-making criteria EFRTC GM, Zürich 27.05.2011

  9. In Order of Importance: EFRTC GM, Zürich 27.05.2011

  10. Survey of Value-Adding Behaviours – Most Important: • good safety and environmental culture at all levels • clarity and simplicity of technical, legislative and safety standards required to be met in delivering the works • collaboration and concise, clear, timely communication • work is delivered to the agreed quality first time EFRTC GM, Zürich 27.05.2011

  11. Survey of Value-Destroying Behaviours • Lack of clarity in scope of work to be done, frequent uncontrolled and late changes by client, specifications, standards and capacity • Poor site management or pressure to take short cuts • Short notice change to track access requirements or availability • Poor quality work requiring corrective actions and thus reducing track capacities for operators EFRTC GM, Zürich 27.05.2011

  12. Case studies • PRORAIL on process of outsourcing track maintenance in the Netherlands • RFF – examples from performance contract which may affect outsourcing in France • Network Rail system of performance assessment of contractors offers and works in GB • GB (RIA) Value Improvement Programme driving waste out of the supply chain using collaborative behaviours • Finland on collaborative process of product life cycle and performance assessment by outsourcing • Switzerland - positive experience from collaborative way of working in whole supply chain with client (from long term planning to performing the work) EFRTC GM, Zürich 27.05.2011

  13. The European Landscape • Estimates were derived, mainly by EFRTC (SG), of annual spend on track maintenance and renewal by each IM • Presented as an Appendix with further information • Approximate total £20b pa, c40% by contractors – mainly renewals. EFRTC GM, Zürich 27.05.2011

  14. Result • A guidebook for both Infrastructure Managers and Contractors to help encourage open dialogue, develop transparency, promote value-adding behaviours, and showcase good practice. • Since it was written.... EFRTC GM, Zürich 27.05.2011

  15. Post Scriptum Network Rail website since 25 March 2011: Partnering Framework for Infrastructure Works EFRTC GM, Zürich 27.05.2011

  16. Post Scriptum Network Rail website since 25 March 2011: Partnering Framework for Infrastructure Works EFRTC GM, Zürich 27.05.2011

  17. Post Scriptum Network Rail website since 25 March 2011: Partnering Framework for Infrastructure Works EFRTC GM, Zürich 27.05.2011

  18. Network Rail Partnering Framework • It is still early days • It is clear that senior management is committed • Numerous other major changes are being made simultaneously in costs, structure, contestability and much else • Will they break the Permafrost? • To be continued..... EFRTC GM, Zürich 27.05.2011

  19. Thank you

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