The HA Lean Deployment Strategy by xyo14123

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									The HA Lean Deployment Strategy

         Derek Drysdale
         HA Lean Division
     The Highways Agency and Lean
                    Benchmarking           Process

             Funding and cost prediction      Waste

VM            Supply Chain Strategy

               Roads Programme

               Transport Strategy
    HA Lean Division

• Lean Deployment Team established 1st
•   Endorsed by HA board 18th March
•   Division headed by Derek Drysdale
•   Targets: Managed Motorway, traditional
    widening, Maintenance schemes
•   Options, Development and Construction
    HA Lean Objectives
•   Delivery of increased Value for Money to road users
•   Realisation of auditable and tangible benefits in terms of
    cost, time and quality
•   Delivery of capability across the Highways Community
•   Delivery of measurable efficiency improvements
•   Significant cultural shift towards continuous
•   Development of an industry standard for Lean
•   Generation of a talent pipeline
•   Evolution of the Agency to become a more agile and
    responsive organisation
HA Lean Deployment Office

                    • Full-time Process Improvement
                    • Specific area or functional area of the
                      organisation to look after
                    • Working in tandem with the process
                      owners in order to identify and capture
                      improvement project opportunities
                    • Regular tracking and reviewing
                    • Regular coaching & mentoring of PILs
                    • Delivery of ongoing training

                    • Full-time Process Improvement delivery
                    • Responsible for delivering Process
                      Improvement projects
                    • Will lead teams and facilitate workshops
Project delivery and support
 structure is fully scalable

        • Technical Managers
        • Full-time HA employees             Technical Manager
        • Project support and guidance             x 33%
          for 3 x PIL’s
   • Process Improvement Leaders:
                                           Process Improvement
   • Full-time HA employees
   • 4x Projects/year @ £500k                    Leader x 1       Projects x 16
• Project Leaders:                                        Projects x 16
• Recruited from Supply Chain or
                                                            Projects x 16
                                                  Projects x x
                                             Project Leaders 163
  Business Function                                 Projects x 16
• 12 x Projects/year @ £150K
                       £150k                Projects x 16

                                   Projects x 16       5 -10% savings

                               E.G £100m Scheme, MAC, Dept, etc
       Deployment Strategy – 3 year overview

                 2009-10                             2010-11                                   2011-12

                                                                         Programme Management:
  Office         Strategy Initial Deployment                         Training, Project Support, Project Identification,
                                                                     Progress Reporting,
                                                                     Benefits Tracking and Planning

Major Projects            Phase 1: Initial Scheme Identified
Focus Area 1      1 Workgroup Deployed (based on model i.e. £100m)

                          Phase 2: Further Workgroups Deployed (based on model i.e. £100m)

Major Projects                                                     Phase 3: Initial Scheme Identified
Focus Area 2                                               1 Workgroup Deployed (based on model i.e. £100m)

                                                                     Phase 4: All available Workgroups deployed

                                                                               Phase 5: Initial Focus Area/Function Identified
                                                                            1 Workgroup Deployed (based on model i.e. £100m)

                                                                               Phase 4: All available Workgroups deployed
•   Pace of change
•   Supply chain engagement
•   Clearly defined expectations
•   Cultural Change in HA and Supply chain
•   Contractual Mechanisms (Performance and audit)
•   Self funding ability
•   Resources not committed by HA/Supply chain
•   Competitive barriers to knowledge sharing
•   Government spending in two years time
•   Knowledge transfer and best practice adopted
Value and the Highways Agency

       Andrew Wingrove
       HA Lean Division
The central idea of Lean is to raise
the proportion of value
• Proportion of wasteful activity goes down

• Proportion of value-adding activity goes up
 This raises the question

What does value mean to the Highways

Answering this question will help us
 determine what activities are the most
Value to the Highways Agency is a
complex notion
It can be said to comprise all the
   following, and more:
Our aim is “Safe roads, Reliable journeys,
Informed travellers” and all of our work is
framed around delivery against this aim.
Our Yearly Business Plans provide a
 snapshot of what Value may mean to
 the Highways Agency

 …. and how we will deliver it.
Key Performance indicators from
the 2008/09 Business Plan
“We will measure our performance in the following key areas:
• Reliability – implement a programme of delivery actions that tackle
unreliable journeys on the strategic road network
• Delivery of major projects – deliver to time and budget the
programme of major schemes on the strategic road network
• Road Safety – deliver the Highways Agency‟s agreed proportion of the
national road casualty reduction target
• Maintenance – maintain the strategic road network in a safe and
reliable condition and deliver value for money
• Environment – mitigate the potentially adverse impact of strategic
roads and take opportunities to enhance the environment taking into
account value for money
• Customer Satisfaction – deliver a high level of road user satisfaction
• Efficiency – deliver the Highways Agency‟s contribution to the
Department for Transport‟s efficiency target ”
2009/10 Business Plan: Objectives
“Our prime objective         “We also have four
  is: To deliver a high        enabling objectives:
  quality service to all
  our customers by:          • To ensure more effective
                                delivery through better
• Reducing congestion and       working relationships.
   improving reliability.    • To implement best practice
                                and innovative solutions to
• Improving road safety.        improve service now and in
                                the future.
• Respecting the
   environment.              • To be a good employer.
• Seeking and responding to • To be an efficient agency with
   feedback from our           effective business processes
   customers.”                 and resource management
As new priorities appear,
… value achieves a broader definition
• 2007/08 Business Plan: JTR targets
(journey time reliability)
• 2008/09 Business Plan: Sustainability
• 2009-11 Fiscal Stimulus (developing the
   network to support commercial capability)
• Beyond 2011 – longer term economic outlook
And sometimes these differing aspects
       of value can conflict.

EXAMPLE: a conventional widening scheme
Rather than closing one lane to create
 workspace, all existing lanes are kept open.
Work is undertaken on the hard shoulder and
 part of the verge.
Aspects of value promoted:

• Journey Time Reliability
• Health and Safety (road user)
• Sustainability
   But potentially at the expense of

• Health and Safety (worker)
• Buildability
• Productivity
What value for money doesn’t
 - Cutting cost for the sake of it
(i.e. low quality, low cost)

Nor does it mean
- Pursuing one aspect of value (e.g.
  durability) regardless of cost
We held a Portfolio Planning Meeting to
 discuss the „Improving Value for Money‟
 Research and Development portfolio
         (30th March, HA Manchester Office)

One clear workstream which arose was:
       Defining Value for Money
    Suggestions which were raised on
    the day
• HA definition of value be compatible with Value
•   Interface with the HA Value Manual
•   Approach value from a long term perspective and
    consider whole life costs
•   Look at how DfT defines value, and at the competing
    claims of e.g. new build vs. maintenance, and road vs rail
    vs other
•   Understand how road users define value, what value
    might mean to differing types of road user
•   View the positive effects of value in relation to a wider
    society beyond the road user
                Flow and Evenness:
                Traffic Management
Some ways in which the HA promotes an even traffic

• Provision of extra lanes through widening

• Providing traffic information to road users so that they can plan
   ahead and avoid congested routes

• Responding quickly to accidents on the network

• Encouraging steady progress at reduced speeds instead of
   dangerous „stop start‟ movement on Managed Motorway and on
   the M25
Delivering value within
•   Political
•   Statutory
•   Environmental
•   Capital
•   Resource

… endangers smoothness of delivery

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