Asset Management in Network Rail - uic.org · Asset Management in Network Rail Turning theory into...
Transcript of Asset Management in Network Rail - uic.org · Asset Management in Network Rail Turning theory into...
Asset Management in Network RailTurning theory into practice
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3rd October 2013
Andy KirwanHead of Asset Policy and Whole Life Costing
Turning theory into practice
Outline
• Adopting a systematic approach
• How we’ve applied it to improving our asset management decisions
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management decisions
• How we resourced and organised the work
• A view on whether the benefits justify the investment
Adopting a Adopting a systematic approach
The need for a systematic approach
• Arguably the largest asset management company in the UK
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The need for a systematic approach
• Arguably the largest asset management company in the UK
• Complex and ageing infrastructure: 30,000 km of track, 29,000 bridges, 2,500 stations
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stations
• 35,000 staff (maintenance in-house)
• Devolved organisational structure (10 operating routes)
• Major capacity enhancement programme
• Challenging cost reduction targets
Who and what is involved
• Involves the whole company and external stakeholders
• It is a long term commitment – circa 10 years
• Includes some big individual projects e.g. asset register
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• Most benefits come from a larger number of smaller
incremental improvements and the removal of barriers
between business functions
• To get started we needed a common interpretation of
asset management across the company
Network Rail’s interpretation of AM
Asset management on a page
• All Network Rail’s asset management processes
• Line of sight from strategy to
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• Line of sight from strategy to implementation
• Plan–Do-Review framework
• Independent of organisational structure
• Used to assign responsibilities and accountabilities
What sort of railway do we want and how much are we prepared to pay?
Network Rail’s interpretation of AM
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What is the optimum way of maintaining, renewing and upgrading the
Network Rail’s interpretation of AM
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infrastructure?
Network Rail’s interpretation of AM
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How do we translate the national asset policies into local work plans?
Network Rail’s interpretation of AM
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What is the optimum way of delivering the work?
Network Rail’s interpretation of AM
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What resources do we need to deliver the work safely and efficiently?
How can we be sure we’re doing the right things?
Network Rail’s interpretation of AM
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things?
Are the appropriate supporting mechanisms in place?
Network Rail’s interpretation of AM
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Improving asset management decision management decision making
What is the optimum way of maintaining, renewing and upgrading the
Asset Policies
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infrastructure?
Purpose of the asset policies
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• Customers & funders
– Journey time
– Punctuality
– Capability / Capacity
– Value for money
• Delivering work
– Operating Route plans
– Suppliers
– Scheduling work
– Handback
Optimum Maintenance &
Renewal Strategy
Structure of the asset policies: designed to answer seven questions
What assets do we have?
How are they performing, what are they costing us?
How do we want them to perform in the future?
What assets do we have?
How are they performing, what are they costing us?
How do we want them to perform in the future?
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What intervention options are available?
Which regime represents the lowest whole life cost?
What are the associated work volumes, expenditures and outputs?
What are the delivery implications, uncertainties, risks?
What intervention options are available?
Which regime represents the lowest whole life cost?
What are the associated work volumes, expenditures and outputs?
What are the delivery implications, uncertainties, risks?
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Asset Policies: a major commitment
• Established a cross-functional team: strategy, engineering,
operations, maintenance, renewals, finance
• Co-located the team for three years
• Approximately 100 person years’ effort
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• Approximately 100 person years’ effort
• Asset Policy documents produced for 11 asset groups
• Also developed models, processes and a large knowledge
repository
• Underpinned £18bn component of business plan for 2014-19
Are the asset policies effective?policies effective?
Three tests of asset policy
1.Robustness test
• Will implementation of the policies deliver the required outputs in the short term (circa 5 years)?
2.Sustainability test
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2.Sustainability test
• Will continued application of the policies maintain the outputs in the long term (circa 30 years)?
3.Efficiency test
• Do the intervention regimes in the policies represent the lowest whole life cost?
Robustness test
Rail breaks
600
700
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900
1000
Nu
mb
er o
f bre
aks
in r
epo
rtin
g y
ear
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0
100
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50019
96-9
7
1998
-99
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-01
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2010
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Nu
mb
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Reduction in broken rails
Sustainability test: current position
Plain line installation profile at end 2011
12%
14%
16%
18%
Per
cen
tag
e in
stal
led
in p
erio
d
Installation dates: rail, sleepers, ballast
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0%
2%
4%
6%
8%
10%
12%
<1922 1922-1926
1927-1931
1932-1936
1937-1941
1942-1946
1947-1951
1952-1956
1957-1961
1962-1966
1967-1971
1972-1976
1977-1981
1982-1986
1987-1991
1992-1996
1997-2001
2002-2006
2007-2011
Per
cen
tag
e in
stal
led
in p
erio
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Ballast Sleeper Rail
Sustainability test: looking ahead
Rail used life fraction %
50%
55%
60%
All
Rail used life fraction %
50%
55%
60%
Criticality band 2All
Rail used life fraction %
50%
55%
60%Criticality band 2Criticality Band 4All
Rail
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30%
35%
40%
45%
50%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
30%
35%
40%
45%
50%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
30%
35%
40%
45%
50%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Rail used life fraction (%)
Efficiency test
100 year NPV costs
200,000
250,000
300,000
Renewal/ Refurbishment
• Chart shows the whole life cost of five methods for managing a track section
• Options range from ‘only maintain’ to ‘full renewal’
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0
50,000
100,000
150,000
Maintenance only Re-padding only Heavyrefurbishment
Heavy refurb +renewal
Renewal
Renewal/ RefurbishmentMaintenanceDefect RepairService Delay FinesSafety Risk Costs
Service target
• Costs include maintenance, renewal, safety and train performance
• The lowest NPV does not always represent the optimum choice
Option selected
Changing the regulator’s perception
“Network Rail has significantly reworked its policies, in line
with best practice. They show a step-change in quality and
coverage. The tools - to support its development of minimum
whole life cost asset policy - are considered to be
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whole life cost asset policy - are considered to be
comparable to or at the frontier of best practice.”
Office of Rail Regulation
Draft determination of Network Rail's outputs and funding for 2014-19
June 2013
Contributing to wider business wider business improvements
Last 10 Years: Passenger safety risk
Passenger Risk in Train Accidents
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70
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PIM
Inde
x pe
r m
illio
n tr
ain
km
Passenger Harm in Other Accidents
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60
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0
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60
2001
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2005
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2007
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2009
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2010
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2011
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PIM
Inde
x pe
r m
illio
n tr
ain
km
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10
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40
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2001/
0220
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2003/
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2005/
06200
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2007/
08200
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2009/
10201
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2011/1
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FWI/b
illio
n pa
ss jo
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Train delay minutes
NR caused delay minutes each year
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Mill
ion
tra
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elay
min
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Takeback / unexplainedTimetable planningOperationsOther external FactorsWeatherAdhesionOther infrastructureOther Non-TrackSignalling + power supplyTrain detectionPointsTrack Defects
All train delay minutesU
nexp
lain
ed
Train
Infrastructure
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0
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1999
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2001
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2003
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200
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2010
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2011
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Mill
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tra
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elay
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Track DefectsTSR's COT/GCC
Train operators
Pla
nned
External + Weather
Operations
Still a long way to go….
Priorities
• Management of ageing bridges
• Risk based
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• Risk based maintenance
• Improvements in asset information (implementation phase)
See Andrew Sharp presentation
Conclusions
• We have had a long association with asset management
• It has been technically and organisationally complex to implement
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implement
• It took a long time to gain acceptance across the company
• It is difficult to isolate the benefits directly attributable to AM but the contribution is significant and is recognised across the business
Thank youThank you