Transcript DE CORPORATE PLAN 2003 -2008

Estate Performance Measurement System
(The Value For Money Model)
Defence Estates
• Our Mission is to:
Deliver Estate Solutions to meet Defence needs
• Our Vision is to:
To provide an estate of the right size and quality,
which is managed and developed effectively in line
with acknowledged best practice, and is sensitive to
social and environmental considerations
What Are We Managing ?
The Defence Estate
• 243,000 hectares - 1% of UK
• 160,000 hectares of rural land
• 4000 sites, 65,000 buildings and structures plus
71,000 Married Quarters
• Substantial environmental and built heritage
– 800 SSSI and 688 Listed properties
• Book value £21Bn
• Annual expenditure £1.5 - £2 Bn
• The single most diverse estate in the UK
Why have EPMS ?
• Prior to 2003 MOD delivered estate services via a large number
of disconnected contracts.
• These were rationalised into 5 Regional Prime Contracts let
over a 2 year period. The aim of Prime Contracting is to achieve
30% ‘Through Life’ Value for Money efficiency improvements by
grouping delivery.
• The Contracts are with different contractors and cover the UK
divided into 5 Regions as follows:
Scotland, Central, South West, South East and, East
• Other Prime Contracts let to cover the Overseas Estate, Water
and Waste Water Services, Defence Training Estate (2004) and
Housing maintenance (2006)
Which Car is better Value For Money?
Ford Focus
BMW 3 Series
The same for less...
VFM
05/06
06/07
07/08
08/09
09/10
Contract Life
10/11
11/12
12/13
More for the same...
VFM
Cost
05/06
06/07
07/08
08/09
09/10
Contract Life
10/11
11/12
12/13
More for less...
05/06
06/07
07/08
08/09
09/10
Contract Life
10/11
11/12
12/13
More for less...
VFM
05/06
06/07
07/08
08/09
09/10
Contract Life
10/11
11/12
12/13
Baseline
Background
• VFM in terms of 3 E’s
• Efficiency
• Effectiveness
• Economy
• NAO advised DE approach ‘in right direction’. Now
confirmed as best practice by this year’s NAO audit.
• Recognised by Industry as ‘Best Practice’ approach
• Constructing Excellence looking to adopt as
demonstration project
VFM Model
• Developed with support from Industry Specialists
• 6 inter-related Key Indicators (Endorsed by Customer
Estate Organisation’s)
• Based on Smart Acquisition Principles
• Data capture designed to be automatic from the
Estate Information Systems (EIS)
The EPMS Key Performance Indicators
EPMS consists of 6 Key Performance Indicators as
follows:
KPI 1. Estate Condition
KPI 2. Programme Effectiveness
KPI 3. Efficiency
KPI 4. Customer Satisfaction
KPI 5. Safety
KPI 6. Sustainability
Proportion of assets at
Target Condition
Variance from Target
Condition
Fitness For Purpose
Asset Utilisation
Condition Improvement
Customer Satisfaction
Customer Complaints
Collaborative Working
Deliver agreed funded
Core Services programme
Output efficiency
Deliver agreed funded
Core Works programme
Maintenance Costs
Deliver agreed funded
MNW programme
Utilities Costs
Deliver agreed funded
Injections programme
Overheads
Achievement of
response times
H&S enforcement
Notices served
Reportable incidents /
100000 employees
Assets meeting
Statutory Compliance
DE SHEF audit A
standard achieved
Reportable
environmental incidents
SSI’s in favourable
condition
Energy consumption
C02 emissions /
Employee
Contractor audit
standard achieved
EPMS Performance Framework
What is EPMS?
• EPMS has been designed to show whether or not DE
has achieved its 30% through life value for money
efficiencies through the overall score derived from
performance against each of the KPIs.
• To do this it has been necessary to establish the
component reporting sub systems that provide the
detailed information to feed the KPIs within EPMS.
• It has taken some 2 years to achieve this and work
remains ongoing.
What does EPMS look like?
• The following slide shows the systems from which
EPMS will draw data.
• Some are ORACLE based others are MS based.
• Data will initially be largely drawn manually but it is
expected that EPMS will in the long-term draw data
automatically from ‘expert’ systems such as:
– Project Programme Management (PPM),
– Assets Management (EPT), and
– Environmental Management (DREAM) Systems
EPT
MIS
PPM
SHEF
11i
DREAM
EPT Key Elements
•
Single Physical Asset Condition Grading Methodology
–
•
Integrated Estate Management Plans (IEMP)
–
•
Single system of assessing physical asset condition to be applied across the
MOD estate
A plan for the forward maintenance of an MOD establishment which takes into
account:
• Strategic Purpose
• Current Asset Condition
• Target Condition
• Asset Importance
• Functional Priority
• Sustainability
• Investment Planning
• Wider Initiatives
Target Condition
–
A specified level of condition for an asset which is agreed by the Customer,
DE and Prime Contractor and used to gauge performance
Target Condition
Target
Condition
RPC Scotland
2003 Baseline
No Assets
Current
-10 -9 -8 -7 -6 -5 -4 -3 -2
-1 0 +1 +2 +3 +4 +5 +6 +7 +8 +9 +10
Variation from Target Condition
Where are today?
• Project Manager appointed in Jan 07.
• User Requirement Document finalised in March 07
and Programme Board agreement given to
acquisition of a Commercial Off The Shelf (COTS)
given.
• Competition run in May/June 07. 20 tenderers invited
using OGC Catlist.
• 6 responses received.
• Two down selected for clarification
• One selected (Performance Soft)
Where will we be in 3 months time?
• Super User training completed 3 – 5 Sept 07
• Initial Operating Capability by end Sept 07
• Users trained by end November 07 including ‘Train
the Trainers’.
• Live data from supporting expert systems loaded for
at least 5 of the Regional Prime Contracts in at least
2 if not 3 of the KPIs.
• Ongoing RPC assessment programme completed by
mid Jan 07.
Key Issues over the next 3 months.
• Coherency of data from expert systems.
• Training to support roll out and ongoing assessment
programme.
• Communications to manage the change that EPMS
will bring.
• Avoiding Mission creep. Performance Soft is a very
powerful tool and we have aspirations as to where we
can go after EPMS deployment is complete.
• But we need to build solid foundations before the
walls go up and the roof goes on!!
EPMS – THE FINAL SLIDE
Any Questions?