Network Rail - Asset Management Story & Reliability Improvements Sophie Smith – Associate Director, Asset Management and Maintenance, Network Rail Consulting

Asset Scale Size of the asset base Scale of expenditure 20,000 miles of track 29,000 bridges and tunnels 830 signal boxes 2,500 stations Largest private landowner Largest purchaser of electricity Third largest Telecoms network 8,200 commercial properties 7,000 level crossings 36,000 employees In CP5 (2014 – 2019), we will spend: £12,8b on replacing old assets £5,2b on maintaining the railway More than all 22 water companies combined More than all electricity distribution companies, and National Grid (UK electricity and gas transmission) combined

2003 - 2015 : A Success Story Key achievements over the last 10 years: 1 million more trains per year (c7m rather 6m) 500 million more passengers 15% more freight 91.6% train punctuality, up from 78.6% 84% passenger satisfaction 45% reduction in the cost of running the railway Efficiency savings delivered while maintaining high levels of safety, performance and investment CP5 (2014-2019) ▼18% £ Asset Management Renewals Maintenance & Operations CP4 (2009-2014) ▼20% £ Maintenance standardization Operating rationalization Technology Asset Policies RCM & RBM Workbank Planning CP3 (2004-2009) ▼27% £ In-source maintenance Tendering process Technology

What is Needed? An absolute commitment at the top level of the organization to adopt the principles of good asset management and commence the journey A reference benchmark against which to define good practice for the whole life-cycle management of assets, e.g. BSI PAS 55: 2008 or ISO 55000 A means of measuring development in asset management maturity over time against the benchmark An asset management framework that provides line of sight between high level corporate objectives and work on the ground A commitment to change and to provide the resources to make the changes: cultural, organizational, systems

Asset Management Policy The peak document in NR’s asset management system Sets out the core asset management principles that will apply to deliver its vision for the railway Commits to NR to having capabilities in asset management that are comparable with best practice in Britain by 2014 and in the world by 2019

Asset Management Strategy Provides an interpretation of the asset management policy Provides a framework for its implementation (which is aligned to PAS 55) Defines the short and long term performance requirements for the infrastructure Specifies the level of asset management maturity that Network Rail needs to demonstrate comparability with best practice

Asset Policies Asset Policies – What are they? Documents that define: The level of asset performance required by our customers and funders The frequency or timing of asset interventions The type of intervention e.g. refurbishment, renewal etc. Development underpinned by whole life cost methods and modelling tools Track Signalling Structures Earthworks Electrification & Plant Drainage Telecoms Operational Property Level Crossings Vegetation & Fencing

Developed Around Six Key Questions What assets are we responsible for, how are they configured, which ones are most critical? What condition are the assets in, how are they performing, what costs do they incur? What level of performance is required in the future? What are our options to deliver the required level of performance? Which option represents the lowest whole life cost? What will be the cost and level of output of implementing this option?

Asset Management Strategy and Objectives And the relationship with key documents in the Asset Management System

Asset Management Excellence Model (AMEM)

Network Rail’s Asset Management Framework Shows the cycle of NR’s asset management decisions from high level objectives to delivery of work on the ground Provides a simple representation of the major building blocks of asset management and the key interfaces between them Is the starting point for detailed processes and assigning responsibilities We call it our “Plan - Do - Review” framework

Primary Framework Decisions and Activities Giving you the right information to enable you to make the right decisions

Intelligent Infrastructure Strategic approach to technology, information management, and business processes that help inform ‘controlling minds’ (i.e. maintenance engineer or operating control) on the status of our infrastructure assets Train-based Infrastructure-based Plain Line Pattern Recognition (PLPR) software Ultrasonic rail flaw detection Remote Condition Monitoring Reliability Centered Maintenance

Remote Condition Monitoring - Business Process Route Control Centre – web based Alarms and Alerts Maintenance Engineers – Citrix based detailed data Maintenance Teams – informed, on time response Business process is crucial to success of RCM. We proved this by the failure of some early RCM schemes, which just implemented technology and the success of the II Programme, which delivered new processes and accompanying business change. We developed the processes with users on a pilot scheme and scaled them up to national application.

RCM - 50,000 Assets Monitored 2,000 power supplies 19,000 track circuits 14,000 points 5,500 point heaters Including: We continue to expand the system. We have a methodology for constructing a business case, which leads to fitment criteria. Not just a scatter-gun approach. We are very focussed on not just buying technology but delivering business improvement enabled by technology.

Systematic Maintenance Approach Reliability Centered Maintenance Maintenance targeted to mitigate failure modes, undertaken at a frequency to match degradation rate. RCM2 Combination of both RCMs to replace manual maintenance tasks with remotely sensed information Remote Condition Monitoring Automatic detection of degrading performance, allowing intervention before service affecting failure. 566,000 delay minutes saved per year 200,000 maintenance hours saved 40,500 assets remotely monitored Failure Modes and Effects Analysis (FMEA) Structured analysis of all the ways an asset or system may fail, based on the functions it provides. Fault Response and Reliability Management Reporting of faults aligned to FMEA giving visibility of effectiveness of maintenance. Keeps FMEA up to date with learning from the field. Good basis to support root cause analysis and reliability growth. 21% reduction in service affecting failures

Governance Railway Investment Projects (GRIP) Initiate Choose Option Design Build Close 1 Output Definition 8 Project Close Out 7 Scheme Hand back 6 Construction Testing & Commission 5 Detailed Design 4 Single Option Development 3 Option Selection 2 Feasibility

GRIP Checklists and Traceability A live plan listing products required for each stage that is signed off by the Sponsor at the commencement and completion of each stage Each Checklist must contain at least enough information to make informed governance decisions Traceability Requirements need to be traceable between the strategy, client, and system requirements to provide line of sight back to objectives

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