1. How the MAC is driving improvements and efficiency
Tony Wittering

2. Setting the scene Hybrid Traditional / Performance Based Contract
Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Setting the scene
Hybrid Traditional / Performance Based Contract
Started in contracts by geographic area – only 4 remain MA/TMCs with Area 10 due for competition as a MAC
Each normally 5 years with option to extend to 7 years

3. Setting the scene Contract with a single private sector entity
Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Setting the scene
Contract with a single private sector entity
Monitoring network and the maintenance requirements
Routine maintenance, Winter service, Emergency response
Minor improvements to an agreed limit

4. Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Setting the scene
Lump sum payment / output based- Routine maintenance, winter service, emergency response
Time and activity based payment – Monitoring network and identifying maintenance requirements
EMAC looking at Cost plus fee and bonus – minor improvements

5. Setting the scene (cont.)
Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Setting the scene (cont.)
The following slides look at some results in respect of contract performance
Taken from a study undertaken last year that has to be updated, they demonstrate a rate of improvement that is both welcome and supportive of the MAC format.
They demonstrate clear improvements in
Surfacing rates
Scheme management
Improved cost certainty

6. Surfacing HA Maintenance Community
Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Surfacing

7. Surfacing HA Maintenance Community
Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Surfacing

8. Surfacing HA Maintenance Community 15.5% Reduction on 2002/03
Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Surfacing
15.5% Reduction on 2002/03

9. Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Timecharge
The study showed how MACs have increased their output, providing a welcome indication of more ‘bangs for our bucks!’
One Area reported Time charge as a percentage of total budget was the same in 2003/04 and in 2004/05.

10. Timecharge 1 HA Maintenance Community
Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Timecharge 1

11. Timecharge 2 HA Maintenance Community
Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Timecharge 2

12. Timecharge 3 HA Maintenance Community
Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Timecharge 3

13. Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Timecharge 4 - Indexed comparison of timecharge and total net turnover over time

14. Predictability Cost and Time Predictability (APIs 6& 7).
Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Predictability
Cost and Time Predictability (APIs 6& 7).
The following slide shows the MACs having a more predictable pattern over the longer period with the application of Statistical Process Capability showing consistent processes are in place.

15. Predictability - API 6 (time) and 7 (cost)
HA Maintenance Community
Predictability - API 6 (time) and 7 (cost)

16. Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Continual improvement in early scheme delivery and in scheme management

17. Improved cost certainty and reduced risks – one Area’s data
Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
Improved cost certainty and reduced risks – one Area’s data

18. Working together to achieve Safe roads, Reliable journeys, Informed travelers for the benefit of the community
HA Maintenance Community
MAC Benefits
Implementation and use of the CAF, with the performance regime, and Area Strategy review will help close the performance circle
The MACs have provided a general improvement in performance, e.g.
Improved response to repair 24 hour defects and over a day’s saving across the board on the time taken to repair 7 day defects
Quicker response to emergency incidents
An improving RIDDOR rate
Lower percentage of the lighting stock out
Network availability improved

19. CONTINUOUS IMPROVEMENT CONTINUOUS IMPROVEMENT
Working together to achieve Safe roads, Reliable journeys, Informed travellers for the benefit of the community
HA Maintenance Community
HA Maintenance Community
Cultural Assessment Framework
Performance Framework
RESULTS
ENABLERS
Direction and Leadership
Strategies and Planning
Processes
Area Performance Indicators
Outcome measures:
Safety
People
Journey time reliability
CBPP measures
Customer satisfaction
Partnering
Environment
Resources
CONTINUOUS IMPROVEMENT
CONTINUOUS IMPROVEMENT

20. Lessons Learnt If you don’t change anything, nothing will change
HA Maintenance Community
Lessons Learnt
If you What factors have influenced the improvements, savings & efficiencies?
If you don’t change anything, nothing will change
Have had to developed an increased and ongoing understanding and knowledge of the MAC contract and its objectives
Improved operation and management of the supply chain and a major driver towards achieving Best Value

21. HA Maintenance Community
Lessons Learnt (cont.)
If you What factors have influenced the improvements, savings & efficiencies?
We have witnessed the scheme development process becoming streamlined across members of the community including;
Eliminated waste, e.g. unnecessary supervision and duplication of effort
Earlier creation of the delivery team and early client engagement
Streamlined scheme delivery process = less handoffs & interfaces
Moving towards an ECI philosophy in all areas of work
Adapted lessons from other areas of the MAC delivery team
Used the flexibility offered by the MAC contract to innovate
Moved towards standardised approach to scheme development

22. HA Maintenance Community
Lessons Learnt (cont.)
If you What factors have influenced the improvements, savings & efficiencies?
We still have value for money issues – more for less but ought we to get more?
Do we really understand how the market handles cost?
Have the lessons been learnt?

23. Best Value Forward Look
HA Maintenance Community
Forward Look
Best Value
‘Delivering business objectives at the lowest affordable cost while achieving continuous improvement’
Requires continuous improvement in economy, efficiency, and effectiveness at factors have influenced the improvements, savings & efficiencies?

24. A Vision of Best Value Service Delivery BEST VALUE Service Delivery
Working together to achieve Safe roads, Reliable journeys, Informed travellers for the benefit of the community
HA Maintenance Community
A Vision of Best Value
Physical and contractual issues or drivers of change that contribute to the delivery of BEST VALUE
Continuous improvement
(PRIDe, Papers)
Innovation
(Contract development, TRL)
Performance specifications and measurement(API, PRIDe,Annexes 10&15)
Service Delivery
Best practice
(BP working groups)
EMAC
Reliable Journeys
HATO
Whole life cost measurement
(Workshop papers, ACI, PRIDe)
Safe
Roads
Informed Travellers
Partnerships / Integrated teams (CAF, Partnering Guidance, Collaboration)
MAC
BEST VALUE
Partners MA
Environ-ment
Satisfied Customers
Market sustainability and resilience
(SCM, SC Resilience, MPP Policy)
TMC
ECI
(Effective use of Budget)
Payment mechanisms / Incentives(Guidance Notes, Contract development)
F’Works
DBFO
Service Delivery
Standards
(Performance Standards Development)
Flexibility
(Contract development)
Risk sharing
(Contract development)

25. HA Maintenance Community
Are MACs working? YES….
continually improving and being more efficient?
Some Areas showing scheme development costs are reducing year on year
Scheme delivery risks are reducing and certainty is increasing
We are delivering more for less

26. Are MACs working? but…. Pressures on lump sum costs Affordability
HA Maintenance Community
Are MACs working? but….
continually improving and being more efficient?
Pressures on lump sum costs
Affordability
We are delivering more for less – but our understanding of what we can achieve has to improve as well