Project Development & Delivery Supporting Document

Project Development

& Delivery Supporting Document

Our ambition is to be the best rail infrastructure project delivery

organisation in the UK

Introduction

To achieve the vision of delivering more capacity, moving more passengers faster, more reliably and more safely than ever will require a major capital investment programme. This programme will need to be delivered whilst demonstrating increased levels of value for money, and minimizing the impact on the running of the operational railway. We will build on the successful completion in CP4 of a significant portfolio of works, including Thameslink KO1, Kings Cross Station, FTN/GSMR, and major track renewals and

signaling upgrades. However this programme will require us to further improve our capability to effectively and efficiently design, develop, integrate and deliver major projects, programmes and renewals.

It will require an innovative approach to delivery, and earlier and stronger collaboration with our supply chain, and to change our approach to the specification and packaging of projects.

What we have done so far?

Last year we embarked on an ambitious change programme to create an organisation that can provide an effective and efficient customer focused delivery capability and provide outstanding value.

We revised our capital project organisation by establishing customer-focused internal project delivery business units in the form of regional organisations matched to routes. We have retained national delivery teams and programmes where there was value in keeping specialist skills and a pan route focus:

Regions National Programmes

Western & Wales (including Crossrail) Track renewals

Southern Signalling Central Thameslink Scotland and the North East FTN/GSMR

We introduced a ‘client’ structure as the first step in creating a full client capability We created a Network Rail International Consultancy business to enable the sale of consultancy services covering the full range of Network Rail’s capabilities.

We launched a series of pilot project alliances which will help inform and test or our revised customer and supply chain engagement.

We are working to create

A further devolved organisation with clear interfaces both with the Network Rail client

organisation and the central Network Rail business. Transparency over costs and value adding services will have been achieved.

A ‘client’ capability enabling the effective development and definition of requirements and work aggregation to support efficient delivery.

A simplified but robust operating model that delivers:

Effective governance and assurance

Improved project delivery

Improved Efficiency

Improved People Capability

Key Initiatives

Track Delivery Efficiency programme

Introduction of a new Quality Management framework

Simplification of systems and processes

A comprehensive programme of supplier engagement events

10 point people capability workstream

Change the Business

DIME Programme

The DIME Programme was commenced in 2011 with its prime objective being to demonstrate and deliver Value for Money across the rail capital programme, seeking operational cost reductions within the delivery organisations to support the efficient delivery within CP5.

The objectives of DIME are to:

Create an internal client who defines what they want

Re-structure the internal projects delivery business in order to become more market competitive

Enable the internal projects delivery business to compete for non-NR work

The strategy to achieve this will be to:

Create a client capability in each Route who produce clear output requirements

Commercialise the relationship between client and deliverer

Align deliverer with the Routes

Achieve earlier market engagement and greater supply chain collaboration

Enable a simple, lean and agile deliverer structure

The DIME Programme is split into four phases:

Phase 1 Strategic Approval [completed]

Phase 2 Programme Validation and Development [completed]

Phase 3 Programme Delivery [completed]

Phase 4 Programme Implementation and further changes [In Progress]

By April 2012, DIME Phase 3 delivered the following:

A revised capital project delivery framework which recognises devolution through the establishment of customer-focused internal project delivery organisations in the form of Regional organisations matched to routes.

A ‘client’ organisation structure ready to support the next stage of development in phase 4.

An International Network Rail Consultancy business to enable the sale of consultancy services covering the full range of Network Rail’s capabilities including Strategic Planning, Asset Management, Operations and Maintenance as well as infrastructure Projects. .

A series of Pilot projects which will help inform and test or our revised customer and supply chain engagement approaches, assuring capability improvements.

DIME Phase 4 will deliver by the start of CP5:

 A further devolved organisation with clear interfaces both with the Network Rail client organisation and the central Network Rail business, achieving transparency over costs and value adding services

 A ‘client’ capability within the Route organisations, enabling the effective development and definition of requirements and work aggregation to support efficient delivery.

 A simplified but robust operating model that delivers:

– Effective governance & assurance

– Improved Project Delivery

– Improved Efficiency

DIME Phase 4 Approach & Outcomes

DIME Phase 4 is formed and builds on the Phase 3 deliverables achieved in April 2012 and seeks to deliver the following outcomes:

Services:

Engage with our clients earlier in the lifecycle enabling greater innovation opportunity

Leverage the IP Unique Selling Points (USPs) as well as develop a portfolio of services to be available to the marketplace

Deliver and demonstrate whole life cost design solutions

Engage with our supply chain earlier in the lifecycle encouraging integrated partnerships and goals

Enable vertical alignment across our supply chain with more focus on the 2nd tier

Reduce cost of, and improve the value for money from services provided by NRIL to IP

Generate flexible business models enabling IP to enter and exit varying markets smoothly

Demonstrate we are upper quartile performers compared to our peers

Processes:

Create an integrated simplified management system across IP

Seek ISO 9001, 14001, 18001 and BS11000 accreditation

A clear focus on creating simplified, flexible and “fit for purpose” processes/systems with clear ownership and which effectively interface with our clients

Embed knowledge management within IP enabling information re-use and best practice across IP

Effective governance and compliance enabling staff greater ability to make timely decisions

Improve and simplify performance management information and reporting

A focus on “work delivered” forecasting to enable accurate in-year cost and profit projections

Transparent arms length engagement with NRIL

People:

A customer focussed business encouraging listening, flexibility, responsiveness and demonstrable VFM

Live the NR values of honesty, openness, courage and service as well as being a partnering orientated business

A strong focus on developing our staff so they have broader skills base whilst maintaining specialist USP skills

Staff more receptive and adaptable to change

Improved staff performance management

Highly engaged and motivated staff

Organisation:

Be a P&L Business that is geographically structured with national and major programmes

A flexible but leaner structure enabling staff to move easily between businesses and simple integration of partners into the business

Seek industry awards and be proactive in maximising positive press coverage of IP



Track Delivery Efficiency Programme

The Track efficiency programme has two areas of primary focus, these being Safety and Deliverability. The safety focus is on evaluation and development of the new modes of working primarily aimed at supporting an effective reduction in access requirements, whilst deliverability concentrates on technologies and approaches for Plain Line, Switches and Crossings and

Deliver the Outcomes

Regional Performance

Current delivery performance can be used as a barometer of future success for CP5. To that end the following sections outline the key achievements to date of the new Regional & Programme organisations established in April 2012.

Key Achievements – Scotland & NE Region

c£55m Finsbury Park to Alexandra Palace re-modelling project

The introduction of Alliance contracting on the upgrading of the GN/GE diversionary Route around the ECML. We are also completing the significant civil works as part of the new c£45m Hitchin Grade separation project on the ECML.

In Scotland, we are continuing to make good progress on the Edinburgh Waverley station renewals programme including c£12m re-roofing, completion of c£16m “Steps” project providing access to the lower levels by the Balmoral Hotel.

We have recently been awarded the Borders Rail project to create a new Railway between Edinburgh and Tweedbank. At the same time we are working closely with the Scotland Route and Transport Scotland to provide an efficient solution to the £650m Edinburgh to Glasgow Improvements Programme (EGIP)

Hitchin Grade Separation – installation of beams across the ECML

Key Achievements – Western & Wales

Reading Station bridge slide over live railway, moving 12 months ahead of baseline schedule

Commissioning Nuneaton North Chord freight link

Award of £2.17bn third party work with Crossrail Limited

Early works at Acton and Stockley completed

High Output OLE system under construction and operator appointed under ECI

Major Early Contractor projects underway for Gowerton, Swindon to Kemble, Energlyn Station, North/South Wales journey time and Freight train lengthening using third party funding

Major bridge slide completed across river Loughor in Wales

Regional Performance

Key Achievements – Southern Region

Waterloo Balcony - A new retail balcony at Waterloo was delivered on time and under budget. Officially opened in July, this scheme has provided eighteen new shops and restaurants, eased overcrowding, and improved access to Waterloo East station.

Olympics Infrastructure - Eight Access for All projects were delivered in advance of the Games and platform extensions at Boxhill, Leatherhead and Ashstead were finished ahead of schedule for the men’s Olympic cycle road race. In addition, a total of forty-three bridges and associated structures were repainted across the region.

East London Line extension Phase 2 - A new 1.3km link was completed as part of the London Overground orbital network.

NSIP Projects - Numerous station improvement projects have been delivered including Southampton Central, Network Rail’s 250th NSIP project which was opened by the Transport Secretary. The station was completely refurbished including a new art deco style frontage, an enlarged booking hall and waiting room, state-of-the-art information screens and an improved drop-off area.

Route Support – Many projects have been undertaken at short notice or in an accelerated time frame to support route priorities. Examples include junction lighting between London Bridge & Cannon St and major embankment stabilisation works at Stonegate and Salfords following landslides.

Key Achievements – Central Region

Completion of Liverpool Central Station.

Key programme milestones completed on the electrification of Manchester to Liverpool.

Commencement of Manchester Victoria Roof.

Introduction of novel Alliance approach on the Stafford/Norton Bridge project.

Commencement of Evergreen 3 (Bicester to Oxford) in alliance with Chiltern Railways.

Programme Performance

Key Achievements – Track

More mechanised delivery of PL track than in previous years with 5 high output systems (40% of PL). Enabled adjacent line opening for both freight and passenger trains, higher speed hand back (80mph+) and improved track quality on West Coast, East Coast and East Midland Routes.

More modular S&C delivery (60%+) using state of the art Tilting Wagons and cranes. Delivered our first 2 mid-week S&C sites in mid-week 8hr possessions.

A number of technology and innovation trials under way to increase efficiency following Benchmarking visits to Europe and InnoTrans. e.g. highly automated, mechanised and safer S&C refurbishment, signalling plug & commission & high output on 3rd rail routes.

Key Achievements – Thames Link Programme

Commissioned KO1 Signalling in the core (final phase)

Final KO1 protocol milestone achieved – Easter 2012

KO1 new timetable commenced on schedule – May 2012

Achieved full operational functionality at Farringdon & Blackfriars prior to Olympics

London Bridge: commencement of train shed roof works

Completion of KO2 GRIP4 with estimate in line with budget. Authority paper for £1.9bn incremental authority endorsed by NRIP to November NR Board

Programme Performance

Key Achievements – FTN / GSMR Programme

Integrated Network Rail and Industry team to deliver the programme.

4910 train cab units fitted to accommodate GSM-R radios out of a total of 7,800

Installation of 15,000km of optical fibre, 3,200 communication nodes and 2,500 radio masts.

Current active operation of the GSM-R network by 16 TOC’s/FOC’s on 31% of the operational railway with a target to bring live south of the Severn/Wash by the end of December 2012

Agreements with TOCS and FOCs on G1 Network Change (NCN5) and commercial compensation terms.

Key Achievements – Signalling Programme

Delivering 12/13 to date the following commissionings

– Stourbridge to Hartlebury – East Suffolk – Water Orton – Harrogate – NASR II – Stalybridge.

1300 Signalling Equivalent Units, SEU’s delivered 12/13 to date.

TM demonstrator delivered.

Manage the Business

Central Support Organisation Performance

The central functions provide the governance, assurance and process consistency across Infrastructure Projects organisation.

Key Achievements – Finance & Commercial:

Improved IPSOS survey results with proportion of dissatisfied suppliers now below the 15% benchmark

Commercial Directors Forum

Implementation of the Fair Payment Charter

BS11000 Certification and the expansion of the collaborative working programme

Developed and implemented capital projects alliances including the development of new alliance procurement processes

Delivered collaborative awareness workshops for Band 1&2 managers in IP in order to support cultural & behavioural change

Development of the Rail Method of Measurement cost planning tool

Procurement of a new suite of Professional Services Framework Agreements to support project delivery

Key Achievements – Programme & Technical Services

Efficiency savings of £1.1m

Created the Quality Management team, framework and plan for the IP business

Mapped and identified the key business systems and begun a programme of significant rationalisation

Developed and commenced delivery of the “Total Value” systems engineering training programme.

Delivered the Project Automated reporting suite to the IP business.

Created an IP business plan to complement the SBP

Supported the DIME change programme

Central Support Organisation Performance

Key Achievements – Safety & Sustainability

Effective delivery of the Life saving Rules to the IP teams and throughout the supply chain

Delivery of the revised Close Call Reporting System

Delivery of highly respected CDM and Behavioural Safety training courses, including external service provision

Support to the Green Construction Board on carbon reduction in infrastructure

Delivery of pan industry environmental forums

Delivery of several high profile safety communication campaigns through the safety trucks including occupational health and linkage with Cancer Research

Key Achievements – Human Resources

Launched a pilot Inclusive Leadership Programme;

Supported 220 individuals who have left IP through the DIME process;

Completed the first comprehensive Talent assessment across the business using the Korn Ferry nine-box grid process;

Recruited 420 new staff into the business ;

Completed the transfer of Track business into IP;

Supported the launch of the new NR Consultancy business;

Consulted unions and staff on upcoming relocation of central staff to MK:Quadrant;

Provided ongoing support to employees and Managers through the devolution process, as we separated into Regions and programmes.