Agenda item

(Item 3 – Report by Director, Kent Highway Services)

(Prior to consideration of the report Members received a presentation from Ian Newiss, Director of Operations, Jacobs)

(Following a question and answer session, the Chairman thanked Mr Newiss for a very informative presentation)

(1)       On 4 December 2006 the final version of the Paper “Kent Highway Services – A 21^st Century Service’ was approved unanimously by Cabinet and fully endorsed by Paul Carter and Peter Gilroy.  The paper described why it was desirable for Kent Highway Services to operate from two divisions rather than three.  The optimisation of accommodation would free up capital funding to reinvest in the service, to fund new technology to drive efficiencies, reduce annual overhead costs and improve customer satisfaction. The paper gave more detail of a technology enabled service.

(2)       All local authorities were being placed under increasing pressure, including financial scrutiny, to make the best use of available resources in delivering their services to the public.  A well-managed highway network was a core component of the services and the highway asset was probably the most valuable asset that many local authorities maintained.

(3)       KCC only knew in general terms the size and condition of the highway asset since the asset registers were prepared back in the 1980’s and 1990’s and very little updating had taken place since.  At best KCC could only suggest investment levels necessary to maintain the asset and offset depreciation. There was an absence of co-ordinated forward works programmes that could save costs and minimise disruption to the travelling public. The asset records were held in disparate databases that relied on manual input.  It was not currently possible to fully record inspection regimes and maintenance operations and therefore the Council was exposed to risks, including corporate manslaughter charges.

(4)       There was a varying degree of sophistication with the use of technology across the KHS Alliance partners. Ringway and Jacobs maintained quality business management systems and had invested in document management.  TSUK made use of innovative technology in intelligent traffic systems.  In KCC the business procedures were not consistent, the technology was not integrated and therefore none of the systems talked to each other. Staff were deprived of the basic tools to deliver a 21^st Century Service with a significant impact on efficiency.

(5)       The vision was to create systems that all the Alliance wanted to use because they were easy to navigate, bring efficiencies and add value to the service. The systems would have the following attributes:-

·                    One shared Alliance system with single entry point to current, accurate information updated in real time

·                    A system that informed the public and others, managed expectations and improved the reputation of KHS

·                    A system that was valued by staff and supported them in delivering a high quality service, supported the culture and drove innovation, improvement and efficiency

·                    Delivery of measurable benefits through self auditing performance measurement

·                    Clear accountability for workflow, information, budget management and allowed us to meet all legislative obligations.

(6)       Technology requirements could be split into two clearly defined work streams:-

(a)       Network Management tools designed to give a single point data source that met the Alliance business needs:-

·                    It would be an integrated database containing all of the asset information, inspection and survey results, works programmes, and other records held globally against the road network. The data would be stored centrally with robust system architecture but which could be maintained by remote specialist teams.

·                    It would consist of a single set of core data that would instantaneously update all relevant datasets using wherever practical mobile technology, supporting all parts of the service from the Contact Centre to the Divisional and other Alliance offices.

·                    The core business processes would be standardised to ensure efficiencies but specialisms would also be available, such as Roadworks, Street Lighting, Arboriculture and Highways maintenance applications. 

·                    There would be end to end work flow management. This would ensure that defects reported to the contact centre would automatically initiate a response by an inspector or maintenance team to minimise the report to fix times. Mobile technology would provide accurate feedback information.

·                    There would be links to inform the public where the works were planned and we would be able to co-ordinate the works with the utilities. The links would include real time information from the Kent Traffic Management Centre to help us plan the efficient operation of the highway network.

·                    The system would automatically raise works orders, capture actual costs and provide reports to Corporate Finance. It would also have the ability to provide personally tailored performance indicators to  KHS users.

(b)       Business Management tools would ensure that the day to day business could be operated effectively, efficiently and consistently with the minimum number of touch points in any delivery process. Required actions would be notified automatically and progress monitored and reported.

(7)       The processes would ensure compliance with Alliance Contracts, Legal requirements, Health and Safety, Recruitment, Training and Employment policies. They would assist with Performance Management and Risk Assessment.  New technology would allow knowledge and Best Practice to be disseminated across the Alliance and would include:-

·                    Policies Procedures and Guidance notes

·                    Corporate Information and branding

·                    Technical Indices

·                    Human Resource Information

·                    Document Management

·                    Communications and information cascades.

(8)       An essential ingredient in raising overall performance levels would be the adoption, wherever appropriate, of common systems and standards across the Alliance. This would be achieved by designing the relevant elements of the systems to meet the nationally recognised standards in the fields of Quality, Environment and Health and Safety (i.e. ISO 9001,14001,18001). The procedures and processes of all parties would be built into an overarching system certified by an external accreditation body. A fully disciplined approach to applying the systems would lead to more consistency, less waste, less duplication, better use of resources and overall cost savings.  It would be the ‘single source of truth’ for all necessary management information to enable the Alliance Board to monitor and improve performance of the Alliance in managing the highway asset.

(9)       KHS were confident that the benefits would be:-

·                    Faster response to, and resolution of, fault reports.

·                    25% reduction in calls to the Contact Centre by increasing customer access to information and fault reporting through the KCC website and by cutting the number of repeat calls.

·                    A reduction in incidents which lead to insurance claims by between 5 and 10% through improved maintenance management.

·                    Streamlined processes enabled by technology from start to finish, integrating client, consultant and contractor leading to a 10 to 15% saving in staff time across the KHS Alliance.

·                    Reduction in administration through an integrated business and asset management system releasing staff time to focus on improving customer satisfaction.

·                    Increased staff motivation, better career prospects, greater job satisfaction and flexibility, and a workforce plan that was sustainable against the challenges of an ageing workforce and industry competition.

(10)     KHS had been reviewing how it delivered all operational aspects and the conclusion to this work was due early in 2007.  KHS must take the output from the review and implement it.  But only with a significant investment in technology would KHS be able to deliver the service that stakeholders and the public wanted, and that staff were proud to provide. 

(11)     The Board noted the report.