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8/9/2019 Bccec Cwc Slides July 2010
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Reducing Costs and Improving
Results for Refurbishments
Shaun Aldis Director of Property Services
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Context 3 Partners
£410m over 5 Year¶s (currently in year 3)
Circa 24,000 occupied properties
Scope of works: Kitchens, bathrooms,
central heating, electrical rewires, external
improvements including insulation andcombination of the above to high rise
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Challenge Shortfall in delivery £47m*
Local employment (highest in West Midlands)
High expectations: promises made
Huge mobilisation 750 employed on contractexcluding supply chain
Is there comparity between the three partners onthe triple bottom line?
What is the true cost of delivery?
Management of the day to day cost activity?
Would you spend your money this way?
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KEY PHASES OF PARTNERSHIP
PHASE 3
HIGH STRATEGIC
VALUE
PHASE 1
DELIVERY
PHASE 2
ADDED VALUE
TRUST
TIME
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What did we do?Efficiency Programme
Strategic Overview Bottom up: Think - Plan - Do
Vision for the future ~let your imagination run away
Don¶t focus too hard and predict the outcomeChristopher Chabris and Daniel Simons (1999) perception test
Avoid dramatic change
Health CheckUnderstand your base line
Sweat the details ~succession/scenario planning
Keep it real ~ challenge
Where do you need to be?
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Efficiency programme
Health Check Findings
Reasonable cost comparators
Varying costs between each partner
Varying costs from supply chain for thesame product
Component frequency replacement
Inward investment Refusal rate
Delivery model to accommodate PRADA
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Courtesy of Chartered Management Institute
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Lead from the top
Developed cash flow forecasting model
Shared outcome and cashable efficiencies
Cost/value reconciliation for each partner: OBCM, Fullsupply chain integration, KPI incentivisation
Review material specifications and guarantees
Consistency review, frequency replacement and quality
Introduced µlean¶ Improve customer satisfaction
Incentivised what matters
Efficiency programme Action
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Efficiency programmeOutcomes 20% overall savings by each CP through lessons learned
and best practice sharing across the partnership
Adoption of target cost mechanism and KPI incentivisation
on gain share, led to improvements Total TSQ¶s rose from 94% to 98%
Incentivised local employment (increase from 22% to 32%)
Rigorous application of lean techniques to reduce time inproperty (properties completed in less than 25 days moving
from 88% to 97% across partnership) Reduced number of days in property from 25 to 15
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Efficiency programmeOutcomes
Equal vigilance in reviewing the in-house structure for managing the DH programme has resulted in WHcommissioning costs running at 2.7% of total costs
within top quartile performance of 3% Partnership is applying the WH µRefusal Protocol¶
robustly and refusals are currently running at 6%
Continued Director level involvement in integratingsupply chain ³CWC UK ± keenest prices seen
nationally´ Some of efficiency savings have been absorbed by
introduction of enhanced improvement justified onbasis of reduced whole life costings e.g. rewire versuspartial rewire
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Efficiency programmeOutcomes
Following consistency review: improved scope of
survey reliability has seen more efficient delivery
being achieved with preliminaries as low as 8.8%
Materials management reviews have led to cost
reductions between 20% and 35%
Reduced snagging Improved information to tenants
Improved knowledge on stock ~no surprises
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What next?
Ice Berg Effect
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Questions
Shaun Aldis
Director of Property Services
Wolverhampton Homes
shaun.aldis@wolverhamptonhomes.org.uk
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