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2. SBP Asset Management Services
Network Rail 1
Asset Management Services
Overview
Asset Management Services (AMS) is Network Rail’s central asset management and
engineering function. It exists to set asset policies and provide assurance; to provide essential
services to the Routes (information, energy, telecoms); and to support internal and external
customers in achieving optimum performance from the rail infrastructure. By providing these
services centrally, Network Rail gains economies of scale, as well as being able to allocate
scarce, expert resource in the most optimal way for the network. For services that are
‘networks’ by definition, such as energy and telecoms, Network Rail benefits by running them
centrally through being better able to distribute supply and manage perturbation.
Vision
The vision for AMS is to be respected as the pre-eminent source of railway systems innovation
and best practice, both within and outside of the rail industry.
Purpose
AMS exists to set asset policies and provide assurance; to provide essential services to the
Routes (information, energy, telecoms); and to support internal and external customers in
achieving optimum performance from the rail infrastructure.
History and Transformation for CP5
AMS was created out of the previous Network Rail Directorate ‘Asset Management’, in
response to the implications and opportunities of Devolution. It went live on 20th August 2012
but only as a high level organisation. This is part of a journey from a large delivery
organisation, to a smaller, efficient, expert service provision organisation. That journey began
with the devolution of Maintenance to the Routes, and subsequently has seen NDS move to
Corporate Services, and the Track and Signalling and Power delivery organisations move to
Infrastructure Projects.
The transformation into an efficient, customer-focused, service-orientated organisation is being
delivered through Programme Olympus. It will be complete by Apr 2013 (though on-going
cultural and service improvements will continue beyond that date). The focus of AMS for CP5
is described on the next slide.
AMS consists of the following functions, which are laid out in the diagram below: Route
Services, Strategic Services, Technical Services, Technical Strategy, Energy Services,
Telecoms (NRT), Asset Information and National Certification Body. (See slide 3 – vision for
each function).
3. SBP Asset Management Services
Network Rail 2
CP5 Focus:
Create and continuously improve asset policies, asset standards and the processes which
govern them
Conduct assurance activities on behalf of the board and stakeholders
Take a long term view of assets and their environment to assure sustainability of the network
Provide telecoms and energy services to the Routes and their customers
Offer trusted asset-related information management, insight and tools to enable better
informed business decisions
Guide customers on how to operate, maintain and renew to obtain lowest whole-life cost of
assets
Identify and share best practice and knowledge across the whole business to drive out costs
and improve performance
Innovate and research and develop new processes and technologies
Industry Impact:
We expect the industry impact of AMS to be positive. The development of a Technical Strategy
for Network Rail, aligned with the Industry Technical Strategy, will be beneficial for customers
and suppliers alike. There are already tactical activities that AMS is involved in that will
contribute to an improved railway industry, for example delivering for Rail Delivery Group
(RDG) workstreams; international benchmarking activities; and provision of information
services to industry. Over time, as AMS proves itself, we have an ambition to be able to sell
our expertise to other parts of the railway industry and beyond.
Cost & Efficiency:
AMS has committed to an overall efficiency of 20% through CP5. The Olympus programme
will deliver savings to Network Rail in operation costs, through a more efficient and effective
approach to service delivery, and will transform the central AMS organisation into a customer
focused service delivery function. The table below highlights the actual and percentage
efficiency trajectory for AMS throughout CP5. The key driver of efficiency is better resource
utilisation within Technical Services (the bulk of the former Asset Management teams), Asset
Information and development of NRT.
Asset Management Services costs will total £548.9m (Net) in CP5.
AMS
Function
CP4 Exit
£m
Year 1
£m
Year 2
£m
Year 3
£m
Year 4
£m
Year 5
£m
TOTAL
£m
AM Directorate £2.8 £1.9 £1.9 £1.9 £1.9 £1.9 £9.7
Energy Services £3.1 £2.5 £2.5 £2.5 £2.5 £2.5 £12.3
NCB (£0.5) (£0.8) (£0.8) (£0.9) (£0.9) (£0.9) (£4.3)
Route Services £0.7 £0.7 £0.7 £0.7 £0.7 £0.7 £3.3
Strategic Services £2.0 £0.7 £0.9 £1.5 £2.6 £1.8 £7.5
Tech Strategy £1.9 £1.4 £1.4 £1.4 £1.4 £1.4 £6.9
Technical Services £23.2 £19.2 £18.7 £18.2 £17.6 £17.1 £90.8
Asset Information £26.7 £22.9 £22.4 £21.9 £21.4 £20.9 £109.4
Telecoms £65.6 £73.8 £65.6 £60.3 £58.6 £54.9 £313.2
TOTAL AMS £125.5 £122.3 £113.2 £107.3 £105.8 £100.3 £548.9
Efficiency £m £3.2 £12.3 £18.1 £19.7 £25.1
Efficiency % 3% 10% 14% 16% 20%
4. SBP Asset Management Services
Network Rail 3
AMS Functional Vision for CP5: (more details can be found for each function in the
supporting narrative documents)
Route Services and Strategic Services – Two customer facing functions. These functions
provide essential account management services to ensure that AMS delivers optimal value
by really understanding our customer needs, helping to shape those needs in the future, and
sharing best practice across route and strategic customers.
Technical Services – is one of the largest functions, and together with Telecoms and Asset
Information is the bulk of the former Asset Management teams, providing services to support
customers achieving optimum performance from the rail infrastructure. The vision for TS is to
continually innovate and generate revenue by delivering value adding services, and providing
assurance.
Energy Services – providing essential energy services to the rail industry. The Energy
Services vision is to become a leading sustainable energy delivery organisation.
Technical Strategy – The vision for TS is to be recognised by NR and the wider industry as a
preeminent source of feasible, acceptable and suitable strategy to embed a step change in
levels of research and innovation that directly contribute to sustainable whole life solutions at
maximum value for money to the taxpayer.
Network Rail Telecoms – providing essential telecoms services to the rail industry and its
users. The vision of NRT is to be the rail industry’s number one outstanding service provider
of choice and to become a significant player in the UK communication market space.
Asset Information Services – The vision for AI is to provide a trusted asset-related
information management, insight and tools to the rail industry.
Network Certification Body – providing a certification service for new technology
infrastructure and rail vehicles to the industry. The vision for NCB is to be the first choice for
European rail conformity assessment – respected by our people and clients for our industry
knowledge and valued for the service we provide.
AMS (Opex £m)
£75.0
£85.0
£95.0
£105.0
£115.0
£125.0
£135.0
CP4 Exit Year 1 Year 2 Year 3 Year 4 Year 5
5. SBP Asset Management Services
Network Rail 4
Energy Services
Overview
Energy Services will lead and manage the development of Network Rail’s energy & distribution
management strategy, this function will be accountable for setting overall asset policies and
standards for energy systems & will also be accountable for the purchase of energy for the
company.
Vision
To become a leading sustainable energy delivery organisation.
To become a single point of contact for (specialist) services and capabilities that is not viable
for the Routes to have in-house.
Provide (technical) leadership and guidance in the form of clear strategy and policies for
energy and electrification.
Provide technical assurance to meet safety and regulatory requirements.
Purpose
Include energy efficiency in policy.
Understand Network Rail’s energy usage.
Reduce energy costs & CO2 emissions.
Flatten the traction energy users profile.
Drive non-traction energy usage down.
Reduce network losses.
History and Transformation for CP5
Network Rail is a large power distributor with three networks (AC,DC and low voltage) yet we
can further improve our structure, standards and processes for robust network management.
Roles and responsibilities for energy management were split across the company and the
coordinated energy and distribution management strategy was less than optimal. Our energy
asset knowledge, network losses and capacity management could be improved to meet future
requirements.
Energy Services was created on the 20th August 2012 to address the long-term electrification
strategy issues for electrified Routes, it is clear that a coordinated central network management
approach delivers significantly more advantages than a fragmented Route based approach.
A centralised energy function such as Energy Services will provide an holistic approach to
network strategy, whole life costs, standardisation and network performance.
Scope of Energy Services
Strategy
Policy
Assurance
Deep technical expertise
Utilities trading
Network/asset information
People capability strategy and planning
Network Planning and design
Route asset management
Schemes Design
Maintenance
Operations
Procurement
Strategic supplier management
Accountability – ‘leads’ the service area
Support
6. SBP Asset Management Services
Network Rail 5
Network Rail Telecom (NRT)
Overview
NRT owns and manages the national telecoms assets of Network Rail. Unlike the devolved
route assets, telecoms assets are managed nationally as a single coherent network. NRT is
tasked with delivering the current and future operational telecoms requirements of the railway,
driving efficiencies and delivering additional value from these assets by extending the offerings
to rail partners and optionally 3rd parties.
Vision
Our vision is provide carrier class services to Network Rail and the wider rail industry as data
volumes grow and become increasingly mobile. Building on that base we’ll extend our CNI
capable network externally to become a significant player in the UK communications.
Strategy
Network Rail’s key strength is an extensive telecoms network trusted to run one of the most
critical national infrastructures in the UK. NRT will extend this network with FTNx (a next
generation network) and high speed mobile data and use these to consolidate the rail
industries growing data requirements and remove dependencies on 3rd parties. Once the rail
industry is fully served, consideration will be given to external fixed data services, exploiting our
resilience and security.
Partnering
NRT needs to deliver 4G mobile data services for future train operational needs, ORBIS
trackside applications and passenger Wi-fi. Our strategy is to partner with one or more
partners, using their spectrum and our physical masts and backhaul assets to build this
network at least cost to Network Rail. This in turn will drive value added service provision and
help meet strategic themes.
Market Segmentation Strategy
NRT currently delivers services via Layer 0 in the diagram below – Using the existing low
capacity FTN network and 3rd party services from BT and Level 3 to run the railway.
Layer 1A is the first step in extending the network to support future rail operational needs.
FTNx – a new high speed network overlaid on FTN – will support data hungry services
(SCADA, TM, ROCs, Corporate Voice and DATA) and high definition CCTV while allowing
NRT to migrate from 3rd party suppliers and bring down provision costs.
Using FTNx, layer 1B services will be extended to the rail family along the rail corridor –
connecting TOC stations, depots and switching centres to more efficiently run the railway.
Consideration will be given to full utilise strategic partnerships Layers 2 and 3 will extend FTNx
and mobile services beyond the rail corridor to run our rail family corporate functions and have
potential to support CNI networks such as the British Transport Police.
Finally, Layer 4 services will be considered proving traditional wholesale and enterprise data
services and supporting UK PLC through rural broadband initiatives etc.
7. SBP Asset Management Services
Network Rail 6
Asset Information: The ORBIS programme
…is a £330m programme of Asset Information data
and services capability enhancements that provides
a vital enabler for condition-led asset policy
implementation, enabling our customers to better
manage their asset base for less, and better exploit
existing railway system capability.
New capabilities delivered in the first 12 months:
CP5 H2
2017-2018
CP5 H1
2014-2016
CP4
2013-2014
2012-2013
ORBIS funded
October 2011
Build the Enablers:
•Master Data Management, Asset Data Store,
•Handheld roll-out, Mobile Productivity Apps,
•Asset Data Improvement Programme, data exploitation pilots
•‘What’ data (master data store and master inventory)
Build the Essentials to support ‘predict and prevent’ policy:
•‘Condition’ data (handheld apps + train-borne data capture)
•‘Workbank’ data (optimisation, paperwork elimination)
•‘Where’ data (maps, GIS asset data, photogrammetry)
•Information base required for condition-based maintenance
EnableAdvanced asset decision-support tools:
•Decision support tools for whole-life cost optimisation
•Utilisation and Degradation modelling
•Capability and Performance Modelling
Deliver Railway System decision-support tools:
•Complete Railway System Capability/Capacity Model
•Real-time infrastructure performance for traffic management
c8,000 ruggedisedphoneshave
been issuedto frontline staff.NR
App store,security,usertraining all
delivered ontime,to budget.
‘GPS Finder’app being used to
more easily locate track defects
requiring remediation to within 5m;
previously up to 1mile.
The S&C Verification app directly
updatesour master assetregister with
informationfrom the field.This app
enablesthe elimination of 4.3m manually
processed recordsper year.
The TrackView pilot projectcaptures aerial
and track-levelimagery to help planners to
visualise worksitesand develop better and
safer working plans.
The LinearAssetDecisionSupport(LADS)pilot
projectprovides a multi-layered view of linear
assetdata.It enables us to predict when faults
will occur, and understandthe effectiveness of
work previously carried out.
‘Where am I?’ app provides a
universal translator for linear mileage
/ chains / line of route / GPS / OS
Grid / Postcodes etc.
8. SBP Asset Management Services
Network Rail 7
Technical Services
Overview
Technical Services (TS) is the technical engine room of Asset Management Services. The
team includes asset management and asset specific experts to deliver repeat and bespoke
services to our internal customers.
The services offered are not limited to pure Asset Management. Other broader services
include specialist engineering advice, technical assurance, asset performance reporting and
analysis.
The new organisation has been created from the previous Asset Management team but the
operating model and future culture are very different. A more outward looking focus on
customer service, service delivery and efficiency reflects a major shift in culture and direction.
Vision
The vision for TS is to continually innovate and generate revenue by delivering value adding
services and providing assurance to our internal and external customers.
Purpose
To succeed in achieving this vision we must establish an organisation that:
Generates a proportion of its income from new ideas
Provides staff with development opportunities through challenging and varied work
Must be viewed as an efficient and competitive supplier by our customers
Must reliably deliver on our commitments to our customers
Must be capable of tailoring and integrating our services, and with others across AMS, to
achieve the desired customer outcomes
Must develop services which our customers want to buy.
Customer Centric Operating Model
TS will adopt a matrix operating model illustrated in Figure 1 below. This model is flexible to
allow for customers changing needs, provides staff with development opportunities through
challenging and varied work, maximises employee utilisation and supports increased focus
on service delivery.
Programme delivery teams and a small practice office will manage and monitor services to
pre-agreed time cost and quality parameters. A dedicated resource management capability
will ensure that the right competencies are available at the right time to efficiently deliver
future workload.
The majority of the team will sit within one of the technical capability groups. Creating these
groups will support greater emphasis on technical and professional development and more
generally help get the best from our technical experts. Project teams will be created to deliver
against the customer needs, with resources drawn from different capability groups depending
upon the service and technical input required.
Definition of all services being offered by TS is on-going with 31 detailed services identified to
date. These services fall into three broad categories:
– Assurance – Provision of end-to-end assurance and audit support to assets and projects
through specialist monitoring, analysis and reporting
– Policy – Development of detailed asset & railway policy, standards, and management
strategies that are technically sound and aligned with industry best practice and
supported with compliance advice
– Specialist – Technical advice and delivery support at both a strategic and tactical level
across the railway network, assets, and NR staff, to ensure WLC, safety, and
performance requirements are met.
Finance benefits
Through the improved alignment of internal resources to demand, and a rationalisation of the
gross on cost, the operating model is anticipated to deliver an average saving of £5mp/a (26%
exit to exit), this is in addition to the £2m saving anticipated before the end of CP4.
9. SBP Asset Management Services
Network Rail 8
Technical Strategy
Overview
We are currently lagging behind benchmarked levels of investment in R&D. Whilst this is now
being addressed, NR is still only investing approximately 1% of turnover in R&D. Across all
sectors, the UK invests at 1.7%; the EU target is 3% and the global average is 3.6% (based on
the Engineering UK 2012 report). TS is addressing this by developing the Network Rail
Technical Strategy (NRTS) to provide a framework and governance to achieve maximum cost
benefit at significant factors of leverage within the industry delivering maximum value for
money for the tax payer.
Vision
The vision for TS is to be recognised by NR and the wider industry as a preeminent source of
feasible, acceptable and suitable strategy to embed a step change in levels of research and
innovation that directly contribute to sustainable whole life solutions at maximum value for
money to the taxpayer.
Purpose
The purpose of the Network Rail Technical Strategy (NRTS) is to identify the technical
barriers that prevent us from achieving our corporate objectives and to identify R&D activities
that will allow us to overcome these. With this Strategy in place, technology will be able to
function as a key driver for our business.
The NRTS ensures industry wide rail strategy is embedded in both the technical cycle plan
and business case for R&D, that are crystallized in the NR Strategic Business Planning
process.
Role
TS has a role to be the custodian of NR technical strategy and to ensure the plan is
discharged in a manner that provides maximum long term benefit.
Future Investment
Plans are in place to increase the R&D spend such that by end of CP5 the exit expenditure
increases by £150m pa. The high level business case for this increase in investment lies in the
success to date of the return on investment achieved in CP4 on projects that have run through
the new innovation process. The benefits ratio stands at 11:1. As the scale of activity increases
and as the portfolio expands to include a broader mix of projects, the expectation is that this
ratio will fall, but based on industry benchmarks, a long term ratio of 5:1 is realistic (to date
over 200 projects have run through the innovation process and R&D metrics are reported in the
corporate scorecard). A detailed business case, based on forecast benefits from a complete
R&D programme, will be developed by mid 2013. This will drill down into each line item of R&D
activity, and will be derived from the Network Rail Technical Strategy.
Funding
Funding for the increased R&D activity will come from a combination of sources, including
direct from Network Rail, and other external sources of leveraged funding. These sources will
be identified in the CP5 delivery plan.
Network Rail has had success to date in achieving leverage on Strategic, long term R&D,
although this has mainly been via rail industry initiatives. Even as the scale of activity
increases, it is realistic to assume that leverage opportunities will still be available to Network
Rail for Strategic, long term R&D.
Proposed NR R&D Spend
Incremental R&D
0
20
40
60
80
100
120
140
160
2014/15 2015/16 2016/17 2017/18 2018/19
AnnualExpenditure(£m)
0
50
100
150
200
250
300
350
400
CumulativeExpenditure(£m)
Incremental R&D HLOS Industry Development Cumulative Total
Key 2019 outcome(s)
Improved real time communication with customers and other stakeholders.
Commencement of the implementation of European-compliant railway control systems
including: GWML, ECML(S), Thameslink core.
Network Rail’s technical strategy leading the railway system.
Key 2024 outcome(s)
Passengers interface with the railway in real time through multiple channels.
10. SBP Asset Management Services
Network Rail 9
European-compliant railway control system in place on 20% of the network, including:
GWML, ECML(S), MML, Thameslink core.
Network Rail’s technical strategy transforming the railway system.
11. SBP Asset Management Services
Network Rail 10
Route Services, Strategic Services & NCB
Route Services:
Route Services provide essential account management services to ensure that AMS delivers
optimal value by understanding customer needs, helping to shape those needs in the future,
and sharing best practice across routes. The key objectives are:
To build strong relationships with the Routes and central Network Operations
To understand the short and longer term asset management challenges that their customers
face and market the service catalogue
To develop a long term, prioritised work plan & ensure customer expectations are met
To provide clear direction & priorities to Technical Services, based on customer need
To provide customer feedback to Technical Services on the effectiveness of the services
provided and longer term changes in the services required
Strategic Services:
Strategic Services provides a key assurance role across the routes and the network, which
enables important monitoring of asset policies, asset sustainability, safety standards and an
optimised asset view. Strategic Services works in partnership with the Planning & Regulation
team to discuss asset management with the regulator (ORR). The key objectives are:
To provide technical advice and support
To ensure whole life costing methodologies are used
To support professional and competency development
Interpret, evaluate and raise potential risks
Report relevant information (Cost, Volumes, Unit Rates, Safety Performance, Sustainability
etc) to internal and external customers
NCB:
The Network Certification Body is a subsidiary company of Network Rail Infrastructure
Limited, providing Rail Vehicle and Infrastructure certification services to UK and European
railway projects.
The Network Certification Body provides 3 main services to NRIL and third party UK Rail
industry customers:
– Infrastructure Safety Certification services – including Notified Body, Designated Body,
Assessment Body and Competent Independent Person (CIP) accredited services.
– Rail Vehicle (including Plant) Safety Certification services – including Notified Body,
Designated Body, Assessment Body and Competent Independent Person (also referred
to as Vehicle Acceptance Body, or ‘VAB’) accredited services.
– Specialist Rail Vehicle Technical Services – including; Management of the Private Wagon
Registration Agreement, Load Unit certification assurance certification, possession only
plant engineering certification.