Twinning project, activity 4

Maintenance assessment
Tools and techniques used by ProRail
to manage costs and performance

By Jan Swier and Ted Slump, ProRail, The Netherlands

Tel. +31 30 235 5315. e-mail: jan.swier@prorail.nl

ProRail. All rights reserved File: g:\Js05\0406.Slovenia.outsourcing

 Outsourcing strategies in Europe

General approach
superstructure
New/Renewal:

New/Renewal:
substructure

Maintenance
Engineering

outsourcing
Design &

Conclusions:
1. Within Europe there are big
Holland differences in the degree of
Finland )* )* 100% inhouse outsourcing.
Ireland
2. Only in Holland all the
Spain
England Unstable, big changes execution of work is
Germany outsourced.
Sweden )** )** 100% inhouse
3. Outsourcing of
Italy
Norway maintenance is unusual.
Switserland 4. Broadly speaking the cost
Austria
Denmark
effects of outsourcing are
Belgium indistinct.
France
VS; Amtrak

Degree of outsourcing Appraoch

Most work inhouse Conservative
Partly outsourced Outsource initiatives
Most outsourced Innovative,broad adopted
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 Context
assessment

Outsourcing of Maintenance & Renewal

LC Costs
RAMS quality
Functionality

Interaction Interaction Large-scale

Renewal Small-scale maintenance
maintenance

Result: a PRODUCT Result: a SERVICE Result: a PRODUCT

Long Term reaction time Short Term reaction time Middle Long Term reaction time
Trigger: degradation Trigger: RAMS & functionality Trigger: quality improvements

RAMS = Reliability, Availability, Maintainability, Safety

LC= Life Cycle

ProRail. All rights reserved 3

 Small-scale maintenance is outsourced
with three types of contracts
Track RAILINFRA
39x Process contracts
Bridges 3x Process contractors
Many project contracts and
Level Crossings
contractors
Energy supply
Signalling TELEMATICA
1x Framework contract
Telecom 16x Sub-process contracts
1x Consortium of contractors
Posts (Traffic Control)
Stations STATIONS
1x Management
agreement
with NS Stations
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 Contract boundaries between Signaling,
Main Post Telecom and Posts
Operation
s

EBP EBS-
gate
Glass fiber
Copper cable TEL.
Copper cable signaling

Sub Post Sub Post

EBP EBP
Contract boudary None Failsafe technique
EBS Failsafe technique
VPI B-relay Sub Post
Relais Relais Case Relais Case
Case VPI

Process Contract A Process Contract B Process Contract C

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 Outsourcing; allocation of tasks
Outsource Audit
Specify

Input Proces Output

Measure
Evaluate &
Measure
Improve
Check
Planning of work Check
Preparation of work Evaluate &
Execution of work Legenda:
Improve ProRail
Inspections
Contractor
Report
ProRail. All rights reserved 6
Typical OPC-contract
*Integral maintenance contract for all technologies: electrical & civil engineering
*Service contract; not calculated on results but on efforts
*Separate accreditation scheme for maintenance and fault repair
*Model OPC is standard; uniformity, unambiguity
*Contracting guide with process worked out
*Skeleton contract with a duration of 5 years, with annual meetings about changes
*Prescribed inspections linked to specifications
*Generic risk analysis of the process Explanatory descriptions
(Descriptions of what to do/in which order/by whom/in which context

*Open budget as support for the offer Contract guideline

The steps to be followed in sequence to arrive at a contract

*Specifications at four cohesive levels Model agreement

*Risk inventorisation of safety Model contract
AVPI
APPENDIX 1 APPENDIX 2 APPENDIX 3 APPENDIX 4 APPENDIX 5
(General ProRail B&I Contractor
Exceptions Generic Generic
Conditions
and standards/ relevant
for Process Definition Quality plan
supplements specifications background
contract (What demand) (How delivered)
information
to the generic
Upkeep) Risks + Price +
Conditions and
specifications risk sharing Description

OPC = Output Process Contract

changes Annual agreements

ProRail. All rights reserved 7

 Performance is specified and managed at
four (related) levels

Railinfra mngt. TOCs

Punctuality & Capacity
Customer Top requirement for public rail transport

RAMS(HE) Specifications
Board Area RIB business targets per (contract) area

Managers Integrated Quality Indicators

Systems Time-related quality figures for infrastructure systems

Technicians
Objects
Maintenance Specifications
(Minimum) technical wear and objects wear limits

Contractor Inspection & maintenance actions

Activities
RAMSHE = Reliability,Availability,Maintainability,Safety,Health,Environment
TOC = train Operationg Company
ProRail. All rights reserved 8
 Measuring and reporting on Quality is
outsourced. It is a highly skilled business.
OUTSOURCED: measures and reports on quality

Standard
Non-standard Non-standard
quality
quality quality
measurements
measurements/ measurements/
(according to
inspections inspections
contract)

Defects
ProRail Contractor

Railinfrabeheer 9
Four types of quality measurements/inspections

Types of inspection:Characterisation: Ordering method:

Visual inspection (compulsory by law) 100% process contract
Inspection Guaranteeing safe operation
Report limited to nonconformities
More frequent than operational inspection

Visual inspection 100% process contract

Operational Guaranteeing operation
inspection Report limited to nonconformities
Systematic, at least 1x per year

Often involving specialist equipment partly process contract

Quality Quality assessment partly project order
Uniform inspection report
inspection Performed systematically

In-depth inspection with specific objective 100% project order

Technical Performed occasionally
Unique inspection report
inspection Specialist
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 Overview of Quality measurements
1. Failure and punctuality recording
2. Measuring trains (track, US, catenary, ATC,..)
3. Inspections:
* schouw (frequent inspection of lines on foot )
* functionality
* quality
* technical
4. Telemonitoring systems
5. Audits

ATC Automatic Train Control

US = Untra Sonic
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 Output management tools (to manage
costs and performance)
1. Specifying and measuring performance at levels
2. Calculating and accounting costs at levels
3. Maintenance management techniques & tools
(e.g. RCM, FMECA, Risk Analysis, Maintenance Concepts, etc.)
4. Process Control / Quality Management
5. Benchmarking; internal and external
6. Modelling:
* Costs and Performance
* Conditions and Costs
* Utilisation and Functionality
RCM = Reliability Centrend Maintenance
FMECA = Failure Mode Effect and Criticality Analysis

ProRail. All rights reserved 12

Evaluation of outsourcing small scale
maintenance in 2001
The contract and contracting process were quite
satisfactory, but ..:
A market with nearly no competition,
no clear insight into costs and the relationship with the
performance delivered,
insufficient specifications and instruments to work with RAMS,
insufficient collaboration,
sub-optimisation; contractor too focussed on own operating results,
and ProRail specified the results insufficiently.

In 2001 the OPC+ project has started

ProRail. All rights reserved 13
OPC+: changing the relation with
small scale maintenance contractors
* Need of short term improvement.
* Introduce professional asset
management skills and instruments.
* Share information and knowledge with
Process contractors.
* Shared targets for 2006.

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 Results OPC+

Data systems linked to automatic data

synchronisation for failures
First transition step organisations
Management Control and Reporting System
installed and KPI dashboard
Failure reduction 20% compared to 2002
EUR 40 million (20%) efficiency improvement
New maintenance guidelines with classes
Experiment with new schedule for train free periods
for maintenance
Joint vision of relationship in 2007and sustainable
results
KPI = Key Performance Indicator

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Lessons learned
1. Outsourcing of maintenance projects (like renewals and
large scale maintenance) has big advantages and is not
very risky.

2. Outsourcing of small scale maintenance is difficult

because:
There is no real competition.
The result is a service (RAMS) and not a product.
Integral skills of the contractors are needed (civil, signaling, high voltage)
New instruments and management skills are needed.
An unusual attitude of the contractor; dedicated to maximize quality/cost ratio

3. You have to know your business and be in control of it:

Only if you can specify and measure it, you can manage it.
Skilled people and dedicated instruments are needed to manage costs and performance.
Know your infrastructure, costs realised and minimum quality accepted.
Reorganise your processes, instruments and skills to control improve results.

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 Advice
1. Do not outsource maintenance if you dont know how to
stay in control of costs and performance.
2. Outsource step by step: plan, separate, split-off and
outsource.
3. Outsourcing should not be a goal but a way to improve.
4. Outsourcing needs a cultural change and takes time.

Statements
*The market will not give you anything for free.
*Outsourcing is not a solution for your financial or managerial problems.
*Tasks are outsourced, but the end-responsibility for the overall result not.

ProRail. All rights reserved 17

Maintenance management;
how to manage the relation cost-performamce

Introduction and developments

The relation between Costs and Performance
has to be managed in levels
.

Rail infrastructure
Railinfrastructur
Network Network
Director
Lines Lines

Systems Systems

Objects
Managers Objects

Activities Components
Technicians
Costs Performance
Mechanics (RAMS)

Organization
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 To manage performance (RAMS) dedicated
instruments and quality assurance are needed.
RAMS specs in Consequence:
a contract full process control &
dedicated instruments
Reliability-
Maintenance
RAMS Engineering
centred
Maintenance
specs

RAMS Safety case

specs
Risk Analysis See
RAMS Maintenance Concept EN 50126
specs
Work plan
ProRail. All rights reserved 20
 EN 50126 give ProRail a frame work to
organize processes and process control

Application EN 50126:
*how to control Processes to
optimise RAMS and Costs
*based on Specification and
Demonstration of RAMS-
requirement / risks
.for the whole life cycle
.for all railway systems
.for all parties in the business
.for new and existing systems

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 Maintenance Concept is the tool to
relate costs and performance

Object Failure Modes Chances & Effects M&R activities Specs

Failure Failure Condition Life Failure Effect on: M&R Activity Costs/ Sequel Costs/ Minimum
Part form cause of the fault Time duration RAMS Costs strat. activity action action technical
failure specs
SAO
TAO
GAO

Risk Analysis Maintenance Concept

Maintenance,
Renewal,
Inspections
From failure
registration SAO = Failure dependent maintenance
TAO = Condition dependent maintenance
GAO = use dependent maintenance
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Maintenance Mgmt. tools are introduced to manage
the relation between RAMS-Risks and Costs
Knowledge
The maintenance &
Risk Analysis renewal black box
Infrastructure

Availability Reliability
Utilisation

Infrastructure
Money Maintenance according to
& Renewal specifications

Circumstances
Safety Costs

Environment
Maintenance Concepts
ProRail. All rights reserved 23
 Data & knowledge will
be (re)organised

ProRail. All rights reserved 24

Life Cycle Management (= LCM)
Implemented process and skills

Example: LCC analysis of a switch 1:9 and

LCM optimized renewal plan track & switches
Why Life Cycle Cost Management?

Avoid decisions based on short-term

thinking and/or emotions.
LCC helps to make consequences visible
on long term.
Improved reasoning behind and
determination of decision.
Availability of the infrastructure and
expenditure are set off against one
another.

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Principals of Life Cycle Cost Management
25
Yearly maintenance costs
Average yearly depreciation costs renew al
20 LCC; maintenance + renew al
Cost index

15 Lowest LCC

10

Technische life
5 Economical Life

0
1
4
7
10
13
16
19
22
25
28
31
34
37
40
Realized life
Controled Loss of Function
LCC = Life Cycle Costs Loss of quality
(Growing) loss of Quality 27
High Life Cycle Cost reduction potential
in an early phase of a project
% Cost reduction potential

Building proces

Strategy Design Build Maintain

& Renew

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(Life Cycle) Cost reduction potentials
in the Value Chain
Value Chain

Strategy Design Build Maintain

& Renew

Efficiency Chain and examples of cost reduction solutions

Operational Layout, Systems, Processes, Efficiency &
demands Complexity Parts Organisation Productivity Effecitivity

Functional Infra solutions. Quality. Mechanisation. Train Free Optimize M-cost

specifications Periods. and R-costs
instead of Switch density. Specifications. Planning.
technical Site management. Maximize life time
Norms. Tendering.
solutions. Continuous
Technical Market improvement
solutions. developments.

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LCC Management has introduced in 2000

LCC calculation programme

LCC training with course material
Infranet
Helpdesk

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 LCM-step-by-step method ProRail M&R
1. Define project
2. Generate variants
3. Determine preference variant
4. Report findings

M&R = Maintenance & Renewal

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Results following introduction of LCC
Management
LCM knowledge database with >150 LCC considerations
M&R: for production planning process & investments
New lines: for availability request
Increased interest for financial aspects
Improved recording of decisions
LCC as basis for (new) M&R policy

LCC = Life Cycle Costs

M&R = Maintenance & Renewal

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Dashbord / kpis

Kpi = key performance indiactor

Dashboard Board of Directors

TAI Train Affecting Irregularity > 3 min.

FRT Function Recovery Time
TFP Train Free Period
KPI Key Performance Indicators
BoD Board of Directors
BoC Board of Commissioners
MoT Ministry of Transport, Public Works and Water Management
IM Infra Management
IP Infra Projecten
TC Ttraffic Control
CM Capacity Management
ICT Information Management
P&C Planning and Control
HRM Human Resource Management
ROA Result Oriented Assessment of employees

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 Dashbord M&R Director
RAMS KPIs:
Number of TAOs
* Duration of TAOs
* Type of TAO: four origin codes and endogenous/exogenous
RAMS KPIs:
* Utilisation of maintenance schedule and
Train Free Periods
KPI
(RAMS)
TRACK:
* Track geometry figure
SKI * Track geometry incidents
* Visual quality of switches
Upkeep * Guide geometry of switches
specifications LEVEL CROSSINGS: * Visual quality of crossings

Activities SAFETY: * ATC incidents

POWER SUPPLY: * Contact wire thickness

* Incidents because of geometry
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Main developments within ProRail M&R
1. Growing income from user charge (15-20%)
2. Performance contracts with train operators and government
3. Transformation from a task- into a process-orientated organisation
4. Introduction of RAMS/Maintenance management techniques
5. Introduction of dashboard with key performance indicators
6. RAMS specifications in Maintenance, Design and Build contracts
7. Improved cost and quality management and their interrelationships
8. Alliance contract for relationship with maintenance contractors
9. Combined database with maintenance contractors
10. Introduction of Decision Support Systems to improve foundations and
prioritising of projects in production plan
11. Long term renewal plans (25 years)
12. ProRail database with cost norms, cost calculations and LCC cases
13. Innovation in: contracts, quality measurement, telemonitoring,
management information systems and modelling & forecasting
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 Our ambition:
the best rail inframanager
of Europa

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Thank you for your attention

Any questions?

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