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Föredrag om Outsourcing/inhouse av Pekka Pakkala från Vägförvaltningen i Finland PowerPoint PPT Presentation


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Föredrag om Outsourcing/inhouse av Pekka Pakkala från Vägförvaltningen i Finland på NVF 11 möte den 9.11.2001. Presentation Overview. Objectives: Why Change Client Role Changes Models Used Innovative Project Delivery Methods Keys To Success Innovation Challenges In IT.

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Föredrag om Outsourcing/inhouse av Pekka Pakkala från Vägförvaltningen i Finland

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F redrag om outsourcing inhouse av pekka pakkala fr n v gf rvaltningen i finland

Föredrag om

Outsourcing/inhouse

av Pekka Pakkala

från Vägförvaltningen i Finland

på NVF 11 möte den 9.11.2001

Pekka Pakkala

PTL IT Meeting


Presentation overview

Presentation Overview

  • Objectives:

    • Why Change

    • Client Role Changes

    • Models Used

    • Innovative Project Delivery Methods

    • Keys To Success

    • Innovation

    • Challenges In IT

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


Future road administration perspectives

Future Road Administration Perspectives

  • Future Funding Levels - Insufficient to meet needs

  • Unfair at Regional Levels

  • Less Traffic Volume Roads Are Suffering

  • Gravel Road Situation

  • NEED => PROVIDE A BETTER ROAD SYSTEM IN A HEAVILY CONSTRAINED FUNDING ARENA AND AN INTENSE COMPETITION FOR LIMITED ALLOCATION OF GOVERNMENT FUNDS

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


Future client perspectives

Future Client Perspectives

  • Why Change:

    • Insufficient Funds to Meet the Level of Road Care Management

    • Fully Integrated Client Services

    • Cost Savings (10-35%) in Long Term Contracts

    • Risk Sharing

    • Changing to Performance Based (Outcome Based Criteria)

    • Partnering Potential

    • Innovation

    • Better Asset Management

    • Road User Satisfaction

    • Improved Budgeting

    • Strategic Focus

    • Too much Contract Administration

    • Maintenance Budget Fluctuations

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


Fully integrated client services

Fully Integrated Client Services

  • Lump Sum Contract for all activities:

    • Routine Pavement Maintenance

    • Asset/corridor management

    • Vegetation control & Mowing

    • Signs & Traffic Signals

    • Resurfacing

    • Pavement Rehabilitation

    • Emergency Response

    • Drying & Drainage Control

    • Traffic Services

    • Guard Rail Repair/Replacement

    • Lighting

    • Seal Widening & Repair

    • Winter Maintenance

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


Paradigm changes in client procurement of maintenance

Paradigm Changes In Client Procurementof Maintenance

Estimated

Potential

Savings

45%

35%

20%

Own Forces

(Method Based)

Outsourcing

Outcome

Based

Long Term

Agreements

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


Client decisions

Client Decisions

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


Performance criteria

PERFORMANCE CRITERIA

Performance Measures in PSMC

Roughness (IRI)

Skid Resistance

Rutting

Deflection (Structural Condition)

Texture

Cracking

Residual Surface Life

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


Phases in road organization s reform

Phase 1

Phase 2

Phase 3

Phase 4

Phase 5

Phase 6

Phase 7

Corporatize

Privatize

Identify

Separate

Client

Client

Client

Client

Client

and

Client

Agency &

and

Production

Producer

Corporatize

Privatize

Producer

Producer

Producer

(Deliverer)

Road Fund

Decreasing Government Involvement

Phases in Road Organization’s Reform

Pekka Pakkala

PTL IT Meeting

Source: World Bank, TNZ & Finnra


Client role changes

Client Role Changes

  • Need To Outsource All Capital & Maintenance Projects

  • Need To Outsource Other Client Services

  • Develop Clear & Well Defined Client Scope (What You Want)

  • Develop Project Partnering

  • Cultural Change

  • TRUST Between Client & Contractors

  • Developing Outcome Based Criteria

  • Changing to Asset Management (Changing Skills)

  • Aging Organization & Attracting New/Young Professionals

  • Hope => Young Professionals in IT Area

  • Risk Allocation - Which Ones to Transfer

  • Contractors Will be Responsible for Development & Innovation

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


F redrag om outsourcing inhouse av pekka pakkala fr n v gf rvaltningen i finland

England MAC Model

Client

Network

Board

Managing

Agent

Contractor

Pekka Pakkala

PTL IT Meeting

Source: Highways Agency


Usa model

USA Model

  • Characteristics

    • 5 + 5 Year Duration

    • Lump Sum Contract

    • 50% Price & 50% Other (Varies in some states - Best Value)

    • Some Outcome Based Criteria

    • USA states still uses In-house forces for maintenance activities

    • Rehabilitation is not included (Resurfacing is included)

  • Results

    • Innovations are realized - Equipment, Contractor efficiency, pavement, markings & etc. (over the life time of the contract)

    • Significant Cost Savings to Client

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


British columbia canada model

British Columbia, Canada Model

  • Characteristics

    • Now 8 Year Duration (Previously 5 years - 3+2)

    • Lump Sum Price

    • 60% Price & 40% Quality Selection Criteria

    • Outcome Based Contract

    • No resurfacing & rehabilitation

  • Results

    • Some minor Equipment & Contractor efficiency innovations

    • Some Cost Savings to Client

    • Defaults due to Union labor problems & High Costs

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


New zealand psmc model

New Zealand PSMC Model

  • Characteristics

    • 10 Year Duration

    • Lump Sum Contract

    • Quality Price Trade Off - Selection Criteria

    • Outcome Based Criteria

    • Uses consultants for management & rehabilitation

  • Results

    • Innovations are realized - Equipment, Contractor efficiency, pavement, markings & etc. (over the life time of the contract)

    • Incentives as a means to foster innovation

    • Significant Cost Savings to Client

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


F redrag om outsourcing inhouse av pekka pakkala fr n v gf rvaltningen i finland

Innovative Project Delivery Methods

FULL DELIVERY

PRE-PLANN

ING

&

ACQUISITION

FINANCE

DESIGN

CONSTR.

O & M

(Operatons

&

Maintenance)

UPKEEP

&

IMPROVE-

MENTS

SEGMENTED

IN-HOUSE

D-B-B

Consultants & PPP

DESIGN-BUILD

COMBINED

LONG-TERM MAIN. AGREEMENTS

(PSMC)

CAPITAL

PROJECTS

(DBOM)

Design-Build Operate Maintain

(DBFO)

Index:

Traditional: Green

Innovative: Purple

Design-Build Finance Operate

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


Partnering issues

Partnering Issues

CLIENT

PARTNERING

PROJECT

CONTRACTOR

PARTNERING

PARTNERING

PARTNERING

PARTNERING

SUB-CONT.

SUB-CONT.

SUB-CONT.

SUB-CONT.

SUPPLIERS

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


Keys to success

Keys To Success

  • TRUST

  • Partnering

  • Cultural Change

  • BOLD CHANGES - A Champion Among The Industry

  • Future - Contractors will be Responsible for Development

    • Fully Integrated Client Services

    • Longer Life Cycles

    • Quality Based Systems

    • IT Developments

    • New Products (R&D)

    • Innovative & Intelligent Work Places

    • Intelligent Materials

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


Innovation

Innovation

  • Long Term Agreements - Greater Than 7 Years

  • Partnering (Both Client & Sub-Contractors)

  • Lump Sum Contracts

  • Provide Most Sub-Contractors With Same Long Term Agreement

  • New Equipment

  • Ability to Use Innovation Throughout the Length of the Contract

  • Technical Efficiencies

  • Efficiency in Controlling the Network Area

  • Utilizing New Tools & Materials to Improve Efficiency & Quality

  • Intelligent Materials

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


Information lifecycle

Pre-Design

Design,

Engineering

Planning,

Cost

Information

Briefing for

Changes

Product

Specification

Construction

Rehab or

Disposal

Upkeep &

Maintenance

Information Lifecycle

Briefing

Pekka Pakkala

PTL IT Meeting

Source: VERA - Arto Kiviniemi


Goal in the future

Geometry

Design/Engineering

Product Specifications

Goal in the Future

Information is shared in

exploitable data format directly

between different systems

Maintenance Mgmt Systems

Traffic Services

PMS

Asset Management

RWIS

Pekka Pakkala

PTL IT Meeting

Source: VERA - Arto Kiviniemi


Challenges in it

Challenges In IT

  • Interoperability

  • New Business Opportunities

  • E-Roads

  • Project & Maintenance Management

  • Integrating All Design Aspects Into Asset/Cost Management

  • Traffic & Safety Management

  • New Equipment

  • Develop Young Professionals

  • Ability to Use Innovation

  • Technical Efficiencies

  • Utilizing New Toolsto Improve Efficiency & Quality

Pekka Pakkala

PTL IT Meeting

Source: Pekka Pakkala - Finnra


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