We have fixed your House now dont Break it Riversides New approach to Asset Management Ian Gregg February 2016 Some Background Riverside Journey Asset Bubbles Central Team Top level Structure Director Head of Asset Management South Head of Asset Management West Head of Asset Management North and East Head of Asset Services Head of Repairs and Maintenance Head Asset Investment Divisional Structure Divisional Asset Manager Responsive and Voids Senior Officer Asset Officers MOT Senior Officer MOT Officers Contracts Manager Interface with Asset Investment and Asset Services Team Locality Support Admin Team Local at the Front Line 1.It is two separate roles: Property MOT/stock information surveyor specialist Patch Based Officer managing Responsive, Void and planned works 2.Skills and competencies: 1/3 Customer skills 1/3 Technical 1/3 Commercial/contractor management 3.Patch based working 4.Patch size determined by stock type, compliance workload, neighbourhood density, RECHG stock numbers, and geographical distances 5.Property groupings to mirror housing services delivery structures 6.Work to One Riverside methodology but recognise there will be variation for RHO, RECHG and PFI stock Asset Officer Evolve Or is it A picture paints a 1000 words https://youtu.be/vU5ENgDAZp8 Red Ribbons Phase 1 Phase 1: Effective and efficient MoT visits Repairs logging from site Consistency of service Appointment for work to be carried out Confirmation of agreed works letter Next Phases: Complete visibility for front line staff, to aid first time call resolution Improved appointment process Quality Assurance Certificate Energy Performance Certificate to customer Next Phases Customer Experience of One MoT 13 Phase 1 Phase 1: App forms created Effective business Data Collection Consistent information about properties Repairs logging from site Efficient and consistent process One Riverside MoT Technical training Customer Care training First of a suite of reports Next Phases: Pre-populated data = More efficient surveys Automated comms to tenants, inc letters, EPCs, Red Ribbon certificate EPC certificate generation (110k p.a. saving) Complete frontline visibility = reduction in repairs Management portal Next Phases Business Benefits of One MoT 14 Colour Chaos and the Repair Heat Map -Noted that numerous properties had reported high repairs for several years, often with the same trade operatives attending -Each property was tracked to show the chaotic repair activity and listed in a repair heat map based on activity -A way of monitoring and targeting the heaviest repairs consumers -Aims to reduce annual repair figures and average repair costs -A shift from a reactive to a proactive service -Grouped high repair activity by neighbourhood, targeting full areas in one approach MOT / Stock Condition Survey - Carried out by local divisional MOT Officers -Delivered on a rolling 4 year cycle to target repairs and pick up detailed stock condition data -70% of each years programme targets a planned neighbourhood approach with the remaining 30% of visits based on the heat map -Captures all actual and prospective repairs -Re-inforce the tenant responsibilities and our repair obligations -Records data on property attributes and component data allowing for accurate property data and investment forecasting Reducing Repairs across the Group MOT repair volume assumptions Mersey North 2015) Reduction from non MOT repairs deliveryMersey South Hull / Manchester Carlisle / Gateshead Traditional repairs pre-MOT methodology Repair volume per unit Repairs delivered using MOT methodology Pre-MOT % MOT in year % year post MOT % year post MOT onwards % MOT repair price assumptions Mersey North 2015) Reduction from non MOT repairs deliveryMersey South Hull / Manchester Carlisle / Gateshead Traditional repairs pre-MOT methodology Repair price per unit Repairs delivered using MOT methodology Pre-MOT102.45(16.78%) MOT in year % year post MOT102.8(17.18%) year post MOT onwards102.45(16.78%) Divisional Summary Sheet Mersey North SUMMARY (Phase 5) 19/11/2015 Total Properties 9,965 TOTAL MOT VALUESAVG MOT VALUES Total Surveyed739 MOT VALUE465,699MOT VALUE630 Total MOTs Completed483 % Stock Surveyed7.4 PAY VALUE277,634PAY VALUE575 MOTs Cancelled59 Post MOT RepairsAsbestos & Electrical testsProperties by colourNo Total Post MOT Repairs Logged: 298 Asbestos tests Completed 110 Purple (>12) 13 Red (11-12) 23 Total Post MOT Repair value: 25, Total cost 18, Dark Amber (9-10) 46 Light Amber (7-8) 152 Avg no of Post MOT repairs logged: 0.6 Electrical tests Completed 372 Yellow (5-6) 437 Light Green (3-4) 1273 Avg Post MOT Repair value: 86.66 Total cost 152, Dark Green (1-2) 3473 White (0) 4548 Excluding Capital ItemsIncluding Capital Items TOTAL MOT BUDGET 2015/16900,000TOTAL MOT BUDGET 2015/16 900,000 TOTAL MOT VALUE (inc VAT) 344,962TOTAL MOT VALUE (inc VAT) 370,494 TOTAL MOT VALUE (inc VAT + Variations) 465,699 TOTAL MOT VALUE (inc VAT + Variations) 500,166 TOTAL MOT BUDGET REMAINING434,301 TOTAL MOT BUDGET REMAINING 399,834 One Mobile Application -A new mobile application has been developed for repair and stock condition data collection on a tablet device, One Mobile -It allows repairs and voids to be submitted from site and automatically interfaces with Riverside / Contractors IT systems. -Templates created for the collection of Stock Condition data and was developed to allow for easy upload into ProMaster -Relevant information is gathered to generate the production of an in-house Energy Performance Certificate Repair Reduction Team -A central team to monitor and drive down repair numbers across the group and enforce consistency -Produces reports relating to post MOT repair activity -Monitors repair logging across the Groups local offices and CSC -Flags up repairs that are tenants responsibility -Ensures recharge policy is correctly applied -Enforces defects periods on programmed works / new build schemes -Looks at repair reduction initiatives, eg. United Utilities -Produces repair data monthly on prominent topics -Implements relevant training requirements for Divisional staff The Think Homes Benefit Experience Customer Riverside Business Facilities Services (Evolve) Smarter Management of Suppliers Improved Forward planning Improved Data / Management Information (MI) Reduced Costs (VAT, materials, labour) Smarter Management of Suppliers Improved Forward planning Improved Data / Management Information (MI) Reduced Costs (VAT, materials, labour) Appointment made to fix the repair, not just assess the repair Reduced visits / follow up Proactive repairs service through MOTs Appointment made to fix the repair, not just assess the repair Reduced visits / follow up Proactive repairs service through MOTs Guaranteed pipeline of work Improved management of workforce Ability to reduce unit costs Guaranteed pipeline of work Improved management of workforce Ability to reduce unit costs Project Alignment to Benefits Customer Proactive Repairs every 4 years Fix before breaking Reduced failure rate Improved communications Alleviate disrepair Property MOTs Responsive Repairs require less visits Do the repair rather than just assess it Empowered operatives Seamless integration Reduced Failure calls Evolve Facilities Management Improved Information aligned to customer needs / expectations Transparency re: programme information Consistent delivery Improved communication Improved stock (EPCs/Stock Condition/Repairs data) Systems / Data Project Alignment to Benefits Riverside Business Stock Condition Surveys in-house Enhanced information aligned to customer needs Reduction in repair and call volume Aligned with Customer Care Visit cycle Property MOTs Economies of Scale across the group VAT savings through use of in house services Standard Unit specifications / costs Reduced costs resulting from agreed pipeline of work to minimise resource shortfalls Evolve Facilities Management Cost avoidance as a result of the exit from Value Works MI supports the forward planning Five year plan for planed maintenance More effective planning Statutory and compliance data to be accurate and available at all times Reduction in systems (reduction in license costs) Systems / Data Project Alignment to Benefits Evolve Business Enhanced information aligned to customer needs Improved planning of workload Increased economies of scale through batched repairs Property MOTs Continuous pipeline of work to manage resource Improved buying power to drive down unit costs and achieve VAT savings Increased volume of work, with less overheads Evolve Facilities Management Continuous planned works Ability to manage resource requirements Improved procurement opportunities Support growth into other operating areas Systems / Data Think Homes Milestones New Staffing Structures in place Evolve delivering responsive repairs and Gas servicing for all of Riverside North New software and process in place for responsive repairs Full roll out of MOTs across the Group 2015 MOT Cycle completed in Mersey North Number of Responsive repairs less than 100,000 Annual Savings in excess of 4M realised Customer satisfaction with repairs at 82% Customer satisfaction with quality of home at 84% 2017 Evolve Delivering planned works across all of Riverside North Evolve Delivering responsive repairs in central area (Novus) New Contractual arrangements for Non Evolve areas including RECHG M4 Corridor Number of Responsive repairs less than 125, Savings in Business Plan 1,020,000 Property MOTs Evolve Facilities Management 836,000 909,000 Systems / Data And then came George ! Riverside Formula -1 x 4 = 17 The challenge update 2015/162016/172017/182018/192019/20 Target margin21.3%22.0%22.5%23.0%24.5% Target surplus recovery7.2m11.1m19.1m25.0m Business target surplus11.0m15.0m22.0m30.0m NB operating margin at this level clears all financial covenants And in my world MOTs savings upto 7.5% Voids Cost reduction Property Disposals TOM Proposed Solution Reduce average void costs by a minimum of 1000 by two track approach of reducing unnecessary work content and introducing 5-10% same day let target for local staff. Void cost savings of 3.8M and a potential void loss saving based on a reduction in turnaround time of a week 380K We have a team of staff from across the business leading this project. Approach not a Standard What is the future void work content Safe, Clear, Clean Immediate lettability work requested by applicant to accept property MOT post void to pick up any outstanding repairs Component replacements, if necessary, completed within 8-12 weeks of tenancy start date by Evolves Planned Team Examples The following pictures have been taken in void properties where this new approach is to be trialled, the initial void surveys where in excess of 1000 & 2500. Works which would previously have been undertaken as standard i.e. removing adequate tiled flooring in the kitchen at a cost in excess of 600 will no longer be completed. Window blinds & carpets etc. will be gifted to customers reducing clearance costs and providing the customers with the option to retain fittings left by the previous tenants. 27 Tobruk Rd Original void cost: New approach cost:444.73 23 Derma Rd Original void cost: New approach cost: 237.56 329 The Glen Original void cost: New approach cost: Before Pictures 329 The Glen After Pictures 329 The Glen How the savings were achieved.. Original WorksRevised WorksSavings 7 Internal Doors2 Internal doors & repairs to others Remove kitchen floor tiles (ACM) Flooring intact and safe so left in situ New kitchenExiting units repaired/replaced Decoration throughoutNo decoration completed575.26 Questions and Comments