Appendix 2: Existing Service Efficiency Review

18/11/2013

Appendix 2: Existing Service Efficiency Review
1. This is on track to deliver £0.9M of the £1.1M of savings targeted from this
project ahead of schedule. Further work is being undertaken to close the gap
and it is anticipated that this will be completed ahead of the target dates in
2014/15 and 2015/16.
2. To support the delivery of this project up to £170K investment will be required
to support one off project costs, in-cab technology and resourcing costs
however this will be funded through in-year savings which have been brought
forward ahead of schedule.
3. Instituting a rolling Fleet replacement programme: This will significantly reduce
down time, management time, missed bins, rework and related customer
complaints. The service currently experiences about 10% of its fleet breaking
down on a daily basis due to the ageing nature of the current fleet which is
beyond the recommended life for the vehicles. Already quantified are £168K
of savings related to this specific measure however we anticipate the actual
benefits being realised from this investment being significantly higher and
helping to close the gap in the £2.5M savings target.
4. Please note while initial purchase will be through capital it will be financed
through the existing revenue budget provision.
5. Risk Implications
Top Risks for the Efficiency Project are Capacity, Ambitious Timescales,
Inability to achieve forecast savings, Public Resistance to Change potentially
undermining long term company viability and delivery of anticipated benefits.
Strenuous efforts are being made to mitigate these while balancing the need
to ensure service continuity as the top priority.
6. Legal Implications
No legal implications currently anticipated other than need to comply with
OJEU procurement regulations in relation to Fleet purchase.
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