Case Study 5 - Road and Rail Infrastructure

 

Customer/Productresume: AWS Customer already use AWS for repair services. They had high cost facility in the midlands that they wanted to close to realise capital from the asset. Whilst most of the activities could be transferred into the existing businesses, they had no solution to re-locating the repair department. The repair department had 4 electronic repair engineers and covered 55 square metres of workshop and component stores. The products were largely CCTV’s, telecommunications and traffic management systems.

AWS Involvement: The AWS Customer were already aware of the AWS dedicated repair facility and asked them to tender for the work including the transfer of 2 staff under TUPE. They had three main objectives:

  • Transfer all repair work to AWS – repairs were circa 150 units per month
  • Take the two engineers under TUPE
  • Complete the exercise within 6 months to align with closure of facility

AWS had some experience of this product and with two staff transferring under TUPE the issue was not the knowledge transfer. The physical transfer of equipment and setting up facility was the significant challenge, especially as existing site (55 square meters) needed to go into 25 square meters.

Immediate problems:

  • Creating seamless transition over 6 month period so customers did not have deterioration in performance
  • Reducing space requirements
  • Setting up and negotiating TUPE
  • Redesigning the invoice and repair returns process/procedures
  • Physical transfer of all equipment

Solutions provided by AWS:

  • Dedicated engineer to manage transition
  • Setting up project meetings to cover transfer of :
    • Equipment
    • Logistics
    • People
    • Technical

Benefits:

  • Realisation of asset - This enabled AWS Customer to vacate existing factory and sell site.
  • Labour Cost Saving - 2 direct heads transferred under TUPE (Saved £80k redundancy cost)
  • Improved Performance - Turnaround times improved existing 38 day turnaround reduced to 28 day turnaround (26%)
  • Space and other savings - 55 square meters reduced to 25 square meters (54%). Indirect savings: Stores, Logistics, Transactions (PO’s)
  • Customer satisfaction - Success with this project lead to second outsourcing contract

 

Case Study 1 - Design for Manufacture and Test (DfM/DfT)  |   Case Study 2 - Value Engineering (VA/VE)  |   Case Study 3 - Cost Reduction (Re-engineering)  |   Case Study 4 - Outsource of MRO (Complex Satellite System)  |   Case Study 5 - Road and Rail Repair Transfer (TUPE)  |   Case Study 6 - The Benefits of Outsourcing Repair Operations