Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Housing and Public Protection):
16th October, 2008
Report of the Director of Environmental and Economic
Regeneration
Review of In-House Stores and Support Function
Purpose of the Report
1.
To apprise Members of the Housing and Public Protection Scrutiny
Committee on progress in respect of the TRIBAL Action Plan Task
(R40) BMDSOR5 - Review In-house Stores and Support Function.
Recommendations
1.
That progress to date is noted and the future actions as detailed
in this report are endorsed by the Housing and Public Protection
Scrutiny Committee.
Reasons for the Recommendations
1.
To identify progress to date and obtain Members approval for the
further development of the Stores services to Building
Services.
Background
2.
The Council operates a centralised Stores facility at the Alps
Depot that is used by a number of the Council's departments
including Building Services. A review by TRIBAL Consultants
of the Building Maintenance Direct Services Organisation (DSO) was
submitted in January 2006 included a section on materials and
Stores.
3.
This report concluded that any Stores function should ensure that
minimal capital is invested in materials whilst still maintaining
an effective Stores service. Furthermore regular dialogue was
required between the DSO and the Stores so that issues of concern
could be addressed.
4.
It was also identified that the Stores operated a computerised bar
code system that enabled an audit trail, the triggering of re-order
levels and ensure all materials received were to a relevant job
number.
5.
It was noted that the 2004/2005 overhead costs of the Stores
function was 15.2% whereas the Audit Commission upper limit
benchmark was 15% of the value of Stores/materials issued.
This specific benchmark was indicative of value for money.
6.
To address these issues it was recommended that a cost benefit
analysis of Stores be undertaken to identify that value for money
is being achieved or that a viable alternative should be
considered. Other initiatives such as providing staff with a
builders/credit card and vehicle stock was also suggested.
The review of the vehicle stock was to ensure that adequate and
appropriate imprest stock was being held in order to increase the
number of jobs completed at the first call.
Relevant Issues and Options
7.
A number of internal reviews and audits have been undertaken over
the last six years, these have included:
·
Procurement Review in November 2002
·
Systems Audit (VFM study by Internal Audit) July 2003
·
Internal Audit in 2005
·
Fuel Audit in 2006
·
Internal Audit in 2008 (currently ongoing with final report
pending)
·
Internal review groups considering builders/credit cards; local
suppliers support network;
·
Imprest stock management and control and schedule of rates
review.
8.
These audits have confirmed the service to be generally
satisfactory and associated action plans have resulted in the
following improvements:
·
The Stores Staff structure has been reviewed with resultant
efficiency and financial savings.
·
A comprehensive procedures manual has been produced and ISO
90001:2000 accreditation was achieved in 2006.
·
The material stock list has been reviewed, rationalised and is
continuously monitored.
·
Improved focus and co-operation regarding procurement has been
implemented.
·
The fuel procurement and management procedures have been
improved.
·
A customer complaints system has been adopted that promptly
investigates any complaint with investigation outcomes
confirmed.
9.
In addition there has been a significant improvement in benchmark
performance in respect of the overhead cost of the stores
function. This has been reduced from 15.2% in 2004/2005 to
13.2% in 2007/2008, an overall improvement of 14% for this specific
benchmark performance indicator.
10. In line with these
previous audits and reviews a number of improvements designed to
complement the Building Maintenance Business Plan have been
identified and agreed. In order to monitor progress these
improvements will be included in the action plan and performance
indicators that are currently being developed. The specific
improvements relating to materials and Stores support include:
·
The introduction of controlled and managed imprest stock to vehicle
including a cost effective replenishment system.
·
The identification and utilisation of a network of local suppliers
for building maintenance procedures including credit card system,
integration with mobile working, management and control, audit
trails and probity checks etc.
·
Review of plant and equipment requirements considering provision of
in-house arrangements to achieve cost reduction and increased value
for money.
·
Review of schedule of rates to capture accurate materials
requirements for use in material delivery scheduling on just in
time principles.
·
New performance indicator to assess performance of materials and
Stores provision.
·
To continue to evaluate and review the option of outsourcing the
Stores service should the planned improvements not provide the
expected cost benefits and increased value.
Resource Implications (Financial and Employment)
11. There are no current
direct resource implications arising from this report.
Legal Implications (to Include Human Rights Implications)
12. There are no current
Legal Implications arising from this report.
Crime and Disorder Implications
13. Many of the services
specified in this report contribute significantly to the Crime and
Disorder agenda.
Equal Opportunities Implications (to include Welsh Language
issues)
14. There are currently
no Equal Opportunities arising from this report.
Corporate/Service Objectives
15. The provision of a
Building Maintenance service contributes to the Council's Corporate
priority of "to make the Vale a safe, healthy and enjoyable place
to live via good quality housing" and "to achieve a quality
environment via reducing energy use and carbon emissions in public
buildings and housing stock". The service aim of Building
Services is "to maintain safe, warm, dry and secure Council
buildings and ensure that materials containing asbestos are
assessed in public buildings". The introduction of these
measures also contributes to the corporate priority "to manage the
Council's workforce, money and assets efficiently and effectively
in order to maximise its ability to achieve its aims in a
sustainable manner".
Policy Framework and Budget
16. This report is
consistent with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
17. The appropriate
officers have been consulted. As this report refers to an
operational issue Ward Member consultation was not required.
Relevant Scrutiny Committee
18. Housing and Public
Protection.
Background Papers
None.
Contact Officer
Steve Morris - Head of Building and Vehicle
Services.
Officers Consulted
Operational Manager Strategy and Support
Operational Manager Building and Vehicle
Services
Principal Support Officer
Responsible Officer:
Rob Quick - Director of Environmental and
Economic Regeneration.