1. Portfolio/Number/Name:ERD/C1 - Efficiency savings in Forestry Commission Scotland. |
2. Programme/Activity: There are currently 2 projects making up the Forestry Commission efficiency programme: - Procurement, a joint project with Forestry Commission GB, England and Wales;
- Operations Review, which involves operational planning being carried out on a regional rather than local basis and the shared supervision of operations by local units.
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3. Efficiency | 3.1 Current target; £m | | 2005-06 | 2006-07 | 2007-08 |
Cash | 0.2 | 2.7 | 4.2 |
Time | 0 | 0 | 0 |
3.2 Efficiencies delivered; £m | | 2005-06 | 2006-07 | 2007-08 |
Cash | 0.6 | - | - |
Time | 0 | - | - |
4. Accountable Officer for delivery | Richard Wakeford |
5. Project Manager | Paul Snaith |
6. EGDD Portfolio Manager | Angus Gardner |
7. Description of efficiency and actions to be taken | 7.1 What is the efficiency improvement? How will the efficiencies be made? The efficiency improvement from the operations review will be achieved by ensuring that the same operations are carried out for less resource. The saving will come from a reduction in staff costs. The efficiency improvement from the procurement project will come from purchasing the same number of goods for less or from purchasing more goods and services for the same. There will also be savings from improving the procurement process. This will be achieved through better procurement practices and securing price reductions. |
7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement? The restructuring exercise from the operations review has been successfully implemented and the staff redeployment and new duties took effect from the 1 April 2005. In order to secure the delivery of the procurement efficiencies, a procurement officer has been recruited and a procurement strategy is being developed. |
8. Associated costs | 8.1 Are there any development or redundancy costs associated with the delivery of this efficiency? There are no redundancy costs associated with the Operations Review. All posts are subject to redeployment in other areas. The procurement project involves the recruitment of a procurement professional. None of these costs have been netted off from the efficiency savings since these projects will also deliver service improvements. |
9. Measurement | 9.1 What are the inputs that will be measured? The input being measured for the operations project is the expenditure on operations (planting and harvesting timber). For the procurement efficiencies, the unit cost of the identified commodity or service will be monitored to measure any reduction in cost taking place. Staff resource on procurement activity will also be monitored. |
9.2 What are the outputs that will be measured? The output being measured for the operations project is the volume of timber harvested and planted. For the procurement efficiencies, the volume of purchases made in the commodity or service will be recorded. |
9.3 What is the baseline for inputs and outputs? The baseline for inputs in the operations project is expenditure on operations and the volume of timber harvested and planted is the baseline for outputs in 2004-05. For the procurement efficiencies the inputs and outputs for new commodities and services will be compared with 2004-05 derived expenditure on those commodities and services to determine the level of efficiencies delivered. |
10. Quality cross-check | 10.1 What quality indicators are being used to ensure that quality of service is maintained or improved? There are quality indicators for the operations review. However, the quality of timber produced continues to meet market requirements. For the procurement efficiencies, the quality of the commodity or service purchased will be monitored to ensure that the commodity or service purchased meets the specified requirement. |
11. Monitoring | 11.1 What are the arrangements for monitoring the delivery of efficiencies? Existing financial monitoring procedures will be used to measure progress on a monthly basis. These will be reviewed quarterly to ensure that efficiency targets are being met. |
12. Reporting | 12.1 What are the arrangements for reporting the delivery of efficiencies? The Head of Corporate Services is responsible for making finance reports to the Forestry Commission Board, including the delivery of efficiency savings. |
13. Dependencies | 13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved. None of these efficiencies are dependent on legislation but internal structural changes were necessary for the delivery of the savings. |
14. Use of efficiencies | 14.1 How are the efficiencies released from improvement activity being used to improve front-line services? Efficiencies released from the activities described above will be used to resource work that meets the Executive's wider priorities on social and environmental activities such as the Woods In and Around Towns initiative. |