Case Studies
<img src="../../products/gleneagles.jpg" align="left" class="article_img"> <p>Gleneagles is one of Scotland’s most luxurious 5 star resorts and a member of The Leading Hotels of the World. Set in 850 acres of Perthshire countryside, it is home to three of the top Scottish championship golf courses and a wide range of exhilarating outdoor leisure activities.</p>
Gleneagles is set to host the Ryder Cup in 2014 on the Jack Nicklaus created PGA Centenary Course, and plays host to one of the leading European Tour events the Johnnie Walker Championship at Gleneagles, on an annual basis.
In 2004, Gleneagles had a very mixed and aged fleet of machines, which was being maintained by their own two engineers, and used by a staff of 57. There had been some investment previously in the structure of the workshop facility but none in terms of the processes and procedures required to run a workshop of this type.
No specific monitoring of the fleet was carried out and this was having a detrimental effect not only on the machinery being used but also on the morale of the staff, who found it difficult to carry out their duties while machines kept breaking down. Health and Safety compliance was also an area of concern, again because of the lack of processes in place to monitor any recurring issues, and to ensure the ongoing servicing and compliance of the fleet. Gleneagles had a reasonably large, but in certain areas under utilized fleet, as a number of machines were retained as back up machines because of the downtime previously encountered.
Significant management time was also employed on the running of the workshop, dealing with the issues and implications of downtime from the fleet, as well as the maintaining of certain supplier’s relationships and in particular the procuring of spare parts and the administration required. “At one point I found myself managing and purchasing parts for the workshop, which was never going to be efficient use of my time” says Scott Fenwick, Golf Courses and Estates Manager at Gleneagles.
During 2003 and early 2004, SGM had provided Gleneagles with a proposal to develop the workshop facilities into a Centre of Excellence. “At that time SGM came to us with a proposal to take over the workshop at the Central Compound, and instigated a programme of improvements to both service and fleet maintenance levels and in the workshop facilities” says Scott.
A number of improvements were made immediately when SGM were appointed. Work commenced straight away on the internal layout and external area around the workshop, which brought instant discipline and boundaries into place. Previously there had been no workshop processes or controls in place for the engineers to work to, so SGM immediately set about bringing the workshop at Gleneagles in line with others, in order that it could properly monitor and measure the work that was being carried out.
These processes allowed SGM to instantly understand the issues surrounding the fleet, but more importantly address all the previous Health and Safety concerns that the hotel had, and record accurately how it was able to rectify.
The Stockport borough stretches from the borders of the Peak District National Park to cosmopolitan Manchester, and is easily accessible by air, road, or rail, making Stockport an ideal place to live, work and visit. Many thousands of people benefit from the services provided by Stockport Metropolitan Borough Council.
More than 291,000 live in the borough, and many more look to Stockport for employment or entertainment. With a net annual revenue budget for 2007/08 of £194.9m, and a full and part-time staff of around 11,000 people, the Council is a major organisation and the biggest employer in the borough. It delivers a range of key services such as education, social services, housing, planning and transportation, community and leisure services, environmental health, and finance.
Previous to 2005 the council had purchased and maintained all of its grass cutting equipment in house, and employed 2 full time engineers to carry out servicing as required. The core fleet of grass cutting equipment was very aged and required significant investment to bring it in line with the changing market conditions and requirements of Health and Safety.
In late 2004 the council decided to test the market with a tender exercise to establish if there were any private organisations interested in providing the maintenance of the fleet as one of the engineers was retiring, and the other was being re-deployed within the council. The council also recognised the ongoing investment required in the fleet, and this also formed a key part of the tender submission. “the council required a partner to work with, who was flexible with their approach, but was offering both a quality and value for money service” says Michael Barton, , Stockport MBC.
SGM were awarded the contract in February 2005, to commence April 2005 for a period of five years with the possibility of a five year extension, and immediately set about developing the council workshop facility, and all the processes and procedures required to run an efficient and compliant workshop. “through the tender process, SGM clearly demonstrated its abilities to provide a competent service to local authorities, and through the initial period of the contract have delivered on the levels of service and promises made” says Michael.
At the start of the contract approximately 25% of kit was still Council owned and was to be maintained by SGM. This equipment would be replaced during the course of the contract as and when both parties agreed that it was uneconomical to repair, but whilst still on the fleet needed to have accurate service records and be fit for purpose. For the balance of the machines required by the council, SGM initially invested in excess of £500,000 and purchased a new fleet which consisted of 17 Hayter triple mowers, 4 Hayter gang mowers and 13 Dennis cylinder mowers.
In early 2006, the council set up a wholly owned subsidiary called Solutions SK, which was formed to provide a diverse range of services to the council, residents of the borough, other public sector organisations and private businesses. “Our mission is to deliver competitive, caring and responsive services. We are a reliable, trustworthy company that delivers quality, value for money services tailored to suit individual customer requirements” says Nic Cox, General Manager, Solutions SK.
With the council work now split between Solutions SK and Stockport MBC, who retained the parks and fine turf areas, this change meant that the machinery requirements had to change, and SGM had to demonstrate its flexibility with the supply of machines now to both organisations.
Clearly the management of both organisations had a number of issues to deal with internally, which meant that having a flexible partner such as SGM was vitally important during this time. “With a number of changes impacting the contract over the last few years, SGM have at all times reacted positively and effectively in assisting both ourselves and the council in facilitating any required changes. Having fixed costs with no hidden extras is important for us, particularly as we look to extend our workload with the addition of new contracts” says Nic.
At the start of 2009 machines owned by the council had reduced down to a level of under 5% of the total fleet, with SGM now employing 3 engineers and its Business Manager Eirian Roberts now working from the same depot within Stockport. Monthly meetings are held with the Council to discuss current issues, new developments and any new products SGM feel can bring additional value to the contract “We have been delighted at how the contract has developed over the years.
The contract has, we believe, succeeded because of the willingness of both parties to enter into a partnering relationship, which has encouraged openness and an appreciation of the changing demands both parties now face. We look forward to continuing to develop our partnership with the council and Solutions SK over the remaining period of the contract and beyond if at all possible” said Steven McInroy, Managing Director, SGM (UK) Ltd.
