Fusion21: 2006 Gold Award winner
About Fusion21
Fusion21 is a partnership of six Merseyside housing associations – Riverside, Arena, Plus Housing Group, Knowsley Housing Trust, Maritime Housing, Helena and South Liverpool Housing – plus Knowsley Metropolitan Borough Council. It was set up in 2002 to control spiralling construction costs through the combined muscle of the seven members, which gives them control over the supply of labour and materials. It also addresses local skills shortages.
The award-winning project
The partnership established a seven-year programme for a £225 million upgrade of homes across Merseyside. A total of 55 projects totalling £42 million will be delivered this financial year, followed by 48 projects with a combined value of £43 million next year. Efficiency gains in 2005 totalled £2.98 million (9.6%). In 2006 the partners expect efficiency gains of 17.5%.
The programme initially focused on four key areas: kitchens, bathrooms, boilers and windows. Other business areas, such as gas maintenance and consultancy frameworks, were introduced following success in delivering the initial work streams.
The Fusion21 approach replaced traditional procurement processes with a “closed loop” system which harnesses sophisticated sourcing procurement and strategic cost management techniques to manage costs.
What the partnership calls “work smoothing” – ironing out peaks and troughs in work programmes – has brought unforeseen benefits. Two window manufacturers have established permanent Fusion21 production lines and a German manufacturer is going to move boiler production to the UK after recognising the potential of Fusion21’s business.
The partnership has developed its own direct supply of labour to match highs and lows in its planned maintenance through a construction skills training programme that retrains local unemployed people. It explores potential new areas of operation and is working on disability adaptations and the installation of digital TV.
What the judges said
“The Fusion21 partnership has raised the quality of the work by using its large buying power,” judges said. “Through its skills programme it has created new jobs and widened the skills base. It is equipped to adapt constantly to address new construction challenges.”
The expert view
“Fusion21 has a very detailed and comprehensive understanding of the cost base and has produced demonstrable and significant savings and produced quality products. At the same time it has a satisfied customer base. Its use of IT to manage and control the process is impressive,” judges said.
“After initial problems, work smoothing between clients results in continuity of work for contractors and suppliers and the whole team is working together to ensure success,” they commented.
“The model addresses cost issues and, more importantly, questions of sustainability. It is being replicated in other parts of the country.”
Further information
Visit Fusion21's website for further information.
