41. Tenth supplementary memorandum
submitted by HM Prison Service, Home Office
PRISON SERVICE
HQ REVIEW OF
INDUSTRIES: PROGRESS
UPDATE ON
RECOMMENDATIONS AS
AT
2 DECEMBER 2004
Introduction
The review of prison industries was undertaken
as part of the wider review of Prison Service headquarters. The
Prison Service Management Board accepted all 44 of the reviews
recommendations and agreed a detailed implementation plan.
Summary of progress against recommendations
2. The target date for implementing all
recommendations is 31 March 2005, though many of the actions will
continue beyond that date. The attached table (Annex A) indicates
the progress that has been made against each recommendation—broken
down into 27 separate workstreams.
3. Progress has been made against all 44
recommendations. Two recommendations (on splitting the material
budget between purchased goods and materials and providing additional
clothing and textile workshops) have not been implemented following
further examination.
6 December 2004
ANNEX A—CHECKLIST
OF PROGRESS
AGAINST RECOMMENDATIONS
Statement of Purpose For Prison Industries Recommendation
(1)
To remove confusion over why we have prison
industries and to give them clear direction; the objectives of
prison industries must be clearly stated. Early action should
be taken to promulgate a Statement of Purpose for prison industries
against which future activities can be assessed and evaluated.
(Page 24)
Implemented. The statement forms the starting
point for all prison industry strategies and policies and has
been incorporated into the revised draft performance standard
for industries. Signs displaying the statement of purpose have
been produced internally and should be on display in all workshops.
Annual material budget Recommendation (2)
FC&A, in conjunction with Planning Group,
should allocate funds to ESS[29]
for the materials budget at the beginning of each financial year
based on the average predicted prisoner population for that year.
(Page 57)
Implemented—this is continually monitored.
Budget for purchase of finished goods Recommendation
(3)
The raw materials budget and the funds currently
retained by ESS for purchasing finished goods should be separated.
The method of distributing funds for the latter should be considered
by FC&A[30].
(Page 57)
Not implemented. The proposal to split the material
budget between purchased goods and materials was considered to
be too restrictive and did not allow for the flexibility required
to meet customer supply requirements. ESS continually reviews
the material budget ensuring that funding is allocated to meet
the central purchase of materials and finished goods. ESS has
also moved from a twice a year allocation to establishments of
raw materials to a three times a year system. This will lead to
improve the allocation of funding for local purchases.
Setting up Hard Charging Recommendations (4, 30,
31, 32)
Full hard charging based on the cost of materials
and a financial incentive for production should be introduced
for the internal market, on a phased basis, with clothing and
textiles being charged first, followed by the rest in the following
year. (Page 55)
A small range of high consumption goods are
being piloted for hard charging this financial year. Evaluation
report with recommendations due to be complete early 2005.
Setting up Industries Management Board Recommendation
(5)
An internal Industries Management Board with
representatives drawn from the operational line should be established
to govern the operation of industries. (Page 28)
Implemented
Setting up Industries Advisory Group Recommendation
(6)
An Industries Advisory Sub-Group should be set
up with membership comprised of non-executive members from private
sector industry, and representatives from within prison industries,
to ensure that prison industries keep in line with developments
in the modern labour market. (Page 28)
Implemented
Make or Buy Process Recommendations (7, 8)
The Policy Section of ESS should manage the
Make or Buy process taking into consideration:
— support of prison industries strategy;
— total cost of manufacturing compared
to the purchase price; and
— the cost of providing alternative
occupation for prisoners. (Page 62)
Implemented and ongoing—process in place
using standardised format. All clothing and textile, woodwork
and engineering products due to be completed by end of year.
Internal market mandatory purchase Recommendation
(9)
Where a decision is taken for the Service to
make a product its purchase by establishments should be mandatory,
thereby ensuring that prison workshops have a continuous supply
of work. (Page 62)
Implemented and ongoing. Prison Service Instruction
23/2004 (Hard Charging) has started this process by making the
three products currently being piloted mandatory purchases. The
report on the hard charging pilot is due to make its recommendations
in January 2005, which will confirm whether on not to expand the
range of mandatory purchased items.
Stock responsibility & control Recommendation
(10, 11)
The Head of ESS should take responsibility for
ensuring that adequate stock levels are maintained at Branston.
(Page 73)
Implemented. On target to reach agreed stock
levels. Processes in place to ensure production varied to ensure
sufficient stock.
Capital and modernisation equipment Recommendation
(12, 13)
ESS should compile and monitor all large industries
equipment items, and from this database and other information
should constantly plan for a modernisation and replacement programme.
(Page 76)
Implemented and ongoing. A capital review is
underway to identify all plant and equipment used in industries.
Capital modernisation and strategic plans across all sectors due
by end of year.
When new or replacement equipment is allocated
to establishments it should be accompanied by an analysis of the
installation and expected maintenance costs. (Page 76)
Implemented
Management information & Industrial Performance
Recommendation (14, 16)
A balanced or weighted scorecard approach should
be developed for monitoring the performance of prison industries.
This should be worked up with close involvement of Planning Group,
and should include consideration of how management information
should be collected, shared and acted upon. (Page 79)
New approach developed—due to be implemented
before end of the year.
Proposal to close prison workshops Recommendation
(15)
With the exception of short-term operational
exigencies, proposals to close prison workshops must be submitted
to the Industries Management Board for a decision. (Page 28)
Implemented. Prison Service Instruction 38/2004
(Workshop Closure) was issued on 1 August 2004. This instruction
made it mandatory that Governors had to consult and seek agreement
before any workshop closure or significant re-designation.
Prisoner Employment in Workshop Recommendation
(17)
Consideration should be given to using prisoners
in a more constructive manner in workshops, eg administrative
and statistical tasks, and in warehousing functions such as storekeeping
and forklift truck driving. (Page 23)
Ongoing implementation. There is increased evidence
of prisoners being given roles as described in the recommendation.
There is however potential to develop this further.
IPP Audit Challenge Recommendation (18)
An audit should be carried out (by a small team
drawn from ESS staff) to establish the accuracy of the FY2002/3
IPP submissions. The IPP submissions should be compared to the
outturns both in terms of regime figures as well as the financial
figures. If, as the team suspects, the figures are not robust,
the instructions on completing IPP9s should be reviewed and the
returns for FY2003/4 amended to reflect reality. As these figures
are part of the process used in deciding the levels of raw materials
budgetary allocations it is essential that they are as accurate
as possible, and therefore this is a crucial recommendation. (Page
26)
Implemented. The review has been completed and
resulted in a recommendation to replace the planning system. See
recommendations 14 and 16 for subsequent actions.
Quotes for Contract Work Recommendations (19,
34)
ESS should remind establishments of the need
to ensure that quotes for work follow central guidelines. ESS
should ensure that the guidance on pricing for work is reviewed
and updated. (Page 26)
Establishments should ensure that Government
Accounting rules are followed when manufacturing goods for external
sale (Page 66)
Both implemented. Guidelines for the use of
standard conditions of sales and service have been issued to the
operational line and HQ staff. The costing and pricing guidelines
for prison industries agreed between ESS and FC&A were issued
through an ESS bulletin on 13 August 2004.
Setting up Policy Team Recommendations (20, 21)
A small policy team should be established within
ESS (responsibilities are outlined on page 33 of the review).
The reporting line for the policy team should
be reassessed six months after the policy team is in place.
Both implemented
PS Business Improvement Policy & Status Recommendations
(22, 23)
The proposed Policy Team in ESS should prepare
a PS Business Improvement Policy. Each establishment with industrial
workshops should be given the opportunity to introduce any relevant
parts of the Policy. Any internal auditing of adherence to the
Policy should fall to the local audit team. Updating the Policy
should fall to the policy team in ESS but any accreditation to
ISO standards should be for an establishment to decide. The establishment
would then be responsible for providing any resources necessary
for such accreditation including the provision of any additional
auditing which would have to be provided externally. (Page 35)
Implemented and ongoing. Prison Service Performance
Standard 12 reviewed and refocused on prison industries. A complete
evaluation report on business improvement systems is due to be
conducted by January 2005.
Evaluate ESS relocation to Branston Recommendation
(24)
The Review Team recommends that a thorough costing
exercise be undertaken in conjunction with Estate Management Group
immediately with a view to ESS being relocated to Branston at
the earliest opportunity. This has the potential for savings of
at least c£620k per annum. (Page 39)
Implemented. A further evaluation found the
business case for moving ESS weak and cost prohibitive. The potential
claimed savings did not stand up to further scrutiny.
Implement ESS Organisation structure Recommendation
(25, 29, 35)
The central support to industries (ESS) should
be redrawn along functional lines. This should improve efficiency
both at the centre and in the operational line and allow ESS to
look at business opportunities on a "whole Service"
basis. Cost savings of £600k are envisaged following its
full implementation. (Page 40)
Implemented. The central support to industries
has been redrawn along functional lines. All teams are now established
with job specifications, business plans completed and incorporated
into the business plan for Regime Services. There was a staff
cost saving for ESS to year end March 2005 of £281K—further
savings of £230k are due to be delivered in 2005-06.
Improving Feedback of Good Practices Recommendation
(26)
Consideration should be given to improving feedback
to the field and HQ and in generally promoting examples of good
practice, be it at establishment or ESS level. (Page 41)
Implemented—ongoing.
Review Engineering Section Recommendation
(27)
Further work should be undertaken to assess
the value of splitting the Engineering team from the remainder
of ESS. Subject to the outcome of that review the Engineering
team that provides work to the Property Services Group and to
Establishment Works Departments could be transferred, along with
their workshops and their staffing and material budget to Property
Services Group. In this way essential security related work could
be given the priority it deserves. (Page 42)
Implemented. Further review completed. Engineering
Production Team remains within ESS.
Review Workshop Activity Logistical Difficulties
Recommendation (28, 41)
There should be a comprehensive review of stores
and logistics.
The Head of ESS should examine workshop activity
where there are particular logistical difficulties. (Page 83)
Implementation started and ongoing. This work
has been largely subsumed into the much wider review of logistics
within the Prison Service. However steps have been taken to reduce
logistic costs where possible—for example introducing flat
pack furniture products.
Additional Clothing and Textile Workshops
Recommendation (33)
The Service should invest in additional workshops
(and machinery) for clothing and textiles in order that a greater
proportion of the needs of the Service can be met. If agreed,
ESS should take this forward as a matter of priority. (Page 64)
Not implemented. This recommendation was re-evaluated
after the implementation of a number of other key recommendations—such
as the impact of the stock reduction strategy and the hard charging
pilot—resulting in there being insufficient work to warrant
opening more clothing and textile workshops.
Review Stationery & Catalogue Book 340
Recommendations (36, 37, 38)
A review of Book 340 should be conducted to
ensure that all stationery items within the document are still
used by the Prison Service, all items are "owned" by
part of the organisation, and that the minimum order levels are
appropriate. (Page 71)
Implemented—ongoing. Over 25% of stock
items have been reduced with the review process continuing until
the end of the year.
Reintroduction of the Manufacturing clerk's courses
Recommendation (39)
The manufacturing clerk's course should be reintroduced,
especially if hard charging is introduced. (Page 75)
Training requirements have been identified.
Course curriculum will be identified in the new year. A meeting
has been arranged for the 11 January to begin designing the course
curriculum with a view to being piloted in the new year.
Reintroduction of Industries Managers Workshop
Recommendation (40)
The reintroduction of an Industrial Managers'
Conference on at least an 18 monthly basis should be considered—attendance
by representatives from appropriate outside industries would be
advantageous. The Head of ESS should chair the conference. (Page
75)
Implemented. The first Industries Workshop was
held in March 2004 and was well received. Future conferences are
likely to be held every two years.
Prisoner Skills Progression Activities Recommendation
(42, 43, 44)
The new Policy Team in ESS should be tasked
with devising a system of progression designed to provide all
prisoners with the skills that will allow them to progress within
a workshop whilst addressing their needs. (Page 84)
Implemented and ongoing. Regular meetings are
now taking place with prison based Heads of Learning & Skills
to promote formal training activities in the workshops for all
groups of prisoners. A strategy has been developed to formalise
the learning and skills training that takes place in prison workshops.
The strategic reviews of all industry sectors—due to be
completed by the end of the year—will include a focus on
short-term prisoners and what might be possible with prisoners
who do not stay long in prison. We are also piloting how we can
better link resettlemnt outcomes and training to workshop activities.
Where Governors set up a workshop that employs
prisoners in an activity that meets the restorative justice agenda
they should recognise that whilst the work may not cover all the
costs there is an added value that should be accepted.
Implemented—this view appears to be widely
accepted.
29 ESS stands for Enterprise and Supply Services-the
central Prison Service Unit responsible for prison industries. Back
30
FC&A stands for Financial Control and Accountancy Unit. Back
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