Operational Excellence in Distribution – Project Contractors Meeting 28 th October 2015.

Operational Excellence in Distribution –Project

Contractors Meeting

28th October 2015

2

SEC Vision is to become a modern company with world class performance…

We serve our customers and country

by delivering world class power services

We serve our customers and country

by delivering world class power services

Serving two stakeholders: Our customers and society

Committed to improve

Long-term ambition tobecome world-class

Offering power and servicesin future

… and distribution wants to significantly contribute to this SEC vision through the Operational Excellence initiative

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Distribution business unit has selected ambitious targets for 7 KPIs to closely monitor its performance

O&M OPEX / KmOperations & maintenance operational expenditure in SAR per distribution network line km

SAIDI

NB CAPEX/ New Customer

SAIFI

R&I CAPEX / Additional MWh

New connection time

Average interruption duration per delivery point

New built capital expenditure in SAR per new customer

Average number of interruptions per delivery point

Capital expenditure (including reinforcement & integration) in SAR per additional MWh sold

Average time required to install a new connection

BU OPEX / MWhBusiness unit operational expenditure (excluding depreciation ) in SAR per MWh energy sold

KPIs Description

13%

22%

12%

18%

42%

59%

22%

Source: Arthur D. Little *2014 KPI Status according to final 2014 figures

Target till 2019

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The initiative will be split into 10 modules over a period of 12 months

Module Description

Connection procedure streamliningDefinition of streamlined connection process model to ensure safety and “first-time-right” milestones delivery

Life Cycle Management and Value-based maintenance strategy

Implement life cycle management and value based maintenance strategy for key assets to reduce TOTEX1) of key distribution assets

Technical losses reductionDefine implementable actions to reduce technical losses including installation points for meters and checkpoints to reduce losses

Asset management Policy and Strategy

Define Asset Management Policy & Strategy to set a financial and strategic framework for AM of all major asset classes

1

Outage Management: Contingency Planning

Develop plans and procedures maximizing operation continuity of critical assets2

Asset StandardizationDefine component standards, evaluate potential savings and propose conversion strategy to new technical asset standards

3

Planning ManagementDevelop and implement load forecast process & network loading model, secure quality & control of supplied materials and distribution equipment

4

Control Center structure improvement

Develop network operation strategy, define clear responsibilities between national grid and distribution control centers, provide control center org. structure including definition of procedures & processes

5

Power system protection, system operation & design

Develop Protection Strategy & Planning and Protection System Operation & Design to support functional protective relaying with minimum impact on grid reliability

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1

2

3

New asset service model development and roll-out

Develop new asset service model including measures to increase staff utilization, contractors management and call-centers performance and define the roll-out plan

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Connection procedure streamlining module will comprise of several activities

Module Main Activities Performed

Connection procedure streamlining


Technical losses reduction


Analyze root causes for large disparities in connection time across

Kingdom to be improved to achieve the targets.

Develop strategy to ensure safety and “first-time-right” for all

process steps and minimize overall number of steps (e.g. through

task bundling) and number of involved organization parts (ensured

end-to-end responsibility with right check and balance process).

Study the lack sides in the coordination with outside agencies (Utility

and other government agencies) and propose improvement to the

exiting communication means.

Finalize implementation plan including necessary tools, capacities

and capabilities.

Develop planning and construction ,procedures ,standards and

inspection procedures and forms needed for ( Network design,

planning, construction ) ,Programs and system Technology needed

from end-to-end responsibilities.

1


2

Asset Standardization3

Planning Management4


5


6

1

2

3


4

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Life Cycle Management and Value-based maintenance strategy module will comprise of several activities






Develop Value-based maintenance strategy for all asset, covering at

least asset health, maintenance cost, replacement cost, useful life

time.

Propose advance asset monitoring systems and real time condition

monitoring process including technology requirements and re-

evaluate based from existing technology in order to recommend

better and reliable solutions.

Identify best practice for maintenance. Including factors such as

improving the existing DMM’s to international standards and

developing the missing ones considering hot, humid, foggy and

dusty weather, maintenance strategy, risk assessments and

training.

Develop Roles, Polices, responsibilities, procedures and capabilities

needed for asset maintenance management and decision-making

structure, covering both strategic and tactical decisions.

1


2




5


6

1

2

3


4

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New asset service model development and roll-out module will comprise of several activities (1/2)





Asset management Policy and Strategy Activity-based analysis of field staff utilization, Field Force

Management to confirm the adequacy of the size of the manpower

to the assigned activates.

Research best practices on deployment models and assess

relevance for COMPANY.

Develop appropriate measures to increase utilization (e.g. task

bundling, one-man units, start from home and others) and

determined capability and technology gaps and shall develop

measures to increase field staff utilization in operations,

maintenance, and construction.

Define system for continuous auditing of resource utilization

improvements.

Perform analysis of best practice on field force management &

deployment models and assessment of their relevance for SEC and

alignment with new organization (operations, maintenance,

construction).

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2




5


6

1

2

3


4

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New asset service model development and roll-out module will comprise of several activities (2/2)






Develop the best practice for managing contractors, evaluate the

operation, construction and maintenance contractors

manpower ,call-centers complains requests, field force manpower

(COMPANY Inspectors, Contractors) and the best way to integrate

with financial department and other related Business lines or

Departments.

Develop Asset services Management performance assessments

and improvements with IP’s and KPI’s measures and alignment

with new organization and approved KPI’s.

Define IT system tools, programs, workflow, process, manpower

(work force) capabilities, training requirements needed to implement

the new assets services from substation to Customer Meter.

Review the current operation and maintenance contracts/

contractors practices across Distribution System Operators (DSOs)

and all the procedure related to contracts/ contractors and analyses.

Develop strategy to ensure safety and “first-time-right” for all

process steps and minimize overall number of steps (e.g. through

task bundling)

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2




5


6

1

2

3


4

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2 Project Organization

month

To ensure project success, work on the streams will be done with close cooperation with our contractors

Our key focus for improvement:

Higher harmonization of processes, procedures and standards across regions

Close monitoring and benchmarking of costs and network reliability

Strong emphasis on Quality and HSE

What this means for you as a contractor:

New world class processes and procedures will be implemented across multiple areas

We will introduce new condition based maintenance methods

We will enhance our IT support especially in the field force management area together with clear time norms

and utilization reporting

There will be new technical standards implemented in the future

Optimization of connection processes and time norms will be one of the key customer oriented efforts

There will be a new outsourcing/ insourcing model across multiple areas

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Each module delivery will be supported by experienced consultants and international experts

Consulting teamExpert team SEC team SEC Partners

Subject matter experts nominated by leading western utilities

Management consultants with utilities transformation programs management

Selected top performers and technical experts

Role: Provide technical

expertise in the specific areas of asset management and asset service

Share best practices and benchmarks

Transfer of technical expertise from leading DSOs and their service companies

Role: Project management &

leadership according to work-plan

Overall responsibility for high quality project deliverables

Coordination of experts, transfer of knowledge and best practices

KPI monitoring

Role: Understanding of recent

practices in SEC and data collection

Definition and full ownership of final recommendations

Responsibility for implementation in their geographical area

Communication with respective geographical units

Role: Support SEC team on

implementation of recommendations

Support initiative team on understanding of roles and policies

Contractors and suppliers

Operational Excellence in Distribution – Project Contractors Meeting 28 th October 2015.

Documents

Transcript of Operational Excellence in Distribution – Project Contractors Meeting 28 th October 2015.