2005 Analyst
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A
Business Process
Improvement:
Is There Really A Choice?
Improvement:
Is There Really A Choice?
Ralph Cleveland
Eric Martinez
2005 Analyst
Conference
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Impossible Goals
ü
Eliminate low-value task-oriented work
ü
Automate utility functions to eliminate paper
across the business
across the business
ü
Achieve first-quartile benchmarks for corporate
functions
functions
ü
Eliminate the typical service center structure
for utility operations
for utility operations
P
The utility of the future…
2005 Analyst
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The Global Economy
2005 Analyst
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n
Faster turnaround using time
zone differences (US 10-12
hrs)
zone differences (US 10-12
hrs)
n
Ability to implement a 24X7
service model
service model
n
Established methodologies
and processes for better
performance
and processes for better
performance
n
Well-defined quantifiable
quality and process metrics
quality and process metrics
n
Access to highly qualified
skill pool and robust project
management skills
skill pool and robust project
management skills
n
Large proportion of
SEI-CMM, COPC, ISO9001
certified service providers
and 6-sigma practitioners
SEI-CMM, COPC, ISO9001
certified service providers
and 6-sigma practitioners
Quality &
Productivity
Productivity
Time
Cost
n
Significant net cost savings on
labor and skills intensive
activities and processes
labor and skills intensive
activities and processes
n
Additional benefits through low
cost process improvement,
consolidation and automation
cost process improvement,
consolidation and automation
n
Wide scope of functions -
low to high value skills
low to high value skills
n
Offshore opportunities span
entire value chain across
industries
entire value chain across
industries
n
Large, qualified and young
workforce
workforce
n
Easy availability of skills
n
14 million graduates, 1
million technical resources
million technical resources
Scope
Scale
Off-Shoring Makes
The Impossible Possible
The Impossible Possible
2005 Analyst
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Majority of
AGL
back-office
functions are
inefficient
when
compared to
global
benchmarks
AGL
back-office
functions are
inefficient
when
compared to
global
benchmarks
AGL : $10.80
Source: Hackett Group study
Back Office Inefficiencies
2005 Analyst
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Paid Time 2,316
Paid Time Off 439
Total Avail Time 1,877
Non-Wrench Time 535
Travel Time 585
CGI On-Site Time 46
Repeat Visit Time 76
•
Available time 635 hours or 34% of total time
•
Emphasis on non-wrench time (training, shop time, etc.)
Operational Efficiency: Improve Wrench Time
2005 Analyst
Conference
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Improved Resource
Planning
Planning
Efficient Routing
Improved Information
Flow
Flow
Time Tracking
Inventory Management
Resource De-Coupling
Pre-fab Assemblies
Materials Kitting
Improved Work
Design
Design
Overall Resource
Effectiveness
Effectiveness
Enabling Tools
Right Resources
Business case (A+B)
Resource and Work ManagementSystemBenefits
2005 Analyst
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Resource and Work Management
2005 Analyst
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Opportunity of Optimized Routing
2005 Analyst
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MDT, phone and
portable printer
portable printer
Lessons Learned In Europe
Developed ruggedized cell phone/PDA (CF P-2)
with Panasonic that provides job dispatch, contact
info, job descriptions, and GPS routing.
with Panasonic that provides job dispatch, contact
info, job descriptions, and GPS routing.
2005 Analyst
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Corrosion Monitoring
Leak Survey
Underground
Maintenance
We need data (intelligence) to manage the totality of our asset life
cycle and the required work and resources that install, monitor,
and maintain those assets.
cycle and the required work and resources that install, monitor,
and maintain those assets.
Predictive/Preventive Maintenance
Reactive/Corrective Maintenance
Maintain Assets Smartly
2005 Analyst
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•
Identify 5-6 High Potential Gas Distribution Suppliers
•
Understand Capabilities of Each Supplier
•
High Level Quality Review
•
High Level Business Understanding Including Export Experience
•
High Level Technical Capabilities
•
Determine If Viable For Additional Consideration
China Visit Goals
2005 Analyst
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Illustrative Categories
Global Opportunity
No Current Global Opportunity
2005 Analyst
Conference
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Process Safety Mgt
Operations Risk Management
Operational Excellence
Total Productive Maintenance
Project Management
Business Process Excellence
Housekeeping and 5S
Building A Culture That Does It Right!
2005 Analyst
Conference
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WMS G2
Q1
2nd Half
1st Half
Q4
Q3
Q2
1st Half
2nd Half
2006
2007
2008
Major IT Projects
No Paper - No Building – Virtual Service Center
WMS B
Other Corporate Initiatives
AD/CMA
WMS C
GIS
Engineer
Re-Org
Re-Org
No Paper
No Buildings
Functional
Management
Management
Standardization
PS Upgrade
AMR
ETG
ETG
Blended
Workforce
Workforce
WMS
ETG
ETG
Continuous
Improvement
Improvement
Knowledge
Management
Management
Supply
Chain
Chain
AD/CMA
50% Less Paper
80% Less Paper
Records
Management
System
Management
System
No Paper
Budgeting
Tool
Tool
AMR
AGLC
AGLC
Auto
Dispatch
Dispatch
On-boarding
Automation
Automation
Utility Back
Office
Centralization
Office
Centralization
Financial
Re-Org
Re-Org
CCC1
Re-Org
Re-Org
Credit &
Collections
Re-Org
Collections
Re-Org
75% Less Buildings
25% Less Buildings
No Buildings
CCC2
Re-Org
Re-Org
Corp
Re-Org
Re-Org
ETG Labor
Agreement
Agreement
VNG + AGLC
Labor
Agreement
Labor
Agreement
CMA 2
WMS
Interfaces
Interfaces
Timeline