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COMPUTERISED PERFORMANCE MANAGEMENT SYSTEM FOR AN

ELECTRICITY DISTRIBUTION UTILITY


R. Seneviratne, Ceylon Electricity Board, 608, Galle Road, Ratmalana, Sri Lanka, rohanpseneviratne@gmail.com

Abstract which is the vertically integrated national power utility in


Sri Lanka.
Performance management is vital for an organization to
improve its efficiency and effectiveness. Many Western Province South 1 distribution Utility of CEB
Corporates in the world use Key Performance Indicators covers about 1230 km2 of land space which includes
(KPI) and Balanced Scorecard (BSC) techniques for the Ratmalana Airport, many important government and
performance management. However, it is not common to private sector organisations, industrial zones and provides
find a computerized Performance Management System electricity to about 275000 electricity customers. The
developed for a Distribution Utility based on KPI and major functions of the WPS1 Utility are selling electricity,
BSC principles for performance review and management. revenue collection, provision of new service connections,
development maintenance and operation of medium and
The author has innovated a comprehensive computerized low voltage network and attending customer needs. The
Performance Management System (PMS) for an electricity author of this paper heads the management team of the
distribution utility belongs to Ceylon Electricity Board WPS1 Utility.
(CEB), Sri Lanka based on BSC and KPI principles which
includes Performance Scorecard, Organisational KPI The management team of the WPS1 Utility formulated a
Catalogue, Dashboard, Portfolio of Initiatives, and Three Year Development Plan for the Utility in latter part
Initiative Catalogue. The PMS was developed based on of the year 2015 which envisages objectives, strategies
the organisational objectives identified for the Utility and and a comprehensive program to achieve the key
thereafter objectives were grouped under the four objectives of the WPS1 Utility during the years 2016,
perspectives of the BSC. KPIs were identified to measure 2017 and 2018.
the performance of each objective. Performance
Scorecard was created by pooling all KPIs together to In order to manage the activities of the Utility and to
review the performance of each KPI by means of manage the Three Year Development Plan, the author has
graphical representation. Thereafter Initiatives were developed the computerized Performance Management
identified to achieve each objective and Portfolio of System using BSC and KPI principles.
Initiatives and Initiative Catalogue were developed. The
computerised PMS facilitates users to toggle between the 2. Performance Management
Performance Score Card and the Initiative Portfolio so
that performance review and performance management Performance management process is an interactive and
could be carried out easily at the same time. PMS on-going process consisting of performance planning,
facilitates making informed decisions to improve strategy execution, performance measurement, review,
efficiency and effectiveness of the Utility. communication, learning and improvement. The
importance of performance management is to align all
1. Introduction employees from different levels, by communicating
exactly what matters and what the organization expects
Electricity distribution utility needs to continually improve from them. It should be adopted top down, inspired from
its efficiency and effectiveness to meet its objectives and top of the organization.
to satisfy the stakeholder demands. The performance
management of a utility is vital to improve its efficiency Performance measurement is a sub process of
and effectiveness and to achieve utility‟s objectives. performance management and focus is given on evaluation
There are various tools and methodologies that can be and assessment of results by identification of performance
adopted in performance management of an electricity indicators, tracking and communication of performance
distribution utility. This paper highlights about a indicators. In performance management, initiatives are
performance management tool that was developed by the taken based on the results of the evaluation and
author for the performance management of one of the assessment to ensure objectives are achieved.
distribution utilities namely Western Province South 1
(WPS1) coming under the Ceylon Electricity Board
Key Performance Indicator is a measurable expression for 3.1 Review Vision and Mission of the Distribution
the achievement of a desired level of results in and area Utility
relevant to the evaluated entity‟s activity.
Generally an electricity utility has its own vision, mission
and values defined by the top management of the
Balanced Scorecard is a performance management system organisation when the Corporate Plan of the utility is
that provides wider visibility than traditional models, as it developed. Before the development of the Performance
not only focused around financial performance indicators, Management System for a utility, it is important to review
but also around other important elements for the the vision, mission and values of the Utility to understand
organization‟s growth. A Balanced Scorecard is based on the same in detail. Identification of objectives and
four perspectives Financial, Customer, Internal Processes, initiatives to achieve the mission and vision should be
and Learning and Growth. It supports the alignment of carried out in line with the already defined vision, mission
business activities to the vision and strategy of the and values of the electricity utility. For example the vision
organization, it improves internal and external of the Ceylon Electricity Board is “Enrich life through
communications and it monitors organizational power”. The objectives of the WPS1 distribution utility
performance. were identified in line with the vision statement of the
CEB.
A Dashboard is used for monitoring data on appropriate
intervals. It is characterized by visual representations of
data that enable fast and easy understanding of the 3.2 Identification of Objectives
performance status.

Initiative is an activity / project / program initiated to Identification of objectives for an electricity distribution
support the organization‟s strategy and to contribute to the utility needs extensive discussions and brainstorming with
achievement of its objectives. the stakeholders. The objectives should be in line with the
vision and mission of the utility and also should set the
3. Methodology way forward to meet the stakeholder demands for the
utility. Objectives should also contribute to enhance the
The methodology used for the development of efficiency and effectiveness of the utility. The key factors
computerized Performance Management System for the that affect distribution utilities effectiveness are sales,
WPS1 distribution Utility is as follows. distribution losses, reliability and quality of power supply,
revenue collection, customer service, operational
• Review Vision, Mission and Values of the CEB capabilities and capacities and management of human
• Identify Objectives for WPS1 Utility resources. Therefore the following were derived as the
• Assigning Objectives to four perspectives of the Objectives for the WPS1 Utility.
Balanced Scorecard
• Select Key Performance Indicators • Increase sales
• Identify Initiatives for each Objective • Improve reliability and quality of power supply
• KPI documentation and creation of KPI • Reduce distribution losses
Catalogue • Improve revenue collection
• Development of computerized Performance • Improve customer service
Scorecard and Dashboard • Improve management of human resources
• Development of computerized Portfolio of • Optimize operational capabilities and capacities
Initiatives and Initiative Catalogue .
• Testing and commissioning of computerized
Performance Management System.
• Determine budget, resource requirement etc for
Initiatives
• Approval from top management
• Awareness program for employees
• Performance Management of the Utility using
Computerized Performance Management
System
• Corrective Action
3.3 Assigning objectives to four perspectives of the 3.4.2 KPI for the objective “Improve Revenue
Balanced Scorecard Collection”
The following KPIs were identified as suitable to measure
The Objectives identified were allocated to the four the performance under the objective of “Improve Revenue
perspectives of the Balanced Scorecard as given below. Collection”.

Finance Customer  Percentage debtors 2 - 3 months


 Percentage debtors over 03 months
 Increase Sales  Improve Customer  Turnover from billed sales in Rs million
 Improve Revenue Service  Collection over sales as a percentage
Collection  Improve Reliability and  Receivable position – Ordinary Supply
 Reduce Distribution Quality of Power Supply  Receivable Position – Bulk Supplies
Losses
Internal Process Learning and Growth
3.4.3 KPIs for the objective “Reduce Distribution
Optimize Operational Improve Management of Losses”
Capabilities and Capacities Human Resources
The following KPIs were identified as suitable to measure
the performance under the objective of “Reduce
Distribution Losses” .

3.4 Selection of KPIs for each Objective  Percentage distribution losses in WPS1 Utility
 No of faulty single phase meters identified
Number of KPI‟s were identified for each objective giving  No of faulty three phase meters identified
due concern to the activities taking place in the WPS1  No of single phase meters replaced
distribution Utility. These KPI‟s are measurable  No of single phase meters tested
expression for the achievement of a desired level of results  No of three phase meters tested
in the identified objectives.  No of three phase meters replaced
 No of bulk supply meters tested
3.4.1 KPI for the objective “Increase Sales”
 No of bulk supply meters replaced
 No of bulk supply installations inspected
The following KPIs were identified as suitable to measure
the performance under the objective of “Increase Sales”.  No of bulk supply meter locations rehabilitated
 No of three phase meter locations rehabilitated
 Energy sold in GWh  No of substations ready for energy auditing
 Energy sales in Rs million  Expenditure on system augmentation work in Rs
 No of ordinary service connections given million.
 No of bulk electricity connections given  No of system augmentation jobs completed
 No of ordinary consumers  No of accounts where illicit tapping found
 No of heavy supply consumers  No of cases filed for illicit tapping of electricity
 Average selling price  No of accounts where fines are collected from
illicit tapping
 Average sales per consumer
 Fines collected from illicit tapping in Rs million
 Distribution capacity
 Total length of 33kV distribution lines
 Total length of 11kV distribution lines
 Total length of LV lines
 No of distribution substations
3.4.4. KPIs for the objective “Improve Customer 3.4.6 KPIs for the objective “Optimize Operational
Service” Capabilities and Capacities”

The following KPIs were identified as suitable to measure The following KPIs were identified as suitable to measure
the performance under the objective of “Improve the performance under the objective of “Optimize
Customer Service”. Operational Capabilities and Capacities”.

 No of customer complaints received  Material in short supply


 No of ordinary supply estimates not issued more  Stock turnover
than 02 weeks  Construction Unit output in Rs million
 No of service connections outstanding over 02  Distribution Maintenance Division output in Rs
weeks million
 No of low voltage complaints received  Energy Management Unit output in in Rs million
 No of bulk supply estimates not issued more than  Consumers per employee
01 month  Total non-current assets Rs million
 Bulk supply connections outstanding over 03  Total current asset
months after the payment  Stock in Rs million
 No of electricity billing errors  % Progress in ERP Project
 No of electricity estimated bills issued  Work in Progress – Cost Analysis
 % of progress on the construction of new  Work in Progress – Age Analysis
Headquarter Building Complex
 % Progress on the construction of Panadura 3.4.7 KPIs for the objective “Improve Management of
Depot Human Resources”
 % Progress on construction of Baduraiya Depot
 % Progress on opening new depots The following KPIs were identified as suitable to measure
 % progress on building maintenance the performance under the objective of “Improve
Management of Human Resources”.
3.4.5 KPIs for the objective “Improve Reliability and
Quality of Power Supply”  No of training programs conducted
 No of employees underwent training
The following KPIs were identified as suitable to measure  No promotional interviews held
the performance under the objective of “Improve  No of increments not effected after 02 months of
Reliability and Quality of Power Supply”. due date
 No of employees
 SAIDI  No of employees who went on transfer
 SAIFI  No of employees retired
 33,11 kV feeder trippings more than 05 minutes  No of employees reported on transfer
 DDLO‟s blown  No of vacancies as approved cadre
 No of LV feeder failures  No of distress loan applications processed
 No of LV other failures  No 2/3 applications processed
 No of MV breakdown during the month  % progress of construction of quarters
 No of LV breakdown during the month
 No of SM breakdown during the month 3.5 KPI Description and creation of KPI Catalogue
 No of breakdown per 100 km lines
 Avg. time to restore supply after DDLO blown KPI documentation is another important area in the
 Avg time to restore supply after 33, 11 kV failure Performance Management System. It includes many
 Average time to restore a LV other failure fields viz. KPI Name, KPI Number, Definition,
 Kms of wayleave cleared Organisational Area, Balanced Scorecard Perspective,
 No of distribution substations maintained Subordinate Measurements, Calculation Formula, Trend,
 Km of MV lines maintained Target, Measurement Type, Target Interval, Standard
 No of MV switches maintained Reporting Frequency, Unit, Owner, and Data Custodian.
 Expenditure on MV Plan implementation KPI Catalogue is developed by integrating all KPIs
together.
 No of medium voltage jobs completed.
3.5.1 Sample KPI Description 3.7 Performance Scorecard

Performance Scorecard is a performance management tool


used to measure the performance of companies against
established targets. It consists of a collection of KPIs
correlated with the company‟s objectives. There are 113
KPIs identified in the PMS of WPS1 Utility.

3.5.2 Sample KPI Catalogue

3.8 Identification of Initiatives for each Objective

Initiative is a corrective action / activity / project /


program initiated to support the organization‟s strategy
and to fulfil its objectives.

43 Nos of Initiatives were identified to achieve seven


objectives of the WPS1 Utility.
3.6 Dashboard
3.8.1 Initiatives for “Reduce Distribution Losses”
A Dashboard is used for monitoring data on appropriate
intervals. It is characterized by visual representations of Following initiatives were identified to achieve the
data that enable fast and easy understanding of the objective “Reduce Distribution Losses”.
performance status.
 Inspection of bulk metering locations on a
continuous 4 month cycle
 Rehabilitate vulnerable metering locations
identified by inspection
 Testing of three phase meters and rehabilitation
of vulnerable locations though data gathering
 Rehabilitation of metering locations having
consumption higher than 1000 kWh
 Routine testing of single phase meters
 Single phase meter replacement and
rehabilitation of locations having faulty meters
 Distribution transformer wise energy auditing
and loss pin pointing
 Strengthen of seal management system
 Implementation of System Augmentation Plan
3.8.2 Initiatives for “Improve Revenue Collection” 3.8.5. Initiatives for “Optimize Operational
Capabilities and Capacities”
Following initiatives were identified to achieve the
objective “Improve Revenue Collection”. Following initiatives were identified to achieve the
objective “Optimize Operational Capabilities and
 Recover dues from finalised accounts Capacities”.
 Direct uploading of bulk billing data to billing
system  Improvement of accounting practices
 Implementation of safety improvement initiatives
 Implementation of Procurement Plan
3.8.3 Initiatives for “Improve Customer Service”  Implementation of ERP System
 Optimize work of Construction Unit
Following initiatives were identified to achieve the  Optimize work of Distribution Maintenance Unit
objective “Improve Customer Service”.  Optimize work of Energy Management Unit

 Construction of Corporate Headquarters


 Establishment of new Consumer Service Center 3.8.6. Initiatives for “ Improve Management of Human
in Kalutara Area Resources”
 Establishment of new Consumer Service Centers
in Piliyandala- Ratmalana Following initiatives were identified to achieve the
 Construction of Baduraliya Consumer Service objective “Improve Management of Human Resources”.
Center Building
 Construction of Panadura Consumer Service  Implementation of Training Plan
Center  Implementation of Promotion Plan
 Extension of Kalutara Area Office  Implementation of Annual Increment Plan
 Refurbishment of DGM (WPS1) Utility office  Implementation of HR Plan
 Construction of second floor of Kalubowila  Construction of staff quarters for employees of
Consumer Service Center Building WPS1 Utility
 Maintenance of buildings of each Area
 Implementation of Vehicle Plan
3.9 Portfolio of Initiatives

3.8.4 Initiatives for “Improve Reliability of Power Portfolio of Initiatives is a collection of all the initiatives
Supply tracked, either active or inactive. This instrument is useful
for prioritizing projects and monitoring their status.
Following initiatives were identified to achieve the
objective “Improve Reliability of Power Supply”. Portfolio of Initiatives was developed by pooling all 43
Nos Initiatives objective wise under each perspective of
 Implementation of Medium Voltage Plan Balanced Scorecard. Screen shot of Portfolio of
 Implementation of Dehiwala UG Project Initiatives of PMS is given below.
 Implementation of new Transmission Projects
 Implementation of Distribution Maintenance
activities
 Implementation of Area Maintenance activities
 Wayleave clearing
 Implementation of SCADA Control Center
 Implementation of Transformer Repair Unit
 Effective Interruption Planning
Performance Scorecard and Dashboard are generally used
for performance measurement. Initiative Catalogue and
the Initiative Portfolio are used to view the status of the
initiatives and programs initiated to achieve objectives.
Computerized Performed Management System consists of
both Performance Scorecard and the Initiative Portfolio
and facilitates users to toggle between the Performance
Scorecard and the Initiative Portfolio so that performance
review and performance management could be carried out
easily.

The computerized Performance Management System


generally evolves around the Performance Scorecard.
Therefore the user interface of the Performance Scorecard
was designed to attract the user interest. It was designed
around the four perspectives of the BSC and respective
objectives were placed under appropriate perspective of
the BSC. Thereafter, KPI‟s for each objective were placed
under the relevant objective. By clicking a KPI name,
3.10 Initiative Description and development of
user is able to view the current status of the KPI along
Initiative Catalogue
with the past trend in a graphical format. There are 113
KPI‟s built into the computerized Performance
Initiative documentation is another important area in the
Management System.
Performance Management System. It includes many
fields viz. Initiative Name, Initiative Number, Definition,
Initiative Portfolio was developed by pooling the
Organisational Area, Balanced Score Card Perspective,
Initiatives that were identified to achieve each objective
Objective, Current Status; Initiative Owner, Expected
coming under the relevant perspective of the BSC. The
Outcome, etc. A screen shot of the Initiative Catalogue of
progress of the programs can be fetched by clicking the
PMS is given below.
Initiative name. 43 nos. of Initiatives derived from the
Three Year Development Plan were built into the
Performance Management System.
.
Advanced EXCEL programming was used to develop the
computerized Performance Management System. A
colourful user friendly user interface facilitates the users
of the Performance Management System to retrieve
information on performance of the WPS1 Utility speedily
and effectively. Performance Management System
facilitates storing of data for each month of the review and
by changing the month, the data of the entire Performance
Management System automatically change including
graphs which facilitates the visual representation of data.
Lot of efforts were put on to size the database and to
improve the efficiency of the Performance Management
3.11 Development of Computerized Performance System by application of advanced EXCEL techniques.
Management System.
The system comprised with nine EXCEL workbooks to
Computerized Performance Management System consists handle 113 KPIs and 43 nos. of Initiatives without
of following. experiencing system slowness. A system with nine
workbooks is more efficient than having one workbook of
Dashboard more than 100 worksheets. Therefore all the KPIs were
Organisational KPI Catalogue grouped according to the seven objectives of increase
Performance Scorecard sales, improve reliability of power supply, reduce
Initiative Catalogue distribution losses, improve revenue collection, improve
Portfolio of Initiatives customer service, improve management of human
resources and optimize operational capabilities and 3.11 Determine budget, resource requirement etc for
capacities. Another two excel workbooks were introduced Initiatives
to handle Performance Scorecard and the Initiatives
identified to achieve each objective. Once the initiatives were identified, the resource
requirement and the budgets required for the each
The workbook „Performance Scorecard‟ comprises of initiative per year to reach the respective targets were
three worksheets naming Dashboard, Scoreboard and KPI identified.
Catalogue. The Dashboard facilitates the visual
representation of data regarding 14 KPIs which were 3.12 Approval from the top management
identified as critical for top management and graphs and
data automatically updates up to any month by just Once the Performance Management System and the
selecting the required period. The Scoreboard summarises Development Plan are finalised and resources and budget
data gathered on monthly basis for each KPI. It allows etc for the initiatives were defined, the top management
analysing the trend of each KPI and shows information on approval was obtained for the Performance Management
KPI number, unit of measurement, current achievement, System and the Development Plan.
trend, target given and any comments. KPI Catalogue
stores data on each and every KPI starting from the 3.13 Awareness program for employees
description, organizational area, data owners up to how it
should be calculated. The workbook „Performance Once the Performance Management System and the
Scorecard‟ is extensively used to monitor the progress of development Plan are approved it is important to enlighten
the WPS1 Utility at the monthly Executive Team the employees of the organisation about the Performance
Meetings. Management System, Development Plan its objectives,
initiative programs, budgets etc and should seek their
The workbook „Portfolio of Initiatives‟ comprises of support for the implementation of the Program.
several worksheets naming Initiatives Portfolio Summary,
Initiative Catalogue and worksheet for every initiative.
The Initiatives Portfolio Summary summarizes data on 4.0 Summary and conclusion
status of each initiative, time frame, description, initiative
number, priorities and allow toggle between progress Performance review and management are vital for an
reviews and Performance Scorecard. Initiatives Catalogue organization to improve its efficiency and effectiveness.
stores data on each and every initiative which is a Many Corporates in the world use Key Performance
reference sheet. Indicators and Balanced Scorecard techniques for the
performance management. However, it is not common to
Each worksheet on each KPI comprises of KPI find a computerized Performance Management System
Description, Data sheet and Graphical interpretation. developed for a Distribution Utility based on KPI and
Monthly data entering should be done using these data BSC principles for performance review and management.
sheets by the data custodian and data validation takes
place at that point. The system was designed to Computerised Performance Management System includes
automatically update in the event a new data received by Performance Scorecard, Organisational KPI Catalogue,
any KPI worksheet and Initiative worksheet. In order to Dashboard, Portfolio of Initiatives, and Initiative
optimize the workbooks and formulas used, following Catalogue. The Performance Management System was
techniques were used. developed based on the organisational Objectives
identified for the Western Province South 1 Utility viz.
• Breakdown workbooks to tally with EXCEL own increase sales, improve reliability of power supply, reduce
memory manager and memory limits distribution losses, improve revenue collection, improve
• Keep all Referenced Data in one Sheet customer service, improve management of human
• Use EXCEL Tables and Named Ranges resources and optimize operational capabilities and
• Avoid Array Formulas capacities. The Objectives were then grouped under the
• Avoid Volatile Formulas four perspectives of the Balance Scorecard. KPIs were
• Use the most efficient function possible identified to measure the performance of each Objective.
Altogether 113 KPIs were identified. Data structures and
For the collection of data, special data collection formats KPI Descriptions including KPI Catalogue were
were developed and data validation was done centrally. documented and different types of graphs were designed
The system was tested for accuracy and commissioned to visually represent the KPIs. Thereafter 43 Nos of
two year ago and up and running at the moment.
Initiatives were identified to achieve each Objective and
Portfolio of Initiatives and Initiative Catalogue were
developed. Performance Scorecard was created by
pooling all KPIs together to review the performance of
each KPI. An eye catching Dashboard was also built into
the Performance Management System to highlight and
visually represent very important KPIs for the top
management.

Advanced EXCEL programming was used to develop the


Performance Management System which is
comprehensive and facilitate the users of the Performance
Management System to retrieve information on
performance of the WPS1 Utility speedily. The
computerised PMS facilitates users to toggle between the
Performance Scorecard and the Initiative Portfolio so that
performance review and performance management could
be carried out easily. Performance Management System
facilitates storing of data for each month of the review and
by changing the month, the entire Performance
Management System automatically changes including
graphs which facilitates the visual representation of data.
Lot of efforts were put on to size the database and to
improve the efficiency of the Performance Management
System by application of advanced EXCEL techniques.
Performance Management System was tested for accuracy
and then put on to use in January 2016. WPS1 Utility
Executive Team was trained on the Performance
Management System and thereafter they provide the data
for the Performance Management System of this month by
25th day of next month so that the Performance
Management System could be used to conduct monthly
Performance Management Meetings. At present the
computerized Performance Management System of
WPS1 Utility is being used at the monthly Performance
Management Team meetings extensively. Performance
Management System facilitates making informed
decisions to improve efficiency and effectiveness of the
Utility.

5.0 References
1.0 Certified KPI Professional Course – The KPI Institute
2.0 Three Year Development Plan of WPS1 Utility