Improving electrical distribution reliability and cost

Written by Jose Sanchez

ackground The company analyzed it's competitive position relative torepparttar other large investor owned utilities inrepparttar 119463 US. It became clear to survive in a deregulated environment that significant change was needed in 3 key areas. Reduce operating and maintenance expenditures to be at or nearrepparttar 119464 best companies in cost per kWh. Improve generating efficiencies and implement load control programs so that no new generating plants would be needed to meet forecasted demand throughrepparttar 119465 end ofrepparttar 119466 century. Maintain overall system reliability, and focus on improvingrepparttar 119467 reliability forrepparttar 119468 largest commercial and industrial "at risk"customers, and fund this effort by redeploying cost reductions. Develop a sense of competition on its people Developing Customer requirements An effort was undertaken to obtainrepparttar 119469 reliability expectations of all customer segments. Of primary concern wererepparttar 119470 large commercial/industrial (C/I) customers. This effort yielded a clear picture of customer expectations andrepparttar 119471 recognition that significant improvement was necessary for a portion of large C/I customers ifrepparttar 119472 company was to retain them in a deregulated environment. Other pertinent information was collected during this phase that would providerepparttar 119473 basis for new product and service offerings geared to customers who required "premium power quality".

Systematic process improvement The existing methodologies were not dynamic enough to focus resources onrepparttar 119474 most significant problems and target specific customer segments. Past improvement efforts were directed at system-wide projects that resulted in slight reliability gains. A more focused approach was needed in this new environment of cost reduction. This process assessedrepparttar 119475 relative revenue contribution to company margins of specific customers, andrepparttar 119476 current level of reliability they were experiencing. In addition, their individual expectations, or reliability thresholds which were obtained inrepparttar 119477 surveys, were used in developing a scoring index. All large commercial customers were evaluated in this way. This resulted in a ranked scoring, or prioritized list of all C/I customers and enablerepparttar 119478 company to focus improvement efforts.

Implementing reliability improvements Afterrepparttar 119479 C/I customers were ranked in order of needed improvement, a field analysis was conducted atrepparttar 119480 feeder level for each high priority account to identify needed corrective actions. This analysis resulted in a number of system improvements that were scheduled as part ofrepparttar 119481 operation and maintenance work to be completed. A deployment strategy was developed based on sound PDCA principals. These projects were included inrepparttar 119482 budget allocation process and were integrated as priorities inrepparttar 119483 local business plans. Total expenditures inrepparttar 119484 improvements were tracked to assessrepparttar 119485 benefit ofrepparttar 119486 investment These projects were worked beforerepparttar 119487 heavy outage season and early enough inrepparttar 119488 year to see reliability improvement gains by year end.

Guide for Visionary Leaders and Business Decision-makers.

Written by Bob Cannon

Change andrepparttar Cycle of Specialization Robert E. Cannon

Guide for Visionary Leaders and Business Decision-makers. – Inrepparttar 119462 January issue of Taking Aim, I reported onrepparttar 119463 book Margin. That book triggered some thoughts that had been floating in and out of my consciousness for some time. In fact I had even createdrepparttar 119464 topic “Cycle of Specialization” several years ago, but just couldn’t quite get my thoughts to gel in any cohesive manner. This then is an attempt to put into words those thoughts and how it affects us as visionary leaders and business decision-makers. There is a Cycle of Specialization that has repeated itself overrepparttar 119465 centuries. It has been difficult to spot becauserepparttar 119466 cycles have frequently been far apart, butrepparttar 119467 pace is quickening. Our society is being driven to a more rapid rate of change inrepparttar 119468 cycle byrepparttar 119469 growth in population, technology and information. The cycle begins with prehistoric man and his work to survive. He had to be a vertical supplier to his own survival. He was responsible for his own food, shelter, water, and protection. He was dependent upon himself for his own survival. As time went on, he invented language and traveled in groups or tribes. These groups started to specialize. Some would hunt while others would driverepparttar 119470 game torepparttar 119471 hunters or cookrepparttar 119472 food and as that happened; each specialization became vertical in their specialty. The hunter prepared his own equipment for hunting andrepparttar 119473 cooks developed their own tools for cooking. Things changed very little for thousands of years. Certainlyrepparttar 119474 villages changed and farming became a specialty and each farmer in turn became vertical in his specialty and developed his own tools. Withrepparttar 119475 advent of farming camerepparttar 119476 permanent establishment of villages and a new range of specialties developed. Craftsmen developed who specialized in spinning wool, weaving cloth, making clothes, making shoes etc. Each craftsman again had to be a vertical supplier of tools and technology to his own craft. This knowledge was passed along via apprenticeships andrepparttar 119477 cycle continued. Today, as was pointed out in Margin, we are undergoing exponential change and with that, we are also undergoing exponential specialization. As a researcher, it is easy for me to point torepparttar 119478 workrepparttar 119479 government has undertaken to modernizerepparttar 119480 old Standard Industrial Classification (S.I.C.) codes to coverrepparttar 119481 new products and services that were not in existence whenrepparttar 119482 codes were created. Another great example comes to mind having just gone throughrepparttar 119483 traditional year-end review ofrepparttar 119484 news. 2004 was for manyrepparttar 119485 year ofrepparttar 119486 blogger. Ten years agorepparttar 119487 Internet was still in its infancy, there was no E-Commerce let alone bloggers. (My spell checker still doesn’t recognizerepparttar 119488 word blogger.) Another area of incredible specialization is Health Care. It wasn’t that many years ago that if I didn’t feel well, I went to my doctor and he prescribed something to help me. Today my family doctor is nothing more than a gatekeeper. When I don’t feel well now, I go to see him to find out whom to see to treat my problem. Our efforts to improve our competitiveness with LEAN and Continuous Improvement are so internally focused that we are creating even more specialists to delve intorepparttar 119489 minutia of processes at a level previously unthinkable.

Specialization creates information, which requires more specialization creating an unending Cycle of Specialization devoted to continuous improvement ofrepparttar 119490 product or service. (I am not certain which came first, specialization or information, butrepparttar 119491 cycle continues.)

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