© 2015 hdr, all rights reserved.. how the corpud is optimizing field operations and reinvesting...
TRANSCRIPT
© 2015 HDR, all rights reserved.
© 2015 HDR, all rights reserved.
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How the CORPUD is optimizing field operations and reinvesting savings in employees
NC AWWA WEA 2015 ANNUAL CONFERNCE
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Operational Optimization: It’s Not Just for Utility Plants
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01 Back in 2011…Strategic Planning at CORPUD
02 From Strategic Goals to Actions: Where to Start?
03 Optimizing in the Field: Useful Tools…Not Paperweights
04 Conclusion
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01
Back in 2011…Strategic Planning at CORPUD
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Challenges facing CORPUD
Budget deficits from decreased revenue
Aging infrastructure External pressures to improve
performance (EPA, Activist Groups)
Retiring workforce Rate increases
Strategic Planning Process To Date
~CORPUD Vision:
“We are a world-class leader in sustainable water and
wastewater service delivery.”
CORPUD Mission:
“To provide safe, sustainable water services for our customers while protecting public health and contributing to the economic, environmental and
social vitality of our communities.”
Public Utilities Vision and Mission
Customer Service:
To respond to and meet the needs of our customers in a timely and effective manner • Establish acceptable levels of customer
service• Provide staff the necessary resources to
meet/exceed customer needs and expectations
• Align staff performance goals to customer satisfaction goals
CORPUD Strategic Goals
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Employee & Leadership Development:
Recruit, develop, and retain a competent, motivated and agile workforce while retaining institutional knowledge • Align employee development with
organizational needs • Retain skilled and motivated workforce • Recruit a highly skilled workforce• Capture and retain institutional knowledge
CORPUD Strategic Goals
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Environmental Stewardship:
To protect and preserve natural resources by meeting or exceeding regulatory compliance goals, providing environmental education and implementing sustainable best practices • Achieve regulatory compliance• Minimize gaps between acceptable levels of
stewardship and performance• Evaluate sustainable practices
CORPUD Strategic Goals
CORPUD Strategic GoalsFinancial Viability:
Establish a financial structure that provides full cost recovery, truth in billing, and invests for the needs of future generations while meeting community expectations • Develop five year operating budget and
forecast• Establish and maintain an effective balance
between long-term debt, asset value, operations and maintenance expenditures, and operating revenues.
• Obtain and maintain “AAA” bond ratings
CORPUD Strategic GoalsReliability:
To develop a sustainable asset management program to provide continuous service and reduce system vulnerability • Prepare for catastrophic events• Strategically manage assets
CORPUD Strategic GoalsStakeholder Outreach:
To broaden public awareness and support of CORPUD’s stand on issues • Establish ongoing partnership with the City
Council • Effectively increase key stakeholder
partnerships with CORPUD on Public Utility issues and initiatives
• Improve internal communication with employees
Resource Management:
To conserve existing resources and develop additional ones in concert with ever-changing climate and growth needs • Recognize and evaluate growth patterns
and revisit planning assumptions• Ensure resource availability• Encourage prudent consumption of water
resources across all customer groups
CORPUD Strategic Goals
CORPUD Strategic GoalsOperational Optimization:
Provide cost effective and efficient services with minimum interruptions in a way that accommodates growth and changes in the industry • Assess critical business processes• Benchmark CORPUD against like utilities to
determine areas for improvement• Structure CORPUD for optimum efficiency• Extend an Environmental Management
System (EMS) framework to those departmental programs that are responsible for Public Health, Water Quality, Water Reclamation and future products
Range of Competitiveness Tools
Benchmarking Competitive Assessment Optimization
Managed Competition
• Compares your operational/financial metrics against others
• May not consider level of service or desired outcomes
• Compares your operational and financial metrics against established competitively performing peers
• May not identify a “road map” for achieving a competitive level of service
• Generally focuses on identifying “low hanging fruit” opportunities
• Provides basic optimization strategies to be more fully developed and implemented
• Typically does not address employee incentives
• Independent third party facilities the establishment of a competitive level of operation and MOU “contract” with organizational unit
• Savings shared through employee “gainsharing”
Privatization
Bid-to-Goal
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02
From Strategic Goals to Actions: Where to Start?
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Optimization…
Regulatory requirements
Data and reporting
Where do we start?
Customer Expectations
Limited funds
Training
Maintenance decision-making
Crew processes and procedures
Scheduling
Work order management
SWOC
Maturity Evaluation
Gap Analysis
Approach
Our goal: provide tools that can be used after we’re gone…
15-20 participants in most workshops Cross-section of staff
o Assistant Director to Level One Crew Supervisorso Multiple disciplines: corrective and preventative maintenance, condition assessment and repairs,
supporting staffo Multiple locations: City of Raleigh and merger communities
[Insert criteria for selecting staff to participate] [Photo from Raleigh of their staff, crews?]
People Make the Approach
SWOC Analysis
Strengths
Opportunities
Weaknesses
Challenges
Factors INTERNAL to the
Organization
Factors EXTERNAL to the
Organization
POSITIVE NEGATIVE
SWOC at the Operational Level
Planning and Strategy
Operations
People
Data and Technology
Identify areas to focus our gap analysis, benchmark, and review performance indicators
The Outcome of the SWOC Analysis
Weaknesses
Challenges
Strengths
Opportunities Assess opportunities and recommend actions on how to
capitalize
Capitalize on strengths in one area by replicating in another
Staff Workshops
Strategy and Planning
Operations and Maintenance
People
• Business Strategy and Planning
• Finance• Business
Information Systems
• Engineering• Operations• Maintenance• Condition
Monitoring• Asset Knowledge
• Employee Communication and Development
• Staffing
Maturity Evaluation
80-100 Optimizing Quantitative and qualitative measures are used for continual improvement and refinement of documented standards and procedures.
50-70 Managed Quantitative measurements are defined and used for setting quality standards. Adherence to processes is uniform for all users.
30-40 Formally Defined
Processes are well-defined and supported by policy with a repeatable approach that is documented and communicated within the organization.
20 Repeatable Though processes are not formally defined or documented, they are largely repeatable. Adherence to any standard is not rigorours.
10 Initial (Ad Hoc)
Processes are undocumented, uncontrolled, and subject to change at any time. Users operate in a reactive manner.
Best Practice Score Current Observation
Capability Maturity Modelo Carnegie Mellon Universityo Originally funded by government to assess contractor development processeso EPA Effective Utility Management Primer
Can be used for: o Benchmarking comparisono Evaluation of how well an organization can perform a desired contracted serviceo Improvement of existing processes and identification of gaps
The UBME rates current business elements, determines and prioritizes gaps based on target performance criticality
Gap Analysis – Background
Gap Analysis
Attribute
Sc
ore
Pre
ven
tive
Ma
inte
na
nce
Pre
dic
tive
Ma
inte
na
nce
Co
rre
ctiv
e M
ain
ten
an
ce
Ma
inte
na
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Co
sts
Fa
ilure
Co
de
s
GIS
Inte
rfa
ce
Fle
et
Ma
inte
na
nc
e
Fie
ld C
om
mu
nic
atio
ns
Re
sou
rce
Ma
na
ge
me
nt
Co
nd
itio
n M
on
itori
ng
Pro
gra
m P
olic
y
Co
nd
itio
n R
atin
g a
nd
Sco
rin
g
Co
nd
itio
n T
rack
ing
Ma
inte
na
nce
Str
ate
gy
Co
rre
ctiv
e A
ctio
ns
Fix
ed
As
se
t In
ve
nto
ry
As
se
t P
lan
s
Sh
or-
inte
rva
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iviti
es
Lo
ng
-in
terv
al A
ctiv
itie
s
As
se
t D
eta
il
Ass
et C
ritic
alit
y
Ass
et C
ate
go
riza
tion
Ass
et C
lass
es
As
se
t H
iera
rch
y
Ass
et I
de
ntif
ica
tion
Re
liab
ility
An
aly
sis
Pla
nn
ing
an
d S
che
du
ling
Cre
w D
ep
th a
nd
Fie
ldin
g
CM
MS
Ba
cklo
g
70
60
50
40
30
Repeatable 20
Initial (Ad Hoc) 10
Target Practice Score1 60 40 60 50 60 40 60 60 60 60 60 60 60 60 40 60 60 40 60 40 40 40 40 50 60 60 70 70 60
Anticipated Future Score2 50 40 40 40 50 50 60 50 50 60 40 40
Current Score3 30 20 40 30 20 30 30 60 30 30 20 20 30 30 40 40 20 30 30 40 20 40 40 40 30 20 70 20 30
Gap 30 20 20 20 40 10 30 0 30 30 40 40 30 30 0 20 40 10 30 0 20 0 0 10 30 40 0 50 30
Condition Monitoring
StaffingAsset Knowledge
Formally Defined
Managed
Maintenance
CurrentFuture
AnticipatedGapTarget
Because you can’t change everything at once…
Current Score
Target Score - )( Criticality
WEIGHTED GAP
x
Prioritization:
≥ 150 1≥ 90, <150 2
<90 3
Identifies priorities Can be re-visited later for next
set of actions/initiatives Future gap analysis to compare
and show progress, re-visit target scores
Gap Analysis as a Tool
Two-Pronged Approach
Diagnostics
Comparison to Best Practices
Comparison to Industry Peers
SWOC Analysis
Gap Analysis
Benchmark Survey
Benchmarking Objectives
Track
Identify
Measure
Track Key Performance Indicators (KPIs), especially in areas of largest gaps
Measure CORPUD’s performance against benchmark utilities
Identify areas for improvement
General utility information – used to normalizeo Accountso FTEso System length
Broken down into areas consistent with Gap Analysis
Question types:o Empiricalo Yes/No/NAo Self-assessment (score 1 – 5)o Fill in the blanks (few)
Question sources:o Preliminary KPIs and metricso Functionalityo Workshop participants
Benchmarking Questionnaire
Sewer only
Water only
Both
CORPUD
High-level (operational) benchmarking: Goal: Establish means to track performance on basic indicators over time
What you learn…Process benchmarking: Goal: apply as appropriate to improve your processes
Functional benchmarking: Goal: improve performance of function
And what you don’t…
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Example: CCTV Performance
Helped identify performance indicators and metrics to begin tracking (now and in the future)o Operational (day-to-day) and strategic
(annual and over time to demonstrate improvement)
Further identified priorities for CORPUD to focus on
Identified peer utilities that may share best practices that could be implemented at CORPUD
Benchmarking Results as a Tool
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03
Optimizing in the Field: Useful Tools…Not Paperweights
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Process: SWOC Maturity Evaluation Gap Analysis Benchmark Recommendations
Project Re-CapDeliverables: Performance targets and gaps, prioritized and
weighted Preliminary list of performance indicators to
track over time List of peer utilities for follow-up Recommendations, sortable and “prioritize-
able”
Tools
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Recommendations Framework
Strategic Plan Tactical Plan
Effective Utility Management Attributes
Recommendations are:o Focused on highest priority gapso Identify low-hanging fruito Designed to be feasible and implementable in 3 to 5 yearso Provide a level of detail aligned with the scope of the gap
Closing the Gaps
Perform rolling-stock inventory after hours
Programmatic hotspot cleaning frequency evaluation
Develop activity based budget
Improve incident intake
Create Capital Program Team that includes O&M staff to formalize project review
Establish sewer cleaning QC program
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Conclusion
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Provided to CORPUD as a sortable tableo Type of Cost Savingso Prelim. ROI Estimate o Degree of Impact o Level of Effort
Recommendations as a Tool
Comprehensive sewer cleaning hotspot program PACP training / certifications QA/QC program for CCTV operations Best practice maintenance / easement
procedures Explore new technologies Triggers to submit work tasks to CIP
Optimization Priorities Continue Implementation of “Pay for
Certification” Ongoing development of Career Ladders
Benefits to Staff
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TJ Lynch, Assistant DirectorPublic Utilities Department, City of Raleigh(919) [email protected]
David Saunders, Senior Utility Management ConsultantHDR (336) [email protected]
© 2015 HDR, all rights reserved.