&D Business Process Improvement

Distribution Recurring CapitalProcess

Business Case & Implementation Framework

Presentation to TDMC

2 December, 1997

1997- 12-

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AGENDA

Recap of Future State Vision

Business Case

Work Locations

Implementation Framework

1997- 12-

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FUTURE STATE VISIONKey Attributes

SYSTEM IMPROVEMENT & INTEGRITY SERVICE PROCESSCentralize planning.

Designs are consistent and optimize plant utilization.

CUSTOMER PROJECTS & INSTALLATION PROCESS

Customer segmentation.

Single point of contact.

Segmentation of work.

Manage all work, start-to-finish.

Technology for work flow management, integration of GIS with design,decision support tools and field data entry/access.

Activity based costing.

1997 - 12-

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AGENDA

~ Recap of Future State Vision

~ Business Case

~ Work Locations

~ Implementation Framework

1997- 12-

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Summary of Benefits, Costs & FTE Impacts

System Improvement and Integrity Services. Opportunities, Costs & FTE Impacts

Customer Projects & Installations. Opportunities, Costs & FTE Impacts

Key Assumptions & Risks

1997- 12-

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BUSINESS CASESummary

Annual One TimeBenefits Costs FTE

($million) ($ million) ImpactsSystem Improvement &Integrity Services $ 15. $ 6.

Customer Projects & Installations 11. 15. 168

Other costs & overheads

Total $ 29. $ 22. 257

1997 - 12-

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BUSINESS CASESystem Improvement & Integrity Services

Improved application ofdesign practices.Improved planning tools &evaluation criteria.

Centralize distribution planning.

Online transformer demand.

Other.

Total

1997 - 12-

Annual One TimeBenefits Costs

($million) ($ million)

$ 5.

$ 15.

FTEImpacts

$ 0.

$ 6.

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BUSINESS CASECustomer Projects & Installation Process

Annual One TimeBenefits Costs FTE

($million) ($ million) ImpactsManage all the work, start-to-finish.

Replace current DCDS/GFIS.

Eliminate service site visits.

Data entry/access by field crews.

Improve the efficiency of thedrafting resources, by the

elimination of civil drawings &streamlining the PS process.

1997- 12-

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BUSINESS CASECustomer Projects & Installation Process

Annual One TimeBenefits Costs FTE

($million) ($ million) Impacts

Centralize service applications. $ 0. $1.

Segment minimal & standard

design.Implement electronic informationexchange.

Other.

Total $ 11 $ 15. 168

1997 - 12-

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BUSINESS CASESystem Improvement & .Integrity Process

Key Assumptions

Improved application ofdesign practices.

Improved planning toolsand evaluation criteria.

Centralize distributionplanning.

On-line transformerdemand information.

1997- 12-

Staff accepts newguidelines.

Insufficient training &change management.

Staff have the skills and Lack of acceptance bycommitment to use tools. staff.

Staff resources can bere-organized andrelocated.

Skilled staff not preparedto relocate.

IT implemented by pER Funding not approved oras per their plan. delayed.

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BUSINESS CASECustomer Projects & Installations Process

Key Assumptions

OPPORTUNITY ASSUMPTION RISKManage all work from Integrated work flow The Indus module doesstart to finish. management system in not have the required

place. fuctionality.

Segment work into GIS data is current. 40% of minimal designminimal & standard work can be done withoutdesign. a site visit.

A more effective & The new GIS system will Lack of support to migratefficient GIS system. meet DRC process to new platform.

requirements.

1997 - 12- Continued on Next Slide

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BUSINESS CASECustomer Projects & Installations Process

Key Assumptions

OPPORfCeiz serceaplicaon.

Ele site visits for

sece wok

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AGENDA

~ Recap of Futu re State Vision

~ Business Case

Work Locations

~ Implementation Framework

1997 - 12-

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WORK LOCATIONAgenda

Work Location Principles

Process Structure

FTE Impacts

Process

& .

Service Center Locations

1997- 12-

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WORK LOCATIONPrinciples

DESIGN PRESENCE BASED ON:Customer Expectations. Local Knowledge

Volume of Work. 650 Billable Hours/Person/ ear

. Flexibility

. Standard Design Work Can Be Moved

. Complexity of the Work. Segmentation into No, Minimal & Standard Design

Geography. Urban, Rural, Travel Distance

1997 - 12-

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WORK LOCATIONSProcess Structure

Centralized Planning

~ Electric Service Coordination Center

Process Service Centers

~ Service Centers

1997- 12-

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Work Location - Process Structure

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VancouvernBurnaby *

North Shore

Surrey

Namaimo *

Prince George

Kamloops *

Vernon

Victoria

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WORK LOCATIONSFTE Impacts

OPEIU IBEW ontr Total

Survey Data 311 270313

124

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Remainingin Process 178 311 158 704

1997- 12-

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ENTER LOCATIONS

Fort Nelso

Fort St. ohn

awson Creek. Chetwn

Legend asset

. Process Service center

o Possible Process Service Center

. Service Center - continued design

o Service Center - special reason

. Construction location - design not present

. Electric Service Co-ordination Center

Smithers

. Mackenzie. Burns Lake

. Vanderhoof

. Kamloops . Reve. Cache Creek. Salmon Arm

. Quesnel

. Willams Lakeo Clea ater

. 100 Mile Ho

Merrit Vernon I vermere. Nakusp

. Westbank

1997- 12-

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AGENDA

Recap of Future State Vision

Business Case

Work Locations

Implementation Framework

1997- 12-

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IMPLEMENT A TION FRAMEWORKAgenda

Approach to Implementation

Summary

Critical Success Factors'

Schedule Milestones

1997- 12-

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IMPLEMENTATION FRAMEWORKApproach to Implementation

Provides a structured yet 'flexible approach toestablishing the Process Based Organization.

Embodies the eight major thrus s of theCorporate People Strategy.

Project Management & Reporting Structure.

Schedule for Implementation of Opportunities& Strategies.

Identification of " Concept Pilot" Projects.

1997- 12-

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IMPLEMENTATION FRAMEWORKSummary

System Improvement & Integrity Service Process. Operationalize, January 1998

. Manager, System Improvement & Integrity ServiceSelected January 1998

Customer Projects & Installation ProcessCommission the Project Team, January 1998

. Manager, Customer Projects.& Installations, SelectedEarly in 1998

1997- 12-

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IMPLEMENTATION FRAMEWORKCritical Success Factors

Union & Management support essential for

successful pilot projects.

Labour Adjustment Strategy adopted prior to

implementation.

Introduction of the INDUS/PeopleSoft software

package.

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IMPLEMENTATION FRAMEWORKSchedule Milestones

System Improvement & Integrity Service ProcessManager, System Improvement & Integrity Servce, SelectedJanuary 1998

. Operationalize, January 1998

Customer Projects & Installation' Process. Project Team Commissioned, January 1998. Manager, Customer Projects & Installations, selected early in

1998. Concept Pilots Commence, February 1998

Manager, Electric Service Coordination Center, SelectedApril 1998

. Process Service Managers, Selected April 1998DRC Process Based Organization in Effect, 01 October 1998

. Electric Service Coordination Center, Operational Early 19991997- 12- 1fP DRC Implementation, Complete by 31 March 2000

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