innovative approach to develop loss reduction program” dhond… · innovative approach to develop...

Innovative Approach to Develop

“Loss Reduction Program” Odisha Franchisee Experience

1 1

At Workshop on:

AT&C Loss Reduction Organised by

Ministry of Power, GoI

Department for International Development (UK Aid)

By Vijay Dhonde

2.0 Outcome of 4 Year Efforts

Loss Reduction Program 3.0

1.0 About Feedback Infra / FEDCO

2 2


Loss Reduction Strategy 3.0


3 2

About Feedback Infra / FEDCO FEDCO’s vision is to be amongst the Top Three Indian Energy Distribution Companies

4 12

Turnover in

USD

Employees International

Offices

Project

Offices

Regional

Office

Corporate

Office

1 6 190+ 4 4500+ 115 Mn* (FY 15-16)

1600 +

Consulting

Assignment

40,000 MW

Service's

provided in

Generators

14,000 MW Operation and

Maintenance

of Power

Plants

3,000 KM

Project

Management of

Transmission

Line

4 Million

Distribution

Consumers

Serving

monthly

0.56 Million

Energy Sale – 445 Crs

Collection- 400 Crs

1411 Million Units

Energy (in kWh) handled per year. Peak Load: 255 MW

10,300

No of DT. 186 11kV Feeders from 51 PSS. 12850 Ckt Km NW Length

10,000+ Sqkm.

Area covered under operations

5 Year DF Contract with CESU (Discom)

Electricity is to be received by FEDCO at various input points and

convert it in to Revenue (Ratio is RPU)

Cater electricity needs by maintaining the LT lines, HT consumers

Perform the activities of Metering, Billing & Collection (5L

consumers)

Incremental RPU to be shared between FEDCO & CESU

Distribution Landscape

*Numbers pertaining to FY-17

Balugaon

• Consumer Base: 0.94

Lacs

• Area: 1200 Sq Km

• Rev Mix : 88:12 (LT:HT)

• Area Mix : 93:07 ( R:U)

Puri

• Consumer Base: 1.4Lacs


• Rev Mix : 81:19 ( LT:HT)

• Cons Mix : 85:15 (R:U)

Khordha


Lacs


• Rev Mix : 44:56 (

LT:HT)

• Area Mix : 87:17 ( R:U)

Nayagarh


Lacs


• Rev Mix : 95:05

(LT:HT)

• Area Mix: 95:05 (R:U)

FEDCO

Corporate

Office

TOTAL

• Consumer Base: 5.6 Lacs


5

FEDCO Area Profile Rural DF , having area more than 1000Sq km

1 Corporate Office

6 Division Offices

18 Subdivision Offices

63 Section Offices & Collections Counters

251 Fuse Call Centre

24*7 Customer Care

1 R&D Centre


Loss Reduction Strategy 3.0


6 2

17

22%

22%

198

271 311

368 396

0

10

20

30

40

50

60

Base Year

(FY13)

FY14 FY15 FY16 FY17

Collection Rs Crs 100%

67%

Performance Indicators - FEDCO

Rs 45 Crs

*FY 12-13 : Area Takeover

Deficit of 45 Crs in FY 12-13 at the

time of project area take over

Rs. 7.7 Crs

*FY 15-16

Rs 45 Crs

*The total revenue is including LT,HT and EHT collection

**The power purchase cost excludes wheeling charges

LT I Low tension, HT I High tension I EHT, Extra high tension

*FY 16-17

8 18

Over a period of 4 years, commercial

viability achieved with an upside in

revenue by Rs 45 Crs in FY 15-16


Business turnaround within three years of operation despite a near 22%

increase in Input Energy, 20% Increase in consumer base.

AT&C loss reduction in the range of 18% to 27% within a span of four years

(FY 2013-2017). Highest ever achieved by a private sector entity in the country for a similar rural-

urban mix approximately 90:10.

Increase in Consumer collection by Rs.200 Crs. over base (100% inc.) in 4 Years,

out of the same CESU has earned Rs.90 Crs. as additional income.

Community mobilization through 139 wSHGs as partners in billing and collection.

First time ever, Tab based New Service Connection services facilitating 100%

digitization and reducing processing time by around 60%



Loss Reduction Program 3.0


1

0

2

Organization Design,

Restructuring 1

Business Process Re-Engineering 3

Team Building (Employees )

Leadership + Tactical + Operational 2

4 IT Backbone

Capex, Engineering,

Network Reliability, Meter

Rollout, RoI Approach

Network Plan 5

Operational Efficiency

Input Energy

Billing Coverage. Efficiency

Collection Coverage. Efficiency

6 8 Stakeholder Management

Government. Discom, Politicians, Local

administration, Regulator

Community Engagement, WSHG ,

7

Win Consumers through

Consumer Centric Approach

24*7 CCC , KCG, SMS etc

(Consumer’s )

0.57 Mn Consumers

50, 000 Sqkm, 85:15 R:U Mix

Business Transformation Strategy at FEDCO Continual Change at organizational as well as employee Level

ATC Loss Reduction as per 5 years

Trajectory (Government. )

Improvement in Collection,

Cash-flow (Discom )

Gradually shifting organizational focus

on Profitability (Investors )

Providing Reliable & Affordable

Electricity (Regulators )

Co

st

Re

ve

nu

e

11 14

Strategic Initiatives for Operational Turnaround Doing things Differently…..

Initiative# 1: Change Management Program with Accountability

•Developing Broad Framework for Transformation

•Chalked out strategy Geography (Divisions / Subdivisions) &

Network wise Implementation Plan, Performance

measurement & Audit System.

•Business Plan Ownership. Setting up measurable

targets. Clarity in accountability. Self evaluating

performance. Score card Framework– KPI’s

• Incentive – monetary benefits –Involving family

Resource Incentive Skill Vision False Start

Action Plan Incentive Skill Vision Frustration

Action Plan Resource Skill Vision Gradual Change

Action Plan Resource Incentive Vision Anxiety

Action Plan Resource Incentive Skill Confusion

Action Plan Resource Incentive Skill Vision Change

Initiative # 2: Strong Review Mechanism

•Provision of Review and

update town wise

characteristics, issues,

challenges etc.

•Alternative Solutions

•Risk Mitigations

•Budgeting , planning of

Energy

•Strong Review

Mechanism

•Monthly Plan

•Mid Month

•Month performance

•Fine tuning

Implementation Plan

Initiative # 3 Operational Efficiency

•Division wise Targets of Operational Efficiency

•How to maximise billing coverage & efficiency,

Collection coverage & Efficiency RPU ?

•Strict ‘Execution of Plan’

•Continuous online monitoring & corrective actions

Circle ParamterMonthly

Benchmark

Energy

(Act)

31.05.16

HT

(Act)

LT

(Act)

Circle

(Actual)

Input En 300 87 203 290

ABR 5.25/6.00 6 5.27 6.26

RPU 5.16/5.99 5.95 5.16 6.27Input En 400 170.8 256 427

ABR 5.25/6.00 6.25 5.2

RPU 5.16/5.99 6.2 5.1Input En 350 185 185 370

ABR 5.25/6.00 6.5 5 3.68

RPU 5.16/5.99 6.25 5.01 3.27Input En 1050 442.8 644 1087

ABR 5.25/6.00 6.50 4.89

RPU 5.16/5.99 6.13 4.3

< ACoS > ACoS

Performance Dash Board

~ ACoS

Circle 1

Circle 2

Circle 3

For

Region

290

427

370

1087

Initiative # 4 Technology: Online Tool for Monitoring

•Focus on Small and useful Tool developments which will

strengthen Decision making on the ground

•As major loss is in LT network, need (nearly) online

monitoring of complex LT metering, Billing.

•System for Daily performance tracking, escalation

system will help in improving accountability

•Strengthening support from HQ in on issues and challenges


Initiative # 5- Effective Performance Management DashBoard (Typical)

Performance Indicators Weightage

Input Energy 25%

AT&C Loss 30%

RPU 20%

Divisional Profit (Acrual) 25%

Cumulative Score 100%

Divisional Manager

Performance Indicators (Predictability) Weightage

T&D Loss 25%

Collection Coverage (% of Live consumers) 15%

Arrear Collection Amount (Excluding HT) 35%

Current Collection Amount (Excluding HT) 25%

Cumulative Score 100%

Sub-Division Manager


Consumer Centric Initiatives Using R&D to manage social change & regulate the future development & behaviour of a society

Service Enabler

Mobile CAMPS

• Well equipped mobile

vans to redress grievance

@Doorstep

• Jal Chatra Camps

• Society Empowerment

Ensure Efficacy

(Society’s Empowerment For Assuring Livelihood)

30

11kV Feeder on Google earth

CAPEX Implementation Using Calibrated Capex approach

Comprehensive Approach

New LT Circuit, recondictoring work proposed through

Simulation

DTR LT Network GPS Survey, SLD &

Consumer Indexing

DTR meter installation with

incoming & outgoing cables

with LTDB

DTR earthing Conductor upgradation

AB Cable installation

Conversion of hooking

consumers to New legal

connections

Consumer Meter

replacement

16 31

ANY QUESTIONS?

36 36

India’s Leading Integrated

Infrastructure Services Company Advisory | Design and Engineering | Project Management

www.feedbackinfra.com

Feedback Infra Pvt. Ltd.

15th Floor Tower 9B | DLF Cyber City, Gurgaon | Haryana

Ph: 91-124-4169100 | Fax: +91-124-4169155

Email: [email protected]

Contact

Vijay Dhonde, CEO.

vijay. [email protected] | Ph - +91-9833434447

Thank You!

Initiative # 0- Strategy & Implementation Plan

Developing Subdivision wise Implementation Plan Doing Things Differently…..

Strategic Objectives, Business Plans, Goals

Objectives, priorities, Issues, challenges

Critical Processes

Objectives

Enhance process KPIs

Reduce ‘cost’ to serve

Improve response ‘time’

Questions

Meets business needs

Value-added activities

Provide essential controls

Improved by technology

Can we?

Eliminate

Simplify

Automate

Outsource

Benchmark

Numbers & Existing Skill set

Revise Numbers, Revised Skill,

Capacity Building Plan

Work Steps

Timeline Responsibilit

y

---------- ----------

---- ----

----------------- -----------------

Plans

Processes

Organization

Current Staffing

Work Distribution

New Process Flow

New Organization

Revised Resources

Planning & Skills

Implementation Plan

Activity Time Volume

Baselines Analyses Recommendations

Nationally acclaimed Research & Analysis Consultants (RAC) conducted an independent survey to capture overall satisfaction level of consumers

Independent Consumer Survey

9.0 9.7 8.0 9.2 7.0 8.3 9.0 9.6 8.1 8.7 7.0 8.5

Billing Collection ComplaintManagement

New ServiceConnection

Ambience &behaviour

Over All

1st Phase FY 16 2nd Phase FY 17

Winning Consumer !!!! Keeping Consumer Engaged digitally at all possible events. Checked through Independent Survey

21

MON

YR 15-

16

YR 16-

17

APRIL 42254 41393

MAY 46397 54166

JUNE 41895 50658

JULY 39596 45657

AUG 41346 44200

SEPT 43223 38135

OCT 33190 30357

NOV 24877 24337

DEC 27497 20529

JAN 23569 23034

FEB 25416 25392

MARCH 34138 29370

TOTAL 423398 427228

Resolving Complaints Constantly Focus on Call Centre Productivity, effectiveness, Service Quality. Integrating actions with Revenue

• Customer Delight Survey

• Customer Meets at Field Level

• Outbound feedback calling

• Complaint Analysis

• Aggregation of Voice /

Complaint Data

• Trend Analysis

• Cause and effect

relationship

• Root Cause Analysis

• Action Plan and

Validation

• Productiveness of the Call Centre: AHT, Long Calls, FTR %, Complaint Escalation ).

• Effectiveness of CRM : SLA Analysis, Analysis of Closing Remarks, Design of reports to

meet management requirements

• Customer service quality ( Complaint Tagging, SLA Monitoring ).

• CRM Training & Support to field staffs so that 100% ticket closure is done by them

• Call Centre Executive's Field Visit to understand Field Dynamics & Vice Versa

22

Technology

AMR@11 kV, SMS @33 KV

Planning (Business Plan)

Know Your Energy (KYE).

(Feeders wise Planning based on area characteristics, Monitoring & Control)

Team work

FM aware of daily & hourly input energy in his area

Transparency

• Data: Single Source of Truth (EnSERVE)

(In house Developed Online Software)

Consumer Service: Integrated with CFC

(Independent Cons. Satisfaction Survey)

Performance Audits

Balance Scorecard

(Division Ranking Reward & Recogn.

Schemes/ Performance Punishment Criteria

Input Energy (1155-1411 Mus)

Know Your Consumer (KYC) (Consumer Indexing)

Bill Coverage

Speed (15 days), Billing Quality, High Touch to High Tech

Billing Efficiency

Decoding Operation Efficiency Improvement 3 T Strategy

Collection Methods (Counters, Societies, Incentives etc.)

Collection Coverage

(RPU) Focus on Net Revenue Realization per Unit.

Collection Efficiency

Addl Revenue: Arrears Recovery ART, Vigilance

Revenue Protection

HR: Capacity Building, Mandatory Training on 23 Modules

Analytics: Providing Actionable Reports

R&D to Support Processes

Accountability

Mandatory Employee Rotation

KPI Driven Processes.

(NSC, Meter Replace, Billing & Collection)

Manual - Photo - IR - Real time through Mobile - (IR + Opt), Online + Offline

CMRI - AMR (HT & HVLT)

Electronic Money Receipts, On the Spot Collection,

w-SHG, Online, Counters.

EoD. Collection, Bill Revision Module, Govt. Coordination, Part Payments.

Energy Audit (EA),

Vigilance Module, Accucheck

Consumer Indexing, Route Sequencing, First Bill (Days), Tab based NSC

Community Empowerment: w-SHG’s Nayagarh: Low Population Density, Low Income Area

14 17 20

FY-2013-14 FY-2014-15 FY-2015-16

Average Monthly Incentive (Rs Lacs)

9,913 12,288 13,947

Average Monthly per SHG in Rs

Maximum per

WSHG ~Rs.

30,000

per month

136

7

18 25

No. of SHGs earning above Rs.

20,000/ month

Total SHG > 30000 Above 20k

Maximum amount of

Rs.45,500 earned by

the WSHG of Kantilo

GP of Khandapada Sub

Division

65 WSHGs bought

scooters for their

conveyance

GP : Gram Panchayat I WSHG : Women Self Help Group

Our association with WSHG’s

Strengthening Analytics As Data availability increased, end to end Revenue protection process strengthened

From Start

to Finish

AMR / CMRI Meter Reading

Meter Data Analysis

Billing Data Analysis

Meter Testing

Replacement Analytics of Images in case of 1 Ph

consumer

Meter Data in case of Three phase

Effectiveness in Enforcement

Operation

Independent Monthly recovery target

for Enforcement Team achieved

IMPACT

INITIATIVES

Analytics based on the data from

AMR/CMRI, billing data, meter data

28

Major Technological Initiatives

Minimized human intervention & improved accuracy and customer satisfaction

Better metering management

Building customer confidence through focus on Customer Service

Common Meter Reading Instrument

(All medium & small size industries)

CMRI

Automated Meter Reading

(All big size industries)

AMR

Infra Red Based Reading of Meters

(All Domestic Consumers)

IR based Consumer Metering Real time Monitoring and Tracking of

Billing of Single Phase Consumers

Photobased Meter Reading

Online Release of NSC

Tab Based New Service Connection

(NSC)

In house developed web based Billing

Engine

Enserve – IT Backbone

Undertaken Pilots on one Distribution

Transformer

Smart Metering - Pilots

Established Strong process based CCC

to engage consumers

Consumer Care Centre (CCC’s)

25 22

Enserv (Billing Engine) & NATA ( New Services Connections) Enserve for Single Source of Truth (SSoT) across organization.

EnServ

New Connection

CRM

Meter Reading Mgt

Credit Management

Billing

Dashboard MIS

MDM/AMR

Energy Audit

Enforcement

&

Legal

Complete Web Based Software for Utilities

New application is acknowledged

via a Ticket No#

Capturing of relevant GPS

coordinates

Entry of Meter details installation

For viewing ticket details

To extract data from the device

To upload Consumer snapshots

NATA – NSC Android Mobile Application

26 23

IR communication With > 90% consumers as 1 phase across 10K Sqkm, having limited telecom network.

IR Port Meter

IR Port SBM Bill Printing

Manual intervention free single phase consumer billing

Spot Billing with GPRS

Technology

Real time data

transferring to Billing

Software helping in

preventing data loss

during uploading on

BCS at the end of day

Automated,

error-free

billing and

digitization

Increase in Billing

Coverage from 67% to

~90 %, in an area spread

over 10,000 sq km

INITIATIVE IMPACT

27 24

Automatic Meter Reading (AMR) Solution Input energy Points, HT Consumer Meters

IMPACT

GPRS and IP (internet protocol) based

communication, enabling simultaneous data

acquisition from multiple meters.

Prompt Reading available at instance: Reduces

Manpower & vehicle cost

Plugged commercial loss: Promptly detecting

fault / tamper events.

Routine Energy Audit possible

1000 AMRs installed at Substation Meters, High Value

Consumers and Important Distribution Transformers

INITIATIVE

28 25

Field Management System (FMS) Photo Based Meter Reading: The Dashboard & App

Meter readers

Caffé shop estimated avoided. Productivity Increased.

Time bounded actions on Faulty, inaccessible meters

Enhanced Consumer satisfaction

Theft / pilferage information made available to vigilance

Reduction in Commercial loss

IMPACT

INITIATIVE Automation of Field Processes

29 26

Business Information at Finger Tips Helped business managers for quick decision

INITIATIVE Business Information at the finger tips

IMPACT 1. Strictly following schedules. 2. Daily Billed Units, Amount, collection coverage, amount.

3. Revenue doubled within 4 years 4. increase Transparency.

27

Processes & CTQ Parameters 80-100 50-79 20-49 0-19

Ne

w S

erv

ice

Co

nn

ecti

on

Knowledge of process Could describe the NSC process on his

own in a proper way

Could describe the NSC

process with help/support

Couldn't answer properly or

was unaware of the process Couldn't answer at all

Register maintenance w.r.t.

ticket numbers & meter

details

(80% & above tickets generated)

Ticket nos and meter details are

captured in register

(50-80% tickets generated)


captured in register

(50% & below tickets

generated)


captured in register partially

(20% & less tickets generated)

Ticket nos and meter details

are not captured properly in

register

Complete set of documents

The bunch of NSC documents are duly

filled & are complete in all respect

(sign, stamp, info)

The bunch of NSC documents

are filled but there are missing

elements (sign, stamp, info)


are not duly filled & there are a

lot of missing elements (sign,

info)


are incomplete with a lot of

missing elements with missing

pages

Demand note distribution &

record keeping

Demand note is generated and

distributed for new connections

(including Line Ext & Temp

Connection). A copy is attached with

the bunch of documents


distributed for only Line Ext

cases & Temp connections. A

copy is attached with the bunch

of documents


distributed for only Line Ext

cases. A copy is attached with

the bunch of documents

No demand note generated or

No records are kept regarding

the demand note distribution

Information sharing amongst

O&M/MMG/MBC teams

There is synchronization within the

teams w.r.t. info passing, proper

planning & execution

The synchronization within the

teams is missing w.r.t. info

passing & there is no planning

There is no coordination &

effort is not given towards

sharing info or working

according to a plan

There is conflict amongst the

teams and work is getting

hampered due to that

Tickets Closure

80% & above tickets are closed on time

by passing on complete information to

Cust Care

50-80% tickets are closed on

time by passing on complete

information to Cust Care

20-50% tickets are closed on

time by passing on complete

information to Cust Care

20% & below tickets are

closed on time as the

importance is not felt towards

SLA & compliance

Critical to Quality (C-T-Q) Parameters’ Evaluation Criterion:

BPT: Quality Monitoring

32

• Reactive to Proactive

• Activity to Results

• High- touch to High-tech

• Arrogance of Monopoly to Politeness

• Authority of Hierarchy to Expertise

& Concern

• Efficiency as well as Effectiveness

Top Performers- 20 %Self Motivated

Workaholics

Praise, Love Reward,

Training

Middle group – 70%

Without Their

Energy, Skill &

Commitment

Enormously valuable

Company Can’t

Function

Challenge To Keep

Them Engaged &

Motivated (Identify

few & Cultivate

Them)

Bottom – 10 % Non Performers Remove Them

innovative approach to develop loss reduction program” dhond… · innovative approach to develop...

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