“BUSINESS EXCELLENCEPROGRAM”IN MSEDCL

CMA Jitendra L Ahire, ICWA

Framework of Business Excellence

Team of business excellence comprise with highly passionate, dynamic, vibrant and professional peoples selected from various disciplines and having expertise in field like Strategic , Operational , Technical , Billing, IT, Quality Control, Accounts, Legal and HR .Formation of team as “ Special Task Force” on Business excellence with high recognition, well equipped and permanence in nature.Special task Force responsible for Research, develop and execution of strategic, creative, innovative, intellectual processes, IT base solutions and best practices.

About Business Excellence Program• MotoQuality is our Job.Customer satisfaction is our duty. Customer loyalty is our future.

Working principleMinimum exercise Maximum benefit

Working ThemeAssess each unit Recover every rupees

Why Business Excellence?

• To face- 3 C’s Challenges, Competition & Changes• Using- 3 T’sTool, Technique & Technologies• With – 3 E’sEfficiency, Effectivity & Economy• To achieve- 3 P’sProductivity, Performance & Profitability

Examples of BE initiative in MSEDCL• Single Phasing• Gavthan feeder separation scheme (GFSS)• Protocol of Load shedding in High Loss Areas• Photo Meter Reading• Online New Connection Application & tracking• Mobile Apps for Consumer for multiple services on

one click• Mobile Apps for Meter Reading • Mobile Apps for Employees• Online Request Transfer Application, etc.

Bicycle View

Introduction

MSEDCL is leading organization in power distribution having 2.14 crores consumer in various category with wide network.Customer driven organization Committed to provide quality of services and power at affordable cost to all customers. Company successfully implement R-APDRP program to strengthen distribution network. Adopt IT based programs SAP, ERP, NC, DC, NDM, PORTAL, SCADA initiative in systems. Recently under Digital India program, company launched various Mobile Apps to enhance the performance and quality of consumer services.

Business ExcellenceBusiness Excellence is about developing and strengthening the management systems and processes of an organization to improve performance and create value for stakeholders. It is much more than having a quality system in place. Business Excellence is about achieving excellence in everything that an organization does (including leadership, strategy, customer focus, information management, people and processes) and most importantly achieving superior business results.

. “People Create Results”

Business excellence nothing but the balancing of two wheels of success- customer satisfaction and financial health.This improvement program having prime goals and objectives are to create learning environment in organization and promote best practices at every level to optimize the performance in various key areas to achieve business excellence and knowledge enrichment and skill enhancement to ensure sustainability .The program based line is “people create results”

Strategic initiative of Management

Business excellence Program are not traditional, it is the strategic initiative of top management to achieve Business Excellence through strategic methodologies like- BPR, Lean Management, Six Sigma, kaizen, Operational Audit, MBO, TQM and etc.

Business excellence Task Force through drill down surveys of people, practices and technologies, identifies key performance areas and KPI , practices and develop IT base solutions, orientation programs, employ creative and innovative measures, strengthen internal control, insure quality, strategic planning and best practices for improve performances in every aspect.

To drive financial success…

Equip people with Knowledge, Skills, Systems and Tools….

To build the strategic capabilities…

Needed to deliver uniquesets of benefits to customers…

Financial

Learning and growth

Internal process

customer

BALANCE SCORE CARD APPROCH

LEAN MANAGEMENT-Lean is focused on the elimination of all non-value-adding activities and waste from the organization’s processes and identify delays

SIX SIGMA-Improve performance on Critical Customer Requirements. Highly disciplined process that focuses on delivering near perfect products and/or services. Can be applied to any process or product to eliminate defects and their associated cost, and reduce variation.

Business process reengineering -BPR is the analysis and redesign of workflows within and between enterprises in order to optimize end-to-end processes and automate non-value-added tasks.

TOTAL QUALITY MANAGEMENT-A management philosophy embracing all activities through which the needs and expectations of customers and community and the objectives of an organization are satisfied in the most effective manner maximizing the potential of all employees in a continuing drive for improvement.

KAIZEN- a Japanese business philosophy of continuous improvement of working practices, personal efficiency, etc.

Six Sigma ProcessFormulating the Practical Problem

Phase Question

Define What do I want to improve? What is theproblem statement?

Measure What’s the best way to measure? Does performance meet expectations? How much variation is there?

Analyze How good is my process today? What is at the root of the problem? What causes the process to behave the way it does and creates the output?

Improve What’s at the root of the problem? Developsolutions to eliminate or minimize the root causeinfluence on the process and outputs?

Control How can I sustain the improvement? Whatcontrols can be put into place?

Objective of Program

Generates sustained financial success Sets performance goal for everyone in

organization Emphasis on KPIs and develop PPA Enhances value for customers Accelerates rate of improvements Promotes learning across boundaries Performance Accountability Executes strategic change and more…

Outline of program

Sample survey of people, existing practices and technology.

Identify and analyze key areas of performance deficiencies Prioritize Improvement Opportunities and develop improved best practices.

Initiate strategic planning to operational improvements

Develop new IT base solutions for ease to work.Designed and conduct orientation program to

create system awareness, knowledge enrichment and skill enhancement.

Improve customer value by addressing chronic problem

Initiate performance accountability

Phases

• Phase 1: Survey & Assessment• Phase 2: Analysis and Reporting• Phase 3: Action Planning• Phase 4: Development and

Training• Phase 5: Implementation• Phase 6: Sustainability and

Improvement

Sample Survey and AssessmentSample survey is scientific interaction with peoples working in system technology in operation and drill down in current practices are emerging for understand clarity of existing- Operational and domain Knowledge base Deviations and variances Gaps, cracks and performance deficiency Waste reports & Processes, Non Value Adding Activities, Weakness in internal control Identifying Key Peoples And There Role, Designing Appropriate Orientation Training program

for enhance system awareness to efficient utilization of technology and more…..

Orientation Training Program

• Orientation training program is phase of major reform measure under Business Excellence.

• Training boost morale, change attitude, create enrichment in skill & knowledge Management.

• Due to this on-site training employees get more clarity about there works. This could real help to develop TQM

• Ongoing training program initiate knowledge management and provide opportunity to continuous quality improvement in areas like KPI and AT& C losses

• Better awareness about system tool improvise effective and efficient utilization of technology and more….

Multiple Levels of Learning

Training, Rewards and Recognition

We strongly believe that Quality is a journey and not a destination.To engrain quality DNA, widespread organization wide training and a consistent approach that solves key problems, using the most appropriate methods has helped to build a culture of excellence.Quality competitions and rewards and recognition given to employees who live and breathe the quality way of life, helps motivate other employees to learn more and participate. These are the building blocks that pave the road of business excellence.

Key Excellence IndicatorVisionary Leadership Planning ,Innovation And CreationCustomer focusAnalytical ExerciseAgilitySmart thinkingProactive AttitudeTransformationLinkage and alignmentOptimum Utilization Of Resources Strong Internal ControlThroughout Effective and meaningful CommunicationPerformance Accountability

Key Strategic Measures

Creation of check lists for every activity for correctness

Suggestive list “what to do” and “what not to do”Creation of alert and response groupsObservations of the symptoms and their

remediesTransformation of information Develop prevention , corrective and detection

strategiesIdentifying of best practices and there promotionCreation of Quality Circles/group

Key Performance Indicator

Increase “ SALE” Increase “ DEMAND” Increase “ Collection Efficiency” Increase “ Customer Satisfaction

This program strongly emphasis on reduction of “AT&C Losses” in “single digit” primary “Commercial Losses ” through its core activities.Development of Practical Plan of Action is one of the core objective Business Excellence.

Case Study of Thane Circle Oct-2015Sample B E Analysis of MIS Folder of Month Oct-2015 of TUC – Faulty & New connectionNo. of consumer billed with faulty-28252Drill down Analysis- 1. Consumer having progressive reading and greater than

average billing- There are high frequency of consumer billed with less average than actual consumption recorded.

2. Consumer billed faulty for more than 2 billing cycles- There are possibility consumer billed faulty for 1 or 2 or 3 years

3. Consumer billed faulty with average more than 100- Total Faulty meters consumption about 4 Mus.

4. Consumer billed faulty other than Res.- @2700 consumers are non-res.

New connection analysis-1. Consumer first billed with delay - 418 case having

more than 6 month and 63 consumer billed delay more than 1 year.

2. Consumer with Zero Security Deposit- 146 cases (pure unbilled cases)

3. Consumer in paid pending- 7333 consumer in paid pending for more than 6 months.

4. The interesting study is that out of these how many consumer are not yet released connections and how many consumer released connections but NSC not updated?

2012 consumers in paid pending for more than 2 years

Core activities under R&DACTIVITY KEY AREAS

New connection Irregularity in Technical feasibilityRecovery of old PD Arrears Delay in first Bill, verification of first bill, NSC feeding process

Meter Reading Average /fictitious billing, faulty billing, under billing, RNA/RNT, wrong billing, other billing complaints, verification of excessive consumption

Bill Distribution 100% delivery of bill system, Prompt delivery, maintain record of non receipt bills

Bill Revision Avoid duplication, Accuracy in revision, Timely feeding, updation of concurrent static data with B-80, 100% bill revision through System, System controls, Internal control, periodically Reviews

.ACTIVITIES KEY AREAS

Security Deposit Verification & deletion of Duplicate SD Receipt, updation of SD, Recovery of Addl.SD Demand, SD deletion

PD Consumer Recovery of PD arrears, Legal Actions, Clarity and proper interpretation for action, Checking use of PD consumer, Strategic Action Plan, PD consumer with negative arrears

Meter Replacement

Discrepancies in Mass replacement, selection of priority & criteria for replacement, abnormalities in updation process , in time update of replacement, accucheck and physical verification before replacement

Statics Update Timely, efficient, and accurate updation, online application for updation, integration with other billing activities, minimize abnormalities

ACTIVITIES KEY AREASCheque bounce

Prompt recovery, Prompt Debit, legal action,Review of Cheque acceptance process

Theft drives Criteria & techniques of theft detection, accucheck drives, PD verifications TOD Analysis Creative Lists generation, technologies of thefts, recovery and investigations

TOD Billing Application for Analysis of MRI data, periodically physical verifications, Static data and manual reading Updation application

Pre-validation Abnormal reading, wrong punching of data, minimize status, prompt verification and corrections

Post validation

Avoid recycles of abnormality, credit bill verification, pinpoint of under billing consumers & High arrears consumers, excessive and abnormal billing, instead of lists actual bill sorts for validation

ACTIVITY KEY AREAS

Collection Mobile counter, cash card for agency, retired employees and staff working rural and remote area , online collection, convenience of payment facility, Duplicate bill, rectifications

Recovery Drives Creative Lists, Area wise criteria option, planning of recovery, control on arrears, motivation of consumers through media meetings, categorization of AG consumers

Cash tally Online Direct updation or Cash tally updation application, integration with e-connection

Meter utilization Meter utilization application, Updates in IT system for reconciliation

Reconnection Updation of skip image in IT System report , Reconnection Paid/ PD arrears paid before 6 month list for verification, verification of APD and Lock PD

ACTIVITY KEY AREAS

Consumer grievances

Minimize dispute, grievance attend as feedback, categorization, attend chronic problems, satisfactory explanations

Knowledge Management

Innovative data mining tool, subject wise designing of circulars, orders, interpretations, regulation to ready references, consumer data base

Quality control Generation and verification of creative list periodically, transformation, following results oriented strategies, continuous efforts, trainings, quality groups

IT reports Application for design and generate report for user, improvement and addition of innovative reports, eliminated unnecessary reports

Street light consumer

Transfer to TOD Billing, periodically Physical verification

ACTIVITY KEY AREAS

MIS Report Dash Board system, Statistical, graphical, analytical, comparative & benchmarking view, coding for downfall & improvement, communication & feedback

Duty/Assessment Statement

Application for Duty & Assessment statement

Billing process Avoid Delay in processing, prompt re run facility, resolve abnormality in initial processes

Faulty meter Prompt replacement, Average consumption, reasons for faulty, physical verification, no display meter

Skip images Updation in IT system for report generation, reconciliation with data

ACTIVITY KEY AREAS

Change of name Simplicity in procedure, clarity regarding document,

Metering Quality and performance, availability of meters, smart metering

Assessment and Recovery

Assessment against slowness, as new meter consumption, tariff, addition load penalty, PF penalty

AT & C Losses Technical Losses, Commercial Losses, Energy Audits, PPA for AT&C Losses Reduction, Integration, Intellectual efforts, Identification of unrecorded losses.

Clubbing of meter Verification of connection for clubbing, adjustment of load, adjustment of SD

This is very initial effort and primary road map. As work progresses, continuous improvement expected on accounts of experience curve and assessment of people, processes and technologies.

CMA JITENDRA AHIRE ICWAjitendraahire1975@gmail.com

8097550145