安達(dá)信中國(guó)電力行業(yè)分析ppt課件

1、November, 2001Business Consulting Providing Management Consulting Services to the Power Industry in ChinaAgendaSection I.The Situation in China and the Challlenges for Power Companies II.The Opportunities for ImprovementII.Implementing BPR and ERP1I.The Situation in China and the Challlenges for Pow

2、er Companies 2The major stakeholders evident in other power markets are yet to fully develop in ChinaUtilityGovernmentCustomersEmployeesEnvironmentShareholdersCaptive customers cannot choose their supplier of powerLow expectations of serviceLow consumption per capitaEmployees are captive with little

3、 choice to move between employersStaff Turnover 1% in most companiesThe PRC government is yet to enforce major environmental regulations as are evident in most other deregulated marketsFew power companies are fully privatisedNo provincial utilities privatisedPlans for reform have been spoken of, but

4、 no concrete decision yet madeRegulatorsEffective “self regulation through SPCCNo independent regulatory body3From our work with a number of provincial utilities, we observe a number of areas where opportunities exist to significantly improve operating performanceInability to accurately account for

5、different functional segments (Generation,Transmission, Distribution and Retail)Lack of quality financial information generally and inadequate management reportingManagement to technical KPIs and some financial ones, but a broad group of performance measures not usedExcessive duplication of effort b

6、etween business units (eg. accounting, purchasing conducted at multiple locations)Duplication of data entry through lack of integration of technologyExcessive manual processing of major transactional tasks, and some areas completely lacking any form of technology (ie. paper-based records)Non-standar

7、d processes (driven by differing uses of technology within the same organisation)Remuneration based on standard national salary scales impacting ability to reward employees based on performance4III. The Opportunities for Improvement5What is a “World Class or “Best Practice utility?The transition to

8、becoming a “Best Practice power company is an “evolution driven, in most cases, by the deregulation of the market and the introduction of competitionThe evolution starts with operational excellence, and develops into innovation and a customer focus, to a focus on creating value from multiple busines

9、s activitiesOperational ExcellenceFocus on Shareholder ValueInnovation and CustomerFocusObligation to ServeMonopolyCompetitiveSTATE OF DEREGULATIONMANAGEMENT FOCUS6From.To.Functional ManagementManage business functions as defined by regulatory accounting categories to comply with authorised expense

10、budgets.Process ManagementDevelop and manage business processes linked directly to the utilitys outputs to focus resource allocation priorities, improve quality, and control cost.Budget ControlNegotiate costs with government and then conrol expenditures to achieve authorised earnings.Strategic Resou

11、rce AllocationAplly capital and operational, and non-financial resources to achieve competitive advantage consistent with strategic objectives.There are a number of shifts in general management practices required to meet “Best PracticeBooking financial performance or contribution to governmentAchiev

12、e earnings targets as required by government revenue contribution needs.Creating Shareholder ValueIncrease cash flow, reduce risk, and retain or pay out cash based on available investment opportunities.7There are a number of shifts in general management practices required to meet “Best PracticeRegul

13、atory AccountingCollect and report information primarily to comply with regulatory controls and government accounting standards. Management ReportingCollect analyse and report information necessary to support management decision making and performance tracking.Monopoly DevelopmentDevelop geographic

14、territory by promoting load growth.Business DevelopmentDevelop profitable new markets or services that leverage of existing business assets and core competencies.Employee administrationEncourage comparability of compensation among employees, maximise company experience through seniority, and avoid l

15、abour relations-based service interruptions.Human resources developmentDevelop and maintain a focused, agile and effective workforce operating in a culture that supports continued competitiveness.From.To.8Below we have provided a high-level summary of Best Practices that Andersen sees employed in le

16、ading utilitiesBest practice utilities are:Focussing on Asset Management practices that optimize capital and operational expenditure by better understanding customer requirements and applying more rigorous planning methodologiesFocusing Finance activities on adding value to the business, and putting

17、 non-core services into a Shared Services model to improve service delivery and cost, and to standardize processesOptimizing their Supply Chain through better supplier management, focussed procurement strategies, and using web-enabling technologies to streamline the purchasing and logistics processD

18、eveloping Human Resource Management activities away from transaction processing and towards strategy and change managementMeasuring and monitoring performance through Performance Management frameworks that integrate corporate and business unit performance targets to ensure company objectives are met

19、Employing state-of-the art Technology to support business decision making through provision of real-time financial and operational information9Utilities are fundamentally asset-based businesses, requiring long-term, high-value investment decisions, strong project management skills, and back-office p

20、rocesses that can provide cost-effective and timely services to the rest of the businessCorporate OfficeSystem PlanningConstruction, Maintenance and OperationsProcurementAccountingHuman ResourcesApproveAsset PlanningAnnual PlanMaintenance, Repair and OperationsEngineering DesignPurchasing StrategyMa

21、intenance and ConstructionTransaction ProcessingAnalysis ReportingFinance and AccountingTransaction ProcessingRecruitment and TrainingPerformance ManagementHuman Resource ManagementCorporate AdministrationStrategy DevelopmentPerformance Management10Leading utilities are focussing on Asset Management

22、 practices that optimise capital and operational expenditure by better understanding customer requirements and applying more rigorous planning methodologiesCorporate OfficeSystem PlanningConstruction, Maintenance and OperationsProcurementAccountingHuman ResourcesApproveAsset PlanningAnnual PlanMaint

23、enance, Repair and OperationsEngineering DesignPurchasing StrategyMaintenance and ConstructionTransaction ProcessingAnalysis ReportingFinance and AccountingTransaction ProcessingRecruitment and TrainingPerformance ManagementHuman Resource ManagementCorporate AdministrationStrategy DevelopmentPerform

24、ance ManagementLeading utilities are.Optimizing capital and operational expenditure by better understanding customer requirements and applying more rigorous planning methodologiesImproving asset management information to support decision making, allowing these companies to better prioritize where mo

25、ney should be spent and what operational improvement will result from that investment.Ensuring a transparent link between network investment and the objectives/business drivers of the organisation11Portfolio of Assets$?Where do we allocate limited resources?Asset ManagementWhat performance targets d

26、o we need to meet?Do we have the necessary asset information to measure performance?Do performance targets need to be the same for each product or customer?Do we understand what customers expect?Are we too conservative in maintenance routines and planning standards?Do we have the necessary asset inf

27、ormation to understand the impact of current practicesRequired PerformanceCustomer SegmentWork PracticesReliabilityQuality of SupplyServiceIndustrialCommercialResidentialOthersN-1 planningManufacturer nameplate ratingsBetter Expenditure PrioritisationInvestment AnalysisRealistic BudgetsUnderstanding

28、 of Value DeliveredIncreased analysis of capital allocations have the potential to reduce expenditures substantially12Andersen helped TXU in Australia to develop a capital expenditure prioritisation model that will allow them to determine the improvement in SAIDI/SAIFI for a given group of capital p

29、rojects and a given level of spending.Future enhancements to the information base will allow targeted SAIDI/SAIFI improvements by feeder line, and therefore a better targeting of maintenance and capital expendituresReliability17611173024681012141618Project PortfoliosSAIDI MinutesIn actual fact, few

30、utilities are truly exhibiting “best practice in asset management, but competition and deregulation are making more utilities see the benefits of doing soLeading utilities are developing the potential to link capital expenditure with defined performance outcomesReliabilityABCDE13Leading utilities ar

31、e optimizing their Supply Chain through better supplier management, focussed procurement strategies, and using web-enabling technologies to streamline the purchasing and logistics processCorporate OfficeSystem PlanningConstruction, Maintenance and OperationsProcurementAccountingHuman ResourcesApprov

32、eAsset PlanningAnnual PlanEngineering DesignPurchasing StrategyMaintenance and ConstructionTransaction ProcessingAnalysis ReportingFinance and AccountingTransaction ProcessingRecruitment and TrainingPerformance ManagementHuman Resource ManagementCorporate AdministrationStrategy DevelopmentLeading ut

33、ilities are.Integrating systems between engineering design and purchasingImproving project delivery through better project reportingDeveloping procurement strategies (strategic sourcing) to leverage spending across the organizationReducing the number of suppliers (simplifying supplier management and

34、 payment processing)Monitoring supplier performanceMaintenance, Repair and OperationsPerformance Management14Leading utilities are integrating design tools with purchasing and inventory systems to provide a seamless process for project cost evaluation and materials requisitioningDesign Estimating Sy

35、stemDetailed DesignBill of materialsPurchasing and Inventory systemThe estimated cost of materials based on inventory information is returned to provide an accurate cost of the project requirements Simplified process overviewStandard designs and assembliesOn-line accessDefined choice of materialsPro

36、ject IdentificationThe required materials are checked through the inventory and purchasing system for price and availabilityPurchasing If these requirements push inventory levels below those required, an automatic re-order message is sent to the Purchasing Dept15Project Accounting in leading utiliti

37、es allows reporting and analysis by individual project, and technology can bring this to the desktop of each managerProjects Past Estimated Due DateLists projects beyond the original projected In-service dateProjects by StatusLists Projects by status (eg. New, In-service, Near completion)ABCBy proje

38、ctBy locationBudget vs ActualTotal O&M Costs By Project ManagerUse of Contract ServicesProject DrillbackAllows research into the feeder systems for project related chargesProject Resource Type AnalysisShows activity against a project in the form of Journal Entries16Companies not focussed on effectiv

39、ely managing planning, suppliers, materials storage and distribution exhibit a number of the following problemsNo purchasing strategy at Corporate, Group, Divisional or Business Unit levelsThe business is unable to best leverage the combined buying power of the organisation with suppliersThere is a

40、lack of visibility and detail on expenditureThere are few controls on procurement with maverick buying habitsThere is a lack of co-ordinated approach with other functions .such as engineering, plant maintenance, field servicesExcessive inventories, and obsolete or redundant stockThere is a lack of c

41、ontrols with no or limited visibility of the true inventory levelsWhat is wrong with your Supply Chain Management?Lost or unaccountable inventoryShortages causing plant or network down-time or expensive emergency actionsLow efficiency and performance throughout the end to end process (purchasing sta

42、ff spend a significant portion of their time performing administrative tasks)High total cost base and unsure where savings are best sought Unclear improvement strategy and focus areasAntiquated purchasing systemsManual purchasing processesExcessive numbers of suppliers (which drives excessive proces

43、sing requirements)We observe a number of common symptoms of poor supply chain performance17Commodity Action Teams (CATs) are specialized purchasing groups comprised of both procurement staff and operational staff to ensure all relevant experience is utilizedCATCommodity Action Teams are flexible and

44、 dynamic work groups resulting in:Focused strategic effortGreater knowledge and skill captureImproved decision qualityImproved inter-functional communicationImproved goal achievementInnovationTeams are comprised of relevant staff from multiple departments who bring to the group operational expertise

45、 and process knowledgeCommodity Action Teams Composition: IllustrativeCATs will manage the procurement strategy for high value or strategic itemsPurchasing of these items across the organization is aggregated to increase the spending power of the company18Both Reliant and Enron are examples of how f

46、ocussed procurement strategies can deliver significant reductions in expendituresAndersen assisted Reliant Energy through a complete analysis of all external expenditure and identified and prioritized opportunities for improvement. Based on the results, Andersen facilitated 22 client teams through o

47、ur Strategic Sourcing methodology in four separate waves. The project achieved the corporate objective of improving cash flow by over $30 million per year.Andersen helped Enron perform a complete redesign of supply chain management processes for the Pipeline Group. Processes included organizational

48、design, national purchasing contracts, inventory management, Accounts Payable and supporting systems. We further assisted Enron in creating a strategic sourcing program for all of its business units. The project formed seven Commodity Action Teams in two separate waves and identified over $41 millio

49、n in annual savings.Andersen is currently performing an assessment of purchasing activities for identified business units to establish necessary platform processes to implement the SAP B2B application and to facilitate supplier integration.19Leading companies are focusing Finance activities on addin

50、g value to the business, and putting non-core services into a Shared Services model to improve service delivery and cost, and to standardise processesCorporate OfficeSystem PlanningConstruction, Maintenance and OperationsProcurementAccountingHuman ResourcesApproveAsset PlanningAnnual PlanMaintenance

51、, Repair and OperationsEngineering DesignPurchasing StrategyMaintenance and ConstructionTransaction ProcessingAnalysis and ReportingFinance and AccountingTransaction ProcessingRecruitment and TrainingPerformance ManagementHuman Resource ManagementCorporate AdministrationStrategy DevelopmentLeading u

52、tilities are.Reducing the focus on administrative and transaction processing tasksFocussing the Finance Department on becoming a “partner to business units by providing reliable, timely financial information to support improved management controlUsing technology to enable more timely and accurate fi

53、nancial informationAdopting a Shared Services model to centralize and standardize transactional processesPerformance Management20The evolving role of Finance means focusing on creating value and reducing costs, and creating a fundamental shift from transaction processing to a “business partner for t

54、he operating unitsFinancial/ Statutory ReportingProcess TransactionsProvide Insight From InformationProvide Information From DataProcess Transactions/Collect DataFunctionally focusedPerformance not measuredTransaction drivenCost vs. service benefit analysis not madeLow-skilledInflexible, ReactiveRep

55、orting/budgeting orientedProcess focusedMeasured against explicit objectivesValue-driven, business results drivenCost vs. service benefit analysis utilizedHigh-skilledFlexible, ProactiveProfitability orientedTraditionalBest Practice21Shared Services is a term that describes the consolidation, standa

56、rdization, and reengineering of a support process into one or more units that serve the entire organizationBest Companies implement a shared services strategy to: 1) standardize work policies, 2) employ and consolidate common systems, 3) increase the span of control (ratio of staff to managers), 4)

57、take advantage of economies of scale, and 5) eliminate duplication of effort.Functions organised into Shared Services can be transactional, or can have a greater degree of specialisation required.High Volume, Routine TransactionsSpecialized SkillsFor example:Accounts PayableAccounts ReceivableCredit

58、 and CollectionsPayrollProcurementHuman Resource Management Services Property ManagementFor example:TaxesInsurance and Risk ManagementLegal ServicesMajor ProcurementRegulatory ComplianceOccupational Health and Safety22Many utilities are using Shared Services as a means of streamlining non-core busin

59、ess processes, as well as to facilitate the regulatory separation of certain business activities required in the power industryBoardCorporate OfficeCompetitive ServicesCorporate ServicesUtility ServicesUtility AUtility BUtility CAccountingAuditingCommunicationsFinanceProcurementHuman resources and i

60、ndustrial relationsInformation systems LegalReal estateProperty GroupFacilities GroupEquipment Rental Co.Air Conditioning Co.Engineering Co.Energy Ventures GroupGeneration Co.Wholesale + Retail Trading Fibre Network Co.Transmission CompanyEnergy Company A - a publicly traded diversified energy compa