Internship Report on LESCO

v

Submitted To:

Instructor MISI 619

Submitted By:

Muhammad Abuzar

MC060400043

Fall 2009

MBA (MIS)

Virtual University of Pakistan

Acknowledgment

We owe our felt thanks to Allah Almighty who enables us to discharge such

responsibility with due care and caution. My report will remain incomplete if I don’t

mention the sincere efforts of those gentlemen who helped and guided me in completion

of my internship and this report. First of all I want to thanks to ALLAH Almighty; I also

want to thanks to my worthy teachers the main source of enlightenment of our minds and

the development of natural potentials. After him I want to thanks Mr. Tahir Assistant

Manager and Mr. Naeem deputy Manager administration and technical, which helped us

in all matter.

At the end I want to say thanks to whole staff and management of Lahore Electric Supply

Co. for their cooperation and for providing a very friendly environment to gain practical

knowledge.

Muhammad Abuzar

MC060400043

MBA (M.I.S)

Fall 2009

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Executive summary

The purpose of this report is that the student can get a glance about the practical life and

through this experience makes his mind according to his own interest. I choose Lahore

Electric Supply Company for my Internship; because I have Three Years Diploma of

Associate Engineer (D.A.E) and Bachelor Degree (B-Tech) in Electrical Technology

therefore I preferred this sector. Lahore Area Electricity Board was reorganized into one

such corporatized entity under the name of Lahore Electric Supply Company (LAHORE

ELECTRIC SUPPLY CO.) with effect from 22-03-1998, with the aim of

commercialization and eventually privatization. Lahore Electric Supply Company

(LESCO.) has 500,000,000 public shares each of Rs.10.It also have very advance

Management Information System that comprises on Linux Environment and ORACL

Data base system. In Management Information system of Lahore electric supply co.

daily, weekly and monthly bases reports are generated. The Financial and Human

Resources related reports are also a part of MIS section. The Lahore Electric Supply Co.

is now fully harnessing the advantages of Management Information System and in almost

all studies from detailed monitoring of LESCO’s defaulters to Analysis of Electricity

tariffs; computer centre has become focal point for generating information imperative for

management policy formulation. In addition, processing of special reports for Authority

and various WAPDA formations is carried out by the computer centers. The division-

wise computerized receivable reporting and monitoring system providing twenty

different arrears analysis reports have been expanded to provide tariff wise information.

These reports have been further extended to support monitoring at the sub division level.

LESCO’s MIS system has been instrumental in implementing the instructions. The

incentive packages were promptly and uniformly implemented giving timely relief to the

agriculturist and industrial consumers. Since it is an engineering firm therefore numerous

software for System Planning, Distribution, and Load Management and for Design of

Distribution system in consumer area is used. In Lahore Electric Supply Co I emphasized

on the Database management system and Management information system. During the

interview and questionnaire I get a lot of knowledge and practical skill, and I want to

share this experience with you. In this report I have written my suggestions, my feelings

and also what I got from all this internship training. This report consists of Vision,

Mission, Goals, objectives, organization’s structure SWOT analysis and

Recommendation.

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Table of Contents

Brief Introduction 09

Overview of The LESCO 10

Brief History 10

Nature of Organization 11

Business Volume 12

Product Line 13

Competitors 13

Competitors Overview 14

Brief Introduction of Branch 16

Organizational Structure 17

Top Level Management 18

Board of Directors 19

Registered Head Office 20

Mission-Vision and Goals 21

Comments on LESCO Organizational Structure 22

Introduction to all Braches 23

Human Resources Management 23

Finance Directorate 25

Operation Directorate 26

Power Dispatch Center 27

Technical Directorate 28

Material Management 28

Project Management Directorate 30

Training Center 31

Customer Services Directorate 32

MIS Directorate 32

Organizational Management Analysis 33

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Plan of Internship 34

Structure / Functions of MIS 37

Major Function of MIS 38

MIS Support to other departments 41

Critical Analysis 45

SWOT analysis 46

Internal Factor Evaluation Matrix 48

External Factor of Evaluation Matrix 49

TOWS Matrix 50

Competitors Profile Matrix 52

BCG Growth-Share Matrix 53

Porter Five Forces analysis 53

Conclusions 54

Recommendations 54

Conclusions 55

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Brief Introduction:

The environment and structure of the power industry throughout the world are

undergoing dramatic change. The power sector is moving from monopoly to privatization

and from integration to disintegration. To keep pace with this change, the Government of

Pakistan approved a Strategic Plan in 1994 as a consequence of which the power wing of

WAPDA has been unbundled into 12 Companies for generation, transmission and

distribution of electricity.

In December 1998, the WAPDA Act was amended, which allowed the creation of

Pakistan Electric Power Company (PEPCO), and unbundling of WAPDA’s Power Wing

into: Eight (8) distribution companies (formed from existing area boards);

three (3) generating companies (comprising 11 of WAPDA’s generating plants); and

National Transmission and Dispatch Company (NTDC).

Various Regions of WAPDA were performing the local areas electricity distribution

service. Then the Area Electricity Board (AEB) Lahore, on the eight AEBs in Pakistan,

was established under the scheme of Area Electricity Boards in 1982, in order to provide

more autonomy and representation to provincial government, elected representatives,

industrialists, agriculturalists and other interest groups in functions of the AEBs.

Lahore Area Electricity Board was reorganized into one such corporatized entity under

the name of Lahore Electric Supply Company (LESCO.) with effect from 22-03-1998,

with the aim of commercialization and eventually privatization.

Overview of the Organization:

LESCO’s area of responsibility covers Civil Districts of Lahore, Kasur, Okara and

Sheikhupura.

Lahore Electric Supply Co. comprises of the following seven distribution Operation

Circles, one Construction and one GSO Circle, as detailed below:

North Lahore Circle 5 Division / 24 Sub Divisions

Central Lahore Circle 5 Division / 24 Sub Divisions

Eastern Lahore Circle 4 Division / 20 Sub Divisions

South Eastern Lahore Circle 4 Division / 21 Sub Divisions

Okara Circle 4 Division / 20 Sub Divisions

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Sheikhupura Circle 5 Division / 29 Sub Divisions

Kasur Circle 5 Division / 21 Sub Divisions

Construction Circle 4 Divisions

Grid System Operation Circle 3 Divisions

Brief History:

The restructuring programme of WAPDA's Power Wing is based on the new strategic

policies of the GOP and endorsed and supported by the donor institutions. The aim of this

transition is to install corporate and business culture through: adopting of good business

practices, enhancing productivity and efficiency, including customer orientation and

service culture, improving quality of services setting performance targets, reducing costs,

theft and wastage. This will be based on extensive use of information technology,

management information systems, and monitoring and prudent decision-making.

It has been decided that some of the functions currently being performed by WAPDA are

of national importance and will therefore continue to remain with WAPDA/GoP in the

largest interest of the country.

PEPCO has been fully empowered and is responsible for the management of all the

affairs of corporatized nine Distribution Companies (DISCOs), four Generation

Companies (GENCOs) and a National Transmission Dispatch Company (NTDC). These

companies are working under independent Board of Directors (Chairman and some

Directors are from Private Sectors). All Entities have the physical possessions of all their

operational assets.

On 24th Feb. 2007 Ministry of Water & Power notified NEPRA approved Tariff for all

Distribution Companies replacing unified WAPDA Tariff.

Legal Agreements such as Business Transfer Agreements, Operation Development

Agreement, Energy Supply Agreement, Business Supplementary Agreement and Fuel

Supply Agreement etc. are executed between Lahore Electric Supply Co. and Corporate

Entities to facilitate commercial operations.

Regulatory instruments like Grid Code, Distribution Codes, and Performance Standard

for Distribution Companies and Transmission Companies were drafted and got approved

from NEPRA in 2007.

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Nature of the Organization:

In exercise of the powers conferred on the National Electric Power Regulatory Authority

under Section 21 of the Regulation of Generation, Transmission and Distribution of

Electric Power Act 1997, the authority grants the license to the Lahore Electric Supply

Co. for the Distribution Services of Electric supply and make sale of Electric power to the

consumers in the services territory and concession territory subject to and in accordance

with the terms and conditions of the NEPRA.

According to the license issued to the Lahore Electric Supply Co. the company have to

provide the electric supply to their Domestic, Bulk, Commercial and industrial

consumers.

Business Volume:

Operating Fixed Assets Rs. 21,311 (in Millions)

Capital Work In Progress Rs. 2,130

Rs. 23,440

Long Term Advances Rs. 51

Long Term Deposits and Deferred Costs Rs. 0.36

Rs. 23,491

Stores, spare parts and loose tools Rs. 2,151

Trade Debtors Rs. 7,686

Loans, advances and other Receivables Rs. 8,046

Cash and bank balances Rs. 9,534

Grand Total Rs. 50,908.30

Product Lines:

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Lahore Electric Supply Co. distributes the electric power/supply to Domestic,

Commercial, Industrial and Bulk consumers. The company also provides the maintenance

of Electrical Equipments.

Competitors:

Faisalabad Electric Supply Co. (FESCO)

Gujranwala Electric Power Co. (GEPCO)

Hyderabad Electric Supply Co. (HESCO)

Islamabad Electric Supply Co. (IESCO)

Peshawar Electric Supply Co. (PESCO)

Quetta Electric Supply Co. (QESCO)

Multan Electric Power Co. (MEPCO) and

Karachi Electric Supply Company Ltd. KESC

Overview of the Competitors:

Faisalabad Electric Supply Co.

FESCO Distributes and supplies electricity to about 2.76 million customers within its

territory with a population over 26.5 million under a Distribution License granted by

National Electric Power Regulatory Authority (NEPRA) pursuant to the Regulation of

Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act).

Geographical service area of FESCO comprises Faisalabad, Sargodha, Mianwali,

Khushab, Jhang, Bhakker, T.T Singh and Chiniot.

Gujranwala Electric Power Co.

Gujranwala Electric Power Company (GEPCO) has been setup over area of jurisdiction

and network of former Area Electricity Board, which was created in early eighties.

It encompassed the areas of existing Districts of Gujranwala, Hafizabad, Sialkot,

Narowal, Gujrat and Mandi Bahauddin. GEPCO was incorporated on 25th April 1998

and obtained Certificate for commencement of business on 5th June 1998. Management

and Administration is entrusted to a Board of Directors. We have about 2,356,305

connections; Average monthly Collection for the year 2008-09 is approximately 3.2

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billion Rupees.

Hyderabad Electric Supply Co.

Area Electricity Board (AEB) Hyderabad was one of the eight AEB's constituted through

amendments in WAPDA Act during 1981. Later on Government of Pakistan approved

revamping of WAPDA power sector in April 1998, resultantly twelve corporate entities

were formed, Eight Distribution Companies (DISCOs), one National Transmission and

Distribution Company (NTDC) and three Generation Companies (GENCOs). Now one

more GENCO has been established. All these companies have been incorporated under

Companies Ordinance 1984.

Islamabad Electric Supply Co.

IESCO aspires to become a major, diversified, transitional, integrated power supply

company in Pakistan, with a strong environment conscience, playing a national role in

electricity supply and distribution. At IESCO, we believe that time has come for us to set

our sights beyond just being a provider of conventional services. We expect to carry the

spirit forward by training and leading a crack team through the portal of Contact Center

that will push the frontiers of our interactive experience with our customers. Our Mission

is to bring the assurance of energy to our customers, with world-class quality and

commitment for satisfaction as we continue in our quest for excellence.

Peshawar Electric Supply Co.

Peshawar Electric Supply Company (PESCO), located in Peshawar provides service of

power distribution to over 2.0 million consumers of all civil districts of N.W.F.P,

Pakistan. At PESCO networks, we own and maintain N.W.F.P’s electricity distribution

system via 132, 66, 33KV sub-transmission lines, sub-stations and 11KV & 440V low

tension lines with distribution transformers that deliver electricity to your home or

business.

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Quetta Electric Supply Co.

QESCO is operating as a Power Distribution Company and will act as Private

Organization on switching over from Public to Private Sector. QESCO is dealing with

Power Supply System in the whole Balochistan less District Lasbela. It is smallest in

terms of consumers but largest as it covers 43 % area of Pakistan. The peak demand at

the moment is 1177 MW evaluating measures and anticipated to be 1659 MW by the year

2015 with 8 % uniform annual growth. QESCO system is under stress due to huge

number of Agri: Consumers contributing about 70-80 % of Power Demand. Low voltage

profile prevails due to long distances from Generating Sources, besides availability of

Single 220 KV sources from Guddu. The safe drawl of power is 721 MW. To have

additional source another 2x220 KV Dadu-Khuzdar & DG Khan-Loralai Transmission

Lines stands approved through out source funding at the cost of Rs 5.437 and 5.089

billion respectively.  Hopefully, the work completion in totality is expected ending 2011.

Multan Electric Power Co.

MEPCO the Multan Electric Power Company is the biggest Distribution Company of

WAPDA. Its area of operation is from Sahiwal to Sadiqabad, Bahawalnager to

Bahawalpur and Tounsa Sharif to Rajanpur and bordering with Sind, Balochistan and

NWFP. The Charter of MEPCO is to provide the reliability, quality and safety of electric

power supply to the consumers in its Jurisdiction. MEPCO is envisaged for the creation

of the resources and engineering plans for additions, renovation and augmentation of the

distribution system in order to achieve charter.

Karachi Electric Supply Company Ltd.

KESC is one of the city's largest employers: around 17,000 people currently work for the

company. It is also one of the oldest companies in Karachi and was established in the city

even before the creation of Pakistan in 1947. Incorporated on September 13, 1913, under

the Indian Companies Act of 1882, the company was nationalized in 1952 but was re-

privatized on November 29, 2005. KESC came under new management in September,

2008; a significant number of professional managers with experience in running utility

and other large companies have joined under this management and will be running it until

the company is turned into a best practice utility.

At present, KESC is the only vertically integrated power utility in Pakistan and manages

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the generation, transmission and distribution of electricity. KESC covers a vast area of

6,000 square kilometers and supplies electricity to all the industrial, commercial,

agricultural and residential areas that fall under its network.

A Brief Introduction of Branch where I worked

I started my internship training in the Head office of the LESCO. The head office is

situated at 22/A queen’s road, Lahore. The MIS department of the LESCO is situated at

LESCO’s old building at Railway station near Bohar wala Choke Lahore. The worthy

Chief Executive Officer of The LESCO sits in the Head office. Other department like

Administration, HR, Finance and Project Management also occupies in the Head office.

Only MIS department is working in the old building. The MIS department is headed by

Manager MIS. MIS department employ the Windows XP / Linux Operating systems,

Oracle Database system and also have oracle Java based applications. This is based on

ORACLE E-Business Suite certified platform.

In the LESCO I stated my internship training on dated 01/08/2008 to 30/09/2008, during

this period of eight months. I spend first four weeks in different departments where as the

last four weeks I spent in MIS department exclusively.

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Organizational Structure:

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Board of

Directors

C. E. O.

Manager

Internal

Audit

HR &

Admin

Directorate

Customer

Services

Operation

Directorate

MIS

Manager

G.M.

Technical

Finance

Directorate

Legal

Directorate

C. E.

Planning

Sr.

Manager

(O&M) T&G

Sr.

Manager

O&M

Distributio

n

Senior

Manager

P&D

Company

Secretary

Top Management:

Sr.No. Name Position Held

1 Muhammad Azhar Iqbal Chief Executive officer

2 Sardar-ul-Huda General Manager Technical

3Rana Muhammad Ajmal

KhanOperation Director

4 Abid Latif Lodhi Senior Manager P&D

5 Mehboob AlamSenior Manager O&M

Distribution

6 Khalid Mehmood Senior Manager O&M (T&G)

7 Farast Zaman Customer Services Director

8 Saghir Ahmad HR Director

9 Abid Latif Lodhi Finance Director

10 Sayyad Mubashar MasoodLegal Director/Company

Secretary

11 Zahid HameedManager Internal Audit

Board of Directors

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1 Syed Yawar Ali Chairman, Nestle Pakistan

Ltd.

Chairman Nestle Pakistan

Ltd. 308 Upper Mall Lahore.

2Muhammad

Azhar Iqbal Chief Executive LESCO

New LESCO Head Quarter

22-A Queens Road Lahore

3Munawar

Ahmad MalikG.M (GSC), WAPDA

Room 413-WAPDA, House

Lahore

4 Salman IqbalExecutive Director (L&CA)

PEPCO192 Wapda house Lahore

5 Khalid JavedGeneral Manager (C & M)

PowerG-44 Wapda House Lahore

6 Khalid SaeedEx-Chairman, Institution of

Electrical Engineers UK

W-302 Phase III DHA

Lahore Cant

7 Shahzad AlamChief Executive Officer

United Electronics

85 Industrial Estate Kot

Lakhpat Lahore.

8Abid Latif

LodhiFinance Director LESCO

4th Floor, 22-A Queens

Road Lahore.

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Sayyad

Mubashar

Masood

Legal Director/Company

Secretary

132KV Grid Station

McLeod Road, opposite

Moon Light Cinema.

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REGISTERED HEAD OFFICE

Chief Executive Office

22/A Queens Road Lahore

Phone #: 0092 (42) 9204820-30

Fax #: 0092 (42) 9204801

www.lesco.gov.pk

Main Offices:

Lahore Electric Supply Co. has its main offices in following Districts,

District Lahore

Customer services center, Ichhra Lahore

Customer services center, central circle

Customer services center, northern circle

Customer services center, southern circle

Customer services center, eastern circle

Customer services center, township Lahore

District Sheikhupura

Customer Services Center, Sheikhupura

District Okara and

Customer services center, Okara

District Kasur

Customer services center, Kasur

Mission Statement

As the leading electricity distribution company, strive to provide un-interrupted electric

supply and quality service to all customers at the minimum possible cost.

Vision

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Achieve and maintain the highest degree of efficiency, reliability and responsiveness as a

public service organization for variety of customers.

Public and company workers’ safety shall be high on our priority.

Retaining and growing our business, staff and customer base will be of primary

importance.

Developing innovative business relationships both inside and outside our local

distribution area will be key to our success.

Goals

Smooth and consistent flow/supply of electricity

Prompt restoration of disrupted electricity supply

Accurate and timely meter reading and billing

Provision of electricity connection in minimum time

Open door policy to facilitate our customers

Special concessions for quick and timely payment of bill

Availability of stores to deal with emergencies

Feedback through Customer Services Centers

Create awareness amongst employees for adopting safety measures while working on

lines.

Energy saving message dissemination

Creating positive image of LESCO

Take steps for welfare of company employees.

Morale building and to create sense of belonging amongst company employees

LESCO’s Organizational Structure (Comments):

The organizational structure is simply a diagram of all the positions in an organization

and their formal relationships to one another. The immediate value of organization charts

is that they illustrate an organization’s overall shape and configuration in a readily

comprehensible manner. Whatever an organization’s goals its structure should facilitate

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the most effective and efficient use of available resources. Because adaptation is a key to

competitive survival, “The right structure” for an organization is determined by numerous

factors. Organizing is the process of dividing work among groups and individuals and

coordinating their activities to accomplish organization’s goals. As s result of organizing,

activities are segmented or departmentalized. Connections are established with in and

among departments according to some logical pattern.

LESCO’s Organizational Structure is the vertical structure. In organizations like

LAHORE ELECTRIC SUPPLY CO., there are numerous stakeholders. And these

individuals have lack timely information, few are directly involved in managing the

organization. Stakeholders elect the board of directors to oversee the organization. The

board led by the chairman, makes major decisions affecting the organization, board

performs following duties.

Selecting, assessing, rewarding and replacing the CEO.

Determining the firm’s strategic direction and reviewing financial performance; and

Assuring ethical, socially responsible, and legal conduct

The CEO and top level management collectively organize the business of Lahore Electric

Supply Co. in an efficient manner. Infect this is really a hard responsibility to look after

the business of such large company but due to their hardworking, they are not only

handle all the problems but continuously increase the number of projects.

The message from the CEO:

"Lahore Electric Supply Company is building its future upon a foundation of strong core

values. As electricity industry undergoes massive change, our success will come from

respect for people, uncompromised commitment to safety, quality customer services and

support for the communities we serve. Through public-private partnerships, that reflects

these values; Lahore Electric Supply Company looks forward to grow in this era of

unprecedented opportunity. I invite you to learn more about LESCO’s vision for the

future and contribute through your valued suggestions. We trust you will find our internet

site interesting and informative."

A Brief Introduction to all Departments of LESCO

Human Resources and Administration

Under direction from the Chairman and Chief Executive Officer of the Company, HR &

Admn Director shall be responsible for the recruitment and placement of the "right

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people to the right jobs" and enhancing their levels of motivation / morale / job

satisfaction through:-

a) The provision of the necessary support systems and structures such as an attractive

compensation package, a fair and objective system for promotion and career progression,

training and development inputs to keep people in pace with the changing demands of

their jobs, etc.

b) The creation of a working environment and operationalization of administrative

support systems that will promote employee performance and productivity.

More specifically the Human Resources Director shall perform following functions:-

a) A human resource philosophy, which shall govern the company’s actions with respect

to human resources management.

b) Prepare a Human Resource Plan to support the short and medium-term goals of the

company.

c) Develop the policies, guidelines and procedures for the following human resources

management concerns: -

Manpower planning / budgeting

Recruitment and Selection

Appointment, deployment, re-deployment / transfers

Compensation and benefits administration

Career planning and promotion

Performance management

Incentives administration

Training and development

Grant of Move over

Grant of permission for higher education

Consider and approve transfer requests.

Sanction leave.

Duties / Functions of Manager (HR)

1. Recruitment

Manpower Planning

Recruitment and Selection

Appointment and Development

Creation of Posts and Offices

2. Promotions

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Preparation of Seniority Lists / Fixation of Seniority

Career Planning and Promotions

Performance Management

Training and Development

Grant of Selection Scales

Move Over

Preparation and Circulation of Seniority Lists

Maintenance of Service Books

Pension Welfare Fund and Gli Cases

Over Time / Off-Days Wages Cases

3. Transfer / Posting

Transfer and Posting of Staff and Officer

Vacancies Statement and Manpower Data

Incumbency Statement / Register

To Maintain List of Officer Stay Wise

4. Retirement

Retirement and Resignation of Service

Preparation of Pension Papers

Actively supervise and Coordinate the Working of All Administration Staff Posted under

LESCO’s Head quarter.

Establishment Matter Relating To Technical / Non-Technical Staff

Establishment Matter of Officer Regarding Training and Development

Permission of Higher Education to All Employees under LESCO

Permission to Employee for another Job

All Establishment Matter Not Covered Here

5. Miscellaneous

The Cases of Wafaqi Mohtasib / Court Cases Regarding Establishment Matters Will Be

Dealt by Legal / Wafaqi Mohtasib Cell of LESCO’s Head quarter. However, Comments

If So Required By Legal Section / Wafaqi Mohtasib Section Of This Office, The Same

Will Be Submitted By Manager (Hr&A).

Finance Directorate

The Finance Director has overall responsibility of Finance Department. He is Financial

Advisor of the Company. He assists management in Strategic Management decision-

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making. He controls all financial activities of the Company.

He has additional responsibility of ‘Company Secretary’.

The major sections, responsibilities and activities as per new Organ gram given by

PEPCO under Finance Director's control are as under:

Sr. Section Responsibility Activity

1 Corporate AccountingManager Corporate

Accounting

Corporate Accounts

Administration

Payroll

2Corporate Planning &

ControlManager Finance (CP&C)

Corporate Planning & Control

Costing/Pricing

Budgeting

Loan Management

3 Head Quarter Accounts Dy. Manager A/cs (H/Q)

Impress Banking

Pension & Funds

Audit Observation Reply

Pre-Audit & Payments

4 Field Formation A/cs Dy. Manager A/cs (F.F)

IOT Reconciliation

Receivables/Payables

Fixed Assets Register

Accounts Consolidation &

Financial Reporting

Duties of Manager Finance-Corporate Planning & Control

To receive the budget requirements from different formations of LESCO and consolidate

the budget on the basis of activity level

To prepare and present the budgeted P&L and Balance Sheet to the Finance Director for

the approval of Authority & Board of Directors.

Allocation of annual budget on the basis of activity i.e., Area, No of consumers, No of

transformers and No of Vehicles

Monitor the budget with actual results on the basis of variance analysis

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Close liaison with Financial Module group of WAPDA and prepare the Financial Model

of LESCO on the basis of prehistoric data and different indicators.

Development of monthly management accounts reporting system covering Financial,

Operational and other efficiency / performance indicators of the company

To assist Finance Director in Board of Directors meetings and AGM

Any other Job assigned by the Finance Director or Chief Executive.

Job Description of Manager Corporate Accounting

To supervise and check the work of B A Os / Section in charge of Payment, Admin,

Consolidation, Banking and Assets through Dy. Manager Accounts Concerned

To assist Finance Director LESCO in day-to-day work

To participate in different meetings for and on behalf of Finance director

To work as adviser to the chief executive-LESCO, in the absence of Finance Director,

Any other Job assigned by the Finance Director

Operation Directorate

The basic tasks performed by the operation directorate are:

Operation and maintenance of distribution system

Operation and maintenance of sub-transmission and grid systems

The Directorate consists of the following departments: -

O&M (T&Gs) Department

The Operation & Maintenance (Transmission and Grid Stations) - O&M (T&Gs)

department headed by a Senior Manager is responsible for the electrical network at

132KV and 66KV and has under its purview 67 132KV and 15 66KV Grid Stations and

1515 KMs of 132KV and 628 KMs of 66KV lines. The department carries out its

functions in the field through the Superintending Engineer (Grid System Operation) - SE

(GSO) by issuing guidelines, schedules and authorization for the preventive and

emergency maintenance programs, and carries out frequent inspection to ensure

compliance by the field organization.

O&M (Dist) Department

The Operation & Maintenance (Distribution) - O&M (Dist) department headed by a

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Senior Manager, is responsible for the electrical system at 11KV and 400V. The system

consists of 879 feeders totaling 20914 KMs of 11KV and 13694 KMs of 400V lines and

45706 distribution transformers. Policy guidelines, schedules and authorization for

maintenance of feeders are issued to the 6 operating circles in the field headed by the

Superintending Engineers and frequent inspections are carried out to ensure compliance.

The department also has a civil engineering division headed by an Executive Engineer for

the design, construction and maintenance of all the buildings of LESCO.

Technical Services Department

The Technical Services Department carries out the testing, calibration and repair of all

the energy meters, and also the installation of the maximum demand meters. It is headed

by 02 Managers who have 03 distribution circles each as their areas of responsibility.

PDC Department

The Power Distribution Control Department headed by an Executive Engineer has been

set up to monitor the entire electrical network of LESCO round the clock. Information

about the supply breakdowns, major equipment damages and occurrences of importance

are received through telephone and fax from the field and are transmitted to the highest

level in LESCO and WAPDA, and then instructions are passed for situation management.

Safety Department

The Safety Department headed by a Deputy Manager ensures that the system is operated

in compliance with the statutory provisions regarding safety for the employees and the

public. Frequent inspections are carried out and safety parades by the employees are held

to ensure that working practices are safe and the employees are adequately trained in

safety measures. Every accident occurring to an employee, member of public or animal is

investigated meticulously and lessons learnt and disseminated.

In order to update the assets information and to monitor the efficacy of its operation,

maintenance and safety policies and programs related to the entire LESCO electrical

network, the following returns are prepared and issued.

Technical Services and Operations

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M&T organization is one of the most important departments in LESCO, the company

revenue depends on accurate functioning of its cash box i.e., energy meter, M&T deals

with checking installation, testing and re-calibration of energy meters the importance of

M&T can’t be over emphasized. It also attends any fault in metering equipment-

involving panels, MDI meter, C.Ts, P.Ts or cable and this ensures continuity of supply to

consumer using electricity in bulk. The low losses in B-2 & B-3 units of LESCO speak

volumes for efficiency of M&T department. It has dedicated and devoted staff and ready

for duty at call at any time. This department also enables operation wing to reutilize

defective T&P meters and thus saving a large amount of revenue by repairing these

meters.

Material Management Directorate

Pre qualification and Registration of firms for supply of distribution / GSO Material

Procurement of material through tender

Disposal of unserviceable material / vehicles through tender and auction

Formation of rate contract for regular supply of material with firms

Arrangement of all kinds of material including T&P items from other DISCOs as per

requirement of field formations

Maintaining of minimum and maximum level of material in stores

Issuance of material as per requirements of field formation

Material Store Configuration

Sr. No. Field StoreJurisdiction

Name of Division Name of Circle

1 Regional Store Shalimar All Field/Construction Stores

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2 Northern Lahore

McLeod Road

Civil Line

Samanabad

Central Lahore

Data Durbar Northern Lahore

3 Southern Lahore

Garden Town

Johar Town

Gulberg

Ferozepur Road

Southern Lahore

4 Central Lahore

A.I. Town

Gulshan RaviCentral Lahore

Badami Bagh

FortNorthern Lahore

5 Eastern Lahore

Shalamar

Baghbanpura

Saddar

Defense

Eastern Lahore

6 ConstructionNorth Div. Construction

South Div. ConstructionProject Construction

7 Okara

Depalpur

Okara

Renala

Okara

8 Chunian

Chunian

Phool

Nagar

Okara

Raiwind Southern Lahore

9 Kasur Kasur Southern Lahore

10 ShamkeMuridke Sheikhupura

Ferozewala Northern Lahore

27

11 SheikhupuraCity Sheikhupura

Rural SheikhupuraSheikhupura

12 NankanaNankana

ShahkotSheikhupura

13 Remote Store Shahkot Shahkot Sheikhupura

Project Management / Construction Directorate

1- Construction/Bifurcation H.T Feeders  

  (A) Under Annual Development Programme  

  (B) Under System Augmentation Program

 2- Rehabilitation Of H.T Lines  

  (A) Under Development of Power

  (B) Under Energy Loss Reduction  

  (C) Under System Augmentation Program

 3- Rehabilitation Of L.T Lines

  (A) Under Development of Power

  (B) Under Energy Loss Reduction

  (C) Under System Augmentation Program 

4- Village Electrification

(A) Electrification Of Rural Areas Falls In Lahore, Sheikhupura, Kasur And Okara

Districts.

5- Deposit Works  

28

  (A) Private New Connection & Extension of Load  

  (B) Government Connection  

  (C) Housing Schemes  

  (D) Others Works  

Training Centers

LESCO also provides refresher courses to the employees for working in computer based

and modern systems. The newly induced employees are enrolled for newly induction

program and they are trained for LESCO environment and systems. Since the situation of

Law and Order is very spoil in our county therefore security staff of the LESCO is also

provided refresher courses to familiar with advance security systems and arms. For this

purpose a Training center is established in 220KV Grid Station Bund Road Lahore. All

the newly induced officials and officers are required to pass their newly induction

courses. The departmental promotion exams and training is also performed in this center.

Customer Services Directorate

The tasks assigned to Customer Services Directorate in LESCO are:

Implementation of Commercial Policies

Monitoring and management of recovery process

Monitoring of line losses and preparation of accurate line losses statements

Settling consumer disputes involving technical, commercial and tariff issues

Processing and monitoring policies and procedures for Customer Services

Inspection of field formations regarding Commercial and Customer Services matters

Sanction, contract management and monitoring of specialized electricity consumptions

such as Cable TV networks and neon signs etc.

Processing/sanctioning of various incentives for customers and employees introduced

from time to time

29

Effective marketing of electricity

Tariff structuring and management of other tariff related matters

Compilation of statistical data and management returns

Co-ordination with Manager MIS for regulating effective billing program

Surveillance and detection of electricity theft

Taking effective measures for prevention of electricity theft

Customer Services Directorate:

Director Customer Services: 9204814

Manager Commercial: 9204850

Manager monitoring & Surveillance: 9202424

Functions/Job Responsibilities of P.R.O

To ensure projecting of customers oriented policies of LESCO in Press media.

To apprise Chief Executive about daily news / press clippings pertaining to LESCO

To ensure press coverage of certain activities in forums / conferences

Management Information System directorate

Information can be technically defined as a set of interrelated components that collect,

retrieve process, store and distribute information to support the decision-making and

control of an organization. I addition to supporting decision making, coordination and

control information systems may also help managers and workers for analyze problems,

visualize complex subjects and create new products. It can help all kinds of businesses

improve the efficiency and effectiveness of their business processes, managerial decision

making and work group collaboration.

Any organized combination of people, hardware, software, communications, network or

data resources that stores, retrieve, transforms, disseminates information in any

organization is Management Information System.

In Lahore Electric Supply Co. the management information system department is also

working effectively and efficiently. This department is head by manager MIS. They use

Linux operation system, oracle based database and java oracle application suit.

WAPDA played leading role in establishing computer center in 1968. It was a time when

computer technology was bleak to majority government organizations. With the passage

30

of time, computer center continued its expansion and presently 22-computer centers are

in operation throughout Pakistan. The major millstone set for computer center was the

computerization of electricity billing which was met through in house development of

billing software. Later on, Management Information System, line losses system, payroll

and store management system were developed and implemented all over LESCO.

WAPDA Computer Center Lahore was attached with LESCO with effect from January

2000 as a process of corporatization of distribution companies. It has a sub-center at

Sheikhupura providing services to Sheikhupura Circle.

Organization Management Analysis (OMA)

The management of the Lahore Electric supply Company is appropriate for their jobs and

responsibilities. All the managers and directors are highly qualified, skilled, competent

and experienced.

The skills like leadership, effective communications, adoptability, effective relationship,

task management are present very well.

The communication level of the whole management is very sufficient. They communicate

efficiently and effectively.

The top level management and operation managers have good relationship.

The Job Fit psychoanalysis of the managers is very sufficient.

Plan of Internship:

Sr.

No.

Starting

Date

Ending

DateDepartment

Duration (in

days)

1 01/08/08 09/08/08 Finance Department 8 days

2 11/08/08 23/08/08HR and Administration

department.15 days

3 25/08/08 06/09/08Project Management /

Construction dept. 15 days

4 08/09/08 30/09/08Management Information

system. 20 days

31

I selected the Lahore Electric supply co. for my internship training, which is necessary

for my two year MBA programme. I worked in head office of Lahore Electric Supply Co.

for eight weeks in different departments including Finance, Administration, Project

Management, and Management information system department. During my internship I

worked in these departments under the supervisions of concerned managers. The staff at

Lahore Electric Supply Co. is very cooperative and also they provided me information

about my internship report. I have very carefully analyzed all the departments of the

Company. Though to get information is very difficult task but I managed it fruitfully.

Although the eight week training duration is very short period for study of any

organization but I learned a lot due to the cooperation of the managers. The working

hours for duty are 9 AM to 5 PM With one holiday in a week. I worked in different

department of the company during my internship training. Management gave me a

schedule for each department where I worked.

I started my training in Finance department during first week under the supervision of

Manager Finance. Director Finance heads this department. During my internship in this

department I learned about different function of the finance department. I learned about

the major functions of keeping the record associated with accounting and finance. I also

learned about bank reconciliations, ledger and subsidiary ledger, which is necessary for

management to know about cash positions, needs for the funds, cost of electricity for

supply and distributions, administration expenses and financial expenses. I also learned

about annual reports, balance sheets, income and earning sheets or profit and loss

statement. Finance department is also responsible for the analysis of the working capital

and the preparation of the annual accounts, which is necessary for public limited

companies, a necessity to b e, published under the companies’ act and company

ordinance. Under supervision of manager accounts I would be able to do financial

analysis, which is necessary to know the exact position of the company. I also learned

about the financial policies of the companies that are concerned with the problem of

providing and handling the capital that is required for the business.

After finance department I joined the Human Resources and Administration department

for 10 days. Personnel and administration department is very necessary in any

organization. The numbers of functions being performed by administration department

are so much to any other department. Administration department consist on

administration manager, deputy manager administration, Assistant manager, HR

executives and clerical staff. I worked under the Deputy Manager Administration who is

very supportive and cooperative person. He also did MBA. He told me about the various

32

functions that administration department performs. During my training in this

department I learned that how the appointment record, employee recode is maintained.

How the performance of the employee is monitored. This department also deals with

issuance of show cause notice, charge sheets and termination. The HR department deals

with Recruitment, job placement, Test and interview of new employees. HR department

also performs trainings, promotions and retirements. Staff of this department is very

cooperative like other departments in Lahore Electric Supply Co. This section also

prepares the Promotions cases of the employees and also maintains the leave records,

increment records, security issues and maintenance of vehicles. The Director HR and

Admin advises management concerning various relations and represent management in

the handling the complaints of employees. I also learned that how billing of overtime,

TA/DA, contracts bankers record of workers for annual increments prepare also

preparation of government returns. This department also controls the wages system and

HRIS. The duties of assistant Manager Administration are accommodation, Telephones,

Transport, security, audit, procurement, compensations / benefits and labor management.

After completing my job in Finance and Human Resources & Administration

departments I attached with Project Management/Construction department. In Lahore

Electric Supply Co. project management department is headed by Senior Manager P&D.

during my attachment with Project Management / Construction department I learned how

the new Transmission and Distribution system is constructed. The system augmentation

program is also managed Project Construction department. In system augmentation

program software like Power system simulators, Advance Distribution studies and PSS

are used for augmentation of existing system. In project construction department two

further categories are Grid System Operation and Distribution system. The whole

construction work and augmentation work of GSO and Distribution is carried out by

project construction department. The Project construction department comprises on

Project Directors, project managers, Deputy Project managers, assistant project managers

and supervisors/overseas.

In engineering perspectives I learned how the study plan is prepared for augmentation of

the new and existing system both in computerized and in manual environment.

I learned that what are the main activates in the project management construction

department. The project management construction department deals with Construction

and Bifurcation of H.T Feeders, Rehabilitation of H.T Lines, Rehabilitation of L.T Lines,

and village electrification. In project management construction I also learned the

Processing of the applications for New Connections / Reconnections / Load Extensions

and Bulk Supply having load of more than 500 KW (Tariff Categories B – 3, B – 4, C – 2

33

& C – 3)

Approval & Design of External Electrification of Housing Schemes

Approval & Design of Electrification of Multistory Buildings/Shopping Plazas

Preparation of Distribution System Rehabilitation and extension and issuance of work

orders there of

Inspection of completed work orders

Load flow studies of distribution network

Technical adjudication of tenders for purchase of material

Maintenance of record/data of 11kv feeders

Updating database of 11kv feeders

Load flow studies on Transmission Lines and design/development plans for Transmission

Lines and Grid Stations

Inspection of materials procured for works

Development of standards and specification for materials/components and systems

Finally after completing these departments of Finance, HR and Administration, Project

management/Construction, I attached with the Management information system (MIS)

department of Lahore Electric Supply Co. The MIS department is managed by Manager

MIS. The MIS department of Lahore Electric Supply Co. comprises on Manager, Deputy

Managers, Assistant Managers, Data coders and Data entry operators.

During my training in this department I learned many new techniques, methodologies,

expertise, knowledge and technology. In Lahore Electric Supply Co. the Information /

MIS department employ the Windows XP / Linux Operating systems, Oracle Database

system and also have oracle Java based applications. This is based on ORACLE E-

Business Suite certified platform.

The MIS department deals with Enterprise Resource Planning (ERP) system, Financial

Accounting and Information System, Material Management System, Human Resource

Management System, and Customer Information and Billing System. In MIS department

of Lahore Electric Supply Company I learned how to make Queries in database system,

ONLINE billing system, Data collection through Barcode reader. I also learned about

Enterprise Resource Planning system, ONLINE transactions system and webpage

development. I also leaned that how the Management information system in any

organizations works.

The Structure and Function of MIS Department:

34

In Lahore Electric Supply Co. the Information / MIS department employ the Windows

XP / Linux Operating systems, Oracle Database system and also have oracle Java based

applications. This is based on ORACLE E-Business Suite certified platform.

Department Hierarchy

OPERATING SYSTEM LINUX

DATABASE ORACLE

APPLICATIONS ORACLE JAVA

35

Major Functions /Operations of MIS department

Billing System

Payment Channels

Payment using NADRA KIOSK Machines

Data Entry through Barcode Scanning

Transfer of Collection Data to the Utility Company

Customer Account on Company Website

Reporting System

A: Billing System

Data Preparation system

Electricity billing of 2.1 million consumers

Duplicate billing system at 10 customer service centers and all divisions

B: Payment Channels

Payment using Bank Alfalah Credit Card. LESCO, in collaboration with Bank Alfalah,

has started the service of bill payment through credit cards for the convenience of its

customers. The collection data is submitted by Bank Alfalah to LESCO servers on daily

basis.

Payment using Bank Alfalah Direct Debit facility

Manager

MIS

Dy ManagerDy Manager

Dy Manager

A. M (MIS)A. M (MIS)A. M (MIS)

A. M (MIS) A. M (MIS) A. M (MIS)

36

Payment using NADRA KIOSK Machines

LESCO, together with NADRA, has also started the service of bill collection at NADRA

kiosks. The collection data is submitted by NADRA to LESCO servers on daily basis.

Payment through more than 350 online bank Branches and Post offices.

Utility bill payment was very tedious task and people had to stand outside banks for an

extended period of time. Realizing the need to resolve the issue of long queues for

LESCO Bill payments, Chief Executive Officer decided to explore the Payment

channels.. LESCO submitted a comprehensive proposal to resolve this issue to WAPDA

Authority headed by the Chairman WAPDA, Mr. Tariq Hamid, in October 2004. LESCO

started printing machine-readable bills from February 2005. The collection system was

also deployed, on trial, in a limited number of bank branches in the beginning of

February. The system was formally launched on March 19, 2005. At present 355

branches in LESCO are equipped with this system collecting about 25% of bills.  

Bill Collection at Banks

Data Entry through Barcode Scanning

Bills are paid at designated branches as usual, but with a technical difference. The bills

are scanned by the bank cashier using an average barcode scanner just like a retail store

cashier does for grocery items. With a single scan, all the information encoded in the

barcode is instantly transferred to the software, which is saved with the single click of a

button. Provision is also given for entry of amended bills bearing barcode and bills

carrying no barcode. Bank users, without any effort, can generate daily scrolls and

collection summary. Monthly collection reports are also available.

Transfer of Collection Data to the Utility Company

The collection data from banks is transferred to online servers on daily basis using a

simple Internet connection. Alternatively a collection file may be generated and carried

on portable media if no Internet connection is available. This data is available for the

utility company for immediate download.

Customer Account on Company Website

37

The billing and receipt data is uploaded to the online server whenever it experiences any

change. Consumers are able to access true online services at the company website, which

include the following.

Viewing monthly bills

Printing duplicate bills

Payment confirmation

Consumption and Payment History

Account Status.

Benefits

MRBCS offers a win-win situation for all the three stakeholders.

For LESCO

Reduced time gap between collection and posting to customer account

Instant recovery analysis & timely remittance processing

Easier stub data entry, reporting & reconciliation

Overall reduced cost of collection processing & cash posting

Boost to overall image of the company

Improved customer service

For Customers

Much less time for making payments at banks

Ease in obtaining duplicate bills

Can use company website to

Confirm payment made

View & print electricity bills

Retrieve consumption & payment history

Check account status

  For Banks

38

Much less time required for receiving bills

Data consolidation on a utility company provided system

Effortless scroll and report generation

Reduced cost of bill collection

Machine Readable Bill Collection Trial for All Utilities

Following the instructions of GOP, LESCO has extended MRBCS capability for

receiving PTCL, WASA and SNGPL bills as well in its area of operation. LESCO has

also provided its assistance to these utility companies in printing machine-readable bills

on a standardized format.

5. Government adjuster processing system.

C: Reporting System

Management information system

Line losses system

Special requirements of Chief Executive Office and other field offices

D: Other Systems

Payroll system

Inventory Management System

Support of MIS department with other departments

1. Financial Accounting and Information system

Financial Control

Transparent Transactions (Db/Cr)

Immediate Monthly Accounts (Month end closing means last day of the month)

Instant financial analysis

Online Cost center (drawing & disbursement offices) wise demand, remittance &

Account Head wise expenditure

Instant payable/receivable analysis

Multi-year accounting

39

Budget & expenditure comparisons

Bank Collection & Remittance Management (Realization on Company & Accounting

Unit Basis)

Profit & Loss Statement

Fixed Asset Management

Pension/Fund Account Management

Pension Disbursement

Trial Balance

Balance sheet

Classified Balance Sheet

Classified Income Statement

2. Material Management department

It will cover pre-purchase to post disposal and its immediate affect on general ledger. The

moment any file for procurement is moved, it will also be available to Finance Director

for financial vetting.

Inventory Structure (Categories and Items)

Supplier’s record & their specialty in Products

Immediate information about the required material on the basis of D.N paid with

reference to new connection, R.C.O etc.

Procurement

Annual Requirement Plan

Ordering with Delivery Schedule

Maximum/Minimum/Re-Order Levels

Item Purchase Analysis

Inventory Management

Receipt (Supply, Repair, Transfer)

Store Allocation (to Field Stores)

Store Requisition

Store Issue

Transfers (Workshop, Regional Store, Field Store, Other Dist. Companies)

Store Returns specially with reference to M.C.O etc.

Scrapping

Material Movement Analysis

Inventory Tracking & Holding

40

Disposal

Disposal Order

Disposal Issue

3. Human Resource department

All most all HR & Admn: activities from pre-hiring to post retirement have financial

impact on company. These include salary, house acquisition, TA/DA, free supply,

medical treatment, overtime etc. It is strange that we are not aware exactly how many

employees do we have & what expenditure is being incurred.

Recruitment Processing

Application Management, to save time we can allow candidate to apply any time.

Candidate Filtering

Call Letter Issue

Testing & Interviewing

Appointment

Career Profiling

Personnel Data Management

Performance Review

Termination

Promotion

Change in shift/timings

Resignation

Transfer

Suspension

Restoration

Re-appointment

Disciplinary Cases/Actions

Audit Paras

Training Courses & Examination

ACRs, Service Book

41

HR Analysis

Sanctioned Strength

Vacancy Statements

Seniority List

Retirement Forecast

Administration:

Vehicle control

Complete picture of all vehicles with reference to allocation, description, monthly

expenditure on P.O.L etc.

Payroll

Disbursement Channel Management

Pay Scale/Salary Group Management

4. Customer Information and Billing System

Customer Services

Unique Customer ID Assignment, no UT cash even in multiple change of reference.

Automatic Bill Adjustment Processing, no complaint for bill correction problems.

Division and even Subdivision wise Billing (Need not to wait for MR of all Divisions),

more time for Bill payment.

Corporate Billing

One Demand Note for Capital Cost & security and payment facility at any bank.

Bill Distribution through e-mail, direct to customer’s bank, normal channel etc.

Customer Information System

Tariff and Customer Classification Management

42

Corporate Account Management

WAPDA Employee Management

Change of Reference Management

Infrastructure Rental Management

Power Purchase System and Power Sale & Billing System

Billing information to Oracle Receivables for instant Balance Sheet

Consumer Metering

Consumer Meter Reading, manual, MR entry at Sub Div to avoid duplication of work &

AMR

Metering Adjustments with immediate revise Bill and automatic adjustment processing

Bill Collection System

Bank Collection, Remittance & Reconciliation (Various Levels) Management

Line Losses System

Company, Circle, Division, Sub-Division, Grid, Feeder and Transformer Losses

Critical Analysis

Vision of the LESCO

“As the leading electricity distribution company, strive to provide un-interrupted electric supply and

quality service to all customers at the minimum possible cost.”

Since LESCO is a public institute and NEPRA is responsible for its tariff selection etc.

The failure of electricity is governed and supervised by PEPCO. Therefore as described

in LESCO’s mission statement that leading electricity Distribution Company providing

UN interrupted supply at minimum possible cost, is still unachievable. The whole

company, its board of governors and top level management is trying at their best for

providing uninterruptible supply at customer premises. The current strategies of LESCO

are towards the provision of electric supply all the time. But unfortunately due to the

erroneous government policies the most important part of power generation is lost;

therefore the company is not successive in achieving their goals and objectives.

The matter of cost is also significant in LESCO’s vision. But to provide the electricity

round the clock it is necessary that the power houses must work effectively and

43

efficiently. Therefore the power houses require complete maintenance and testing. The

government also did not pay any attention on this matter. Now the work is too much and

a lot of financial aid is requiring sustaining the power houses. Whole of this scenario

creates a boost in cost of electricity. Therefore provision of electricity at low cost is not

possible until now.

SWOT Analysis

Strength

One Window service facility at each Sub-Division

Establishment of Computerized Customer Service Centers in each Circle

Establishment of Mobile Customer Service to facilitate installments and

corrections of the bills

Central Chief Executive Customer Service Center

Positioning of Field offices near geographic center of their jurisdiction and

co-location of XEN & RO offices

Printing of 12 months billing detail on bill

Printing of CEO's telephone numbers on the bill

Well defined and uniform policy for detection bills

Enhanced allocation for Development and Maintenance

More branches of scheduled banks and post offices authorized to collect bills

Establishment of Model Sub-Divisions

Restructuring of Stores to ensure prompt availability

Establishment of Marketing Cell and Task Force at LESCO HQ to facilitate

industrial/commercial consumers

Great No. of customers in Districts of Lahore, Shaikhupura, Okara and Kasur

Weakness

Large time required for processing any project/job

Communication system between employees is not sufficient

Customer services centers required well trained and loyal staff

Lake of loyalty, consistency and regulatory in the staff

Financial statement is showing loss in year 2008

People has less trust over company

Customer’s guide ness is not sufficient

44

Customer’s complaint system is very old and execution on the complaint is very

fatigue

Customers and employees relation is very poor

Opportunities

Corporatization and commercialization goals as per plan

Establishment of mobile customer services center at each circle

Distribution system rehabilitation under System Augmentation Program (SAP) for

reduction in energy losses

Timely execution of development works and LT/HT Proposals under SAP

New Grid Stations and augmentation/extension of existing Grid Stations and

Transmission Lines

Establishment of Computer Billing Center at Okara, Kasur and Shaikhupura

Conversion of petrol vehicles to CNG

Purchase of new vehicles for field formation

Threats

Since LESCO is a public organization, therefore political environments are

decreasing the efficiency of the company.

Some other competitors like GEPCO and MEPCO have their own power

generation system; therefore LESCO is dependent on those companies.

In future it is expected that the market value of the LESCO will be decreased.

Politics in the employees and labor unions are very awful for company

Government’s pitiable projects also spoiling the publicity of the LESCO

The overall performance of the LESCO also decreasing

IFE MATRIX Weight Rating W/ ScoreStrengths       1 Well known for electricity distribution services 0.16 4 0.64 2 Establishment of Computerized Customer Service 0.15 3 0.45

45

 3 Printing of 12 months billing detail on bill 0.07 4 0.28

 4 Strong balance sheet 0.11 3 0.33 5 Great No. of customers in Districts of Lahore,

Shaikhupura, Okara and Kasur0.13 4 0.52

Weaknesses       6 Strictly a local company 0.05 2 0.10 7 Lack of communication system 0.02 2 0.04 8 Financial statement is showing loss in year 2008 0.08 2 0.16

 9 Customers and employees relation is very poor 0.1 1 0.10

 10 People has less trust over company 0.10 1 0.10

         Total 1.00   2.72

Internal Factor Evaluation Matrix (IFE MATRIX)

The total weighted score can ring from a low of 1.0 to a high of 4.0, with the standard score being 2.5. Total weighted scores well below 2.5 differentiate business that is weak internally, where as scores considerably above 2.5 designates a well-built inner position. In the above IFE prevailing conditions the company LESCO falls at weighted scores 2.72, it means the LESCO has better internal structure.

External Factor Evaluation Matrix (EFE MATRIX)

EFE MATRIX Weight Rating W/ ScoreOpportunities       1 Establishment of mobile customer services 0.16 4 0.64 2 Timely execution of development works and LT/HT

Proposals 0.15 3 0.45

 3 New Grid Stations and augmentation/extension of

existing Grid Stations and Transmission Lines

0.16 3 0.48

 4 Conversion of petrol vehicles to CNG 0.12 3 0.36

 5 Purchase of new vehicles for field staff 0.13 3 0.39

Threats 6 It is expected that the market value of the LESCO will be

decreased0.05 2 0.1

 7 Politics in the employees and labor unions are very awful

for company

0.05 1 0.05

 8 Financial statement is showing loss in year 2008 0.08 2 0.16

 9 The overall performance of the LESCO also decreasing 0.03 1 0.03

46

 10 Government’s pitiable projects also spoiling the publicity

of the LESCO

0.07 1 0.07

    Total  1.00    2.73

Threats Opportunities Weakness and Strength (TOWS Matrix)

TOWS Matrix, simply list the firm's strengths, weaknesses, opportunities, and threats in

boxes along the top and side of the matrix as indicated on the sample TOWS Matrix

provided on the next page. These are the same factors you earlier determined (ranked) to

be most important in your external and internal audits. Then in the four strategy

quadrants labeled Strength Opportunities, Weakness Opportunities, Strength Threats, and

Weakness Threats, list specific strategies that would benefit the firm in light of those

underlying factors.

47

Strength

One Window service facility at

each Sub-Division

Establishment of Computerized

Customer Service Centers in

each Circle

Establishment of Mobile

Customer Service to facilitate

installments and corrections of

the bills

Central Chief Executive

Customer Service Center.

Positioning of Field offices near

geographic center of their

jurisdiction.

co-location of XEN & RO

offices

Printing of 12 months billing

detail on bill.

Weakness

Large time required for

processing any project/job

Communication system between

employees is not sufficient

Customer services centers

required well trained and loyal

staff

Lake of loyalty, consistency and

regulatory in the staff

Financial statement is showing

loss in year 2008

People has less trust over

company

Customer’s guide ness is not

sufficient

Customer’s complaint system is

very old and execution on the

complaint is very fatigue.

Opportunities

Corporatization and

commercialization goals as per

plan.

Establishment of mobile customer

services center at each circle.

Distribution system rehabilitation

under System Augmentation

Program (SAP) for reduction in

energy losses.

Timely execution of development

works and LT/HT Proposals under

SAP.

New Grid Stations and

SO Strategies

present a better way of

performing jobs in tune with the

established brand

And Increase Market shares.

To offer designs solution to the

customers.

Invest in the augmentation of the

new grid station and increase the

capability of transmission lines.

To meet the high demand of the

customers make plans and

implement in the shortest

possible time periods.

WO Strategies

Improve the file processing

system so that the

implementation of the new

planes comes into reality at a

shorter time.

Execute the pilot projects

gradually.

Increase the quality of the

communication systems.

Arrange periodic training system

to increase the knowledge and

skills of the employees.

48

augmentation/extension of existing

Grid Stations and Transmission

Lines.

Establishment of Computer Billing

Center at Okara, Kasur and

Shaikhupura .

Conversion of petrol vehicles to

CNG

Purchase of new vehicles for field

formation.

Threats

Since LESCO is a public

organization, therefore political

environments are decreasing the

efficiency of the company.

Some other competitors like

GEPCO and MEPCO have their

own power generation system;

therefore LESCO is dependent on

those companies.

In future it is expected that the

market value of the LESCO will be

decreased.

Politics in the employees and labor

unions are very awful for company

Government’s pitiable projects

also spoiling the publicity of the

LESCO

The overall performance of the

LESCO also decreasing

ST Strategies

To increase lobbying with the

government to prevent extension

of purchase and maintaining

level playing field in the

segments.

To tie up with the small

contractors on business sharing

arrangements to prevent price

raise.

To be cautions in the event of

change of government and

process of reforms falling of the

tracks.

To check the emergencies and

arrange necessary measures for

it.

Always be aware about the

laborer union agenda etc.

WT Strategies

Reduce the dependency on the

government policies.

To train the manpower to counter

the threats of emergencies, break

downs etc.

Increase the accessibilities of the

employees.

Enhance the market value by

getting the long term customers

trust and loyalty.

Arrange a job fit analysis and

arrange right person for right job.

49

Competitive Profile Matrix

FESCO LESCO GEPCOCompetitive Factor Weight Rating W/Score Rating W/Score Rating W/Score

Cost competitiveness 0.16 3 0.48 4 0.64 2 0.32Quality of installation 0.14 4 0.56 3 0.42 3 0.42Reputation 0.09 4 0.36 1 0.09 2 0.18Reliability of Supply and installation

0.14 4 0.56 3 0.42 3 0.42

Complaint Handlings 0.11 3 0.33 3 0.33 3 0.33Management structure 0.13 2 0.26 3 0.39 4 0.52Market shares 0.03 4 0.12 4 0.12 1 0.03Customer Services Centers and Facilities

0.05 3 0.15 4 0.20 2 0.10

Maintenance and testing of Equipments

0.08 4 0.32 4 0.32 3 0.24

Customer Loyalty 0.07 2 0.14 4 0.28 2 0.14

Total 1.00 3.28 3.21 2.70

BCG Growth-Share Matrix

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The Lahore Electric Supply Co. consume large amounts of cash, but because they have

low market shares they do not generate much cash. The result is a large net cash

consumption. Therefore according to the Bostn Growth Shares Matrix the LESCO falls in

Question Marks.

Porter Five Forces Analysis

The porters five forces comprises on the following factors

Suppliers power

Threats of Substitute

Buyers Power and

Barriers to entry.

But in the case of LESCO the competitors are limited to provide their services in the

defined areas of the country. They cannot provide their services beyond the limitations.

Since in the Districts of Lahore Kasur Shaiku pura and okara only LESCO is responsible

for providing the services therefore no other substitute or there is no any new company,

which can provide electric supply.

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Conclusion

The Lahore Electric Supply Co. is a big organization. It provides electricity to the

consumers of the Dist. Lahore, Okara, Shaikhupura and Kasur. It is performing his job

very well but certain improvements and developments are required. This organization has

vertical management system. The top-level management has ample potential to make this

company as a superb company. The middle level and bottom level management is also

very hard working, punctual and geniuses. But unfortunately the provision of equipments

for maintenance purposes, the government’s lengthy planes, and inexperienced customer

services department is spoiling the image of the company. The demand of electricity of

the consumers must be fulfilled at top priority. Necessary actions should be taken against

the span between the demand and supply. The response of the employees on the failure of

the supply must be enhanced. Following conclusions are described here

Increase in Raw material

Slow speed of implementation must be eliminated

Make exact estimate of the demand

Reduce the political factors in lesco’s projects and system augmentations.

Recommendations

The employees must be well trained for customer services issues. The extra equipment

for maintenance and complaint attendance must be provided to the staff. The

communication gap between senior management and lower technical, maintenance staff

must be improved. The organizational hierarchy

Inside the organization must be reduced. The application processing system must be

improved. For complaints and other customer related tasks, online computerized system

should be arranged. The trust of the customers must be retained.

References and Sources Used

Website of LESCO/PEPCO/WAPDA

Technical brushers of LESCO

Personal meetings with different mangers

LESCO new induction training program booklets

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Standard Operating Procedural (SOP) documents

Annual Reports published by LESCO for FY 2006,2007 and 2008

Technical data prepared and collected by LESCO’s library.

Strategic management by Mr. Shafiq; copyright by Virtual University of Pakistan

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