North Delhi Power Limited 5 years of 5 years of Sustained Efforts Towards Sustained Efforts Towards Business Excellence Business Excellence Sunil Wadhwa Sunil Wadhwa Chief Executive Officer Chief Executive Officer NDPL NDPL FICCI FICCI 25 July, 2007 25 July, 2007
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NDPL ConsultingNorth Delhi Power Limited
5 years of 5 years of Sustained Efforts Towards Sustained Efforts Towards
5 years of Sustained Efforts towards Business Excellence
Structure of PresentationStructure of Presentation
•• NDPL profileNDPL profile
•• Initiatives towards consumer affectionInitiatives towards consumer affection
Network Reliability Improvement
Reduction in AT&C Losses
Consumer care initiatives
•• Team NDPL Team NDPL –– Change Management InitiativesChange Management Initiatives
5 years of Sustained Efforts towards Business Excellence
Geographic DescriptionGeographic Description
NDPLNDPL
BSES BSES RajdhaniRajdhani
BSES BSES YamunaYamuna
NDMCNDMCMESMES
Joint Venture of TATA Group with Delhi Govt.Joint Venture of TATA Group with Delhi Govt.51:4951:49%%
5 years of Sustained Efforts towards Business Excellence
NDPL ProfileNDPL Profile
1055 MW1055 MWPeak LoadPeak LoadRs. 2052 Cr Rs. 2052 Cr (enhanced from Rs 1100 in FY 03)(enhanced from Rs 1100 in FY 03)Turnover (FY 2006Turnover (FY 2006--07)07)
1245 (National Average of 500,1245 (National Average of 500,Mumbai Mumbai –– close to 850)close to 850)
Per Capita Consumption (Units)Per Capita Consumption (Units)
07% / 05% 07% / 05% Load / Energy Growth Load / Energy Growth 0.620.62Employees per Mn. Unit inputEmployees per Mn. Unit input1784 (Only Registered)1784 (Only Registered)Number of consumers per Number of consumers per Sq.KmSq.Km
4.5 Mn. 4.5 Mn. Population serviced in Network area (approx)Population serviced in Network area (approx)510 Sq Kms510 Sq KmsAreaArea3700 (5600 in July 2002)3700 (5600 in July 2002)Number of employeesNumber of employees0.91 Mn. (Actual estimated 1 Mn.) 0.91 Mn. (Actual estimated 1 Mn.) Total registered consumers Total registered consumers (0.743 Mn on T/o)(0.743 Mn on T/o)
5950 Mn. Units5950 Mn. UnitsAnnual energy requirement (FY 2006Annual energy requirement (FY 2006--07)07)
5 years of Sustained Efforts towards Business Excellence
Strategic RoadmapStrategic Roadmap –– pillars for 2002pillars for 2002--0707
Lack of Performance Lack of Performance OrientationOrientation
Electricity Supply Electricity Supply systemsystem on the verge of on the verge of
collapsecollapse
No concept ofNo concept ofconsumer service & IT consumer service & IT
InterfaceInterface
AT&C LossesAT&C Losses>50%>50%
What NDPL had inheritedWhat NDPL had inherited
Performance Performance OrientationOrientation through through Change ManagementChange Management
System ReliabilitySystem Reliability to to be comparable with be comparable with
best utilities in India. best utilities in India.
Consumer service & IT Consumer service & IT InterfaceInterface to be to be
comparable with world comparable with world standardsstandards
AT&C Losses AT&C Losses <25%<25%
Strategy for 2002Strategy for 2002--0707
>50%>50% 1,00,000 1,00,000 backlog backlog
complaintscomplaints
No planned exp. No planned exp. on infrastructure on infrastructure
Unfavorable working Unfavorable working conditionsconditions
5 years of Sustained Efforts towards Business Excellence
Structure of PresentationStructure of Presentation
•• NDPL profileNDPL profile
•• Initiatives towards consumer affectionInitiatives towards consumer affection
Network Reliability Improvement
Reduction in AT&C Losses
Consumer care initiatives
•• Team NDPL Team NDPL –– Change Management InitiativesChange Management Initiatives
5 years of Sustained Efforts towards Business Excellence
Initial Challenges in July 2002Initial Challenges in July 2002 –– Power SupplyPower Supply
Transformers’ failure w.r.t. installed capacity was as high as 11%
Reduced to insignificant level of 0.76% at presentReduced to insignificant level of 0.76% at present
48% Streetlights FunctionalIncreased to 99%Increased to 99%
•• NDPL inherited an old dilapidated Network, which was characterizNDPL inherited an old dilapidated Network, which was characterized ed by the following attributes: by the following attributes:
5 years of Sustained Efforts towards Business Excellence
Power Supply ImprovementPower Supply Improvement -- InitiativesInitiatives
•• Interventions undertaken as a comprehensive integrated plan of:Interventions undertaken as a comprehensive integrated plan of:Run-Repair-Replace Options –– CAPEX Plan prepared till FY08CAPEX Plan prepared till FY08Roadmap for Network Reliability & N-1 Redundancy (66 & 33 kV Network (66 & 33 kV Network is on Nis on N--1)1)Automation & IT Roadmap (formulated in association with M/s KEMA, USA)(formulated in association with M/s KEMA, USA)
Revamped Substations
5 years of Sustained Efforts towards Business Excellence
•• Accurate Land base Accurate Land base to the extent of 1 to the extent of 1 meter accuracymeter accuracy
•• Network at all Network at all voltage level mappedvoltage level mapped
•• Grid and Substation Grid and Substation Internal Equipment Internal Equipment MappedMapped
•• More than 0.8 More than 0.8 MnMnConsumers mappedConsumers mapped
5 years of Sustained Efforts towards Business Excellence
GISGIS--Application & UsageApplication & Usage
•• Technical Feasibility & all new and augmentation Technical Feasibility & all new and augmentation Scheme PreparationScheme Preparation
•• Fault ManagementFault Management•• Premises location for Revenue RecoveryPremises location for Revenue Recovery•• Map for Right of Way ApprovalMap for Right of Way Approval•• Project MonitoringProject Monitoring•• Other commercial applicationsOther commercial applications-- New connections, New connections,
metering, dues checking etcmetering, dues checking etc
NDPL has won the “PC Quest Best Information Technology Implementation Award 2007” under the category of “Most Challenging Project” for Successful Implementation
of GIS
5 years of Sustained Efforts towards Business Excellence
Transformer failure rate reduced to insignificant levels
5 years of Sustained Efforts towards Business Excellence
Reaching out to consumers..Reaching out to consumers..
Call Received at Call Centre
Consumer informed & Call closed
Complaint attended & Call
Centre informed
SMS Sent to concerned crew
K.R. Kalra32B RohiniNo Current
15mins
SMS based Fault Management System SMS based Fault Management System --significantly improved the fault Restoration timesignificantly improved the fault Restoration time
Advance Intimation to consumers Advance Intimation to consumers --load shedding schedule in event of Grid Shortagesload shedding schedule in event of Grid Shortages
5 years of Sustained Efforts towards Business Excellence
Revamped Revamped ––Project Last MileProject Last MileDilapidated Condition of Poles Dilapidated Condition of Poles
5 years of Sustained Efforts towards Business Excellence
Structure of PresentationStructure of Presentation
•• NDPL profileNDPL profile
•• Initiatives towards consumer affectionInitiatives towards consumer affection
Network Reliability Improvement
Reduction in AT&C Losses
Consumer care initiatives
•• Team NDPL Team NDPL –– Change Management InitiativesChange Management Initiatives
5 years of Sustained Efforts towards Business Excellence
AT&C Loss Trend Pre-Privatisation
Comparison of AT&C TargetComparison of AT&C Target & Actual& Actual
40.85
33.79
35.35
31.1
53
47.79
44.86
26.5223.7
20
25
30
35
40
45
50
55
Pre Pre Opening FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07Year
Perc
enta
ge A
T&C
Los
ses
Bid Loss Levels Actual Loss LevelTarget Loss Level
AT&C Loss Trend Pre-privatisation
VICTORY CURVE
5 years of Sustained Efforts towards Business Excellence
Comparison of Tariff Envisaged & Actual TariffComparison of Tariff Envisaged & Actual Tariff
43%
0%
5%
21%
33%
39%
10% 18.00%14.00% 18.00%
0%5%
10%15%20%25%30%35%40%45%50%
2002-03 2003-04 2004-05 2005-06 2006-07
FY
% C
umul
ativ
e In
crea
se
% Cumulative Increase in Tariff envisaged % Cumulative Increase in Actual Tariff
% Cumulative Increase in Tariff
5 years of Sustained Efforts towards Business Excellence
Saving to GovernmentSaving to GovernmentPower Sector Reforms Through Privatisation
Transitional Support Vs Continuing With Financial Loss
22%
27%
32%
37%
42%
47%
52%
57%
62%
67%
AT&
C L
oss
(%)
Scenario II -Cumulative Saving Rs. 2745 Cr
Scenario III
Rs. 400 Cr Rs. 550 Cr Rs. 570 Cr
Pre-privatisation losses burgeoning
Scenario I: Losses growing at same trend as in pre-privatisation Scenario II: Losses maintained at the same level as of privatisation.Scenario III: Losses lowered post privatisation.
Jul 02Apr 01
Post-privatisation:Lowering Losses leading to reduced subsidy
Mar 03 Mar 04 Mar 05 Mar 06
23.7%
Rs. 600 Cr
Mar 07
26.52%
33.79%
44.84%
51.09%
53.40%Rs. 625 Cr
Scenario II
Scenario I
Rs. 380 Cr Rs. 116 CrRs.307 Cr
Rs.170 Cr.Rs.93 Cr.
Rs.549 Cr.
Rs. 51 Cr
Rs.354 Cr.
Rs.625 Cr.
In 2002, Power Theft was about In 2002, Power Theft was about RsRs 4 4 crorescrores per day in NDPL areaper day in NDPL area-- Now it is at 1.6 Cr./dayNow it is at 1.6 Cr./dayIncrease in NDPL paying capacity reduced Increase in NDPL paying capacity reduced TranscosTranscos dependence on Govt. to NILdependence on Govt. to NIL
Domestic Tariff continues to be same since July 2004Domestic Tariff continues to be same since July 2004
5 years of Sustained Efforts towards Business Excellence
•• Organized Theft of PowerOrganized Theft of Power –– ineffective process to deal with defaulters
Worsening the situation was the fact that the processes were prone to manipulation and hence resulted in unethical practices
5 years of Sustained Efforts towards Business Excellence
Metering SystemsMetering Systems –– plugging the Revenue leakagesplugging the Revenue leakages
•• Meter Repository System Meter Repository System -- each Meter is issued against a specific K No. based on a random selection through a customized application.
this eliminates the probability of misuse & installation at misdirected place – institutional institutional check on manipulation.check on manipulation.
MRS Screen shotMRS Screen shot• 60% of the Revenue gets generated through
Automated Meter Reading Automated Meter Reading (all high end consumers > 15 kW)
•• Pre paid Metering Pre paid Metering –– enables consumers to track and monitor their consumption.
GSM Modem with meterGSM Modem with meterPrepaid meter Prepaid meter
5 years of Sustained Efforts towards Business Excellence
Power Theft ControlPower Theft Control –– InitiativesInitiatives
•• Electrification on HVDS and LT ABC network Electrification on HVDS and LT ABC network –– To prevent tapping in theft prone areas and reduce technical losses
•• New Connection Camps in slumsNew Connection Camps in slums
•• DT wise Energy Accounting for calculation of DT wise Energy Accounting for calculation of Transformer wise AT&C LossesTransformer wise AT&C Losses HVDS at BasaidarpurHVDS at Basaidarpur
Removal of Hookings & New Connection camps for slum dwellersRemoval of Hookings & New Connection camps for slum dwellers
5 years of Sustained Efforts towards Business Excellence
Structure of PresentationStructure of Presentation
•• NDPL profileNDPL profile
•• Initiatives towards consumer affectionInitiatives towards consumer affection
Network Reliability Improvement
Reduction in AT&C Losses
Consumer care initiatives
•• Team NDPL Team NDPL –– Change Management InitiativesChange Management Initiatives
5 years of Sustained Efforts towards Business Excellence
CMG RRG RDGMRG RBG RCGMMG
RAG
Policy Regulatory Bench Data Revenue Infrastructure User& System Advocacy Compliance Marking Analysis Protection Support Administration
Consumers
Call Center Customer care Center Website E ail letters Drop boxes
Consumer Feedback is Key to our Improvement Initiatives
5 years of Sustained Efforts towards Business Excellence
New ConnectionsNew Connections -- Home Delivery Home Delivery
New Connection at Door stepNew Connection at Door step
•• Field Service Executive (FSE)Field Service Executive (FSE)visits the consumers’ premises and completes all formalities for new connections.
•• Meter Installation through VAN ModelMeter Installation through VAN Model –initiative towards enhanced output, each Van installs about 7-8 meters per day.
Meter Installation Van Meter Installation Van
Initiatives towards expediting energization period of new connections
5 years of Sustained Efforts towards Business Excellence
Average Energization period of New connectionsAverage Energization period of New connections
58.3
41.6833.9
14.8 13.9
51.8
36.5
26.4
9.5 90
10
20
30
40
50
60
70
2002-03 2003-04 2004-05 2005-06 2006-07
days
from date of application from date of payment
Attribute changes done within 48 hours
5 years of Sustained Efforts towards Business Excellence
IT EnablementIT Enablement –– ushering in an era of transparencyushering in an era of transparency
•• SUGAMSUGAM –– Billing database of 100% of Billing database of 100% of consumers on website consumers on website –– first time in Indiafirst time in India, , institutionalized transparency from the very institutionalized transparency from the very beginning. SUGAM enables consumers to:beginning. SUGAM enables consumers to:
•• Payment avenuesPayment avenues increased from 20 at the time of takeover to 1100+ now.
•• State of the art Collection centersState of the art Collection centersinstituted with all civic amenities.
•• Payment of Energy Bills through Payment of Energy Bills through website alsowebsite also –– by credit cards –website certified as secure by ‘Verisign’.
• Consumer comfort redefined with Automatic Cash/Automatic Cash/ChequeCheque CollectionCollectionmachines
5 years of Sustained Efforts towards Business Excellence
Public Hearing ForumsPublic Hearing Forums-- Concerns Concerns addressed at Door step of Consumeraddressed at Door step of Consumer
‘‘Meet the Public Representative Meet the Public Representative ‘‘ scheme launched
5 years of Sustained Efforts towards Business Excellence
Structure of PresentationStructure of Presentation
•• NDPL profileNDPL profile
•• Initiatives towards consumer affectionInitiatives towards consumer affection
Network Reliability Improvement
Reduction in AT&C Losses
Consumer care initiatives
•• Team NDPL Team NDPL –– Change Management InitiativesChange Management Initiatives
5 years of Sustained Efforts towards Business Excellence
Initial Challenges in July 2002Initial Challenges in July 2002 -- (Admin. & HR)(Admin. & HR)
Inherited a huge workforce of 5638 employees ––apprehensive with regard to their future in the changed apprehensive with regard to their future in the changed scenario.scenario.
Training – privy to only the privileged few privy to only the privileged few –– seen as paid seen as paid vacations.vacations.
No effective Corporate Structure –– No clear Roles & No clear Roles & Responsibilities with reference to JDs & KRAs.Responsibilities with reference to JDs & KRAs.Employee grievances – took long to resolvetook long to resolvePoor Working Conditions and unhygienic Building environment
The foremost priority was to earn the Right to Govern by developing a sense of assurance in their combined ability.
5 years of Sustained Efforts towards Business Excellence
•• Organization StructureOrganization Structure with clear Manpower with clear Manpower Planning for each departmentPlanning for each department
•• Induction of New TalentInduction of New Talent –– ETs & MTs as ETs & MTs as catalysts for the Change Management. catalysts for the Change Management.
Corporate set up in place – focus on Roles & Responsibilities through specific JDs & KRAs of individuals
5 years of Sustained Efforts towards Business Excellence
Employee Competency DevelopmentEmployee Competency Development
•• Training Need IdentificationTraining Need Identification through the through the Performance Appraisal system itself.Performance Appraisal system itself.
•• Institution of CENPEIDInstitution of CENPEID –– in association with in association with USAID to cater to the training needs of its USAID to cater to the training needs of its own and other SEB’s employees.own and other SEB’s employees.
•• Training Policy formulatedTraining Policy formulated –– 6 days for 6 days for executives and 2 days for non executives.executives and 2 days for non executives.
•• Initiation of CFT approachInitiation of CFT approach –– for for handling critical concerns cutting handling critical concerns cutting across departments.across departments.
5 years of Sustained Efforts towards Business Excellence
Employee CommunicationEmployee Communication
•• Joint Interaction ForumsJoint Interaction Forums constituted for constituted for effective two way communication.effective two way communication.
•• LGIE in association with ACCORDLGIE in association with ACCORD ––participation across all levels of employees.participation across all levels of employees.
•• Introduced Town Hall MeetingsIntroduced Town Hall Meetings ––unstructured reviews aimed at two way unstructured reviews aimed at two way communication.communication.
•• SURKHIYANSURKHIYAN –– monthly news bulletin for monthly news bulletin for employees.employees.
•• SARTHI SARTHI –– forum for resolution of forum for resolution of Grievances instituted. Grievances instituted.
Policies on Ethics, Harassment & standardization of Employee rules
5 years of Sustained Efforts towards Business Excellence
Corporate Social ResponsibilityCorporate Social Responsibility
5 years of Sustained Efforts towards Business Excellence
Corporate Social ResponsibilityCorporate Social Responsibility-- Energy ClubsEnergy Clubs
Energy Conservation Camps Energy Conservation Camps implemented in schoolsimplemented in schools with 15000 children participation
Urja Melas are regularly Urja Melas are regularly organizedorganized where competitions are held between participating schools.
Energy Club is now a nation wide phenomenon as NDPL has partnereEnergy Club is now a nation wide phenomenon as NDPL has partnered d with CII to replicate the success of this model in neighboring swith CII to replicate the success of this model in neighboring states also.tates also.
5 years of Sustained Efforts towards Business Excellence
Corporate Social ResponsibilityCorporate Social Responsibility-- Glimpses of few initiativesGlimpses of few initiatives
SoS, an NGO has adopted BawanaSoS, an NGO has adopted Bawanaas one of the 131 villages across India,
in association with NDPL.
Organization of free Health camps for Industrial workersIndustrial workers in NDPL
areas such as Bawana, Narela, Wazirpur etc.
Active support to MSSIMSSI patients in NDPL area
NDPL is a signatory to the UNNDPL is a signatory to the UN’’s Global Compact Charter covering Corruption, Human s Global Compact Charter covering Corruption, Human Rights, Environment & Labor StandardsRights, Environment & Labor Standards
5 years of Sustained Efforts towards Business Excellence
Corporate Social ResponsibilityCorporate Social Responsibility-- Glimpses of few initiativesGlimpses of few initiatives
•• Blood Donation Camps: Blood Donation Camps: Regular Regular Blood Donation camps organized in Blood Donation camps organized in association with Red Cross Society.association with Red Cross Society.
NDPL PROJECT NDPL PROJECT
MEGAWATT SMILEMEGAWATT SMILE
Initiative towards improvement of quality of life of Slum dwellInitiative towards improvement of quality of life of Slum dwellers in Ners in N--NW DelhiNW Delhi
5 years of Sustained Efforts towards Business Excellence
Awards & RecognitionsAwards & Recognitions.. .. to name a fewto name a few
•• NDPL has been conferred with the NDPL has been conferred with the National Award for Meritorious National Award for Meritorious PerformancePerformance for two consecutive for two consecutive years 2004years 2004--2005 & 20052005 & 2005--2006. 2006.
•• NDPL created history by being the NDPL created history by being the first first TATA Group organizationTATA Group organization to have to have surpassed the 500 barrier in surpassed the 500 barrier in Tata Tata Business Excellence Model (TBEM),Business Excellence Model (TBEM),scoring scoring 516516 in its very in its very first attemptfirst attemptitself.itself.
HonHon’’ble PM presenting the awardble PM presenting the award
MrMr RatanRatan Tata presenting the awardTata presenting the award
5 years of Sustained Efforts towards Business Excellence
Public Lok Adalat Award for the 10000 settlements in 2 ½ years
AWARD FOR BEST BILLING
SYSTEM
Transparencyin Billing System
Intelligent Enterprise AwardFor IT initiatives
Award forCorporate Social Responsibility
Awards & RecognitionsAwards & Recognitions.. .. to name a fewto name a few
5 years of Sustained Efforts towards Business Excellence
YOUNG NDPL … Mature achievements YOUNG NDPL … Mature achievements Settlements through DLSASettlements through DLSA
Achiever’s Award for Record Settlements Achiever’s Award for Record Settlements (10,000 cases) (10,000 cases)
in Two & half yearsin Two & half years––Award instituted by DLSAAward instituted by DLSA
““When we studied the DLSA website, it is indeed When we studied the DLSA website, it is indeed reassuring to know the successful settlement of more than reassuring to know the successful settlement of more than
10,000 cases pertaining to 10,000 cases pertaining to North Delhi Power LtdNorth Delhi Power Ltd,, in the in the period Oct 2003 to July 2006, at the aegis of DLSA, preperiod Oct 2003 to July 2006, at the aegis of DLSA, pre--
litigation stagelitigation stage””Dr A.P.J Abdul Kalam, Dr A.P.J Abdul Kalam, 1010thth November 2006November 2006
5 years of Sustained Efforts towards Business Excellence
•• NDPL has undertaken the following Prestigious consultancy projecNDPL has undertaken the following Prestigious consultancy projects:ts:
Setting up of a Call Center for Paschimanchal Vidyut Vitaran Nigam Ltd (PVVNL), Noida in association with M/s CMC Ltd.
Restructuring of Transmission & Distribution sector of Mauritius in association with M/s TCS Ltd.
Capacity building program in Nigeria for effective management of a distribution company.
•• NDPL is in the process of taking up consultancy projects in leadNDPL is in the process of taking up consultancy projects in leading ing utilities based on the following core areas:utilities based on the following core areas:
Network & Reliability ImprovementAT&C Loss MitigationEnergy Audit & AccountingConsumer care initiatives
5 years of Sustained Efforts towards Business Excellence