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PARETO BASED METERING STRATEGIC FRAMEWORK PRESENTER : Wilfred - - PowerPoint PPT Presentation
PARETO BASED METERING STRATEGIC FRAMEWORK PRESENTER : Wilfred - - PowerPoint PPT Presentation
TOPIC PARETO BASED METERING STRATEGIC FRAMEWORK PRESENTER : Wilfred Shereni Metering & Revenue Assurance Expert, Zimbabwe PRESENTATION OVERVIEW Objective of Presentation Pareto based Metering Strategic framework Meter To Cash
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PRESENTATION OVERVIEW
① Objective of Presentation ② Pareto based Metering Strategic framework ③ Examples of Pareto cases in the M2C value chain ④ Meter To Cash (M2C) Value Chain ⑤ Changes in the Meter To Cash (M2C) Value Chain ⑥ Steps to follow when using Pareto based metering strategic formulation approach ⑦ Potential Challenges in the Meter to Cash Value Chain ⑧ Problem mapping for the Metering Value Chain ⑨ Keys issues to consider when using Pareto based metering strategy formulation approach
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OBJECTIVE OF PRESENTATION
To share information on the Pareto based Metering Strategy formulation approach to enhance efficiency and effectiveness of the “Meter to Cash (M2C) Value Chain”
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PARETO BASED METERING STRATEGIC FORMULATION FRAMEWORK
A “Pareto based Metering Strategic Framework” is an enhanced strategy formulation approach that focuses and prioritizes on key/mission critical issues based on the 80/20 rule. It is a decision-making technique that statistically separates a limited number of input factors as having the greatest impact on an outcome, either desirable
- r undesirable.
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PARETO BASED METERING STRATEGIC FORMULATION FRAMEWORK
NOTE, the figures 80 and 20 are illustrative – the Pareto Principle illustrates the lack of symmetry that
- ften appears between work put in and results
- achieved. For example, 13 percent of work could
generate 87 percent of returns. Or 70 percent of problems could be resolved by dealing with 30 percent of the causes.
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EXAMPLES OF PARETO CASES IN THE METER TO CASH VALUE CHAIN
10% of customers contribute 90% of revenue 20% of customers account for 80% of Non Technical Losses(NTL) Metering faults constitutes 20% of utility faults but account for 80% of revenue loss 10% of customers owing account for 90% of debt 10% of the technical specification cover 90% of meter requirements 10% of processes in a project impact on 90% of the
- utcome
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METER TO CASH (M2C) VALUE CHAIN The Meter to Cash (M2C) value chain includes Metering, Billing & Collection functions which traditionally were handled separately but because of technological advancements are now merging
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CHANGES IN THE METER TO CASH (M2C) VALUE CHAIN
Traditionally Metering, Billing & Collection were distinct processes but are now merging into one end to end process
METERING, BILLING & COLLECTION (MBC)
METERING
BILLING COLLECTION
TRADITIONAL APPROACH CURRENT APPROACH
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STEPS TO FOLLOW WHEN USING THE PARETO BASED STRATEGY FORMULATION APPROACH
Identify & List problems for each phase
- f the M2C
Value Chain Group Problems together by Root Cause Add up the scores for each group & Rank Take Action Score Problems All Root Causes for Each M2C Phase Identified Root Causes No Yes
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POTENTIAL CHALLENGES IN THE METER TO CASH VALUE CHAIN
For any metering program, there will be challenges that arise in: Planning/Design, Equipment Specification, Purchasing, Installation & Maintenance and replacement Using Pareto Based Metering Strategic framework will assist focus on key issues, avoid pitfalls and optimise on resource usage The next slide shows problems that exist in the Meter to Cash value chain of a typical Sub Saharan African Utility referenced to best practice
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PROBLEM MAPPING FOR THE METERING VALUE CHAIN FOR A TYPICAL SSA UTILITY
Note: Problematic phases are highlighted in red
Planning/ Business Case FAT (End to End Testing) Technical Specification Drafting/Review Acceptance Testing on Delivery Meter Installation Design Fault Maintenance & Performance Monitoring Replacement at End of Guaranteed life span Meter Installation & Commissioning 15% 11% 12% 11% 13% 8% 5% 5% 12% 15% 10% 20% 10% 10% 5% 5% 18%
SPUs MPUs
15% 20% 11% 11%
LPUs
12% 13% 8% 5% 5% 20% Tender Process
Note: SPUs – Small Power Users, MPUs – Medium Power Users, LPUs – Large Power Users
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PROBLEM MAPPING USING PIE CHART – MPUS & LPUS
Planning/Business Case Technical Spec Tendering FAT Acceptance Testing Meter Installation Design Meter Installation & Comissioning Fault Maintenance & Performance Monitoring Replacement @ End of Lifesapn
20% 11% 8% 11% 5% 13% 12% 11% 15%
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TECHNICAL SPECIFICATION
PURCHASING
METER INSTALLATION
METER O&M
- Gorvenance
- Budget
- Technology
selection
- Resource
Allocation
- Feasibility
Analysis
- Risks
Analysis
- Project
Financing
- Implementati
- n timeframe
& Road map
- Business
requirements
- Functionality
required
- BI Required
- Standards
- Statutory/Le
gal requirements
- Feedback
from meter performance analysis
- Technical
due diligence
- Customer
numbers
- Maturity of
Technology
- Project
financing
- Tender
Evaluation & Award
- FAT issues
- Acceptance
testing
- Warranty &
Guarantee issues
- After sales
support
- Complexity of
Installations
- In-house or
- utsource
- Skills
required
- Project scope
- Installation
processes & procedures
- Level of NTL
- Post
implementati
- n support
model
- Skills
required
- Reliability/A
vailability
- Cost of
Support
- Customer
queries
- Tools &
Equipment
- Resources –
vehicle, manpower
REPLAEMENT @ END OF LIFESPAN
- Replaceme
nt programme @ end of life span
- Meter
failure statistics
- Budget
- Accuracy
required
- Big Data
Analytics
PLANNING /DESIGN
KEY ISSUES TO CONSIDER WHEN FORMULATING A PARETO BASED METERING STRATEGY
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