中国电力行业分析报告（英文版）(ppt 65页).ppt

1、November, 2001,Business Consulting Providing Management Consulting Services to the Power Industry in China,1,Agenda,Section I.The Situation in China and the Challlenges for Power Companies II.The Opportunities for Improvement II.Implementing BPR and ERP,2,I.The Situation in China and the Challlenges

2、 for Power Companies,3,The major stakeholders evident in other power markets are yet to fully develop in China,Utility,Government,Customers,Employees,Environment,Shareholders,Captive customers cannot choose their supplier of power Low expectations of service Low consumption per capita,Employees are

3、captive with little choice to move between employers Staff Turnover 1% in most companies,The PRC government is yet to enforce major environmental regulations as are evident in most other deregulated markets,Few power companies are fully privatised No provincial utilities privatised,Plans for reform

4、have been spoken of, but no concrete decision yet made,Regulators,Effective “self regulation” through SPCC No independent regulatory body,4,From our work with a number of provincial utilities, we observe a number of areas where opportunities exist to significantly improve operating performance,Inabi

5、lity to accurately account for different functional segments (Generation,Transmission, Distribution and Retail) Lack of quality financial information generally and inadequate management reporting Management to technical KPIs and some financial ones, but a broad group of performance measures not used

6、 Excessive duplication of effort between business units (eg. accounting, purchasing conducted at multiple locations) Duplication of data entry through lack of integration of technology Excessive manual processing of major transactional tasks, and some areas completely lacking any form of technology

7、(ie. paper-based records) Non-standard processes (driven by differing uses of technology within the same organisation) Remuneration based on standard national salary scales impacting ability to reward employees based on performance,5,III. The Opportunities for Improvement,6,What is a “World Class” o

8、r “Best Practice” utility?,The transition to becoming a “Best Practice” power company is an “evolution” driven, in most cases, by the deregulation of the market and the introduction of competition The evolution starts with operational excellence, and develops into innovation and a customer focus, to

9、 a focus on creating value from multiple business activities,Operational Excellence,Focus on Shareholder Value,Innovation and Customer Focus,Obligation to Serve,Monopoly,Competitive,STATE OF DEREGULATION,MANAGEMENT FOCUS,7,From.,To.,Functional Management Manage business functions as defined by regul

10、atory accounting categories to comply with authorised expense budgets.,Process Management Develop and manage business processes linked directly to the utilitys outputs to focus resource allocation priorities, improve quality, and control cost.,Budget Control Negotiate costs with government and then

11、conrol expenditures to achieve authorised earnings.,Strategic Resource Allocation Aplly capital and operational, and non-financial resources to achieve competitive advantage consistent with strategic objectives.,There are a number of shifts in general management practices required to meet “Best Prac

12、tice”,Booking financial performance or contribution to government Achieve earnings targets as required by government revenue contribution needs.,Creating Shareholder Value Increase cash flow, reduce risk, and retain or pay out cash based on available investment opportunities.,8,There are a number of

13、 shifts in general management practices required to meet “Best Practice”,Regulatory Accounting Collect and report information primarily to comply with regulatory controls and government accounting standards.,Management Reporting Collect analyse and report information necessary to support management

14、decision making and performance tracking.,Monopoly Development Develop geographic territory by promoting load growth.,Business Development Develop profitable new markets or services that leverage of existing business assets and core competencies.,Employee administration Encourage comparability of co

15、mpensation among employees, maximise company experience through seniority, and avoid labour relations-based service interruptions.,Human resources development Develop and maintain a focused, agile and effective workforce operating in a culture that supports continued competitiveness.,From.,To.,9,Bel

16、ow we have provided a high-level summary of Best Practices that Andersen sees employed in leading utilities,Best practice utilities are: Focussing on Asset Management practices that optimize capital and operational expenditure by better understanding customer requirements and applying more rigorous

17、planning methodologies Focusing Finance activities on adding value to the business, and putting non-core services into a Shared Services model to improve service delivery and cost, and to standardize processes Optimizing their Supply Chain through better supplier management, focussed procurement str

18、ategies, and using web-enabling technologies to streamline the purchasing and logistics process Developing Human Resource Management activities away from transaction processing and towards strategy and change management Measuring and monitoring performance through Performance Management frameworks t

19、hat integrate corporate and business unit performance targets to ensure company objectives are met Employing state-of-the art Technology to support business decision making through provision of real-time financial and operational information,10,Utilities are fundamentally asset-based businesses, req

20、uiring long-term, high-value investment decisions, strong project management skills, and back-office processes that can provide cost-effective and timely services to the rest of the business,Corporate Office,System Planning,Construction, Maintenance and Operations,Procurement,Accounting,Human Resour

21、ces,Approve,Asset Planning,Annual Plan,Maintenance, Repair and Operations,Engineering Design,Purchasing Strategy,Maintenance and Construction,Transaction Processing,Analysis Reporting,Finance and Accounting,Transaction Processing,Recruitment and Training,Performance Management,Human Resource Managem

22、ent,Corporate Administration,Strategy Development,Performance Management,11,Leading utilities are focussing on Asset Management practices that optimise capital and operational expenditure by better understanding customer requirements and applying more rigorous planning methodologies,Corporate Office

23、,System Planning,Construction, Maintenance and Operations,Procurement,Accounting,Human Resources,Approve,Asset Planning,Annual Plan,Maintenance, Repair and Operations,Engineering Design,Purchasing Strategy,Maintenance and Construction,Transaction Processing,Analysis Reporting,Finance and Accounting,

24、Transaction Processing,Recruitment and Training,Performance Management,Human Resource Management,Corporate Administration,Strategy Development,Performance Management,Leading utilities are. Optimizing capital and operational expenditure by better understanding customer requirements and applying more

25、rigorous planning methodologies Improving asset management information to support decision making, allowing these companies to better prioritize where money should be spent and what operational improvement will result from that investment. Ensuring a transparent link between network investment and t

26、he objectives/business drivers of the organisation,12,Portfolio of Assets,$,?,Where do we allocate limited resources?,Asset Management,What performance targets do we need to meet? Do we have the necessary asset information to measure performance?,Do performance targets need to be the same for each p

27、roduct or customer? Do we understand what customers expect?,Are we too conservative in maintenance routines and planning standards? Do we have the necessary asset information to understand the impact of current practices,Required Performance,Customer Segment,Work Practices,Reliability Quality of Sup

28、ply Service,Industrial Commercial Residential Others,N-1 planning Manufacturer nameplate ratings,Better Expenditure Prioritisation,Investment Analysis Realistic Budgets Understanding of Value Delivered,Increased analysis of capital allocations have the potential to reduce expenditures substantially,

29、13,Andersen helped TXU in Australia to develop a capital expenditure prioritisation model that will allow them to determine the improvement in SAIDI/SAIFI for a given group of capital projects and a given level of spending. Future enhancements to the information base will allow targeted SAIDI/SAIFI

30、improvements by feeder line, and therefore a better targeting of maintenance and capital expenditures,Reliability,17,6,11,17,3,0,2,4,6,8,10,12,14,16,18,Project Portfolios,SAIDI Minutes,In actual fact, few utilities are truly exhibiting “best practice” in asset management, but competition and deregul

31、ation are making more utilities see the benefits of doing so,Leading utilities are developing the potential to link capital expenditure with defined performance outcomes,Reliability,A,B,C,D,E,14,Leading utilities are optimizing their Supply Chain through better supplier management, focussed procurem

32、ent strategies, and using web-enabling technologies to streamline the purchasing and logistics process,Corporate Office,System Planning,Construction, Maintenance and Operations,Procurement,Accounting,Human Resources,Approve,Asset Planning,Annual Plan,Engineering Design,Purchasing Strategy,Maintenanc

33、e and Construction,Transaction Processing,Analysis Reporting,Finance and Accounting,Transaction Processing,Recruitment and Training,Performance Management,Human Resource Management,Corporate Administration,Strategy Development,Leading utilities are. Integrating systems between engineering design and

34、 purchasing Improving project delivery through better project reporting Developing procurement strategies (strategic sourcing) to leverage spending across the organization Reducing the number of suppliers (simplifying supplier management and payment processing) Monitoring supplier performance,Mainte

35、nance, Repair and Operations,Performance Management,15,Leading utilities are integrating design tools with purchasing and inventory systems to provide a seamless process for project cost evaluation and materials requisitioning,Design Estimating System,Detailed Design,Bill of materials,Purchasing and

36、 Inventory system,The estimated cost of materials based on inventory information is returned to provide an accurate cost of the project requirements,Standard designs and assemblies On-line access Defined choice of materials,Project Identification,The required materials are checked through the invent

37、ory and purchasing system for price and availability,Purchasing,If these requirements push inventory levels below those required, an automatic re-order message is sent to the Purchasing Dept,16,Project Accounting in leading utilities allows reporting and analysis by individual project, and technolog

38、y can bring this to the desktop of each manager,Projects Past Estimated Due Date Lists projects beyond the original projected In-service date Projects by Status Lists Projects by status (eg. New, In-service, Near completion),ABC,By project,By location,Project Drillback Allows research into the feede

39、r systems for project related charges Project Resource Type Analysis Shows activity against a project in the form of Journal Entries,17,Companies not focussed on effectively managing planning, suppliers, materials storage and distribution exhibit a number of the following problems,No purchasing stra

40、tegy at Corporate, Group, Divisional or Business Unit levels The business is unable to best leverage the combined buying power of the organisation with suppliers There is a lack of visibility and detail on expenditure There are few controls on procurement with maverick buying habits There is a lack

41、of co-ordinated approach with other functions .such as engineering, plant maintenance, field services Excessive inventories, and obsolete or redundant stock There is a lack of controls with no or limited visibility of the true inventory levels,What is wrong with your Supply Chain Management?,Lost or

42、 unaccountable inventory Shortages causing plant or network down-time or expensive emergency actions Low efficiency and performance throughout the end to end process (purchasing staff spend a significant portion of their time performing administrative tasks) High total cost base and unsure where sav

43、ings are best sought Unclear improvement strategy and focus areas Antiquated purchasing systems Manual purchasing processes Excessive numbers of suppliers (which drives excessive processing requirements),We observe a number of common symptoms of poor supply chain performance,18,Commodity Action Team

44、s (CATs) are specialized purchasing groups comprised of both procurement staff and operational staff to ensure all relevant experience is utilized,CAT,Commodity Action Teams are flexible and dynamic work groups resulting in: Focused strategic effort Greater knowledge and skill capture Improved decis

45、ion quality Improved inter-functional communication Improved goal achievement Innovation,Teams are comprised of relevant staff from multiple departments who bring to the group operational expertise and process knowledge,Commodity Action Teams Composition: Illustrative,CATs will manage the procuremen

46、t strategy for high value or strategic items Purchasing of these items across the organization is aggregated to increase the spending power of the company,19,Both Reliant and Enron are examples of how focussed procurement strategies can deliver significant reductions in expenditures,Andersen assiste

47、d Reliant Energy through a complete analysis of all external expenditure and identified and prioritized opportunities for improvement. Based on the results, Andersen facilitated 22 client teams through our Strategic Sourcing methodology in four separate waves. The project achieved the corporate obje

48、ctive of improving cash flow by over $30 million per year.,Andersen helped Enron perform a complete redesign of supply chain management processes for the Pipeline Group. Processes included organizational design, national purchasing contracts, inventory management, Accounts Payable and supporting sys

49、tems. We further assisted Enron in creating a strategic sourcing program for all of its business units. The project formed seven Commodity Action Teams in two separate waves and identified over $41 million in annual savings. Andersen is currently performing an assessment of purchasing activities for

50、 identified business units to establish necessary platform processes to implement the SAP B2B application and to facilitate supplier integration.,20,Leading companies are focusing Finance activities on adding value to the business, and putting non-core services into a Shared Services model to improv

51、e service delivery and cost, and to standardise processes,Corporate Office,System Planning,Construction, Maintenance and Operations,Procurement,Accounting,Human Resources,Approve,Asset Planning,Annual Plan,Maintenance, Repair and Operations,Engineering Design,Purchasing Strategy,Maintenance and Cons

52、truction,Transaction Processing,Analysis and Reporting,Finance and Accounting,Transaction Processing,Recruitment and Training,Performance Management,Human Resource Management,Corporate Administration,Strategy Development,Leading utilities are. Reducing the focus on administrative and transaction pro

53、cessing tasks Focussing the Finance Department on becoming a “partner” to business units by providing reliable, timely financial information to support improved management control Using technology to enable more timely and accurate financial information Adopting a Shared Services model to centralize

54、 and standardize transactional processes,Performance Management,21,The evolving role of Finance means focusing on creating value and reducing costs, and creating a fundamental shift from transaction processing to a “business partner” for the operating units,Financial/ Statutory Reporting,Process Tra

55、nsactions,Provide Insight From Information,Provide Information From Data,Process Transactions/Collect Data,Functionally focused Performance not measured Transaction driven Cost vs. service benefit analysis not made Low-skilled Inflexible, Reactive Reporting/budgeting oriented,Process focused Measure

56、d against explicit objectives Value-driven, business results driven Cost vs. service benefit analysis utilized High-skilled Flexible, Proactive Profitability oriented,Traditional,Best Practice,22,Shared Services is a term that describes the consolidation, standardization, and reengineering of a supp

57、ort process into one or more units that serve the entire organization,Best Companies implement a shared services strategy to: 1) standardize work policies, 2) employ and consolidate common systems, 3) increase the span of control (ratio of staff to managers), 4) take advantage of economies of scale,

58、 and 5) eliminate duplication of effort. Functions organised into Shared Services can be transactional, or can have a greater degree of specialisation required.,High Volume, Routine Transactions,Specialized Skills,For example: Accounts Payable Accounts Receivable Credit and Collections Payroll Procu

59、rement Human Resource Management Services Property Management,For example: Taxes Insurance and Risk Management Legal Services Major Procurement Regulatory Compliance Occupational Health and Safety,23,Many utilities are using Shared Services as a means of streamlining non-core business processes, as well as to facilitate the regulatory separation of certain business activities required in the power industry,Board,Corpo