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 ① Objective of Presentation ② Pareto based Metering Strategic framework ③ Meter To Cash (M2C) Value Chain ④ Key Changes to the Meter To Cash (M2C) Value Chain ⑤ Examples of Pareto cases in the 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

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

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 ”

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 or undesirable.

PARETO BASED METERING STRATEGIC FORMULATION FRAMEWORK NOTE, the figures 80 and 20 are illustrative – the Pareto Principle illustrates the lack of symmetry that often 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.

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 outcome

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

CHANGES IN THE METER TO CASH (M2C) VALUE CHAIN TRADITIONAL APPROACH METERING BILLING COLLECTION CURRENT APPROACH METERING, BILLING & COLLECTION (MBC) Traditionally Metering, Billing & Collection were distinct processes but are now merging into one end to end process

STEPS TO FOLLOW WHEN USING THE PARETO BASED STRATEGY FORMULATION APPROACH Score Root Identify & Problems Causes List Yes problems for each phase of the M2C All Root Causes Value Chain for Each M2C Phase Identified No Group Add up the Problems scores for Take Action together by each group Root Cause & Rank

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

PROBLEM MAPPING FOR THE METERING VALUE CHAIN FOR A TYPICAL SSA UTILITY Replacement at End of Acceptance Testing on Meter Installation Design Meter Installation & Performance Monitoring Technical Specification FAT (End to End Testing) Fault Maintenance & Guaranteed life span Drafting/Review Tender Process Business Case Commissioning Planning/ Delivery 12% 15% 10% 10% 5% 5% 10% 20% 18% SPUs Note: Problematic phases are highlighted in red MPUs 15% 20% 11% 11% 8% 5% 13% 12% 5% 15% 20% 11% 11% 8% 5% 13% 12% 5% LPUs Note: SPUs – Small Power Users, MPUs – Medium Power Users, LPUs – Large Power Users

PROBLEM MAPPING USING PIE Planning/Business Case CHART – MPUS & LPUS Technical Spec 11% 15% Tendering 12% 13% FAT 20% 5% Acceptance Testing 8% 11% 11% Meter Installation Design Meter Installation & Comissioning Fault Maintenance & Performance Monitoring Replacement @ End of Lifesapn

KEY ISSUES TO CONSIDER WHEN FORMULATING A PARETO BASED METERING STRATEGY PLANNING METER REPLAEMENT @ TECHNICAL PURCHASING METER O&M /DESIGN SPECIFICATION INSTALLATION END OF LIFESPAN  Business  Customer  Complexity of   Post  Gorvenance Replaceme requirements numbers Installations implementati  Budget  nt Functionality  Maturity of  In-house or on support  Technology required programme Technology outsource model  BI Required  selection  Project @ end of Skills  Skills  Standards  financing Resource required life span required  Statutory/Le  Tender  Project scope Allocation   Meter Reliability/A gal Evaluation  Installation  Feasibility vailability failure requirements & Award processes &  Cost of Analysis statistics  Feedback  FAT issues procedures Support   Risks from meter Budget  Acceptance  Level of NTL  Customer  Analysis performance Accuracy testing queries  analysis Project  Warranty & required  Tools &  Technical Financing Guarantee  Big Data Equipment due  issues Implementati  Resources – Analytics diligence  After sales on timeframe vehicle, support manpower & Road map

END THANK YOU Cell Number: +263 774668303 Email: shereniw@gmail.com