HomeMy WebLinkAboutCompetitiveness Assessment
Augusta Richmond GA
DOCUMENT NAME: tDr'(I\x=\'\t.,'\J e_rle-~ S ()S ~5 men-\-
DOCUMENT TYPE: y~)(-\-
YEAR: C\B
BOX NUMBER: Ol\
FILE NUMBER: \ ~L' ~ --\
NUMBER OF PAGES:
l.d1
eo_petitiveness
Assess.ent Report
. EMA Servicd!S. Inc.
Linking People & Technology for Business Results
~ 1998'
.,. ," . .'
~ " .
.. ,
, , ,,' "
" - - - ,", ,;. .J' .,-
.... .'. .. .. .... . .., "". .."" . .....
.P\5409010 AUGUST AIREPORT\IT ABLE OF CONTE\010998\MGW
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
2
Table of Contents
I ntrod uctiol1
Background....."....................................................................................................... 2
1
Executive Summary
Business Practices......................................................................................... .......... 1-1
Technology............................................................................................................. 1-2
Skill Based Compensation and Work Force Flexibility......................................... 1-3
Conclusion.............................................................................................................. 1-3
Com petitiveness Strateg ies
Innovative Strategies Ensure Success..................................................................... 2-1
1. Total Productive Operations (TPO) .........................................................2-1
2. Planned Maintenance vs. Reactive Maintenance..................................... 2-1
3. Unattended Operations. ............ ...................... ......... ....................... ......... 2-2
4. Work Foree Flexibility (WFF)......................... .......................... ..... ......... 2-3
5 . Technology As Strategy...................................... ..................................... 2-5
6. Organization As Strategy....................... .................................................. 2-5
Getting Started on the Right Path ........................................................................... 2-6
- i .
EMA Services, Inc.
-PI5409010 AUGUSTAIREPORT\ITABLE OF CONTEI010998\MGW
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
3
4
Observations
Utility-Wide Observations...................................................................................... 3-1
Water Treatment Observations............................................................................... 3-2
Construction and Maintenance............................................................................... 3-3
Engineering Services.............................................................................................. 3-3
Wastewater Treatment Observations................................................................ ...... 3-3
Customer Service Observations.............................................................................. 3-5
Cost Savin~Js and Calculations
Non-O&M Cost Savings Opportunities.................................................................. 4-3
Serial Work Processes....... .... ............ ........... .... .............................. ......... .......4-3
Use of Cross Functional Teams................................. ............................... ..... 4-3
Duplication of Effort (Over Checking and Inspecting) ................................. 4-4
Use of Technology (Island, Re-entry, SILOS) ..............................................4-4
Strong Top-Down Culture .............................................................................4-5
Specialty Silos Prevalent (Not My Job)......................................................... 4-5
Formal Cross Training Program (Work Force Flexibility)............................ 4-5
Inflexible Technical Standards Imposed (Not the Way We Do It)................ 4-6
Old Outdated Policy and Procedures Impediments (Budgets,
Time Keeping, etc.)........................................................................................ 4-7
Culture Impediments (Fears, Punishments, Disrespect, Split
Value Camps, No Customer Consciousness)................................................. 4-7
Quality of Work Products (Generally External or Internal
Customer I)riven)........................................................................................... 4-8
- ii "
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Management of Load (Do the Right Things Right)
Service Level Agreements............................................................................. 4-8
Outsource Strategy......................................................................................... 4-9
Routine Customer Feedback Acquired.......................................................... 4-9
Non-O&M Cost Saving Results........................................................................... ..4-10
Technology as Strategy to Reduce Costs.......................................................4-11
Organization as Strategy....................................................... ........................ .4-11
Summary of Non O&M Gross Savings .........................................................4-12
Lost Productivity for O&M - Water Treatment Plant.............................................4-13
Total Productive Operations........................................................................ ..4-13
Unattended in Off-Shifts............................................................................... .4-13
Program Driven Maintenance ... ...... ...... ..... ........................................ ............4-14
Work Force Flexibility................................................................................. ..4-14
Technology as Strategy to Reduce Costs..................................................... ..4-15
Organization as Strategy.................................................... .......................... ..4-16
Summary of Water Treatment Gross O&M Savings.....................................4-17
Lost Productivity for O&M - Wastewater Treatment.............................................4-17
Program Driven Maintenance............................................ .......................... ..4-17
Work Force Flexibility.................................................................................. .4-18
Technology as Strategy................................................................................. .4-18
Organization as Strategy............................................................................... .4-19
Summary of Wastewater Treatment Gross O&M Savings............................4-20
Lost Productivity for O&M - Construction & Maintenance...................................4-20
Total Productive Operations....................................................................... ...4-20
-P\540901D AUGUST AIREPORT\IT ABLE OF CONTEID109981MGW
- iii -
EMA Services, Inc.
.PI5409010 AUGUSTAIREPORT\ITABLE ::JF CONTEI010998\MGW
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
5
Unattended in Off-Shifts................................................................................ 4-20
Program Driven Maintenance ................. ....... ............ .......... ....... ....... ....... .....4-21
Work Force Flexibility.................................................................................. .4-21
Organization as Strategy.............................................................................. ..4-22
Summary of Construction and Maintenance Gross O&M Savings ...............4-22
The Competitiveness GAP: Summary of Gross Savings........................................4-23
Recommendations
Recommendations Have Three Focus Areas .......................................................... 5-1
Addressing the Business Practice Issues Will Foster a Culture
of Competitiveness Awareness............................................................................... 5-1
Implementation of Technological Solutions Will Improve
the Bottom Line...................................................................................................... 5-2
The Skills (and Consequently) Compensation Levels Will Require
Upgrading to Support the New Practices................................................................ 5-3
Recommendations................................................................................................... 5-3
1. Stategic Business Plan .............................................................................5-3
2. Water and Wastewater Treatment............................................................ 5-5
3. Construction and Maintenance................................................................ 5-6
4. Custonler Service.................................................................................. ... 5-6
Appendices
A. Assessment Presentation
- iv -
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Introduction
Water and wastewater utilities are facing rapidly increasing financial
pressure driven by aging infrastructure, increasingly more stringent
regulatory constraints, and consumer demands. Added to these pressures
has been the threat of contract operations, wherein a private operating
company proposes to perform similar functions at a savings to a City or
County. All of these pressures have motivated more progressive publicly-
operated. utilities to determine how they could benefit by adopting revised
management practices and philosophies to improve productivity and hold
the line on controllable costs.
Augusta-Richmond Utilities Department (the Utility) took an important
step in the summer of 1997 when EMA Services, Inc., in cooperation with
the Utility, conducted a Competitiveness Assessment. The purpose of the
assessment was to determine potential cost savings opportunities if the
Utility implemented best industry management philosophies, practices,
and technologies currently applied by several large European and domestic
contract operations firms. The assessment effort included:
. Structured interviews with certain Utility personnel to determine
current work practices and to quantify costs associated with those
practices.
. Independent analysis and comparison between the Utility's current
situation and the private European approach.
. Presentation to Utility staff members of the six significant strategies
used by European utility managers.
. Prest:ntation to and discussion with a select group as to how the
stratt:gies could be applied to the Utility's operations.
. Preparation of this report outlining the results of the assessment
including implementation recommendations.
This report contains the following information:
. Section 1, Executive Summary. An overview of the purpose for the
work and its principal findings and recommendations.
-PI5409010 AUGUST AIREPORT\III01 09913\MGW
- 1 -
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
. Section 2, Competitiveness Strategies. EMA has identified six major
strategies upon which the most efficient utilities in the world base their
operations, maintenance, organization, and business practices. This
section describes these strategies.
. Section 3, Observations. This section documents the observations
made by the EMA assessment team both through a detailed desk audit
of documents supplied by the Utility and on-site observations made
while interviewing staff members.
. Section 4, Cost Savings and Calculations. Section 4 documents the
opportunities for savings within the Utility according to the applicable
assessment strategies. The calculations include savings opportunities
in both labor and equipment costs. The Utility's overall performance
gap is calculated at the end of the cost savings.
. Section 5, Recommendations. The recommendations resulting from
this assessment are included in this section.
Appendix A, Assessment Presentation. Appendix A contains a copy of
the overheads that were used in the assessment presentation in August
1997.
Background
This Operations and Maintenance Business Process and Management
Assessment Report was prepared to present the results of EMA' s
evaluation of the Augusta-Richmond Utilities Department.
The O&M review was based on comparing the Utility's operation against
the six competitiveness strategies that contribute to significant operating
efficienc:y. These paradigm strategies are noted below and are explained
in detail within Section 2 of this report.
In analyzing the treatment plants, the approach used is a hybrid of the
methodology employed by two privatizers: PSG and US Filter (EOS).
The numbers generated for the Utility are aggressive but closely match
those which PSG and EOS have been submitting in their proposals and
actually accomplishing at their contracted locations.
It is important to note that however difficult it may appear to achieve the
savings noted in the report, it is just this level of cost reduction that is
being sought by the most aggressive privatizers. As such, the numbers
generated by EMA's analysis represent a real world picture of the Utility's
competitive posture.
-P\540901D AUGUST AIREPORT\III010998\MGW
- 2 -
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
It is equally important to note that the privatizers' numbers and staffing
levels do not have to be matched. It is not the Utility's goal to eliminate
the competitiveness gap but, rather, to reduce the gap to the point that
privatizers find the Utility too great a risk for too small a reward. At that
point, Augusta-Richmond will be operating in the most cost effective
manner while maintaining customer service at the excellent level desired.
The Utility has expressed the opinion that reducing the water treatment
staff to 15 appears difficult and has asked EMA for an idea of how the
plant could be operated with so few employees. EMA agrees that
considering the state of the current technology and organization, the plant
requires more than 15 people. However, should the Utility invest in the
technology, training, and organizational changes recommended, 15 people
would be optimal. The staff would be deployed as follows:
. Off-shifts: 2 people per shift and 2 people for relief = 8
One person located at the surface plant overseeing that facility and all
other facilities via SCADA. The second person's time would be
divided between the raw water pumping station and the ground water
plant.
. Week days: 2 people at each of3 facilities + 1 relief = 7
The two people at each plant would be involved primarily In
maintenance tasks.
EMA is recommending an aggressive, highly automated solution. The
recommendation also requires a team based organization without
numerous levels of supervision. The goal is difficult but attainable, given
the technological and organizational support required.
In conjunction with a review of the O&M practices, the EMA team
conducted a Management Assessment focusing on the administrative
functions of the Utility. This review was based on a non-O&M, 14 point
criteria sl::ale for quantitative measurement of performance. A summary of
these criteria can be found in Section 4 of this report.
Prior to the site interviews, EMA team members analyzed information
provided by Utility staff. This desk audit included information regarding
operations, maintenance, financial, and organizational conditions
pertaining to the current Utility status. Prepared with this information, the
EMA team arranged on-site interviews with 16 key Utility staff for
additiona.l data collection and insights into the current business practices.
The interview and desk audit findings are summarized below and detailed
in Section 3 of this report.
.P\540901D AUGUST AIREPORT\IIID1 099!1\MGW
- 3-
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Following five days of interviews and analysis, EMA conducted a
workshop with Utility staff members to present our preliminary findings.
Additionally, the workshop provided an informal situation for staff to
comment and provide input on the findings. During the presentation,
EMA submitted calculations for determining the percentage of
competitive "gap" between the Utility and contract operated utility
systems. Section 4 of this report details the cost savings and calculations
applied to the O&M and non-O&M (administrative) departments of the
Utility.
The remainder of this report contains the detailed strategies, observations,
calculations, and recommendations originally presented in the
Competitiveness Assessment presentation.
-P\5409010 AUGUSTAIREPORT\I~01099Il\MGW
-4-
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Section 1 - Executive Summary
The Competitiveness Assessment of the Augusta-Richmond Utilities
Department (the Utility) conducted by EMA has resulted in
recommendations which provide the Utility substantial opportunities to
achieve the maximum benefits from the consolidation of the former City
and former County facilities. The Utility is a well managed organization
using the recent merger to provide the impetus for a long term program of
improvement in effectiveness and customer service while keeping rates at
competitive levels. This assessment, or evaluation, of the Utility's current
practices compared to the "best" practices in the industry is the first step in
the program.
EMA's recommendations to the Utility are grouped into three areas:
business practices, the use of technology, and skill and compensation
levels. The grouping is for convenience only. Many of the business
practices require technology for support and a better trained and
compensated work force to implement. The recommendations should be
considered a long term plan to achieve the maximum benefits from the
consolidation and to provide the operating efficiency necessary to sustain
growth and explore new opportunities.
Business Practices
Accepting and acting upon the business practices recommendations will
provide the benefits noted in this report because the integration and
modernization of the customer service function will be facilitated,
maintemmce will be performed in a more eost effective manner, and the
development of performance measures agreed upon by all will result in a
more focused work foree.
The Customer Service function can achieve gross savings of $470,000 by
changing current practices. In addition to the cost savings, the
recommendations also allow greater emphasis to be placed on serving all
the Utility's customers and doing so in a planned manner. The shift in
emphasis toward planned customer interaction initiated by the Utility
cannot readily be quantified but has substantial benefits in employee
morale and customer satisfaction, parameters of concern to management
and the overseeing municipality.
-P\5409010 AUGUST AICDW-ALO\IS1-EXECI010998\MGW
1 - 1
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
The recommendations for program driven maintenance will result in better
asset care and management. Cost effective maintenance is achieved by
employing only the necessary maintenance resources and by establishing a
manual of standard operating procedures based on "doing the right thing at
the right time."
Developing performance measures will assist in bringing the organization
together by providing a shared sense of purpose. The Utility will benefit
by having the employees aligned and working toward the organization's
goals, and the employees are much happier working in an environment
that values their participation and contribution.
Technology
Implemt:nting new technology will improve the performance efficiency at
the Utility's treatment plants, generate substantial maintenance savings,
and provide needed support for changes in Customer Service.
The treatment plants will generate gross savings of more than $500,000 in
operations, chemicals, and energy from the introduction of a process
control system. The current level of such automation is below average for
facilities of a similar size. Due to the current situation, savings may be
achieved quickly through process control automation in the treatment
plants.
The introduction of a Computerized Maintenance Management System
(CMMS) will improve resource allocation, reduce parts inventory, and
improve decision making and equipment performance. Coupled with
altered maintenance practices, as noted above, the potential CMMS-related
gross savings are greater than $600,000 per year.
The application of technology will permit the Utility to consolidate the
separate and unconnected billing and customer systems, which require the
Utility to maintain more locations and people than would be the case using
a single system. Gross savings are calculated at over $120,000 per year.
Additionally, customers could be offered options on where and in what
manner payments are made. The benefit to the Utility will be even greater
if a new system is chosen after the current work practices have been
reviewed and improved.
-P\5409010 AUGUST AICDW-ALOIIS 1-EXECID1 0998\MGW
1 - 2
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Skill Based Compensation and Work Force Flexibility
More efficient work practices supported by new technology will require a
different skill set from what is currently available at the Utility.
Determining what skills will be required will enable the Utility to create
the training programs needed. Employee participation in the skills
inventory will improve buy-in and acceptance of the effort.
EMA has recently assisted another utility in the successful implementation
of an SBC and WFF program. That utility, which had a 22%
Competitiveness Assessment gap, virtually closed that gap by instituting
SBC and WFF. The savings were greater than forecast because of the
power of the concept and the excellent implementation work on the part of
the utility. A similar success is possible for Augusta-Richmond Utilities.
Conclusion
EMA has recommended several projects to be undertaken by the Augusta-
Richmond Utilities Department. These recommendations have been made after
an analysis of the Utility's practices compared to the "best" practices in the
industry. The recommendations are made in the context of a Master Business
Plan to carry the Utility for the next three to five years. By accepting and
implementing the recommendations, the Utility will be able to maximize the
benefits from the recent consolidation and generate gross savings of $3.15
million per year to provide the funding for the technology, training, and
compensation necessary. The net savings realized will depend on the final cost of
the new technology implemented, employee training, and the increased
compensation for the retrained employees.
-P\5409010 AUGUST AICDW-ALOIIS 1-EXECI01 0998\MGW
1 - 3
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Section 2 - Competitiveness Strategies
Innovative Strategies Ensure Success
Through experience working with many utilities, including large, private
European utilities, EMA has identified six major strategies in which
European and United States utilities differ. These six strategies, or
paradigms, are what provide European companies and their American
subsidiaries significant cost advantages. The strategies are:
1. Total Productive Operations.
2. Planned Maintenance versus Reactive Maintenance.
3. Unattended Operations.
4. Work Force Flexibility.
5. Tedmology as Strategy.
6. Org,mization as Strategy.
Each of the six strategies were applicable to the assessment of the
Augusta-Richmond Utilities Department and are described below.
1. Total Productive Operations (TPO)
In the United States, utilities have traditionally organized around two
distinct work groups: Operations and Maintenance (O&M). The Total
Productive Operations (TPO) strategy eliminates this distinction by
changing the dual "O&M" work force emphasis to a combined group
performing continuously improved, foeused operations and maintenanee
tasks. Operators no longer "watch and wait" for problems to occur.
Instead, everyone in a single work force has maintenance assignments to
complete while process monitoring and control technology alert certain
maintemmce personnel to process deviations and alarms.
2. Planned Maintenance vs. Reactive Maintenance
Many United States utilities operate in a "reactive" maintenance mode
with the "if it isn't broke, don't fix it" philosophy predominating. The
Planned Maintenance strategy focuses labor resources on planned,
-P\5409010 AUGUST AIREPORT\IS2-STHA TEI01 0998\MGW
2 - 1
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
preventive, and predictive activities while confining reactive maintenance to
a small fraction of all maintenance performed. Materials and inventory
management are synchronized with planned equipment overhauls, reducing
or eliminating travel time and other similar dead time components typical of
the reactive maintenance philosophy. When properly implemented and
supported with integrated information systems, the Planned Maintenanee
management philosophy can save up to 40 percent of labor costs normally
assoeiat,ed with the reactive approach for the typical United States utility.
100%
~ 80%
~
c:
'm
~ 60%
-
0
Ui
0 40%
0
20%
~ ~
, ~I
~' '~
~,"",'_ 0...
.....C' " Vi'/,
20% 40% 60% 80% 100%
level of Maintenance in
Advance of Failure
Figure 2-1: level of Work Planned in Advance of Equipment Failure
The curve in Figure 2-1 shows the relationship of the total cost of
maintenance to the percentage of work that is planned in advance of
equipment failure (vs. reactive maintenance, which waits for things to
break). This curve has been developed from maintenance experience in
both the private and public sectors and is the model used by private
European water companies as well as by United States privatizers.
The graph shows that if a utility is in a highly reactive mode, maintenance
costs can be cut by 40 percent at the optimum level, at which 75 percent of
maintenance work is planned in advance. The reason for these savings is
that planning maintenance in advance reduces waiting time for parts, crafts,
and other resources which in turn increases "wrench on bolt" time.
3. Unattended Operations
Today, major European facilities often run "unattended" or, at least, in
the absence of operations personnel specifically assigned to wait and
watch for process deviation and alarms, especially during "off' shifts. By
.P:\5409010 AUGUSTA\REPORT\\S2-S11~TE\0109981MGW
2-2
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
contrast, in North America, most major water and wastewater treatment
facilities run fully attended by staffs of operators waiting and watching for
process deviation and alarms. The driving elements creating the
difference between these two philosophies are the perceived risks
associatl~d with process deviations and the perceived level of reliability of
the process automation technologies deployed.
Profit motive has provided powerful incentive for the private European
companies to move beyond conjecture and experimentation to full
impleme:ntation of unattended operations despite initial perceptions of risk
and unrdiability. Of course, this depends on the type of process and level
of automation employed at the facility. Regardless, in all cases, these
companies have been successful in reducing the number of operators
attending a facility during "off' shifts. The unattended operations
philosophy has driven the Europeans to develop plant designs that
integrate: reliable automation technologies with processes. What the
Europeans (and a few United States utilities) have proven is that
unattended operations, when properly designed and implemented, are in
fact often more consistent and predictable than attended operations.
Unattended operations are often significantly less risky than the attended
approach because heavy dependence on staffs of operators with mixed and
variable skill sets, knowledge, intuitions, and motivations is substantially
reduced. The Europeans have proven that the unattended operations
strategy saves money and is a reliable approach to facility operations.
4. Work Force Flexibility (WFF)
Historically in the United States, the largest single dead time factor
affecting the execution of utility maintenance work has been people
waiting for other skills to arrive. Single-skill work systems artificially
separate skills and crafts institutionalizing "skill-waiting" dead time.
Europeans and progressive Ameriean utilities have shown that inereasing
the range of skills possessed by maintenance personnel through cross
training can reduce skill-waiting time by up to 40 percent. Cross training
is standardized, expedited, and individually configured through structured
programs supported by multimedia-based instruction systems. On-the-job
practice, procedure, and standards review and guidance are provided by
knowledge-based decision support systems.
The work force flexibility strategy is illustrated in Figure 2-2. Staff
members are no longer confined to one skill set or one functional area. As
staff are cross trained in multiple areas, the circles overlap and a larger
number of staff is available to work in all funetional areas, as needed. A
"sweet spot," the crossover of all functional areas illustrated below, is the
-P\540901D AUGUST AIREPORT\IS2-STRA TEI01 0998\MGW
2-3
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
goal of work force flexibility. This sweet spot represents staff who are
trained in multiple skills, provide added value to the organization, and are
compensated according to their skill sets.
~
Figure 2-2: Work Force Flexibility Provides Skill Crossover
Figure 2-3 illustrates the goal of work force flexibility - increased
productivity. Skill-based eompensation is part of this strategy because it
allows employees to be paid based on their level and diversity of skills.
The highest paid employees directly impact productivity measures in that
they provide the most benefit by being skilled in multiple areas.
20%
Loss in
Productivity
'-
"~,
',-
",
,
",
"
",
"
'-
""'.
'"
..."'........
.~.
High
o
Low
Medium
Figure 2-3: Degree of Work Force Flexibility Implemented
Figure 2:-4 further illustrates the benefits of work force flexibility. Since
people have multiple skills, reducing waiting times yields: productivity
increases, labor and dollar savings, and improved morale, because
employees are learning and doing new things. Utilities and industries using
this approach have seen an increase in wrench-on-bolt time from a typical
2.5 hours per day to 4.5 hours per day, or an 80 percent increase in
productivity .
-P:\5409010 AUGUSTAIREPORT\\S2-SlHA TEI010998IMGW
2-4
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Waiting for People
Percent
Time
Waiting
Waiting/Searching
for Documentation
Waiting for Parts
Figure 2-4: How Work Force Flexibility Reduces Wait Times
5. Techno/c)gy As Strategy
Many United States utilities are very cautious, viewing process control and
information technology as "risks" to be minimized. The European
paradigm recognizes the exponentially increasing value of applying
technology as a strategy to every business process within the utility. When
information technology is viewed as strategic, it can be factored into every
challenge, initiative, or project required for utility operations, maintenance,
management, and administration. On an enterprise-wide basis, integrated
systems allow information to be appropriately shared, facilitating
continuous improvements in business processes. The European paradigm
leverages the cost-effectiveness of applied, integrated technology in many
ways, for example:
. Automated process operations.
. Knowledge-based systems for infrastructure maintenance and water
qualiity management.
. Adv:mced customer service information systems.
. Technology-based training, problem analysis, and decision support.
6. Organiza'tion As Strategy
United States utilities traditionally have a hierarchical organizational
structure that tends to be mechanistic, fixed, and resistant to change.
Change, however, is inevitable to meet the growing demand to do more
with less.
-P:\5409010 AUGUSTAIREPORT\IS2-STHA lEI01 0998\MGW
2-5
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Our analysis did not review the potential cost savings for reengineering
your organization. Along with technical and process analyses, we
assessed various organizational scenarios and developed some estimates of
savings based on implementing the organizational recommendations.
These associated savings can be found in Section 4, Cost Savings and
Calculations.
Getting Started on the Right Path
As you begin to operate your utility according to the six key strategies,
there are two critical activities that must be undertaken to start becoming
competitive and to secure your public ownership.
First, talk to your political leaders and make sure they know what you are
working on and what your goals and focus are. Second, show evidence of
new work practices and results so that when your utility is examined, it
will be obvious that you have implemented "best practices" and are
operating just as fiscally conscious as would a private firm.
-P\5409010 AUGUST AIREPORT\\S2-STRA TE\010998\MGW
2-6
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Section 3 - Observations
This section summarizes our field results, presentation feedback and staff
input/corrections. EMA has conducted over 120 assessments of this type
for water and wastewater utilities throughout the US. In our assessment of
Augusta-Richmond Utilities Department, we divided the Department into
six functional sections:
. Utility- Wide Observations
. Water Treatment Observations
- Treatment
.
- Maintenance
Construction & Maintenance Observations
Engineering Services
Wastewater Treatment Observations
- Treatment
.
.
- Maintenance
.
- Sludge Hauling
Customer Service Observations
- Customer Contact
- Billing
- Meters
Utility-Wide Observations
The Augusta-Richmond Utilities Department is the result of the recent
merging of the City of Augusta into the County of Richmond. The Utility
is well managed and recognizes that the merger presents a unique
opportunity to develop a modern, competitive organization. The Utility is
financially sound with excellent prospects, and its employees are dedicated
and committed to public service.
-P\5409010 AUGUST AIREPORT\IS3-0BI010998\MGW
3 - 1
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
At present, the Utility remains organized along city/county lines. A "Class
and Compensation" study has been conducted, and the organization is
addressing inequities between former city and county compensation
packages. However, compared to the industry overall, the salaries and
benefits are relatively poor.
There is relatively little use of technology throughout the Utility and most
functions are labor intensive. The treatment facilities show a lack of
recent investment. The Utility maintains a high level of overtime, and a
"business" perspective is not wide spread. Cost impacts are not well
appreciated and until recently, such information was not available to most
employees.
The budget is based on functions rather than activities making accurate
costing difficult. The functional costs break down as: Administration-
18%, Construction & Maintenance - 18%, Customer Service - 12%,
Wastewater Treatment - 30%, and Water Production - 22%.
Water Treatment Observations
These observations apply to the water filter plants, the ground water plants
and the raw water pumping stations. All three sections are staffed 24
hours per day.
Treatment
Apart from alum, surface water filter plant chemicals are manually
controlled. At the ground water plant, the chemicals are automatically
started and stopped but require manual adjustment. Production in the
surface water plant is hydraulically limited while the ground water plants
cycle frequently.
There is little on-line monitoring and control at the filter plant and
operators make frequent and regularly scheduled rounds to check
equipment and record data. The recording is manual as opposed to
computer based. Operations at the raw water station and the canal
operations are performed manually.
Operations and maintenance are two distinct groups at the filter plant, but
operators perform some maintenance tasks at the ground water plant and
the raw water pumping station. The filter plant maintains two operators
per shift for safety reasons and to perform some miscellaneous activities.
-P\5409010 AUGUST AIREPORT\IS3-0BI010998\MGW
3-2
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Maintenance
As mentioned, operations and maintenance are two distinct groups at the
filter plant; there is no work force flexibility. However, operators perform
some maintenance tasks at the ground water plant and the raw water
pumping station. Maintenance at the filter plant is reactive rather than
planned.
There is an inventory valued at approximately $400,000.00 at the filter
plant.
Construction and Maintenance
There is a new supervisory control and data acquisition (SCADA) system
connecting approximately 40 formerly county sites. The SCADA system
is monitored by operations staff providing 24-hour-per-day coverage from
the control room.
The maintenance staff is not divided along distribution and collection
lines. Crew sizes are typically three or four staff. The crews meet daily at
two locations to receive their work assignments. Little cross training
occurs at present but there are plans to provide cross training for heavy
equipment, vacuum truck, and rod truck operators.
The crews perform mostly reactive maintenance, and there is a significant
backlog of maintenance work. An inventory of approximately
$500,000.00 is maintained.
Engineering Services
The Engineering section has recently been formed to provide engineering
and inspection support to the Utility. Ten positions were planned and as
of October 1997, seven have been filled. At the time of this assessment,
there was no access to GIS or Auto Cad. GIS access is planned for 1998.
An hydraulic model is maintained by ZEL Engineers but the Utility does
not have direct access.
Wastewater Treatment Observations
The wastewater treatment plant comprises the older North plant, designed
for 17 MGD, and the 28 MGD South plant. The plants are operated as one
plant and staffed 24 hours per day, seven days per week in two, 12-hour
-P\5409010 AUGUSTAIREPORT\\S3-0BI.010998\MGW
3-3
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
shifts. The flow split between the North and South plants is manually
controlled.
Treatment
Some 40 cubic yards of grit are removed weekly from the influent screens.
There are no performance measurements for removal rates, and the screens
run continuously because they must be manually controlled. There are
four 300 hp pumps in the influent station. The station is unsafe and will
be completely renovated within the next few months.
The clarifiers in the North Plant transfer RAS/W AS through draft tubes
into a common transfer line. Differential head pressures can eause
problems with this flow. Raw sludge pumping is on a timed rather than a
calculated basis. WAS is routed to gravity belt thickeners. There are no
transfers between primaries and secondaries, no pearth mixers, and no
volatile solids reduction. There is automatic polymer chemical feed
equipment on the thickening system.
Process control procedures such as W AS/RAS rates, digester loadings, and
centrifuge operation are based on past experience rather than current
observations. Operators are required to manually adjust, start, and stop
equipment. The dissolved oxygen meters are out of service necessitating
manual readings in each basin effluent six times per day. These practices
together with a minimal use of automated systems, a lack of "team"
activities, and a scarcity of Best Practices process control measures lead to
excessive staff levels.
Maintenance
Generally, there is very little planned maintenance. While daily work
schedules may be planned and assigned priorities, the lack of an overall
planned maintenance program dramatically reduces the effectiveness of
the daily work. No predictive maintenance is practiced and the preventive
maintenance is based on manufacturers' recommendations. The blower oil
analysis has been contracted to an outside provider.
Equipment maintenance is tracked using a manually produced card for
each piece. The system is not complete, does not adequately track
performance measures, and is resistant to information retrieval. Work
orders are multi-part paper forms and carry no history to support the
current repair.
-P\5409010 AUGUST AIREPORT\IS3-0BI01 099B\MGW
3-4
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
The maintenance staff is budgeted for 10 people including a foreman but is
currently operating with a total of seven. At the time of this study, the
salaries appear low as does morale, generally, but the Class and
Compensation Study may address this problem. The staff take advantage
of the Utility's sick leave policy presenting further planning problems.
The lift stations are visited and maintained by an employee visiting
between 10 and 12 stations per day. An inventory of approximately
$180,000.00 is maintained.
Sludge Hauling
The sludge thickening system does not operate as efficiently as it might.
The sludge is thickened to 4.5% to 5% solids but could be improved to 7%
and still be spread satisfactorily.
The manager of the hauling crew has established some performance
standards but the drivers employ poor work practices, including abuse of
overtime, slow work, and unauthorized time off. At the time of this
assessment, low pay might contribute to these poor work habits, but the
Class and Compensation Study may address this issue. A significant
amount of data is provided to EP A and state agencies.
Customer Service Observations
Customer Service has been reviewed in terms of its three major functions:
customer contact, billing, and meters. This area of the Utility has had less
success in merging because the different computer systems supporting the
former city and county are not and cannot be integrated. As a result,
consolidation of space, personnel, and proeedures is impossible.
In general, not much technology has been invested in Customer Service,
and its operations are labor intensive and conservative. This is particularly
true for the telephone system, which is inadequate for the task. Training is
lacking on many levels, although the staff would like to provide superior
customer service. Overall, the staff spend a large proportion of time on a
few problem accounts resulting in less energy and fewer programs
designed to enhance the relationship between the Utility and the great
majority of its customers.
Customer Contact
There are eight people whose primary job is to deal with customers for
other reasons than taking payments. This amounts to 16% of the
-P:\540901D AUGUST AIREPORT\IS3-0BID1099B\MGW
3-5
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Customc~r Service staff. The staff are evenly divided between the former
city and county customers and locations.
There is no call management system to assist in staffing levels and
scheduling. Additionally, there is no call tracking system to build a
database to provide information as to the types of calls by content, call
histories by service address, or areas of town generating the most calls.
Training seminars are being used where possible, but most training is done
by senior employees. There is little training in customer contact
techniques and no feedback mechanisms from customers exist. Training
furnished by the Utility is concentrated on the current computer and billing
systems, but staff receive no training in answering water quality questions.
Billing
There are 11 staff devoted to billing, either as cashiers, billing clerks, or
delinquent accounts. That is 22% of the total Customer Service staff.
They arc engaged in a mostly manual process with the computer assisting
only in bill printing and account posting. There is substantial duplication
of effort, much of it introduced to verify and double check. Much of the
manual effort could be automated or contracted to an outside supplier.
The work load is erratic because the meter reading cycles do not contain
equal numbers of meters. This irregularity causes management and
customer contact personnel to supplement the billing staff during busy
periods. Training is provided for the billing staff in each of the computer
systems in use.
Customers must pay either by mail or in person. Billing agents, direct
debit, standing orders, and credit card options are not available.
Meters
Meter readers and repair personnel represent 56% of Customer Service
staff. Of these 28 positions, 16 are readers (including the meter reader
supervisors) and 12 are in repairs and turn on/off activities.
In the former city area, there are approximately 32,320 meters read by six
employees for an average daily output of 250 meters. In the former county
area, the meter count is 28,660 read by eight employees for an average
daily output of 165 meters. In comparison, a good working average is 350
meters per day.
-P\5409010 AUGUST AIREPORT\IS3-0BI01 0998\MGW
3-6
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
The installed meters average over 15 years of age. Experience indicates
that meters of such an age are about 95% efficient. The merger of the city
and county presents an excellent opportunity to redesign meter reading
routes and the frequency of reads.
-P\5409010 AUGUST AIREPORT\IS3-0BI010998\MGW
3-7
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Section 4 - Cost Savings and
Calculations
EMA's assessment of the Augusta-Richmond Utility Department's
competitiveness gap is valued at 27.0% of the current operations and
maintenance spending; 25.2% in the Customer Service Department and
27.4% [cJr the O&M Departments:
Function Cost Basis Savings GAP
eust. Svc.l Admin $2,344,564 $591,000 25.2%
AlIO&M 9,346,599 2,561,500 27.4%
Total $11,691,163.00 $3,152,500.00 27.0%
Table 4-1: Augusta Richmond Utility Department's Gap
To meet competitive utility standards, the Augusta-Richmond Utility
Department must achieve a gap somewhere between 1 % and 10%, as
illustrated in Figure 4-1. This can be accomplished within three to five
years with appropriate adjustments and modifications to current business
practices. Should the Utility be faced with a managed competition
situation, there would be less than one year to react. A contract O&M
provider could operate the Utility at close to a zero gap. The disadvantage
of operating a utility at the zero gap is a drastic reduction in customer
services. The 10% gap range provides a utility a comfort zone to supply
similar customer services while appearing "unattractive" to a private firm.
-P:\5409010 AUGUST AIREPORT\\S4-CALCULA T\01 0998\MGW
4 - 1
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
30%
A-RUD:
27% Gap I'L)w
ca
C)
-10%
CIl
:a
So..
o.ca
CIlC)
(,)
(,)
<(
5%
A-RUD's Goal
Between 1 & 10%
_ 0%
Time
(3 - 5 Years)
Private O&M Operator
Runs 0% Gap
Figure 4-1: Competitiveness Gap in Relation to
Augusta-Richmond Utilities Department
The savings calculations in this section might help the Utility move to a
more competitive posture within the utility industry and to achieve a
competitiveness gap somewhere between 1 and 10% within three to five
years. This time frame allows practices, organizational, and culture
changes to happen with a high level of employee involvement. Other
solutions, such as those sought by managed competition, achieve changes
in practices and organization through "slash and burn" techniques, but the
culture of the utility remains unchanged. In this situation, old habits return
easily and morale is low due to the lack of employee involvement and time
to accept and implement new ideas.
The savings opportunities in this section were presented to staff during
EMA's assessment presentation in August 1997. Where improvements in
the Utility's methods or practices could be made, the increase in efficiency
is expressed in terms of staff savings. This does not necessarily mean that
the work ean currently be completed with fewer staff members. Rather, it
shows that the existing staff will be more efficient and "work smarter."
The savings noted are expressed in gross terms. Some of the savings will
have to be plowed back into technology and training for the full net
benefits to accrue. The savings are expressed as gross savings to enable
the Utility to appreciate the absolute value of the suggested
recommendations and demonstrate that the changes can be financed from
the Utility's cash flow. For example, it is the reduction in the number of
operators which provides the capital for the required technology needed to
supplant those operators and train others in the positions.
-P:I5409010 AUGUSTAIREPORT\\S4-CALCULA l\01099B\MGW
4-2
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Non-O&M Cost Saving Opportunities
Serial Work Processes
Concurrent vs. Serial Work Processes. The way tasks are routed
through an enterprise: concurrent or serial. More effective
organizations optimize staff productivity with concurrent routing.
II~ III
III~II c=>1I
0%
Never
50%
100%
Always
This score is 3.33.
. Meter work is most often completed by the individual who began the
task..
. Billing and other customer contact work often cannot be completed all
at once. Additional information might be required, so the task is
handed on for completion.
Use of Cross Functional Teams
Collaborative Teamwork. Use of cross functional teams; how
employees do their work and communicate with other disciplines.
More effective organizations optimize staff productivity with
dependence on cross functionality.
.~II'
III ~II c=>1I
100%
Always
75%
50%
25%
0%
Never
This score is 3.33
. The customer service and billing staffs are cross trained and assist each
other.
. Meter personnel are not cross trained.
-P:\5409010 AUGUSTAIREPORT\\S4-CALCULA TI01099B\MGW
4-3
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Duplication of Effort (Over Checking and Inspecting)
Duplication of Effort/Over-Checking. Are tasks or processes
redundant? More effective organizations optimize staff productivity by
avoiding redundant handling and inspecting.
II~ III
4111
'1Ic=>1I
Never
Rarely
Always
This score is 2.85
. Very little duplication in the meter shop.
. There is substantial duplication and cross checking in the billing
function. These procedures have been consciously introduced to
provide a safe environment for cash and for the employees, however,
little advantage is taken of the automated alternatives.
Use of Technology (Island, Re-entry, SILOS)
Use of Technology. Is technology used productively and evaluated for
work improvement? More effective organizations optimize staff
productivity with a high dependence on productive implementation of
technology.
II~ III
III ~II c=>1I
Integrated
Separate
Islands
This score is 3.5
. Billing cannot handle all customers because of different computer
systems.
. Technology infrastructure currently lacking throughout the Utility.
. Fairly high degree of re-keying data and hand written work orders.
. Meter information is up and down loaded to a PC with a minimum of
re-entry.
-P:\540901 0 AUGUSTAIREPORT\\S4-CALCULATI01 0998\MGW
4-4
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Strong Top-Down Culture
Strong Top-Down Culture. Is leadership authoritarian and non-
consensual, or does the leadership have and share a common vision?
More effective organizations optimize staff productivity with a shared
perception of a corporate vision and its day-to-day manifestation.
II~ III
1111
I.~II
Rarely
This score is 4.5
. The current management maintains an open door policy at all levels,
which was not the case prior to the consolidation.
. Regardless of the relative openness, employees believe the culture
remains strongly top-down.
Specialty Silos Prevalent (Not My Job)
Cross-Functionality vs. Prevalence of Specialty Silos. Are employees
segmented in small focus areas? More effective organizations optimize
staff productivity by avoiding such segmentation. Communications and
team functioning are emphasized.
.~II'
III ~II c=>1I
0%
Rarely
50%
Generally
100%
Everywhere
This score is 3.44
. The customer contact and billing staff assist each other as standard
practice.
. There is substantial specialty in the meter shop.
. Generally, computer skills are low - improvement will be needed in
the future to implement cross functional work practices.
-1>:15409010 AUGUSTAIREPORT\\S4-CALCULA T\010998\MGW
4-5
EMA Services. Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Formal Cross Training Program (Work Force Flexibility)
Formal Cross Training Program. Is there a cross training program
mandated? More effective organizations provide avenues and
opportunities for cross training. Formalized programs exist, with
established norms for performance, and recognition (certification) of
achievement.
II~ III
Complete
1111
Some
.. c=>1I
None
This score is 3.83
. There is no cross training in the meter shop. Meter routes are not
switched.
. Customer contact and billing have successful cross training programs
for staff.
. A-RUD does not have a work force flexibility program.
Inflexible Technical Standards Imposed (Not the Way We Do It)
StajJlManagement Relationships. Is the organization collegial and
cooperative in spirit, or is it rigid in its hierarchic organization, with
emphasis on the trappings of position and power?
II~ III
Rarely
III ~II c=>1I
Always
This score is 3.67
. Utility staff appears flexible overall but there is a culture of following
the procedures already in place.
-P:\5409010 AUGUSTAIREPORT\\S4-CALCULA TI01099B\MGW
4-6
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Old Outdated Policy and Procedures Impediments (Budgets,
Time Keeping, etc.)
Flexible Operating Environment vs. Policy and Procedure
Impediments. Is the enterprise flexible and does it change for success?
Are policies indicative of a competitive industry? More effective
organizations embrace flexibility for standards and procedures.
a~.,
Few
1111
'1Ic=>1I
Many
This score is 2.00
. The personnel interviewed thought there were few such impediments.
. EMA noted that there was a need more written policy and procedures,
e.g., Capital Project Schedule and Budget Management, and the
current lack of such guidelines constituted a greater impediment than
perceived.
Culture Impediments (Fears, Punishments, Disrespect, Split
Value Camps, No Customer Consciousness)
Flexible Cultural Environment vs. Cultural Impediments. Are the
employees and management open to new ideas? Do they embrace
change? More effective organizations recognize the process of change
and growth, assessing and embracing change as it is appropriate.
a~II~II'
Few Generally
,1Ic=>1I
Many
This score is 2.33
. There is a strong "can do" attitude fostered by the new management
team.
. The legacy of previous administrations is less open and the vestiges of
that style remain strong.
-P:\540901D AUGUSTAIREPORT\\S4-CAlCULATI01099B1MGW
4-7
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
. Very customer conscious but focused more on the problem accounts
than on achieving overall customer satisfaction.
Quality of Work Products (Generally External or Internal
Customer Driven)
Continuous Improvement Commitment. Are employees on the lookout
to enhance goods and services? More effective organizations recognize
the validity of this initiative and have methodologies to recognize and
implement opportunities to improve.
II<:==JII~.I
11Ic=>1I
Low Value
High Value
Some Value
This score is 2.33
. Generally, the quality of work is high although it takes longer to
complete because of the technology issue.
. A-RUD has no formal means of recognizing and encouraging
continuous improvement.
Management of Load (Do the Right Things Right) Service
Level Agreements
Management of Load. "Do the Right Things Right" - formalized
service agreements. Can employees make decisions to do their job
right the first time? Are they empowered? More effective
organizations offer staff the freedom to identifY and perform key tasks
to enhance organizational effectiveness and customer satisfaction.
.~1I1
Always
1111
III~
Rarely
Sometimes
This score is 4.67
. There are no service level agreements.
. There is a substantial amount of required higher level approval.
. Excessive time appears to be spent with problem customers.
-P:I5409010 AUGUSTAIREPORT\IS4-CALCULAT\01 099B1MGW
4-8
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Outsource Strategy
Out-Source Strategy. Is the outsourcing of non-core processes
considered? More effective organizations do what they do uniquely
well, and identifY and off-load non-core processes.
.~II'
Open
,III ,II r=>.
Some Closed
Consideration
This score is 5. 0
. The Utility has not looked at lock-box process.
. Rarely look at or consider various outsourcing alternatives.
Routine Customer Feedback Acquired
Routine Customer Feedback Acquired and Action Taken. Do you ask
for customer feedback and does the enterprise act positively on that
feedback? More effective organizations actively solicit customer
feedback and use it to tune delivery of goods and services.
n~II'
Daily
,II,
'II~
Never
Yearly
This score is 4.67
. The Utility does not conduct eustomer surveys.
. There is no mechanism to receive and act upon customer feedback.
-1>:\5409010 AUGUSTAIREPORT\\S4-CALCULA T\01099B1MGW
4-9
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Non-O&M Cost Saving Results
14 -
29
2 0
"Support"
Work
Practice
Assessment
Score
56 -
70
30. ___49__
55
.,,/'
58%
0%
33
66
100DA.
Lost Productivity
Figure 4-2: A-RUD's Non-O&M Gap Calculation
One way to assess the productivity gap is to estimate the staff level needed
if the gap were closed.
Current Staff:
Total
8
11
28
47
Customer Contact
Billing
Meters
Productivity Loss:
25% x 47 staff x $23,750/yr = $285K/year or 12 staff
EMA has also calculated the non-O&M savings available to A-RUD by the
adoption of certain recommendations, calculated and explained on the
following pages.
-P:\5409010 AUGUSTAIREPORT\IS4-CALCULAT\01099B1MGW
4-10
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Technology as Strategy to Reduce Costs
Year Meters Cost of Meters Cost of Personnel Total Costs New Revenue Net Revenue Cumulative
Meters @ $25 ea. 4 readers @ $95k1yr. 4% Improved Net Revenue
Inflated at 5%/yr. Inflated at 5%/yr. A<xuracy/yr.
1 6000 $150,000.00 $95,000.00 $245,000.00 $114,000.00 -$131,000.00 -$131,000.00
2 12000 $157,500.00 $99,750.00 $257,250.00 $228,000.00 -$29,250.00 -$160,250.00
3 18000 $157,500.00 $104,737.50 $262,237.50 $342,000.00 $79,762.50 -$80,487.50
4 24000 $157,500.00 $109,974.38 $267,474.38 $456,000.00 $188,525.63 $108,038.13
5 30000 $157,500.00 $115,473.09 $272,973.09 $570,000.00 $297,026.91 $405,065.03
6 36000 $157,500.00 $121,246.75 $278,746.75 $684,000.00 $405,253.25 $810,318.28
7 42000 $157,500.00 $127,309.09 $284,809.09 $798,000.00 $513,190.91 $1,323,509.20
8 48000 $157,500.00 $133,674.54 $291,174.54 $912,000.00 $620,825.46 $1,944,334.66
9 54000 $157,500.00 $140,358.27 $297,858.27 $1,026,000.00 $728,141.73 $2,672,4 76.39
10 60000 $157,500.00 $147,376.18 $304,876.18 $1,140,000.00 $835,123.82 $3,507,600.21
11 66000 $157,500.00 $154,744.99 $312,244.99 $1,254,000.00 $941,755.01 $4,449,355.22
Total $1,725,000.00 $1,349,644.78 $3,074,644.78 $7,524,000.00 $4,449,355.22
Net Present Value $2,296,355.48 $4,127,267.34 $2,214,669.41
Costs incrs 5%/yr. Plime rate 8.5% Plime rate 8.5%
Table 4-2: Reduced Costs Over 11 Years
. Calculation Logic: The meter replacement program will improve
revenues by approximately $7,524,000.00 over 11 years, while costing
$3,074,644.78. That is a net difference of $4,449,355.22, or over
$400,000 for each year. For the purposes of this analysis, we have
used the conservative figure of $114,000 per year (the annual increase
in revenues) as gross savings.
. However, since the cash flows are not equal, there will be a net cash
outflow for the first and second years, the program is better viewed
using the Net Present Value concept, or the present value of a future
revenue (cost) stream. The NPV of the income stream is
$4,127,267.34, some $1,830,911.87 greater than the NPV of the costs.
Over 11 years, that is a value of approximately $166,000.00 per year.
. Adding the postal bar eode to the Utility's bills drops the postage from
$.18 to $.159 per item. That anlounts to $7,500 per year, anticipating a
reduction in mailings from 12 to 6. The savings can be achieved with
only a small set up charge, not taken into consideration.
Organization as Strategy
Reorganizing the billing effort can yield substantial savings, $470,000.00
per year. There are two elements to the reorganization: reducing the
frequency of billing from 12 to 6 times per year and outsourcing the
payment processing.
-P\5409010 AUGUST AIREPORT\IS4-CALCULA T\01 0998\MGW
4 - 11
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Action Cost Savings
Reduce billing frequency &
balance meter reading
Cash flow $7,700.00
Postage $60,000.00
Printing 12,000.00
DP Supplies 15,000.00
Meter reading labor 1 165,000.00
Outsource Payment Processing
New Telephone system $225,000.00
Processing set up 59,000.00
Cashier labor savings2 $213,000.00
Armored car 5,000.00
Total $291,700.00 $470,000.00
Table 4-3: Organization as Strategy Calculation
Summary of Non O&M Gross Savings
Technology As Strategy $121,500.00
Meter Replacement $114,000.00
Postal Bar Code $7,500.00
Organization As Strategy $470,000.00
Total $591,500.00
Table 4-4: Non O&M Gross Savings
1 Based on 14 positions at $19,000 each plus 25% overhead.
2 Based on 9 positions at $19,000 each plus 25% overhead.
-P\5409010 AUGUST AIREPORT\IS4-CALCULA T\01 0998\MGW 4 - 12
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Lost Productivity for O&M - Water Treatment Plant
Total Productive Operations
16
Number of
Day Shift O&M FTEs
x
60%
Percentage Lost
=
9
Lost Productivity
Percentage Lost =
No Maintenance - 60%
PM - 50%
Light Maintenance - 40%
. Calculation Logic: On the day shift and weekends, A-RUD currently
employees 14 operators and maintenance staff in three locations and
two assistant superintendents for a total complement of 16 FTEs.
Currently, the operators perform no maintenance duties. Although a
straight calculation indicates as much as a 60% improvement in
productivity is possible, we think only a 40% gain is practical.
. Applying TPO principals, A-RUD would employ only 10 O&M
Technicians for all locations distributed as follows: f our at SWTP,
four at RWPS, and two at GWTPs. This is a savings of six FTEs
calculated at $27,000 per year, fully loaded, or $162,000.00.
Unattended in Off-Shifts
16
Total People
In Off-Shifts
At All Locations
8
Minimum Off-
Shift Staff
=
8
Lost Productivity
. Calculation Logic: Currently, there are 16 off-shift operators at the
three facilities with little or no automation and communication among
them. With the automation of the facilities, staffing can be cut to one
person per shift per location for a total of seven. This is a savings of
eight FTEs at $27,000 per year which amounts to $216,000.00.
-PI5409010 AUGUST AIREPORT\IS4-cALCULAT\01 D9981MGW
4 - 13
EMA Services, Inc.
I
I
I
Program Driven Maintenance
6
x
40%
Percentage Lost
=
2
I
Total Number of
Maintenance Staff
Lost Productivity
I
I
Planned: <20% = 40% Percentage
20-40% = 30% Lost:
40-60% = 20%
60-80% = 10%
80%> = 0%
I
I
. Calculation Logic: The three water treatment facilities employee six
personnel in maintenance positions. Improving the ratio of planned to
reactive maintenance from its current level to 75% planned, will
improve productivity by 40%. That amounts to two FTEs at $27,000
per year, or $54,000.00
I
I
Work Force Flexibility
I
20
Number of
Operators, Maintenance &
Supervisors Left After
The first 2 steps
x
30%
Percentage Lost
for Inflexibility
=
6
Lost Productivity
I
I
I
Totally Inflexible = 30%
Very Flexible = 0%
I
I
I
I
I
-P\5409010 AUGUST AIREPORT\IS4-CALcULA T\01 0998\MGW
4 - 14
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Calculation Logic: A-RUD's workforce is quite inflexible. By cross
training all treatment personnel, establishing bonus programs, salary
incentives, and improved working conditions, productivity gains of up to
30% are possible. Savings are six FTEs at $27,000.00 per year, totaling
$162,000.00
Technology as Strategy to Reduce Costs
$ 470K X 20% - $ 94/000
Current $ Savings in Chemical $
$tOaOK X 20% - $ 2 t 6/000
Current $ Savings in Power $
. Calculation Logic: Applying automation to WTP operations typically
enables utilities to reduce chemical costs, the amount depending on
how chemical-intensive their operations are. Power costs also can be
reduced. These dollar figures reflect "budgeted" amounts for the entire
A-RUD operations and maintenance.
Implementing chemical feed systems FF /FB control at all plants will
save 20% of current expenditures. These chemical feed savings
estimates are based on an empirical relationship between the amount
spent on chemicals and the amount of closed-loop chemical feed
control. The basis for this relationship lies in the realization that,
without closed-loop control, operators tend to overfeed chemicals to be
on the safe side of operations. In the case of A-RUD, only the alum
system at the surface water plant was automated. Chlorine, fluoride
and eorrosion eontrol ehemieals at that plant and all chemicals at the
ground water treatment plant were not fully automated. As a result,
operators must test for chemical residuals or other parameters to
determine proper dosages. These tests are conducted periodically.
Between tests, raw water quality and flow rate can change. To guard
against producing water that does not meet standards or is a health
threat when these changes occur, operators typically set the dosages
higher than tests indicate. These overages are completely eliminated
when closed-loop controls are installed. A secondary source of
savings is that, when residuals or other parameters are measured
online, the differences between individual operator testing procedures
is eliminated. This also saves chemical costs by taking the various
-P\540901D AUGUST AIREPORT\IS4-cALcULA T\010998IMGW
4 - 15
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
levels of conservative operations approaches of the individual
operators out of the loop.
. Implementing new energy technology, time of day scheduling and
other features available form Georgia Power will yield a 20% cut in
energy costs.
Organization as Strategy
6:38
Current Span of
Control
=
3:38
Recommended Span of
Control
=
3
Lost Productivity
Example: 40 Supervisors = 1
160 Total Staff 4
1 = 16
10 160
40 - 16 = 24
. Calculation Logic: EMA counted six supervisory positions in the
water treatment plant. That represents a span of control of, roughly,
six employees per supervisor. Expanding the span of control to 10
employees, still fairly modest by the goal of 15 or 16 set by some
utilities, will yield a savings of three positions. This flattening of the
organization should be accompanied by an evaluation of conducting
non-core business, such as grounds keeping. The sum of the savings is
one FTE at $27,000 per year plus approximately $50,000.00 derived
from flattening the organization: estimated at $75,000.00.
-P\5409010 AUGUST AIREPORT\IS4-cALcULA T\01 0998\MGW
4 - 16
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Summary of Water Treatment Gross O&M Savings
Total Productive Operations $162,000.00
Unattended Operations 216,000.00
Program Driven Maintenance 54,000.00
Work Force Flexibility 162,000.00
Technology As Strategy 310,000.00
Chemical Savings $94,000.00
Electrical Savings 216,000.00
Organization As Strategy 75,000.00
TOTAL $979,000.00
Table 4-5: Water Treatment Gross O&M Savings
Lost Productivity for O&M - Wastewater Treatment
Program Driven Maintenance
15
x
40%
Percentage Lost
=
6
Lost Productivity
Total Number of
Maintenance Staff
Planned: <20% = 40% Percentage
20-40% = 30% Lost:
40-60% = 20%
60-80% = 10%
80%> = 0%
. Calculation Logic: The waste water treatment facility employs 15
personnel in maintenance positions. Improving the ratio of planned to
reactive maintenance from its current level to 75% planned, will
improve productivity by 40%. That amounts to six FTEs at $27,000
per year, or $162,000.00
-P:\540901D AUGUST AIREPORT\IS4-CALCULA T\010998\MGW
4 -17
, EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Work Force Flexibility
20
Number of
Operators, Maintenance &
Supervisors Left After
The first step
x
20%
Percentage Lost
for Inflexibility
=
4
Lost Productivity
Totally Inflexible = 20%
Very Flexible = 0%
Calculation Logic: A-RUD's workforce is quite inflexible. By cross
training all treatment personnel, establishing bonus programs, salary
incentives, and improved working conditions, productivity gains of up to
20% are possible. This amounts to four FTEs at $27,000.00 per year, or
$108,000.00.
Technology as Strategy
Calculation Logic: EMA has included an energy analysis in this
assessment. The report can be found in the Appendix. Placing Time of
Use Riders on major meters rate schedules and scheduling an Energy
Audit by Georgia Power will result in a 15% savings from the current
annual cost.
The following graphs depict current energy usage at the Wastewater
facility during 1996 and projected for 1997. The subsequent years
illustrate the implementation of an aggressive Energy Audit and
Conservation Plan which could yield an annual savings of 15% over the
next three years. The amount of these savings exceeds $300,000. Neither
the consolidation of treatment into one process train nor the
decommissioning of the centrifuge were used for these projections.
-PI5409010 AUGUST AIREPORT\IS4-CALCULA T\01 0998\MGW
4 - 18
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Wastewater Energy Savings Opportunities
900
823---833------------ ----- ---..-.- 140
_$$IYEAR
708 -..-SAVINGS
120
800
Ul
100 g'
'>
..
80 III
ii
;:,
60 c
~
40 :::
Ul
b
20 g
iii 700
<3 600
ii
E 500
~
: 400
Ul
g 300
o
~ 200
100
o
o
-20
Current
1997
1998
1999
2000
Figure 4-3: Wastewater Energy Savings Opportunities
The annual energy savings and the estimated reduction of chemical costs of
$250,000 are based on the assumption that the digesters have been
rehabilitated, the centrifuges shut down and the thickening process
optimized to drastically reduce the consumption ofpolyrner.
Organization as Strategy
The Utility should evaluate the contracting out of non-core business
activities. Specifically, EMA is referring to a grounds keeping position and
four sludge hauling positions. If the sludge hauling were contracted out,
the Utility would also save the operating costs of four trucks.
. Calculation Logic: The grounds keeping position would save
$24,500.00, the four sludge hauling positions would save $98,000.00,
and the savings from truck operations are based on $.50 per mile over
50,000 miles per year, or$100,000.00. The total savings available from
using organization as strategy amount to $222,500.00 per year. (I'he
Utility has indicated that all 11 positions in the sludge handling area
could be outsourced. EMA agrees that is likely but in the case of this
analysis is absolutely certain only of the recommendations noted
above.)
-P:I5409010 AUGUSTAIREPORnIS4-CALCULATI01099B\MGW
4 -19
EMA Services. Inc.
J
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Summary of Wastewater Treatment Gross O&M Savings
Program Driven Maintenance $162,000.00
Work Force Flexibility 108,000.00
Technology As Strategy 250,000.00
Organization As Strategy 222,500.00
TOTAL $742,500.00
Table 4-6: Wastewater Treatment Gross O&M Savings
Lost Productivity for O&M - Construction & Maintenance
Total Productive Operations
. Calculation Logic: Currently, the Utility monitors and controls more
than 40 facilities on its existing SCADA system. The Utility
employees five control room operators to perform this function, one
assigned to the day shift.
. By adding the remaining sites to the SCADA system, optimizing the
automatic control functions at all sites, and connecting the existing
SCADA to the plant control systems, the SCADA system can be run
from the plants eliminating the need for the day shift operator. The
savings is one FTE at $27,000 per year.
Unattended in Off-Shifts
4
Total People
In Off-Shifts
At All Locations
o
Minimum Off-
Shift Staff
=
4
Lost Productivity
. Calculation Logic: By adding the remammg sites to the SCADA
system, optimizing the automatic control functions at all sites, and
connecting the existing SCADA to the plant control systems, the
SCADA system can be run from the plants. The savings is four FTEs
at $27,000 per year, or $108,000.00.
-P:\5409010 AUGUST AIREPOR1\IS4-CALcULA 1\010998\MGW
4 - 20
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Program Driven Maintenance
48
x
20%
Percentage Lost
=
9
Lost Productivity
Total Number of
Maintenance Staff
Planned: <20% = 40% Percentage
20-40% = 30% Lost:
40-60% = 20%
60-80% = 10%
80%> = 0%
. Calculation Logic: There are 48 FTEs engaged in maintenance
activities in A-RUD's Construction & Maintenance group. The
maintenance work is mostly reactive and an improvement in the
proportion of planned maintenance will yield a 20% productivity
gain. The gain is translated into a savings of nine FTEs at $27,000
per year, for a total of $243,000.00.
Work Force Flexibility
42
Number of
Operators, Maintenance &
Supervisors Left After
The first 2 steps
x
15%
Percentage Lost
for Inflexibility
=
6
Lost Productivity
Totally Inflexible = 30%
Very Flexible = 0%
Calculation Logic: A-RUD's workforce is quite inflexible. By cross
training all C&M personnel, establishing bonus programs, salary
incentives, and improved working conditions, productivity gains of up to
15% are possible. Productivity gains are smaller than for the treatment
plants. Contracting out for some of the C&M functions could increase the
gains. Savings are six FTEs at $27,000.00 per year, totaling $162,000.00.
-P\5409010 AUGUST AIREPOR1\\S4-CALcULA 1\010998\MGW
4 - 21
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Organization as Strategy
13:39
=
3:39
=
10
Lost Productivity
Current Span of
Control
Recommended Span of
Control
Example: 40 Supervisors = 1
160 Total Staff 4
1 = 16
10 160
40 - 16 = 24
. Calculation Logic: EMA counted 13 supervisory positIons in
Construction and Maintenance. That represents a span of control of,
roughly, three employees per supervisor. Expanding the span of
control to 10 employees, still fairly modest by the goal of 15 or 16 set
by some utilities, will yield a savings of 10 positions. This flattening
of the organization should be accompanied by a reorganization and the
formation of three additional crews. The sum of the savings is 10
FTEs at $27,000 per year plus approximately $30,000.00 derived from
flattening the organization: $300,000.00.
Summary of Construction and Maintenance Gross O&M
Savings
Total Productive Operations $27,000.00
Unattended (Off-shift) 108,000.00
Program Driven Maintenance 243,000.00
Work Force Flexibility 162,000.00
Organization As Strategy 300,000.00
TOTAL $840,000.00
Table 4-7: Construction and Maintenance Gross O&M Savings
-PI5409010 AUGUST AIREPOR1\IS4-CALcULA TI01 0998\MGW
4 - 22
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
The Competitive GAP: Summary of Gross Savings
Paradigm NOD O&M WTP WWTP C&M Total
Total Productive Operations 162,000 27,000 189,000
Unattended Operation 216,000 108,000 324,000
Planned YS. Reactive 54,000 162,000 243,000 459,000
Work Force Flexibility 162,000 108,000 162,000 432,000
Technology as Strategy 121,000 310,000 250,000 681,000
Organization as Strategy 470,000 75,000 222,500 300,000 1,067,500
TOTAL $591,000 $979,000 $742,500 $840,000 $3,152,500
Table 4-8: Competitive Gap Summary
-P\5409010 AUGUST AIREPOR1\IS4-cALcULA 1\01 0998\MGW 4 - 23
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Section 5 - Recommendations
Recommendations Have Three Focus Areas
. Business Practices
. Use of Technology
. Skill and Compensation Levels
Thesis
Business
Practices
Skills &
Compensation
Technology
Master Plan
Water
Wastewater
Customer
Service
Construct.
& Eng.
Addressing the Business Practice Issues Will Foster a
Culture of Competitiveness Awareness
The business practice issues for immediate attention include: defining a
future vision, establishing performance based metrics, involving managers
in budget preparation, developing a program-driven maintenance system,
and redesigning Customer Service functions.
-P:\5409010 AUGUSTAIREPORnIS5-RECOMI01099B\MGW
5 -1
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
There could hardly be a better time for A-RUD to embark upon an
exercise to establish a Vision and Mission statement for the newly
eombined Department. The staff sense that there is a wonderful
opportunity for the Utility in the merger and are willing and excited about
the prospects. Unifying the Department under a new philosophy will
encourage the adoption of a business-wide view among the employees and
help the Utility forge an agreement with its customers.
The new sense of purpose will assist in the development of performance
measures agreed upon by all. Such measures tend to improve performance
in the direction favored by the Utility, rather than in some arbitrary
manner. Developing performance measures with and for customers also
improves the Utility's competitiveness.
Developing a heightened sense of the organization is enhanced when all
levels of management participate in budget preparation and are
accountable for budget performance. Employees in charge of various
functions will have a much higher level of commitment when they are
involved in the budgeting process.
A programmatic approach to maintenance dramatically alters how the
Utility's assets are cared for and operated. Program driven maintenance
consists of repetitive maintenance activities triggered by some measured
frequency, condition, or upon demand. The approach avoids reactive,
breakdown maintenance in favor of one based on cost effectiveness and
critical need.
Implementation of Technological Solutions Will Improve
the Bottom Line
There are well founded and reliable technological solutions available to
the Utility. These solutions are particularly useful for the treatment plants,
all maintenance activities, and in the Customer Service area:
. The introduction of a process control system at the treatment plants
will reduce both operations and maintenance costs. The current level
of process control equipment is lower than average for the size of the
Utility and the need is well recognized.
. The introduction of a Computerized Maintenance Management System
(CMMS) will improve resource allocation, reduce parts inventory,
improve decision making, and improve equipment performance.
Coupled with altered maintenance practices, as noted above, the
potential savings are noteworthy.
-P:\5409010 AUGUST AIREPOR1\IS5-RECOMID10998\MGW
5-2
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
. The current situation, separate and unconnected billing and customer
systems, requires the Utility to staff more locations with more people
than would be the case using a single system. The benefit to the Utility
will be even greater if a new system were chosen after the current work
practices had been reviewed and improved.
The Skills (and Consequently) Compensation Levels Will
Require Upgrading to Support the New Practices
The new technology and business practices recommended in this report
require a different set of skills than the Utility has available. Training
programs and compensation levels must be improved to reflect the new
responsibilities and accountabilities. Retaining the best of the Utility's
staff and attracting useful additions, rather than municipal parity, becomes
the new focus:
. The Utility must complete an inventory of the skills currently available
among its employees. An assessment of the amount of work
demanding these skills together with the demand for new skills will
assist in discovering the training required and the existing skills gap.
. Salaries should be "broad-banded" as a means of lessening the impact
of bureaucracy and mitigating conflict with the municipality. "Broad-
banding" and cross training will help to integrate the former County
and City staffs into the new Department.
. A general improvement in skills leads to jobs of greater value and
more satisfied employees. Job satisfaction cannot replace the
economic requirement for work, but it can greatly improve the
expenence.
Recommendations
1. Strategic Business Plan
The process begins by creating the road map to facilitate moving from the
current to the desired position, the Business Plan. As with the road map,
the Business Plan serves as a guide. A-RUD will have a clear idea of its
current position relative to its desired one and an appreciation for the many
possible routes between the two. The purpose of the plan is to pick the
most likely route while remaining open to changes, so long as the target is
kept in mind.
-P:\54D901D AUGUST AIREPOR1\IS5-REcOMI010998\MGW
5-3
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
. Defining the Vision and Mission is similar to defining the destination.
It is what is kept in front of the Utility and its employees as the plan is
implemented over time.
. Once the destination is decided, the Utility will have to develop
projects designed to move the Utility in the desired direction. As there
are many ways to achieve such a result, each project should have a cost
to benefit analysis to enable comparison.
. A by-pro duet of developing the necessary project will be the
identification of quick wins. That is, those changes discovered during
the process which will yield immediate alteration of practices without
training or large capital expenditures.
. The next step in the Business Plan process is to establish priorities
among the projects identified. The cost to benefit analysis for each
project is useful in this work but not definitive.
. Finally, the steps necessary to implement each project in turn are
identified.
Reengineering is a Six Step Process
Step 6
Figure 5-1: Steps to Reengineering
-P:\5409010 AUGUSTAIREPOR1\\S5-RECOMI010998\MGW
5-4
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Recommendations for Implementing the Strategic Business Plan
. Establish Vision and Mission Statements for the future and a staged,
multi-year plan for achieving both.
. Develop an Information and Automation Systems Master Plan based
on competitive business strategies. Such a plan should include:
organizational, training, and technological aspects, as well as the
plan's approach, schedule, costs, and benefits.
. Apply "Best Practices" to the Utility's O&M functions. Move toward
an integrated operations and maintenance group, featuring work force
flexibility and program driven maintenance. This also includes
sufficient plant automation to enable unattended operation.
. Develop a new compensation matrix and training program to support
the "Best Practices" and properly compensate the Utility's employees.
2. Water and Wastewater Treatment
Water
Water
Automate GWTPs
Monitor from SWTPs
Install Instrumentation @ SWTPs
Local Control Panels
Install Monitoring Level PCS
Install SWTP Automation System
Train
Instrument Techs
Implement TPO Concepts
Develop Teams
WFF/SBC
Implementation Plan for Water Projects
EMA recommends improving the process control and SCADA systems,
cross training, and increasing the supervisory span of control to operate the
water treatment plant with as few as 15 persons. In order to achieve this
goal, all of the elements noted above will have to be planned and executed.
Wastewater
The EMA recommendations for plant automation, staff cross training, and
increasing the supervisory span of control at the wastewater facility can
occur along with the same activity at the water treatment facilities. Some
-P\5409010 AUGUST AIREPOR1\IS5-REcOMI01 0998\MGW
5-5
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
of the specific recommendations, i.e., shutting down the North Plant,
reducing the use of polymer, would be more thoroughly investigated
during this process.
3. Construction and Maintenance
Construction & Maintenance
ReengineerlPilot
Design CMMS
Integration
Upgrade SCADA
Reengineer C&M (training)
Implementation Plan for Construction & Maintenance Projects
Upgrading the SCADA system and connecting it to the plant control
system removes all monitoring responsibilities from this group.
Implementing a CMMS and increasing the supervisory span of control
also frees resources which might be used to increase the amount of
extensions accomplished by the Utility.
4. Customer Service
Customer Service/Meters
Project Initiation -
Develop CIS Vision -
CS Process Analysis
Initial CIS Requirements/RFI
Vendor Demos -
Revise Requirements/Evai. Criteria -
Support Requirements
Vendor Selection -
Implementation Plan . -
1m plementation/Conversion
Implementation Plan for Customer Service Projects
The steps noted above are the ideal method by which to redefine A-RUD's
business practices and purchase and install a new customer information
system. Along the way, the recommended alterations in payment
processing and meter reading could be accommodated. EMA understands
that the Utility is not the full master of its fate in this instance. The new
municipal government has declared a new CIS a priority and A-RUD may
not be given the time for full reflection. In any event, the six step planning
process model noted above should be employed to facilitate the
recommended changes in business practices.
-P\540901D AUGUST AIREPOR1\IS5-RECOMI01 0998\MGW
5-6
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Agpendix A
Assessment
Presentation
-P:\5409010 AUGUSTMPXA\122297\AlO
EMA Services, Inc.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Augusta-Richmond
Utilities Department
Competitiveness Assessment
Results Presentation
and Workshop
II ::~~__ August 12, 1997
Introduction
e Purpose of assessment
e EMA's Qualifications
e Explanation of terms
e How was data gathered
for Augusta?
........Alc::hmCMtd'---
No.1: From Os:M to Total
Productive Operations
. No people waiting and watching for failure
. All doing planned maintenance work
. Specialist imported only when needed
. Knowledge workers only need apply
Agenda
e Introduction
e Observations
e Savings Opportunities
e Recommendations
e A Glimpse into the Future
e Discussion
~lMIIeo
Assessment Compares Augusta
Against Six Strategies
Attended FaclUtles
. Unattended Facilities
Wor1l Separated by C,aftlSk,'i
(SILOS)
. Work Fon:e Flexibility &
Cross-functional Teamwor1<
Technology
Organization as Structure
. Teehnology.. Strategy
. Organization as Strategy
No.2: From Reactive to
Planned Maintenance
11 'vq,
~ ~0_
~.~ ~/
~ "",- //
01,.."'" /' /
-'f)ce ~"~.;~ .-
" <":}<,:~"'.)-.,,
Plu(,(rd \'-.'><^>~- ,..-' ,,-
1
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
No.3: From Attended
Facilities to Unattendedness
Decision to Attend a Facility
I-
Two People on Shift for Safety
I- ThI'H Nonnal ShlftaJDay Plus One for
VacatlonIHolklaylSlck
l-
I-
Eight People Per
Attended Fecllity
Coat $300K to $5OOK
No.5: Technology as
Strategy
Technology
.s Strategy
Reinforces
New Practices
No.6: From Organization as
Control to Org. as Strategy
Span of Control
~.' 04..-.\.'\,
, I
No.4: From Work Separated
by Craft to Work Force
Flexibility
Bulk of employees
in "Sweet spor'
No.6: Organization as
Strategy
Organization Silos
Observations
. Utility-wide
. Water: Treatment, Maintenance
. Construction & Maintenance
. Engineering Services
. Wastewater: Treatment,
Maintenance, Sludge Hauling
. Customer Service: Cust. Contact
Billing, Meters '
~mondu..
2
I
I
I
Observations:
Utility-wide
I
. Recent, unique business mission: merged
utilities
. Well managed during and after merger
. Functional areas still divided along
City/County lines
. Poor salarylbenefit package, differences
divide organization
. Little use of technology exists throughout the
organization
I
I
~UlIIlI..
I
I
Observations:
Utility-wide
I
. A "Class & Compensation" study has been
conducted
. Former City utility staff make less than former
County utility staff
. Effects of study on organization unclear
. Average compensation levels seem low
. "Business" perspective not wide-spread.
Cost impacts not recognized
I
I
I
~UlIIlIoo
I
I
Observations:
Water Treatment
I
. Includes surface water filter plants, ground
water plants, and raw water pumping station
. All three sections provide 24-hour per day
coverage
. Most operational tasks performed manually
. Except for alum, surface water filter plant
chemicals are controlled manually
. Ground water plant chemicals start/stop
automatically but require manual adjustment
qlllloAldlmooldUllllloo
I
I
I
I
Observations:
Utility-wide
. Most functions are labor-intensive
. Treatment facilities show lack of recent
capital investment
. Employees are dedicated and committed to
public service
. Some nervous people (morale low in some
areas)
. Financial condition is sound and no major
change is anticipated
. A high level of overtime is expended
~lMIieo
Observations:
Utility-wide
. Function-based budget instead of activity-
based makes costs difficult to analyze
. GIS being developed
. Utility has healthy financial future
. Costs are divided as: Admin. 18%, CS 11 %,
Wastewater Treatment 30%, Constr. & Mainl
18%, Water Production 22%
. VINIITP staff produce monthly spreadsheets -
data source and formulas unidentified
~lMIieo
Observations:
Water Treatment
. Ground water plants cycle frequently
. Raw water pump station and canal operations
are performed manually
. O&M - Two distinct groups at filter plant (no
WFF), operations staff do some maintenance
tasks at ground water plants and raw water
pump station
. Surface production is hydraulically limited
Auguoto-RIchmond lMIieo
3
I
I
I
Observations:
Water Treatment
I
. Filter plant staffs two operators/shift for safety
and to perform some manual operations tasks
that require two staff
. On-line monitoring and control is virtually non-
existent at the filter plant
. Operators make frequent, regularly scheduled
rounds to check equipment and record data
manually
I
I
~UIIw.
I
I
Observations:
Construction & Maintenance
(Indudes Distribution" CoIledIon)
. Same staff perform collection and distribution
system maintenance
. Maintenance is mostly reactive
. Crew sizes are typically 3 - 4 staff
. Maintenance staff work days, operations staff
provide 24hr/day coverage at control room
. New SCADA system connects approximately
40 formerty-county sites
I
I
I
I
~d~
I
I
Observations:
Engineering Services
I
. Provide engineering and inspection support to
utility
. This is a newly-formed section, not yet fully
staffed
. No access to GIS, no AutoCAD or hydraulic
model
I
I
AlIglI. R1c1,,,olld ~
I
I
Observations:
Water Plant Maintenance
. O&M - Two distinct groups at filter plant (no
WFF), operations staff do some maintenance
tasks at ground water plants and raw water
pump station
. Maintenance is reactive at the filter plant
. Inventory approx. $400,000
~lMIeo
Observations:
Construction & Maintenance
. Little cross-training occurs now but is planned
for heavy equipment, vacuum truck, and rod
truck operators in the future
. Crews meet daily at two locations to receive
work assignments
. There is a significant backlog of maintenance
work
. Inventory maintained approx. $500,000
~lMIeo
Observations:
Wastewater Treatment
. North plant is older and designed for 17 mgd
. South plant designed for 28 mgd
. Grit/screenings = 40 yards per week, no
metries for grit removal rates
. Staffed 24 hrs per day, 7 days per week by 2
operators and shift supervisor for 12-hr shifts
. Raw water lift station has 4 300hp pumps
. Influent station unsafe, will get complete
renovation this year
~UtIIIeo
4
I
I
I
Observations:
Wastewater Treatment
I
. North plant darifiers transfer RASNoJAS
through draft tubes into common transfer line.
Differential head pressures cause problems
with flow from North
. Raw sludge pumping is on timed basis, not
calculated
. WAS routed to gravity belt thickeners to
digesters, no transfer between primaries and
secondaries (foaming), no pearth mixers, no
volatile solids reduction
I
I
~mondu...
I
I
Observations:
Wastewater Treatment
I
. Operators must visually inspect every 2 hours
. No signs of "team. activities
. Fluctuating influent quality
. Minimal use of automated systems (SCADA
installation in lift stations scheduled)
. lack of Best Practices process control
measures
. WNTP staff produce monthly spreadsheets -
data source and fonnulas unidentified
AlIgl_ Rk:hmoIKI UMeI
I
I
I
I
I
Observations:
Wastewater Maintenance
I
. Very little planned PM
. Evidence points to a lack of planning or
prioritization
. Manual PM system is incomplete and does
not adequately track perfonnance
measurements
. Predictive maintenance is not practiced
. Maintenance staff morale is low
I
I
....-.- \MlIoo
I
I
Observations:
Wastewater Treatment
. lack of housekeeping and maintenance
. Excessive O&M staff
. Operators required to manually adjusVstartlstop
equipment
. Automatic polymer chemical feed equipment is
located on solids dewatering
. Main control panels in process units do not
function by remote operation
~mondlMtl_
Observations:
Wastewater Treatment
. Flow split between plants is manual
. local dissolved oxygen meters o/s
. DO reading taken manually in each basin
effluent 6 times per day
. Operators must manually operate traveling
bar screens - so they are left on continuously
. Process control (WAS/RAS rates, digester
loadings, centrifuge operation) is based on
"what has worked in the pasr
",,-,-\MlIoo
Observations:
Wastewater Maintenance
. Equipment maintenance tracked with old card
system, separate PM (preventive maint.)
cards are kept for each piece of equipment
. No predictive maintenance. PM is based on
manufacturer recommendations. Blower oil
analysis outsourced
. Staff = 9 + 1 foreman. Salaries seem low
. lift stations maintained by 1 employee (10-12
per day)
....101- Rk:hmoIKlUIiIIeIl
5
I
I
I
Observations:
Wastewater Maintenance
I
. Staff takes advantage of sick time policy,
causes foreman planning problems
. Most work is reactive, no data to support
. Work orders are multi-part paper fonns, no
fonnal perfonnance measurements are kept
. Maintains inventory approx. $180,000
I
I
A&IguoIa-RIcIvn UUeo
I
I
Observations:
Customer Service
. Despite merger, different billing systems do not
allow consolidated CS functions
. Not much technology is invested in CS
. Desire to perfonn excellent CS, but lack of
respect for customers exists
. Training on many levels is lacking
. Telephone communication among the 3 CS
locations should be easier
. CS operations are labor intensive and
conservative
I
I
I
I
A&IguoIa-RIcIvn UMeo
I
I
Observations:
Cust. Service - Billing
I
. Billing is mainly manual process with
computer assistance in bill printing and
account posting
. 22% of CS personnel are devoted to billing,
induding processing incoming payments.
Customer contact personnel and mgrs
supplement this total during busy periods
. Work load erratic due to meter reading cydes
with varying numbers of meters
I
I
A&IguoIa-RIcIvn UMeo
I
I
Observations:
Sludge Hauling
. Poor perfonnance of dewatering system
. Poor job practices of truck drivers - abuse of
overtime, slow work, unauthorized time off
. Low pay may affect poor job habits
. Metrics have been established by mgr. of
hauling crew
. Sludge is 4.5 - 5% solids, 7% could be spread
satisfactorily
. Significant amount of data is reported to the
EPA and state agencies
~lMIoo
Observations:
Cust. Service - Cust. Contact
. Customer contact personnel amount to only
16% of the employees in CS
. No call management system to assist in
staffing levels and scheduling
. No training in customer contact techniques
and no feed back mechanisms from
customers to assist staff
. Some internal training in handling billing
inquiries but not for water quality questions
___lMIoo
Observations:
Cust. Service - Billing
. Substantial duplication of effort and much
manual work could be automated or
outsourced
. Customers do not have alternative payment
locations or methods
~_ I'IdwnoIwt.....
6
I
I
I
I
I
Observations:
Meters
. Meter readers and repairers are 56% of CS
personnel. Of 28 in meters,16 are readers,
the rest are in repairs and turn on/off activities
. Average work load for meter reader is approx.
175 per day, given even cycles. In contrast, a
good working average is 350 per day
. Meters average 15+ years. Experience
indicates such meters are about 95% efficient
. Merger is opportunity to redesign meter
reading routes and frequency of reads
~UMos
I
I
I
I
I
· Meters 48
. Customer
Service 44
Non O&M Group
Competitiveness Model
I
I
I
I
Savings
Opportunities
I
I
I
I
I
~ RIdmotNlu..
Non O&M Group
Competitiveness Model
. Meters 52
· Customer
Service 49
Non O&M Group
Competitiveness Model
. Meters 48
· Customer
Service 45
Opportunities:
Water Treatment
#1 O&M to TPO
. Current - 7 operators among 3 locations, 2
assl superintendents, 7 mainl staff (incl.
janitorial and lab tech) = 16 total FTEs
. Future -10 O&M techs. for all locations, all
staff doing O&M, only supts. for each facility,
O&M techs. are paged if alarm occurs, staff
distribution = 4 at SWTP, 4 at RWPS, 2 at
GWTPs, facilities automated
Savings = 6 FTEs x $27K = $162K per year
~UIneo
7
I
I
I
Opportunities:
Water Treatment
I
#2 Reactive to Planned Maintenance
. O&M staff on days = 10 from strategy #1,
savings = 20% opportunity if PM/CM ratio
improved to 75%/25%, 20% = 2 FTEs
I
I
Savings = 2 FTEs x $27K = $54K per year
~UMeo
I
I
Opportunities:
Water Treatment
I
#4 Work Force Flexibility
. Improve culture and morale
. Establish gain sharing with bonus fund =
saved sick leave $
. Apply salary increase for certifications, shift
differential, etc.
. Bonus for perfonnance
. Cross-train to eliminate O&M silos
I
I
I
AJ9IIta RldwnCNld u...
I
I
Opportunities:
Water Treatment
I
#5 Technology as Strategy
. Investigate/implement chemical feed systems
FFIFB control at all plants, savings of 20% =
$94K per year
. Investigate/implement new/emerging
technology elee. equip., time-of-clay
scheduling, energy audit Savings of 20% =
$216K per year
Savings = $310K per year
I
I
~ AlotlmooldUMeo
I
I
Opportunities:
Water Treatment
#3 Attended to Unattended (off-shift ops)
. Current - 16 off-shift operators at 3 locations,
little or no automationlcomm. among facilities
. Future - 7 off-shift operators (1 per shift at
SWTP and GWTPs and RWPS), all facilities
automated
Savings = 9 FTEs x $27K = $243K per year
"Ill'ooto_ld~
Opportunities:
Water Treatment
#4 Work Force Flexibility continued
. Cross-train between SWTP, GWTPs, and raw
water pumping stations
Savings · 6 FTEs x S27K per year. +/- S162K per year
through productivity Increases gained from
cross-tralned work force
....Igl.. RldHnoIMi......
Opportunities:
Water Treatment
#6 Organization as Strategy
. Evaluate contracting out of non-core business
areas
. Groundskeeping saves 1 staff = $27K
. Flatten organization as WFF is implemented,
savings of $50-75K per year
Savings = $75-100K per year
~~
8
I
I
I
Opportunities:
Construction & Maintenance
I
#1 O&M to TPO (day shift ops)
. Current - 1 control room operator, monitors
and controls 40+ facilities on existing SCADA
. Future - Add remaining sites to SCADA,
optimize automatic control at all sites,
connect SCADA system to plant control
systems and run SCADA from plants, no
operator required
Savings = 1 FTE x $27K per year
~mond~
I
I
I
I
Opportunities:
Construction & Maintenance
I
#3 Attended to Unattended (off-shift ops)
. Current - 4 control room operators (monitor
and control 40+ sites on existing SCADA)
. Future - Connect SCADA to plant control
systems and run SCADA from plants, no
operators required
I
I
Savings" 4 FTEs x $27K .. $108K per year
&.1QU8tI RktamoIKI.....
I
I
I
Opportunities:
Construction & Maintenance
#5 Technology as Strategy
. Investigate/implement a CMMS to support
reengineered flexible work force, savings
result from best practices (WFF & PM) made
possible with CMMS
. Integrate CMMS with automation systems to
optimize maintenance planning, savings
result from optimum stocking and unit equip.
maint. frequency
Total savings $ are not measureable now
~~
I
I
I
I
I
Opportunities:
Construction & Maintenance
#2 Reactive to Planned Maintenance
. Current - 38 c&M staff (3-4) per crew, 2
vacuum truck, 3 rod truck, 3 heavy equip, 2
well = 48 FTEs total
. Maintenance is primarily reactive
. Future - PM/CM ratio at 75%/25% = 20%
opportunity, 20% = 9 FTEs
Savings = 9 FTEs x $27K per year
= $243K per year
~lMtIoa
Opportunities:
Construction & Maintenance
#4 Work Force Flexibility
. Improve culture and morale
. Establish gain sharing with bonus fund = saved sick
leave $
. Apply salary increase for certifications, shift
differential, ete.
. Bonus for performance
. As planned, cross-train equipment operators
Savings. 6 FTEs x $27K per year. +/- $162K per year
through productivity Increases gained from
cross-tralned work force
i\ugl.. _lei lMtIoa
Opportunities:
Construction & Maintenance
#6 Organization as Strategy
. Current - 49 staff (+10 non C&M positions), of
these 49,10 working supervisors, 3 non
working
. Future - move to 16:1 span of control,
reorganize, reduce supervisors/planners =
make 3 more crews
Savings due to productivity improvement =
10 x $30K = $300K per year
i\ugl.. _lei lMtIoa
9
I
I
I
Opportunities:
Engineering Services
I
The 4 O&M strategies don't work well in an
engineering setting. Rather, it's best to apply
the non-O&M tests
I
1. SerI.. w<<k practices: 3
2. Cross-funcllon" teams: 3
3. Duplication of eI'fort: 3
4. U.. of lKhnoIogy: 1 or 5
5. TOfHIown culture: 3
I. SpecIalty IUOS prev"l: 5
7. CrosHnIInlng: 5
e. Intlexlbl.~: 3
II. Old pollclls & proc:Id.: 4
10. Cultunlllmpllwlmlnta: 4
11. QuIIIty of procIuclI: 3
12. IIIgmt of IOId, 1<<YIce: 3
13. Outsourc:. atratIgy: 3
14. CuatomIr fIeclbIlc:k: 4
I
51 points total
"'1Ql1Ita Richmond lMIeI
I
I
Opportunities:
Engineering Services
I
#5 Technology as Strategy
. Evaluatelimplement access to existing
systems including GIS, AutoCAD, and
hydraulic modeling
. Savings result from optimized planning and
design
I
I
Total savings $ are not measurable now
I
""... Fln_Mt.....
I
I
Opportunities:
Wastewater Treatment
I
#2 Reactive to Planned Maintenance
. Implement planned maintenance culture,
institute preventative maint. program
. Improves productivity by 30%
. Savings = .3 x (15 staff x $30K per year) =
$135K per year (= to 5 fewer staff)
I
I
~-
I
I
Opportunities:
Engineering Services
. 51 points total = average efficient utility with
some room for improvement
. Can't measure opportunity now
Total savings $ are not measureable now
~-
Opportunities:
Engineering Services
#6 Organization as Strategy
. Review the business functions of the utility to
ensure proper focus, implement staffing plan
accordingly
Total savings are not measureable now
~-
Opportunities:
Wastewater Treatment
#2 Reactive to Planned Maintenance continued
. Low WFF = 20% improvement possible
. Low skills = higher costs for improved skills
Optimized staff for strategy #2 = 10
.2 x 10 x 30K per year = $60K per year
....1Ql_ RtetlllnOltd.....
/0
I
I
I
Opportunities:
Wastewater Treatment
I
I
#5 Technology as Strategy
. Investigate digester rehabilitation, centrifuge
shutdown and process optimization for sludge
dewatering
. Energy cost savings of - $70K per year
(included in energy analysis)
. Chemical cost savings of - $250K per year
I
I
~mond~
I
Opportunities:
Wastewater Treatment
I
I
I
I
I
I
I
I
Opportunities:
Customer Service/Meters
#5 Technology as Strategy
. Add postal bar coding to bills, small setup
cost, go from $.18 to $.159 per postcard =
savings of $7.5K per year
. Meter replacement schedule to reduce avo
age of meters to 10 yrs., cost = 60,000
meters over 10 yrs. at $25 per meter = $1.5M,
4% accuracy improvement = savings approx.
$114K per year
I
It.tgl_ Rk:hmoIKI UMeI
I
I
Opportunities:
Wastewater Treatment
#5 Technology as Strategy contiRJed
. Place a Time of Use Rider on major facility
meters rate schedules and schedule Energy
Audit, cost savings = 20% reduction of $1.3M
= $220,000
Total technology savings $470,000
~U*eo
Opportunities:
Wastewater Treatment
#6 Organization as Strategy
. Evaluate the Contracting Out of Non-Core Business
Activities
. Grounds Keeping: Saves 1 position = $24.5K Labor
. Sludge hauling: Saves 4 positions = $24.5 x 4 =
$98K Labor
. Reduced truck cost 4 trucks x 50K mi. x $.50 per
mile = $100K
Total labor savings = $222,500
~U*eo
Opportunities:
Customer Service/Meters
#5 Technology as Strategy contiRJed
. Retraining and retaining 4 readers for
installation = $95,000 per year for 10 years
Total technology savings =
$121,500 per year
~UtIIfeo
11
I
I
I
Opportunities:
Customer Service/Meters
#6 Organization as Strategy
. Reduce billing frequency and balance meter reading
schedule, cost to cover lost cash flow for one month
= $7,700
. Postage would decrease $60,000 per year
. Printing costs decrease by $12,000 per year
. Data processing supplies decrease by $15,000 per
year
Meter reading labor savings = 50% of readers =
$165K based on 14 readers@$19K+ 25%
overhead
I
I
I
AIJguota-RIchmond UtiIIlIeo
I
I
Opportunities:
Customer Service/Meters
I
Customer Service Improvement Costs:
I
Startup Costs = approx. $1.8M
Meter Labor Costs = $95K per year
I
I
I
I
~UtiIIlIeo
I
I
I
I
I
Opportunities:
Customer Service/Meters
#6 Organization as Strategy contirAJlld
. New telephone system, cost of $225,000
. Outsource payment processing, setup cost =
$59K
. Cashier labor savings = 9 staff at $19K each
and 25% overhead = $213K
. Eliminate annored car, savings = $5K per
year Total CS organizational savings =
$465,000 per year
~UllItIeo
Opportunities:
Competitive Gap Analysis
Savings
3.18
Gap = =
= 2,...4
Total O&M Costs
11.7
~UllItIeo
Recommendations
~UllItIeo
12
I
I
I
Recommendations Have Three
Focus Areas
I
. Business Practices
. Use of Technology
. Skill and Compen-
sation Levels
I
I
Master Plan
~1JliIIIeI
I
I
Implementation of Technology
Solutions Improves Bottom Une
I
. Process control system at treatment plants
reduce both Ops. and Mainl costs
. CMMS coupled with improved practices
saves labor costs and protects huge
investment
. CIS consolidates business functions and
reduces labor costs
I
I
I
~UM..
I
I
Conduct a Strategic Business
Plan
I
. Define mission and vision
. Describe project with cost benefits
. Identify quick wins
. Prioritize projects
. Determine project implementation steps
I
I
~~
I
I
Business Practice Issues
Foster a Culture of
Competitiveness Awareness
. Define future vision
. Establish performance based metries
. Involve managers in budget preparation
. Develop a program-driven maintenance
system
. Redesign Customer Service functions
~UIlIIIeo
Skills (& Consequently) Compensation
Levels Require Upgrading to Support
New Practices
. Define existing and required ,
skill sets
. Broad-banding salaries and
cross-training helps
integrate County and City
forces
. Increased skills improve
personnel's job satisfaction
~UIlIIIeo
Reengineering is a Six
Step Process
..p'
~UIlIIIeo
13
I
I
I
I
I
I
I
I
Recommendations for
Implementing the Business
Strategy Plan
. Apply Best Practices to O&M functions:
-TPO
- Program-Driven Maintenance
- Unattended Facilities
- Work Force Flexibility
. Conduct an Organizational Readiness
Assessment
. Pilot Best Practice strategies in a specific
section of the Dept.
~mondUtilllleo
A Glimpse into the Future:
Planning & Implementation
I
I
. Establish vision for the future
and a staged, multi-year plan for
achieving the vision
. Develop an Information and
Automation Master Plan based
on competitive business
strategies. Plan must indude:
organization, training,
technology, approach, schedule,
costslbenefits
I
I
I
I
I
I
I
I
~mondUtilllleo
A Glimpse into the Future:
Planning & Implementation
....tgUIta Rlc:hmoeKllJMel;
I
Recommendations for
Implementing the Business
Strategy Plan continued
. Complete conceptual design of the
technologies to support the Best Practices for
the pilot
. Develop a new compensation matrix and
training program
. Apply lessons leamed on a utility-wide basis
Augusta-Rlchmond UtiItIeo
First, Develop the Plan
A Glimpse into the Future:
Planning & Implementation
Auguola-Ridlmon UtiIIIIeo
14
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
A Glimpse into the Future:
Planning & Implementation
hlguota-IlIdImond UMeo
A Glimpse into the Future:
Planning & Implementation
~UMeo
A Glimpse into the Future:
Planning & Implementation
~lJMeo
Questions/Comments
?
.
~lMti_
15