KING FAHAD UNIVERSITY OF PETROLEUM & MINERALS
College of Environmental Design
Department of Construction Engineering & Management
Master of Engineering Report
(CEM-600)
Business Process Improvement
Case Study at
Saudi Electricity Company – Eastern Region Branch
"Maintain Support Facilities"
For
DR. ABDULAZIZ A. BUBSHAIT
By
Yaser Sulaiman. Al-Jughaiman
January, 2004
i
TABLE OF CONTENTS
CHAPTER 1 -----------------------------------------------
01
Introduction: -----------------------------------------
01
1.1
Backgrounds ------------------------------------
01
1.2
Saudi Electricity Company – Eastern Region Branch -----
02
1.3
Objectives -------------------------------------
03
1.4
Report Overview --------------------------------
04
1.5
Scope Limitation --------------------------------
04
1.6
Support Services Organization Chart ----------------
05
CHAPTER 2 ----------------------------------------------
07
Literature Review --------------------------------------
07
2.1
Introduction ------------------------------------
07
2.2
History ----------------------------------------
08
2.3
Improvement Process Differentiation ----------------
10
2.4
Relation Between BPR and Information Technology -----
13
2.5
Davenport and Short BPR Methodology ---------------
15
2.6
Human Resource Factor ---------------------------
16
2.7
Business Process Out Sourcing of Business ------------
16
2.8
BPR in Small Organization -------------------------
17
2.9
The Total Plant Paradigm -------------------------
21
2.10
Why BPI and BPR Projects Fail ---------------------
24
ii
CHAPTER 3 ----------------------------------------------
26
MAINTAIN SUPPORT FACILITY CASE STUDY--------------
26
3.1
Introduction ------------------------------------
26
3.2
Why Project Been Selected -----------------------
28
3.3
Start-up and Preparation Phase --------------------
32
3.3.1-Selecting a Major Process for BPI -------------
32
3.3.2-Conducting Interviews -----------------------
33
3.3.3-Building a Process Model ---------------------
34
3.3.4-Identify Process Boundaries ------------------
35
3.3.5-Interview the Key People --------------------
39
3.3.6-Selecting BPI Team Member -----------------
39
3.3.7- Creating Project Charter --------------------
40
I. Mission ----------------------------
41
II. Scope of the Project -----------------
41
III. Goals and Objectives -----------------
41
IV. Deliverables ------------------------
42
V. Roles and Responsibilities --------------
44
VI. Project Milestone --------------------
46
VII. Assumption and Risk ------------------
47
3.3.8-Developing Detailed Work Plan ----------------
48
3.3.9-Provided Team Over Review and Kick-off Project
48
iii
3.4
3.5
3.6
Current State Phase -----------------------------
49
3.4.1-Introduction ------------------------------
49
3.4.2-Process Mapping and Value Analysis ------------
50
3.4.3-Collecting Detailed Sub-Process Date ----------
56
3.4.4-Conducting Customer Surveys -----------------
65
3.4.5-Root Cause Analysis ------------------------
70
3.4.6-Leading Practices and Site Visits --------------
77
Future State Phase ------------------------------
82
3.5.1-Introduction ------------------------------
82
3.5.2-Conducting Future State Workshops -----------
84
3.5.3-Creating the Future State Redesign ------------
90
3.5.4-Develop Business Case for Each Change
Recommendation ---------------------------
94
3.5.5-Developing Implementation Plan for each Change
Recommendation ---------------------------
100
Implementation Plan Phase ------------------------
103
3.6.1-Introduction ------------------------------
103
3.6.2-Mobilizing for Implementation ----------------
103
3.6.3-Developing Charters and Work Plans -----------
104
3.6.4-Monitoring and Managing the Status -----------
105
3.6.5-Measuring Find Results of Implementation -------
105
iv
CHAPTER 4 ----------------------------------------------
107
Recommendation Improvements Analysis --------------------
107
4.1
Introduction ------------------------------------
107
4.1.1-Recommendation Analysis --------------------
107
Recommendation 1
Utilize Unit Rate Contract ------------------------
111
Recommendation 2
Maintenance Web Page ---------------------------
121
Recommendation 3
Maintenance Call Center --------------------------
125
Recommendation 4
Electronic Equipment Repair Shop -------------------
127
Recommendation 5
Maintenance Free Materials -----------------------
131
Recommendation 6
Service Level Agreement & Chargeback --------------
133
Recommendation 7
Predictive Based Maintenance ----------------------
137
Recommendation 8
Hand Held Data Input Devices ---------------------
139
Recommendation 9
Make CMMS the Standard Database ----------------
141
Recommendation 10
Improve P.C. Repair and Support Network ------------
143
CHAPTER 5 ----------------------------------------------
148
5.1
Introduction -----------------------------------v
148
5.2
Summary of the Project and Conclusion --------------
148
5.3
Recommendations --------------------------------
150
References ---------------------------------------
vi
153
CONTENTS OF TABLES, FIGURES, AND CHARTS
FIGURE
1
SEC Organization Chart -------------------------------
06
2
Different Improvement Models --------------------------
11
3
BPI Process Flow -------------------------------------
27
4
Sub-Process Model -----------------------------------
35
5
Activities into the Major Process ------------------------
37
6
Process into the Major Process --------------------------
38
7
Sub-Process 3 Process Map ----------------------------
54
8
Sub-Process 5 Process Map ----------------------------
55
9
Sub-Process 3 Cycle Time ------------------------------
59
10
NAOSD Department FTE ------------------------------
62
11
NAOSD Department FTE ------------------------------
64
12
Sub-Process 3 Root Course Analysis ----------------------
73
13
Project Implementation Mobilization ----------------------
102
14
Summary of Costs and Benefits “Utilize Unit Rate Contract” --
113
1
Comparing TQM with BPR ------------------------------
11
2
Comparing TQM with BPI ------------------------------
12
3
Major Macro, and Mega Process at SEC ------------------
28
4
Project Milestone -------------------------------------
47
TABLE
vii
5
Process Data ----------------------------------------
57
6
Issues and Improvement Identified by the Customers & the
Team ----------------------------------------------
67
7
Future State Workshop --------------------------------
86
8
Recommendation #1 “Utilize Unit Rate Contract” -----------
111
9
Summary of the Benefits “Utilize Unit Rate Contract” -------
112
10
Cost Worksheet “Utilize Unit Rate Contract” ---------------
114
11
Benefit Worksheet “Utilize Unit Rate Contract” ------------
115
12
Hard Cost/Benefits – All Figures SRs “Utilize Unit Rate
Contracts” ------------------------------------------
116
117
13
Soft Cost/Benefits – All Figures SRs “Utilize Unit Rate
Contracts” ------------------------------------------
14
Recommendation #2 “Maintenance Web Page” --------------
121
15
Summary of the Benefits “Maintenance Web Page” ----------
123
16
Recommendation #3 “Maintenance Call Center” -------------
125
17
Summary of the Benefits “Maintenance Call Center” ---------
126
18
Recommendation #4 “Electronic Equipment Repair Shops” -----
127
19
Summary of the Benefits “Repair Shops for all Electronic
Equipment” ------------------------------------------
129
20
Recommendation #5 “Maintenance Free Materials” ----------
131
21
Summary of the Benefits “Maintenance Free Materials” ------
132
22
Recommendation #6 “Service Level Agreement & Chargeback” -
133
23
Summary of the Benefits “Service Level Agreement &
chargeback” -----------------------------------------
135
viii
24
Recommendation #7 “Predictive Based Maintenance” ---------
137
25
Summary of the Benefits “Predictive Based Maintenance” -----
138
26
Recommendation #8 “Hand Held Data Input Devices” --------
139
27
Summary of the Benefits “Hand Held Data Input Devices” ----
140
28
Recommendation #9 “Make CMMS the Standard Database” ---
141
29
Summary of the Benefits “Make CMMS the Standard
Database” ------------------------------------------
142
30
Recommendation #10 “Improve P.C. Repair & Support Network”
143
31
Summary of the Benefits “Improve P.C. Repair & Support
Network” -------------------------------------------
144
32
Recommendation #11 “Improve Material Delivery” -----------
145
33
Summary of the Benefits “Improve Material Delivery” -------
147
CHART
1
Sub Process 3 Root Cause Analysis -----------------------
77
2
Implementation Plan “Unit Rate Contracts” ----------------
119
ix
CHAPTER 1
INTRODUCTION
1.1 BACKGROUNDS:
Process improvement is not a new concept, although many businesses are
now
implementing
process
improvement
in
order
to
enhance
the
effectiveness and efficiency of the business. It was done without
intention and not as per the formalities and rules established now. It is
widely used term start in the early 1990’s and because so popular for all
business seeking for improvements.
Hence, since the early 1990’s, Saudi Electricity Company, Eastern
Region Branch (SEC-ERB) started gathering information on Total Quality
Management (TQM) Philosophies. They signed an agreement with Florida
Power Corporation who had successfully implemented TQM and Business
Process Improvement (BPI) to assist SEC-ERB in the implementation
here.
On
Corporation
November
made
1993,
presentation
representatives
to
SEC-ERB
from
Florida
Executive
Power
Management
(ERMC) on TQM. ERMC decided to start the implementation of TQM
from 1994, though 1996. Florida helped in the implementation of TQM
paves the way to prepare to implement Business Process Improvement.
Employees of SEC-ERB began discovering what customer needs from
1
them and finding ways of doing their jobs better, faster, and more cost
efficiencies. Later SEC-ERB decided to make a much bigger step to
provide more substantial change in the way business is conducted by
focusing in major business process that cut across the functional
corporate structure.(9)
In December 1996, ERMC decided to the first step in preparing to
implement (BPI). Similarly, the representatives from Florida Power
Corporation were invited back to assist SEC-ERB in developing a Business
Process model for the Company. The effort identified 446 products and
services at the Departmental level. From this list, 70 major business
processes, 23 macro processes and 8 mega processes were identified.
BPI looks toward improving the 70 major business products that were
identified by the Company. A contract was signed with Ernst and Young
as a Consultant in the implementation of BPI and first teams were
formed in August 1997.The following section gives some background
about SEC-ERB.
1.2 Saudi Electricity Company – Eastern Region Branch (SEC-ERB) (12)
Saudi Electricity Company was established recently on H1420/09/06
after merging all Electricity Companies in the kingdom and the Company
started this business on April 5, 2000.
2
On August 23, 1976 Saudi Consolidated Electricity Company in the
Eastern Province was established by joining the small companies in the
Eastern Province on in Company.
From the Saudi electricity Company annual report, after merging of all
electricity companies in the kingdom, the following are the main figure of
the Company:
Total customers
=
3,792,210
Customers
Total Generation Capacity
=
26,326
MW
Maximum Demand Generated
=
23,582
MW
Total Sold Power
=
122,944
GWH
Company Capital
=
38,287,770,900 Riyal
1.3 Objectives:
The objective of this research is to present and summarize the findings
of a study carried by the SEC-ERB to improve the "Maintain Support
Facilities. The objective will be achieved by reviewing the sequence of
step and methods which are implemented and developed in BPI the four
phases discussed later (Preparation and Start up, Current State, future
State, and Implementation phase).
3
1.4 Report Overview:
Report contains mainly three sections: the introduction, the literature,
and summary of the BPI report findings carried to improve “Maintain
Support Facilities”. The summary section is subdivided and contains the
start up and preparation phase, the current state phase, the future
state phase and the implementation phase. Separate section for the
future state results would be under the recommendation analysis. The
start up and preparation show the process from the selection of the
subject major process improvement until the kick-off of the project.
The current state phase analysis the current situation, while the future
state try to find better solutions for improvement after evaluating the
findings in the current state. Then, what is the sequence of steps for
the implementation phase will be summarized. Finally, the final and
approved recommendation by ERMC will be summarized and analyzed.
1.5 Scope Limitation:
Even though the research will summarize the BPI phase discussed
earlier, the report contains too much and too lengthy details. As a
result it was decided to concentrate on one of the sub-processes and to
show its related findings only Sub-Process 3 “ Performance Corrective
4
Maintenance “ was selected to be analysed more. This was because it is
the heart of the process and became it is usually is associated with the
most of the expenditure and it also require most of the resources and it
can also affect all the other sub-processes.
1.6 Support Services Organization Chart:
The organization chart explains the definition of SEC-ERB support
services functions. Even though, in the BPI if other Department other
than support services department provide a similar service of the
support services it will join the project boundaries and it will be also
studied such as the power plants. They are doing them self's the
function of support services also Media Department are repairing media
equipment.
5
Figure 1: SEC Organization Chart
PRESIDENT
GENERATION
EVP
TRANSMISSION
EVP
INDUSTRIAL SECURITY _ VP
FACLITYSUPPPORT – MGR
.
AREA BUILDING
FACILITY SERVICES –
SH
DIST.CUST SER.
EVP
GEN. SER.
SVP
FINANANCE
EVP
MANAGER PLANNING
& BUSINESS
COORDINATOR
IT & C-VP
REAL ESTATE – MGR.
HUMAN RESOURCES
SVP
TECHNICAL SUPPORT – MGR
JOAF A.F.M.D. – MGR
.
.
PUB. SHAREHOLDER
SVP
LEGAL AFFAIR
SVP
FM-VP
FMD – MGR - EAST
NORTH A.F.M.D. – MGR
.
Planning &
PROGRAMME
SVP
INTERNAL AUDITING
SVP
MATERIAL SUPPLY-VP
TRANSPORTATION. VP
FMD – MGR. - CENTRAL
HASSA A.F.M.D. – MGR.
FMD – MGR. - WEST
FMD – MGR. - SOUTH
.
DAMMAM A.F.M.D. – MGR
SUPT. & STAFF
.
GSU – SUP
DH & KH -FOREMAN
D&Q U - FOREMAN
A/C & ELECT - FOREMAN
FM UNIT - FOREMAN
6
.
SECTI & PP – SEC, ASST. SUPT
.
GSU & REC.SUP
CHAPTER 2
Literature Review
2.1 Introduction
Today
most
business,
manufacturing
or
commercial
engineers
are
considering the changes developed in process improvement techniques.
This due of the vast changes developed in the business competition all
over the world and specially with the up coming world trade organization
coming in business, it becomes vital to all companies to review its
strategies and to measure how effective they are. The concept of
Business Process Reengineering and Improvement in a new concept
started only in early 1990's, however trying to business or trying to
discover the cause of un-effective organization stream work or trying to
improve
the
work
streamline
happened
with
the
start
of
the
establishment of businesses. The rapid Information technology is a key
factor affecting many organizations to be more effective. The customer
is another key factor to study improving the business since with open
world markets; he has many choices and opinion to select.
7
2.2 History
Earlier two terms were introduced, one is Total Quality Management and
the other is Business Process Improvement and its history especially at
SEC-ERB.
There are other improvement process such as Business Process Reengineering which was first appeared in 1990 by Michael Hammer(14) in
his
paper
published
in
the
Harvard
Business
Review
called
“Re-
engineering Work: Don’t automate, obliterate”. He was a former MIT
professor and information technology specialist. The issue of BPR
includes organizational redesign, process reorganization, and the use of
information technology.
Hammer
and
Champy(15)
define
process
re-engineering
as
“the
fundamental rethinking and radical redesign of business processes to
achieve dramatic improvements in critical contemporary measures of
performance, such as cost, quality, service, and speed…reengineering
isn’t about fixing anything…re-engineering a Company means tossing aside
old systems and starting over…re-engineering can’t be carried out in
small and cautions steps. It is an all-or-nothing proposition…tradition
counts for nothing. Hammer also defines BPR as the starting from the
very
basic
issues,
reformation
of
8
the
reengineering
process
will
dramatically improve an organization in terms of its cost, quality, service
and speed (14).
Re-engineering is a new beginning.” Others also studied BPR Literature
(FUglesth and Gronhaug 1997). Caron et. al. (1994)(16) also examined
BPR in depth. They offered a set of general guidelines but they failed
to mention the importance of systematic methodology. Davenport and
Stoddard (1994) also addressed various ideas and studies associated
with BPR based on detailed case study analysis of many companies. Duck
(1993)(17) considers
the
adequate
management
of
change
to
be
fundamental in any successful re-engineering project. Management of
change involves communicating with the affected by changes, and being
aware of the effect of change on the company as a whole. Cyprus
says(18) in 1994 that the identification of critical business process is one
of the most crucial factors affecting the success or failure of BPR.
Davenport & Short (1990)(19) defines business process as "a set of
logically
related
tasks
performed
to
achieve
a
defined
business
outcome". And the process is a structured measured set of activities
designed to produce a specified output for a particular customer or
market.
So,
processes
have
two
organization that serve them.
9
characteristics:
customers
and
2.3Improvement Process Differentiation:
There are many improvements method, which can be compared, most
famous
are
Total
quality
Management
(TQM),
Business
Process
Improvement (BPI), Business Process Re-engineering (BPR) and Business
Process Innovation.
TQM usually is a used term for improving small process affecting one or
two Departments. BPI looks for incremental step by step continuous
improvement
to
the
existing
process
which
usually
involves
many
Departments in many areas which will cross further between organization
chart. In the BPR it seeks radical change through designing whole new
processes since some process may not be able to improve, hence, a
redesign of the whole process from scratch is needed. It is normally deals
with Mega process. Where process re-engineering throws everything out
and start fresh, process improvement tries to analyze and standardize get
every one consistently using the agreed upon procedure and make the
process reliable and improve upon the existing procedures.
The last term use here is the Business Process Innovation, which deals
with some processes that don’t exist so it must be created using the
10
Business
Process
Innovation
and
the
following
figure
explains
the
differences:
Figure 2: Different Improvement Models
TQM
Business Process
Re-Engineering
BPI
Small Processes
(9)
Business Process
Innovation
New Process
Large Business Processes
Streamline the Existing Process
Replace Processes
Create Processes
New Activities
Reduce NVA and Improve VA Activities
Meet Customer Expectations
Many Small Improvements
Exceed Customer Expectations
Major Improvements
Strategic Changes
Hence, BPI is in between TQM and BPR. From table 2 it is obvious that
TQM is a continuous process but BPR is a one time and since it is cross
functional
it
will
affect
many
areas
and
departments.
So,
major
differences between TQM and BPR are also listed in the following table:
Table 1: Comparing TQM with BPR
(10)
TQM
BPR
Level of Change

Incremental

Radical
Start From

Existing Process

Clean Slate
Frequency

One-Time/Continuous

One-Time
Time Required

Short

Long
Participation

Bottom-up

Top-Down
Typical Scope

Narrow (within)

Cross-functional
Risk

Moderate

High
Primary Enabler

Statistical Control

I.T.
Type of Change

Cultural

Cultural Structural
11
Another table, which can also illustrate the differences between TQM and
BPI, similarly, as in the previous table BPI will affect many departments
and areas but usually it will not replace
major processes. Major
differences are in the following table:
Table 2: Comparing TQM with BPI
( 9 )
TQM
BPI
Departmental processes/limited crossfunctional involvement.
Major, corporate cross-functional
business processes.
Many teams functioning at the same
time.
2-4 teams functioning at a given
time.
One hour a week.
Full time assignment for 4 months.
No computer software necessary.
Extensive Database, Spreadsheets &
Graphical software experience
needed.
Modest savings per project.
Tactical improvements.
Small changes, little stress on
organization.
Strategic improvements.
Large changes, significant stress on
org.
Quick implementation of improvement.
Internal focus for improvement.
Improvement of improvements may
require years.
Improvement is within capability of
the Department.
Focuses on practices of other
Companies.
Improvements often require increased
Information Technology.
12
2.4 Relation Between BPR and Information Technology
Since Hammer himself who is the first references in BPR phenomenon nd
a former MIT professor and information technology, he
(14)
considers IT
as the key factor for radical change. He believed that the IT
technology is the one to challenge the assumption and believes inherent
in the work processes which existed since long before the vast
development of modern Computers and Communication technology. Other,
such as the IT – economist Paul Strassmann
(20)
, concluded that there is
no relationship whatsoever between Computer expenditure and company
performance. Also, Xerox director, Seely Brown(11) , observed that
despite investments of over One trillion dollars in technology over two
decades, U.S. industry had realized little improvement in the efficiency
of its knowledge workers. Devenport & Short(19) argue that BPR requires
taking a broader view of both the IT and business activity, and of the
relationship between them. IT should be view not only an automating
force but fundamentally reshape the way business is done.
The development of many systems developed by BPR – Vendors such as
SAP or Oracle were expected to provide sharing of data across various
business functions. These systems were based on top-down model
information strategy implementation and execution, and primarily focused
on coordination of companies internal functions. When such systems were
13
implemented in big companies like ARAMCO it streamline some process
activities and opened the door widely for process reengineering to be
successful.
The
evolution
of
the
information
processing
paradigm(11)
generally
progressed over three phases over the last four decades which changed
the business functions and processes are:-
1. Automation : increased efficiency of operations
2. Rationalization of procedures: streamlining of procedures and
eliminating obvious bottle necks that are reveled by automation
for enhanced efficiency of operations.
3. Re-engineering: radical redesign of business processes that
depends upon information technology intensive radical redesign of
work flows and work processes.
The role of IT is generally that of an enabler rather that a leader
of a reengineering effort. Furey, Garlitz & Khelleher (1993)
(21)
found
that the success of the subsequent reengineering was far more
dependent on other factors such as management leadership, clear
vision, and change management eventhough most reengineering efforts
were initiated by the identification of an IT opportunity,. The
process owners are encouraged to take the leading role instead of
14
those in charge of IT, as the process owners will have a more
complete knowledge of the processes under scrutiny.
2.5 Davenport and Short BPR Methodology:
Malhotra, Yogesh in his article " Business Process Redesign : An
Overview"(10)
he
prescribed
Davenport
Short(19)
and
five
step
methodology approach to conduct BPR:
First, is to develop the Business Vision and Process objectives such as
Cost
Reduction,
Time
Reduction,
and
output
quality
improvement.
Second, is to identify the processes to be redesigned. Most firms use
something called the high impact approach which focuses on the most
important processes or those that conflict most with the business vision.
Lesser number of firms uses the Exhaustive approach that attempts to
identify all the processes within an organization and then prioritize them
in order of redesign urgency such as what exists at SEC-ERB as it will
be
discussed
later.
Third,
understand
and
measure
the
existing
processes to avoid repeating same mistakes and for providing a baseline
for
future
improvements.
Fourth,
to
identify
IT
Levers
by
the
awareness of IT capabilities what it can do to influence process design.
Last, to design and build a prototype of the new process, the actual
design should not be viewed as the end of the BPR process. Rather, it
should be viewed as a prototype, with successive iterations.
15
2.6 Human Resources Factor
To ensure reengineering of large, complex and also small businesses the
employee participation is a key factor for the success or failure of the
redesign. There would be a key element in the successful reengineering
of especially in large organization. Designed training for human resources
support
the
transition
in
concert
with
reengineering
management,
organizational development, Labor relations and external Consultants.
Two steps
factor
(2)
are important in order to fully utilize the human resources
effectively.
First,
is
extensive
communications
by
opening
meetings for all employees continuously, distributing newsletter to all
employees and providing constant updates to reduce the hostility by
employees because they could have a sense that their job security or
job benefits would be affected. Second, step to successfully managing
change is the role of carefully training programs that support the
development of streamlined reengineering. Each step has to be done
patiently and carefully in order to get employees support and to build
knowledge.
2.7 Business Process Outsourcing Instead of Business
Process Improvement or Reengineering
Business process outsourcing is an act of an organization to transfer
the burden of doing an activity or activities to another organization
16
to do instead of them. There are growing a number of companies
considering business process outsourcing because of two major
factors
(7)
. First, is the desire of many companies to leave non-core
activities
to
specialist
firms
that
can
provide
world-class
performance in delivering these activities and to focus on core
business processes.
Second, since BPO firms are specialized, this gives them a significant
value proposition. This can include specialized expertise; economies of
scale; leverage from investment in high-value processing technologies;
the
ability
practices
to
and
reengineer
business
meet world-class
processes
to
standards; and
incorporate
lower
costs
best
from
operating selected activities at lower-cost location.
It is clear that the use of BPO will grow, and that more supply chain
management processes will be considered for outsourcing
although
business process outsourcing might not be right for all companies.
2.8 BPR in Small Organizations:
Although
there
is
no
universal
methodology
for
business
process
reengineering, a number of common components exist within the growing
body of literature on BPR. However, that literature is based on
17
experience in larger firms and little has been written for the small firm
attempting to gain similar radical gains in performance which have been
attributed to successful BPR.
In small firms, organizational structure is typically informal, but highly
centralized,
which
provides
strength
in
decision-making
and
rapid
implementation of decisions. This also enables more rapid implementation
of change in the organization. Furthermore, it has been empirically
confirmed that small businesses differ from large organizations in other
matters such as maturity and environmental uncertainty. This indicates
that a different set of considerations may be important for BPR in
smaller firms.
Hammer & Champy(22) provide the only recommendations on attempting
BPR especially for the small business. They define the purpose of
reengineering as organizing the company so it can best create value for
its customers. The emphasis is on the customer and results rather than
tasks and procedures. Hammer claims any company can adhere to the
principles of reengineering regardless of size. Hammer & Champy
recommend keeping the focus on processes and continue improving those
processes.
18
On the other hand, Barrier(23) takes the simple meaning of BPR, (i.e.
putting the business through radical change), and claims that it is
applicable to small businesses as well.
Methodology Outlined for Small Firms(4) are as follows: The identification of critical processes within the small firm.
 The use of IT as a lever for reengineering, and the role played by IT in
the project as a whole,
 The identification of a vision and objectives for the reengineering
project, and the degree of planning for BPR conducted,
 The existence of executive commitment and organizational involvement,
the initial motivation for reengineering, and the treatment of those
directly affected by any major changes.
Again IT was considered as a lever for reengineering, as different ways
of harnessing the benefits available from IT were investigated and
utilized where possible. IT now plays a significant part in their
reengineering process and provides considerable improvements to the
firm.
As
an
example,
extensive
use
of
email
provided
improved
information flows within the business. Management just looked at the
company's long term mission statement, and formulated their plan from
that, hence , there was no development of process objectives during the
19
planning for BPR unlike their in complex or large organizations. The role
restructuring did not include an initial definition stage, whenever the
processes as they existed at that time were analyzed, documented and
measured before going ahead with the planned reengineering. This step
is important since the effects of the project can not be determined with
great certainty, even after implementation, as the situation prior to
reengineering was not known.
The success appears to be largely attributable to the high level of
management support of the project. Their extensive involvement and
concern in ensuring that the employees gain a feeling of ownership of the
processes that they are responsible for is highly recommended in the
literature. Overall, the steps and principles adopted show a high
similarity to the recommendations made in the literature. Most likely the
reengineering is proven to be extremely beneficial for small firms. But
this conclusions can not be generalized to all small firms without further
investigation, they indicate little difference in the requirements for
small and large firms for successful reengineering of their processes.
So, this could be a subject for further study.
20
2.9 The TotalPlant Paradigm
TotalPlant is a program called by Honeywell on the industrial automation
and control (IAC) which designs, manufactures, and configures the
sophisticated control panel called TDC 3000X family of systems
(3)
. The
mission of TotalPlant is to Unify Business and control information to
enable global customer satisfaction. The paradigm is based on four
principles
(3)
of success: Process Mapping, Fail-Safing, Team works and
Communication. Each principle is critical, so, every team member must be
educated in all four major of the principles and the major obstacle to
change. This is done to change the employee attitude of things are ok,
so why to change.
The four paradigm principles are :
(a) Process mapping which is tool that allows one model the flow
of any business process in a graphical form. This principle
consists of eight steps. The first step is to select the
process. The second step is to identify the boundary and the
third step is to make sure that the team has cross-functional
representation from each organization contributing to the
process. The fourth step is to develop the "as is" map
represents
the
transformation
of
inputs
into
finished
products. The fifth step is to identify the cycle time for
each step in the process and the sixth step is to identify
21
opportunities for improvement that would not add resources
(extra costs). The seventh step is to develop the "should be"
map. This map includes a "picture" of the improved processes
and projections of their new cycle times. Last step is to
develop
the
process
implementation
plan,
establish
confirmation, and implement.
(b) Fail-Safing:
Fail-safing is a method to identify a defect, analyze it to
understand its root cause, and to develop a solution that will
prevent that defect from occurring again. Also, there are
eight steps in conducting this principle. The first step is to
identify the problem (defect) and the second step is to
identify the root cause(s) of the problem. The third step is
to generate alternative solutions. The fourth step is to
evaluate
and
choose
a
solution.
The
fifth
step
is
an
implementation plan is created. Step six (Do) is to implement
the chosen solution. Step seven (Check) involves checking
results. Step eight (Act) is to determine the next steps for
continuous improvement.
22
(c)
Teamwork
To familiarize people (including managers) with what teams
are, how they work, and how they will help the company, it
takes special effort management support, training, and a
nurturing environment to make it work and special training is
needed. After training, workers need to "feel" that the work
environment is conducive to teams. Creativity, risk taking and
innovation are encouraged and viewed as learning experience.
People are trusted, respected and empowered to execute
their duties. People are not predictable, naturally resist
change, and are diverse which become the biggest challenge in
dealing with change . People can be trained to effectively map
processes and fail-safe defects in a short time. However,
getting a diverse workforce to work as a team takes time.
The key is the environment.
(d) Effective Communication Skills
Communication of the TotalPlant vision is key factor in to
success. Lack of effective communication is the number one
problem in most organizations. Communication of a vision is
especially susceptible to conflict because its message is broad
and its audience is the enterprise. So, Honeywell provides
23
conflict resolution training to teams to help them deal with
conflict in a positive way. One training module concentrates on
listening skills. Another module focuses on confronting skills.
The key is to develop conflict resolution skills that recognize
this tendency and practice these skills in a non-threatening
environment until a certain level of mastery is reached.
What separates success from failure is execution. Hence,
substantial training resources to educate the workforce about
the four mechanisms and how they work by top management
to be willing to dedicated to the project. Management,
behaviors have to change from autocratic to facilitative.
Teams have to be rewarded for enterprise value-added
activities. Finally, the organizational structure has to change
to allow an environment conducive to innovation.
2.10 Why BPI and BPR Projects Fail?
Seventy percent of the BPR projects fail because of three main
reasons. First, is the lack of sustained management commitment and
leadership. Second, is the unrealistic scope and expectations and
finally resistance to change. King (1994)(24) views the primary reason of
BPR failure as overemphasis on the tactical aspects and the strategic
24
dimensions being compromised. He noted that the process being viewed
and applied rather than strategic levels are the most failures reasons
of re-engineering. He discusses that there are important strategic
dimensions to BPR, notably, developing and prioritizing objectives,
defining the process structure and assumptions, identifying trade-offs
between processes, identifying new product and market opportunities,
coordinating
the
re-engineering
effort,
and
developing
a
human
resources strategy. He concludes that two things can be the ultimate
keys BPR success factors. First, depends on the people who do it and
on how well they can be motivated to be creative and to apply their
detailed knowledge to the redesign business processes.
25
CHAPTER 3
MAINTAIN SUPPORT FACILITY CASE STUDY
3.1 Introduction:
BPI team follows a four phase’s approach strategy with the starts up
and preparation phase in the begining. This phase is follows by a current
state analysis of the process. Future state design is next, and the
methodology ends up with the implementation phases. The last phase
since it under implementation up to now. No available information is
ready. However, the monitoring and follow up of the implementation
phase will be presented, as explained in Figure 3.
26
Figure 3: PBI Process Flow
START UP &
PREPARATION
PHASE
CURRENT
STATE PHASE
FUTURE STATE
DESIGN
IMPLEMENTATION
Selecting a Major
Process for BPI
Introduction
Introduction
Introduction
Conducting Interview
Process Mapping and
Value Analysis
Conducting Future
State Workshops
Mobilizing for
Implementation
Building a Process
Model
Collecting Detailed
Sub-Process Date
Creating the Future
State Redesign
Developing Charters
and Work plans
Identify Process
Boundaries
Conducting Customer
Surveys
Develop Business
Case for Each Change
Recommendations
Monitoring and
Managing the Status
Interview the Key
People
Root Cause Analysis
Developing
Implementation Plan
for Each Change
Recommendation
Measuring find results
of implementation
Selecting BPI Team &
Member
Leading Practices and
Site Visits
Creating Project
Charter
Developing Detailed
Work Plan
Providing Team w/
Overview & Kick-Off
Project
27
3.2 Why Project been Selected:
As stated earlier 70 major business process has been identified, among
them 70 BPI project been selected. The following are the 70 major
business process:
Table 3: Major Macro, and Mega Process at SEC
No
MAJOR PROCESSES
1
Forecast Energy Demand and Fuel
Consumption
2
Plan Future Electrical System (P/P,
S/S, Transmission)
3
Plan Distribution Network
4
Plan Support Facilities and
Communications Facilities
5
6
MACRO PROCESSES
B
7
8
Engineer and Design Power Plants
10
11
12
13
14
15
Plan Electrical System
and Support Facilities.
I Plan for the future.
Prepare and Monitor Operating
Plans, Business Plans, and Their
Accountability Reports
Prepare and Monitor Capital
Plans/Budget and Their
Accountability Reports and Close
Outs
Develop and Monitor Engineering,
Design, Construction, and Materials
Standards
9
A
MEGA PROCESSES
Engineer and Design TransmissionSubstations & Transmission Lines
Engineer and Design Distribution
Facilities
Engineer and Design Support
Facilities
Engineer and Design Communications
System
Prepare & Monitor
Budgets & Plans.
Engineer & Design
C Electrical System &
Facilities.
II
Construct Power Plants
Commission Power Plants /
Generation Facilities
Construct & Commission
Transmission-Substations &
Transmission Lines
D
28
Construct Electrical
System and Facilities.
Design, modify and
construct facilities.
16
17
18
19
20
Construct & Commission Distribution
Facilities
Construct/Modify & Commission
Support Facilities and
Communications Facilities
Operate Power Plant/Generation
Facilities
Maintain Power Plant/Generation
Facilities
Plan and Perform P/P
Overhaul/Major Modification
activities (T&I)
21
Schedule, Monitor, Operate and
Control Electric System
22
Maintain Transmission Substations
23
Maintain Transmission Lines
24
Operate Distribution Network
25
Maintain Distribution Facilities
26
27
28
29
30
31
32
33
34
Operate & Maintain
E Power Generation
Facilities.
III
Generate Electric
power.
Operate and Maintain
F Substation and
Transmission.
G
Provide Power Supply to
New/Existing Customers
Bill Customers and Handle Customer
Billing Inquiries
Manage Demand and Conserve
Energy
Operate & Maintain
Distribution
Deliver electric
IV power and serve
customers.
H
Provide Customer
Service.
Collect Payments From Customers,
Provide Disconnection/Reconnection
Services and Handle Related
Inquiries
Recruit and Place Trainees,
Employees, and Consultants
Provide Organizational Services
(incl. Org. Charts, Job
Descriptions, Manpower Utilization)
I Staff the Business.
Administer Labor Relations Matters
Provide Employee Training,
Education and Career Development
Provide Training Facilities &
Equipment
35
Administer Employee Benefits,
Travel and Lodging Services, and
Personnel Matters (Including
Contractors)
36
Provide Medical Services
37
Provide Services Related to Cash,
Investment and Insurance
38
Provide Shareholders Services
29
J
Provide Training and
Development
K
Provide Compensations
and Benefits.
L
Provide Treasury
Services.
Provide Human
V Resources
Management.
VI
Provide Financial
Management.
39
Provide Accounting Services
40
Provide Disbursement Services
(Invoice Processing/Payment)
41
Administer Payroll
42
Operate Communications System
43
Maintain Communications System
44
45
46
47
48
49
50
51
52
53
54
55
M
Provide Comptroller
Services.
N
Provide Communication
Services.
Plan, Install and Support IT
Infrastructure
Evaluate/Develop, Maintain/Modify
Software
Operate Central Computer System
(Mainframe)
O
Provide Information
Technology.
Prepare, Review and Issue Various
Reports (Internal and External)
Communicate Company
Information/Activities Internally
and Externally
P
Provide Reports and
Communications.
Q
Maintain & Retrieve
Information.
Retain and Store Records (Paper &
Electronic)
Provide Information Center/Library
Services
VI Provide Information
I and Communication.
Create & Maintain Drawings & Maps
Procure Equipment, Materials and
Services
Store, Control and Issue Medicines,
Materials, Tools and Equipment
Reclaim
Provide Material
(Test/Repair/Refurbish/Rework/Man R
Services.
ufacture) Material, Equipment and
Tools
Write-off and Dispose-off
Excess/Obsolete/Used Materials
and Equipment
56
Maintain Support Facilities
57
Provide Office Services
58
Provide Security Services
59
Provide Safety Management
60
Prequalify/Register
Vendors/Manufacturers/Contractors
61
Procure Contracts
62
Administer and Manage Contracts
63
Provide Real Estate Services
Including Right-of-Way (ROW)
64
Provide Legal Services
65
Provide Auditing Services
30
S
Provide Facilities
Maintenance & Office.
T
Provide a Safe
Workplace.
U
Provide Contract
Services.
V
Provide Corporate
Support Services.
VI Support Business
II Activities.
66
Formulate and Administer
Procedures, Instructions and
Perform Industrial Engineering
Services
67
Formulate & Administer Policies
68
Acquire and Assign Transport Fleet
69
Operate Vehicles and Equipment
(Including U Drive, Bus Services &
Gas/Fuel Services and Supply
Water)
70
Maintain Vehicles and Equipment
W
Provide Transportation
Services.
The selection of the BPI project to be studied depends mainly on the
following:
1. Strategic Impact: Is the process critical to the Company long-term
strategic goals.
2. External Customers Impact: Does it affect them directly.
3. Total Resources Consumption: What are the annual expenditure and
its percentage to the Company overall budget.
Note that a major process is not selected because it is performing badly
and needs improvement. Hence, SEC-ERB management at this stage after
considering these factors and after evaluation of the importance of the
major process and the customers satisfaction SEC-ERB decided its is the
time to study “Maintain Support Facilities”.
31
3.3 Start-up and Preparation Phase:
There are mainly nine steps in the phase of start up and preparation.
Each step will be explained and the results. This phase starts by
selecting a major process for BPI to be studied followed by conducting
interviews. Then, building a process model and identifying the process
boundaries. Fifth step, interviewing the key people followed by the
selection of the team members. Creating a process charter is the
seventh step, then, developing detailed work plan. Then finally, providing
the team with overview and kick-off the project.
3.3.1 Selecting a Major Process for BPI:
Earlier it was discussed major, macro and the mega processes
developed and identified by SEC-ERB. This begin and end with the
customer and independent of organizational structure. Those factors
stated earlier lead the Company to decide to select “Maintain
Support Services” project to be studied.
32
3.3.2 Conducting Interviews:
Core team conducted interviews with Managers involved in the
process, customer of the process, key suppliers for the process and
people who work within the process.
A list of targeting question will help to focus the discussions. It is
best always to ask the same question to all being interviewed.
The
following
are
some
example
question
use
during
initial
interviews:
 Why should we consider this Process a project?
 Why is this project important to you?
 Why is it important to SEC Eastern Region Branch?
 What result would you expect from this project?
 What are the internal and external customers of the process?
 What are the performance measures used to determine the
effectiveness and efficiency of the process?
 What on-line information is available?
 Are there any current constraints on the process? (i.e. People’s
time, approval levels, budget constraints, etc)
It is very important to document these discussions well and create a
database of the information for future use in the project.
33
3.3.3 Building a Process Model:
The model helps to ensure that the project scope is clear to all and
help the project team plan the project activities. The Business
Process Model is a decomposition of the Business Process to small
sub-process. Input key process steps, output and customers are
also identified for each sub-process. The sub-process also was
identified from the previous interviews. This model after intensive
discussions consisted of six Sub-Processes. It was decided that
perform preventive maintenance is a sub-process for the major
process. The repair of office equipment such as faxes, copiers,
computers, etc. Was decided to be sub-process 2 and each
department has its own sub-sub-process such as the repair of
media equipment would be sub-process 2.2 and the repair of
telecommunication
equipment
would
be
sub-process
2.3.
Sub-
Process 3 is the corrective maintenance for all the equipment and
facilities. Facility maintenance (renovation, modification, remodeling,
etc.) is sub-process 4 and it was subdivided into three categories
such as sub-process 4.2 for Upgrade Landscaping. Sub-Process 5
deals with material delivery process. Finally, sub-process 6 is for
all general services activities.
34
The sub process was identified as follows:
Fig 4: Sub-Process Model
(13)
Sub-Process Model
Sub-Process 1
Perform Preventive
Maintenance
(Buildings, Office Equipment &
Utilities)
Sub Process 2
Repair/Replace Office
Equipment
(Fax, Copiers, Telephones,
Computers, Printers, AV
Equip., Cameras, etc)
Sub-Process3
Perform Corrective
Maintenance on
Equipment & Utilities
 2.1 Repair/Replace Office Equipment
 2.2 Media Equipment maintenance
 2.3 Telecom. Equipment Maintenance
 2.4 Repair/Replace Computer
Hardware/Software & Peripherals.
Sub-Process 4
Facility Maintenance
(Renovation, Modification,
Roofing, Painting, Remodeling,
etc.)
Sub-Process 5
Acquire Equipment and
Materials/Spare Parts
Sub-Process 6
Provide General Services
(Janitorial/Sanitation,
Landscaping/Gardening)
 4.1 Sewer system maintenance
 4.2 Upgrade Landscaping
 4.3 Facility Maintenance
2.4 Identify Process Boundaries:
The process Model provides a great picture of the scope of the
3.3.4 Identify Process Boundaries:
The process model provides a great picture of the project. In
addition to the business Process Model, clearly defining starting and
ending points need to be defined. In other words what begins the
process and when does the process end. Starting and ending points
should also be defined for each sub-process within the Business
Process Model. The map will show the inputs and outputs from and
to the major seventy processes identified earlier. For example,
major process 37 "Procure Contracts" will provide input to the
35
"Maintain Support Services" of contract awarding. And as an output
to "Procure Contracts", "Maintain Support Services" will provide
three things approved budget, detailed scope of work and contract
documents. Figures 5 and 6 show it clearly.
36
Figure 5: Activities into the Major Process (13)
The following are the inputs to the process from the other process:
5: Prepare & Monitor
Capital Plans/Budgets
& their Accountability…
4: Prepare & Monitor
Operating Plans and
Their Accountability…
70: Create & Maintain
Drawing & Maps
Guidelines &
Procedures
Approved
Operating Plan
Drawing
27:Plan Support
Facilities and
Communication
Facilities
Buildings/Facilities
Planned Facilities
Expenditure
Cost Sheet
Approved
Budget
Approved
CAD Stationary
Training
Standards
Design Package
Project
Evaluation
Budget
5 Yr. Plan
Scheduled of
Proposed Plan
Safety
Standards
Safety Tng/Awareness
Engineering
Standards
63:Communicate
Company Information
Activities…
Annual Monthly
Weekly Report
Maintenance
Status Rep.
History
Report
62:Prepare, Review
and Issue Various
Report
30:
Maintain
Support Facilities
Material
Expend.
Rep.
Call for
Repair
56: Provide Training
Facilities and
Equipment
Design
Package
33: Operate
Communication
System
Test
Equipment
Telephones, Faxes,
Switching Systems, etc.
34: Maintain
Communication
System
Contract Award
Space
Facilities
for Repair
Manuals
Equipment
Trainee
Manpower
55: Provide Employee
Training Education
and…
31: Engineer & Design
Communication
System
Contractors (QC)
Vendor
Commissioning
Inspection Field Rep.
Loss Control
Training
Vehicles Maintenance
Drivers
Cleaning
Equipment
Guidelines
Instructions
Engineering Services Supervision of
Project Mgmt. For New
Construction
Revisions to Safety Equipment
66: Operate Vehicles
& Equipment
29: Construct/Modify &
Commission Support
Facilities and…
28: Engineer &
Design Support
Facilities
Consultation
Plant Tag
& Maps
69: Provide Safety
Management
7:Develop & Monitor
Engineering Design,
Construction & Material
Standards
Catering
Project Milestone
List of
Schedule & Expenditure
Equip/Tools
Pre-Qualified
Report
Malt.
Furniture
Satellite
& Space
Warehouse
(Mtrl. Control Unit)
List of
Products
Stationary
Petty Cash
Availability
Supplies
& Cost
Equip/Tools Malts.
44: Reclaim Material,
Equipment and Tools 45: Write
off and dispose of
Excess/Obsolete/Used
materials…
37
42:Procure Equipment,
Material & Services 43:Store,
Control & Issue Materials,
Tools, and Equipment
41: Pre qualify
Register Vendors,
Manuf. Contractor
40: Provide Office
Services
37: Procure Contracts
38:Administrator &
Manage Contracts
Figure 6: Processes into the Major Process (13)
And the following are the output of the process to other major process.
4: Prepare & Monitor
Operating Plans and
Their Accountability…
70: Create & Maintain
Drawing & Maps
69: Provide Safety
Management
5: Prepare & Monitor
Capital Plans/Budgets
& their Accountability…
Accountability
Report &
Justification
Updated
As-build
Drawing
Operating Fact Sheet
Plan Details
Completion
Certificate
Request for
Proposed
Drawing
Operating &
Response to Field
Inspection Report
Accident
Report
Vendor
Training
63:Communicate
Company Information
Activities…
62:Prepare, Review
and Issue Various
Report
Project
Estimates
Business Plan
Training
Nominees
Grans. &
Request For
Yearly
Mileage
Driving Test
Plan
Sheets Driving
Conceptual
Temporary
Design
Accommodations
Review
Coordination
Feedback on
Standard
5 Yr. Plan
Project
Punch List
Rulings (Exp.
Requirement for
VR Cap
Communication
Design &
Planning for new
Review
Systems
Materials
Approval
Design Review
(Cabling, Equip.
Billing
Location)
30:
Maintain
Support Facilities
56: Provide Training
Facilities and
Equipment
44: Reclaim Material,
Equipment and Tools 45: Write
off and dispose of
Excess/Obsolete/Used
materials…
38
Equipment Installation,
Relocation Replacement
Cabling
Approved BI
33: Operate
Communication
System
34: Maintain
Communication
System
SOW, Cost Est.
Drawings, etc.
Contract
Documents
Contractor
Complaints/Claims
System
Report
55: Provide Employee
Training Education
and…
31: Engineer & Design
Communication
System
Environment
(Cooling, Space, etc.
Status
Report
MIR/Workorder
Course
Evaluatio
Contractor
Forecasts
Name of
n
Evaluation
MDR Fixed
Vendors
Asset Form Tech. Spec.
OJT
Detailed
Review
Vendor
Information
Technicians
Suggestions
Training
Morning
PRNS/RMC
Nominees
Report
Spare Parts
CMR, Custodian
Equip. Repairs
Materials Release
Equipment & Facility
Career Dev.
Equip/Tools Malts.
Management/Repair
PCA/CAF
Evaluation
Requisition Slip
Telephony
Requirements
Exhibitions
29: Construct/Modify &
Commission Support
Facilities and…
28: Engineer &
Design Support
Facilities
27:Plan Support
Facilities and
Communication
Facilities
Propose Capita Plan
Safety Goals & Objective
66: Operate Vehicles
& Equipment
7:Develop & Monitor
Engineering Design,
Construction & Material
Standards
37: Procure Contracts
Auxiliary
Request
Contract
Document
Site Visits &
Contractors
42:Procure Equipment,
Material & Services 43:Store,
Control & Issue Materials,
Tools, and Equipment
Drawing
41: Pre qualify
Register Vendors,
Manuf. Contractor
40: Provide Office
Services
38:Administrator &
Manage Contracts
3.3.5 Interview the key People:
The communication is a major part in BPI. After establishing the
process model and boundaries, communication again should take place
by returning back to the key people to take their comments and
support of the models created to make sure of the work.
3.3.6 Selecting BPI Team Member:
The BPI project team is responsible for gathering information for
process
selection,
searching
for
leading
practices,
identifying
technological enablers, identifying the current processes, creating
new processes, performing business case analyses and creating
implementation plans. The membership of the project team is
specified by the Executive Sponsor and Process Manager, and should
be composed of team members possessing strong interpersonal,
project management, analytical and problem-solving skills, supported
with creativity and expertise in important business areas. The best
and brightest, the BPI team should consist of and they must be
able to work well together for the project to succeed. It is also
important at this time to identify several people who have to be
candidates to be as a project management skills and could become
the implementation project manager upon the conclusion of the
project.
39
The
team
should be cross-functional in its
composition. The
recommended team size was 13 members.
The team should be mix of people, the team should include:

Some individuals who actively use the process and work closely
with customers (front line employees).

Individuals
who
are
well respected
by their
peers
and
Department members.

Some
individuals
who
intimately
understand
the
current
process (experts – could be at any level in the organization)

Customers of the process (when possible) and suppliers (those
people who are involved with the process at the boundaries).

Some technical experts.

Some individuals who are completely objective toward the
process and outcome (core team can play this role).

Some individuals who are not familiar with the process (core
team can also play this role).
3.3.7 Creating Project Charter:
The key components of the project charter which was developed
include mission, scope of project, goals and objectives, deliverables,
roles and responsibilities, project milestone and finally assumption
40
and risk. The finding for "Maintain Support Facilities"
(13)
are as
follows:
I. Mission:
To ensure the following:
1. Reduced cycle time.
2. Efficient and optimum utilization.
3. Timely and appropriate level of service to customer.
4. A moderate and efficient budget.
II. Scope of the Project:
The staring and ending point of the process. The model and
boundaries are components help to define the project scope.
III. Goals and Objectives:
They were developed as follows:
1.
Minimize
and
optimize
time
can
be enhancing
the
maintenance process.
2.
Reduce Preventive maintenance costs by 15%.
3.
Improve response time to customer’s initial request and
reduce time to repair equipment by 20% (from customer
request to job completed).
41
4.
Reduce cost to repair equipment by 10% implement an
energy conservation program.
5.
Reduce
contract cost
for Janitorial & Landscaping
services by 5%.
6.
Clarify and document approved roles and responsibilities
for each Department involved in facilities maintenance.
7.
Acquire specified good quality materials on time at a
competitive price.
8.
Utilized the latest technology.
9.
Better utilization of existing resources.
10. Proved the best training, (multi-skilling), and latest
tools, instruments and equipment to improve employee
productivity.
11. Eliminate
the
duplication
of
stock
numbers
for
similar/same materials and spare parts.
12. Support qualified Saudization of the process.
13. Assure good quality of maintenance work (Preventive &
Corrective) to reduce equipment breakdown.
IV.
Deliverables:
The BPI project Team produced and maintained the following
deliverables through the duration of the project.
42
1. Overall project Work plan:

Comprehensive
schedule
of
critical
project
activities including: activity duration, resources
and responsibilities, decision point’s required and
key milestones.

Project Work Plan and Charter.
2. Weekly Status Report (WSR)

Weekly updated on project progress and issues
will be provided to the Executive Sponsor, Process
Manager
and
the
Strategic
Development
Department (SDD) Manager which the core team
came from.

Progress status against schedule.
3. Current State Presentation & Work Papers.
4. Leading Practices Report.
5. Future State Presentation & Work Papers.
The improvement opportunities offered by this project
will lead to a portfolio of change initiatives:

BPI
team
recommendation
for
major
process
improvements.

Leading Practices from both utility and non-utility
Companies to help the team to identify creative
43
practices
in
the
Maintain
Support
Facilities
process.

An
Express
Workshop
to
identify
quick
improvements within a key area of the “Maintain
Support Facilities” process.

Quick
Fix
action
items
for
obvious
quick
improvements (outside the scope of this BPI
project).
6. Business Cases and Implementation Plans for all BPI
Improvement Recommendations.
V. Roles and Responsibilities:
Four major parties are involved in this study. First is the
Executive Sponsor who is the Vice President Support Services.
He
is
responsible
for
the
project
vision
development,
communication of the project vision and purpose, resource
allocation, and sustained commitment to completed project.
The second is the process Manager. Manager Office Services
Department. He was selected since the major parts of the
project are functions and responsibilities of OSD. He is
responsible
for
identification
of
project
scope,
business
process attributes and high-level model and identification of
44
process owners and subject matter expect direction for the
project. The third partly, are the project team members who
are key individuals selected to participate in the BPI team
who are expert in the Maintain Support Facilities process.
They are responsible for the following:

Commit to the entire project time frame.

Participate in the development of the Project Charter.

Gather process data.

Participate in BPI Team meetings and recommend
improvements to the process.

Participate
in
Leading
Practices
site
visits
with
Companies outside or SEC-ERB.

Communicate continually with their management and
peers on the status of the BPI project.

Participate in Presentations.
The fourth party is the BPI Core Team who in responsible for
project
management,
data/information
facilitation,
supplied
by
and
SEC-ERB
evaluation
of
resources
for
appropriates, reliability, and reasonableness. Responsible for
analysis of date, documentation of assumption, orchestration
45
of
communications,
facilitation
of
organizational
change
management strategies, and preparation of final deliverable.
Subject Matter Experts/Past Time Participants (SMEs) those
are key people who participate on an as-needed basis to
provide information offer their opinions based on experience,
so, they are not considered as a major party.
VI. Project Milestone:
The following table highlights the major phases of the
project. Most of the current state require from the team to
attend one day per week. For 8 hours. Then team member will
be participating full time in last two week in the current
state. For the future state the team on average will meet for
full time 4 days a week and the remaining one day for 8 hours
will be available for the team to collect date and communicate
with key people in the Maintain Support Services Process.
46
Table 4: Project Milestone
(13)
Milestone Event
Start Date
Finish Date
Project Kick-off & Training
Finalize & Communicate a “Project Charter”
for the project (This document)
Current State Process Mapping Workshops
& Activity Modeling
Customer Interviews
22 Jum. II Oct 2
22 Jum. II Oct 2
18 Raj., Oct 27
18 Raj., Oct 27
29 Jum.II Oct 9
30 Ram., Jan 5
21 Rajab, Oct 30
2 Shaban, Nov. 10
Current State Presentation Workshop
29 Shaw., Feb. 5
29 Shaw., Feb. 5
Current State Final Presentation
3 Dhu-Q., Feb. 9
3 Dhu-Q., Feb. 9
13 Dhu-Q. Feb. 19
17 Dhu-Q., Feb. 23
25 Muh., Apr. 29
25 Muh., Apr. 29
4 Safar, may 8
4 Safar, May 8
12 Safar, May 16
12 Safar, May 16
Future State Design Workshop Sessions
Future State Presentation
Future State Presentation
Sponsor, Process Manager
Future State Presentation
Workshop
to Executive
& Invited Guests
to SEMC
VII. Assumption and Risk:
The success of this Project is at risk if the factors that are
basic to its development do not exist or cannot be secured.
One of the most important techniques of minimizing these
risks
is
the
early
establishment
of
clear,
quantifiable
Objectives and Goals by the Project’s Sponsor. Frequently, a
root cause of failure is related to erroneous assumptions
about available funding, realistic goals, accomplishments and
results, external influences that could negatively impact the
Project, and available resources. Therefore, the most critical
requirements and factors in this Projects are
(13)
:
1. A clear understanding of the Mission, Objectives and
Goals that is shared by all participants.
47
2. Securing long-term support and commitment, including
funding, from all levels of Management.
3. The availability of highly knowledgeable Team Members
in all aspects of the Process.
4. Coordination of this Project with other priorities.
5. Successful
implementation
of
any
technology
enhancements that may apply to this Project.
6. Constant communication and feedback.
3.3.8 Developing Detailed Work plan:
The core team is to develop a work plan for the team and for the
Project each day activity for the whole project period. It is very
difficult to be very accurate in doing such plan but it can be
modified each time it needs modifications.
3.3.9 Provided Team with Overview and Kick-off Project:
The previews project team member will be invited to share with
team their experience and feeling and the team will be provided
with an overview of the project.
48
This will end up the first phase, which is the start-up and
preparation phase. And the project is ready to start the current
state phase.
3.4 Current State Phase:
3.4.1 Introduction
Every organization is a collection of processes, both technical and
administrative in nature. The nature of processes is the real
activities and its related information as data that the Company
does in order to perform the final aim or the goals. Hence,
current state is the phase where the assessment of the process
takes place, which require from the team a lot of analytical
thinking. The team will combine their collective knowledge with key
process date to develop an understanding of the process.
Moreover, rest of the project study there will be explanation of
all phases’ detail. However, there would a concentration on one of
the six sub-process shown earlier in models, relating the collected
dated to that particular sub-process. This will help us to study
the affect on each particular sub-process.
49
Finally, the team starts the project by finalizing the project
charter “process model, boundaries, etc.” in orders everyone to
convinced of the study material.
In this report, there would be more concentration of sub-process
3 “Perform Corrective Maintenance”. The reason why it is selected
since it is the heart of support services activity, which is also is
the main function of the support services. Also, due to the size
limitation of the study.
3.4.2 Process Mapping and Value Analysis
Also called process mapping, the objective here is to clearly define
how the process functions. The major objective of Process flow
diagramming is to document the process and get agreement as to
who does what in the current business process. A Process Flow
Chart is a pictorial representation of a process, using a variety of
symbols connected by lines and arrows. A Process Flow Chart
provides
a
clear
picture
of
each
stage
of
a
process,
the
interrelationship between stages of the process, and the direction
of the process flow. There are a few basic symbols that should be
understood prior to starting the flow charting process. These are
(9)
rectangle which generally used to identify a process activity, or an
50
action step, in the overall process. Activities such as painting and
repairing are examples of activities that could be represented by
the rectangle. The diamond is used to indicate a decision required in
the process. The information contained in the diamond generally
takes the form of a question. Decisions such as "make or buy,"
"repair or replace," and "ship or stock" are represented by the
diamond Most Flow Charts constructed by a BPI team will be done
at the activity level. However, sometimes more detail is needed and
the Team may decide to work at the task level. Value analysis
identifies activities, which are conducted for the benefit of the
customer, and activities, which are important for running the
business, or rework is necessary.
Value added activities (customer importance) focus on meeting
customer needs. Non-value added activities (business importance) it
is done for ourselves to run the business or to correct problem.
Hence, value added criteria:
-
Activity is important to the customer?
-
Activity produces a physical change to the product?
-
Activity is done right the first time?
51
There are three levels of process detail as follows:
-
Sub-process level: usually is a major part or macro level view
of the process. Usually by senior management.
-
Activity level: usually activity is a major job but falls between
macro view and the fine detail of the process.
-
Task Level: This part where fine or detailed picture of a
specific portion of the service process, is usually use by the
team to develop the process map.
From the process map for sub-process 3, the picture become
clearer of how it is alone and to how much detail the team reached.
Development of process map took some time since different task
and
activities
and
procedures
are
taken
place
by
different
Departments. Hence, incorporating all these differences in one map
is not an easy job. The process map explains the sub-process 3
from start up to the end and in between is the activities and tasks
performed by each Department in order to perform corrective
maintenance. Some activities depend on other processes like here,
there is a dependency if the corrective maintenance will be
performed need material or not. If
there is a need for preparing
of the material or ordering material it depends now on sub-process
5 “Acquire Equipment & Material/Spare Parts” which is a lengthy
52
process and if is not done right the material delivery will be late
and consequently the corrective maintenance would be also late.
The second step is the decision whether task or activity is a value
added or non-value added (earlier explained). In the process map
for sub-process 3 it was decided by the team that only two
activities are value added and the rest are non-value added. The
two activities are receiving complaint/request since it will affect
directly the customer and executing the requested job or work. The
other will not produce any physical change to the customer.
53
Figure 7: Process Map for Sub-Process 3 " Corrective Maintenance" (13)
Received
Complain/Request
Start
Is it
Emergency?
VA
Collect Materials
Restricted
Area
Yes
No
NVA
Yes
Go To SubProcess 5
NVA
Prepare Material
Request
No
Obtained
Work Permit?
Get Tools
Yes
Are Materials
Required?
NVA
NVA
No
No
Travel to Site
END
Execute the Work
Requested
Close Work Order
NVA
Input Actual
Man-hour in the
System
NVA
High &/or Medium FTE amount
Out of Scope Activities
Value Added Activity
54
NVA
Plan, Manpower
and Materials
(Estimates)
Assign the Work to
Technician
NVA
NVA
Found
Additional Work
Needed?
VA
NVA
Prioritize and
schedule work
Open Work Order
NVA
NVA
NVA
Obtain Work
Permit
Inspect
Complain/Request
Travel to Site
No
Close Work Permit
NVA
Yes
Inform Foreman
NVA
Figure 8: Process Map for Sub-Process 5 "Acquire Equipment & Material/Spare Parts"
(13)
High &/or Medium FTE amount
Out of Scope Activities
Value Added Activity
Technical List
Material Requirement
(Inc. Furniture &
Capital Budget)
Is a Satelite
Warehouse
Available
Start
VA
Technician Prepare
Dept. Req. Slip &
Gain Approval
Check Stock Number
(Catalog/MMS)
NVA
NVA
Availabile in
Dept./Satellite
Warehouse
Material Man Check
for availability
Submit to Material
Unit/Store
VA
No
NVA
Check on CRT
SIRS/MIMS System
NVA
Reorder Again
Return/Short
Materials
Return Material to
MMD Warehouse
(Only RTI for
Short)
NVA
NVA
Follow-up with
MMD claim unit for
Replacement
NVA
Correct/
Complete
VA
NVA
Receive
Defective/Damage
Materials/Spare
Parts and Disposae
by MDR to MMD
Correct/
Complete
NVA
VA
NVA
NVA
Sign CAF and Give
Orig. to Vendor and
Process others
Payment & Record
Y
es
Sign DRR, Submit
Copies to Concerned
persons
Receive Material and
Check for
Correctness
NVA
VA
Type/Prepare CAF
and Gain Approval
Availabile in
Dept./Satellite
Warehouse
No
NVA
If P.O. Overdue,
Follow-up with
Expediter
NVA
Check P.O. in SIRS
for Delivery Date,
Update Outstanding
Matl. Record
NVA
Evaluate
Consumption to
Maintain Stock Level
Enter Transactions in
Dept. Matl. Control
PC Program
NVA
NVA
Evaluate and Approve
Quotations from
Buyer/MCD and
Return
NVA
Follow up with Buyer
if no info. On SIRS
After Bid Date
55NVA
NVA
Rush MPR
Emergency
20%
95%
Gain Approval and
Print to MMD
Available in
PCA
Aggreement?
Yes
NVA
NVA
5%
Propose to Stock
(Dept. Store, MMD,
PCA)
VA
Yes
NVA
Contact Vendor for
Delivery of Material
NVA
Receive Matl. On
DPR and Check
Warehouse Clerk Fill
Out MIR in SIRS or
MIMS on CRT
Gain Approval from
Approval Authority
Print MIR
Check PCA
Agremennt
NVA
No
Department Pick Up
Material from MMD
Warehouse were it is
Available or MMD
Transfer to near Werh.
Check if Correct, not
Damaged or Short
Issue to
Technician
Receive and Check
NVA
Complete RVR &
Send MMD Claim
Unit
Make RTI for
Wrong, Damage
or Short
Purchase with Petty
Cash
Gain Approval (upto
2000 SR)
Not Stockable
with MMD
Evaluate Req. for
Emergency or
Routine (Judgment by
Foreman)
NVA
Routinewith
80%
NVA
Full out MPR on
MMD SIRS
Electrically
Yes
3.4.3 Collecting Detailed Sub-Process Data:
Every process improvement relies on data to provide a factual basis
for making decisions. Data collection enables BPI team to formulate
and test working assumptions about process and develop information
that will lead to the improvement of the product and services. The
first step is to gather data about each department. The team
leader will brainstorm the team for defining the data needed to be
collected. Hence, each member in each department went back and
gather data and constructed a table containing the data such as
how much it cost each department to provide the service, number of
preventive maintenance, number of customers requests, total copies
made, etc.
The following table containing those data:
56
Table 5: Process Data
(13)
Data Description
Annual Cost Data
Food Allowance
Housing
Landscaping Plants
Tool Repairs
Equipments Repairs
Maintenance Contracts
Safety Gear
Tool Replacement
Training
PM Materials
Vehicle Use
Landscaping Services Con.
Facility Modification
Corrective maint. Materials/Spare Parts
Contract Labor Cost
Equipment replacement
Janitorial services Contracts
OSD Data
Total
Data Description
8,000
10,000
16,000
3,000
5,000
33,000
59,000
126,000
94,000
253,000
784,000
2,296,000
3,332,000
3,140,000
4,847,000
3,491,000
9,017,000
27,514,000
OSD Data
GD Data
PTD Data
ITD Data
TCD Data
RMD Data
GPPD Data
N/A
N/A
N/A
12,750
9,300
79,500
59,736
12,000
20,000
10,000
N/A
13,000
10,000
100,000
496,309
140,000
N/A
41,892
35,120
635,000
543,000
300,000
523,616
N/A
780,000
2,131,286
N/A
480,000
2,092,925
4,263,000
437,000
20,000
4,555,790
571,512
26,000
390,000
441,000
GD Data
PTD Data
ITD Data
TCD Data
RMD Data
GPPD Data
4-5 times per
year
pc - 2/yr PC
printer-2/yr
Monitor - 1/yr
Mainframe
Printed - 4/yr
2,500
36,000
20,000
1,500
6,000
3,000
32,000
292,790
3,500
10,000
Other Data Collected
Frequency of breakdown for various types of equipment
Number of P.M. Performed Per Year
Total Copies Made
Average Response Times to Customer Request
6
29,325
20,864,124
1,690
5,554
1 hr
1 day
30 Minutes
Inventory Levels (SR Value)
# Forms Used
357,000
29
5
N/A
50
# Customer Requests for Maintenance/Repairs
12,985
744
766
Cost of maintenance per customer request
# of Short from contracts approved
# of Long Form Contracts Approved
Average Long Form Contract Duration
Average Short Form Contract Duration
# of Procurement Contracts (SFC + LFC)
# of Telephones Current & Future
# of Computers/Peripherals Current and Future
Department Breakdown
OSD
GD
PTD
ITD
48
9
Const.= 21 wks
Service = 4 yrs
3 months
57
3,185
6
2
1,607
1 hr to several
days
150,000
3
1284 Hardware 336 Software
900
27,514,000
2,131,286
2,092,925
4,555,790
1-3 hrs
5,107
5
7
More than 2000
Expenditures
40
# PMs
Performed
29,325
1,690
5,554
Cust. Request
12,985
744
766
1,620
57
5000/6000
63
300
Total
8,000
10,000
16,000
23,000
65,392
68,120
84,750
181,300
293,500
813,545
936,000
2,328,000
4,267,000
4,512,906
4,847,000
8,211,000
10,667,000
37,332,513
Second step in this section, is measuring the process cycle times for
each sub-process. Cycle time is a measure of the actual elapsed
time it takes a request to be filled or a job to be done including all
queue time, downtime, etc. it is basically stop time minus start
time. By averaging the cycle times of a sample measures, the
average cycle time for the job can be calculated. Cycle time
includes time it takes to complete activity, down time and time
between activities or process. By studying Sup-Process 3 "corrective
maintenance", it was subdivided into four main areas that are doing
the job separately: Generation, Transmission, Headquarters and
Operating Area.
Then, each area will group main activities they do until they
implement the job and putting the time cycle it takes to do the
activities under it. .The following is a process cycle time for subprocess 3:
58
Figure 9: Sub-Process 3 Cycle Time
(13)
General Facilities
Receive
Complaints/
Request
Open
Work Order
Assign Work
to Technician
Obtain Matls.,
Work Permits
and Tools
Travel to the
Site
Complete
Corrective
Maintenance
Close Work
Order
15.25m
1h-3h
10m-3h
30m-32h A=8h
Transmission Facilities
Receive
Complaints/
Request
Open
Work
Order
Assign
Work to
Technician
Obtain
Matl.,
Equipment
and Tools
Get Work
Permit or
Permission
from
Dispatch
Travel
to the
Site
Complete
Corrective
Maintenance
Release/Close
Work Permit or
Permission
Close Work
Order &
Travel Back to
Office
20m
60m
35m
32m
45m
Headquarter Facilities
Receive
Complaint
Initiate CM
Work order
Inspection by
Technician
Obtain
Materials
Implement
Corrective
Maint. Work
Submission &
Work order
Closing
15m
2h
15m
Operating Area Facilities
Receive
Complaints/
Request
Open
Work Order
Assign Work
to Technician
Obtain Matls.,
Work Permits
and Tools
Travel to the
Site
Complete
Corrective
Maintenance
30m
3h
30m
30hr
59
Close Work
Order
Last Step in this section, is measuring the Full Time Equivalent (FTE).
This is a measurement of manpower costs in terms of man-hours and it
is called FTE consumed by each activity or Sub-Process. FTE is
equivalent to man power working 8 hours a day for one full week.
1 FTE = 40 hours
This amount of man hours consumed in the Major Business Process is
done by identifying the number of people who fill positions for that job
title. Then by asking as ample of the people who work in the job title
to identify the percentage of their time they spend in each SubProcess.
By
taking
Northern
Area
Office
Services
Department
(NAOSD) as a sample of how the calculation of FTE take place. In the
next figure all FTE's documented in away NAOSD list all it job titles
and number of employees filling the job tittles. Then, in each SubProcess as discussed earlier to measure how much time they are
spending in performing that specific Sub-Process such as in SubProcess 1 it is consuming 2.1 FTE's.
So, total FTE's this job title is consuming to serve all the six SubProcess amounted to 4.8 FTE and by dividing each Sub-Process FTE
by this figure, the percentage FTE for each Sub-Process is
computed and finally by delivering the actual FTE each job title by
the total FTE's available for that specific job title and in the case
60
of A/C Technician it completed to be 60%. And by computing all
departments FTE's involved as seen in the following figure, the total
positions involved in performing all the six Sub-Process amounted to
537 position with a total FTE amounted 413.7
61
Pos
%
FTE's in Maint. Supp. Facil.
% in Maintain Supp. Faci.
# of People in Position
Figure 10: Northern Area Office Services Department (NAOSD) FTE
(13)
Sub-Process #1
Perform
Preventive
Maintenance
Sub-Process #2
Sub-Process #2
Sub-Process #2
Sub-Process #2
Repair/Replace
Office Equipment
Repair/Replace
Office Equipment
Repair/Replace
Office Equipment
Repair/Replace
Office Equipment
Sub-Process #3
Perform
Corrective
Maintenance
1.0
2.1
2.2
2.3
2.4
3.0
Perform
Preventive
Maintenance
R/R Office
Equipment
Media Equipment
Maintenance
Telecommunication
Equipment
Maintenance
Computer &
Peripheral
Repair
Perform
Corrective
Maintenance
on Equipment
& Utilities
FTE
Department/Division
FTE
%
2.1
2.1
0.8
0.4
0.45
0.45
0.20
0.20
0.3
0.20
0.1
0.05
0.1
0.05
0.7
0.20
0.2
0.05
0.2
0.05
FTE
%
FTE
%
FTE
%
%
FTE
%
0.1
0.05
1.7
1.7
2.6
1.1
1.0
0.3
0.35
0.35
0.60
0.65
0.85
0.20
0.2
0.05
0.8
0.25
0.2
0.05
0.1
0.5
1.3
0.1
0.3
0.10
0.85
0.75
0.30
0.30
FTE
NAOSD
8
8
6
3
2
3
20
1
2
4
0.60
0.60
0.70
0.60
0.60
0.60
0.60
0.2
0.4
3.6
4.8
4.8
4.2
1.8
1.2
1.8
12.0
0.2
0.4
3.6
6
3.0
3.0
1
1
3
1
1
10
0.8
0.6
1.8
0.4
0.9
9.0
0.8
0.6
1.8
0.4
0.9
9.0
A/C Technician
Building Electrician
Building Maintenance Specialist
Building Maintenance Technician
Carpenter
Clerk
Contractor
Draftsman
Engineer
Foreman
Gardener
Inspector
Janitor
OSD Manager
Painter
Plumbers
PM Coordinators
Superintendent
Supervisor
51.3
Sub-Total
80
0.1
0.10
0.3
0.2
0.70
0.20
7
0.1
0.10
0.05
0.05
0.05
0.4
0.05
0
62
0.1
0.3
0.10
0.05
0.4
11.7
Figure 10: Northern Area Office Services Department (NAOSD) "continued"
Sub-Process #4
Sub-Process #4
Sub-Process #4
Facility
Maintenance
Facility
Maintenance
4.1
Sewer System
Maintenance
FTE
%
0.1
3.0
0.05
0.25
0.1
0.2
0.15
0.05
Facility
Maintenance
Sub-Process #5
Acquire Eqp. &
Materials/Spare
Parts
Sub-Process #6
Provide
General
Services
4.2
4.3
5.0
6.0
Upgrading
Landscaping
Facility
Maintenance
Acquire
Equipment &
Materials/Spare
Parts
Conduct
Landscaping
& Janitorial
Maintenance
Activities
FTE
%
0.1
1.8
0.1
0.1
0.4
0.05
0.15
0.25
0.3
0.10
0.2
0.05
0.1
0.10
0.1
0.10
0.1
0.05
0.1
0.05
0.9
0.05
0.10
1.4
0.05
0.15
4.5
4.3
FTE
0.3
7.2
0.1
0.2
0.4
%
0.15
0.60
0.75
0.55
0.10
FTE
%
1.0
1.0
0.8
0.3
0.2
0.3
0.20
0.20
0.20
0.15
0.15
0.15
0.1
0.05
0.3
0.10
0.2
0.05
1.00
0.90
1.00
FTE
2.6
0.1
0.1
0.10
0.10
8.4
%
0.1
0.1
0.2
0.10
0.15
0.10
0.1
0.05
0.1
0.5
0.10
0.05
0.2
6.2
0.15
0.70
4.9
63
Total
9.4
4.8
4.8
4.2
1.8
1.2
1.8
12.0
0.2
0.4
3.6
3.0
0.8
0.6
1.8
0.4
0.9
9.0
51.3
# of People in
Position
TE's In Maint.
Shop Facil.
Figure 11: All Departments FTE's
NAOSD
80
51.3
HQOSD
63
52.3
HAOSD
128
111.1
OSD/ERU
11
10.0
DAOSD
75
67.0
MSU
7
7.0
OSD/TSU
9
7.6
OSD Totals
373.0
306.3
DATD
18.4
HATD
16
11.5
NATD
16
11.3
PTD Totals
57
41.2
25
Sub-Process
#1
Sub-Process #2
Sub-Process #2
Sub-Process #2
Sub-Process #2
Sub-Process
#3
Sub-Process
#4
Sub-Process
#4
Sub-Process
#4
Sub-Process
#6
Perform
Preventive
Maintenance
Repair/Replace
Office
Equipment
Repair/Replace
Office
Equipment
Repair/Replace
Office
Equipment
Repair/Replace
Office
Equipment
Perform
Corrective
Maintenance
Facility
Maintenance
Facility
Maintenance
Facility
Maintenance
Provide
General
Services
1.0
2.1
2.2
2.3
2.4
3.0
4.1
4.2
4.3
6.0
Perform
Preventive
Maintenance
R/R Office
Equipment
Media
Equipment
Maintenance
Telecommunication
Equipment
Maintenance
Computer &
Peripheral
Repair
Perform
Corrective
Maintenance
on Equipment
& Utilities
Sewer System
Maintenance
Upgrading
Landscaping
Facility
Maintenance
Conduct
Landscaping
& Janitorial
Maintenance
Activities
Total
7.0
0.4
0.3
0.4
11.7
4.5
4.3
8.4
9.4
51.3
1.1
1.2
16.9
0.8
4.5
6.9
2.2
52.3
22.5
0.7
1.2
3.9
13.9
111.1
14.1
0.6
55.8
2.6
7.3
19.8
4.5
10.0
28.3
3.2
1.3
0.1
2.7
67.0
7.0
7.6
99.3
12.2
0.6
1.4
1.6
79.4
9.2
11.3
7.6
26.9
28.2
306.3
6.7
5.6
2.9
1.7
18.4
4.3
3.3
1.8
1.1
11.5
4.3
3.4
1.8
1.0
11.3
6.5
3.8
41.2
15.3
0.0
0.0
0.0
0.0
12.3
0.0
0.0
GD
54
17.7
3.4
10.9
17.7
ITD
3
1.2
1.2
1.2
RMD
3
0.5
0.1
47
46.8
8.7
537
Total
413.7
0.4
0.5
TCD
126.8
36.3
12.2
1.0
37.7
46.8
2.8
64
102.6
9.2
11.3
33.4
32.0
413.7
3.4.4 Conducting Customer Surveys:
After developing the charter and developing the process maps for
each sub process agreed on the beginning of the study, a scheduled
meeting with invited guests from different departments. More than
100 employees were invited to share their opinion about the process
map and to share with them for their issues and concerns. The
whole project depends on discussion and feedback. So, this is only a
step in several steps in discussing most of the project results with
user of the service and who are implementing the service. The
results of these meeting resulted of more than 1,000 issues and
concerns.
In table 6, the first column is the serial number of the issue or
improved
recommendation
and
the
second
column
is
the
recommendation. The third column concerns the team of identifying
where this recommendation is related to which sub process. The
fourth deciding whether it is an issue, improvement (I) or it is a
recommendation
(R).
The
fifth
deals
with
deciding
if
this
recommendation or issue affects quality (Q), cost (C), cycle time
(CT) or safety (S). The last column is the department name that
gave the recommendation. The table is arranged in sequences and in
order of the sub processes.
65
Understanding customer requirement, values and current level of
customer satisfaction are key features in describing the current
process. This is a critical aspect because anticipation and exceeding
these objectives is a fundamental aspect of BPI. Here only
tabulated categorized the issued and concerns about sub-process 3.
66
Table 6: Issues & Improvement Identified by the Customers & the Team
SubProcess
/Minor
Process#
Customer & Process Issues/Improvement
Issue or
Improv.
Recom.
Quality,
Cost, Cycle
Time of
Safety
(13)
Department
Issues and Recommendation for Sub-Process 3 – Perform Corrective Maintenance on Equipment & Utilities
31
Materials should be available locally for the
equipment being purchased
3
I
C
MMD
39
Some fire station equipment, air, compressor,
recharging equipment, generators, etc repairs usually
cost more than the replacement of equipment at the
generation workshop
3
I
C
ISD
70
Some duplicate work is being provided by us (ISD)
and OSD on fire equipment
3
I
C
ISD
184
Study the sweet water provision to eliminate water
hauling to different SCECO sites
3
I
C
TD
397
Time and labor cost in obtaining spare pats
3
I
C
Team
401
No over time available for corrective maintenance
3
I
C
Team
405
Limitation on petty cash
3
I
C
Team
413
Lack of power tools
3
I
C
Team
3
I
C
HOA
623
5
Not satisfied with the repair of generators when it is
sent for repair to CSU. Spare parts and labor was
very expensive most of the time. A longer generator
must be provided
Response time for maintenance is problem
3
I
CT
MMD
51
Maintenance requires manager approval on the form
and it is not necessary to get management approval
3
I
CT
MMD
62
The lighting system at the office and the gates are
not sufficient and it takes one to two weeks of repair
3
I
CT
ISD
67
There is along process for the repair of A/C unit and
there is no replacement unit provided
3
I
CT
ISD
81
In very remote areas, equipment needs to be
transported to a workshop in Dammam which is very
far away
3
I
CT
ISD
89
There are problem with work permit in the process
3
I
CT
ISD
107
The response time for electrical services is slow. We
expect to have same day service
3
I
CT
ITD
131
Relocation of equipment from building to building or
from cars to building takes a lot time and some times
you have no one to do it
3
I
CT
TED
151
OSD should be more initiative rather than waiting for
corrective maintenance request
3
I
CT
SOD
384
Limited O.T. which delays in performing work
3
I
CT
Preparation
386
Spare parts are unavailable which delays repair
3
I
CT
Preparation
389
Long procedure to obtain budget item for emergency
repairs
3
I
CT
Preparation
390
Lack of supervision make unawareness of completion
tasks by technicians
3
I
CT
Preparation
395
Obsolete equipment
3
I
CT
Team
396
Unavailability of spare parts
3
I
CT
Team
403
No bill of material provided
3
I
CT
Team
Given wrong parts to perform repair
3
I
CT
Team
410
Delays in repair of equipment
3
I
CT
Team
411
Distance to equipment needing repair
3
I
CT
Team
67
412
Lack of transportation
3
I
CT
Team
415
Delays in obtaining work permits
3
I
CT
Team
416
Delays in obtaining gate passes
3
I
CT
Team
417
Difficult to get temporary access for vendors
3
I
CT
Team
544
When making a request to fix something in HQ clinic
conference room, it will take time before the
maintenance people do it, such as requesting to
change busted lights or fixing the dimmer
3
I
CT
HSD
614
Repair of window A/C takes too long to receive when
it was send to OSD
3
I
CT
GPPD
23
When a request is sent for maintenance, no response
is received and the requestor is not sure who to
follow-p with
3
I
Q
MMD
24
When a request is sent for maintenance, no response
is received and the requestor is not sure who to
follow-p with
3
I
Q
MMD
43
No on-call list is available for OSD. OSD says there is
no overtime but we work 24 hours in a day
3
I
Q
ISD
44
No on-call list is available for OSD. OSD says there is
no overtime but we work 24 hours in a day
3
I
Q
ISD
48
When requesting maintenance for A/C it is taken
away and not replaced for few days. There should
always be a replacement
3
I
Q
ISD
49
Some time there is not enough air-conditioning to cool
the aerator comfortable temperature
3
I
Q
ISD
50
Air conditioners are installed too low and blow on the
guards making them sick. Split A/C should be used
3
I
Q
ISD
55
There is no clear responsibility for the maintenance
of some equipment
3
I
Q
ISD
57
It is not clear where to send request for design and
maintenance
3
I
Q
ISD
58
Qurrayah PP is having some difficulties with
maintenance. OSD does not cover some of the unit.
PTD and GD provide courage. Service can not be
provided when needed
3
I
Q
ISD
60
Replacement A/C is not available when the unit goes
down
3
I
Q
ISD
61
Drop gates take one to two months to get repaired
3
I
Q
ISD
68
Sometimes the department fixes the Air-conditioning
unit or removes it for repair because no maintenance
crew is available
3
I
Q
ISD
71
No inspection and calibration is performed for
testing / analysis equipment which are very sensitive
devices
3
I
Q
ISD
74
The MORRIS patrolling system which register the
patroller during his route has no department assigned
for maintenance
3
I
Q
ISD
82
Ghazlan PP will have an integrated system and it is
still not clear who will be responsible for the
maintenance and repair
3
I
Q
ISD
86
No maintenance coverage is available in off hours
even for emergencies
3
I
Q
ISD
91
The toilet should have a good exhaust/ventilation
system
3
I
Q
TRD
68
106
We are getting a good response to the maintenance
of specialized A/C equipment used for the
maintenance
3
I
Q
ITD
116
The building and facilities of SECTI is deteriorating
and TED feel that they have to point out problem to
OSD, such as cracks, curtains are falling, A/C
balancing. Etc. TED believes that OSD should take
the initiative instead of waiting to be called
3
I
Q
TED
119
A letter given to OSD to fix the A/C system (hot
areas/cold areas and balancing) they came, fixed the
manager room and left the rest of the building
3
I
Q
TED
157
Lighting at PCC is not adequate, we have raised this
point so many times but no response from OSD
3
I
Q
SOD
158
Some of the light tubes are Whitish and others
bluish
3
I
Q
SOD
159
Light tubes are not changed before it fails
3
I
Q
SOD
172
Don’t leave things to janitorial & landscaping
inspectors, OSD inspectors should do the inspection
3
I
Q
SOD
178
Some of the workshop A/C have no redundancy
3
I
Q
TD
190
The capability of OSD A/C technicians is
questionable
3
I
Q
GD
199
Windows type A/C unit is frequently breaking down
especially the one installed in gas turbine. Even when
the defective parts are replaced (several times) the
problems reappears after a few days
3
I
Q
GD
200
The quality of repairs is poor and it is recommended
to replace instead of repair
3
I
Q
GD
201
Water heaters are frequently out of service
3
I
Q
GD
382
No clear procedures only use our experience
3
I
Q
Preparation
383
Lack of experienced technicians
3
I
Q
Preparation
385
Lack of tools and equipment to perform the work
3
I
Q
Preparation
387
Employee training is not keeping pace with the
advances in equipment
3
I
Q
Preparation
388
No as built drawing provided for equipment
3
I
Q
Preparation
391
Assignment of improper individuals to execute the
task
3
I
Q
Preparation
392
Improper quality of spare parts
3
I
Q
Preparation
393
Manuals are not being provided by contractors to
maintain new equipment
3
I
Q
Preparation
394
Manpower limitation and equipment numbers
continued to expand
3
I
Q
Team
398
Shutdowns the customer
3
I
Q
Team
402
Lack of training on equipment repair & trouble
shooting
3
I
Q
Team
404
Lack of expertise
3
I
Q
Team
407
Not following the prioritization of the work
3
I
Q
Team
408
No appraisal for the worker
3
I
Q
Team
409
No proper supervision or guidance of the work
3
I
Q
Team
414
Harsh weather
3
I
Q
Team
418
Repair requires shutdown of equipment
3
I
Q
Team
3
I
Q
GDD
530
Turn over of facilities maintenance at Qurayyah PP to
OSD was a good decision by management since PP
maintenance are dedicated to power plant jobs
The managers office and network room has the same
duct, however, the cooling requirement for both room
is different
3
I
Q
GDD
536
69
541
No expert personnel to do the water treatment in the
R.O plant
3
I
Q
HSD
542
No correct procedures in hiring R.O. plant personnel
3
I
Q
HSD
546
The complaint desk at 6323 always mentioned lack of
manpower when requesting for service
3
I
Q
HSD
547
No water in some of the bathroom
3
I
Q
HSD
548
Lights are always busted, nobody is attending to them
except when somebody request them to be fixed
3
I
Q
HSD
551
No body is repairing water leakage in bathroom which
has a bad smell or order
3
I
Q
HSD
597
Phase III, 2nd floor has climate control problem. It is
either too hot or too cold
3
I
Q
DED
601
Hot water in drinking fountains is rusty
3
I
Q
DED
615
He is skeptical of the transfer of facilities
maintenance to OSD
3
I
Q
GPPD
633
Problem with the A/C in Jubail & Ghazlan are
Substations for the last year
3
I
Q
TCD
635
Some locations have bad lights and when burnt out
they are not changed for a month
3
I
Q
TCD
73
High voltage testing gloves need to be tested but
ISD does not have the equipment. Transmission has
the equipment to test the gloves
3
I
S
ISD
37
Power plant and transportation have workshop which
could be used for facilities maintenance
3
R
C
MMD
584
Entering all facilities equipment in order to request
them
3
R
CT
QPPD
147
HQs. Substation should be improved so that it should
have redundancy
3
R
Q
SOD
559
Cafeteria inspector must be expert on foods,
sanitation etc.
3
R
Q
HSD
583
All SCECO organization should be maintained by one
organization
3
R
Q
QPPD
3.4.5 Root Cause Analysis:
All activities that have been identified as Non-Value Added need to
be
analyzed
to
understand
the
underlying
reason
for
their
existence. To identify opportunities to reduce the work effort
involved this better done by understanding of each activity will allow
the team to challenge the need for the activity. The basics of
conducting root cause analysis is to always to ask “Why”? That’s the
70
key to finding the root cause (or causes) of an activity. The team
identified 22 root causes to respond to any question why?
And these are the following:
1.
Required by Policy
2.
Required by Procedure
3.
Rework
4.
Lack of Automation
5.
Approval Authority
6.
Inspection
7.
Non-Standardization
8.
Paperwork, Report
9.
Required by Outside Agency
10. Incomplete Information
11. Inadequate Tools and Equipment
12. Low Skill Level/Limited Resources
13. Coordination
14. Planning Purposes
15. Long Travel Time
16. Poor Quality Material
17. No Operating Manuals
18. Interruptions
71
19. Material no Available/Not Stock Item
20. Weather
21. Training
22. Cost
After that in the root cause analysis for each sub-process the
activities were listed in the first row end then the second row the
importance of this activity for the sub-process to be done and
implemented. Then, taking whatever has been agreed on previously
in the process map and value analysis and putting for each activity
if it’s value added or non-value added. The last rows are listing for
each activity the matching root cause listed previously.
For example, in sub-process 3 in activity 2 it is of medium
importance, Non-Value Added and it has three root causes:
6 – Inspection
12 – Low skill level/Limited Resources
15 – Long Travel Time.
As shown in Figure No.12
72
Figure 12: Sub-Process 3 Root Course Analysis
(13)
Sub-Process 3 Perform Corrective Maintenance on Equipment & Utilities
Activity 1
Activity 2
Activity 3
Activity 4
Activity 5
Activity 6
Received
Complaint/Request
Travel to Site
Inspect Complaint/Request
Open Work Order
Prioritize and
schedule work
Plan, Manpower and
Materials (Estimates)
L
M
L
L
L
M
NVA
NVA
NVA
NVA
NVA
RC: 2
RC: 3
RC: 4
RC: 5
RC: 6
Req. by Procedure
Low Skills/Limited
Resources
VA
RC: 1
#N/A
Inspection
6
To inspect the work and
perform the
14
Planning Purposes
Planning Purposes
14
2
To trouble shoot the problem
To schedule the job
No clear guidelines
RC: 3
RC: 4
RC: 5
RC: 6
Req. by Procedure
Low Skills/Limited
Resources
Low Skills/Limited
Resources
12
Lack of materials and labor
job
RC: 1
#N/A
RC: 2
Paperwork/Reports
12
Manual Paperwork
Incomplete Information
10
2
to document cost,
material, labor,
To verify the complaint
12
Lacking manpower
assigned for this
To allocate manpower
RC: 6
history, etc
RC: 1
RC: 2
#N/A
Long Travel Time
15
RC: 3
RC: 4
RC: 5
Planning Purposes
Req. by Procedure
Lack of Automation
4
Planning Purposes
14
No Bill of Material/availability
of
Long distance to the site
To identify needed material
To assign responsibilities
Manual process
RC: 2
RC: 3
RC: 4
RC: 5
Planning Purposes
Approval Authority
Material Not
Available/non Stock
To schedule the work
Approval is required
Item
Hard to get material
availability
Scheduling is done manually
RC: 3
RC: 4
RC: 5
RC: 6
#N/A
Low Skills/Limited
Resources
materials
RC: 1
#N/A
RC: 1
#N/A
#N/A
RC: 2
#N/A
Unavailability of a PC
5
12
Long Travel Time
If far away, need to
consider in
schedule
73
RC: 6
19
15
Lack of Automation
Approval Authority
Get approval for costs
4
5
Figure 12: Sub-Process 3 Root Course Analysis "continued"
Sub-Process 3
Perform Corrective Maintenance on Equipment & Utilities
Activity 7
Activity 8
Activity 9
Activity 10
Activity 11
Activity 12
Assign the Work to
Technician
Prepare Material Request
Collect Materials
Obtain Work Permit
Get Tools
Travel to Site
L
L
M
M
L
M
NVA
NVA
NVA
NVA
NVA
NVA
RC: 7
RC: 8
RC: 9
RC: 10
RC: 11
RC: 12
Req. by Procedure
Material Not
Available/non Stock
Req. by Procedure
Low Skills/Limited
Resources
Req. by Procedure
2
Accountability and followup
2
To get materials to do the
job
19
Item
2
12
Tools not available with the
technicians
Safety/procedure/accountability
Req. by Procedure
2
To perform the job
Not available at the site
RC: 7
RC: 8
Low Skills/Limited
Resources
Material Not
Available/non Stock
12
Lack of highly skilled
manpower/
RC: 9
19
Material is sometimes not
available
Long Travel Time
15
RC: 10
RC: 11
RC: 12
Paperwork/ Reports
Low Skills/Limited
Resources
Low Skills/Limited
Resources
No car is available
RC: 12
8
Warehouse far away
A lot of paperwork
Not enough tools for the
technicians
RC: 8
RC: 9
RC: 10
RC: 11
Approval Authority
Low Skills/Limited
Resources
12
specialized skills
RC: 7
Planning Purposes
14
5
To get the right person to
do the job
Need to get approval
RC: 7
RC: 8
RC: 9
Planning Purposes
Coordination
Low Skills? Limited
Resources
To provide an even
distribution of
Person not available to sign
the work
work
Request
RC: 7
RC: 8
Planning Purposes
Planning Purposes
To assign equipment to the
person
12
#N/A
RC: 11
RC: 12
#N/A
Req. by Procedure
2
#N/A
Each technician is
assigned all tools
when only a few are
needed
RC: 9
RC: 10
RC: 11
#N/A
#N/A
Req. by Procedure
Security checks all tools
upon entering
To estimate the cost
doing the work
and leaving
RC: 7
Training
Long Travel Time
RC: 10
Takes time to issue materials by
MMD
14
14
Long distance to the site
Transportation not available
13
Planning Purposes
Carry the right tools for the
job
21
To do the job the right way
the first
time
74
RC: 12
1
#N/A
15
Figure 12: Sub-Process 3 Root Course Analysis "continued"
Sub-Process 3
Perform Corrective Maintenance on Equipment & Utilities
Activity 13
Activity 14
Activity 15
Activity 16
Activity 17
Execute the Work
Requested
Inform Foreman of new
job found
Close Work Permit
Input Actual Man-hour in
the System
Close Work Order
H
L
L
L
L
NVA
NVA
NVA
NVA
RC: 13
RC: 14
RC: 15
RC: 16
RC: 17
#N/A
Coordination
Req. by Procedure
Foreman not available
Safety/procedure/accountability
To get labor cost for the work
RC: 15
RC: 16
Total
VA
RC: 13
#N/A
RC: 14
Planning Purposes
14
2
#N/A
Identify/Record Costs
Paperwork/ Reports
To reschedule manpower &
material
22
Planning Purposes
VA:
NVA:
14
To finish job
RC: 17
8
Identify/ Record Costs
22
to document cost, material,
labor,
To provide reports
history, etc.
RC: 13
#N/A
RC: 14
RC: 15
RC: 16
Coordination
#N/A
Planning Purposes
To communicate to the
foreman
RC: 17
14
#N/A
for budgeting purposes
RC: 13
RC: 14
RC: 15
RC: 16
RC: 17
#N/A
#N/A
#N/A
Cost
#N/A
Identify cost and experience of
equipment
RC: 13
#N/A
RC: 14
#N/A
RC: 15
#N/A
RC: 16
RC: 17
#N/A
Low Skills/Limited
Resources
Unavailability of a PC
75
12
2
15
Summarizing
these
data
will
result
finding
out
that
planning
purposes, low skills / limited resources and required by procedures
are the main reasons for the non value added activities for subprocess 3 as shown in the following chart:
Chart 1: Sub-process 3 Root Cause Analysis
Root Cause Analysis
(13)
Sub-Process 3: Perform Corrective Maintenance in Equipment & Utilities
Root Cause Categories
Planning Purposes
Low/Skills/Limited Resources
Req. by Procedure
Long Travel Time
Approval Authority
Material Not Available Stock Item
Paperwork/Reports
Identify Record Costs
Lack of Automation
Coordination
Inspection
Incomplete Information
Req. by Policy
Rework
Training
Interruptions
Inadequate Tools & Equipment
No Operating Manuals for Test Equipment
Required by Outside Agency
Poor Quality Material
Weather
Non-Standardization
0
1
2
3
4
5
6
7
8
. # of NVA Activities Identified with Root Cause
77
9
10
3.4.6 Leading Practices and Site Visits
Leading Practices is a major function in the business process
improvement. It suggests that there are in the world companies or
government agencies, which are doing the service better and more
efficient. A leading Practice Pursuit focuses on identifying practices
that are substantially better than what currently exist in the
Company. It stretches beyond the company’s own industry to find
common or universal practices. Eighty percent of the effort goes
into
studying
company
practices
that
deliver
their
higher
performance and only 20% of the effort is focused on collecting
comparative measures.
The first step in this process, is to ask and communicate with
others for good service providers and to search by any mean for a
better service like searching in the Internet and periodicals in the
field related to attributes to be put in mind during searching and
communication. These attributes was separated into two categories
one for Company attributes such as asking if the company looking
for is one the best and fortunate 500 Companies in the world, does
it have buildings and facilities scattered, is it a medium to large
company and is Janitorial work performed using internal resources or
using outsourced measure, etc. The other attribute are related for
the process attribute for the future such as, installing low
78
maintenance materials and equipments, is employee moral high, are
customers satisfied and they have little company and quality
rectified, etc. The following are the Company and the process for
the future attributes
(13)
:
 Utilizes an advanced maintenance techniques/systems
 Maintenance activities are centralized
 Maintenance Activities are decentralized
 Is it one of the most fortune 500 company in the world
 Provides a variety of maintenance services
 Is it a vendor which provides systems, equipment & tools
 Large company who has outsourced it's maintenance activities
 Attrition is low
 Maintains a large landscaped area
 Buildings and facilities are scattered
 Is a medium to large sized company
 Performs Janitorial work using internal resources
 Janitorial activities are outsourced
 Maintains a variety of different types of buildings and
functions.
79
And the following are the process attributes for the future:
 Installs low maintenance/durable equipment
 Simplified customer friendly maintenance process requiring
minimal approvals
 Employee, Technician morale is high
 Materials process provides prompt delivery
 Customers have few complaints which are quickly resolved and
are highly satisfied
 Few customer complaints are received
 Provides fast response to maintenance requests
 Technicians are highly trained and have a fast learning curve
 The latest technology is used
 Uses one ideal maintenance process for all types of
maintenance requests
 Policies and Procedures are clearly defined and well
documented
 Applies a new approach to "Preventive Maintenance"
 Utilized E-Commerce and Internet/Internet technology
 Provides cost effective maintenance
 Utilizes modern tools and equipment
 Utilized standardized contracts
 Established low maintenance landscape
80
 Process minimizes the storage requirements for materials
 Electronic requests and responses are used for maintenance
services
After survey, 51 companies
(13)
matched the attributes the teams
are looking for or at least some of them. Then, two sets of
Questionnaire were set up. The first set is simple and easy question
to
be
replied
and
for
general
information
such
as,
general
information about the company, general information about the
services that the team is looking for, etc. 18 of the 51 companies
have responded and agreed to participate in the survey. After that
there was an agreement by the team and the process manager to
fund the visit for the following:
- Dubai Airport, Department of Aviation
- Dubai Municipality
- Dubai Ports Authority
- Saudi Aramco
After the confirmation with those companies a second set of
questionnaire have set up. This questionnaire is a detailed one of
how they are doing in detail the service for example. In operation
81
how
do
you
dispatch
service,
in
maintenance
describe
the
maintenance process, etc. and this questionnaire was sent for the
companies will be visited so that they will be prepared. Finally, for
one week different teams visited each company and get all
information they need to be used later for further study in the
project.
The following are sample of some results from leading practices
research
For maintenance practices:
1. Equipment Lifetime Management (ELM)
2. Intelligent Buildings
3. Hand-Held Pen Based Computers
4. Reliability Centered Maintenance (RCM)
5. Condition Based Maintenance
6. Periscope Concept
For Contracts:
1. Automated Contracting Process
82
2. Service Level Agreement " this would one of the final
recommendations"
For E-Procurement
1. Electronic Maintenance Materials Ordering Process
2. Electronic Commerce
3.5 Future State Phase:
3.5.1 Introduction
During current state phase, the team studied how SEC is doing
thing at present during their study. In the future state phase the
team is trying to create a better future for the process. During
this phase, the actual “redesign” begins. Starting from this phase
up to the end the team will attend full time. First, the team will
have training in what supposed to do during future state. Most of
the time spend is analytical thinking. The continuous communication
with others is very important. Sometimes the team would be
distributed into two or three teams to conduct certain tasks which
does not need the full team to participate in. The team has to
review again all current state documents before starting the
future state and compile with it the leading practices findings.
83
The first step in the future step is conducting future state
workshops as illustrated in the next section.
3.5.2 Conducting Future State Workshops:
In this part of the future state, sessions were formed which
consist of process experts and customers to take part in the redesign stage. These participants should come from both inside and
outside the existing process. This is due so that the inside
participant of the process may reveal information about the existing
process that was not uncovered in the current state analysis. And
having the people who will be the future process owners will help to
ensure
that
the
changed
process
will
succeeds
once
it
is
implemented. The outside is as important as the inside and its
purpose is due the the perspective of someone who will look at the
process with a “fresh eye” and raise questions about assumptions
that may not be obvious to insider who might be too close to the
process to see this. A technology specialist will provide insight as to
how
technology
can
be
applied
to
participant
prior
to
their
participation in the workshops. Documentation of the session’s ideas
is very important. Then, similarly as in the current state the same
invited quests previously invited to take part again in the customer
improvement ideas for one week. They were also briefed on the
current state analysis, and then they start showing their ideas. The
84
key ingredient is to provide an environment free of criticism for
creative
and
unrestricted
explanation of
options
or solutions.
Brainstorming will help to break free of old, in effective ideas. The
major rules that assist to manage these sessions are set a time
limit, clarify the service process to be considered, documentation,
clarification of ideas and eliminate duplication. The session should
be fun and free from stress. Conducting creative thinking exercises
prior to taking business process redesign can improve the innovative
mindset of a workshop. Team members should try to make the
meetings more fun. Negative statement about ideas should be
prevented like it has been tried before or there is no authority to
do that ….etc.
The result was of more than 1,200 ideas and the following are
samples of these ideas and the concentration is on sub-process3:
85
Table 7: Future State Workshop
No.
Source
Brainstorming Idea
Category
1
Team
Have MMD Deliver materials to the job site
Material delivery
2
WS#1
Schedule PM based on counters
Material delivery
3
WS#3
Use Express Mail to deliver material
Material delivery
4
WS#3
Delivery of material by MMD
Material delivery
5
WS#3
Deliver material using DHL
Material delivery
6
WS#3
Use DHL to deliver materials from remote warehouses
Material delivery
7
WS#3
Materials arriving on site should be delivered to the user by the
material man
Material delivery
8
WS#3
Make an agreement/partner with Aramco to supply materials
Material delivery
9
WS#3
Establish only one user and delivery directly to user by trucks
Material delivery
10
WS#3
MMD should deliver only original parts not substituted ones
Material delivery
11
WS#3
Provide special boxes to transport sensitive electronic equipment
Material delivery
12
WS#3
Create a special card for MIR rush materials to expedite delivery
Material delivery
13
Team
Provide replacement of equipment which needs repair with stand-by
equipment
Equipment
Utilization/Replacement
14
WS#2
As new models purchased ask about better technology
Equipment
Utilization/Replacement
15
WS#2
Provide loaner machine during CM
Equipment
Utilization/Replacement
16
WS#2
provide fax machines for security gates "specially remote areas"
Equipment
Utilization/Replacement
17
WS#2
Provide mobile telephone for key people
Equipment
Utilization/Replacement
18
WS#2
Use equipment replacement policy rather than fixing the equipment
in site
Equipment
Utilization/Replacement
19
WS#2
Zero book value equipment to be replaced instead of repair
Equipment
Utilization/Replacement
20
WS#2
Use portable A/C as back up
Equipment
Utilization/Replacement
21
WS#3
Jubail warehouses needs A/C
Equipment
Utilization/Replacement
22
WS#3
Supply computer at security gate
Equipment
Utilization/Replacement
23
WS#3
Provide pager for each department involved in facility maintenance
Equipment
Utilization/Replacement
24
Team
Establish a database for information based on failure types
Troubleshooting
25
Team
Train users to troubleshoot minor P.C. problems over the network
Troubleshooting
26
Team
Implement remote diagnostic capability to resolve P.C. problems over
the network
Troubleshooting
27
WS#2
Use the latest instruments for trouble shooting (i.e. Infrared)
28
Team
Develop good planning to prepare materials
Material Planning/Availability
29
Team
Allow OSD/ERU to stock fast moving spare parts
Material Planning/Availability
30
WS#1
Specify the correct material on the PM sheet
Material Planning/Availability
31
WS#1
Store frequently required spare parts in OSD warehouse
Material Planning/Availability
32
WS#1
Purchase only high quality material
Material Planning/Availability
33
WS#3
Relocation of above storage areas to lower storage areas frequently
Material Planning/Availability
34
WS#3
Replenishment of stock should be evaluated by users
Material Planning/Availability
35
WS#3
Material installation by the vendor
Material Planning/Availability
WS#3
Regular status report of ordered material should be submitted to
users
Material Planning/Availability
36
86
Troubleshooting
37
WS#4
Standardize all materials to all areas
Material Planning/Availability
38
WS#4
keep Min/Max of stock furniture in OSD warehouse
39
Team
Provide electronic hand held devices for collecting and inputting data
Electronic Data Input/Reports
40
WS#1
Computerize all PM sheets
Electronic Data Input/Reports
Material Planning/Availability
41
WS#1
Provide status repot for same equipment (copy for users)
Electronic Data Input/Reports
42
WS#1
Buy equipment locally made
Electronic Data Input/Reports
43
WS#2
No more papers to utilize history
Electronic Data Input/Reports
44
WS#2
Record work done by video tape as learning tool
Electronic Data Input/Reports
45
WS#4
Establish on-line status report
Electronic Data Input/Reports
46
Team
Provide incentives to the skilled workers to improve quality
Worker Recognition/Incentives
47
WS#1
OJT’s should be graded depending on task completion
Worker Recognition/Incentives
48
Team
Reduce the warranty period for office machines to 1-2 years
Warranty of Equipment
49
WS#1
Extend warranty for new equipment
Warranty of Equipment
50
WS#1
New equipment or facility should be extended warranty for 5 years
Warranty of Equipment
51
WS#2
Increase agent warranty period
Warranty of Equipment
52
Team
Specify criticality of equipment
Maintenance Practices
53
Team
Do not perform corrective maintenance on very far areas
Maintenance Practices
54
Team
Train remote area requestors to perform the job themselves
Maintenance Practices
55
Team
Assign permanent technicians to particular pieces of equipment
Maintenance Practices
56
TED
Initiative maintenance instead of requesting it.
Maintenance Practices
57
QPPD
Allow the customer to open the W.O.
Maintenance Practices
58
WS#3
To establish a central fabrication shop to (assemble fabricate) parts
Maintenance Practices
59
WS#4
Remove maintenance type project from EDSD & OSD/TSU
Maintenance Practices
60
WS#4
Establish a longer planning of maintenance facilities
Maintenance Practices
61
WS#4
Remote areas without maintenance should be added to OSD
Maintenance Practices
62
WS#4
Standardize all office space & project all relocation
Maintenance Practices
63
WS # 1
Lease equipment instead of purchase
purchase/Lease
64
WS # 2
EDSE to involve maintenance groups in selection of new equipment
purchase/Lease
65
WS # 2
Lease equipment / machine
purchase/Lease
Team
Reduce paper work in the maintenance process
Electronic
form/Paperwork/Approval
Team
Status of material should be printed in work orders
Electronic
form/Paperwork/Approval
Team
Preparation of department request slips should be done electronically
Electronic
form/Paperwork/Approval
Team
Use the intranet to request material electronically
Electronic
form/Paperwork/Approval
Team
Computerize the preparation of CAF like MIR/MPR
Electronic
form/Paperwork/Approval
WS # 2
Have all work orders electronically
Electronic
form/Paperwork/Approval
WS # 2
Better initiation of forms
Electronic
form/Paperwork/Approval
66
67
68
69
70
71
72
73
WS # 2
Electronic
form/Paperwork/Approval
Create equipment installation forms
74
Team
Develop technician to specialize in certain field of expertise
Training & Skills
75
HSD
Cafeteria inspector must be expert on foods, sanitation etc
Training & Skills
76
WS # 2
Include maintenance contractor in the training programs
Training & Skills
77
WS # 2
train operator to do minor repair
Training & Skills
78
WS # 2
Cross training for technicians
Training & Skills
79
WS#3
Any reclaimed materials being requested should be approved by the
foreman
Approval Authority
80
WS#3
Increase petty cash authority to SR 1000 for superintendents
Approval Authority
81
WS#3
Capital equipment less than SR 10,000 should only require manager
authority
Approval Authority
87
82
WS#3
Provide approval authority for petty cash up to SR 1,000 to unit head
Approval Authority
83
WS#4
Eliminate manager approval for project already approved in the
operating plant
Approval Authority
84
WS#4
Standardize the categories capital project from EDSD
Approval Authority
85
WS#4
Lower approval authority to unit head
Approval Authority
86
WS#4
Increase authority level
Approval Authority
87
WS#4
Single source contact approved by superintendent
Approval Authority
88
Team
Utilize GPS to locate equipment
Automation Tools
89
Team
Use robot/cameras for project/site evaluations
Automation Tools
90
Team
Use the internet to receive customer complaints
Automation Tools
91
Team
Use a scanner to encode trouble Ticket and Work order
Automation Tools
92
Team
Allow customer to input complaints electronically in a trouble ticket
Automation Tools
93
Team
Provide access to Vendor's stock of spare parts to check availability
Automation Tools
94
WS#1
Distribute the PM electronically to all technicians
Automation Tools
95
WS#1
Use hand held based computers
Automation Tools
96
WS#1
Build intelligent in PM program based on perimeters
Automation Tools
97
WS#1
Provide robot to do PM in hazard area
Automation Tools
98
WS#1
Provide hand based computer to all technician
Automation Tools
99
WS#1
Reduce paper by using hand held computer
Automation Tools
WS # 1
Establish an automation service
Automation Tools
WS # 1
Make information an easily available to everyone using CMMS. Make
available on PC in a customized report
Automation Tools
WS # 1
Easy to get information from CMMS
Automation Tools
WS # 1
Provide code to reduce the amount of input into CMMS. Codes will
also be used for future analysis
Automation Tools
WS # 1
Lifetime of major parts of each equipment to be specified on the PM
work order so and alarm will be generated automatically if it is
replaced prior to its expected life time
Automation Tools
106
WS # 1
provide energy conservation programmed
Automation Tools
107
WS # 1
Use latest technology
Automation Tools
WS # 1
system should provide warning when the same CM work is needed two
times in a row
Automation Tools
109
WS # 2
Receive complaints by email
Automation Tools
110
WS # 2
Provide drawing of equipment in the system
Automation Tools
100
101
102
103
104
105
108
111
WS # 2
Automate controls to minimize working time of the equipment
Automation Tools
112
WS # 2
Use code/task to analyze future problems
Automation Tools
113
WS # 2
have all complaints through emails
Automation Tools
114
WS # 2
Provide more lamps indicator to specify problems
Automation Tools
115
WS # 2
have the system self diagnose it self using internal logic
Automation Tools
116
WS # 2
have historical database for each equipment
Automation Tools
117
WS # 2
provide pc based system to prioritize request automatically
Automation Tools
118
WS # 3
make standard material available through the internet
Automation Tools
119
WS # 4
Establish electronic approval for design package
Automation Tools
120
WS # 4
All drawing to be generated electronically
Automation Tools
121
WS # 4
Provide cad training to all engineer and foreman
Automation Tools
122
Team
Issue permanent work permits
Procedure
123
Team
Establish clear guidelines
Procedure
124
Team
Obtain work permit by phone
Procedure
125
Team
Contractor should have his own ID
Procedure
126
WS # 2
Provide overhauling procedure of the CM
Procedure
127
WS # 2
No work orders less than 2 hours
Procedure
128
WS # 2
Provide work permit immediately
Procedure
88
129
WS # 2
Apposite hours coverage during week ends& holidays
Procedure
130
WS # 2
Separate urgent CM from normal CMs
Procedure
131
WS # 2
Unscheduled non emergency
Procedure
132
WS # 2
Highly repeated problem should be reviewed
Procedure
133
WS # 2
Minimize the operation time
Procedure
134
WS # 2
use high quality spare parts
Procedure
135
WS # 2
Annual PM to be outsourced
Procedure
136
WS # 2
Improve the language of communication for manuals
Procedure
137
WS # 2
have fixed dates
Procedure
138
WS # 2
have the technicians signed for the work done
Procedure
139
WS # 2
To install the operating manual in the CMMS
Procedure
140
WS # 2
Assign employees to work in the weekends
Procedure
141
WS # 2
Equipment retirement date should be printed regularly
Procedure
142
WS # 2
Simplify emergency fund
Procedure
143
WS # 4
Design package must be reviewed by requestor
Procedure
144
WS # 4
Establish a definition what emergency
Procedure
145
WS # 4
Define the involvement of the user
Procedure
146
WS # 4
All design packages should be completed by 2nd quarter
Procedure
WS # 4
Categorization of capital project should be done by OSD not by
EDSD
Procedure
WS # 4
Project above 50,000 SR should be implemented otherwise it should
be done through unit rate
Procedure
149
WS # 4
Total cost of the project must be shouldered by requester
Procedure
150
WS # 4
Standardize forms for SFC & LFC
Procedure
151
WS # 4
Maintenance of rented building should be done by owner
Procedure
152
WS # 4
Limit to 4 contractor for long form contract
Procedure
WS # 4
Make rotational assignment for department/division involved in
reviewing design package
Procedure
154
WS # 4
Using one drawing forms for all facilities
Procedure
155
WS # 4
Include point of view before submitting to EDSD
Procedure
156
WS # 4
Document out of policy request/work order
Procedure
157
WS # 4
Locate design engineer in the maintenance organization
Procedure
158
WS # 4
Use virtual reality partition
Procedure
159
WS # 4
Avoid hiring of unqualified employee
Procedure
160
WS # 4
Apply penalty clause for SFC
Procedure
161
WS # 4
Award good contractors
Procedure
WS # 4
No need for any second approval if the project approved in the
operating plan
Procedure
WS # 4
Project below 300,000 SR must be reviewed and approved in the
operating plan
Procedure
164
WS # 4
Involve OSD from the beginning of all PMD project
Procedure
165
WS # 4
For SFC no need to go contracting department
Procedure
166
WS # 4
No need for IDs for none restricted areas
Procedure
167
WS # 2
Spare parts should be nearest to user
Centralization
168
WS # 2
Standardize equipment in remote areas
Centralization
169
WS # 2
Satellite work shops in remote areas
170
SOD
Establish frequent surveys and services measures
Planning & coordination
HSD
Requester must be informed of the status of his request, if the job
cannot be done on time
Planning & coordination
172
QPPD
Establish a single point of contact for the customer as a planning
Planning & coordination
173
HOA
A complaint center must be establish
Planning & coordination
HOA
requestor must get feedback form the department concerned when
requesting for services
Planning & coordination
147
148
153
162
163
171
174
Centralization
89
3.5.3 Creating the Future State Redesign:
The
list
of
improvement
ideas
created
during
the
re-design
workshops provides a good base for redesigning the process. The
BPI team looked at this list as a collection of improvement ideas
thoughts which will help lead the team toward major changes to the
process not seeing them as an individual ideas each one separately.
Combining these ideas with the leading practices collected form the
leading Companies visited also provides another creative stimulus to
the team’s process re-design effort. Defining categories that
describes the major areas of improvement that were discussed
during the re-design workshops or during the leading practices site
visits was the first step for the re-design effort is to have. Then,
creating a category that best describes each item on the list of
ideas generated during the workshops and identify. Sort the list by
category. Each category now has a list of similar recommendations
for improvement for a particular part of the process. The team
used the ideas contained within each category to combine and
redefine into larger improvement recommendations. Then, these
major improvement ideas were written on sheets of paper using
large letters and they posted
category
title
from
which
90
them on a large wall under a
they
were
designed.
The
major
improvement ideas posted on the wall represent the changes for the
re-designed process.
entire
re-design
and
The wall provides a visual picture of the
all
recommendations
can
be
compared,
combined and discussed. The team spent several weeks reviewing
the ideas on the wall, looking for interrelationships, combining
similar improvements ideas, removing Improvements which do not fit
the overall change, resolving conflicts between ideas and developing
unique improvements from their discussions. The result will be a list
of major improvements. The next step was for the team to conduct
a thorough research on each improvement to develop more detail,
collect costs and identify benefits, and to learn more about the
spirit of the recommendation being proposed. The team started also
to developing a business Case for each recommendation During this
detailed investigation. The improvements that are obviously a good
ideas and are easy to implement requires a small investment of time
and money is called Fast Track or Quick Fix actions that can
provide
immediate
benefits
and
additional
momentum
for
the
project. These Quick Fix improvements are listed by the team along
with the primary department that should take responsibility for
implementation. Examples of quick fix recommendations
by the team are as follows
(13)
:
91
identified
 Provide
fax
machines
in
restricted
areas
(Telecommunications)
 Create a standard contract for all contracted work such as
repair of equipment, renovation and Janitorial/Landscaping
work (FMD).
 Use female Janitors to clean ladies workroom as part of the
health services contract (HSD, QD) which has not been
approved.
 Purchase universal tools and power tools like use of hydraulic
lift instead of scaffolding (FMD).
 Purchase
wireless
diagrams
at
sites
to
be
used
for
technicians. (FMD).
Other which need express workshop was formed between Security
Department and Facilities Management Department to clear the
issue of fire alarm system double responsibilities. It was not clear
whose responsibility is it. That is why an express workshop was
conducted and the results were as follows
(13)
:
 Initial response to an after hour alarm at locations where a
security guard is available, will be made by the Security Guard.
If the alarm cannot be silenced, then the Shift Supervisor will
92
contact. If it can not be silenced by the Shift Supervisor, he
will
contact
the
closes
FMD
Technician
(Until
ISD
gets
resources).
Suggestion: to add in the next contract a clause for an additional
manpower for responses.
o Increase frequency of detector cleaning (PMs).
o Revise
the
existing
general
instruction
(G.I.)
for
the
maintenance of Fire Protection Equipment to include initial
response by Security Personnel.
o Initial response to fire alarm during working hours will be by
FMD.
o
Provide on call duty Fire Protection Personnel with a mobile
phone
so
he
can
be
contacted
easily in case
of
an
emergency.
o Place the responsibility of preventive maintenance (PM) and
corrective
maintenance
(CM)
for
Fire
Protection
Equipment/System with Industrial Safety Department (ISD).
o Develop the basic course and train security operations staff
to perform the initial response to fire alarm after working
hours
93
Finally, this section the communication comes again as a major
factor in which these changes has to be discussed with the involved
Departments and customers to have their commitment, feed back
and support.
3.5.4 Develop Business Case for Each Change Recommendations:
Developing a compelling business case represents an important
milestone in the team’s work. An effective business case enables
the team to receive funding for the project. A measure of the
success of BPI initiative is by prioritizing the solution based on what
design elements produce the greatest benefits, and prepare an
accurate budget for project implementation. The most obvious
reason for putting together a BPI case is to justify the resources
necessary to bring a BPI effort into action. The BPI business case
is the one place where all relevant facts are documented and linked
together into a cohesive story. That mean that the business case
should not be only
financial document. While all business cases
should include financial justification, it should not be the only
purpose of the document. The Business Case should answer this
question; How much money, people, and time will be needed to
deliver the solution and realize the benefits? The writing of the
94
business case forces the BPI team to sit back and reflect on all of
the work they have so diligently completed. It is too easy for the
team to continue to plug away toward the end result and fail to
document the work they’ve already accomplished. This is especially
true during the concept and design stages of any BPI effort.
Therefore, the business case serves to help the team to capture
the knowledge they’ve developed about the BPI project.
The major items included in a BPI Business Case are:

(13)
A completed economic analysis using key indicators and net
present Cash Flow over 5 years.

Intangible Benefits of Recommendations.

Risks associated with implementation.

Assumptions and Generalizations.

Impact to the strategic direction of SEC Eastern Region.

Impact to SEC Eastern Region Plans.
Brainstorming is a good tool to for the team to start to develop a
business case. The team is subdivided into sub-teams (the team of
two)
and
then
they
brainstorm
the
recommendation they are responsible for:
95
following
for
each
All

of
the
costs
associated
with
the
recommended
improvement.

All of the tangible benefits of the recommended improvement.

All
of
the
intangible
benefits
of
the
recommended
improvement.
The team
considered the following area when they are
brainstorming
(13)
:
 One time cost and benefits those also known as start-up cost
needed to initiate the recommendation and is done only once such
as:

Plant Equipment: Facilities

People Investment: Recruitment and Training

New
Technologies:
Software,
Hardware
and
Telecommunication
 On going cost, these are annual costs of the improvement such
as:

Overhead
Cost:
Telecommunication
charges.
96
Charges,
Facilities

Labor Related Costs: Maintenance, Productivity, On-going
Training.

Equipment
Costs:
Material,
Engineering,
Contactors,
Suppliers.

Administrations Costs: Marketing, Service Cost, Support
Staff.
 On going benefits, these are the money saving which will occur
every
year
from
the
point
that
the
recommendation
is
implemented such as:

Material Saving: Equipment, Supplies.

Labor
Related
Saving:
Skilled
Labor,
Productivity,
and
Maintenance.

Capital Saving: Engineering, Contractors, Material.

Intangible Benefits: Customer satisfaction, Motivation, Safe
working environment, avoided costs.
The BPI Team collected as much detail as possible to quantify the
costs
and
benefits.
Also,
the
team
developed
a
high
level
implementation plan to capture additional implementation costs.
Major costs such as full time resources that will be required to
97
manage the implementation (i.e. Implementation Manger, etc.) were
identified.
Cost and Benefits can be broken into two categories. Hard costs
and benefits and Soft costs and benefits. Some main differences
between hard cost and soft cost are as follows
(13)
:
Hard Costs are expenses that the Company will pay to implement a
recommendation which is over the above what is currently planned in
the budget. Some examples could include:

Hiring net new positions.

Purchasing new Equipment.

Buying Materials.

Hiring Contractor Service.
Soft Costs are expenses that the Company is already paying for
even if the recommendation would not be implemented. Some
examples could include:

Using existing labor for new work.

Using existing equipment.

Using existing computers.
98
Hard Benefits will provide cost savings that improves the Company’s
financial bottom line. These savings may result in reductions in the
next budget cycle. Some examples could include:

Reduced maintenance.

Reduced materials purchase.

Fewer filled positions.

Less equipment needed.
Soft Benefits provide opportunities to reduce workload or prevent
expenditures that do not result in an improvement to the Company’s
financial bottom line. Some examples could include:

Reduced labor hours not resulting in manpower reduction.

Improved quality and customer service.

Improved utilization of equipment which does nor result in
reduction of equipment.
The BPI Business Case for each recommendation will compare the
“Hard Costs” and “Hard Benefits” only. “Soft Costs” and “Soft
Benefits” is included but not considered as a major part of the
cost-benefits analysis. Not all BPI Recommendations need to have
99
more hard benefits than costs to be approved. It is important to
document the net costs and the intangible benefits that can be
achieved. If the intangible benefits are worth more to the Company
than the net costs of the recommendation, it may still be approved
for implementation. Finally, in this section, teams have to narrow
list of improvement to the one that will have the best impact on the
process by considering all factors associated with that decision. All
the
calculations
for
this
section
would
be
shown
in
the
recommendation improvement chapter.
3.5.5 Developing Implementation Plan for Each Change Recommendation:
To
accurately
reflect
all
of
the
expected
costs,
when
the
expenditures will be spent and when the benefits will be realized,
the key implementation information is required by the BPI Business
case. The best way to determine this information is to create high
level an implementation/work plan for each of the BPI team
recommendations. In addition, the team will need to identify other
resources that will be required to manage the overall implementation
project during the brainstorming stage. An Implementation Project
Manger is one additional resource that is needed to assist the
implementation of the BPI recommendations. Project management
can be thought of as a set of principles and techniques for
100
controlling project risks and capturing opportunities as projects are
brought to success. This person is critical to assuring the successful
implementation of the BPI recommendations. The role of the project
manager in project management is one of great responsibility. It’s
the project manager’s job to direct and supervise the project from
beginning to end.
The project manger must define the project, reduce the project to
a set of manageable tasks, obtain appropriate and necessary
resources, and build a team or teams to perform the project work.
The project manger must set the final goal for the project and
must motivate his workers to complete the project on time.
Other additional resources were selected to participate during the
implementation phase
from
various
support
of the BPI recommendations and they came
organizations.
A
full
time
Information
Technology Specialist was selected since the BPI recommendations
have a great deal of automation involvement. These additional
resources were included as part of the BPI business Case and also
were
highlighted
in
the
Future
State
Design
presented
to
management for approval. The implementation plan for each change
recommendation will be shown later with completed future state
improvement
recommendations.
101
But
the
project
implementation
mobilization
need
during
the
implementation
plan
for
the
recommendations is as follows:
Figure 13: Project Implementation Mobilization
(13)
Project Manager
FMD
(Full Time) 2 years
1 FMD
Coordinators
TCD Project
Coordinators
CRD Project
Coordinators
2 ITD Project
Coordinators
(Part Time) 2 years
(Part Time 25%) 2
years
(Part Time 25%) 2
years
(Part Time) 2 years
TCD Project
Coordinators
(Part Time 25%) 2
years
This will require the hiring of one full time FMD resources for two
years and One ITD resource for one year. The remaining resources
will be provided using internal resources.
Part
Time
Members
from
various
participation
from
various
departments such as facility maintenance (FMD), power transmission
(PTD), generation (GD), comptroller (CRD), telecommunication (TCD),
information technology (ITD), relation & media (R&MD), etc…
102
Finally, again gain consensus on final recommendation to be presented
by discussing it with the concerned Department Manger, and Vice
President concerned especially some resources will be taken from
them for a period like providing manpower for almost two years. In
the recommendation improvement analysis chapter, the implementation
team member contribution is shown.
3.6. Implementation Plan Phase
3.6.1 Introduction
The last phase in the BPI project is the implementation phase. It
is mainly implementing the implementation plan previously discussed
and it will be presented in the next chapter in developing each
recommendation
business
case
model
in
the
recommendation
analysis. Executive of a carefully developed change plan separates
the high performance from the low successful BPI projects.
3.6.2 Mobilizing for Implementation
With the approval of the BPI recommendations by Saudi Electricity
Company Executive Management it is time to begin mobilizing for
implementation. Executive Management will approve not only the
recommendations but also the budget and the resources required for
implementing the recommendations. It is very important to begin the
103
implementation very soon after the approval is provided. At this
time
the momentum and excitement about recommendations and
their implementation are very high. Delaying the implementation for
more than one (1) month risks losing this momentum making it
harder to get the implementation project started and on track.
The first and very crucial step in mobilization is for the Executive
Sponsor and Process Manager with input form the BPI core team to
select an Implementation Project Manager. This person will have full
responsibility for the implementation of all BPI recommendations
that were approved. It is strongly recommended that a member of
the original BPI team be selected to fill this temporary full time
and one the team members were selected and was given two years
out
of
his
work.
His
roles
include
also
establishing
the
implementation project team, arranging for facilities and securing
the budget.
3.6.3 Developing Charters and Work plans
Some of the BPI recommendations will be interdependent. This
means that one recommendation cannot be implemented without
another being implemented. Prior to inviting the implementation
project team to participate in the project, the Implementation
104
Project Manager should identify these interdependencies and decide
how to group similar or interdependent recommendations.
3.6.4 Monitoring and Managing the Status:
The charter, work plan and assigned responsibilities for the BPI
recommendations
because
are
the
basis
for
managing
the
implementation project. Process of each recommendation will be
monitored by the implementation Project Manager. He will request
updates from each of the teams, individuals, and/or departments
assigned to implement the recommendations and project work plan
will be updated with this information. The Project Implementation
Manager will evaluate the project performance by:
 Analyzing significant variances in schedule and budget
 Defining and quantifying the problems
 Analyzing the problem causes
 Determining the best solutions options
3.6.5 Measuring find results of implementation
The implementations Project Manager will report have many reports
to monitor the status of the overall project and here are some
Sample Management Status Reports
105
 Accomplishments for This Week
 Status Against Work plan
 Issues and Barriers
 Lessons Learned
 Plans for Next Week
 Morale of Project Team
106
Chapter 04
Recommendation Improvements Analysis
4.1 Introduction
Putting what has been discussed earlier in building the business cases,
some prove to very much not feasible either it is not cost effective not
time saving. After evaluation and analysis of the business case models
which was described earlier in chapter three item # 5.4 which explains
how
it
is
build
up,
final
recommendations
agreed
on
were
11
recommendations.
4.1.1 Recommendations Analysis
The eleven recommendations approved by the team and SEC-ERB
management were as follows:
1. Utilize Unit Rate Contracts
2. Maintenance Web Page
3. Maintenance Call Center
4. Electronic Equipment Repair Shops
5. Maintenance Free Materials
6. Service Level Agreement & Chargeback
7. Predictive Based Maintenance
107
8. Hand Held Data Input Devices
9. Make CMMS the Standard Database
10. Improve P.C. Repair and Support Network
11. Improve Material Delivery
By analyzing recommendation # 1 " Utilize Unit Rate Contracts"
which would be clear about the other recommendations how it was
built up. The steps of analyzing the recommendations are as
follows:

First, the team starts by putting the current situation and
the recommended change description and details about the
recommendation contents.

Second, is the summary of Benefits of Utilize Unit Rate
Contracts and summary of all the figures of hard and soft
cost benefits, soft costs and benefits, what affect on the
goals set in the beginning in the charter and if there are any
positions reduced, which all will be calculated next.

Third, preparing a cost worksheet, in recommendation # 1 for
example there are no hard costs but there are two soft
costs. One is 25,000 SR the cost to develop unit rate
contract and the other is the implementation plan cost for
labor charges which cost 17,000 SR.
108

Fourth, is calculating benefit of Utilizing Unit Rate Contract.
For hard benefits
128,178 SR is saved
annually. This
reduction in cost came mainly from two manpower positions
reduction (one engineer and one draftsman). And for soft
benefits, a total of 39,082 SR will be saved from time spend
by the contract coordinator to oversee the 15 contracts being
eliminated.

Fifth, preparing hard cost and benefits economic analysis. As
discussed earlier it has to be done for five years. This
process starts with determining each year how much cash to
be spent and cash saved. Adding this will show the net cash
every year if it inflow or outflow. Then, there is a factor
called discount facts of 7% for the adjustment of how much
an amount of money worth for the company in the second,
third, fourth and fifth year. A net result show an amount of
434,166 SR will be cash inflow which is positive for the
Company.

Sixth step in study the recommendation is the economic
analyzing of soft costs and benefit. As done earlier cash
outflow is calculated from cost and benefit worksheets done
earlier. For example, in the fist year there is a cash outflow
amounted 42,000 SR
the items in the cost worksheet which
109
are the development of the unit rate contract itself and the
implementation plan cost. A net cash assessment reveal that a
n amounted of 129,459 SR of cash inflow to the company
during the five years.

Last
step
in
each
recommendation,
is
building
the
implementation plan. The Plan consists of 6 tasks to be
implemented in 10 months to complete this recommendation
and it is showing the man hour’s participation in each task.
These entire steps are summarized in the summary of costs and
benefits
worksheet.
The
following
are
the
Project
Final
Recommendations which consist of the business case model and the
implementation plan
(13)
:
110
IMPROVEMENT RECOMMENDATIONS
Table 8: Recommendation # 1 " Utilize Unit Rate Contracts"
1: Utilize Unit Rate Contracts
Current Situation
Recommended Change
Minor
building
renovation,
modification,
expansion,
remodeling,
demolition,
and
concreting
if
performed
utilizing short form contracts.
It currently takes an average
of three months to establish a
short form contract and up to
one year for a long form
contract.
Utilize Unit Rate Contracts to
reduce the number of Short Form
Contracts for non-technical skills
such as:
Plumbing,
Painting,
Carpentry,
Concreting, Trenching, Backfilling,
Demolition.
Unit Rate Contract will simplify the process for getting contractor assistance
in providing labor for non-technical work. Currently, a short form contract
must be established which can take up to one year. Also the cost for labor
using a short form contract is usually 5% higher than using a Unit Rate
Contract.
The Unit Rate contract will drastically reduce the time required to get labor
for these non-technical jobs and SEC-ERB will pay less for the work.
Examples of the frequent work, which is being conducted over and over again
include:
111
 Painting of traffic parking lines.
 Painting of walls.
 Partition walls.
 Doors and windows.
 Concrete work and plastering.
 Waterproofing.
 Wood Working.
 Metal Working.
 Plumbing.
Table 9: Summary of the Benefits "Utilize Unit Rate Contracts"
Summary of the Benefits
Utilize Unit Rate Contracts
 Reduce the number of short from contracts by 15 (45 reduced
to 30).
 Reduce paperwork by 25%.
 Reduce contract preparation.
 Reduce travel time.
 Improve the quality of work.
 Improve customer satisfaction.
 Provide quick response to customer requests.
 Better manpower utilization.
 Reduce maintenance costs.
112
Figure 14: Summary of Costs and Benefits “Utilize Unit Rate Contract”
Type of Benefit
Cost
Cycle Time
Quality



Impact on Goals
High
Med.
1
2
3
4
5
6
7
8
9
10
11
12
13
14


Hard Costs and Benefits (SR in Thousands)
Annual Impact
Economic Analysis (Cash Flow)
Net Start
Benefit
Cost
Net
Up Costs
Year 1
2
3
4
5
5 Yr.
Total
128
0
128
0
0
120
112
104
98
434
5
30
5 Yr.
Total
129
Low
Soft Costs and Benefits (SR in Thousands)
Annual Impact
Economic Analysis (Cash Flow)
Net Start
Benefit
39
Cost
0
Net
39
Up Costs
42
Positions Reduced/Avoided

OSSD
Engineer
Draftsman
113
1
1
Year 1
-3
2
36
3
34
4
32
Additional FTE Savings
0.9 FTEs in FMD
BENEFIT/COST ANALYSIS
COST WORKSHEET
Project Description
Table 10: COST WORKSHEET "Unit Rate Contract"
Description
Capital
Computer
Hardware
Computer
Software
Facilities
Hard
Soft
Assumption
Cost to develop a
Unit Rate Contract
25,000
SR 25,000 or the same cost as developing
one short form contract.
Implementation
Costs
17,000
See implementation plan for details.
0
42,000
114
BENEFIT/COST ANALYSIS
BENEFIT WORKSHEET
Project Description
Table 11: BENEFIT WORKSHEET "utilize Unit Rate Contracts"
Description
Hard
Quantitative
Manpower
Reductions
One FMD draftsman
position reduced.
33,984
Manpower
Reductions
One FMD Engineer
Position Eliminated
56,640
FTE Reductions
Better Contract
Pricing
Paper Work
Reduction
Transportation
Savings
Cycle Time
Reduction
Quality
Improvements
In-tangible Benefits
Contract Coordinator
II will have less time
needed to oversee and
contribute to the 15
contracts being
eliminated.
The cost of a Unit
Rate contract is
estimated at 5% less
than a Short Form
Contract for the same
work.
Fewer Short Form
Contacts with require
less paper.
Soft
Assumption
15 out of the 40 contracts will be eliminated and
covered through a Unit Rate Contract.
Currently one person can complete 3.42 contracts in a
year 10 projects eliminated which require a Scope of
work / 3.42 projects per person = 2.92 employees.
FTE Time Reduced:
This time is reduced in the effort to create 10
contracts which require a Scope of Work
1 Draftsman @ SR 12/hr*2,832hrs/yr = SR 33,984
1 Engineer @ SR 20/hr*2,832hrs/yr = SR 56,640
39,082
1 Contract Coordinator 11 @ SR 15/hr*2,832 hrs/yr
= SR 42,480*.92
Assume that the Unit Rate Contract will be 5% less
and the value of each of the 15 Short Form
Contracts, which will be covered by the Unit Rate
Contract, is SR 50,000.
37,500
15*SR 15,000*.05 = SR 37,500
54
10 contracts*30 papers/contract*3 copies* SR .06
Less Travel Time
A unit rat contract will
reduce the cycle time
of assigning work to
the contractor from 90
days to 14 days
There will be better
continuity of work by
having the same
contractor do the
work. We will be sure
to get qualified
contractor technicians.
The contractor
manpower will be
familiar with the SECERB standards.
Better manpower
utilization with
professional technicians
and specialists
available. Less time will
be devoted to
developing short form
contracts.
128,178
39,082
115
Hard Costs & Benefits Economic Analysis
Table 12: Hard Cost/Benefits – All figures SRs "Utilize Unit Rate Contracts"
Year
1421
1422
1423
1424
1425
-
-
-
-
-
90,624
90,624
90,624
90,624
37,500
54
37,500
54
37,500
54
37,500
54
Process – incremental cash flows
1. Cash outflows/Costs
Capital Items
Additional capital equipment 1
Expense Items
Operating cost for capital
equipment 1
Additional cost 1
Additional cost 2 (materials)
Total Expenses
Total outflows/cost
2.
Cash inflows/savings
Reduce 1 Engineer, 1 Draftsman
Positions
Better price for services (5%
savings)
Paper
Other
Total inflows/savings
-
128,178
128,178
128,178
128,178
3.
Net cash inflow/outflow (1-2)
-
128,178
128,178
128,178
128,178
4.
5.
Period number
Discount factor (@ 7%)
0
1.000
1
0.935
2
0.873
3
0.816
4
0.763
6.
Discounted cash flow (3x5)
-
119,793
111,956
104,631
97,786
7.
Sum of discounted cash flows
434,166
116
Soft Costs & Benefits Economic Analysis
Table 13: Soft Cost/Benefits – All figures SRs "Utilize Unit Rate Contracts"
Year
1421
1422
1423
1424
1425
-42,000
-42,000
-
-
-
-
39,082
39,082
39,082
39,082
39,082
Total inflows/savings
39,082
39,082
39,082
39,082
39,082
3.
Net cash inflow/outflow (1-2)
-2,918
39,082
39,082
39,082
39,082
4.
5.
Period number
Discount factor (@ 7%)
0
1.000
1
0.935
2
0.873
3
0.816
4
0.763
6.
Discounted cash flow (3x5)
-2,918
36,525
34,135
31,902
29,815
7.
Sum of discounted cash flows
Process – incremental cash flows
1. Cash outflows/Costs
Capital Items
Additional Equipment 1
Expense Items
Create Unit Rate Contract
Implementation Cost
Additional Cost 2 (materials)
Total Expenses
Total outflows/cost
2.
-25,000
-17,000
Cash inflows/savings
.92 Contract Coord. FTE Time
Saving
Paper
Vehicles
Saving 2 (materials)
129,459
117
Chart 2: Implementation Plan "Utilize Unit Rate Contracts"
10. Utilize Unit Rate Contracts to Reduce the Number of SFC on Non-Technical Skills
Tasks
1 Start Up and Preparation
- Select & Schedule Team
- Write Draft Charter
- Identify Project Sponsors and Meet
2 Initial Team Meetings
- Review Recommendation
- Review & Finalize Charter
- Discuss with Project Sponsors
- Develop Detailed Implementation Plan
- Verify Cost-Benefit Analysis
- Develop Detailed Cost-Benefit Analysis
- Gain approval of Detailed Cost Benefit Analysis
Standard Software with All Users
3 Preparation of scope of work for unit rate contracts.
4 Start contract procurement.
1421
1422
Rabi'I
Rabi'II Jumada I Jumada II Rajab
Sha'ban Ramadan Shawwal Dhu-Al-Qa'dahDhu-Al-Hijja Muharram Safar
Rabi-I
Rabi-II
Duration Responsible Dept. 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1 Week Project Manager
Project Mgr,
2 Months Implem.Team
5 Awarding contracts.
4 Months Team, FMD
3 Months Team, FMD
Team, Contracting,
CRD, Contracting
1 Month Mgr., FMD Mgr. SS
6 Mobilization of contractor manpower.
1 Week Team, ITD
Cost SR 17, 700 Participants
SR 4,680
78 Project Manager
SR 6,360
106 Team (3)
SR 1,710
40 FMD
SR 1,920
32 CD
SR 1,920
32 CRD
SR 240
2 CD Mgr.
SR 720
6 FMD Mgr.
SR 150
1 VP. S.S.
SR 0
0
Total Hours
297
4 4 4 4 4 4 4 4 4 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
8 8 8 8 8 8 8 8 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 4 4 4 3 3 3 3 3 3 3 3
0 0
119
8 8 8
8 8 8
1
2 2
8
8
1
2
1
1422 1423 1424 1425
Table 14: Recommendation # 2 "Maintenance Web Page"
Recommendation 2: Maintenance Web Page
Current Situation
Recommended Change
Many maintenance forms and
work orders require manual
processing. There currently is
no
single
source
to
get
maintenance information and to
submit requests electronically.
Users have no access to
trouble shooting hints and work
order status.
Create an interactive Web-page
for Maintenance of all Support
Facilities. Provide a link from the
SCECO main webpage to this
maintenance web page.
No maintenance Website exists
today.
User friendly access to Maintenance information, simple diagnostic hints and
electronic work order request is critical to the future maintenance process.
Predictive maintenance and other changes require the availability of data in
an efficient and effective manner. It is believed that the establishment of a
webpage for Support Facilities Maintenance with the following capabilities and
information will provide easy access and utilization of maintenance data. It
will also provide an electronic link between the maintenance professionals and
their customers.
121
Web Site Capabilities and Information Content:
-
Hints and New Ideas
-
Status of Repairs
-
Link to CMMS data
-
Equipment List
-
Self diagnostics of PCs to maximize performance
-
Equipment Reliability
-
Cost Update
-
Software program to calculate economic life
-
Simple instructions for troubleshooting minor problems and to provide a
status report for customer complaints/work order
-
An electronic library/database of standard contracts, scope of work
(SOW), drawings, maintenance design packages and standards. Provide
electronic review and approval for contracts, SOW and drawings
-
One form for all maintenance request/work orders. Automate all
maintenance forms, work orders, and work permits into electronic
format with electronic routing and approval. Link and combine forms
where appropriate.
-
Create an exchange of information between workshops
-
Identify tools and test equipment available
-
Identify catalogs and manuals available
122
-
Provide the opportunity to share resources
Table 15: Summary of the Benefits "Maintenance Web Page"
Summary of the Benefits
Maintenance Web Page








Improve response time to customer request.
Speed up the maintenance process.
Better utilization of existing network resources.
One reference source for maintenance inquiries.
System is available 24 hours a day 7 days a week.
Cycle time for work orders is reduced.
Eliminate paperwork by automating forms and work orders.
Optimize cost by enhancing the maintenance process.
123
Table 16: Recommendation 3 "Maintenance Call Center"
3: Maintenance Call Center
Current Situation
Recommended Change
Currently there are separate
telephone numbers for many
departments such as TCD and
ITD and no specific telephone
number for OSD to request
maintenance
support.
Work
orders in TCD and OSD are
filled manually and transferred
by fax or by mail to the
technician. Also, the help desk
telephones can only receive one
telephone call at a time and
the phones are often busy.
Establish a call center to cover
OSD, TCD, & ITD. One simple
telephone number will be sued.
The call Center shall receive
complaints through the following
mechanisms:
- Web
- Computerized
Maintenance
Management System (CMMS)
- Telephone
- Fax
- E-mail
- Voice Mail
Then all requests will be integrated
through
the
Web
Page.
The
integration of the above will be done
using
CTI
(Computer
Telephone
Integrator) and IVR (Interactive
Voice Recorder)
Many of the companies were manager visited (Dubai Ports Authority, Dubai
Municipality, Future plans for ARAMCO) have implemented a single focal point
to receive maintenance calls. Customer complains can be received through
many channels like telephone, fax, e-mail, etc. The person receiving the
complaint has the training and authority to resolve minor problems on the
spot. The more complex problems are immediately scheduled with the
appropriate maintenance technician using calendaring software and then an
electronic work order is forwarded to the appropriate department. The work
125
order is also categorized and prioritized using preset guidelines. The call
centers have been fully automated using software packages like Lotus Notes
or Support Magic by NAI.
The call Center provides a customer friendly and personal approach to
assisting customers with their maintenance problems.
Table 17: Summary of the Benefits "Maintenance Call Center"
Summary of the Benefits
Maintenance Call Center
 Reduce cycle time with the immediate creation of a work
order.
 Reduced time and paperwork.
 Better reliability of data and a good statistical record (can be
used to identify most common maintenance problems).
 Easy access and filing of complaints.
 The system is available 24 hours a day.
 Customers can request status of their work orders.
 Improve response time.
 One telephone number to call for all maintenance complaints.
 Work order is fully managed from beginning to end.
 The cost of archiving documents will be reduced.
126
Table 18: Recommendation 4 "Electronic Equipment Repair Shops"
4: Electronic Equipment Repair Shops
Current Situation
Recommended Change
Today there are 4 main
workshops in HQ under FMD,
TCD, ITD and RMD and 3 TCD
Service
Centers.
The
equipment
and
skills
for
repairing electronic equipment
are similar. These resources
are
spread
across
many
workshops.
Also,
the
workshops are located mostly
at HQ.
Establish 3 workshops to repair
all electronic devises (Copiers,
PCs, Telephones, FAX, VCRs,
Cameras, etc). The workshops will
be located close to the customer.



Upgrade technician tools and
equipment by providing IC
testers, Hand Held monitoring
devices, etc.
Sensitive electronic equipment
will be transported in specially
designed
containers
by
qualified technicians.
Create groups of multi-skilled
technicians
as
described
below:
- Multi skilled technicians for
the Electronic Workshops to
perform repairs on all types of
office
equipment
(PCs,
Telephones, FAX, Copiers, VCRs,
TVs, etc).
Electronic devices are becoming more integrated and simpler in design. Many
copiers are being sold today with the capability to be a network printer, fax
machine and scanner. Computers have fax modems as part of their standard
package. Most of the repair requires the replacement of component parts
rather than debugging circuitry logic, which simplifies the repair tasks.
127
It makes sense that in the future aligning the repair capability with these
changes in product design. This recommendation combines the separate repair
functions for telephone, copiers, PCS, Printers, etc, into one workshop. To
significantly reduce the cycle time for these repairs, it was suggested
suggest having three of these integrated workshops located close the
customers.
After significant research with various vendors, it was convinced that it is
more cost effective to have this repair capability in-house rather that subcontracting with a vendor. The main reason is that a vendor will only repair
their own products and will not repair models from a different vendor. Thos
would require SEC-ERB to have vendor contract for each make of equipment
in SEC-ERB possession.
This was confirmed through visits to the Leading Practice Partner companies
where their studies suggested the same and they provide internal resources
to provide repairs to electronic equipment.
128
Table 19: Summary of the Benefits "Repair Shops for all Electronic
Equipment"
Summary of the Benefits
Repair Shops for all Electronic Equipment
 Reduce cycle time of sending the equipment for repair to HQ
workshops.
 Decrease down time since the future workshops will be located
closer to the customer.
 Provide better utilization of maintenance personnel through
multi-skilling.
 Increase equipment efficiency.
 Reduce the transport utilization cost to deliver/pick-up
equipment
 Provides more knowledge and experience to SEC-ERB
employees.
 Minimize the number of contracts.
 Enhance the control of materials and Spare Parts.
 Improve the quality of maintenance work performed.
129
Table 20: Recommendation # 5 " Maintenance Free Materials"
5: Maintenance Free Materials
Current Situation
Recommended Change
Today, most of the equipment,
buildings
and
landscaping
utilized little or no maintenance
free materials. Most of the
building materials are not
updated.
Establish a group responsible for
reviewing the top maintenance
problems
and
recommending
maintenance free materials to
reduce maintenance repairs.
Implement a semi-annual Innovation
Workshop to share improvement
ideas sponsored by SECTI.
Attend Exhibitions to identify the
latest maintenance free materials on
the market.
This practice was implemented at ARAMCO. They stated that maintenance
free materials has reduced the need for maintenance and extends the asset
life. A system was developed to alert when the same type of repairs are
performed frequently. The cause of the problem in investigated and the
quality of the material used us checked. A committee was established to
investigate the availability free materials to help solve or eliminate these
high frequency repairs. This is a continuous look for new products. The initial
cost of the new materials is usually higher but you save money with fewer
repairs in the long run. It is important to develop a go0d history of statistics
to support the higher cost of materials.
131
Table 21: Summary of the Benefits "Maintenance Free Materials"
Summary of the Benefits
Maintenance Free Materials
 No maintenance will be required for materials, which are
proven to be maintenance free.
 Materials will have a longer life.
 Better quality materials will be used.
 Although the initial cost is higher, the total ownership cost will
be less.
 There will be more uniformity across the Company.
 Reduction in paperwork.
 Better utilization of manpower.
 Reduced cycle time.
132
Table 22: Recommendation # 6 "Service Level Agreement & Chargeback"
6: Service Level Agreement & Chargeback
Current Situation
Recommended Change
There are no legal agreements
between
services
provided
Departments and its customers
for the type and level of
services provided and its cost.
Also, there is no chargeback
system for these services.
This
situation
does
not
encourage and environments
which requires people to make
good
business
decisions.
Customers
are
requesting
higher than needed levels of
service and the costs are not
being controlled.
Establish
Service
Level
Agreements (SLAs) with internal
Departments (starting with office
equipments) to provide better
utilization
and
control
of
maintenance resources.
Create a Chafgeback system to
charge back the maintenance
costs for:
-
Computers & Peripherals
Fax Machines
Telephones
Misc. Office Equipment
A.V. Equipment
Relocations
As
per
the
agreement.
service
level
Service Level Agreements (SLAs) typically have been made between user
Company and its suppliers, to specify and regulate the level of performance
that is being expected and paid for. But lately, this service contract concept
has been used by Companies to establish service level agreements between
internal Departments. The main reason this has become an important business
tool it that many internally provided services are spiraling out of control,
especially in the IT Department. To help control these costs, Departments
133
are being required to make choices on which level of service they need and
can justify the cost. Many Companies who have implemented this concept
have been able to better manage their costs.
Service level Agreement identifies certain levels of performance standards
that the service provider must meet or exceed. The SLA also specifies the
consequences of failure to achieve one or more service levels.
To enforce the commitment to this concept and to help Departments run
their functions like a business, many Companies are also establishing a charge
back policy. Departments not only will decide what service level they can
afford (Prices are part of the Service Level negotiations) but they will
budget and pay for these services as they are requested. The Department
budget for these services, which are negotiated with the Service Level
Agreements and are used for planning purposes by the supplier organization.
134
Table 23: Summary of the Benefits "Service level Agreements & Chargeback"
Summary of the Benefits
Service level Agreements & Chargeback
 Allow users to choose the level of service that is appropriate
to their needs with consideration to cost of the service.
 Gives the user a clear description of the level of service they
can expect.
 SLAs help track performance and cost.
 SLAs provide a business environment to better manage
Department requirement and cost.
 Specifies the service provider’s responsibilities and priorities
and optimum utilization of resources.
 Achieve consistency across the Company.
 Establish documents clarifying the roles and responsibilities for
service provided and customer to consult when there is
disagreement.
 Provide alternatives of different process for different levels of
service.
 Ease the Company budgeting and planning.
 Provides more detailed statistics related to the services
provides by Department, location, requestor, etc.
135
Table 24 : Recommendation # 7 " Predictive Based Maintenance"
7: Predictive Based Maintenance
Current Situation
HVAC and Rotating Equipment
are maintained using Preventive
and Corrective maintenance
practices. Some equipment is
being over-maintained while
other piece of equipment is not
getting a high enough level of
maintenance.
Recommended Change
Apply
Predictive
Maintenance
Practices
appropriate:
Based
where
- Conduct
Condition
Based
Maintenance.
- Conduct major P.M. based on
manufacturer task recommendation.
- Cancel P.M. for equipment which
proves not be cost beneficial or
doesn’t
require
P.M.
(I.E.
Refrigerators,
Exhaust
Fans,
Water Coolers, etc.)
Many Companies have changed their maintenance program direction. The
typical maintenance philosophy throughout the industry has been a calendar
based preventive maintenance program. Maintenance is typically performed
without regard for operating conditions and other factors (climate, location,
etc.). Technology and information tools have proliferated and have been
refined to the point where some very reliable indicators can signal a need for
maintenance through remote electronic means or by observation of other
indicators. This reinforces a utility industry trend to reduce maintenance
costs by implementing smart of intelligent maintenance programs.
137
Condition based maintenance programs take advantage of information about
equipment condition (age, location, operations, etc.) for maintenance. New
equipment may not require the frequency of maintenance that older devices
require. Likewise, equipment located in a slat air environment may need
painting more frequently than inland counterparts. This type of approach to
maintenance philosophy provides for a targeted approach to budget allocation.
Reliability
centered
maintenance
also
focuses
maintenance
budgets.
Information must be known about the reliability levels of certain system
components. Worst – performing equipment can be targeted for maintenance.
These results in a healthy increase of reliability, with maximized results for
money spent.
Table 25: Summary of the Benefits "Predictive Based Maintenance"
Summary of the Benefits
Predictive Based Maintenance
Reduce maintenance cost and cycle time.
Eliminate unnecessary PM activities.
Increase productivity and quality of maintenance crews.
Reduce equipment downtime and/or breakdown.
With detailed date collection, failure analysis and the ability to
recognize the true root cause of failures is significantly
enhanced.
 Provide better utilization of manpower.
 Improve reliability of equipment operation.
 Decrease P.M. and C.M. work orders.





138
Table 26: Recommendation # 8 " Hand Held Data Input Devices"
8: Hand Held Data Input Devices
Current Situation
Recommended Change
Technicians normally collect
data on equipment in writing on
a P.M. sheet, which then
recorded on paper for a hard
copy reference. A computer
operator puts some of this
information into the current
maintenance database.
Provide Hand Held Electronic
Data
Input
Devices
to
Maintenance Technicians for easy
and
accurate
input
of
Maintenance data at the job site.
Our future process will depend on the accurate collection of equipment data.
The maintenance scheduled through the utilization predictive maintenance
approaches will only be as effective as the database created in CMMS.
The automation of data entry has a direct effect on the accuracy of the
information being input into the database. The fewer hands involved in
inputting information reduce the chances of mistakes. Also, automation can
eliminate the need to input all details about a piece of equipment with the
ability to recall equipment history data.
We recommend the purchase of Hand Held Data Entry Devices for the
Maintenance Technicians to directly enter equipment operational data.
Equipment history information, PM sheets and maintenance schedules can be
139
downloaded into the devices to provide information to the filed maintenance
technician and reduce the effort in recording equipment data. At the end of
the day, the new equipment information can be up-loaded directly into CMMS
database. These electronic data entry devices will reduce the number of
hands required to enter data.
Table 27: Summary of the Benefits "Hand Held Data Input Devices"
Summary of the Benefits
Hand Held Data Input Devices
 Provide more accurate and reliable data by reducing the
opportunity for errors in the recording of data.
 Reduce Cycle Time for equipment inspection.
 Increase Maintenance Productivity.
 Reduce paperwork and forms.
 Eliminate data entry for updating records.
 More data can be collected in a short time.
140
Table 28: Recommendation # 9 " Make CMMS the Standard Database"
9: Make CMMS the Standard Database
Current Situation
Recommended Change
Currently TCD and ITD have
their own database system
while
other
Departments
involved
in
the
Facility
Maintenance are using CMMS,
which is replacing the MIMS
system.
Use CMMS as the standard
Maintenance Database for all
Departments
involved
in
maintenance (ITD, TCD, OSD,
PTD, GD, etc).
Establish a task team to load the
CMMS with information such as;
Equipment
Operation
manuals,
Exploded View of the Equipment,
As-build Drawings, Failure Types,
Major CM Tasks, Video clips of
Maintenance Practice and spare
parts lists.
All Leading Practice Partner Companies have established or are currently
implementing CMMS as a database for all of their maintenance information.
Having separate databases for the maintenance of different types of
equipment increases the cost to the Company and decreases the access to
data. Having one common database allows the Company to better manage the
data and to keep the system up to date with the latest releases. The
current CMMS, which was purchased by SEC-ERB, has the function needed
to satisfy all users.
141
Some of our Leading Practice Partners loaded the CMMS with relevant
information, which can be utilized by the Technicians. An example of this
was found with Saudi Binladen Group who had video clips of their maintenance
practices for some of their major equipment available through the CMMS.
Also, Dubai Port Authority is planning to establish links with their equipment
vendors through the Internet to be able to obtain the exploded view of their
equipment.
Table 29: Summary of the Benefits "Make CMMS the Standard Database"
Summary of the Benefits
Make CMMS the Standard Database
 Make
more
maintenance
related
information
available
electronically and provide easy reference to information by
Technicians.
 Reduce the usage of paper and filing space.
 Increase Technicians efficiency and quality of maintenance
work.
 Reduce cycle time in the maintenance process.
 Reduce the number of database systems to upgrade and
provide enhancements from three databases to one common
database.
 Will enhance the technician’s capability in troubleshooting and
repairing equipment.
 Will provide quicker service on equipment repairs.
 Provide as-build drawings in the CMMS and encourage updates.
 Needed material can be quickly identified.
142
Table 30: Recommendation # 10 "Improve P.C. Repair and Support Network"
10: Improve P.C. Repair and Support Network
Current Situation
Recommended Change
Each
Department
has
a
designated Coordinator to solve
IT equipment problems in
addition to his regular duties
and
responsibilities.
This
person may not have the
knowledge or experience to
solve many of the customer’s
problems.
Simplify
P.C.
hardware
&
software
repair
and
provide
better support for the LAN/WAN
network by:
The current cycle time to
repair PC problems is long
because the maintenance is
performed at the customer
site by a technician or the
P.C. is delivered to the Central
Repair Shop at HQ.
- Train the current Department
Coordinators
to
function
as
Department LAN Administrators
who will take full responsibility to
maintain LAN connections and P.C.
equipment
connected
to
the
network.
- A diagnostic software package will
be
purchased
to
repair
software/configure
files
and
hardware problems remotely over
the network.
SEC-ERB’s computer network infrastructure is almost complete. Maintaining
this network will require designated persons who will assist in maintaining the
ever-increasing number of P.C. and their peripherals.
Remote diagnostic software will provide IT the power to resolve hardware
and software problems of PCs, which are remotely located from the IT
Department by accessing the PCs over the network. Also, users ca request
help on using a software package or creating a chart since IT professionals
143
will have the capability to gain access to a user’s screen and the user’s
software application software.
Overall response time for resolving user problems will be drastically reduced
while simplifying the task of problem resolution for the Maintenance
technician.
Table 31:Summary of the Benefits "Improve P.C. Repair and Support
Network"
Summary of the Benefits
Improve P.C. Repair and Support Network
 Quick service will be provided to the customer.
 Cycle time to repair hardware and software problems will be
reduced.
 Customers can get help on individual software by IT having
remote access to a user’s computer.
 Cost of delivery will be reduced.
 Standard software will be provided to the customers.
144
Table 32: Recommendation # 11" Improve Material Delivery"
11: Improve Material Delivery
Current Situation
Recommended Change
Department technicians and Material
Man are picking up material form the
Material Management Department
(MMD) warehouse.
Increase Availability and Expedite
Delivery of material by:
- Providing MMD Truck service twice a
week on a fixed schedule to FMD at
Headquarters (HQ), Training Center
(SECTI),
Hofuf
Operating
Area
(HOA) and Mansura.
Vendors refuse to deliver low
value/small quantity of materials
under
the
current
Purchase
Commitment Agreement (PCA).
- Increasing vendor to stocking Facility
Maintenance materials and include
delivery by quick Express Service.
Concerned Departments and MMD
Petty Cash Buyers are searching
material in market or vendors who
are agent and can obtain request
items.
- We strongly support the MMD study
to establish a Communication Link and
E-Commerce between SEC-ERB and
Vendors using an Internet service.
We request that user Departments
can have direct access to vendor
information.
It takes MMD a long time to procure
materials
under
direct
charge
Material Purchase Request (MPR) in
bidding approval of purchase order,
receiving and delivery.
- Increasing the approval authority: for
petty cash purchases of Unit Head to
SR 1,000, for PCA of Supervisor to
SR 10,000 and for Supt. Authority
to SR 50,000. Update the new
approval authority in the authority
manual.
There is limited purchase of items
under petty cash due to policy and
limited approval authority amount (SR
500 for Div. Head and SR 1,000 for
Dept. Head).
- Replacing the use of Petty Cash by
providing Senior Technicians and
Foreman
with
Corporate
Credit
Cards/ATM
Cards
to
purchase
maintenance materials as authority by
the Department Manager.
The availability and delivery of material can have a major impact on the
maintenance technician’s ability to respond quickly to a customer request.
145
Having the vendor stock some of the materials currently in the SEC-ERB
storerooms and requesting the vendor to deliver the materials when required
will reduce our costs of storage and will reduce the cycle time for material
delivery.
Increasing MMD Truck Service to critical delivery points for Support
Facilities Maintenance will drastically reduce the cycle time for the deliver of
spare parts and materials. This will also reduce the unproductive time
Maintenance Technicians spend getting the needed materials.
Providing an alternative to petty cash by issuing credit cards or ATM cards
to Senior Technicians will provide significant reductions in the time requires
purchasing materials for emergency work. The credit card/ATM card will
restrict the amount, which can be purchased at the same time. The credit
card vendor provides a detailed statement of all purchases made by all credit
card holders. This record can be very beneficial for tracking and auditing
purposes.
Increasing the approval authority for petty cash type transactions will also
reduce the time to secure materials needed quickly for an urgent repair.
146
Table 33: Summary of the Benefits "Improve Material Delivery "
Summary of the Benefits
Improve Material Delivery
 Better utilization of maintenance personnel to perform
maintenance work.
 Cycle time will be reduced to perform work due to the
availability of material.
 Quick response to user with the ability to quickly search for
and obtain materials (Reduction in time for bidding, approval
of purchase order).
 MMD Inventory cost can be reduced as vendors will stock items
and deliver those to the user Department. Also transportation
costs by MMD will be reduced.
 Reduced cycle time by increasing the approval authority for
petty cash purchases and providing Credit Card/ATM Card.
 Paper work will be reduced for requesting petty cash, by MMD
bidding, Communication with vendor for quotations, etc.
147
Chapter 5
Summary and Conclusion
5.1 Introduction
This chapter presents a summary of the study and conclusion on the
case study of the Business Process Improvement conducted by Saudi
Electricity
Company
–
Eastern
Region
Branch
(SEC-ERB).
Recommendations to improve the quality of the BPI or BPR project are
presented also. There is no single method that can apply everywhere or
considered the ideal methodology. Hence, studying in detail a case study
of
BPI could pave the path for further studies based on actual
practices which eventually led to the improvement of BPI or BPR future
projects.
5.2 Summary of the Project and Conclusion
The Business Process Improvement (BPI) case study of Saudi Electricity
Company – Eastern Region Branch (SEC-ERB) presented in this report is
intended to show the BPI methodology in detail of how each process was
done and why. During the project preparation, visits to SEC-ERB were
done to collect the relevant information and data collected during the
excursion of the BPI study "Maintain Support Facility". This report
148
contains mainly three items, introduction, literature about the subject
and the case study itself. The case study starts with the introduction
of the BPI phases. The phases are the start up & preparation phase,
the current state, the future state and finally the implementation
phase. Each phase has been summarized and presented the findings that
the project team formulated. Since the project data are huge, this
forced the concentration of one of the six the sub-processes which is
sub-process 3 "Perform Corrective Maintenance". The rest of the subprocesses were conducted in exactly similar methodology as in subprocess 3. Unfortunately, after the BPI project completed SEC-ERB
merged with all the electrical companies in the Kingdom to form the
Saudi Electricity Company (SEC) which as a result delayed and reduced
attention to BPI recommendations implementation. Further, this also
made more difficult for the report gathering of information and data
since some of the BPI core team were very busy or transferred to other
areas to help for merging process. Eleven recommendations are the final
result of BPI project and those were presented at chapter 14
"Recommendations
Improvement
Analysis".
Leading
practices
are
implemented at the future state which includes a research of the most
advanced practices to conduct the major process and the sub-processes.
It included site visit to the companies and businesses which they assume
that they are doing the service in a better way. It includes also search
149
in the internet of best practices. Examples of the leading practices were
presented in chapter three. Each phase step was presented and analyzed
to show how it was implemented.
5.3 Recommendations
An excellent recommendation is a mixture of excellent methodology and
management support. Hence, all recommendations were supposed to be
studied and should not be ignored at any time. All resources should be
available fro the team members all the time upon needed such as
internet access during all project phases, allocation of resources for
leading practices site visits to travel anywhere if needed without any
restrictions from neither the executive sponsor nor the process manager
for limited resources. This will cause the moral of the team members to
drop especially if they are confident that this would be very helpful.
Further, taking more accurate measurement to record process data such
as the process cycle time and the FTE's. None of recommendation nor
from the business case models studied the outsourcing of the entire
major process or at least one of the sub-processes to compare the costs
between
them.
investigation.
It
This
was
could
be
noticed
an
that
item
after
for
all
further
this
study
and
effort,
the
implementation phase was not done effective. This could be because of
two major reasons. One could be due to the merging process with other
150
electrical companies in the kingdom which consumed most of the effort
and
resources.
Or
it
could
be
the
executive
management
miscommunications to the subordinated for enforcing the recommendation
changes application. This step needs advertisement to all employees to
encourage them to apply the new recommendations. I addition, further
consideration of the methodology of the cost versus benefits in order to
make sure that no recommendation would be eliminated or approved
because of hidden factors not considered. The development of a
software program of the methodology implemented for future BPI
projects execution. Finally, further study of the possibility of simulation
program or process to assess more to the possibility of success or
failure of a recommendation.
151
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