Management Consulting to Define a Corporate Wide EAM Initiative
Company and/or Industry Vertical:
Gas and Electric Utility
The Client is the largest energy utility in the state of Washington and considered mid-sized nationally. It is a combined gas and electric Utility company in the Pacific Northwest. Client is providing Electricity from Generation all the way to its 1.0 million customers. Approximately 46 percent of the electricity Clients customers use comes from Client’s own power plants. Client currently has more than 3,500 megawatts of power-generating capacity. The rest of their power supply is purchased from a variety of other utilities, independent power producers and energy marketers across the western United States and Canada. The Client does not supply the city of Seattle. Seattle City light owns that service territory.
The Client introduced Washington territory to gas lighting in 1873. Today they operate the state’s largest natural-gas distribution system serving more than 770,000 gas customers in six counties. All the gas the Client acquires is transported into their service area through large interstate pipelines owned and operated by another company. Once the Client takes possession of the gas, it is distributed to customers through more than 21,000 miles of self-owned gas mains and service lines.
Current Situation (Customer):
- The Client is an existing SAP customer
- Implementation was done a few years ago
- The business is currently purely financially driven. Operational interests are taking a back seat
- The CEO, coined a tag line “Get to Zero” (GTZ) to drive customer call-center calls to 0. Even though she realized that absolute zero is an impossibility, she rallied the troops behind it.
- The directors of Electric Ops and Gas Ops saw this as an opportunity to drive their EAM initiative. One case they made is that bad system reliability is increasing outages, increased amount of outages drives call volume up.
Rizing got involved in an effort by SAP to help the Client find most suitable solutions to their business needs. After winning the customers trust and coinciding with the CEO’s call to GTZ, Rizing was asked to support the facilitation and business case generation for the Get To Zero Initiative.
- Facilitation of business stakeholder meeting to define the scope of the Get To Zero Program
- High Level Cost and Benefit analysis of GTZ components
- Assembly of 600+ million-dollar program
- Scope Definition of all parts of the 120 million dollar EAM
- Development of implementation timeline
- Prioritization of EAM sub program components
- Preparation of director response to CEO challenge
Implementation Highlights and Challenges
- Definition of a complete (green field) EAM portfolio including high level cost
- Tying EAM component to customer call reductions and educating all business teams as to the value of EAM.
Implementation Timeline and Phases, Including Start and End dates:
September 1st – December 31st 2016
Describe the results achieved.
- Support the creation of a dedicated organization within the Client’s company to run the Get To Zero initiative
- Quantification of what it will take to drive the company to zero calls
- Education of the business stakeholders on the individual pieces necessary and the connection between them.