TNB Generation Operational & Maintenance Transformation

Transcription

1 CEPSI 2016 BANGKOK, THAILAND 24 th 27 th OCT 2016 TNB Generation Operational & Maintenance Transformation Ir Dr Zainul Asri Mamat Amiruddin Rahmat Genera5on Division (Transforma5on) Tenaga Nasional Berhad

2 Our Business T N B Power Genera5on TENAGA NASIONAL BERHAD is the largest electric u5lity in Malaysia. It is a Government- Linked Company with USD 21 bill worth of assets. CORE BUSINESS Power Transmission Power Distribu5on OTHER BUSINESSES Research and development (TNBR) Repair, maintenance & diagnos5c services (REMACO) Training (ILSAS) University (UNITEN) Hydro Plant Transmission Lines Substations Commercial Industrial Residential Transportation Overseas ventures (Turkey, India, Saudi, Kuwait, Pakistan) Thermal Plant 2

3 Generation Division of TNB Our Generating Fleet is a mixture of Gas Fired Plants, Coal & Hydro Grid Installed Capacity 22,802.5MW TNB 56% 56% 12,717MW net of total installed capacity in Peninsula Malaysia 2 stations IPP 44% Coal-fired: 4,560MW 8 stations Gas-fired: 6,008MW 3 stations Hydro: 2,149MW 0.0 Prai Gelugor Sg. Perak Manjung 1 17,788MW Manjung 2 C. Highland Kapar C. Bridge CBSB 22,802.5 MD Date: 24 April 2016 Putrajaya P. Dickson Grid Maximum Demand P. Gudang H. Trgu Kenyir Paka 3

4 Main Components of Revenue Stream of SLA/PPA Revenues through Capacity Payment (CP) & Energy Payment (EP) The SLA framework was adopted by Power Plants, which is similar to the PPA s between TNB and IPPs The capacity payments includes a project return of 7.5%, which was TNB Group s WACC in FY2008 As per regulator License requirements. Including upgrading & upra5ng works for efficiency improvement Factors that have an impact on SLA performance TAAC (Tested Annual Available Capacity) Energy Output (Sales) Availability Target (AT) UOR (Unplanned Outage Rate) FDI (Failure to comply with a Dispatch Instruc5on) FMT (Failure to comply with a Monitoring Test) Capacity Payment 3 Capacity Rate Financial (CRF) EPC Cost Fixed Opera5ng Rates (FOR) Staff Cost License Fee Water Royalty Capacity Payment 1 Cost of borrowing Returns/Profit General Expense Insurance Other Fixed Cost Payments to enable Seller to meet financial obliga5ons and Fixed Opera5ng Expenses 2 SLA/PPA PM Cost Overhaul Cost Fuel Cost Variable Opera5ng Rate (VOR) CM Cost Perf. Improvement initiatives Fuel Payment Efficiency Energy Payment Energy Payment Payments to enable Seller to meet fuel cost and payments for Variable Opera5ng Expenses 4 4

5 SLA/PPA Performance Gap PPA/SLA performance gaps from FY14, FY15 and FY16 FY14 FY15 FY16 FY2014 FY2015 FY 2016 Sta6on SLA/PPA Performance Gap (%) CRF Variance SLA Plants Non-Legacy Plant -8% -2% -6% Total SLA/PPA Gap FY2014 FY2015 YTD Aug % Fuel Variance FY2014 FY2015 FY % -0.5% -1% -4% -3% Closing of total SLA/PPA gap from -4% to +1%. FY2014 FY2015 FY 2016 FOR VOR Variance + OMI -35% -32% 18% Source: Station SLA report, Gen Finance 5

6 Emphasis on the Business Mindset in Power Plants Tracking on SLA / PPA Performance 6

7 Generation Division Transformation Framework Business Excellent through COE & Generation Academy O&M Aspira6on Achieve business excellence Commercial SLA / PPA (ROA EBITDA, CRF, FOR VOR, FUEL) BUSINESS EXCELLENCE Technical EUOF EAF COE Business Design Ensure seamless business process Generation HQ Benchmarking & KPI Settings Breakthrough Projects Central Outage Planning Critical Equipment Technology Services Centralized Inventory Management COE Power Stations Idea Lifecycle Business Performance Best Practices Communication & Engagement GEN ACADE Personnel Development MY Con6nuously develop pool of talents and leaders Business Leader Entrepreneur Leader Technical Leader GENERATION ACADEMY Develop Genera5on personnel becoming SME (Subject Mager Expert) Field Leadership Forum Business Acumens Technical 7

8 Generation Division Transformation Program Operational Cost Efficiency Generation Academy 8

9 Four Pillars of Generation Transformation Program Engagement of Initiative Owners, some have been translated as KPIs for HQ / Stations Improve Availability: 1. Planned Outage (Reduce DuraCon) & 2. Unplanned Outage (Reduce Freq & DuraCon) 3. Efficiency Improvement & Sustainability 1A 2A Op5miza5on of Outage Management Strengthen Technical Capability 3A Opera5onalizing Centralized Performance Analysis & Diagnos5cs (Performance & Reliability) 2B Rollout knowledge based maintenance strategy to strengthen PM 3B 3C Ins5tu5onalizing Performance in The Control Room Widening the Plant Energy Audit Program 5. Op6mize Inventory Level 5A Remove obsolete inventory 5B Reduce stock of slow moving non-cri5cal items 5C Pool slow moving cri5cal items KR A #3 4. Op6mize auxiliary power consump6on 4A Realign auxiliary power consump5on during plant min. loading / normal loading 5D 5E Stock Op5miza5on Level Module Future Procurement: Gatekeeper 9

10 Improvement of Plant Availability: Planned Outage Emphasizing 6-Step Dura6on Op6miza6on ( buffer at the end ) External Internal Steps Job start 0 Machine down5me Job end 60 1 Observe and measure total job 5me 2 Separate internal and external tasks; perform external ones while equipment is running Convert internal tasks into external ones wherever possible Eliminate internal waste Eliminate external waste Standardize and maintain best prac5ce

11 Some Quick Wins on The Outage Optimization Actual number of the outage reduc5on aner the implementa5on of the outage op5miza5on 2DAYS 3DAYS 3DAYS 2DAYS 1DAY SJ TUANKU JA AFAR GT1B MAJOR OVERHAUL SJSAS MANJUNG U2 OUTAGE SJSI PASIR GUDANG CCP OVERHAUL SJSI PAKA COMBUSTOR INSPECTION++ SJ TUANKU JAAFAR GT1A MAJOR OVERHAUL 3DAYS 3DAYS 20DAYS 1DAY SJ CAMERON HIGHLAND JOR U2 OVERHAUL KAPAR ENERGY VENTURES KEV U2 OUTAGE SSJ SG PERAK PGAU U1 OVERHAUL SJ CONNAUGHT BRIDGE GT1B 11

12 Improvement of Plant Availability: Unplanned Outage Focusing on prevention & speeding up the recovery Reducing overhaul critical path through parallel activities & contractor management Capability building on wrench time analysis/ FMEA / RCA IPDM (Smartsignal) project launched Early anomaly detection Shared best practices process flow and management Breakthrough project process flow and management APMS launched as knowledge based management RCA module fully operationalized GLGR fully boarded, other stations target completion Dec 2015 Energy audit work scope framework developed Powergauge benchmarking with international peers Process improvements MPO guideline rolled-out MSA with REMACO rolled-out Asset Maintenance Philosophy launched Consolidated divisional reporting launched EBITDA waterfall analysis Revised KPIs with SLA performance orientation Inventory optimization initiatives Obsolete parts process identification Capitalization of high value slow moving items Inventory model developed Efficiency war room established for shift operators Continuous monitoring of critical parameters Performance dialogues and discussion 12

13 Performance Management In The Control Room Based on clear direction setting and accountability Performance management cascade Targets Targets Site management Top management KPIs Targets Shopfloor management KPIs Shopfloor KPIs 13

14 Generation Division Transformation Program Operational Cost Efficiency Generation Academy 14

15 Develop & Set Up Generation Academy Field & Forum Approach for SME Forum Field Charters / Transformation Engine SME0 6 months fulltime at Pilot Stations Existing Process: Why Not Performing? Develop improvement mechanisms (internal / external sources) Interject new best practices Outcome: Improved systems / processes / methods (eg: MPO Schedule Challenge? SME1 4-6 months assigned to SME0 Aligned to their current works / responsibilities Apply to their daily work Continuous improvement 15

16 SME Journey SMEs are coached throughout the program Skills area Green belt (L1) 6-9 months Practice and training Learn by doing following an expert L1 Black belt (L2) 9-18 months Independently run initiative Independently coach others Rotate to other functions or units (optional) L2 Master BB (L3) months Teach technical module Independently run diagnostic Coach other coaches Required rotation to other functions or units L3 Architect (L4) 36+ months Design integrated transformation programs (including diagnostic, wave process, and coach development) Manage academy of coaches (head of coaches) L4 Technical skills To be created by each academy Management infrastructure Idea generation through creative thinking Setting KPIs MBTI How do I leverage my own strengths? 7-step problem solving approach Coaching and feedback Mastering effective conversations Assertiveness and effective communication Time management Conduct performance dialogues Implement visual management/ performance metrics Financial impact Translating insights into action Decision making Managing the market (business implications) Risk management Mindsets, behaviors, and capabilities Diagnosing mindsets Understanding approaches to shifting mindsets How to build trust with others Understanding self What gives me motivation, what triggers my energy Leadership styles Building presence Setting aspirations for the team Conflict management Energizing a team Influencing without authority Managing the transformation journey (maintaining momentum) Instill sense of accountability in the team Taking accountability Role modeling new behaviors Source: McKinsey 16

17 SME development programs A total of 155 executives (25%) have been exposed & trained fully on Field & Forum Station Exec SME 0 SME 1 SME 2 SME 3 SJ Manjung forum 15- field & forum 4 SJTJ PD SSJ Sg Perak SJ P. Gudang SJJC SJ Gelugor SJSI Paka SJ Putrajaya SJSM Kenyir SSJ Cameron Highlands KEV 2 HQ Total

18 ROLE OF SME3 Distinct from SME1 & SME2, which their role are analyzing and generating initiatives to close the gaps while SME3 are to unlock the values by: Leading the problem solving process and close the business performance gap Embedding the best-practices on business process for continuous improvement Performing strategic thinking for future planning and forecasting the gap that possible in your business unit 18

19 Transformation Reflection The Eight Step Process of Successful Change 7. Don t Let Up 5. Empower Others to Act 4. Communication for Understanding & Buy In 6. Produce Short Term Wins 8. Create New Culture 3. Develop the Change Vision & Strategy 2. Pull Together the Guiding Team. 1. Create Sense of Urgency 19

20 THANK YOU Prepared by : Transformation Department Generation Division Tenaga Nasional Berhad