Benchmarking of Utilities for Performance Improvement · PDF fileBenchmarking of Utilities for...
Transcript of Benchmarking of Utilities for Performance Improvement · PDF fileBenchmarking of Utilities for...
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Benchmarking of Utilities for Performance
Improvement
Dennis D. Mwanza,Water and Sanitation Program8th December 2006
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CONTEXT
Most public utilities not operating efficiently in Africa
High Unaccounted for Water (NRW) Low Cost recovery Low Tarrif levels High staff per 1000 connections Availability of supply
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Context contd
Problem of capacity to deliver.Decades of public investmentPoor sector and institutional arrangement choicesMany public sector management issues Problems of financial viability Accountability Autonomy Lack of regulatory framework Institutional organisation of water
service delivery
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Performance Indicators and Benchmarking
Benchmarking is the search for industry best practices that lead to superior performance.
- Robert C. CampIt is understood as the process foridentification, understanding andadaptation of remarkable practices andprocesses of other organizations to helpthe improvement of its own performance
BENCHMARKING has been used as a toolby the water sector industry over the lasttwenty years
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CONCEPTS OF BM FOR Utility
Better service qualityHigher resources productivityHigher satisfaction by ConsumersHigher general return for thecompanyEnvironment improvementBasically higher operationalefficiency
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Humility to accept that there may be otherCompanies with a better performance butunder similar socio-economic environment
Wisdom to learn the changes that may arisefrom comparison
Ambition to introduce the necessary actions Effectiveness to accomplish the programmed
goals
The BENCHMARKING ProcessRequires:
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Benchmarking initiatives
Global and other REgions:IWAIBNETSouth Asia Utility data bookBenchmarking of utilities in Brazil
RegionalWater Utility Partnership Performance Indicators and Benchmarking Project
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IWA Benchmarking initiative
The objectives of the initiative was to: develop generally accepted procedures and methodologies able to provide decision makers with an overall perception of the utility performance as a sound basis for making strategic choices. Clear definition of a reference framework for Performance Indicators and Benchmarking methodologies, as well as adequate models of aggregation that fit the basic needs of the key types of user.
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IWAs motivation
Demand from IWA members for guidelines on Performance Indicators
the definition of a common reference for PI that fits the basic common needs of the key types of users in the Water Industry
Main target users: the utilities themselves.
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Output
A standardised PI language, covering:
syntax (structure)morphology/semantics (vocabulary and definitions)
etymology (from data to PI)
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REGION
Direct consumersDirect consumersIndirect consumersIndirect consumers
ProPro--active consumersactive consumersFi
nanc
ial
Fina
ncia
lre
sour
ces
reso
urce
sService Service
Technological assetsTechnological assets
Human resourcesHuman resources
Physical assetsPhysical assets
WA
TER
UTI
LITY
WA
TER
UTI
LITY
Environmental Environmental resources:resources:-- Water Water -- EnergyEnergy
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Structure of the final document
Context informationUtility profileSystem profileRegion profile
Performance indicatorsWater resources indicatorsPersonnel indicators Physical indicatorsOperational indicatorsQuality of serviceFinancial indicators
Input data definition and Input data definition and processing rules processing rules
Definition diagramsDefinition diagrams-- water balancewater balance-- water losseswater losses-- utility functionsutility functions-- financial definitionsfinancial definitions
IntroductionIntroduction
GlossaryGlossary
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AGLOMMERATIONAGLOMMERATION
Definition of water balance terms
catchcatch--mentment
treattreat--mentment
transtrans--missionmission storagestorage
distridistri--butionbution
transmistransmis..water useswater uses& losses& losses
storagestoragewater useswater uses& losses& losses
distributiondistributionwater useswater usesand lossesand losses
treatmenttreatmentoperational operational
usesuses
AbstractedAbstractedmeteredmetered
waterwater
Produced Produced metered watermetered water
DistrictDistrictmeteringmetering
meteringmeteringapparentapparentlosseslosses
Imported Imported treated watertreated water
Exported Exported waterwater
Imported Imported raw waterraw water
Supplied Supplied waterwater
Distribution Distribution inputinputTransmission
Transmissioninputinput
M watermeter
MMMM
M
M
M M M
M
M M M
MMM
M M M
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Total Total authorised authorised
consumptionconsumption[m[m3 3 /year]/year]
Total water Total water losseslosses
[m[m33 / year] / year]
Billed waterBilled water
[m[m3 3 /year]/year]
NonNon--revenue revenue water water
(unaccounted(unaccounted--for water)for water)
[m[m3 3 / year]/ year]
Billed authorised Billed authorised consumptionconsumption
[m[m33 / year]/ year]
Unbilled Unbilled authorised authorised
consumptionconsumption[m[m33 / year]/ year]
Billed metered consumptionBilled metered consumption(including exported water)(including exported water)
Billed Billed unmeteredunmetered consumptionconsumption
Unauthorised useUnauthorised use
Metering inaccuraciesMetering inaccuracies
Apparent lossesApparent losses[m[m33 / year]/ year]
Real lossesReal losses[m[m33 / year]/ year]
Unbilled metered consumptionUnbilled metered consumption
Unbilled Unbilled unmeteredunmetered consumptionconsumption
Leakage on service connections Leakage on service connections upstream the delivery pointupstream the delivery point
Leakage and overflows of Leakage and overflows of storage tanksstorage tanks
Leakage on transmission and Leakage on transmission and distribution systemdistribution system
Leakage on raw water mains & Leakage on raw water mains & treatment real lossestreatment real losses
TOTA
L WAT
ER IN
PUT
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Water resources indicators
Personnel indicators
Physical indicators
Operational indicators
Quality of service indicators
Financial indicators
Number of PI proposed
HighHighLevelLevel
IntermedIntermed..LevelLevel
LowerLowerLevelLevel
11 101044 1515
00 8855 1313
88 16161313 3737
88 331919 3030
77 16161515 3838
2626 53535656 135135
22 0000 22
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High level PI
Water resources indicators (2 PI)Efficiency of water resources use (%)Resources availability ratio (%)
Personnel indicators (1 PI)Employees per connection (No./1000
connections)Physical indicators (0 PI)
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High level PI (cont.)
Operational indicators (8 PI)Mains rehabilitation (% per year)Total water losses (l/connection/day)
real losses per service connection (l/connection/day)
apparent losses per service connection (l/connection/day)
Mains failures (No./100 km/year)Service connection failures (No./1000 connections/
year)Water quality - Samples tested (No. /106 m3/year)
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High level PI (cont.)
Quality of service indicators (8 PI)Buildings supply coverage (%)Public taps and standpipes
distance to households (m) quantity of water consumed (%)
Continuity of supply (%)Water interruptions (%)Quality of supplied water (%)Service complaints (complaints/connection/year)Billing complaints (complaints/connection/year)
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High level PI (cont.)
Financial indicators (7 PI)Average water charges for direct consumption
(US$/m3)Average water charges for exported water (US$/m3)Total cost coverage ratio (-)Operating cost ratio (-)Contribution of internal sources to investment (%)Current ratio (-)Non-revenue water (%)
The output was in word files.Demonstration given below
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WR_Efficiency_of_water_resourcesA_Authorised_ConsumptionA_Water_AbstractedA_Imported_raw_waterA_Imported_treated_waterA_Authorised_Consumption
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A_Billed_Authorised_Consumption
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International Benchmarking Network (IBNET)
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WUP SERVICE PROVIDER BENCHMARKING NETWORK (SPBNET)
Improvement of data collection and analysis of utilities in AfricaProvide a management tool for self evaluation for the operators, benchmarking for utilities with similar operating environments, Promoting experience sharing between the utilities and documenting and sharing information on emerging best practices and lessons on water supply and sanitation
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Project organisation and implementation
Project funded by DfID, implemented by WUP with assistance from WRc as Benchmarking advisorsProject Manager (Consultant) assisted by 7 Regional Consultants interface with utilitiesRegional Consultants workshopConsultation workshops for Development of questionnaire, clear understanding of all the questions e.t.c.
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Regional arrangements
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Development of questionnaire
Questionnaire defines the data available and forms the basis upon which utilities can benchmark one with anotherBalance what is desirable with what is