Presentation Presentation at the UPDEA Standardization Colloquium at the UPDEA Standardization Colloquium

held in Cape Town South Africaheld in Cape Town South Africa

StandardizationStandardization –– ZESCOZESCO’’s Experiences Experience

Presented by:Presented by:Daniel SichelaDaniel Sichela

(Principal Engineer (Principal Engineer –– Technical Support Technical Support Services)Services)

2828thth to 29to 29thth May 2007May 2007

Introduction (ZESCO)Introduction (ZESCO)Standardization in ZESCOStandardization in ZESCOStandardization ChallengesStandardization ChallengesMotivationMotivationMethodologyMethodologyAchievementsAchievementsConclusionConclusion

CONTENTSCONTENTS

Introduction ….Introduction ….

ZESCO LimitedZESCO Limitedis a parastatal company under the Companies is a parastatal company under the Companies Act. Act. was established in 1970was established in 1970Is vertically integrated (Generation, Is vertically integrated (Generation, Transmission, Distribution and supply)Transmission, Distribution and supply)

Introduction ….Introduction ….

Generation – Major Hydro Power Stations prior to the Power Rehabilitation Project

– Kafue Gorge Power : 900 MW

– Kariba North bank : 600 MW

–Victoria Falls : 108 MW

Generation – Small Hydro Power Stations

–Lusiwasi : 12 MW

–Musonda Falls : 5 MW

–Chishimba Falls : 6 MW

–Lunzuwa River : 0.75 MW

Introduction….Introduction….

INSTALLED HYDRO GENERATION CAPACITY AFTER REHABILITATION PROJECT

Generation capacity

Before PRP: 1631.75 MW After PRP: 1841.75MW

Kafue Gorge

Before PRP 900 MW

After PRP 990 MW

Kariba North Bank

Before PRP: 600 MW

After PRP 720 MW

Vic Falls

108 MW

Mini Hydros

23.75 MW

Generation –Isolated Diesel Power Stations

– Mwinilunga 0.68 MW

– Kasempa 1 MW

– Kaoma 0.8 MW

– Kabompo 0.75 MW

– Zambezi 0.75 MW

– Lukulu 0.68 MW

– Lundazi 1.4 MW

– Luangwa 0.27 MW

Introduction ….Introduction ….

Introduction ….Introduction ….Transmission - National Grid

Introduction …..Introduction …..

DistributionDistribution

Four DivisionsFour DivisionsSixteen RegionsSixteen Regions310,000 customers across the country310,000 customers across the country

STANDARDISATION IN ZESCOSTANDARDISATION IN ZESCO

Standardization challengesStandardization challenges

Diversity of systemsDiversity of systemsGenerationGenerationTransmissionTransmissionDistribution and SupplyDistribution and Supply

Plant spread through out the countryPlant spread through out the countryWorkforce spread through out the countryWorkforce spread through out the countryDifferent Different

Equipment and componentsEquipment and componentsMethods and ProceduresMethods and ProceduresSpares requirementsSpares requirements

Common Bulk StoresCommon Bulk StoresCommon stores having too much stock Common stores having too much stock

Multiplicity of equipment and components Multiplicity of equipment and components entails: entails:

high stores inventoryhigh stores inventoryCumbersome procurement processesCumbersome procurement processesIncreased engineering time (Specifications)Increased engineering time (Specifications)

This affects the bottom lineThis affects the bottom line

Motivation for StandardizationMotivation for Standardization

Cost reduction by minimizing (optimizing) Cost reduction by minimizing (optimizing) the number of the number of

•• plant items, plant items, •• stock items, stock items, ••work processes, work processes, •• principles, principles, •• practices and practices and •• terms that are used throughout the terms that are used throughout the organization organization

Reducing engineering time for Reducing engineering time for commonly and repeatedly used itemscommonly and repeatedly used itemsImprove bottom lineImprove bottom line

Situation Situation -- 10 years ago10 years ago

Technical specifications existed in departmentsTechnical specifications existed in departmentsNo central place to coordinate and address the No central place to coordinate and address the standardization requirements for the standardization requirements for the corporationcorporation

Need for StandardizationNeed for Standardization

The need to reduce costs led to the need to The need to reduce costs led to the need to develop standard procedures and specificationsdevelop standard procedures and specifications

Good practices that are standardized could be Good practices that are standardized could be easily replicated through out the utility which easily replicated through out the utility which could reduce engineering timecould reduce engineering time

Rationalization of specifications could reduce Rationalization of specifications could reduce stores inventory stores inventory

Methodology usedMethodology used

Formation of dedicated unitFormation of dedicated unit

With the above challenges the need for a With the above challenges the need for a dedicated unit to drive the process of dedicated unit to drive the process of standardization arosestandardization arose

Hence the creation of the Technical Support Hence the creation of the Technical Support Services Unit (Standards Unit) in 1997Services Unit (Standards Unit) in 1997

Facilitated end user participation through formation Facilitated end user participation through formation of temporal Internal working groups to comment on of temporal Internal working groups to comment on standards standards

Participation in Regional & Participation in Regional & International Standardization International Standardization

activitiesactivities

There are few manufacturers in ZambiaThere are few manufacturers in Zambia

Most equipment and materials are procured from Most equipment and materials are procured from outside the countryoutside the country

Equipment from outside the country may not entirely Equipment from outside the country may not entirely conform to our local conditionsconform to our local conditions

Hence the need to actively participate in regional and Hence the need to actively participate in regional and international standardization activitiesinternational standardization activities

Regional & International Regional & International cooperation…cooperation…

By participating in the development of regional By participating in the development of regional & international standards& international standards

local conditions are taken into account.local conditions are taken into account.

ZESCO staff benefit from the experience of ZESCO staff benefit from the experience of experts from other utilities & institutionsexperts from other utilities & institutions

Larger markets created by common Larger markets created by common specifications would lead to reduced costsspecifications would lead to reduced costs

Implementation of Online SystemsImplementation of Online Systems

The need to streamline effective management of work The need to streamline effective management of work process/ projects as well as implementation of process/ projects as well as implementation of common standards throughout the corporation gave common standards throughout the corporation gave rise to the need for online toolsrise to the need for online tools

Online Tools

Standardization Module linking into the Design and Construction System

Standardization Module linking into DCS

CUSTOMERREQUEST

WORKSDEFINITION

PLANNING

WORKS DESIGN

BUDGET

STANDARDIZATION

ENGINEERING BILLING\64

ASSIGNMENT CONSTRUCTION

WAYLEAVE/PERMITS

COMMISSIONING

FOLLOW-UP

(Maintenance, Short, Medium and Strategic Plans)

MATERIALS MANAGEMENT

OPERATIONSFINANCE STORES &

PROCUREMENT

CUST.

SERVICE

CUSTOMER SERVICE

AchievementsAchievements

After formation of a dedicated unit After formation of a dedicated unit Standardization awareness increased Standardization awareness increased throughthrough•• coordinated participation of end users coordinated participation of end users cutting across the various disciplinescutting across the various disciplines

••Technical audits of network Technical audits of network ••Review and customizing of technical Review and customizing of technical specification for procurementspecification for procurement

•• Increased exposure of staff to regional Increased exposure of staff to regional and international standardization activitiesand international standardization activities

AchievementsAchievements

Achievements…Achievements…Developed internal capacity to develop Developed internal capacity to develop company specifications e.g.company specifications e.g.

Lightning arrestor specification Lightning arrestor specification (including rationalization of ratings)(including rationalization of ratings)Insulator specificationsInsulator specifications

ZESCO Actively participated in the development of the ZESCO Actively participated in the development of the following national standardsfollowing national standards

Quality of Supply (ZS387)Quality of Supply (ZS387)Quality of Service (ZS397)Quality of Service (ZS397)Metering standardsMetering standardsSafety CodeSafety Code

Now ZESCO is already implementing the quality of Now ZESCO is already implementing the quality of supply standard supply standard

Achievements…Achievements…

Implementation of construction standards through out Implementation of construction standards through out the corporation facilitated by the corporation facilitated by

Online Business information system that has Online Business information system that has provided a Centralized data base for standard provided a Centralized data base for standard construction units construction units

Planning engineers use the same construction units Planning engineers use the same construction units data base for design of network infrastructure data base for design of network infrastructure

Achievements…Achievements…

Achievements…..Achievements…..ZESCO ZESCO

has participated in the development of all the more has participated in the development of all the more than 25 regional specifications (PIESA)than 25 regional specifications (PIESA)

is currently the Vice convenor of the standardization is currently the Vice convenor of the standardization Working Group in PIESAWorking Group in PIESA

Actively participates in UPDEA which has about 53 Actively participates in UPDEA which has about 53 member utilities across Africamember utilities across Africa

Is part of the UPDEA members working towards the Is part of the UPDEA members working towards the formation of the AFSEC formation of the AFSEC

Achievements…..Achievements…..Because of the holistic approach taken by ZESCOBecause of the holistic approach taken by ZESCO

Manufacturers are encouraged to come to ZESCO Manufacturers are encouraged to come to ZESCO and present their various technologiesand present their various technologies

This has lead to technology transferThis has lead to technology transfer

ZESCO Hopes to participate in the formation of the ZESCO Hopes to participate in the formation of the National Technical Committee to facilitate membership National Technical Committee to facilitate membership to IEC and AFSECto IEC and AFSEC

ConclusionConclusion

ZESCO has made significant strides in the ZESCO has made significant strides in the standardization processstandardization process

This has been facilitated by This has been facilitated by Management support through formation of a Management support through formation of a Dedicated standardization unitDedicated standardization unitInvestment in online tools Investment in online tools Regional and International cooperationRegional and International cooperation

Conclusion….Conclusion….

ZESCO willZESCO willcontinue to enhance resources towards equipping its continue to enhance resources towards equipping its staff through trainingstaff through training

to ensure effective implementation of standards to ensure effective implementation of standards across the corporationacross the corporation

support the standardization activities at all levelssupport the standardization activities at all levelscontinue to actively participate in the regional & continue to actively participate in the regional & international standardization activitiesinternational standardization activities

The Online tool has given ZESCO an effective The Online tool has given ZESCO an effective means for maintaining and updating standards means for maintaining and updating standards used in construction.used in construction.

Conclusion….Conclusion….

ENDEND

Thank YouThank You