Distribution Project/Program Management

1. Distribution Project/Program Management Don Stanton, PMP SWEDE Conference May 10, 2007

2. Agenda • Need for PM • Initial Project Management measures • Need for more Project Management • Migration to Program Management • Process Improvement

3. Need for Project Management • Initial need for formalized PM recognized • Team formed to develop PM guidelines • Guidelines to follow Project Management Institute (PMI) standards

4. Developing a PM Program • Focused on PM principles and methodologies • Scope • Schedule • Budget guidelines • Defined R&R’s • Reporting • Templates

5. Practical Use of PM Program • Focused on “large” distribution projects • Civic projects • Large System jobs • Additional feeders, Rehabs, large circuit upgrades, pole replacement program • Inter-related substation/feeder projects • Large customer initiated projects

6. Large Customer Distribution Substation Conversion Project

15. Things worked well, but…

16. More PM Needed • Increase in backlog of smaller projects • Continued outside influences to be more competitive • Resource constraints • Labor • Budgets

17. Evolution from Project Management to Program Management

18. Evolution from Project Mgmt. to Program Mgmt. Purpose: • To address the existing backlog of distribution projects that caused a strain on our resources. • To address all future civic and system improvement projects.

19. Staged Approach • Stage 1 - Distribution Backlog • Primary focus is to alleviate the backlog. • Three-pronged approach • Stage 2 - Distribution Program Management • Address current and future distribution projects • Drive accountability • Maintain current work load by fully utilizing CPS Energy crews and flex with contract crews as workload varies

20. Distribution Backlog Stage 1Three-pronged Approach • One: Current Backlog of Projects • CPS Energy Crews • CPS Crews primary responsibility to focus on customer work requests. • Secondary responsibility is to work on System, Civic, and Maintenance jobs. • Contractor Crews • Primary responsibility is to work on System and Civic jobs • Maintain current work load by using contract crew to flex as workload varies.

21. Distribution Backlog Stage 1Three-pronged Approach • Two: Pole Replacement Backlog Project • Second contractor brought on board to focus mainly on backlog of Pole Replacement jobs (System improvements) • 125 Jobs assigned

22. Distribution Backlog Stage 1Three-pronged Approach • Three: Recloser-Capacitor Project • Project developed for installation of approx. 50 Reclosers and 65 Capacitor Banks. • Devices and materials ordered and supplied by CPS Energy • Contractor(s) to provide labor to install • Some could also be installed by CPS Energy crews depending on workloads

23. Distribution Program ManagementStage 2 • Project Management facilitating a Distribution Process Improvement Team to develop the Distribution Program and to document the processes for assigning and tracking current and future distribution projects.

24. Program Management Team • Stakeholders • Project Management • Construction District Managers • Outside Services • Distribution Engineering • Distribution Planning • Purchasing/Stores • Utility Coordination • Executive Sponsors • VP of Engineering • VP of Construction • Additional team members may be “flexed” in as needed

25. Goals • Keep internal crews 100 % loaded • The contractor crews will be “flexed” as work loads cycle to allow full utilization of CPS Energy crews • Assignment of future projects to the proper crews based on the work loads Work load TIME

26. Process Improvement • Document current processes to identify possible areas of improvement

27. Roles and Responsibilities Project Management – Project Management Section • Responsible for facilitating the process used to develop the plan for addressing future projects • Make sure that the key stakeholders are involved and that the plan is followed • Responsible for monitoring and reporting progress • Assist in solicitation and securing of additional resources as needed

28. Roles and Responsibilities (cont.) Engineering – • Responsible for helping to identify projects and prioritize those projects for completion. • Responsible for ensuring that the projects are planned, designed and released for construction and that all materials are available or ordered as necessary. • Involved in helping to develop contracts for outside contractor solicitation and selection.

29. Roles and Responsibilities (cont.) Construction – Service Centers • Responsible for securing internal labor resources and properly distributing their workload • Possibly help provide internal inspection services for contractor constructed projects if necessary or resources are available • May be involved in the solicitation and selection process of external contractors/resources

30. Roles and Responsibilities (cont.) Construction Outside Services – Construction Coordinators • Responsible for providing and directing additional contracted resources as needed • Responsible for providing inspection services for all constructions projects as necessary • Involved in the solicitation and selection process of external contractors/resources

31. Next Steps • Assign “Breakout Teams” to look at the sub-processes (SME’s) • Reporting • Prioritization of Project • Resource Allocation • Assigning projects • Resource loading • Permitting

32. Next Steps • Map/document “new” processes • Implement new processes!

33. QUESTIONS • What type of project management program do you have in place? • How do you report on project progress/productivity? • Prioritization of projects? • How do you determine Resource Allocation/crew loading? • Other discussion?