1. Indiana “Blue Ocean” Project
This document provides some background information on the project and the upcoming meeting
By Robert Lambe
& Keith McClanahan

2. What is this Project?
A planning study of the Indiana field headquarters facilities to help strategically plan capital investments in these facilities:
First, confirm that they are in the right locations:
Does NIPSCO have the right number of “service center” facilities (operating centers, construction sites, MOD/ Mobile Operation Deployment sites)?
Are they well located within the service area?
Then, understand the issues related to the size and condition of the facilities.
Subsequent work will develop an appropriate capital plan.
December 3, 2018

3. Why Undertake this Study?
Normal Facility Evolution/Re-investment
Need to minimize O&M
Older facilities have extensive deferred maintenance
Work patterns & neighborhoods may have changed
Need to Support Current/Future Business
Aging infrastructure
Changing technology, practices, work force
The nature of service centers is changing (see our short white paper on this)

4. Why Facility Issues?
Facility Issues runs a facility space & cost benchmarking program used by dozens of Utilities for years.
We have performed many similar strategic facility planning studies, including one for Columbia Gas PA.

5. Benchmarking Results Can Help Define Objectives for Facilities Plan
Identify current strengths and areas with largest potential for improvement.
Consider how service centers provide competitive business value:
Location: Balance of windshield time/costs, customer service, and community presence.
Design: Provide company image to public and employees, provide effective & productive work support.
Risk Management: Minimize unplanned facility downtime and flexibility to support emergency/storm operations.
Cost Effectiveness: Appropriate capital reinvestment warranted by asset; Optimize operating costs with suitable service levels.
Other Business Objectives: Reflect sustainability goals.

6. Overview of Iterative Planning Approach
1. Assess Opportunity
Location benchmarking
Space & cost benchmarking
Initial location modeling
Input from NIPSCO staff
Identify Opportunities
Where are more or fewer locations suitable?
2. Additional Analysis
Site visits/observe field conditions
Refined location analysis
Compare to typical “templates”
Input from NIPSCO staff
Quantify Opportunities What is travel and cost impact of potential changes?
3. Draft Action Plan
Location changes
Space changes
Additional investigation required
Summary of opportunities
Draft Action Plan What are the decisions and recommended actions to pursue?

7. 1. Assess Opportunity Primary purpose is to answer two questions:
How many locations are needed to provide required coverage?
How well do the current locations meet this need?
A location model is used to perform this analysis
Initial assessment will use available data (meters) for work location forecast – can refine as desired.
Initial assessment will focus on primary field group (electric & gas O&M crews).
Multiple sets of models are used to identify potential opportunities.

8. The Location Analysis Model
Starts with estimate of field work across study area, total crew FTE, (other data), and given business criteria:
Total Number of Locations.
Min/Max FTE by Location.
Max Travel Time.
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Computer model calculates the best set of locations and FTE distribution for lowest total travel time:
Which Locations have lowest travel time.
FTE by Location.
Coverage areas by Location.
Avg. Travel Time.

9. 1. Assessment Results Location assessment results include:
Graph to show if significant value opportunity for more or fewer sites.
Maps identifying most favorable locations and opportunities to improve locations, service districts, & under-served areas.
Comparison graph of your travel times vs. others in the industry.
Observations based on other available data
Easily identify if a change in the number of locations significantly impacts travel time.
Compare travel time to other companies.

10. 2. Additional Analysis Identify & Quantify Situation and Needs
Discussions with key staff to hear business concerns
Site visits to observe conditions at existing facilities
Analysis of size, occupancy/use by facility
Refined Location Model to Quantify Options:
More refined work forecasts
More refined business criteria
Examine specific scenarios of interest to business
Site capacities and templates as appropriate

11. 2. Analysis Results Review of facility utilization
Evaluate alternative location scenarios:
Existing sites to keep or close
New locations to add
Estimated site size:
Crew allocations by site
Overlay support functions based on templates.
Overall summary in “strategic assessment matrix”

12. 3. Draft Action Plan
List of recommended actions and further analysis required for capital plan development
Changes in site locations
Major/minor renovations to facilities
Preliminary sizing of facilities
Sequence of projects
Architectural/Engineering/ Real Estate studies needed for budgeting or feasibility

13. Draft Agenda – April 18, 2017 Introductions
Review Benchmarking Information
Facility space and costs
Field HQ locations
Review Next Step in Project
Discuss Business Objectives and Concerns
Review Planning Assumptions
Review Data Needed for Study