1. التكامل بين هندسة القيمة وادوات تطوير القيمة الأخرى تجربة الشركة السعودية للكهرباء INTEGRATION BETWEEN VALUE ENGINEERING AND OTHER VALUE IMPROVEMENT TOOLS SEC DISTRIBUTION EXPERIENCE إعداد م. خالد بن عبدالله الجمعة التكامل بين هندسة القيمة وادوات تطوير القيمة الأخرى تجربة الشركة السعودية للكهرباء INTEGRATION BETWEEN VALUE ENGINEERING AND OTHER VALUE IMPROVEMENT TOOLS SEC DISTRIBUTION EXPERIENCE إعداد م. خالد بن عبدالله الجمعة 1

2. 2 CONTENTS 1-How to improve value studies results 2- Integration between value engineering and other continues improvement tools 3-SEC practice 4- Conclusion

3. WHAT ARE THE EXPECTED RESULTS FROM A CONTINUES IMPROVEMENT APPLICATIONS ? WHAT ARE THE EXPECTED RESULTS FROM A CONTINUES IMPROVEMENT APPLICATIONS ? In some cases, the executive management are not satisfied from the out put of some value improvement studies. this may lead to questioning the effectiveness of the used tool or the capabilities of the out source consultant. mostly, the cause of those - under expectation - results has no relation with the methodology it self although it may lead to an unfair judgment on that methodology. we will discuss the steps that will enhance the output of those studies and the sec distribution experience in that field. 3

4. 1 - ROADMAP An action plan that links the expected results with the required resources in a sequenced time schedule for the job stages is the first step to an effective study 4

5. 2-DATA AVAILABITY All the related data to the subject of the study should be available (design data, historical data, all types of cost, life cycle …..) A cost estimator should be a major member from each study 5

6. 3- RESOURCES The results out coming from any study depends on the recourses allocated for that study. ( effective organization structure, well trained staff, outsource experience, budget ………) 6

7. 4- SUTABLE VALUE IMPROVEMENT TOOLS AND PROJECT SELECTION APPROCH 4- SUTABLE VALUE IMPROVEMENT TOOLS AND PROJECT SELECTION APPROCH Some of the continues improvement tools are more effective than other depending on the field of the study. selecting the suitable tool requires a good understanding for the field of application and for the tool also. In some cases, there are more than one approach to apply a certain improvement methodology. in a repeated project ( building or a station for example ), it is possible to apply - say value engineering - on each separate project or we can assemble the project then select a repeated item 7

8. 5 -INTEGRATING VALUE IMPROVEMENT TOOLS If the value study is in a fields that includes some technical or engineering complicity the traditional techniques like brain storming ( or other similar techniques ) will not be sufficient to lead to a strong alternatives combining other tools at this stage ( in a value study for example ) will lead to an alternatives that it is difficult to be reached using the traditional techniques 8

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11. Innovate here Innovation Continuous Improvement Continuous Improvement Continuous Improvement J.N.Kelada Integration of BPR and TQM

12. Enhance arrangement Maximize carriage capacity Value, Worth, cost, Other alternative Complete proses change VE TQM BPR

13. Best practice & Benchmarking  In the process of best practice benchmarking, management identifies the best firms in their industry, or in another industry where similar processes exist, and compares the results and processes of those studied (the "targets") to one's own results and processes. In this way, they learn how well the targets perform and, more importantly, the business processes that explain why these firms are successful.  Best practice Benchmarking is used to measure performance using a specific indicator (cost per unit of measure, productivity per unit of measure 13

14. SEC Practice Road Map Data availability Resources Project Selection Approach Value Improvement Practices 14

15. SEC PRACTICE 1. Overhead Distribution ~ Abha 3. SS / Transformer ~ Jeddah 2. Underground Dist. ~ Dammam 4. Meters / Billing ~ Riyadh 15

16. What is Best Approach for VE at SEC? 16

17. VE Roadmap 17

18. VE Road Map 18

19. Materials used in large quantities, represent a high cost to the company. They are part of assemblies. Assemblies serve to meet functions for SEC. For example, transformers have the primary function of “changing voltage,” but the assembly includes secondary functions like protecting the equipment, ensuring safety and maintaining reliability. Value study includes determination of performance and life cycle cost of the assemblies The best value alternative is the one with the highest performance at the lowest life cycle cost. Assembly Approach 19

20. STRUCTURE AND PROCEDURES 20 SEC POLICY DOCUMENT ON VE : PROJECT SELECTION GUIDELINES AND CRITERIA, TYPES OF PROJECTS APPLICABLE, WORKFLOW, TIMING, PERSONNEL REQUIREMENTS, BUDGETING REQUIREMENTS VE PROCEDURES GUIDE : GUIDE TO ASSIST USERS IN PERFORMING A VE STUDY, STEP BY STEP DESCRIPTION, EXAMPLES OF USE OF TOOLS VE TOOLKIT : VE TOOLKIT INCLUDES SOFTWARE & FORMS FOR THE FOLLOWING : INFORMATION CHECKLIST, FUNCTION ANALYSIS, PERFORMANCE & COST MODELING CREATIVE “BRAINSTORMING”, LIFE CYCLE COST ANALYSIS, PERFORMANCE EVALUATION/ RANKING, PROPOSAL SUMMARY, IMPLEMENTATION PLAN WELL TRAINED SEC VE TEAM : WELL TRAINED VE TEAM LEADERS & SME’S FOR SEC PROJECT STUDIES

21. VE CONSULTANT, BEST PRACTICE, & SEC TEAM VE Leadership Best Practices Knowledge SEC Current Practices VE LEADERSHIP  STEPHEN J. KIRK, CV  STEPHEN E. GARRETT, CVS  DAVID SHERWOOD, PM VE LEADERSHIP  STEPHEN J. KIRK, CV  STEPHEN E. GARRETT, CVS  DAVID SHERWOOD, PM BEST PRACTICES KNOWLEDGE  ANTHONY TOMAINO, PE  MIKE GOOD, PE (STANLEY)  WILLIAM B. MCPHERSON, PE BEST PRACTICES KNOWLEDGE  ANTHONY TOMAINO, PE  MIKE GOOD, PE (STANLEY)  WILLIAM B. MCPHERSON, PE SEC CURRENT PRACTICES  STEERING COMMITTEE  TEAM LEADERS  SUBJECT MATTER EXPERTS  VENDOR, MANUFACTURERS... SEC CURRENT PRACTICES  STEERING COMMITTEE  TEAM LEADERS  SUBJECT MATTER EXPERTS  VENDOR, MANUFACTURERS... 21

22. Value Improving Processes Samples of Integrating continues improvement tools ( from the proposals of the four SEC studies ) 22

23. Pole Material PROPOSAL OH-1A: LV & MV POLE MAT’L. 23 ORIGINAL LV & MV STEEL POLES PROPOSED LV & MV PRECAST SPUN CONCRETE POLES PERFORMANCE LONGER POLE LIFE GREATER DURABILITY SERVES AS FOUNDATION IN POLE GROUNDING COST SAVINGS (SR) PER YEAR: 54.3 MIL. LCC: 3.6 BILLION

24. PROPOSAL SS-1D: ALUM. WINDINGS & BBALUM. WINDINGS ORIGINAL COPPER WINDINGS, COPPER BB (BUS BAR) IN LV PANEL PROPOSED ALUMINUM WINDINGS, ALUMINUM BB IN LV PANEL (UP TO 1,000 KVA) PERFORMANCE SUPERIOR THERMAL STORAGE CAPACITY REDUCES THEFT SAME EFFICIENCIES (AT 50% & 100% LOAD ) COST SAVINGS (SR) PER YEAR: 165 MILLION LCC: 5.8 BILLION 24

25. PROPOSAL UG-1B1: MV CABLE TYPE  PERFORMANCE  SIMILAR  COST SAVINGS (SR)  PER YEAR: 1.8 BILLION  LCC: 32.9 BILLION ORIGINAL COPPER CABLE, 3/C X 300 MM UNIT PRICE: 329/M PROPOSED (ALT. 1) ALUMINUM CABLE, 3/C X 500 MM UNIT PRICE: 137/M 25

26. Using dual voltage Transformer  Description of Original Design SEC currently uses substations with single low voltage level (231/127 V) for reinforcement cases. SEC is now preparing to implement the project of changing from the old low voltage (231/127 V) to the new low voltage (400 /230 V) from the year 2013 to year 2021.  Description of Proposed Design Use substations with dual low voltage levels (231/127 V) - (400/230 V) for reinforcement cases in to help convert the SEC network in changing from old low voltage (231/127 V) to the new low voltage (400/230 V) from year 2013 to year 2021. This will mean no new equipment will have to be replaced that meets the new voltage requirements.

28. Use copper steel clad

29. Alternative 2

33. THANK YOU