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8/13/2019 62307309 Report on Operation of Kapco
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Introduction to theIntroduction to the
OrganizationOrganizationThe Kot Addu Power Company (KAPCO) runs a 1600 MW
combined cyce Power pant at Kot Addu! a sma town! in the
midde o" Pa#istan$ The company came into e%istence in the &une
o" 1''6 when the Water and Power eeopment Authority
(WAPA) the state run power *eneration utiity o" Pa#istan!
priati+ed the pant by o""erin* ,6 - sta#e to strate*ic inestor
./ationa Power o" $K$ aon* with mana*ement contro$
Kot Addu site is situated in istrict Mu+a""ar*ah! 100 KM north
east o" Mutan on the e"t ban# o" rier 2/3 at a distance o" 16
Km "rom TA/3A 4A55A7$ The area is surrounded by
a*ricutura and stretched on the north and west side o" Kot
Addu$ There are some ad8acent areas coered with wind bownsand dunes which were "ormed with the passa*e o" time$ These
sand dunes too are bein* *raduay conerted into a*ricutura
and$
Apart "rom aboe! there were ery itte educationa "aciities
aaiabe in the area prior to settin* up o" this Power 3tation
which has now amost been doubed and some o" the 3choo
hae been up*raded$ The essentia amenities are aso now made
aaiabe to the residents$
IINTRODUCTIONNTRODUCTIONTOTOTHETHEPPOWEROWERHHOUSEOUSECCOMPLEXOMPLEX
The compe% comprises three boc#s! 1! 9! and ,$ 7ach boc# is
independent in it and can be considered a separate power
station$ There are 9 combined cyce modues in each boc# no$ 1
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and 9 whereas boc# , has ony one modue$ This is the physica
distribution$ :or the commercia purpose the compe% is diided
into three boc#s caed 7ner*y boc# 1! 9! and ,$ The power
purchase a*reement proides di""erent ener*y char*es "or the
eectricity *enerated and dispatched "rom each boc#$ The
ener*y boc# 1 (pant boc# ,) is the atest and was in
commissionin* sta*e when /P too# oer mana*ement in &une
1''6 whereas other boc#s were competed and commissioned
between 1';6
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concept o" combined cyce pant! now has been introduced by
the *as turbine manu"acturers$ nder this desi*n! the e%haust o"
the *as turbine is made to pass throu*h a conduction type boier
(commony caed as @7AT 57CO75B 3T7AM 7/75ATO5)$
@i*h
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by "iin* petitions in the hi*h court$ The court "inay passed an
interim order in October 1''; that restricts KAPCO to receie 5s$
1$'; per KWh o" eectricity$ The ob8ectie behind this e*a
wran*in* was to pressuri+e KAPCO /ationa Power to a*ree and
out o" court settement "or deduction o" tari""$ With the incomin*
o" present ot$ the matters hae been soed to "air e%tent$
OORGANIZATIONALRGANIZATIONALSSTRUCTURETRUCTURE
The powerhouse compe% is spread oer 9;0 acres$ As stated
earier there are three independent boc#s and each boc# is
independent in itse"$
7ach boc# has machines o" di""erent ma#e where di""erent
technoo*y is used$ Production department operates the pant
and maintenance departments are responsibe "or up #eep o" the
pant throu*h preentie maintenance! troube shootin*! and
ma8or minor oerhauin* a"ter predetermined period$ At the
"ace! it is a "unctiona structure$ The speciaist "unctions i#e
"inance! 2T! Personne! Ee*a Administration are common and
proide serice which Production and maintenance departments
need to carry out their wor#$ The production department has it
own centrai+ed structure$
7ach boc# has its separate maintenance department that is
"urther subdiided into three sections with respect to "unctions
i+$ eectrica! mechanica! and Finstrument and controG$ A senior
en*ineer head each "unction$ 5esident 7n*ineer 1 heads boc# 1
maintenance department whereas resident en*ineer 9 is
responsibe "or boc# 9 and , maintenance teams$ @oweer there
is an additiona position o" Assistant 5esident 7n*ineer at boc# ,
who is responsibe to resident 7n*ineer$ The senior en*ineer o"
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OBJECTIVESOBJECTIVES
The pro8ect has been competed to achiee the "oowin*ob8ectiesH
a) To reduce mass scae oad sheddin*$
b) To "irm up @yde Power eneration durin* water
shorta*e period$
c) To "aciitate operation and maintenance o" other
power stations$
d) To coer emer*encies and power shorta*es with Duic#
*eneration o" power suppy "rom this power station
which is the saient "eature o" *as turbines$
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OPERATIONAL STRATEGYOPERATIONAL STRATEGY
CCORPORATEORPORATESSTRATEGYTRATEGY
Whateer the type o" "irm! top mana*ementGs responsibiity is to
pan the or*ani+ationGs on*
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MISSIONMISSION
A "irmGs mission statement answers seera "undamentaDuestions$ An understandin* o" the "irmGs mission heps
mana*ers enter ideas and desi*n new products and serices$ 2"
its mission is too broady de"ined! the "irm coud enter areas in
which it has no e%perience$ 2" the mission is to narrowy de"ined!
the "irms coud miss *rowth opportunities$ This shoud aso
incude the aspects i#e enironment and core competencies$ The
mana*ement shoud be abe to identi"y and dea with
enironmenta chan*es when "ormuatin* mission statements$
AAPPE2CAT2O/PPE2CAT2O/ATATKAPCOKAPCO
The or*ani+ation does not hae any "orma M2332O/ or 232O/
statement eer since its priati+ation$ The empoyees in the
or*ani+ation 8ust #now that they hae to wor# and produceeectricity power with minimum possibe e%penditure$
2n the process o" the or*ani+ation deeopment an in "orma
Mission 3tatement has been deised which is #ept "orth "or
achiein* the or*ani+ationa *oas$ The proposed Mission
3tatement is as underH
!APCO i" an inde#endent #o$er
#roduce" that #ro%ide" e&ectricit'
(or )AP*A di"tri+ution net$or,- It
$i&& continue to contri+ute in the
de%e&o#ing econo.' o( Pa,i"tan +'
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.aintaining it" ca#acit' and
.a/i.izing a%ai&a+i&itie"-0
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CORE COMPETENCIES AN*CORE COMPETENCIES AN*
COMPETITIVE PRIORITIESCOMPETITIVE PRIORITIES
CCOREORECCOMPETENCIESOMPETENCIES
Core competencies are or*ani+ationa uniDue resources and
stren*ths which mana*ement considers "ormuatin* strate*y$
These core competencies incudeH
1$ Wor#"orce
9$ :aciities
,$ Mar#et and "inancia #now how
?$ 3ystem and technoo*y
CCOMPETITIVEOMPETITIVEPPRIORITIESRIORITIES
A "irm *ains an adanta*e with its operatin* system by
outper"ormin* competitors in terms o" one or more o" these
capabiities$ There are ei*ht possibe competitie priorities "or
operations! which "a into "our *roups$
CCOSTOST
1$ Eow cost operations
QQUALITYUALITY
9$ @i*h per"ormance desi*n
,$ Consistent Duaity
TTIMEIME
1$ :ast deiery
9$ On time deiery
,$ eeopment speed
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FFLEXIBILITYLEXIBILITY
1$ Customi+ation
9$ oume "e%ibiity
A "irm may or*ani+e itse" into one or more operatin* systems!
each desi*ned to support a particuar set o" competitie priorities
"or a particuar set o" products or serices$
AAPPE2CAT2O/PPE2CAT2O/ATATKAPCOKAPCO
CCOREORECOMPETENCIESCOMPETENCIESWWORKORKFORCEFORCE
A wor# "orce o" appro%imatey ;00 to '00 hundred peope is
wor#in* in the or*ani+ation in ? technica shi"ts and 1 *enera
shi"t as "oowin*H
Technica shi"ts , % shi"ts wor# ; houry daiy on rotationa
basis
1 % shi"ts remains at rest
enera 3hi"t "or ; hours on daiy basis ("rom 0;00 to
1600 hrs)
MMARKETARKETANDANDFFINANCIALINANCIALKNOWKNOWHHOWOW
There is no mar#etin* department nor are there any competitor$
The or*ani+ation do not carry out any mar#etin* "unction$
@oweer! a commercia and "inancia department e%ists$ :or the
biin* purpose "orma "inancia procedures are adopted$
SSYSTEMYSTEMTTECHNOLOGYECHNOLOGY
2n the recent past the or*ani+ation has instaed new technoo*y
pant "or power production$ There are combinations o" hybrid
technoo*y pants i$e$ as and :urnace Oi combination! as and
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@i*h 3peed iese combination and 3team Operated Turbines$
The company is aso shi"tin* their in"ormation system on the
modern ines *raduay$
CCOMPETITIVEOMPETITIVEPPRIORITIESRIORITIES
CCOSTOST
A e""orts at eery ee are directed to reduce the production
cost$ This is bein* achieed by the ery e%tensie use o" as
Turbine pant i$e$ boc# ,$
QQUALITYUALITY@i*h per"ormance Duaity in the or*ani+ation is re"erred as
e""icient use o" pant i$e$ with minimum cost ma%imum output$
TTIMEIME
The aspect is o" utmost importance$ Priorities i#e :ast eiery
and On Time eiery are appicabe as the company is
producin* reDuired amount o" ota*e at prescribed timin* with
compete accuracy$
FFLEXIBILITYLEXIBILITY
There is no concept o" "e%ibiity! which is bein* impemented$
The company is rather tied up with the strict schedues o" usin*
arious pants$
SSTRATEGYTRATEGYBBASEDASEDOONNFFLOWSLOWS
These are "ie "undamenta manu"acturin* and serice strate*iesbased on "ows areH
1$ Ma#e
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AAPPE2CAT2O/PPE2CAT2O/ATATKAPCOKAPCO
/o concept o" strate*y based on "ows is bein* "oowed
obsered in the or*ani+ation$ @oweer! a production is bein*done on the orders demand receied "rom WAPA$ One may
say that ma#e to order strate*y is bein* "oows "or production o"
eectricity$
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*ECISION MA!ING IN*ECISION MA!ING IN
OPERATIONSOPERATIONSOperations mana*ers ma#e many choices as they dea with
arious decision areas$ Athou*h the basic steps incudesH
1$ 5eco*ni+e and ceary de"ined the probem$
9$ Coect the in"ormation needed to anay+e possibe
aternaties$
,$ Choose and impement the most "easibe aternatie$
3ometimes hard thin#in* in a Duiet room is su""icient$ At other
times reiance on more "orma procedures is needed$ arious
methods used are brea#
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)OR!1ORCE MANAGEMENT)OR!1ORCE MANAGEMENT
TTEAMEAM
7mpoyee inoement! aso caed wor#er participation or abor en*ineers were trained in ermany
and ' in 2tay$ The trainin* was conducted at the trainin* center
"actories o" the machine manu"acturers$ 4esides the aboe one
months oca trainin* was aso imparted to the sta"" at site$
PPHASEHASEIIII
nder this phase ,0 en*ineers receied trainin* in the "ied o"
operation and maintenance o" pant$ The trainin* was arran*ed
in :rance$
A local training was also arranged at site for the staff where operation and
maintenance of the gas turbines unit 5-8 was taught for a month.
PPHASEHASE-III-III
:or the combined cyce pant unit :orty en*ineers were trained in
ermany$
Locally the operation and maintenance staff for these units was trained at
site by the foreign expertise for a period of 24 weeks.
PPHASEHASE-IV-IV
:or operation and maintenance o" steam turbine units 11J19!
Twenty en*ineers receied "orei*n trainin* in the reeant "ied$
Trainin* was imparted at :rance$
2n addition to the "orei*n trainin*! a oca trainin* was aso
imparted by "orei*n e%perts to the operation and maintenancesta""$ A batch o" 90 o""icias attended the course$
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PPHASEHASE-V-V
1= en*ineers were sent to ermany under this phase$ The
participants o" this course receied trainin* in the "ied o"
7ectrica! Mechanica and 2JC maintenance o" power pant$
A muti "ied trainin* course! coerin* a span o" 1, wee#s was
arran*ed at the pant "or oca trainin* o" sta""$ About =0 persons
aaied this trainin* to *et acDuaintance with the new machinery$
Ca#acit'Ca#acit'
Capacity is the ma%imum rate o" output "or a "aciity$ The "aciity
can be a wor#station or an entire or*ani+ation$ The operations
mana*er must proide the capacity to meet current and "uture
demand otherwise! the or*ani+ation wi miss opportunities "or
*rowth and pro"its$
Capacity pans are made at two ees$ Eon*
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/o sin*e capacity measure is appicabe to a types o"
situations$ Output measures are the usua choice "or ine "ow
processes$ 2nput measures are the usua choice "or "e%ibe "ow
processes$
PPEAKEAKCCAPACITYAPACITY
The ma%imum output that a process or "aciity can achiee under
idea conditions is caed pea# capacity$ Pea# capacity can be
sustained "or ony a short time! such as a "ew hours in a day or a
"ew days in a month$ A "irm reaches it by usin* mar*ina
methods o" production! such as e%cessie oertime! e%tra shi"ts!
temporariy reduced maintenance actiities! oersta""in*! and
subcontractin*$
EEFFECTIVEFFECTIVECCAPACITYAPACITY
The ma%imum output that a process or "irm can economicay
sustain under norma conditions is its e""ectie capacity$ 2n someor*ani+ations! e""ectie capacity impies a one
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mana*ers and wor#ers hae identi"ied such probems! they o"ten
can "ind ways to correct them$
AAPPE2CAT2O/PPE2CAT2O/ATATKAPCOKAPCOPPOWEROWERGGENERATIONENERATION
PPEAKEAKCCAPACITYAPACITY
Pea# capacity o" the pro8ect is 1600 MW which is achieed
throu*h combined cyce power pants$
EEFFECTIVEFFECTIVECCAPACITYAPACITY
7""ectie capacity o" the pant is 1,?0 MW at any instance durin*
the entire year$
Accordin* to the contract the company is bound to proide
same amount o" power i$e$ 1,?0 MW (eDua to e""ectie capacity
"or the ne%t 9= years to WAPA)
Athou*h the demand "or power suppy is receied "rom
WAPA is any instance durin* the year$ @oweer as a process '=
days be"ore the commencement o" the ne%t year! aera*e ten ta
demand is receied in *i*a watts hrs "rom WAPA$ 4asin* on
this "orecast capacity pannin* by the company is done$
Brie( ca&cu&ation" (or generation o( ca#acit' i" a"
(o&&o$ing2
1,?0 MW % ,6= days % 9? hrs 11>,;?00 MW hrs
11>,;?00 1000 11>,;$?00 *i*a wattshrs
Thus tota *eneration capacity per year is 3 44567899 Giga
$att" hr"
CCAPACITYAPACITYCUSHIONCUSHION
Keepin* in iew the unschedued brea# downs! proon*ed
schedued shut down "or maintenance oerhaus WAPA has
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*ien a cushion o" 6>0 i*a watts hrs to the company$ The
cacuations are as underH
Cushion in terms o" time =00 compe% hrs
=00 hrs % 1,?0 MW hrs 6>0000 MW hrs
4y diidin* with 1000 6>0000 1000 6> i*a watts hrs
Company must try and maintain the unschedued brea#downs
and "orced outa*es within this speci"ied capacity cushion o" 6>
*i*a watts hrs$ Contrary the company has to pay iDuidation
char*es to WAPA$
2n case company maintain and e""icient wor# standard and
proide reDuired capacity o" power to WAPA those *race has
(6>0 MW hrs) are #ept in resere "or the company which it can
utii+e durin* ma8or oerhaus which normay e%ceeds the
prescribed time imit "or one or the other reason$
LLIQUIDATIONIQUIDATIONDDAMAGESAMAGES
2n case company is unabe to proide reDuired capacity o" power
to its customer WAPA and oer utii+es the *race capacity o"
6>0 MW hrs$ then the company is bound to pay iDuidation
dama*es to WAPA at a rate o" 160- or 1$6 times$
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LOCATIONLOCATION
:aciity Eocation is the process o" determinin* a *eo*raphic siteo" a "irmGs mana*ers must #eep in minds arious "actors$
esirabiity o" a particuar site incudin* pro%imity to customers!
suppiers and transportation cost are important$
Mana*ers can diide ocation "actors into dominant and
secondary "actors$ ominant "actors are those deried "rom
competitie priorities (cost! Duaity! time! and "e%ibiity) and
hae a particuary stron* impact on saes or costs$
Other "actors may need to be considered! incudin* room "or
e%pansion! construction costs! accessibiity to mutipe modes o"
transportation! the cost o" shu""in* peope and materias
between pants! insurance costs! competition "rom other "irms "or
the wor# "orce! oca ordinances (such as poution or noise
contro re*uations)! community attitudes! and many others$
AAPPE2CAT2O/PPE2CAT2O/ATATKAPCOKAPCO
2n site seection "oowin* "actors were #ept in iew$
7%istin* PA5CO "aciity "or transportation o" @3 "rom
Karachi to Mehmood Kot! which is about ,= #m "rom Kot Addu$
:rom Mehmood Kot! a 10 inches diameter pipeine has been to
aid this power station and @3 pumpin* was commissioned in
&une 1';'$ (Eater on it has been switched oer to "urnace oi
since 9nd:eb$ 1''1$)$
3weet under *round water
:uture oad center o" north west areas
Possibe use o" *as "rom nearby hoda# :ied
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/ear to Kot Addu 8unction 5aiway 3tation
To proide 8ob opportunity to the Eocation
enera upi"t and deeopment o" area$
La'out"La'out"
EayoutsG pannin* inoes decisions about the physica
arran*ement o" economic actiity centers within a "aciity$ An
economic actiity center can be anythin* that consumes space$
The *oa o" ayout pannin* is to aow wor#ers and eDuipment to
operate most e""ectiey$ 4e"ore a mana*er can ma#e decisions
re*ardin* physica arran*ement! "our Duestions must be
addressed$
1$ What centers shoud the ayout incudeL
9$ @ow much space and capacity does each center needL
,$ @ow shoud each centerGs space be con"i*uredL
?$ Where shoud each center be ocatedL
The ocation o" a center has two dimensionsH (1) reatie ocation!
or the pacement o" a center reatie to other centers! and (9)
absoute ocation! or the particuar space that the center
occupies within the "aciity$
AAPPE2CAT2O/PPE2CAT2O/ATATKAPCOKAPCO
Eayout o" the company was athou*h initiay panned by WAPA
but basic considerations o" e%pansion and #eepin* the arious
boc# and stora*e ocations we within the reach o" each other
were #ept insi*ht$ 2nitia ocation o" the pant which were
constructed in 1';= "aciitated the *radua deeopment o" the
site ti pro8ect competed in 1''9$
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FFORECASTINGORECASTING
A "orecast is a prediction o" "uture eents used "or pannin*
purposes$ :orecasts are needed to aid in determinin* what
resources are needed! scheduin* e%istin* resources! and
acDuirin* additiona recourses$ Accurate "orecasts aow
scheduers to use machine capacity e""icienty! reduce production
times! and cut inentories$ One o" the bi**est chaen*es in
business is "orecastin* customer demands$ 2t is a di""icut tas#
because the demand "or *ood! and serices can ery *reaty$
:orecastin* demand reDuires uncoerin* underyin* patterns
"rom aaiabe in"ormation$
AAPPE2CAT2O/PPE2CAT2O/ATATKAPCOKAPCO
PPOWEROWERDDEMANDEMANDFFORECASTINGORECASTING
KAPCO does not carryout any "orecastin* "or the demand "rom its
customer WAPA$ 2t is rather customer by itse" "orward the
demand$ The demand "rom WAPA is receied "ie yeary!
yeary! monthy! wee#y and een daiy i$e$ A day ahead$
As re*ard demand "rom WAPA is concerned at times it is
receied ri*ht when reDuired that een the demand receied it is
aways unpredictabe and tentatie because o" the typica
reDuirement and technoo*y inoement$
FFORECASTINGORECASTINGFORFORMMAJORAJOR/ M/ MINORINOROOVERHAULSVERHAULSANDAND
MMAINTENANCEAINTENANCE
4asin* on WAPAGs demand and runnin* records o" the arious
pants and personne e%perience o" the en*ineers "orecastin* "or
the oerhau minor maintenance and schedue outa*es is done
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by the company$ A ery comprehensie procedure is bein*
adopted "or schedued outa*es which are the ma8or eents "or
the company ( as these outa*es has direct bearin* on the oera
e""iciency o" the company)$
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INVENTORY MANAGEMENTINVENTORY MANAGEMENT
2nentory Mana*ement is an important concern "or mana*ers ina types o" businesses$ :or companies which operate on
reatiey ow pro"it mar*ins! poor inentory mana*ement can
seriousy undermine the business$ The chaen*e isnGt to reduce
costs or to hae penty around to satis"y a demands! but to
hae the ri*ht amount to achiee the competitie priorities "or
the business most e""icienty$
AAPPE2CAT2O/PPE2CAT2O/ATATKAPCOKAPCO
IINVENTORYNVENTORYOFOFOOUTPUTSUTPUTS
There is no inentory "or the power which is bein* produced by
the company$ Whateer power eectricity is *enerated
transmitted simutaneousy to its customers$
IINVENTORYNVENTORYOFOFIINPUTSNPUTS
A hu*e inentory is maintain "or arious inputs i$e$ :urnace Oi!
@i*h 3peed iese and 3pears$
NNATIONALATIONALGGASAS
/o inentory o" the natura *as is maintained$ The *as is comin*
directy "rom 3/PE company and is used in the pants$ There
are no stora*e o" the *as at ocation 3/PE daiy proide >0
miion cubic "eet o" *as to the company "or ; months i$e$ "rom 1=
March to 1= /oember$ 2" this amount o" *as is not receied
KAPCO char*es iDuidation dama*es "rom 3/PE Etd$
FFURNACEURNACEOOILILANDANDHHIGHIGHSSPEEDPEEDDDIESELIESELIINVENTORYNVENTORY
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An inentory o" 91 days reDuirement o" :urnace Oi and @i*h
3peed iese is maintain aways in the company$ Nuartery
demand is sent to Pa#istan 3tate Oi (P3O) ?? days in adance$
This demand is based on WAPAGs reDuirement o" power which is
receied ?6 days be"ore the start o" the Duarter$ These suppies
are #ept in stora*e tan#s at ocation$ The company has 9> tan#s
each hain* capacity o" ;!000 metric cubic oi$ P3O is the ony
suppier and there are no probems on suppy$
SSPARESPARES
IINVENTORYNVENTORY
Minor maintenance schedued outa*es "or ma8or oerhaus!
unschedued outa*es and washin* outa*es reDuires aaiabiity
o" hu*e amount o" spares round the coc# at ocation$
A the spare parts are imported$ There"ore! to meet emer*ent
needs spare parts are #ept in stoc# "or worth 5s$ 9 biion$ 2n
addition a hu*e numbers o" spare part are imported #eepin* &2Tsystem in o*ue$
IINVENTORYNVENTORYRREVIEWEVIEW
Periodic inentory reiew (monthy basis) is conducted in the
company$
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:;ALITY MANAGEMENT:;ALITY MANAGEMENT
Nuaity can be de"ined in a arious ways$ 2n a *enera sense!Duaity may be de"ined as meetin* or e%ceedin* the e%pectations
o" the customer$ :or practica purposes! it is necessary to be
more speci"ic$ Nuaity has mutipe dimensions in the mind o" the
customer! and one or more o" the "oowin* de"initions may appy
at any one time$ Nuaity can be de"ined in terms o"H
Con"ormance and speci"ication
aue
:itness "or use
3upport
Psychoo*ica impressions
One o" the important eement o" Duaity (TNM) is empoyees
inoement in totaity$ ood Duaity or tota Duaity can pay o""
in terms o" hi*h pro"its$ The new and atest concept o" Duaity is
continuous improement or e%ceedin* the ee o" customerGs
satis"action$
AAPPE2CAT2O/PPE2CAT2O/ATATKAPCOKAPCO
2n KAPCO the concept o" the Duaity is "oowed but in si*hty
di""erent "orm$ 2nstead achiein* customer satis"action or
e%ceedin* the ee o" customer satis"action the or*ani+ation
measure Duaity in "oowin* termsH
ispay o" best e""iciency in runnin* the :urnace Oi @3
pants! as Turbine 3tation! @eat 5ecoery 3team enerators
and 4oiers$
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Eeast utii+ation o" raw materia i$e$ :urnace Oi! @3$ Their
priority remains to use *as and steams$
7%ceent maintenance mechanism$
/o ine osses
/o unschedued outa*es
/o e%tra trippin* out
Maintenance o" re*uar operations
Nuaity is aso measured in terms o"H
Preentie Maintenance
4rea# down maintenance
Condition based Maintenance
Pro
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The best measure o" the companyGs Duaity is to hae the
east or /o iDuidated dama*es durin* the year$
3ince there are no threats to the company "rom the mar#et!
other competitors! threats o" raw materia! *as or @3 the
company maintains hi*h standard o" e""iciency$ Thus achiee
reDuired Duaity$
Another important Duaity measure is to maintain 1,?0 MW
hrs output throu*hout the year$ This standard is e%pected to ast
"or the duration o" contract o" 9= years eer since itspriati+ation$
QQUALITYUALITYPPOLICYOLICY
An e%picit Duaity poicy does not e%ist$ 2n ast three years many
procedures! oca mana*ement instructions hae been issued
and operationa procedures de"ined "rom time to time
The
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SC?E*;LINGSC?E*;LING
3cheduin* aocates resources oer time to accompish speci"ictas#s$ /ormay! scheduin* is done a"ter many other mana*eria
decisions hae been made$ 3ound scheduin* can hep an
or*ani+ation achiee its strate*ic *oas$ Operationa scheduin*
"ocuses on how best to use e%istin* capacity! ta#in* into account
technica production constraints$
AAPPE2CAT2O/PPE2CAT2O/ATATKAPCOKAPCO
WWORKORKFORCEFORCESSCHEDULINGCHEDULING
There are two types o" wor#"orcesH
!" D#$%' E()*+,%%"
Those who wor# in the ener*y boc#s and on pants and
boiers$
." I0#$%' E()*+,%%
Those who wor# "or *enera duties other than the ener*y
boc#s$
The or*ani+ation has , % shi"ts o" ; hours wor#in* daiy! whereas
1 % shi"t remains on rest "or 6 days$ enera shi"t wor#s "or ;
hours daiy$
OOPERATIONALPERATIONALSSCHEDULINGCHEDULING
This is one o" the best appication bein* appied in the company$
2n operationa scheduin* ma8or outa*e pans "or the ne%t = years
are schedued$ 4asin* on this = year pannin* annua pan is
made and approed "rom WAPA$ /ormay outa*es are
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schedued "rom &uy to /oember which is ow period "or the
Therma Power 3tations$ This scheduin* process incudesH
3cheduin* "or outa*e starts 1; months be"ore when a
particuar pant is indicated "or ma8or oerhau$
1= months be"ore the commencement o" the pro8ect the
purchase reDuisitions are sent to the purchase department$
2t ta#es , months to receie the Duotations$
19 months be"ore the start o" the pro8ect o" the oerhau or
schedued outa*es the "ina demand is paced to the suppiers by
the purchase department$
1 to 9 months be"ore the start o" the pro8ect spares are
receied at ocation$ (3ince the spares are imported "rom abroad
there"ore a cushion o" 1 to 9 months is #ept "or ne*otiatin* the
hurdes o" the process)$
Many ma8or items are receied 8ust in
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1$ :or schedued outa*es WAPA *ies ,6 compe% days "or
each machine$
9$ :or ma8or oerhauin* =0 to 60 days at aera*e arepreempted by WAPA "or each machine$
,$ :or hot *as path inspection ,0 days are *ien$
4asin* on aboe parameters "orma scheduin* o" shut down is
made on annua basis$ This schedued pan is approed by
WAPA and the maintenance are under ta#in* accordin*y$
SSCHEDULECHEDULEFFORORCCRANESRANESAANDNDLLIFTINGIFTINGEEQUIPMENTSQUIPMENTS
3chedues "or cranes and i"tin* eDuipment hae been deeoped
ery recenty "or the "irst time$ 2nspection o" these items is in
pro*ress nowadays throu*h an independent a*ency$
2denti"ication no is bein* punched on each eDuipment$ 2n addition
red coor mar#et is aso bein* put on tested eDuipments$
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*ISTRIB;TION O1 PO)ER*ISTRIB;TION O1 PO)ER
AAPPE2CAT2O/PPE2CAT2O/ATATKAPCOKAPCO
PPOWEROWERTTRANSMISSIONRANSMISSION
:or e%port o" eectric ener*y! this station is eDuipped with a two
ee (1,9 K J 990 K) switchyard$ 3i% machines (nit /o$ 1! 9!
,! ?! ' to 10) o" the pant are connected with the /ationa rid
throu*h 1,9 K swithcyard whereas the remainin* nine
machines (nit /o$ =! 6! >! ;! 11! 19! 1,! 1? J 1=) terminate at
990 K 3witchyard$ :our auto trans"ormers "urther proides an
interin# between the two switchyards thus the system "e%ibiity
"or power transmission o" a the machines is enhanced$ The
power *enerated by this station is transmitted to the /ationa
rid throu*h networ# o" ten ines as detaied beowH
Eine 1H KAP ?
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Aggregate P&anningAggregate P&anning
AAPPE2CAT2O/PPE2CAT2O/ATATKAPCOKAPCO
As such no "orma a**re*ate pannin* is done in the
company$ @oweer the company has a per"ormance section!
which maintain a records on day to day basis$
Physica coordination o" arious e%ecuties is done ery
"reDuenty$ Meetin* are hed Duite o"ten$
Commercia and per"ormance mana*er! 9 en*ineers!
Computer Duai"ied sta""! biin* sta"" and @5 sta"" monitor
a**re*ate operations and insure "oowin*sH
1$ EiDuidated dama*es (i" any) are reduced to minimum$
9$ company must *enerate power to its reDuires
capacity and demand! with minimum possibe cost$
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1INANCIAL IMPLICATIONS1INANCIAL IMPLICATIONS
AAPPE2CAT2O/PPE2CAT2O/ATATKAPCOKAPCO
A "orma "inance biin* section e%ists in the company$ 2t
ensures the biin* is done to the customer (WAP3) on monthy
basis accordin* to the contract and power proided$ At the same
time it maintain a bis receied "rom suppiers and ma#e
necessary arran*ements and ad8ustments o" payments$ 2n this
connection "oowin* parameters are #ept in iew by the
departmentH
Prices o" the :urnace Oi! as and @3 were #ept as the
base and ener*y char*es were decided$ The bis are made
accordin*y$
With the increase or decrease in prices the rates are
automaticay ad8usted with the same ratio$
This wor# is e""icienty bein* per"ormed by "inance
department$
4is "or the raw materia are aso prepared and paid
accordin* to the contracts deeds$
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IN1ORMATION SYSTEMIN1ORMATION SYSTEM
2n"ormation is one o" the most important corporate assets but! tounoc# rea aue you need to ensure that it can be easiy
retrieed! mana*ed and shared$ The 2T system recenty instaed
at KAPCO "u"is the reDuirements$ More than 190 o""icers
en*ineers hae been proided with the networ# computers and
are connected with each other throu*h a serer instaed at a
centra pace$ The most modern computer aided maintenance
mana*ement and stoc# contro system has aso been instaed
and made accessibe "or a the users$ The documents and other
"orms o" in"ormation can be scanned and conerted to eectronic
"orm$ :rom any wor#station! user can retriee documents rapidy!
reiew or annotate them! communicate to other peope "or
comments or approa and incorporate the in"ormation into other
popuar business appications$
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E@EC;TIVE S;MMARYE@EC;TIVE S;MMARY
nti 1''6! oernment o" Pa#istan had monopoy oer power*eneration and transmission a oer the country$ oernment
ran this business throu*h 3tate owned .Water and Power
eeopment Authority (WAPA)$ 2n 1''6! the then oernment
decided to priati+e WAPA in di""erent sta*es$ because o"
e%cessie in
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parts$ A "airy *ood 3uppy Chain Mana*ement 3ystem e%ists
within the or*ani+ation$
The companyGs basic business is to produce reDuired amount o"power accordin* to the customer demand with /o iDuidated
dama*es$ The company beiees in Duaity by maintainin* hi*h
e""iciency ee o" its operations$ There are no 23O '000
certi"ication obtained by the company$
The company is shi"tin* its e%istin* manua in"ormation system
to moderni+ed in"ormation technoo*y based system in which
appro%imatey 190 new computers aon* with a serer had
aready been instaed$
2n this report a detaied anaysis o" arious operations
mana*ement procedures has been carried out$ This anaysis
proides an opportunity to oo# into the or*ani+ationa
"unctionin* o" KAPCO deepy$
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AC!NO)LE*GEMENTAC!NO)LE*GEMENT
To start with! 2 with my a humiity coney! my sincere than#s toO the AEM2@TB "or hain* *rantin* me the Wisdom and
ener*ies to compete this assi*nments with in the stipuated
time$
2n the process o" the preparation o" report 2 reDuired ot o"
*uidance and directions$ 2 coud receie these "rom hi*hy
earned! e%perienced and most ee*ant personaity Dr. HayatM. Awan$ Eet me admit openy that without his dedicated
*uidance! most use"u adises and whoehearted assistance the
tas# was uphi$ 2 hae earnt a ot and added to my e%perience
durin* this process$ 2 e%tend my deep *ratitude and most sincere
than#s to him$
2 aso e%tend ery sincere than#s to the "oowin* e%ecuties o"
KAPCO who hae reay proided me with the most use"u
in"ormation about the pro8ect$
Mr$ /isar Asim 7%$ enera Mana*er
Mr$ Am8ad Ai 3hei#h 5esident 7n*ineer (Opeartions)
Mr$ Muhammad Basin Mana*er @uman 5esources
2 am aso than#"u to a others who assisted me in competion o"
this report$
Author
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Pre(acePre(ace
To become an e%pert in any "ied! ony theoretica#nowed*e does not proide a concrete base$ This is a uniDue
approach o" business education that proides an opportunity to
the students to obsere daiy i"e business practices and
probems$ Operations Mana*ement is one o" the core sub8ect o"
M4A Pro*ram that *ies us an idea as to how the arious aspect
o" operations are deat in the di""erent or*ani+ations$ There"ore!
the study o" this sub8ect is incompete without obserin* the
appications in the rea wor#in* enironment$
urin* the process o" study! 2 made a coupe o" isits to
meet with the e%ecuties o" KAPCO$ A "orma Duestionnaire was
prepared be"ore the discussions were made with the enera
Mana*er o" the Or*ani+ation and 5esident 7n*ineer (Operations)$
A ery in"ormatie! e%haustie and auabe materia has been
coected durin* the discussion with e%perts$ A this proe to be
an e""ectie source o" earnin*$
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Content"Content"
Introduction to the Organization......................................................................................1
ntroduction to the !ower "ouse #omplex.................................................................$
"eat %eco&ery 'team (enerating 'ystem..................................................................2
Agreements between )A!*A + ,A!#.................................................................
rgani/ational 'tructure.............................................................................................4
!erformance "istory...................................................................................................5
OBJECTIVES....................................................................................................................6
OPERATIONAL STRATE!..........................................................................................."
#orporate 'trategy......................................................................................................0
A))*#1'#+ 1' KAPCO"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""2
#ISSION...........................................................................................................................$
A))*#1'#+ 1' KAPCO"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""3
CORE CO#PETENCIES AN% CO#PETITIVE PRIORITIES.................................1&
#ore #ompetencies...................................................................................................$1
#ompetiti&e !riorities...............................................................................................$1
#ost...........................................................................................................................$1
uality.......................................................................................................................$1
3ime..........................................................................................................................$1lexibility..................................................................................................................$$
A))*#1'#+ 1' KAPCO"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""!!
#ore competencies ...................................................................................................$$
)ork force................................................................................................................$$
arket and inancial know "ow..............................................................................$$
'ystem 3echnology...................................................................................................$$
#ompetiti&e !riorities ..............................................................................................$2
#ost ..........................................................................................................................$2
uality ......................................................................................................................$2
3ime..........................................................................................................................$2lexibility..................................................................................................................$2
'trategy 6ased n lows..........................................................................................$2
A))*#1'#+ 1' KAPCO"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""!4
%ECISION #A'IN IN OPERATIONS......................................................................1(
A))*#1'#+ 1' KAPCO"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""!5
)OR'*ORCE #ANAE#ENT...................................................................................1+
3eam..........................................................................................................................$5
7mployee 7mpowerment..........................................................................................$5
A))*#1'#+ 1' KAPCO"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""!63%A(...............................................................................................................$9
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A))*#1'#+ 1' KAPCO"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""!6
!hase .......................................................................................................................$0
!hase ......................................................................................................................$0
!hase-....................................................................................................................$0
!hase-:....................................................................................................................$0!hase-:.....................................................................................................................$8
Ca,acit-............................................................................................................................1$
#apacity !lanning ....................................................................................................$8
easures of #apacity ...............................................................................................$8
!eak #apacity............................................................................................................$;
7ffecti&e #apacity.....................................................................................................$;
'teps *etermining #apacity #ushions......................................................................$;
A))*#1'#+ 1' KAPCO""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""".
!ower (eneration......................................................................................................21
!eak #apacity............................................................................................................217ffecti&e #apacity.....................................................................................................21
#apacity cushion.......................................................................................................21
Li
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'hut down 'cheduling...............................................................................................2
'chedule or #ranes And Lifting 7
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