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TOPIC
PARETO BASED METERING
STRATEGIC FRAMEWORK
PRESENTER : Wilfred Shereni
Metering & Revenue Assurance Expert,
Zimbabwe
PRESENTATION OVERVIEW
① Objective of Presentation② Pareto based Metering Strategic framework③ Meter To Cash (M2C) Value Chain④ Key Changes to the Meter To Cash (M2C) Value Chain⑤ Examples of Pareto cases in the M2C value chain⑥ Steps to follow when using Pareto based metering strategic
formulation approach⑦ Potential Challenges in the Meter to Cash Value Chain⑧ Problem mapping for the Metering Value Chain⑨ Keys issues to consider when using Pareto based metering
strategy formulation approach
PRESENTATION OVERVIEW
① Objective of Presentation② Pareto based Metering Strategic framework③ Examples of Pareto cases in the M2C value chain④ Meter To Cash (M2C) Value Chain⑤ Changes in the Meter To Cash (M2C) Value Chain⑥ Steps to follow when using Pareto based metering strategic
formulation approach⑦ Potential Challenges in the Meter to Cash Value Chain⑧ Problem mapping for the Metering Value Chain⑨ Keys issues to consider when using Pareto based metering
strategy formulation approach
OBJECTIVE OF PRESENTATION
To share information on the Pareto based Metering
Strategy formulation approach to enhance efficiency
and effectiveness of the “Meter to Cash (M2C)Value Chain”
PARETO BASED METERING STRATEGIC FORMULATION FRAMEWORK
A “Pareto based Metering Strategic Framework” is an
enhanced strategy formulation approach that focuses
and prioritizes on key/mission critical issues based on
the 80/20 rule.
It is a decision-making technique that statistically
separates a limited number of input factors as having
the greatest impact on an outcome, either desirable
or undesirable.
PARETO BASED METERING STRATEGIC FORMULATION FRAMEWORK
NOTE, the figures 80 and 20 are illustrative – the
Pareto Principle illustrates the lack of symmetry that
often appears between work put in and results
achieved. For example, 13 percent of work could
generate 87 percent of returns. Or 70 percent of
problems could be resolved by dealing with 30
percent of the causes.
EXAMPLES OF PARETO CASES IN THE
METER TO CASH VALUE CHAIN
10% of customers contribute 90% of revenue
20% of customers account for 80% of Non Technical
Losses(NTL)
Metering faults constitutes 20% of utility faults but
account for 80% of revenue loss
10% of customers owing account for 90% of debt
10% of the technical specification cover 90% of meter
requirements
10% of processes in a project impact on 90% of the
outcome
METER TO CASH (M2C) VALUE CHAIN
The Meter to Cash (M2C) value chain includes
Metering, Billing & Collection functions which
traditionally were handled separately but because of
technological advancements are now merging
CHANGES IN THE METER TO CASH (M2C) VALUE CHAIN
Traditionally Metering, Billing & Collection were distinct processes but are now merging into one end to end process
METERING, BILLING & COLLECTION (MBC)
METERING BILLING COLLECTION
TRADITIONAL APPROACH
CURRENT APPROACH
STEPS TO FOLLOW WHEN USING THE PARETO BASED STRATEGY FORMULATION APPROACH
Identify &
List
problems for
each phase
of the M2C
Value Chain
Group
Problems
together by
Root Cause
Add up the
scores for
each group
& Rank
Take Action
Score
Problems
All Root Causes
for Each M2C
Phase Identified
Root
Causes
No
Yes
POTENTIAL CHALLENGES IN THE METER TO
CASH VALUE CHAIN
For any metering program, there will be challenges that
arise in: Planning/Design, Equipment Specification,
Purchasing, Installation & Maintenance and replacement
Using Pareto Based Metering Strategic framework will
assist focus on key issues, avoid pitfalls and optimise on
resource usage
The next slide shows problems that exist in the Meter to
Cash value chain of a typical Sub Saharan African Utility
referenced to best practice
PROBLEM MAPPING FOR THE METERING VALUE CHAIN FOR A TYPICAL SSA UTILITY
Note: Problematic phases are highlighted in red
Pla
nn
ing
/ B
usi
nes
s C
ase
FAT
(En
d t
o E
nd
Tes
tin
g)
Tech
nic
al S
pec
ific
atio
n
Dra
ftin
g/R
evie
w
Acc
epta
nce
Tes
tin
g o
n
Del
iver
y
Met
er In
stal
lati
on
Des
ign
Fau
lt M
ain
ten
ance
&
Perf
orm
ance
Mo
nit
ori
ng
Rep
lace
men
t at
En
d o
f
Gu
aran
teed
life
sp
an
Met
er In
stal
lati
on
&
C
om
mis
sio
nin
g
15% 11% 12%11% 13%8% 5% 5%12% 15% 10% 20%10% 10%5% 5% 18% SPUs
MPUs
15% 20% 11% 11% LPUs12%13%8% 5% 5%
20%
Ten
der
Pro
cess
Note: SPUs – Small Power Users, MPUs – Medium Power Users, LPUs – Large Power Users
PROBLEM MAPPING USING PIE
CHART – MPUS & LPUSPlanning/Business Case
Technical Spec
Tendering
FAT
Acceptance Testing
Meter Installation Design
Meter Installation & ComissioningFault Maintenance & Performance MonitoringReplacement @ End of Lifesapn
20%
11%8%11%
5%
13%
12%11%
15%
TECHNICAL
SPECIFICATIONPURCHASING
METER
INSTALLATIONMETER O&M
Gorvenance
Budget
Technology
selection
Resource
Allocation
Feasibility
Analysis
Risks
Analysis
Project
Financing
Implementati
on timeframe
& Road map
Business
requirements
Functionality
required
BI Required
Standards
Statutory/Le
gal
requirements
Feedback
from meter
performance
analysis
Technical
due
diligence
Customer
numbers
Maturity of
Technology
Project
financing
Tender
Evaluation
& Award
FAT issues
Acceptance
testing
Warranty &
Guarantee
issues
After sales
support
Complexity of
Installations
In-house or
outsource
Skills
required
Project scope
Installation
processes &
procedures
Level of NTL
Post
implementati
on support
model
Skills
required
Reliability/A
vailability
Cost of
Support
Customer
queries
Tools &
Equipment
Resources –
vehicle,
manpower
REPLAEMENT @ END OF LIFESPAN
Replaceme
nt
programme
@ end of
life span
Meter
failure
statistics
Budget
Accuracy
required
Big Data
Analytics
PLANNING /DESIGN
KEY ISSUES TO CONSIDER WHEN FORMULATINGA PARETO BASED METERING STRATEGY
