v

Submitted To:

Instructor MISI 619

Submitted By:

Muhammad Abuzar
MC060400043
Fall 2009
MBA (MIS)

Virtual University of Pakistan

Acknowledgment

We owe our felt thanks to Allah Almighty who enables us to discharge such
responsibility with due care and caution. My report will remain incomplete if I don’t
mention the sincere efforts of those gentlemen who helped and guided me in completion
of my internship and this report. First of all I want to thanks to ALLAH Almighty; I also
want to thanks to my worthy teachers the main source of enlightenment of our minds and
the development of natural potentials. After him I want to thanks Mr. Tahir Assistant
Manager and Mr. Naeem deputy Manager administration and technical, which helped us
in all matter.
At the end I want to say thanks to whole staff and management of Lahore Electric Supply
Co. for their cooperation and for providing a very friendly environment to gain practical
knowledge.

Muhammad Abuzar
MC060400043
MBA (M.I.S)
Fall 2009

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Executive summary

The purpose of this report is that the student can get a glance about the practical life and
through this experience makes his mind according to his own interest. I choose Lahore
Electric Supply Company for my Internship; because I have Three Years Diploma of
Associate Engineer (D.A.E) and Bachelor Degree (B-Tech) in Electrical Technology
therefore I preferred this sector. Lahore Area Electricity Board was reorganized into one
such corporatized entity under the name of Lahore Electric Supply Company (LAHORE
ELECTRIC SUPPLY CO.) with effect from 22-03-1998, with the aim of
commercialization and eventually privatization. Lahore Electric Supply Company
(LESCO.) has 500,000,000 public shares each of Rs.10.It also have very advance
Management Information System that comprises on Linux Environment and ORACL
Data base system. In Management Information system of Lahore electric supply co.
daily, weekly and monthly bases reports are generated. The Financial and Human
Resources related reports are also a part of MIS section. The Lahore Electric Supply Co.
is now fully harnessing the advantages of Management Information System and in almost
all studies from detailed monitoring of LESCO’s defaulters to Analysis of Electricity
tariffs; computer centre has become focal point for generating information imperative for
management policy formulation. In addition, processing of special reports for Authority
and various WAPDA formations is carried out by the computer centers. The division-
wise computerized receivable reporting and monitoring system providing twenty
different arrears analysis reports have been expanded to provide tariff wise information.
These reports have been further extended to support monitoring at the sub division level.
LESCO’s MIS system has been instrumental in implementing the instructions. The
incentive packages were promptly and uniformly implemented giving timely relief to the
agriculturist and industrial consumers. Since it is an engineering firm therefore numerous
software for System Planning, Distribution, and Load Management and for Design of
Distribution system in consumer area is used. In Lahore Electric Supply Co I emphasized
on the Database management system and Management information system. During the
interview and questionnaire I get a lot of knowledge and practical skill, and I want to
share this experience with you. In this report I have written my suggestions, my feelings
and also what I got from all this internship training. This report consists of Vision,
Mission, Goals, objectives, organization’s structure SWOT analysis and
Recommendation.

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4
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Table of Contents

Brief Introduction 09
Overview of The LESCO 10
Brief History 10
Nature of Organization 11
Business Volume 12
Product Line 13
Competitors 13
Competitors Overview 14
Brief Introduction of Branch 16
Organizational Structure 17
Top Level Management 18
Board of Directors 19
Registered Head Office 20
Mission-Vision and Goals 21
Comments on LESCO Organizational Structure 22
Introduction to all Braches 23
Human Resources Management 23
Finance Directorate 25
Operation Directorate 26
Power Dispatch Center 27
Technical Directorate 28
Material Management 28
Project Management Directorate 30
Training Center 31
Customer Services Directorate 32
MIS Directorate 32
Organizational Management Analysis 33

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Plan of Internship 34
Structure / Functions of MIS 37
Major Function of MIS 38
MIS Support to other departments 41
Critical Analysis 45
SWOT analysis 46
Internal Factor Evaluation Matrix 48
External Factor of Evaluation Matrix 49
TOWS Matrix 50
Competitors Profile Matrix 52
BCG Growth-Share Matrix 53
Porter Five Forces analysis 53
Conclusions 54
Recommendations 54
Conclusions 55

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Brief Introduction:

The environment and structure of the power industry throughout the world are
undergoing dramatic change. The power sector is moving from monopoly to privatization
and from integration to disintegration. To keep pace with this change, the Government of
Pakistan approved a Strategic Plan in 1994 as a consequence of which the power wing of
WAPDA has been unbundled into 12 Companies for generation, transmission and
distribution of electricity.
In December 1998, the WAPDA Act was amended, which allowed the creation of
Pakistan Electric Power Company (PEPCO), and unbundling of WAPDA’s Power Wing
into: Eight (8) distribution companies (formed from existing area boards);
three (3) generating companies (comprising 11 of WAPDA’s generating plants); and
National Transmission and Dispatch Company (NTDC).
Various Regions of WAPDA were performing the local areas electricity distribution
service. Then the Area Electricity Board (AEB) Lahore, on the eight AEBs in Pakistan,
was established under the scheme of Area Electricity Boards in 1982, in order to provide
more autonomy and representation to provincial government, elected representatives,
industrialists, agriculturalists and other interest groups in functions of the AEBs.
Lahore Area Electricity Board was reorganized into one such corporatized entity under
the name of Lahore Electric Supply Company (LESCO.) with effect from 22-03-1998,
with the aim of commercialization and eventually privatization.

Overview of the Organization:

LESCO’s area of responsibility covers Civil Districts of Lahore, Kasur, Okara and
Sheikhupura.
Lahore Electric Supply Co. comprises of the following seven distribution Operation
Circles, one Construction and one GSO Circle, as detailed below:

North Lahore Circle 5 Division / 24 Sub Divisions

Central Lahore Circle 5 Division / 24 Sub Divisions
Eastern Lahore Circle 4 Division / 20 Sub Divisions
South Eastern Lahore Circle 4 Division / 21 Sub Divisions
Okara Circle 4 Division / 20 Sub Divisions

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Sheikhupura Circle 5 Division / 29 Sub Divisions
Kasur Circle 5 Division / 21 Sub Divisions
Construction Circle 4 Divisions
Grid System Operation Circle 3 Divisions

Brief History:

The restructuring programme of WAPDA's Power Wing is based on the new strategic
policies of the GOP and endorsed and supported by the donor institutions. The aim of this
transition is to install corporate and business culture through: adopting of good business
practices, enhancing productivity and efficiency, including customer orientation and
service culture, improving quality of services setting performance targets, reducing costs,
theft and wastage. This will be based on extensive use of information technology,
management information systems, and monitoring and prudent decision-making.
It has been decided that some of the functions currently being performed by WAPDA are
of national importance and will therefore continue to remain with WAPDA/GoP in the
largest interest of the country.
PEPCO has been fully empowered and is responsible for the management of all the
affairs of corporatized nine Distribution Companies (DISCOs), four Generation
Companies (GENCOs) and a National Transmission Dispatch Company (NTDC). These
companies are working under independent Board of Directors (Chairman and some
Directors are from Private Sectors). All Entities have the physical possessions of all their
operational assets.
On 24th Feb. 2007 Ministry of Water & Power notified NEPRA approved Tariff for all
Distribution Companies replacing unified WAPDA Tariff.
Legal Agreements such as Business Transfer Agreements, Operation Development
Agreement, Energy Supply Agreement, Business Supplementary Agreement and Fuel
Supply Agreement etc. are executed between Lahore Electric Supply Co. and Corporate
Entities to facilitate commercial operations.
Regulatory instruments like Grid Code, Distribution Codes, and Performance Standard
for Distribution Companies and Transmission Companies were drafted and got approved
from NEPRA in 2007.

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Nature of the Organization:

In exercise of the powers conferred on the National Electric Power Regulatory Authority
under Section 21 of the Regulation of Generation, Transmission and Distribution of
Electric Power Act 1997, the authority grants the license to the Lahore Electric Supply
Co. for the Distribution Services of Electric supply and make sale of Electric power to the
consumers in the services territory and concession territory subject to and in accordance
with the terms and conditions of the NEPRA.
According to the license issued to the Lahore Electric Supply Co. the company have to
provide the electric supply to their Domestic, Bulk, Commercial and industrial
consumers.

Business Volume:

Operating Fixed Assets Rs. 21,311 (in Millions)

Capital Work In Progress Rs. 2,130
Rs. 23,440
Long Term Advances Rs. 51
Long Term Deposits and Deferred Costs Rs. 0.36
Rs. 23,491
Stores, spare parts and loose tools Rs. 2,151
Trade Debtors Rs. 7,686
Loans, advances and other Receivables Rs. 8,046
Cash and bank balances Rs. 9,534

Grand Total Rs. 50,908.30

Product Lines:

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Lahore Electric Supply Co. distributes the electric power/supply to Domestic,
Commercial, Industrial and Bulk consumers. The company also provides the maintenance
of Electrical Equipments.

Competitors:

Faisalabad Electric Supply Co. (FESCO)

Gujranwala Electric Power Co. (GEPCO)
Hyderabad Electric Supply Co. (HESCO)
Islamabad Electric Supply Co. (IESCO)
Peshawar Electric Supply Co. (PESCO)
Quetta Electric Supply Co. (QESCO)
Multan Electric Power Co. (MEPCO) and
Karachi Electric Supply Company Ltd. KESC

Overview of the Competitors:

Faisalabad Electric Supply Co.

FESCO Distributes and supplies electricity to about 2.76 million customers within its
territory with a population over 26.5 million under a Distribution License granted by
National Electric Power Regulatory Authority (NEPRA) pursuant to the Regulation of
Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act).
Geographical service area of FESCO comprises Faisalabad, Sargodha, Mianwali,
Khushab, Jhang, Bhakker, T.T Singh and Chiniot.

Gujranwala Electric Power Co.

Gujranwala Electric Power Company (GEPCO) has been setup over area of jurisdiction
and network of former Area Electricity Board, which was created in early eighties.
It encompassed the areas of existing Districts of Gujranwala, Hafizabad, Sialkot,
Narowal, Gujrat and Mandi Bahauddin. GEPCO was incorporated on 25th April 1998
and obtained Certificate for commencement of business on 5th June 1998. Management
and Administration is entrusted to a Board of Directors. We have about 2,356,305
connections; Average monthly Collection for the year 2008-09 is approximately 3.2

11
billion Rupees.

Hyderabad Electric Supply Co.

Area Electricity Board (AEB) Hyderabad was one of the eight AEB's constituted through
amendments in WAPDA Act during 1981. Later on Government of Pakistan approved
revamping of WAPDA power sector in April 1998, resultantly twelve corporate entities
were formed, Eight Distribution Companies (DISCOs), one National Transmission and
Distribution Company (NTDC) and three Generation Companies (GENCOs). Now one
more GENCO has been established. All these companies have been incorporated under
Companies Ordinance 1984.

Islamabad Electric Supply Co.

IESCO aspires to become a major, diversified, transitional, integrated power supply

company in Pakistan, with a strong environment conscience, playing a national role in
electricity supply and distribution. At IESCO, we believe that time has come for us to set
our sights beyond just being a provider of conventional services. We expect to carry the
spirit forward by training and leading a crack team through the portal of Contact Center
that will push the frontiers of our interactive experience with our customers. Our Mission
is to bring the assurance of energy to our customers, with world-class quality and
commitment for satisfaction as we continue in our quest for excellence.

Peshawar Electric Supply Co.

Peshawar Electric Supply Company (PESCO), located in Peshawar provides service of

power distribution to over 2.0 million consumers of all civil districts of N.W.F.P,
Pakistan. At PESCO networks, we own and maintain N.W.F.P’s electricity distribution
system via 132, 66, 33KV sub-transmission lines, sub-stations and 11KV & 440V low
tension lines with distribution transformers that deliver electricity to your home or
business.

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Quetta Electric Supply Co.

QESCO is operating as a Power Distribution Company and will act as Private

Organization on switching over from Public to Private Sector. QESCO is dealing with
Power Supply System in the whole Balochistan less District Lasbela. It is smallest in
terms of consumers but largest as it covers 43 % area of Pakistan. The peak demand at
the moment is 1177 MW evaluating measures and anticipated to be 1659 MW by the year
2015 with 8 % uniform annual growth. QESCO system is under stress due to huge
number of Agri: Consumers contributing about 70-80 % of Power Demand. Low voltage
profile prevails due to long distances from Generating Sources, besides availability of
Single 220 KV sources from Guddu. The safe drawl of power is 721 MW. To have
additional source another 2x220 KV Dadu-Khuzdar & DG Khan-Loralai Transmission
Lines stands approved through out source funding at the cost of Rs 5.437 and 5.089
billion respectively. Hopefully, the work completion in totality is expected ending 2011.

Multan Electric Power Co.

MEPCO the Multan Electric Power Company is the biggest Distribution Company of
WAPDA. Its area of operation is from Sahiwal to Sadiqabad, Bahawalnager to
Bahawalpur and Tounsa Sharif to Rajanpur and bordering with Sind, Balochistan and
NWFP. The Charter of MEPCO is to provide the reliability, quality and safety of electric
power supply to the consumers in its Jurisdiction. MEPCO is envisaged for the creation
of the resources and engineering plans for additions, renovation and augmentation of the
distribution system in order to achieve charter.

Karachi Electric Supply Company Ltd.

KESC is one of the city's largest employers: around 17,000 people currently work for the
company. It is also one of the oldest companies in Karachi and was established in the city
even before the creation of Pakistan in 1947. Incorporated on September 13, 1913, under
the Indian Companies Act of 1882, the company was nationalized in 1952 but was re-
privatized on November 29, 2005. KESC came under new management in September,
2008; a significant number of professional managers with experience in running utility
and other large companies have joined under this management and will be running it until
the company is turned into a best practice utility.
At present, KESC is the only vertically integrated power utility in Pakistan and manages

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the generation, transmission and distribution of electricity. KESC covers a vast area of
6,000 square kilometers and supplies electricity to all the industrial, commercial,
agricultural and residential areas that fall under its network.

A Brief Introduction of Branch where I worked

I started my internship training in the Head office of the LESCO. The head office is
situated at 22/A queen’s road, Lahore. The MIS department of the LESCO is situated at
LESCO’s old building at Railway station near Bohar wala Choke Lahore. The worthy
Chief Executive Officer of The LESCO sits in the Head office. Other department like
Administration, HR, Finance and Project Management also occupies in the Head office.
Only MIS department is working in the old building. The MIS department is headed by
Manager MIS. MIS department employ the Windows XP / Linux Operating systems,
Oracle Database system and also have oracle Java based applications. This is based on
ORACLE E-Business Suite certified platform.
In the LESCO I stated my internship training on dated 01/08/2008 to 30/09/2008, during
this period of eight months. I spend first four weeks in different departments where as the
last four weeks I spent in MIS department exclusively.

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 Organizational Structure:

Board of
Directors

Company
Secretary

C. E. O.

HR &
Sr. Legal G.M. Operation Admin
Manager Directorate Technical Directorate Directorate
(O&M) T&G
Manager
Finance Customer
C. E. MIS Internal
Directorate Services
Planning Manager Audit
Sr.
Senior Manager
Manager O&M
P&D Distributio
n

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Top Management:

Sr.No. Name Position Held

1 Muhammad Azhar Iqbal Chief Executive officer

2 Sardar-ul-Huda General Manager Technical

Rana Muhammad Ajmal

3 Operation Director
Khan

4 Abid Latif Lodhi Senior Manager P&D

Senior Manager O&M

5 Mehboob Alam
Distribution

6 Khalid Mehmood Senior Manager O&M (T&G)

7 Farast Zaman Customer Services Director

8 Saghir Ahmad HR Director

9 Abid Latif Lodhi Finance Director

Legal Director/Company
10 Sayyad Mubashar Masood
Secretary

Manager Internal Audit

11 Zahid Hameed

Board of Directors

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 Chairman, Nestle Pakistan Chairman Nestle Pakistan
1 Syed Yawar Ali
Ltd. Ltd. 308 Upper Mall Lahore.

Muhammad New LESCO Head Quarter

2 Chief Executive LESCO
Azhar Iqbal 22-A Queens Road Lahore

Munawar Room 413-WAPDA, House

3 G.M (GSC), WAPDA
Ahmad Malik Lahore

Executive Director (L&CA)

4 Salman Iqbal 192 Wapda house Lahore
PEPCO

General Manager (C & M)

5 Khalid Javed G-44 Wapda House Lahore
Power

Ex-Chairman, Institution of W-302 Phase III DHA

6 Khalid Saeed
Electrical Engineers UK Lahore Cant

Chief Executive Officer 85 Industrial Estate Kot

7 Shahzad Alam
United Electronics Lakhpat Lahore.

Abid Latif 4th Floor, 22-A Queens

8 Finance Director LESCO
Lodhi Road Lahore.

Sayyad 132KV Grid Station

Legal Director/Company
9 Mubashar McLeod Road, opposite
Secretary
Masood Moon Light Cinema.

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REGISTERED HEAD OFFICE

Chief Executive Office

22/A Queens Road Lahore
Phone #: 0092 (42) 9204820-30
Fax #: 0092 (42) 9204801
www.lesco.gov.pk

Main Offices:

Lahore Electric Supply Co. has its main offices in following Districts,

District Lahore
Customer services center, Ichhra Lahore
Customer services center, central circle
Customer services center, northern circle
Customer services center, southern circle
Customer services center, eastern circle
Customer services center, township Lahore

District Sheikhupura
Customer Services Center, Sheikhupura
District Okara and
Customer services center, Okara
District Kasur
Customer services center, Kasur

Mission Statement
As the leading electricity distribution company, strive to provide un-interrupted electric
supply and quality service to all customers at the minimum possible cost.

Vision

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Achieve and maintain the highest degree of efficiency, reliability and responsiveness as a
public service organization for variety of customers.
Public and company workers’ safety shall be high on our priority.
Retaining and growing our business, staff and customer base will be of primary
importance.
Developing innovative business relationships both inside and outside our local
distribution area will be key to our success.

Goals
Smooth and consistent flow/supply of electricity

Prompt restoration of disrupted electricity supply

Accurate and timely meter reading and billing
Provision of electricity connection in minimum time
Open door policy to facilitate our customers
Special concessions for quick and timely payment of bill
Availability of stores to deal with emergencies
Feedback through Customer Services Centers
Create awareness amongst employees for adopting safety measures while working on
lines.
Energy saving message dissemination
Creating positive image of LESCO
Take steps for welfare of company employees.
Morale building and to create sense of belonging amongst company employees

LESCO’s Organizational Structure (Comments):

The organizational structure is simply a diagram of all the positions in an organization

and their formal relationships to one another. The immediate value of organization charts
is that they illustrate an organization’s overall shape and configuration in a readily
comprehensible manner. Whatever an organization’s goals its structure should facilitate

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the most effective and efficient use of available resources. Because adaptation is a key to
competitive survival, “The right structure” for an organization is determined by numerous
factors. Organizing is the process of dividing work among groups and individuals and
coordinating their activities to accomplish organization’s goals. As s result of organizing,
activities are segmented or departmentalized. Connections are established with in and
among departments according to some logical pattern.
LESCO’s Organizational Structure is the vertical structure. In organizations like
LAHORE ELECTRIC SUPPLY CO., there are numerous stakeholders. And these
individuals have lack timely information, few are directly involved in managing the
organization. Stakeholders elect the board of directors to oversee the organization. The
board led by the chairman, makes major decisions affecting the organization, board
performs following duties.
Selecting, assessing, rewarding and replacing the CEO.
Determining the firm’s strategic direction and reviewing financial performance; and
Assuring ethical, socially responsible, and legal conduct

The CEO and top level management collectively organize the business of Lahore Electric
Supply Co. in an efficient manner. Infect this is really a hard responsibility to look after
the business of such large company but due to their hardworking, they are not only
handle all the problems but continuously increase the number of projects.
The message from the CEO:
"Lahore Electric Supply Company is building its future upon a foundation of strong core
values. As electricity industry undergoes massive change, our success will come from
respect for people, uncompromised commitment to safety, quality customer services and
support for the communities we serve. Through public-private partnerships, that reflects
these values; Lahore Electric Supply Company looks forward to grow in this era of
unprecedented opportunity. I invite you to learn more about LESCO’s vision for the
future and contribute through your valued suggestions. We trust you will find our internet
site interesting and informative."

A Brief Introduction to all Departments of LESCO

Human Resources and Administration

Under direction from the Chairman and Chief Executive Officer of the Company, HR &
Admn Director shall be responsible for the recruitment and placement of the "right

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people to the right jobs" and enhancing their levels of motivation / morale / job
satisfaction through:-
a) The provision of the necessary support systems and structures such as an attractive
compensation package, a fair and objective system for promotion and career progression,
training and development inputs to keep people in pace with the changing demands of
their jobs, etc.
b) The creation of a working environment and operationalization of administrative
support systems that will promote employee performance and productivity.
More specifically the Human Resources Director shall perform following functions:-
a) A human resource philosophy, which shall govern the company’s actions with respect
to human resources management.
b) Prepare a Human Resource Plan to support the short and medium-term goals of the
company.
c) Develop the policies, guidelines and procedures for the following human resources
management concerns: -
Manpower planning / budgeting
Recruitment and Selection
Appointment, deployment, re-deployment / transfers
Compensation and benefits administration
Career planning and promotion
Performance management
Incentives administration
Training and development
Grant of Move over
Grant of permission for higher education
Consider and approve transfer requests.
Sanction leave.

Duties / Functions of Manager (HR)

1. Recruitment
Manpower Planning
Recruitment and Selection
Appointment and Development
Creation of Posts and Offices
2. Promotions

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Preparation of Seniority Lists / Fixation of Seniority
Career Planning and Promotions
Performance Management
Training and Development
Grant of Selection Scales
Move Over
Preparation and Circulation of Seniority Lists
Maintenance of Service Books
Pension Welfare Fund and Gli Cases
Over Time / Off-Days Wages Cases
3. Transfer / Posting
Transfer and Posting of Staff and Officer
Vacancies Statement and Manpower Data
Incumbency Statement / Register
To Maintain List of Officer Stay Wise
4. Retirement
Retirement and Resignation of Service
Preparation of Pension Papers
Actively supervise and Coordinate the Working of All Administration Staff Posted under
LESCO’s Head quarter.
Establishment Matter Relating To Technical / Non-Technical Staff
Establishment Matter of Officer Regarding Training and Development
Permission of Higher Education to All Employees under LESCO
Permission to Employee for another Job
All Establishment Matter Not Covered Here
5. Miscellaneous
The Cases of Wafaqi Mohtasib / Court Cases Regarding Establishment Matters Will Be
Dealt by Legal / Wafaqi Mohtasib Cell of LESCO’s Head quarter. However, Comments
If So Required By Legal Section / Wafaqi Mohtasib Section Of This Office, The Same
Will Be Submitted By Manager (Hr&A).

Finance Directorate

The Finance Director has overall responsibility of Finance Department. He is Financial

Advisor of the Company. He assists management in Strategic Management decision-

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making. He controls all financial activities of the Company.
He has additional responsibility of ‘Company Secretary’.

The major sections, responsibilities and activities as per new Organ gram given by
PEPCO under Finance Director's control are as under:

Sr. Section Responsibility Activity

Corporate Accounts
Manager Corporate
1 Corporate Accounting Administration
Accounting
Payroll

Corporate Planning & Control

Corporate Planning & Costing/Pricing
2 Manager Finance (CP&C)
Control Budgeting
Loan Management

Impress Banking
Pension & Funds
3 Head Quarter Accounts Dy. Manager A/cs (H/Q)
Audit Observation Reply
Pre-Audit & Payments

IOT Reconciliation
Receivables/Payables
4 Field Formation A/cs Dy. Manager A/cs (F.F) Fixed Assets Register
Accounts Consolidation &
Financial Reporting

Duties of Manager Finance-Corporate Planning & Control

To receive the budget requirements from different formations of LESCO and consolidate
the budget on the basis of activity level
To prepare and present the budgeted P&L and Balance Sheet to the Finance Director for
the approval of Authority & Board of Directors.
Allocation of annual budget on the basis of activity i.e., Area, No of consumers, No of
transformers and No of Vehicles
Monitor the budget with actual results on the basis of variance analysis

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Close liaison with Financial Module group of WAPDA and prepare the Financial Model
of LESCO on the basis of prehistoric data and different indicators.
Development of monthly management accounts reporting system covering Financial,
Operational and other efficiency / performance indicators of the company
To assist Finance Director in Board of Directors meetings and AGM
Any other Job assigned by the Finance Director or Chief Executive.

Job Description of Manager Corporate Accounting

To supervise and check the work of B A Os / Section in charge of Payment, Admin,
Consolidation, Banking and Assets through Dy. Manager Accounts Concerned
To assist Finance Director LESCO in day-to-day work
To participate in different meetings for and on behalf of Finance director
To work as adviser to the chief executive-LESCO, in the absence of Finance Director,
Any other Job assigned by the Finance Director

Operation Directorate

The basic tasks performed by the operation directorate are:

Operation and maintenance of distribution system
Operation and maintenance of sub-transmission and grid systems
The Directorate consists of the following departments: -

O&M (T&Gs) Department

The Operation & Maintenance (Transmission and Grid Stations) - O&M (T&Gs)
department headed by a Senior Manager is responsible for the electrical network at
132KV and 66KV and has under its purview 67 132KV and 15 66KV Grid Stations and
1515 KMs of 132KV and 628 KMs of 66KV lines. The department carries out its
functions in the field through the Superintending Engineer (Grid System Operation) - SE
(GSO) by issuing guidelines, schedules and authorization for the preventive and
emergency maintenance programs, and carries out frequent inspection to ensure
compliance by the field organization.

O&M (Dist) Department

The Operation & Maintenance (Distribution) - O&M (Dist) department headed by a

24
Senior Manager, is responsible for the electrical system at 11KV and 400V. The system
consists of 879 feeders totaling 20914 KMs of 11KV and 13694 KMs of 400V lines and
45706 distribution transformers. Policy guidelines, schedules and authorization for
maintenance of feeders are issued to the 6 operating circles in the field headed by the
Superintending Engineers and frequent inspections are carried out to ensure compliance.
The department also has a civil engineering division headed by an Executive Engineer for
the design, construction and maintenance of all the buildings of LESCO.

Technical Services Department

The Technical Services Department carries out the testing, calibration and repair of all
the energy meters, and also the installation of the maximum demand meters. It is headed
by 02 Managers who have 03 distribution circles each as their areas of responsibility.

PDC Department

The Power Distribution Control Department headed by an Executive Engineer has been
set up to monitor the entire electrical network of LESCO round the clock. Information
about the supply breakdowns, major equipment damages and occurrences of importance
are received through telephone and fax from the field and are transmitted to the highest
level in LESCO and WAPDA, and then instructions are passed for situation management.

Safety Department

The Safety Department headed by a Deputy Manager ensures that the system is operated
in compliance with the statutory provisions regarding safety for the employees and the
public. Frequent inspections are carried out and safety parades by the employees are held
to ensure that working practices are safe and the employees are adequately trained in
safety measures. Every accident occurring to an employee, member of public or animal is
investigated meticulously and lessons learnt and disseminated.
In order to update the assets information and to monitor the efficacy of its operation,
maintenance and safety policies and programs related to the entire LESCO electrical
network, the following returns are prepared and issued.

Technical Services and Operations

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M&T organization is one of the most important departments in LESCO, the company
revenue depends on accurate functioning of its cash box i.e., energy meter, M&T deals
with checking installation, testing and re-calibration of energy meters the importance of
M&T can’t be over emphasized. It also attends any fault in metering equipment-
involving panels, MDI meter, C.Ts, P.Ts or cable and this ensures continuity of supply to
consumer using electricity in bulk. The low losses in B-2 & B-3 units of LESCO speak
volumes for efficiency of M&T department. It has dedicated and devoted staff and ready
for duty at call at any time. This department also enables operation wing to reutilize
defective T&P meters and thus saving a large amount of revenue by repairing these
meters.

Material Management Directorate

Pre qualification and Registration of firms for supply of distribution / GSO Material
Procurement of material through tender
Disposal of unserviceable material / vehicles through tender and auction
Formation of rate contract for regular supply of material with firms
Arrangement of all kinds of material including T&P items from other DISCOs as per
requirement of field formations
Maintaining of minimum and maximum level of material in stores
Issuance of material as per requirements of field formation

Material Store Configuration

Jurisdiction
Sr. No. Field Store
Name of Division Name of Circle

1 Regional Store Shalimar All Field/Construction Stores

26
 McLeod Road
Civil Line Central Lahore
2 Northern Lahore Samanabad

Data Durbar Northern Lahore

Garden Town
Johar Town
3 Southern Lahore Southern Lahore
Gulberg
Ferozepur Road

A.I. Town
Central Lahore
Gulshan Ravi
4 Central Lahore
Badami Bagh
Northern Lahore
Fort

Shalamar
Baghbanpura
5 Eastern Lahore Eastern Lahore
Saddar
Defense

North Div. Construction

6 Construction Project Construction
South Div. Construction

Depalpur
7 Okara Okara Okara
Renala

Chunian
Phool Okara
8 Chunian Nagar

Raiwind Southern Lahore

9 Kasur Kasur Southern Lahore

Muridke Sheikhupura
10 Shamke
Ferozewala Northern Lahore

27
 City Sheikhupura
11 Sheikhupura Sheikhupura
Rural Sheikhupura

Nankana
12 Nankana Sheikhupura
Shahkot

13 Remote Store Shahkot Shahkot Sheikhupura

Project Management / Construction Directorate

1- Construction/Bifurcation H.T Feeders

(A) Under Annual Development Programme

(B) Under System Augmentation Program

2- Rehabilitation Of H.T Lines

(A) Under Development of Power

(B) Under Energy Loss Reduction
(C) Under System Augmentation Program

3- Rehabilitation Of L.T Lines

(A) Under Development of Power

(B) Under Energy Loss Reduction
(C) Under System Augmentation Program

4- Village Electrification

(A) Electrification Of Rural Areas Falls In Lahore, Sheikhupura, Kasur And Okara
Districts.

5- Deposit Works

28
 (A) Private New Connection & Extension of Load
(B) Government Connection
(C) Housing Schemes
(D) Others Works

Training Centers

LESCO also provides refresher courses to the employees for working in computer based
and modern systems. The newly induced employees are enrolled for newly induction
program and they are trained for LESCO environment and systems. Since the situation of
Law and Order is very spoil in our county therefore security staff of the LESCO is also
provided refresher courses to familiar with advance security systems and arms. For this
purpose a Training center is established in 220KV Grid Station Bund Road Lahore. All
the newly induced officials and officers are required to pass their newly induction
courses. The departmental promotion exams and training is also performed in this center.

Customer Services Directorate

The tasks assigned to Customer Services Directorate in LESCO are:

Implementation of Commercial Policies
Monitoring and management of recovery process
Monitoring of line losses and preparation of accurate line losses statements
Settling consumer disputes involving technical, commercial and tariff issues
Processing and monitoring policies and procedures for Customer Services
Inspection of field formations regarding Commercial and Customer Services matters
Sanction, contract management and monitoring of specialized electricity consumptions
such as Cable TV networks and neon signs etc.
Processing/sanctioning of various incentives for customers and employees introduced
from time to time

29
Effective marketing of electricity
Tariff structuring and management of other tariff related matters
Compilation of statistical data and management returns
Co-ordination with Manager MIS for regulating effective billing program
Surveillance and detection of electricity theft
Taking effective measures for prevention of electricity theft

Customer Services Directorate:

Director Customer Services: 9204814
Manager Commercial: 9204850
Manager monitoring & Surveillance: 9202424

Functions/Job Responsibilities of P.R.O

To ensure projecting of customers oriented policies of LESCO in Press media.

To apprise Chief Executive about daily news / press clippings pertaining to LESCO
To ensure press coverage of certain activities in forums / conferences

Management Information System directorate

Information can be technically defined as a set of interrelated components that collect,

retrieve process, store and distribute information to support the decision-making and
control of an organization. I addition to supporting decision making, coordination and
control information systems may also help managers and workers for analyze problems,
visualize complex subjects and create new products. It can help all kinds of businesses
improve the efficiency and effectiveness of their business processes, managerial decision
making and work group collaboration.
Any organized combination of people, hardware, software, communications, network or
data resources that stores, retrieve, transforms, disseminates information in any
organization is Management Information System.
In Lahore Electric Supply Co. the management information system department is also
working effectively and efficiently. This department is head by manager MIS. They use
Linux operation system, oracle based database and java oracle application suit.

WAPDA played leading role in establishing computer center in 1968. It was a time when
computer technology was bleak to majority government organizations. With the passage

30
of time, computer center continued its expansion and presently 22-computer centers are
in operation throughout Pakistan. The major millstone set for computer center was the
computerization of electricity billing which was met through in house development of
billing software. Later on, Management Information System, line losses system, payroll
and store management system were developed and implemented all over LESCO.
WAPDA Computer Center Lahore was attached with LESCO with effect from January
2000 as a process of corporatization of distribution companies. It has a sub-center at
Sheikhupura providing services to Sheikhupura Circle.

Organization Management Analysis (OMA)

The management of the Lahore Electric supply Company is appropriate for their jobs and
responsibilities. All the managers and directors are highly qualified, skilled, competent
and experienced.
The skills like leadership, effective communications, adoptability, effective relationship,
task management are present very well.
The communication level of the whole management is very sufficient. They communicate
efficiently and effectively.
The top level management and operation managers have good relationship.
The Job Fit psychoanalysis of the managers is very sufficient.

Plan of Internship:

Sr. Starting Ending Duration (in

Department
No. Date Date days)
1 01/08/08 09/08/08 Finance Department 8 days
HR and Administration
2 11/08/08 23/08/08 15 days
department.
Project Management /
3 25/08/08 06/09/08 15 days
Construction dept.
Management Information
4 08/09/08 30/09/08 20 days
system.

31
I selected the Lahore Electric supply co. for my internship training, which is necessary
for my two year MBA programme. I worked in head office of Lahore Electric Supply Co.
for eight weeks in different departments including Finance, Administration, Project
Management, and Management information system department. During my internship I
worked in these departments under the supervisions of concerned managers. The staff at
Lahore Electric Supply Co. is very cooperative and also they provided me information
about my internship report. I have very carefully analyzed all the departments of the
Company. Though to get information is very difficult task but I managed it fruitfully.
Although the eight week training duration is very short period for study of any
organization but I learned a lot due to the cooperation of the managers. The working
hours for duty are 9 AM to 5 PM With one holiday in a week. I worked in different
department of the company during my internship training. Management gave me a
schedule for each department where I worked.
I started my training in Finance department during first week under the supervision of
Manager Finance. Director Finance heads this department. During my internship in this
department I learned about different function of the finance department. I learned about
the major functions of keeping the record associated with accounting and finance. I also
learned about bank reconciliations, ledger and subsidiary ledger, which is necessary for
management to know about cash positions, needs for the funds, cost of electricity for
supply and distributions, administration expenses and financial expenses. I also learned
about annual reports, balance sheets, income and earning sheets or profit and loss
statement. Finance department is also responsible for the analysis of the working capital
and the preparation of the annual accounts, which is necessary for public limited
companies, a necessity to b e, published under the companies’ act and company
ordinance. Under supervision of manager accounts I would be able to do financial
analysis, which is necessary to know the exact position of the company. I also learned
about the financial policies of the companies that are concerned with the problem of
providing and handling the capital that is required for the business.
After finance department I joined the Human Resources and Administration department
for 10 days. Personnel and administration department is very necessary in any
organization. The numbers of functions being performed by administration department
are so much to any other department. Administration department consist on
administration manager, deputy manager administration, Assistant manager, HR
executives and clerical staff. I worked under the Deputy Manager Administration who is
very supportive and cooperative person. He also did MBA. He told me about the various

32
functions that administration department performs. During my training in this
department I learned that how the appointment record, employee recode is maintained.
How the performance of the employee is monitored. This department also deals with
issuance of show cause notice, charge sheets and termination. The HR department deals
with Recruitment, job placement, Test and interview of new employees. HR department
also performs trainings, promotions and retirements. Staff of this department is very
cooperative like other departments in Lahore Electric Supply Co. This section also
prepares the Promotions cases of the employees and also maintains the leave records,
increment records, security issues and maintenance of vehicles. The Director HR and
Admin advises management concerning various relations and represent management in
the handling the complaints of employees. I also learned that how billing of overtime,
TA/DA, contracts bankers record of workers for annual increments prepare also
preparation of government returns. This department also controls the wages system and
HRIS. The duties of assistant Manager Administration are accommodation, Telephones,
Transport, security, audit, procurement, compensations / benefits and labor management.
After completing my job in Finance and Human Resources & Administration
departments I attached with Project Management/Construction department. In Lahore
Electric Supply Co. project management department is headed by Senior Manager P&D.
during my attachment with Project Management / Construction department I learned how
the new Transmission and Distribution system is constructed. The system augmentation
program is also managed Project Construction department. In system augmentation
program software like Power system simulators, Advance Distribution studies and PSS
are used for augmentation of existing system. In project construction department two
further categories are Grid System Operation and Distribution system. The whole
construction work and augmentation work of GSO and Distribution is carried out by
project construction department. The Project construction department comprises on
Project Directors, project managers, Deputy Project managers, assistant project managers
and supervisors/overseas.
In engineering perspectives I learned how the study plan is prepared for augmentation of
the new and existing system both in computerized and in manual environment.
I learned that what are the main activates in the project management construction
department. The project management construction department deals with Construction
and Bifurcation of H.T Feeders, Rehabilitation of H.T Lines, Rehabilitation of L.T Lines,
and village electrification. In project management construction I also learned the
Processing of the applications for New Connections / Reconnections / Load Extensions
and Bulk Supply having load of more than 500 KW (Tariff Categories B – 3, B – 4, C – 2

33
& C – 3)
Approval & Design of External Electrification of Housing Schemes
Approval & Design of Electrification of Multistory Buildings/Shopping Plazas
Preparation of Distribution System Rehabilitation and extension and issuance of work
orders there of
Inspection of completed work orders
Load flow studies of distribution network
Technical adjudication of tenders for purchase of material
Maintenance of record/data of 11kv feeders
Updating database of 11kv feeders
Load flow studies on Transmission Lines and design/development plans for Transmission
Lines and Grid Stations
Inspection of materials procured for works
Development of standards and specification for materials/components and systems
Finally after completing these departments of Finance, HR and Administration, Project
management/Construction, I attached with the Management information system (MIS)
department of Lahore Electric Supply Co. The MIS department is managed by Manager
MIS. The MIS department of Lahore Electric Supply Co. comprises on Manager, Deputy
Managers, Assistant Managers, Data coders and Data entry operators.
During my training in this department I learned many new techniques, methodologies,
expertise, knowledge and technology. In Lahore Electric Supply Co. the Information /
MIS department employ the Windows XP / Linux Operating systems, Oracle Database
system and also have oracle Java based applications. This is based on ORACLE E-
Business Suite certified platform.
The MIS department deals with Enterprise Resource Planning (ERP) system, Financial
Accounting and Information System, Material Management System, Human Resource
Management System, and Customer Information and Billing System. In MIS department
of Lahore Electric Supply Company I learned how to make Queries in database system,
ONLINE billing system, Data collection through Barcode reader. I also learned about
Enterprise Resource Planning system, ONLINE transactions system and webpage
development. I also leaned that how the Management information system in any
organizations works.

The Structure and Function of MIS Department:

34
In Lahore Electric Supply Co. the Information / MIS department employ the Windows
XP / Linux Operating systems, Oracle Database system and also have oracle Java based
applications. This is based on ORACLE E-Business Suite certified platform.

OPERATING SYSTEM LINUX

DATABASE ORACLE
APPLICATIONS ORACLE JAVA

Department Hierarchy

35
 Manager

MIS

Dy Manager
Dy Manager Dy Manager

A. M (MIS) A. M (MIS) A. M (MIS) A. M (MIS) A. M (MIS)

A. M (MIS)

Major Functions /Operations of MIS department

• Billing System
• Payment Channels
Payment using NADRA KIOSK Machines
• Data Entry through Barcode Scanning
• Transfer of Collection Data to the Utility Company
• Customer Account on Company Website
• Reporting System

A: Billing System

Data Preparation system

Electricity billing of 2.1 million consumers
Duplicate billing system at 10 customer service centers and all divisions

B: Payment Channels

Payment using Bank Alfalah Credit Card. LESCO, in collaboration with Bank Alfalah,
has started the service of bill payment through credit cards for the convenience of its
customers. The collection data is submitted by Bank Alfalah to LESCO servers on daily
basis.
Payment using Bank Alfalah Direct Debit facility

36
Payment using NADRA KIOSK Machines

LESCO, together with NADRA, has also started the service of bill collection at NADRA
kiosks. The collection data is submitted by NADRA to LESCO servers on daily basis.
Payment through more than 350 online bank Branches and Post offices.
Utility bill payment was very tedious task and people had to stand outside banks for an
extended period of time. Realizing the need to resolve the issue of long queues for
LESCO Bill payments, Chief Executive Officer decided to explore the Payment
channels.. LESCO submitted a comprehensive proposal to resolve this issue to WAPDA
Authority headed by the Chairman WAPDA, Mr. Tariq Hamid, in October 2004. LESCO
started printing machine-readable bills from February 2005. The collection system was
also deployed, on trial, in a limited number of bank branches in the beginning of
February. The system was formally launched on March 19, 2005. At present 355
branches in LESCO are equipped with this system collecting about 25% of bills.
Bill Collection at Banks

Data Entry through Barcode Scanning

Bills are paid at designated branches as usual, but with a technical difference. The bills
are scanned by the bank cashier using an average barcode scanner just like a retail store
cashier does for grocery items. With a single scan, all the information encoded in the
barcode is instantly transferred to the software, which is saved with the single click of a
button. Provision is also given for entry of amended bills bearing barcode and bills
carrying no barcode. Bank users, without any effort, can generate daily scrolls and
collection summary. Monthly collection reports are also available.

Transfer of Collection Data to the Utility Company

The collection data from banks is transferred to online servers on daily basis using a
simple Internet connection. Alternatively a collection file may be generated and carried
on portable media if no Internet connection is available. This data is available for the
utility company for immediate download.

Customer Account on Company Website

37
The billing and receipt data is uploaded to the online server whenever it experiences any
change. Consumers are able to access true online services at the company website, which
include the following.
Viewing monthly bills
Printing duplicate bills
Payment confirmation
Consumption and Payment History
Account Status.

Benefits

MRBCS offers a win-win situation for all the three stakeholders.

For LESCO

Reduced time gap between collection and posting to customer account

Instant recovery analysis & timely remittance processing
Easier stub data entry, reporting & reconciliation
Overall reduced cost of collection processing & cash posting
Boost to overall image of the company
Improved customer service

For Customers

Much less time for making payments at banks

Ease in obtaining duplicate bills
Can use company website to
Confirm payment made
View & print electricity bills
Retrieve consumption & payment history
Check account status

For Banks

38
Much less time required for receiving bills
Data consolidation on a utility company provided system
Effortless scroll and report generation
Reduced cost of bill collection
Machine Readable Bill Collection Trial for All Utilities
Following the instructions of GOP, LESCO has extended MRBCS capability for
receiving PTCL, WASA and SNGPL bills as well in its area of operation. LESCO has
also provided its assistance to these utility companies in printing machine-readable bills
on a standardized format.
5. Government adjuster processing system.

C: Reporting System

Management information system

Line losses system
Special requirements of Chief Executive Office and other field offices

D: Other Systems

Payroll system
Inventory Management System

Support of MIS department with other departments

1. Financial Accounting and Information system

Financial Control
Transparent Transactions (Db/Cr)
Immediate Monthly Accounts (Month end closing means last day of the month)
Instant financial analysis
Online Cost center (drawing & disbursement offices) wise demand, remittance &
Account Head wise expenditure
Instant payable/receivable analysis
Multi-year accounting

39
Budget & expenditure comparisons
Bank Collection & Remittance Management (Realization on Company & Accounting
Unit Basis)
Profit & Loss Statement
Fixed Asset Management
Pension/Fund Account Management
Pension Disbursement
Trial Balance
Balance sheet
Classified Balance Sheet
Classified Income Statement

2. Material Management department

It will cover pre-purchase to post disposal and its immediate affect on general ledger. The
moment any file for procurement is moved, it will also be available to Finance Director
for financial vetting.
Inventory Structure (Categories and Items)
Supplier’s record & their specialty in Products
Immediate information about the required material on the basis of D.N paid with
reference to new connection, R.C.O etc.
Procurement
Annual Requirement Plan
Ordering with Delivery Schedule
Maximum/Minimum/Re-Order Levels
Item Purchase Analysis
Inventory Management
Receipt (Supply, Repair, Transfer)
Store Allocation (to Field Stores)
Store Requisition
Store Issue
Transfers (Workshop, Regional Store, Field Store, Other Dist. Companies)
Store Returns specially with reference to M.C.O etc.
Scrapping
Material Movement Analysis
Inventory Tracking & Holding

40
Disposal
Disposal Order
Disposal Issue

3. Human Resource department

All most all HR & Admn: activities from pre-hiring to post retirement have financial
impact on company. These include salary, house acquisition, TA/DA, free supply,
medical treatment, overtime etc. It is strange that we are not aware exactly how many
employees do we have & what expenditure is being incurred.

Recruitment Processing

Application Management, to save time we can allow candidate to apply any time.
Candidate Filtering
Call Letter Issue
Testing & Interviewing
Appointment

Career Profiling

Personnel Data Management

Performance Review
Termination
Promotion
Change in shift/timings
Resignation
Transfer
Suspension
Restoration
Re-appointment
Disciplinary Cases/Actions
Audit Paras
Training Courses & Examination
ACRs, Service Book

41
HR Analysis

Sanctioned Strength
Vacancy Statements
Seniority List
Retirement Forecast

Administration:

Vehicle control
Complete picture of all vehicles with reference to allocation, description, monthly
expenditure on P.O.L etc.

Payroll

Disbursement Channel Management

Pay Scale/Salary Group Management

4. Customer Information and Billing System

Customer Services

Unique Customer ID Assignment, no UT cash even in multiple change of reference.

Automatic Bill Adjustment Processing, no complaint for bill correction problems.
Division and even Subdivision wise Billing (Need not to wait for MR of all Divisions),
more time for Bill payment.
Corporate Billing
One Demand Note for Capital Cost & security and payment facility at any bank.
Bill Distribution through e-mail, direct to customer’s bank, normal channel etc.

Customer Information System

Tariff and Customer Classification Management

42
Corporate Account Management
WAPDA Employee Management
Change of Reference Management
Infrastructure Rental Management

Power Purchase System and Power Sale & Billing System

Billing information to Oracle Receivables for instant Balance Sheet
Consumer Metering
Consumer Meter Reading, manual, MR entry at Sub Div to avoid duplication of work &
AMR
Metering Adjustments with immediate revise Bill and automatic adjustment processing

Bill Collection System

Bank Collection, Remittance & Reconciliation (Various Levels) Management

Line Losses System

Company, Circle, Division, Sub-Division, Grid, Feeder and Transformer Losses

Critical Analysis

Vision of the LESCO

“As the leading electricity distribution company, strive to provide un-interrupted electric supply and
quality service to all customers at the minimum possible cost.”
Since LESCO is a public institute and NEPRA is responsible for its tariff selection etc.
The failure of electricity is governed and supervised by PEPCO. Therefore as described
in LESCO’s mission statement that leading electricity Distribution Company providing
UN interrupted supply at minimum possible cost, is still unachievable. The whole
company, its board of governors and top level management is trying at their best for
providing uninterruptible supply at customer premises. The current strategies of LESCO
are towards the provision of electric supply all the time. But unfortunately due to the
erroneous government policies the most important part of power generation is lost;
therefore the company is not successive in achieving their goals and objectives.
The matter of cost is also significant in LESCO’s vision. But to provide the electricity
round the clock it is necessary that the power houses must work effectively and

43
efficiently. Therefore the power houses require complete maintenance and testing. The
government also did not pay any attention on this matter. Now the work is too much and
a lot of financial aid is requiring sustaining the power houses. Whole of this scenario
creates a boost in cost of electricity. Therefore provision of electricity at low cost is not
possible until now.

SWOT Analysis

Strength

• One Window service facility at each Sub-Division

• Establishment of Computerized Customer Service Centers in each Circle
• Establishment of Mobile Customer Service to facilitate installments and
corrections of the bills
• Central Chief Executive Customer Service Center
• Positioning of Field offices near geographic center of their jurisdiction and
• co-location of XEN & RO offices
• Printing of 12 months billing detail on bill
• Printing of CEO's telephone numbers on the bill
• Well defined and uniform policy for detection bills
• Enhanced allocation for Development and Maintenance
• More branches of scheduled banks and post offices authorized to collect bills
• Establishment of Model Sub-Divisions
• Restructuring of Stores to ensure prompt availability
• Establishment of Marketing Cell and Task Force at LESCO HQ to facilitate
industrial/commercial consumers
• Great No. of customers in Districts of Lahore, Shaikhupura, Okara and Kasur

Weakness
• Large time required for processing any project/job
• Communication system between employees is not sufficient
• Customer services centers required well trained and loyal staff
• Lake of loyalty, consistency and regulatory in the staff
• Financial statement is showing loss in year 2008
• People has less trust over company
• Customer’s guide ness is not sufficient

44
 • Customer’s complaint system is very old and execution on the complaint is very
fatigue
• Customers and employees relation is very poor

Opportunities

• Corporatization and commercialization goals as per plan

• Establishment of mobile customer services center at each circle
• Distribution system rehabilitation under System Augmentation Program (SAP) for
reduction in energy losses
• Timely execution of development works and LT/HT Proposals under SAP
• New Grid Stations and augmentation/extension of existing Grid Stations and
Transmission Lines
• Establishment of Computer Billing Center at Okara, Kasur and Shaikhupura
• Conversion of petrol vehicles to CNG
• Purchase of new vehicles for field formation

Threats
• Since LESCO is a public organization, therefore political environments are
decreasing the efficiency of the company.
• Some other competitors like GEPCO and MEPCO have their own power
generation system; therefore LESCO is dependent on those companies.
• In future it is expected that the market value of the LESCO will be decreased.
• Politics in the employees and labor unions are very awful for company
• Government’s pitiable projects also spoiling the publicity of the LESCO
• The overall performance of the LESCO also decreasing

45
 Internal Factor Evaluation Matrix (IFE MATRIX)

IFE MATRIX Weight Rating W/ Score

Strengths
1 Well known for electricity distribution services 0.16 4 0.64
2 Establishment of Computerized Customer Service 0.15 3 0.45
3 Printing of 12 months billing detail on bill 0.07 4 0.28
4 Strong balance sheet 0.11 3 0.33
5 Great No. of customers in Districts of Lahore, 0.13 4 0.52
Shaikhupura, Okara and Kasur
Weaknesses
6 Strictly a local company 0.05 2 0.10
7 Lack of communication system 0.02 2 0.04
8 Financial statement is showing loss in year 2008 0.08 2 0.16
9 Customers and employees relation is very poor 0.1 1 0.10
1 People has less trust over company 0.10 1 0.10
0

Total 1.00 2.72

The total weighted score can ring from a low of 1.0 to a high of 4.0, with the standard
score being 2.5. Total weighted scores well below 2.5 differentiate business that is weak
internally, where as scores considerably above 2.5 designates a well-built inner position.
In the above IFE prevailing conditions the company LESCO falls at weighted scores
2.72, it means the LESCO has better internal structure.

External Factor Evaluation Matrix (EFE MATRIX)

46
 EFE MATRIX Weight Rating W/ Score
Opportunities
1 Establishment of mobile customer services 0.16 4 0.64
2 Timely execution of development works and LT/HT 0.15 3 0.45
Proposals
3 New Grid Stations and augmentation/extension of 0.16 3 0.48
existing Grid Stations and Transmission Lines
4 Conversion of petrol vehicles to CNG 0.12 3 0.36
5 Purchase of new vehicles for field staff 0.13 3 0.39
Threats
6 It is expected that the market value of the LESCO will be 0.05 2 0.1
decreased
7 Politics in the employees and labor unions are very awful 0.05 1 0.05
for company
8 Financial statement is showing loss in year 2008 0.08 2 0.16
9 The overall performance of the LESCO also decreasing 0.03 1 0.03
1 Government’s pitiable projects also spoiling the publicity 0.07 1 0.07
0
of the LESCO
Total 1.00 2.73

Threats Opportunities Weakness and Strength (TOWS Matrix)

TOWS Matrix, simply list the firm's strengths, weaknesses, opportunities, and threats in
boxes along the top and side of the matrix as indicated on the sample TOWS Matrix
provided on the next page. These are the same factors you earlier determined (ranked) to
be most important in your external and internal audits. Then in the four strategy
quadrants labeled Strength Opportunities, Weakness Opportunities, Strength Threats, and
Weakness Threats, list specific strategies that would benefit the firm in light of those
underlying factors.

47

Opportunities
Corporatization and
commercialization goals as per
plan.
Establishment of mobile customer
services center at each circle.
Distribution system rehabilitation
under System Augmentation
Program (SAP) for reduction in
energy losses.
Timely execution of development
Strength
One Window service facility at
each Sub-Division
Establishment of Computerized
Customer Service Centers in
each Circle
Establishment of Mobile
Customer Service to facilitate
installments and corrections of
the bills
Central Chief Executive
Customer Service Center.
Positioning of Field offices near
geographic center of their
jurisdiction.
co-location of XEN & RO
offices
Printing of 12 months billing
detail on bill.
SO Strategies
present a better way of
performing jobs in tune with the
established brand
And Increase Market shares.
To offer designs solution to the
customers.
Invest in the augmentation of the
new grid station and increase the
capability of transmission lines.
To meet the high demand of the
Weakness
Large time required for
processing any project/job
Communication system between
employees is not sufficient
Customer services centers
required well trained and loyal
staff
Lake of loyalty, consistency and
regulatory in the staff
Financial statement is showing
loss in year 2008
People has less trust over
company
Customer’s guide ness is not
sufficient
Customer’s complaint system is
very old and execution on the
complaint is very fatigue.
WO Strategies
Improve the file processing
system so that the
implementation of the new planes
comes into reality at a shorter
time.
Execute the pilot projects
gradually.
Increase the quality of the
communication systems.
Arrange periodic training system
48
works and LT/HT Proposals under
SAP.
New Grid Stations and
augmentation/extension of existing
Grid Stations and Transmission
Lines.
Establishment of Computer Billing
Center at Okara, Kasur and
Shaikhupura .
Conversion of petrol vehicles to
CNG
Purchase of new vehicles for field
formation.
Threats
Since LESCO is a public
organization, therefore political
environments are decreasing the
efficiency of the company.
Some other competitors like
GEPCO and MEPCO have their
own power generation system;
therefore LESCO is dependent on
those companies.
In future it is expected that the
market value of the LESCO will be
decreased.
Politics in the employees and labor
unions are very awful for company
Government’s pitiable projects
also spoiling the publicity of the
LESCO
customers make plans and
implement in the shortest
possible time periods.
ST Strategies
To increase lobbying with the
government to prevent extension
of purchase and maintaining
level playing field in the
segments.
To tie up with the small
contractors on business sharing
arrangements to prevent price
raise.
To be cautions in the event of
change of government and
process of reforms falling of the
tracks.
To check the emergencies and
arrange necessary measures for
it.
Always be aware about the
to increase the knowledge and
skills of the employees.
WT Strategies
Reduce the dependency on the
government policies.
To train the manpower to counter
the threats of emergencies, break
downs etc.
Increase the accessibilities of the
employees.
Enhance the market value by
getting the long term customers
trust and loyalty.
Arrange a job fit analysis and
arrange right person for right job.
49
 The overall performance of the laborer union agenda etc.
LESCO also decreasing

Competitive Profile Matrix

FESCO LESCO GEPCO

Competitive Factor Weight Rating W/Score Rating W/Score Rating W/Score

Cost competitiveness 0.16 3 0.48 4 0.64 2 0.32

Quality of installation 0.14 4 0.56 3 0.42 3 0.42
Reputation 0.09 4 0.36 1 0.09 2 0.18
Reliability of Supply
0.14 4 0.56 3 0.42 3 0.42
and installation
Complaint Handlings 0.11 3 0.33 3 0.33 3 0.33
Management structure 0.13 2 0.26 3 0.39 4 0.52
Market shares 0.03 4 0.12 4 0.12 1 0.03
Customer Services
0.05 3 0.15 4 0.20 2 0.10
Centers and Facilities
Maintenance and testing
0.08 4 0.32 4 0.32 3 0.24
of Equipments
Customer Loyalty 0.07 2 0.14 4 0.28 2 0.14

Total 1.00 3.28 3.21 2.70

BCG Growth-Share Matrix

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The Lahore Electric Supply Co. consume large amounts of cash, but because they have
low market shares they do not generate much cash. The result is a large net cash
consumption. Therefore according to the Bostn Growth Shares Matrix the LESCO falls in
Question Marks.

Porter Five Forces Analysis

The porters five forces comprises on the following factors
• Suppliers power
• Threats of Substitute
• Buyers Power and
• Barriers to entry.

But in the case of LESCO the competitors are limited to provide their services in the
defined areas of the country. They cannot provide their services beyond the limitations.
Since in the Districts of Lahore Kasur Shaiku pura and okara only LESCO is responsible
for providing the services therefore no other substitute or there is no any new company,
which can provide electric supply.

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Conclusion
The Lahore Electric Supply Co. is a big organization. It provides electricity to the
consumers of the Dist. Lahore, Okara, Shaikhupura and Kasur. It is performing his job
very well but certain improvements and developments are required. This organization has
vertical management system. The top-level management has ample potential to make this
company as a superb company. The middle level and bottom level management is also
very hard working, punctual and geniuses. But unfortunately the provision of equipments
for maintenance purposes, the government’s lengthy planes, and inexperienced customer
services department is spoiling the image of the company. The demand of electricity of
the consumers must be fulfilled at top priority. Necessary actions should be taken against
the span between the demand and supply. The response of the employees on the failure of
the supply must be enhanced. Following conclusions are described here
• Increase in Raw material
• Slow speed of implementation must be eliminated
• Make exact estimate of the demand
• Reduce the political factors in lesco’s projects and system augmentations.

Recommendations
The employees must be well trained for customer services issues. The extra equipment
for maintenance and complaint attendance must be provided to the staff. The
communication gap between senior management and lower technical, maintenance staff
must be improved. The organizational hierarchy
Inside the organization must be reduced. The application processing system must be
improved. For complaints and other customer related tasks, online computerized system
should be arranged. The trust of the customers must be retained.

References and Sources Used

• Website of LESCO/PEPCO/WAPDA
• Technical brushers of LESCO
• Personal meetings with different mangers
• LESCO new induction training program booklets

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• Standard Operating Procedural (SOP) documents
• Annual Reports published by LESCO for FY 2006,2007 and 2008
• Technical data prepared and collected by LESCO’s library.
• Strategic management by Mr. Shafiq; copyright by Virtual University of Pakistan

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