University of Mnagematics

Topic : Faculty: Program: Course: Culture of KESC Dr. Copy MCEM Organizational Be a!iour

Information gathered by group members:

Salman " an S a ru" " an #mir " an Kareena Kapoor Deepi"a pa$o"on

CO%TE%TS
History of KESC Who they are? What they do? KESCs vision. Strategic planning. Turnaround strategy. Working environment. acts and figures. Hierarchy of KESC organi!ation mem"ers. #ro"lems faced "y KESC. $est #ractices rame%ork& and Compliance. and 'onitoring "y KESC. (ncreasing and improving KESCs generation capacity. Sources and links.

KARACHI ELECTRIC SUPPLY COMPANY

HISTORY O KESC
KESC is one of the oldest companies in Karachi and was established in the city even before the creation of Pakistan in 1947. ncorporated on September 1!" 191!" #nder the ndian Companies $ct of 1%%&" the company was nationali'ed in 19(& b#t was re)privati'ed on *ovember &9" &++(. KESC came #nder new mana,ement in September" &++%- a si,nificant n#mber of professional mana,ers with e.perience in r#nnin, #tility and other lar,e companies have /oined #nder this mana,ement and will be r#nnin, it #ntil the company is t#rned into a best practice #tility. 0he electricity s#pply b#siness in Pakistan is #nder two companies. 1or Karachi city and ad/oinin, areas of Sindh and 2alochistan" it is #nder Karachi Electric S#pply Corporation 3KESC4. 1or rest of the Pakistan it falls #nder 5ater and Power 6evelopment $#thority 35$P6$4. 2oth companies operate their own networks and they are also interconnected to each other at two points. 7ne is the 8amshoro 9 2in :asim link in East of Karachi and other is ;<2C7)KESC link in 5est of Karachi. 2oth companies can provide power to each other thro#,h these links.

!HO THEY ARE

Karachi Electric S#pply Company 3KESC4 ,enerates and s#pplies electric power to Karachi" a metropolis with a pop#lation of over 17 million and one of the most pop#lo#s cities in the world.

0hey c#rrently provide electricity to over &.1million cons#mers" not only in Karachi b#t also in the towns of 6habe/i and =haro in the province of Sindh and ;#b" <thal" >indhar and 2ela in the ad/acent province of 2al#chistan.

!HAT THEY "O

KESC#s $ISSION
7#r vision is to be a val#e)driven and service inte,rated company" with innovative ideas" where the core set of val#es is shared amon,st everyone. 7#r vision is based on the followin, fo#r pillars

0ho#,ht ?eadership Knowled,e 2ased ?earnin, >al#es Social @esponsibility

7#r key ,oal is to provide #ninterr#pted" reliable electric power at an affordable price to o#r cons#mers as it is o#r core priority. 5e also play a responsible role when it comes to ,ivin, back to o#r society" which we believe is developin, to its f#llest potential. 5e are devoted to developin, positive relationships amon,st o#r cons#mers" employees and stakeholders. ncreasin, employee morale and presentin, a more positive ima,e of KESC are all part of o#r ambitio#s five)year plan for the company. 0o make distrib#tion and c#stomer service more efficient" the cityAs electric network is divided into fo#r different re,ions" each of which is monitored by an independent centre. Employee development is another top priority for #s" and has therefore" led to the initiation of professional partnership pro,ram.

STRATE%IC PLANNIN%
Strategic plan with implementation mechanism was prepared for rehabilitation of out dated and dilapidated transmission and distribution network which has been under execution in a phased and prioritised manner.

$ n#mber of critically important pro/ects have been commissioned or are in the final sta,e of completion" which has improved network reliability and increased transmission B distrib#tion capacity. Establishment of a comp#teri'ed system for mana,ement of ,eneration" transmission and distrib#tion known as SC$6$ is bein, e.ec#ted as one of the prioriti'ed pro/ects. 0he commissionin, of this critically important pro/ect wo#ld si,nificantly improve efficiency of power system control B monitorin," facilitate timely operational decisions B economic dispatch of power and wo#ld minimise o#ta,es and technical losses. $#,mentation and e.pansion of o#tdated and fra,ile distrib#tion network has always been amon, the priority areas of the mana,ement in order to facilitate val#ed cons#mers of the Company by providin, #ninterr#pted s#pply of electricity. *inety ei,ht 11k> feeders have been commissioned and !&! PC0s have been installed B ener,ised. C#stomers are provided with one)widow service with the inception of nte,rated 2#siness Centre and a transparent comp#terised new connections sanctionin, proced#re has been introd#ced.

T&rnaro&n' Strategy
0he new owners" in partnership with KESC mana,ement and Siemens" have come #p with a three)tier t#rnaro#nd strate,yD 3i4 @estr#ct#re and develop the or,ani'ation to make the operation more c#stomer) foc#sed while improvin, collections and administrative losses. 0his will lead to better reven#e protection and cash)flow ,eneration" while enhancin, KESCEs mana,ement capabilities and increasin, c#stomer satisfaction. 3ii4 2alance" moderni'e" and replace the 0B6 network to be able to cater for peak capacity demand in the f#t#re and red#ce technical losses" which will lead to lower ener,y losses and hi,her billin, per #nits dispatched. 3iii4 ncrease and improve KESCEs ,eneration capacity to increase the reven#e base" diversify so#rces of power for KESC" lower the blended cost of ,eneration" and enhance the Karachi areaEs overall ,eneration capacity to cater for the increasin, demand.

!or(ing Environment
5e ass#re o#r employees /ob sec#rity and lon,)term employment provided they f#lfill their responsibilities. 0o ens#re merit)based /ob selection" and that we select hi,hly F#alified candidates" an nternal 8ob Postin, process has been implemented. 0o be promoted to hi,her) level positions in the company" employees will be reF#ired to take tests cond#cted by the nstit#tion of En,ineers" Pakistan 3 EP4 and participate in panel interviews. n this rapidly chan,in, world" one m#st constantly br#sh #p oneAs skills. 0o enco#ra,e o#r c#rrent employees to do so" we have introd#ced an or,ani'ational development pro/ect. KESC is partnerin, with EP to develop several certifiable professional)skill enhancement pro,rams. $ new lab has been established at the KESC 0rainin, Centre to train and test employeesA technical skills.

GENERATION Capacity: KESC Available Capacity: 1,400 M !Re"tal I"cl#$ive% &#el type$: Ga$, '&O E(te)"al A*DA + I**$ , Ab-#t 4. / -0 t1e elect)icity i$ p#)c1a$e2 0)-3 A*DA + I**$ I"te)"al KESC , Nea)ly ../ -0 t1e elect)icity i$ 4e"e)ate2 t1)-#41 -#) -5" $y$te3

TRANSMISSION Capacity: .6 4)i2 $tati-"$ + 178 p-5e) t)a"$0-)3e)$ Net5-)9 -0 770, 187, a"2 :: K; ci)c#it$ T1e p#)c1a$e2 a"2 -5" 4e"e)ate2 elect)icity i$ bei"4 t)a"$3itte2 t1)-#41 t)a"$3i$$i-" "et5-)9< T1e c#))e"t t)a"$3i$$i-" l-$$e$ a)e le$$ t1a" 8/

DISTRIBUTION Capacity: 11 K; &ee2e)$ 110= N-$ S#b$tati-"$ 7.=1 N-$ *MT,S 11.:7 N-$ Di$t T)a"$0-)3e)$ 18667 N-$ 'T U"2e)4)-#"2 Cable 4640 KM 'T Ove)1ea2 Mai"$ 744. KM >T U"2e)4)-#"2 Cable 11?: KM >T Ove)1ea2 Mai"$ 10::. KM Di$t Capacity 487? M;A

ACTS )

I%URES

KESC is an inte,rated power #tility with e.cl#sive franchise ri,hts to serve Karachi and its s#rro#ndin, areas" with a licensed network area spannin, G"+++ sF#are kilometers. Fully integrated power utility involved in generation, transmission, and distribution. KESC is a public limited company listed on all stock exc anges. ",#$% &' ()#$% &' Own capacity* #+, &' -..s* /"% &' '0.10231!C* 0ggreko 4ental $% &'5 0round )+,%%%($"6 permanent, 786 contract, 8,6 sta99, ))6 o99icers5

Operations:

!otal Capacity: Employees:

Key Stat#$ G)i2 Stati-"$

.6

T)a"$0-)3e)$ 770 K;@ 187 )" K; 187 K;@ 11 )%$ K; T-tal 11= *-5e) >i"e$ 17 770 K; >i"e$ .: ( 187 K; . ( :: K; T-tal ""# km /)+ km )7, km 6?6 93

Ove)vie5 !ransmits electricity 9rom generation to distribution at ig voltage.

Key Stat#$ T)a"$0-)3e)$ .ole mounted Feeders )#,7)7 ),%"%

Ove)vie5 1istributes electricity to " million customers.

<ulk customers get supply 9rom )) K= lines.

Only )) customers on t e transmission network. :rid stations step;down electricity.

*-5e) >i"e$ )) K= %.7 K= +,%,/ km )),+)8 km

0ll ot er consumer as connections 9rom t e %.7 K= circuit.

T-tal

)8,8)7

KESC#s TEAM)

0heir team ens#res performance F#ality and provides in)depth oversi,ht on strate,ic iss#es. 5e are a val#e driven company whose main emphasis is based on the followin, fo#r pillarsD

0ho#,ht ?eadership Knowled,e 2ase ?earnin, >al#es Social @esponsibility

5e have to pertain to o#r val#es- these val#es incl#de inte,rity" acco#ntability and the drive for contin#o#s improvement. ?ivin, theses val#es means mana,in, o#r environmental impact in ways that strike the ri,ht balance between societyAs economic and environmental needs

KESC OR%ANI*ATION STRUCTURE

KESC <oard o9 1irectors C ie9 -nternal 0uditor Executive &anagement Committee

C ie9 >4 O99icer

C ie9 Financial O99icer

C ie9 ?egal 0dviser

-! 1epartment >ead !ransmission

C ie9 Supply C ain O99icer

C ie9 Executive C ie9 Operating O99icer :eneration Engineering .rogram .roductivity >ead

PRO+LEMS

ACE" +Y KESC

! e Karac i Electric Supply Company as been 9acing big de9icit o9 cas 9low on t e part o9 its non;paying consumers, w o owe 4s. #/ billion to KESC, and t is in turn is resulting in s ort9all o9 power supply to t e &etropolis. ! e K'S< is in debt o9 over 4s. 8 billion because o9 w ic a rotational load;s edding is being carried out on )" dedicated 9eeders at its 'ater .umping Stations 9or 9our ours during nig t time. ! ey are 9acing t e problem o9 t e9t o9 electricity. ! ey are aving s ort means o9 generations. ! ey are neglected by t e government. ! ey ave serious disagreements among t emselves. Kunda system is very rampant. -t causes ma@or loss in KESC. Corrupt employees ave a and in providing kundas to some people. ! e public does not consider t e9t o9 electricity as t e9t. ! ey see it as t eir rig t to electricity. ! ere is a simple connection o9 kunda and t ere are also planned connections. &edia presents @ust t e consumers problems and does not s ow problems 9aced by t em ! eir biggest t reats are t e kunda system and t e public. Corrupt employees exist t us bribe systems are present. Corrupt employees ave a and in providing kundas to some people. ! ose employees t at are not corrupt are very sincere in t eir work s owing up 9or work during severe load s edding days t oug t ey know t at t eir building can be attacked by angry mob. Geographic Location of KESC Power Plants: Most of the generation capacity of KESC is located in east of the city. This adds an unnecessary transmission cost in moving this power to north, west and south of the city.

Distribution Problems: Now let us come to KESCs distri ution woes. The distri ution networ! is not only elow demand ut there is a huge factor of power theft also. This theft happens in three ways"

KESC clients, who already have connections, ypass the electricity meters. #ew years ago KESC was eing run y the $rmy and even they couldnt stop the power theft in spite of moving electricity meters of most of the city out on the streets. This was done to ensure the meters are not tempered with. %ndustrial clients who are illed according to a sanctioned load use igger grips to get more power

+est Practices rame,or(an' Com./iance an' Monitoring 0y KESC

KESC is in the process of benchmarkin, itself a,ainst international best practices. 0his will incl#de internal and e.ternal benchmarkin, processes. nternally" benchmarks will be #sed to identify b#siness #nits" divisions" and departments where best practices e.ist. $s best practices are identified in one area" they can then be implemented across all other areas. E.ternally" benchmarkin, will be #sed as a tool to identify the e.tent of the deviation from best b#siness practices. 0his will be achieved by selectin, a partner within the benchmarkin, network. 0he partner may be an or,ani'ation within the same service sector or ind#stry" or one from different ind#stries or sectors. ;avin, identified best b#siness practices" KESC can implement these practices" proced#res" or systems to its own benefit. $t present" KESC is in the process of implementin,. 0he mana,ement is c#rrently foc#sed on tryin, to implement a hi,h) performance c#lt#re" based on merit and enablin, open comm#nication witho#t re,ard to social or corporate hierarchy. Cana,ement has devised broad c#lt#ral ,#idelines that each person and ,ro#p 3as well as KESC as a corporate entity4 will aspire to live by in the dischar,e of their d#ties.

Increasing an' Im.roving KESC#s %eneration Ca.acity

0his component is divided into two components of rehabilitation of e.istin, facilities and ,eneration capacity addition. &. 'e a(ilitation of E)isting *eneration Facilities

0he rehabilitation pro,ram aims to increase power ,eneration capacity from e.istin, plants by &1! C5 before the s#mmer of &++7. Key areas for improvement are heat rate" a#.iliary cons#mption" and load factor. 0he total amo#nt allocated for rehabilitation for &++7 and &++% is appro.imately P@s+.G billion 3H1+ million4. +. Capacity #$$ition: Capacity addition of 7%+ C5 thro#,h two new combined)cycle power ,eneration plants is planned #nder this component. 0he plants will have a dependable capacity of appro.imately 74( C5. 0he first plant of &&+ C5 will be b#ilt on s#rpl#s land within the bo#ndary of Koran,i 0hermal Power Station and will cost P@s11.+ billion 3H174 million4.

SOURCES AN" LINKS httpDIIwww.kesc.com.pkIen httpDIIdocs.,oo,le.comI,viewJ aKvBFKcacheDL>dfk,+C+ls8Dwww.adb. or,I6oc#mentsI@@PsIP$KI4+94!)P$K) @@P.pdfMKESCMmissionMstatementBhl KenB,lKpkBpidKblBsrcidK$6=EESh#8 k@iPhF) s'#71%N0e lGKwew1fk/(+0iPp.;$*0* 4nl0 ltmk##7'(Li'EfS8lO?Nv'!!n@!@S >' C0/)poa) :kcthP$pnk0i7Nfd8=hoC&#5fK6#d,< eLw1ptG:?dCvPN&Bsi,K$1:/C*Eb<Cti hy5o),C9)dya0'$1bCf4h,.