62307309 Report on Operation of Kapco

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


4/45

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


10/45

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$


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


12/45

@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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/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$


18/45

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*


19/45

/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


20/45

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$6 times$


22/45

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$


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


23/45

/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$


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$


24/45

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$


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


25/45

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)$


26/45

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$


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


27/45

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$


28/45

:;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$


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$


29/45

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


30/45

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


31/45

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$


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


32/45

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


33/45

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$


34/45

*ISTRIB;TION O1 PO)ER*ISTRIB;TION O1 PO)ER


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 ?


35/45


36/45

Aggregate P&anningAggregate P&anning


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$


37/45

1INANCIAL IMPLICATIONS1INANCIAL IMPLICATIONS


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$


38/45

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$


39/45

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


40/45

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$


41/45

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


42/45

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*$


43/45

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


44/45

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


45/45

'hut down 'cheduling...............................................................................................2

'chedule or #ranes And Lifting 7

Documents

62307309 Report on Operation of Kapco