SBU AD under the leadership of Head SBU Asset Development, divided into 2 Sectors headed by Project Directors. Lead PMO and Chief Engineers are empowered to oversee the operations in respective zones. Meanwhile, Lead Business Development anchors on strategic, governance and commercial matters. 1256 Talents Resources 188 Executives 1068 Non-Executives
3.3 4.3 4.4 2.7 1.2 4.7 2.6 3.6 4.3 11.3 1.5 2.4 P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 Bank Draft Recovered in 2022, (RM,Mn) BANK DRAFT RECOVERY SUPPORTING INITIATIVES • Establish Blanket BD for PBTs • Continuous follow up with PBT to expedite issuance of CPC • Establish dashboard for BD Recovery for effective monitoring • Awareness Roadshows to improve work quality SUPPORTING INITIATIVES • TECO DAY – Every Thursday • MEGA TECO DAY • MEGA TECO WEEK • Engagements with APP, CMD, BP Finance • Workshops on Cancel/Defer Paper • Deep Dive Sessions in Zone REDUCTION OF IDC CAPEX UTILIZATION CAPEX SPENDING • Utilization in 2022 started lower compared to 2021 mainly due to material crisis • The trend picked up in end of Q3 as the material began to stabilized. • Another RM256mn in Q4 were contributed to diligent payment to the contractors 5.35% 5.34% 2021 2022 OEI IDC, % 100.00% 100.00% 2021 2022 CPA, % -0.88 1.80 2021 2022 OEI OPEX, RM/Cust 68% 48% 31% 2021 2022 SAIDI 50, % 2,638 2,867 2021 2022 CAPEX, RM bn 5.12% 6.14% 2021 2022 PF, % -0.01% 11% +8.68% +1.02% +3.05% Mitigated % due to material & wayleave issue • Although CAPEX utilized was higher in 2022, AD cost normalized to a higher value after pandemic which resulted higher PF • Many factors during pandemic affected the baseline in 2021 • Upward trend is due to normalized OPEX after pandemic • OPEX was substantially lower during pandemic • Average OPEX is RM27.5mn compared to –RM8.6mn in 2021 79% Total BD Recovered: RM46.3Mn * Other RM362.4Mn utilized from Staff Cost & General Expenses SUCCESS STORY : ACHIEVEMENT FY2022
2020 & 2021 unprecedented Covid-19 Pandemic has its challenges and the impact on business continuity in SBU Asset Development. The effect continues in 2022 although the pandemic has progressed into endemic phase Perspectives Impacts / Observations Action Plan Supply Chain Reaction • Although daily operation has normalized, material supply chain was disrupted until Q4 2022 and yet to be stabilized • This disruption was affected by raw material price increment due to Ukraine-Russia Crisis too • Continuation of Material Crisis War Room is expected to alleviate the impact and reprioritize material deliveries. Work Contracts • Despite of early planning done, bulk contracts for Cable and Horizontal Directional Drilling (HDD) were not awarded as expected. • The awarding only happened in late Q4 2022, which left the project implementor close to none to get work done. • Control & monitor awarded contracts. Fulfilling the MSL & GSL and IBR performance requirements • Due to the material limitation and load demand pickup, some of the performance service standard for GSL & MSL were affected by the situation but was recovered with hard work and effective communication with customers. Projects were reprioritized accordingly. • Both SBU AD and Asset Owner to coordinate better in monthly coordination meeting specifically to monitor: • SLA projects implementations in terms of time and expenditure. • Data updating in DPMS. • To strategize and prioritize projects when necessary. • Consensus on accurate reporting. System Projects • System projects which include SAIDI50 projects were affected severely due to material unavailability. Majority of material were delivered to site in late Q4 2022. Projects were unable to be commissioned as planned in 2022, spilling over to Q1 2023. Safety requirements • Circular Head (Asset Management) Bil A06/2020 Clause 3 states the requirement of Permit Khas to be issued to Vendor’s supervisor with OKST certification to be at site for Greenfield or Brownfield full time. • Appointed OEM, KKB/KPB cannot fulfil this requirement to implementsimultaneous projects in all zones. • Vendors have more than 1 projects under implementation at one time. • For switchgear installation work in PPU, OEM were having difficulty in maintaining OKST at site for long duration (2-3 months) • Propose to the P&SC & HSE to review the process that has been practiced in the Grid Division that allows OKST to appoint a representative on site to supervise the project in accordance with the requirements of the act. • A meeting with HSE and P&SC was held on 2 nd Feb 2023. Improve performance Workforce Program Governance & Processes Business Ventures & Innovation SBU AD FOCUS AREA FOR 2023 • Excellent EBIT • Improve Professional Fee • Better Project Delivery Index • Higher Project Completion rate • Lower IDC • Execution of New SBU AD Structure in Nationwide • Focus on specialized training modules - Jointer cert. -OKST - PMP • Review and Improve, PSI & SLA • To strengthen roles of SBU AD Risk Management Working Committee • Develop New Business project • Leverage on Improved In-House Dashboard
LEVEL 1 – UNIT REVIEW LEVEL 2 – COLLABORATIVE REVIEW LEVEL 3 – KJ REVIEW LEVEL 4 – HOU REVIEW LEVEL 5 – HAD REVIEW • Inculcate safety culture • Project Progress Updates • KPI Enablers • SLA projects completion and expenditure. • Data updating in DPMS. • Strategize and prioritize projects • Consensus on accurate reporting. • Inculcate safety culture • KPI Performance • PL Status Review for supply & system projects • Inculcate safety culture • Short Term Arising Issues • Material issues • HR Matters • Inculcate safety culture • KPI Performance • Special Task Force Updates • Inter Department/Division Matters • Monthly • HAD, PD, KJ, PMO Lead, BD • Bi-weekly • HAD, PD, LBD, Lead PMO33 • Monthly • KJ/Lead PMO, Senior PI/PI, RP, Permit Mgr • Monthly • KJ/Lead PMO, KJ APP, RP, Permit Mgr • Bi-weekly • Senior PI, PI SBU ASSET DEVELOPMENT MONITORTING & CONTROL PLATFORM
FY2023 OVERVIEW SYSTEM PROJECT SAIDI50 PROJECT HIGH IMPACT PROJECT BANK DRAFT RECOVERY CARRY FORWARD AUC NORTH KUL SEL/PJCJ SOUTH EAST SBU AD 981 307 566 776 381 3011 320.39 109.25 295.51 420.67 203.37 1,349.21 TOTAL PROJECT TOTAL RM, mil Q3 TARGET NORTH KUL SEL/PJCJ SOUTH EAST SBU AD 240 184 162 347 128 1061 177.79 59.97 158.52 216.93 107.97 721.17 TOTAL PROJECT TOTAL RM, mil CFWD: Q2 NEW: Q3 TARGET • 10 new projects • 4 carry forward projects • Monthly SITREP sent to ST for their close monitoring in terms of timeliness and expenditure Supply System Development System Improvement Bulk RM2,759,519,930 Target to Utilize RM63.7mil/week • To get CPC issuance • To issue letter to PBTs for 12month matured deposit • Continuous monitoring & tracking status Bank Draft outstanding & recovery via SBU AD Dashboard 90% 10% 125.7 38.6 8.3 93.8 144.5 410 16.71 0.5 4.49 6.41 2.32 30.43 East South KL Selpj North Total Out Standing CPC Received 926.30 724.66 607.11 423.38 257.09 54.07 28.98 31.31 34.36 20.30 Selpj South North East KL Acquisition IDC Total Acquisition Val: RM2,938.54mil Total IDC: RM169.02mil 1,397.12 837.76 518.85 5.79 CAPEX EXPENDITURE
FY2023 FOCUS AREA
FY2023 FOCUS AREA : SAFETY • Safety Workplace safety involving TNB staff and contractors • Discipline in implementation of daily reporting • Competent person enforcement • Discipline in potential incident reporting • Contractors do not comply with the safety during work in progress • SQE culture at all levels and promotes safe work practices • NCR to the contractors who fail to comply with site safety and submit the reports, before, during & after • Ensure OKST plays a role at the site • Giving rewards to most PI reporters • Monitoring via Special Permit and site review • Engagement and enforcement with HSE for site review • HSE and ST give the briefing to all OKST • Submit a photo report with timestamp • PI Explore Race day • Build a safety team for review • Before the work is done, it is necessary to file a photo report with timestamp daily. • PI Explore Race Day once a year and reporting PI 6 per year • Engagement and enforcement with HSE for site review by monthly • Build a safety team for review by monthly • SQE is performed 4 times a month for exec and 30/monthly per subzone for non exec • Many convictions were found and stop work order was issued • The contractor cannot provide quality OKST • Too many reports to review • Work is delayed in the event of a noncompliance with OKST/KKT • An accident happened or near miss • DRM/URM/KJ review started with SQE presentation • Checklist for critical work – eg: driver backhoe, shoring • Checklist and Risk Assessment Report for OKST • Identifying noncompliance at the site involves the contractor • Make sure OKST/KKT is at the site during the works
FY2023 FOCUS AREA : OEI IDC • Material credit / credit failure after work • KKB Performance (Failured to fulfill TNB requirement (OKST, KKT, CIDB)) • Insufficient of KKB for subzone • Commitment of KKB during project completion • Late acceptance of permit/wayleave for cable range work • Hold an LKS workshop • TNB site supervisors need to monitor contractor work • Award a Certificate of Honor to a wellperforming contractor • Letter of acceptance agreement for Bulk Tender (11kV and 33kV) • Hold a meeting with APP for the NTP • Monthly review of SAIDI projects-discuss issues and suggest solutions • Identify bad performance contractor & finalized outstanding job • Finalize NTP • Develop SOP for permit application process (create google drive to store all permit documents related) • Increment of IDC • Capex unutilized • Lesser contribution towards ABU • Often hold workshops to complete LKS • RJO to contractor for the case of material loss • Proposal removed from SLA • Update GS war room material • Enhancing ranking projects in DPMS • Monthly reporting Identify bad performance contractor & finalized outstanding job • Monthly finalizing NTP • Monthly developing SOP for permit application process (create google drive to store all permit documents related) • Monthly meeting with Procurement including DCC team and warehouse team
FY2023 FOCUS AREA : OEI IDC • Project do not start or do not have any progress • Review SLA & TCD • PD1 CAPEX affected • One stop center – material issue • More often hold workshops to complete LKS • To identify the root course • Review SLA & TCD • OEI setting based on PD1, not zones • Material book out based on project situation & condition (limited availability) • TECO delay after project comm / IDC Problematic Projects • Ageing AUC • Current AUC • Right Charging (Normal Hour) • Understanding on calculation OPEX/Customer • Change/ additional/ revise work scope (CPP) • KPI OEI setting too low • List of yearly material requirement • Need to identify the cause of TECO delay • List all the projects with high IDC ( >6% of TPC) and monitoring of IDC (>4% of TPC) • Reminder every n-8 days in WhatsApp group • Declaration template approval timesheet by Subzone by WhatsApp • To engage with AD HQ – briefing during KJ Review • Manage Capex/asset book out wisely • Monthly meeting with Procurement including DCC team and warehouse team • Prioritize projects with 4% IDC (refer War Room Potential to TECO) • Discuss in KJ Review • Meeting with APP • URM • Utilize CAPEX ~ 100 - 102% • Weekly prioritize projects with 4% IDC (refer War Room Potential to TECO) • Monthly discuss in KJ Review • Meeting with APP monthly • URM by weekly
FY2023 FOCUS AREA : SAIDI 50 • Low PDI Score • Material Insufficient • Material Requirement • KKB Performance • Bulk Tender • Delayed Permit • Delayed Wayleave • Low CPA Performance • PDI Monitoring via Dashboard • Material Engagement with Warehouse & Procurement • Direct negotiable thru SR (Annually bulk tender) • Confirm and prioritize material for one year • Engagement with PERNISMA • Allocation Per State • Project Impact Sharing with PBT • To trigger PI when PDI approaches 0.8. PI must justify the confidence level or revise TCD. (Champion PDI) • Heads-up will be given by Lead PI State • Confirm prioritize via letter for SAIDI50 Q1 • Follow-up SAIDI50 and supply • Sharing session from best contractor to the rest of the contractors • KJ decide on contractor zoning • Dashboard data incorrect which may lead to incorrect analysis • External Push Factor to reprioritize workflow • Dispute of favoritism • Contractor Performance Drop • No Cooperation or commitment from PBT • Monthly data extraction by RP • HOZA must decide to reprioritize project • Transparent Daily Reporting & CASE Result with evidence on LKS • Replacement Contractor by second best award. • Early syndication with the PIC of PBT • Convince HOZA to provide support as TNB but not Unit • Monthly triggering PI when PDI approaches 0.8. • Lead PI state will be given heads up by monthly • Sharing session from best contractor by quarterly to the rest of the contractors
FY2023 FOCUS AREA : SAIDI 50 • Daily Reporting • CPP Delay • Turnkey NonStandard Materials • Delayed in completion of Civil works • Delayed in awarding contract to vendor by Procurement • Add-on Summary of Work Progress • Cut off Date Letter to APP • Agreement with ES & Developers • To award contract to vendor with minimum of 2 contracts in hand. • To take immediate actions on problematic vendor • Engagement periodically with P&SC. • WhatsApp Reporting • KJ Release letter to APP in Q1 to inform in advance KPI target Revision • Roll Out Events • Discussion with ES and Procurement • Identify list of project which required tender and extend ROC existing tender • To issue official letter to P&SC to inform on the projects in hand. • Engagement with PBT and Sharing Session with PBT on MSVT Importance • False Reporting • APP’s Commitment • Price Fluctuation • SR rejected by procurement • BQ price do not meet vendor expectation vs TNB • Long process and cannot control • Project delay • IDC increase • CAPEX not spend • PI and Team Spot check • Convince HOZA to give commitment based on latest target • Standard rate by price locking • Proper justification during SR submission • Early preparation of new tender • Monthly Coordination meeting • Daily WhatsApp Reporting • Issued letter to APP once to inform in advance KPI target revision • Discussion with ES and Procurement once • Identify list of project monthly
FY2023 FOCUS AREA : SAIDI 50 • Limitation of Protection Team • HDD work causing existing cable damage and breakdown • Site visit before wayleave submission. • Monitor and reminder to all staff • Propose penalty/ reimburse due to award delay according to SLA • To delegate technician to witness • To upgrade competency development for technician. • To explore new methodology and options. • Involve all parties including PBT, APP, PTS and AD. • DPMS Report Run & Revise TCD date with APP • To follow up closely with P&SC and email officially • To conduct SLA meeting with P&SC and award process flow. • To attend Competency Course by ILSAS • To implement using Ground Penetrating Radar (GPR) in critical area and review permission before start work. • No Commitment from Other Units • Lack in Monitoring • OPEX increased • Delay comm date • OPEX increase • Late comm • IDC increase • CAPEX cannot spend • PI Lead State double confirm to ensure all in order • To fully trust tester to conduct testing without witness from Protection Team • Change method to open cut • Engagement with PBT and sharing Session with PBT on MSVT Importance quarterly • Monthly reporting DPMS revise TCD date with APP • To issue official letter to P&SC and follow up closely by quarterly/yearly • SLA Meeting need to be conducted by yearly • To suit with each project
FY2023 FOCUS AREA : PROFIT & LOSS • TPC CPP underestimate • APP revised CPP only >600k @ 15% • Non-core Business • No TPC in DPMS • Timesheet not key in on due date • Total cost saving from TPC vs actual has reduced by 56% • Control CPP Variance • Revise circular • Do more non-core business projects • Fill in TPC in DPMS • Group champion for Right Charging • Blast reminder in WA group and declare pending name list • To check and monitor variance report TPC vs Actual • Revise CPP • Revise CPP even less than 600k @ 15% • RJO, RE, DA, VVO, BELB & non-regulated projects • Organizing DPMS workshop • Blast reminder in WA group and declare pending name list • TECO , Variance report , Revise ENGR 1107 • Monitoring active project and set threshold at 85% variance to notify APP as preventive • AD suffer losses • Competency • Timesheet charge to OPEX • IDC, PF will increase, HOC • Less profit TOY (total of years) • IDC, ABU, CAPEX, PDI • AD needs to review current costs and work paths/method before starting work • Training to talents AD • AD need to monitor/review TPC di DPMS and remind APP to fill in TPC • IM to monitor before timesheet approving due date • Monthly Revise CPP • Target date: June 2023 • RJO, RE, DA, VVO, BELB & non-regulated projects based on BAU • Monthly organizing DPMS workshop • Biweekly blast reminder in WhatsApp group
FY2023 FOCUS AREA : PROFIT & LOSS • % PBT (Profit Before Tax) lessened • Project Delay • Increased OPEX • CAPEX Utilization • Feasibility study and PIP to determine scope of work from early stage • To update approved TPC in DPMS • Group Champion for Project Completion • Deal with HR to fulfill vacant • crease capex expenditure • Material movement date & pre-requisite, site readiness, s/s h/over, job scope changes • Meeting with HR • Task force for PO Ageing • Progress payment • Engagement with PBT to facilitate the permit approval process • Prioritize project for material allocation • High Staff allowance • Delay in commissioning project due to issues on site • To check project with zero TPC and variance > 15% in SBU AD Dashboard (P&L) • To check project with zero TPC in SBU AD Dashboard (P&L) • Coordination meeting SLA/NTP/PDI monitoring • Follow up bi-weekly to HR • Focus to complete project with no permit/material issues • TECO , Variance report , Revise ENGR 1107 by monthly • Monitoring on active project and set threshold by monthly • Monthly meeting with HR
FY2023 FOCUS AREA : PROBLEMATIC PROJECTS • TECO delay after project comm / IDC Problematic Projects • Ageing AUC • Current AUC • Monitoring problematic project • Site constraint (infra by developer) • Pending permit approval • Need to identify the cause of TECO delay • List all the projects with high IDC ( >6% of TPC) and monitoring of IDC (>4% of TPC) • Engagement with subzone to TECO the projects • Reduce IDC problematic project • Engagement session with developer • Engagement session with PBT • Prioritize every projects with high IDC (refer War Room Potential to TECO) • Prioritize projects with 4% IDC (refer War Room Potential to TECO) • Progress for Problematic projects discussed in KJ Review • Follow up status with developer • Session with PBT focus problematic projects • Increment of IDC • Lesser contribution towards ABU • Unable to achieve KPI • Project delay • Did not get permit approval from PBT • More often hold workshops to complete LKS • To identify the root course • To TECO /defer within 1 st Quarter • Deferment • Discuss with APP to resolve project issues-revise work scope • Discuss with APP to resolve project issues-revise work scope • Prioritize every projects by monthly • Progress for Problematic projects discussed in KJ Review, session with PBT and follow up status with developer by monthly
Initiatives Activities Frequency Potential Risk Mitigations ANNUAL OPERATING PLAN (AOP) & RISK MITIGATION (KPI FY2023) LKS Clinic KKB day Monthly Low capex utilization Support Project Management Governance (Expedite payment to contractor) TPC Monitoring Budget Variance Quarterly Low Revenue Support Project Management Governance (Actual vs Budget > 15% or 600k) Support Project Management Governance (P&L) Cross audit SQE Checking SQE at subzone Monthly Low Revenue Prevent from doing last minute SQE Update DPMS DPMS Workshop Quarterly Inaccurate TPC
Initiatives Activities Frequency Potential Risk Mitigations ANNUAL OPERATING PLAN (AOP) & RISK MITIGATION (KPI FY2023) Hand-holding Safety Briefing & Daily Reporting Quarterly Low Revenue Effective safety & project monitoring SAIDI 50 Workshop Project Planning & Scheduling Once Low Revenue Support Project Management Governance (Expedite project completion) Support Project Management Governance (Expedite project completion & payment to contractor) Grouping activity Bank Draft Recovery Workshop Quarterly Low Revenue Support Project Management Governance (Expedite BD recovery) Internal Engagement Engagement with Procurement, Warehouse & HOZA Monthly Inaccurate TPC
Initiatives Activities Frequency Potential Risk Mitigations ANNUAL OPERATING PLAN (AOP) & RISK MITIGATION (KPI FY2023) Weekly Centralized CAPEX & TECO under JK to monitor TECO activity Champion to highlight “Potential to TECO” weekly to PI JK miss-monitor small amount of WBS PMO to highlight aging WBS to TECO To maximize BD Recovery Engagement session/Webex meeting with BKI/JKR Persekutuan to follow up Bank Draft receipt Once Low Revenue Support Project Management Governance (Expedite project completion) To provide tracking/google sheet for every projects which need permit/BD BG / Recovery / site issue between TNB & BKI Internal Engagement Engagement with Procurement, Warehouse & HOZA Monthly • Lost of documents, • mis-record document submitted • BD cannot be claimed and need to produce Sworn Statement (Surat Sumpah)
Initiatives Activities Frequency Potential Risk Mitigations ANNUAL OPERATING PLAN (AOP) & RISK MITIGATION (KPI FY2023) Monitoring MSL3b/PDI/SLA/NTP • Updating DPMS with evidence & supporting documents ENGR1101 &1103, permit, material • Refresher session for PI on MSL3b Weekly MSL breach Data integrity TEIS Coordination Calibration/updating data equipment Monthly Outdated calibration of equipment TEIS to provide summary detail of equipment with calibration date, due date to plan calibration equipment
Initiatives Activities Frequency Potential Risk Mitigations ANNUAL OPERATING PLAN (AOP) & RISK MITIGATION (KPI FY2023) PSI Review 11kV & 33KV Review PSI Yearly Non standardization of documents to be handed over to relevant department Need to revised PSI and to publish by 2023 SLA Review & Change Request Finalization Review SLA Requirement Yearly Breach of SLA & no guidance/circular provided Need to revise SLA due to current situation and base feedback from PMO South Non BAU projects Borderless, EV Projects As and when • Materials Shortage • Lack of commitment from contractors List out the projects and get commitments from both procurement and contractors
Initiatives Activities Frequency Potential Risk Mitigations ANNUAL OPERATING PLAN (AOP) & RISK MITIGATION (KPI FY2023) IDC Monitoring Syndication on High IDC projects Monthly Projects cannot be commissioned Proceed for deferment ESG Syndication on High IDC projects Quarterly Low participations Promote ESG programs to all staff Non BAU projects Borderless, EV Projects As and when • Materials Shortage • Lack of commitment from contractors List out the projects and get commitments from both procurement and contractors