WRAP UP SESSION SBU ASSET DEVELOPMENT 23 January 2024
HAD REVIEW MEETING & WRAP UP SESSION (AGENDA)
KPI 1: Project Delivery Success Story PMO South (En Sazali) KPI 2 : OEI /IDC Lesson Learned : East Overall KPI SBU AD - BD Agenda KPI 2 : OEI /IDC Success Story : South 1 2 3 KPI 3 : SAIDI 50 4 Success Story : North KPI 3 : SAIDI 50 Lesson Learned : KL KPI 3 : EBIT & Professional Fees Success Story : South 5 KPI 1: Project Delivery Impact of Project delay(En Shahriman) KPI 3 : EBIT & Professional Fees Lesson Learned: North 6 Initiatives on Bank Draft Collection North Embracing Change & Fostering Adaptability with KUSEL
23 Jan 2024
Strategic Objectives KPIs HAD FY2023 Target % Current Achievement Financial Drive TNB business growth and profitability [RM] SBU AD EBIT LMT: EBIT RM182m UMT: EBIT RM263m + 6.76% 15% EBIT : RM191.8m PF : 6.12% MT Drive productivity & operational cost efficiency (1) [RM] OEI - Total Supply OPEX/Customer (RM/Customer) (2)[RM] OEI – Total Interest During Construction/(Asset Built Up + AUC) (%) (1) LMT : RM 4.65/cust* , UMT : RM 2.49/cust* (2) LMT : 5.50%, UMT : 5.38% 20% 1) OEI OPEX/Customer :RM 0.19 2) OEI IDC : 5.32% UMT UMT CustomerDeliver exceptional customer satisfaction, experience and trust through continuous and reliable electricity supply [Minutes] SAIDI LMT: 50 minutes UMT: 48 minutes 10% Result : 46.98 min UMT [%] HOZA Internal Satisfaction & Engagement Survey (HISES) LMT: 70% HISES UMT: 80% HISES 10% 78.1% (Unofficial) MT Internal Process Strengthen DN position through continuous engagements with regulators and key stakeholders & Uphold high Distribution Network performance and reliability aligned with IBR PI [%] Regulatory Relationship Strength Index (RRSI) & [%] IBR Performance Indicator (PI) achieved Result : RRSI: Year End 2023 + GSL3 : 100% & MSL 3b : 100% LMT: RRSI 80% & 90% DN IBR PI score from 3 PIs UMT: RRSI 84% & 100% DN IBR PI score from 3 PIs 10% RRSI: 90% UMT Drive subsidiarisation of DN Strategic Business Units [%] SBU Migration Readiness LMT: 70% SBU Migration Readiness (Actual vs Plan FY23) UMT: 100% SBU Migration Readiness (Actual vs Plan FY23) + develop 1 new product (approved by DOIT) 15% Plan = 100% Actual = 100% Project Delivery Index (PDI) = 1.00 SEED 5: Service Agent for New Supply Connection UMT Learning & Growth Drive high performance culture through enhanced employee experience and well-being [#] Fatality & [#] LTIF LMT : LTIF 1.5 + 2 PI for Unsafe Act UMT: Zero Fatality (Staff & Contractor) + LTIF 1.0 + 2 PI for Unsafe Act & 4 PI for Unsafe Condition 10% LTIF : 0.55 UA = 3753/2526 (149%) & UC = 8285/5052 (164%) UMT [%] %, Employee Engagement Score and IHI LMT: EES 80% + 78% IHI UMT: EES 85% + 82% IHI 10% EES: 92% IHI : 92% UMT SBU ASSET DEVELOPMENT 2023 KPI ACHIEVEMENT 2.75 (91.7%)
Strategic Objectives KPIs 2023 Achievement PD1 PD2 LBD Financial Improve profitability and returns [RM] SBU AD EBIT 15% SBU EBIT: RM 92.5mil PF: 4.99% 1 LMT 15% SBU EBIT: RM 68.1mil PF: 6.74% 2 MT 15% SBU EBIT: RM 191.8mil New Business: RM31mil 2 MT Drive productivity & operational cost efficiency (1)[RM] OEI - Total Supply OPEX/Customer (RM/Customer) 10% OEI OPEX: RM-0.59 3 UMT 10% OEI OPEX: RM-0.33 3 UMT 10% OEI OPEX: RM0.19 3 UMT (1)[RM] OEI - Interest During Construction/(Asset Built Up + AUC) (RM/RM) 10% OEI IDC: 5.07% 3 UMT 10% OEI IDC: 5.63% 3 UMT 10% OEI IDC: 5.38% 3 UMT Customer Deliver exceptional customer satisfaction, experience and trust [%] SAIDI50 Activity UMT: 100% LMT : 75% 10% SAIDI 50: 74% 1 LMT 10% SAIDI 50: 79.6% 2 MT 10% SAIDI 50: 73% 1 LMT Deliver exceptional customer satisfaction, experience and trust [%] HOZA Internal Satisfaction & Engagement Survey (HISES) UMT: 80% LMT : 70% 10% HISES: 78.1% 2 MT 10% HISES: 78.1% 2 MT Internal Process Drive SBUs performance & growth [%] SBU Migration Readiness 15% SBU Migration (DNFA) = 100% SEED 5: Service Agent for New Supply Connection 3 UMT 15% SBU Migration (DNFA) = 100% SEED 5: Service Agent for New Supply Connection 3 UMT 20% SBU Migration (DNFA) = 100% SEED 5: Service Agent for New Supply Connection 3 UMT Shape winning regulatory outcomes [%] Regulatory Relationship Strength Index (RRSI) & [%] CPA 10% RRSI: 90% CPA: 100% 3 UMT 10% RRSI = 90% CPA = 100% 3 UMT 15% DNFA Activities : 100% 3 UMT Learning & Growth Inculcate TNB values and best practices that drive high performance [#] Fatality + [#] LTIF + [Nos] PI 10% LTI: 0.55 UA: 164% UC: 174% 3 UMT 10% LTI: 0.55 UA: 143% UC: 169% 3 UMT 10% LTI = 0.55 UA = 3753/2526 (149%) UC = 8285/5052 (164%) 3 UMT Inculcate TNB values and best practices that drive high performance [%] EES & [%] IHI 10% EES: 92% IHI: 92% 3 UMT 10% EES: 92% IHI: 92% 3 UMT 10% EES: 92% IHI: 92% 3 UMT 2.4 (80.0%) 2.65 (88.3%) 2.65 (88.3%) 2023 KPI ACHIEVEMENT (HOU)
Strategic Objectives KPIs FY2023 Target % Current Achievements NORTH EAST SEL PJCJ SOUTH KUL Financial Improve profitability and returns [RM] SBU AD EBIT LMT: EBIT RM182m UMT: EBIT RM263m + 6.76% (* Use target for zones respectively) 15% SBU EBIT = RM 38.7mil Prof. Fee = 7.12% SBU EBIT = RM 29.4mil Prof. Fee = 7.10% SBU EBIT = RM 41.4mil Prof. Fee = 4.57% SBU EBIT = RM 51mil Prof. Fee = 4.89% SBU EBIT = RM 36.1mil Prof. Fee = 9.14% Drive productivity & operational cost efficiency [RM] OEI - Total Supply OPEX/Customer (RM/Customer) LMT : RM 4.65/cust* , UMT : RM 2.49/cust* (* Use target for zones respectively) 10% OEI OPEX/Cust = RM- 0.46/cust. OEI OPEX/Cust = RM- 0.11/cust. OEI OPEX/Cust = RM- 0.91/cust. OEI OPEX/Cust = RM- 0.29/cust. OEI OPEX/Cust = RM- 0.47/cust. [RM] OEI - Interest During Construction/(Asset Built Up + AUC) (RM/RM) LMT : 5.50%, UMT : 5.38% (* Use target for zones respectively) 10% OEI IDC = 4.99% OEI IDC = 6.66% OEI IDC = 6.34% OEI IDC = 4.80% OEI IDC = 5.68% Customer Deliver exceptional customer satisfaction, experience and trust [%] SAIDI50 Activity LMT: 75% SAIDI50 Initiatives Completed UMT: 100% SAIDI50 Initiative Completed 10% SAIDI 50 = 83.7% SAIDI 50 = 71.9% SAIDI 50 = 65.6% SAIDI 50 = 78.1% SAIDI 50 = 60.3% Deliver exceptional customer satisfaction, experience and trust [%] HOZA Internal Satisfaction & Engagement Survey (HISES) LMT: <70% HISES UMT: >80% HISES 10% HISES = 78.1% * SBU AD. Zones TBC HISES = 78.1% * SBU AD. Zones TBC HISES = 78.1% * SBU AD. Zones TBC HISES = 78.1% * SBU AD. Zones TBC HISES = 78.1% * SBU AD. Zones TBC Internal Process Shape winning regulatory outcomes [%] Regulatory Relationship Strength Index (RRSI) & [%] CPA LMT: RRSI 80%; 90% CPA Score UMT: RRSI 84%; 100% CPA Score 15% RRSI = 90% CPA = 100% RRSI = 90% CPA = 100% RRSI = 90% CPA = 100% RRSI = 90% CPA = 100% RRSI = 90% CPA = 100% Shape winning regulatory outcomes [%] Project Delivery Index LMT: Average PDI >=1.0 + 80% project completed earlier than target UMT: Average PDI <0.9 + 90% project completed earlier than target 10% PDI = 0.88 + 68.2% Proj. Completed Earlier PDI = 0.61 + 81% Proj. Completed Earlier PDI = 0.98 + 70% Proj. Completed Earlier PDI = 0.97 + 93% Proj. Completed Earlier PDI = 0.68 + 98% Proj. Completed Earlier Learning & GrowthInculcate TNB values and best practices that drive high performance [#] Fatality + [#] LTIF + [Nos] PI LMT: LTIF 1.5 + 2 PI for UA UMT: Zero Fatality (Staff & Contractor) + LTIF 1.0 + 2 PI for UA & 4 PI for UC 10% LTIF = 0.55 PI for UA= 143% PI for UC = 183% SQE = 126% LTIF = 0.55 PI for UA= 141% PI for UC = 116% SQE = 110% LTIF = 0.55 PI for UA= 178% PI for UC = 156% SQE = 170% LTIF = 0.55 PI for UA= 153% PI for UC = 184% SQE = 124% LTIF = 0.55 PI for UA= 108% PI for UC = 164% SQE = 117% Inculcate TNB values and best practices that drive high performance [%] Employee Experience Score [%] IHI LMT: EES 80% + 78% IHI UMT: EES 85% + 82% IHI 10% EES = 92% IHI = 92% EES = 92% IHI = 92% EES = 92% IHI = 92% EES = 92% IHI = 92% EES = 92% IHI = 92% 2.35 (78.3%) 2.5 (83.3%) 2.2 (73.3%) 2.35 (78.3%) 2.45 (81.7%)
SBU AD ACHIEVEMENT & SUCCESS STORY 5.12% 6.14% 6.12% 7.01% 6.97% 6.76% 2021 2022 2023 PF, % 5.35% 5.34% 5.32% 4.66% 5.19% 5.38% 2021 2022 2023 OEI IDC, % -0.88 1.80 0.19 4.59 0.22 2.49 -2.00 3.00 2021 2022 2023 OEI OPEX, RM 286 192 228 263 2022 2023 SBU EBIT, RM,mil 100% 100% 100% 100% 100% 100% 2021 2022 2023 CPA, % 79% 68% 48% 73% 100% 100% 100% 2021 2022 2023 SAIDI50, % BANK DRAFT RECOVERY, RM PROBLEMATIC IDC REDUCTION, RM,mil SUPPORTING INITIATIVES • With continuous improvement to strengthen and enhance BD management, better visibility is gained for holistic overview including ageing BD. • Special taskforce to expedite execution of identified action plans to ensure timely BD refund. This is monitored at various platforms. • Blanket BG are established for JKR (100%) and PBT (48%) SUPPORTING INITIATIVES • TECO DAY – Every Thursday • MEGA TECO DAY • MEGA TECO WEEK • MEGA TECO MONTH • Engagements with APP, CMD, BP Finance • Workshops on Cancel/Defer Paper • Deep Dive Sessions in Zone SYSTEM PROJECT DELIVERY • Numbers of system project commissioned increased in 2023. • However, total number of system projects assigned to SBU AD by APP increased by 40% in 2023 compared to 2152 projects in 2022. • With same resources, this achievement is a positive outlook for SBU AD. • The increment could be due to stabilized material delivery in 2023 BANK DRAFT RECOVERY SYSTEM PROJECT DELIVERY REDUCTION OF IDC 829 157 1372 105 SLA Non-SLA SLA Non-SLA 2022 2023 Commissioned Proj., #
2023 CHALLENGES 1 Only 46 out of 64 nos. 30MVA Transformers delivered – due to MTM cashflow and shortage of Hyrax Oil supply 2 Shortage of switchgear from all suppliers since May 2023 due to unresolved Price Revision 3 Insufficient appointed KKB in many subzones – KKB are more interested in maintenance work compared to project implementations 4 Late in awarding of bulk contracts and requirement not met in terms of number of contractors 5 Appointed OEM/Vendors still unable to fulfill OKST requirement at site 6 Challenges in obtaining permit through Utility Corridor especially in Selangor under KUSEL Material shortage for some still not fully resolved 8 Every success comes with its challenges that impacted on SBU AD’s operational continuity and efficiency. Appointed KKB/Bulk Contractors reject PO issued due to many projects in hand – insufficient players 7 • Interim tenders for 3 PPU & 10 SSU in Oct 2023. to be awarded in Jan 24 • Timely payment to MTM • ES approved 2 other suppliers for TX oil • Arahan Dalam HAD on Orang Bawah Kawalan issued in Nov 23 • Open Tender • Issue PO to contractors from other zones • Close monitoring with KUSEL • Liaise directly with PBT • Project prioritization ISSUES MITIGATIONS MCMS still in testing phase – cannot be utilized from ICPP 9 • Manually managed and monitored HIGH LOW HIGH Frequency Impact 1 2 3 4 5 6 8 7 9
SBU ASSET DEVELOPMENT RISK MANAGEMENT SBU AD implements medium and low voltage capital projects as per SLA with operational excellence, cost efficiency and compliance to standards, policies and procedure. In order to manage and mitigate all identified risks, Risk Management Working Committee were established. • Register as DN Risk RISK NUMBER RISK NAME RISK RATING RSK-0001220 Untimely Supply Project Delivery Low Insignificant Minor Moderate Major Catastrophic 0 day delay from MSL condition 1-45 days delay from MSL condition 46-75 days delay from MSL condition 76-100 days delay from MSL condition >100 days delay from MSL condition • SBU AD also monitor other risks deemed necessary in implementing all projects and operations RISK NUMBER RISK NAME ADR-0001 SAIDI50 Project Delay ADR-0002 High Impact Project Delay ADR-0003 Critical Project Delay ADR-0004 3rd Party Digging / Breakdown & Asset Damage during Construction or within Warranty Period ADR-0005 Insufficient Contractors (Contractor reject PO / Awarded with many work) ADR-0006 Contract not ready on time (Bulk/individual) ADR-0007 Material issues (shortage / price increment) ADR-0008 Staff & Vendor Low Performance & Competency ADR-0009 Inaccurate / Improper planning (Late site/building handover, Unattainable timeline, Land Title not transferred) ADR-0010 Local authority approval for construction (building, cable laying) ADR-0011 Theft & Vandalism during construction ADR-0012 Method of statement not followed (eg: improper material storage at site) ADR-0013 Non-compliance to Safety Rules & Guidelines (PPE, TMP etc) ADR-0014 Project Handing Over to Asset Owner cannot be done ADR-0015 Project completed but cannot be commissioned ADR-0016 Improper material storage ADR-0017 Working in water (river, lake, sea) ADR-0018 Work execution without PO/AMK ADR-0019 Inaccurate/Improper payment method - overpayment / underpayment ADR-0020 Bank Draft Outstanding & Recovery Impact Likelihood Almost Certain Medium Significant High High High Likely Medium Medium Significant High High Moderate Low Medium Significant Significant High Unlikely Low Low Medium Significant Signifi cant Rare Low Low Low Medium Signifi cant IN MN MD MJ CT Matrix justification As of 31 December 2023 1) Risk Likelihood (Unlikely) : Possibility of risk occurring at least once in the next 4 to 5 years 2) Risk Impact (Insignificant) : 0.00% (0 out 1074 project were identified as delay as of December 2023) Gross Rating Residual & Current Rating Legend
BETTER BRIGHTER COLLABORATIVE • Mesyuarat Pemantauan Projek APP S1 – SBU AD SOUTH • Perbincangan Status Wayleave Projek System Improvement SLA FY2023 bersama APP SSD, APP PTS dan AD • Sesi Embracing Change Session AMI for Asset Development • Taklimat Inisiatif Pickup Point North oleh P&SC • Mesyuarat Perundingan JCC DN & PET • Sesi Townhall JKR Kedah MINDFULNESS • Sesi Serahan Kenderaan Pacuan 4 Roda Kuala Lumpur • Hari Anugerah Cemerlang SBU AD PROFESSIONALISM • Townhall Perhimpunan Perdana Mid Year Kedah Perlis 2023 • Sesi Lawatan Tapak Bersama ES (Overhead) dan HSE di Felcra Semungkis • Sesi Penerangan Orang Bawah Kawalan (OBK) • Webinar Series • Technical, Certification & Skill Enhancement Program within SBU AD INTEGRITY • Taklimat Integriti FORWARD THINKING • Pre-Go Live Mobility For Construction of Service Supply 2.0 (North) • Bengkel Task Force Final Dash 2023 bersama talent SBU AD Serbis Kelantan • Final Dash SBU AD CUSTOMER CENTRIC • Perbincangan berkaitan status Projek Bekalan untuk pembangunan projek bekalan • Sesi Libaturus bersama REHDA • Sesi Libaturus berkaitan bekalan ke Data Centres LEADERSHIP • MBWA Selangor (Subang Jaya) • MBWA Kuala Lumpur • MBWA Kedah Perlis • MBWA East • MBWA South • MBWA Kota Bharu • MBWA Banting • MBWA Kedah • HOD Turun Padang
ENVIRONMENT, SOCIAL & GOVERNANCE Program Infaq Ramadhan 2023 with Rumah Anak Yatim dan Asnaf As-Solihin. Majlis Berbuka Puasa with Pertubuhan Kebajikan Ehsan Ash- Shakur (PEKEAS) Hiking at KL East Park SBU AD was awarded with Anugerah Kelestarian Distribution Network 2023 for outstanding achievement in promoting ESG programs throughout the year.
ENVIRONMENT, SOCIAL & GOVERNANCE Hiking at Gunung Lang, Ipoh Penanaman Pokok Bakau di City Mangrove Park, Manjung, Perak ESG Sector 2 bersama suku kaum Semai, Kampung Tisong, Sungkai, Perak
ENVIRONMENT, SOCIAL & GOVERNANCE Pembersihan pantai di sekitar Tanjung Dawai ESG pembersihan Pantai, Chenang, LGK Eco Rimba Kledang Siong Cross-Country Trek
2024 OUTLOOK 6 CULTURE CULTIVATION PROJECT IMPLEMENTATION PERFORMANCE 1 2 3 IMPROVEMENT SBU MIGRATION GOVERNANCE & COMPLIANCE COMPLIANCE 4 5 OPERATIONS STRATEGIC • Total CAPEX allocated to SBU AD for 2024 : RM2.84billion • Total project : 6509 • 4593 System Projects to be implemented • 2307 SAIDI50 Projects proposed by APP • 10 HIP projects to be reported to Suruhanjaya Tenaga • Bank Draft Recovery • Management By Walking About • ESG Activities • Knowledge Sharing Sessions • Total Wellness Programs • Team Building Activities • PSI revisions • SLA revisions • LOA revisions • HIRADC Revision • MCMS Implementations • RP4 Bulk Tender Preparation • SJHT Briefing • Dashboard Revamping • 3MS, MCMS Trainings • Staff Appreciation Program • Aims to roll-out structure by Q2 • Develop Business Model Canvas • Develop Financial Modelling • Migration Risk Assessment • Looking into potential growth opportunity in DN • Excellent P&L & EBIT • Improve Professional Fee • Better Project Delivery Index • Higher Project Completion rate • Lower IDC • Project Management Audit • Asset Capitalization Audit • OT (Desktop Audit) • Tools & Equipment Audit • SQA, CSWA & SQE Audit • MSL3b Audit • Bank Draft Audit • CWIP Audit • KKB Audit • Contract Management Audit
FY2024 Key Performance Indicators (KPI) and Target Justification Shared KPI from CDNO Name Lokman bin Yusoff Position Head SBU AD Aspiration To be an efficient, green and secure network to provide better services and more choices to customer through sustainable solutions in achieving Reimagining TNB (RT) 2025 and Net Zero 2050 Strategic Objectives KPIs FY2024 Target (%) KPI Target Justifications Financial Drive TNB business growth and profitability [RM] SBU AD EBIT LMT: EBIT RMX bn UMT: EBIT RMX bn + Professional Fees 15% Enhanced KPI to drive aspired DN EBIT target aligned with RT2.0 LMT setting is based on EBIT as identified in Reimagining TNB (RT) Focus for third year of RP3 UMT setting is based on up-side from RT Focus EBIT mainly from productivity levers + %PF Drive productivity & operational cost efficiency (1) [RM] OEI – SBU AD OPEX/Customer (RM/Customer) (2)[RM] OEI – Total Interest During Construction/(Asset Built Up + AUC) (%) (1) LMT : >X , UMT : X (2) LMT : RMX, UMT : RMX 15% LMT setting is based on EBIT as identified in Reimagining TNB (RT Focus) UMT setting is based on up-side from RT Focus EBIT Customer Deliver exceptional customer satisfaction, experience and trust through continuous and reliable electricity supply [Minutes] SAIDI LMT: 50 minutes UMT: 48 minutes 10% Enhanced KPI with target aligned to Guaranteed Service Level (GSL) and RP3 Performance Indicator LMT setting is based on 2 minutes allowance from UMT to cater risk from uncertainty impact UMT setting is based on SAIDI target as per IBR RP3 PI deadband (upper limit) as approved by ST FY2019: 48min, FY2020: 45min, FY2021: 45min, FY2022: 45.06min [%] HOZA Internal Satisfaction & Engagement Survey (HISES) LMT: 70% HISES UMT: 80% HISES 10% LMT setting is based on 70% of HISES assessment UMT setting is based on 80% of HISES assessment HISES is to measure the level of service effectiveness rendered by service provider at zone level Internal Process Strengthen DN position through continuous engagements with regulators and key stakeholders & Uphold high Distribution Network performance and reliability aligned with IBR PI [%] Regulatory Relationship Strength Index (RRSI) & [%] IBR Performance Indicator (PI) achieved LMT: RRSI 80% & 90% DN IBR PI score from 3 PIs UMT: RRSI 87% & 100% DN IBR PI score from 3 PIs 15% Maintain KPI towards high trust level of key regulators & drive high regulated business performance LMT setting is based on maintaining good stakeholder trust with RRSI score of 80% and 90% IBR PI score from 3 PIs UMT setting is to achieve high stakeholder trust with RRSI score of 87% and 100% IBR PI score from 3 PIs RRSI: FY2021: 86%, FY2022: 82%; DN IBR PI: FY2022 : 100% Drive subsidiarisation of DN Strategic Business Units [%] SBU Migration Readiness LMT: 70% completion (Actual vs Plan FY24) UMT: 100% completion (Actual vs Plan FY24) + develop 1 new product (approve by DOIT) 15% LMT setting is based on 70% completion of SBU migration plan (actual vs plan) UMT setting is based on 100% completion of SBU migration plan (actual vs plan) OD to define deliverables and project timeline for all SBUs in FY2024 Learning & Growth Drive high performance culture through enhanced employee experience and well-being [#] Fatality & [#] LTIF LMT : LTIF 1.5 + 2 PI for Unsafe Act UMT: Zero Fatality (Staff & Contractor) + LTIF 1.0 + 2 PI for Unsafe Act & 4 PI for Unsafe Condition 10% Maintain KPI to drive high safety culture and ensure zero fatality LMT setting is based on risk triggering point reported to BRC UMT setting is based on towards achieving zero fatality and stretched LTIF target aligned with TNB Sustainability of 1.0 FY2022: 1 Fatality (contractor) & LTIF 0.77 | FY2023: # [%] Employee Experience Score (EEX) & [%] Integrity Health Index (IHI) LMT: EEX 80% + 78% IHI UMT: EEX 85% + 82% IHI 10% New KPI to drive high employee engagement at all level and maintain IHI KPI to drive integrity culture LMT setting will be based on Employee Experience score and IHI score of 78% UMT setting will be based on Employee Experience score and IHI score of 82% FY2021: EES 87%, FY2022 IHI 80.92% 2 6 8 7 4 1 3 5
Department : SBU ASSET DEVELOPMENT HOD KPIs FY2024 Weightage (%) KPI Cascading Executive Non- Executive HOU / HEAD / LEAD ( M ) Level 4 (E16/E17) Level 5 (E14/15) Level 5 (E12/E13) Level 6 TT13-14 PP11-12 Level 7 TT07-12 PP07-10 PS05-08 Financial [RM] SBU AD EBIT 15% 15% [RM]SBU EBIT [%] Professional Fees 15% [RM]SBU EBIT [%] Professional Fees 10% [%] Professional Fees 10% [%] Professional Fees [%] CAPEX Utilization 10% [%] LKS Submitted on time 10% [%] LKS Submitted on time (1) [RM] OEI - Total Supply OPEX/Customer (RM/Customer) (2)[RM] OEI – Total Interest During Construction/(Asset Built Up + AUC) (%) 15% 20% (1)[RM] OEI - Total Supply OPEX/Customer (RM/Customer) (2)[RM] OEI – Total Interest During Construction/(Asset Built Up + AUC) (%) 20% (1) [RM] OEI - Total Supply OPEX/Customer (RM/Customer) (2)[RM] OEI – Total Interest During Construction/(Asset Built Up + AUC) (%) 20% (1)[%] Right Charging [%] 35% reduction of Timesheet Management and more than 104 hour (2)[%] OEI + 35% reduction of IDC (Top 20 Aging Project List) 20% (1)[%] Right Charging [%] 35% reduction of Timesheet Management and more than 104 hour (2)[%] OEI + 35% reduction of IDC (Top 20 Aging Project List) 20% (1)[%] Right Charging (2)[%] Verification of JMS & Credit Scrap within 14 days 20% (1)[%] Right Charging (2)[%] Verification of JMS & Credit Scrap within 14 days Customer [Minutes] SAIDI 10% 10% [%] SAIDI50 Activity 15% [%] SAIDI50 Activity 15% [%] SAIDI50 Activity 15% [%] SAIDI50 Activity 15% [%] SAIDI50 Activity 15% [%] SAIDI50 Activity [%] HOZA Internal Satisfaction & Engagement Survey (HISES) 10% 10% [%] HOZA Internal Satisfaction & Engagement Survey (HISES) 10% [%] HOZA Internal Satisfaction & Engagement Survey (HISES) 10% [Nos] Engagement Sessions with units under HOZA 10% [Nos] Engagement Sessions with units under HOZA 10% [%] Data Compliance & Integrity 10% [%] Data Compliance & Integrity Internal Process [%] Regulatory Relationship Strength Index (RRSI) & [%] IBR Performance Indicator (PI) achieved 15% 10% [%] Regulatory Relationship Strength Index (RRSI) & [%] CPA 10% [Nos] Engagement sessions/activities with stakeholders/year [%] CPA [#] Project Delivery Index 15% [%] of any complaints attended within stipulated time [%] Compliance (MSL3b, GSL) [#] Project Delivery Index 15% [%] of any complaints attended within stipulated time [%] Compliance (MSL3b, GSL) [#] Project Delivery Index 25% [Nos] Complaints received [%] Compliance (MSL3b, GSL) [#] Project Delivery Index 25% [Nos] Complaints received [%] Compliance (MSL3b, GSL) [#] Project Delivery Index [%] SBU Migration Readiness 15% 15% [%] SBU Migration Readiness 10% [%] SBU Migration Readiness 10% [%] DNFA Activities Completion 10% [%] DNFA Activities Completion 10%10%10% 10% 10% 10% FY2024 Key Performance Indicators (KPI) Tree
Thank You
SBU ASSET DEVELOPMENT DISTRIBUTION NETWORK WRAP UP SESSIONS 2023 ESTABLISHING THE FOUNDATION FOR CONSTRUCTION SOLUTIONS In SBU Asset Development our focus is to…. To be an efficient, green and secure network to provide better services and more choices to customer through sustainable solutions in achieving Reimagining TNB (RT) 2025 and Net Zero 2050
20 Capex Breakdown Cost – Overall In 2022, Total Capex Spent = RM 1,638 Mil (2649 proj) but SBU AD manage to increase the utilization of CAPEX: RM 1,279 Mil (3167 proj) in 2023. Therefore, Cost Per Project: 2022: RM 423,933.56 2023: RM 404,104.83
21 Capex Breakdown Cost – System Project CAPEX SPENDING Material charging picked up in end of Q4 as the material began to stabilized. Material started to stabilized Q3 ahead, but due to limited resources of contractors within a short term, not all projects can be completed in 2023. High amount of contract services (340.7M) spent in Q4 were contributed to diligent payment to the contractors for progress works.
Delay definition • To make something happen later than expected, or • To be performed later than planned. Construction delay • Time lag in completion of activities from its specified time as per the contract or • Late start of activities to the baseline, directly affecting specified cost.
Causes of Delays in Project HIGHLIGHTS 3% 1% 2% 5% 1% 0% 3% 3% 8% 39% 0% 22% 2% 10% APP Completed by SBU M Contract Unavailability CPP Customer Readiness Defect before Commissioning Internal Issues KKB/KPB Unavailability Material No Blockers - WIP OKST Availability Permit Issue Site Constraint Wayleave • 39% projects are still in progress with no blockers • Highest Cause of delays are due to delays/challenges in obtaining permit from Local Authority (22%) • Blockers on Customer readiness, CPP Revision & Contract or KKB unavailability are not within control of SBU AD • Material issues occurs in 8% of total projects. Major items are 33kV Switchgears & Transformer, Battey Charger, RMUs & other Accessories
**Delay – Not comm. in 2023 24 Category Status No. of Project Budget (2023) (RM’Mil) Actual (2023) (RM’Mil) IDC (Total) (RM’Mil) IDC (2023) (RM’Mil) SLA (3005) Comm 1,374 568.61 739.04 151.39 48.26 Delay/Not Comm 1,631 898.08 482.78 130.37 36.07 Non-SLA (169) Comm 105 31.10 48.52 4.15 2.76 Delay/Not Comm 64 5.44 9.45 5.67 0.02 Total 3167 1,503.23 1,279.80 291.58 87.61 144 79 104 85 101 115 122 112 127 139 127 224 0 50 100 150 200 250 1 2 3 4 5 6 7 8 9 10 11 12 Monthly Project Commissioning Zone Total PDI <1 Total Project Comm % ahead of time EAST 153 189 80.95% NORTH 281 414 67.87% SELPJC 193 275 70.18% SOUTH 341 365 93.42% WPR 128 131 97.71% Total 1096 1374 79.77% 0.61 0.88 0.98 0.97 0.68 EAST NORTH SELPJC SOUTH WPR PDI by Zone FINANCE ANALYSIS on System Project Performance Total IDC spend for Delay/Not Comm project is RM136mil. However, IDC spend for only in year 2023 id RM36mil. Average project commissioning is 115 project per month.
ANALYSIS on 33kV Project FINANCE Unutilized Capex Delay in deliver 18 out of 64 power transformer. RM59.8mil Unproductive IDC Delay in deliver 2nd of power transformer may not allow PM to close the project. RM142.8k Per Month Price Increase OEM ask for price revision that involve 15 PPU’s & 34 SSU’s. 20% – 30%
Unproductive Interest During Construction What we loss Unproductive Interest During RM36MConstruction a situation where the interest incurred during construction is not contributing to the productivity or revenue-generating activities of the project. In a standard construction context, IDC is considered a cost of financing and is factored into the overall project budget. Total Project Cost Estimate IDC value Average per Month (RM) </= RM500k 750 >RM500k - RM1mil 1,245 >RM1mil - RM5mil 4,284 >RM5mil 21,718
Estimate Losses on Income by Sector RM 56,460 Average per Month Commercial RM 70,410 Average per Month Domestic RM 71,850 Average per Month Industry RM 57,870 Average per Month Agriculture
The cost of delays: Extra expenses and financial losses Construction delays can result in a domino effect, leading to additional expenses and financial losses. Extended project durations incur increased labor costs, disruption of planned operations, and rental expenses for extended equipment use. Additionally, delays may require overtime work, increased supervision, and rescheduling of subsequent projects, all of which contribute to cost escalations. Strategies for reducing the impact of construction delays To minimize the adverse effects of construction delays, proactive measures are vital. Implementing construction best practices, such as :- Early Detection and Communication: 1. Early Detection and Communication - Establish a system for early detection of potential delays. Encourage open communication among project supervisors to promptly identify and report any issues that may impact the project schedule. 2. Contingency Planning - Develop comprehensive contingency plans for potential risks and delays identified during project planning. 3. Regular Project Reviews - Conduct regular project reviews with all stakeholders to assess progress, identify potential delays, and collaboratively develop solutions.
THANK YOU
Presented by : Sazali Bin Harun PMO Lead Zone : South
SUCCESS STORY (SOUTH) : PROJECT DELIVERY 816 1026 2022 2023 Project Delivery : South (Project Completion FY 2022 vs FY 2023) • NTP process implementation from APP to PMO South has effectively controlled the priority of project (e.g SAIDI50, Data Centre, SCADA, Conversion) and also equally distributed workload between Project Implementors. • Besides DBHQ Monitoring, PMO South has developed DBSOUTH Monitoring system to support Project Management Monitoring. • PMO South has conducted SLA Monthly Review Meeting (AD-APP) to achieve Project Target Completion and to tackle issues regarding BULK/Material issues. • Introduced KPI Scorecard to create competitive culture between Subzones. • Material Management: WhatsApp Group with WH to speed up the acquisition of materials. • Vendor management: Developed PO Ageing Monitoring System has reduced complaint from vendors regarding late payment • Project Closing Management: Monitoring project until Project Closing (HOC) has driven an impactful solution in managing TECO, IDC, ABU initiated by PMO South & Group Champions. • Stakeholder Management: Close monitoring regarding complaint to avoid stop work from KUJ/JKR/PBT. INITIATIVES DONE DIFFERENTLY
SUCCESS STORY (SOUTH) : PROJECT DELIVERY • TNB AD HQ should support us to expedite additional enabler such as MCMS . This will help us to manage project effectively and to reduce repetitive works and tedious manually data key besides to review new SLA contract between AD & APP which has expired in October 2023. • Project procurement management: More effective monitoring in contract & material management to provide sufficient bulk requirement. • Project resource management: to fulfill adequate resources for project implementation & equally distribute workload between project implementors and initiate refinement structure if needed. PLAN TO SUSTAIN PERFORMANCE • Insufficient BULK tender 33kV allocation to cope with numbers of project plan by APP base on PL 2024 if BULK tender 33kV doesn’t award in Q1 • Project delay due to vendor performances – civil works • Time constraint to complete project due to limited resources and material availability such as switchgear, Transformer, Power Transformer and Switchgear 33kV. • Late commissioning due to land issue POTENTIAL RISKS
SUCCESS STORY (SOUTH) : PROJECT DELIVERY 11 & 33kV STATISTIC OVERALL/COMMS 2023
SUCCESS STORY (SOUTH) : PROJECT DELIVERY
SUCCESS STORY (SOUTH) : PROJECT DELIVERY
SUCCESS STORY (SOUTH) : PROJECT DELIVERY
SUCCESS STORY (SOUTH) : PROJECT DELIVERY
FY2023 Wrap Up KPI OEI IDC Total IDC/(ABU+AUC)
Subzone LMT UMT % OEI Voltage SM/TI 5.87% 4.78% 5.54% 11kV AST/KGR 4.44% 4.41% 3.48% 11kV TPG/KK 3.65% 3.06% 3.51% 11kV IPH/KAM 6.67% 5.05% 5.17% 11kV SP/KLM 5.01% 4.53% 4.91% 11kV SBJY 5.26% 5.10% 4.60% 11kV PP 7.28% 6.50% 7.02% 11kV PEN 6.38% 6.35% 4.74% 33kV KED 5.65% 5.31% 5.36% 33kV PER 33kV PRK 6.00% 5.13% 5.58% 33kV Subzone LMT UMT % OEI Voltage KTN 4.82% 3.86% 4.29% 11kV TER 5.42% 5.39% 4.73% 11kV KEL 6.15% 5.31% 4.16% 11kV TMLH 8.00% 7.03% 5.29% 11kV BEN 7.79% 7.03% 6.46% 11kV PAH 10.31% 9.23% 11.18% 33kV KEL 10.57% 10.54% 7.76% 33kV TER 6.80% 6.29% 6.14% 33kV Subzone LMT UMT % OEI Voltage KLU/KLI 3.27% 3.19% 3.23% 11kV JB 3.63% 2.60% 3.44% 11kV MR/BP 2.90% 2.38% 2.21% 11kV PG/JJ 3.72% 3.09% 3.34% 11kV KLG/PKLG 3.92% 3.68% 3.66% 11kV MEL 4.63% 4.60% 3.83% 11kV NSE 3.91% 3.88% 3.03% 11kV JOH & IM10 5.04% 4.87% 6.82% 33kV IM10 33kV NSE 6.75% 6.72% 6.70% 33kV MEL 8.00% 6.08% 7.67% 33kV 5.07%5.57% 5.51% 5.44% 5.62% 5.62% 5.59% 5.52% 5.46% 5.48% 5.35% 5.34% 5.24% 5.31% 5.36% 5.44% 5.49% 5.56% 5.55% 5.62% 5.63% 5.53% 5.59% 5.32% JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC SBU AD - OEI IDC TRENDING (2022 VS 2023) 2022 2023 UMT 5.38% Subzone LMT UMT % OEI Voltage KL Utara 3.80% 3.76% 3.61% 11kV KL Pusat 3.99% 3.14% 3.69% 11kV KL 7.10% 7.08% 7.59% 33kV Subzone LMT UMT % OEI Voltage PJ/SA 3.80% 3.12% 3.68% 11kV RWG/KSL 5.77% 5.55% 5.71% 11kV BBB/CRS 3.83% 3.80% 3.43% 11kV BAN/PJCJ 4.44% 4.41% 4.01% 11kV SJY/PCH 6.05% 5.49% 5.58% 11kV SEL 6.50% 6.39% 6.71% 33kV PTR 3.49% 3.47% 3.55% 33kV KL East North South SelPjCj SBU AD & Sector Zone OEI IDC FY2023 : Result & Trending YoY 5.38% 5.18% 5.75% 5.32% 5.07% 5.63% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% SBU AD SECTOR 1 SECTOR 2 UMT % OEI 6.93% 5.22% 4.81% 5.39% 5.72% 6.66% 4.99% 4.80% 5.34% 5.68% -1.00% 1.00% 3.00% 5.00% 7.00% 9.00% EAST NORTH SOUTH SELPJCJ KL UMT % OEI
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Present by : Azreen Hazree Bin Baharom Team Champion : CAPEX, OEI,IDC Zone : South
Zone IDC ABU (NP) IDC AUC (NP) ABU (NP) AUC (NP) OEI LMT Zone UMT Zone SELPJCJ 61,496,204.07 33,712,048.45 1,065,906,456.87 718,547,509.36 5.34% 6.00% 5.39% SOUTH 41,900,724.21 40,675,845.81 823,525,845.08 896,932,790.89 4.80% 4.64% 4.50% NORTH 31,834,059.16 35,658,290.08 640,192,514.00 712,725,793.77 4.99% 5.50% 5.41% EAST 29,543,580.98 31,182,229.54 431,549,530.08 426,633,582.99 7.08% 8.74% 7.05% KL 16,922,683.35 9,378,070.17 262,670,362.84 200,598,207.54 5.68% 6.90% 5.72% SUCCESS STORY
4.53%4.55% 4.47% 4.63% 4.75% 4.60% 4.56%4.53% 4.47%4.48% 4.42% 4.38% 3.90% 4.00% 4.10% 4.20% 4.30% 4.40% 4.50% 4.60% 4.70% 4.80% P01 P02 P03 P04 P05 P06 P07 P08 P09 P10 P11 P12 OEI 2021 OEI 2021 4.64% 4.88%4.89% 4.74% 5.01%5.01%4.98% 4.87%4.82% 4.73%4.75% 4.50% 3.90% 4.10% 4.30% 4.50% 4.70% 4.90% 5.10% P01 P02 P03 P04 P05 P06 P07 P08 P09 P10 P11 P12 OEI 2022 OEI 2022 3.98% 4.22% 4.29%4.34%4.38% 4.49%4.54% 4.70%4.74% 4.81% 4.91% 4.80% 3.90% 4.10% 4.30% 4.50% 4.70% 4.90% 5.10% P01 P02 P03 P04 P05 P06 P07 P08 P09 P10 P11 P12 OEI 2023 OEI 2023 0.11% 0.33% 0.42% 0.12% 0.26% 0.41% 0.42% 0.34% 0.36% 0.25% 0.33% 0.13% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 0.45% P01 P02 P03 P04 P05 P06 P07 P08 P09 P10 P11 P12 GAP 2021 - 2022 Gap 21 - 22 -0.66%-0.66%-0.60% -0.40% -0.63% -0.52% -0.44% -0.17% -0.09% 0.08% 0.16% 0.30% -0.80% -0.60% -0.40% -0.20% 0.00% 0.20% 0.40% P01 P02 P03 P04 P05 P06 P07 P08 P09 P10 P11 P12 GAP 2022 - 2023 Gap 22 - 23 SUCCESS STORY
SUCCESS STORY DBSOUTH MONITORING Year AUC IDC OEI 2021 613,790,000.00 37,070,000.00 4.38% 2022 685,980,000.00 29,540,000.00 4.50% 2023 908,567,589.05 42,256,151.24 4.80%
SUCCESS STORY OEI AD South: 4.80% • DBSOUTH Monitoring System • Through this dashboard, AD South will ensure SAIDI 50 projects comm > 75%, CAPEX & ABU > 100% & managing OEI wisely. • This dashboard also Introducing KPI Scorecard to create competitive culture between Subzones. • Group Champion SAIDI 50 • To conduct Monthly Review Meeting to discuss, manage & solve issues collectively especially related to Material Management, Vendor Management & Permit • Project Closing Management: • Monitoring project until project closing (HOC) to give more Impact on TECO, IDC, ABU thru PMO South & Group Champions. INITIATIVES DONE DIFFERENTLY • Pending LKS: To expedite pending LKS/PO aging for 2023 commissioned projects before 28 Feb 2024 & TECO within 1Q 2024 (estimate Rm250M AUC) • Capex Management: To limit/capping AUC < Rm550M/month & sustain IDC (AUC) < Rm3M/month by capping CAPEX Rm50M for 1st 6 months • Permit Management: To engage with PTS Non-SLA project wayleaves, so that permit process can start 3Q 2024 & physical work can star 4Q 2024 or 1Q 2025 • 33 kV Project Management: To empower project management skill among 33 kV PI to reduce unnecessity IDC PLAN TO SUSTAIN PERFORMANCE • Insufficient BULK tender to cope with numbers of project plan by APP base on PL 2024 if BULK tender doesn’t award in Q1 • Project delay due to vendor performances • Time constraint to complete project due to limited resources and material availability such as Switchgear, RMU, Transformer, Power Transformer & etc. POTENTIAL RISKS
SUCCESS STORY SCORECARD
SUCCESS STORY TEAM CHAMPION CAPEX/OEI/IDC (SOUTH): AZREEN HAZREE, MD. AZWAN, AMRI AZHAR, MARSYA & SITI ZUBAIDAH
Presented by : Lesson Learnt OEI IDC (Champion) Zone : East