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ONE COMPANY’S EXPERIENCE: 
DUKE POWER 
SUBJECT:- BUSINESS PROCESS REENGINEERING (BPR) 
FACULTY :- PROF. K.K. JAIN 
Presented by: 
2013004: Akshay Jain 
2013015: Cliffton Kinny 
2013043: Pooja Somani 
2013074: Vijay Jangir
AGENDA 
• Introduction of Duke Power Company 
• 5 Major Processes in Customer Service Operation 
• Why Reengineering ? 
• What was the process before reengineering? 
• How reengineering Changed the process ? 
• Change Management 
• Learning !
Introduction of Duke Power Company 
• Duke Power as most admired gas and electric company. 
• Long recognized as an Industry Leader. 
• Had received Awards for Efficiency , Customer Service, and 
Environmental stewardship. 
• In 1997 merger of Duke Power and Midstream Natural Gas. 
• Richard B. Priory- Chairman, President and CEO of Duke Energy. 
• Jimmy R. Hicks – Senior Vice President of Retail Services. 
• E.O. Ferrell – Senior Vice President of Electric Distribution.
Introduction of Duke Power Company (Contd.) 
• Serving 2 million Customers spread over 20,000 square miles in 
North and South Carolina. 
• Serving in different Thirteen Geographical Areas. 
• Duke Power Company undertake reengineering in 1995
5 Major Processes in Customer Service Operation 
• Figure our Customer want, 
Creating product, pricing, 
setting Market Share Target. 
• Interaction & Selling the Product 
to keep Customer Happy 
answering service Question. 
• Product Built with Right Quality 
and Delivery on time. 
Developing Market 
Strategies 
Acquiring and 
Maintaining the 
Customers 
Delivering Products 
and Services
5 Major Processes in Customer Service Operation 
• After an Order is Completed, 
You must bill the customer and 
paid also. 
• Make sure Customers have 
power 24 hr. a day, 7 days a 
week, 365 days a year. Process 
that ensures smooth, 
Continuous Service. 
Calculating 
and 
Collecting 
Managing 
the Delivery 
System
Why Reengineering ? 
• Rick Priory (CEO) recognized that the Utility needed to cut costs and 
further Improve its Customer Services irrespective of Quality of 
service was already pretty high. 
• Reengineering Required to make it remain Competitive when 
Deregulation Arrived. 
• Goal – Service to customer in the upper Quartile among electric 
utilities in market. 
• Realized need to Replace “Old Customer Information System” dated 
back to 1971.
What was the process before reengineering? 
• No consistent way of looking at thirteen geographical areas services. Thirteen 
different ways with a little twist that fitted the politics of a particular area. 
• Any time you wanted to change something to had to change it thirteen times 
and everyone had at least as many reasons why that’s change would not work 
in such area. 
• For instance, under the old System - Customer would call in and request a 
service visit that would print out at an operating. 
• An administrative representation took the request from the printer and placed 
it in a box based on the day the job was to be performed. Then the request 
was transferred into a front line worker’s box on the day it was supposed to 
do. 
• No one made any attempt to deter mine whether a particular job would take 
one hour or two hours and that is the reason inefficiency was high. 
• Misinformation was uncontrolled.
What was the process before reengineering? 
• There was no measuring tools used to measure the satisfaction level as well as 
quality of services. 
• For instance, Customer wants to power turned off at 1234 chambers street on 
Monday and wants it turned on at 456 Westfield Road, the same day. Orders 
was completed with in the promised time around 74% of the time but in actual 
this should be 96 %. 
• Due to lack of Scheduling , absenteeism was high at frontline workers and 
services was getting delayed. 
• Growth was not along with Inflation. 
• There resistance from frontline performers of new system work. 
• The linemen were used to receiving work on a daily basis form their 
supervisors.
How reengineering changed the process ? 
• Fist of all they realized firm needed to replace customer information 
system, which dated back to 1971. 
• They hired consultants for ideas in selecting an appropriate new 
system. 
• The made a game plan to sell this thing called reengineering to it 
frontline performers, because they are going to execute the plan in 
reality. 
• Process manager made communication of new Customer Service 
process benefits and made understanding of process plan.
How reengineering changed the process ? 
• How a process organization works? 
There are players who 
 Execute maintenance work, 
 Execute new customer work, 
 Who deal with problems as they arise, 
 The manager to teach them processes. 
• Defining and analyzing primary customer service operation processes 
 Developing market strategies 
 Acquiring and maintaining the customer 
 Delivering products and services 
 Calculating and collecting 
 Managing the delivery system 
 Supporting the business.
How reengineering changed the process ? 
• Reengineering means fundamentally changing the way you provide 
service-and value-to the customer. 
• Try to take the advantage of information technology to minimize the 
number of hands-off, eliminate steps, and widen you current span of 
control. 
• Putting data in the hands of frontline performers, who can serve customer 
with minimal guidance and on the spot respond and saves money. 
• As a process owner responsible for delivering products an services to 
analyzes & develop the activities from the moment a customer calls for 
new service until the power usage is determined.
How reengineering changed the process ? 
• Top-Down approach taken to implemented, reason the fragmentation 
was embedded in the organization’s culture, which was needed to 
change. 
• Separation of Strategic work form Tactical works – People in the 
field that their job was to execute the processes as well as they 
could, while responsibility for redesigning the process and managing 
the resources it required was allocated to process owner. (Which was 
not before) 
• Output of the process was interacted with input of the another 
process and impact on customer. That is each processes measured in 
a way that kept the customer at the center. 
• For Instance, a Billing process was measured in terms of accuracy.
How reengineering changed the process ? 
• Made connection between Actions to be taken to complete the 
process, plus overall cost and Satisfaction of customer. This 
measures the performance of frontline workers. 
• “Score Card” concept, Which sets specific goals for each process. 
One of them was that minimum of 96% of orders had to be 
completed by the day they promised. 
• Made measurement system in which everyone can radically see the 
goal and act on this knowledge. 
• Focus on making sure information is accessible and communicated 
to responsible person for the actual delivery of service to frontiline 
worker.
How reengineering changed the process ? 
• Developed pay incentives- that is, achieve a certain level above the 
standard and there will reward for it 
• Setting Standard Time for each processes – Ranging from the heavy 
construction involved in setting up poles, pulling wire, hanging 
transformers, and the like to routine work, such as dealing with a 
customer’s broken backyard light or a meter base that was pulled 
away from the house. 
• Every morning administrative team organize the work into packages 
that the workers would pick up when they came in. 
• Implemented Color –coding to designate levels of priority: 
Yellow – for work committed to the customer today. 
Blue – for work due within three days 
Green – for work that can be done any time.
How reengineering changed the process ? 
• With metrics to guide us, we were able to organize and synthesize a 
very basic set of steps so that we could do tasks the same was 
everywhere. 
• Centralized vacations Scheme & Scheduling. 
• Process owners and geographical are jointly accountable for the 
work. 
• Processes stretch horizontally across the work, while decision 
making is compressed vertically to become part of work itself. 
• Supervisors now more facilitator, make sure the worker has 
everything necessary to accomplish the assigned tasks.
Change Management 
• Spent a great deal of time educating employees about process-managed 
work: why it works the way it does, what we expect from 
it, what our problems were and how reengineering would solve 
them, and why the old way of working would not solve those 
problems. 
• Training about how you perform your new work process. 
• Though training time-consuming and expensive, worth to 
understand the business implications of making decisions. They 
could not have succeeded without it. 
• Made perception “ we do the same job in the same way, 
everywhere.”
Learnings !!! (from the reengineering) 
• Nothing happens on day 1. 
• Efficiency goes down a while but don’t give up. 
• Make understanding with builders that true reengineering never 
quits. 
• Change always painful. 
• Every time questions arises, “Are we doing the right thing”. But feel 
genuinely believed that we are and keep confidence up to continue 
and complete project at predetermined time.
Learnings !!! (from the reengineering) 
• Burn bridges behind us. If you make a more gradual transition, 
people will try to slide back into things the way the did them 
before. 
• Can not go with old ways, because those employees and their 
position were gone. Make new process work, and this create a 
sense of commitment. 
• Hard to make believe to frontline performers to believe that the 
system would work. 
• To be successful, should be stubborn and consistent.
Learnings !!! (from the reengineering) 
• Phase wise implementation like from 1st regions and 2nd, 3rd,4th. 
• You can check what you did in 1st phase for improvements. 
• Top level commitment and inclusion. 
• Choosing the right people is so important for implementation. 
• Reengineering is not once you have to continue for improvements. 
• First time is always hard to implement.
Future Reengineering 
• Duke Power is installing mobile data terminals inside their trucks. 
• Which means they will reduce the areas in which we have 
dispatchers form twenty to four. 
• Will eliminate the manual retyping of order into the computer, 
because when orders is completed on the truck terminal. 
• It will go automatically go back to the mainframe. 
• Duke Power’s Leaders emphasize that education is the antidote to 
the confusion and misinformation that may surround the term 
“Reengineering”.
One company’s experience

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One company’s experience

  • 1. ONE COMPANY’S EXPERIENCE: DUKE POWER SUBJECT:- BUSINESS PROCESS REENGINEERING (BPR) FACULTY :- PROF. K.K. JAIN Presented by: 2013004: Akshay Jain 2013015: Cliffton Kinny 2013043: Pooja Somani 2013074: Vijay Jangir
  • 2. AGENDA • Introduction of Duke Power Company • 5 Major Processes in Customer Service Operation • Why Reengineering ? • What was the process before reengineering? • How reengineering Changed the process ? • Change Management • Learning !
  • 3. Introduction of Duke Power Company • Duke Power as most admired gas and electric company. • Long recognized as an Industry Leader. • Had received Awards for Efficiency , Customer Service, and Environmental stewardship. • In 1997 merger of Duke Power and Midstream Natural Gas. • Richard B. Priory- Chairman, President and CEO of Duke Energy. • Jimmy R. Hicks – Senior Vice President of Retail Services. • E.O. Ferrell – Senior Vice President of Electric Distribution.
  • 4. Introduction of Duke Power Company (Contd.) • Serving 2 million Customers spread over 20,000 square miles in North and South Carolina. • Serving in different Thirteen Geographical Areas. • Duke Power Company undertake reengineering in 1995
  • 5. 5 Major Processes in Customer Service Operation • Figure our Customer want, Creating product, pricing, setting Market Share Target. • Interaction & Selling the Product to keep Customer Happy answering service Question. • Product Built with Right Quality and Delivery on time. Developing Market Strategies Acquiring and Maintaining the Customers Delivering Products and Services
  • 6. 5 Major Processes in Customer Service Operation • After an Order is Completed, You must bill the customer and paid also. • Make sure Customers have power 24 hr. a day, 7 days a week, 365 days a year. Process that ensures smooth, Continuous Service. Calculating and Collecting Managing the Delivery System
  • 7. Why Reengineering ? • Rick Priory (CEO) recognized that the Utility needed to cut costs and further Improve its Customer Services irrespective of Quality of service was already pretty high. • Reengineering Required to make it remain Competitive when Deregulation Arrived. • Goal – Service to customer in the upper Quartile among electric utilities in market. • Realized need to Replace “Old Customer Information System” dated back to 1971.
  • 8. What was the process before reengineering? • No consistent way of looking at thirteen geographical areas services. Thirteen different ways with a little twist that fitted the politics of a particular area. • Any time you wanted to change something to had to change it thirteen times and everyone had at least as many reasons why that’s change would not work in such area. • For instance, under the old System - Customer would call in and request a service visit that would print out at an operating. • An administrative representation took the request from the printer and placed it in a box based on the day the job was to be performed. Then the request was transferred into a front line worker’s box on the day it was supposed to do. • No one made any attempt to deter mine whether a particular job would take one hour or two hours and that is the reason inefficiency was high. • Misinformation was uncontrolled.
  • 9. What was the process before reengineering? • There was no measuring tools used to measure the satisfaction level as well as quality of services. • For instance, Customer wants to power turned off at 1234 chambers street on Monday and wants it turned on at 456 Westfield Road, the same day. Orders was completed with in the promised time around 74% of the time but in actual this should be 96 %. • Due to lack of Scheduling , absenteeism was high at frontline workers and services was getting delayed. • Growth was not along with Inflation. • There resistance from frontline performers of new system work. • The linemen were used to receiving work on a daily basis form their supervisors.
  • 10. How reengineering changed the process ? • Fist of all they realized firm needed to replace customer information system, which dated back to 1971. • They hired consultants for ideas in selecting an appropriate new system. • The made a game plan to sell this thing called reengineering to it frontline performers, because they are going to execute the plan in reality. • Process manager made communication of new Customer Service process benefits and made understanding of process plan.
  • 11. How reengineering changed the process ? • How a process organization works? There are players who  Execute maintenance work,  Execute new customer work,  Who deal with problems as they arise,  The manager to teach them processes. • Defining and analyzing primary customer service operation processes  Developing market strategies  Acquiring and maintaining the customer  Delivering products and services  Calculating and collecting  Managing the delivery system  Supporting the business.
  • 12. How reengineering changed the process ? • Reengineering means fundamentally changing the way you provide service-and value-to the customer. • Try to take the advantage of information technology to minimize the number of hands-off, eliminate steps, and widen you current span of control. • Putting data in the hands of frontline performers, who can serve customer with minimal guidance and on the spot respond and saves money. • As a process owner responsible for delivering products an services to analyzes & develop the activities from the moment a customer calls for new service until the power usage is determined.
  • 13. How reengineering changed the process ? • Top-Down approach taken to implemented, reason the fragmentation was embedded in the organization’s culture, which was needed to change. • Separation of Strategic work form Tactical works – People in the field that their job was to execute the processes as well as they could, while responsibility for redesigning the process and managing the resources it required was allocated to process owner. (Which was not before) • Output of the process was interacted with input of the another process and impact on customer. That is each processes measured in a way that kept the customer at the center. • For Instance, a Billing process was measured in terms of accuracy.
  • 14. How reengineering changed the process ? • Made connection between Actions to be taken to complete the process, plus overall cost and Satisfaction of customer. This measures the performance of frontline workers. • “Score Card” concept, Which sets specific goals for each process. One of them was that minimum of 96% of orders had to be completed by the day they promised. • Made measurement system in which everyone can radically see the goal and act on this knowledge. • Focus on making sure information is accessible and communicated to responsible person for the actual delivery of service to frontiline worker.
  • 15. How reengineering changed the process ? • Developed pay incentives- that is, achieve a certain level above the standard and there will reward for it • Setting Standard Time for each processes – Ranging from the heavy construction involved in setting up poles, pulling wire, hanging transformers, and the like to routine work, such as dealing with a customer’s broken backyard light or a meter base that was pulled away from the house. • Every morning administrative team organize the work into packages that the workers would pick up when they came in. • Implemented Color –coding to designate levels of priority: Yellow – for work committed to the customer today. Blue – for work due within three days Green – for work that can be done any time.
  • 16. How reengineering changed the process ? • With metrics to guide us, we were able to organize and synthesize a very basic set of steps so that we could do tasks the same was everywhere. • Centralized vacations Scheme & Scheduling. • Process owners and geographical are jointly accountable for the work. • Processes stretch horizontally across the work, while decision making is compressed vertically to become part of work itself. • Supervisors now more facilitator, make sure the worker has everything necessary to accomplish the assigned tasks.
  • 17. Change Management • Spent a great deal of time educating employees about process-managed work: why it works the way it does, what we expect from it, what our problems were and how reengineering would solve them, and why the old way of working would not solve those problems. • Training about how you perform your new work process. • Though training time-consuming and expensive, worth to understand the business implications of making decisions. They could not have succeeded without it. • Made perception “ we do the same job in the same way, everywhere.”
  • 18. Learnings !!! (from the reengineering) • Nothing happens on day 1. • Efficiency goes down a while but don’t give up. • Make understanding with builders that true reengineering never quits. • Change always painful. • Every time questions arises, “Are we doing the right thing”. But feel genuinely believed that we are and keep confidence up to continue and complete project at predetermined time.
  • 19. Learnings !!! (from the reengineering) • Burn bridges behind us. If you make a more gradual transition, people will try to slide back into things the way the did them before. • Can not go with old ways, because those employees and their position were gone. Make new process work, and this create a sense of commitment. • Hard to make believe to frontline performers to believe that the system would work. • To be successful, should be stubborn and consistent.
  • 20. Learnings !!! (from the reengineering) • Phase wise implementation like from 1st regions and 2nd, 3rd,4th. • You can check what you did in 1st phase for improvements. • Top level commitment and inclusion. • Choosing the right people is so important for implementation. • Reengineering is not once you have to continue for improvements. • First time is always hard to implement.
  • 21. Future Reengineering • Duke Power is installing mobile data terminals inside their trucks. • Which means they will reduce the areas in which we have dispatchers form twenty to four. • Will eliminate the manual retyping of order into the computer, because when orders is completed on the truck terminal. • It will go automatically go back to the mainframe. • Duke Power’s Leaders emphasize that education is the antidote to the confusion and misinformation that may surround the term “Reengineering”.