This document discusses supply chain leading practices for large-scale smart grid deployments by utilities. It outlines the need for utilities to adopt new methodologies to support large deployments of smart meters and grids. Specifically, it recommends (1) revising quality assurance programs, (2) managing supplier relationships, and (3) establishing deployment operations centers to coordinate rollouts. The document provides examples of processes that need to be scaled up, like component sourcing and defect tracking, and technology selection best practices from other industries.

1. Energy, Utilities, and Chemicals
Energy, Utilities, and Chemicals the way we do it
Smart Grid Operational Services
Supply Chain Leading Practices
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2. Contents
Supplier Relationship Management for Large Scale Deployment 1
Supply Chain Leading Practices 2
Quality Assurance, The Essential Element 11
Conclusion 12
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3. Energy, Utilities, and Chemicals the way we do it
Smart Grid Operational Services,
Supply Chain Leading Practices
A number of North American Utilities are outline new protocols for communications
endeavoring to undertake smart meter components, and seek to partner with
projects as a means to adjust consumer third-party providers with whom they
energy consumption habits to match may not currently have relationships.
consumption with generation. In certain Specifically, a revamped quality initiative
cases, it is mandated by the regulator is required to integrate traditional
or government. metering quality validation (e.g., meter
testing, certification) with additional
Utilities are increasingly aware of the capabilities, including vendor assessments,
need to adopt established methodologies communication systems testing and
to support such large scale deployments. certification, and manufacturing standards
While existing operational processes and validation. As a complicating factor, there
procedures are adequate for sustainment, is an absence of a complete portfolio
the tidal wave of meter replacements of appropriate standards against which
over a short period of time stretches the integrated devices will be tested. Finally,
internal capabilities of utilities beyond any revised or newly implemented
their limits. quality program will also need to address
quality controls uniquely required in
AMI and Smart Grid initiatives currently
an environment of rapid technology
under consideration by many utilities
innovation, large scale volumes, and
depend upon a complex interaction
accelerated installations of the final AMI or
of available and emerging automation,
Smart Grid products.
communications, and metering
technologies. However, there is growing Supplier Relationship
realization by proponents of this
technology that the increased needs Management for Large Scale
for quality and reliability of these Deployment
investments will be subject to greater Supplier Relationship Management
risks and place new demands upon their (SRM) is a comprehensive approach to
business operations. managing an enterprise’s interactions
with the organizations that supply
While other regions of the world have the goods and services it uses. As a
experience with the deployment and procurement professional that implements
operation of advanced meters, the and optimizes SRMs, Capgemini has
combination of advanced meters and developed proven tools and processes
communications technologies, in-home to identify improvement opportunities
devices, and load control capabilities within relevant areas of the supply chain.
(including under-glass, remote disconnect) Such methodologies and procedures can
has only been deployed on a limited be adjusted for large scale deployment in
scale. In addition to the general lack of order to eliminate bottlenecks, creating
mass deployment and specialized project efficiency and increased accuracy within
operational experience, North American the supply chain.
utilities will face further challenges to both
supply chain operations and to product Certain processes and procedures such as
component specifications and sourcing,
quality management, as manufacturing of
cross dock set up and management, in and
individual components, as well as entire out bound hardware movement, change
assemblies, will increasingly be outsourced meter order management including
to off shore markets. provisioning, defect and non-conformance
management, and responsible meter
Addressing these emerging challenges disposal and recycling, have to be scaled
requires utilities to radically re-craft to support the increased volume and
traditional meter quality programs, mobility demands.
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4. When implementing a large scale AMI or ƒƒ Technology selection and management
Smart Grid program, Capgemini typically
ƒƒ Vendor and order management
establishes a Deployment Operations
Centre (DOC). This approach creates a ƒƒ Integrated supply chain and logistics
centralized team that provides end-to-end ƒƒ Hardware traceability
support and coordination for AMI and
Smart Grid implementation activities. The ƒƒ Bar coding for in and out bound
composition of such a team is critical for hardware movement
a project that has the scale and logistical ƒƒ Defect and non-conformance tracking
complexity of an AMI and Smart
ƒƒ Root cause analysis and corrective
Grid deployment.
action
The DOC oversees meter and network ƒƒ Meter and meter base standards
deployment processes, tools support,
ƒƒ Health & Safety
deployment tracking and reporting, and
issue identification and resolution. As the ƒƒ Program Handbook
nucleus of the whole deployment, the
ƒƒ Quality Assurance and Quality Control
DOC employs a paperless meter change
process that provides near-real-time Technology Selection
reporting on installation results. and Management
Utility adoption of emergent technologies
Metrics are published daily through the to realize Smart Grid and AMI
DOC to provide immediate visibility to opportunities requires new paradigms
actual results against targets through for successful technology management.
dashboard reports. Weekly and monthly Fortunately, leading practices already exist
reports are also created to provide an in other business sectors. The high tech
integrated view of deployment status. The sector, for example, uses proven business
reports give the team the ability to identify models for hardware development and
trends and proactively triage problems venture capital to manage the supply
and issues. chain risks and to manage investments
in product development with growth
Dashboard reports are created for a wide companies. Over the next decade, utility
range of audience. From vendors to the success will be dependent on effectively
president of the utility, the dashboard integrating these types of practices.
provides relevant information to each
reader group. The high visibility of the The lengthy timeline associated with the
metrics helps spark healthy competition development and deployment of AMI
amongst teams to out-perform their metering technology presents unique
colleagues, spurring the group toward a challenges for utility supply chain
common goal. management. Unlike “traditional” utility
products, AMI and Smart Grid hardware
Supply Chain has characteristics more closely resembling
Leading Practices those of computers and consumer
Capgemini advises companies in a cross electronics, such as:
section of industries facing supply chain
management challenges. Processes and ƒƒ Rapidly evolving technologies that
leading practices are then developed to render previous generations suddenly
obsolete
meet specific deployment. The following
is a list of Capgemini’s operational services ƒƒ Emerging features and functions that
supply chain leading practices for AMI build upon lessons learned from
and Smart Grid deployment. These similar applications
methodologies have a proven track record ƒƒ The need to conform to changing
of success, and are highly repeatable customer requirements and preferences
and adaptable, allowing continuous related to design and usability
improvement of each deployment:
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5. Energy, Utilities, and Chemicals the way we do it
ƒƒ Obsolescence created by a changing Process Procurement Model and designing
application standard as a result of an processes required for their specific
evolving utility market place strategy.
ƒƒ Embedded communications Vendor and Order Management
technology made obsolete by The supply of devices like meters plays a
continuing advances in related, but significant role in the deployment process.
external, telecommunications markets Devices are expected to be delivered at
ƒƒ A rapidly changing market in which the intended location, when needed,
vendors are constantly emerging, without issues. Issues in the process lead
evolving, and converging to timelines missed, lost productivity,
additional costs, and customer service
The rapidly evolving nature of this
problems.
industry demands unique capabilities
within a utility’s supply chain practice that When demand exceeds supply: Because
differ from today’s procurement norms. of the rapidly increasing rollout of AMI
Specifically, a product set evolving as and Smart Grid deployments across the
quickly as AMI or Smart Grid requires the globe, demand from various utilities can
buyer to consider the opportunity cost of exceed market manufacturing capacity,
delayed purchasing, while balancing this which compounds the effect on the supply
against the value of buying early. chain. This already results in longer lead
Assuming that a vendor has demonstrated times for products and vendor responses.
that its technology is sound and meets Indeed, we are already finding shortages of
the utility’s business requirements, the devices in some markets.
challenge is developing an appropriate In India, for instance, the Lahore Electric
due diligence effort to assess the vendor’s Supply Company and the Ludhiana
projected delivery capabilities, often in a Punjab State Electricity Board are both
situation where it has no track record or unable to meet its growing demand for
demonstrated capability. Therefore, this electric meters. In Australia, one of the
process is fundamentally an assessment asset owners in Victoria has been informed
of the supplier’s processes and associated by its supplier that AMI meters are subject
results, measured against the utility’s to significant delays, causing setbacks in
technical, life expectancy, and deployment the program rollout.
schedule requirements. This information
is used to establish an informed prediction
of “what will be” as opposed to the more
traditional due diligence approach, which
focuses more on “what is.” The advantage
of this approach is early identification and
mitigation of risks to the utility’s program.
Capgemini’s Procurement Process Model is
a proven method for managing all aspects
of the supplier relationship, including
technology vendors and their capabilities.
Our clients are first advised to focus on a
clear vision for their purchasing strategy.
The exercise is used to determine issues
such as which suppliers should become
preferred business partners, and which are
only scored based on simple price and/or
quantity measured. Once the strategy is
formulated, Capgemini then works with
the organization, applying the Capgemini
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6. Outsourcing delays: In the past, utilities comparing supplier performance, the
have taken for granted that trusted utility is able to partner with the supplier
and well established suppliers would who offers the best performance, giving
provide needed equipment, materials, predictable lead times to orders and
and services in a timely and high-quality delivery, and allowing the utility to
fashion. Today, global suppliers are facing schedule deployment with efficient
unprecedented demand not only from use of time and resources by minimizing
North America, but also from Europe, idle time.
China, Australia, and India. A number
of manufacturers and service companies While vendor management is introduced
are, or soon will be, facing capacity to provide a structured and transparent
constraints due to the demand bubble. view to supplier performance, the material
Given the choice between heavy capital ordering process needs to be scaled.
outlays to increase capacity, several are
Even though the sustainment processes are
turning to outsourcing as a means to
adequate and effective for day-to-day
relieve the constraint.
utility operations, they are not able to
Start-ups may take longer: The lucrative satisfy the demands of an AMI and Smart
AMI and Smart Grid market has also Grid deployment.
fostered numerous start-up companies. The smart meter project materials ordering
Much of these firms’ primary expertise process is an example of the supply
is in either telecommunications or chain challenges that exist in a large
electronics, with minimal experience scale project. The sustainment process is
in metering or grid management. typically unable to support the increased
Placing a large order with a start-up is volume efficiently and reliably. This results
an “investment” in that company, and in longer order processing time, surplus
provides a cash infusion that enables materials, and added volatility in planning.
the process of scaling up design,
manufacturing, quality assurance and Online ordering systems are implemented
delivery systems, some of which may not for real-time material management.
be fully developed at the time the order is The system provides accurate lead times
placed. Most of these start-ups incorporate and visibility into order status, and
outsourcing as a key component of allows project resources to make
their strategy. informed decisions.
The effects of the above issues create Since many sustainment users are not
significant downstream impacts, resulting well versed in electronic order systems,
in idle time of installers and delays in Capgemini creates and executes
installations. Additionally, defective meters training programs for these user groups.
require a robust return process that is easy Giving users step-by-step training on
to follow so that the meters can be tracked simple procedures allows for accurate
and action taken against root causes, and efficient completion of orders.
corrective actions and possible Additionally, the design includes a user-
lost revenue. friendly interface.
Managing your supply base not only The results are visible lead times,
involves managing current suppliers, improved productivity, accurate storage
but also attracting new suppliers and requirements, optimal inventory levels,
improving supplier performance. One and enhanced customer service.
specific Capgemini processes manages
multiple vendor contracts using a supplier Capgemini’s model of Supply Base
scorecard. The suppliers are evaluated Management applies three focus
using metrics including total defects, areas, Supplier Management, Contract
defect costs, and on-time delivery. By Management and Procurement
Intelligence. We have experience with a
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7. Energy, Utilities, and Chemicals the way we do it
range of different Supplier Relationship Capgemini assists utilities in selecting
Management tools available on today’s strategic deployment locations,
market, solutions we have seen developing robust logistics processes,
implemented at various organizations. managing vendors, setting up cross docks,
Such solutions include sourcing tools, and managing installations, disposals
eProcurement tools, contract management and defects.
tools, spend analysis tools, etc. and are
applied according to the specific needs of Cross Dock Set-up
our client. These can greatly impact the and Management
procurement practices of organizations A smart meter installation project requires
that must first assess and then manage the deployment of high volumes of meters
both suppliers and vendors in large scale within a short period of time, requiring
deployment projects. thousands of meter change orders per day
at various work locations.
Integrated Supply Chain
and Logistics Local utility operation centers are designed
At the center of a successful AMI and to handle sustainment levels of change
Smart Grid deployment is an efficient meter orders. The increase in volume
supply chain. The end-to-end process is not typically supported by the local
of ordering, receipt, storage, deployment, operation centers, creating two significant
disposal and returns has to be able to issues, which Capgemini addresses:
withstand the tidal wave of deployments
ƒƒ Physical space constraints do not allow
that comes with an AMI and
for the increased volume of meters and
Smart Grid initiative.
resources. Capgemini has experience
Through collaborative efforts with utilities managing temporary cross docks. For
and their vendors, training of field staff, example, using integrated logistics
and process optimization, Capgemini has providers, trailers used to deliver
created a complete and proven process for meters also serve as mobile on-site
a smart meter deployment. Our process storage for new and decommissioned
addresses the most significant hurdles meters.
such as rapid changes in volume and ƒƒ Lack of connectivity does not support
resource mobility. the increased volume of work and
resources. Temporary and remote
While all utilities have sustainment
locations are not equipped with
processes in orders and changes, these
sufficient connectivity. Capgemini
processes are designed for the volumes
manages multiple network connectivity
that come with the day to day operations.
options to create the necessary
A smart meter deployment project requires
solutions. For example, using a
replacement of all meters over a short
combination of WWAN, WLAN, and
period of time. Enhanced processes and
WPAN, a secure, reliable, portable and
rigorous logistical considerations are
cost effective connectivity solution is
critical to manage an aggressive scope and
achieved.
timeline.
Capgemini is able to help the utility set
Smart meter deployments are often up mobile cross docks at each location on
geographically disparate. All meters over demand. Installers now have a predictable
the service territory need to be changed, staging environment where they can go
and the most logical approach is to replace through a process of meter exchange,
all meters within one geographic location work order upload and download, and
(using meter reading routes), and then “tailgate” briefing sessions. This helps
move to the next location. This calls for a create a predictable work completion rate,
repeatable solution that the deployment allowing the DOC to manage the
team can utilize. success of the deployment.
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8. 6

9. Energy, Utilities, and Chemicals the way we do it
Hardware Traceability Defect and
Regulation often requires the utility to Non-Conformance Tracking
have visibility into the location of every Defect and non-conformance tracking is
device at any given time. While paper critical to the success of an AMI and Smart
based solutions are adequate in handling Grid project. The sustainment defect
the sustainment volumes, the deployment and non-conformance tracking system is
of a multitude of devices in an AMI and sufficient for utility day to day operations
Smart Grid project requires a process that but an industrialized solution is needed to
is efficient and robust. handle the increased volume of AMI and
Smart Grid projects.
By bar-coding devices, not only is the
utility able to track devices on a unit-by- By utilizing a program-specific tagging
unit basis, but it can also provide obvious and ticketing process, Capgemini is able
benefits of inventory control, defect to develop a solution that provides a
tracking and responsible device disposal. standardized naming convention for defect
The typical sustainment process (which trending, creates visible inventory controls
is often paper based) is error prone due and categorizes issues that commonly
to illegible handwriting, incompleteness, appear. This results in the utility’s ability to
etc. and not always timely in the updating communicate issues to the device vendor
of records. A bar-coding based solution for root cause analysis, thus eliminating
integrated into the deployment process future reoccurrences of any problems.
helps to eliminate this issue.
Capgemini utilizes bar-coding
Devices are shipped from the vendor in methodologies for tracking purposes. A
consecutively numbered lots. Each lot defective device would first be scanned
of devices is assigned to an installer for and the data uploaded to the system. A
every day of installation. The challenge report is generated daily for verification
has been that individual devices are not and exception resolution. The devices are
pre-assigned to installation addresses. By sorted by defect reason then scanned and
allocating a lot of consecutively numbered shipped to the vendor. The devices are
devices, installers are able to complete the then repaired, shipped and placed in the
pick up process more efficiently. warehouse as usable inventory.
Each new device has a removable Root Cause Analysis and
identification sticker attached. During Corrective Action
each installation, the installer removes With large numbers of devices being
the sticker from the new device and deployed on an AMI and Smart Grid
places it on the removed device. This project, quality of devices is important to
allows the back office to match the new the on time and on budget completion
and decommissioned devices to the final of the project. Not only do defective
installed location. devices cause delays during installation,
but the tracking of defective devices
As a result of the accurate correlation adds unnecessary time and cost to the
process, the replaced device can now be execution of the project. Some defects can
scanned for disposal. Compared to the create health and safety issues
previous paper based process, the new during deployment.
process is more efficient and less error
prone, allowing for thousands of device In order to minimize defects from the
disposals per day and an effective asset vendors, Capgemini introduced the
depreciation recovery. 8-Disciplines approach. We use this
approach to discover the root cause
of issues and then work with the
manufacturer to eliminate
future recurrences.
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10. The 8-Disciplines approach is widely Meter and Meter Base Standards
employed in the automotive industry. It Meters and meter base standards are set
is a problem management tool popularly according to industry standards. While
used to respond to customer returns or the AMI project team has a high level of
issues. Its effectiveness stems from the fact control over the quality of meters, the
that it incorporates all of the important quality of the meter bases is typically
aspects of problem management. Users beyond control of the AMI and Smart Grid
will describe the problem, contain the project teams.
problem, identify the root cause, formulate
and verify corrective actions, correct the During large deployment, a number
problem and confirm the effects, and of meter bases are often found to be
prevent the problem. problematic, and could cause safety
issues for installers and/or customers.
Adapting the 8-Discipline approach to Additionally, since meter bases are often
AMI and Smart Grid implementation considered end user property, the utility
allows for an industrialized method has to determine the bearer of the
for issue recognition and elimination. repair costs.
It starts by creating an 8D team drawn
from functions across the organization to Capgemini can assist in drafting new
incorporate the 8-Disciplines approach, installation procedures and work
collaborate with the manufacturer, and instructions to mitigate safety risks to
identify corrective actions or process installers when broken meter bases are
improvements in order to minimize defect discovered, while minimizing service
recurrences. By minimizing preventable disruptions to the end users. Clear
issues with devices for a large scale guidelines are also set to define the
project, time and resource requirements circumstances under which the utility
are decreased, allowing the utility to focus would bear the cost of repairs versus
on its core objective, the rapid deployment the end user, with a robust claims
of devices. management process.
Each broken meter base is logged with the
location, time of discovery, and reasons
(often including pictures.) It has been
discovered that four common reasons for
broken meter bases are:
ƒƒ Meters are manufactured substandard
to the industry specification
ƒƒ Components are manufactured below
standards such that the meter would
crack and warp under normal use
ƒƒ Meter installations required
unacceptable force to install during
deployment, resulting in damage to the
meter base and/or meter
ƒƒ Poor construction practices during
installation of the meter base combined
with weather can often cause damage
to the meter base (i.e. ground heave
without adequate slack on
underground services)
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11. Energy, Utilities, and Chemicals the way we do it
Capgemini’s project teams continue to While basic training is available to
encounter meter bases with damage all project staff, there are other safety
during installations. However, safety risks considerations for specific staff in the
and service disruption have been mitigated AMI and Smart Grid projects. In fact,
with updated installation and work safety standards often continue to evolve
procedures, so damage under the four during the duration of most AMI and
common categories can now be effectively Smart Grid projects. One example is the
managed and quickly resolved due to Arc Flash safety standard that has become
leading practice experience and training. increasingly necessary during installation.
Health and Safety Arc Flash is a localized and intense
Health and safety of workers and/or concentration of light and heat energy. It is
customers is paramount to the operations most often the result of reduced insulation
of a utility. Not only is it required by and isolation distance between energized
law to create a reasonably safe working components. A worker can inadvertently
environment for all workers, but injuries cause Arc Flash by leaving a tool behind or
also have negative impacts on the overall dropping one into a breaker, or failing to
morale of the project while creating de-energize equipment.
installation delays.
The flash is immediate and can cause
One of the key success factors of the severe injury. Every year, burn centers
AMI project is to have zero injuries and treat more than 2,000 cases of extended
minimal property damage. The utility injuries among workers caused by Arc
is already armed with a robust set of Flash, according to Institute of Electrical
safety procedures and standards and staff and Electronics Engineers (IEEE) research.
has been extensively trained to manage Electric arcs can produce temperatures
daily operations safely. Unfortunately, up to 35,000 degrees Fahrenheit.
discrepancies often exist between the Milliseconds after the flash, an intense
safety standards of the utility and those of blast of superheated air can throw an
its contractors. Additionally, contractors adult many feet through the air and cause
may not always be equipped with the permanent and possibly fatal scalding
necessary training and certification. of the lungs if breathed. Arc Flash can
cause third degree burns and melt any
Capgemini reviews safety standards of the man made fibers to skin, including
utility and qualifies potential contractors clothing worn underneath fire-retardant
to identify the most common gaps. As a gear. Protection from Arc Flash requires
result, commonly missing qualifications clothing with a specific calorie rating.
for the contractors such as standard First
Aid with CPR Level A training, electrical Due to the obvious dangers of Arc
awareness training, and defensive driving Flash, safety training is created and
training become part of the project communicated to all field staff. As a result
standards. All contractors are required to of closely monitoring the safety needs of
pass tests and obtain certification under project staff using a rigorous work process
the utility training program to demonstrate inspection (WPI) process and identifying
competence in basic safety knowledge. In- and closing the safety gaps, the AMI and
field safety procedures are also monitored, Smart Grid projects can operate with zero
reported on, enforced and communicated injuries to workers and customers.
to all staff.
9

12. Program Handbook Quality Assurance and
A program with the scale of an AMI Quality Control
and Smart Grid project, where millions A key component of a well-designed
of devices need to be changed over a Quality Assurance (QA) program is
relatively short period of time, requires an in depth assessment of the AMI or
a high level of communication between Smart Grid vendors of choice. This is
all collaborating parties of the project. a relatively new aspect to supply chain
The program handbook is one of the key practices within the utility industry. The
tools employed to help communicate a assessments can be performed on-site at
consistent set of operating procedures the design or manufacturing operation,
to field staff. in close collaboration with the vendor’s
key engineering and management staff.
To avoid conflicting procedures on the Assessments identify vendor capabilities
project, a centralized and approved within key risk elements, as noted below,
program handbook is created and and also identify areas where improvement
distributed to all program staff. The is needed for the vendor to ensure that
purpose of the handbook is to allow field a utility’s program requirements are met
staff to have quick reference to important or exceeded. Elements of a well designed
field operational procedures in remote assessment include but are not limited to:
areas where connectivity is limited or
ƒƒ Risk identification and mitigation
non-existent. For ease of use, aside
from content and information selection, ƒƒ Design process predictability
ergonomic considerations are also factored
ƒƒ Manufacturing process predictability
greatly into the design and printing of
the document. ƒƒ Supply chain predictability
ƒƒ Improvement and problem mitigation
By combining and verifying various
documents available within the utility, ƒƒ Configuration management/traceability
Capgemini helps create a highly ƒƒ Concurrent business activities impact
mobile handbook that provides concise and predictability
operational procedures to staff and helps
minimize miscommunication, lost time ƒƒ Service and support delivery process
spent seeking vital information and predictability
inefficiencies in operations. Updates to ƒƒ Management process predictability
the document are typically uploaded to
the utility intranet so that staff can easily ƒƒ Software/firmware development,
revise their handbooks. testing and integration with hardware
systems.
Members of the field staff have a single Within each element, key questions
point of reference for clarification of should be explored that drill down
the daily activities. From roles and into the specific aspects of the vendor’s
responsibilities to decision trees, and from systems, processes, capabilities, and
meter ordering processes to overhead management approach. The output of this
clearance guidelines, staff can carry out process not only facilitates the successful
their daily activities with confidence under development of the QA program, but
a safe, clear working environment. also provides direct and independent
validation of the capabilities espoused
by the targeted vendors in the utility’s
procurement evaluation.
10

13. Energy, Utilities, and Chemicals the way we do it
Periodic follow up assessments are Capgemini recommends that utilities
conducted focusing on specific issues seek to identify, assess, and mitigate the
identified in the initial reviews, and potential risks associated with candidate
validating core and emerging priorities AMI and Smart Grid vendors and their
established by the utility. As a utility AMI solutions, before and during long-term
or Smart Grid program evolves, portions arrangements with them as supply
of the risk elements will not require chain partners. This is not just a quality
additional follow up. In addition, the assessment of the supplier’s capabilities
frequency of assessments will decrease or an audit based on established
from the initial assessments, particularly quality standards (e.g., ISO 9001).
as consistent results are obtained and Instead, utilities should seek a deeper
the utility gains confidence in each understanding of a supplier’s capabilities
supplier’s capabilities and quality/risk at all stages of design, production,
mitigation levels. In the end, the goal is and distribution. In particular, utilities
not for a utility to seek to disqualify a should validate whether the vendor’s
particular supplier from further business processes in the early and critical stages of
consideration, but instead to focus on development and
the factors needed for success. This is ramp-up can support their technical and
in the best interest of both parties for a business objectives.
successful outcome and a long lasting
business partnership. This new focus on QA seeks to answer a
number of key questions, including but
Quality Assurance, the not limited to, the following:
Essential Element ƒƒ What methodology and processes are
Given these new market realities for needed to identify and resolve key
AMI and Smart Grid products, the focus risks associated with each aspect of the
of utility procurement efforts needs to equipment supply chain – e.g., design,
adapt accordingly. AMI and Smart Grid component sourcing, manufacturing,
program leadership must now turn to packaging, shipment, receipt,
outlining, developing, and implementing distribution, and/or installation?
an enhanced Quality Assurance (QA)
ƒƒ What key process indicators (both
program and methodology to be applied
corrective and predictive) are required
throughout the effort, from scoping
for both internal and external
through deployment. Based on typical
performance measurement and
business case expectations for long term
control?
life cycle reliability and low annual failure
rates, there is greater significance of taking ƒƒ How do these indicators need to
appropriate precautions to manage the change over the course of the program,
quality issues before product is delivered once full-scale deployment is initiated?
for installation. Additionally, most utilities ƒƒ How does the utility project team
should seek to instill proper monitoring need to incorporate changes to other
and controls throughout the deployments, program processes in response to
which include meters, operational identified supplier risks and mitigating
technology (OT) communications devices, actions?
field installation logistics, and final
program delivery. ƒƒ What detailed inspection, test, and
certification procedures for test
laboratories are needed to support
supplier qualification and efficient
implementation of the program?
11

14. Conclusion ƒƒ Management of conformance to
Supply chain management that workmanship standards for outsourced
encompasses the management of the component manufacturing
relationships within the supply chain and ƒƒ Possession of valid test and
the quality control of the products and measurement systems that are traceable
services being delivered will continue to established standards, while these
to confront companies worldwide, standards are
particularly those engaged in large still emerging
implementations that bring together
people, processes and technology. Global With the development of a sufficient
AMI and Smart Grid supply chain Quality Assurance program, supported
management share these challenges, in by in-depth vendor assessments, utilities
particular the following will be better positioned to address
key elements: the uncertainties of emerging AMI and
Smart Grid technologies. Given further
ƒƒ Rising prices and uncertain quality advancements and familiarity with the
controls for third party components deployment and operations of these
and supplies systems, these practices should become
ƒƒ Maintenance of high quality levels a standard for future utility supply
to meet buyer expectations during chain practice.
production ramp-up
ƒƒ Increasing risk of late or unpredictable
delivery processes and channels along
the entire value chain
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15. Energy, Utilities, and Chemicals the way we do it
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16. www.ca.capgemini.com/smartgrid
About Capgemini and the
Collaborative Business Experience
®
Capgemini, one of the The Group relies on its global delivery
world’s foremost providers model called Rightshore, which aims
®
of consulting, technology and to get the right balance of the best
outsourcing services, enables its clients talent from multiple locations, working
to transform and perform through as one team to create and deliver the
technologies. optimum solution for clients. Present
in more than 30 countries, Capgemini
Capgemini provides its clients with reported 2008 global revenues of EUR
insights and capabilities that boost 8.7 billion and employs over 90,000
their freedom to achieve superior people worldwide.
results through a unique way of
working, the Collaborative Business More information about our services,
Experience.™ offices and research is available at
www.ca.capgemini.com/smartgrid.
EUC_SPCNPBRO_030609_052
For more information on Capgemini’s Smart Grid Operational Services, contact:
Gord Reynolds
Practice Leader
Smart Energy Services
gord.reynolds@capgemini.com
+1 416.732.2200
Copyright © 2009 Capgemini. All rights reserved.
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