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End-to-End Process Improvement Initiative

Connecticut Natural Gas andThe Southern Connecticut Gas Company

Northeast Gas AssociationSales & Marketing Summer Seminar

August 27, 2015

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Highlights• Connecticut’s Growth Opportunity• UIL’s Management Response• Process Improvement Initiatives

– Our Process for Process Improvement– Sample Process Mapping– Recommendations– Results to Date

• Role of Technology• Conclusion

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Gas Expansion in Connecticut• Governor Malloy’s “Comprehensive Energy

Strategy” (“CES”)– Multi-faceted energy plan for electric, gas,

renewables, transportation and buildings– CES spurs enabling legislation, including the

requirement for the LDCs to file a Joint Natural Gas Expansion Plan

• 10-year plan• 900 miles of new mains• 280,000 new heating customers• 50% market share

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The Opportunity to Grow is Apparent…

SCG Total

MileageTotal

Services

2010 6.3 1011

2011 8.9 1508

2012 22.2 2456

2013 26.6 2987

2014 26.2 2725

CNGTotal

MileageTotal

Services

2010 3.7 1004

2011 3.8 1294

2012 13.9 2106

2013 16.1 2477

2014 22.6 2572

SCG: 315% Mileage170% Total Services

CNG: 510% Mileage156% Total Services

Total % Growth from 2010 through 2014

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Expansion Opportunities

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UIL’s Management Reaction to CES Opportunity

• Realign and enhance the organization to meet the needs of the Plan– Create separate Construction organization

• Focus Process Improvement efforts on gas growth– Dedicated resource to lead effort

• Invest in technology to support it

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CEOJim Torgerson

Sr. VP Business Services

Anthony Marone

Sr. Director Sales & Marketing

Roddy Diotalevi

Director Residential Sales

Chris Ehlert

Director C&I Sales Terri Eller

Manager, Business Development

Jane Lano

Manager, Marketing Barb Roderick

Sr. Director Customer and Business Services

Rita King

Process Improvement Lead

Vincent Lam

CT Gas PresidentRobert Allessio

Sr. Director, Gas Engineering

Robert Jalette

Manager CNG Engineering

Paul Querfeld

Manager, SCG Engineering Kevin Gerety

Director Corporate Engineering CNG/SCG

Amos Barnes

Director Gas Construction

Gregg Therrien

Manager CNG Gas Construction

Rick Dion

Manager SCG Gas Construction

Bob Turley

Manager Construction Planning CNG/SCG

Cely Vano

Manager Construction Resources CNG/SCG

Jay Fletcher

Sr. Director Gas Distribution Chris Malone

Sr. Director Gas Supply John Rudiak

CNG/SCG Gas Expansion Plan Organization

Customer Acquisition Design Build Serve

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Our Process for Process ImprovementRecruit TEAM MEMBERS

Define SCOPE

HIGH LEVEL FLOW

BENCHMARK the Current Process Against Best In Class

Map the “As-Is” Process

Compare the “As-Is” Process between UIL Operating Companies

Map the “Perfect World” Process

Create a List of Action Items and Sub-teams to Achieve it

Monthly Progress Reports and Meetings

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High Level Flow: New Business Services

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“As-Is” Process Review: “Make it Ugly”

“As-Is” Work Flow

Manual Work Package

Systems

Engineering Construction

• Multiple system are utilized (iAve / SAP / Mapping Software (LifeCycle / GIS / Document viewer) / CS-10 (Filing Software))

• Processing time are slow• Multiple system approval needed to process work orders• SCG / CNG has various differences on cross functional users utilizing different

systems• SCG / CNG process has various differences• Engineering tasks are assigned to sales team• Engineering is utilizing sales system (iAve)• Lack of documentation • Manual tracking for work flow status• Long Lead time to process work orders

• Work Package is physically hand off from department to department• Risk of mis-handling and losing package is high• Consist of multiple touches and handling• SCG / CNG work package has various differences & requirements

Sales Operations

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“As is” Detailed Steps

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• Sales agreement / Site Visit

• Gather Customer information

• Property Sketch• Mark Meter Location• Generate Lead in iAve• iAve Approval status

from Internal Sales Reps

• Obtain any mapping from customer as needed (e.g. Sewer, Skeptic, etc)

Sales RepsA

B• Validate Sales agreement data in iAve• Request Strip Map from engineering• Create Business Partner Number (BP) in SAP• Create SAP notification number• Write BP # on sales agreement sheet• Approve all iAve status Manually

Internal Sales Reps

Construction• Daily – review open order report from

internal sales team• Assign new construction date &

work order to contractor crew and email status to sales / marketing team

• Weekly – Provide start date “Week of” to sales team on communicate to new signed customers

F Construction

H

• Print out latest & closest gas installation work order

• Add in any additional information or services records as needed to work package

• Add prefab header in SAP• Schedule jobs to contractor • Provide basic start date to contractor for new

jobs• Update SAP work order with work center &

assigned contractor• Update work order status in SAP

ContractorG• Construction of new services• Obtain permits & police requirements• Email previous day completed job to

construction team• Email to construction team on where they

will be working today• Fill out completed work order sheet

Construction

I

• Field inspector inspect contractor work during construction

• Field inspector review accuracy of completed work order sheet from contractor and sign off final work order sheet

• Dispatcher update equipment record in SAP & update work order status in SAP

Engineering

• Engineering scan final completed work order sheet into filing system

Internal Sales Reps

• Run daily open order & work order due data report (email to contractor & construction team)

• Weekly send out email communication to sales / marketing team on new construction date for new signed customers

Sales Internal Sales Engineering Internal Sales Field Inspector Construction Contractor Construction Engineering

C• Print out strip map for Sales• Confirms all permits & easement• Field visit - Gather information on service length,

meter locations & landscaping information• Designer create work order in SAP

• Input iAve Business ID into SAP PO field• Enter compatible units & parts

• Engineering manager / supervisor review and approval work order in SAP

• Change SAP status

Engineering

D Internal Sales Reps

• Change iAve status (Wait for SAP to iAve batch job to run )

• Run CAP model• Wait for Sales manager approval in iAve• Identify any easement (If easement put contract

on HOLD and send out easement to associated homeowners and UIL legal department)

• Identify any CIAC• If no CIAC – have customer sign sales

agreement• If CIAC contact customer if they would

like to paid CIAC and sign contract (Cancel contract if customer does not want to proceed paying CIAC)

• During customer sign contract, sales rep field visit to refresh riser marker location

• Create BP # & Premise # for meter set in SAP and input BP# & Premise # into iAve, create quote in SAP

• Work with construction to get Basic Start date, write basic start date into sales agreement and enter into SAP work order.

• Release work order in SAP• Scan Sales Agreement into CS-10

E Field Inspector

• Goes out for pre-inspection for new construction

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“As-is” Process Flowchart

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“As-is” Systems Map

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Automatic “As-Is” Flow – SCG / CNG Comparison – ConstructionInternal

SalesSales RepsField

Supervisor (SCG Only)

Construction Contractor Construction Engineering

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“Ideal” Workflow

Electronic Work Package

Web Browser based interface runs on PC or mobile device

Simple Work Package

Creation Wizard

Integration with legacy systems

Workflow inbox to facilitate

reviews, revisions, and assignments

Work package format that

mirrors paper-based tab

binders

Electronic forms

Electronic notification

Electronic work package delivery

Electronic track notes and changes

Photo, signature, text data capture capabilities

Electronic work package

assignment / routing

Archive capabilities for original work

package and all completed documents

Dashboard to monitor work package status

changes

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Recommendations

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Recommendations (continued)

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Monthly Progress Reports

• Make process improvement activities part of the corporate goals

• Complete benefit statements when process improvements are completed

• Monthly Progress reports and working meetings

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Invest in Technology• Implementing changes in existing systems may not

be enough. System upgrades may be necessary

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Some Real Results….• Sales Agreement Contract Enforcement• Digital Sales Agreements, including meter

location picture (replaces hand-drawing)• Contractor white-line, CBYD and initial site

visit• Main and Stub approach to Work Order

generation• Resource Planning and Scheduling• Backlog reporting

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Summary• Have a process for process improvement• Have a dedicated process leader / coordinator• Make Process Improvement a part of

Corporate goals• Make the “As-is” process ugly – “get real”• Break recommendations down into

manageable action items• Dedicated and scheduled follow-ups• Invest in people and technology

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Questions Questions