1. Distribution Project/Program Management Don Stanton, PMP SWEDE Conference May 10, 2007

2. Agenda Need for PM Initial Project Management measures Need for more Project Management Migration to Program Management Process Improvement

3. Need for Project Management Initial need for formalized PM recognized Team formed to develop PM guidelines Guidelines to follow Project Management Institute (PMI) standards

4. Developing a PM Program Focused on PM principles and methodologies –Scope –Schedule –Budget guidelines –Defined R&R’s –Reporting –Templates

5. Practical Use of PM Program Focused on “large” distribution projects –Civic projects –Large System jobs Additional feeders, Rehabs, large circuit upgrades, pole replacement program –Inter-related substation/feeder projects –Large customer initiated projects

6. Large Customer Distribution Substation Conversion Project

15. Things worked well, but…

16. More PM Needed Increase in backlog of smaller projects Continued outside influences to be more competitive Resource constraints –Labor –Budgets

17. Evolution from Project Management to Program Management

18. Evolution from Project Mgmt. to Program Mgmt. Purpose: To address the existing backlog of distribution projects that caused a strain on our resources. To address all future civic and system improvement projects.

19. Staged Approach Stage 1 - Distribution Backlog Primary focus is to alleviate the backlog. Three-pronged approach Stage 2 - Distribution Program Management Address current and future distribution projects Drive accountability Maintain current work load by fully utilizing CPS Energy crews and flex with contract crews as workload varies

20. Distribution Backlog Stage 1 Three-pronged Approach One: Current Backlog of Projects CPS Energy Crews CPS Crews primary responsibility to focus on customer work requests. Secondary responsibility is to work on System, Civic, and Maintenance jobs. Contractor Crews Primary responsibility is to work on System and Civic jobs Maintain current work load by using contract crew to flex as workload varies.

21. Distribution Backlog Stage 1 Three-pronged Approach Two: Pole Replacement Backlog Project Second contractor brought on board to focus mainly on backlog of Pole Replacement jobs (System improvements) 125 Jobs assigned

22. Distribution Backlog Stage 1 Three-pronged Approach Three: Recloser-Capacitor Project Project developed for installation of approx. 50 Reclosers and 65 Capacitor Banks. Devices and materials ordered and supplied by CPS Energy Contractor(s) to provide labor to install Some could also be installed by CPS Energy crews depending on workloads

23. Distribution Program Management Stage 2 Project Management facilitating a Distribution Process Improvement Team to develop the Distribution Program and to document the processes for assigning and tracking current and future distribution projects.

24. Program Management Team Stakeholders –Project Management –Construction District Managers –Outside Services –Distribution Engineering –Distribution Planning –Purchasing/Stores –Utility Coordination Executive Sponsors –VP of Engineering –VP of Construction Additional team members may be “flexed” in as needed

25. Goals Keep internal crews 100 % loaded –The contractor crews will be “flexed” as work loads cycle to allow full utilization of CPS Energy crews –Assignment of future projects to the proper crews based on the work loads TIME WorkloadWorkload

26. Process Improvement Document current processes to identify possible areas of improvement

27. Project Management – Project Management Section Responsible for facilitating the process used to develop the plan for addressing future projects Make sure that the key stakeholders are involved and that the plan is followed Responsible for monitoring and reporting progress Assist in solicitation and securing of additional resources as needed Roles and Responsibilities

28. Engineering – Responsible for helping to identify projects and prioritize those projects for completion. Responsible for ensuring that the projects are planned, designed and released for construction and that all materials are available or ordered as necessary. Involved in helping to develop contracts for outside contractor solicitation and selection. Roles and Responsibilities (cont.)

29. Construction – Service Centers Responsible for securing internal labor resources and properly distributing their workload Possibly help provide internal inspection services for contractor constructed projects if necessary or resources are available May be involved in the solicitation and selection process of external contractors/resources Roles and Responsibilities (cont.)

30. Construction Outside Services – Construction Coordinators Responsible for providing and directing additional contracted resources as needed Responsible for providing inspection services for all constructions projects as necessary Involved in the solicitation and selection process of external contractors/resources Roles and Responsibilities (cont.)

31. Next Steps Assign “Breakout Teams” to look at the sub-processes (SME’s) –Reporting –Prioritization of Project –Resource Allocation Assigning projects Resource loading –Permitting

32. Next Steps Map/document “new” processes Implement new processes!

33. QUESTIONS What type of project management program do you have in place? How do you report on project progress/productivity? Prioritization of projects? How do you determine Resource Allocation/crew loading? Other discussion?