keberkesanan key performance indicators pengurusan air

SURUHANJAYA PERKHIDMATAN AIR NEGARA

1

KEBERKESANAN KEY PERFORMANCE INDICATORS

PENGURUSAN AIR

2 – 3 November 2009

Shah Alam Convention Centre

Simposium Pengurusan & Pengauditan Industri Air 2009

SURUHANJAYA PERKHIDMATAN AIR NEGARA2

Why Performance Indicators?

• Indicators were derived to assess : The availability of water and sewerage services to the

public; The technical and financial condition of water and

sewerage facilities / assets;

The economic and environmental aspects of water services and use

• These indicators provide comparable information on utility operations necessary for understanding and controlling deviations in the sector's performance.


• The KPIs will assist the Licensee to:

Deliver quantifiable outcomes

Ensure rigorous assessment of Licensee Business Plans & Annual Reports and monitor regulatory compliance.

Deliver a framework for analysing and reporting on its effectiveness

Why Performance Indicators?


SPAN’s KPI’s for Licensees : An Update

• Working Group met on 12 March 2009 to arrive at consensus

• Latest changes/updates presented at water operators meeting on 14 April 2009

• Business Plans received from SAJH, SAINS, SAMP, PBA Penang, PAIP, AKSB, IWK

• License issued to SAINS, SAJH, SAMP, AKSB and IWK (in process)

• KPIs are imposed on all operators as part of licensing condition

• Introduction of consumer standard and code

4


KPIs : Customer Service Standards Framework


SPAN’s Approach to Establishing Good Performance Measures

• Meet policy objectives

• Set KPI framework based on what to measure

• Take into account different starting line

• Focus on a result: The result of the PM should provide you with information

• Must measure attainment of one or more of the utility goals

• Must be practical and data must be obtainable

• Accuracy must be tested over time

• Resistant to misrepresentation (cheating!)


IMPLEMENTATION: The First 3 Years

• 12 main KPIs had been identified

• Span will negotiate with operators to determine baseline figures for KPIs

• Target levels will be based on improvement to current levels of achievement

• KPIs of each licensee can be viewed in public domain

• Operators to request for funding to address the requirement to achieve KPIs through PAAB in 3 year Business Plan

• Penalty in relation of non compliance (license condition) – first 3 years – could be in form of undertaking by operators to rectify or take remedial action to make up shortfall.

• Draft Explanatory Notes on KPI being prepared to ensure standard definition and measurement by all operators

• TOR for appointment of Reporters (independent auditors) on cost and performance being prepared .

7


EXPLANATORY NOTES ON KEY PERFORMANCE INDICES FOR WATER SUPPLY SERVICES

1. WATER SERVICES PERFORMANCE

WS1: Water quality compliance

Performance indicators Measure

Malaysian National Standard for Drinking Water Quality (2000

% compliance

CONTEXT To challenge Water Service Licencees to become more efficient and to provide a better water service and to assist them to set milestones for improvement in its overall performance assessment, with set targets for improvement by 2011 ( 3 year Business Plan).

NATIONAL KPIs FOR WATER SUPPLY SERVICES


National KPIs for Water Supply Services

9

• WATER SERVICES• Treated Water Quality Section 41• Water Pressure Section 40• Security of Supply Section 34• Supply Coverage Section 31, 32• CUSTOMER SERVICE Section 33, 37, 52 • Billing Complaints• Response to Complaints• Customer Contact • OPERATIONAL & ECONOMIC PERFORMANCE Section 30• Water Loss Management• Operating Cost• Collection Efficiency• Operating Ratio• ENVIRONMENTAL PERFORMANCE Section 30• Sludge Treatment


KPIs Outcomes and Impact on Water Service Providers

• Old Paradigm : We invest in creating assets, but don’t address the OUTCOMES of investments adequately

New Paradigm: A project is “completed” when service delivery levels improve – not when assets are created

1. We will see a shifting of focus from Technical Input to Performance Outcomes


• Old Paradigm : See water provision as a job, an obligation rather than a service

Limited emphasis and focus on satisfying customers’ needs Poor accountability

• New Paradigm : Welcome consumer inputs and feedback to shape performance improvements and priorities for improved accountability

Internally, across the organisation To consumers To other stakeholders (shareholders, regulator, etc)

11



• Optimise the use of their assets and resources• Measure service levels to reflect operating

performance• Identify opportunities for revenue improvement• Prioritise and track improvements• Position and compare own performance relative to

others

12

2. WSP will begin to track performance, and implement performance improvement planning



• Improve financial performance• Improve customer satisfaction• Increase competitive advantage• Improve transparency to stakeholders

3. Develop a culture of continual performance improvement to stay in business in challenging times



• Reveal performance How well are you doing?

• Promote comparison How well are you doing, compared to others?

• Promote networking and sharing between peers Horizontal learning, mentors and ‘mentees’

• Promote performance improvement Link government/PAAB funding to performance

improvements

4. Benchmark performance among peer operator :



Next Steps by Operators

• Data baseline housekeeping on current submissions (MWIG) for proper documentation towards coming KPI target level

• Identify Capex and Opex funding requirements in preparing Business Plans especially relating to addressing KPIs as part of licensing condition.

• Work out your proposed KPI target levels based on SPAN KPI framework and prepare to negotiate/discuss with SPAN and PAAB

• Leverage on ICT and establish dedicated team on performance measurement and monitoring as one of core business viz a viz licensing condition.

15


• Holding water service lisencees accountable for performance

Monitoring their performance Analysing their perfomance to identify support

needs Providing technical and financial “support” via

Business Plan submission Auditing their results – especially if tied to

incentives!

SPAN’s Regulatory Role


• WSL submit quarterly report to SPAN

• Publish KPIs on SPAN website and Water Forum (to be agreed)

• Auditing by SPAN on regular basis

• Regular consultation sessions to refine methodology, target levels, implementation strategies, etc

• Discussions on non compliances and remedial actions

17

SPAN’s Regulatory Role

Monitoring and reporting


• One of the key tool in water sector reform• Strengthens internal performance assessment• Helps WSL prioritise interventions with their limited

resources for efficiency gains and obligations• Is an important tool for SPAN to track service

delivery performance, set targets, monitor performance and prioritise regulatory interventions

• Improves accountability

• Key Performance Indicators

Conclusion


19

TERIMA KASIH


Bil KPI 2008/09

1

2..

SUPPLY COVERAGE% of water supply coverage

TREATED WATER QUALITY COMPLIANCE RATE % Compliance

WS1: % coverage urban areasWS1a: % coverage rural areas

WS2:% QAP Programme Compliancei.Residual chlorine=2.3%ii.E.Coli=0.4%iii.RC&E.Coli=0.2%iv.Turbidity=2.2%v.Al=10.2%


Bil KPI 2008/09

3.

4.

WATER INTERRUPTIONS AND MAIN BREAKS% achievement of KPIs a), b), c) & d)

WATER PRESSURE% Compliance

WS3: % achievement of KPIs a)comm pipe failures to be repaired within 1 day;b)pipe repair and restoration of supply >200mm<600mm-within 1 day;c)>600mm-within 2 days;

WS6: Minimum residual pressure of 10m for residential houses to be maintain for not less than 8 hour within a 24 hours period


Bil KPI 2008/09

5. Security of Supply% of water supply treatment plant reserve margin for each treatment plant

WS7:10-15% of water supply treatment plant reserve margin of each treatment plant. Indicators -treatment plant reserve capacity of 15 - 20% should always be maintained at any one time-external storage capacity should not be less than 24 hours supply


Bil KPI 2008/09

6. COMPLAINT

Unit: % complaints responded within the KPIs

CS1: Response Time To Complaints

i) Billing complaints - % responded within 3 working days

ii) Response to complaints-complaints meaningfully responded within 5 working days

iii) Telephone complaints-% responded within 30 seconds


Bil KPI 2008/09

6.

7.

WATER LOSS:

-% of total volume produced-Litres/day/km of mains-ILI Index

Operating Cost

Unit: RM/1000 account

Unit: RM/m3

OP1: Non Revenue Water-% of total volume produced-real losses volume per day/km-infrastructure leakage index

OP2:

Operating Cost Per 1000 Accounts

Operating cost per cu.m water produced


Bil KPI 2008/09

8.

9.

10.

Collection Efficiency

Operating Ratio

Sludge Treatment

Total Bills & Collected/ Total bills issued

OP4:Operating Cost/ RevenueRatio of operating parameters vs operating revenue, beginning with base year respective ratio.

EP1: % of sludge treatment facilities versus total no of water treatment plants

keberkesanan key performance indicators pengurusan air

Documents