PSBG COST MANGAGEMENT PORTAL

Goals Strategies Initiatives

PSBG Cost Mgt Framework

Cost Conscious Culture

Capital Investment

PSBG Cost Mgt Development

Cost Transparency

Cost Management

Cost Analysis & Monitoring

Information Centre

Cost Optimisation / Saving Opportunities

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PSBG Cost Management Framework

PSBGs Cost Management Framework provides a model for cost management implementation in PSBG. Cost Management Strategies supported with related initiatives were revamped in 2011, so as to sustain the Strategic Goals defined.

Please click on different layers to understand the framework.

PSBG Cost Management Strategic Goals

To optimize resources to meet expectations of stakeholders, including shareholders, customers, staff, and the Government To strengthen long-term competitiveness and remain as the preferred power supplier

PSBG Cost Management Strategies

Cost Conscious Culture

Capital Investment

Cost Transparency

Cost Management

Cost Analysis & Monitoring

Cost Optimisation / Saving Opportunities

PSBG Cost Management Strategies (contd)

Strategy 1

Initiatives
Capital Investment Investment Ranking & Benefits Realisation Awareness of Depreciation Burden
Look for ways to make prudent Capex investments Careful investment for long-term

Cost Management

PSBG Cost Management Strategies (contd)

Strategy 2

Initiatives
Review and develop procurement strategies
Explore work process streamlining opportunities Cost Management The unit cost model for O&M costs
Cost Analysis & Monitoring

Benchmarking studies with peer utilities on unit cost and performance

Overhead and O&M cost savings Costs optimisation and prioritisation

Cost Optimisation / Saving Opportunities

PSBG Cost Management Strategies (contd)

Strategy 3

Initiatives
Knowledge on BGs overall cost Zero-based (ZBB) budgeting
Cost Transparency

Cost Management

Costs optimisation and prioritisation

Price tags on common services

PSBG Cost Management Strategies (contd)

Strategy 4 Initiatives
Cost Conscious Culture
Cost Management

Drive people with the right initiative / focus

Focus on sustainable cost management as opposed to just cost-cutting
Mainly about optimisation and reallocation of resources to strategic initiatives

Work out the price tags on common services with line depts Encourage the sharing of results and good practices from line departments through issuance of newsletter Knowledge sharing through PSBG KPortal

Guiding Principles on PSBGs Cost Management

PSBGs cost management initiatives should be conducted: with no compromise on safety and integrity with due considerations and a balance of risks on the following 4 aspects: supply reliability service quality staff morale company image with a balance on long term sustainability and short term goals

PSBG Cost Management Development

Year

We are here 2011 Sustain the Momentum reinforced the cost conscious culture
Staffs Mindset Improve

2010

2009
Review Business Processes

CAPEX Efficiency
Review Equipment & Network Standards Enhance Stakeholder Management Prioritize Capex Projects

OPEX Efficiency

Review/Develop Procurement Strategies Maximize Asset Utilization Exploit New Business Opportunities Optimize O&M Cost Increase Cost Transparency

2008

Cultural Change cultivated a cost conscious culture

Revenue Generation

Understand
Develop Cost Conscious Culture

Milestone 10

Information Centre
Cost Mgt Strategies & Initiatives before 2011
Materials

Communication Road Show (Dec 07) Materials Cost Management Workshop for Senior Management (Jun 08) Photos Cost Management Communication to Branch Heads (Jul 08) Photos
Materials

LEAN Workshops (Sept 08) Photos

Materials

Business Plan Communication (Feb 09)

Video
Materials

Cost Management Communication to Initiative Study Team [O&M] Photos (Feb 09) Cost Management Communication to Initiative Study Team [Overheads] (Feb 09)

Photos

Materials Materials

Cost Management Workshop with North Region (Feb 09) Photos Slogan Competition (Feb 09) Photos LEAN Workshop for Regions (Apr 09)
Materials

Photos

Materials

2010 PSBG Business Planning Workshop (July 09) Photos Cost Management Recognition Ceremony Cum Green Engineer Graduation Ceremony PSBG Cost Management Newsletter
Materials

Photo

Tube

Materials

F&BS Contact List

Ms. Ava Hui: PAX 25394 Ms. Terry Hung: PAX 25392 Ms. Candy Lam: PAX 21784 Mr. Ben Wu: PAX 21615

huia@clp.com.hk terryh@clp.com.hk

candylam@clp.com.hk benwu@clp.com.hk