Method to provide maintenance and service for a power network
TECHNICAL FIELD.
The present invention relates to maintenance and service for an electrical power generation, transmission and distribution network. In particular the present invention discloses a method, a system and a web site for contracting out maintenance and service work to one or more operating companies by means of a franchise agreement between a first maintenance providing company, the franchisor, and one or more maintenance and service companies, the franchisees.
BACKGROUND ART.
Electrical power generation, transmission and distribution relies on a number of distribution networks to transmit power to a series of end users . A distribution network typically includes medium voltage, low voltage and feeder sections with a diversity of switching equipment, substations, transformers, breakers, fuses, measuring and other electrical equipment situated in a diversity of locations, buildings and yards. This includes distribution equipment to more or less specialised equipment for industrial and commercial consumers, factories etc., as well as ordinary household consumers. Maintenance and service criteria are categorisable not only by type of consumer, large or small for example. Factors of location such as rural, urban or city and criticality of supply for a hospital versus a warehouse contribute to a diverse range of
requirements for maintenance and service . Maintenance and service of such transmission and distribution networks demands a broad diversity of know how, organisation, planning, financing, spare parts, access to new equipment and technically skilled labour.
By tradition, and under conditions of a regulated market with state or community owned monopolies, a utility company is a company that operates and usually owns generating and/or distribution equipment. The utility company carries out maintenance planned on a basis of the utilities own business plan and carried out using with a mixture of in-house labour and outside sub-contractors to perform the work. In practice assets are owned and maintenance staff employed or allocated on a basis of what is necessary to meet a high maintenance requirement if and when so required.
However under de-regulation market conditions have led to a requirement for maintenance and service of transmission and distribution equipment to be carried out under a more flexible cost regime consistent with ensuring an acceptable level of quality and security of power supply.
US 5,960,411 discloses various computer program means for registering new customer information under a first access to a web site, and identifying the customer on subsequent visits to the web site to transact business. US 6,029,141 disclose methods and software means for registering companies that wish to participate in an associate referral scheme via a web site. However US 6,029,141 is directed to a method for commission selling to the general public and discloses method carried out by one or more self-selected associate companies.
SUMMARY OF THE INVENTION
It is an object of the invention to provide a method for a first company to provide maintenance and service for a transmission and distribution network to the owner of the network by providing a contract means between a third party company and the network owner which is specified according to an agreement between a first company and the third company.
It is also an object of the invention to provide maintenance and service for a transmission and distribution network in more cost effective way, by for example, assigning resources to a task as needed on a per task basis .
It is another object of the invention to optimise the technical and economic know-how of a first maintenance providing company and make it available to other maintenance and service providing companies on an contractual and cost effective basis.
It is another object of the invention to provide a database that may be used to contain technical information and economic information to carry out maintenance of a power system.
It is also an object of the invention to provide maintenance and service for a transmission and distribution network to the owner of the network, by means of a third party qualified with respect to operating procedures and standards agreed by the network owner .
These and other objects are realised by a method according to claim 1, a system according to claim 16, a database according to claim 20 and a web site according to claim 27. The invention may be described as a method to provide maintenance and service for a power network so as to use the installed assets of at least a part of the network in a more cost effective way. This is achieved by issuing specified maintenance and service tasks in the form of Work Orders to maintenance companies operating under a franchise agreement to a first company, wherein said first company has an overall contractual responsibility to a network owner, hereafter referred to as a Utility, for network maintenance. When a Work Order is issued to a franchisee, the Work Order becomes a contract between the franchisee and the network owner.
The overall contractual responsibility is defined in a so-called frame contract between the first company and the network owner . In a preferred embodiment of the invention, the frame contract is a performance based contract in which overall performance is periodically measured. Performance is preferably based more on quality parameters such as delivery time, availability (uptime) , or capacity than on traditional cost-based pricing. By means of the performance based contract embodiment maintenance and service performance over a base may be financially rewarded and performance below the base may, as a further option, be financially penalised.
A database means is used to make technical information owned by the first company available to the franchisee companies . The database also contains access means to suppliers of power network equipment. The database is configured such that independent maintenance and service
providing companies may access the database under the terms of a franchise agreement in a timely and effective fashion. A web site is provided in one embodiment of the invention as a means for accepting and storing work orders, communicating work orders to franchisees, issuing work orders, giving franchisees specified access to information in the above databases and collecting information about the progress of work orders.
The main advantage of the invention is that an electrical power transmission and distribution system may be maintained in a more cost effective way. Valuable company assets such as technical competence and know-how, as well as more traditional assets such as spare parts and tools, are allocated in a rational way. The assets are divided such that the franchise giving company retains and maintains the broad know-how and deep technical competence. A franchise taking company, which effectively concentrates a limited technical competence, and certain specialised operating skills such as specialised local knowledge of the network, gains access to those assets in a way economically regulated by means of the franchise agreement .
Another advantage of the invention is that training and education provided by the first company develops know how on an as-needed basis in different operating regions of the power network.
The advantage of a performance based preferred embodiment of the invention is that maintenance and service performance as provided may be measured according to a predetermined measure and performance above base financially rewarded. The financial benefit to the
Utility of reduced maintenance cost for electricity delivered is also shared with the first company. Optionally and depending on the performance based values a financial benefit may also be distributed by the first company to the franchise companies . In this way the benefits of a more cost effective way to carry out maintenance and service according to a preferred embodiment of the invention are shared, rewarding superior performance and motivating continued improvement .
A further advantage of the invention is that an automated issue and job tracking for work orders provides a source of information to automatically calculate and optimise requirements for the local performance of maintenance, and also generate progress reports and data for wages, expenses and invoicing. This data may be further processed by the first company to provide an up-to-date information source for equipment quality and reliability purposes.
Another economic advantage of the invention is that the number of physical asset pools, including pools such as of spare parts and new equipment, tools and vehicles etc is rationalised, thus tying up less capital in installed and other physical inventory. This results in an overall reduced cost of financing so that maintenance may be provided in a more flexible and cost effective way.
Another advantage is that the method according to the invention may be adopted for a part or whole of any power network in more or less any part of the world. The invention may be operated over large distances or even between locations crossing national boundaries.
BRIEF DESCRIPTION OF THE DRAWINGS
The present invention will be described in more detail in connection with the enclosed schematic drawings .
Figure 1 shows a simplified diagram of a plurality of contractual relationships comprised in a method and system according to an embodiment of the invention for providing maintenance and service for a power network.
Figure 2 shows a plurality of information flows in a simplified diagram of a method and system according to an embodiment of the invention.
Figure 3 shows a plurality of cash flows in simplified diagram of a method and system according to an embodiment of the invention.
Figure 4 is a flow diagram for handling Work Orders according to an embodiment of the invention.
Figure 5 is a schematic graph of a plurality of annual maintenance costs according to a performance based embodiment of the invention.
DESCRIPTION OF THE PREFERRED EMBODIMENTS Figure 1 shows contractual relationships between a Utility 2 owning a network, and a first Company A, indicated by the number 3. Company A has an overall contract to provide maintenance and service to the
Utility. This is shown by the solid line 1.1 between Company A and the Utility. Company A further has a contract with one or more local maintenance and service companies, hereafter called franchisee companies, as
shown by dashed lines 1.2 between Company A and each of one or more franchisee companies such as Ll, L2. When a franchisee company accepts a Work Order, the Work Order is a contract between the franchisee and the Utility, shown by the outline lines 1.3 between the Utility and each franchisee.
Figure 2 shows a part of a network, a Physical Grid 1 and an owner of the network Grid in the form of a Utility 2. The overall maintenance provider 3, Company A, which is also a franchisor, is shown and a plurality of franchisee companies are represented as Ll , L2. Company A is shown to comprise at least one database 6. A plurality of information flows are shown. A Work Pool 7 is shown, which contains information about Work Orders . A Work Order information flow 2.2 is shown which may include information about the job itself as well as prices and delivery times. Technical Information and Data 2.3 is specifically a flow of signals and technical information to or from network equipment and Company A, the Work
Pool, and the Utility. The Technical Information and Data 2.2 includes data such as measurement values, notifications, error signals or alarms. Technical Support is an information flow which is shown as available to franchisee companies Ll, L2 from Company A indicated as a solid black line 2.4. An information flow called Decision Support 2.1 is shown between Company A and the Utility.
Signals 2.3 from the Physical grid 1 are received by the Utility, or by Company A and by a Work Pool 7. Utility 1 sends a Work Order to Work Pool 7 in response to a planned maintenance requirement for the Physical Grid 1. Alternatively Company A may send Work Orders to the Work Pool.
The franchisees, the local companies Ll, L2 undertake under the terms of the franchise agreement to comply with
-all operating procedures and standards as laid down in documentation by Company A
-a qualification procedure to demonstrate that the franchisee complies with operating procedures and standards as laid down by Company A
-pay to Company A franchise fees as defined in the franchise agreement .
The franchise agreement that Ll, L2 concludes with the franchisee includes a right of access to
-Company A's know-how,
-Company A's pool of spare parts and new parts at given prices
-the Work Pool containing Work Orders
-a limited right to use specified trademarks owned by
Company A
-a limited right to advertise that the franchisee has been qualified by Company A
-training and education organised by Company A
Franchisee companies for local maintenance and service, companies Ll, L2 and others, carry out work defined in one or more Work Orders collected from the Work Pool 7.
In the preferred embodiment of the invention for planned operations the method and system works as follows. A Work Order is sent by the Utility, or optionally Company A, to the franchise Work Pool 7. This may be for example, to re-activate the oil in all transformers in a given switchyard. One of the local maintenance companies with a franchise agreement, Ll or L2 etc, which is qualified to accept that type of job, accepts the Work Order which is
then issued as such by the Work Pool. When the Work Order is issued it becomes a contract between the franchisee company and the Utility. Allocation of the Work Orders is primarily determined in a local franchise agreement and may be based on a factor such as geographical location, type of work, price of job, size of job or a combination of factors .
Figure 4 shows a flow diagram for the Work Order. A Work Order is substantially either planned or for unplanned work. Unplanned work includes incidents, power outages, equipment failures, power shortages etc. A planned activity is provided by structured maintenance planning and prioritisation. Either a planned or unplanned event leads to generation of a Work Order, which is categorised at least by Scope of Work, which includes the type of tasks involved, a schedule for delivery times and prices, and type of Work Order.
Each Work Order is placed in the Work Pool and a notification is sent to each franchisee describing that the Work Order has been announced and stating a deadline or a time-out for response.
The Work Order may be assigned in one of several ways.
-First come, first served, in which the first franchisee that answers is allocated the Work Order, or -Work Order bidding, in which a franchisee bids for a Work Order for a price and/or to a delivery schedule. -Time Out, in which a obligatory assignment takes place when no response is received from selected franchisees before the deadline for responses . In this case the Work Order is allocated to a franchisee by the Work Pool .
-Pre-selection of franchisee based on the type of Work Order, qualifications of the franchisee, capacity of the franchisee or other criteria.
In the case of Work order bidding, it will usually be the case that one franchisee can carry out a specific Work Order faster or cheaper than another due circumstances such as to location and distances to site, available capacity to provide maintenance under the time scale of the Work Order, possession of particular tools or specialised skills .
After the franchisee has been selected the scope, price or cost and schedule for delivery may be decided in a further negotiation.
The franchisee that is allocated the Work order, Ll or L2 etc., carries out the work according to the standards laid down in the franchise agreement and the operating procedures and technical standards covered by the agreement. The franchisee reports progress of the Work Order in a timely way according to the contents and schedule of the Work Order.
In the preferred embodiment the frame contract is a performance based contract for which overall performance is periodically measured. Performance based values or measures may be specified for one or more parts of the overall maintenance requirement. The frame contract between Company A and the Utility specifies how performance shall be measured, and Work Orders shall be priced.
Pricing of Work Orders
Pricing of Work Orders is carried out according to predefined principles in the frame contract. Typically but not exclusively pricing will be based on one of four alternatives, with combinations of pricing alternative possible in the case of jobs containing many operations or complex operations . The four alternatives in the frame contract are
-on a time and material basis -fixed price for a standard operation
-subscription fee for a continuous service by a franchisee regulated by a franchise agreement in which performance is specified
-franchisee bids for a Work Order in which such criteria as lowest price, fastest delivery time are used to allocate the Work order.
Performance Base
Generally performance is preferably based more on quality parameters such as
-de1ivery time ,
-availability (uptime) of an equipment or a service, -capacity,
-inventory value of installed equipment base -remaining lifetime of installed equipment
-asset value of components, for example, spare parts.
Quality parameters include for example costs or values related to availability. For example remaining lifetime of installed equipment is a quality measure. If no maintenance was performed, maintenance costs would go down but so would remaining useable lifetime for installed equipment. Thus maintaining a specified remaining lifetime for asset pools while still reducing
maintenance costs is a useful performance and quality measure. As an another example there is holding or sharing a certain inventory value for spare parts to a minimum and still providing spare parts according to specified response time, delivery time, to meet a guaranteed availability (uptime) for an equipment or service .
Figure 5 shows schematically in a graph an example of performance based values or measures that may be included in a frame contract. Figure 5 shows maintenance cost on the y-axis and time in years along the x-axis . An Agreed Base maintenance cost related to achieving a specified standard inventory value of installed equipment in the Power Grid (as well as spare parts, new equipment or both) is shown which is lower than the Previous maintenance costs before the start of the contract period.
Performance is evaluated over a period by the Utility, based on total maintenance costs or, in this example, inventory costs in proportion to total electricity delivered over the same period. An Actual maintenance cost is shown which delivers better performance, that is reduced inventory cost for the same functional availability, shown as Additional performance. This saving is then distributed by the Utility to Company A. When Company A alone has taken a risk, in planning and specifying spares held by Company A, for example, the saving is kept by Company A. In a case or a part of the maintenance requirement where the franchisee companies have participated in a risk, then a distribution of rewards or penalties may be included in franchise terms .
In other areas , such as when Company A takes more responsibility for some decisions without consulting the Utility on every detail, for, key decisions only, such as when also supplying Decision Support, then rewards and penalties may be distributed only to Company A.
By means of the performance based contract embodiment maintenance and service performance over a base may be financially rewarded and performance below the base may, as a further option, be financially penalised.
Figure 3 shows cash flows between Company A, franchisee companies and the Utility in respect of franchise fees and of performance related rewards or penalties . The frame contract between Company A and the Utility stipulates the basis for determining performance. This is generally a measure of the total electricity provided by the network in relation to the gross cost of maintenance and service. The Utility reviews performance periodically as stipulated in the frame contract and calculates a performance reward or penalty for the period. The Utility then applies that financial reward or penalty to Company A.
In an additional aspect of the invention a frame contract and a franchise agreement may include terms for the further distribution of rewards or penalties to be distributed among the franchisee company as well, according to percentage of total maintenance turnover for the Utility carried out by each franchisee. Terms may include upper limits for rewards and/or penalty amounts or percentages . For example if maintenance costs for the Utility have been reduced by 10%, then the Utility
returns a part of that figure to Company A which in turn distributes part among the franchisee companies .
Also shown in Figure 3 is a franchise fee paid by each franchisee to Company A for the right to hold a franchise. The franchise fee is typically based on a percentage of annual turnover.
Distribution of the majority of Work Orders from the Work Pool, or from the Company or the Utility where necessary, is best carried out using conventional web server or web site means. The construction of web sites based on Hypertext Markup Language (HTML) and developments and extensions of it, combined with Transport Control Protocol/Internet Protocol (TCP/IP) communications, is a well known science and technology. There is a vast amount of web site creation, managing, security and other software and technical expertise available, and so technical details or program extracts for exactly how a log-in is received and validated and so on will not be described here in any detail.
A Web site accessible through the Internet, or through a private data network where necessary, may be set up with appropriate security measures to allow the quick and automated collection, storage, sending and receipt of Work Orders .
In principle the web site provides a series of functions according to the invention as follows . The first company, Company A provides and maintains the web site. Company A, the Utility 2 and all franchisee companies holding a valid franchise may log-on to the web site and be validated for access according to their status and identity. The web site comprises computer program means
to identify and validate log-ons of persons or computers pre-identified as employed by or belonging to the first company, the Utility and any franchisee company. Log-ons are recorded according to both corporate identity and personal identity. Work Orders are sent by the Utility or by Company A to the web site where they are received and stored in the Work Pool 7 using data storage means such as a data server. Franchisee companies log-on to the site, navigate to information about and access for the Work Pool. At the Work Pool access, a franchisee company may accept a Work Order according to a pricing method or instead be allocated a Work Order under the Time Out condition as previously described.
When a franchisee examines a Work Order posted in a Work Pool on the web site the process is made quick and simple by communicating electronically. A suitable format such as a web page based on software means such as Java (Trade Mark) type scripting or frames may be used to provide a automated basis for a franchisee to log in, and thus be identified, and then navigate to a Work Order access page or frame and:
-examine a Work Order in the Work Pool
-register an acceptance or -submit a bid or
-request further information or -request a discussion, etc..
On acceptance of the Work order the Work Order details may be downloaded to the Franchisee for job execution or optionally not downloaded and the details accessed instead at the web site. Franchisee companies may after logging-on also access one or more databases such as a database (6) containing Company A's technical know-how
and information about the power network as described above. Access to information by a franchisee company via the web site may be restricted according to the Work Order the franchisee company has in progress, qualification status of the franchisee company and/or other factors .
The communication of Work Orders via a web site means is also arranged to include software code or computer programs that monitor and automatically log the process of sending, receiving, and in due course, fulfilling a Work Order. Progress of Work Orders is available in the form of technical or management reports for use by the first company, the franchisor, as well as for example in summary form by the Utility. Such Work Order data may be used to facilitate invoicing or provide automated invoicing by the franchisee company to the Utility on completion of a Work Order. Access to Work Order progress reports and other information and displays accessible via the web site may be configured for Company A and/or the Utility company.
A minority of Work Orders of a pre-determined type, concerned for example with equipment failures, outages or alarms, may alternatively be communicated using private networks and or highly secure communication means such as a Local Area Network (LAN) , Wide Area network (WAN) or a leased telephone line not normally accessible from the Internet. Such Work Orders for outages may also be generated automatically by the Work Pool.
Company A, the franchisor, collects the relevant technical information about the power network necessary for maintenance reasons . This may include information
that it owns and has measured, calculated, modelled or otherwise derived, and stores that information in one or more databases, shown schematically in Figure 1 as database 6. The databases are accessible in a suitably structured way to the franchisee companies. Typically a database contains operating procedures and technical standards for maintenance together with some or all of information such as -an inventory listing of individual equipment in the power network
-technical specification information for equipment in the power network,
-lists of spare parts and new parts for equipment in the power network, -details of tools, specialised vehicles etc and service equipment available for maintenance tasks -software means for testing, configuration, calibration and other maintenance functions in the power network. In the preferred embodiment of the invention the database is arranged by the franchisor to be accessible at least in part via a web server or web site means by a franchisee. Thus the franchise can simply and economically access the necessary information by logging on to the server or web site using a predetermined identification means . Where necessary the access to technical or financial information in the database is restricted. It may for example be restricted according to a type of Work Order that the franchisee is known to have in progress. Access may also or alternatively or in combination be arranged according to the type of job the franchisee is registered as being qualified to carry out according to the qualification process conducted by Company A.
In a further embodiment of the invention, the database additionally contains access to decision modelling and decision making information and related software means . This is provided on the basis of the franchisors commercially developed design and investment know-how to enable a franchisee company to make better decisions about, for example, repairing or replacing equipment in the power network. Such decisions may also include decisions about expansion of the power network, that is, changing the Physical Grid to provide more power supply in some way. Such investment decisions require deep and sophisticated technical and financial knowledge. The technical knowledge may include knowledge and experience necessary to derive appropriate specifications, including physical dimensions, load capacity, cooling requirements etc for a new equipment in order to meet a particular electrical power requirement. The financial investment decision involved may also be complex. The decision modelling aspect of the invention may be used by Company A to provide Decision Support to the Utility, as indicated in Figure 2. Company A may also by this database means give a typically relatively small and specialised franchisee maintenance company economic access and use of a know-how asset which is typically only developed by and available to a much larger company.
In another embodiment of the invention an unplanned maintenance operation, for example a result of an equipment failure or a power outage, may also be included in the franchise agreement. When failures occur, alarms can be sent directly to the Work Pool which automatically generates a Work Order. Alternatively, and/or depending on the type of alarm, the alarm signal may be sent to
Company A or even the Utility, either of which may instead generate the Work Order.
It is to be understood that the term franchise is used to describe a type of agreement that is well known in many industries including consumer products, food and technical services . The word franchise is also used in this description to describe a legally binding agreement based on a written contract and includes any legally binding form of contractual relationship. Any contractual relationship between parties such as those described in this description for maintenance and service purposes such as those described lies within the scope of the claims included in this description.