Natural Gas Utility 2

Natural Gas Utility 2

Posted on 05/01/2015 in Utility & Pipeline - 186
pipes

CHALLENGE: Managing Increased Activity

A multi-state natural gas utility with over three million customers was able to receive approval for significant accelerated main replacement with increased capital construction of over 250%. Today their spend is over $500 million to upgrade infrastructure. In this environment, service provider capacity to perform the work and the ability to meet schedules is key. Executive management wished to confirm alternatives and to develop a draft plan detailing the necessary organization, process, staffing, communication and other changes to adjust annual capital spending up or down by $100 million.



SOLUTION: Internal Examination, SMART Spend Assessment, Benchmarking

To address these challenges Continuum Advisory Group designed and executed an approach where provider relationships and sourcing strategy were key. One stage consisted of confirming internal capabilities and their criticality; combined with organizational design to address the issues. A second task was the application of Continuum’s proprietary SMART Spend Assessment with recommendations for strategic improvements. In addition, Continuum conducted performance benchmarking against peer companies in order to confirm the approach.



RESULTS: Improved Planning & Control, Consistent Practices, Reduced Risks

The areas of critical planning for flexing spending were identified and analyzed with recommendations as to a path forward. Key performance indicators were suggested, to improve monitoring of program performance. A path to Strategic Alliances with key material and construction service providers was described. The client benefitted from improved planning, increased project controls, highly consistent project delivery practices and reduced risks.