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PSBG COST MANGAGEMENT PORTAL

Exit

PSBG Cost MgtFramework

Goals

Strategies

Initiatives

InformationCentre

Contact F&BS

CostTransparency

CostAnalysis &Monitoring

CapitalInvestment

CostConscious

Culture

CostOptimisation /

SavingOpportunities

CostManagement

PSBG Cost MgtDevelopment

http://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Management%20Portal/Cost%20Management%20Portal(chin)v1.pps

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PSBGs Cost Management Framework provides a model for cost management implementation in

PSBG.CostManagementStrategiessupportedwithrelatedinitiativeswererevampedin2011,soasto

sustaintheStrategicGoalsdefined.

PSBG Cost Management Framework

Pleaseclickondifferent

layerstounderstandthe

framework.

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PSBG Cost Management Strategic GoalsTo optimize resources to meet expectations of

stakeholders, including shareholders, customers, staff,

andtheGovernment

Tostrengthenlong-termcompetitivenessandremainasthepreferredpowersupplier

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4

CostTransparency

CostAnalysis &Monitoring

CapitalInvestment

CostConscious

Culture

Cost

Optimisation /Saving

Opportunities

CostManagement

PSBG Cost Management Strategies

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5

Investment Ranking & BenefitsRealisation

Awareness of Depreciation Burden

Look for ways to make prudent Capex

investments

Careful investment for long-term

CapitalInvestment

CostManagement

Strategy 1

PSBG Cost Management Strategies (contd)

Initiatives

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6

Review and develop procurementstrategies

Explore work process streamlining

opportunities

The unit cost model for O&M costs

Benchmarking studies with peer utilities onunit cost and performance

Overhead and O&M cost savings

Costs optimisation and prioritisation

Cost Analysis&

Monitoring

Cost

Optimisation /Saving

Opportunities

CostManagement

Strategy 2

Initiatives

PSBG Cost Management Strategies (contd)

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CostTransparency

CostManagement

Strategy 3

Knowledge on BGs overall cost

Zero-based (ZBB) budgeting

Costs optimisation and prioritisation

Price tags on common services

Initiatives

PSBG Cost Management Strategies (contd)

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CostConscious

Culture

CostManagement

Strategy 4

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 commonservices with line depts

Encourage the sharing of results and

good practices from line departmentsthrough issuance of newsletter

Knowledge sharing through PSBG K-Portal

Initiatives

PSBG Cost Management Strategies (contd)

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Guiding Principles on PSBGs Cost ManagementPSBGs cost management initiatives should be conducted: withnocompromiseonsafetyandintegrity

withdueconsiderationsandabalanceofrisksonthefollowing4

aspects:

supplyreliability

servicequality

staffmorale

companyimage

withabalanceonlongtermsustainabilityandshorttermgoals

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2009

Year

2008

Cultural Change cultivated a cost conscious culture

2010

2011

ReviewEquipment& NetworkStandards

EnhanceStakeholderManagement

MaximizeAsset

Utilization

OptimizeO&M Cost

Review/DevelopProcurement

Strategies

PrioritizeCapex

Projects ExploitNew BusinessOpportunities

OPEXEfficiency

CAPEXEfficiency

RevenueGeneration

ReviewBusinessProcesses

IncreaseCost

Transparency

Understand

Improve

DevelopCost Conscious

Culture

Staffs Mindset

ReviewEquipment& NetworkStandards

EnhanceStakeholderManagement

MaximizeAsset

Utilization

OptimizeO&M Cost

Review/DevelopProcurement

Strategies

PrioritizeCapex

Projects ExploitNew BusinessOpportunities

OPEXEfficiency

CAPEXEfficiency

RevenueGeneration

ReviewBusinessProcesses

IncreaseCost

Transparency

Understand

Improve

DevelopCost Conscious

Culture

Staffs Mindset

Milestone

Sustain the Momentum reinforced the cost conscious

culture

We are here

PSBG Cost Management Development

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Information Centre

LEAN Workshop for Regions (Apr 09)

Slogan Competition (Feb 09)

Cost Management Workshop with North Region (Feb 09)

Cost Management Communication to Initiative Study Team[Overheads] (Feb 09)

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

Business Plan Communication (Feb 09)

LEAN Workshops (Sept 08)

Communication Road Show (Dec 07)

Cost Management Communication to Branch Heads (Jul 08)

Cost Management Workshop for Senior Management (Jun 08)

Photos

Materials

Photos

Photos

Video

Photos

Photos

Photos

Photos Materials

Photos

Materials

Materials

Materials

Materials

2010 PSBG Business Planning Workshop (July 09)

Photos Materials

Materials

Photo

Cost Management Recognition Ceremony Cum Green Engineer Graduation Ceremony

PSBG Cost Management Newsletter Materials

Tube Materials

Cost Mgt Strategies & Initiatives before 2011 Materials

http://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Strategies%20&%20Initiatives%20before%202011/Supp%20-%20Dynamic%20Windmill%20(Eng).ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Web%20Site%20Materials/Cost%20Awareness%20Comm11.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Strategies%20&%20Initiatives%20before%202011/Supp%20-%20Dynamic%20Windmill%20(Eng).ppthttp://npsmml-sspp01/Process%20Review%20Team/public/%E9%9B%BB%20%E7%B6%B2%20%E5%84%AA%20Tube/Supp%20-%20Tube.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Slogan%20Ceremony/slogan.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/%E9%9B%BB%20%E7%B6%B2%20%E5%84%AA%20Tube/Supp%20-%20Tube.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/PSBG%20Cost%20Management%20Newsletter/Supp%20-%20Newsletter.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Slogan%20Ceremony/slogan.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/PSBG%20Cost%20Management%20Newsletter/Supp%20-%20Newsletter.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/PSBG%20Cost%20Management%20Newsletter/Supp%20-%20Newsletter.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/PSBG%202010%20Business%20Planning%20Workshop/http://npsmml-sspp01/process%20review%20team/public/Cost%20Mgt%20Reg%20Ceremony%20cum%20Green%20Engineer/http://npsmml-sspp01/process%20review%20team/public/Cost%20Mgt%20Reg%20Ceremony%20cum%20Green%20Engineer/http://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Web%20Site%20Materials/LEAN%20for%20Region.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Web%20Site%20Materials/LEAN%20for%20Region.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Regions%20LEAN%20Workshop%20(Apr%2009)/LEAN%20for%20Cost%20Management.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Slogan%20Ceremony/slogan.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Regions%20LEAN%20Workshop%20(Apr%2009)/http://npsmml-sspp01/Process%20Review%20Team/public/Regions%20LEAN%20Workshop%20(Apr%2009)/http://npsmml-sspp01/Process%20Review%20Team/public/PSBG%202010%20Business%20Planning%20Workshop/http://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Web%20Site%20Materials/LEAN%20for%20Region.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Web%20Site%20Materials/LEAN%20for%20Region.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Web%20Site%20Materials/Cost%20Management%20Update_NR%20Seminar%2025%20Feb%202009.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Web%20Site%20Materials/Cost%20Management%20Update_NR%20Seminar%2025%20Feb%202009.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Web%20Site%20Materials/Challenges%20Ahead%20%20PSBG%20Cost%20Management%20Framework%20-Chiv5.pdfhttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Web%20Site%20Materials/Challenges%20Ahead%20%20PSBG%20Cost%20Management%20Framework%20-Chiv5.pdfhttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Web%20Site%20Materials/LEANhttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Web%20Site%20Materials/LEANhttp://npsmml-sspp01/Process%20Review%20Team/public/PSBG%202010%20Business%20Planning%20Workshop/http://npsmml-sspp01/Process%20Review%20Team/public/PSBG%202010%20Business%20Planning%20Workshop/http://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Slogan%20Ceremony/slogan.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Slogan%20Ceremony/slogan.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Slogan%20Ceremony/http://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Slogan%20Ceremony/http://npsmml-sspp01/Process%20Review%20Team/public/Workshop%20with%20North%20Regionhttp://npsmml-sspp01/Process%20Review%20Team/public/Workshop%20with%20North%20Regionhttp://npsmml-sspp01/Process%20Review%20Team/public/LEAN%20Workshop%20(Overhead)%20(Feb%2009)/http://npsmml-sspp01/Process%20Review%20Team/public/LEAN%20Workshop%20(Overhead)%20(Feb%2009)/http://npsmml-sspp01/Process%20Review%20Team/public/LEAN%20workshop%20(O&M)%20(Feb%2009)/http://npsmml-sspp01/Process%20Review%20Team/public/LEAN%20workshop%20(O&M)%20(Feb%2009)/http://npsmml-sspp01/process%20review%20team/public/Video/2009%20B-Plan%20Communication/http://npsmml-sspp01/process%20review%20team/public/Video/2009%20B-Plan%20Communication/http://npsmml-sspp01/Process%20Review%20Team/public/LEAN%20Workshop%20(Sept%2008)http://npsmml-sspp01/Process%20Review%20Team/public/LEAN%20Workshop%20(Sept%2008)http://npsmml-sspp01/Process%20Review%20Team/public/2008%20Cost%20Management%20Workshop%20(Jun)/http://npsmml-sspp01/Process%20Review%20Team/public/2008%20Cost%20Management%20Workshop%20(Jun)/http://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Web%20Site%20Materials/Cost%20Awareness%20Comm11.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Web%20Site%20Materials/Cost%20Awareness%20Comm11.ppthttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Communication%20with%20BHs%20(Jul%2008)http://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Communication%20with%20BHs%20(Jul%2008)http://npsmml-sspp01/Process%20Review%20Team/public/2008%20Cost%20Management%20Workshop%20(Jun)/http://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Communication%20with%20BHs%20(Jul%2008)http://npsmml-sspp01/Process%20Review%20Team/public/2008%20Cost%20Management%20Workshop%20(Jun)/http://npsmml-sspp01/Process%20Review%20Team/public/LEAN%20Workshop%20(Sept%2008)http://npsmml-sspp01/Process%20Review%20Team/public/2009%20B-Plan%20Communication/http://npsmml-sspp01/Process%20Review%20Team/public/LEAN%20workshop%20(O&M)%20(Feb%2009)/http://npsmml-sspp01/Process%20Review%20Team/public/LEAN%20Workshop%20(Overhead)%20(Feb%2009)/http://npsmml-sspp01/Process%20Review%20Team/public/Workshop%20with%20North%20Regionhttp://npsmml-sspp01/Process%20Review%20Team/public/Cost%20Mgt%20Slogan%20Ceremony/http://npsmml-sspp01/Process%20Review%20Team/public/PSBG%202010%20Business%20Planning%20Workshop/http://c/jc10668/My%20Documents/Cost%20Management%20Portal/PRT%20members.ppt

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Ms. Ava Hui: PAX 25394

Ms. Terry Hung: PAX 25392

Ms. Candy Lam: PAX 21784

Mr. Ben Wu: PAX 21615

F&BS Contact List

huia@clp.com.hk

terryh@clp.com.hk

candylam@clp.com.hk

benwu@clp.com.hk

mailto:benwu@clp.com.hkmailto:candylam@clp.com.hkmailto:mariashing@clp.com.hkmailto:chlaw@clp.com.hkmailto:chan@clp.com.hkmailto:wochan@clp.com.hkhttp://c/jc10668/My%20Documents/Cost%20Management%20Portal/PRT%20members.ppt