A report submitted in fulfilment of the end term project for SERVICE MARKETING- M&S Services to Prof. Anirban Chakraborty

WMP-2013

By: MAHENDRA SINGH WMP6026, 2012POWER PLANT E&I MAINTENANCE, TRAINING &

CONSULTANCY BUSINESS OUTSOURCING SERVICE

Table of Contents

INTRODUCTION:................................................................................................................................3

SERVICE DESCRIPTION:......................................................................................................................3

TESTING & COMMISSIONING DIVISION:........................................................................................3

TRAINING DIVISION:......................................................................................................................4

CONSULTANCY DIVISION:..............................................................................................................4

PRESENT SERVICE GAP IN THE INDUSTRY:.........................................................................................5

O&M SERVICE BUSINESS GAP IN INDIAN INDUSTRY:.....................................................................5

INDUSTRIAL CUSTOMER BEHAVIOUR:.............................................................................................13

PRE-PURCHASE STAGE.................................................................................................................14

SERVICE ENCOUNTER STAGE.......................................................................................................16

POWER GENERATION CUSTOMER NEEDS:...................................................................................17

POWER GENERATION CUSTOMER BUYING BEHAVIOUR:............................................................17

POST-ENCOUNTER STAGE:...........................................................................................................18

SPECIFIC ATTRIBUTES OF O&M SERVICE OFFERING AND SERVICE DIMENTIONS:.......................19

PRICING STRATEGY:.........................................................................................................................22

INTERNAL OPERATION DESIGN:.......................................................................................................24

EMPLOYEE MANAGEMENT SYSTEM:...............................................................................................25

CUSTOMER MANAGEMENT SYSTEM:..........................................................................................29

ABSTARCT....................................................................................................................................31

BIBLIOGRAPHY:............................................................................................................................32

NEW SERVICE TO BE INTRODUCED: INSTRUMENTATION & ELECTRICAL O&M, E&C & TESTING SERVICE

INTRODUCTION:

Globally, the electrical power industry has changed radically over the last two-three decades as a result of regulatory and technological changes. This has allowed many new investors (mostly in the private sector) to enter the market. In the modern competitive industry, asset owners face risks and uncertainties related to plant Operation and Maintenance (O&M). For many asset owners, the main driver for outsourcing includes a reduction in lifecycle cost and risks. A service provider is able to reduce cost through economies of scale and mitigate the risks leveraging technical know-how of operating similar power plants.

The first phase of growth in outsourced power O&M industry in the developed markets was driven by sheer capacity additions of IPPs and distributed generators (mainly private players). The second phase of growth is now expected to happen through enhanced penetration of outsourced services in overall O&M spend by the private sector. These two aspects are contributing to growth of power O&M services market globally. We could expect to observe a similar trend in India. Apart from the global drivers such as cost and risk mitigation, there are certain India specific drivers which make the case for outsourcing stronger in the Indian context.

SERVICE DESCRIPTION:

M&S Services supports its customers throughout the life cycle of their installations by optimising efficiency and performance. We provide the broadest portfolio and best services in the industry for both marine solutions and power plants. We offer expertise, proximity and responsiveness for all customers regardless of their equipment make in the most environmentally sound way.

Automation Services Condition Monitoring Training Services Sales & Distribution Training Services Green technology & Sustainability Consultancy Services

TESTING & COMMISSIONING DIVISION:

AUTOMATION SERVICES:

Automation services offers system integration, installation, commissioning, maintenance and repairs of control systems, instrumentation and all associated end devices, including all connections in between.

WORLD CLASS AUTOMATION SERVICES:

Our aim is to be highly responsive, flexible and versatile in providing world class automation services:

By delivering technological leadership and engineering excellence By creating value and enhancing performance of customer operation By providing total solution and high class system integration capabilities By advancing with the leading edge of technology

Scope of Automation Services

Engineering Programming Manufacturing Technical Sales Turnkey Projects Installation and Commissioning Maintenance Repair and Reconditioning Spare Parts

Areas of Automation Activities

Supply of VFDs & Soft Starters Retrofit of BOP control & Safety System Calibration activities. Up-gradation of existing WOIS systems supplied by WFI

TRAINING DIVISION:

Condition Monitoring Training Services Sales & Distribution Training Services

CONSULTANCY DIVISION:

Green Technology PMC services Business Sustainability Consultancy Services Market Research Consultancy Services

PRESENT SERVICE GAP IN THE INDUSTRY:

O&M SERVICE BUSINESS GAP IN INDIAN INDUSTRY:

Key Challenges in Power Plant O&M in India: Only 6% of IPPs have O&M experience of more than 25 years

Companies with < 25 years of O&M expCompanies with >25 years of O&M exp

Lack of Trained Manpower

Lack of service orientation. More focus on production.

Present contractors lack quality aspect of O&M services.

Contracts with IPP are not drafted properly creating service issues during execution.

Lack of awareness among the plant owner for availability of O&M service

Lack of trust on service provider capability.

Current market defragmented with only few reputed service providers & high presence incompetent service providers whose main thrust is on making money out of the business & service quality is a secondary issue.

OPPORTUNITIES FOR M&S in O&M service outsourcing:

Globally, IPPs outsource O&M activities to reduce costs and risks. Global drivers of outsourcing are-

Cost reduction: Estimates show that outsourcing of O&M processes could potentially save 15-20% direct cost over the life cycle of a plant.

Risk reduction: O&M service providers help mitigate operational risk by bringing in technical knowhow based on operating similar plants elsewhere.

Focus on core activities: Private-funded IPPs are increasingly focussing on strategic, integral activities like project finance, feedstock sourcing, sale of power – thereby outsourcing non-core activities like O&M, AMC, etc.

Specialized O&M service providers emerged as the global power market matured and same trend in India is also expected.

EVOLUTION OF THE GLOBAL POWER O&M MARKET (India Positioning)

Power industry in India is undergoing a change from being in a nascent phase to developing phase.

STAGES OF MATURITY OF SELECT MARKETS:

INDIA GROWTH:There are India-specific drivers for growth in O&M outsourcing.

Over the next five years, almost 55% of total planned capacity addition is expected from private players. So, they will be dominant players affecting the outsourcing business in India.

O&M OUTSOCURING DRIVERS (1/4): CAPACITY ADDITION

Implications & outlook :

Increased participation of entities with relatively low experience in managing power plant operations:

New private sector companies. Private equity investor backed IPPs.

Likely to run the risk of inefficiently managing O&M processes in-house. Willing to mitigate risk and cost by roping in specialized experience of service providers.

Increasing shortage in technically skilled manpower is likely to drive the need for specialized O&M service providers

O&M OUTSOURCING DRIVERS (2/4): MANPOWER SHORTAGE

Implications & outlook

Shortage of almost 27,000 personnel in technical cadre during 12th plan period (2012-2017).

Attracting scarce, specialized talent is a challenging task for private IPPs. Likewise, an established O&M company gives direct & instant access to services of skilled &

experienced manpower.

Increasing use of imported equipment by IPPs expected to create a need for reliable, local O&M service providers with technical knowhow. This is going to be tough challenge for the technical manpower in the power industry.

Implications & outlook

As demand for power equipment outpaced domestic mfg. capacity, critical equipment are now being sourced from abroad.

However, the foreign OEMs do not have a strong service presence in India – availing support services from OEMs costly & time consuming.

Creating space for JV/ partnership between foreign OEMs and local service providers.

Private players are likely to concentrate on core activities while outsourcing O&M – which is viewed as a non-core activity-

O&M OUTSOURCING DRIVERS (4/4): PRIVATE COS. FOCUSSING ON CORE PROCESSES

DEMAND OUTLOOK

With robust increase in O&M spend and increasing penetration of outsourcing, market for O&M services is likely to become significant

SUPPLY LANDSCAPE:

O&M outsourcing could help power companies to reduce risks of operation and reduce fuel expenses in the long run.

HOW SERVICE PROVIDERS COULD BENEFIT CLIENTS

1. Reduced planned outage time: Since the service providers are doing the same job they are expert in their domain & better manage the O&M part & reduce the planned outage time.

2. Reduced unplanned shutdowns3. 15-20% savings on lifecycle cost4. Fuel cost savings through efficiency improvement5. Direct access to expertise in power plant operations6. Addressing manpower shortage7. Free up bandwidth to focus on strategic activities8. Better inventory management

INDUSTRIAL CUSTOMER BEHAVIOUR: As per Lovelock and Wirtz consumers go through three major stages when they consume services: the pre-purchase stage, the service encounter stage and the post-encounter stage. We will use this framework as it is helpful because it assists academics in forming a clear research focus and direction, and businesses in identifying the stages that need the most improvement and therefore need more resources allocated to them.

PRE-PURCHASE STAGEConsumer Behaviour Key Concepts• Need awareness Need Arousal• Information search Information Sources• Evaluation of alternatives Perceived Risk• Make decision on service purchase Multi-Attribute Model

Search, Experience and Credence Attributes

SERVICE ENCOUNTER STAGEConsumer Behaviour Key Concepts

• Request service from chosen supplier or initiation of self service

Theoretical Approaches:– Moments of Truth– Role Theory– Script Theory– The Servuction Model– The Service scape/Environmental Perspective

• Interaction with service personnel Frontline Employees-Consumer Interactions The Service Environment The Role of Other Consumers Low-Contact Service Encounters

• Service delivery by personnel or self-service

POST-ENCOUNTER STAGEConsumer Behaviour Key Concepts

Evaluation of service Evaluation of service recovery Future intentions

The Expectancy/Disconfirmation ParadigmThe Attribute-Based Approach: AttributeSatisfaction, Service Quality, Service ValueService Failure & Dissatisfaction– Complaining Behaviour– Dysfunctional Behaviour– Switching BehaviourSatisfaction and the “Service Recovery Paradox”Repurchase Intentions, Trust, Engagement &Loyalty

PRE-PURCHASE STAGE

Need awareness- Need Arousal:

Industrial customers require the engineering erection, commissioning and testing services in following situations-

1. Green field & Brown field Projects- These projects are those projects which are started from scratch. The main EPC contract is awarded to a big contractor, who in turn sub contract the electrical & automation jobs to small sub-contractors. Customer is aware that it has to focus on their core area i.e. main equipment & subcontracts others jobs.

2. Operational Projects- Operation & Maintenance services are required for the running projects. The current Practice in India is to carry out these activities on their own. Since there is shortage of trained manpower & the core competence of the plants are production, the current trend in industry is to outsource the services. This trend is more prevalent in western countries but steadily catching up in India also.

3. Operational plant needs to train their manpower for technical & process improvement trainings.

4. Operational plants require condition monitoring, residual life analysis & performance monitoring test & solution services.

B2B sales organizations require soft skill & technical training for their employees. These trainings include communication skill development, sales & marketing & commercial trainings

Business sustainability & green technologies hold future for industries to survive. There is great need for the consultancy services in this segment for the industries. Though developed countries have almost adopted the green & sustainable technologies for future growth, in India also the awareness towards sustainability in increasing among corporates.

Information search - Information Sources:

The industrial customers searches the information regarding required services from following sources-

Industrial Journals & Magazines.

Internet.

Industrial forums like conference, seminars, trade shows etc.

Word of Mouth.

Evaluation of alternatives - Perceived Risk:

After careful examination of alternatives, customer evaluates the alternative on following two criterions-

1. Technical evaluation of services regarding nature of services, their scope, and technical competence in resource like manpower, tools & tackles, past experience, reference jobs completed in the industries etc.

2. Commercial evaluation: commercial evaluation includes financial health of the vendor & price negotiation.

Make decision on service purchase:

1. Technically superior vendor is given rating from the technical screening team as T1.

2. Commercially most economical vendor is given rating as L1. Normally PSU organizations go by L1 basis & Private sector organizations use both criterions & selected as per the combined preference.

3. Experience & credence plays one important role where customer wants to stay with the competent vendor with whom he has experience in past. Vendor with good credibility of service performance in the industry is given preference.

SERVICE ENCOUNTER STAGE

A number of approaches have been proposed to provide a better understanding of consumer behaviour and experiences during service encounters. Moments of truth Service encounters have been regarded as moments of Truth & the concept of moments of truth underlines the importance of effectively managing touch-points. Industrial customers prefer a clean service encounter as it is related to the day to day plant operation & productivity. Normally any deviation from agreed & expected service may attract heavy penalties including liquidated damages, consequential damages & may be permanent black listing of the firm for future business. So, moment of truth is the actual performance of the service at customer site w.r.t. the customer expectation.

This is a high engagement service job where industrial customer is engaged with the service prodder on day to day basis. In service encounters, employees and consumers both have roles to play. If either party is uncomfortable in a role, or if they do not act according to their roles, it will affect the satisfaction and productivity of both parties. The actors in a theatre need to know what roles they are playing and be familiar with the script. Similarly, in service encounters, knowledge of role and script theories can help organizations to better understand, design and manage both employee and industrial consumer behaviour.

The servuction system includes all the interactions that together make up a typical consumer experience in a high-contact service. Consumers interact with the service environment, service employees, and even other consumers present during the service encounter. Each type of interaction can either create value (e.g., a pleasant environment, friendly and competent employees, and other consumers who are interesting to observe) or destroy value (e.g., another consumer blocking your view in a movie theatres). Firms have to coordinate all interactions to ensure their consumers have the service experience they came for.

High-contact service encounters like industrial service contracts facilitate the development of high-quality relationships with consumers by encouraging consumer-employee bond building. Vendor

Employees play an important role in service encounters because consumer’s interactions with frontline personnel are a significant determinant of their satisfaction or dissatisfaction with the service firm. Customer interactions with courteous, knowledgeable and efficient frontline employees lead to an enhanced corporate image and to increased perceptions of service excellence, customer satisfaction and repurchase intentions. Similarly, employee friendliness has a positive influence on unplanned purchasing behaviour among consumers. Consumer self–employee congruency directly influences consumer satisfaction with employee relationships and their loyalty towards employees, which in turn contribute to overall consumer satisfaction with the firm.

An integrative model of the servuction model and the servicescape environment

POWER GENERATION CUSTOMER NEEDS:

TRAINED MANPOWER

QUICK SERVICE DELIVERY i.e. PLANT RESTORATION

O&M PROCESS IMPROVEMENT

RISK MINIMIZATION

BETTER INVENTORY MANAGEMENT

POWER GENERATION CUSTOMER BUYING BEHAVIOUR:

MORE EMPHASIS IS ON QUALITY OF SERVICE, CREDIBILITY OF SUPPLIER PLAYS AN IMPORTANT ROLE.

TECHNICAL SUPERIORITY PLAYS AN IMPORTANT ROLE.

PRICE SHOULD BE COMPETETIVE BUT NOT THE SOLE CRITERION OF PURCHASE.

PAST REFERENCE OF O&M PROJECT.

PAST EXPERIENCE.

POST-ENCOUNTER STAGE:

Consumer satisfaction and perceived service quality have dominated the research agenda at this stage of the service consumption process due to their association with business performance

Consumer satisfaction (expectancy-disconfirmation) and its outcomes in services

When service performance is well above the expected level, consumers might be delighted. Consumer delight is a function of three components:

1. Unexpectedly high levels of performance2. Arousal (e.g., surprise, excitement)3. Positive affect (e.g., pleasure, joy or happiness)

Consumer’s expectations might be raised once they have been delighted. This can lead to consumers becoming dissatisfied if service levels return to the previously lower levels, and it will probably take more effort to delight them in the future.

When consumers use a service, they rate its transaction quality which when combined with the satisfaction derived from key attributes (i.e. attribute satisfaction) and the perceived value of the

specific transaction then lead to a judgment of the level of overall satisfaction with a particular service experience. Over time and over many satisfaction judgments, customers then form a belief about the overall service quality a firm offers. This in turn influences behavioural intentions (e.g. purchase intentions, remaining loyal to the firm and positive word of mouth).

SPECIFIC ATTRIBUTES OF O&M SERVICE OFFERING AND SERVICE DIMENTIONS:Ascertaining hassle free operation of machinery in a power plant is its utmost priority. Maintenance

of the operative machinery makes the plant function more efficiently. M&S will have a team of

diligent members providing Operation & Maintenance of Power Plants. The in-depth knowledge of

the members will assist the customers to avail maximum benefit of the Operation & Maintenance

Services. M&S will be counted one amongst the trusted O&M Service Provider in India. Moreover,

M&S will provide professional O&M Services at prompt basis.

Operation & maintenance contract of the plant with following backup support.

Guaranteed generation / production with penalty / Bonus clause.

Energy auditing with latest instruments on periodical basis to operate the plant on the best

efficiency.

Periodical condition monitoring of all equipment’s which include.

Vibration monitoring, bearing condition monitoring, dynamic balancing of impellers etc.

Spare parts planning to have optimum level of inventory.

Availability of specialist of different discipline like Electrical, Instrumentation, Turbine, Boiler,

Rotary kiln, Water treatment on short notice from central pool.

The specialties of M&S O & M Division

Backed by technically and financially sound management with VC investment.

Experience of employees of more than two decades in Thermal Power Plants.

Experience in the Plant betterment, RLA studies, performance monitoring and testing.

Complete Electrical & Instrumentation (E&I) services

Management experience in power plant consultancy

Large base of highly dedicated knowledgeable manpower pool within the group.

Main objective of O & M

Ensure high plant availability

Achieving the target PLF

Keep up the designed plant efficiency with the selected fuel mix

Accident free plant operation

Operation with awareness of environmental impact

M&S is aware of the impact of fuel costs on variable component of generation cost and confident of

contributing towards economic generation cost by way of participating with the customer in

choosing appropriate fuel mix, tuning combustion control, attending to high flue gas temperature,

excess air, steam consumption, auxiliary power consumption, specific coal consumption, condenser

vacuum etc.

TYPICAL SCOPE OF O&M CONTRACT

Pre Commissioning

Development of Operation & Maintenance Management systems.

Prepare documents such as plant systems description, spare parts list & maintenance practices

etc.

Prepare Standing Instructions & Procedures as necessary for day to day management of the

plant

Post Commissioning

Man the power station on round the clock basis.

Manage all Operations & Maintenance in compliance with the applicable laws, regulations,

O&M manuals, Client’s requirements.

Support by deploying experts on deputation to resolve major technical problems.

Annual O&M budgeting.

Maintenance of the power station covering maintenance planning; establish and implement

preventive maintenance programs, routine, scheduled, non-scheduled maintenance,

emergency repair work, planning & execution of major overhauls.

Assist Client during statutory inspections/ and approvals.

Warranty/guarantee monitoring.

Optimization and periodical energy auditing.

Assist in periodical safety and environment audit of the power station.

MIS Reporting

Performance Audits

M&S conduct a performance audit (Quality Control) at the facility once per year on a schedule basis

and once per year on a “Surprise” basis. The purpose of the audit is to monitor plant management’s

execution of:

O & M Contract obligations,

Compliance with our policies, programs and procedures and

Maintaining a positive morale within the facility staff. The owner will be invited to either

conduct his or her own evaluation or attend the meeting with plant management, which

immediately follows our evaluation.

Consultancy

M&S will provide consultancy services to implement the best practices in equipment

management improve equipment performance and enhance the effectiveness of maintenance

management.

We have a group of condition monitoring specialists with advanced data collectors and

analysers, to carry out predictive maintenance services.

The condition monitoring methods M&S use are:

Vibration Analysis

Lube Oil Monitoring

Temperature Monitoring

Thickness Monitoring

Performance Monitoring

Relocation and Refurbishment of Used Plants

The following tasks will be point of differentiation:

Equipment Audit with Relevance to Usability and Maintainability

Audit and Review of Spares

Supervision and Approval of Refurbishment

Recommendations for Failure Analysis and Modifications

Commissioning

Completion of job to the utmost satisfaction

PRICING STRATEGY:

Plant Cost is exceptionally site specific.

Labour costs Shipping and material costs Environmental costs Site preparation costs Site impacts on performance Fuel costs Cooling water type and availability Connection costs

The CERC has specified O&M costs for thermal power stations on the normative parameters (Rs. lakh/MW), depending on the class of the machine installed by the power station. The normative O&M expenses allowed are:Normative O&M costs for Thermal Power Projects:

Total O&M Cost

Rs. Lakh/MW200/210/250 MW

300/330/350 MW

500 MW and Above

600 MW and above

Last year of tariff period 2004-092008-09 12.17 - 10.95 -O&M Expenses applicable for the new tariff period2009-10 18.2 16 13 11.72010-11 19.24 16.92 13.75 12.372011-12 20.34 17.88 14.53 13.082012-13 21.51 18.91 15.36 13.822013-14 22.74 19.99 16.24 14.62

Since we are concerned with the O&M cost only, we will consider only labour cost, site preparation cost & site impacts on performance cost only.

As per CERC the service expenditure of the O&M cost for thermal power is about 15% of the total cost. So, the per MW service cost is-

Rs. Lakh/MW200/210/250 MW

300/330/350 MW

500 MW and Above

600 MW and above

Last year of tariff period 2004-092008-09 2.434 - 2.19 -O&M Expenses applicable for the new tariff period2009-10 3.64 3.2 2.6 2.342010-11 3.848 3.384 2.75 2.4742011-12 4.068 3.576 2.906 2.6162012-13 4.302 3.782 3.072 2.7642013-14 4.548 3.998 3.248 2.924

As plant is bearing the complete liability of the manpower it engages for O&M we will charge 10% of the total cost as the service cost. Following would be advantages to the customer-

Long term liability reduction

5% saving on the existing expenditure.

Risk reduction.

Guarantee of efficient operation.

Can concentrate on core competence and not to bother of the other trivial issues like HR, Admin, training etc.

Cost charged by M&S per MW-

Rs. Lakh/MW200/210/250 MW

300/330/350 MW

500 MW and Above

600 MW and above

Last year of tariff period 2004-092008-09 1.217 - 1.6425 -O&M Expenses applicable for the new tariff period2009-10 1.82 1.6 1.3 1.172010-11 1.924 1.692 1.375 1.2372011-12 2.034 1.788 1.453 1.3082012-13 2.151 1.891 1.536 1.3822013-14 2.274 1.999 1.624 1.462

Competition Charges: Competition is also charging the same prices but M&S will offer better service in terms of response, reliability, plant efficiency, plant availability & service quality.

INTERNAL OPERATION DESIGN:

Installation & Commissioning Services Design:

M&S Installation Services division will be a premier turnkey provider of power plant installation services, offering clients experienced project supervision, estimating, rigging and tooling to execute the following:

M&S diversified experience professionals will provide the customers with services spanning all aspects of the project cycle, while maintaining a strict focus on safety, quality and schedule. M&S will provide their clients with a number of advantages, including a large and varied equipment inventory, specialized rigging plans, as well as the flexibility to adapt to site requirements and procedures. The quality and quantity of experienced personnel and solid corporate base, many of whom have served in the field, allow M&S to support customer needs and onsite efforts.

Head office:

Head office will comprise of the experienced staff with domain expertise in Electrical & Instrumentation. It will be backed by HR, Admin, Legal, Trainer, Site Controller/Coordinator, Finance, supply chain & online / offline 24X7 customer service & support staff.Once the contract is signed the pool of trained engineers / technicians will be moved to site. The will be backed by strong technical support from HQ.HQ will monitor the status of present contracts & their service quality by continuous customer feedback system & net promoter score. Availability of the trained manpower is major concern in this field, so the recruitment process & their training will be a key area of focus.

EMPLOYEE MANAGEMENT SYSTEM:

People before profits will the guiding principle behind the HR policies at M&S. M&S will be committed to the development and growth of all employees. Competence building, Commitment building, Culture building and Systems building are the four building blocks on which M&S HR systems will be based.

HR Vision: Nurture & promote competence personally & professionally to build customer service attitude among employees.

Recruitment: M&S will follow the scientific selection process. Attitude of the applicant will the prime focus & then the technical competence. Technicians/ Engineers/ commercial staff will be hired through nation-wide open competitive examinations and campus recruitments. Lateral entry provision will be there for deserving candidates as per the project requirement.

Career Advancement & Opportunities: M&S will have a well-established talent management system in place, to ensure that it deliver on the promise of meaningful growth and relevant challenges for employees. M&S talent management system will comprise PERFORMANCE MANAGEMENT, CAREER PATHS and LEADERSHIP DEVELOPMENT.

Rewards & Recognitions: M&S will have a culture of rewards and recognitions through celebration of various achievements and events and recognising the contributions behind such success.

Innovate, Create, and Compete: M&S will introduce numerous initiatives which seek to enhance the creativity, innovation, functional aptitude and teamwork of employees. These initiatives include Professional Circles, Quality Circles, TPM and TQM initiatives. Manage will organize the competition to improve the operation & maintenance process for better efficiency & productivity.

Quality of Work-Life: M&S will provide systems for a good quality of work-life for its employees. In addition to providing beautiful and safe work places, M&S will encourage a culture of mutual respect and trust amongst peers, superiors and subordinates.

Away from hectic city life, M&S will negotiate with customer for accommodation of it’s employees in customer townships & provide an environment of serenity, natural beauty and close community living. It will also negotiate with customer for the membership of welfare and recreation facilities including schools, hospitals and clubs are provided at the townships to enhance quality of life & the well-being of employees and their families. An entire range of benefits, from child care leave to post-retirement medical benefits are extended to employees to meet any exigency that may arise in a person's life.

Knowledge Management: To meet ultimate objective of becoming best O&M service and a learning organisation, an integrated Knowledge Management System will be developed to facilitate tacit knowledge in the form of learning and experiences of employees to be captured and summarized for future reference.

Training & Development: M&S acknowledges to the belief that efficiency, effectiveness and success of the organisation, depends largely on the skills, abilities and commitment of the employees who constitute the most important asset of the organisation.

M&S Training Policy will envisage a minimum of 14 man days of training per employee per year. M&S will develop their own comprehensive training infrastructure. This will be used for commercially training people of other organization also on changeable basis and act as a profit centre.

Seeking Feedback: M&S will encourage employee feedback to ensure that HR interventions and practices remain relevant and meaningful. M&S will regularly conduct Employee Satisfaction and Organisational Climate Surveys.

Selection Process:

Manpower planning: Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows:

Analysing the current manpower inventory Making future manpower forecasts Developing employment programs Design training programs

The Manpower forecasting techniques commonly employed by the organizations are as follows: Expert Forecasts: This will include informal decisions, formal expert surveys and Delphi

technique for the upcoming projects & manpower required. Trend Analysis: Manpower needs can be projected through extrapolation (Projecting past

trends), indexation (using base year as basis), and statistical analysis (central tendency measure).

Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division of M&S.

Work Force Analysis: Whenever production and time period has to be analyzed, due allowances have to be made forgetting net manpower requirements.

SOURCES OF MANPOWER SUPPLY

Advertisement Employment Agencies On campus Recruitment Employee recommendations E-Hiring

SELECTION PROCESS

Screening of Applications Selection Tests Interview Checking of References Physical Examination Approval by appropriate Authority Placement

Training:

1. Three month induction & orientation training at M&S training centre. Candidate will work on simulators besides from the theoretical class room training.

2. One month onsite training under experiences engineer.

3. Frequent small training modules (technical + management) during job.

4. External training at professional training centre.

Job design:

Responsibilities O&M Manager at M&S

Review and evaluate project organization, operating records, maintenance records, contractor performance records, budgets, policies, and procedures.

Review, evaluate, and recommend improvements in project asset management for benefit of company investment.

Review and evaluate contractor compliance. Review employment and assignment of project staff; recommend improvements for improved

project performance. Oversee and coordinates activities of project personnel and contractors to ensure project

performs in accordance with established technical, environmental, safety, and financial guidelines.

Review and evaluate project status reports and schedules. Confer with project personnel to provide technical advice and to resolve problems. Coordinate project activities with public and/or regulatory agencies. Review project operating and maintenance policies and procedures to ensure safe, reliable, and

efficient project performance compatible with the environment and public interest. Monitor and evaluate periodic testing of project systems and equipment.

Compensation will be based on:

Fixed Component: 70%

Variable Component: 30% (Variable can be achieved by ensuring benchmark efficiency, PLF & NPS).

Incentive Scheme:

Reduction of down time by 10% of the planned: additional 5% of basic salary

Increase in PLF by 5% of agreed: Additional 10% of basic salary

Increase in efficiency by 1% by efficient operation & maintenance: additional 10% of basic salary.

CUSTOMER MANAGEMENT SYSTEM:

M&S Customer Management System will include all customer-facing applications, including:

Sales Force Automation (SFA) Customer Service (CS) Sales and Marketing Management (SMM) Contact & Activity Management

M&S CRM business strategy will go beyond increasing transaction volume with power generation utility customers. Its objective will be to increase profitability, revenue, and customer satisfaction. To achieve successful CRM, a companywide set of tools, technologies, and procedures promote the relationship with the customer will be employed to increase sales & above all customer satisfaction. CRM for M&S will be primarily a strategic business and process issue rather than purely a technical issue. M&S will consider different factors like business strategies and theories, technology & budget for the adequate CRM practices. Since, its start-up organization & budget will be a constraint, it will focus mainly on adopting customer relationship strategy that is not technology centric & more customers focussed. M&S is going to operate in niche segment where the number of customers is less, so, this strategy will work without intervention of technology. Later on as business will grow, technology will come into action. Following will be key area of focus-

1. 24X7 customer support line backed with technology expert.2. Employing positive attitude & customer centric employees.3. Proper feedback mechanism for resolution of customer complaint.4. KAM for managing key clients who will be single point of contract for that account.5. Proper IT infrastructure for web meetings & customer support.6. Daily review with customer & site office people from HO.

When the business will mature, following strategies will be adopted:

1. SALES FORCE AUTOMATION: M&S will be using cloud based software to automate the business tasks of sales, including order processing, contact management, information sharing, inventory monitoring and control, order tracking, customer management, sales forecast analysis, account management and employee performance evaluation.

2. CUSTOMER SERVICE: M&S aim will be to delight customers with faster, more responsive service across every channel-from the contact center to customer social networks. With the Service Cloud M&S can meet customers wherever they are-including social networks such as LinkedIn and Twitter. M&S suppliers will also benefit from employee social networks that help them work together. With a service customer portal, customers can get service on their own, 24 hours a day. They can get case updates and search the knowledge base, all without picking up the phone. Customers can even interact in the ideas and answers communities. You'll see loyalty go up while your service costs go down.

3. SALES AND MARKETING MANAGEMENT: With proper CRM software, marketing and sales come together for better management of leads & market creation activities. It will be command center for managing and tracking campaigns across all channels-including social media-from lead capture to close. This will help to make smarter decisions about where to invest and show the impact of marketing activities on company's bottom line.

4. CONTACT & ACTIVITY MANAGEMENT: M&S Web CRM will provide a comprehensive, easily updated system for managing customers and prospects. Users of Web CRM will get a quick overview on all dialogue with the contacts: who talked to whom about what and when to follow up. CRM will organise information under individual clients and will be easy to view – this includes activities, sales opportunities, projects, emails, proposals, meetings etc. Web CRM helps to follow up on enquiries and activities. Web CRM will display activity reminders when due for the relevant user. Multiple users will be able to update the log of each customer so one can be sure all information is in one place, and nothing is lost. Web CRM will be fast and easy to update, for example: create a new contact, set up a meeting or send an email / SMS. Existing information can be merged into emails and documents including PDFs. Everything in CRM will be online and web-based. No software installation required. All one needs to have only need Internet access.

ABSTARCT

A wave of O&M outsourcing is quite visible in developed markets. Outsourcing of O&M activities has started showing its presence in India with contract award announcement by a few service providers. There are obvious challenges of managing the mind sets and expectations of IPPs. In the days to come, this could become a significant domestic industry and, along with export of skilled services, it could become an attractive global opportunity.

We have touched various points in this report like identifying the service scope in power generation industry, service gap in industry, customer needs, customer service expectation, customer behaviour, specific attributes of O&M services, pricing strategy, internal operations design and employee management system.

We conclude that there is huge market potential in this service segment & an efficient & well designed service offering can be a real success.

BIBLIOGRAPHY:

1. CERC website.

2. Alstom Website

3. Handbook of Developments in Consumer Behavior- Edward Elgar

4. CEA Website

5. TATA STRATEGIC MANAGEMENT GROUP

6. CRM- Paul Gray, Jongbok Byun

7. Wartsila technical resource

8. Salesforce.com

9. NTPC