Dhaka Electric Supply Company Limited (Desco) Overview
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CHAPTER-1
Dhaka Electric Supply Company Limited (DESCO) overview
After the creation of an independent Bangladesh, in 1972, the first Government of Bangladesh, in an effort to speed up the investment in the sector issued an Ordinance creating the Bangladesh Power Development Board (BPDB) as the successor organization of the power side of EWAPDA. The Ordinance recognized the divergence of energy related issues in development. During 1972 to 1995, BPDB has increased the generating capacity in the country to 2818 MW, and the length of its 230 and 132 KV transmission networks to 419 KM and 2469 KM. For the first time in December 1982, the eastern and western halves of the country were electrically connected through the commissioning of double circuit 230 KV transmission line across the Jamuna riever energized at 132 KV between Ishurdi and Tongi called the first East-West Interconnector. Generation sources were diversified to include a 230 MW hydropower station at Kaptai on the Karnaphuli river and natural gas and imported fuel based, open and combined cycle power plants at different locations of Eastern and Western part of the country. The distribution networks of all major towns and cities had been linked through 230 KV and 132 KV inter-ties.
In 1990, government issued an ordinance, which was subsequently enacted as an Act transferring the 132 kv, 33 kv Transmission and distribution system in the Greater Dhaka Area including the Metropolitan City to a newly created Government agency called the Dhaka Electric supply Authority (DESA). This was done to lessen the administrative burden on BPDB,s management by relieving it of the burden of managing about 50 percent of the energy distribution in the entire country.
The areas covered by the DECSO are shown in a map on next:
Figure: DESCO area map
Unit one
The Quality Circle:
Formation, survey and problem collection
UNIT-1, CHAPTER-2
Quality circle
A quality circle is a volunteer group composed of workers, usually under the leadership of their supervisor, who are trained to identify, analyze and solve work-related problems and present their solutions to management in order to improve the performance of the organization, and motivate and enrich the work of employees.
It is a participatory management technique that enlists the help of employees in solving problems related to their own jobs. Circles are formed of employees working together in an operation who meet at intervals to discuss problems of quality and to devise solutions for improvements. Quality circles have an autonomous character, are usually small, and are led by a supervisor or a senior worker. Employees who participate in quality circles usually receive training in formal problem-solving methods—such as brain-storming, pare to analysis, and cause-and-effect diagrams—and are then encouraged to apply these methods either to specific or general company problems. After completing an analysis, they often present their findings to management and then handle implementation of approved solutions.
Quality circle has some important features: * Small group of employees say 5 to 10 from the circle. * Homogeneous group, not an inter-departmental or inter-disciplinary one. Designations may differ, but work engagement should be common. * Voluntary participation, no coercion or pressure on membership. Everybody participates and contributes in the process of decision making. * QCs should meet for about an hour every week. Too long intervals are not recommended. Regularity is of great importance. * Here problems are chosen, not given. Members are responsible for identification of a problem and implementation of the solution * Since the work is related to quality, productivity cost reduction safety etc. the total performance of the organization improves. * Decision by consensus, not be majority. * Performance oriented, not problem focused. * Bottom-up approach. * Management blessed, not management directed * Aims at the quality of work life * Does not replace or substitute any of the systems or structure
A quality circle is composed with following responsibilities:
Member
Member is the person in quality circle who comes naturally to identify work area problems, analyses them and finds proper solutions. Circle leader
Every member is a potential leader. In a quality circle leader is elected democratically among the members. The leader once is elected need not be permanent. After the completion of the project another member can take over as a leader.
Facilitator
A facilitator is selected to organize, to coordinate and to help the circle activities who work as a philosopher or guide to the circle. The facilitator should be reasonable standing and position in the organization so that he can make things done. A facilitator trains the QC members in undertaking QC projects and helps them to put up presentations before the management.
Steering committee
The function of steering committee is to review the quality circle operations in the organizations and provide the necessary support and help in to the circles. The steering committee also ensures adequate middle management involvement in quality circle activities.
Executive committee
Executive committee is set up to formulate policies and to incorporate various changes from time to time to make the quality circle successful. Actually the executive committee works as an advisory committee to guide the steering committee and the facilitator. Executive committee ensures motivation by showing the top management support to the circle activity.
UNIT-1, CHAPTER-3
Formation of Quality circle
The main reason behind forming the quality circle is to identify, analyze and solve work-related problems and present their solutions to management in order to improve the performance of the organization and improve the current condition of service.
As DESCO was facing with some problems like theft of transformers, illegal power connections, difficulty of bill payment and some others in their power distribution system, they were seeking for a solution of it. We the members of the group Realm offered them that we can solve their problem by formulating a quality circle (QC) and give them a proper guidance to solve the problems so that they can develop their power distribution system
As per being informed by DESCO we presented our group Realm in quality circle formation for the salvation of their problem. After DESCO finalized and confirmed the formation of the quality Circle, The first meeting held. The 5 members of the Quality Circle were present at the meeting and the following things have been decided:
1. The name of the Quality Circle was determined and selected. All the members of the Quality Circle presented several names. The name “Realm Problem Solvers” was selected as the name of the Quality Circle.
2. A leader of the Quality Circle was needed to start the function of Quality Circle. So a leader was elected through vote. The leader is Syed Musfiqul Alam.
3. As The Quality Circle must perform their meetings in a regular basis, the venue and the schedule was set. The venue was set at the Conference room at DESCO head office and the meeting will be held every Monday, 11.00 am to 2.00pm.
These things were decided at the first meeting and these rules was maintained through until the problems were collected, selected, analyzed, solved and presented.
The details of the quality circle Realm Problem solvers are given below:
responsibility | name of assigned person | Member | SM Munim | Circle leader | Syed Musfiqul Alam | Facilitator | Arpita Roy Chowdhury | Steering committee | Mehnaz Rahman | Executive committee | Ahnaf Anjum |
UNIT-1, CHAPTER-4
Quality circle survey and problem collection
Here the problems are figured out with P1, P2, P3, P4 and P5 regarded as following:
P1 = problem regarding due and difficulty of bill paymentP2 = theft of transformers increasinglyP3 = low quality power cables in distribution lineP4 = line disconnection without noticeP5 = illegal electricity connections |
* P1 shows the low number of satisfaction throughout the survey because it has got 20 dissatisfied customers out of 25. * P2 also shows the low number of satisfaction throughout the survey as it has find out 19 dissatisfied customers out of 25. * P3 has shown the less number of dissatisfied customers than those of earlier as it has 12 dissatisfied customers out of 25. * P4 has shown that the only 9 customers out of 25 are dissatisfied. * P5 finally has shown that the least numbers of customers out of 25 are dissatisfied and that is only 5.
According the survey result we can see that we should solve the problems in their priority basis. And in this way we can improve the power distribution quality of DESCO. So we are giving priority for the problems chronologically regarding the customers’ evaluation from the survey.
Customers’ evaluation table Problemno | Problem name | Total customers 25 | Priorityof solving | | | Satisfied/Not concerned | dissatisfied | | P1 | problem regarding due and difficulty of bill payment | 5 | 20 | 1st | P2 | theft of transformers increasingly | 6 | 19 | 2nd | P3 | low quality power cables in distribution line | 13 | 12 | 3rd | P4 | line disconnection without notice | 16 | 9 | 4th | P5 | illegal electricity connections | 20 | 5 | 5th |
Unit two
Problem Identification, Analysis, Solution and Management Presentation
UNIT-2, CHAPTER-5
Problem-1: Due and difficulties of bill payment
5.1 problem identification * what is due of bill payment? * what are the difficulties of bill payment?
5.2 Problem Analysis
* Why due of bill payment happens?
There are many reasons behind the due of bill payment such as * If bill payment time is too short then people face problems to pay bill in due time. * If there is low quality of warning and management remains unaware about this problem. * When punishment process against due is slow then due of bill payment occurs.
* Why paying bill is difficult?
Paying bill is sometimes difficult when the date of bill paying time is too short. For that after getting bill people become unable to pay bill within this short time.
Another problem is complex bill paying system. If there remains no sufficient way and communicating system to pay bill then people face many complex situations during payment.
* Who are responsible for the due of bill payment and Difficulty of bill payment?
The people who deliver the bill and the management are responsible for the due of bill payment and Difficulty of bill payment.
5.3 Solution of the problem:
As we can see late payments and difficulty of bill payments is the biggest problem that causes dissatisfaction among the customers. Late payment and Difficulty of payment are two different problems that must be solved in order to reduce the current dissatisfaction among the customers
* Necessary steps to solve the problem:
Due of bill payment is a very familiar and big problem that the customers often face. Due of bill payment can be solved by taking following steps.
1. Ensure the early delivery of bill payment sheet to the customers.
2. Clear cut and strict rules about the payment.
3. Enlarged payment time for customers.
4. Faster and better service for the customers.
5. Finding out the core problems and take suggestions from the customers.
These are the solutions that must be taken to solve the existing problem and regain the customer satisfaction.
5.4 Management presentation
As we firstly gave the priority to the problem entitled due and difficulty of bill payment.
While we give our light on this problem, we first looked at the survey we made. The survey shows that 20 customers out of the 25 customers face this problem. The survey shows that due and difficulty of bill payment is a major cause behind the existing dissatisfaction and a large
Numbers of customers are facing or faced the problem in the past. We have to solve this problem to regain the Dissatisfaction which exists among the customers.
We have find out some causes behind the problem due and difficulty of bill payment. They are: 1. Bill payment time being too short then people face problems to pay bill in due time. 2. There is low quality of warning and management remains unaware about this problem. 3. When punishment process against due is slow then due of bill payment occurs. 4. Complex bill paying system is also a big problem. If there remains no sufficient way and communicating system to pay bill then people face many complex situations during payment.
These causes must be eliminated in order to tackle the problem due and difficulty of bill payment. The following steps are presented as we hope taking these steps will solve the existing problem and help regaining the satisfaction among the customers.
The necessary steps are: 1. Ensure the early delivery of bill payment sheet to the customers. 2. Clear cut and strict rules about the payment. 3. Enlarged payment time for customers. 4. Faster and better service for the customers. 5. Finding out the core problems and take suggestions from the customers.
The Quality circle believes that these steps are necessary and by taking these steps the problem due and difficulty of bill payment will be easily solved. We want DESCO to take these solutions on light and bring changes as we proposed to the company.
UNIT-2, CHAPTER-6
Problem-2: Theft of transformers
6.1 Problem Identification
* What is theft of transformers?
Generally electricity theft can occur through fraud. Theft of transformer means stealing of transformer by someone. Power theft carries deadly risks. Many thieves have paid for the power they are stealing with their lives. But the danger does not end with those who are engaging in illegal activity. Most electrical theft crimes occur through meter tampering, bypassing meters, and tapping power lines. Other less frequent crimes include tapping into neighboring premises, using illegal lines after being disconnected, self-reconnection without consent, and electrifying fences. Possessing fraudulent electricity bills is also a federal crime and is punishable by law.
6.2 Problem Analysis:
* Why it happens?
Electricity theft takes place everywhere. This happens because of lack of security. If there remains absence of security guard then it may happen. Sometimes the unconsciousness of security guard and because of their neglect it may happen.
* When it happens?
It happens at night and during load shedding. When people are sleeping at night then they take the chance of stealing transformer.
* Who are responsible for this?
Area night guard and administration are responsible for transformer stealing. The people who involve stealing a transformer make a link with the area night guard. Sometimes administration also helps them to get bribe from them.
6.3 Solution of the problem:
Theft of transformers increasingly is another big problem that often causes a huge amount of dissatisfaction among the customers. The increasing number of occurrence causes load shedding for a longer and at an unwanted period that makes the customers dissatisfied. To solve this big problem, DESCO must take the following necessary steps to regain satisfaction among the customers:
1. Ensure higher security to reduce the increasing number of theft. 2. The number of load shedding must be reduced, because the thefts are often done while load shedding. 3. The transformers must be protected with advanced protection kits which are very reliable. 4. Must maintain a strong communication with customers as they can warn the company about suspicious attitudes around transformers. 5. The company must maintain a routine check to ensure the existence of transformers in proper place.
6.4 Management presentation:
As we secondly chose the problem theft of transformers here is the management presentation by our quality circle.
While we give our light on this problem, we first looked at the survey we made. The survey shows that 19 customers out of the 25 customers face this problem. The survey shows that theft of transformers is a major cause behind the existing dissatisfaction and a large number of customers are facing or faced the problem in the past. We have to solve this problem to regain the dissatisfaction which exists among the customers.
We have find out some causes behind the problem theft of transformers. They are:
1. In the absence of surveillance the illegal business has been continuing 2. A new transformer costs about Tk 400,000 while a stolen one sold in the back-market at half the price after some repair, 3. Rural consumers of Rural Electrification Board and factory and industrial units buy second hand transformers so the thieves took this as their main target of re-sell. 4. Sometimes, the organized crime groups steal and dismantle transformers to sell molten copper and their parts.
These causes must be eliminated in order to tackle the theft of transformers problem. The following steps are presented as we hope taking these steps will solve the existing problem and help regaining the satisfaction among the customers:
The necessary steps are: 1. Close surveillance by the authority 2. Ensure higher security to reduce the increasing number of theft. 3. The number of load shedding must be reduced, because the thefts are often done while load shedding. 4. The transformers must be protected with advanced protection kits which are very reliable. 5. DESCO must maintain a strong communication with customers as they can warn the company about suspicious attitudes around transformers. 6. The company must maintain a routine check to ensure the existence of transformers in proper place. 7. DESCO can make a significant number of observation booths to watch up and thus they can reduce the theft of transformers.
The Quality circle believes that these steps are necessary and by taking these steps the problem theft of transformers will be easily solved. We want DESCO to take these solutions on light and bring changes as we proposed to the company.
UNIT-2, CHAPTER-7
Problem-3: Low quality power cables in distribution line
7.1 Problem Identification:
* What are low quality power cables?
Copper is the electrical conductor in many categories of electrical wiring. Copper wire is used in power generation, power transmission, power distribution, telecommunications, electronics circuitry, and countless types of electrical equipment. Using low quality power cables means not using the copper cables. Instead of using quality cables in the supply line sometimes the accidents like power cut in dull and unrest climate, short circuit ect occurs.
7.2 Problem analysis:
* Why this happens?
This happens for not using copper cables. When the authoritative persons use other cables instead of using copper then it happens. * When this happens?
When the contract is ready with tender then it may happen. * Who are responsible?
All are responsible for that such as engineer, contractors, and customers.
7.3 Solution of the problem:
Using low quality power cables is a very common problem that causes major amount of dissatisfaction and system loss. Power cables are very important element of the service system of DESCO. Using low quality power cables must tackled by necessary steps like these: 1. The quality of the cables must be better and world class. 2. The cables must be checked on a routine to avoid short circuits. 3. The company mustn’t use damaged cables and the damaged cables must be replaced with newer ones. 4. The capacity of the cables must be ensured.
These steps are necessary solve the power cable problem
7.4 Management presentation:
Now our next step to solve the low quality power cables in distribution line problem.
While we give our light on this problem, we first looked at the survey we made. The survey shows that 12 customers out of the 25 customers face this problem. The survey shows that low quality power cables in distribution line is another major cause behind the existing dissatisfaction and a large number of customers are facing or faced the problem in the past. We have to solve this problem to regain the Dissatisfaction which exists among the customers.
We have find out some causes behind the low quality power cables in distribution line problem: 1. Sometimes assigned people intend to make a corruption and they took the money from the electrification process. To back up the lack they choose low quality power cables and in this way the problem occurs.
2. Sometimes the responsible engineers fail to select perfect cables for electrification. In this reason the problem also occurs.
These causes must be eliminated in order to tackle the low quality power cables in distribution line problem. The following steps are presented as we hope taking these steps will solve the existing problem and help regaining the satisfaction among the customers.
The necessary steps are:
1. The company mustn’t use damaged cables and the damaged cables must be replaced with newer ones. 2. The capacity of the cables must be ensured. 3. While choosing power cables responsible should be awarded of low quality power cables. 4. The quality of the cables must be better and world class. 5. The cables must be checked on a routine to avoid short circuits. 6. DESCO can change their prevailing cables as far as they can.
The Quality circle believes that these steps are necessary and by taking these steps the low quality power cables in distribution line problem will be easily solved. We want DESCO to take these solutions on light and bring changes as we proposed to the company.
UNIT-2, CHAPTER-8
Problem-4: Line disconnection without notice
8.1 Problem identification:
* What is disconnecting the Line without significant notice?
When bill remains due for 3months the line will be disconnected without any kind of notice.
8.2 Problem analysis:
* Why this happens?
This happens because of difficulty of the bill collection system and public awareness. If bill collection process become lengthy, then it exceeds due time. Sometimes people become unaware or forget to pay bill in due time. Sometimes they show negligence to do their payment in time. For these reasons it occurs.
* When this happens?
Power supply office disconnect the line without significant notice when * Customer delayed the bill payment * After giving three times notice if they do not pay their bill and remain unaware about this matter.
* Who is responsible for this?
Management and customer both are responsible for this.
8.3 Solution of the problem:
Disconnecting the lines without notice is also a problem that customers face at a large number. This problem often has a long time effect and a large consequence. Disconnecting the line without notice is not often happens, but if happens then it becomes a huge source of disappointment among the customers. To solve this problem the company must take these steps: 1. DESCO must develop the warning method. 2. The first warning, second warning, third warning and the last warning should not be in the same language. 3. The warnings must be clearly expressed. 4. The customers must be aware about the consequences of disobeying the rules.
8.4 Management presentation:
Now our up next task is to solve the line disconnection without prior notice problem.
While we give our light on this problem, we first looked at the survey we made. The survey shows that 9 customers out of the 25 customers face this problem. The survey shows that line disconnection without prior notice is another major cause behind the existing dissatisfaction and a large number of customers are facing or faced the problem in the past. We have to solve this problem to regain the Dissatisfaction which exists among the customers.
We have find out some causes behind the line disconnection without prior notice problem: 1. Customers are in some ways unaware about the disconnection by the authority 2. Sometimes people show negligence towards the notice given by the electricity suppliers.
These causes must be eliminated in order to tackle line disconnection without prior notice problem. The following steps are presented as we hope taking these steps will solve the existing problem and help regaining the satisfaction among the customers.
The necessary steps are: 1. DESCO must develop the warning method. 2. The first warning, second warning, third warning and the last warning should not be in the same language. 3. The warnings must be clearly expressed. 4. The customers must be aware about the consequences of disobeying the rules.
The Quality circle believes that these steps are necessary and by taking these steps line disconnection without prior notice problem will be easily solved. We want DESCO to take these solutions on light and bring changes as we proposed to the company.
* What are Illegal electricity connections?
Illegal electricity connections are a serious matter. While many hard-working, honest and loyal customers are paying for their electricity, others are out to destroy the service by stealing electricity.
9.2 Problem analysis:
* Why this happens?
Our processing of new connection is too problematic that’s why it happens. Sometimes customer use electricity without paying bill to the government which is illegal.
* When this happens?
It happens randomly. There is no significant time but for the lack of regular supervision by the authority the illegal supplies increases.
* Who are responsible?
Electricity officers, owner of house and business holders and consumers are responsible for this. If illegal connections were curbed, more power would be available to customers who obey the law, power quality and safety would increase and people would experience fewer service interruptions.
9.3 Solution of the problem:
Illegal connections are a major cause behind the system loss of DESCO. As Dhaka is the capital of Bangladesh and as it is an overpopulated city, the number of illegal connections is very large at number. This problem must be solved soon. The following steps are requested to take to prevent and minimize the number of illegal connections in Dhaka:
1. Establish strict Laws regarding the illegal connections. 2. The enforcement of law must be ensured. 3. The public must be aware of the rules and regulations and the consequences. 4. The law enforcement process must be transparent. 5. A routine check must be held to ensure that no illegal connections are made. 6. DESCO must maintain a good communication with customers to get information about the illegal connections. 7. Notify the electric utility immediately if anyone knows of an illegally connected consumer. 8. Do not cutting the seal on meter base or tamper with anyone’s own meter for any reason. 9. Appling for a legal connection if anyone needs one. 10. Remaining aware of surroundings and report any suspicious activities to nearest electric utility.
9.4 Management presentation:
Now we are going to solve the final Illegal electricity connections problem.
While we give our light on this problem, we first looked at the survey we made. The survey shows that 5 customers out of the 25 customers face this problem. The survey shows that Illegal electricity connections problem is another cause for which DESCO cannot increase their power distribution system.
For this problem they are facing millions of losses in every year. Although we observed a little awareness of customers about this problem but we took the problem to solve for the betterment of DESCO’s power distribution system.
The dishonesty of people is the main cause for this problem. Where loyal customers pay for the electricity on the other hand the dishonest people try to grab the electricity not paying the cost of it.
These causes must be eliminated in order to tackle illegal electricity problem. The following steps are presented as we hope taking these steps will solve the existing problem and help regaining the sound electricity distribution of DESCO:
1. The public must be aware of the rules and regulations and the consequences of illegal connections. 2. The law enforcement process must be transparent. 3. Establish strict Laws regarding the illegal connections. 4. The enforcement of law must be ensured. 5. Remaining aware of surroundings and report any suspicious activities to nearest electric utility. 6. DESCO must maintain a good communication with customers to get information about the illegal connections. 7. Notify the electric utility immediately if anyone knows of an illegally connected consumer. 8. A routine check must be held to ensure that no illegal connections are made.
The Quality circle believes that these steps are necessary and by taking these steps illegal electricity connections problem will be easily solved. We want DESCO to take these solutions on light and bring changes as we proposed to the company.
Chapter-10
Recommendation of the study
Due to paucity of financial resources with the Government, there is an urgent need to induct private sector participation in the power sector. This participation will not be forthcoming unless the financial inflow to the sector enables the sector to earn a positive return. Since cash inflows to the sector come only from distribution agencies. There is an urgent need to improve their efficiencies, if private sector investments are to be attracted in any part of the power system. The Dhaka area is the largest single distribution territory consuming about 50 percent of the total electricity sold in Bangladesh. DESA, which is the distribution agency for the Dhaka area has a poor performance record with respect to system losses and accounts receivables. Although the performance has improved considerable since 1992 on account of intensive monitoring, there is a limit to the gains that can be made and it is felt that further progress can be achieved on a sustainable basis only if there is a change in the business environment, both external and internal to the organization, which will enable introduction of more sophisticated control and management systems, and also organizational accountability. For this reason the quality circle has performed its necessary tasks and recommend for the overall improvement of the DESCO by developing the quality of its power distribution.
