AM/FM Project cost justification achieved with applications
Current systems can be analyzed to determine where preventive maintenance is needed before problems arise.
This is accomplished by analyzing the network for the ability to handle normal or peak capacity. Potential
trouble spota are quickly identified within the system alltwing planners to prepare work requests to improve
the noted condition, before the next season of heavy use. This type of application lends itself to connecting
to or integrating outage analysis applications that can provide further cost savings to the utility, by identifying
the affected device and dispatching crews to more precise locations, iriqx-oving response times to
outage/trouble calls. Both these applications require data that is relatively accurate and complete, but provide
some of the greatest benefits to users and customers alike.
Direct users of the system are not the only people to see benefits. Utility customers also reap a host of
benefita due to the rapid implementation of applications. For example, customer service representatives can
have quick access to information regarding job status, providing customers with anticipated times of
completion, and estimated costs. This information provides a high quality of customer service simply by
having information available and accessible. When a customer calls in to report a problem, utility
representatives can provide information regarding the problem. If other callers have reported the same
problem, the customer representative may tell the caller the utility is aware of the problem, when the crew
was (or will be) dispatched, and an anticipated time of completion. Once the repair is made, reports can be
automatically generated with customer name and phone numbers to call and verify the repair.
Defining Costs and Benefits
But how can these costs be measured? For any cost benefit analysis, costs for the proposed project are
compared to the benefits to be gained from the implementation of the project. For AM/FM projects the
costs fall into six main categories:
- Hardware
- Software
- System Maintenance
- Resources (Labor)
- Data Conversion
- Applications
Hardware costs are those direct costs of obtaining the hardware required to run the proposed system. In most
cases this is new equipment such as computers, monitors, plotters, pri@ers, scanners, etc. These costs should
also include any additional office furniture required to support the project such as desks, chairs, etc. In some
cases existing hardware can be used and this should also be included in the cost of the project unless it has
been fully depreciated.
Software costs are costs associated with the acquisition of the proposed AM/FM software platform.
Operating systems, core and modular software would all fall into this catego~. Training for the system does
not belong in this category as it is an on-going cost and therefore belongs in system maintenance.
System Maintenance costs include annual software maintenance fees, training, and user support.
Resource costs are direct labor charges for supporting the system. If new staff are required their salaries and
benefits would be applied to this category. Existing staff whose job functions will shift to the AM/FM
project should also have their salaries and benefita included in order to gain a full picture of the project costs.
Data Conversion costs are those costs directly associated with converting existing data into the proposed
system. This may be a phased cost; the first phase completing a raster conversion, the second vector. This
may be done in-house, or by a vendor specializing in data conversion or a combination of the two.
Application costs are usually phased in over a period of time. A priority list of desired applications should be
made after which estimated costs can be applied. As with data conversion, these applications maybe
purchased from a third party, developed in-house or by a vendor specializing in the development of
applications on the selected platform. Often the simpler applications are done in-house as training projects
340?while the more complex are left to vendors who have a great deal more experience working in the selected
environment.
Measurable benefits then must be identified. These are benefits that can be measured by either the amount of
dollars saved (as a comparison to the dollars spent for the same activity pre-AM/FM ) or the amount backlog
work that can be removed. Benefits can fall into several categories, a few of which are outlined below:
- Customer satisfaction
- System Reliability
- outages
- Overtime
- Scheduled Maintenance
- Reduction Map Product Generation Costs
- Safety
- Improved Scheduling
The benefit gained from customer satisfaction comes from superior customer service which can be measured
by the number and type of calls customer service representatives receive, and the length of time required to
resolve them. Once an AM/FM is implemented and customer service representatives have acceas to the data,
the number of calls may not dramatically decline, but the amount of time required to resolve each should
decrease as familiarity with the system is gained. New customers are brought quickly on-line, while existing
customers receive improved response time and increased amounts of information regarding questions
concerning their service.
System reliability benefits stem from the utility’s improved network reliability. Leas down time due to faults
in the system equate to fewer customer calls, and leas overtime for emergency repairs.
Outage benefits are seen as quicker repair times, reduction in unexpected outages due to better system design
tools, and advance notification of sensitive areas such as high and low voltage points.
Another benefit that can be measured is the reduction of scheduled maintenance jobs. Typically these jobs
must wait until other work such as outage and new builds, is completed. Improving the amount of lead time
construction departments receive before work is required allows them to better schedule crews, thereby
providing higher manpower efficiencies, and reduced outage times.
If a utility is required to maintain paper maps or truck map books, many times this task is sent to vendom.
These vendors must maintain hard copies which they update with information forwarded by the utility often
monthly or yearly. These updates are then photographed and copied into the desired format. By updating the
map information within the AM/FM system, utilities can have up-to-date maps produced in much leas time.
There is no longer a large amount of updates to perform. Current information can either be sent out digitally
for reproduction, or in-house resources can develop original maps that can be sent out for duplications. This
saves many utilities thousands of dollars within the first reprint alone.
Safety benefits are tied to having information about the current state of the system. Many repair crews rely
on current truck maps for locating devices. Dispatchers can also alert crews to scheduled and emergency
outages, the current status of operating devices such as switches, disconnects and reclosers, and the
energized/de-energized status of lines.
The specific value of any benefit must be carefully calculated and will be dictated by individual situations.
But one thing is clear, traditional cost benefit analysis requires applications if it is to be applied to AM/FM
systems. Applications allow utilities to compete for customers which are the life blood of any viable
organization. Without customers, the chances for survival are minimal. only with a strong customer base
will individual utilities continue to prosper.
