The audit staff concluded that further improvement was warranted and developed 25 recommendations for improvement. In its August 2012 Implementation Plan, PGW indicated acceptance of 23 recommendations, partial acceptance of one recommendation and rejection of one recommendation. PGW indicated that it had already implemented five follow-up recommendations and planned to complete implementation of most follow-up recommendations by June 2014. The follow-up recommendations include: Monitor and assess absenteeism root causes and take corrective action to reduce absenteeism to at least 2006 levels; Expand knowledge loss risk assessment and workforce planning at PGW; Initiate efforts to encourage the Philadelphia Facilities Management Corporation (PFMC), Philadelphia Gas Commission (PGC) and City Council to make changes to streamline PGW’s corporate governance; Track, quantify, and trend cost recovery efforts related to the gas theft program; Complete the automation of the monthly fleet preventative maintenance schedule in a timely manner which will reduce unneeded work, allow time to be spent on value added tasks; Evaluate internal fleet services and its costs, compared to those provided by outside contractors prior to replacing mechanics that are expected to retire in the near future; Consolidate warehouse facilities to achieve projected annual savings of approximately $5 million from increased productivity and reduced operating and capital costs; and Improve material forecasting techniques and complete the implementation of the forecasting module in order to reduce the time and effort needed to create monthly material forecasts. Presented below is a summary of the estimated benefits or savings that could be quantified with implementation of the MEI recommendations. Annual (recurring) $21,041,000 One-time (non-recurring) none No incremental implementation costs associated with the follow-up recommendations were specifically identified. Pike County Light & Power Company (D-2012-2305866) The report on the Management Efficiency Investigation (MEI) of Pike County Light & Power Company (PCL&P or Company), which was completed by Bureau of staff, was publicly released on October 24, 2012. The scope of this investigation Audits’ was confined to an examination of the progress in implementing the six original
The audit staff concluded that further improvement was warranted and developed 25 recommendations for improvement. In its August 2012 Implementation Plan, PGW indicated acceptance of 23 recommendations, partial acceptance of one recommendation and rejection of one recommendation. PGW indicated that it had already implemented five follow-up recommendations and planned to complete implementation of most follow-up recommendations by June 2014. The follow-up recommendations include: Monitor and assess absenteeism root causes and take corrective action to reduce absenteeism to at least 2006 levels; Expand knowledge loss risk assessment and workforce planning at PGW; Initiate efforts to encourage the Philadelphia Facilities Management Corporation (PFMC), Philadelphia Gas Commission (PGC) and City Council to make changes to streamline PGW’s corporate governance; Track, quantify, and trend cost recovery efforts related to the gas theft program; Complete the automation of the monthly fleet preventative maintenance schedule in a timely manner which will reduce unneeded work, allow time to be spent on value added tasks; Evaluate internal fleet services and its costs, compared to those provided by outside contractors prior to replacing mechanics that are expected to retire in the near future; Consolidate warehouse facilities to achieve projected annual savings of approximately $5 million from increased productivity and reduced operating and capital costs; and Improve material forecasting techniques and complete the implementation of the forecasting module in order to reduce the time and effort needed to create monthly material forecasts. Presented below is a summary of the estimated benefits or savings that could be quantified with implementation of the MEI recommendations. Annual (recurring) $21,041,000 One-time (non-recurring) none No incremental implementation costs associated with the follow-up recommendations were specifically identified. Pike County Light & Power Company (D-2012-2305866) The report on the Management Efficiency Investigation (MEI) of Pike County Light & Power Company (PCL&P or Company), which was completed by Bureau of Audits’ staff, was publicly released on October 24, 2012. The scope of this investigation was confined to an examination of the progress in implementing the six original
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