O&M Service in Power Industry

1. POWER PLANT E&I MAINTENANCE, TRAINING &
CONSULTANCY BUSINESS OUTSOURCING SERVICE
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,
2012

2. 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

3. 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.

4. 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

5. 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 exp
Companies 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&Sin 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.

6.  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 marketmatured and same trend in
India is also expected.
EVOLUTION OF THE GLOBAL POWER O&M MARKET (India Positioning)

7. 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.

8. Over the next five years, almost 55% of total planned capacity addition is expectedfrom 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 ofservice providers.

9. 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 achallenging task for private IPPs.
 Likewise, an established O&M company gives direct & instant access to services of skilled &
experienced manpower.

10. 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.

11. 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

12. 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 shutdowns
3. 15-20% savings on lifecycle cost
4. Fuel cost savings through efficiency improvement
5. Direct access to expertise in power plant operations
6. Addressing manpower shortage
7. Free up bandwidth to focus on strategic activities
8. Better inventory management

13. INDUSTRIAL CUSTOMER BEHAVIOUR:
As per Lovelock and Wirtz consumers go through three major stages when theyconsume services:
the pre-purchasestage, the service encounter stageand the post-encounter stage. We will use this
framework as it is helpful because it assists academics in forming a clear research focus
anddirection, and businesses in identifying the stages that need the most improvement and
therefore need more resources allocatedto them.
PRE-PURCHASE STAGE
Consumer 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 STAGE
Consumer Behaviour Key Concepts
Theoretical Approaches:
– Moments of Truth
• Request service from chosen supplier or – Role Theory
initiation of selfservice – Script Theory
– The Servuction Model
– The Servicescape/Environmental Perspective
• Interaction with service personnel Frontline Employees-Consumer Interactions
The Service Environment
The Role of Other Consumers
• Service delivery by personnel or self-service
Low-Contact Service Encounters
POST-ENCOUNTER STAGE
Consumer Behaviour Key Concepts
The Expectancy/Disconfirmation Paradigm
The Attribute-Based Approach: Attribute
Satisfaction, Service Quality, Service Value
Evaluation of service Service Failure & Dissatisfaction
Evaluation of service recovery – Complaining Behaviour
Future intentions – Dysfunctional Behaviour
– Switching Behaviour
Satisfaction and the “Service Recovery Paradox”
Repurchase Intentions, Trust, Engagement &
Loyalty

14. 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.

15.  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.

16. 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 ofTruth &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 arole, 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
areplaying 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 otherconsumers 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-
qualityrelationships 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 enhancedcorporate image and to increased perceptionsof service excellence, customer
satisfaction and repurchaseintentions. Similarly, employeefriendliness has a positive influence on
unplanned purchasingbehaviour among consumers.Consumer self–employeecongruency directly
influences consumer satisfaction with employee relationshipsand their loyalty towards employees,
which in turn contribute tooverall consumer satisfaction with the firm.

17. 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.

18. 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 itsoutcomes 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 performance
2. 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 delightthem in the future.
When consumers use a service, they rate its transaction qualitywhich when combined with the
satisfaction derived from keyattributes (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 satisfactionjudgments, 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).

19. 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&Swill 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&Swillbe 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&Sis 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,

20. 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.

21. 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 bepoint 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

22. 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
200/210/250 300/330/350 500 MW and 600 MW and
Rs. Lakh/MW MW MW Above above
Last year of tariff period 2004-09
2008-09 12.17 - 10.95 -
O&M Expenses applicable for the new tariff period
2009-10 18.2 16 13 11.7
2010-11 19.24 16.92 13.75 12.37
2011-12 20.34 17.88 14.53 13.08
2012-13 21.51 18.91 15.36 13.82
2013-14 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-
200/210/250 300/330/350 500 MW and 600 MW and
Rs. Lakh/MW MW MW Above above
Last year of tariff period 2004-09
2008-09 2.434 - 2.19 -
O&M Expenses applicable for the new tariff period
2009-10 3.64 3.2 2.6 2.34
2010-11 3.848 3.384 2.75 2.474
2011-12 4.068 3.576 2.906 2.616
2012-13 4.302 3.782 3.072 2.764
2013-14 4.548 3.998 3.248 2.924

23. 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-
200/210/250 300/330/350 500 MW and 600 MW and
Rs. Lakh/MW MW MW Above above
Last year of tariff period 2004-09
2008-09 1.217 - 1.6425 -
O&M Expenses applicable for the new tariff period
2009-10 1.82 1.6 1.3 1.17
2010-11 1.924 1.692 1.375 1.237
2011-12 2.034 1.788 1.453 1.308
2012-13 2.151 1.891 1.536 1.382
2013-14 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.

24. INTERNAL OPERATION DESIGN:
Installation & Commissioning Services Design:
M&S Installation Services division will be a premierturnkey provider of power plant
installationservices, offering clients experienced projectsupervision, estimating, rigging and tooling
toexecute the following:
M&S diversified experience professionals will provide the customerswith services spanning all
aspects of the projectcycle, while maintaining a strict focus on safety,quality and schedule. M&S will
provide their clients with anumber of advantages, including a large and variedequipment inventory,
specialized rigging plans, as well as the flexibilityto adapt to site requirements and procedures.
Thequality and quantity of experienced personneland solid corporate base, many of whom
haveserved in the field, allow M&S to support customer needsand 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.

25. EMPLOYEE MANAGEMENT SYSTEM:
People before profitswill 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 tofacilitate tacit
knowledge in the form of learning and experiences of employees to be captured and summarized for
future reference.

26. Training & Development: M&Sacknowledges 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&Swill encourage employee feedback to ensure that HR interventions and
practicesremain 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 ResourcePlanning consists of
putting right number of people, right kindof people at the right place, right time, doing the right
thingsfor which they are suited for the achievement of goals of theorganization. Human Resource
Planning has got an importantplace in the arena of industrialization. Human ResourcePlanning has to
be a systems approach and is carried out in aset 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 bythe organizations are as follows:
Expert Forecasts:This will include informal decisions, formalexpert surveys and Delphi
technique for the upcoming projects & manpower required.
Trend Analysis:Manpower needs can be projected throughextrapolation (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 timeperiod 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

27. 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).

28. 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.

29. 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

30. 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&SWeb 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.

31. 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.

32. 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, JongbokByun
7. Wartsila technical resource
8. Salesforce.com
9. NTPC