• Written by Sonali Subhadarsini, Product Manager

This week, the shift supervisor at a large energy utility company must decide whether to bring in a contractor to perform maintenance on a critical asset, and they currently base this decision on a report that is only updated monthly, which may not reflect the current status of the asset or the availability of internal resources. The supervisor needs to know the current maintenance schedule, the status of ongoing projects, and the budget consumption to date, but this information is scattered across different systems and departments. By having access to real-time data, the supervisor can make a more informed decision and avoid potential delays or costs.

The operations questions that currently wait on a report

The operations team in energy and utilities often has to wait for a report to be generated before they can answer critical questions about the status of their assets, projects, and resources. These questions can range from what maintenance is scheduled for the upcoming week, to what is the current project status, to how much of the budget has been consumed. The team may also need to know what exceptions have been reported, and what actions have been taken to address them. Currently, these questions are often answered by generating a report, which can be a time-consuming process, and may not reflect the current situation.

For example, a category manager may need to know the performance of different suppliers, in order to make informed decisions about procurement. However, this information may not be readily available, and may require a report to be generated, which can delay the decision-making process. By having access to real-time data, the category manager can quickly and easily get the information they need, and make more informed decisions.

The data behind them: process and exception records, project status, budget consumption, supplier performance

The data that underlies these operations questions is typically scattered across different systems and departments. Process and exception records may be stored in a maintenance management system, while project status and budget consumption may be tracked in a project management system. Supplier performance data may be stored in a procurement system, and may require manual entry and updating. By bringing all of this data together, the operations team can get a more complete picture of the current situation, and make more informed decisions.

The data behind these questions is often complex and nuanced, and requires careful analysis and interpretation. For example, exception records may require a detailed understanding of the underlying processes and systems, in order to identify the root cause of the exception. By having access to real-time data, the operations team can quickly and easily analyze and interpret the data, and take corrective action as needed.

Sector constraints: outage planning and regulatory reporting burden

The energy and utilities sector is subject to a range of constraints and regulations, including outage planning and regulatory reporting requirements. These requirements can be time-consuming and burdensome, and may require significant resources and effort to comply with. For example, the operations team may need to plan and schedule outages in advance, in order to minimize disruptions to customers and ensure compliance with regulatory requirements. By having access to real-time data, the operations team can more easily plan and schedule outages, and ensure compliance with regulatory requirements.

The regulatory reporting burden can be particularly significant, and may require the operations team to generate and submit detailed reports on a regular basis. These reports may require significant manual effort to generate, and may be subject to strict deadlines and requirements. By automating the reporting process, the operations team can reduce the burden of regulatory reporting, and free up resources for more strategic and value-added activities.

What improvement looks like: on-time delivery, exception rate, expediting cost

Improvement in the operations of energy and utilities companies can take many forms, including on-time delivery, exception rate, and expediting cost. For example, the operations team may aim to reduce the exception rate, by identifying and addressing potential issues before they become major problems. By having access to real-time data, the operations team can more easily identify and address potential issues, and reduce the exception rate.

On-time delivery is another key metric, and may be critical to ensuring customer satisfaction and loyalty. By having access to real-time data, the operations team can more easily track and manage the delivery process, and ensure that projects are completed on time and to budget. Expediting cost is another key metric, and may be reduced by having access to real-time data, and being able to identify and address potential issues before they become major problems. To learn more about how AI can support operations, visit our operations page.

What this does not do, or when it is the wrong choice

While AI for operations in energy and utilities can be a powerful tool, it is not a solution to every problem, and may not be the right choice in every situation. For example, AI may not be able to replace the judgment and expertise of experienced operations professionals, and may require significant training and validation to ensure accuracy and reliability. Additionally, AI may not be able to address underlying cultural or organizational issues, and may require significant changes to business processes and systems.

In some cases, AI may not be the right choice because it may not be able to provide the level of detail or nuance required, or may not be able to address the specific needs and requirements of the organization. In these cases, other solutions or approaches may be more appropriate, and may provide better value and return on investment. To discuss your specific needs and requirements, and determine whether AI for operations is the right choice for your organization, contact us at contact us.