Authors

1. Dr. Lalit Kumar Khurana

Affiliation

• Assistant Professor, School of Petroleum Management, Raisan, Gandhinagar

Abstract

Power or electricity is very essential constituent of infrastructure. It is pre-condition for the entire process of socio-economic development in any economy. The power sector in India is plagued with colossal commercial and technical losses. The percentage of commercial and technical losses is very high which typically results in higher cost of electricity to consumers. Despite various reform initiatives by the Government, the sector remains crisis­ ridden. In power value chain, distribution segment which is largely in the stranglehold of state-owned utilities remains a leaking bucket. It is immensely vital for the power distribution utilities to analyze various underlying drivers causing the under-performance of this sector. This study was performed to identify the most probable causes of losses in power sector with reference to power distribution utilities using a tool - Fishbone Analysis. It is also commonly referred as "Ishikawa Diagram". The fishbone analysis is a systematic, formal, well-structured methodology for pinpointing the vital few that may cause a substantial part of the problem. The study is conducted by reviewing the available literature in power sector to expose the underlying causes of the losses. While such a methodology presents a considerable challenge in identifying causes of a complex problem. The knowledge of practicing managers and author's own experience was put to use in yielding the final picture of fishbone. Parsimonious use of words was made while populating the fishbone. The analysis reveals that the problem areas are lack of control over theft and pilferage, inefficient process, political interferences and human resource resulting into poor financial condition of power sector. The research work described in the paper has a significant meaning to recognize the root cause. The paper contributes towards understanding the comprehensive picture of losses in power distribution utilities ina logical way. The fishbone analysis such described inthe paper has a significant meaning to recognize the root cause of huge losses in power distribution sector.

Keywords

Commercial and technical losses, power sector, fishbone analysis

References

1. www.cprindia.org/ .../Swain_Politicai%20Economy% 20of%20Distribution %20Reform.
2. www.planningcommission.gov.in/reports/genrep/arep_seb11_12.p
3. • Phillips J, Simmonds L (2013). Using fishbone analysis to investigate problems. Nursing Times, 109(15), 18-20. Retrieved December 22, 2016, www.nursingtimes.net/roles/ nurse-managers/using-fishbone-analysis-to­ investigate-problems/5057380.article
4. • Wakchaure, V. S., Pandhare, S. H., Kachave, R.N., & Chaudhari, S. R. (2015). A Review on Fishbone Analysis. World Journal of Pharmaceutical Research, 4(4), 638-645. Retrieved December 22, 2016, from www.wjpr.net
5. • Wagner, T. P. (2014). Using Root Cause Analysis in Public Policy Pedagogy. Journal of Public Affairs Education, 20(3), 429-440. Retrieved December 22, 2016, from http://www.jsto r.org/stable/24369813
6. • Singh, T. (2009, June). Analysis of Non-Technical Losses and its Economic Consequences on Power System (A Case Study of Punjab State) [Scholarly project]. Retrieved December 22, 2016.
7. Rosenfeld, Y. (2013). Root-Cause Analysis of Construction-Cost Overruns. Journal of Construction Engineering and Management, 1-10.
8. • Khurana, L K (2016), Management Control Practices in Power Sector :a Study of Power Distribution Utilities (Unpublished doctoral dissertation), University of Hyderabad,Telangana, India
9. • Khattak, M., Zareen, N., Mukhtar, A., Kazi, S., Jalil, A., Ahmed, Z., & Jan, M. M. (2016). Root cause analysis (RCA) of fractured ASTM A53 carbon steel pipe at oil &gas company. Case Studies in Engineering Failure Analysis, 7, 1-8. doi:10.1016/ j.csefa.2016.04.002
10. Hughes B et al (2009) Using root cause analysis to improve management. Professional Safety; Feb: 54-55.
11. • Hekmatpanah, M. (2011). The application of cause and effect diagram in the oil industry in Iran: The case of four liter oil canning process of Sepahan Oil Company. African Journal of Business Management, 5(26). doi:10.5897/ajbm11.1517
12. • Grundy, T. (1997). Managementaccountingforstrategicperformance, Management Accounting: Magazine for Chartered Management Accountants. Dec 97, Vol. 75 Issue 11, p63.
13. Galley M(2012).1mproving on the Fishbone- Effective Cause-and-effect Analysis: Cause Mapping. www.fishbonerootcauseanalysis.com
14. • Fischer, K., Stalin, T., Ramberg, H., Wenske, J., Wetter, G., & Karlsson, R. (2015). Field-Experience Based Root-CauseAnalysis of Power-Converter Failure in Wind Turbines -IEEE Xplore Document. IEEE Transactions On Power Electronics, 30(5), 2481-2492. Retrieved December 22, 2016, from http://ieeexplore.ieee.org/ document/69170131
15. • Bose, T. K. (2012). Application of Fishbone Analysis for Evaluating Supply Chain and Business Process- A Case Study on the STJames Hospital. International Journal of Managing Value and Supply Chains, 3(2), 17-24. doi:10.5121/ ijmvsc.2012.3202