Submitted To: Instructor MISI 619 Submitted By: Muhammad Abuzar MC060400043 Fall 2009 MBA (MIS)

Virtual University of Pakistan

Acknowledgment We owe our felt thanks to Allah Almighty who enables us to discharge such responsibility with due care and caution. My report will remain incomplete if I don’t mention the sincere efforts of those gentlemen who helped and guided me in completion of my internship and this report. First of all I want to thanks to ALLAH Almighty; I also want to thanks to my worthy teachers the main source of enlightenment of our minds and the development of natural potentials. After him I want to thanks Mr. Tahir Assistant Manager and Mr. Naeem deputy Manager administration and technical, which helped us in all matter. At the end I want to say thanks to whole staff and management of Lahore Electric Supply Co. for their cooperation and for providing a very friendly environment to gain practical knowledge.

Muhammad Abuzar MC060400043 MBA (M.I.S) Fall 2009


Executive summary The purpose of this report is that the student can get a glance about the practical life and through this experience makes his mind according to his own interest. I choose Lahore Electric Supply Company for my Internship; because I have Three Years Diploma of Associate Engineer (D.A.E) and Bachelor Degree (B-Tech) in Electrical Technology therefore I preferred this sector. Lahore Area Electricity Board was reorganized into one such corporatized entity under the name of Lahore Electric Supply Company (LAHORE ELECTRIC SUPPLY CO.) with effect from 22-03-1998, with the aim of commercialization and eventually privatization. Lahore Electric Supply Company (LESCO.) has 500,000,000 public shares each of Rs.10.It also have very advance Management Information System that comprises on Linux Environment and ORACL Data base system. In Management Information system of Lahore electric supply co. daily, weekly and monthly bases reports are generated. The Financial and Human Resources related reports are also a part of MIS section. The Lahore Electric Supply Co. is now fully harnessing the advantages of Management Information System and in almost all studies from detailed monitoring of LESCO’s defaulters to Analysis of Electricity tariffs; computer centre has become focal point for generating information imperative for management policy formulation. In addition, processing of special reports for Authority and various WAPDA formations is carried out by the computer centers. The divisionwise computerized receivable reporting and monitoring system providing twenty different arrears analysis reports have been expanded to provide tariff wise information. These reports have been further extended to support monitoring at the sub division level. LESCO’s MIS system has been instrumental in implementing the instructions. The incentive packages were promptly and uniformly implemented giving timely relief to the agriculturist and industrial consumers. Since it is an engineering firm therefore numerous software for System Planning, Distribution, and Load Management and for Design of Distribution system in consumer area is used. In Lahore Electric Supply Co I emphasized on the Database management system and Management information system. During the interview and questionnaire I get a lot of knowledge and practical skill, and I want to share this experience with you. In this report I have written my suggestions, my feelings and also what I got from all this internship training. This report consists of Vision, Mission, Goals, objectives, organization’s structure SWOT analysis and Recommendation.



Table of Contents Brief Introduction Overview of The LESCO Brief History Nature of Organization Business Volume Product Line Competitors Competitors Overview Brief Introduction of Branch Organizational Structure Top Level Management Board of Directors Registered Head Office Mission-Vision and Goals Comments on LESCO Organizational Structure Introduction to all Braches Human Resources Management Finance Directorate Operation Directorate Power Dispatch Center Technical Directorate Material Management Project Management Directorate Training Center Customer Services Directorate MIS Directorate Organizational Management Analysis 09 10 10 11 12 13 13 14 16 17 18 19 20 21 22 23 23 25 26 27 28 28 30 31 32 32 33 6 .

Plan of Internship Structure / Functions of MIS Major Function of MIS MIS Support to other departments Critical Analysis SWOT analysis Internal Factor Evaluation Matrix External Factor of Evaluation Matrix TOWS Matrix Competitors Profile Matrix BCG Growth-Share Matrix Porter Five Forces analysis Conclusions Recommendations Conclusions 34 37 38 41 45 46 48 49 50 52 53 53 54 54 55 7 .

To keep pace with this change.Brief Introduction: The environment and structure of the power industry throughout the world are undergoing dramatic change. which allowed the creation of Pakistan Electric Power Company (PEPCO). on the eight AEBs in Pakistan. in order to provide more autonomy and representation to provincial government. and unbundling of WAPDA’s Power Wing into: Eight (8) distribution companies (formed from existing area boards). one Construction and one GSO Circle. Lahore Electric Supply Co. Okara and Sheikhupura. with the aim of commercialization and eventually privatization. elected representatives. was established under the scheme of Area Electricity Boards in 1982. the Government of Pakistan approved a Strategic Plan in 1994 as a consequence of which the power wing of WAPDA has been unbundled into 12 Companies for generation. Various Regions of WAPDA were performing the local areas electricity distribution service. Then the Area Electricity Board (AEB) Lahore.) with effect from 22-03-1998. industrialists. Kasur. comprises of the following seven distribution Operation Circles. In December 1998. the WAPDA Act was amended. The power sector is moving from monopoly to privatization and from integration to disintegration. and National Transmission and Dispatch Company (NTDC). three (3) generating companies (comprising 11 of WAPDA’s generating plants). Overview of the Organization: LESCO’s area of responsibility covers Civil Districts of Lahore. as detailed below: North Lahore Circle Central Lahore Circle Eastern Lahore Circle South Eastern Lahore Circle Okara Circle 5 Division / 24 Sub Divisions 5 Division / 24 Sub Divisions 4 Division / 20 Sub Divisions 4 Division / 21 Sub Divisions 4 Division / 20 Sub Divisions 8 . Lahore Area Electricity Board was reorganized into one such corporatized entity under the name of Lahore Electric Supply Company (LESCO. agriculturalists and other interest groups in functions of the AEBs. transmission and distribution of electricity.

enhancing productivity and efficiency. four Generation Companies (GENCOs) and a National Transmission Dispatch Company (NTDC). including customer orientation and service culture. are executed between Lahore Electric Supply Co. and Performance Standard for Distribution Companies and Transmission Companies were drafted and got approved from NEPRA in 2007. Distribution Codes. The aim of this transition is to install corporate and business culture through: adopting of good business practices. On 24th Feb. theft and wastage. Business Supplementary Agreement and Fuel Supply Agreement etc. reducing costs. These companies are working under independent Board of Directors (Chairman and some Directors are from Private Sectors). It has been decided that some of the functions currently being performed by WAPDA are of national importance and will therefore continue to remain with WAPDA/GoP in the largest interest of the country. and Corporate Entities to facilitate commercial operations. All Entities have the physical possessions of all their operational assets. 9 . improving quality of services setting performance targets.Sheikhupura Circle Kasur Circle Construction Circle Grid System Operation Circle 5 Division / 29 Sub Divisions 5 Division / 21 Sub Divisions 4 Divisions 3 Divisions Brief History: The restructuring programme of WAPDA's Power Wing is based on the new strategic policies of the GOP and endorsed and supported by the donor institutions. Regulatory instruments like Grid Code. Operation Development Agreement. management information systems. PEPCO has been fully empowered and is responsible for the management of all the affairs of corporatized nine Distribution Companies (DISCOs). Legal Agreements such as Business Transfer Agreements. and monitoring and prudent decision-making. Energy Supply Agreement. This will be based on extensive use of information technology. 2007 Ministry of Water & Power notified NEPRA approved Tariff for all Distribution Companies replacing unified WAPDA Tariff.

30 Product Lines: 10 .Nature of the Organization: In exercise of the powers conferred on the National Electric Power Regulatory Authority under Section 21 of the Regulation of Generation.130 Rs. Commercial and industrial consumers. for the Distribution Services of Electric supply and make sale of Electric power to the consumers in the services territory and concession territory subject to and in accordance with the terms and conditions of the NEPRA.491 Rs. 21.046 Rs. 23. 23.686 Rs. Transmission and Distribution of Electric Power Act 1997. spare parts and loose tools Trade Debtors Loans.440 Rs. the authority grants the license to the Lahore Electric Supply Co.908. Bulk.36 Rs. 2. 8. 50. 7. 51 Rs.534 Rs.311 (in Millions) Rs. 2. the company have to provide the electric supply to their Domestic. Business Volume: Operating Fixed Assets Capital Work In Progress Long Term Advances Long Term Deposits and Deferred Costs Stores. advances and other Receivables Cash and bank balances Grand Total Rs. According to the license issued to the Lahore Electric Supply Co. 0. 9.151 Rs.

Multan Electric Power Co. Transmission and Distribution of Electric Power Act.76 million customers within its territory with a population over 26. The company also provides the maintenance of Electrical Equipments. Geographical service area of FESCO comprises Faisalabad. Hafizabad. Bhakker. Sialkot. Industrial and Bulk consumers. Overview of the Competitors: Faisalabad Electric Supply Co.305 connections. Average monthly Collection for the year 2008-09 is approximately 3. Quetta Electric Supply Co.T Singh and Chiniot. Gujranwala Electric Power Co. Khushab. 1997 (NEPRA Act). which was created in early eighties. Gujranwala Electric Power Company (GEPCO) has been setup over area of jurisdiction and network of former Area Electricity Board. Gujrat and Mandi Bahauddin. Narowal.2 11 (FESCO) (GEPCO) (HESCO) (IESCO) (PESCO) (QESCO) (MEPCO) and KESC . Karachi Electric Supply Company Ltd. distributes the electric power/supply to Domestic. Islamabad Electric Supply Co. Sargodha. GEPCO was incorporated on 25th April 1998 and obtained Certificate for commencement of business on 5th June 1998. T. We have about 2. Competitors: Faisalabad Electric Supply Co.356. FESCO Distributes and supplies electricity to about 2. It encompassed the areas of existing Districts of Gujranwala. Hyderabad Electric Supply Co. Mianwali. Peshawar Electric Supply Co.5 million under a Distribution License granted by National Electric Power Regulatory Authority (NEPRA) pursuant to the Regulation of Generation. Gujranwala Electric Power Co.Lahore Electric Supply Co. Jhang. Commercial. Management and Administration is entrusted to a Board of Directors.

resultantly twelve corporate entities were formed. Area Electricity Board (AEB) Hyderabad was one of the eight AEB's constituted through amendments in WAPDA Act during 1981. transitional. Later on Government of Pakistan approved revamping of WAPDA power sector in April 1998. At IESCO. 33KV sub-transmission lines. Now one more GENCO has been established. Islamabad Electric Supply Co. diversified. Eight Distribution Companies (DISCOs). we own and maintain N. At PESCO networks.0 million consumers of all civil districts of N. we believe that time has come for us to set our sights beyond just being a provider of conventional services. located in Peshawar provides service of power distribution to over 2.F.W.W. one National Transmission and Distribution Company (NTDC) and three Generation Companies (GENCOs). sub-stations and 11KV & 440V low tension lines with distribution transformers that deliver electricity to your home or business. All these companies have been incorporated under Companies Ordinance 1984. with world-class quality and commitment for satisfaction as we continue in our quest for excellence. playing a national role in electricity supply and distribution. Our Mission is to bring the assurance of energy to our customers.P. IESCO aspires to become a major. Pakistan. We expect to carry the spirit forward by training and leading a crack team through the portal of Contact Center that will push the frontiers of our interactive experience with our customers. Peshawar Electric Supply Company (PESCO). Hyderabad Electric Supply Co. 66.F. integrated power supply company in Pakistan.billion Rupees. Peshawar Electric Supply Co. with a strong environment conscience.P’s electricity distribution system via 132. 12 .

It is also one of the oldest companies in Karachi and was established in the city even before the creation of Pakistan in 1947. 2008. The peak demand at the moment is 1177 MW evaluating measures and anticipated to be 1659 MW by the year 2015 with 8 % uniform annual growth. QESCO is dealing with Power Supply System in the whole Balochistan less District Lasbela. Bahawalnager to Bahawalpur and Tounsa Sharif to Rajanpur and bordering with Sind. MEPCO is envisaged for the creation of the resources and engineering plans for additions. The Charter of MEPCO is to provide the reliability. Balochistan and NWFP. It is smallest in terms of consumers but largest as it covers 43 % area of Pakistan. 2005. To have additional source another 2x220 KV Dadu-Khuzdar & DG Khan-Loralai Transmission Lines stands approved through out source funding at the cost of Rs 5. KESC came under new management in September. KESC is one of the city's largest employers: around 17. Multan Electric Power Co.437 and 5. Hopefully.000 people currently work for the company. At present. a significant number of professional managers with experience in running utility and other large companies have joined under this management and will be running it until the company is turned into a best practice utility. The safe drawl of power is 721 MW. KESC is the only vertically integrated power utility in Pakistan and manages 13 . 1913.089 billion respectively. quality and safety of electric power supply to the consumers in its Jurisdiction. Incorporated on September 13. Karachi Electric Supply Company Ltd. the work completion in totality is expected ending 2011. the company was nationalized in 1952 but was reprivatized on November 29. QESCO is operating as a Power Distribution Company and will act as Private Organization on switching over from Public to Private Sector.Quetta Electric Supply Co. MEPCO the Multan Electric Power Company is the biggest Distribution Company of WAPDA. Low voltage profile prevails due to long distances from Generating Sources. under the Indian Companies Act of 1882. renovation and augmentation of the distribution system in order to achieve charter. besides availability of Single 220 KV sources from Guddu. Its area of operation is from Sahiwal to Sadiqabad. QESCO system is under stress due to huge number of Agri: Consumers contributing about 70-80 % of Power Demand.

during this period of eight months. HR. MIS department employ the Windows XP / Linux Operating systems. Other department like Administration. Only MIS department is working in the old building. transmission and distribution of electricity. Lahore. Oracle Database system and also have oracle Java based applications. I spend first four weeks in different departments where as the last four weeks I spent in MIS department exclusively. The worthy Chief Executive Officer of The LESCO sits in the Head office. agricultural and residential areas that fall under its network. The MIS department is headed by Manager MIS.000 square kilometers and supplies electricity to all the industrial. commercial. This is based on ORACLE E-Business Suite certified platform. The MIS department of the LESCO is situated at LESCO’s old building at Railway station near Bohar wala Choke Lahore.the generation. 14 . Finance and Project Management also occupies in the Head office. A Brief Introduction of Branch where I worked I started my internship training in the Head office of the LESCO. The head office is situated at 22/A queen’s road. In the LESCO I stated my internship training on dated 01/08/2008 to 30/09/2008. KESC covers a vast area of 6.

M. O. Sr. Technical Operation Directorate HR & Admin Directorate Manager Internal Audit C. E. Planning MIS Manager Senior Sr. Manager (O&M) T&G Legal Directorate Finance Directorate G. E.Organizational Structure: Board of Directors Company Secretary C. Manager O&M Distribution Customer Services Manager P&D 15 .

Top Management: Sr. 1 2 3 4 5 6 7 8 9 10 Name Muhammad Azhar Iqbal Sardar-ul-Huda Rana Muhammad Ajmal Khan Abid Latif Lodhi Mehboob Alam Khalid Mehmood Farast Zaman Saghir Ahmad Abid Latif Lodhi Sayyad Mubashar Masood Position Held Chief Executive officer General Manager Technical Operation Director Senior Manager P&D Senior Manager O&M Distribution Senior Manager O&M (T&G) Customer Services Director HR Director Finance Director Legal Director/Company Secretary Manager Internal Audit 11 Zahid Hameed Board of Directors 16 .No.

Nestle Pakistan Chairman Nestle Pakistan Ltd. WAPDA 4 Salman Iqbal Executive Director (L&CA) 192 Wapda house Lahore PEPCO General Manager (C & M) G-44 Wapda House Lahore Power Ex-Chairman. 308 Upper Mall Lahore.M (GSC). 22-A Queens Road Lahore.1 Syed Yawar Ali Muhammad Azhar Iqbal Munawar Ahmad Malik Chairman. House Lahore 2 3 G. 4th Floor. 8 Finance Director LESCO Sayyad 9 Mubashar Masood Legal Director/Company Secretary 17 . Chief Executive LESCO New LESCO Head Quarter 22-A Queens Road Lahore Room 413-WAPDA. 132KV Grid Station McLeod Road. Institution of W-302 Phase Electrical Engineers UK Lahore Cant Chief Executive United Electronics III DHA 5 Khalid Javed 6 Khalid Saeed 7 Shahzad Alam Abid Latif Lodhi Officer 85 Industrial Estate Kot Lakhpat Lahore. opposite Moon Light Cinema. Ltd.

Sheikhupura District Okara and Customer services center.lesco.gov. District Lahore Customer services center. Kasur Mission Statement As the leading electricity distribution company. northern circle Customer services center. eastern circle Customer services center.REGISTERED HEAD OFFICE Chief Executive Office 22/A Queens Road Lahore Phone #: 0092 (42) 9204820-30 Fax #: 0092 (42) 9204801 www. Vision 18 . southern circle Customer services center. Ichhra Lahore Customer services center. has its main offices in following Districts. township Lahore District Sheikhupura Customer Services Center.pk Main Offices: Lahore Electric Supply Co. strive to provide un-interrupted electric supply and quality service to all customers at the minimum possible cost. central circle Customer services center. Okara District Kasur Customer services center.

Energy saving message dissemination Creating positive image of LESCO Take steps for welfare of company employees. Morale building and to create sense of belonging amongst company employees LESCO’s Organizational Structure (Comments): The organizational structure is simply a diagram of all the positions in an organization and their formal relationships to one another.Achieve and maintain the highest degree of efficiency. The immediate value of organization charts is that they illustrate an organization’s overall shape and configuration in a readily comprehensible manner. Goals Smooth and consistent flow/supply of electricity Prompt restoration of disrupted electricity supply Accurate and timely meter reading and billing Provision of electricity connection in minimum time Open door policy to facilitate our customers Special concessions for quick and timely payment of bill Availability of stores to deal with emergencies Feedback through Customer Services Centers Create awareness amongst employees for adopting safety measures while working on lines. staff and customer base will be of primary importance. Developing innovative business relationships both inside and outside our local distribution area will be key to our success. Public and company workers’ safety shall be high on our priority. Whatever an organization’s goals its structure should facilitate 19 . Retaining and growing our business. reliability and responsiveness as a public service organization for variety of customers.

socially responsible. The message from the CEO: "Lahore Electric Supply Company is building its future upon a foundation of strong core values. As electricity industry undergoes massive change. In organizations like LAHORE ELECTRIC SUPPLY CO. “The right structure” for an organization is determined by numerous factors. Stakeholders elect the board of directors to oversee the organization. Lahore Electric Supply Company looks forward to grow in this era of unprecedented opportunity. The board led by the chairman. Connections are established with in and among departments according to some logical pattern. and legal conduct The CEO and top level management collectively organize the business of Lahore Electric Supply Co. Through public-private partnerships. our success will come from respect for people. LESCO’s Organizational Structure is the vertical structure. Selecting. in an efficient manner. rewarding and replacing the CEO. board performs following duties.. Organizing is the process of dividing work among groups and individuals and coordinating their activities to accomplish organization’s goals. As s result of organizing. activities are segmented or departmentalized. Determining the firm’s strategic direction and reviewing financial performance. uncompromised commitment to safety. that reflects these values. I invite you to learn more about LESCO’s vision for the future and contribute through your valued suggestions. quality customer services and support for the communities we serve." A Brief Introduction to all Departments of LESCO Human Resources and Administration Under direction from the Chairman and Chief Executive Officer of the Company. We trust you will find our internet site interesting and informative. they are not only handle all the problems but continuously increase the number of projects. And these individuals have lack timely information. few are directly involved in managing the organization.the most effective and efficient use of available resources. Because adaptation is a key to competitive survival. makes major decisions affecting the organization. Infect this is really a hard responsibility to look after the business of such large company but due to their hardworking. HR & Admn Director shall be responsible for the recruitment and placement of the "right 20 . there are numerous stakeholders. assessing. and Assuring ethical.

Recruitment Manpower Planning Recruitment and Selection Appointment and Development Creation of Posts and Offices 2. Promotions 21 . training and development inputs to keep people in pace with the changing demands of their jobs. c) Develop the policies. a fair and objective system for promotion and career progression. b) Prepare a Human Resource Plan to support the short and medium-term goals of the company. etc. Duties / Functions of Manager (HR) 1. re-deployment / transfers Compensation and benefits administration Career planning and promotion Performance management Incentives administration Training and development Grant of Move over Grant of permission for higher education Consider and approve transfer requests. guidelines and procedures for the following human resources management concerns: Manpower planning / budgeting Recruitment and Selection Appointment. b) The creation of a working environment and operationalization of administrative support systems that will promote employee performance and productivity. deployment.people to the right jobs" and enhancing their levels of motivation / morale / job satisfaction through:a) The provision of the necessary support systems and structures such as an attractive compensation package. Sanction leave. More specifically the Human Resources Director shall perform following functions:a) A human resource philosophy. which shall govern the company’s actions with respect to human resources management.

Retirement Retirement and Resignation of Service Preparation of Pension Papers Actively supervise and Coordinate the Working of All Administration Staff Posted under LESCO’s Head quarter. However. The Same Will Be Submitted By Manager (Hr&A). Finance Directorate The Finance Director has overall responsibility of Finance Department. Transfer / Posting Transfer and Posting of Staff and Officer Vacancies Statement and Manpower Data Incumbency Statement / Register To Maintain List of Officer Stay Wise 4. Comments If So Required By Legal Section / Wafaqi Mohtasib Section Of This Office. He assists management in Strategic Management decision22 . Establishment Matter Relating To Technical / Non-Technical Staff Establishment Matter of Officer Regarding Training and Development Permission of Higher Education to All Employees under LESCO Permission to Employee for another Job All Establishment Matter Not Covered Here 5.Preparation of Seniority Lists / Fixation of Seniority Career Planning and Promotions Performance Management Training and Development Grant of Selection Scales Move Over Preparation and Circulation of Seniority Lists Maintenance of Service Books Pension Welfare Fund and Gli Cases Over Time / Off-Days Wages Cases 3. He is Financial Advisor of the Company. Miscellaneous The Cases of Wafaqi Mohtasib / Court Cases Regarding Establishment Matters Will Be Dealt by Legal / Wafaqi Mohtasib Cell of LESCO’s Head quarter.

Allocation of annual budget on the basis of activity i. Manager A/cs (F.e. Section Responsibility Manager Accounting Corporate Activity Corporate Administration Payroll Accounts 1 Corporate Accounting 2 Corporate Planning & Control Corporate Planning & Costing/Pricing Manager Finance (CP&C) Control Budgeting Loan Management Impress Banking Pension & Funds Audit Observation Reply Pre-Audit & Payments IOT Reconciliation Receivables/Payables Fixed Assets Register Accounts Consolidation & Financial Reporting 3 Head Quarter Accounts Dy. He controls all financial activities of the Company.. The major sections. He has additional responsibility of ‘Company Secretary’. No of transformers and No of Vehicles Monitor the budget with actual results on the basis of variance analysis 23 . Manager A/cs (H/Q) 4 Field Formation A/cs Dy. Area.F) Duties of Manager Finance-Corporate Planning & Control To receive the budget requirements from different formations of LESCO and consolidate the budget on the basis of activity level To prepare and present the budgeted P&L and Balance Sheet to the Finance Director for the approval of Authority & Board of Directors. responsibilities and activities as per new Organ gram given by PEPCO under Finance Director's control are as under: Sr. No of consumers.making.

SE (GSO) by issuing guidelines. Operational and other efficiency / performance indicators of the company To assist Finance Director in Board of Directors meetings and AGM Any other Job assigned by the Finance Director or Chief Executive. Any other Job assigned by the Finance Director Operation Directorate The basic tasks performed by the operation directorate are: Operation and maintenance of distribution system Operation and maintenance of sub-transmission and grid systems The Directorate consists of the following departments: O&M (T&Gs) Department The Operation & Maintenance (Transmission and Grid Stations) . Consolidation. The department carries out its functions in the field through the Superintending Engineer (Grid System Operation) . and carries out frequent inspection to ensure compliance by the field organization.O&M (T&Gs) department headed by a Senior Manager is responsible for the electrical network at 132KV and 66KV and has under its purview 67 132KV and 15 66KV Grid Stations and 1515 KMs of 132KV and 628 KMs of 66KV lines. Banking and Assets through Dy. O&M (Dist) Department The Operation & Maintenance (Distribution) .Close liaison with Financial Module group of WAPDA and prepare the Financial Model of LESCO on the basis of prehistoric data and different indicators. schedules and authorization for the preventive and emergency maintenance programs.O&M (Dist) department headed by a 24 . in the absence of Finance Director. Manager Accounts Concerned To assist Finance Director LESCO in day-to-day work To participate in different meetings for and on behalf of Finance director To work as adviser to the chief executive-LESCO. Admin. Job Description of Manager Corporate Accounting To supervise and check the work of B A Os / Section in charge of Payment. Development of monthly management accounts reporting system covering Financial.

Senior Manager. the following returns are prepared and issued. maintenance and safety policies and programs related to the entire LESCO electrical network. In order to update the assets information and to monitor the efficacy of its operation. and also the installation of the maximum demand meters. The system consists of 879 feeders totaling 20914 KMs of 11KV and 13694 KMs of 400V lines and 45706 distribution transformers. major equipment damages and occurrences of importance are received through telephone and fax from the field and are transmitted to the highest level in LESCO and WAPDA. calibration and repair of all the energy meters. It is headed by 02 Managers who have 03 distribution circles each as their areas of responsibility. Every accident occurring to an employee. and then instructions are passed for situation management. Policy guidelines. Technical Services and Operations 25 . is responsible for the electrical system at 11KV and 400V. member of public or animal is investigated meticulously and lessons learnt and disseminated. Safety Department The Safety Department headed by a Deputy Manager ensures that the system is operated in compliance with the statutory provisions regarding safety for the employees and the public. PDC Department The Power Distribution Control Department headed by an Executive Engineer has been set up to monitor the entire electrical network of LESCO round the clock. The department also has a civil engineering division headed by an Executive Engineer for the design. Information about the supply breakdowns. schedules and authorization for maintenance of feeders are issued to the 6 operating circles in the field headed by the Superintending Engineers and frequent inspections are carried out to ensure compliance. construction and maintenance of all the buildings of LESCO. Frequent inspections are carried out and safety parades by the employees are held to ensure that working practices are safe and the employees are adequately trained in safety measures. Technical Services Department The Technical Services Department carries out the testing.

e. MDI meter. Material Management Directorate Pre qualification and Registration of firms for supply of distribution / GSO Material Procurement of material through tender Disposal of unserviceable material / vehicles through tender and auction Formation of rate contract for regular supply of material with firms Arrangement of all kinds of material including T&P items from other DISCOs as per requirement of field formations Maintaining of minimum and maximum level of material in stores Issuance of material as per requirements of field formation Material Store Configuration Jurisdiction Sr. C. No.M&T organization is one of the most important departments in LESCO. This department also enables operation wing to reutilize defective T&P meters and thus saving a large amount of revenue by repairing these meters. It also attends any fault in metering equipmentinvolving panels. Field Store Name of Division 1 Regional Store Shalimar Name of Circle All Field/Construction Stores 26 . testing and re-calibration of energy meters the importance of M&T can’t be over emphasized. The low losses in B-2 & B-3 units of LESCO speak volumes for efficiency of M&T department.. P.Ts. M&T deals with checking installation. energy meter. It has dedicated and devoted staff and ready for duty at call at any time. the company revenue depends on accurate functioning of its cash box i.Ts or cable and this ensures continuity of supply to consumer using electricity in bulk.

Town Gulshan Ravi Central Lahore Northern Lahore 3 Southern Lahore Southern Lahore Central Lahore 4 Central Lahore Badami Bagh Fort Shalamar Baghbanpura Saddar Defense North Div. Construction South Div.I. Construction Depalpur Okara Renala Chunian Phool Nagar Raiwind Northern Lahore 5 Eastern Lahore Eastern Lahore 6 Construction Project Construction 7 Okara Okara Okara 8 Chunian Southern Lahore Southern Lahore Sheikhupura Northern Lahore 9 10 Kasur Shamke Kasur Muridke Ferozewala 27 .2 Northern Lahore McLeod Road Civil Line Samanabad Data Durbar Garden Town Johar Town Gulberg Ferozepur Road A.

T Lines (A) Under Development of Power (B) Under Energy Loss Reduction (C) Under System Augmentation Program 3. Kasur And Okara Districts.Village Electrification (A) Electrification Of Rural Areas Falls In Lahore. 5- Deposit Works 28 .T Feeders (A) Under Annual Development Programme (B) Under System Augmentation Program 2- Rehabilitation Of H.T Lines (A) Under Development of Power (B) Under Energy Loss Reduction (C) Under System Augmentation Program 4. Sheikhupura.Rehabilitation Of L.11 Sheikhupura City Sheikhupura Rural Sheikhupura Nankana Shahkot Shahkot Sheikhupura 12 13 Nankana Remote Store Shahkot Sheikhupura Sheikhupura Project Management / Construction Directorate 1- Construction/Bifurcation H.

Since the situation of Law and Order is very spoil in our county therefore security staff of the LESCO is also provided refresher courses to familiar with advance security systems and arms. Customer Services Directorate The tasks assigned to Customer Services Directorate in LESCO are: Implementation of Commercial Policies Monitoring and management of recovery process Monitoring of line losses and preparation of accurate line losses statements Settling consumer disputes involving technical. For this purpose a Training center is established in 220KV Grid Station Bund Road Lahore. commercial and tariff issues Processing and monitoring policies and procedures for Customer Services Inspection of field formations regarding Commercial and Customer Services matters Sanction. The departmental promotion exams and training is also performed in this center. All the newly induced officials and officers are required to pass their newly induction courses. Processing/sanctioning of various incentives for customers and employees introduced from time to time 29 . The newly induced employees are enrolled for newly induction program and they are trained for LESCO environment and systems. contract management and monitoring of specialized electricity consumptions such as Cable TV networks and neon signs etc.(A) Private New Connection & Extension of Load (B) Government Connection (C) Housing Schemes (D) Others Works Training Centers LESCO also provides refresher courses to the employees for working in computer based and modern systems.

It can help all kinds of businesses improve the efficiency and effectiveness of their business processes. the management information system department is also working effectively and efficiently. retrieve. To apprise Chief Executive about daily news / press clippings pertaining to LESCO To ensure press coverage of certain activities in forums / conferences Management Information System directorate Information can be technically defined as a set of interrelated components that collect. software. WAPDA played leading role in establishing computer center in 1968. managerial decision making and work group collaboration. visualize complex subjects and create new products. In Lahore Electric Supply Co. hardware. coordination and control information systems may also help managers and workers for analyze problems. This department is head by manager MIS.O To ensure projecting of customers oriented policies of LESCO in Press media. disseminates information in any organization is Management Information System. With the passage 30 .R. communications. They use Linux operation system. retrieve process.Effective marketing of electricity Tariff structuring and management of other tariff related matters Compilation of statistical data and management returns Co-ordination with Manager MIS for regulating effective billing program Surveillance and detection of electricity theft Taking effective measures for prevention of electricity theft Customer Services Directorate: Director Customer Services: 9204814 Manager Commercial: 9204850 Manager monitoring & Surveillance: 9202424 Functions/Job Responsibilities of P. store and distribute information to support the decision-making and control of an organization. transforms. I addition to supporting decision making. network or data resources that stores. It was a time when computer technology was bleak to majority government organizations. oracle based database and java oracle application suit. Any organized combination of people.

line losses system. All the managers and directors are highly qualified. effective relationship. Management Information system. Later on. Organization Management Analysis (OMA) The management of the Lahore Electric supply Company is appropriate for their jobs and responsibilities. The major millstone set for computer center was the computerization of electricity billing which was met through in house development of billing software. No. 31 . They communicate efficiently and effectively. The communication level of the whole management is very sufficient. Project Management / Construction dept. effective communications. Plan of Internship: Sr. The top level management and operation managers have good relationship. Management Information System. competent and experienced. computer center continued its expansion and presently 22-computer centers are in operation throughout Pakistan. skilled. adoptability. WAPDA Computer Center Lahore was attached with LESCO with effect from January 2000 as a process of corporatization of distribution companies. task management are present very well. 1 2 3 4 Starting Date 01/08/08 11/08/08 25/08/08 08/09/08 Ending Date 09/08/08 23/08/08 06/09/08 30/09/08 Duration (in days) 8 days 15 days 15 days 20 days Department Finance Department HR and Administration department. It has a sub-center at Sheikhupura providing services to Sheikhupura Circle. payroll and store management system were developed and implemented all over LESCO. The skills like leadership.of time. The Job Fit psychoanalysis of the managers is very sufficient.

ledger and subsidiary ledger. The working hours for duty are 9 AM to 5 PM With one holiday in a week. which is necessary for my two year MBA programme. Assistant manager. Administration. Administration department consist on administration manager. I learned about the major functions of keeping the record associated with accounting and finance. I worked under the Deputy Manager Administration who is very supportive and cooperative person. Director Finance heads this department. I worked in different department of the company during my internship training. which is necessary for management to know about cash positions. Personnel and administration department is very necessary in any organization.I selected the Lahore Electric supply co. balance sheets. cost of electricity for supply and distributions. for eight weeks in different departments including Finance. Under supervision of manager accounts I would be able to do financial analysis. Although the eight week training duration is very short period for study of any organization but I learned a lot due to the cooperation of the managers. income and earning sheets or profit and loss statement. which is necessary to know the exact position of the company. I also learned about the financial policies of the companies that are concerned with the problem of providing and handling the capital that is required for the business. for my internship training. which is necessary for public limited companies. HR executives and clerical staff. Project Management. The staff at Lahore Electric Supply Co. I started my training in Finance department during first week under the supervision of Manager Finance. Finance department is also responsible for the analysis of the working capital and the preparation of the annual accounts. is very cooperative and also they provided me information about my internship report. Though to get information is very difficult task but I managed it fruitfully. and Management information system department. published under the companies’ act and company ordinance. needs for the funds. a necessity to b e. Management gave me a schedule for each department where I worked. I also learned about annual reports. I also learned about bank reconciliations. After finance department I joined the Human Resources and Administration department for 10 days. During my internship in this department I learned about different function of the finance department. deputy manager administration. I have very carefully analyzed all the departments of the Company. He also did MBA. During my internship I worked in these departments under the supervisions of concerned managers. I worked in head office of Lahore Electric Supply Co. The numbers of functions being performed by administration department are so much to any other department. He told me about the various 32 . administration expenses and financial expenses.

In project management construction I also learned the Processing of the applications for New Connections / Reconnections / Load Extensions and Bulk Supply having load of more than 500 KW (Tariff Categories B – 3. procurement. After completing my job in Finance and Human Resources & Administration departments I attached with Project Management/Construction department. increment records. The duties of assistant Manager Administration are accommodation. job placement. promotions and retirements. The HR department deals with Recruitment.T Lines. The project management construction department deals with Construction and Bifurcation of H.T Lines. audit. The whole construction work and augmentation work of GSO and Distribution is carried out by project construction department. compensations / benefits and labor management. project managers.T Feeders. The system augmentation program is also managed Project Construction department. HR department also performs trainings. In system augmentation program software like Power system simulators. Advance Distribution studies and PSS are used for augmentation of existing system. charge sheets and termination. I also learned that how billing of overtime. This department also deals with issuance of show cause notice. In project construction department two further categories are Grid System Operation and Distribution system. B – 4. This department also controls the wages system and HRIS. project management department is headed by Senior Manager P&D. During my training in this department I learned that how the appointment record. Rehabilitation of H. How the performance of the employee is monitored. contracts bankers record of workers for annual increments prepare also preparation of government returns. Deputy Project managers. Test and interview of new employees. The Director HR and Admin advises management concerning various relations and represent management in the handling the complaints of employees. Rehabilitation of L. In Lahore Electric Supply Co. during my attachment with Project Management / Construction department I learned how the new Transmission and Distribution system is constructed.functions that administration department performs. assistant project managers and supervisors/overseas. C – 2 33 . I learned that what are the main activates in the project management construction department. and village electrification. The Project construction department comprises on Project Directors. employee recode is maintained. security issues and maintenance of vehicles. Telephones. TA/DA. Staff of this department is very cooperative like other departments in Lahore Electric Supply Co. Transport. security. This section also prepares the Promotions cases of the employees and also maintains the leave records. In engineering perspectives I learned how the study plan is prepared for augmentation of the new and existing system both in computerized and in manual environment.

The MIS department deals with Enterprise Resource Planning (ERP) system. ONLINE billing system. knowledge and technology. and Customer Information and Billing System. Data collection through Barcode reader. Material Management System. methodologies. I attached with the Management information system (MIS) department of Lahore Electric Supply Co. The MIS department of Lahore Electric Supply Co. Assistant Managers. I also learned about Enterprise Resource Planning system. During my training in this department I learned many new techniques. Project management/Construction. expertise. Financial Accounting and Information System. the Information / MIS department employ the Windows XP / Linux Operating systems. comprises on Manager.& C – 3) Approval & Design of External Electrification of Housing Schemes Approval & Design of Electrification of Multistory Buildings/Shopping Plazas Preparation of Distribution System Rehabilitation and extension and issuance of work orders there of Inspection of completed work orders Load flow studies of distribution network Technical adjudication of tenders for purchase of material Maintenance of record/data of 11kv feeders Updating database of 11kv feeders Load flow studies on Transmission Lines and design/development plans for Transmission Lines and Grid Stations Inspection of materials procured for works Development of standards and specification for materials/components and systems Finally after completing these departments of Finance. In MIS department of Lahore Electric Supply Company I learned how to make Queries in database system. The Structure and Function of MIS Department: 34 . HR and Administration. In Lahore Electric Supply Co. Deputy Managers. Oracle Database system and also have oracle Java based applications. I also leaned that how the Management information system in any organizations works. The MIS department is managed by Manager MIS. ONLINE transactions system and webpage development. Human Resource Management System. Data coders and Data entry operators. This is based on ORACLE EBusiness Suite certified platform.

In Lahore Electric Supply Co. the Information / MIS department employ the Windows XP / Linux Operating systems. This is based on ORACLE E-Business Suite certified platform. Oracle Database system and also have oracle Java based applications. OPERATING SYSTEM LINUX DATABASE ORACLE APPLICATIONS ORACLE JAVA Department Hierarchy 35 .

Payment using Bank Alfalah Direct Debit facility 36 .Manager MIS Dy Manager Dy Manager Dy Manager A. The collection data is submitted by Bank Alfalah to LESCO servers on daily basis. M (MIS) Major Functions /Operations of MIS department • Billing System • Payment Channels Payment using NADRA KIOSK Machines • Data Entry through Barcode Scanning • Transfer of Collection Data to the Utility Company • Customer Account on Company Website • Reporting System A: Billing System Data Preparation system Electricity billing of 2. has started the service of bill payment through credit cards for the convenience of its customers. M (MIS) A. M (MIS) A.1 million consumers Duplicate billing system at 10 customer service centers and all divisions B: Payment Channels Payment using Bank Alfalah Credit Card. in collaboration with Bank Alfalah. M (MIS) A. M (MIS) A. LESCO. M (MIS) A.

The collection data is submitted by NADRA to LESCO servers on daily basis. Bank users. At present 355 branches in LESCO are equipped with this system collecting about 25% of bills. LESCO started printing machine-readable bills from February 2005. in October 2004. Bill Collection at Banks Data Entry through Barcode Scanning Bills are paid at designated branches as usual. With a single scan. Monthly collection reports are also available.Payment using NADRA KIOSK Machines LESCO. on trial. Mr. but with a technical difference. together with NADRA. LESCO submitted a comprehensive proposal to resolve this issue to WAPDA Authority headed by the Chairman WAPDA. This data is available for the utility company for immediate download. can generate daily scrolls and collection summary. Transfer of Collection Data to the Utility Company The collection data from banks is transferred to online servers on daily basis using a simple Internet connection. The system was formally launched on March 19. The collection system was also deployed. has also started the service of bill collection at NADRA kiosks.. Customer Account on Company Website 37 . 2005. without any effort. Tariq Hamid. Payment through more than 350 online bank Branches and Post offices. Realizing the need to resolve the issue of long queues for LESCO Bill payments. which is saved with the single click of a button. all the information encoded in the barcode is instantly transferred to the software. Alternatively a collection file may be generated and carried on portable media if no Internet connection is available. The bills are scanned by the bank cashier using an average barcode scanner just like a retail store cashier does for grocery items. in a limited number of bank branches in the beginning of February. Utility bill payment was very tedious task and people had to stand outside banks for an extended period of time. Provision is also given for entry of amended bills bearing barcode and bills carrying no barcode. Chief Executive Officer decided to explore the Payment channels.

The billing and receipt data is uploaded to the online server whenever it experiences any change. Benefits MRBCS offers a win-win situation for all the three stakeholders. Consumers are able to access true online services at the company website. which include the following. For LESCO Reduced time gap between collection and posting to customer account Instant recovery analysis & timely remittance processing Easier stub data entry. reporting & reconciliation Overall reduced cost of collection processing & cash posting Boost to overall image of the company Improved customer service For Customers Much less time for making payments at banks Ease in obtaining duplicate bills Can use company website to Confirm payment made View & print electricity bills Retrieve consumption & payment history Check account status For Banks 38 . Viewing monthly bills Printing duplicate bills Payment confirmation Consumption and Payment History Account Status.

Much less time required for receiving bills Data consolidation on a utility company provided system Effortless scroll and report generation Reduced cost of bill collection Machine Readable Bill Collection Trial for All Utilities Following the instructions of GOP. LESCO has extended MRBCS capability for receiving PTCL. LESCO has also provided its assistance to these utility companies in printing machine-readable bills on a standardized format. Financial Accounting and Information system Financial Control Transparent Transactions (Db/Cr) Immediate Monthly Accounts (Month end closing means last day of the month) Instant financial analysis Online Cost center (drawing & disbursement offices) wise demand. C: Reporting System Management information system Line losses system Special requirements of Chief Executive Office and other field offices D: Other Systems Payroll system Inventory Management System Support of MIS department with other departments 1. 5. Government adjuster processing system. remittance & Account Head wise expenditure Instant payable/receivable analysis Multi-year accounting 39 . WASA and SNGPL bills as well in its area of operation.

C. Material Management department It will cover pre-purchase to post disposal and its immediate affect on general ledger. Inventory Structure (Categories and Items) Supplier’s record & their specialty in Products Immediate information about the required material on the basis of D.Budget & expenditure comparisons Bank Collection & Remittance Management (Realization on Company & Accounting Unit Basis) Profit & Loss Statement Fixed Asset Management Pension/Fund Account Management Pension Disbursement Trial Balance Balance sheet Classified Balance Sheet Classified Income Statement 2.O etc. Procurement Annual Requirement Plan Ordering with Delivery Schedule Maximum/Minimum/Re-Order Levels Item Purchase Analysis Inventory Management Receipt (Supply. Other Dist. Scrapping Material Movement Analysis Inventory Tracking & Holding 40 . it will also be available to Finance Director for financial vetting. Companies) Store Returns specially with reference to M. R. Transfer) Store Allocation (to Field Stores) Store Requisition Store Issue Transfers (Workshop.C. Repair. The moment any file for procurement is moved.O etc.N paid with reference to new connection. Field Store. Regional Store.

to save time we can allow candidate to apply any time. overtime etc. It is strange that we are not aware exactly how many employees do we have & what expenditure is being incurred. free supply. medical treatment. Human Resource department All most all HR & Admn: activities from pre-hiring to post retirement have financial impact on company. Candidate Filtering Call Letter Issue Testing & Interviewing Appointment Career Profiling Personnel Data Management Performance Review Termination Promotion Change in shift/timings Resignation Transfer Suspension Restoration Re-appointment Disciplinary Cases/Actions Audit Paras Training Courses & Examination ACRs. These include salary. house acquisition. TA/DA.Disposal Disposal Order Disposal Issue 3. Service Book 41 . Recruitment Processing Application Management.

Division and even Subdivision wise Billing (Need not to wait for MR of all Divisions). Corporate Billing One Demand Note for Capital Cost & security and payment facility at any bank. Customer Information and Billing System Customer Services Unique Customer ID Assignment. Bill Distribution through e-mail. direct to customer’s bank. more time for Bill payment.HR Analysis Sanctioned Strength Vacancy Statements Seniority List Retirement Forecast Administration: Vehicle control Complete picture of all vehicles with reference to allocation. description. Automatic Bill Adjustment Processing. monthly expenditure on P. Customer Information System Tariff and Customer Classification Management 42 .O.L etc. no UT cash even in multiple change of reference. Payroll Disbursement Channel Management Pay Scale/Salary Group Management 4. normal channel etc. no complaint for bill correction problems.

The matter of cost is also significant in LESCO’s vision. strive to provide un-interrupted electric supply and quality service to all customers at the minimum possible cost. But to provide the electricity round the clock it is necessary that the power houses must work effectively and 43 .” Since LESCO is a public institute and NEPRA is responsible for its tariff selection etc. Circle. therefore the company is not successive in achieving their goals and objectives. Remittance & Reconciliation (Various Levels) Management Line Losses System Company. its board of governors and top level management is trying at their best for providing uninterruptible supply at customer premises. But unfortunately due to the erroneous government policies the most important part of power generation is lost. Therefore as described in LESCO’s mission statement that leading electricity Distribution Company providing UN interrupted supply at minimum possible cost. The failure of electricity is governed and supervised by PEPCO. The whole company. The current strategies of LESCO are towards the provision of electric supply all the time. Sub-Division. manual. is still unachievable. Division. Feeder and Transformer Losses Critical Analysis Vision of the LESCO “As the leading electricity distribution company. Grid.Corporate Account Management WAPDA Employee Management Change of Reference Management Infrastructure Rental Management Power Purchase System and Power Sale & Billing System Billing information to Oracle Receivables for instant Balance Sheet Consumer Metering Consumer Meter Reading. MR entry at Sub Div to avoid duplication of work & AMR Metering Adjustments with immediate revise Bill and automatic adjustment processing Bill Collection System Bank Collection.

Shaikhupura. Whole of this scenario creates a boost in cost of electricity. Therefore provision of electricity at low cost is not possible until now. Now the work is too much and a lot of financial aid is requiring sustaining the power houses. of customers in Districts of Lahore. The government also did not pay any attention on this matter. Okara and Kasur Weakness • Large time required for processing any project/job • Communication system between employees is not sufficient • Customer services centers required well trained and loyal staff • Lake of loyalty. consistency and regulatory in the staff • Financial statement is showing loss in year 2008 • People has less trust over company • Customer’s guide ness is not sufficient 44 . SWOT Analysis Strength • • • • • • • • • • • • • • • One Window service facility at each Sub-Division Establishment of Computerized Customer Service Centers in each Circle Establishment of Mobile Customer Service to facilitate installments and corrections of the bills Central Chief Executive Customer Service Center Positioning of Field offices near geographic center of their jurisdiction and co-location of XEN & RO offices Printing of 12 months billing detail on bill Printing of CEO's telephone numbers on the bill Well defined and uniform policy for detection bills Enhanced allocation for Development and Maintenance More branches of scheduled banks and post offices authorized to collect bills Establishment of Model Sub-Divisions Restructuring of Stores to ensure prompt availability Establishment of Marketing Cell and Task Force at LESCO HQ to facilitate industrial/commercial consumers Great No. Therefore the power houses require complete maintenance and testing.efficiently.

• Some other competitors like GEPCO and MEPCO have their own power generation system. therefore political environments are decreasing the efficiency of the company. Kasur and Shaikhupura Conversion of petrol vehicles to CNG Purchase of new vehicles for field formation Threats • Since LESCO is a public organization. • Politics in the employees and labor unions are very awful for company • Government’s pitiable projects also spoiling the publicity of the LESCO • The overall performance of the LESCO also decreasing 45 . • In future it is expected that the market value of the LESCO will be decreased.• • Customer’s complaint system is very old and execution on the complaint is very fatigue Customers and employees relation is very poor Opportunities • • • • • • • • Corporatization and commercialization goals as per plan Establishment of mobile customer services center at each circle Distribution system rehabilitation under System Augmentation Program (SAP) for reduction in energy losses Timely execution of development works and LT/HT Proposals under SAP New Grid Stations and augmentation/extension of existing Grid Stations and Transmission Lines Establishment of Computer Billing Center at Okara. therefore LESCO is dependent on those companies.

45 0.52 0.10 0.Internal Factor Evaluation Matrix (IFE IFE MATRIX MATRIX) Weight Rating W/ Score 0.10 0.00 2.05 0.04 0.28 0. In the above IFE prevailing conditions the company LESCO falls at weighted scores 2.64 0.16 0. with the standard score being 4 3 4 3 4 2 2 2 1 1 0. Total weighted scores well below 2.07 0.08 0.11 0.1 0.16 0.0 to a high of 4. Okara and Kasur Weaknesses 6 Strictly a local company 7 Lack of communication system 8 Financial statement is showing loss in year 2008 9 1 0 Customers and employees relation is very poor People has less trust over company 4 5 Total 1.5 designates a well-built inner position. of customers in Districts of Lahore.15 0. External Factor Evaluation Matrix (EFE MATRIX) 46 .72 The total weighted score can ring from a low of 1.10 Strengths 1 Well known for electricity distribution services 2 Establishment of Computerized Customer Service 3 Printing of 12 months billing detail on bill Strong balance sheet Great No. Shaikhupura.33 0.02 0.5 differentiate business that is weak internally.5.13 0. where as scores considerably above 2. it means the LESCO has better internal structure.

Strength Threats. Then in the four strategy quadrants labeled Strength Opportunities.EFE MATRIX Opportunities 1 Establishment of mobile customer services 2 Timely execution of development works and LT/HT Proposals 3 New Grid Stations and augmentation/extension of existing Grid Stations and Transmission Lines 4 Conversion of petrol vehicles to CNG 5 Weight Rating W/ Score 0. opportunities. simply list the firm's strengths.16 0.08 0. list specific strategies that would benefit the firm in light of those underlying factors.13 Purchase of new vehicles for field staff Threats 6 It is expected that the market value of the LESCO will be 0.16 0.03 Government’s pitiable projects also spoiling the publicity 0.36 0.15 0.07 of the LESCO Total 1.73 0.00 Threats Opportunities Weakness and Strength (TOWS Matrix) TOWS Matrix.05 decreased 7 Politics in the employees and labor unions are very awful 0.05 0. These are the same factors you earlier determined (ranked) to be most important in your external and internal audits.03 0. and threats in boxes along the top and side of the matrix as indicated on the sample TOWS Matrix provided on the next page.12 4 3 3 3 3 2 1 2 1 1 0. Weakness Opportunities.16 0.07 2.48 0. 47 . weaknesses.39 0.45 0. and Weakness Threats.64 0.1 0.05 for company 8 9 1 0 Financial statement is showing loss in year 2008 The overall performance of the LESCO also decreasing 0.

Increase the quality of the communication systems. To offer designs solution to the customers. Opportunities Corporatization and commercialization goals as per plan. Positioning of Field offices near geographic center of their jurisdiction. Invest in the augmentation of the new grid station and increase the capability of transmission lines. Weakness Large time required for processing any project/job Communication system between employees is not sufficient Customer services centers required well trained and loyal staff Lake of loyalty. co-location of XEN & RO offices Printing of 12 months billing detail on bill. To meet the high demand of the WO Strategies Improve the file processing system so that the implementation of the new planes comes into reality at a shorter time. consistency and regulatory in the staff Financial statement is showing loss in year 2008 People has less trust over company Customer’s guide ness is not sufficient Customer’s complaint system is very old and execution on the complaint is very fatigue. Distribution system rehabilitation under System Augmentation Program (SAP) for reduction in energy losses.Strength One Window service facility at each Sub-Division Establishment of Computerized Customer Service Centers in each Circle Establishment of Mobile Customer Service to facilitate installments and corrections of the bills Central Chief Executive Customer Service Center. Establishment of mobile customer services center at each circle. Execute the pilot projects gradually. Arrange periodic training system 48 . Timely execution of development SO Strategies present a better way of performing jobs in tune with the established brand And Increase Market shares.

Increase the accessibilities of the employees.works and LT/HT Proposals under SAP. Conversion of petrol vehicles to CNG Purchase of new vehicles for field formation. Kasur and Shaikhupura . Arrange a job fit analysis and arrange right person for right job. To be cautions in the event of change of government and process of reforms falling of the tracks. To train the manpower to counter the threats of emergencies. Threats Since LESCO is a public organization. Establishment of Computer Billing Center at Okara. Always be aware about the WT Strategies Reduce the dependency on the government policies. to increase the knowledge and skills of the employees. In future it is expected that the market value of the LESCO will be decreased. To check the emergencies and arrange necessary measures for it. New Grid Stations and augmentation/extension of existing Grid Stations and Transmission Lines. customers make plans and implement in the shortest possible time periods. therefore LESCO is dependent on those companies. Some other competitors like GEPCO and MEPCO have their own power generation system. To tie up with the small contractors on business sharing arrangements to prevent price raise. Politics in the employees and labor unions are very awful for company Government’s pitiable projects also spoiling the publicity of the LESCO ST Strategies To increase lobbying with the government to prevent extension of purchase and maintaining level playing field in the segments. 49 . therefore political environments are decreasing the efficiency of the company. Enhance the market value by getting the long term customers trust and loyalty. break downs etc.

56 0.05 0.28 3. Competitive Profile Matrix FESCO LESCO GEPCO Weight Rating W/Score Rating W/Score Rating W/Score 0.33 0.39 0.64 0.32 0.32 0.33 0.12 0.52 0.14 0.48 0.11 0.08 0.14 3.14 2.15 0.28 4 3 1 3 3 3 4 4 4 4 0.The overall performance of the LESCO also decreasing laborer union agenda etc.20 0.18 0.10 0.00 3 4 4 4 3 2 4 3 4 2 0.26 0.09 0.24 0.21 2 3 2 3 3 4 1 2 3 2 0.03 0.42 0.07 1.16 0.42 0.09 0.70 Competitive Factor Cost competitiveness Quality of installation Reputation Reliability of Supply and installation Complaint Handlings Management structure Market shares Customer Services Centers and Facilities Maintenance and testing of Equipments Customer Loyalty Total BCG Growth-Share Matrix 50 .33 0.03 0.32 0.13 0.42 0.36 0.56 0.12 0.14 0.42 0.

Therefore according to the Bostn Growth Shares Matrix the LESCO falls in Question Marks. They cannot provide their services beyond the limitations. Since in the Districts of Lahore Kasur Shaiku pura and okara only LESCO is responsible for providing the services therefore no other substitute or there is no any new company. But in the case of LESCO the competitors are limited to provide their services in the defined areas of the country. which can provide electric supply. The result is a large net cash consumption.The Lahore Electric Supply Co. 51 . Porter Five Forces Analysis The porters five forces comprises on the following factors • Suppliers power • Threats of Substitute • Buyers Power and • Barriers to entry. but because they have low market shares they do not generate much cash. consume large amounts of cash.

It provides electricity to the consumers of the Dist. The top-level management has ample potential to make this company as a superb company. The extra equipment for maintenance and complaint attendance must be provided to the staff. For complaints and other customer related tasks. The communication gap between senior management and lower technical. Shaikhupura and Kasur. and inexperienced customer services department is spoiling the image of the company. But unfortunately the provision of equipments for maintenance purposes. Necessary actions should be taken against the span between the demand and supply. online computerized system should be arranged. The application processing system must be improved. The response of the employees on the failure of the supply must be enhanced. the government’s lengthy planes. It is performing his job very well but certain improvements and developments are required. The middle level and bottom level management is also very hard working. is a big organization. Okara. References and Sources Used • • • • Website of LESCO/PEPCO/WAPDA Technical brushers of LESCO Personal meetings with different mangers LESCO new induction training program booklets 52 . maintenance staff must be improved. The trust of the customers must be retained. Following conclusions are described here • Increase in Raw material • Slow speed of implementation must be eliminated • Make exact estimate of the demand • Reduce the political factors in lesco’s projects and system augmentations. The demand of electricity of the consumers must be fulfilled at top priority. The organizational hierarchy Inside the organization must be reduced. This organization has vertical management system.Conclusion The Lahore Electric Supply Co. Recommendations The employees must be well trained for customer services issues. punctual and geniuses. Lahore.

2007 and 2008 Technical data prepared and collected by LESCO’s library. Strategic management by Mr. copyright by Virtual University of Pakistan 53 .• • • • Standard Operating Procedural (SOP) documents Annual Reports published by LESCO for FY 2006. Shafiq.

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