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


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


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

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. The aim of this transition is to install corporate and business culture through: adopting of good business practices, enhancing productivity and efficiency, including customer orientation and service culture, improving quality of services setting performance targets, reducing costs, theft and wastage. This will be based on extensive use of information technology, management information systems, and monitoring and prudent decision-making. 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. PEPCO has been fully empowered and is responsible for the management of all the affairs of corporatized nine Distribution Companies (DISCOs), four Generation Companies (GENCOs) and a National Transmission Dispatch Company (NTDC). These companies are working under independent Board of Directors (Chairman and some Directors are from Private Sectors). All Entities have the physical possessions of all their operational assets. On 24th Feb. 2007 Ministry of Water & Power notified NEPRA approved Tariff for all Distribution Companies replacing unified WAPDA Tariff. Legal Agreements such as Business Transfer Agreements, Operation Development Agreement, Energy Supply Agreement, Business Supplementary Agreement and Fuel Supply Agreement etc. are executed between Lahore Electric Supply Co. and Corporate Entities to facilitate commercial operations. Regulatory instruments like Grid Code, Distribution Codes, and Performance Standard for Distribution Companies and Transmission Companies were drafted and got approved from NEPRA in 2007.


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, Transmission and Distribution of Electric Power Act 1997, the authority grants the license to the Lahore Electric Supply Co. 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. According to the license issued to the Lahore Electric Supply Co. the company have to provide the electric supply to their Domestic, Bulk, Commercial and industrial consumers.

Business Volume: Operating Fixed Assets Capital Work In Progress Long Term Advances Long Term Deposits and Deferred Costs Stores, spare parts and loose tools Trade Debtors Loans, advances and other Receivables Cash and bank balances Grand Total Rs. 21,311 (in Millions) Rs. 2,130 Rs. 23,440 Rs. 51 Rs. 0.36 Rs. 23,491 Rs. 2,151 Rs. 7,686 Rs. 8,046 Rs. 9,534 Rs. 50,908.30

Product Lines:

Lahore Electric Supply Co. distributes the electric power/supply to Domestic, Commercial, Industrial and Bulk consumers. The company also provides the maintenance of Electrical Equipments. Competitors: Faisalabad Electric Supply Co. Gujranwala Electric Power Co. Hyderabad Electric Supply Co. Islamabad Electric Supply Co. Peshawar Electric Supply Co. Quetta Electric Supply Co. Multan Electric Power Co. Karachi Electric Supply Company Ltd. Overview of the Competitors: Faisalabad Electric Supply Co. FESCO Distributes and supplies electricity to about 2.76 million customers within its territory with a population over 26.5 million under a Distribution License granted by National Electric Power Regulatory Authority (NEPRA) pursuant to the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act). Geographical service area of FESCO comprises Faisalabad, Sargodha, Mianwali, Khushab, Jhang, Bhakker, T.T Singh and Chiniot. Gujranwala Electric Power Co. Gujranwala Electric Power Company (GEPCO) has been setup over area of jurisdiction and network of former Area Electricity Board, which was created in early eighties. It encompassed the areas of existing Districts of Gujranwala, Hafizabad, Sialkot, Narowal, Gujrat and Mandi Bahauddin. GEPCO was incorporated on 25th April 1998 and obtained Certificate for commencement of business on 5th June 1998. Management and Administration is entrusted to a Board of Directors. We have about 2,356,305 connections; Average monthly Collection for the year 2008-09 is approximately 3.2


billion Rupees. Hyderabad Electric Supply Co. Area Electricity Board (AEB) Hyderabad was one of the eight AEB's constituted through amendments in WAPDA Act during 1981. Later on Government of Pakistan approved revamping of WAPDA power sector in April 1998, resultantly twelve corporate entities were formed, Eight Distribution Companies (DISCOs), one National Transmission and Distribution Company (NTDC) and three Generation Companies (GENCOs). Now one more GENCO has been established. All these companies have been incorporated under Companies Ordinance 1984. Islamabad Electric Supply Co. IESCO aspires to become a major, diversified, transitional, integrated power supply company in Pakistan, with a strong environment conscience, playing a national role in electricity supply and distribution. At IESCO, we believe that time has come for us to set our sights beyond just being a provider of conventional services. 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. Our Mission is to bring the assurance of energy to our customers, with world-class quality and commitment for satisfaction as we continue in our quest for excellence. Peshawar Electric Supply Co. Peshawar Electric Supply Company (PESCO), located in Peshawar provides service of power distribution to over 2.0 million consumers of all civil districts of N.W.F.P, Pakistan. At PESCO networks, we own and maintain N.W.F.P’s electricity distribution system via 132, 66, 33KV sub-transmission lines, sub-stations and 11KV & 440V low tension lines with distribution transformers that deliver electricity to your home or business.


Quetta Electric Supply Co. QESCO is operating as a Power Distribution Company and will act as Private Organization on switching over from Public to Private Sector. QESCO is dealing with Power Supply System in the whole Balochistan less District Lasbela. It is smallest in terms of consumers but largest as it covers 43 % area of Pakistan. 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 system is under stress due to huge number of Agri: Consumers contributing about 70-80 % of Power Demand. Low voltage profile prevails due to long distances from Generating Sources, besides availability of Single 220 KV sources from Guddu. The safe drawl of power is 721 MW. 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 5.437 and 5.089 billion respectively. Hopefully, the work completion in totality is expected ending 2011. Multan Electric Power Co. MEPCO the Multan Electric Power Company is the biggest Distribution Company of WAPDA. Its area of operation is from Sahiwal to Sadiqabad, Bahawalnager to Bahawalpur and Tounsa Sharif to Rajanpur and bordering with Sind, Balochistan and NWFP. The Charter of MEPCO is to provide the reliability, quality and safety of electric power supply to the consumers in its Jurisdiction. MEPCO is envisaged for the creation of the resources and engineering plans for additions, renovation and augmentation of the distribution system in order to achieve charter. Karachi Electric Supply Company Ltd. KESC is one of the city's largest employers: around 17,000 people currently work for the company. It is also one of the oldest companies in Karachi and was established in the city even before the creation of Pakistan in 1947. Incorporated on September 13, 1913, under the Indian Companies Act of 1882, the company was nationalized in 1952 but was reprivatized on November 29, 2005. KESC came under new management in September, 2008; 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. At present, KESC is the only vertically integrated power utility in Pakistan and manages

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


Organizational Structure:
Board of Directors

Company Secretary C. E. O.

HR & Sr. Manager (O&M) T&G Finance C. E. Planning Senior Manager P&D Directorate MIS Manager Sr. Manager O&M Distributio n Customer Services Legal Directorate G.M. Technical Operation Directorate Admin Directorate Manager Internal Audit


Top Management: Sr.No. 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


Zahid Hameed

Board of Directors


1 Syed Yawar Ali Muhammad Azhar Iqbal Munawar Ahmad Malik

Chairman, Nestle Pakistan Chairman Nestle Pakistan Ltd. Ltd. 308 Upper Mall Lahore. Chief Executive LESCO New LESCO Head Quarter 22-A Queens Road Lahore Room 413-WAPDA, House Lahore




4 Salman Iqbal

Executive Director (L&CA) 192 Wapda house Lahore PEPCO General Manager (C & M) G-44 Wapda House Lahore Power Ex-Chairman, 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. 4th Floor, 22-A Queens Road Lahore. 132KV Grid Station McLeod Road, opposite Moon Light Cinema.


Finance Director LESCO

Sayyad 9 Mubashar Masood

Legal Director/Company Secretary


REGISTERED HEAD OFFICE Chief Executive Office 22/A Queens Road Lahore Phone #: 0092 (42) 9204820-30 Fax #: 0092 (42) 9204801 www.lesco.gov.pk Main Offices: Lahore Electric Supply Co. has its main offices in following Districts, District Lahore Customer services center, Ichhra Lahore Customer services center, central circle Customer services center, northern circle Customer services center, southern circle Customer services center, eastern circle Customer services center, township Lahore District Sheikhupura Customer Services Center, Sheikhupura District Okara and Customer services center, Okara District Kasur Customer services center, Kasur

Mission Statement As the leading electricity distribution company, strive to provide un-interrupted electric supply and quality service to all customers at the minimum possible cost. Vision

Achieve and maintain the highest degree of efficiency, reliability and responsiveness as a public service organization for variety of customers. Public and company workers’ safety shall be high on our priority. Retaining and growing our business, 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. 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. 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. The immediate value of organization charts is that they illustrate an organization’s overall shape and configuration in a readily comprehensible manner. Whatever an organization’s goals its structure should facilitate

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

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, a fair and objective system for promotion and career progression, training and development inputs to keep people in pace with the changing demands of their jobs, etc. b) The creation of a working environment and operationalization of administrative support systems that will promote employee performance and productivity. 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. b) Prepare a Human Resource Plan to support the short and medium-term goals of the company. c) Develop the policies, guidelines and procedures for the following human resources management concerns: Manpower planning / budgeting Recruitment and Selection Appointment, deployment, 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. Sanction leave.

Duties / Functions of Manager (HR) 1. Recruitment Manpower Planning Recruitment and Selection Appointment and Development Creation of Posts and Offices 2. Promotions

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. 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. 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. 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. Miscellaneous The Cases of Wafaqi Mohtasib / Court Cases Regarding Establishment Matters Will Be Dealt by Legal / Wafaqi Mohtasib Cell of LESCO’s Head quarter. However, Comments If So Required By Legal Section / Wafaqi Mohtasib Section Of This Office, The Same Will Be Submitted By Manager (Hr&A).

Finance Directorate The Finance Director has overall responsibility of Finance Department. He is Financial Advisor of the Company. He assists management in Strategic Management decision22

making. He controls all financial activities of the Company. He has additional responsibility of ‘Company Secretary’. The major sections, responsibilities and activities as per new Organ gram given by PEPCO under Finance Director's control are as under: Sr. Section Responsibility Manager Accounting Corporate Activity Corporate Administration Payroll Accounts


Corporate Accounting


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


Head Quarter Accounts

Dy. Manager A/cs (H/Q)


Field Formation A/cs

Dy. Manager A/cs (F.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. Allocation of annual budget on the basis of activity i.e., Area, No of consumers, No of transformers and No of Vehicles Monitor the budget with actual results on the basis of variance analysis


Close liaison with Financial Module group of WAPDA and prepare the Financial Model of LESCO on the basis of prehistoric data and different indicators. Development of monthly management accounts reporting system covering Financial, 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. Job Description of Manager Corporate Accounting To supervise and check the work of B A Os / Section in charge of Payment, Admin, Consolidation, Banking and Assets through Dy. 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, in the absence of Finance Director, 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) - 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. The department carries out its functions in the field through the Superintending Engineer (Grid System Operation) - SE (GSO) by issuing guidelines, schedules and authorization for the preventive and emergency maintenance programs, and carries out frequent inspection to ensure compliance by the field organization. O&M (Dist) Department The Operation & Maintenance (Distribution) - O&M (Dist) department headed by a

Senior Manager, is responsible for the electrical system at 11KV and 400V. The system consists of 879 feeders totaling 20914 KMs of 11KV and 13694 KMs of 400V lines and 45706 distribution transformers. Policy guidelines, 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. The department also has a civil engineering division headed by an Executive Engineer for the design, construction and maintenance of all the buildings of LESCO. Technical Services Department The Technical Services Department carries out the testing, calibration and repair of all the energy meters, and also the installation of the maximum demand meters. It is headed by 02 Managers who have 03 distribution circles each as their areas of responsibility. 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. Information about the supply breakdowns, 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, and then instructions are passed for situation management. 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. 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. Every accident occurring to an employee, member of public or animal is investigated meticulously and lessons learnt and disseminated. In order to update the assets information and to monitor the efficacy of its operation, maintenance and safety policies and programs related to the entire LESCO electrical network, the following returns are prepared and issued. Technical Services and Operations


M&T organization is one of the most important departments in LESCO, the company revenue depends on accurate functioning of its cash box i.e., energy meter, M&T deals with checking installation, testing and re-calibration of energy meters the importance of M&T can’t be over emphasized. It also attends any fault in metering equipmentinvolving panels, MDI meter, C.Ts, P.Ts or cable and this ensures continuity of supply to consumer using electricity in bulk. The low losses in B-2 & B-3 units of LESCO speak volumes for efficiency of M&T department. It has dedicated and devoted staff and ready for duty at call at any time. This department also enables operation wing to reutilize defective T&P meters and thus saving a large amount of revenue by repairing these meters. 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. No. Field Store Name of Division 1 Regional Store Shalimar Name of Circle All Field/Construction Stores



Northern Lahore

McLeod Road Civil Line Samanabad Data Durbar Garden Town Johar Town Gulberg Ferozepur Road A.I. Town Gulshan Ravi

Central Lahore

Northern Lahore


Southern Lahore

Southern Lahore

Central Lahore


Central Lahore Badami Bagh Fort Shalamar Baghbanpura Saddar Defense North Div. Construction South Div. Construction Depalpur Okara Renala Chunian Phool Nagar Raiwind Northern Lahore


Eastern Lahore

Eastern Lahore



Project Construction







Southern Lahore Southern Lahore Sheikhupura Northern Lahore

9 10

Kasur Shamke

Kasur Muridke Ferozewala




City Sheikhupura Rural Sheikhupura Nankana Shahkot Shahkot


12 13

Nankana Remote Store Shahkot

Sheikhupura Sheikhupura

Project Management / Construction Directorate

Construction/Bifurcation H.T Feeders

(A) Under Annual Development Programme (B) Under System Augmentation Program

Rehabilitation Of H.T Lines

(A) Under Development of Power (B) Under Energy Loss Reduction (C) Under System Augmentation Program 3- Rehabilitation Of L.T Lines (A) Under Development of Power (B) Under Energy Loss Reduction (C) Under System Augmentation Program 4- Village Electrification (A) Electrification Of Rural Areas Falls In Lahore, Sheikhupura, Kasur And Okara Districts.

Deposit Works


(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. The newly induced employees are enrolled for newly induction program and they are trained for LESCO environment and systems. 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. For this purpose a Training center is established in 220KV Grid Station Bund Road Lahore. All the newly induced officials and officers are required to pass their newly induction courses. The departmental promotion exams and training is also performed in this center.

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, commercial and tariff issues Processing and monitoring policies and procedures for Customer Services Inspection of field formations regarding Commercial and Customer Services matters Sanction, contract management and monitoring of specialized electricity consumptions such as Cable TV networks and neon signs etc. Processing/sanctioning of various incentives for customers and employees introduced from time to time

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.R.O To ensure projecting of customers oriented policies of LESCO in Press media. 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, retrieve process, store and distribute information to support the decision-making and control of an organization. I addition to supporting decision making, coordination and control information systems may also help managers and workers for analyze problems, visualize complex subjects and create new products. It can help all kinds of businesses improve the efficiency and effectiveness of their business processes, managerial decision making and work group collaboration. Any organized combination of people, hardware, software, communications, network or data resources that stores, retrieve, transforms, disseminates information in any organization is Management Information System. In Lahore Electric Supply Co. the management information system department is also working effectively and efficiently. This department is head by manager MIS. They use Linux operation system, oracle based database and java oracle application suit. WAPDA played leading role in establishing computer center in 1968. It was a time when computer technology was bleak to majority government organizations. With the passage

of time, computer center continued its expansion and presently 22-computer centers are in operation throughout Pakistan. The major millstone set for computer center was the computerization of electricity billing which was met through in house development of billing software. Later on, Management Information System, line losses system, payroll and store management system were developed and implemented all over LESCO. WAPDA Computer Center Lahore was attached with LESCO with effect from January 2000 as a process of corporatization of distribution companies. It has a sub-center at Sheikhupura providing services to Sheikhupura Circle. Organization Management Analysis (OMA) The management of the Lahore Electric supply Company is appropriate for their jobs and responsibilities. All the managers and directors are highly qualified, skilled, competent and experienced. The skills like leadership, effective communications, adoptability, effective relationship, task management are present very well. The communication level of the whole management is very sufficient. They communicate efficiently and effectively. The top level management and operation managers have good relationship. The Job Fit psychoanalysis of the managers is very sufficient.

Plan of Internship: Sr. No. 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. Project Management / Construction dept. Management Information system.


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

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

& 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, HR and Administration, Project management/Construction, I attached with the Management information system (MIS) department of Lahore Electric Supply Co. The MIS department is managed by Manager MIS. The MIS department of Lahore Electric Supply Co. comprises on Manager, Deputy Managers, Assistant Managers, Data coders and Data entry operators. During my training in this department I learned many new techniques, methodologies, expertise, knowledge and technology. In Lahore Electric Supply Co. the Information / MIS department employ the Windows XP / Linux Operating systems, Oracle Database system and also have oracle Java based applications. This is based on ORACLE EBusiness Suite certified platform. The MIS department deals with Enterprise Resource Planning (ERP) system, Financial Accounting and Information System, Material Management System, Human Resource Management System, and Customer Information and Billing System. In MIS department of Lahore Electric Supply Company I learned how to make Queries in database system, ONLINE billing system, Data collection through Barcode reader. I also learned about Enterprise Resource Planning system, ONLINE transactions system and webpage development. I also leaned that how the Management information system in any organizations works. The Structure and Function of MIS Department:


In Lahore Electric Supply Co. the Information / MIS department employ the Windows XP / Linux Operating systems, Oracle Database system and also have oracle Java based applications. This is based on ORACLE E-Business Suite certified platform.


Department Hierarchy


Manager MIS

Dy Manager

Dy Manager

Dy Manager

A. M (MIS)

A. M (MIS)

A. M (MIS)

A. M (MIS)

A. M (MIS)

A. 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 2.1 million consumers Duplicate billing system at 10 customer service centers and all divisions B: Payment Channels Payment using Bank Alfalah Credit Card. LESCO, in collaboration with Bank Alfalah, has started the service of bill payment through credit cards for the convenience of its customers. The collection data is submitted by Bank Alfalah to LESCO servers on daily basis. Payment using Bank Alfalah Direct Debit facility


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

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. Alternatively a collection file may be generated and carried on portable media if no Internet connection is available. This data is available for the utility company for immediate download. Customer Account on Company Website

The billing and receipt data is uploaded to the online server whenever it experiences any change. Consumers are able to access true online services at the company website, which include the following. Viewing monthly bills Printing duplicate bills Payment confirmation Consumption and Payment History Account Status. Benefits MRBCS offers a win-win situation for all the three stakeholders. 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


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, WASA and SNGPL bills as well in its area of operation. LESCO has also provided its assistance to these utility companies in printing machine-readable bills on a standardized format. 5. Government adjuster processing system. 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. 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, remittance & Account Head wise expenditure Instant payable/receivable analysis Multi-year accounting

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. Material Management department It will cover pre-purchase to post disposal and its immediate affect on general ledger. The moment any file for procurement is moved, it will also be available to Finance Director for financial vetting. Inventory Structure (Categories and Items) Supplier’s record & their specialty in Products Immediate information about the required material on the basis of D.N paid with reference to new connection, R.C.O etc. Procurement Annual Requirement Plan Ordering with Delivery Schedule Maximum/Minimum/Re-Order Levels Item Purchase Analysis Inventory Management Receipt (Supply, Repair, Transfer) Store Allocation (to Field Stores) Store Requisition Store Issue Transfers (Workshop, Regional Store, Field Store, Other Dist. Companies) Store Returns specially with reference to M.C.O etc. Scrapping Material Movement Analysis Inventory Tracking & Holding

Disposal Disposal Order Disposal Issue

3. Human Resource department All most all HR & Admn: activities from pre-hiring to post retirement have financial impact on company. These include salary, house acquisition, TA/DA, free supply, medical treatment, overtime etc. It is strange that we are not aware exactly how many employees do we have & what expenditure is being incurred. Recruitment Processing Application Management, to save time we can allow candidate to apply any time. 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, Service Book

HR Analysis Sanctioned Strength Vacancy Statements Seniority List Retirement Forecast Administration: Vehicle control Complete picture of all vehicles with reference to allocation, description, monthly expenditure on P.O.L etc.

Payroll Disbursement Channel Management Pay Scale/Salary Group Management

4. Customer Information and Billing System Customer Services Unique Customer ID Assignment, no UT cash even in multiple change of reference. Automatic Bill Adjustment Processing, no complaint for bill correction problems. Division and even Subdivision wise Billing (Need not to wait for MR of all Divisions), more time for Bill payment. Corporate Billing One Demand Note for Capital Cost & security and payment facility at any bank. Bill Distribution through e-mail, direct to customer’s bank, normal channel etc. Customer Information System Tariff and Customer Classification Management

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, manual, 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, Remittance & Reconciliation (Various Levels) Management Line Losses System Company, Circle, Division, Sub-Division, Grid, Feeder and Transformer Losses Critical Analysis Vision of the LESCO “As the leading electricity distribution company, strive to provide un-interrupted electric supply and quality service to all customers at the minimum possible cost.” Since LESCO is a public institute and NEPRA is responsible for its tariff selection etc. The failure of electricity is governed and supervised by PEPCO. Therefore as described in LESCO’s mission statement that leading electricity Distribution Company providing UN interrupted supply at minimum possible cost, is still unachievable. The whole company, its board of governors and top level management is trying at their best for providing uninterruptible supply at customer premises. The current strategies of LESCO are towards the provision of electric supply all the time. But unfortunately due to the erroneous government policies the most important part of power generation is lost; therefore the company is not successive in achieving their goals and objectives. The matter of cost is also significant in LESCO’s vision. But to provide the electricity round the clock it is necessary that the power houses must work effectively and

efficiently. Therefore the power houses require complete maintenance and testing. The government also did not pay any attention on this matter. Now the work is too much and a lot of financial aid is requiring sustaining the power houses. Whole of this scenario creates a boost in cost of electricity. Therefore provision of electricity at low cost is not possible until now. 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. of customers in Districts of Lahore, Shaikhupura, 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

• •

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, Kasur and Shaikhupura Conversion of petrol vehicles to CNG Purchase of new vehicles for field formation

Threats • Since LESCO is a public organization, therefore political environments are decreasing the efficiency of the company. • Some other competitors like GEPCO and MEPCO have their own power generation system; therefore LESCO is dependent on those companies. • In future it is expected that the market value of the LESCO will be decreased. • 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


Internal Factor Evaluation Matrix (IFE IFE MATRIX

MATRIX) Weight Rating W/ Score 0.16 0.15 0.07 0.11 0.13 0.05 0.02 0.08 0.1 0.10 4 3 4 3 4 2 2 2 1 1 0.64 0.45 0.28 0.33 0.52 0.10 0.04 0.16 0.10 0.10

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. of customers in Districts of Lahore, Shaikhupura, 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 1.00 2.72 The total weighted score can ring from a low of 1.0 to a high of 4.0, with the standard score being 2.5. Total weighted scores well below 2.5 differentiate business that is weak internally, where as scores considerably above 2.5 designates a well-built inner position. In the above IFE prevailing conditions the company LESCO falls at weighted scores 2.72, it means the LESCO has better internal structure.

External Factor Evaluation Matrix (EFE



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 0.16 0.15 0.16 0.12 4 3 3 3 3 2 1 2 1 1 0.64 0.45 0.48 0.36 0.39 0.1 0.05 0.16 0.03 0.07 2.73

0.13 Purchase of new vehicles for field staff Threats 6 It is expected that the market value of the LESCO will be 0.05 decreased 7 Politics in the employees and labor unions are very awful 0.05 for company 8 9 1 0 Financial statement is showing loss in year 2008 The overall performance of the LESCO also decreasing 0.08 0.03

Government’s pitiable projects also spoiling the publicity 0.07 of the LESCO Total 1.00

Threats Opportunities Weakness and Strength (TOWS Matrix) TOWS Matrix, simply list the firm's strengths, weaknesses, opportunities, and threats in boxes along the top and side of the matrix as indicated on the sample TOWS Matrix provided on the next page. These are the same factors you earlier determined (ranked) to be most important in your external and internal audits. Then in the four strategy quadrants labeled Strength Opportunities, Weakness Opportunities, Strength Threats, and Weakness Threats, list specific strategies that would benefit the firm in light of those underlying factors.


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. co-location of XEN & RO offices Printing of 12 months billing detail on bill. 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 Customer’s complaint system is very old and execution on the complaint is very fatigue.

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

SO Strategies present a better way of performing jobs in tune with the established brand And Increase Market shares. To offer designs solution to the customers. Invest in the augmentation of the new grid station and increase the capability of transmission lines. 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. Execute the pilot projects gradually. Increase the quality of the communication systems. Arrange periodic training system


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, Kasur and Shaikhupura . Conversion of petrol vehicles to CNG Purchase of new vehicles for field formation.

customers make plans and implement in the shortest possible time periods.

to increase the knowledge and skills of the employees.

Threats Since LESCO is a public organization, therefore political environments are decreasing the efficiency of the company. Some other competitors like GEPCO and MEPCO have their own power generation system; therefore LESCO is dependent on those companies. In future it is expected that the market value of the LESCO will be decreased. 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. To tie up with the small contractors on business sharing arrangements to prevent price raise. To be cautions in the event of change of government and process of reforms falling of the tracks. To check the emergencies and arrange necessary measures for it. Always be aware about the

WT Strategies Reduce the dependency on the government policies. To train the manpower to counter the threats of emergencies, break downs etc. Increase the accessibilities of the employees. Enhance the market value by getting the long term customers trust and loyalty. Arrange a job fit analysis and arrange right person for right job.


The overall performance of the LESCO also decreasing

laborer union agenda etc.

Competitive Profile Matrix FESCO LESCO GEPCO Weight Rating W/Score Rating W/Score Rating W/Score 0.16 0.14 0.09 0.14 0.11 0.13 0.03 0.05 0.08 0.07 1.00 3 4 4 4 3 2 4 3 4 2 0.48 0.56 0.36 0.56 0.33 0.26 0.12 0.15 0.32 0.14 3.28 4 3 1 3 3 3 4 4 4 4 0.64 0.42 0.09 0.42 0.33 0.39 0.12 0.20 0.32 0.28 3.21 2 3 2 3 3 4 1 2 3 2 0.32 0.42 0.18 0.42 0.33 0.52 0.03 0.10 0.24 0.14 2.70

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


The Lahore Electric Supply Co. consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is a large net cash consumption. Therefore according to the Bostn Growth Shares Matrix the LESCO falls in Question Marks. 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 in the case of LESCO the competitors are limited to provide their services in the defined areas of the country. 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, which can provide electric supply.


Conclusion The Lahore Electric Supply Co. is a big organization. It provides electricity to the consumers of the Dist. Lahore, Okara, Shaikhupura and Kasur. It is performing his job very well but certain improvements and developments are required. This organization has vertical management system. The top-level management has ample potential to make this company as a superb company. The middle level and bottom level management is also very hard working, punctual and geniuses. But unfortunately the provision of equipments for maintenance purposes, the government’s lengthy planes, and inexperienced customer services department is spoiling the image of the company. The demand of electricity of the consumers must be fulfilled at top priority. Necessary actions should be taken against the span between the demand and supply. The response of the employees on the failure of the supply must be enhanced. 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.

Recommendations The employees must be well trained for customer services issues. The extra equipment for maintenance and complaint attendance must be provided to the staff. The communication gap between senior management and lower technical, maintenance staff must be improved. The organizational hierarchy Inside the organization must be reduced. The application processing system must be improved. For complaints and other customer related tasks, online computerized system should be arranged. The trust of the customers must be retained. References and Sources Used • • • • Website of LESCO/PEPCO/WAPDA Technical brushers of LESCO Personal meetings with different mangers LESCO new induction training program booklets

• • • •

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


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