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The FOPIP Web Based Benchmarking System-Summary

The document summarizes the FOPIP Web Based Benchmarking System, which was created to help improve water utility performance in Romania. The system allows utilities to benchmark their operational, managerial, financial, and continuity/asset management performance against peers. Fourteen Romanian water companies participate in the pilot benchmarking program, which covers key performance indicators such as water production, quality compliance, staff efficiency, and financial ratios. Utilities can use the data to identify areas for improvement, while owners and policymakers can monitor sector progress. The benchmarking concept aims to benefit multiple stakeholder groups.

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164 views

The FOPIP Web Based Benchmarking System-Summary

The document summarizes the FOPIP Web Based Benchmarking System, which was created to help improve water utility performance in Romania. The system allows utilities to benchmark their operational, managerial, financial, and continuity/asset management performance against peers. Fourteen Romanian water companies participate in the pilot benchmarking program, which covers key performance indicators such as water production, quality compliance, staff efficiency, and financial ratios. Utilities can use the data to identify areas for improvement, while owners and policymakers can monitor sector progress. The benchmarking concept aims to benefit multiple stakeholder groups.

Uploaded by

teodoralex
Copyright
© Attribution Non-Commercial (BY-NC)
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Download as DOC, PDF, TXT or read online on Scribd
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The FOPIP Web Based Benchmarking System Background The execution and implementation of the WEB-based benchmarking system

for the water sector was part of the EU funded FO ! pro"ect #$Technical %ssistance for institutional strengthening capacity of !& % Final Beneficiaries in water'wastewater sector( in )omania*( !& % +easure ,--.')O'/0' ' %'-/,12 The pro"ect was implemented between 3o4ember ,--5 and 6une ,--7( by a consortium led by )oyal 8askoning from The 3etherlands( with 9ouis Berger from France( and B:O ;onti %udit from )omania2 The managing %uthority of the pro"ect is the )omanian +inistry of En4ironment2 The general aim of the pro"ect is to assist the water utilities in their regionali<ation process and performance impro4ement2 rofessionally organi<ed and regionally operating water companies are pre-re=uirements for =ualifying for in4estment funds under the )omanian &trategic Operational rogramme En4ironment #&O -E3>12 The water companies participating in the Benchmarking component of the pro"ect are? Braso4( %rges( &ibiu( iatra 3eamt( Bu<au( Baia +are( &atu +are( :robeta Turnu &e4erin( )amnicu >alcea( @alati( Tulcea and :e4a 8unedoara2 The )omanian Water %ssociation #%)%1 is one of the key stakeholders in the pro"ect2 %)% hosts the pilot for the web based benchmarking system2 !n the future the pilot may be further elaborated and more water companies might participate2 For further details on FO ! ( please 4isit www2mmediu2ro 2 The benchmarking component of FOPIP The main ob"ecti4e of the benchmarking component is to help impro4e performance and le4el of water supply ser4ices of the )omanian water companies( as follows? ossibility for the company management to compare its own performance with that of other operators enabling the identification of areas to be impro4ed2 This encourages a kind of competition leading to the creation of the so-called $best practices* as reference for stakeholders ossibility for public utility $owners* to assess the le4el of ser4ices and efficiency of their utilities in relation to other operators ossibility for bodies in charge with policy and funding institutions to monitor obtained the progress achie4ed in the performance of the water sector and compliance with global sector ob"ecti4es ossibility for users and general public to access information on public utility performance

% clearly-defined and restricted set of performance indicators forms the basis of the benchmarking component2

Benchmarking concept The benchmarking concept for this pilot is depicted as follows2 The benchmarking co4ers four performance areas( thereby taking into account the interests of four different stakeholder groups2
Utility Managers

Operational efficiency

Managerial efficiency

Owners of Utilities

Bench marking
Financial efficiency Continuity of services

Policy makers & Financers

Users and Gen Pu!lic

Operational( managerial( financial and AcontinuityA or Aasset managementA benchmarks are included in the system2 The operational benchmarks are meant to pro4ide information on production and efficiency in both material and financial terms2 The managerial benchmarks gi4e an indication of scale of acti4ity( effecti4eness and efficiency of the organi<ation2 The financial benchmarks are based on diagnostic indicators deri4ed from financial statements2 The continuity or asset management benchmarks were de4eloped as an indication about the physical impro4ement or decline of the companyBs assets2

Operational benchmarks 1. Water production: m ! day. Total annual =uantity of water supplied to the distribution system( expressed as an a4erage o4er the year in m. per day2 ". Water and #aste#ater $ua%ity comp%iance. 3umber of water production and waste water effluent samples per year that comply with the respecti4e =uality standards2 Expressed as a percentage of the total number of samples taken in the year2 . Water consumption: %itres!person!day. Total annual =uantity of water so%d to customers' population supplied( expressed in litres per person per day2 &. 'on()e*enue Water +')W,. +Water produced!day +or year, ( Water in*oiced!day +or year,,! Water produced!day +or year,. :ifference between the water supplied to the distribution network less the =uantity of water sold di4ided by the =uantity of water supplied to the distribution system( expressed as a percentage2 Managerial benchmarks 1. Popu%ation co*erage. ercentage of the population connected to the water supply and the waste water network2 ". Percentage metered customers. 3ot being metered( meaning ha4ing to pay bills that are based on assumptions or a4erages( may lead to high dissatisfaction2 . Popu%ation ser*ed per emp%oyee %n indicator of manpower efficiency2 Financial benchmarks 1. Operating Profit -argin before depreciation and concession fee: +Operating profit before depreciation and concession fee,!tota% sa%es. !ndicates how well the firm co4ers operating costs with sales before allowing for other costs #including finance( taxes( and extraordinary costs12 ". .urrent )atio: /ccounts recei*ab%e!accounts payab%e. !ndicates the ability to pay current liabilities based on the amount of current assets2 . 0ays )ecei*ab%es: )ecei*ab%es!+annua% sa%es! 12,. This ratio indicates how many income days are necessary to turn a sale into cash2 &. 0ays Payab%es: Payab%es!+operating costs! 12,2 This ratio indicates how long an enterprise typically takes #in operating cost days1 to pay its creditors for materials( etc2 2. Tota% debt!tota% assets measures the percentage of total funds pro4ided by creditors2 Continuity and Asset Management Benchmarks 1. Percentage of net#orks year%y rep%aced. ". 'umber of %eakage re%ated repairs to #ater net#ork and b%ockages or co%%apses c%eared to #aste#ater net#ork. Expressed as number per kilometre of network per year

The diagram below represents the o4erall architecture of the system2

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