Investigation into nationwide power outage at SBB AG in June 2005, Switzerland

On 22 June 2005 Switzerland suffered a rail power outage which temporarily brought rail traffic across Switzerland to a standstill. Subsequent to the outage, the Supervisory Board of Swiss Federal Railways (SBB) adopted a report documenting and analyzing the chronological sequence of events of the disruption. The precise causes of the total loss of power across the entire rail network were included in the analysis. In order to obtain a second opinion, the Supervisory Board of SBB initiated an in-depth assessment and audit of the power outage and commissioned Fichtner to prepare an analysis of the rail power infrastructure of SBB with regard to its availability and reliability. In addition, it was to be examined why the power outage was not able to be anticipated by means of the existing risk management instruments. Finally, the external experts were to clarify the question of the concrete responsibilities for the power outage. The aforementioned services were rendered in close cooperation with those involved with the power outage and the company management. The results were presented to the Supervisory Board of SBB, which, on that basis, decided on what conclusions to draw and on what actions to take.

Establishment of Regional Management Unit in southern Albania

In order to improve the power supply in southern Albania, funding from Kreditanstalt für Wiederaufbau (Reconstruction Loan Corporation) is being used to promote the development of a semi-autonomous regional organization, the Regional Management Unit (RMU). Fichtner advised the RMU in relation to the preparatory steps and development process. In this connection, our experts developed a concept for cooperation with the national power utility and an organizational structure and devised a system for accounting and financial management. Fichtner also drafted a power procurement contract and tariffing regime in addition to developing a projection of financial operating results for the RMU. Further fields in which consultancy services were rendered included job descriptions, personnel development measures as well as support with the filling of management posts.

Reform of operation system of the Ukrainian gas transit network, Ukraine

Under a contract with the European Union, Fichtner advised the Ukrainian gas company NAFTOGAS on reinforcing its key role in providing a safe and effective gas supply to Western Europe. For various reform options, substantive recommendations were worked out and measures for upgrading the operating system of the gas transit network proposed. Additionally, our experts determined the funding required for maintaining and modernizing the gas network. During the first project phase, the present situation of NAFTOGAS was analyzed and three alternatives for reforming the Ukrainian gas transit network were elaborated, with a listing of their advantages and drawbacks. Following the decision for the most effective option, proposals were drawn up for putting this into practice.

Drawing up a corporate strategy, Russian Federation

For development of its basic strategy, Fichtner is conducting, at the biggest Russian manufacturer of boiler plants, EM Alliance in Moscow, an initialization workshop. During this, a road map is being devised as the basis for all EM Alliance’s further activities. This plan outlines the current status of the company and identifies key areas of action for evolving to an internationally oriented EPC provider.

Harmonization of gas and oil technical standards and practices in Eastern Europe and the Caucasus

The European Commission is promoting adoption of international standards and practices for planning, construction, operation, maintenance and inspection of facilities for handling, transportation and storage of oil and gas in Armenia, Azerbaijan, Belarus, Georgia, Moldova and the Ukraine. Specifically, this project is concerned with developing a common understanding for the need to harmonize technical standards and practices, and devising a strategy for such harmonization in all participating countries. On this basis, Fichtner is working out an action program and formulating the required changes in the legal framework.

Instruments and personnel for monitoring of industrial environmental pollution, Qatar

Fichtner provided consultancy services to the highest environmental agency in relation to legislation, equipment and personnel training for improved monitoring of industrial environmental pollution. This superordinate project addresses, firstly, the planning process at national policy and official level and, secondly, the practical implementation of specific resources and programs for better incorporation of environmentally relevant factors into the economic and industrial development of Qatar. The actual client is the national environment ministry. However, the project also examines the linked roles and responsibilities of other main actors. These include the Ministry for Energy and Industry, the National Planning Department, municipal councils, industrial towns, partners and individual industrial plants.

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Project assessment for a new steelworks of ThyssenKrupp Steel AG in Brazil

In Baía de Sepetiba in the State of Rio de Janeiro, ThyssenKrupp Steel AG is constructing a steelworks with a capacity of 5 million tons of slab steel per year. This plant, representing an investment of 3 billion euros, comprises two blast furnaces, two converters, two continuous casting plants as well as a power plant, coking plant and port. To provide the basis for a decision to go ahead with the project, Fichtner first checked the existing feasibility study for plausibility and was then entrusted with a monthly project assessment. These reports focus on technical, organizational and commercial aspects with the aim of identifying all potential risks, proposing measures to avoid and minimize these, and monitoring critical areas. Commissioning of the plant is scheduled for 2009.

Safeguarding revenues of a gas distribution company, Germany

Cutbacks in remuneration rates for network use and preparations for incentive regulation present new challenges to companies in the gas sector. With the aim of safeguarding revenues while maintaining security of supply, experts from Fichtner assisted in identifying optimization potentials and working out measures for enhancing efficiency. The emphasis of project steering and flanking technical support for identifying, evaluating and implementation planning of individual measures was based on optimization of network and facility operation, streamlining technical and commercial processes, and moderation and coaching functions for supporting overall project management on the customer side. Additionally, issues regarding the future use of technical site facilities – gas storage, LPG blending – were addressed and new network and sales services were developed.

Efficiency upgrade and reorientation of a municipal water and sanitation utility, Germany

The municipal utility, Hallesche Wasser und Abwasser GmbH, is supplying the town of Halle with drinking water and disposing of its sewage. Additionally, it provides services for surrounding local authorities’ water and sanitation associations. For the organizational analysis conducted with the aim of upgrading efficiency and cost-effectiveness, Fichtner is investigating the staff-line and procedures organization together with the cost structures. With the help of best practice performance figures for this sector, an optimized staff-line and procedures organization is shown, savings potentials are revealed and a personnel concept prepared. To conclude, a plan of action is drawn up, and a concept for realization worked out. During the second phase of this project, Fichtner is supporting the utility in implementing the measures package. For this purpose, Fichtner is chairing five working groups and providing these with technical support.

Reorganization of generation division for a municipal utility in North Germany

In support of our client’s growth strategy, Fichtner made preparations for reorganizing the generation division. Priority was given to an analysis of electricity generation activities followed by optimization of the staff-line and procedures organization. On this basis, a profit-center concept for the organizational unit “Main Workshops” as technical service provider was prepared and potential synergies with the “Network” division analyzed. In further project phases, our consultants supported the project team in developing an “implementation script”, and supported reorganization.

Reorganization of a municipal utility, Germany

The incentive regulation prompted many municipal utilities, with the support of Fichtner, to undertake comprehensive reorganization with the aims of raising efficiency and cutting costs. On behalf of a municipal utility in Lower Saxony, new structures were defined for all its operating divisions, and an asset management and asset service structure introduced, with development of appropriate control models. Additionally, Fichtner Management Beratung (FMB) drew up a concept for implementation and was awarded a contract for flanking support during this. Thanks to the reorganization, substantial potentials have been realized. With the aim of developing potential growth areas and new business, in a follow-up project, FMB was awarded a contract for reorienting sales strategy. As a result, a highly capable sales organization has been set up, adapted to the reformulated sales objectives.

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Organization of the procurement trading of an energy utility, Germany

Power procurement and trading are key areas of activity for municipal and public utilities if they are to perform successfully in the marketplace. The goal must be to make the procurement of power cost-efficient and in line with consumer demand in relation to timing, quantity and flexibility. Avacon AG already pursues the strategy of procurement through the wholesale market. In collaboration with FSE Portfolio Management we helped Avacon AG to make its procurement trading activities legally compliant and efficient. Together with Avacon AG, our consultants developed the risk management strategy, verified the energy trading products and created a provisional business plan. On this basis and in consideration of the legal parameters and constraints, the existing processes and procedures were optimized and an appropriate organizational structure was chosen.

Analysis of business processes for an alliance of power network companies, Germany

Within its working party on exploiting synergies in power networks, the municipal utility Bremen Group undertook a benchmarking study of five power network companies. The result was identification of four subsidiary processes for which the cost differences between the participating companies are particularly large. We was retained for detailed analysis of these differences and to devise a plan of action. This project involves recording details of present practices and procedures, determining their costs by means of a process cost matrix, derivation of desired procedures as best practice, and development of company-specific plans of action to exploit optimization potentials.

Control area management for Vattenfall Europe Transmission, Germany

Vattenfall Europe Transmission GmbH is responsible for power systems in its control area, and so for control area management. Under the project “Control area management processes to fulfill obligations, 2015”, efficient control area management processes, to match future needs and taking account of markets and liberalization, are developed for the transmission network operator. Both organizational aspects and realization of the necessary support functionalities are considered in the computer systems. To adequately and effectively support the staff’s tasks, our experts devised an operating concept that secures possibilities for flexible and effective response to future requirements, and, in particular, meets the redundancy criteria. To conclude, bid specifications were prepared.

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