Operational Excellence Management Approach
GRI 103-2

The company has established strategies to deliver reliable energy via excellent production systems under the “3S Strategy”. The strategy aims to integrate the management system under the group of companies, with the sub-strategy “Synergy and Integration”, which focuses on enhancing the management, production and distribution of energy for all customers as follows:

Synergy & Integration

Syenergy Capture

Enhancing the capacity of energy production and delivery through the production and distribution system of the GPSC via innovation and cutting-edge technology, while meeting the changing needs of customers.

Operation Excellence & Asset Optimization

Management of production and distribution systems by optimizing power plants to be most efficient via limited resource utilization and reduced environmental impact.

Corporate & Business Infrastructure

Infrastructure management, in order to allow for the reliability and flexibility of the energy network in all scenarios, while strengthening energy security for the country.

The delivery of electricity according to customer demand and production efficiency is at the heart of business operations of GPSC. Therefore, the company has established a strategy for managing new power plant construction projects at every stage of the operation. The strategy also includes management during production to achieve the goal of managing new power plant construction projects that bring electricity generation with the most efficiency and reliability.

Power Generation for Efficiency and Reliable System

Power Plant Construction
  • Expert teams and consultants.
  • Implementing state-of-the-art technology equipment.
  • Selection of contractors through a rigorous procurement process.
Power Plant Operation Management
  • Maintaining the reliability of the product for the customer.
  • Always develop preventive maintenance plan to reduce potential of machine breakdown.
  • Increasing operational efficiency through innovation management.
Initiation of New Power Plant Projects
  • Establishing measures for selecting investment projects / investors.
  • Sensitivity Analysis.
  • Prepare measures to prevent risks in advance.
  • Increasing efficiency through operational innovation.

Overview of GPSC Group Capacity and Generation in 2020

Generation Source Generation 2020 (% of total TWh Sold) Capacity 2020 (% of total MW owned)
Coal 39.26 17.21
Natural Gas 58.48 71.49
Hydro, large (units > 10 MW) 1.61 9.45
Other renewables (small solar and waste) 0.65 1.85
Total 100 100
Total (Absolute Values) 16.02 4,752

Remarks: The information is based on equity shared of GPSC Group. Generation in 2020 (% of TWh sold) does not include Xayaburi and Nam Lik 1 hydropower plants.

Operational Excellence Management System is a performance standard consistent with operations within the PTT Group, rooted in risk management, safety, occupational, health, environment and sustainability. The system is designed to create the foundation of work processes and enhance company operations to world-leading standards, by focusing on being a management system that integrates the production management system, standards and knowledge areas, with the following elements and concepts:

Knowledge and Intellectual Costs

That have been accumulated from PTT affiliates, such as good practices (Best practice) and innovations, combined with knowledge management and internal exchange to enhance production efficiency and create competitiveness at the international level.

Building Culture and Capacity

From systematic OEMS operations, flexibility, effective risk mitigation and the ability to support future changes.

12 Operating System Standards for Excellence

With the Continuous Performance Improvement (CPI) system are the center of tools and guidelines for enhancing operational efficiency in the organization continuously for all employees to be able to achieve the goals and objectives set.

Operational Excellence Management System is the integration of all four aspects, from content, deployment, conformance and performance to achieve systematic operation.

Operational Excellence Management System (OEMS) Manual L1

System for GPSC Integrates and complies with standards

Operational Excellence Management System is also designed to enable operators within the organization to be able to work and communicate effectively between departments, exchanging knowledge and having guidelines under the same standards, which can increase work efficiency. Overall, the Operational Excellence Management System is used as the operating standard of the PTT Group companies which has set up 12 operating system standards under the concept of “PEOPLE” with the following elements.

12 Operating System Standards for Excellence

Impact Level Description of Impacts
1. SSHE PTT Group companies must achieve operational goals in accordance with the safety, security, health and environment standards (SSHE) of the group in all operational dimensions.
2. Operations Risk Management PTT Group companies must identify and manage operational risks, in order to reduce their impacts to acceptable levels (As Low As Reasonably Practicable or ALARP).
3. Organization & Capabilities PTT Group companies must possess a management structure designed to be able to make effective decisions, be able to systematically increase operational capacity, allocate knowledge and practices to increase operational efficiency continuously.
4. Sustainability Management PTT Group companies must perform social and environmental activities, as well as foster economic growth along with communities and the society in response to stakeholders, in order to create stable and sustainable business operations.
5. Reliability & Asset Integrity PTT Group companies must inspect equipment, machinery and utility systems systematically under the established plans and standards to create reliability, safety and reduce operating costs in every operational process.
6. Operations PTT Group companies must operate in a safe environment to prevent injury and loss to operators and the environment.
7. Value Chain Management (Downstream) PTT Group companies must manage their supply chain in delivering products and services that meet customer and consumer needs under efficient business management.
8. Management of Contractors & Suppliers PTT Group companies must manage its suppliers and contractors in accordance with the established regulations, policies and standards.
9. Strategy & Leadership PTT Group companies must operate under the safety, security and sustainability of the utmost effciency through its affiliate strategy to be the industry leader.
10. Performance Management PTT Group companies must maintain operational leadership through assessments, benchmarks, sequences of performance, loss prevention and continual improvement.
11. Capital Project Management PTT Group companies must manage projects through an efficient decision-making process, in order to deliver quality, safety and meet needs within specified timeframes and budgets.
12. Management of Change PTT Group companies must manage risks from both temporary and permanent changes, organizational management or systematic operations and control these to an acceptably low level (As Low As Reasonably Practicable or ALARP).

GPSC has established a development plan to elevate the organization to excellence through systematic management. It begins with an analysis of strengths and development opportunities, improvement of safety systems and risk management in the production process, management of reliability and integrity of machines, as well as the development of knowledge enhancement of personnel to be more capable. The plan has also set goals and clear indicators, in order to build a strong foundation, develop operational processes and communication. All of these will lead to high operational standards, which will allow for achieving efficiency, along with increasing the effectiveness of continuous production operations.

In addition to the implementation of the current plan, GPSC also plans to develop the operational excellence system in response to the expectations of efficiency and effectiveness for continuous operations for eight key stakeholders, which include 1) Shareholders, 2) Investors, 3) Government Agencies and Related Organizations, 4) Employees, 5) Suppliers and Contractors, 6) Partners, 7) Customers and 8) Community and Society. This is to maintain and promote vision, along with achieving the goal “To be the global leading innovative and sustainable power company”, with operational guidelines in accordance with the business sustainability goals being as follows:

GPSC aims in being the operational leader among power companies with a mission to achieve results by operating systematically throughout the organization and improving operational efficiency in a continuous manner, including through the use of knowledge to develop new innovations to achieve the performance of cost-effective resource management performance with safety, reliability, in accordance with the sustainability commitment in business operations.

GPSC has developed an internal management system to inspect operations under both normal and critical conditions, which is a database of operations in the production process. This system displays information for the operator to evaluate and analyze every step of operations and allows for the ability to revise and update the timing of different events. In the event of a crisis, the system will immediately give-off alerts to keep personnel and equipment safe during operations, as well as taking control of each situation to avoid malfunctions and minimize the impact on stakeholders from incidents. This system, which can be applied using standard systems and programs, is equipped with a tracking capability to review and record data during normal operations and when errors occur. This information will then be sent to responsible persons on a daily basis with performance reports submitted to the executive team on a weekly basis.

GPSC monitors, analyzes and predicts the efficiency of production and distribution systems throughout the service period in real time to all customers through technology and innovation that enable operators to monitor, plan and improve the efficiency of production systems in advance. This can increase the availability and reliability of power generation and delivery, while also reducing risks and loss potential by integrating the use of various softwares, such as Central SCADA (Power Distribution), Customer Monitoring System (Steam Distribution), Plant Information (PI), Real-Time Optimization, etc.

Monitoring

Monitoring the efficiency of the production system through the Power Plant Information (PI) program.It is a system used to track the status and display the results of production operations both at the power plant and every customer 24 hours a day.

Data Validation and Modeling

Examining data from inspections for analysis and forecasting of future production and distribution performance, as well as ways to improve systems for maximum efficiency in various cases.

O&M Report Solution

Reporting results of inspections and analyzing data to engineers and control staff to improve their operations to be appropriate and efficient.

Process Optimization

Optimizing operational efficiency to meet energy and environmental requirements to ensure reliability and maximum resource efficiency.

GPSC has not remained idle in expanding its production capacity through domestic investments, as well as overseas investment expansion, especially in the investment target countries of Taiwan, Vietnam and Myanmar continuously, where these are in line with the corporate strategy to grow together with the PTT Group companies and to be the main power business innovation leader within this group. GPSC has set investment goals, including in the restructuring of energy production, in order to increase the proportion of renewable energy production to be in line with future trends and to support the current rising demand for electric power.

GPSC requires all operators to attend training, rehearsals and pass operational tests to ensure that the assigned operators can perform their duties efficiently according to the specified standards. It has set a basic course in which operators are required to receive training, as well as support study visits and attend training with external agencies both inside and outside of the country, in order to increase knowledge and study international current practices, while also continuously sharing knowledge and experience gained within the organization. Furthermore, the employee training courses of GPSC is designed by experts in accordance with the electrical industry operating standards necessary for the performance of trainees, which covers training, theoretical content and expert practice and is one of the indicators of employee performance in determining career growth for production operations workers, with training courses to enhance their performance as follows:

Power Plant Operations

Building knowledge and understanding on power plant operations, operating regulations and related standards, critical pollution control systems, including walkthrogh survey in power plants.

Plant Information System

Building knowledge and understanding on information management of production and distribution systems, including interconnection systems between production units, access and management of power plant data to build operational management capabilities.

Power and Steam Network & Optimization

Building knowledge and understanding on the network of the electricity and steam generating center of the company to create knowledge and management skills in production, distribution and energy demand management, including related case studies.

Revised as of February 2021

The above content is prepared in accordance with the sustainability reporting standard. The Global Reporting Initiative (GRI Standards) is a third-party audited initiative and provides limited assurance of reporting data (Limited Assurance).