px limited

It is important to us that we deliver value for our clients.  The alignment of our business drivers with those of our clients is central to the px business model.  Primarily this is achieved by the mutual agreement of Key Performance Indicators (KPI’s).  The O&M teams are then incentivised against these KPI’s as a measure of success.

This philosophy is reflected throughout the relationships we develop and provide our clients with the confidence that we really care about the success of their business and contribute to the longevity of our client relationships.

The basic concept to achieve this is the development of an annual operating plan (AOP).  In respect of each financial year of an O&M contract we would produce an AOP detailing the operational plan and forecast budget for the following 12 months and typically an indicative budget for the next three to five years of operation. An AOP might be structured as follows:

• Operating Plan
  The operating plan could include items such as corporate assumptions; expected plant operating strategy including a forecast availability and production profile; maintenance strategy including spare parts and materials control planning; capital expenditure plans; training requirements; safety and environmental policies and strategy; asset inventory; press releases and community relations.

• Operating Budget
  This section could detail the forecast operating costs required to achieve the strategies etc defined in the operating plan, including all staff costs and training.  Typically it would include a complete budget of revenue and capital expenditure and any other corporate operating costs such as rent, rates, leases, bank charges and tax, etc. associated with the management of the relevant site.

• Capital Budget
  This section would usually detail the estimated cost and commercial justification and assumptions for capital enhancements to the relevant site.

A significant benefit of the AOP approach is that our clients can fully understand the plans of the O&M team for the following 12 months.  The AOP can set the direction for the team and what is to be achieved.  It is the key document for setting the business plans, key performance indicators and team/ personal objectives ensuring the drivers of not just px, but everyone involved with the O&M of the facility, are aligned.