Reducing Costs by Effective Inspections
Challenge: Xcel Energy SPS’s capital spend (Capex) increased from about $20M per year to about $300M per year at a rapid rate. This increase in Capex was due to several projects that were required to be completed to enhance regional transmission reliability, provide Utility infrastructure for the Oil Patch boom in the Southeast New Mexico and West Texas regions. Xcel Energy was looking to develop a comprehensive Material Management and Construction Management program for their transmission line substation construction projects. Xcel Energy wanted to achieve a simple goal that the project teams in the office and field teams needed to know what was happening in real-time. Their main needs for this program were:
Xcel Energy’s needs were as follows:
Solution: Think Power Solutions was hired by Xcel Energy to resolve this problem. Think Power performed construction management, material management and provided software services and addressed Xcel Energy’s problems as below:
Resolution: A combination of Think Power ONE, LOGS, material management and construction management saved Xcel about $4.75M in the year 2015 through efficient field progress tracking and communication and ensuring company standards were met by outside contractors and vendors.