METROPOLITAN EDISON COMPANY - Pennsylvania Public Utility ...

BWG found some of the study’s results to be of questionable value. TheConsultant did not find the 10-year workload forecast to be reasonable, in part becausethe Met-Ed and Penelec line workforce forecast projected man hours decreasing from2005 to 2014. Plus, the study used two assumptions that BWG deemed to besomewhat contradictory. The FE-PA Companies’ strategy was to backfill attrition on aone-to-one basis (i.e., one new hire or internal transfer would replace each lineman whoretires, resigns, or leaves for some other reason). The study also assumed productivityimprovements of 1.5% per year based on future improvements in planning andscheduling and modified work practices and process improvement. Nonetheless, BWGfelt that replacing experienced lineman with one of lesser experience would suggest aloss of productivity rather than an improvement.Follow-up Finding and Conclusion No. VI-5 – FirstEnergy has implemented a workmanagement process at the three FE-PA Companies which forecasts line workerstaffing based on historical and future workload.FirstEnergy hired an outside consultant in 2007 to perform a Workload andManpower Planning Analysis. FirstEnergy refined the model and the process that wasrecommended by the outside consultant to include additional focus on forecasting andplanning workload and resource requirements. The model is designed with a number offeatures such as historical, current and future workload, historical and currentmanpower resources, etc. FirstEnergy also introduced a Forecasting and Planningprocess at each of the FE-PA Companies throughout 2010. The process includeddeveloping a Forecasting and Planning Group at each of EDCs which would allow themto estimate the amount of work needing completion with an accurate and balancedstaffing forecast. The process was introduced at Penelec and Penn Power during thesecond quarter and at Met-Ed in the third quarter of 2010. The model that is used bythe Forecasting and Planning Group at each FE-PA Company is similar to the onesuggested by the outside consultant and is intended to help managers gain ameaningful perspective on the past and future nature of line worker workload.The Forecasting and Planning process involves keeping monthly dashboardsand summary workload reports but the Audit Staff was unable to review any of thesereports because the final format for the process was still under development.FirstEnergy management indicated that the process would be refined further in 2011 asit is fully implemented at each FE-PA Company and that once the line workerforecasting and planning process is finalized, a similar process will be implemented forthe substation group. The primary goal of the Forecasting and Planning process is toenable management to review possible gaps in the line work plan, resources, orfinancial targets and adjust and manage the work plan in order to meet operational andfinancial commitments.FirstEnergy does not maintain historical staffing budget data; hence, neitherFirstEnergy nor the Audit Staff could identify any trends in the variances betweenbudgeted and actual staffing levels for prior years. FirstEnergy indicated that thecomparison between actual and budgeted staffing levels for prior years is not madebecause planning and forecasting is based on known and anticipated workload and noton actual versus budgeted staffing levels. Although the Audit Staff thinks that- 44 -