Management Innovation
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Development of overall benchmarking management.

From 2011, GD Power took the lead in the power generation industry on the development of overall benchmarking management. The company insists on the orientation of problems, strengthens the management and control of key and comprehensive indexes influencing enterprises’ economic benefits, development and construction. It develops constant benchmarking among all staff, processes and factors from the aspects of strategy, management, benefits, indexes, culture, and etc. to promote its stepping up to the target of “regional, group and sector leader and the benchmark for the industry.” By 2016, the Company’s comprehensive strength was greatly promoted with constant optimization of power source structures and layouts, sustainable improvement of indexes, outstanding upgrade of modernized management levels and a plenty of industry leading indexes.

Promotion of “five-in-one” management and control system construction.

GD Power established the “five-in-one” management and control system of production, operation, environmental protection, development and risks. In 2016, on the basis of the primary realization of real-time supervision and online optimization guidance, the company is adaptable to the demand of market-oriented reform of electricity and actively exploits the IT application of big data and cloud computation to optimize the “five-in-one” management and control system, the perfection business systems, such as production operation, marketing, and etc., and the design and development of auxiliary decision-making modules, such as online marginal cost, operation forecast and analysis. It promotes the experimental unit construction of digitalized power plant and the upgrade of new energy regional supervision of Dongsheng Company and Zhuanghe Company. At present, production operation management and control system has covered all the business of the company and the modernized level of enterprises’ management and control is constantly improved.

Optimization of overall risk management system.

As one of the first experimental units of overall risk management work of the Group Corporation, GD Power launched its overall risk management system construction work in December 2014. In 2016, the company included all its enterprises into overall risk management range to implement the three lines of defense of risk management with the establishment and perfection of risk management and control mechanisms to clarify risk management responsibilities and flows, to make monthly analysis on risk indexes and to intensify risk alarms, responses, closed-cycle management and control and culture cultivation, which realized systematized, flow-oriented and systematized risk management. The company’s risk management cases are included into the “50 Cases of State-owned Enterprise Reformation” of the State-owned Assets Supervision and Administration Commission.

Steadfast promotion of intelligent fuel construction.

Insisting on intelligent fuel technology innovation and steadfast promotion of intelligent fuel project construction. By the end of 2015, intelligent fuel project was put into operation for 100% of GD Power’s coal-fired enterprises in operation. GD Power’s intelligent fuel project management is gradually growing mature and its effects are increasingly emerging. The traditional fuel management concept and method of “governing the staff” are fundamentally changed through the whole-process management and control from the procurement of fuel to feeding. It creates the new pattern of “giving priority to equipment management and attaching the same importance to both equipment and staff management” which lays firm foundation for the realization of the transformation and upgrade of fuel management. In November 2016, the fuel DCS control system of Dongsheng Company won the second prize of the annual excellent electricity industry information-based fruits granted by China Electricity Council.

Overall promotion and application of refined coal mixture combustion.

In 2013, GD Power developed and debugged whole flow management information system for coal mixture combustion with Datong Company as the experiment unit, which achieved the optimized comprehensive target of safety, environmental protection and cost through online real-time and dynamic guidance on feeding coal mixture combustion, classified coal yard storage, fuel dispatch and unloading, planned procurement of coals, etc. In 2015, “refined coal mixture combustion model” was extensively overall promoted and applied within the Company. In 2016, “refined coal mixture combustion model” was listed as the standard configuration of every coal-fired power plants. By the end of 2016, this model was in the operation of 85% enterprises of the Company. The Company mixed and combusted more than 17 million tons of economic coals in the year, which saved fuel cost of about CNY 360 million.

Development of whole-staff job personal safety risk management and control.

GD Power strictly implement the concept of “safety and prevention first, comprehensive treatment” in combination with daily safety work to make troubleshooting on the whole-staff job safety risks and to evaluate safety risks of every job. It set up job safety risk database, established control measures by degrees and formed the highly practical and effective whole-staff job personal safety risk management and control system of “one database, two forms and two tickets” focusing on dangerous operations. Among them “one database” refers to GD Power’s whole-staff job personal safety risk database; “two forms” are “Enterprise Risk Control Form” and “Department Risk Control Form” and; “two tickets” are work ticket and operation ticket. The Company makes annual supplementary revision of the risk database and risks control measures and implements dynamic management and strict execution to ensure personal safety. This work won “First Prize of 2013 National Electricity Industry Enterprise Management Innovation” granted by China Electricity Council.

Development of hydro and wind power “Energy Balance Analysis.”

In 2015, GD Power first introduced “Energy Balance Analysis Method” to hydro power and new energy sectors to establish the comparative relationship among actual, perspective and theoretical power generation according to the features of hydro and wind power generation to further improve the management level of clean and renewable energy. The company’s ‘Wind Power Economic Operation Management and Control Model - the Innovation and Practice of “Theoretical Power Generation Balance Analysis Method”’ and “Application and Study of Theoretical Power Generation Balance Analysis Method on Centralized Control Systems” respectively won the first prizes of the national electricity enterprise management innovation theses. By the end of 2016, the Company achieved the hydro energy utilization rate of 91% and wind energy utilization rate of 84.5%. GD Power’s ‘Wind Power Economic Operation Management and Control Model - the Innovation and Practice of “Theoretical Power Generation Balance Analysis Method”’ and “Application and Study of Theoretical Power Generation Balance Analysis Method on Centralized Control Systems” respectively won the first prizes of the national electricity enterprise management innovation theses.

Promotion of the digitalized central management and control on new energy.

GD Power set up a three-level standardized management system among its head office, project units and stations with digitalized information, including some functions such as basic index supervision, primary site operation, financial measurement and calculation and etc., which promotes the conversion f management and control modes from afterwards to whole-process management and control and realizes the centralized management and control of the digitalized production of new energy. On the basis of this system, GD Power established corresponding enterprise standards, formed the production management mode of “remote centralized monitor, regional repair and maintenance, unattended site and less on duty and unified regulations” and  realized standardized and information-based management of safe production. At present, the coverage of GD Power new energy regional central control centers is up to 83%, some regions have primary equipment health diagnosis capabilities. Ningxia New Energy’s “Construction and Application of Digitalized Wind Power Farms” won 2016 China Electricity Industry IT Achievement Award as the only new energy IT result of China Guodian Corporation that was granted this honor.

Implementation of whole-staff performance appraisal management.

GD Power perfected its whole-staff performance management system intensifying the orientation function of performance, set up incentive methods, such as “scramble for quantity of electricity, control of coal prices, reduction of expenses and increase of  benefits,” safe energy saving and environmental protection, project development, project construction and etc. It put 10% of the total payment aside as a special award and realized the performance management coverage on whole staff and process. In 2014, taking annual target-oriented responsibility system examination as the main mechanism, GD Power created “721” salary allocation format, intensified key performance index incentive mechanism, facilitated cadres and staff for the promotion of their personal performance, and paid close attention to organizational performance. Meanwhile, the Company made synchronous promotion of performance and salary management innovation and played the improvement roles of performance management on performance and the guarantee and incentive roles of salary allocation on the stabilization of the team and inspiring potentials to facilitate the promotion of whole-staff performance level.

Establishment of the multi-channel vocational development mechanism for the staff.

In 2015, overall promotion of the multi-channel vocational development mechanism for the staff was made in GD Power and it was effectively linked up with the construction of the Group Corporation’s staff “Chief System.” This mechanism is beyond conventional administrative post system and it set three new vocational development channels, i.e. professional skills, technology and management, every of which supplements with three grades, i.e. expert, senior expert and chief expert, on the basis of existing professional technical qualifications. The staff can choose their own different development routes according to their own specialties and conditions to meet their own individual growth needs and enjoy corresponding material treatment at the same time.

Overall promotion of “double creation” work.

GD Power insists on leading development with innovation and puts great efforts on the implementation of innovation driving strategy and tries to make innovation a new leading advantage of competitions facing the front of electricity technology and enterprise production and operation management demands. In 2016, the Company strengthened the top level design of the innovation platform to promote “double creation” work with the platform construction. It set up 23 management innovation sub-platforms and 7 science and technology innovation sub-platforms with innovation work covering all the business sectors of  the Company. Guodian Zhejiang Beilun Power Generation I (III) Co., Ltd. and Guodian Inner Mongolia Dongsheng Coal-fired Power Co., Ltd. were selected advanced enterprise of technology innovation in “12th five-year” period of China Guodian Corporation and four articles including “Application and Study of Theoretical Power Generation Balance Analysis Method on Centralized Control System” won the first prize of 2016 National Electricity Enterprise Management Innovation Thesis Competition.

Innovative development of “Legal GD Power ” construction.

GD Power insists on the close integration of legal work and its central work, which is arranged, deployed and examined together with business work. The Company integrates legal thinking with enterprise management rules, inserts legal work into management flows, makes legal verification the necessary process of major field and key links to guarantee legal and compliant operation from the source. The Company regards legal risks as the important content of overall risk prevention and control system forming a closed cycle of risk management work mechanism of risk analysis, index monitor, dynamic notification, and etc., which makes major risks under effective control. The Company innovates on the establishment of “GD Power legal construction joint session” mechanism to concentrate legal force as professional support to legal construction. It completed the study on 31 legal risk prevention subjects, including governance of listed companies, and etc., making summary and analysis on 29 typical hidden legal dangers and cases, put forward legal risk points and 344 prevention measures, and finished management innovation achievements, such as “GD Power Legal Risk Prevention Mechanisms” and “Legal risk Guidance Book.”

In-depth promotion of standardized construction.

In 2015, it was the first time of GD Power to include the promotion of standardized construction into the key work of the year. It made overall development of the standardized construction of safe and cultivated production, repair, environmental protection and operation management. It took some coal-fired enterprises as experiment units. In 2016, on the basis of summarizing standardized construction experience, GD Power made overall implementation on the standardized construction in the fields of coal-fired power, hydro power, new energy, coals, and chemistry, and infrastructure construction. At present, a standardized management system is gradually establishing on the basis of technical, work, management, quality, operation and environmental standards.

Establishment of “three measures based” mechanism and implementation of “two responsibilities.”

In 2016, GD Power made overall implementation of the main body and supervision responsibilities of party style and integrity construction, innovated in putting forward the new measures of stratification, inventory and examinations for the implementation of “two responsibilities” with the perfection of mechanism, implementing responsibilities layer by layer to do a good job on party style and integrity construction. At the head office, GD Power details and breaks down responsibility lists for Company Party Committee, Disciplinary Commission and Party Committee members, all departments and sends mission reminding letters to team members and departments as scheduled to ensure that every responsible subject clearly knows and fulfills its responsibilities. With respect to grass-root enterprises, GD Power establishes examination methods, lists examination factors, work requirements and examination standards to “double hook up” examination results with the Company’s annual advanced Party committee and leadership performance appraisal with detailed responsibility lists. It forms an upper and lower linkage and makes coordinated promotion of good situations of the party style and integrity construction through the construction of perfect responsibility implementation mechanisms.

 

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