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Joe BaahMaximo Sales Leader
The Smart Software Symposium: Asset Management
Market dynamics• Our clients, across all industries, are looking for ways to – Cut costs– Preserve Capital – Create & Support new business models
• Asset & Service management are proven to drive hard dollar ROA and ROI • IBM’s solutions enable you to manage the service management helps to; Streamline operations…..reduce labor & inventory costs, Asset infrastructure that can help improve competitiveness Improve productivity…..reliability, quality - OEE Prepare for regulatory changes; standardize & enforce processes, consolidate
systems Extending useful asset life and deferring non-essential maintenance
The Challenge - Customer pain points• Increasing the reliability and availability of assets, and the
services the assets collectively support – Example; reduce lost revenue due to Equipment failures
• Improving performance of assets to impact the top and bottom lines– Example; timely vehicle maintenance to reduce costly fuel
consumption• Capturing actual costs for labor, materials, tools & services
– Example; improve bottom line by reducing unnecessary repairs
• Managing 3rd party service providers interacting with business operations– Example; measuring provider performance against SLA’s–
• Reducing the cost and complexity of the IT environment support the business – Example; eliminating duplicative systems while
standardizing on modern technologies
• Standardizing & enforcing business processes – Example; support regulatory requirements to document
and test business processes while improving efficiency and consistency of worker activities
ROI, ROA & ROI, ROA & Value for Value for
CustomersCustomers
Risk, Compliance ManagementRisk, Compliance Management•Regulatorycompliance•Operationalcontrol
Operational ExcellenceOperational Excellence•Productivity&EnergyEfficiency•Reliability
Business AgilityBusiness Agility•ProcessStandardization•AbilitytoAdapt–NewBusinessModels
Business AlignmentBusiness Alignment•InvestmentAccuracy•ResourceAllocation
Rational System ConsolidationRational System Consolidation•Modern,Standards-basedTechnologies•CostofownershipandComplexity
|IBMInternalUse|
Slide:6
IBM Asset Management Leadership: Analyst View
“Under IBM ownership, MRO software has moved to extremely high viability. Global sales and implementation resources makes the solution widely available. Combined with Tivoli software, IBM Maximo Asset Management offers
the opportunity of being able to manage IT-enabled assets with the same solution used to manage traditional EAM assets. High EAM investment and the leverage of IBM's research capabilities is bringing advanced maintenance functionality to market in the near future. It supports integration with a wide variety of ERP suites. It has native
integration with ESRI’s GIS. It has versatility across multiple platforms."
Gartner, “Magic Quadrant for Enterprise Asset Management for Transmission & Distribution”
September, 2008 Gartner Magic Quadrant’s for Enterprise Asset Management
Transmission & Distribution
Power GenerationManufacturing
It’s not just about the asset …
..and services delivered to the customer.
it’s about what the
asset does…
• Industry is evolving to address complex, highly specialized asset management
• Automation Performance Services takes a growing trend and applies it to the highly specialized area of industrial automation
• Delivers automation excellence that drives business performance while optimizing risk
• Pay for Asset Performance and Usage
Performance Services Applied“PowerbytheHour”
“MRIBytheImage”
Proven business models re-defined industry definition of “performance”.
ABBAPM
Asset Management – The Connection to Shareholder Value
Asset management directly contributes to INCREASE REVENUES
DECREASE COST
Product quality and reliability
Process and equipment availability andproductivity
Cost control/reduction
Equipment/fleet size
Spares/Stockpiles
Return onAssets
generatedProfit
Capital employed
Revenue
Costs
Fixed
Working
Price
Quantity
Value propositions - Hard Dollar ROI with Asset Management
Business Scenarios ROI Points Customer Example:
Transportation Industry
Labor Utilization Up 10-20%
• A major railroad saved Euro 5M by better tracking labor to specific work
Asset Utilization Up 3-5%
• A large OEM reduced overhaul process time from 56 days to 21 days
Equipment purchases Down 3-5%
• A fleet management company saved Euro 9.5M by meeting 100% availability with less
Warranty recoveries Up 10-50%
• A consumer products company with a medium size fleet increased warranty recovery 50%
Inventory needs Down 20-30%
• A large passenger railroad was able to identify Euro18M in excess or obsolete inventory
Inventory carrying costs Down 5-20%
• A railroad reduced saved US $1.8M impacting financing, insurance, handling, overhead, etc.
Material Costs Reduced 10-50% • A rail maintenance service company
reduced costs 20% by optimizing material purchases
Purchasing labor Reduced 10-50%
• A fleet management company reduced purchasing staff by 20%
• Over 82% of projects $50,000 and higher require a business value analysis (source: Alinean, 2006).In their procurement process, most customers are requiredto develop an business case for major IT investments
• Final purchasing decisions are sliding back to the CFO… We need to solidifya buying decision by strengthen client’s business case
• Asset Management models now part of IBM Business Value Assessment approach– Link to W3 site…
“Every human being, company, organization, city, nation, natural system and man-made system is becoming
interconnected, instrumented and intelligent. This is leading to new savings and efficiency—but perhaps as
important, new possibilities for progress.”
And Maximo is a big part of it!
Something Meaningful is Happening.
Ultimately every asset will be “smart”GLOBAL SALES OF WIRELESS MODULES FOR DEVICES, SENSORS AND MACHINES WILL GROW RAPIDLY FROM APPROX.33 MILLION UNITS THIS YEAR TO ABOUT 400 MILLION IN 2011.
SOURCE: HARBOR RESEARCH
THE NUMBER OF MACHINES CONNECTED TO CELLULAR NETWORKS IN NORTH AMERICA WILL REACH 66 MILLION BY 2011.AT THE END OF 2006, THERE WERE ABOUT 9 MILLION ACTIVE CELLULAR AND SATELLITE M2M CONNECTIONS IN THE U.S. & CANADA.SOURCE: BERG INSIGHT
GLOBAL M2M MARKET WILL REACH $250 BILLION IN 2010.SOURCE: THE FOCALPOINT GROUP
The Changing Landscape:Embedded IT Components
Virtuallyeverymobileassettodayhasdatacollectioncapability.WhethercontinuouslyfedtotheEAMapplicationorviabatchupload—performancedataisbeingusedforpredictivemaintenance.
Thetypicalplanthasthousandsofdeviceswithsomedegreeofembeddedintelligenceusedforreal-timeperformancemonitoring.
FromvibrationsensorstobearingswithBluetoothtomicroprocessorbasedenginecontrols—evenmobileequipmentisnowIT-dependant.
FieldbusandIEC61850(UCA)technologiesfor
instrumentationandcontrolneedself-
discoveryandsoftware-
configurabilitytools.
What’s smart about infrastructure?CenterpointEnergyusesSmartMeterstoreducepower
consumptionthroughdemandresponse.
Abridgehasbuilt-insensorstomonitorstressand
indicatepotentialfailure.
LocomotivesbuiltbyBombardierhaveon-boardcomputer
systemsusingtelematicsforreal-timediagnostics.
Adatacenterreducesenergyconsumptionandoptimizesservice
deliverybycollectingpower,thermalandtemperatureinputs
fromITequipment,datacenterinfrastructureandfacilities.
Smartbuildingsusebuildingautomationsystemsto
optimizecomfort,safetyandenergyconsumption.
What is the role of asset management in a smarter planet?
• Manage business and IT assets together as services
• Transform these assets into business value
• Prevent asset-related health, safety, and business risk
• Harness and manage emerging “smart assets”
A smarter planet is built on intelligent, instrumented, and well-managed business
and IT assets that enable rather than constrain innovation, transformation, and
differentiation.
17
The knowledge and capability to deliver a specified business outcome when it needs to occur, within the time and cost parameters
you promised it would.
The Service Management from IBMDelivering quality service and enabling business innovation
18
Swiss Rail Outage – June 22nd 2005• The good news– Nobody was hurt– 2 passengers fell in love and got married
• The bad news– 199,998 other passengers affected– 5,000,000 U$ of direct costs occurred
• The ugly news– There would have been enough time, to handle the situation correctly but…
.... there were 18,000 system alarms within 60 minutes
... and the tools to handle them correctly were missing!
• A power system at a single regional node created a local problem that avalanched into a system-wide breakdown
• The volume of alarms over-whelmed control systems in place at the time, making it impossible to quickly isolate and correct the original problem
• A power system at a single regional node created a local problem that avalanched into a system-wide breakdown
• The volume of alarms over-whelmed control systems in place at the time, making it impossible to quickly isolate and correct the original problem
Swiss Federal Railways
Unified IBM solution to manage all critical assets across the
enterprise
Application ConsolidationManage all assets in one IBM system for greater efficiency and return on investment
Facilities
ProductionTransportation
Business process similarities between EAM
and IT Service Management (ITIL)
ERP like consolidation of applications for asset management.
Fosters effective management of IT-enabled assets.
Improves communication lines, streamlines workflow and optimizes labor across asset classes.
Reduces management and maintenance cost of multiple, disconnected systems.
Increases IT and operational efficiency.
Convergence through Consolidation
ITIT
IBM Maximo Asset Management• Addresses business challenges of
Operations and IT• Provides Service Management
capabilities for– Asset Owners– Asset Managers– Service Providers
• Consolidates point solutions for Asset and Service Management
• Consolidates point solutions for various asset classes
• Next generation J2EE Technology Platform
Maximo Asset Managementmanage all assets, their conditions and work processes
Asset Management
Maximo Enterprise Adapter
WorkManagement
Materials Management
Purchasing
Locations
Asset
FailureCodes
ConditionMonitoring
Meters
MeterGroups
RequestforQuotation
Receiving
ReceivingInspections
PurchaseRequisitions
Invoices
PurchaseOrders
DesktopRequisitions
ItemMaster
Storerooms
Inventory
LotManagement
Kitting
Issues&Transfers
ConditionCodes
StockedTools
ServiceItems
JobPlans&Routes
ServiceRequests
ServiceItems
WorkOrderTracking
Safety
QuickReporting
Labor
Qualifications
Lock-Out/Tag-Out
Tools/Crafts/Companies
PreventiveMaintenance
MasterPM
AssignmentManager
Enhanced Workflow – Event Driven, Context-based / Escalation Manager
Contract Management
PurchaseContracts
MasterContracts
WarrantyContracts
Lease/RentalContracts
LaborRateContracts
PaymentSchedules
Service Management
ServiceCatalogs
SLAManagement
Incidents
Problems
Changes
Releases
Solutions
KPIs / Reporting / Analysis
Customer
CustomerAgreements
Customer
Management
CustomerBilling
BillReview
SalesOrder
ResponsePlans
ServiceAddress
PriceSchedule
Service Provider (optional)
Configuration – UI, Database Fields, and Applications
Industry Solutions (optional)
Security & Administration
Architecture Matters• Built from the ground up in a true Web Architecture– Evolution of technology since 1997; stable on platform 2015+– Non-proprietary standards based technology framework– Modern next generation architecture today; ‘Harrier’ point release
• All applications built in a J2EE, n-tiered component architecture – Java 2 Enterprise Edition– Standard for developing multi-tier enterprise applications– Natively supports global security models
• Maximo one of the few major applications J2EE certified– SAP and Oracle will ditch proprietary architectures for J2EE– Major technology jumps for vendors not on full J2EE or .NET platform
• J2EE and Web Services provide ideal model for integration– Truly delivers Services Oriented Architecture (SOA) concept– Integration built directly into Maximo business processes– Compliant with Web Services-Interoperability Organization (WS-I)
• Database led deployment and configuration suite– Screens, business process and integration settings deployed on database– Upgrade paths delivered for data model, screens, Workflow and Integration
Ease of Configuration
Database Configuration & Application Designer
Built-inTools
EasyandQuicktousebyallend-user
ConfigureUI,dashboards,KPIs,reports,createnewapplicationsandmore…
Visibility of Performance Metrics and SLAs
ConfigurablerolebasedStartCenterportlets
Real-timeKPIbaseddashboards
SeamlessintegrationofITIL–basedprocesses
Configurablegraphicalrepresentation
Integration• Maximo Enterprise Adapter– Integrate any Maximo object– Dynamic Web services– Pre-built integration points• Assets, Locations,
Work Orders, Service Requests …– Pre-built integrations to• SAP and Oracle
• Maximo Fusion– Integrate Asset Center with any IT asset discovery tools– Pre-built integrations to• SMS, Altiris, Radia, Tivoli…
ERP Support in Maximo
IBM Industry Frameworks Drive IT Alignment with Business Processes
Industry Solutions
CompositeBusinessServices
ProcessModels
DataModels
Industry FrameworksOpen, Industry Standards
ITOperations
BusinessOptimization
Business Integration
ISVServices
SOA Foundation
•PDIF Product Development Integration Framework
•MIF Manufacturing Integration Framework
•IIF Integrated Information Framework
Differentiators.. ERP vrs EAM
• “Productized” integration adapters for SAP and Oracle• Ability to substantially reduce the number of applications needed to support the business growth objectives
Maximo is the market-leading, best in class solution for Asset Management. • Most MAXIMO customers have implement ERP systems (SAP, Oracle) and integrated them
• Our customers find EAM to be complimentary to ERP
• Customers want to have unified view of all Assets & their impact on key business objectives
• This visibility enables customers to drive a better Return On Asset (ROA & EBITA)
Maximo integrates with ERPs to combine information and optimize business processes across the enterprise.
Industry Solutions
• Support regulatory requirements of each Industry• Provides data standards for each industry...ISO 14224• Follow unique business processes and requirements of industry which avoid customisation of the system reducing Cost
of Ownership (TCO)
Vertical Industry Focus
Energy & UtilitiesEnergy & Utilities Public SectorPublic Sector
TransportationTransportation
TelecomTelecom FinancialFinancial
IndustrialIndustrial
ServicesServices
Oil & GasOil & Gas Life SciencesLife Sciences
Working in Partnership with ClientsCharter/
ObjectiveExternal Members
Set Direction C-Level
Internal IBM
Group Type
Advisory Council
Special Interest
User Groups
DevelopmentPartners
Subject Matter
Experts
Users
P&TServices
Industry Mktg
Industry Mktg Sales
Services
ExecutiveCommittee
Industry Mktg
Exchange of Best Practice
Develop Requirement
Maximo WORLD
UsersC-Level All IBMersPromote Brand
Exchange
Run by
Maximo Industry
Mktg
Customers Users
Maximo Products &
Tech
MRO
Marketing
Maximo Industry Solutions• Life Sciences Pharmaceuticals
• Utilities
• Nuclear Power Generation
• Oil & Gas
• Transportation / Fleet
• Government
• ITSM
• FM
Key Transportation Assets
RailRollingStock RailwayInfrastructure
SupportFleetStations&FacilitiesTechnology
Maximo is the only solution that can manage all of these assets!
Key Rail Industry Wins in 2008/2009• Will manage all rolling stock for French National Railway• Key to win: Ability to manage complex asset configurations
• Will manage all rolling stock for Dutch service provider• Key to win: Ability to manage complex assets, integration to ERP
• Will manage Rail infrastructure in Russia• Key to win: Ability to manage complex asset configurations
and integrate to the SAP ERP
• Will manage rolling stock for Australian service provider• Key to win: Deep industry capabilities, manage complex assets
• Upgrading to internet architecture to manage all rolling stock sites• Key to win: Deep industry capabilities, ability to integrate to ERP
• Will manage support fleet assets for UK rail service company• Key to win: Deep industry capabilities, and multiple asset support
Overview
The New approach provides:• Vehicle location track & trace• Insurance and liability cost
controls• Intersection of telematics
logistics & Supply Chain Management
• Regulatory compliance• Vehicle operations reliability– Integration to
Maximo for Transportation
Product Expansion Model – Transportation
Customer Configuration
Industry Solutions
Maximo
Inventory
PositionCodesCountBooks
WarrantyOEMWarrantiesPartWarrantiesWarrantyTracking&Recovery
Dispatching & SchedulingMotorPool
Alerts
MaintenanceAlertsPMAlertsWarrantyAlerts
LineCodesSupportofVMRS/AAR/ATA
Industry Codes
Asset Information
AssetAliasAssetHistoryEquipmentGroupsEquipmentStatusLicensing&InsuranceSerial#ChangesSpecifications&VehicleData
Fuel ManagementFuelRecordFuelTankMonitoringFuelTransactionImport
Reporting & AnalysisDriversLogIndustryReports&KPIsLifeCycleCostingLogSegments&Problems
Work ManagementMechanicWorkOrderRecent&RepeatRepairsRepairOrders
LaborAssignmentManagerLaborCertification
CampaignsCampaignSetupProgressStatus
Maximo for Transportation 6.3 modules
MetersMeterAdjustmentsMeterChangeOutMeterImportMeterHistoryPrimaryMeterUnlimitedMeters
Linear Use Case – Railway & Roads• Value Proposition
– Railway maintenance is 20-30% of operating costs of a railroad
– 5-15% annual revenue lost due to track occupancy for maintenance
– DOTs: $92B / year to maintain state highways
– Municipalities: declining funding, aging infrastructure
• Challenge– Need to manage as a continuous asset
with dynamic segmentation– Mile or chain markers, track #, offset,
switch, frog/crossing, signals…– Mile or Km markers, lane, direction,
offset, bridges, tunnels, signs• Operations Process
– DOT’s, Munic’s, Rail Inspectors walk track weekly, identify conditions
– Crews make repairs or perform construction projects
• Partners: – Bentley Systems – Optram– Mermec – Ramsys– Pavement - Envista
Extraction
• Fielddevelopment
• Drillingoperations
• Crudeoil&gasProduction
• MiningCoal&Uranium
Generation DistributionRetail
Customer
CommercialCustomer
•FossilGeneration•HydroGeneration•NuclearPower•WindPower
•HighVoltagetransmission•Substations•MobileInspection
•WorkManagement•OperationsManagement
Transmission
•300+utilitiesworldwideusingMAXIMOGeneration(160),transmission(38),distribution(21),Gaspipeline&distribution(23),water/wastewater(120)
•5of10Global500EnergyCompanies•7of10Fortune1000EnergyCompanies•17of30Fortune1000UtilitiesCompanies
Energy & Utilities Value Chain
TheVisionfortheSmartGridsofthefuturehttp://www.smartgrids.eu/documents/vision.pdfhasbeendevelopedinresponsefortheneedto:
Provideauser-centricapproach
Provideinnovationintheprocessofelectricitynetworksrenewal
Maintainsecurity of supply
Provideaccessibilitytoaliberalized market
Ensureinteroperability
Enabledistributed generationandutilizationofrenewableenergysources
Bestuseofcleancentral generation
Considerappropriatelytheimpactofenvironmentallimitations
Enabledemandsideparticipation
Informthepoliticalandregulatoryaspects
Considerthesocietalaspects
The European Union is one example of a region developing a comprehensive plan to proactively address its requirements
Strategic Deployment Document for Europe’s Electricity Networks of the Future
Trends in Distribution Operations
Meter
Standard Grid
Emergency & Unplanned
Traditional Distribution Infrastructure
Source: IBMInstituteforBusinessValue(IBV)analysis
Advanced Meter
Network Automation
and Analytics
Planned
• Customerenergymanagement
• Moreaccuratebilling
• Improvedpowerforecasting
• Remoteshuton/shutoff
• Improvedoutagerestoration
• Newproductsandservices
• Improvedsafetyforline-workers
• Automatedinformationaboutequipmentstatus
• ResponsiveService
• NewConstructionandplanning
• InventoryandProcurementintegration
• Decreasedcapitalcost
Intelligent Utility Networks
Characteristics
42
Practical Benefits for Businesses Around the World
Enablesdeliveryofenterprise-levelbusinesscontinuityservicesforaslittleas3USDaday.Reducesclientrecoverytimesfromdaystolessthananhour.
Inthefirstyear,dramaticallyimprovedoverallqualityofservicebyreducingsystemfailures58percent,ITinterruptions39percent,anddowntime80percentusingTivoliMonitoring,EventManagementandConfigurationandChangeSolutions
ImplementedTivoliIdentityManagementSolutions.Projected50%reductioninthenumberofadministratorsassignedtosupportidentitymanagementprocesseswithin18months.Expectedannualcostreductionof$20Million/year.
ReducedITadministrationcostsMonitoringanddynamicallocationofresourcestomeetservicelevelobjectives
EnterpriseAssetManagementandServiceRequestManagerbasedsolutionIncreasedrevenuethroughaccuratecharge-backinformationandhelpedenhancesecurityeffortsandstreamlinecompliancereporting
TivolisolutionprovidingBusinessServiceManagementontopofTivoliMonitoringandEventManagementenablesFastimpactandrootcauseanalysistopinpointcustomersandlinksthatneedimmediateremedialattention
EnterpriseAssetManagementSolutionprojected25%increaseinstaffproductivityReducedoperationalcosts.IncreaseFirstCallResolutionto60%atHelpdeskforincreasedCustomerSat
SavedthecompanyUS$250,000annuallythroughstreamlinedbusinessprocessesGaineda33%increaseinend-usersatisfaction,akeyindicatorofincreasedbidaccuracy
TheUSFood&DrugAdministrationFDAwasdrawntoIBM'sCCMDBandCDTcapability–tooptimizeITprocesses,byleveragingatopologicalmapofdiscoveredinfrastructurecomponentstobusinessapplications.
Transportation Case Study – Tube LinesTheCompany
Tube Lines• ResponsibleforJubilee,NorthernandPiccadillylinesatLondonUnderground
TheChallenge• Requiredanup-to-datesolutiontoproactivelymaintain200milesoftrack,255trains,100stations,2,395bridgesandstructures,71liftsand227escalators
TheSolution
• MaximoforTransportation• MaximoMobile• IntegrationtoOracleFinancialsandHR
TheBenefits
• Improvedcostcollectionandaccountability• Fastremoteaccessandgreatermanagementofassets• Systemconsolidationtoasingleassetsolution
Deploying a single asset management solution across the enterprise to streamline processes, drive proactive maintenance strategies, maximize performance and reduce passenger interruptions.
July,2008
• Reduced asset failure rates •Minimized passenger interruptions • Improved service level agreement compliance• Reduced emergency maintenance• Increased proactive maintenance• Improved information accuracy• Streamlined maintenance processes with mobile technology
Smarter asset management
Company at glance:30-yearPublicPrivatePartnershipcontractwithLondonUndergroundtomaintain200milesoftrack,255trains,100stations,2,395bridgesandstructures,71liftsand227escalators.
Business Challenge
Smart Business Benefits:
“Creating a single source of all asset information has provided unprecedented
visibility of asset performance …”
TheCompanyBombardier• Maintain48railsitesworldwide• 6.000locomotives&passengercars
TheChallenge• Provideapackagedmaintenancesolution• ImplementInventoryandConsignmentStockfunctions• Managetrainconfigurationdowntoadetailedlevel
TheSolution• MaximoAssetandWorkManagement,• MaximoInventoryandPurchasingManagement• IntegrationtoSAPERP
TheBenefits• ImprovedWarrantytracking• FailurereportingavailabletoallBombardiercustomers• Reducedinventoryby20%throughoptimization
Transportation Case Study – Bombardier
Tivoli - How does it reduce costs, How much, How fast to implement, 1 customer example
46
Maximo Asset Management Comprehensive enterprise asset lifecycle management
“To enable a rapid, cost effective deployment, International Power required an asset and maintenance management product that could meet the business objectives of improved effectiveness and cost control and was supported in all the territories of the world”
—Andrew DickinsonIT Director
International Power
Highlights Gain insight across all of your assets, their conditions and work processes
around them for better planning and control. Manage all of your asset deployment, specifications, monitoring,
calibration, costing and tracking from a single system. Comprehensive maintenance work management solution for planned
and unplanned activities such as preventive, reactive and condition-based maintenance.
Plan inventory to meet maintenance demand precisely, making the right parts available at the right location when needed.
Manage your vendor contracts with comprehensive contract management support for purchase, lease, rental, warranty, rate, master, blanket and user-defined contracts.
Service Provider offering manages multiple customers in a single deployed instance, provides accurate billing and improves service delivery efficiency.
Maximo Asset Management provides comprehensive asset lifecycle management for all asset types enabling you to develop comprehensive programs for preventive, predictive, routine and unplanned maintenance. Supports asset, work, service, contract, materials and procurement management.
The Company
Desalination, transmission and distribution of water Generation, transmission and distribution of electrical power 250,000 electric customers, 150,000 water customers 200 Gallons per Day desalination, 3000 MWs generated
The Challenge Modernize the utility through privatization Diverse Assets Staff Reductions Information Technology
The Solution MAXIMO core to new integrated solution for state of the art
maintenance and material management system Integrated with Oracle Financials Standard for 8 business units with 1600 users
The Benefits $30M savings in materials management and inventory reductions $2.5M savings from optimizing maintenance Improved business process and workflow in functional area Cost reduction goal of 25% enabled with Maximo
Case Study: Abu Dhabi Water and Electricity Authority (ADWEA)