Objective:
- Although Cinergy was already in the top quartile of U.S. utilities in expense efficiency (as measured by operating and maintenance expense per customer served), the senior team felt there were further opportunities to improve efficiencies and grow revenues.
- Having merged two large utilities 10 years prior, it was the management team's belief that it was time to look again for any further consolidation or integration opportunities.
- They saw in the EHS process an internally driven approach that leveraged their organization, matched their philosophy of generating and owning ideas from within, and helped create a culture of continuous improvement.
Industry:
Electric and gas utility; diversified energy trading and marketingKey Facts:
- One of the Midwest's largest utilities; One of only three utility companies in the U.S. to be named to the Dow Jones World Sustainability Indexes
- Number 2 in Fortune's list of Most Admired Utilities
- Diversified energy trading and marketing
- Top quartile in operating performance—O&M expenses, safety, and reliability
- Revenues: $5 billion; net income: $600 million; employees: 7,400
Results:
- Dramatic improvement in efficiencies; significant revenue growth in marketing and trading businesses
- $80 million incremental earnings
- Extraordinary insights about people and processes; platform for ongoing continuous improvement program
Press:
- Cinergy Continuous Improvement Project Opens the Eyes of Managers, Employees to Opportunity (1.7 MB PDF)
Ten years after the merger of Cincinnati Gas & Electric and PSI Energy in Indiana that resulted in Cinergy, the company charged forward into a new era marked by a culture-changing initiative called CIN-10. By Steve Brash. (October 2004, Chartwell's Best Practices) - Cinergy Third Quarter Earnings Impacted By Mild Weather (14 KB PDF)
Cinergy reports that at the end of Q3, CIN-10 is on course to deliver process improvements and revenue enhancements. (October 22, 2004) - Cinergy Reports Second Quarter Earnings: Moves Forward on Continuous Improvement Initiative (14 KB PDF)
Cinergy reports that at the end of Q2, the specific projects to deliver the targeted pretax earnings have been identified and are on track for implementation. (July 27, 2004)