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ASPECTS OF TOTAL QUALITY MANAGEMENT APPLIED IN ...

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Annals of the University

Annals of the University “Constantin Brâncuşi”of Tg-Jiu, No. 1/2008, Volume 2, ISSN: 1842-4856 1. Technical impact: • the quality of the service; • the rehabilitasion of the supply network; • restructuring and reorganisation process; • the usage of modern technologies for water treatment, its distribution monitoring, and for the losses reduction; • the setting-up of purifying stations. 2. Economical impact: • the correct determination of the investments efficiency within external financing programs; • the promovation the economical analysis, according to the European standards; • a scientific base for the determination of the two-part tariff structure for water supply public services; • establishing the organisational and functional structure necessary for the external payment of public services taxes and the introduction of the unique bill; • setting-up possibilities for the implementation of specific management methods and techniques regarding the competition conditions or the natural monopoly; • introduction of unique indicators of benchmarking in order to monitor the operators activity efficiency. 3. Social impact: • the correlation of the population affordability level for these public services with their economic costs; • the reorientation of the operators activities in order to satisfy the needs of the consumers/beneficiaries; • conditions for economical water consumes, environment and limitated natural resources protection. Considering the fact that the public water system is used by most of the inhabitants and private companies, the water supply service must fulfill certain standards and quality criteria. For this reason, when we reffer to the stakeholder problem, we must consider that in this category can be included many other organisations, not just water supply operators, which play different roles in planning, controlling, informing the consumers, and taking decisions in the areas covered by operators. Generally, we can identify seven stakeholders categories: operators, consumers, public administration authorities, guvernamental agencies and authorities, professional associations, research and developement organizations and financing institutions. We consider that the principal management technique that can be used in the analyse of the stakeholder sector for water supply services is the stakeholder matrix. In order to define the importance and influence of each stakeholder, we can consider the following criterias: a. The capacity of the stakeholder to influence positively or negatively the performances of the service, that can be cuantified by using an international benchmarking system such like the benchmarks developed by IWA (International Water Association) and IBNET (International Benchmarking Network for Water and Sanitation Utilities) or the ones promoted by World Bank. The capacity of the stakeholder is determined by the power to promote and sustain his interests on the market, by controlling important resources or key informations. b. The influence area of the stakeholder, which is determined by the number of inhabitants that are affected by his decisions, and by the covered geographical area of the service. 46

Annals of the University “Constantin Brâncuşi”of Tg-Jiu, No. 1/2008, Volume 2, ISSN: 1842-4856 c. The economic power of the stakeholder, described by the principal techniques and financial indicators of his activity, by the quantity and quality of the controlled resources, and by his capacity to attract financing institutions. d. The interest manifested by the stakeholder regarding the achievement of a high efficiency and efficacity level for the management and quality of the service. e. The social position of the stakeholder, which is gived by his visibility and credibility at local, regional, national or international level. Considering this criterias, we can promote a classifying system for the stakeholders of water supply public service that groups them in 4 categories (A,B,C,D) and 16 subgroups (Figure no. 1). Figure no. 2 Water supply service stakeholder matrix The first area (A) includes the most powerfull stakeholders from the water supply market, who have the greatest influence on the service performances. This means that any strategic action (legislative modifications, operators regionalisation, implementation of the binom tariff etc.) must satisfy their interests. In the A category we can identify the following „actors”: a. The most important water supply operators in the region, that covers a large geographical area and many beneficiaries. Generally, those stakeholders operates in big cities and has operating licences (from class I to III) from the National Regulatory Authority for Municipal Services). Also, they have a much greater financial capability then the other operators in the region. b. Regional Council, that administrate the public and private domain and is responsable to develop strategies, forecasts and economical development programs. This stakeholder can influence decisively the management of the service at tactical and strategical level, by increasing the cooperation between the local councils of the region, especially the small ones. c. A serie of operatos with moderate influence and importance, that operates in medium towns with more than 30.000 inhabitants. Their influence is limited to the covered area. Ussualy about 15- 20% of the region’s population is supplied by operators from this category. d. Local Councils, whith moderate influence which is gived by their lack of capability to attract external financial resources. This is why European Union recomends their association in order to obtain finances to sustain regional development projects. Presently, in most of Romania’s small towns, local councils are also water supply service providers. e. The Ministry of Administration and Interior, with moderate influence because of his responsability to analyse the legal situations of the water supply public services. 47

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