Assessing the Impact of Quality Electricity Supply on Industrial Performance. A Case Study of Industries in the Greater Accra Region of Ghana


Master's Thesis, 2014

147 Pages, Grade: A


Excerpt


Table of Contents

ABSTRACT

DEDICATION

ACKNOWLEDGEMENT

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1: INTRODUCTION
1.1 BACKGROUND
1.2 PROBLEM STATEMENT
1.3 RESEARCH OBJECTIVES
1.3.1 General Objective
1.3.2 Specific Objective
1.4 RESEARCH QUESTIONS
1.5 SIGNIFICANCE OF STUDY
1.6 SCOPE / DELIMITATION OF THE STUDY
1.7 ORGANISATION OF RESEARCH

CHAPTER 2: LITERATURE REVIEW
2.1 INTRODUCTION
2.1.1 Electricity in Context
2.1.2 Overview of Electricity in Ghana
2.2 ENERGY GENERATION AND SUPPLY
2.2.1 Forms of Electricity Generation
2.2.2 Electricity Supply and Consumption
2.2.3 Quality of Electricity
2.3 INDUSTRIAL PERFORMANCE
2.3.1 Performance in Context
2.3.2 Industrial / Organizational performance
2.3.3 Industrial / Organizational Performance Indicators
2.3.4 Measuring Organizational Performance
2.4 IMPACT OF ELECTRICITY ON INDUSTRIAL PERFORMANCE
2.5 SUMMARY OF LITERATURE REVIEW
2.5.1 Implications in relation to the first specific objective
2.5.2 Implications in relation to the second specific objective
2.5.3 Implication in relation to the third specific objective
2.5.4 Gap Identified in the Literature

3.0 CHAPTER THREE: METHODOLOGY
3.1 OVERVIEW
3.2 RESEARCH DESIGN
3.3 RESEARCH PROCESS
3.4 RESEARCH SETTING
3.5 POPULATION DESCRIPTION AND SIZE
3.6 SAMPLING AND SAMPLING PROCEDURE
3.7 SAMPLING TECHNIQUE
3.8 DATA COLLECTION TECHNIQUES
3.8.1 Tools for Data Collection
3.9 ETHICAL CONSIDERATIONS
3.10 DATA PROCESSING AND ANALYSIS

4.0 CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 OVERVIEW
4.2 RESPONSE RATE
4.3 DEMOGRAPHIC PROFILE ANALYSIS OF RESPONDENTS
4.3.1 Gender Distribution of Respondents
4.3.2 Respondents’ Position in the Industry
4.3.3 Classification of Respondents Based on Type of Industry
4.3.4 Length of Experience/ Service of Respondents
4.3.5 Summary of Demographic Analysis
4.4 QUALITY OF ELECTRICITY SUPPLY
4.4.1 Continuity of Electricity Supply
4.4.2 Voltage Quality
4.4.3 Commercial Quality
4.4.4 Summary of Quality of Electricity Supply
4.5 INDUSTRIAL PERFORMANCE
4.5.1 Product/Market Growth Performance
4.5.2 Financial Performance
4.5.3 Stakeholders Satisfaction
4.5.4 Shareholders Return
4.5.5 Summary of Performance Indicators
4.6 KEY FINDINGS RELATING TO THE RESEARCH OBJECTIVE
4.7 Chapter Summary

5.0 CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS
5.1 CONCLUSIONS
5.2 RECOMMENDATIONS FOR FURTHER STUDIES

REFERENCES

APPENDIX I

Sample of the Questionnaire

APPENDIX II

Samples of Completed Questionnaire

LIST OF TABLES

Table 2.2: Worlds Net Projection for Renewable Electricity Generation in Billion Kilowatt hours (Data Source: EIA, 2013)

Table 2.3: Generation Facilities in Ghana and their respective installed Capacity (Data Source: Volta River Authority, 2014)

Table 2.4: Technical Performance Analysis of Akosombo and Kpong Hydro Generating Station for 2001 (Data Source: PURC, 2001)

Table 2.5:Performance Analysis on Aboadze Thermal Plant (Data source: PURC, 2001)

Table 2.6: Transmission System Performance (Data SOurce: PURC, 2001)

Table 2.7: Duration of Supply hours lost per connected SLT customers for Electricity Company of Ghana in 2001(Data Source: PURC, 2001)

Table 2.8: Number of ECG Supply interruption per 100km of system length for 2001 (data Source: PURC, 2001)

Table 2.9: Number of NedCo Supply interruption per 100 km of system length for 2001 (Data Source: PURC, 2001)

Table 2.10: Types of interruptions monitored by different Countries (data Source: CEER, 2008)

Table 2.11: Continuous Monitoring of Voltage distribution by various European countries (Data Source CEER, 2008)

Table 2.12: Response Time to Customer Complaints in written form. (Data source: CEER, 2008)

Table 2.13: Previous Estimate of Annual Cost of Power Outage (Data Source: Executive Office of the President, 2013)

Table 2.14: Summary of some previous studies on the Estimation of cost of Power outages (Data Source: Musilium O. Oseni)

Table 3.1: Curry’s Rule of Thumb for Sample Seize (Data Source: Yount, 2006)

Table 4.1: Gender Distribution of Respondents

Table 4.2: Position Profile of Respondents

Table 4.3: Categories of Industries Respondents Work

Table 4.4: Length of Service of Respondents

Table 4.5: Availability of Electricity Supply to Industries

Table 4.6: Informed of Planned Outage Periods

Table 4.7: Summarized Mean of Continuity of Electricity

Table 4.8: Satisfied with Voltage Level

Table 4.9: Low Voltage Level

Table 4.10: High Voltage Level

Table 4.11: Summarized Mean of Voltage Quality

Table 4.13: Informed well in advance before planned outage

Table 4.14: Response to Enquires

Table 4.15: Fulfill the Contract Agreement

Table 4.16: Summarized Mean of Commercial Quality

Table 4.17: Summarized Mean of Quality Elements of Electricity

Table 4.18: Production/Service Quality has Improved

Table 4.19: Product/Service has increased

Table 4.20: Customer Base/Market share has increase

Table 4.21: Product/Service Quality & Growth has a direct link with Quality Electricity Supply

Table 4.22: Summarized Mean of Product/Market Growth

Table 4.23: Increased in Profit

Table 4.24: Return on Asset/Investment

Table 4.25:Spend more Financially because of poor Quality Electricity Supply

Table 4.26: Summarized Mean for Financial Performance

Table 4.27: Customer Satisfaction of the Respondents' Industry

Table 4.28: Improvement in Shareholders Return

Table 4.29: Summarized Mean of the Performance Indicators

Table 4.30: Summary the of impact quality electricity supply has on KPI

LIST OF FIGURES

Figure 2.1: Key Players of the Ghanaian Power System (Data source: Volta River Authority, 2013)

Figure 2.2: World Net Electricity Generation in trillion (1012) kilowatt hours (Data Source: EIA, 2013)

Figure 2.3: 2013 Annual Electricity Supply in Ghana (Data Source: Volta River Authority, 2014)

Figure 2.4: 2006 World Net Electricity Generations by Energy Source (Data source: EIA, 2006)

Figure 2.5: Trend of Electricity Generation by Source in Ghana (Data Source: Energy Commission, 2013)

Figure 2.6: Share of hydropower Generation in 2008 (Data Source: IEA,

Figure 2.7: Evolution of Global Hydropower Generation between 19902008 (Data Source: IEA, 2010)

Figure 2.8: World Net Electricity Generation by Fuel Type in Trillion (1012) kilowatt hours (Data Source: EIA, 2013)

Figure .9: China installed capacity and actual electricity generation in 2004 classified into sources (Data Source: Jing Li and Yu Xue, 2019)

Figure 2.10: Electricity production in Flores by Source (Data Source: Pina et al, 2012)

Figure 2.11: Demand and Supply Gab in Electricity for Ghana from 2000 to 2008 (Data Source: Adom et al, 2011)

Figure 2.12: Hourly Consumption of Electricity in Flores (Data source: Pina et al, 2012)

Figure 2.13: Overall Challengers in Ghana for the 3rd Quarter of 2012 (Data Source: GB&F Magazine, 2012)

Figure 2.14: Availability Factor for Akosombo and Kpong Generating Stations in percentage (Data source: VRA, 2014)

Figure 2.15: Availability factor for Akosombo Generating Station compared with others (Data source: VRA, 2014)

Figure 16: Availability factor for Kpong Generating Station compared with others (Data source: VRA, 2014)

Figure 2.17: Planned Interruption: Number of Interruptions per year from 1999 to 2007 for various countries (Data Source: CEER, 2008)

Figure 2.18: Unplanned Interruption per Medium Voltage Level: Number of interruptions per year from 1999 to 2007 for various countries (Data Source: CEER, 2008)

Figure 2.19: Electricity and Economic Growth in U.S. (Data Source: U. S. Department of Energy Transmission Reliability Multiyear Program Plan, 2013)

Figure 20: Annual Cost of Electricity Power Outage and Power Quality Disturbances (Data Source: U.S. Department of Energy, 2003)

Figure 3.1: Flowchart for the Overview of the Research Process used from Conception to Completion

Figure 4.1: Graph of Gender Distribution of the Respondents

Figure 4.2: Graph of Position Profile of Respondents

Figure 4.4 : Length of Service of Respondent

Figure 4.5: Availability of Electricity Supply to Industry

Figure 4.9: Satisfied with Voltage Level

Figure 4.8: Low Voltage Level

Figure 4.9: High Voltage Level

Figure 4.10: Satisfied with Customer Service Provided by ECG

Figure 4.11: Informed Well in Advance before Planned Outage

Figure 4.12: Response to Enquires

Figure 4.13: Fulfill the Contractual Agreement

Figure 4.14: Product/Service Quality has Improved

Figure 4.15: Product/service has Increase

Figure 4.16: Customer Base/Market Share has Increase

Figure 4.17: Product/Service Quality & Growth has a direct link to Quality Electricity Supply

Figure 4.18: Increased in Profit

Figure 4.19: Return on Asset/Investment

Figure 4.20: Spend More Financially Because Of Poor Quality Electricity Supply

Figure 4.21: Customer Satisfaction of the Respondents' Industry

Figure 4.22: Improvement in Shareholders Return

ABSTRACT

Electricity is essential to every modern industry.Several studies discovered a strong positive correlation between electricity usage and economic development as well as growth. However electricity availability is not the sole panacea for industrial performance and growth in Ghana

This research presents the result of an investigation and analysis conducted on the impact quality electricity supply has on the performance of industries in the Greater Accra Region of Ghana

The research methodology employed in this study is quantitative and the data collection was carried using a close ended questionnaire which was designed and administered to 10 broad categories of industrial Owner, Managers, Head of Sections/Supervisors and Engineer to assess their opinions on the quality elements of electricity supply as well as measuring some performance indicators of their industries

Results of the research show that there are three elements of quality supply of electricity. There is a general dissatisfaction in two of these elements, firstly the continuity of supply (availability) and secondly the commercial quality of electricity supply. However the level of voltage quality element was partially satisfactory to many industries

Results also showed four key performance areas of industries as the Product/Market Growth, Financial Performance, Shareholder’s Satisfaction and Shareholders Return. The analysis showed that performance of industries in these areas over the past 2 years has not been impressive

The research concludes that, quality electricity supply is positively correlated to industrial performance in the Greater Accra Region of Ghana and its impact can been seen in six main areas of industry’s performance. These are the Product/Service Quality, Growth/Increase in Production/Services, Financial spending of Industries, Return on Asset/Investment, Customer Satisfaction and Total Shareholder Returns

DEDICATION

I dedicate this work to my beloved family. I love you all

ACKNOWLEDGEMENT

My first and foremost thanks go to the Almighty God for his constant Protection, Love, Guidance and Strength to be able to complete this thesis alongside the manyother things I doing concurrently. I am sincerely grateful to my supervisor Ing. Yaw Yawson, who with his knowledge and patience guided me throughout this thesis process

In my daily work I have been blessed with cheerful family, friends, and colleagues. Nestor Ankah and Dr. Kenneth Anyomi provided me with lots of articles, journal and books that helped me in carrying out this reasearch. I must admit I got inundated with your myriad of journal and articles even though I did ask for them I was not able to read all of them. I now have like a minilibrary of journals and articles on energy

I am also sincerely grateful to Frank Sika, my work colleague, friend and editor. Despite the enormous work pressure we are facing together and even more importantly you as a newly married man, you still made time to read virtually every page making inputs right from my thesis proposal to the completion of this work

Am also grateful to all my friends and loved ones who because of this august study, we hardly had quality time together

CHAPTER 1: INTRODUCTION

1.1 BACKGROUND

Energy is essential to all economic activities. The United State Energy Information Administration (EIA) noted in the International Energy Outlook report for 2013 that the global energy demand and generation are growing. World net electricity generation is projected to increase by 93% from 20.2 trillion kilowatt hours in 2010 to 39.0 trillion kilowatt hours in 2040. (EIA, 2013)

In Ghana, Ministry of Energy and Petroleum as at January 2014, noted in its sectorial overview that electricity is the dominant modern energy form used both in the industrial and service sectors accounting for about 69% of modern energy used in the two sectors of the Ghanaian economy. (MOE, 2014)

The 2013 International Energy Outlook report by EIA agreed to that by noting in its report that electricity supplies an increasing share of the world energy demand. Electricity therefore is considered the fastest growing form of delivered energy in the world. (EIA, 2013)

Ghana’s electricity providers include state own companies and independent power producers (IPP). Currently cumulative installed capacity for the nation as at January 2014 is 2,546.50 MW. With the hydro power having 1,313MW representing 51.56% of the energy generation source of Ghana. The Thermal plants have an installed capacity of 1,231.50MW constituting about 48.36% whilst the Solar having 2MW forming 0.08% of the total electrical energy installed capacity in Ghana (Volta River Authority, 2014)

Electricity generation in Ghana has grown from 7,273GWh 2002 to 12,024GWh in 2012 (Energy Commission, 2013)

IanaVassileva (2012) pointed out that increasing energy consumption is one of the relevant concern societies are facing in recent times. Incessant population growth, booming technology, society growth and increase comfort are some of the reasons noted

Volta River Authority’s Chief Executive Newsletter, (2013) concur with this stating that the Electricity demand of Ghana was currently growing at 10% per annum and that it poses lots of concern considering the current installed capacity and investment needed to match the energy need of the country. Imani Centre of Excellence also agreed to the opinion by stating that the Ghanaian electricity demandgrowth is being boosted by both increasing domestic and industrial demand is estimated to be 10 to 15% yearly. (Imani, 2014)

It is a basic fact that reliable electricity supply is a critical factor and a catalyst for any industrial development. Globally, Energy demand is increasing and the industrial sector uses about onehalf the world’s total delivered energy (EIA, 2013)

Wayne Ma (2014) noted that China’s energy consumption grew by 7.5% in the same year to 5.3 trillion kilowatt hours KWh). The growth in consumption as mentioned was generally due to industrial sector which was stated to have consumed 3.9 trillion kilowatt hours out of the 5.3 trillion that the entire country consumed

Philip Adom (2011) wrote that in 2000, the Ghanaian energy sector witnessed a growth rate of 4.5% which in terms of sector relative contribution to total industrial growth in Ghana

In recent years, Ghana has been faced with its own share of electricity crisis due to varying factors. However in the mist of this looming energy crisis, Ghana seeks to expand its industrial base so as to transform its economic fortunes (Imani, 2014)

In the year 2002, the total electricity generated in Ghana was 7,273GWhr whilst the total electricity consumed in the same year in Ghana was 6,829GWhr. Just a decade after (2012), the total electricity generated was 12,024GWhr and electricity consumed same year was 9,258GWhr (Energy Commission, 2013). This represents 65.3% increase in the electricity generated and 35.6% increase in electricity consumed in Ghana over the period

Ghana electricity load at peak which is the maximum demand for electricity excluding export and Valco demands as at 2002 was 879MW and 1,658MW in 2012 (Energy Commission, 2013). This represents a percentile increase of 88.6% over a period of 10 years. In like manner, the system peak demand which is the maximum Ghana Load at peak including export and Valco demand in 2002 was 1,227MW and 1,729MW in 2012 (Energy Commission, 2013). This also represents an increase of 40.9% over a 10 year period

The industrial electricity consumption however increased only from 3,904GWhr in 2002 to 4,153GWhr in 2012 (Energy Commission, 2013)

Whiles the Nation’s electricity consumption increase by 35.6% from 2002 to 2012, with Ghana’s load at peak increasing within the same period by 88.6% the industrial consumption only accounted for an increase of 6.4% within the same period

Imani, (2014), wrote on the fact that many Ghanaian however face challenges accessing constant and reliable electricity supply for their domestic activities as well as industrial activities

Questions as to whether the State is to be blamed for its inability to provide the right incentive and inapt regulatory framework that will attract investors to invest into the power sector of the economy of Ghana keep rising. The key players in the power sector embarked on a culture of electricity conservation. The public was sensitized on the efficient use of electrical power and the wide spread introduction of energy efficient bulbs. There were also the implementation of the standardization on refrigerators to be imported into the country and the policy to retrieve inefficient refrigerators from the system

1.2 PROBLEM STATEMENT

Recently the entire country againexperienced another energy crisis. This did not only impact negatively on industrial operations but also on individual personal lives. This was not because of low water level at the Akosombo Hydro Generating Station but because of high crude oil prices coupled with unavailability of natural gas to run the thermal plants that run on gas. Lots of questions in the media regarding the quality of electricity supply emerged

Research into quality of electricity generated and supply to household and industries has implications on the energy policy, demand site management and the generation mix. However, very little is done in terms of literature available to confirm the extent of impact quality electricity supply has on industrial performance in Ghana

Literatures available showed that, Electricity consumption has a positive effect on economic growth of a Country. This is achieved by directly improving the industrial performance thereby bringing growth in the industrial sector as noted by some authors. Some literatures even concluded by suggesting that the adoption of energy conservation policies to conserve electricity may unwillingly decline economic growth.(Shahbaz& Lean, 2012)

There are interest in the study of causal relationship between electricity consumption and economic growth in Ghana as well. However it is surprising that there is very little if any empirical data on the impact quality supply of electricity has on industrial performance in Ghana. This study seeks to fill the gap on empirical literature on the impact quality electricity supply has on the performance of industries in Ghana with a particular case study of the industries in the Greater Accra Region of Ghana

1.3 RESEARCH OBJECTIVES

1.3.1 General Objective

To assess the impactquality electricity supply has on the performance of Industries in the Greater Accra Region of Ghana

1.3.2 Specific Objective

1. Analyzing the various elements of quality electricity supply
2. Identify the key performance indicators of Industries in Ghana
3. Determine the impact quality electricity supply has on these performance indicators

1.4 RESEARCH QUESTIONS

The research will seek to answer two main questions;

1. What factors do consumers use to assess the quality supply of electricity?
2. What is the impact of quality supply of electricity on industrial performance?

1.5 SIGNIFICANCE OF STUDY

This study will be of significance to the Association of Ghana Industries (AGI) to observe the impact quality supply of electricity has on industrial performance in Ghana

The finding and analysis will be useful in energy policy formulation as the analysis will include the component of quality electricity supply and how these elements impact on industries. And this will be a vital data for formulating future energy policies. It can also help in taking pragmatic steps into ensuring that quality electricity is supplied to the industries

The Power sector and Government regulatory bodies could also use the study as part of other supporting study documents in decision making in the area of determining which class of industry is affected more and how they can either help reduce the negative impact or invest to improve the positive impact quality electricity supply may have on industrial performance

1.6 SCOPE / DELIMITATION OF THE STUDY

The scope of this research includes the various forms of electricity generation available and how the electricity supply system is structured particularly in Ghana. It also will include determining the quality element of electricity supply and the performance indicators of various categories of industries in the Greater Accra Region of Ghana. Determining the impact electricity has on industries at large and how specifically the quality elements of electricity supply impacts on the identified performance indicators in the case study area

The Delimitation of the research will include the accuracy of data available on the direct impact that quality electricity has on industries in the Greater Accra region of Ghana

1.7 ORGANISATION OF RESEARCH

This thesis consists of five (5) chapters

Chapter 1, which is the introductionhighlighted the background to the study, the problem statement, research questions, research objectives, the significance of the study, the scope and delimitations

Chapter 2 dealt with the review of related literature. This delved into the concept of electricity and the brains behind it. It continued by looking at an overview of the power system of Ghana. It also gave good insight into electricity generation and supply, the forms of electricity generation and the quality aspect with respect to generation and supply of electricity. It also touched on the industrial performance and some key performance indicators of industries and how organizational performances are measured. Literatures were also reviewed on the impact of electricity on industrial performance. The chapter concluded by summarizing the insight gained from the literatures reviewed in relation to the objectives of this study, the gabs that existed and how this study will help fill the gabs

Chapter 3 consisted of the methodology employed in the study. It discussed the strategy adopted in the research design. It also discussed the procedures employed in the data gathering and the instrument used and the approach or methods that were used in the data analysis

Chapter 4 is devoted to the data analysis. It considered all the responses from the questionnaires administered. The results of the analysis were discussed in line with the stated objectives andits similarity or otherwise to those in the literature reviewed

Chapter 5 highlighted the conclusion of the finding and recommended any further investigations that may be needed in the nearest future

CHAPTER 2: LITERATURE REVIEW

2.1 INTRODUCTION

Studies have been done on the nexus of electricity consumption and its impact on industrial growth and even more extensive is the study on the causality of electricity consumption and economic growth

Energy therefore is no doubt an important factor for every economy. Ghana Grid Company Limited (2013) agrees to this by stating in their 2013 Electricity Supply Plan that reliable and dependable electricity supply is vital to the social and economic development of Ghana

More important is the fact that numerous authors such as Ghali and ElSakka (2004), Sari and Soytas (2007), Lee et al (2008), Narayan and Smyth (2008), and WoldeRufael (2008), all opined in one way or the other the importance of energy and the fact that it shouldcontinually be used as a production function framework for both develop and developing countries when analyzing energy consumption and economic growth

The Energy Commission of Ghana (2006) identified the energy demand sector of the Ghanaian economy as the Residential, Commercial and Services, Agriculture and Fisheries, Transport and Industries. It also stated that the supply sector of the Ghanaian economy comprises of the Biomass, Petroleum and Electricity. Table 2.1 summarized the energy demand and supply sectors of the economy as classified by the Energy Commission of Ghana

Table 2.1: Energy Demand and Supply Sector of the Ghanaian Economy (Data Source: Energy Commission of Ghana, 2006)

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2.1.1 Electricity in Context

Thomas Edison and George Westinghouse are the brains behind the electrical energy we see today in our homes and business. This is achieved through a simple electromagnetic power generators and a complicated distribution system. (Boland, 2005).Benjamin Franklin was known as the person who demonstrated that lighting is electricity. Generation, transmission and the use of alternating current was pioneered by Nikola Tesla (EIA, 2014)

Charges in the clouds which are being triboelectrically generated and discharged as lighting washarnessed by Benjamin Franklin. Captured electricity were shown in Leyden jars. Whilst Edisonwas known to pioneered electricity generation and distribution as well as the light bulbs which made electricity became a necessity in our homes, street and businesses. Maxwell Ampere and others works also helped in understanding the laws of electricity. (Boland, 2005)

2.1.2 Overview of Electricity in Ghana

Until June 2013, when 2MW Solar Power plant located in Navrongo, the Northern sector of Ghanabegun commercial electricity generation, Ghana’s electricity power generation and supply was basically from hydro and fossilfuel thermal energy. The hydro generating plants has a total install capacity of 1,579 MW with Akosombo Hydro Generating Station having an installed capacity of 1020 MW, Bui Power Authority having an installed capacity of 399 MW and the Kpong Hydro Generating Station having an installed capacity of 160 MW. The fossil fuel thermal power stations have a total installed capacity of 1,263 MW. (Volta River Authority, 2014)

Ghanaian power sector has five (5) key players in terms of functionality. The Ministry of Energy whose primary goal is to provide Policy direction, the Energy Commission and the Public Utility Regulatory Commission (PURC) who oversee the regulation of power system and the tariff, the generation companies whose mandate is to generate the electricity needed, the transmission company which transmits the generated power from the generation companies to the distribution companies and finally, the distribution companies which sees to the distribution of power to various homes and institutions. Figure 2.1 below shows the key players in the Ghanaianpower system

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Figure 2.1: Key Players of the Ghanaian Power System (Data source: Volta River Authority, 2013)

A cursory look at the electricity supply structure of Ghana reveal that, three (3) main institutions form the core of electricity generation, transmission and distribution in Ghana. Volta River Authority generates and supply about 88% of the total nation’s electricity need (Volta River Authority, 2014), Ghana Grid Company Limited (GRIDCo) is the sole company that transmit the power from the generation companies to Electricity Company of Ghana (ECG).Electricity Company of Ghana (ECG) sees to the distribution of electricity to the various homes and institutions within the southern part of Ghana (ECG, 2014).ECG’s customer base increased from 817,325 in 2000 to 2,393,680 in 2012 as compared to NedCo’s customer base of which increased from 115,273 in 2000 to 483,695 in 2012. (Energy Commission, 2013). The Northern Electrification Department Company (NEDCo) sees to the distribution of electricity in the Northern Part of Ghana (NedCo, 2014)

2.2 ENERGY GENERATION AND SUPPLY

Justine Boland (2005) defined electricity generation as the production of useful current at some voltage. He continued by noting that alternating current can be produced through a varying magnetic field and its subsequent collection of electrical current from loops of wire. (Boland, 2005)

Literature on energy generation reveals that in as much as energy generation globally is increasing, energy demand is also on the increase, and hence, alternatives to generation and energy management are sort to match the increasing energy demand

The U. S. Energy Information Administration (EIA) (2013), projections in the International Energy Outlook of 2013concurred to this by stating that, the world net electricity generation is expected to increase by 93% from 20.2 trillion kilowatthours in 2010 to 39.0 trillion kilowatthours in 2040 as shown in figure 2.2. Electricity is also noted to be the fastest growing form of delivered energy in the world

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Figure 2.2: World Net Electricity Generation in trillion (1012) kilowatt hours (Data Source: EIA, 2013)

The situation in Ghana is not different. Data available from the energy commission of Ghana and the Volta River Authority showed that, the Ghanaian electricity generation capacity increased to 2,546.50MW as at January 2014. (VRA, 2014)

Energy commission of Ghana (2010) noted that the total electricity generated in 2002 was 7,273GWh whilst the Hydro Generation Department of Volta River Authority (2013) mentioned in its 2013 annual report that, the total electricity generated in Ghana in 2013 was 12,847.02GWhr (VRA, 2014)

The 2013 Volta River Authority’s Hydro Generation Department’s annual report showed an interesting trend of electricity generation in Ghana. It showed that the state owned Volta River Authority generated and supplied 11,346.02GWh which represent 88.3% of the entire nations electricity supply for 2013. Its main Hydro generation plants known as Akosombo Generation Station and Kpong Generation Station which are both situated in the Eastern Region of Ghana together generated7,870.19GWh in 2013 which represented 61.3% of the total electricity supply for the Nation Ghana. The two main independent power producer the CENIT Power and SunonAsogli together generated and supply 8.9% of the electricity supply for 2013. Figure 2.3 below shows more details on the energy generated and supply by the various Generation companies in Ghana including the Import from Cote d’Ivoire (CIE). The National’s biggest power provider (Volta River Authority) also exports electricity to Togo and Benin (CEB) and interchanges electrical power with La Cote d’Ivoire (CIE)

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Figure 2.3: 2013 Annual Electricity Supply in Ghana (Data Source: Volta River Authority, 2014)

In summation, energy demand will globally continue to increase hence the need to secure more sources of energy and supply in a more environmentally friendly way

2.2.1 Forms of Electricity Generation

Justin Boland (2005) argue that since the majority of grid electricity is generated through the use of electromagnetic generators by the combustion of fossil fuels, then other sources of electricity generation such as harnessing the flowing water, light, wind, thermal gradients and any other renewable fuel to produce electricity will be referred to as alternative energy

Many other authors concurred with Boland description. Muthanna Saleh Abuhamdeh (2009), agreed by stating that the conventional electric power sources using the fossil fuel such as crude oil, coal or natural gas possess environmental challenges and hence alternative sources such as renewable energy technologies are beginning to play key roles in the world wideelectrical power production. Wikipedia, the free encyclopedia referred to alternative energy source as one that energy can be harness from without the use of fossil fuel From the EIA report in 2009, Fossil fuel sources such as Coal, Crude oil and Natural gas together generated more than 65% of the world’s net electricity generated. It is therefore fair to consider all other source of electricity generation as alternative to fossil fuel sources. Figure 2.4 below shows the various sources of electricity generation by EIA’s report

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Figure 2.4: 2006 World Net Electricity Generations by Energy Source (Data source: EIA, 2006)

Paper by Rolf Wustenhagen and Emmanuel Menuchetti (2011) supported the argument that fossil fuels form the main source of electricity generation. It mentioned that more that 80% of the world’s electricity energy is supplied by fossil fuel. They were quick to mention however that, the uneven nature of resource distribution in the world create energy security challenges. The paper therefore offered strategic choices with regards to investment into renewable energy. They mentioned the fact that an increase in investment into renewable energy technologies could have dual benefits such as helping meet further energy demand and minimizing the risk conventional energy supply possess (Wustenhagen R. and Menuchetti E., 2011)

The EIA (2013) report projected renewable to be the fastest growing form of electricity generation in the world by 2040. Renewable sources are projected to grow from 4.18 trillion kilowatt hours in 2010 to 9.60 trillion kilowatt hours. It also stated the nonhydro resources of renewable are the fastest growing energy generation source among the renewable. Table 2 shows a detail of the renewable projection made EIA

Table 2.1: Worlds Net Projection for Renewable Electricity Generation in Billion Kilowatt hours (Data Source: EIA, 2013)

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The Energy Commission of Ghana (2013) data shows similar trend of renewable generation sources in Ghana. Per available data, the dominant form of electricity generation in Ghana is Hydro. Volta River Authority, (2013) concur to this by stating that with the current nations installed capacity of 2,844.50MW, 55.44% is from hydro generation whilst 0.8% is from Solar. Figure 2.5 shows the generation by source in Ghana over the decade whilst Table 2.3 shows the details on the various generating facilities and their installed capacity in Ghana

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Figure 2.5: Trend of Electricity Generation by Source in Ghana (Data Source: Energy Commission, 2013)

Table 2.2: Generation Facilities in Ghana and their respective installed Capacity (Data Source: Volta River Authority, 2014)

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* Independent Power Producer

The International Energy Agency (IEA) also concurred by noting that hydro is the common form of renewable energy. It continued to mention that world hydro power produced 3,288TWh which formed 16% of global electricity produced in 2008. The overall hydro power technical potential technically speaking is estimated to be more than 16,400 TWh/yr. Figure 2.6 below shows the shares by country in hydropower generation in 2008 whilst Figure 2.7 shows the evolution of global hydropower generation between 1990 2008. (IEA, 2010)

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Figure 2.6: Share of hydropower Generation in 2008 (Data Source: IEA,

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Figure 2.7: Evolution of Global Hydropower Generation between 19902008 (Data Source: IEA, 2010)

Coal is known to be the dominant fuel use in electricity generation in the world. EIA (2013) noted that coal fired electricity generation account for 40% of the world generated electricity in 2010. Although the report showed a slow increase in the projection of coal fired generation from8.05 trillion kilowatt in 2010 to 13.80 in 2040.Coal still remains to be the largest source of electricity generation through 2040. Figure 2.6 below shows that

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Figure 2.8: World Net Electricity Generation by Fuel Type in Trillion (1012) kilowatt hours (Data Source: EIA, 2013)

Natural gas is noted to account for 22% of the world’s energy generation in 2010.Its projection however has improved largely because of the revised expectation of various natural gases

Nuclear power electricity generation worldwide which produced 2.62 trillion in 2010 is projected to increase to 5.492trillion kilowatt hours

Worldwide electricity generation from petroleum and other liquids fall from the projection in 2010 to 2040 because of the high oil prices. (EIA, 2013)

In China, Fossil fuel especially Coal fire thermal plants are the most dominate source of electricity generation. Jing Li and Yu Xue (2010) research on electricity generation in China showed that Coal fired thermal plants form the dominant form of electricity generation and that more have to be done to invest in the renewable sources of electricity generation considering the adverse environmental effects that this conventional energy generation poses on the environment. The authors however stated the low cost of coal as a raw material for the electricity generation as one of the main reason for using coal for generation. Figure 2.9 below show the detail installed generation capacity in China as at 2004 and the actual electricity generated from these sources

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Figure 2.9: China Installed Capacity and Actual Electricity Generation in 2004 Classified into Sources (Data Source: Jing Li and Yu Xue, 2019)

Studies by Pina et al showed that three (3) sources of generation were in isolated island in Flores, the sources as noted in their research are the hydro, the renewable and the diesel plants. Figure 2.10 shows details on that

Figure 2.10: Electricity production in Flores by Source (Data Source: Pina et al, 2012)

2.2.2 Electricity Supply and Consumption

Studies by Jing Li and YuXue (2010) showed that two main power grid and five (5) main generation group exist in China. The two main power grid companies are responsible for the transmission of power in China whilst that of theelectricity generation groups are responsible for generation (Jing Li and Yu Xue, 2010)

The case of Ghana is not that different, Ghana Grid Company Limited is the sole company responsible for transmitting the power generated by the generations companies (Ghana Grid Company Ltd, 2014)

Papers by Tang et al (2013) noted that Chine’s electricity demand is growing at an annual rate of 10% and the current installed generation capacity for the nation is 729.3GW which was only second to United States (1,032 GW) in the world. The paper also noted that the generation mix varied greatly, citing that, over a decade the renewable energy component of the installed capacity grew from 2% to 21%. Whilst the hydro power resource capacity of china was rank the first in the world, only 26% of that was develop adding to the generation mix

The trend of growth in electricity consumption in Ghana is not much different from that which is currently prevailing in most other countries. A press release by the Head of Public Relation officer of Ghana Grid Company Limited on February 5, 2014 on the state of power supply in Ghana mention that the annual peak demand for electricity in Ghana grew from 1,729 MW in 2012 to 1,943 MW in 2013. This represents a percentile growth of over 12%. Per the estimation from the Ghana Grid Company limited, the projected electricity demand during peak for 2014 will be 1,980 MW (GridCo, 2013)

Imani Centre of Excellence concurred to the increase growth in electricity supply in Ghana. It stated that the Ghanaian electricity demand estimated to be growing between 10 to 15 % annually. (Imani, 2014).Figure 2.11 below shows Ghana electricity demand and supply gab. It revealed that there is virtually no electricity reserve margin for Ghana from 2004 to 2008

Figure 2.11: Demand and Supply Gab in Electricity for Ghana from 2000 to 2008 (Data Source: Adom et al, 2011)

Pina et al (2012) study on the impact of demand site management on renewable energy revealed that even isolated island like Flores are having increased electricity demand. Electricity consumption however for such a small service economy was largely due to domestic, commerce and service

Figure 2.12: Hourly Consumption of Electricity in Flores (Data source: Pina et al, 2012)

2.2.3 Quality of Electricity

International Standard Organization (ISO) 9000 defined quality in terms of the extent or degree to which a given set of inherent characteristics fulfills the stated requirement. By this, ISO defines quality as the fitness of purpose. Quality electricity therefore will be the measure of the degree the inherent characteristic that makes up electricity fulfills its requirement

Ervin Sersen of the Energy Agency of the Republic of Slovenia and JozeVorsic of University of Maribor, Slovenija described quality electricity as one that is supplied when there are minimum numbers of interruption during its service duration.They went on to state that electricity’s availability when needed as well as the safe and satisfactory operation of all connected devices constitutes quality electricity. This to Sersen and Vorsic is what customers expect as quality electricity. (Ervin Sersen and JozeVorsic, retrieved on February, 2014)

The 4th Benchmarking report on quality of electricity supply by the Council of European Energy Regulator (CEER) concurred to this by identifying 3 main factors affecting the quality of electricity supply as Continuity of Supply (Availability), Voltage Quality (Usefulness of available electricity) and Commercial Quality. (CEER, 2008)

The Ghana Business and Finance (GB&F, 2012) noted in one of its 2012 magazine under the caption “Ghana’s Power Challenges and National Productivity” that for the third quarter of 2012, the biggest challenge in Ghana with respect to business and productivity was poor power supply. Figure 2.13 below show the ranking of the overall challenge presented by Ghana Business and Finance for the 3rd quarter of 2012

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Figure 2.13: Overall Challengers in Ghana for the 3rd Quarter of 2012 (Data Source: GB&F Magazine, 2012)

Public Utility Regulatory Commission’s (PURC) annual report in 2001 reported on Quality of Service Performance Analysis that was undertaken on all its utility providers. For the Volta River Authority’s two hydro generation stations known as the Akosombo Generating Station and the Kpong Generating Station, the report reveal that it reviewed two key parameters that it considered a quality service measuring metric. These were the generation availability and utilization of the two hydro generation stations. The report mentioned that the Generation Availability Factor (GAF) of Akosombo Generating Station was 98.08% whilst the Utilization Factor was 7,046.31 hours or 88.25% for the year ended December 31, 2001. That of Kpong Generation Station achieved a Generation Availability Factor (GAF) of 98.94% and aUtilisation Factor of 7221.76 hour or 82.23%

Comparing this to PURC own performance benchmarks of 95.0% for availability for both Akosombo and Kpong Generating station. Meaning both Akosombo Generating Station and Kpong Generating Station exceeded PURC target by 3.95% and 3.94% interms of generation availability as a quality measure by the regulatory body. (PURC, 2001)

Table 2.4 below details the results of the technical performance analysis that was undertaken

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Table 2.3: Technical Performance Analysis of Akosombo and Kpong Hydro Generating Station for 2001 (Data Source: PURC, 2001)

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The Quality of service performance analysis by PURC on Aboadze Thermal plant showed an average Utilization factor of 72% as compared to a benchmarked target of 85%. This represents a decline of 13%. The report noted a higher maintenance outage period than forecasted as the reason for the drop. (PURC, 2001). Table 2.5 below shows details

Table 2.4:Performance Analysis on Aboadze Thermal Plant (Data source: PURC, 2001)

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The Transmission System Performance Analysis over the same period showed that the Transmission System Energy losses amounted to 3.08% as against the PURC target of 2.80 whilst the Transmission System Availability was 98.95 as compare with the PURC’s target of 97.0%. Table 2.6 below show detail

Table 2.5: Transmission System Performance (Data SOurce: PURC, 2001)

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For the electricity distribution companies (Electricity Company of Ghana and Northern Electricity Department Company), the PURC report looked at the network security as the quality performance indicator. By network security it analyzed the number of supply interruption within every 100km of system length. Table 2.7 showssupply hours lost for a given SLT customer in 2001. Table 2.8and 2.9 shows the detail on the number of interruption per 100km of system length for electricity Company of Ghana (ECG) and Northern Electricity Department Company respectively for 2001. (PURC, 2001)

Table 2.6: Duration of Supply hours lost per connected SLT customers for Electricity Company of Ghana in 2001(Data Source: PURC, 2001)

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Table 2.7: Number of ECG Supply interruption per 100km of system length for 2001 (data Source: PURC, 2001)

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Table 2.8: Number of NedCo Supply interruption per 100 km of system length for 2001 (Data Source: PURC, 2001)

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2.2.3.1 Continuity of Supply As a Quality Aspect of Electricity

The 4th Benchmark report on quality of electricity supply by the Council of European Energy Regulators in 2008 defined continuity of electricity supply as the availability of electricity. It further noted the unavailability of electricity will therefore mean interruption. Optimal supply of electricity therefore can vary from region to region (say an urban area and a rural area) and from customer to customer (say a domestic customer and an industry). (CEER, 2008)

Availability as a quality measure is very vital for both the customer and the supplier. Imani Centre for Policy & Education noted on it 30th January, 2014 post on “Pricing and Deregulation of the Energy Sector in Ghana: Challenges & Prospects” that an estimated 2 to 6% of Ghana’s GDP is lost annually due to insufficient wholesale power supply. (Imani, 2014)

The Council of European Electricity Regulation 4th benchmarking Report described interruption simply as the any situation that makes supply of electricity unavailable to the customer. Two other detailed definitions were however identified in the report. The first was with regards to the voltage where CEER considers unavailability as an interruption where the magnitudeof the voltage is zero or close to zero at point of connection between the customer and the network. This type of interruption is identified by CEER as one that measure continuity from the customers’ perspective. The second definition however considers the galvanic connection between the customer and the main network. In as much as this second definition does notcorresponds appropriately with customers requirement regarding interruption, it is however the most convenient way for system operators to collage continuity data for their analysis and interpretation. CEER report noted that even though voltage is use in the definition of interruption, continuity data collection is based on opening and closing of interrupting devices and hence practically, the two definitions are the equivalent

The report also mention that the interruption can be classified into several forms, the planned and unplanned interruption, the long, short and transient interruption, the component outage and incident, supply interrupt as well as exceptional event. This exceptional type of event category are not considered in the data or in some instances will be treated separately when analyzingcontinuity of electricity supply. (CEER, 2008) Table 2.10 shows the different types of interruption monitored in different countries

Table 2.9: Types of interruptions monitored by different Countries (data Source: CEER, 2008)

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A look at the Volta River Authority’s Hydro Generation Departments annual report for 2013 showed that Plantavailabilityfor Kpong Generating Station was 97.78% whilst that for Akosombo Generating Station was 97.27%. This according to the report gave a consolidated average of availability of 97.35% for 2013 which was considered way above their own set target of 94%. The figure 2.10 below shows the details on availability from the Hydro Generation Department of Volta River Authority. (VRA,2014)

Figure 2.14: Availability Factor for Akosombo and Kpong Generating Stations in percentage (Data source: VRA, 2014)

Note: A1GS – Akosombo Generating Station, and Z19GS – Kpong Generating Station

The annual report also showed that the performance in terms of availability compared with other utility groupsin the world who are members of Electricity Utility Cost Group (EUCG). The report pointed out the fact that Akosombo GS came out the first (1st) thus had the highest availability factor among its categories of generation stations in term of availability. Figure 2.15 below shows details on Akosombo Generating Station’s availability performance compared with others generating stations in its category in the world

Figure 2.15: Availability factor for Akosombo Generating Station compared with others (Data source: VRA, 2014)

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Figure 16: Availability factor for Kpong Generating Station compared with others (Data source: VRA, 2014)

The Kpong Generating Station was ranked the 9th in its category interm of availability factor. Figure 2.16 below shows the detail

The CEER’s 4th report on benchmarking shows the number of planned and unplanned interruptions in some countries from 1999 to 2007. Figures 2.17 and 2.18 show more details

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Figure 2.17: Planned Interruption: Number of interruptions per year from 1999 to 2007 for various countries (Data Source: CEER, 2008)

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Figure 2.18: Unplanned Interruption per medium voltage level: Number of interruptions per year from 1999 to 2007 for various countries (Data Source: CEER, 2008)

2.2.3.2 Voltage Quality

Voltage quality is yet another aspect of quality supply of electricity considered by CEER in it 4th benchmarking report. It simply described voltage quality as the usefulness of electricity when it is available. By usefulness it considered the technical characteristic like the level of voltage quality. (CEER, 2008)

The InternationalElectrotechnical Commission (IEC) considered electromagnetic disturbance as any electromagnetic phenomenon that when present in an electromagnetic environment can cause electrical equipment to deviate from its intended performance. (IEC, 2014)

Council of European Electricity Regulation’s (CEER) 4th benchmarking report agreed with IEC definition and noted thatvoltage disturbance is used as a characteristic of voltage and that any form of voltage disturbance is classified as poor voltage quality. The report continued by stating that various voltage disturbances were grouped according to the deviation in:

1. Frequency: thus the frequency and time deviation
2. VoltageRMS values such as slow or rapid voltage variations and
3. The voltage wave shape such as the harmonic voltages, transient over voltage or the main signaling superimposed on supply voltage

The report further noted that rapid voltage includes Voltage dips, voltage swells, rapid voltage changes and voltage fluctuation or voltage flickers. The harmonic voltages under the voltage wave shape group could further consider interharmonic and subharmonic voltages (CEER, 2008)

European Committee for ElectrotechnicalStandardizationand EN 50160: 2007 Voltage characteristic of electricity supplied by distribution networks serves as the norm regarding the voltage characteristic for the supply of electricity in Europe. (CEER,2008)

Literatures available show that in most European countries, the distribution companies do provide and install voltage quality recorder for customer for a given time. Customer could on the other hand install their own purchased voltage recorder provided it is found to comply with technical standards set and the also approved by the distribution company

ERGER’s paper titled toward Voltage Quality regulation in Europe in July 2007 noted that there was underestimation of benefits of changes in the voltage standards given by EN 50160. This is said to be due to nonactive participation of what was termed an important class of policy actors. Table 2.11below show how voltage disturbance is currently being monitored in various Europeans countries

Table 2.10: Continuous Monitoring of Voltage distribution by various European countries (Data Source CEER, 2008)

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2.2.3.3 Commercial Quality

CEER define commercial quality of electricity supply as a quality of customer service provided to the customer with regards to electricity. It continued to mention the fact that it includes directly associated transaction between the electricity supplier and the end user customer. These services do not end at just the supply and sale of electricity but also include other forms of contractual agreement between the customer and the electricity company. These could include services such as verification of meters, terminating electricity supply or starting new connection altogether.(CEER, 2008)

Policies and implementation of commercial quality in electricity is more effectively employed in fully liberalize market where the supplier of electricity is not monopolistic. From several literatures, it can be seen that for countries with fully develop competitive market, prompt and professional handling of complaints in relation of commercial quality are much more effective. This is so because customers whose complains are not successfully resolve have options to switch to other service providers and the regulatory measure makes service provides oblige to provide more effective remedy procedures in solving electricity quality issues

Table 2.11: Response Time to Customer Complaints in written form. (Data source: CEER, 2008)

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2.3 INDUSTRIALPERFORMANCE

2.3.1 Performance in Context

Performance is a widely discuss subject. Several theories have been proposed as to measuring performance right from individual at the shop floor through the Chief Executive Officer (CEO) of an organization to the organization or industry as a whole Boyd, Hitt and Gove (2005) revealed that out of papers published in four (4) leading management journals during 1998 to 2000 ( thus within a space of 2 years) performance was the most frequent. (Boyd et al, 2005)

Donglin Wu (2009) sees performance as a measure on how a mechanism or process achieves its objective or purpose well

Karl Albrecht (2011), noted that performance is basically the degree to which organizations attain a given set of predefine goals or targets that are distinctive to its mission. Albracht continued by mentioning that the targets include both objective and subjective indicators

2.3.2 Industrial / Organizational performance

Lots of literature exists on the theoretical and empirical works that have been done onorganizational performance and how this system can be managed.Moulin (2003) see organizational performance as how well an organization is managed as well as the value that organization delivers for customers and other shareholders. Richard et al (2009) concurred with Moulin that Organizational performance is a measure of the actual result or output as against the organizations goals and objectives. Several management books agree with the definition from Moulin. Bibhuti B. Mahapatro the author of a book on Human Resource Management gave a more comprehensive description of organizationalperformance as the ability of a given organization to fulfill its own mission through the use of sound management, robust governance and tenacious rededication towards achieving the needed results

March and Sutton (1997) argue that performance is a common terminology use in management research so much as that its structure and definition is rarely explicitly justified. Kirby (2005) concurred to March and Sutton argument opining that organizational performance is an open question with only few studies using consistent description and measures

In summary, Richard et al (2009) noted that organizational performance is animportant criterion in evaluating organizations, their actions and settings (environments)

2.3.3 Industrial / Organizational Performance Indicators

With the current increasingly competitive market, organizationscompetiveness becomes vital if there is any hope of survival in such as a globally competitive business environment.Various theories and principles have been populated that aims at helping organizations develop indices so as to measurethe extent to which the organization is performing and if the corporate strategies set out are effective in achieving the desire output. Performance indicators for industries are basically quantifiable measurement that reflects the company’s goals and has a potential of showing the extent to which a performance have been achieved taking into consideration all needed factors

Copenhagen (2011) noted the importance of identifying the performance indicators of an organizations and how measuring them is relevant. It stated that these key performance indicators could help ensure a much focused and business oriented efforts

Aditya Parida and Uday Kumar (2009) defined performance indicator as “a measure capable of generating a quantified value to indicate the level of performance, taking into account single or multiple aspects.”

Maria Micallef also agreed to lots of the other author on their definition and importance performance indicators have to any organization. She identified that performance indicators especially key performance indicators are quantifiable measurement that mirrors the critical success factors of an organization. She continue to opine just like most other authors that these indicators should be well linked to the organizations objective as it is use as a yard stick to enable shareholders determine if the organization is on the desire path and how well it is performing in relation to their strategic goals and objectives

The Global Competitive Enterprise described performance indicators as both quantitative and qualitative measures that are used to review the progress of an organization against its goals. (Global Competitive Enterprise, 2014)

Copenhagen (2011) also described organizational key performance indicators as indicators that offer real evidence regarding how a given company’s organizational performance can be measured and evaluated. It continued to mention the fact that the measurement and evaluation are done by means of data. Copenhagen however lamented on how these data are rarely used so as to comprehend the complete or overall performance of companies. (Copenhagen, 2011)

Karl Albrecht (2011) looked at key performance drivers as domain of excellence for any organization. Albrecht opine that these are the dimensions of organizational capacity that makes it possible for the organization to succeed. Seven domains of excellence were identified. These are:

1. Strategic focus
2. Customer Value
3. Leadership & Team Performance
4. Culture, Values, & Ethics
5. Process excellence
6. Talent management
7. Knowledge management
Strategic focus as stated gives a clear purpose and it is linked to financial results. (Karl Albrecht, 2011)

Copenhagen (2011) identified twenty seven (27) organizational areas that can be measured to identify its performance. It further went on to classify these 27 organizational areas into four (4) main categories. These categories as mentioned are:

1. The strength of the organization’s market position
2. Vulnerability of the organization in relation to its key competences
3. The strain on the company’s finances being cause by the human organization
4. Effectiveness of the company’s organization

Richard, Devinney, Johnson and Yip (2009) noted that organizational performance generally covers three specific areas. Their research identified these areas as:

1. Financial Performance: by this Richard et al (2009) notedfirms’ outcome such as profits, return on investment, return assets are some of the indicators used to determine the financial performance aspect of an organization

2. Product Market Performance: Richard et al (2009) again identified that sales, market share are the indicators some organizations measure to determinate their product market performance in relation to the organizational performance

3. Shareholders Return: the economic value added, total shareholder returns, stakeholders satisfactions are also indicators to measure shareholder return and organizational performance as a whole. (Richard et al, 2009)

Organizational performance indicators vary greatly from one organization to the other since these indicators are linked to the goals of the organizations. Works by Rumelt (1991), McGahan and Porter (1997) and Hawawiniet al (2003) all opine in one way or the other that industries and environmental perspective frames performance outcomes

However the three specific areas as indicators for measuring organizational performance by Richard et al seem to be most common area of measurement of organizational performance

2.3.4 Measuring Organizational Performance

Works by Venkatraman and Ramanujam, (1986) and Chakravarthy (1986) showed that research and publications on performance measurement dates as far back as in the 1980s. Now in the twenty first century, researches on measuring organizational performance are examined more generally

Popova and Sharpanskykh (2009) opined the importance measuring and analyzing organizational performance have on turning organizational goals into reality. They stated that performance is assessed by estimating the values of quantitative and qualitative performance indicators. Examples such as profit, cost, and number of clients were given as some of the qualitative and quantitative performance indicator around organization measure their performance (Popova et al, 2009)

Measuring performance of an organization will require weighing the relevance of such performance to the key stakeholders. Dutta andReichelstein (2005) identified that the nature of measuringperformance of an organization can be firm specific. This could depend on the internal policies of that firm and management strategy. (Dutta and Reichelstein, 2005)

Davig et al (2001) argue that product performance is more prominent in the evaluation of performances of smaller firms’. Studies by Laitinen and Chong (2006) also support the finding of Davig et al. Laitinen and Chong established that small companies in Finnish are more focused on product margin, profitability, liquidity and customer satisfaction, their compatriot (small companies ) in the United Kingdom (UK) gives less emphasis on their overall profitability but rather weight highly their debt levels

Malina and Selto (2004) provided evidence to the fact that, in as much as that larger organization just like the smaller firms uses both financial and nonfinancial measures in measuring their performance as an organization, larger organizations however puts more weight more on the financial measures than the nonfinancial ones

Richard et al (2009) noted that organizational performance measures are time specific. This factor therefore should also be considered in measuring the performance of an organization. McGahan and Porter (2003) research supported this by stating that performance varies at different rate and time for industry, corporate and businesses

Richard, Devinny, Johnson and Yip (2009) concluded on three approaches to performance measurement in organization as per their literature review. The first approach was the adaptation of single measure based on the belief in the connection of the measure to performance. The second was the use of alternative measures to compare analysis with different dependent but similarindependent variables. The third approach was when dependent variables were aggregated and convergent validity was assumed based on the correlation between the measures

Karl Albrecht (2011) opined that in organizational performance predefined targets are set. These targets should be both objective and subjective. Richard et al (2009) identified that organizational measures should also be subjective and objective. Richards and his colleagues identified Accounting Measures, Financial Market Measures, Mixed accounting and Financial Market Measures andSurvivals as some common objective organizational performance measures. On the other hand subjective measures were broadly divided into two groups namely the fully subjective and the replicate objective measures which was also referred to as “quasi – objective.” (Richard et al, 2009)

2.4 IMPACT OF ELECTRICITY ON INDUSTRIAL PERFORMANCE

Electricity is essential to every modern society. Electricity has serious Impact not just directly on industries but the entire economy of every country as a whole

The United State Department of Energy noted the unique ability of electricity in conveying both energy and information thereby yielding increases in products, factories applications etc. Figure 2.16 below show how electricity has impacted positively on the United State economy. (U.S. Department of Energy, 2003)

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Figure 2.19: Electricity and Economic Growth in U.S. (Data Source: U. S. Department of Energy Transmission Reliability Multiyear Program Plan, 2013)

The United States Department of Energy (2003) noted that power outages and power quality disturbance results in an estimated cost of$ 25 to $180 billion annually to the economy. Figure 2.20 below shows the annual cost of electricity outage and power quality disturbances

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Figure 20: Annual Cost of Electricity Power Outage and Power Quality Disturbances (Data Source: U.S. Department of Energy, 2003)

The Ghana Business and Finance (GB&F, 2012) magazine noted that poor electricity supply has costed Ghana so much. The magazine mentioned energy as one of the fundamental catalysts needed for Ghana’s rapid industrialization and subsequent development. It however lamented that the combined effect of frequent power outages and regular power surges within the third quarter of 2012 has led to the rise in the unit cost of production. Poor electricity supply was ranked the topmost overall challenge in Ghana from July 2012 to September 2012.(GB&F, 2012)

Vivian et al (2008) noted that it costs manufacturing companies in Africa about 5 to 6 % of their revenue because of power outages. Oshodi and Oloni (2007) revealed from their research that unreliable electricity supply in Nigeria can lead slow industrial growth

Kessides (1993) opined that power rationing in Columbia was estimated to reduce the overall country’s economic output by nearly 1% of GDP in 1992

Centre for Policy Analysis (CEPA), wrote on the energy crisis and growth performance of the Economy of Ghana noted in its report that the commissioner of the Internal Revenue Service (IRS) remarked that Ghana was estimated to have loss in excess of 140 billion cedi in revenue just as result in decline in production in various sectors including manufacturing, mining and quarrying. This decline as the report noted was due to the rising production costs and loss of productive manhours on account of the energy crisis. (CEPA, 2007)

The United States Executive Office of the President’s August 2013 report on “Economic Benefits of Increasing Electric Grid Resilience to weather outages “noted that, a study conducted by Swaminathan and Sen which was published in 1998 used data from a 1992 Duke Power Survey. The data was on the cost of outage to the industrial sector in the Southeastern Region of United States. Their research focused solely on the industrial sector. The report noted an annual estimated cost of outage on the industrial sector alone was 59 billion dollars. The same report also talked on the research carried out by Primen Inc. in 2001. Their survey data was from 985 industrial and Digital Economy (DE) firms to estimate the cost of power outages. The survey data represented all the geographical regions of United States. The estimated cost was stated to be $132 billion to $ 209 billion for just cost of power outage for industrial and Digital economic firms. Table 2.13 below shows previous estimated Annual cost of Power outages. (Executive Office of the President, 2013)

Table 2.12: Previous Estimate of Annual Cost of Power Outage (Data Source: Executive Office of the President, 2013)

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The Ghanaweb (2013), an online newspaper publication in Ghana noted on its business news on Thursday, 31 October 2013 under the caption “Poor water, electricity supply affect Guinness Ghana Profits” that, there was a 4% decline in volumes of Ghana’s only total beverage business and a Diageo business. The reporter made reference to the Mr David Harlock, the board Chairman of Guinness Ghana Breweries Limited (GGBL) who made the comment on addressing the shareholders of the company on the financial performance for the half year ended July 30, 2013 during the 41st Annual General Meeting held in Kumasi. The Board Chairman said Key among the challenges faced within the first half of 2013 was the inconsistent supply of electricity which together with other challenges led to softness in the customers demand and operational challenges of Guinness Ghana Breweries Limited. (Ghanaweb, 2013)

Pasha et al (1989) used a surveyed data on 843 firms in the industrial sector of Pakistan. They noted that the overall economic cost of power outage was about 8.8% of the added value by the industrial sector in 1984 – 1985. They continued to note that the most affected industries are the food, beverages and tobacco, the machinery and equipment industries, the metal and metal product industries and the textile industries. Their research concluded that the outage in the industrial sector led to a 1.8% decline in an overall GDP in 1984 1985. (Pasha et al, 1989)

MusiliunOseni who studied on the Power outage and the cost of unsupplied power among firms in Africa noted that aside the direct usage of electricity in running the industrial machines, its contribution to the productivity of the human capital that this is also key. The positive impact that electricity makes to economic development of any country cannot be overemphasized

Table 2.14 below summarizes some of the literatures reviewed by MusiliumOsenion the cost of power outages

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Table 2.13: Summary of some previous studies on the Estimation of cost of Power outages (Data Source: Musilium O. Oseni)

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Juan P. Rud (2011) research opined the positive impact electricity has on industrial development. He agreed to the fact that, expansion of electricity network helped in the entry and performance of small firms in India. He continued noted that considering the magnitude of their result, serious policy consideration should be made to expand electricity to networks including those in the rural areas if industrial development is to be promoted. (Rud, 2011)

Allcort et al (2014) disagreed to most researchers’ claimthat shortages in electricity leads to a direct loss of productivity, they explained that knowing the importance of electricity, endogenous outage or black out with respect to growth, shortage of electricity are not necessarily exogenous to productivity because some shortages are as a result of rapid economic growth. However their study opined that in as much as electricity shortage are drag on manufacturing companies, this vary greatly from firm to firm. Firms in industries with higher electricity intensity are much more exposed to larger decrease in output should there be power outage

2.5 SUMMARY OF LITERATURE REVIEW

The literature reviewed gave a good understanding into the existing trends in the energy generation and supply around the world and how industries are being impacted by electricity. Lots of related researches that have been studied also showed the existing gab that this study seeks to fill. Very little if any literature exists to show the direct impact of electricity on industries in Ghana

Past researches reviewed provided some partial answers to the research objectives. Most of which are not directly related to the case study area (Industries in Ghana). These are discussed below

2.5.1 Implications in relation to the first specific objective

The first specific objective of this study is to identify and analyze the various elements of quality electricity. It was identified that quality is an inherent characteristic and the ability of this inherent characteristic to fulfill its requirement. The reviewed literature identified three (3) quality measures for electricity.These are the:

1. Continuity of Supply: This deals with the availability of electricity at all time with minimum or no interruptions
2. Voltage Quality: This deal with the usefulness of the electricity when it is available. By usefulness the literatures reviewed considered the technical characteristic like voltage level being within acceptable level for safe connection and use of electrical gadgets
3. Commercial Quality: This deals with the customer service delivery. It includes both directly associated transaction as well as the contractual agreement between the electricity provider and the customer

Other elements of quality supply of electricity from the reviewed literature were the utilization factor which was used for the electricity generation companies and network security which measures the number interruptions within every 100km of system length for the distribution companies

Notwithstanding, more aspects of quality of electricity may exist especially in the case study area and this research will explore additional factors and prioritize as and when needed so to attain their perceived relative importance in affecting performance of industries in Greater Accra

2.5.2 Implications in relation to the secondspecific objective

The second specific objective of this study is to identify key performance indicators of industries especially those in Ghana. Literature were reviewed in area of industrial performance in general and their performance indicators as well as how these organizational performances could be measured

The reviewed literature revealed that, performance indicators vary from industry to industry. Depending on the Vision, Goals, size and time of that industry the key performance indicators could be different

However, four (4) broad performance indicators were found to be commonly used by most industriesto measure their performance. These were identified as;

1. Financial Performance
2. Product Performance
3. Shareholder’s Return and Market share
4. Stakeholders Satisfaction

Since most of this key performance indicators are industry specific, and the above performance indicators are solely gleaned from the reviewed literature, other equally important performance indicator measures could exist in the industries in case study area (Greater Accra Region of Ghana). The research will therefore continue to explore more performance indicators for industries that are likely to be impacted by electricity in the case study area

2.5.3 Implication in relation to the thirdspecific objective

The third and final specific objective of this study is to determine the impact electricity has on industries in greater Accra. The reviewed literature showed several impact electricity has on industries. Most of these impacts were valued in monetary terms. The negative impacts were very heavy for both unplanned and planned outages. Whilst some literature simply classify them as poor supply of electricity others delve much into details the exact cause of the outages. The positive impacts were also seen in how electricity can propel industrial growth and boost economic development

The reviewed literature showed the extent of electricity impact on an industry varied greatly depending on how electricity dependent that industry is. General, it was observed that electricity impacts on industries’ productivity, finances, Growth and expansion

Very little literature existed on the direct impact electricity has on Industries in Greater Accra of Ghana. More research therefore will be conducted in the case study area to assess the impact quality electricity has on industries

2.5.4 Gap Identified in the Literature

There is a general lack of specific impact that quality electricity has on the key performance of industries in Greater Accra Region of Ghana. The study seeks to fill this gab and serve as a literature source

3.0 CHAPTER THREE: METHODOLOGY

3.1 OVERVIEW

This study is aimed at assessing the impact electricity generation and supply has on industries in the Greater Accra Region of Ghana. This chapter discusses the research methodology employed in this research. The chapter took into consideration the research setting, research approach and design, the study population, the tools for the data collection, ethical consideration, data collection process and the data analysis. All these are well discussed to achieve the objective of this study. The methodology will also seek to establish the sources of data employed. It will also touch on the extent to which questionnaire were used for the data collection process

3.2 RESEARCH DESIGN

The research approach is quantitative. Survey method is used to assess the impact of electricity on industries in the Greater Accra Region of Ghana

A flow chat was used to demonstrate the process overview of the research from conception to completion. Primary data on the impacts electricity has on industries were taken by using questionnaire. These questionnaires were developed based on the literatures reviewed and were designed to get the responses from industry Owners, Managers, Heads of Sections / Supervisors and Engineers. This is aimed at getting accurate information on the impact electricity has on their industry’s operation and their perception of quality electricity supply. The questionnaire designed were such that information regarding the independent variables like continuity of electricity, Voltage Quality and Commercial Qualities were collected visavis its impact on the key performance indicators of industries (dependent variables) like the Market / Product growth performance, Financial Performance, Stakeholders’ Satisfaction and the Shareholders Return. This survey design includes the collection and analysis of relevant data

3.3 RESEARCH PROCESS

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Figure 3.21: Flowchart for the overview of the research process used from conception to completion

3.4 RESEARCH SETTING

The Greater Accra Region is the smallest region among the ten (10) administrative regions in Ghana in terms of land size. Its surface land size is about 3,245km2 which forms 1.4% of the total area in Ghana. Despite the region having the smallest size of land its population is the second largest among the regions in Ghana

The 2010 census showed that the Greater Accra Region of Ghana has a population of 2,071,829 people and this is second to Ashanti Region’s 2,464,328 people. The region in terms of population represents 15.4% of the total number of people in Ghana. (Ghana Statistical Service, June 2012)

The capital town of Ghana is Accra and it is in the Greater Accra Region. The Region has one of the largest numbers of industries / organizations in the country

3.5 POPULATION DESCRIPTION AND SIZE

The population study includes all the various classes and sizes of industrial owners, Managers, Higher level Supervisors and Engineers of various industries who are keen on the performance of their organizations and understands the importance of quality supply of electricity to their operations. All these various industries main owners, Managers whose industries are in the Greater Accra Region of Ghana and other interest groups form the population of this study. The population therefore for the study is estimated to be two thousand (2,000)

3.6 SAMPLING AND SAMPLING PROCEDURE

In all, 100 samples were taken to cover some industrial owners of varying size of industries in different sectors. Managers, Supervisors and Engineers of different industries were also considered. The samples selected were good representation of the population from which a more accurate analysis was drawn

The responses from the selected sample were used as the primary data for this research. The various classifications that the samples covered in terms of the line of operation were:

1. Food and Beverage industries
2. Automobile, transport and haulage Industries
3. Building and Construction Industries
4. Electrical and Electronic industries
5. Pharmaceutical industries
6. Steel , Aluminum and other manufacturing Industries
7. Agricultural and Chemical Industries
8. Rubber, Plastic, Garment, Textile and leather Industries
9. Printing, Stationary and Packaging Industries
10. Energy and Others

3.7 SAMPLING TECHNIQUE

The sampling technique was done in a way that, participants will be selected from all categories enumerated above. The target individuals are the industry Owners, Managers, and Engineers or other employees with roles that can help get the best responses from them

The sampling technic used was based on the “rule of thumb” presented by Dr. John Curry in 1984. Dr John Curry a formal professor of Educational Research in North Texas State University opined that sample size can be computed based on the population by using the table 15 below

L.R Gay (1996) however opined that 10% of the larger population should be used as sampling size whilst 20% of the smaller population should be use as sample size

Table 14: Curry’s Rule of Thumb for Sample Seize (Data Source: Yount, 2006)

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This research has an estimated population of 2,000. Using Dr John Curry’s approach,the sample size of 100 is appropriate

This study therefore selected 100respondentsas a sample size used in the analysis. The detail breakdown is as follows in terms of nature of operation

1. 10 Food and beverage Industries
2. 15 Automobile , Transport and haulage Industries
3. 10 Building and construction Industries
4. 10 Electrical and Electronic Industries
5. 5 Pharmaceutical Industries
6. 10 steel, aluminum and other manufacturing Industries
7. 10 Agricultural and Chemical Industries
8. 10 Rubber, Plastic, garment, textile and leather industries
9. 10 Printing, Stationary and packaging Industries
10. 10 Energy Sector and other unlisted industries such as the Cement industries etc

3.8 DATA COLLECTION TECHNIQUES

The main focus of this study is to assess the impact quality electricity supply has on industries in the Greater Accra Region of Ghana

Primary data was taken through the use of a welldeveloped questionnaire

The questionnaires were distributed in three different modes. The first which covers about 50% of the respondents were done by the researcher who directly administered the questionnaires in person and helped answer any doubt that the respondent had. The second approach was done by leaving some of the questionnaires in some customer service points where customers walked in and picked up the questionnaires and responded to them. The final mode of the collection of this data was by sending the questionnaires to the emails of some of the target population. Their responses were then emailed back to the researcher

3.8.1 Tools for Data Collection

The Primary quantitative data was collected by using a wellstructured questionnaire. A closed ended questionnaire option was adopted because the research needed a much focused, uniformity of response and precise answers. This will also help the analysis to be easier and more accurate

The questionnaire was divided into three (3) sections. The first section was on the demography aimed at getting to know the type of respondent. The second section contained questions on the independent variable (Quality Supply of Electricity) and the third section contained questions relating to the dependent variable (Industrial Performance Indicators). The second section which is on the independent variables has three (3) dimensions with a total of nine (9) elements. The third section which is on the dependent variables has four (4) dimensions with a total of nine (9) elements

The Likert Scale which is bipolar scaling method was used. This measured positive and negative responses from the respondents. Five (5) levels of the Likert scale were used from Strongly Disagree, Disagree, Neutral, Agree and Strongly Agree

The reliability of this questionnaire was confirmed to be a good measure to assess the impact quality electricity supply has on industrial performance in the Grater Accra Region of Ghana. This was achieved by issuing a pretest to ascertain the viability of the questionnaire. The supervisor of this research also made very valuable inputs and confirmed the instrument used for this study as reliable

A sample of the designed questionnaire and four (4) completed ones can be seen in the Appendix A and B respectively

3.9 ETHICAL CONSIDERATIONS

Ethical guidelines were followed when administering the questionnaires. All procedures were fair and unbiased to all participants involved. Great caution was taken to ensure that the identities of all participants who participated in the questionnaire were kept anonymous in this research. Avoidance of conflict of interest, Respect of the privacy and confidentiality as well as the social and cultural sensitivity wereall taken into consideration

3.10 DATA PROCESSING AND ANALYSIS

Statistical Package for the Social Sciences (SPSS) software was used for the data analysis. The analysis was grouped into several categories. The demography section was first analyzed using pie chart and bar charts

The responses from section two (2) which were the independent variables were analyzed separately and holistically. The responses in section three (3) which measures the impact the independent variable has on the dependent variable were also analyzed separately and holistically

4.0 CHAPTER FOUR: DATA PRESENTATION ANDANALYSIS

4.1 OVERVIEW

Data obtained from the questionnaires administered are presented, analyzed and discussed in this chapter.One (1) general objective together with three (3) specific objectives drove the collection and subsequent analysis of the data. The general objective was to assess the impact electricity generation and supply has on industrial performance in the Greater Accra Region of Ghana. This objective was accomplished.The chapter begun by looking at the questionnaire survey response rate and continued to present, analyze and discuss data in three subsections. The subsections include the Demography, Quality of Electricity Supply and Performance Indicators ofindustriesin Greater Accra Region

4.2 RESPONSE RATE

Having a research population of about two thousand (2,000), a sample size of one hundred (100)was arrived at using Dr John Curry’s rule of thumb for sample size. (Yount, 2006)

In total one hundred (100) survey questions were administered to industry owners, Managers, Head of Sections/Supervisors and Engineers of various industrial types in the Greater Accra Region of Ghana. The responses to all the one hundred (100)questionnaires were received within the time period out of which ninety eight (98) representing 98% of them were considered viable and hence useable for this research. Two (2) responses representing 2% were discarded based on the fact that the respondents failed to meet the needed quality and consistency in answering the questionnaires. One (1) of the response appeared not to be thoughtfully answered. By this the respondents virtually selected “Neutral” throughout the questions answered. The other was also discarded based on the fact the respondent ticked multiple answers and did not also answer most of the remaining questions. Since no meaningful interpretations can be deduced from these two (2) responses they were discarded

The response rate for the survey is 98%. Inaddition,per the estimated population, the ideal sample size should have been one hundred(100)responseswhilst the actual responses used for this analysis was ninety – eight (98)

4.3 DEMOGRAPHIC PROFILE ANALYSIS OF RESPONDENTS

4.3.1 Gender Distribution of Respondents

From Table 4.1 and Figure 4.1 below, out of the 98 valid respondents, 72 were Males and 26 were Females, this represented 73.5% for Male respondents and 26.5 for Female respondents

Table 15: Gender Distribution of Respondents

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Figure 22: Graph of Gender Distribution of the Respondents

4.3.2 Respondents’ Position in the Industry

Figure 4.2 below summaries the various positions of the respondents in their industries. From Table 4.2 and Figure 4.3, most of the respondents are Heads of Section/ Supervisors and this constitute 44.9%. This is followed by Managers which constitute 22.4%, Engineers constitute 21.4% and Owners of the industry constitute 11.2%

Table 16: Position Profile of Respondents

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Figure 23: Graph of Position Profile of Respondents

4.3.3 Classification of Respondents Based on Type of Industry

From table 4.3 below, a minimum of 5.1% of the respondents own or work in the Pharmaceutical industry whilst a maximum of 17.3% own and or work in the Automobile, Transport & Haulage Industry. A summary of this is shown in figure 4.3 below

Table 17: Categories of Industries Respondents Work

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Figure 4.3: Categories of Industry Respondents Work

4.3.4 Length of Experience/ Service ofRespondents

From Table 4.4 below, 38.8% of the respondents have been in their stated industry for 2 – 5 years, 28.6% has been there for 5 – 6 years, 18.4% for less than 2 years and only 14.3% have been there for more than 10 years

The length of service of respondents in their respective categories of industries is summarized in figure 4.4 below

Table 18: Length of Service of Respondents

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Figure 24 : Length of Service of Respondent

4.3.5 Summary of Demographic Analysis

The ninetyeight(98) respondents whose demography was analyzed revealed that 73.5% were males whilst 26.5% were females. Majority of them (44.9%) were Heads of Sections / Supervisors whilst 11.2% were industrial Owners. Managers or Engineersconstituted 22.4% and 21.4% respectively. 38.8% of the respondent has between 2 – 5 years length of service or experience in their industries and 28.8% having length of service between 5 – 10 years. 18.4%have less than 2 years length of service while 14.3% had more than 10 years length of service in their current industry of work

The Industries werealso categorized into ten (10). Automobile, Transport & Haulage Industry category had the highest respondent of 17.3% whilst the Pharmaceutical Industry category had the lowest respondent of 5.1%

4.4 QUALITY OF ELECTRICITY SUPPLY

4.4.1 Continuity of Electricity Supply

Under the continuity of electricity supply two questionswere asked.Tables 4.5 and 4.6 as well as Figures 4.5 and 4.6 summarized their responses

Table 19: Availability of Electricity Supply to Industries

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Figure 25: Availability of Electricity Supply to Industry

From Table 4.5and Figure 4.5 above, 40.8% of the respondents disagreed whilst 24.5% ofthem agreed that they are satisfied with the availability of electricity to their industry. 18.4% strongly disagreed to the statement and 8.2% strongly agreed to the statement. However, another 8.2% were Neutral in their response

This generated a mean of 2.632. It can therefore be concluded that majority of the respondents (59.2%) are not satisfied with the availability of electricity supply to their industries

Table 20: Informed of Planned Outage Periods

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From Table 4.6 above and Figure 4.6 below, 41.8% of the respondents disagree with the statement that they were informed of any planned outage during time of unavailable electricity. 25.5% strongly disagreed to the statement whilst 18.4% agreed and only 5.1% strongly agreed. 9.2% of the respondents were neutral with respect to this statement

This analysis reveal a mean of 2.357 and a cumulated 67.3% of the respondent stating that they are not informed of time of unavailable electricity and hence this affects their industry’s operation

Figure 4.6 below summarized the responses by to this statement

Figure 4.6: Informed of Planned Outage Hours Periods

Table 21: Summarized Mean of Continuity of Electricity

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In summary, with an average mean of 2.50 which is lower than expected mean of 2.9.It can be concluded thatmost respondents were not satisfied with the continuity of electricity supplied to their industries

4.4.2 Voltage Quality

Respondents were asked three (3) questions to determine the quality of voltage being supplied to their industries. Tables 4.8, 4.9 and 4.10 as well as Figures 4.7, 4.8 and 4.9 summarized their responses

Table 22: Satisfied with Voltage Level

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Figure 26: Satisfied with Voltage Level

From Table 4.8and Figure 4.7 above, a total of 37.8% of the respondents are not satisfied with the level of voltage supply whilst 42.8% are satisfied. 19.4% were neutral

A mean of 3.05 was generated which is above an expected mean of 2.90. It can therefore be concluded that most respondents were satisfied with the level of voltage supply of electricity to their industries

Table 23.9: Low Voltage Level

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Figure 27: Low Voltage Level

From Table 4.9 and Figure 4.8 above, a total of 51.1% of the respondents experience low voltages whilst 30.6% do not experience low voltages in their industries. 18.4% were neutral

A mean of 2.70 was generated which is lower than expected mean of 2.9. It can be concluded that most respondents experience low voltage of electricity supply to their industries

Table 24: High Voltage Level

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Figure 28: High Voltage Level

From Table 4.10 and Figure 4.9 above, a total of 32.7% of the respondents experience high voltages whilst 46.9% do not experience high voltage in their industries. 20.4% were neutral

A mean of 3.11 was generated which is higher than the expected mean of 2.9. It can be concluded that most respondents do not experience high voltage of electricity supply to their industries

Table 25: Summarized Mean of Voltage Quality

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In summary, the analysis revealed that whilst most respondents do experience low voltage quality and not high voltages, they are however mostly satisfied with the level of voltage supply to their industries. And with an average mean of 2.95 which is higher that an expected mean of 2.9 but lower than 3.0, it can be concluded that industries are only partially satisfied with the voltage level supply

4.4.3 Commercial Quality

Four (4) questions were asked to determine the commercial quality of electricity supply to the respondents’ industries. Tables 4.12, 4.13, 4.14 and 4.15 as well as Figures 4.10, 4.11, 4.12 and 4.13 summarized their responses

Table 4.12: satisfied with customer service provided by ECG

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Figure 29: Satisfied with customer service provided by ECG

From Table 4.12 and Figure 4.10 above, a total of 72.4% of the respondents are not satisfied with the customer service provided by the distributor company ECG. 15.3% however are satisfied with the level of customer service rendered by ECG, whilst 12.2% were neutral

A mean of 2.22 was generated compared to an expected mean of 2.90, it can be concluded that most respondents are not satisfied with the levelof customer service provided by the distributor company (ECG)

Table 26: Informed well in advance before planned outage

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Figure 30: Informed well in advance before planned outage

From Table 4.13 and Figure 4.11 above, a total of 64.3% of the respondents said they are not informed well in advance before any planned outage. 23.4% however said they are well informed in advance of any planned outage whilst 12.2% were neutral

A mean of 2.43 was generated. It can be concluded that most respondents are not informed well in advance before any planned outage

Table 27: Response to Enquires

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Figure 31: Response to Enquires

From Table 4.14 and Figure 4.12 above, a total of 49.0% noted that their responses to enquires with regards to electricity were not attended to. However, 29.6% noted that their enquiries regarding electricity were well attended to. 21.4% were neutral

A mean of 2.69 was generated compared with an expected mean if 2.90. It can be concluded that just a little below half the respondents complained that their enquiries regarding electricity was unattended to

Table 28: Fulfill the Contract Agreement

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Figure 32: Fulfill the Contractual Agreement

From Table 4.15and Figure 4.13 above, a total of 56.1% of the respondent noted that the distributor does not fulfill its part of the contractual agreement such as meter verification, reconnection, disconnection and being held liable for losses. 30.6% of the respondentsconcurredthat they do fulfill their contractual agreement. 13.3% however remained neutral

A mean of 2.57 was achieved. It can be concluded that most of the respondentshave established that the distributor company does notfulfill its part of the contractual agreement

Table 29: Summarized Mean of Commercial Quality

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From the 98 respondent, an analysis on the three (3) quality elements of electricity supply was undertaken

With an average mean of 2.67, it has become clear that most of the respondents are not satisfied with the continuity of electricity supply to their industries. 59.2% of the respondents are not satisfied with the availability of electricity and 67.3% of them are also not informed ahead of time during planned outage hours and this affect their industries’ performance so much

For Voltage quality, although 51.0% of the respondents noted they do experience low voltages and 46.9% also noted they do experience high voltages as well, the majority of the total respondent which constituted 42.8% said they were satisfied with the voltage quality supplied to their industries

On the commercial quality, as high as 72.4% of the respondents are not satisfied with the level of customer service provided by the distributor company. 64.3% said they are not well informed in advance before any planned outage. 49.0% also noted they do not receive any response to their enquires. 56.1% also made it known that the distributor company does not fulfill its part of the contractual agreement

4.5INDUSTRIAL PERFORMANCE

4.5.1 Product/Market Growth Performance

Four (4) questions were asked to determine the product/market growth performance as a key performance indicator. Tables 4.18, 4.19, 4.20 and 4.21 as well as Figures 4.14, 4.15, 4.16 and 4.17 summarized their responses

Table 31: Production/Service Quality has Improved

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Figure 33: Product/Service Quality has improved

From Table 4.18 and Figure 4.14 above, a total of 51.0% of the respondents said product/service quality has not improved significantly over the past 2 years. 32.7% of the respondents noted their industries haveexperience significant improvement in their product/service quality over the past 2 years. 16.3% however remained neutral

A mean of 2.71 was achieved. It can be concluded that most of the respondents’ industries did not experience significant improvement in their product /service quality over the past 2 years

Table 32.19: Product/Service has increased

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Figure 34: Product/service has increase

From Table 4.19 and Figure 4.15 above, a total of 44.9% of the respondents said product/service quality has not increased significantly over the past 2 years. 29.6% of the respondents noted their industries have experience significant increase in their product/service over the past 2 years. However, 25.5% remained neutral

A mean of 2.72 was achieved. It can be concluded that most of the respondents’ industries did not experience significant increase in their product /service over the past 2 years

Table 33: Customer Base/Market share has increase

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Figure 35: Customer Base/Market Share has Increase

From Table 4.20 and Figure 4.16 above, a total of 21.4% of the respondents said their customer base/market share has not increased over the past 2 years. A majority of 58.2% of the respondents noted that, their industries have experienced increase in their customer base/market share over the past 2 years. However, 20.4% remained neutral

A mean of 3.49 was achieved which is more than the expected mean of 2.90. It can be concluded that most of the respondents’ industries did experience increase in their customer base/market share over the past 2 years

Table 34: Product/Service Quality & Growth has a direct link with Quality Electricity Supply

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Figure 36: Product/Service Quality& Growth has a direct link to Quality Electricity Supply

From Table 4.21 and Figure 4.17 above, a total of 31.6% of the respondents said no direct link existed between quality supply of electricity and their product/service quality or growth. 41.9% which constitute the majority however noted that their product/service quality and growth has a direct link to quality supply of electricity.26.5% remained neutral

A resultant mean of 3.14 was achieved. It can be concluded that most of the respondents’ industries’ product/service quality and growth do have direct link to the supply of quality electricity

Table 35: Summarized Mean of Product/Market Growth

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In summary, whilst the product/service quality has not improved or increased significantly over the past 2 years, customer base/market share did increase over the same period. A combined effect however resulted in an average mean of 2.97 which means most of the industries in the Greater Accra Region in Ghana did not experience product/market growth over the past 2 year. Another question post to determine the correlation between electricity and product/ market growth resulted in a mean of 3.14 which means, there exist a positive correlation between product/service quality, growth and quality supply of electricity

4.5.2 Financial Performance

Three (3) questions were asked to determine the financial performance of the respondents’ industries in the Greater Accra Region. Tables 4.23, 4.24, and 4.25 as well as Figures 4.18, 4.24 and 4.25 summarized their responses

Table 36: Increased in Profit

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Figure 37: Increased in Profit

From Table 4.23 and Figure 4.18 above, a total of 37.8% of the respondents’ industries did not experience a good increase in profit over the past 2 years. A larger number constituting 40.9% however noted that their respective industries experienced a good increase in profit over the past 2 years. 21.4% of the respondents remain neutral about this statement

A resultant mean of 2.98 was achieved. It can be concluded that partly, a larger respondents’ industries experienced a good increase in profit over the past 2 years

Table 37: Return on Asset/Investment

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Figure 38: Return on Asset/Investment

From Table 4.24 and Figure 4.19 above, a total of 36.7% of the respondents’ industries did not experience a good return on their assets or investments over the past 2 years. 28.5% however did experience a good return on their Assets/Investment within the same period.Quite a large number of the respondent (34.7%) remained neutral and cannot tell if their industries had a good return on their assets/investment

A resultant mean of 2.89 was achieved. It can be concluded that majority of the respondents’ industries did not experience a good return on their assets or investments over the past 2 years

Table 38:Spend more Financially because of poor Quality Electricity Supply

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Figure 39: Spend more financially because of poor quality Electricity Supply

From Table 4.25 and Figure 4.20 above, Most of the respondents’ (57.1%) did say their industries spent more financially as a result of poor quality of electricity supply, 21.4 % of the respondents thought otherwise whilst another 21.4% remain neutral

A resultant mean of 2.40 was achieved. It can be concluded that most of the respondents’ industries do spend more financially because of poor quality electricity supply over the past 2 years

Table 39: Summarized Mean for Financial Performance

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In summary, even though most of the respondents’ industries (40.9%) did experience a good increase in profit over the past 2 years, this did not translate into majority of them having a good return on their assets and most also do spend more financially as a result of poor quality supply of electricity. A resultant average mean for the financial performance is therefore 2.76 which implies that generally, most of the industries did not do well financially over the past 2 years

4.5.3 Stakeholders Satisfaction

Customer satisfaction of the respondents’ industry was measured. Table 4.27 and Figure 4.21 below summaries their Reponses

Table 407: Customer Satisfaction of the Respondents' Industry

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Figure 401: Customer Satisfaction of the Respondents' Industry

From Table 4.27 and Figure 4.21 above, a total of 41.8% of the respondents noted that their customers were not satisfied with the product or services their industries rendered over the past 2 years. 31.6% however said their customers were much satisfied with their product/services. 26.5% of the respondents remained neutral on this statement

A resultant mean of 2.83 was achieved. It can be concluded that most of the respondents’ industries’ customers are not satisfied with the level of product or service they rendered over the past 2 years

4.5.4 Shareholders Return

Improvement in total shareholder return for the respondents’ industries was measured by this question. Table 43 and Figure 43 below summaries their Reponses

Table 41: Improvement in Shareholders Return

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Figure 41: Improvement in Shareholders Return

From Table 4.28 and Figure 4.22 above, a total of 42.9% of the respondents noted that, the total shareholders’ return has not improved significantly over the past 2 years. A minority of 20.6% however agreed the total shareholders return improved over the past 2 years. Quite a large proportion (36.7%) of the respondent remained neutral on this statement

A resultant mean of 2.72 was achieved. It can be concluded that, in as much as most respondent said the total shareholders’ return in their industries did not improve significantly over the past 2 years,an equally large proportion also remained neutral on the statement

4.5.5 Summary of Performance Indicators

Table 42: Summarized Mean of the Performance Indicators

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From a total of 98 respondents in various industries in the Greater Accra Region, questions were design to cover four key performance indicators of these industries

The analysis revealed that in the area of product/market growth of their industries, 51.0% of the total respondents’ industry did not experience any significant product or service quality improvement over the past 2 years. When asked if there was any significant increase in the service over the same period, 44.9% which form the majority again affirmed that there was not any significant increase in the their product or service over the past 2 years. However 58.2% of the respondent noted that their customer base/market share did increased over the past 2 years. 41.9%. A resultant average mean was 3.71 meaning most respondents’ industry did not experience product/market growth over the past 2 years

It was also established with a mean of 3.14 and a majority percentage of 41.9% product/ service quality and growth has a direct link with quality supply of electricity

In the area of financial performance, in as much as 40.9% of the respondent noted they had a good increase in profit over the past 2 years, another majority of 36.7% of the total respondent said they did not experience a good return on their asset / investment and a total of 57.1% out of the 98 respondents said they spend more financially as a result of poor supply of electricity. This resulted in an average mean of 2.76 which means that most of the industries did not do well financially over past 2 years

With regards to the stakeholders’ satisfaction and shareholders return, a majority of 41.8% with a mean of 2.83 of the respondent said their customers are not satisfied with their products or service over the past 2 years. The analysis also revealed that 42.9% with a mean of 2.72 of the total respondents mentioned the fact that the total shareholder return has not improved significantly

4.6 KEY FINDINGS RELATING TO THE RESEARCH OBJECTIVE

Specific Research Objective

Analyzing the various elements of quality supply of electricity

Findings

Three main elements of quality electricity supply were identified and analyzed. The first is the continuity of supply. By continuity, this quality element deal with the availability of electricity at all times with very minimum or no interruptions. Investigations and analysis revealed an average mean of 2.50 this shows that this element of quality supply of electricity have been largely unsatisfactory to industries in the Greater Accra Region of Ghana using Likert scale of 1 to 5

The second was the voltage quality which looked at the usefulness of the electricity when it is available. By this, technical characteristics like the voltage level being within acceptable range for safe connection and use by electrical gadgets was considered. Investigation and analysis in this area revealed that with a mean of 3.05 that means a little over average of industrials are satisfied with the level of voltage quality supply but quite a large proportion of the respondent which generated a mean of 2.70 also noted that they do experience low voltage sometimes

The third quality of electricity supply element that was identified and analyzed was the Commercial Quality. This deals with the customer service delivery. It includes both directly associated transaction as well as the contractual agreement between the electricity provider and the customer. Analysis revealed that as high as 72.4% of the respondents of the various industries in the case study area are not satisfied with the level of customer service provided by the distributor company. An average mean of 2.48 for the commercial quality show that most of the respondents are not satisfied with the commercial quality of electricity supply

Specific Research Objective

Identify the key performance indicators of industries in Ghana

Findings

Ghanaian industries just like many others across the globe have varying key performance indicators depending on the vision, mission, goal, size and time of that industry. However four broad areas were identified to be measured by almost all the industries. These four (4) areas measured by the key indicators are the financial performance, Product/ Service performance, Shareholders’ Return and the Stakeholders’ Satisfaction

Investigation and analysis on each of these performance indicator revealed that, a mean of 3.49 showed that customer base /market share has increased over the past 2 years, and also a mean of 2.98 showed that just a little below the average likert scale mean of 3 said they had good increases in profit within the same period. Virtually all other measuring factor under these performance indicators performed below expectation. For instance in the product/ market growth performance category, an average mean of 2.71 show there have not been any significant increase in product/service or even improvement in quality of service / product over the past 2 years. A mean of 2.40 also showed that most respondent concurred that poor quality electricity makes them spend more financially. Another mean of 2.89 also show that there have not been a good return on assets/investment. Stakeholder satisfaction generated a mean of 2.83 showing that stakeholders are not satisfied and finally an average mean of 2.72 for the shareholder return also indicates that there was not significant return on shares for the shareholders

Specific Research Objective

Determine the impact of quality electricity supply on these performance indicators

Findings

From the findings, electricity does have a direct impact on the product/service performance and growth in Industries in the Greater Accra Region of Ghana

Analysis of the respondents generated a mean of 3.14 which indicates that there is a positive correlation between industrial performance and quality of electricity supply

Table 43:Summary the of impact quality electricity supply has on KPI

Abbildung in dieser Leseprobe nicht enthalten

From Table 45 above, Investigation and analysis revealed that quality supply of electricity which resulted in an average mean of 2.67 and performance of industries which also generated an average mean of 2.76 which are both considered unsatisfactory by Likert scale. Also it has earlier been established with a mean of 3.14 that quality electricity supply positively correlated to the performance of industries

It is therefore concluded that unsatisfactory quality supply of electricity did played a role in the unsatisfactory performance of industries in the Greater Accra Region of Ghana in the following 6 main Performance indicator areas:

1. Product/Market Growth Performance

Insignificant product/service quality improvement (mean of 2.71)

Insignificant production/service increase even in the face of increases customer/market share (mean of 2.72)

2. Financial Performance

Unappreciable return on asset/investment even though profits were made within the same period (mean of 2.89)

High spending financially due to poor quality of electricity supply (mean of 2.40)

3. Stakeholders satisfaction

Decline customer satisfaction (mean of 2.40)

4. Shareholders Return

Insignificant total shareholders return over the stated period (mean of 2.72)

4.7 Chapter Summary

A sample size of one hundred (100) was arrived at from an estimated population of two thousand (2,000) using Dr. John Curry’s approach. A total of one hundred (100) survey questions were dispatched and all the 100 were received as at the time the analysis was about to commence. Two (2) of the questionnaires were discarded since no meaningful interpretation can be deduce from them. Out of the 100 questionnaires that wasdispatched 98 of them were therefore considered to be valid and this corresponds to a survey response rate of 98%

Analysis of the demographic section revealed that out of the 98 respondents, 72 were Males whilst 26 were Females. 11.2% of the respondents were industry owners, 22.4% were Mangers, 44.9% were Heads of section/Supervisors and 21.4% were Engineers. The industries were categorized into ten (10). A minimum of 5.1% respondents were from the Pharmaceutical Industry whilst a maximum of 17.3% were from the Automobile, Transport and Haulage Industry. 18.4% of the respondent had less than 2 years of service length in their current industry, 38.8% served for 2 5 years, 28.6% served for 5 – 10 years and 14.3% served for more than 10 years in their current industries

Analysis of the quality supply of electricity revealed that, majority of the respondents are not satisfied with the continuity of electricity supply to their industries. While most of them are satisfied with the level of voltage quality, they also noted that they do experience some level of low voltages sometimes. A very high proportion of the respondents are not satisfied with the commercial quality of electricity supply. As high as 72.4% of the respondents are not satisfied with the level of customer service provided by the distributor company

Analysis of the performance indicators showed that most respondents agreed there is a direct link between product/service quality and growth and that of quality supply of electricity. Most respondents also noted they have not experience significant increase in production/ service increase or product/service quality improvement over the past 2 years even though most agreed there was a good increase in customer base/market share over the same period

Financially, even though 40.9% said their industries did have a good increase in profit over the past 2 years, 36.7% of the total respondent in a separate analysis noted that there has not been a good return on their asset or investment. 57.1% of the respondents also noted they do spend more financially due to poor electricity supply over the past 2 years. The resultant mean for the financial performance only buttress the point that most of the industries in the Greater Accra Region of Ghana did not do well over the past 2 years

The analysis also revealed that 41.8%(mean of 2.83) noted that their customers are not satisfied with their products/services and 42.9%(mean of 2.72) mentioned that the total shareholder return has not seen much improvement over the past 2 years

In conclusion, the analysis revealed that assessing the impact electricity generation and supply has on industrial performance in Greater Accra can be felt in six (6) main areas of the key performance indicators. These areas are Product/Service Quality, Growth/Increase in Production/Services, Financial spending of Industries, Return on Asset/Investment, Customer Satisfaction and Total Shareholder Returns

5.0 CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS

5.1 CONCLUSIONS

This research aimed at identifying the elements of quality electricity supply as well as the key performance indicators of industries in the Greater Accra Region of Ghana. It then carried out assessment on how these quality elements of electricity supply impact on industrial performance in the Greater Accra Region of Ghana

Results of the investigations and analysis into the quality elements of electricity supply revealed three (3) broad categories. These are firstly, the Continuity of Electricity Supply, secondly the Voltage Quality and finally the Commercial Quality

Results of investigations and analysis into the key performance indicators revealed four (4) broad categories. These are: the Product/Market growth Performance, Financial Performance, Stakeholder Satisfaction and the Shareholders Return

In summary, results of investigations and analysis revealed that most of the industries in the Greater Accra Region of Ghana are not satisfied with the quality supply of electricity with regards to the continuity of electricity supply and the commercial quality of electricity supply in the Region. They are however partly satisfied with the voltage quality of the electricity supply.Industriesin the Greater Accra Region did not experience any significant product/service quality improvement or growth/increase over the past 2 years even though there is large proportion that concurred that they did experiencean increase in the customer base/market share over the same period. Largely, the industries did well in terms of profit but not in terms of return on asset or investment, return on shareholdings or in the area of satisfying their customers over the same period

It was also established that product quality/service quality and growth of most of the industries has a positive correlation to the quality supply of electricity to the industry

In conclusion, unsatisfactory quality supply of electricity has a part in the low performance of most industries in the Greater Accra Region of Ghana in the following areas,

1. insignificant product/service quality improvement,
2. insignificant production/service increase even in a face of increased customer base/market share,
3. Unappreciable return on asset even though profit were made within the same period,
4. High spending financially due to poor quality supply of electricity
5. Unsatisfied customers of affected industries and
6. An insignificant total shareholder return

5.2 RECOMMENDATIONS FOR FURTHER STUDIES

It was observed that most of the respondent gave information based on their opinion and what they are previewed to in their respective industries. Taking into consideration the fact that the distributor company (Electricity Company of Ghana) embarked on “Load Shedding” during the time of administering the questionnaire;these opinions could be negatively skewed toward making either the electricity service provider looking good or bad thereby not reflecting the true happenings on the ground. It is therefore recommended that further studies be conducted at a different time and should also include a secondary data that has been documented on the impact electricity has on industries in Ghana. This information together with the opinions of the business owners and managers could be compared so as to have a more concrete data on how electricity generation and supply have impacted on industrial performance

Secondly, even though each quality element and performance indicator was analyzed separately and then holistically, a more holistic assessment was carried out on how quality supply of electricity impacts the performance indicators. Further study therefore is recommended to look at how each of these individual quality element impact separately on these individual performance indicators

Finally, considering the fact thatother equally important factors can also affect industrial performance, further studies is therefore recommended to determine the weight quality supply of electricity has on industries performance

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APPENDIX I

Sample of the Questionnaire

This survey questions are to help the researcher assess the impact quality electricity supply has on industrial performance in the Greater Accra Region

SECTION 1 – DEMOGRAPHY

1. Gender Male Female

2. Please what is your position in your industry

Owner Manager Head of a Section/Supervisor Engineer

3. Which category of industry below do you own or work for?
1. Food and Beverage industries
2. Automobile, transport and haulage Industries
3. Building and Construction Industries
4. Electrical and Electronic industries
5. Pharmaceutical industries
6. Steel , Aluminum and other manufacturing Industries
7. Agricultural and Chemical Industries
8. Rubber, Plastic, Garment, Textile and leather Industries
9. Printing, Stationary and Packaging Industries
10. Energy sector and Others

4. How long have you worked in this Industry

Less than 2 years 2 5 years 5 – 10 years more than 10 years

SECTION 2 – QUALITY OF ELECTRICITY SUPPLY

Please indicate the extent to which you agree with the following under listed statements:

Abbildung in dieser Leseprobe nicht enthalten

THANK YOU

APPENDIX II

Samples of Completed Questionnaire

Abbildung in dieser Leseprobe nicht enthalten

Excerpt out of 147 pages

Details

Title
Assessing the Impact of Quality Electricity Supply on Industrial Performance. A Case Study of Industries in the Greater Accra Region of Ghana
College
-  (GTUC / Coventry University)
Course
MSc Engineering Project Mangement
Grade
A
Author
Year
2014
Pages
147
Catalog Number
V280584
ISBN (eBook)
9783656739258
ISBN (Book)
9783656739234
File size
6770 KB
Language
English
Keywords
assessing, impact, quality, electricity, supply, industrial, performance, case, study, industries, greater, accra, region, ghana
Quote paper
Dennis Anyomi (Author), 2014, Assessing the Impact of Quality Electricity Supply on Industrial Performance. A Case Study of Industries in the Greater Accra Region of Ghana, Munich, GRIN Verlag, https://www.grin.com/document/280584

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