• Lean Benefits Realized in Generation
    • Improved Heat Rate
    • Improved Equipment Availability Factor
    • Improved Dispatch Response
    • Improved Overhaul Budget & Schedule Performance
    • Reduced Forced Outage Frequency & Duration
    • Reduced Contractor Spend
    • Reduced Backlog
    • Reduced Chemical Spend
    • Higher Preventative Maintenance Completions
Power Gen Gets Lean - AEPs Fossil Fuel Electric Lean Process Delivers Millions

The Financial Benefit of Creating a Culture of Continuous Improvement

AEP Continuous Improvement efforts yield hard savings and support earnings growth

American Electric Power began a Lean Journey in its fossil fuel fleet during 2012, and BESCORP began to assist AEP with its Lean implementation efforts at the John E Amos coal plant in March 2013. Since that time we have continued to work with 14 additional plants in both regulated and unregulated markets across seven different states.  AEPs implementation of continuous improvement practices is helping the company drive out waste in Operations, Maintenance, and Fuel Handling value streams. In every plant where AEP has applied these practices they are becoming safer, more efficient, and more cost competitive generators of electricity. They are now proudly sharing some of their success stories on the AEP webpage:


During a 2013 earnings call with shareholders AEP Chairman, Nick Akins stated that AEP is achieving between $5 million and $10 million savings per plant as a result of its Lean activities. In subsequent earnings call Mr. Akins credited employee ingenuity to achieve cost savings through continuous improvement efforts with enabling AEP to fulfill its commitment to shareholders to deliver 5-6% earnings growth despite a lack of headwinds in load growth.