Case Study: New York City's Operational Excellence Program achieves $108-$130M in annual savings and operational efficiencies with Veolia North America

Pioneering Water and Wastewater Partnership with NYC

New York City's Operational Excellence Program engaged Veolia North America in a pioneering partnership (started November 2011) to improve the nation’s largest water and wastewater system, streamline workflows, boost productivity, and help the Department of Environmental Protection (DEP) meet environmental and cost goals for nine million New Yorkers. The challenge covers 14 wastewater plants, thousands of miles of water and sewer lines, and aims to realize savings and revenue enhancements equal to about 10% of DEP’s operations budget.

Veolia North America implemented its Peer Performance Solutions (PPS) model and worked with McKinsey & Company, placing Veolia maintenance, engineering and management specialists side-by-side with DEP staff to identify O&M efficiencies—targeting energy, chemical use, labor productivity, inventory and sludge processes—and to support implementation and outreach. Phase 1 confirmed DEP’s strong compliance record, uncovered more than 100 improvement opportunities in six months, and projected $108–$130 million in annual impact (roughly $65–$87M in cost improvements plus about $43M in revenue enhancements).