How Water Utilities Can Cut Losses by 190,000 Gallons Using One Simple Framework
Discover how the Theory of Constraints can transform water utility operations. Learn a proven framework to identify bottlenecks, reduce water loss, and lower distribution costs, without overwhelming your team with complex technology implementations.
What if I told you that implementing new technology into a water system can be simple? Or if not simple, at least most of the work has already been done.
This is possible by using the Theory of Constraints. This approach was first put forth by Eliyahu Goldratt in 1984 in the book The Goal. The theory states that for a system there is a defined goal and a series of constraints preventing the system from reaching that goal. This is typically equipment, people, or processes.
Applying Theory of Constraints to Water Utilities
Apply this to a utility system, there are several high-level goals and dozens of more intermediate goals. For example, if the goal is affordable drinking water, then you can look at the major areas of operating expenses such as energy, chemicals, labor, etc. and where those can be improved. Let’s do an example.
The end goal is affordable drinking water. This can be measured by cost to obtain the water, cost to treat the water, and cost to distribute the water. This example will focus on the cost to distribute the water.
Step 1: Map Your System
Quickly map out this chain, high level is best to start. Details can be added as needed. There is each component in the chain and then the connecting pieces. This is a quick example for drinking water loss:
Systems Approach to Water Loss
- Water Treatment Plant Output: 1,000,000 gallons
- Water Delivered through Distribution Lines: 810,000 gallons (-190,000 gallons lost)
- Water Billed to Customers: 750,000 gallons (-60,000 gallons lost)
Based on this quick graphic, where does it make sense to focus the efforts? It should be the Water Delivered through Distribution Lines. That is accounting for a loss of 190,000 gallons!
Step 2: Analyze Through Three Lenses
Ok now that the first step of identifying the constraint is done. What do you do next? Take a deeper dive into that one issue through the lenses of equipment, people, and processes.
This is when it can get tricky, where do you improve? What do you focus on? Talking to a utility or someone else who has a better handle on this system helps. Ultimately, it’s up to you at the utility to determine where to focus. Brainstorm ideas and decide what one or two things to implement that will move this forward.
Equipment Solution
Deploy acoustic leak sensors across critical distribution zones. This allows your team to identify leaks proactively rather than waiting months until they surface visibly or through customer complaints.
People Solution
Assign a dedicated resource from engineering or operations to research, pilot, and implement best practices for leak detection and repair protocols.
Process Solution
Establish a rapid response repair workflow. When leaks are detected, ensure a qualified contractor can address them within 72 hours, preventing minor issues from becoming major water loss events.
The Utility Advantage: Stability Enables Experimentation
Water utilities have a unique strategic advantage: operational stability. Unlike fast-moving industries, your day-to-day operations remain relatively consistent. While this can make change management challenging, it also creates an ideal environment for controlled experimentation.
Test one or two improvements at a time. Track results rigorously. Measure actual impact against projections. If an initiative succeeds, scale it. If it underperforms, adjust your approach and test the next constraint. This methodical process removes guesswork and builds institutional confidence in operational improvements.
Going Deeper
Want to get serious about this? It may be a good idea to get outside the water industry for a bit, even if it is just a book. This approach is explained very well by Goldratt in his book. Here are links to Wikipedia and the book on amazon.
About Infrasync: Infrasync helps water utilities modernize operations through smart technology implementation and data-driven decision-making. We partner with utility leaders to identify constraints, implement solutions, and measure results, transforming complexity into clarity.
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