IAEA Regional Workshop - Goodnight Consulting …...Goodnight Consulting, Inc. 8418 Hunt Valley Drive, Suite 200 Vienna, Virginia 22182 Voice: (703) 448-6820 Fax: (703) 448-8443 1

GC WWW.GoodnightConsulting.com

Goodnight Consulting, Inc.8418 Hunt Valley Drive, Suite 200 Vienna, Virginia 22182Voice: (703) 448-6820 Fax: (703) 448-8443 Voice: (703) 448-6820 Fax: (703) 448-8443 1

Operating Organization StructuresFor Nuclear Power

International Atomic Energy Agency

IAEA Regional Workshop IAEA Regional Workshop –– Strategic Planning of Strategic Planning of Sustainable Human ResourcesSustainable Human Resources

Santa Domingo, Dominican RepublicSanta Domingo, Dominican Republic2121––25 Sept 200925 Sept 2009

2September 2009International Atomic Energy Agency

Presentation Outline

• Perspectives On Organizational Structures

• Organizational Structures – Stand Alone

• Organizational Structures - Fleets

• Conclusions


Many Different Organizational Structures Are Applied By Nuclear Power Operating Entities

• After working for more than 30 USA and international nuclear power operating companies, we have seen many different organizational structures

• Although they are different, many appear to work well, as shown by:– High levels of plant performance– Relatively low cost of operations– Good reviews by national nuclear regulatory agencies– Good reviews by international organizations (WANO)

• This presentation provides examples and discussion materials for nuclear operating organizations

– USA (Stand-alone and Fleet models)– Europe (Fleet Models)


Goodnight Consulting, Inc. Maintains Organizational Databases Related To Nuclear Plant Operations

• In the USA, there are 26 commercial nuclear power generation companies, with 67 sites and a total of 104 operating reactors

• Our nuclear power organizational database includes information from 17 of these 26 companies (65%)

• We also have organizational information from 4 international nuclear power companies, three of which are from Europe

• Individual plant/company organizational information is confidential, but the information included in this presentation is aggregated sufficiently to protect the identity of each of the nuclear plants’ operators


Layers Of Management Can Affect Internal Communications And Impact Staffing Levels

• Assuming “layers or management” are defined as the number of people above the

– Several organizations typically have fewer layers of management:

Engineering:• 1st line Supervisors/Principal Engineers• Discipline Engineering Manager (Design, Sys)• Director of Engineering• Site Vice President/Chief Nuclear Officer

Quality/Oversight• Quality Assurance Supervisors• Quality Assurance Manager• Site Vice President/Chief Nuclear Officer

• Assuming “layers or management” are defined as the number of people above the individual contributor up to, and including, the senior nuclear officer:

– Several organizations typically have 5 layers of management:

Maintenance:• 1st line Supervisors• Discipline (Elect, Mech, I&C) Superintendent• Maintenance Manager• Plant Manager• Site Vice President/Chief Nuclear Officer

Operations• Shift Supervisor• Shift Manager• Operations Manager• Plant Manager• Site Vice President/Chief Nuclear Officer


Very Large Or Very Small Spans of Control Can Create Problems (Example From A USA Plant)

3- Performance Excellence

X%X%X%X%Benchmark Percent

7%23%43%27%Client Percent

8264931Total

22- Nuclear Licensing

22- Nuclear QA

56- Training

1Org Effectiveness - Director

1- Controller

21- Supply Chain

11- Business Apps

12- Strategic Planning

1Nuclear Support

>158-154-7<4

NUMBER OF MGRs/SUPVs WITH SPANS OF CONTROL……

PLANT ORGANIZATIONS (Continued)

41- Nuclear System Engr

21- Performance Engr

21- Nuclear Fuels

12- Engr FIRST Team

211- Plant Support Engr

1Nuclear Engineering -Director

7185- Maintenance

286- Rad Protection/Chem

5121- Operations

122- Outage Mgt/WC

1Nuclear Production -Director

1Vice President

>158-154-7<4

NUMBER OF MGRs/SUPVs WITH SPANS OF CONTROL……

PLANT ORGANIZATIONS


Functional Alignment Is Also An Important Aspect Of Nuclear Organizational Design

• Direct reports to the Site VP are fairly standardized, however several organizational groupings at the next level vary by company

– RP and Chemistry are separate at most plants, but some do have them combined

– Maintenance Planning is found either in Work Control, or Maintenance; both approaches appear effective

– Engineering First Team may be appropriate given plant age and equipment reliability issues

– Document Control may be found in either an Engineering or a Site Support organization

– Engineering Programs typically found in a Technical Engineering Group– Reactor Engineering typically found in either Systems Engineering or

Operations (rarely)– Training typically found as a direct report to the Plant Manager or the

Director of Plant Support






• Conclusions


A Typical USA Nuclear Organizational Design Includes The Major Functional Organizations Reporting To A Senior Officer

Site VP

Plant Operations Engineering Support Services Quality/Oversight Strategic

Projects

Budget/Finance

• In Some European nuclear organizations, the financial leader is a peer to the technical leader, working to ensure that there is a increased focus on costs

• Many European nuclear organizations also outsource many functions directly to the vendors that design and build components and systems

• On the next page, a more detailed version of this USA model is provided…


This Organizational Model Incorporates The Most CommonUSA Approaches, And Can Be Applied At 1- or 2-Unit Sites

Site VP

Plant Operations Engineering Support Services Quality/Oversight Strategic Projects

Operations

Maintenance

Chemistry

Rad. Protection

Work Control

Design Engineering

Systems Engineering

Technical Engineering

Licensing

Doc Control/Records

Quality Assurance

Quality Control/NDE

Nuclear Safety Review

S/G Replacement

Turbine Rotor

Extended PowerUprate

SAPImplementation

Etc.

Human Resources

Information Systems

Supply Chain

Security

EmergencyPlanning

Project Management

Rx Engr &Nuc Fuels

Admin/Clerks

Training

Budget/Finance






• Conclusions


We Have Analyzed Many USA And Some European Nuclear Fleet Operating Characteristics

• Goodnight Consulting, Inc. has collected and analyzed nuclear fleet operating characteristics

– Organizational approaches– Areas of standardization– “Key Enablers” for success

• Information was collected from 7 U.S. and 1 European nuclear fleets, in addition to the client– E-On (Germany) - Dominion– Duke - FENOC– Exelon - Progress Energy– TVA - Nuclear Management Company


There Is Consistency In 4 Service Areas Provided By Parent Companies To Nuclear Fleets

Legend: Activity partially performed at company corporate above nuclear, and partially by nuclear corporateActivity performed by company corporate above nuclear, and nuclear personnel supporting the activity report to company corporate

Non-Nuclear Corporate ServicesFleet A Fleet B Fleet C Fleet D Fleet E Fleet F Fleet G Fleet I

Budget/Finance/Payroll

Communications/Pub Affairs

Environmental

Human Resources

Industrial Safety

Information Technology

Legal

Records Management

Supply Chain

e e e ee


There Is Variety In Centralized Nuclear Corporate Functions (1 of 3 pages)

Legend: Activity partially centralized within nuclear corporate level, partially performed by staff on-site at plant

Activity performed only at corporate nuclear

Centralized Nuclear Corporate ServicesFleet A Fleet B Fleet C Fleet D Fleet E Fleet F Fleet G Fleet I

Budget/Finance/Payroll

Chemistry

Centralized Maintenance

Communications/Pub Affairs

Employee Concerns

Emergency Preparedness

Engineering - Mods

Engineering - Programs e e


There Is Variety In Centralized Nuclear Corporate Functions (2 of 3 Pages)

Legend: Activity partially centralized within nuclear corporate level, partially performed by staff on-site at plantActivity performed only at corporate nuclear


Environmental

Human Resources

Information Technology

Legal

Licensing/Reg Affairs

Nuclear Fuels

Outage Planning/Scheduling

Process Improvement In Progress

p


There Is Variety In Centralized Nuclear Corporate Functions (3 of 3 Pages)

Legend: Activity partially centralized within nuclear corporate level, partially performed by staff on-site at plant

Activity performed only at corporate nuclear


Projects/Project Management In Progress

Quality Assurance/QC

Radiation Protection Program

Safety/Health

Security

Supply Chain

Training In Progress


Nuclear Fleets Have Centralized Many Activities And Realized Significant HR Efficiencies

• 19 functional areas were consistently found at the corporate nuclear level and are key to realizing economies of scale that produce labor savings

– Budget/Finance - Licensing

– Chemistry - Nuclear Fuels

– Communications/Pub Affairs - Outage Planning/Scheduling

– Employee Concerns - Projects

– Emergency Preparedness - Quality Assurance

– Engineering – Modifications - Radiation Protection (Program & Dosimetry)

– Engineering – Programs - Safety/Health

– Human Resources - Security

– Information Technology - Supply Chain

- Training


There Is Variety In Where Nuclear Fleets Have Applied Standardization

Legend: Activity partially standardized (either intentionally leaving flexibility to each plant site, or due to the standardization process currently incomplete

Activity is completely standardized

Nuclear Fleet Standardization AreasFleet A Fleet B Fleet C Fleet D Fleet E Fleet F Fleet G Fleet I

Corrective Action

Document Control

Information TechnologyEngineering Design Change Process Plant Organizations/ Reporting Chains

Procedures In Progress

Quality Assurance

Safety Management

Security

Training

Work Control In Progress


Areas Of Nuclear FleetStandardization Summary

• 10 areas of standardization are consistently found at other nuclear fleets and were identified as key to supporting a fleet operations model

– Corrective Action - Quality Assurance

– Information Technology - Safety Management

– Engineering Design Change Process - Security

– Procedures (Some) - Training

– Plant Organizations/Structures - Work Control


Nuclear Fleets Identified 7 Consistent “Key Enablers”But Some Are Driven By Each Company’s Culture

Legend: Key enabler area is an important element of the fleet, but not fully implemented

Key enabler is fully implemented and seen as a critical element of success

Key Enablers Identified For Nuclear Fleet OperationsFleet A Fleet B Fleet C Fleet D Fleet E Fleet F Fleet G Fleet I

Collective Motivation Program

Company Size Minimum

IT - Single Point/Enterprise

Manager RotationsFrequent & Clear CommunicationsPeer Teams/Internal Benchmarking

Process Standardization In Progress

One Culture

Organizational ConsistencySeparation of O&M vs Common Services

Strategic/Life Cycle Planning


“Key Enablers” of Success Summary

• 7 “Key Enablers” were consistently identified by nuclear fleet management

– Standardized Information Technology (IT) Approach/Single Point Implementation

– Frequent & Clear Communications

– Peer Teams/Internal Benchmarking

– Process Standardization

– One Culture

– Organizational Consistency

– Strategic/Life Cycle Planning






• Conclusions


We Developed Several Conclusions About Organizational Issues After Analyzing Many Different Companies

• While many different organizational approaches may be successful, several key principals should be applied:

– Minor differences are needed for a 1-unit compared to a 2-unit site• Larger operations shift contingents, but same structures, at multi-unit sites• Larger maintenance contingents, but same structures, at multi-unit sites• Application of “shared services” approach for site support functions

– Fleets of plants offer efficiencies• Centralization of non-site functions• Economies of scale in the application of human resources

– Keep the organization shape in balance• Neither too many, nor too few, layers of management (about 5-6)• Neither too many, nor too few spans of control (about 7-10)• Align related functions aligned under the same leadership

Documents

IAEA Regional Workshop - Goodnight Consulting …...Goodnight Consulting, Inc. 8418 Hunt Valley Drive, Suite 200 Vienna, Virginia 22182 Voice: (703) 448-6820 Fax: (703) 448-8443 1