Sellafield, Calder and LLWR Near Term Work Plans

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Sellafield, Calder and LLWRNear Term Work Plans
Steve Livingstone, Head of Programme
Controls, Management Services, Sellafield
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Remember - Plan the Work
Set strategic objectives and document in
Lifecycle Baseline
Scope
Communicate the Plan TO ALL.
Schedule
Cost
Develop tactical plans and document in Near Term
Work Plan (3-year window) and supporting
schedules or cost tools
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And then - Work The Plan
Annual Near Term Work Plan / Lifecycle Baseline

• Describes the PLAN
• Foundation for managing the work by the
  contractor.
• Used for performance monitoring, reporting, and
  fee plan determination / payment.
• The official scorecard for the site contractor!

Program Reviews / Executive Reviews
FTE Report
Year-end Review
Schedule
ProgressReport
Mid-year Review
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Working to the NDA contract

• A massive change to the way we work
• Our Near Term Work Plans for Sellafield, Calder,
  Capenhurst and LLWR at Drigg represent everything
  we have to do over the next three years
• The focus is on Commercial Operations and
  reducing the legacy Liabilities
• We must deliver best value for the work we do
• We must demonstrate Continuous Improvement
• Safety is an absolute only safe contractors are
  successful

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Working to Near Term Work Plans

• Will continue to have impacts for all of us
• The Nuclear Decommissioning Authority
• Employees
• Supply chain
• Local community
• The UK taxpayer

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Investment in liability reduction and clean-up

• 973 million spend for Sellafield next year -
  more than half with the whole supply chain
• 417 million in new construction projects over
  the life of the plan to prepare for accelerated
  remediation of the Sellafield and Drigg sites
• Setting up the structures to make us a
  cost-conscious, high performing management and
  operations contractor

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Reducing waste inventory risk

• Several waste projects will commence or be
  completed in the Near Term Work Plan period.
  These include
• completion of pcm retrievals from North Group
  waste store
• pcm retrieval to modern facilities
• pcm removal from Drigg
• orphan waste disposal
• floc retrievals from ageing tanks
• All reducing the waste inventory risk
• In addition preparation for LPS retrievals will
  continue

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Improving the Sellafield Skyline
During 2005/06 we will demolish the Calder
Cooling Towers
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Improving the Sellafield skyline

• In 2006/07 we will commence demolition of the
  second pile chimney.

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Delivering for Sellafield

• Through the activities we have described
• Decontamination
• Skyline reduction
• Safer waste storage
• We are delivering real risk reduction results
  for our customers, Regulators and Stakeholders.

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Improving cost performance through partnership
We must work closely with the supply chain to
deliver real benefits to projects Through
partnerships, and contracting we will work with
the supply chain to obtain best practice
techniques and solutions but We are
required to ensure that our arrangements with the
supply chain are transparent and fair at all
times and A reminder that EU Competition rules
now apply
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Delivering for commercial customers

• Increasing reprocessing output and manufacture of
  MOX fuel
• During the next 3 years we will
• receive nearly 2,000 Te of Magnox fuel
• reprocess nearly 4,600 Te of fuel
• manufacture 145 MOX fuel assemblies
• Delivery of commercial operations contracts
  generates significant financial income for the
  NDA which is used to fund Retrieval work and
  Clean Up.

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Ramping up vitrification throughput

• Higher targets for vitrification production.
• Our highly active liquor stocks are being
  managed to support continued commercial
  operations and meet our regulatory commitments
  for inventory management.
• 2004/05 was a record year with 478 containers
  produced (40 increase)
• The stretch target for 2005/06 is 525

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Overall performance 04/05

• Performance is measured against our NTWP
  commitments
• Sell. LLWR Calder
• Schedule Performance (SPI) 0.96 0.95 0.90
• Cost Performance (CPI) 0.98 1.05 1.31
• 72 out of 89 PBIs achieved on or ahead of target
  for Sellafield

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Sellafield Site - YTD Performance (History)
SPI
Ahead of Schedule
Ahead of Schedule
1.4
Below Planned Cost
Above Planned Cost
1.3
1.2
1.1
P12
1
P11
P9
P2
0.5
0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
P10
0.9
P4
P7
P8
CPI
P5
P6
P3
0.8
0.7
P1
Behind Schedule
Behind Schedule
0.6
Above Planned Cost
Below Planned Cost
0.5
Note - Periods 2-11 values have been adjusted to
include Under/Over Recoveries Mis-bookings
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Innovation and Continuous Improvement

• NDA are demanding
• Demonstrably better performance year on year
• Clear evidence of Value for Money being obtained
• More than 50 of our budget is spent with the
  Supply Chain
• You will need to work with us to deliver NDA
  expectations and demonstrate continuous
  improvement
• Increased use of Competitive tendering can be
  expected

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• Near Term Work Plans will be published by NDA.

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Supplier Reporting

• Steve Livingstone

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Supplier Reporting

• More rigorous reporting will be required against
  Contract line Items to enable upward earned
  value reporting against the NDA Contract
• Initially a manual process will be applied from
  P1
• Moving to a web based process from P3 with a
  phased roll out
• Pilot currently being run

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Sub-Contract Management Processes
Supplier reports BCWP and ACWP against PO line
items
Baseline CCR Funding CCR P3e activities are
reflected on PO line items
Supplier request for payment against PO line
items
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Interim Supplier Reporting

• Suppliers will continue to report progress
  through SOs as per current arrangements until
  E-Commerce Transition Programme takes effect
• Planned Sub Contract Hours have been estimated
  from Sub Contract Costs in P3e (using assumptions
  on labour/non labour split and tariff)
• Actual Sub Contract Hours will be estimated in
  the same way by period using actual Sub Contract
  Cost.
• Successful Pilot completed with a range of
  suppliers

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Web Based Supplier Reporting

• At contract award there should be an agreed
  sub-contract baseline plan
• The sub-contract baseline should be built in P3e
  as a series of sub-contract activities each with
  a value of around 20,000 per month or six weeks
  in duration
• There should be a one to one relationship between
  the sub-contract activities in P3e and the PO
  line items against which we will monitor measure
  and manage the delivery by the supplier of the
  sub-contract baseline plan
• The contract management plan will be built in SAP
  C-Projects and provide alerts to COTRs,
  procurement and suppliers at contract events
• Contract documentation will be linked to
  C-Projects and held in C-folders with online
  approval of contract events

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Web Based Supplier Reporting

• Suppliers will complete an online web survey at
  period close including where appropriate the
  following measures
• Milestone performance
• Earned value against the network activities/
  Purchase Order Line Items
• Resource performance and quantity tracking
• Safety performance(MSRS only)
• KPIs
• Supply Chain arrangements and flow down of NDA
  terms
• Change Control Requests
• Risks and Issues log update
• Recovery plans
• The supplier report will be used as the basis for
  posting an accrual at period end
• Projects and contracts will be closed out in
  C-Projects against a checklist and archived

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