2019 industry reference document (32) of (32) project
TRANSCRIPT
2020 NEI Report of Project Management Lessons Learned and Best Practices Construction of New Nuclear Power (NNP) Plants
32 Public Domain Reference Documents
High Bridge Associates, Inc. www.hba‐inc.com
2019 Industry Reference Document (32) of (32)
Project Management Lessons Learned & Keys to Success 13 pages
Kenneth Aupperle, Senior Vice President High Bridge Associates, Inc.
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“Connecting Vision and Plans with Performance and Execution”
Kuwait City, Kuwait: April 2011International Atomic Energy Agency Workshop
Nuclear Power Project Management
Washington, DC: November 2009American Nuclear Society, Winter MeetingNuclear Project Management Insights and Challenges
Cairo, Egypt: November 2012International Atomic Energy Agency WorkshopProject Management for Nuclear Construction
Stockholm, Sweden: November 2014Nordic Nuclear SymposiumIntegration and Project Management Lessons learned
Washington, DC: November 2007American Nuclear Society, Winter Meeting
Industry Lessons Learned & Key Success Factors
Cadarache, France: July 2013ITER International Fusion Project
Nuclear Industry Project Management Lessons Learned
Confidential Client: October 2016Planning and Integration Workshop
Nuclear Industry Project Management Lessons Learned
NC State University: November 2017Graduate Construction Management ProgramProject Management Lessons Learned Workshop
Nuclear Energy Institute (NEI): December 2019NEI Industry Report
Project Management Lessons Learned & Best Practices
High Bridge Update for Industry: December 2019Various Industry StakeholdersProject Management Lessons Learned & Insights
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11. Utility owner‐led & aggressive risk identification, integration, & opportunity management
12. Pre‐assembly/modularization techniques coupled with over the top construction
13. Simplified and timely project performance reporting
14. Rigorous configuration management & change control
15. Management of internal & external stakeholders
5. Best athelete for the job approach (individual/corporate) & clear definition of project roles
6. Collaborative "win‐win" contracting strategy instead of confrontational "win‐lose" approach
7. Teamwork, open communications, no surprises, & "sink or swim together" culture
8. Completed detailed design incorporating vendor submittal details before construction start
9. Ingrained nuclear construction, quality, & safety culture & training
10. Understanding first of a kind (FOAK) & design maturity status realities
1. Utility owner‐led integrated project team organization approach
2. Passionate leadership & extreme ownership from the top
3. Intense up‐front planning & integrated project schedule controlled by owner
4. Realistic & integrated performance baselines for scope, cost, schedule, & risk
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High Bridge is a planning & project management company that:◦ Serves utility owners, EPC firms, & original equipment manufacturers
◦ Has extensive experience supporting NNP & other large FOAK projects
◦ Has studied project management lessons learned & best practices for over 25 years
High Bridge Senior Vice President Ken Aupperle:◦ Leads our planning & lessons learned consulting practice since 1994
◦ Has compiled >150 industry publications regarding lessons & keys to success
◦ Has presented lessons learned papers at >20 domestic & international forums
High Bridge assembled a team in 2019 to update its lessons learned & best practices based on 32 publications spanning > 40 years & case studies for 10 successful projects:◦ It prepared a lessons learned & best practices report for the NEI in 4Q19
◦ It updated its data base & prepared this overview of project management lessons learned & insights for NNP & Mega‐Project Construction
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Those who cannot remember the past are
condemned to repeat it….George Santayana
It’s a form of insanity to repeat the same steps over & over and to expect a different result….
Albert Einstein
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Project management has received much attention recently ◦ Why are projects plagued with schedule delays, cost overruns, & quality issues
◦ How does this occur with abundant industry guidance & digital tools available
Key insights & conclusions◦ A nuclear project involves many technical, economic, & cultural challenges
◦ Project organization & first of a kind issues are more challenging than technology & science issues
◦ Project management involves art & leadership along with science & systems
Critical decision‐making information is often lost due to overwhelming data
◦ Risk & opportunity management instead of risk shedding
◦ Various parameters can create “blind spots” in the planning & knowledge management process that result in obstacles for applying lessons learned & best practices for the organization & execution of FOAK NNP construction projects
Owner‐led integrated project teams (IPT), best athlete for the job, open communications, teamwork, simplified management systems, ingrained nuclear culture, training, & passionate leadership are essential◦ The US nuclear industry has many past projects, accomplishments, & public domain information
to learn from to plan a project foundation for success
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# 223 48 175 46 129 33 98% 100% 22% 78% 21% 58% 15% 44%
US Commercial Nuclear Industry Accomplishments ‐ 1960's to 1990's
Past Lessons & Practices Must Be Applied for Future Success
Projects StartedOver 25Years
Projects CancelledPrior To
Construction
PlantsThat
StartedConstruction
PlantsCancelled During
Construction
Plants Completed & Operation
Started
Plants Still
Operating
Plants De‐Commissioned
or Shut Down
Num
ber o
f Nuclear Pow
er Units
200
150
100
50
1980's....Over 70 Nuclear Plants in Various Stages of Construction
Onging at the Same TimeThroughout the United States!
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Since the 1970's,Our Industry Data & Experience Spans >150 Industry White Papers & >100 Nuclear Projects
Based on 32 industry documents/reports &10 successful project Case Studies
we have distilled 1,000's of issues & parameters
into what we conclude are the “Top 15 Elements” for building a foundation for success based on
89 lessons learned & 59 best practiceswe identified.
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Year
Report
Published
Report
Reference
Number
Industry
Publishing
Organization
Industry Report/Paper/Presentation Description Pages
1978 1 Owners, EPC Firms, & AFL‐CIO Nuclear Power Construction Stabilization Agreement (NPCSA) 11
1983 2 FP&L/PMI Conference St. Lucie #2 ‐ A Nuclear Plant Built on Schedule, W. Derrickson 54
1984 3 Ebasco/ASCE Conference St. Lucie 2 ‐ Doing It Right In Nuclear Construction, L. Tsakiris 18
1984 4 NRC NUREG 1055 Improving Design and Construction of Nuclear Power Plants 174
1987 5 IAEA ‐ Vienna Achievements in Construction and Best Practices 4961988 6 Rand Corporation Understanding the Outcomes of Mega Projects 104
1990 7 DOE Duke Improving Nuclear Construction Performance 308
1990 8 DOE Duke Enhancing Nuclear Construction through Design 378
1999 9 National Academy of Science Report to Congress, Improving Project Management in the DOE 149
2007 10 ANS ‐ High Bridge and Burns & Roe Nuclear Industry Construction Lessons Learned 5
2007 11 Nuclear News Ft. Calhoun's Big Steam Generator Refurbishment Outage 5
2009 12 URENCO LES Lessons Learned ‐ Construction of the National Enrichment Facility in NM 16
2009 13 TetraTech, Inc. New Nuclear Plants Need To Adopt the Outage Management Mentality 8
2010 14 Nuclear Energy Institute (NEI) Lessons Learned from Nuclear Construction 24
2010 15 UK Royal Academy of Engineering Nuclear Lessons Learned on Various Projects 80
2010 16 STUK Finland Regulator Experiences from construction of Olkiluoto 3 plant in Finland 36
1 to 16 Sub Total Total 1,866
Learning Legacies & Insights Spanning 40 Years & 32 Reference Documents
Basis for Evaluation of Key Issues for Success
Go to High Bridge Website at hba‐inc.com to download copies of these documents
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Year
Report
Published
Report
Reference
Number
Industry
Publishing
Organization
Industry Report/Paper/Presentation Description Pages
2010 17 High Bridge Associates Compilation of Partnering and Integrated Project Team White Papers 136
2012 18 UK Royal Academy of Engineering Nuclear Construction Lessons Learned 23
2012 19 Price Waterhouse Cooper Third Global Survey of Project Management Trends and Practices 40
2013 20 Olympics Delivery Authority London 2012 Olympics, Project Controls Lessons Learned 27
2013 21 High Bridge Associates Alternating 4/10's ‐ Accelerated Schedules & Reduced Costs 14
2016 22 Electricity Journal SMR Deployment and Learning from the Past 8
2017 23 World Nuclear Association Lesson ‐ learning in Nuclear Construction Projects 24
2017 24 High Bridge Associates Construction Productivity Impacts due to Extended Weeks & Shift Work 85
2017 25 Jocko Willink & Leif Babin Extreme Ownership ‐ How US Navy Seals Lead and Win (Summary) 25
2018 26 Energy Technologies Institute ‐ UK Nuclear Cost Drivers Summary Report 55
2018 27 Nuclear Energy Institute (NEI) Assessment of Part 52 Licensing Impacts on Construction 9
2018 28 Massachusetts Institute of Technology The Future of Nuclear Energy in a Carbon Constrained World 275
2018 29 NIC/Texas A&M ‐ High Bridge Assoc. Integrated Project Teams and Leadership for Advanced Reactor Projects 11
2019 30 EPRI ‐ Dominion Economic Roadmap for Nuclear Power Plant Construction 242
2019 31 David B. Amerine Push It to Move It ‐ Lessons Learned in Nuclear Project Management 250
2019 32 High Bridge Associates Nuclear Project Management. Lessons Learned and Keys to Success 13
Documents 17 to 32 Sub Total 1,237
Documents 1 t0 16 Sub Total 1,866
Documents 1 to 32 Total 3,103
Learning Legacies & Insights Spanning 40 Years & 32 Reference Documents
Basis for Evaluation of Key Issues for Success
Go to High Bridge Website at hba‐inc.com to download copies of these documents
River Bend Nuclear Power Station Unit 1 St. Lucie Nuclear Power Station Unit 2 Palo Verde Nuclear Power Station Units 1, 2, and 3 Watts Bar Nuclear Power Station Unit 2 Rocky Flats Decontamination & Decommissioning Project Selected Steam Generator Replacement & Refurbishment Projects Spallation Neutron Source (SNS) Accelerator Project 2012 London Olympics Site and Facilities Infrastructure WPPSS 2 Washington Public Power Supply System Nuclear Unit 2 Barakah Nuclear Power Station Units 1 to 4 (United Arab Emirates)
Go to High Bridge Website at hba‐inc.com to download copies of these documents
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A. Project Organization, Owner Led Integrated Team, and Best Athlete Approach◦ Extreme Ownership and Leadership from the Top◦ Organizational Challenges are Tougher than Technical Issues◦ Collaborative Win/Win instead of Confrontational Win/Lose Contracting Strategies◦ Aggressive Risk and Opportunity Management instead of Risk Shedding Approach◦ Ingrained Large Nuclear Construction, Quality, and Safety Culture and Mentality
B. First of a Kind (FOAK) Project Parameters and Challenges◦ Recognizing what FOAK Is◦ Experience of Stakeholders◦ Design Maturity and Details Required for Construction◦ Realistic Cost and Schedule Baselines
C. Project Management Involves Art and Science◦ Integrated Project Schedule, Owner Control, and Simplified Reporting System◦ Rigorous Configuration Management and Design Change Control◦ Labor Efficiency, Extended Workweeks, Shiftwork, and Fatigue◦ Modularization Potential Benefits and Drawbacks◦ Managing Project Internal and External Stakeholders
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Lessons
Learned29
Lessons
Learned25
Lessons
Learned35
Lessons
Learned89
Best
Practices20
Best
Practices18
Best
Practices21
Best
Practices59
Total 49 Total 43 Total 56 Total 148
A.
Project Organization,
Owner Led Integrated
Team, and Best
Athlete Approach
B.
First of a Kind (FOAK)
Project Parameters
and Challenges
C.
Project Management
Involves Art
and Science
Total
Go to High Bridge Website at hba‐inc.com to download a compiled list of theseLessons Learned & Best Practices
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11. Utility owner‐led & aggressive risk identification, integration, & opportunity management
12. Pre‐assembly/modularization techniques coupled with over the top construction
13. Simplified and timely project performance reporting
14. Rigorous configuration management & change control
15. Management of internal & external stakeholders
5. Best athelete for the job approach (individual/corporate) & clear definition of project roles
6. Collaborative "win‐win" contracting strategy instead of confrontational "win‐lose" approach
7. Teamwork, open communications, no surprises, & "sink or swim together" culture
8. Completed detailed design incorporating vendor submittal details before construction start
9. Ingrained nuclear construction, quality, & safety culture & training
10. Understanding first of a kind (FOAK) & design maturity status realities
1. Utility owner‐led integrated project team organization approach
2. Passionate leadership & extreme ownership from the top
3. Intense up‐front planning & integrated project schedule controlled by owner
4. Realistic & integrated performance baselines for scope, cost, schedule, & risk
We reviewed public domain information & past successful & troubled projects to:
o Determine what strategic project management practices made a difference for
successful planning, organizing & execution of the projects.
We concluded that industry stakeholder recognition & understanding of lessons learned & best practices can be inhibited & adversely impacted due to various & not so obvious reasons
These included the following parameters that can create “Blind Spots” in the planning & knowledge management process:◦ Inadequate experience with nuclear industry large FOAK projects◦ Conservative owner corporate cultures vs. aggressive project mindsets◦ Human emotions, personalities, & leadership◦ Strategic long‐term vs. tactical short‐term considerations
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Go to High Bridge Website at hba‐inc.com to download a narrative discussion of these planning Blind Spots
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These blind spots & obstacles have resulted in utility owners & contractors adopting practices that:◦ Inhibited teamwork, dissuaded open communications, & clouded
transparency, resulting in negative cost/schedule performance Dealing with these blind spots & cultures requires a good leader &
not just a good manager:◦ Managing how things are done in the short term (doing things right) is
generally easier than facilitating strategic corporate policies for what should be done (doing the right things) in the long term
◦ A grasp of the big picture is needed to see through blind spots & facilitate actions for what is needed for project success in a dynamic environment amid constantly changing priorities & often self‐serving stakeholder cultures
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Managing Mega‐Construction ProjectsRecognize Art & Science ‐ Focus on the Basics
,TOOLSSoftware,
Technology
,PROCESSESMethodology,
& Organization,PEOPLERoles & Responsibilities,
..... FrameworkSystematic &
Structured
..... FoundationLeadership,
Planning, &Integration
..... FacilitatorsInformation &
Routines
Priorities & Key Elements
Science
Art
A great organization will overcome imperfect management processes & tools to succeed!!!
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The “Triangle” of focus and priorities is “Upside Down”
Tools & technology have gotten too sophisticated, powerful, flexible, & complex◦ Nuclear outage mentality tends to drive to more detail
◦ Capability & flexibility of software gets abused
◦ Data overwhelms ability to focus on critical information
◦ Digital capabilities have created a sterile/impersonal process
◦ Increased data/automation has decreased stakeholder accountability
◦ Management system reporting/maintenance is enormous
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Beware of Bits & Bytes….B³
1960 1970 1980 1990 2000 2010
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CS² ‐ Cost Schedule
Control System
EVMS ‐ Earned Value
Management System
Kilobytes Megabytes Gigabytes Terabytes ???
More Details = More Maintenance & Less AccountabilityInformation Overload = Confusion & Excuses
Beware of Bits and Bytes = B3
PMS ‐ Performance
Measurement System
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W. Edward Demming:◦ Just because you can measure everything doesn’t mean you should
Albert Einstein:◦ Everything should be made as simple as possible
Benjamin Franklin:◦ Time Is Money
Leonardo Di Vinci:◦ Simplicity is the ultimate sophistication
Kelly Johnson: ◦ Lockheed Lead Design Engineer for U‐2, SR‐71 Blackbird, & other airplanes
◦ Design jet aircraft simply so they can be maintained by an average mechanic
Design with simplicity and avoid complexity:◦ Digital computer era allows complexity to flourish….B3
◦ Provide required details but be cautious & maintain balance with simplicity
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Consider more target schedule incentive milestones that offer win‐win solutions & outcomes◦ Firm fixed price contracts often create conditions adverse to goals
◦ Establish collaborative “win‐win” contracting strategies vs. confrontational win‐lose strategies
◦ Rally limited resources around near term & meaningful goals
◦ Spend money on incentives that foster team spirit/cooperation
Project “teamwork” is inversely proportional to the thickness of contract terms & conditions◦ Communications, coordination, cooperation, & priorities
◦ Open exchange/no surprises vs. guarded/closed information
◦ Management & production focus vs. contracts & legal jousting
◦ Sink or swim together vs. blaming the other party
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Design Maturity & Fixed Price ContractingUnderstand Construction Contractor Interfaces
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4.8 billion £ ‐ 20 Year Project
Site 260 hectares
Main building 396m x 176 m x 40 m
Largest free‐standing structure in UK
1993 Formal planning application
2001 Formal government approval
2002 Start civil construction
2008 Construction complete
Willie Walsh, British Airways President and CEO
Integrated Project Team Approach – Contractors focus on what they do well, work together to solve technical problems, & no surprises
Fair Profits ‐ Don’t spend money/time/resources on legal jousting
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Detailed “done‐done” design before starting construction Understand regulatory/quality/safety needs to ingrain nuclear mentality Nuclear regulator will hold owner/licensee accountable….not contractors
◦ Most risks cannot be shed….they must be managed Develop hybrid contracting strategies that provide win‐win solutions Implement rigorous configuration management & design change control Planning, transparent information, teamwork, & no surprises
◦ Keep It Simple & Less Is More….Beware of Bits & Bites◦ Project teamwork is inversely proportional to thickness of contracts
Organization/people challenges are tougher than technical/science issues◦ NRC NUREG 1055 (1986) & NAS DOE Report to Congress (1999)◦ Adopt owner‐led Integrated Project Team (IPT) organization approach
A Multi‐Year/$Billion Nuclear Project is like a military campaign◦ An experienced, motivating & passionate Project Leader is critical◦ Extreme Ownership & Leadership from the top is essential!!!
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48 Years of Experience in Commercial Nuclear/Fossil Power & Government DOE Sectors Spanning Science, Defense, & EM Programs (Inactive Q Clearance)◦ 1994 to present with High Bridge/Team Associates – Project Management Consulting firm ◦ 1971 to 1994 with Stone & Webster ‐ EPC firm ◦ Various assignments spanning strategic planning, project management, earned value,
construction, risk management, cost estimating, scheduling, & process improvement◦ Numerous leadership roles on major nuclear power & DOE defense/science/HLW projects
Senior Vice President with High Bridge/Team Associates◦ Leading nuclear supplier of planning & project management consulting & staffing services◦ Supporting utility owners, DOE/O&M’s, engineer/constructors, & equipment manufacturers
High Bridge Practice Lead (1994 to Present)◦ Independent cost, schedule, & risk assessments for >100 projects valued at >$300 billion◦ Nuclear industry project management lessons learned & best practices, cost/schedule data base, & analysis of industry risk issues
Project Manager & lead author for preparation of 2019 NEI Report◦ Supporting utility owners “New Nuclear” planning, organizing, & project deployment programs spanning
various OEM/EPC New Nuclear consortiums◦ Consults with the International Atomic Energy Agency (IAEA) as a Subject Matter Expert (SME) for Planning & Project Management
Stone & Webster Engineering Corporation (1971‐1995) Commercial nuclear power, energy, infrastructure, and large DOE science projects Vice President, Regional Manager, Director of Construction, Project Manager, Estimating Manager, Scheduling Manager Project Controls Manager, Project Controls Engineer, Chief Scheduler, Planning & Scheduling Engineer
Education Graduate Level Executive Program in Business Administration ‐ Northeastern University, 1987 BS in Construction Management ‐ Syracuse University, Summa cum Laude, 1971 AS in Construction Management ‐ Hudson Valley Community College, Magna cum Laude, 1969
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