Nuclear PowerUpdates on Quality Management

Jim HillASQ Nuclear Power Production Committee

NEI SNPM Working GroupDirector, NMC Performance Assessment

Monticello

Point Beach

Kewaunee

PalisadesPrairie Island

Duane Arnold Energy Center

MN

IA

WIMI

Hudson HQ

Nuclear PowerProduction Committee

NPPC MissionTo initiate, develop, and communicate

improvements to the body of knowledge and tools applicable to quality management and quality engineering, and to promote the use of the knowledge and tools as applicable to nuclear power production.

Objectives• Illustrate “Big Picture” Quality Management

programs and initiatives – NRC (Nuclear Regulatory Commission)– INPO (Institute of Nuclear Power Operations)– NEI (Nuclear Energy Institute)

• Take-homes– Concepts are applicable to your business– How you can get nuclear plant performance

information– How you can get educated or educate others on

nuclear power (plant operation, spent fuel storage, fuel shipping, Yucca Mountain, etc.)

– Self-reflection on personal improvement planning

NRCRole: Maintain Regulation, issue licenses for operation

of nuclear facilities, control of materials, etc.• Performance Measures for plant operators

– Creation further development of set of measures to monitor regulatory performance

• Focused solely on safety of operations• Primarily measures outcomes, “leading” measures are

very limited (appropriate for a regulator)• Significance Determination Process

– Probabilistic Risk Assessment used to assess violations. What risk was presented by the condition?

See www.nrc.gov - very open information on these processes, and performance information on reactor operation

INPO“Sharing Information for Excellence in

Safety and Performance”• Provides compilation of best practices

(reports, workshops) – focus is on safety, not economics

• Provides performance assessment services (ad hoc, and mandatory two year cycle)

• Undergoing significant transformation in attempt to better identify leading aspects of performance

INPO’s Revised Performance Improvement System

• Corrective action• Self assessment• Benchmarking• Operating experience • Training• Management & leadership development• Human performance

INPO is significantly challenging itself in attempting to perform more meaningful assessment

NEIPurpose: To foster and encourage the continued safe

utilization and development of nuclear energy to meet the nation’s energy, environmental and economic goals

• Policy direction• Unified approach to regulatory issues, reliability and

economic efficiency• Encouragement to educational institutions to promote

education in nuclear energy disciplinesIndustry Executives have challenged NEI to improve

efficiency, coordination and shift some resources to most important issues– Development of Standard Nuclear Performance Model

(SNPM) for more effective process managementSee www.nei.org for more information

Good Job but More Work Ahead

20

30

40

50

60

70

80

90

100

90 91 92 93 94 95 96 97 98 99 00 0165

70

75

80

85

90

95

Relative Cost/Risk (CDF) Capacity Factor

Year

Relative Cost

Relative Risk

CapacityFactor

Based on UDI & NUS Data plus info. from ERIN Eng & EPRI

NEI Performance Improvement• The objective of performance improvement is to

continuously explore ways to:– Increase business efficiency– Lower operating cost– Maintain or improve safety

• This is accomplished by:– Focusing on process management– Maintaining a Standard Nuclear Performance Model– Conducting benchmarking training– Understanding Change Management– Developing and Maintaining “Communities of Practice”

in each process area

Vision:Process-Based Perspective of Site Management

Reporting Training &Development

EmployeeSelection

Core Production Processes Customers•Asset Owner•Local Community

Recognition& Rewards

PlanningObjectives & GoalsBudgeting

CommunicationPerformanceManagement

View the site as a business enterprise

Hastings Basketball Boosters ProgramKey Core and Support Processes

ProgramObjectives

& Goals

SpiralTournament

Planning

Finance &

Budgeting

Tryouts &Team Selection

Core Processes: Practice andTournament Play

CommunityOutcomes•Youth Players•Parent Support•HS ProgramSuccess

TournamentScheduling

Coaching Selection,& Development

VolunteerCoordination

Traveling and In-HouseProgram Management

and Improvement

Communication& Publicity

Value of a Process Framework– Emphasis on Process, not Departments or

specific persons• Break down silos, no personal attack

– Common “Mental Model” of the overall system, leading to:• More effective Management• More effective Assessment• Consistency

– Stable foundation to build upon and improve– Alignment; Speak the same language

– Integrate and leverage resources of NEI, INPO, EPRI and others• “Where will performance improve if I use the results

of this report?”• “Where will project proposed improve performance,

and how will it be measured?”– Strategic “Map” to engage with the industry in

key processes (learn as well as contribute)• Job responsibility to engage with Community of

Practice

Value for Nuclear Power Industry

NEI Business Approach to Process Management

• Define processes and practices• Establish business performance measures• Monitor against the performance measures• Establish an integrated approach

– For assessing performance– Work force & operational feedback

• Take corrective action & adjust the process• Communicate

– Internal department, site, company– External industry groups (Communities of Practice)

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S TA N D A R D N U C L E A R P E R FO R M A N C E M O D E L (S N P M ) - A N E X E C U T IV E V IE W

F eed back L oop

C o st

S S 002C o st/

B u d g et

Electricity Production

Operate Plant (INPO)INPO 01-002 Conduct of Operations

Work Management (INPO)(AP-928)

Materials andServices (NEI)

(AP-908)

ConfigurationControl (INPO)

(AP-929)

EquipmentReliability

(INPO) (AP-913)

ManagementProcesses and

Support Services(NEI)

LossPrevention

(NEI)

Training(INPO)(AP-921)

Nuclear Fuel(NEI)

OP001 Operate and Monitor Structues, Systems and Components (INPO)OP002 Monitor and Control Effluents (AP-902) (NEI)OP003 Monitor and Control Plant Chemistry (INPO)

WM001 Perform Planning (AP-925)WM002 Perform Scheduling (AP-925)WM003 Perform Preventive MaintenanceWM004 Perform Corrective MaintenanceWM005 Maintain Non-Plant EquipmentWM006 Perform Plant Improvement MaintenanceWM007 Monitor and Control Radiation ExposureWM008 Monitor and Control ContaminationWM009 Perform Minor Maintenance/FIN

CC001 Provide Configuration Management (INPO)CC002 Provide Design Changes (INPO)CC003 Provide Design Basis Changes (INPO)CC004 Provide Fuel Management Services (NEI)CC005 Provide a Decommissioning Plan (NEI)

ER001 Life Cycle ManagementER002 Performance MonitoringER003 Continuous Equipment Reliabillity ImprovementER004 Perform Predictive Maintenance

MS001 Provide Inventory ManagementMS002 Procure MaterialsMS003 Procure Contract ServicesMS004 Provide WarehousingMS005 Repairs, Refurbishment and ReturnsMS006 Inventory Disposal and SurplussingMS007 Provide and Transport FuelMS008 Provide Handling, Storage, and Disposal of Fuel

SS001 Provide Information Technology ServicesSS002 Provide Business ServicesSS003 Provide Records Management and Document Control Services (AP-907)SS004 Human Resources ServicesSS005 Maintain Grounds, Facilities, and VehiclesSS006 Support Community and Government ServicesSS007 Support Industry Professional and Trade Associations

LP001 Provide Security Measures (NEI)LP002 Provide Performance Monitoring and Improvement Services (AP-903) (INPO)LP003 Provide Safety Services (INPO)LP004 Maintain Licenses and Permits (NEI)LP005 Perform Emergency Planning (NEI)LP006 Provide Fire Protection (NEI)

T001 Develop Training ProgramsT002 Conduct TrainingT003 Attend Training

Process Hierarchy

8 Process Level

Activity level

Task

Level 0

Level 2

Core Processes

Enabling Processes

45 Sub-processesEUCGNumber

Level 1

Level 3Levels 2 and

3 areCompanySpecific

EUCGNumber

Legend

1. (AP-XXX) = Process Description

2. For Process Descriptions, see also NEIBenchmarking Reports filed by process(EUCG Cost Code)

SNPM provides industry a

picture of site business

enterprise

Safety of Operation

Engage with Industry learning via SNPM Community of Practices

A Community of Practice (CoP) is an industry peer group of experts in a business process or sub-process defined in NEI's Standard Nuclear Performance Model (SNPM). The group serves as the “owner” of a particular process or sub-process, managing the solution of business process issues for the industry in that area. A CoP, then, is a more formal and comprehensive group than a Special Issue Group (SIG), scores of which have formed over the years within the nuclear industry. CoPs are led by a steering team and governed by a formal charter to implement the functions below. SIGs are peer groups of experts in a technical area who meet to share knowledge and experience.

Communities of Practice• Objective

– Improve communication and awareness of potential issues/problems & facilitate exchange of information

– Assess performance & develop proposals for improvement

– Coordinate & consolidate Special Issue Groups (SIG)• Eliminate duplicative activities• Supply Chain SIGs reduced from 13 to 5

• Add business & performance element to an existing industry group/forum, where possible

• Participate in the development of industry Standards

Communities of Practice

CoP Discussions• Emergency Preparedness• Fire Protection• HP-Radiation Protection• Licensing & Permits• Work Management• Performance Monitoring

and Improvement (LP002)

Established CoPs• Configuration

Management• Materials and Services

(Supply Chain)• Information Technology• Information Management• Human Resources• Equipment Reliability

Community of Practice

E P R I

S IG

S IG

C o m m u n ic a te In fo rm a tio nId e n tify & C o o rd in a teR e s o lu tio n o f Is s u e s

C o o rd in a te Im p ro v e m e n t A c tiv it ie sU p d a te o f P ro c e s s D e s c r ip tio n s &B u s in e s s P e rfo rm a n c e in d ic a to rs

S IG

IN P O

N E I

O th e rC O P s

N S S SO G s

U tilit ie s

S u p p lie rs /V e n d o rs

NEI’s View of Organizational Effectiveness

• Located predominantly in Loss Prevention process– Performance Monitoring and Improvement

• INPO AP-903 addressed corrective action prior to INPO SA and CAP Guideline

• Individual process maps developed in conjunction with each report:– Self Assessment– Trending– Corrective Action– Human Performance

• Several companies identified benefit in integrating these areas onto one system of processes – some call it “organizational effectiveness”

• Some now integrate these activities in a single group

NMC’s Performance Monitoring and Improvement

VerifyEffectiveness

of Actions

ManagementAction

Program

Ad HocIssue Identification

Continuous PerformanceMonitoring

Processes support the Business Cycle•Corrective Action (including External Operating Experience assessment and action tracking)•Performance Indicators/Trending•Assessment (Nuclear Oversight, and structured self-evaluation)•Site Performance Status reports

Business Plan

Human Performance (Leader/Management)

Site Business Enterprise

Site Performance

Status

Strategic Improvement

Planning Cycle

IndustryEvents

Business &Regulatory

Environment

Benchmarking

NEI Proposed Performance ImprovementCommunity of Practice

EPRIHU

HPRCT

Self-AssessmentManagers

LP002 CoPUpdate of Process Descriptions &Business Performance indicators

Coordinate ActivitiesIdentify & Coordinate Issues

Communicate Information

CAPINPO

PI and L

NEIPPI

OtherCoPs

OGs

Utilities

ASQNPPC

Standard Nuclear Performance

Model Framework

Business Case“Why”

Tools & Techniques“How”

SpecificImprovements

(measured)Big Picture

•Standard Processes•Process Maps•High Level KPIs•Flexible Organization Design•Benchmarking Projects•Good Practices

•Process Improvement•Training- Lean Tools•Change Management •Human Motivation•Management Tools•Integration

•Effective Human Motivation•Cost•Quality•Performance•Consistency•Production Capacity

Business/Tactical Planning Project ManagementIntegrating Framework

1

Spectrum of PerformanceStakeholder

Value

Customer &RegulatorPerception

Managementand Employee

Skills andCulture

ProcessCycle Time

ProcessQuality

Safe, Reliable,Cost-Effective

Generation

Management Vision & Stra tegyNuclear Generation will remain a long-term

reliable provider of electr icity at acompetitive price

Process ManagementSet Performance Goals. Use measures to assess

whether per formance is mee ting goals. Useinformation to improve process.

Culture of Learning/ImprovementManagement and personnel skills and a ttitudes

suppor t conservative decision-making andperformance assessment. Culture makes data-based decisions and uses process management

for continuous improvement.

LaggingResults

LeadingIndicators

NRC - Focused on Safety of Operations

Adapted from: EED-99-01 Recommendations for the Implementation of Selected Leading Indicators of Performance at Nuclear Power Production Plants, ASQ, 1999

Traditional NPPC projects are being rapidly “taken over” –this is a good thing!

• Management is taking over responsibility for Quality functions and systems

• Beginnings of INPO and EPRI alignment around NEI SNPM– Used as planning framework for joint EPRI, INPO, and

NEI meeting

Where can ASQ help? Emphasize quality concepts in CoPs – the NPPC Mission still applies

• Quality Management Division• Statistics Division

NPPC – Where to go?

Business Systems Thinking:Next Step for Performance Assessment

Where does your organization do most of its performance evaluation?

What are capabilities of the the assessment staff to engage with management and leadership systems?

Interpersonal Skills

Technical Skills

Administrative and Conceptual Skills

(Business Systems Thinking)

Top Level Management (Leadership)

Middle Management(Managers)

First-level Management (Supervisors)

Adapted from One More Time: Preventing Managerial Failure Among Engineers and Scientists Van Nostrand Reinhold

Baldrige National Quality Program - 2003

4Measurement, Analysis,and Knowledge Management

5Human

Resource Focus

3Customer &

Market Focus

7Business Results

7Business Results

2Strategic Planning

1Leadership

6Process

Management

ORGANIZATIONAL PROFILE:

ENVIRONMENT, RELATIONSHIPS, and CHALLENGES

2. Strategic Planning

2. Strategic Planning

4. Measurement, Analysis, and Knowledge Management4. Measurement, Analysis, and Knowledge Management

3. Customer & Market Focus

3. Customer & Market Focus

1. Leadership1. Leadership

5. Human Resource

Focus

5. Human Resource

Focus

6. Process Management6. Process Management

7. Business Results

7. Business Results

• Leadership• M/V/V (aspirations)• Operating Principles• Governance• Operational Reviews• Social Responsibility

• Strategic Plans/Goals• Operational Plans/Goals• Financial Goals• Technology Needs• Initiatives/Supporting Actions• Differentiation/Competitive

Advantages

• Work Structures• Performance Management System• Training• EE Development• EE Environment & Services• EE Satisfaction

• Market Knowledge• Customer Requirements &

Segmentation• Relationship Management• Customer Support

• Value Creation Processes• Support Processes

• Customer-Focused• Product and Service• Financial and Market• Human Resource• Organizational

Effectiveness• Governance and Social

Responsibility

1. Malcolm Baldrige2. ISO 90003. 6 Sigma4. CMM 5. Lean Mfr6. Bal Score Card7. Bus Proc Re-eng

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Bringing It All Together

• Performance Measurement• Performance Analysis

• Data and Information Availability• Organizational Knowledge

What is your personal plan to increase your net worth to yourself and your organization?

• Business Systems Education • Quality Award Evaluator (www.nist.gov)

– State Award evaluator– Baldrige evaluator

• American Society of Quality – Certified Quality Manager, others– Other Divisions

• Management• Statistics

Personal Improvement