Life Cycle Planning For Nuclear Program Staffing · Life Cycle Planning For Nuclear Program Staffing ... Contractor/Vendor employees/Full-Time ... • In the USA, ...

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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

Life Cycle PlanningFor Nuclear Program Staffing

A Presentation To

May 30-31, 2011

Charles T. (Chuck) Goodnight

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Presentation Outline

• Introduction

• Developmental Organizations

• Why Staffing Is An Issue

• Life Cycle Phases

• Organizational Issues

• Planning Issues

• Summary

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Goodnight Consulting, Inc. is a management consulting firm that serves the electric power industry. We specialize in the nuclear power industry, and focus our work in five main areas:

•

Overview of Goodnight Consulting, Inc.

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Our Extensive International Utility ExperienceProvides The Basis For This Presentation

Ameren Corporation First Energy Nuclear Operating Co. Ontario Power Generation (Canada)

American Electric Power Florida Power & Light Pacific Gas & Electric

AREVA Georgia Power Philadelphia Electric Company

British Energy (United Kingdom) Indianapolis Power & Light PPL Susquehanna

Constellation Energy Hydro Quebec (Canada) Progress Energy

Detroit Edison IAEA (Austria)* PSEG Nuclear

Dominion Kaiser Hill South Carolina Electric & Gas

Duke Energy Luminant Power South Texas Project Nuclear Operating Company

Electricite de France (France) Maine Yankee Atomic Power Company Strategic Teaming & Resource Sharing Alliance

Entergy Nuclear Nebraska Public Power District Tennessee Valley Authority

Electric Power Research Institute New York Power Authority TMP Worldwide

E.On (Germany) North Atlantic Energy Services Co. Westinghouse Electric Company

Eskom (South Africa) Nuclear Management Company Wolf Creek Nuclear Operating Company

Exelon Omaha Public Power District Worley-Parsons Bulgaria, Ltd. (Bulgaria)

* International Atomic Energy Agency activities include Expert Missionsto Chile, the Dominican Republic, Egypt, Kuwait, and Ukraine

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We Maintain Real-World Staffing And Organizational Databases To Apply As A Baseline For New Nuclear

126 Operating Units

STAFFING DATA MAINTAINEDINDEPENDENT OF ORGANIZATIONSTRUCTURE

74 NUCLEAR PLANTS7 3-Unit or 4-Unit Plants33 Dual-Unit Plants34 Single-Unit Plants

GOODNIGHTCONSULTING

STAFFINGDATABASE

• Goodnight Consulting, Inc. maintains detailed proprietary databases including information from 74 nuclear plants in 6 countries

• These databases include staffing on a functional level: Utility/Company site employees Utility/Company corporate employees Contractor/Vendor employees/Full-Time

Equivalents (FTEs)

• We also maintain an extensive library of detailed nuclear power company organization charts

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We Have Developed Staffing Models or Staffing Benchmarks For Most Commercial Reactor Designs

• Our key staff members all have over 20 years of experience in the nuclear power industry, and we have developed staffing models or benchmarks for the most common operating commercial nuclear plants:− Light Water Reactors

Westinghouse PWRs (2-loop, 3-loop, and 4-loop models)

Atomstroyexport VVER-1000

KHNP PWR (APR-1400)

GE BWRs (BRW-4s and BWR-6s)

− Heavy Water Reactors

CANDU

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Goodnight Consulting Has Also Developed Detailed Staffing Models For New Nuclear Plants

• Under separate contracts to Westinghouse (AP1000) and Areva (EPR), we have developed proprietary models: Multi-Unit Staffing Models For Steady State

Operations

Staffing ramp-up curves, for each functional area

Refueling outage duration and cost estimates

Comparative Staffing

-7 -6 -5 -4 -3 -2 -1 0 1

Years Before Commercial Operations

1-Unit2-Units3-Units

Required Staffing Development

Comparative Staff/MWe

0 1500 3000 4500

Plant Size (MWe)

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Goodnight Consulting, Inc. Has Also DevelopedOrganizational Models For Many Nuclear Companies

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• IAEA developed new “Milestones” document, published in September 2007

• Identifies 3 distinct phases, each with its own milestone, to be completed in preparation for a first nuclear power plant

• Provides detailed guidance on timely preparations for a nuclear power program

• Intended to help Member States to assess progress and prioritise actions necessary to order, license, construct and then safelyoperate a nuclear power plant

The IAEA Has Developed The Nuclear Energy Series, Which Includes Relevant Human Resources Information

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There Are Three Major Organizations That Need To Be Formed, Staffed, and Operated For A Nuclear Program

• These three organizations include the creation of the program, its regulation, and its operation: Nuclear Energy Program Implementing Organization

(NEPIO) – The IAEA developed this label Regulatory Body Operating Organization

• Each organization has its own staffing requirements, skills, and time frames

• Each will be discussed in the remainder of this presentation

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NEPIO Staffing Levels May Reach ~ 50 Personnel, Depending On The Scope Of The Nuclear Program

Source: IAEA

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NEPIO Organizational Models Will Vary In Each Country, But Require Varied & Specialized Skill Sets

Source: IAEA

• The IAEA Nuclear Energy Series, No. NG-T-3.6 shows this NEPIO organizational model during the Phase-I time frame

• This model shows the range of specialized skills required during this developmental phase of the nuclear program development

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Regulatory Body Staffing May Require ~100 Personnel, And Requires Nuclear & Engineering Expertise

Source: IAEA

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The Regulatory Body Will Continue To Exist Until The End of The Nuclear Program

• The Regulatory Body is required for safe and independent oversight of the nuclear power program

• It may grow as needed to support research and development, and/or expanding nuclear power operations

• It has a critical role in ensuring protection of the nation’s population and the environment

• The regulatory body normally oversees refueling outages, as well as any other movement of nuclear materials, including those not related to power operations (nuclear medicine, etc.)

• Even after a nuclear power plant is shut down, the regulatory body is responsible to ensure the safety of any residual nuclear materials (spend fuel, radioactive waste, etc.) – this may go on for many decades after the end power operations

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Operating Organization Staffing Will Be Determined By Many Factors, With Hundreds of Personnel Required

Source: IAEA

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• Most companies considering construction of new nuclear power plants focus on the initial construction costs (i.e. cost/installed kw, expected to be a several Billion USD), however total labor costs may be a much larger value

• In the USA, fully burdened labor costs are ~$100,000 per person• Thus, every 100 people: $10 M/year• Assuming a 60 year lifecycle for

new plants and a 4.5% average inflation rate, every 100 personnel will cost over $2.5 Billion

• In this cost model, 1,000 personnelwill require over $25 Billion over

a 60 year operational life cycle

In An NPP’s Life Cycle, Labor May Be Largest Single Cost Area – And Must Be Carefully Considered

Present Value of 60 Year Labor Costs

$0

$1

$2

$3

$4

$5

$6

$7

0% 1% 2% 3% 4% 5% 6%

Inflation RateLa

bor $

(Bill

ions

)/100

Peo

ple

At 4% Inflation, 60 Year Labor Costs Exceed

$2.5 Billion

At 6% Inflation, 60 Year Labor Costs Exceed $6 Billion

Present Value of 60 Year Labor Costs

$0

$1

$2

$3

$4

$5

$6

$7

0% 1% 2% 3% 4% 5% 6%

Inflation RateLa

bor $

(Bill

ions

)/100

Peo

ple

At 4% Inflation, 60 Year Labor Costs Exceed

$2.5 Billion

At 6% Inflation, 60 Year Labor Costs Exceed $6 Billion

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• The NPP Life Cycle can be divided into eight phases:1. Plant Design Selection2. Site Selection3. Plant Licensing4. Construction5. Start Up/Testing6. Commercial Operations7. Shut Down/Safe Store8. Decommissioning

• Each life cycle phase should be examined at the level of job functions required during that time window

Each Phase of An NPP’s Life Cycle Is Unique, and Requires A Different Staffing Model

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The Many Activities At An NPP Can Be Grouped Into 9 Process Areas With 43 Job Functions

NPP Process Areas & Job FunctionsOperate the Plant Supply Chain

• Chemistry• Environmental• Operations• Operations Support

• Computer Engr• Design Engr• Design/ Drafting• Nuclear Fuels• Procurement Engr• Quality Control• Reactor Engr• Systems/ Field Engr• Technical Engr

• Contracts• Materials Management• Purchasing/Contracts• Warehouse

Support Services• Admin/Clerical• Budget/Accounting• Communications• Document Control• Facilities• Human Resources• Info Systems• Management• Management Support• Training

Engineering &Technical Support

Work Management• Outage Management• Project Management• Scheduling

Safety• Emergency Planning• Fire Protection• Safety/Health• Security

• Maint/Construction• Maint/Constr Support

Maintenance

• ALARA• Radwaste/Decon• HP Applied• HP Support

Radiation Protection• Licensing• Nuclear Safety Review• Quality Assurance

Regulatory Compliance

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Many Job Functions Are Only Active DuringCertain Phases of The NPP’s Life Cycle

1. Plant Design Selection: 17/43, 40%

2. Site Selection: 13/43, 30%

3. Plant Licensing: 28/43, 65%

4. Construction: 37/43, 86%

5. Start Up/Testing: 42/43, 98%

6. Commercial Operations: 43/43, 100%

7. Shut Down/Safe Store: 34/43, 79%

8. Decommissioning: 30/43, 70%

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Using Current U.S. Based Staffing Models, High-Level Estimates Include ~840 Personnel During Operations

• The staffing estimates shown here are based on current staffing models in the U.S. from Gen II NPPs, and are exclusive of:– Major contractor/vendor personnel, i.e. new NPP construction staff– Refueling outage support personnel

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• National/local regulatory staffing environment– Oversight regulations– Reporting requirements– Licensing approach and frequency

• Site size and design/layout of facilities– Total site footprint– Location and relationship of buildings and infrastructure systems

• Plant design – NSSS type– Safety systems– Design capacity

• Plant equipment layout– Equipment accessibility– Size and locations of laydown space

During The Operational Phase Of The Plant Life Cycle, Several Key Issues Need To Be Addressed Relative To Staffing Requirements

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• Each staffing function may have more than one site, plant, or organizational driver

• This table summarizes the complexities of staffing requirements when five major drivers are considered– Plant Design– Site Layout– Regulatory Requirements– Outsourcing Options– Ability to Centralize

• Careful labor planning can save significant costs over the plant’s lifecycle

Many Staffing Functions Have Multiple Drivers That Must All Be taken Into Consideration For New Nuclear Plants

Area FunctionPlant

DesignSite

LayoutRegulatory

Requirement Outsourcing Centralization

Operations Applied Radiation Protection X X X XALARA/Radiological Engineering X X XChemistry X XDecontamination/Radwaste Processing X X XEnvironmental X X X XFire Protection X X XOperations X X XOperations Support X XRadiation Protection Support X X X

Engineering Computer Engineering X X X XDesign/Drafting X X X X XModifications Engineering X X X X XNuclear Fuels X X X X XPlant Engineering X XProcurement Engineering X X XProject Management X XReactor Engineering X X XTechnical Engineering X X X X

Maintenance Facilities Maintenance X X XMaintenance/Construction X X X XMaintenance/Construction Support X X X XOutage Management X X XQuality Control/Non-Destructive Examination X ? XSafety/Health X X XScheduling X

Regulatory Emergency Preparedness X X X XLicensing X X XNuclear Safety Review X XQuality Assurance X ? XSecurity X X X X X

Site Support Budget/Accounting X XCommunications X XContracts X XDocument Control/Records X XHuman Resources XInformation Management X XManagement XManagement SupportMaterials Management X X XPurchasing X XTraining X X XWarehouse X X X X

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• Most of the Operations staffing functions will have their staffing requirements determined by plant design and regulatory requirements

• Some functions are candidates for potential outsourcing and/or centralization– Radiation Protection (Applied and Support)– Decontamination/Rad Waste Processing– Environmental

Operations

Area FunctionPlant

DesignSite

LayoutRegulatory

Requirement Outsourcing Centralization

Operations Applied Radiation Protection X X X XALARA/Radiological Engineering X X XChemistry X XDecontamination/Radwaste Processing X X XEnvironmental X X X XFire Protection X X XOperations X X XOperations Support X XRadiation Protection Support X X X

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• Most of the Engineering staffing functions will be impacted by three major drivers– Plant Design– Site Layout– Regulatory Requirements

• Most are also candidates for either outsourcing or centralization

Engineering

Area FunctionPlant

DesignSite

LayoutRegulatory

Requirement Outsourcing Centralization

Engineering Computer Engineering X X X XDesign/Drafting X X X X XModifications Engineering X X X X XNuclear Fuels X X X X XPlant Engineering X XProcurement Engineering X X XProject Management X XReactor Engineering X X XTechnical Engineering X X X X

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Maintenance

Area FunctionPlant

DesignSite

LayoutRegulatory

Requirement Outsourcing Centralization

Maintenance Facilities Maintenance X X XMaintenance/Construction X X X XMaintenance/Construction Support X X X XOutage Management X X XQuality Control/Non-Destructive Examination X ? XSafety/Health X X XScheduling X

• Most of the Maintenance staffing functions will be impacted by three major drivers– Plant Design– Site Layout– Regulatory Requirements

• Fewer are candidates for either outsourcing or centralization

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• Most of the Regulatory/Oversight staffing functions are staffed as required to meet regulatory requirements

• Fewer of these functions have staffing requirements determined by plant design or site layout

• Most are not appropriate candidates for outsourcing

• Most are candidates for centralization

Regulatory/Oversight

Area FunctionPlant

DesignSite

LayoutRegulatory

Requirement Outsourcing Centralization

Regulatory Emergency Preparedness X X X XLicensing X X XNuclear Safety Review X XQuality Assurance X ? XSecurity X X X X X

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• Most of the Site Support staffing functions are staffed as required to support the balance of the organization, and so are not significantly driven by plant design, site layout, or regulatory requirements

• Half are candidates for outsourcing

• Most are candidates for centralization

Site Support

Area FunctionPlant

DesignSite

LayoutRegulatory

Requirement Outsourcing Centralization

Site Support Budget/Accounting X XCommunications X XContracts X XDocument Control/Records X XHuman Resources XInformation Management X XManagement XManagement SupportMaterials Management X X XPurchasing X XTraining X X XWarehouse X X X X

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Other Issues Emerge When Maximum Staffing Levels Are Plotted For Each Year During The Complete Life Cycle

• Several issues become apparent from this depiction of staffing requirements– Maximum staffing levels will peak between around 800 workers– Several working generations will be required during the full life cycle– There will be different human resources management challenges at

the beginning, in the middle, and at the end of the NPP’s life cycle

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• Once staffing requirements have been derived for each phase of the NPP’s life cycle, an organizational structure/design will be required for each

• Four organizational principles should be applied:

1. Balance layers of management and spans of control

2. Align related and supporting functions

3. Outsource functions that are:– Not required to be on-site/on-location, or – Not mission critical for operation, or to meet regulatory

requirements

4. Centralize functions with a parent company, where possible, due to the parent company or an alliance member having other power generation facilities

An Organizational Approach Will Also Be Required To Optimize Effectiveness of The Staff In Each Phase

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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

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• Detailed assessment of staffing requirements, based on the selected NPP design, the number of reactor units, and the selected site location(s)

• Assessment of available numbers of personnel with appropriate skill sets in the near-term

• Assessment of long-term capacities in the country to produce and develop appropriately skilled personnel as needed

• Development of a detailed staffing plan to support each phase of the NPP’s life cycle based on the nuclear program plan (at least annual)

• Development of organizational models to organize and manage the nuclear program personnel (at least annual)

• Development of a Staffing Management Plan to ensure targets, milestones, and schedules are met

The Complexity of Staffing Requirements Throughout The NPP’s Life Cycle Will Require Detailed Planning

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• The types of personnel are unique to each of the 8 life cycle phases

• The number of personnel in each job function is unique in each of the life cycle phases

• Human resources management challenges will be different over the NPP’s life cycle

• Detailed planning for recruiting, hiring, and retention will be required in each life cycle phase

• Organizational planning and development will also be required

Summary – Each Phase of An NPP’s Life Cycle Has Unique Staffing Requirements

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8418 Hunt Valley Drive, Suite 200 Vienna, Virginia 22182 USAVoice: (703) 448 – 6820 Fax: (703) 448 - 8443WWW.GoodnightConsulting.com

Goodnight Consulting, Inc.8418 Hunt Valley Drive, Suite 200 Vienna, Virginia 22182 USAVoice: (703) 448 – 6820 Fax: (703) 448 - 8443WWW.GoodnightConsulting.com

Goodnight Consulting, Inc.