DOE OSTI2016
In 2010, the UK Nuclear Decommissioning Authority (NDA) secured a funding settlement of British Pounds 2.5 Bn from the Government for the period to 2015 for the Magnox Care and Maintenance programme. This settlement was a reflection of the importance placed on discharging the decommissioning liability associated with the UK's first generation Magnox reactors. It also reflected the NDA's confidence in the Magnox Optimised Decommissioning Plan (MODP), which aimed to accelerate entry into Care and Maintenance and reduce the Magnox decommissioning liability by British Pounds 1.2 Bn. Despite the settlement, huge challenges remained if the MODP was to be delivered within the funding envelope. Essentially, the supply chain had to be able to participate in the delivery of the MODP and make the investment in skills and techniques required to minimise the threats and uncertainties remaining in the Programme. The Magnox Commercial and Supply Chain Strategy was, therefore, an integral part of the MODP. At the highest level, the Strategy involved: - Classifying and segregating procurements by risk and value - Moving the contracting philosophy from risk transfer to risk management - Focusing on relationships and results rather than activities and processes By aligning the supply chain to the MODP, Magnox was able to better organise itself to deliver against the MODP, to act on feedback from suppliers and enable a culture of 'Lead and Learn' to take root. Using feedback and learning from other organisations and applying these to contract management approaches improved project outcomes. In particular, learning from previous experience of dealing with Programme 'unknowns' increased the company's ability to control and improve on the overall Programme cost and schedule. The impact of the MODP was to reduce the Magnox baseline by over British Pounds 1.5 Bn and remove 34 reactor-years from the Care and Maintenance preparations period. This huge gain resulted from a range of technical, process and commercial improvements across the organisation. Perhaps the greatest achievement of the MODP and its supply chain strategy was to quantify and stabilise the Magnox Life-cycle scope and cost and enable the successful competition and transfer of the Management and Operating (M and O) contract in 2014 and lay the foundations for further cost-savings to the UK taxpayer. (authors)
12 MANAGEMENT OF RADIOACTIVE AND NON-RADIOACTIVE W↗