Management of Nuclear Power Plant Projects
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Management of Nuclear Power Plant Projects - IAEA
MANAGEMENT OF
NUCLEAR POWER PLANT
PROJECTS
IAEA NUCLEAR ENERGY SERIES No. NG-T-1.6
MANAGEMENT OF
NUCLEAR POWER PLANT
PROJECTS
INTERNATIONAL ATOMIC ENERGY AGENCY
VIENNA, 2020
COPYRIGHT NOTICE
All IAEA scientific and technical publications are protected by the terms of the Universal Copyright Convention as adopted in 1952 (Berne) and as revised in 1972 (Paris). The copyright has since been extended by the World Intellectual Property Organization (Geneva) to include electronic and virtual intellectual property. Permission to use whole or parts of texts contained in IAEA publications in printed or electronic form must be obtained and is usually subject to royalty agreements. Proposals for non-commercial reproductions and translations are welcomed and considered on a case-by-case basis. Enquiries should be addressed to the IAEA Publishing Section at:
Marketing and Sales Unit, Publishing Section
International Atomic Energy Agency
Vienna International Centre
PO Box 100
1400 Vienna, Austria
fax: +43 1 26007 22529
tel.: +43 1 2600 22417
email: sales.publications@iaea.org
www.iaea.org/publications
© IAEA, 2020
Printed by the IAEA in Austria
October 2020
STI/PUB/1868
IAEA Library Cataloguing in Publication Data
Names: International Atomic Energy Agency.
Title: Management of nuclear power plant projects / International Atomic Energy Agency.
Description: Vienna : International Atomic Energy Agency, 2020. | Series: IAEA nuclear energy series, ISSN 1995–7807 ; no. NG-T-1.6 | Includes bibliographical references.
Identifiers: IAEAL 20-01354 | ISBN 978–92–0–104719–9 (paperback : alk. paper) ISBN 978–92–0–109720–0 (pdf)
Subjects: LCSH: Nuclear power plants. | Nuclear industry. | Project management.
Classification: UDC 621.311.25:005.8 | STI/PUB/1868
FOREWORD
The IAEA’s statutory role is to seek to accelerate and enlarge the contribution of atomic energy to peace, health and prosperity throughout the world
. Among other functions, the Agency is authorized to foster the exchange of scientific and technical information on peaceful uses of atomic energy
. One way this is achieved is through a range of technical publications including the IAEA Nuclear Energy Series.
The IAEA Nuclear Energy Series comprises publications designed to further the use of nuclear technologies in support of sustainable development, to advance nuclear science and technology, catalyse innovation and build capacity to support the existing and expanded use of nuclear power and nuclear science applications. The publications include information covering all policy, technological and management aspects of the definition and implementation of activities involving the peaceful use of nuclear technology.
The IAEA safety standards establish fundamental principles, requirements and recommendations to ensure nuclear safety and serve as a global reference for protecting people and the environment from harmful effects of ionizing radiation.
When IAEA Nuclear Energy Series publications address safety, it is ensured that the IAEA safety standards are referred to as the current boundary conditions for the application of nuclear technology.
Member States that want to introduce a nuclear power programme in their country will need to pass through several phases during the implementation of this process.
This publication provides information on the implementation of a project management framework as a part of the management system, and the necessary systems to manage the activities to be carried out within the nuclear project itself.
The work was funded by the IAEA Peaceful Uses Initiative, which is directed to increase the capability of Member States to plan and implement nuclear power programmes and to establish and enhance national nuclear infrastructure. It should be used in conjunction with the IAEA Safety Standards Series and other appropriate safety, security and safeguards related publications.
The IAEA wishes to acknowledge the assistance provided by the contributors listed at the end of this report, in particular J.P. Boogaard (the Netherlands), J.H., Moore (Canada) and R. Speedy (South Africa) for their roles in putting together the final version.
The Scientific Secretary responsible for the preparation of this publication was P.T. Pyy of the Division of Nuclear Power.
EDITORIAL NOTE
This publication has been edited by the editorial staff of the IAEA to the extent considered necessary for the reader’s assistance. It does not address questions of responsibility, legal or otherwise, for acts or omissions on the part of any person.
Although great care has been taken to maintain the accuracy of information contained in this publication, neither the IAEA nor its Member States assume any responsibility for consequences which may arise from its use.
Guidance provided here, describing good practices, represents expert opinion but does not constitute recommendations made on the basis of a consensus of Member States.
The use of particular designations of countries or territories does not imply any judgement by the publisher, the IAEA, as to the legal status of such countries or territories, of their authorities and institutions or of the delimitation of their boundaries.
The mention of names of specific companies or products (whether or not indicated as registered) does not imply any intention to infringe proprietary rights, nor should it be construed as an endorsement or recommendation on the part of the IAEA.
The IAEA has no responsibility for the persistence or accuracy of URLs for external or third party Internet web sites referred to in this book and does not guarantee that any content on such web sites is, or will remain, accurate or appropriate.
The authoritative version of this publication is the hard copy issued at the same time and available as pdf on www.iaea.org/publications. To create this version for e-readers, certain changes have been made, including a the movement of some figures and tables.
CONTENTS
1. Introduction
1.1. Background
1.2. Objective
1.3. Scope
1.4. Users
1.5. Structure
2. Nuclear projects and Factors that influence them
2.1. What is a project?
2.2. Project phases and life cycle
2.3. External environment and organizational factors that influence projects
3. Project management guidance
3.1. IAEA standards and publications
3.2. International project and construction management guidance
3.3. Small project guidance
3.4. Megaproject guidance
3.5. Front end planning
3.6. Value engineering
3.7. Design to cost
4. Areas to be managed in nuclear projects
4.1. Integration
4.2. Scope
4.3. Time
4.4. Cost
4.5. Quality
4.6. Human resources
4.7. Communications
4.8. Stakeholders and interested parties
4.9. Risk
4.10. Procurement
4.11. Health, safety and environment
4.12. Lessons learned and operating experience
4.13. Radiation dose and radioactive waste management
4.14. Licensing (nuclear, environmental and other)
4.15. Emergency planning and response (EPR)
4.16. Security and safeguards
5. Developing and implementing a management system for a project and implementing best practices
5.1. Establishing a process based project management system
5.2. Developing and encouraging best practices
6. Project management activities for a new NPP in each project phase
6.1. Introduction
6.2. Phase 1 (pre-project activities)
6.3. Phase 2 (project development activities)
6.4. Phase 3 (contracting and construction)
6.5. Commissioning, operations and decommissioning
7. Summary and conclusion
Appendix I: NPP OWNERSHIP STRUCTURES AND INDUSTRIAL INVOLVEME NT SCHEMES
Appendix II: PROJECT PROCESSES AND THE DE MING CYCLE
Appendix III: INTERNATIONAL PROJECT MANAGEMENT FRAMEWORKS
Appendix IV: POTENTIAL COMMITTEES AND WORK ING GROUPS
Appendix V: PROJECT MANAGEMENT ACTIVITIES IN PHASE 2 OF AN N PP PROJECT
Appendix VI: PROJECT MANAGEMENT ACTIVITIES IN PHASE 3 OF AN N PP PROJECT
Appendix VII: KEY ITEMS NEEDED AT CRITICAL PROJ ECT STAGES
REFERENCES
ABBREVIATIONS
CONTRIBUTORS TO DRAFTING AND REVIEW
STRUCTURE OF THE IAEA NUCLEAR ENERGY SERIES
1. Introduction
1.1. Background
Successes and failures within recent nuclear facility development and construction projects have highlighted the importance of implementing a structured and controlled project management approach to projects within the global nuclear industry. The management of a nuclear project throughout its life cycle, from development to decommissioning, has proved to be a challenging task, especially for a Member State new to the industry. Given the specifics of nuclear technology, nuclear project management is not just about delivering a facility and its associated physical infrastructure. It is also about confidently delivering a sustainable solution that can be safely, securely and reliably managed throughout its life cycle, involving many different stakeholders’ interests in the process.
1.2. Objective
Several organizations internationally offer mature project management knowledge bases. While helpful in numerous areas of project management, these more generic guides usually do not completely cater to the specifics of nuclear projects. This report has been developed from shared management practices and consolidated experiences provided by a number of invited nuclear project management specialists through a series of workshops and working groups organized by the IAEA. Its objective is to provide readers with a structured and methodical framework for the management of nuclear projects from their initiation to their closeout, so as to enable a best practice approach.
The publication captures the essence of international best practices and makes them available in a structured and organized way to assist management teams in planning and managing nuclear projects. Newcomer countries and their projects receive special emphasis. As there are many different solutions for achieving a successful project, the intention is not to be too prescriptive or to only give one approach.
The key objectives are:
● To provide an insight into the various available approaches for the implementation of the role of the owner/operator that should be considered by the Member State when structuring and managing the national programme consistent with other IAEA guidance;
● To provide a basic project management structure and a platform for continuous improvement on which an owner/operator can initiate a nuclear project;
● To highlight focus areas where nuclear projects require special attention;
● To highlight good practices about specific aspects of nuclear project management based on international experience.
Guidance provided here, describing good practices, represents expert opinion but does not constitute recommendations made on the basis of a consensus of Member States.
1.3. Scope
Practical information is given about various project management methodologies and management system approaches necessary to manage nuclear projects. This includes new build nuclear projects and other projects that may be performed by nuclear organizations, such as system upgrades or refurbishments within the context of the national infrastructure programme [1]. A coordinated management system approach is presented, facilitating compliance with national and major international legislative and regulatory requirements and standards. IAEA publications are referred to, where appropriate, for more detailed information and guidance on specific aspects.
This report endeavours to present a harmonized approach that may be used to structure the owner/operator management system and establish and manage nuclear projects and their development activities irrespective of the adopted approach. It gives information on the planning and execution of the project life cycle.
This publication does not focus on nuclear facility manufacturing, construction, operations or decommissioning management in as much detail, since they are sufficiently covered by other IAEA publications. For example, IAEA Nuclear Energy Series No. NP-T-2.7 [2] covers project management during the construction phase of a nuclear power plant (NPP), and IAEA Nuclear Energy Series No. NP-T-3.21 [3] covers management of procurement related to nuclear facilities. Various aspects of decommissioning are discussed in IAEA Safety Standards Series No. GSR Part 6, Decommissioning of Facilities [4] and IAEA Nuclear Energy Series Nos NW-T-2.5 and NW-G-2.1 [5, 6].
1.4. Users
This publication is primarily intended to be used by management and staff of potential owner/operator organizations who are planning for or involved in the execution of a nuclear project. It may also be useful in informing the staff within the nuclear energy programme implementing organization (NEPIO), key vendors, contractors and other organizations involved in a project. It provides insight into the complexities of project management and delineates the various interfaces and structures necessary to manage the national programme.
While some countries may already have a well established nuclear operating and maintenance capability, recent international experience has shown that a different area of expertise and skill set is required for the management of new NPP development and construction projects. This unique capability can be quickly lost once a previous new build project has been concluded. For this reason, it is recommended that countries re-embarking on new build projects pay careful attention to recent international experience, and they may therefore also find value in this publication. Emphasis is placed on regaining the specific expertise and infrastructure required to support a new construction project, as opposed to that which has been maintained to manage an existing operating station.
1.5. Structure
In an attempt to enhance readability this publication is structured and sequenced into seven sections. Section 2 gives an overview of projects in general and of what organizational, national programme or company related factors influence such projects. Section 3 provides an overview of IAEA and available international project management guidance, as well as guidance related to both small projects and large megaprojects. Section 4 provides a comprehensive list of important areas to be managed within a nuclear project and approaches to managing them. Section 5 describes specific steps to implement a project management system and to incorporate documented international best practices into such a system. Section 6 describes specific project management steps to be taken during each of Milestone Phases 1, 2 and 3 of an NPP project, as well as topics that deserve early attention for commissioning, operations and decommissioning. Section 7 provides a short overview on the key messages from this publication. Various appendices provide more detail on specific topics in these sections where warranted.
2. Nuclear projects and Factors that influence them
2.1. What is a project?
The term ‘project’ can be defined in many ways; however, the Project Management Institute (PMI) defines a project as simply a temporary endeavour undertaken to create a unique product, service or result
[7]. Projects are typically critical to the realization of the performing organization’s business strategy because they are a means by which the strategy of a company is implemented.
Projects are different from other ongoing operations within an organization because unlike operations, projects have a definite beginning and an end — they have a limited duration. Similarly, the individual processes that are used to manage specific project activities have a definite beginning and end. This is discussed in more detail in Appendix II in the context of an adapted Deming cycle.
Projects usually involve one or more elements that have not been addressed in the past and are therefore unique. A product or service may also be unique even if the category to which it belongs is not unique. For example, although several NPPs of generally the same design may have been built in the past, the creation of a new NPP will be a new and different project because each facility can include elements such as a unique location (sometimes with different norms, values, legislation and regulations), customized or adapted designs, regionally available components, different owners, different stakeholders, different construction forces or other differentiating factors.
A nuclear project is one that involves a nuclear facility or activity. A nuclear facility and activity is defined in the IAEA Safety Glossary [8] as a "general term encompassing nuclear facilities, uses of all sources of ionizing radiation, all radioactive waste management activities, transport of radioactive material and any other practice or circumstances in which people may be subject to exposure to radiation from naturally occurring or artificial sources." In a nuclear context, a project can thus include any of the following:
● Development of a new nuclear facility such as an NPP, research reactor, mine, fuel fabrication facility or irradiation facility as part of a national programme of projects;
● Major refurbishments, additions or life extension projects for a facility, often requiring extended outages;
● Decommissioning, waste storage and site remediation or restoration projects;
● Modifications to an existing nuclear facility that may be done on-line or during shorter duration outages;
● Management of nuclear facility maintenance activities (outages, component specific projects, etc.);
● Management of nuclear engineering or research related activities (e.g. studies, risk assessments, R&D projects);
● Managing nuclear transportation related projects;
● Improvement initiatives related to nuclear facilities or activities.
Although this publication focuses primarily on the management of NPP related projects, many of the principles described can be applied to most nuclear projects.
Conventional project management texts often convey the concept of a project management ‘triangle’ that illustrates the potential trade-offs between the key dimensions of a project. Any adjustment in one dimension affects the others. Different publications can define the dimensions slightly differently; however, common examples use the three dimensions of scope (project features and quality), time (or schedule) and cost (budget, resources, etc.). An increase in scope typically means a longer schedule and higher costs, a tight schedule can lead to increased costs and scope reductions, while a tight budget can mean a longer schedule and reduced scope. Often quality is separated out as impacting on all three dimensions (Fig. 1), since a desire to increase product quality can impact on cost, time to completion or the affordability of features/scope of the item or project.
Another expression of the same basic concept is being told to ‘pick any two’ options for the completion of a project: fast, good or cheap. This ‘choice’ is admittedly simplistic in nature, since it does not emphasize a balancing of the three elements; nor does it address the need, in a nuclear context, to always address nuclear safety and security at a foundational level.
2.2. Project phases and life cycle
Projects can be seen as divided into a number of phases within which different activities predominate. Formal approvals are typically sought to proceed from one phase to the next, as progression to a later phase often entails financial and other resource commitments. There are usually five phases involved, as described below (see also Fig. 2):
(i) Project identification: During this phase the initial business need for the project is defined. This typically includes an assessment of the business need, gap or opportunity to be addressed. This work is normally funded externally from the project, since the project itself has not yet been approved.
At operating facilities, potential projects are often identified by engineering staff through system health reviews, component condition assessments, the life cycle plans that are prepared for major systems, periodic safety reviews