partnering: a success through cii products bob seay tennessee valley authority case study 2000 cii...
TRANSCRIPT
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Partnering:Partnering:
A Success through CII ProductsA Success through CII Products
Bob SeayBob SeayTennessee Valley AuthorityTennessee Valley Authority
Case StudyCase Study
2000 CII Annual Conference2000 CII Annual ConferenceNashville, TennesseeNashville, Tennessee
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Results
Best PracticesWork Processes
RelationshipsTeam Behavior
NPS Energy Service
s
G-UB-MK
TVA
Partnering at TVAPartnering at TVAA Case StudyA Case Study
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Fossil Power Group (FPG) Partnering
Strategy Manual
FOSSIL POWER GROUPOUTAGE / PROJECT PERFORMANCE
Taking us to the top
IDWork
Level 5
PlanWork
ScheduleWork
PerformWork
EvaluateWork
Level 1
Level 4
Level 3
Level 4
A Process Centered Approach!
Formal Partnering Strategy Formal Partnering Strategy “Married” to Outage/Project “Married” to Outage/Project
Improvement StrategyImprovement Strategy
Fully Fully integrated in integrated in terms ofterms of
•PeoplePeople•Organization Organization
structurestructure•ProcessesProcesses•ExpectationsExpectations
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Major Maintenance Partnering ContractsMajor Maintenance Partnering Contracts
• Established in 1991; based on CII Partnering Established in 1991; based on CII Partnering Principles:Principles:
– All seek win-win solutions.All seek win-win solutions.
– Trust and openness are norms.Trust and openness are norms.
– Environment for long-term profitability exists.Environment for long-term profitability exists.
– Overall performance is improved.Overall performance is improved.
Partnering Within the Fossil Power Partnering Within the Fossil Power Group Group
Major Maintenance Partnering Contracts Major Maintenance Partnering Contracts
• Established in 1991; based on CII Partnering Established in 1991; based on CII Partnering Principles:Principles:
– All seek win-win solutions.All seek win-win solutions.
– Trust and openness are norms.Trust and openness are norms.
– Environment for long-term profitability exists.Environment for long-term profitability exists.
– Overall performance is improved.Overall performance is improved.
Key Contract ProvisionsKey Contract Provisions
• Cost reimbursable; award fee based on performance.Cost reimbursable; award fee based on performance.
• All profit is incentive/performance based.All profit is incentive/performance based.
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CII Products in UseCII Products in Use
Best PracticesBest Practices
•Pre-Project Pre-Project PlanningPlanning
•AlignmentAlignment
•ConstructabilityConstructability
•Materials Materials ManagementManagement
Best PracticesBest Practices
•Pre-Project Pre-Project PlanningPlanning
•AlignmentAlignment
•ConstructabilityConstructability
•Materials Materials ManagementManagement
•Team BuildingTeam Building
•PartneringPartnering
•Change Change ManagementManagement
•Disputes ResolutionDisputes Resolution
•Zero Accidents Zero Accidents TechniquesTechniques
andand Continuous ImprovementContinuous Improvement
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Focus of Our PresentationFocus of Our Presentation
•PartneringPartnering
•Team BuildingTeam Building
•Pre-Project PlanningPre-Project Planning
•Continuous Improvement Continuous Improvement (TQ)(TQ)
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Learning ObjectivesLearning Objectives
• Case study feedback on real Case study feedback on real savings.savings.
• Partnering as an ideal Partnering as an ideal environment for CII product environment for CII product application and improvements.application and improvements.
• Share some Do’s and Don’ts from Share some Do’s and Don’ts from a panel of experts.a panel of experts.
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Right Piece/Right TimeRight Piece/Right Time
•PartneringPartnering principles principles
•Team BuildingTeam Building — purposeful, innovative, — purposeful, innovative, ongoingongoing
•Pre-Project PlanningPre-Project Planning — joint project teams — joint project teams
•Continuous Improvement Continuous Improvement — “Raising the — “Raising the Bar”Bar”
Managing a Strategy for Managing a Strategy for SuccessSuccess
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FPG Partnering InitiativeFPG Partnering Initiative
• Eleven fossil plants, 59 units, seven Eleven fossil plants, 59 units, seven
states states
• $100 to 140 million in labor costs each $100 to 140 million in labor costs each
yearyear
• Two partners with long-term contracts Two partners with long-term contracts
divide workdivide work
• Projects range from $200,000 to $40 Projects range from $200,000 to $40
millionmillion
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FPG Partnering InitiativeFPG Partnering Initiative(continued)(continued)
• AllAll assigned work performance-based. assigned work performance-based.
• Either party can “walk away” with 60-Either party can “walk away” with 60-day notice.day notice.
• Progression purposely designed into Progression purposely designed into business plans, implementing business plans, implementing processes, and team relationships.processes, and team relationships.
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Team Building:Team Building:Surviving “Nasty Days”Surviving “Nasty Days”
Barriers to Success — What has and has not Barriers to Success — What has and has not worked?worked?
Process-DrivenProcess-Driven
• Formal strategies and expectationsFormal strategies and expectations
• Funding incorporated into Business Planning ProcessFunding incorporated into Business Planning Process
• Functional accountabilities built into implementation Functional accountabilities built into implementation processesprocesses
• Use of outside facilitatorsUse of outside facilitators
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Team Building:Team Building:Surviving “Nasty Days”Surviving “Nasty Days”
Barriers to Success — What has and has not Barriers to Success — What has and has not worked?worked?
Documented Team Health ApproachDocumented Team Health Approach
• Address team chemistryAddress team chemistry
• Planned workshops and eventsPlanned workshops and events
• Use of Peer Team groups for consistencyUse of Peer Team groups for consistency
• ““Menu” of options vs. objectivesMenu” of options vs. objectives
• Health thermometer to measure progressHealth thermometer to measure progress
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Pre-Planning:Pre-Planning:Using “Joint Project Teams”Using “Joint Project Teams”
Barriers to Success — What has and has Barriers to Success — What has and has not worked?not worked?
Process-DrivenProcess-Driven
• Formal process from project Formal process from project inception through completioninception through completion
• Guidelines on team make-up with Guidelines on team make-up with assigned accountabilitiesassigned accountabilities
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Pre-Planning:Pre-Planning:Using “Joint Project Teams”Using “Joint Project Teams”
Barriers to Success — What has and has not Barriers to Success — What has and has not worked?worked?
Accountabilities/ExpectationsAccountabilities/ExpectationsProject Sponsor, Team Leader, Project Sponsor, Team Leader, Team Sponsor, Team MembersTeam Sponsor, Team Members
• Assigned accountabilities: process checkpoints Assigned accountabilities: process checkpoints incorporated into each implementing processincorporated into each implementing process
• Formal process, inception through completionFormal process, inception through completion• Guidelines on team make-up, assigned Guidelines on team make-up, assigned
accountabilitiesaccountabilities
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Continuous Improvement:Continuous Improvement:Getting to the Bottom LineGetting to the Bottom Line
Barriers to Success — What has and has not Barriers to Success — What has and has not worked?worked?
Process-DrivenProcess-Driven
• FPG Strategy to be process-driven.FPG Strategy to be process-driven.
• Standard outage and project success criteria.Standard outage and project success criteria.
• Management tools in place, e.g., ORI/PDRI.Management tools in place, e.g., ORI/PDRI.
• PDCA model built into Improvement Action PDCA model built into Improvement Action Plans.Plans.
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Continuous Improvement:Continuous Improvement:Getting to the Bottom LineGetting to the Bottom Line
Barriers to Success — What has and has not Barriers to Success — What has and has not worked?worked?
Accountabilities/ExpectationsAccountabilities/Expectations
• Functional accountabilities deployed.Functional accountabilities deployed.
• Multi-year targets for continuously “raising bar.”Multi-year targets for continuously “raising bar.”
• Partner incentives have “line of sight” to Partner incentives have “line of sight” to Business Plan.Business Plan.
• Metrics drive continuous improvement.Metrics drive continuous improvement.
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Quantitative ResultsQuantitative Results
(Savings are not (Savings are not
cumulative.)cumulative.)
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$23MM Annual Savings$23MM Annual Savings
A 44% improvement in labor utilization since A 44% improvement in labor utilization since 19931993
Work SamplingWork Sampling
72%72%
GoodGood
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$6MM Annual Savings$6MM Annual Savings
A 69% decrease since 1991A 69% decrease since 1991
Worker Compensation Worker Compensation
CostsCosts
GoodGood9%9%
3.5%3.5%
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$17MM Annual Savings$17MM Annual Savings
A 45% improvement in staff and management A 45% improvement in staff and management costs since 1996costs since 1996
Overhead CostsOverhead Costs
GoodGood
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$1.6MM Annual Savings$1.6MM Annual Savings
Reduced 59% since 1994Reduced 59% since 1994
Small Tool CostsSmall Tool Costs
GoodGood
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$36MM Annual Savings on repeat projects since 1994$36MM Annual Savings on repeat projects since 1994
An average of 12% improvement for each repeat An average of 12% improvement for each repeat project since 1995project since 1995
Repeat Capital ProjectsRepeat Capital Projects(Baselining)(Baselining)
GoodGood
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$1.6MM Annual Savings on repeat O&M packages $1.6MM Annual Savings on repeat O&M packages since 1998since 1998
An average of 13% improvement for repeat O&M An average of 13% improvement for repeat O&M packages since 1998packages since 1998
Repeat O&M CostsRepeat O&M Costs
GoodGood
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• Learn do’s and don’ts, including Learn do’s and don’ts, including continuous struggles encountered.continuous struggles encountered.
• Participate in team-building Participate in team-building exercise.exercise.
• Participate in Q&A with panel of Participate in Q&A with panel of experts.experts.
• Begin relationship with our team for Begin relationship with our team for the future.the future.
• Get handouts on do’s and don’ts.Get handouts on do’s and don’ts.
The Implementation The Implementation SessionSession