[December 2005]  The latest phase of the Performance Improvement Programme (PiP) at British Energy sees emphasis shift to transition through embedding the process “in the line” – and achieving delivery, accountability… and results.

Work continues to implement PiP with the aim of improving the reliability of the nuclear power stations and reducing the level of unplanned nuclear losses. The programme has six main areas; foundation (organisation, people, leadership and culture change), training, human performance, equipment reliability, management of work and operational focus. The focus has been on improvements relating to people, plant and processes in each of these areas.

Rising To The Challenge

The performance improvement programme at British Energy was born at a time when the company was facing and tackling its biggest challenge, financial re-structuring. This set the scene for PIP.

In 2003 British Energy Generation Operations underwent a wide-scale review carried out and a plan of action put in motion by industry experts, Entergy, ARUP and Severn Trent, alongside British Energy’s own staff. The initial findings of the review highlighted cost rather than performance had been predominant driver within British Energy. This had resulted in poor materiel condition and there was a need to invest in plant and people. This supported the use of the 2003 review carried out by WANO (World Association of Nuclear Operators) which stated that continued performance at existing levels was undesirable, an analysis of the causes of under-performance was required and a comprehensive rectification programme was necessary.

A Long Term Solution?

The result of the review necessitated a major programme of change. This was not an initiative that would fade away with time but would change the way the business would operate, becoming a way of life and delivering sustained performance improvement. As a result, the British Energy, Performance Improvement Programme (PIP) was born. This was the vehicle to deliver the improvements, enable recovery and ensure the future viability of the company by confident delivery of safe, reliable generation. It was, and is, an absolute must for British Energy to meet or exceed targets agreed with major investors and the government. As a result of PIP, the company is seeing positive improvements and is showing signs of being restored to full health.

Darren Kingman, the PiP director, believes the programme has already delivered significant improvements in the company’s performance. He explained: “As we begin our planned asset investment at the stations we are seeing some impressive progress through the deployment of smarter processes and human performance improvements.”

Some staff have asked through the briefing process how PiP is developing and Darren is aware that communicating the process through implementation and transition is key. Some feedback has suggested PiP was “a temporary measure” – or possibly another initiative running out of steam. Nothing could be further from the truth. PiP is the platform to taking British Energy forward as a safe, commercially viable, robust nuclear generator of choice. The external focus on the successful delivery of the programme has also increased with the relisting of the company on the stock exchange and tangible, measurable results are expected.

“Now it is about embedding the PiP process into the line; about having clear understanding on ownership and most importantly building sustainable performance,” said Darren. “We clearly had some company issues in the latter part of 2004 that took some momentum out of our efforts but this had not deflected our commitment to programme delivery – we are getting back on track and moving forward.

“PiP is now all about delivery, accountability and results. It’s as simple as that.” said Darren, a former director within major infrastructure projects in the Middle East for US giant Bechtel, is in no doubt about what’s at stake. “PiP is turning the company around. We need to strengthen that message internally.”

The programme, he said, needs now to be completely embedded at the power stations, and in corporate functions. In many areas this is already happening. In addition to recruitment and organisational change, the main areas of station activity include implementing Work Management, Human Performance, the Corrective Action Programme, and the Leadership / Culture change programme and delivering the training organisation. The setting up of the Asset Planning and Investment Division has been a major piece of work together with the development of processes. This will now provide a proactive, strategic planning capability to investment decisions.

Making Progress

“Many of the key performance indicators are also showing positive trends. We have an excellent set of results in areas like defect backlogs, scope stability and schedule adherence. You only have to look back to 2003 to see that we have come a long way.

“Planning and then executing work, getting on top of problems before they bite us and tackling the root cause issues, this is all part of embedding the PiP mindset in the line and exhibiting a safe, performance driven culture.

“The station and corporate PiP team along with our consortium partner Arup are really getting to grips with the station planning activities and the professionalism of the output is pleasing,” he said.

Paying Dividends

Since the integration of PIP the company has seen a 58% reduction in accident frequency rate - it is now the lowest rate at any time in the company’s history. Unplanned reactor trip rate is the lowest in the history of the company. Nuclear energy has the most stringent environmental compliance requirements of any industry - and the performance indicators show the targets have not only been met, but passed. British Energy also monitors nuclear, radiological and industrial safety - and this year achieved the lowest level of Nuclear Reportable Events in the company’s history.

These are important indicators of how, with requisite investment and a strong operational focus, British Energy will improve performance - to top tier performance.

Darren paid tribute to the influence of the WANO secondees in helping to make the change of mindset. Their experience in the use of some of the tools and techniques being implemented has proved invaluable. Key dates for embedding and delivery are short-term. This year and 2006 are vital – and ongoing performance effectiveness reviews are all part of the embedding process. The company is already conducting effectiveness reviews at stations for CAP and Human Performance. Work Management became part of Operations Support in March 2005. Foundation activities became part of Human Resources in April, and training activities will become part of the new Training Division in May.

Darren’s experience of overhauling and improving processes at Bechtel gives him perfect credentials for moving PiP forward. “My mantra is delivery, accountability and results. We’ve got great capability to make a difference here at British Energy. Embedding PiP in the line now means moving forward, accepting responsibility – and delivering.”

To The Future

And now with so much emphasis in the media on new nuclear build, the energy mix going forward and the industry’s role in supplying safe, reliable electricity, there is even more urgency to get things right.

“One thing I look for is for even quicker change. We’ve improved and the green shoots of recovery are evident and coming through – now with the exciting things happening in the energy sector we need to be recognised as making tangible progress and becoming world class in every respect.”

Tim Parry-Mills
2005

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