Sellafield managing delivery Bill Poulson Managing Director Sellafield

Sellafield: managing delivery Bill Poulson Managing Director Sellafield Ltd July 2010 1

Progress since 2008 Issues to address • Legacy materials and facilities • Plant reliability and productivity • Lack of consistency in disciplined operations • Facilities, organisations operating as silos • Highly bureaucratic systems and processes • Unsatisfactory project delivery 2

Progress since 2008 Key challenges High-hazard risk reduction Value for the money: cost effectiveness Project management improvement Disciplined operations Workforce transformation: safer, more skilled, more productive 3

Progress since 2008 2009 2010 PAIS Review Working safely Integrated Change Disciplined Operations People & performance processes Project Delivery Improvement Partnering / Rebuilding Relationships 4

Progress since 2008 5

We are making visible, measurable progress. . . 41 of 44 objectives relating to departmental strategic objectives achieved Increased productivity across the site Achieving milestones 6

. . . but there are challenges ahead. • Integrated Change Programme and realising efficiencies • Workforce transitions – – – Right size and right mix Agile workforce Culture change Disciplined operations Hunger for results • Accelerating high hazard reduction • Asset management improvements • Sellafield MOX Plant upgrades 7

The bottom line. . . We are focused on and delivering results in: • Safety and environmental performance • Spent fuel management • Accelerated high-hazard risk reduction • All done while delivering efficiencies and increasing value for money 1 st Return of Highly Active Waste Departs for Japan Making Sellafield safer, cleaner, more productive, more costeffective, and a better neighbour each and every day. 8

Openness & transparency • In partnership with NMP and NDA, Sellafield Ltd is developing plans for managing delivery for the Sellafield nuclear site Aim § § Provide Sellafield Ltd and NMP with information essential to complete designated work on time and within budget Provide NDA with a means for measuring contract performance Support the effective allocation of resources Give stakeholders a tool to scrutinise performance 9

Building plans that are…. We are increasing the priority and focus on high hazard areas • Based on the output of quality assurance reviews and changes to the strategic assumptions • Aligned with site and national strategy and will allow delivery of strategic assumptions. • Realistic avoiding the earlier pitfalls of over-optimism • Pedigreed meeting international project management industry standards (norms) concerning efficiencies, constraints, and underpinning • Underpinned to 2025/2026 at appropriate levels • Fundable making funding decisions easier to understand, justify, and plan for • Deliverable providing a high degree of confidence that Sellafield Ltd will be able to deliver results to NDA and stakeholders • Prioritized to “fix first what matters the most. ” 10

Integrated Change Programme • The Integrated Change Programme provides continuous, yearon-year improvement in Sellafield Ltd’s capability to deliver accelerated high hazard risk reduction against a background of improving safety performance • It is made up of individual plans for tackling complex issues, integrated to ensure we gain maximum benefit • Key to the acceleration will be Performance Improvement Action Plans for each programme area • An essential component of the Performance Improvement Action Plans are the Milestone Opportunities Range 11

Supporting UK nuclear industry • • • Ongoing receipt of AGR fuel Delivering existing contracts with utility customers Thorp operating programme Magnox operating programme MOX fuel production Continued export of high level waste to overseas customers • MOD support 12

Focus on delivery where it counts • • Hazard and risk reduction Spent fuel management Decommissioning Nuclear materials Waste management End states Infrastructure Functions 13

What will you see? • • • Open, transparent and easy to understand forward plan Multi-year focus with regular updates on delivery Regular engagement with WCSSG on delivery against plans 14