Work Control Process Alignment

1. Work Control Process Alignment Presented by: Michael C. Hughes President & General Manager Bechtel Jacobs Company

2. Oak Ridge Accelerated Cleanup Project Scope Safely treat and dispose of Legacy Low-Level and Mixed Low-Level Waste stored on the Oak Ridge Reservation. Melton Valley: Decommission surplus facilities and complete hydrologic isolation/capping of major burial grounds and trenches. East Tennessee Technology Park Closure: Decommission surplus facilities; complete remediation of waste sites: and implement groundwater remedies. Manage Balance of Program scope, including high priority risk-reduction projects at Y-12, Oak Ridge National Laboratory, and offsite. Major Quantities Milestone Completion Date September 30, 2005 Complete Sept. 29, 2005 September 30, 2006 On Schedule September 30, 2008 Forecast Moving to FY 2009 September 30, 2008 On Schedule 1.3 Million ft3 of waste 279 Potentially Contaminated Sites 30 Surplus Facilities 143 Acres to Cap 163 Potentially Contaminated Sites 500 Surplus Facilities 5,951 Depleted Uranium Hexafluoride Cylinders 279 Potentially Contaminated Sites 232 Facilities 57 Waste Processing Facilities to Manage

3. BJC Work Control Planning and Implementationat Various Phases of the Contract Accelerated Cleanup Project Maintenance & Operations • Outsource all work • De-centralized control • Project & Functions (matrix) not in balance – “Functions not at the table” • Multiple work control processes • Limited alignment across projects • No contract requirement to outsource work • Rebalanced the matrix – “EPC approach” – functions play an important role (people, processes, procedures) • One work control procedure • People-Based Safety Training • Improve Work Planning & Control procedure • Implement Human Performance Improvement concepts & tools • Complete Work Planning & Control Alignment workshops 1998 2003 2006 2009

4. K-25 Ironworker Falls 29 Feet • On the afternoon of January 3, 2006, at approximately 1355 hours a BJC employee working on the operating floor in the K-25 Building fell 29.5 feet to the cell floor. The employee was treated at the scene and transported to the University of Tennessee Medical Center via helicopter. • Immediate Actions Taken: • Stop Work • The ORO Manager commissioned a Type B Investigation • Bechtel Jacobs Company commissioned an independent Extent of Condition Review

5. K-25 Building is a Unique D&D Opportunity • Construction started 1943 • Roof added over Operating Floor ‘roof’ panels • Operations 1945 – 1964 • Building Stats: • 4.7 million square feet • 4,975 feet long • 380 feet wide • 58 feet tall = Approximate location of the incident

6. Type B Identified 7 Judgments of Need Detailing Deficiencies and Gaps in the Following Categories • Work Planning and Control • Engineering / Design Control • Feedback and Improvement • Replan for K-25/K-27 Access and Demolition • Contractor and DOE Oversight Root Cause The Project “failed to follow the work control process and allowed informality in the execution of its Integrated Safety Management (ISM) Program.”

7. Work Control Process Alignment The Work Control Process Alignment is used to enhance the effectiveness of the implementation of the ISM Functions • Define scope • Analyze hazards • Develop/implement controls • Perform work within controls • Feedback and improvement The process alignment also focuses on the ISM principles of • Line management responsibility for safety • Clear roles and responsibilities

8. Conducting Interactive Work Control Alignment Workshops at the Project Level

9. Alignment is Critical to Project Success Definition - The condition where appropriate project participants are working within acceptable tolerances to develop and meet a uniformly defined and understood set of objectives. • A state of being; focused on objectives • Must be fostered throughout the project life • Must be readdressed as new participants added to project, or as objectives change

10. Alignment Must Exist in Three Dimensions Longitudinal – stay aligned throughout project’s life Vertical – Project team aligned in values & purpose Safety Engineering Construction Horizontal – Functional support aligned with project objectives

11. Understanding the Alignment Challenge • Projects have complex objectives – sometimes they are in direct conflict • Mixed stakeholders cause project complexity • Different functional groups – sometimes specialists tend to do their own thing • Multiple decision makers increase the need for communication – both deployed and non-deployed • Project Dynamics – schedule and funding changes

12. 100% Comfortable Road to Success 70% Discomfort on the Road to Mediocrity 40% Stressful Road to Failure Alignment Thermometer: Where Are We Starting? • Measures the project team alignment • Identifies the areas needing focus • Assists in tracking toward alignment • Captures agreement / disagreementamong stakeholders • Captures how well alignment issues are addressed on project • Leads to pinpointed actions

13. Steps 1 and 2 – Collect Survey Data Legend: 1 = Strongly Disagree 5 = Strongly Agree

14. Steps 3 and 4 – Analyze Data (Spider diagram) • Average ranking of Work Implementers • Each spoke is an alignment statement from the survey • Average for all respondents • The larger the “spider web” the more poorly aligned the team • Indicates alignment work to be done

15. Steps 3 and 4 – Analyze Data (Spider diagram) • Range ranking of Work Implementers • Max minus Min ranking for each of the alignment survey statements • The larger the “spider web” the more poorly aligned the team • 44 of 48 statements had a range of 10 (maximum mis-alignment possible)

16. Step 5 – Alignment Thermometer Indicates we are Making Progress 100% • Results at BJC • Twelve sessions (344 personnel) conducted Feb through July • Senior management through craft in workshops • Alignment of personnel also being seen in workshop sessions Comfortable Road to Success July 2006 70% Discomfort on the Road to Mediocrity Feb 2006 40% Stressful Road to Failure

17. Gaining and Maintaining Alignment Culture Barriers ExecutionProcesses Alignment Communication / Information Tools

18. Examples of Barriers to Work Control Alignment • Culture – No formal division of responsibility for work control - all stakeholders not accepting ownership and not holding each other accountable • Execution – Workers not fully engaged in the work planning process - management, non-manual, & craft workers not fully engaged in the work planning process • Communication – Lack of sufficient vertical & horizontal communication - management-to-craft and craft-to-management, line management-to-functions and function-to-line management • Tools – Feedback & Lessons Learned not adequately collected or incorporated into the work control process - doing the same thing over & over and expecting different results

19. Examples of Barriers to Work Package Alignment • Plan - Entire work team not engaged in the process • Approve - Comment resolution is too cumbersome • Execute - Work package is too complex • Closeout - No feedback or feedback follow-through

20. Work Control Changes Culture • Establishes the Lead Planner and Task Lead positions • Single line accountability on a project for work package preparation • Single line accountability for work execution • Institutes a required Project Team (workers, technical experts, supervision, facility management) approach to work package development in order to generate better integrated packages, • Training drove home ownership of the work control process emphasizing technical, supervision, and worker responsibilities Execution • Stresses responsibilities for successful implementation as well as development • Requires technical, supervision, and worker input during planning walkdown • Requires worker and supervisor pre-job walkdown to make sure work package matches task and conditions • Establishes Work Control Task Lead position for each work package to ensure clear ownership of the work package during implementation

21. Work Control Changes Communication • Includes workers as part of the team even to the point of work package sign-off • The required team approach eliminates isolated development of work package elements • Requires review of package to ensure integration and eliminate conflicting direction (e.g., PPE) • Training dealt directly with the importance of communication • Requires adequate technical review of any changes – eliminated red-line changes in the field Tools • Requires technical experts to incorporate Lessons Learned from their area • Establishes Project Work Package review for incorporation and integration of hazards, controls, lessons learned, and work instruction • Requires periodic end-of-shift briefings not just at the end of the job to increase feedback

22. Disciplined Work Control Alignment • Has to be a ProjectLeadershipAbsolute! • Needs to be defined, measured, and tested early on in the Project • Especially critical in joint-venture/multiple-partner projects • Is an essential element to Zero Incidents & Injuries • Instills discipline in the approach to work • Complements Integrated Safety Management • Establishes “our” work control culture and expectations on the Project • Needs to be maintained for the life of the Project

23. Some Key Questions to ask Regarding Work Planning & Control on Any Project • How do we plan, approve, and get work done around here? • Can you show or describe the work process to me? • Who is responsible and accountable for the various phases of the work process? • How do we measure whether we are aligned?