Entergy Nuclear Decommissioning Supply Chain Perspective
Transcript of Entergy Nuclear Decommissioning Supply Chain Perspective
Entergy Nuclear Decommissioning
Supply Chain Perspective
RAPID INDUSTRY CONFERENCE2018
Entergy Transformation to Regulated based utility business
Transformation Level 1 timeline
Supply Chain response to shift in company strategy
Lessons learned from early transactions
Opportunities for future transactions
People
Risk Mitigation
Return on Investment
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Topics
PNP 2019 IP2 2020 PLP 2022IP3 2021VY 2018
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Entergy Nuclear Units
Entergy Wholesale CommoditiesVermont Yankee – S/D 2015Fitzpatrick – SOLD 2016Pilgrim – S/D 2019IP2 - S/D 2020IP3 – S/D 2021Palisades – S/D 2022
Merchant Units (EWC)
Regulated Units
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Transformation Level 1 Timeline
– Provide oversite of Merchant - EWC Station Managers / Teams
– Unwind EWC business, develop and implement Decommissioning Project Plans or Transition Project Plans (DPP/TPP)
– NDO PMO Team - Supply Chain Lead, T-Meetings, Schedules, Actions
– Reallocate personnel from decommissioning units to support southern teams
• Manage and Process Employee Separations / Retirements
• Pipeline to Regulated Nuclear and other parts of Company
– Lead Investment Recovery actions for station inventory ($250M) and site assets
– Mitigate risk and close or transfer Contract and Purchasing activity
– Create station operating procedures for SC through phases of decommissioning
– Project close-out for each unit
X 4 units / 3 Stations
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Sr Manager SC - EWC Duties
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Nuclear Supply Chain Org Restructure
• Made change to adjust for new workload
• 2019 thru 2022+
Mark OsborneProgram Manager
Pat McKenneySr Manager SC
EWC – Lead TeamESS Governance Board
Legal SupportSupply Chain Corp Sourcing
Nuclear Decommissioning Organization
Governance
Oversight
Execution
Support
Justin McCabe IRS Manager
Staffing Management-Staffing Planning -Separation Execution-Asset Recovery
Asset Recovery-DOS Management-Disposition Channels-Logistics
David Bauer Decom PM
Michael Catino PNP SC Manager
Scott RoweSupv Site Staff
Wyatt DavisInvestment Rec
Logistics Support-Asset Recovery Team-Asset Disposition -Cat Id HC Fleet Transfers-Procedure Changes-Transition Coordination-Change Mgmt Plan-Fleet Lessons Learned
*PNP Proc Staff (3)
Contract Management-Legal Interface -Contract Oversight-Contract Transfer,Termination, Closeout
-Purchase Orders-Leases and Rentals
SC Organization – GOES Model and Matrix SupportSC Line Management
CSO / DIR
Opportunities – Disposal Streams
Specialized Nuclear/
Power Plant
Office Equipment
General Industrial(InventoryShop EquipToolingRolling Stock)
Scrap Metal
Nuclear Resellers &Speculators
Other Utilities
Auction Houses
Resellers
Bid Board
Office Furniture Dealers
Bid Board
Entergy Sites
Donations
Bulk Scrap Dealers
Surplus Stream
RecoveryOptions
Trash, Waste,Chemicals,
Hazards
Disposal Contracts
Sell with Plant
2% 7% 0% 1% 150%Return on Asset Value
Transferable Materials
Entergy SitesNuclear
FossilT&D
Impair
AUP
What's in the WH to move ?
Specialized Nuclear/
Power Plant
Office Equipment
General Industrial(InventoryShop EquipToolingRolling Stock)
Scrap Metal
Nuclear Resellers &Speculators
Other Utilities
Auction Houses
Resellers
Bid Board
Office Furniture Dealers
Bid BoardEntergy
SitesDonations
Bulk Scrap Dealers
Surplus Stream
RecoveryOptions
Trash, Waste,Chemicals,
Hazards
Disposal Contracts
Sell with Plant
2% 7% 0% 1% -150%Return on Asset Value
Transferable Materials
Entergy Sites
NuclearFossilT&D
Impair
AUP
Specialized Nuclear
Transferable
General Industrial
Breakdown by Inventory Value
WH Value by Category
• Nuclear Power Plant – Special 25%• Industrial - General 70%• Transfers - Site to site / Pulls 5%
1) Identify Surplus non-inventory material, tools, equipment, vehicles that can be immediately turned over to Investment Recovery.
2) Identify design/project materials /repairs/Maintenance items that can be cancelled. – Cancel unneeded POs/Contracts– Review POs to evaluate any cancellation fees or obligations– Pull reorders from Corporate and purchase from the site, evaluate continued need - order points / quantities.
3) Adjust off-site rebuild program to remove un-needed equipment
4) Identify inventory that will no longer be needed– Develop inventory reports that summarize CID – (description, P/N, application/System, etc.)– Obtain System Engineering resources to evaluate inventory.
5) Develop inventory reports for review by other Entergy sites for transfer. -- Run reports for “hits” at other stations, force transfers
6) Update RAPID to list surplus inventory as “For Sale”
7) Review Contracts to identify those requiring notification of termination > 30 days (PIM- example)
8) Meet with Supply Chain Staff and Site Staff to review steps for selling material (paradigm shift)
9) Establish a cross-functional Investment Recovery Team for review of material disposition recommendations. – Maint, I&C, Supply Chain, Finance, Corp Inv. Recovery, Communications, Projects – Hold routine meetings to discuss surplus equipment and recovery options.
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Lessons Learned
10) Organization work does not stop with Rx Mode Switch to S/D
11) Do not trim site structure - too much - too fast
12) Identify how Corporate SC Staff can support transition periods
• Central PE
• Central Purchasing / Contracts
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Lessons Learned
PO Contr Rec Lines
2014 468 342 1131
2015 417 271 569
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200
400
600
800
1000
1200
VTY Workload Comparison2014 to 2015
Suggested Staff - S/D + 1 Year
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Corporate Business Services
(CBS)
Questions?