Facilitated By: John Meyer Rick Harris Margin Management Facilitated By: John Meyer Rick Harris

What’s Driving Margin Management? Power uprates – margin interfaces Need for complete engineering bases System Health Reports INPO (AFIs) OE Plant Life Extension Changes in design requirements

Documenting Margins INPO doesn’t expect margin notebook INPO asks for top ten list Margins can be moving targets Should be relatively easy to retrieve

What Is Margin Management? New “Program” not needed Include in processes Margins clearly stated in calculations Need people to be fluent in verbalizing margins Need to communicate in terms of margin – speak the language Involves use of right design inputs

Ways to Recover Margin Analytical Modification Maintenance Testing Operations

When to Recover Depends on risk and cost Depends on what margin model space you are in Engineers shouldn’t always be justifying the existing condition of the plant but returning to original design

Metrics & Effectiveness Measure documentation of margins in design changes & calculations Engineering quality review teams Margin issues in System Health reports Self Assessments Quantify number of operational challenges due to low margin, evaluate seriousness. Measure tenure of top margin issues

Random Thoughts Potential negative public perception on reduced margin Risk increase associated with reduced margin? Design and operating limits may be fuzzy Large margins can give a false sense of security