1 Issues Management at the Hanford Nuclear Reservation Tank Farms September 13, 2004

2 CH2M Corrective Action Management Problem identification, Tracking and Trending –Zero threshold reporting by any employee or subcontractor –Problem Evaluation Request (PER - electronic form) –Electronic routing for problem review Operations control center review each shift QA review daily (assignment of trend codes) Senior management review daily –Electronic action tracking (E-STARS) PER resolution assignment Corrective Action assignment –Trend Analysis Leading indicators Lagging indicators

3 What is PER? An electronic form used to document problems/issues/concerns –Web-based application –Intuitive, easy to learn system –“zero-threshold” reporting of conditions adverse to quality, safety, and health –Multiple review cycles – timely management attention –Avenue to document causal analysis, generate corrective actions, and obtain trending information for continuous improvement

4 Six steps to PER Identification (PER initiator tab) Operations Control Center Review –Timely review for operability, reportability, and notifications PER Screening –Representative screening for ownership, significance, and assignment of trend codes Senior Leadership Review –VP and Director level review of plant problems PER Resolution (graded approach to issues management) –Six levels of significance (Invalid, Trend, TUF, PIE/CIM, PER, SIGPER) PER Closure

5 PER Screen Example

6 What is E-STARS? An electronic action tracking system that interfaces with the PER system –Web-based application –One system to initiate, track, and close actions –Intuitive, easy to learn system –Interfaces with external systems ( , document control, job control, etc) –Real-time “in-transit” action status –Supports ad hoc and structured workflow

7 E-STARS Screen Example

8 Proven Performance Addressing ISMS Core Functions & Guiding Principles –Core Functions Define Scope of Work Perform Work within Controls Provide Feedback and Continuous Improvement –Principles Line Management Responsibility for Safety Clear Roles & Responsibilities Balanced Priorities Operations Authorization

9 Implementing ISMS Audits and assessments identified the company had excessive action tracking systems, lack of control and proper visibility of program critical activities –CH2M HILL reduced corrective action delinquency rate to single digits Current delinquency rate of less than 3% –Retired 9 legacy action tracking systems Reducing site wide O&M costs –Providing visibility and accountability of all critical corrective actions to senior leadership Daily senior leadership meetings rely on daily reports and metrics pulled from E-STARS

10 PER Delinquency Rate

11 Feedback and Improvement CH2M PER Trending Program –Leading indicators: assigned during PER screening process by QA Manager Price Anderson Amendment Act (PAAA); measure of compliance to Nuclear Rules Work Process; characterization of work activity occurring during event Functional Area; high level company function impacted by event Consequence; actual or potential consequence of the event ISMS –Lagging indicators: assigned during PER resolution by Responsible Manager Causal Analysis Tree (CAT) codes; post event trending of associated cause(s)

12 Trend Program Features Early characterization for leading indication –Early identification of issues prior to them becoming significant events Management Review Thresholds –Action levels set based on best business practice goals Statistical Thresholds –Statistical control limits set at +/- 3 sigma Monthly characterization of key elements –Common cause analysis performed for those above Management Review or Statistical control limits Quarterly trend program health report –Indicator panel style presentation of program health

13 Example: Work Planning

14 Why a Best Practice? Demonstrating proven performance with Hanford’s accelerated tank waste cleanup mission Used to implement ISMS Maximizing return on government investment Enhancing productivity through technology integration Building collaborative partnerships

15 Maximizing ROI Maximizing Return on Government Investment –Developed at DOE Richland and shared with other federal agencies US Air Force –Correspondence staffing and control - Information management requirements –Gap Analysis – 90% match, Operation Assessment Health & Human Services –Centers for Medicaid & Medicare to monitor program management action items Positioning for Army, FBI, and Defense Travel System –E-STARS v4.0 was sponsored by the Air Force Approximately $1M in product enhancements at no additional cost to DOE

16 Conclusion Corrective Acton Program –Identify issue –Take immediate/compensatory action –Assign significance and ownership –Senior Management input –Causal Analysis and Corrective Action Planning; graded approach –Feedback and Continuous Improvement (Trend data) Contacts: –Marnelle Sheriff, CH2M Corrective Action Program Manager, (509) , –Debbie Hovley, LMIT PER/E-STARS Program Manager, (509)

17 Q & A Questions?