DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado Work Control Process Alignment Presented by: Michael C. Hughes President & General Manager Bechtel Jacobs Company

pg- 2 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado Oak Ridge Accelerated Cleanup Project 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 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 1.3 Million ft 3 of waste 163 Potentially Contaminated Sites 500 Surplus Facilities 5,951 Depleted Uranium Hexafluoride Cylinders 279 Potentially Contaminated Sites 30 Surplus Facilities 143 Acres to Cap 279 Potentially Contaminated Sites 232 Facilities 57 Waste Processing Facilities to Manage

pg- 3 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado BJC Work Control Planning and Implementation at Various Phases of the Contract 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 2009 Accelerated Cleanup Project

pg- 4 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado 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

pg- 5 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado K-25 Building is a Unique D&D Opportunity = Approximate location of the incident Construction started 1943 Roof added over Operating Floor ‘roof’ panels Operations 1945 – 1964 Building Stats: 4.7 million square feet4.7 million square feet 4,975 feet long4,975 feet long 380 feet wide380 feet wide 58 feet tall58 feet tall Construction started 1943 Roof added over Operating Floor ‘roof’ panels Operations 1945 – 1964 Building Stats: 4.7 million square feet4.7 million square feet 4,975 feet long4,975 feet long 380 feet wide380 feet wide 58 feet tall58 feet tall

pg- 6 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado 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.”

pg- 7 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado Work Control Process Alignment  Define scope  Analyze hazards  Develop/implement controls  Perform work within controls  Feedback and improvement  Line management responsibility for safety  Clear roles and responsibilities The Work Control Process Alignment is used to enhance the effectiveness of the implementation of the ISM Functions The process alignment also focuses on the ISM principles of

pg- 8 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado Conducting Interactive Work Control Alignment Workshops at the Project Level Work Control Sessions Associated Breakout Sessions Objectives Setting Process  Key aspects of setting objectives 1.Review current work control process objectives 2.Review work control roles by organization Management / Stakeholder Alignment  Review the key aspects of alignment  Review the alignment profile  Review the mechanics of Alignment Thermometer 3.Identify key alignment issues Barriers to Success  Review typical barriers to project success 4.Identify key alignment barriers 5.Identify actions to overcome the barriers Work Package Alignment  Review work package process & objectives 6.Identifying key barriers to work package alignment 7.Identify actions to overcome the barriers Summary & Conclusions  Gaining and Sustaining Alignment

pg- 9 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado 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

pg- 10 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado Longitudinal – stay aligned throughout project’s life Vertical – Project team aligned in values & purpose Alignment Must Exist in Three Dimensions Horizontal – Functional support aligned with project objectives Safety Engineering Construction

pg- 11 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado 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

pg- 12 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado Alignment Thermometer: Where Are We Starting?  Measures the project team alignment  Identifies the areas needing focus  Assists in tracking toward alignment  Captures agreement / disagreement among stakeholders  Captures how well alignment issues are addressed on project  Leads to pinpointed actions 70% 40% 100% Comfortable Road to Success Discomfort on the Road to Mediocrity Stressful Road to Failure

pg- 13 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado Legend: 1 = Strongly Disagree 5 = Strongly Agree Steps 1 and 2 – Collect Survey Data

pg- 14 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado 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

pg- 15 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado 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)

pg- 16 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado 70% 40% 100% Step 5 – Alignment Thermometer Indicates we are Making Progress Comfortable Road to Success Discomfort on the Road to Mediocrity Stressful Road to Failure Feb 2006 July 2006  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

pg- 17 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado Gaining and Maintaining Alignment Alignment Culture Execution Processes Communication / Information Tools BarriersBarriers

pg- 18 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado 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

pg- 19 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado 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

pg- 20 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado 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 Work Control Changes

pg- 21 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado 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 Work Control Changes

pg- 22 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado  Has to be a Project Leadership Absolute!  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 Disciplined Work Control Alignment

pg- 23 DOE Integrated Safety Management Best Practices Workshop―Aurora, Colorado  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? Some Key Questions to ask Regarding Work Planning & Control on Any Project