1. 1/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 Copyright © AREVA NP GmbH 2008. All rights, including rights created by patent grant or registration of a utility model or design, are reserved. Any reproduction, transmission or use of this document or its contents wholly or in part is not permitted without express written authority. Any violation may result in liability for damages. Project Management, A Discipline Which Contributes to Project Success Günter Hoch Project Director, PMP May 28, 2008

2. 2/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 Agenda All rights reserved. See copyright notice. 1.The Project 2.Project Management in the Modernization of NPP Kozloduy Units 5 & 6 3.Project Management Process within AREVA NP GmbH 4.Current Status

3. 3/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 1. The Project All rights reserved. See copyright notice. out of „Making it happen - An Executive’s Guide to Project Management” “If it’s March, then we must be halfway done...right?” “The bearing of a child takes nine months, no matter how many women are assigned.” “When is a schedule not a schedule even when it looks like a schedule?”

4. 4/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 1. The Project All rights reserved. See copyright notice.  PMBOK: A temporary endeavour undertaken to create a unique product or service:  Performed by people  Constrained by limited resources  Planned, executed, and controlled  ISO 10006: Unique process consisting of a set of co-ordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements, including constraints of time, cost and resources

5. 5/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 2. PM in Modernization of NPP Kozloduy Units 5&6 All rights reserved. See copyright notice. After long time of project definition (94/95), budget estimation and issuance of terms of reference the negotiation process was started in 1996. Finally a Contract was signed between KNPP and European Consortium Kozloduy (ECK) consisting of Framatome ANP GmbH as Leader (63%) Framatome ANP S.A.S. (17%) Atomenergoexport (20%) Contract Effective Date (CED) :01.06.2001 Finished:30.05.2006

6. 6/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 All rights reserved. See copyright notice. 2. PM in Modernization of NPP Kozloduy Units 5&6 Success Factors Organization of the Teams Planning Engineering and Design Outage Organization Implementation (incl. testing and commissioning) Quality Assurance Social Project Life

7. 7/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 All rights reserved. See copyright notice. 2. PM in Modernization of NPP Kozloduy Units 5&6 Success Factors Organization of the Teams Technical Measure Responsible Project Coordination and Control KNPP Project Management Technical Measure Responsible Partner Project ManagerECK Project Management Technical Measure Responsible Studies Mechanical Measures Electrical and I&C Measures Studies Mechanical Measures Electrical and I&C Measures Interface Management

8. 8/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 2. PM in Modernization of NPP Kozloduy Units 5&6 Success Factors All rights reserved. See copyright notice. Main advantages  Key people work together from planning until implementation phase  No slip of information  Gaining of mutual trust  Lessons learned implementation is easier Organization of the Teams

9. 9/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 2. PM in Modernization of NPP Kozloduy Units 5&6 Success Factors All rights reserved. See copyright notice. Success Factors - Planning  Clearly defined hierarchy:General Time Schedule Detailed Time Schedule Installation Time Schedule  Planning started always well in advance and on site considering all the inputs from KNPP, within the Consortium and ECK subcontractors  Experience of unit outage was considered for the planning of subsequent unit outage (Lessons learned)

10. 10/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 2. PM in Modernization of NPP Kozloduy Units 5&6 Success Factors All rights reserved. See copyright notice. Success Factors – Implementation (incl. testing and commissioning)  Keep “key people”  Assignment of high qualified personnel  Improve further the implementation process, especially for repetitive Measures (Lessons learned) Unit 6 actual plan Unit 5 plan actual

11. 11/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 2. PM in Modernization of NPP Kozloduy Units 5&6 Success Factors All rights reserved. See copyright notice. Social Project Life The success of full compliance with the outage schedule was also based on the Outage Preparation Meetings during which the “main outage crew” of KNPP and ECK were gathered together in a “camp” on suitable sites in Bulgaria.

12. 12/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 2. PM in Modernization of NPP Kozloduy Units 5&6 Success Factors - Summary All rights reserved. See copyright notice. Team building process successfully realized Understanding of each others processes of working and joining the benefits Successfully overcome cultural, language and communication problems Teams have reached mutual trust between each other All these elements, which needed time to develop are the basis to assure excellent products with the required quality and on time produced by a multicultural TEAM within ECK and its subcontractors and together with KNPP

13. 13/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 3. Project Management Process Within AREVA NP GmbH Policy of AREVA NP All rights reserved. See copyright notice.  All projects will be proposed, developed and executed using processes complying with the principle requirements and standards described in the Project Management Process Manual and associated directives.  Results are typically measured in the form of cost, schedule and quality of the product together with customer satisfaction.  The Project Management Initiative group (PMI) is providing leadership and guidance in the implementation of the overall project management process, Project Risk Assessment/Management and Project Reviews/ Assessments company wide.

14. 14/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 All rights reserved. See copyright notice. 3. Project Management Process Within AREVA NP GmbH Management Attention Process (process conformance control) Process: “Manage a Project“ (standardized procedures for the project phases) Sales Project handover Initiation Planning ExecutionClosing Controlling Personnel Planning PM Training Program PM Assignment (Resources & qualification management)

15. 15/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 All rights reserved. See copyright notice. Initiation Planning Controlling Execution Closing 3. Project Management Process Within AREVA NP GmbH

16. 16/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 All rights reserved. See copyright notice. Project Controlling Phase ●Project Status Meeting No 1 ●Release of project execution ●Kickoff – meeting / instruction of team members ●Technical and commercial controlling and reporting ●Risk management ●Change- and claim management  Standardized project reporting requirements enable the consolidation of information through all business sectors and regions. 3. Project Management Process Within AREVA NP GmbH

17. 17/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 All rights reserved. See copyright notice. 3. Project Management Process Within AREVA NP GmbH Cover Page - Summary Project Status Indicator Cost & Work Progress Cost / Price Preview. On-Time Figure Risk Assessment Update Milestone Trend Cash-Flow

18. 18/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 All rights reserved. See copyright notice. ●Final Documentation ●Customer Acceptance ( Open Issues) ●Notice of Completion Final Acceptance ●Invoicing ●Customer Evaluation ●Evaluation of Experience, Lessons Learned ●Final Documentation ●Archiving End of Project ●Team Closure ●Project Closure ●Contract Closure End of Contract 3. Project Management Process Within AREVA NP GmbH

19. 19/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 4. Current Status Training and Qualification All rights reserved. See copyright notice. ► The Project Management Initiative implemented an AREVA NP wide internal training and certification program along the project managers career path. ► The policies issued by the PMI are based on the PMBoK®, the internationally most recognized standard of the Project Management Institute Inc.® ► The highest level of AREVA NP project managers requires PMP® certification by the Project Management Institute Inc.®

20. 20/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 4. Current Status Qualification and Projects All rights reserved. See copyright notice. Level I PM Basics PM Tools Nuclear Safety AREVA NP Processes SCC Export/Customs Level II Project Leadership Management Scheduling Cost Control Risk Management Intercultural Training Advanced Contract Management Level III PMP Certification (preparation) HR Policies Crisis Management Softskills for PM Advanced PM Training Project Manager Depending on criteria such as  Project value  Manpower  Organizational interfaces  Customer involvement  Technology  Schedule the projects are rated from category A to D Project Rating

21. 21/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 4. Current Status Qualification and Projects All rights reserved. See copyright notice. A B C D PM Level III PM Level II PM Level I Entry Level 2 5 10 Years accumulated Project Rating

22. 22/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 4. Current Status Year 2007 All rights reserved. See copyright notice. Level I Level IIILevel II AREVA NP GmbH – Engineering Services 27 22 5 Average number of Projects : 65 85% category C, D - 15% category A, B Project Managers

23. 23/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 Final Conclusion All rights reserved. See copyright notice. Let the planning happen Use proven methods

24. 24/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 Final Conclusion All rights reserved. See copyright notice. But don’t loose flexibility during execution of the project

25. 25/25 AREVA NP Bulatom Conference, Varna, May 28-30, 2008 All rights reserved. See copyright notice.