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05/09/2014

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Introduction

The Nuclear Decommissioning Authority (NDA) is a new organisation. It was set up by the
government and started to operate in April 2005. Its purpose is to create a UK wide plan to clean
up existing public sector nuclear sites. The business of the NDA is environmental restoration.

On 29th November 2005, the Prime Minister Tony Blair announced a wide-scale review of
the UK\u2019s future energy needs to specifically look into the option of building new nuclear
power stations. The results of the review were published in the summer of 2006.

Nuclear power is an important source of energy in this country, accounting for about 20% of
energy supplies. This figure is small when compared with a country like France that generates
almost 75% of its energy needs from nuclear power stations. It is important for Britain to
develop new energy sources because oil and gas supplies are declining. Before it does so,
however, it is important to make sure that existing sites are cleaned up safely.

This case study shows how the NDA is working to a well-organised planning framework to
achieve its objectives. To understand the process of nucleardecommissioning, it is helpful
to look at the life cycle of a typical reactor site.

Management by objectives
Everyone that works for an organisation or is involved in implementing a plan should have a
clear idea of where they are going. They need a sense of direction. The principle behind
Management by Objectives (MbO)is to make sure that everyone in the organisation
has a clear understanding of the objectives of the organisation and their responsibilities in
achieving those targets.

You can easily see how this relates to the NDA. The NDA has a clear sense of direction which
is set out in a mission statement. The mission and the objectives associated with it are
then communicated to everyone involved in the process of environmental restoration.

The MbO process can be seen as a cyclical one. An overall sense of direction is given through a
mission statement (overall purpose). This makes it possible to establish objectives. Progress in
meeting objectives is monitored and evaluated so that managers can see if targets have been
achieved. This is then used to check if any of the original objectives need to be adjusted.

113
The business of nuclear
decommissioning
www.thetimes100.co.uk
CURRICULUM TOPICS
\u2022 Strategy and tactics
\u2022 Mission
\u2022 Organisational objectives
\u2022 Stakeholders
GLOSSARY
Environmental
restoration: cleaning up

the environment, improving
the environment, returning
it back to its natural state.

Decommissioning:to
take out of use or service.
Management by
Objectives (MbO):

establishing clear objectives
to guide the actions of
managers. Establishing
clear objectives as part of
an organisational plan.

Mission statement:a

short document, often only
a few sentences, setting out
the purpose of an

organisation.

its work is therefore
environmental
restoration

UK Government
sets up
NDA (April 2005) to

create a national
plan for cleaning
up nuclear sites

The life cycle of a typical nuclear reactor site
Consent to construct
This includes all clean-up of radioactive and other material and progressive dismantling of the site.
Construction
Operation
CommissioningRemoval of spent fuel
and nuclear waste
De-licensing closure
Dismantling
Care and maintenance
Decommissioning
NUCLEARDECO
MMISSIONING
AUTHORITY
114
Mission and organisational objectives
Mission
The NDA has established its mission as:\u2018to deliver a world class programme of safe, cost-
effective, accelerated and environmentally responsible decommissioning of the UK\u2019s civil
nuclear legacy, in an open and transparent manner and with due regard to thesocio -
economic effectson our communities\u2019.
What does this mean in practice? It is helpful to look at some of the component parts of the
definition:
\u2022Safe \u2013 safety is the number one priority in decommissioning nuclear sites. This includes the
safety of the people carrying out the work and the local communities.
\u2022Cost effective \u2013 carrying out the work using contractors who provide good value for money

(coupled with safety). Giving the best possible value to the taxpayer.
\u2022Environmentally responsible \u2013 using the best available environmentally-friendly techniques.
\u2022Open and transparent way \u2013 keeping nothing secret, engaging the public and other

stakeholdersin conversations about the process and future plans and objectives at all
times.

\u2022Socio-economic effects on communities \u2013 looking at how closing down plants will affect the livelihoods of people that work in the plants and in local businesses and looking to reduce any negative impacts.

A mission statement:
1. gives a sense of direction
2. helps to motivate members of an organisation
3. lets outsiders know what the organisation stands for
4. shapes the values of the organisation.

The NDA\u2019s mission shapes its values, which are:
\u2022 safety

\u2022 security
\u2022 environmental protection
\u2022 value for money
\u2022 openness and transparency.

Organisational objectives
Objectives are more precise than the mission of an organisation. Well-focused objectives
usually have a number of characteristics. In business we say that objectives need to be
SMART. This stands for:

\u2022Specific \u2013 so it is clear and easy to understand what needs to be achieved
\u2022Measurable \u2013 we need to be able to measure whether the objectives have been met or not
\u2022Achievable \u2013 there is no point in setting objectives that can\u2019t be achieved because this will

be de-motivating and leave the organisation open to criticism \u2013 \u2018you failed to meet your
objectives\u2019
\u2022Realistic \u2013 the organisation needs to have the appropriate resources to meet its objectives
\u2022Time related \u2013 there needs to be a specific calendar for achieving the objectives.

NDA\u2019s core objective is to make sure that the 20 civil public sector nuclear sites are
decommissioned and cleaned up safely, securely, cost-effectively and in ways that protect the
environment for this and future generations.

If we examine this objective it is easy to see that it is:
\u2022 specific \u2013 it specifies that these 20 sites will be cleaned up
\u2022 measurable \u2013 the objective will be achieved when these sites are cleaned up
\u2022 achievable \u2013 given government support and backing
\u2022 realistic \u2013 the NDA has set out a plan to make sure that appropriate contractors are

appointed to decommission the sites
\u2022 time related \u2013 activities are scheduled for each site on the NDA's annual plan.
GLOSSARY
Socio-economic
effects:factors related to

society and the livelihood
of people e.g. job security,
well being, life chances.

Stakeholders:someone
with an interest in an
organisation or plan.
SMART:goals to be

achieved that are specific,
measurable, achievable,
realistic and time related.

www.thetimes100.co.uk
A cyclical
process - MbO
Create objectives
Evaluate performance
Monitor progresss in
meeting objectives
Establish a direction
Examples from the Decommissioning Activities Schedule for 2007/8
The NDA is responsible for creating a plan to clean up a range of sites, including:

\u2022 those nuclear sites and facilities which were developed in the 1940s, 1950s and 1960s to support the Government\u2019s research programmes and deal with the wastes, materials and spent fuels produced by those programmes

\u2022 the Magnox fleet of nuclear power stations built in the 1960s and 1970s. They include the plant and facilities at Sellafield used for the reprocessing of Magnox fuel and all associated wastes and materials.

Strategy and tactics

A useful distinction can be made between strategy and tactics. A strategy is an overall plan
which gives a sense of direction and planning framework. Tactics are the smaller steps
involved in putting a plan into action.

The role of the NDA is to create the overall strategic plan for decommissioning nuclear facilities in
the UK. The tactics, i.e. the day-to-day management of this process, is the responsibility of
contractors who manage the activities on those sites. The contractors are selected through open
competition in accordance with EUProcurement rules within a framework set out by the NDA.

It is helpful to look at a few of the most important elements of the NDA\u2019s strategy:

\u2022 The reduction of potentially high hazards, especially at Sellafield. This is the number one clean-
up priority. The NDA has established time-related objectives for this. For example, the aim is to
decommission the Magnox fleet of power stations within 25 years (providing safe waste
management facilities are available). This part of the strategy involves speeding up existing
arrangements. A business case for Government approval for this acceleration is being
prepared. Previous plans and methods involved taking up to 125 years for this process.

\u2022 Consulting with stakeholders at each site about the dates and potential uses of sites once
decommissioning has been completed.

\u2022 The NDA will be open and transparent about the process of nuclear decommissioning. It is
important that the public has as much knowledge as possible about the process. A criticism in
the past was that the general public did not know enough about the nuclear industry.

\u2022 Establishing a range of facilities to use, develop and extend the existing skills base. These
will be developed with other organisations and many will be based in West Cumbria (the
location of Sellafield). These will include:
\u2022 a Nuclear Academy to provide courses and business support training up to foundation

degree level
\u2022 a Nuclear Institute to provide high quality research and development support
\u2022 a university Chair of Epidemiology to research the impact of radiation on the workforce
\u2022 a National Nuclear laboratory to provide world-class facilities to support the industry.

All this will provide a framework for specific training courses, PhDs and innovation projects and will create a pool of world-class expertise in decommissioning. This will support the UK industry and other countries involved in nuclear decommissioning worldwide.

The proposed approach that the NDA hopes to take will involve the following stages:
i. to consult and seek agreement with stakeholders, including local communities, at each of the sites
ii. to have fully costed plans, by April 2008, for decommissioning all sites, which will then be
made publicly available

iii. to work with contractors to use innovation and new methods of working in developing the
plans. This will accelerate work without compromising on safety, security and
environmental protection

iv. to explore the possibility of fully decommissioning Magnox sites within 25 years
v. to introduce competition for the management of the sites. This will encourage innovation,
improve contractor performance and deliver best value to taxpayers.
How the objectives of the NDA impact on its stakeholders
A stakeholder is anyone that has an interest in an organisation. The NDA has a lot of
important stakeholder groups in the UK as the future of energy supply is such an important
issue.
115
GLOSSARY
Procurement:the
process of obtaining of
supplies or goods.
www.thetimes100.co.uk
NUCLEARDECO
MMISSIONING
AUTHORITY
Site
Activity
Bradwell
Completion of asbestos removal in boiler houses
Capenhurst
Demolition of redundant buildings
Sellafield
Complete removal of redundant sea pipeline and remediation of beach area

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