IR 05000346/1986031

Team Insp Rept 50-346/86-31 on 861027-28.No Violations Noted.Major Areas Inspected:Internal Communications & New Mgt

ML20212C039
Person / Time
Site:	Davis Besse
Issue date:	12/10/1986
From:	Guldemond W NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION III)
To:
Shared Package
ML20212B965	List: IR 05000346/1986031 ML20212B961
References
50-346-86-31, NUDOCS 8612290372
Download: ML20212C039 (5)

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U.S. ' NUCLEAR REGULATORY COMISSION

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REGION III

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Report No. 50-346/86016(DRP)

., Docket No. 50-346 License No. NPF-3

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Licensee: Toledo Edison Company '

Edison Plaza, 300 Madison Avenue Toledo, OH 43652 Facility Name: Davis-Besse 1 Inspection At: Oak Harbor, OH Inspection Conducted: October 27 and 28, 1986 NRC Team: 1. N. Jackiw L. Reyes W. G. Guldemo 2 Approved By: . uld b /2 -/o. g Reactor Projects Branch 2 Inspection Summary ' ' %

Inspection on October 27 and 28, 1986 l' Report No. 50-346/86031(DRP))

Areas Inspected: Special team inspect',on to evaluate licensee internal communications and assess the licensee's new managemen Results: No violations were identifie i

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DETAILS a Persons Contacted Toledo Edison

• J. Williams, Jr., Senior Vice President Nuclear

• D. Shelton, Vice President Nuclear e

t *L. Storz, Plant Manager

• S. Smith, Assistant Plant Manac,er, Maintenance T. Murray, Assistant Vice President, Personnel W. O' Conner, Assistant Plant l4anager, Operations L. Ramsett, Quality Assurance Director

• M. Stewart, Nuclear Training Director T. Meyers, Nuclear Licensing, Director D. Briden, Chemistry and Health Physics General Superintendent

• R. Peters, Nuclear Licensing Manager J. Wood, Nuclear Plant Systems Director R. Flood, Technical Support Manager B. Carrick, Nuclear Facility Engineering Group Director S. Piccolo, Performance Engineering T. Chiles, Materials Management Manager

• Denotes those personnel attending the October 28, 1986, exit meetin ; 2. Background Over several years, prior to the June 9, 1986 Loss of Feedwater Event, the NRC had identified deficiencies in many functional areas at the Davis-Besse facility and in the licensee's support organizations located in their corporate offices in Toledo. In 1983 Region III and NRR Management met with senior Toledo Edison officials and requested that they develop a regulatory improvement program for the Davis Besse plan , The request was based on concerns raised by Commissioner Gilinsky during a site tour and continued Region III perception that management controls were not effectively preventing violations of regulatory requirement The Performance Enhancement Program (PEP) developed by the licensee was divided into three phases. Phase I involved training of the licensee action planning teams on the Kepner-Tregoe (K-T) problem solving and action planning trethodology. Phase II involved evaluation of probable causes identified during the situation appraisal and problem analysis steps. And Phase III involved establishment of implementation plans for corrective of root causes of problems identified in Phases I and I The licensee also developed an Interim Action Program to provide a mechanism where necessary interim actions could be identified and implemented quickly to mitigate immediate problem _ - _ -

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Periodic senior management meetings neld to monitor and assess the PEP program demonstrated that the licensee had progressed in selected areas, but overall progress was slow. In fact, a number of operational events that occurred during 1984 reflected adversely on the Toledo Edison Company's management controls and a NRC Performance Appraisal Team inspection, conducted during this time period, reenforced a number of concerns identified by Region III. A SALP appraisal in January 1985 gave Davis Besse a category 3 rating in five functional areas. Senior Toledo Edison management responded that they were committed to improving regulatory performance and outlined a number of actions being undertaken to improve performanc ~

Notwithstanding, an enforcement conference that was held with the licensee in May 1985, revealed that middle management at TECo was continuing to have substantial internal communication problems and still did not have an appreciation to promptly identify and correct regulatory problems.

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Following the June 9, 1985 event, Toledo Edison took actions to implement a new organizational structure for the Nuclear missio . Inspection Objective The objective of this inspection was to evaluate how key management personnel communicate ongoing station activities. The NRC team assessed how significant information relating to operation / design of the Davis-Besse facility is disseminated throughout the organizatio Through meetings and interviews with a cross section of Toledo Edison management personnel, the team also assessed the effectiveness of the new Davis-Besse management organization, created since the June 9, 1986 even . Management Assessment TheNRCteaminterviewedapproximatelytwentyleyindividualsfrommajor functional areas in the licensee's organization. The team fccused on the licensee's communications as a mechanism for accomplishing desired goals and resolving identified problems. In general, overall communications of the licensee's new management team appears to be good. The licensee's Company Nuclear Review Board (CNRB) has been restructured and now includes of a number of independent (outside the Toledo Edison Company)

permanent members. Over the last year, the CNRB has been meeting on a monthly basis. Reviews and evaluations are being accomplished by permanent subcommittees and the subcommittees review all the licensee event reports and reports of5 ,otential conditions affecting qcalit To assure adequate communication and interface with the plant, the Nuclear Engineering Division (NED) has been substantially consolidated and redirected. Some licensee personnel interviewed stated the most significant change in the Nuclear Engineering Division was support accountability to the plant. The new expanded departments in the NED provide expertise in the support of modifications and maintenance of

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plant systems. Performing root cause determination of equipment or system malfunctions; conducting operational assessments; controlling

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records, facility change requests, drawing controls and vendor manuals are some of the responsibilities of the Engineering Divisio The Davis-Besse Maintenance Department has been restructured to focus attention to the performance of maintenance activities at the plan Newly issued job descriptions emphasize accountability and provide assurance that all important activities are properly performed. The NRC team noted that frequent meetings are conducted within the department to enhance communications regarding ongoing plant activities. The supervisor to craftsman ratio has been improved to further enhance communications and control of plant maintenance activities. With the restructuring of the Maintenance Department, the spare parts / materials situation has greatly improved due to good management technique . A centralized Planning Department was created to establish control, coordination and accountability of all activities at the statio The department is responsible for assuring that appropriate work packages are prepared, spare parts are available, and plant conditions support performing the planned wor The team noted that, in addition to several plans of the day (P00)

meetings to status planned and ongoing work activities, the new licensee management conducts a weekly staff meeting to discuss the total work activities situation at the plant. This weekly staff meeting is very informative and is attended by upper level company official . Conclusion As a result of the inspection, the NRC team notes that the new management team has taken firm control of activities at Davis-Besse and is effectively managing the restart recovery program. While several individuals interviewed expressed concerns such as the demanding approach of the new management and the organizational stability after restart, the general consensus of all those interviewed was that the new management will succeed in safely returning the unit to power operatio In conclusion, the team found that communications in the Davis-Besse organization and the new management organization itself are effective and functioning as intended. Regarding restart of the Davis-Besse plant, the team notes that: While the necessary management mechanisms are in place, the organization has yet to prove its effectiveness during operations; thus, a cautious approach to restart must be maintained, For the program to remain successful, the levels of management and resource support must be maintained, and Once a stable environment has been achieved, it is important that the continuing effectiveness and acceptability of the change be objectively reviewed and reinforce ._

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'6. Exit Interview

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The team met with the licensee representatives (denoted in Paragraph 1)

at the conclusion of the inspection and summarized the scope and findings of the inspection activities. The licensee acknowledged the finding After discussions with the licensee, the inspectors have determined there is no proprietary data contained in this inspection repor ... . - . - - - - . - . . .-. - . . - - - - _ _ .