ML20137N414

Forwards Mgt Appraisal Rept, Prepared by LRS Consultants

ML20137N414
Person / Time
Site:	Rancho Seco
Issue date:	11/30/1984
From:	Carr P SACRAMENTO MUNICIPAL UTILITY DISTRICT
To:	Martin J NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION V)
Shared Package
ML20137N417	List: ML20137N414 ML20137N437
References
NUDOCS 8509190094
Download: ML20137N414 (7)

Text

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68L3/A mov 30 ms ' / #f I SMUD SACAAMENTO MUNICIPAL UTIUTY Dl8TRICT C 6201 S Street. P.O. Som 15830. Sacramento. CA 95813. (916) 452 3211 AN ELECTRIC SYSTEM SERVING THE HEART OF CALIFORNIA 4

November 30, 1984 -

DDICNATED ORIGIITAL Cortifica Dr. /

7 MR JOHN B MARTIN REGIONAL ADMINISTRATOR REGION V 0FFICE OF INSPECTION AND ENFORCEMENT U S NUCLEAR REGULATORY COMMISSION 1450 MARIA LANE SUITE 210 WALNUT CREEK CA 94596 Enclosed is the consultant's report prepared at the request of the SMUD Board. We now have it under study and review, and are considering which recommendations should be implemented, and the schedule for implemen~

tation.

P ul Ca

• President Board of Directors

./

Enclosure cc: board Members

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'i B509190094 841130 PDR ADOCK 05000312 P PDR

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l EXECUTIVE

SUMMARY

MANAGEMENT APPRAISAL REPORT

{l FOR THE i SACRNIENTO MUNICIPAL UTILITY DISTRICT f

BY LRS CONSULTANTS 355 West 14th Street Idaho Falls.' ID 83402 -

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- NOVEMBER 1984 i

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EXECUTIVE

SUMMARY

gronsultants In'E.'(LRS) conducted an in-depth Ma{eMjt[aFraIisai for Sacramento Municipal Utility District (SMUD) of its managedient and

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its entire nuclear organization d. urin'g'..Sep'ts.nfieriniO'ctobefl98.(. . . . - . . - - - - -.

1 The ycope K ,q,, y n @ ,Qn{,porti6p of the appraisal included, but j was not limited to, eiam.1_na. tion _o.f)ersonnelfat.a1.1. le'vels, oFganizatidh

-truct0?

Y, ..

e, ap. inistrat'

. . , . . . ,lor . - qua11ficatio1s, -. ~...- ipt.er. organizational

~ . ~ . .

wortif,Ig i

relationshifs t . . .. - -

ind'ri.p.o'rtiWgTequirement5.

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The s'g6pe"of the hdclea7' organization portio.n~1. .

. . = . . . . . .

5.iflude~d -. . in;de~ptR i

1examind'Eidrfk

% ~-- of the p% ~ . ..lant . 1. organizatiom s andsadministtatidit.gm,

... :- a .. - ' .-aintenance.e i

Y'.{ations} teQni, cal-]uppop, tr4.i_njng7,an_d_qualificationsp radiologjc5 (rote..c.t. ion, chemistry;

_,. t outaTCmiinag'emeng . . .

lic.e. .ns.ing.,_emergenc.y p.l. ann.insR (enyironmental.Tquality

_. _ -. . .-- a..ssu..rance7_qu.aljtf.:contro17.

a .- ,.

procurement. stbFef.

rgords.'.m.a.nagemen_t 1h.d' docDment' c,ont i Due to the nature of apprais 1 reports such as this, which are to provide recommendations for improvement, it will appear that heavy con-centration in the appraisal and the report has been on the negative 4

aspects of SMUD's operations. Where appropriate, positive aspects are i

also noted.

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{ Infonnation for this appraisal was assembled from discussions, interviews, observations and reviews of documentation. The team members l utilized written checklists and performance criteria, based on the i

extensjve experience of the individual members and the LRS organization.

as a group, in conducting similar appraisals at other utilities. %1TIIo' ugh ,

-of the . .. findinfrof"thi~s appaiTaN.::

... ~

.:: =ye~ pen repo7t'eTln76cen

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a e{aTuktTo~nLc_o.rl d .ucted by NRA.and LNPO teamj,tt.Its bel,1eJ[s31Iak thi '.7  ;

e hepo,rt coH. u_ctively.

. u .. .:,.,,,. containofindings7nd . a .a ;.reconnendatio.n..s~'th.

. . ~.. . &T11. e. ... ..

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pljune.Wt.ed.-.4 wo;uld' resdit

_-..uWh".iit.an.dard.' .. - -

of".e.~xc.elle..n'c.E

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MUD and,Ran S(eco .better'than

-- m a the"industrf'.aVerag].

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SMUD has contributed substantially to the Sacramento area by pro-  :

viding its customers with (1b{ ate} and its employeesidth~a'ii Ex~cellent i

al The management has undertaken and accomplished _some f ace . . -to"_Wo'rk.

3 innovative programs such as photo-voltaic, geothermal and nuclear. The  :

November 5th approval of the Horthwest inter-tie is a major accomplish- '

ment that will save SMUD and its customers a substantial number of

! dollars over the years ahead. .

~ ~ 1 The determination of the team is that(SMUD iicon'froite~d~ with q

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'\arge 'spectrifm'5f'manag~em.e.nt an.d..o. rga.n. .izationirTr'obli. ms .ran.ging~frory

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'\Board of Direct 6rs/GeheraljianageF~1iterface problids~to: BeoliEentile ,

I i l ini:.....,......--erface's) t ineffective organizational strucfE.r.i.s, indiv1dQal.~an'4 i

i pipa~rti eirt1 a

.. accountaEili.'t.i.iT'and i~sjonificant 1ack of 'meticu. louse i

,a tt_enEio.n..to.deta11I..._

L l Improvements are. required in all areas covered by the appraisal as l outlined in detail in each section of this report. The following is an {

executive overview of the major concerns identified by LRS:

~

o ge~unprofessional and argumentivehla~Qonship whiih]x_Isfs  ;

~ .. . t tween the Board. .. ..n of Directors. . . . < and .. . .the .....General

- Manager'.1st

.. .. I [

wery Tie. 7 trimental-to ~..

the well-bethg uof.a'.the 1)istrict'. As

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\ndic~ated i in'this report, there are a number of improvements that must be accomplished by St1UD. Improvements of the scope and depth required can only be accomplished if there [

is a sound organization on which to build. Following this  !

in-depth investigation requested by the Board, MS m.verba11J  !

.. 1,......,....,ecomended that --t.h..e ' Gin ~6il -- MEag% ._- --- .-er'te7etained

. Tb'fbiD  !

t jhe foundation for this Trganizatiog.

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Should the present  !

Bo' aid /GNr'a'l ilinager relationship continue and cause either l the General Manager to resign or the Board to terminate his employment, tf4 ?vbseqwntJestabil.1 ring. impact thisavoule .

gave Dn an 11 ready.~ highly stretsed*1n5TrBuTled%ncho3e'To* I PJantTppea]s to be quiMTe~ aft ICs1Tch an eventMR$v wo'u13'Eive'to add a recomend.atiop_ito m_ -- -

inteffupt~46ntihu'ed I

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51MtioUntRe-signif_icant numb ~e7'ofToFrei:tive"*

' actions 4~aveNen~accor' 1Ehed t'o assure that the operation and maintenance of Rancho Seco can_be conducted safejy.

. o TheTent1FiWg'ahtiatl6n~ disp 1ays a lack,.of. undeTiHTdTnTfor

! TrginHatlonaTV2 managerial concepts',~ structures an'd nBt =

ntio'nTeg'Efred of an integrated and'Yilin~inq vtility team. * -

o IIIdWdual and deparTmintir.lic&Iunfab'il'1tyTre'.cle'a'rlyMiiing Vt;a1YYeEs~1 hWgihTz'a~tT5if. IFe?.TicEo~f.')carnlhj.from,7 .

g,[ncyjind70rsopetatlCerrots_T. n'd.thu Talik~o'f cin'd 6cting' (ndependent revfews.end analysistfy'bidbhal operational' Fo,nditions._ . . . .mist'hg._changeaQ7alitude a of conee~rn and Wi]-

j nT,ni.ss'..W_Tehr.n Yrom even, the.Tnosj,.glementari.T.

-- - - .r.obli.m'..mu.sq be 2

.evsloped. W i o The Rancho Seco organization, except in isolated cases.4oep

! glig) par to strivei for exce'11ence_.[id'Yequires exceeding ,

1

$ninimum"'industr.y~rNiu1're'mentig

,. - mu., Instead, the organization 4_u_: _.,

appears to settle (fof satisfy 1ggvinihimilmTit~iif ~info .rm.a._l..J

! E.andardst o The t%a~13m3eQc"yj the Rancho Seco organization

( W K g jhi3 ng. The heavy reliance on contractors and/or consultants clearly outlines a methodology and a i management concept that must be changed. annTr'gTnfzaEtoW.>

1 . . . , - - . . . .

~

C"'apanie

- - - - - oYTahi~g ing and solving'technicallyT6iiio1~ex problems

~ ,., . . . .

y 11~Eaiditoy'fo7he~stfe'

- > - -m and Efft

---__:. . . m, .s . . . _

c.T..i..n'tV.

..r..,,,.t.a Ton.of

- a nuclear

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{antund <a,n-+e-tetter performed'ty Ot111tf emp1bye_e,s.than, (hj:!._$r..o ..

aClors.

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E o Tlie seneral'Er~gi'rifratT6nkTattitudeit6wTr3% alit? 'Eu'rinel s 1 _-~-m..,.

MiMhOtTrigulat5ry: requirement needs to"be redirecteB.

l Quality Assurance is anwera11 managerial .meth6d6187 required to efficiently and effectively manage a complex techn61ogy by I

insistence on doing the job right the first time and then i

documenting what was done.

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o SMUD's attitude of dealing with the Efsidi siorTd'sucWs Se regulatory agencies, public and' news media has bgerl.po_n.com_-a W g-~ e and'Yoihisihat'nori-res'poniEl. An attitu'de~-bfWill-a

~,

L,;irnicat,iv,,I.

ingness h iiirnMm Ee'{iid *rFs poiid'ne'eas -tobeMin"pl e m~e nfell .

o At Rancho Seco, thT.TacTC3f adequgt_eytel13tles~ .fo'r.;tfalHlhg' D the;1ack 3 ,,,tr,ai f n ngJrograms y;Meptford icensed; ope ray, ni ,

torc _trainihT, and the dependency on contractors for implement-ation of the present programs needs to be reevaluated. A

, management attitude of excellence in operation would be evident

in the establishment of.a complete, well defined, organized j and managed training program.

o The current Rancho Seco organizational control of individual

) radiation exposures is cornmendable; however,.ptrengtFined]

j jndyaggressivegAQ~progiaiitreQWFs@th7deflMOori_ing

imanagementypportg -

i o Frequently at Rancho Seco the maintenance, operations and j supporting organizations @p programs,t6in"tge_tjr; ex,clgd 3

i

! @RulatorywgUlfementsr-but-thenMaii grams 1 This is clearly evident in the drawing control r.o.1

....e- __.,1 w a x. c o p.1June program. Meticulous attention to detail does not appear to be the normal approach to operating and supporting Rancho Seco.

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As is evident from this executive summary and is more clearly identified in the text of this report $RUD'ndeds v 1 mediately.. . . . .. .

develo'p

..~.......

and implement-a corrective ~act1on plsh~that' covers s6me' gen ~eril'afeaJ r

tuz and a l l ' a  : .;;.__,

.2. ..- n:.<a.- ---- -

- - ~ spects

. . . a.

of' its hde'.Jeaf ~operatio.@. -LRS is convinced th$t the

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resources can be made available to accomplish the programatic changes required to continue safe and efficient operation of s a E ncho-Seco if tha % .. .. 3 *

'L_o.ard~of'..D.irsdt6.rs'.;and B..- . . ~ . - , . . . . . the.' . . . .GeiieF.irMiiisgercan

. . - - - - - - - - - - - '. cooperate

. . . .in thi.s . vital ,

-~--:......

ndeavor-~'F7

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