Driving Innovation and Sustainable Cost Reductions for the Nuclear Generation Sector
ScottMadden regularly provides utility cost management consulting to identify and implement cost-reduction strategies. Reach out to learn how we can assist with your operational effectiveness projects.
At a Glance
Cost Management
Implemented four industry-leading cost management processes to prevent future cost overruns:
- Contractor management
- Baseline internal staffing controls and reporting
- Overtime tracking and control
- Site and fleet “checkbook” process to address emergent financial issues
Visibility and Accountability
Helped the client prevent cost overruns by increasing the following:
- Visibility for non-budgeted expenses
- Accountability for O&M spend
- Visibility into monthly cost variances
Immediate Results
13% reduction of baseline overtime expenses within the first six months of implementation
Challenge
ScottMadden assisted a large utility’s nuclear business operations organization in implementing industry-leading cost control processes, forms, and tools. The utility cost management effort resulted in a 13% reduction of standard overtime expenses during the first six months of operation.
Process
- Deployed four industry-leading cost management processes consistently across the nuclear fleet to manage potential cost overruns. The four cost management processes included contractor management, baseline internal staffing level controls and reporting, overtime monitoring and management, and a site and fleet “checkbook” process to handle unexpected financial challenges
- Trained the fleet’s business operations personnel on the new financial controls processes
- Assisted the business operations staff to train their site and corporate managers on the new processes and reports
- Developed a road map of future cost -control processes
Result
- Increased visibility and a prioritization scheme for non-budgeted expenses
- Provided consistent site cost reporting and cost management practices
- Increased accountability for O&M spending among site leadership personnel
- Increased insight into monthly cost variances
- 13% reduction of baseline overtime costs within the immediate six months after deployment
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