155. Improving Nuclear Plant Construction Processes: How to Build Projects More Efficiently

The POWER Podcast

If you have paid any attention to nuclear power plant construction projects over the years, you know that there is a long history of cost overruns and schedule delays on many of them. In fact, many nuclear power plants that were planned in the 1960s and 1970s were never completed, even after millions (or billions) of dollars were spent on development. As POWER previously reported, by 1983, several factors including project management deficiencies prompted the delay or cancellation of more than 100 nuclear units planned in the U.S.—nearly 45% of total commercial capacity previously ordered. Yet, at least one construction expert believes nuclear power plants can be built on time and on budget. “To me, nuclear should be far, far more competitive than it is,” Todd Zabelle, a 30-plus-year veteran of the construction industry and author of the book Built to Fail: Why Construction Projects Take So Long, Cost Too Much, and How to Fix It, said as a guest on The POWER Podcast. Owners have a big role to play in the process. “The owner has to get educated on how to deliver these projects, because the owner gets the value out of any decisions that are made,” Zabelle said. “You cannot just hand it over to a construction management firm and hope for the best, or EPCM [engineering, procurement, construction, and management firm]. It’s just not going to work.” “What it boils down to is a lot of people doing a lot of administrative work—people watching the people doing the technical work or the craft work—and we become an industry of bureaucracy and administration,” said Zabelle. “Everyone’s forgot about ‘How do we actually do the work?’ That has huge implications because of the disconnect between those two.” According to Zabelle, the problem can be solved by implementing a production operations mentality. “My proposal in all this is: we need way more thinking about operations management, specifically operations science,” he said. “Not that it’s what happens after the asset’s delivered, but it’s actually a field of knowledge that assists with how to take inputs and make their outputs. The construction industry doesn’t understand anything about operations—they don’t understand the fundamentals.” In Zabelle’s book, he provides a more thorough explanation of the concept. “Operations science is the study of how to improve and optimize processes and systems to achieve the desired objectives. It involves the use of mathematical models and other techniques to analyze and optimize systems,” he wrote. “It is used to improve efficiency and reduce costs, while ensuring that the quality of the output remains high. Operations science is used to improve the effectiveness of operations, while also reducing waste and improving customer satisfaction.” Near the end of his book, Zabelle noted that the time for business as usual is rapidly closing. “The pain of the status quo in construction is going to increase exponentially as our capacity to develop and execute projects falls short of expectations,” he wrote. “Until we recognize projects as production systems and use operations science to drive project results, we are doomed to failure. We need to free ourselves from the prior eras and instead focus on a new era of project delivery, one in which projects will be highly efficient production systems that utilize the bounty of the technology (AI [artificial intelligence], robotics, data analytics, etc.) we are privileged to have access to.” Zabelle sounded hopeful about the future of nuclear power construction. “I truly believe—I would actually throw down the gauntlet—we can make the Westinghouse AP1000 financially viable,” he said. “I’m happy to work with anybody on how to make nuclear competitive because I think it should be and could be.”