Development of NPPs in China
Posted on: Monday, 10 March 2008, 09:01 CDT
By Changing, Chen Huiqiang, Li
Abstract China has set a goal of large-scale, independent development of nuclear power capacity in the near future. In this context, it becomes very important to establish a pattern of project management for nuclear power engineering that will promote the growth of the nuclear power industry and improve the quality of project management. In this paper, project management in nuclear power engineering is analyzed through interpretative structural modeling. The resulting model shows that the cooperation between the proprietor (utility) and the architect-engineer (AE) company is the key to the validity of the system. If engineering and procurement (and, in the future, construction) are combined in one company, the system structure is simplified, making the management system clear and efficient. The analysis also shows that, to prepare for the upcoming period of large-scale nuclear construction in China, it will be important to encourage the development of Chinese nuclear power AE companies. This analysis has important theoretical and practical significance for optimizing project management systems for construction of nuclear power plants.
Background
By the end of 2006, nine nuclear power units had been put into commercial operation in mainland China, with a load capacity of 6,958 MW (see Table 1) [I]. Two more units (1,060 MW each) were put into operation in 2007, raising the total load capacity to 9,078 MW. Four other units are well along in construction (see Table 1). On March 22, 2006, the Chinese government approved a Middle and Long Term Period strategy for actively developing the nation's nuclear power industry, with the goal of reaching a load capacity of 40 GWe by 2020 [2]. As of the end of 2007, the government has approved four more nuclear power plants (NPPs), which are all in the early stages of construction: Yangjiang (Guangdong Province), Sanmen (Zhejiang Province), Haiyang (Shandong Province), Hongy anhe (Liaoning Province). Each of these NPPs will have two 1,000-MW units. More units have been placed on the agenda. Figure 1 shows the estimated growth in the number of nuclear power units in China through 2020. The nuclear power industry in China is entering a stage of large- scale development that will create new requirements for project management of nuclear power engineering.
Nuclear power engineering in China is conducted in various project-management patterns, though the pattern is usually one of three types: a multiple-package approach, a split-package approach, or a turn-key (engineering-procurementconstruction [EPC]) contract. This variation is due in part to the special political and economic environment in China and the immature project management market. Table 2 summarizes the features of each pattern. A common feature is that the proprietors (utilities) dominate project management while partly relying on professional architect-engineer (AE) companies and design institutes. International experience in nuclear power engineering has shown that structure of the nuclear power industry differs from the institutional structure of the commonmarket economy, and the ownership system is different as well. Therefore, patterns of nuclear power engineering vary among these three types. The AE company plays a very important role in nuclear power engineering and may work in various ways: as a dependent design organization, that is, as a "company" internal to the proprietor that coordinates the relationship between contractors and the proprietor; as a contractor for design and procurement; or even as the general contractor for part or all of the project.
Establishing an optimized and practical project management system will not only improve the profession and effectiveness of nuclear power engineering management, but also help meet the need for large- scale development of nuclear power in China. Therefore, it is necessary to study the patterns of nuclear power engineering by means of systematic engineering analysis. Our goal is to provide a reference from which the system structure can be improved and optimized.
Three-dimensional system structure model
Nuclear power plants have complicated technical structures and tremendous engineering systems. A typical PWR plant has more than 200 systems, covering several dozens of technical areas, more than 100,000 items of engineering work, and more than 10,000 interfaces. One model for analyzing these complexities is shown in Figure 2. This three-dimensional system structural model encompasses three axes that must be considered when managing the construction of an NPP: the logical structure of project management (x axis), the project life cycle (y axis), and the physical structures to be built (z axis). Physical structures can be grouped under five headings: nuclear island, conventional island, balance of plant (BOP), instrumentation and control system, and electrical system. The project life cycle in nuclear power engineering can be divided into five stages: planning and siting, design and preparation, construction (equipment manufacture, civil construction, and installation), commissioning, and acceptance [3,4].
At each project stage, the concepts of project management are applied; these vary according to the theory adopted. The methods of systematic engineering call for identification of the problem, system design and analysis, decision making, planning, and implementation. The process theory of project management identifies five standard processes: initiating, planning, executing, controlling, and closing. In the three-dimensional system structure shown, project management logic is generalized as goal, input, startup, planning, executing, closing, and output. This model provides a foundation for the factors identified in the next section.
Hierarchical structure model
Another analytical approach is to establish a step-up structure model using the principles of interpretive structural modeling. First proposed by J. Warfield in 1973, Interpretive Structural Modeling (ISM) is a computer assisted learning process that enables individuals or groups to develop a map of the complex relationships between the many elements involved in a complex situation. ISM is often used to provide fundamental understanding of complex situations, as well as to put together a course of action for solving a problem. In this two-part approach, the factors are identified, then their relationships are mapped. This approach allows investigation of the general structure of the system.
Project management for nuclear power engineering in China must consider the following general issues.
1. Engineering goals: investing, scheduling, quality, and safety.
2. Management scope: general, scope, time, cost, quality, human resource, communication, risk, procurement, nuclear safety, and interfaces.
3. Management activities: preparation activities (siting, funding, and site preparation), engineering management (engineering design and instruction on construction), quality assurance and control, procurement and contract management, licensing, equipment manufacture, construction, system and component installation, commissioning, and acceptance.
4. Main project partners: investors, proprietor, government departments, system suppliers, equipment manufacturers, construction contractors, installation contractors, AE companies, design institutes, and consultant companies.
5. Organizational structure: proprietor-contractor relationships, organizational structure of engineering management, and operational mechanism for implementing the organizational structure.
6. Environment: general public, media, national nuclear policy and strategy, nationalization initiatives, and geographic environment.
Breakdown of system factors
Following the interpretive structural modeling method, the above- listed issues were analyzed into 16 factors.
S^sub 0^ acceptance
S^sub 1^ contract type and management pattern
S^sub 2^ scheduling
S^sub 3^ quality
S^sub 4^ safety/nuclear safety
S^sub 5^ investment cost
S^sub 6^ procurement bidding
S^sub 7^ interface management
S^sub 8^ contract management
S^sub 9^ licensing
S^sub 10^ design institute(s) and AE company(ies)
S^sub 11^ proprietor/owner
S^sub 12^ commissioning
S^sub 13^ nuclear policy and strategy
S^sub 14^ nationalization decree
S^sub 15^ major engineering construction and installation contractor(s) and supplier(s)
S^sub 16^ siting and site preparation.
Factor S^sub 1^ is the prerequisite that determines the organizational structure and its operation, S^sub 10^ represents collectively the AE function in Chinese nuclear power projects, and S^sub 15^ is the appropriate combination of the project executing team or partners.
Interrelationship of factors in interpretative structural model
Figure 3 is hierarchical structural model of Chinese nuclear power projects that are conducted in a multiple-package approach. Factors involving similar issues are grouped at the same level. The top level of the structure is the construction goal (encompassing factors at sub-levels 1 through 3); the next level is construction and its activities (sub-levels 4-6); the next level is project management activities (sub-levels 7-8), and the basic level is organizational structure and environment (sub-levels 9-11).
Optimizing the structure of nuclear power engineering management From the hierarchical structure model, we can see that it is not easy to change the construction goal, the construction process, or the environment. The adjustable part is at the seventh and eighth sub-levels-the project management level. Factors in this level are determined by the micro-environment and in their turn determine the process of project execution, which is the key to structural optimization.
However, Figure 3 also points to a route to further optimization that has particular bearing on the current situation of nuclear power project management in China and its further development. The activities in factors S9, S12, S15, and S16 of Figure 3 can be merged into the functions of an AE company. The result is an EPC or general contract pattern with a simpler organizational structure and simpler interfaces, as illustrated in Figure 4.
Conclusion
A hierarchical structure was presented that describes the multiplepackage approach to nuclear power plant construction in China. The analysis shows that the structure can be optimized by consolidating AE functions. The gradual movement toward this turn- key approach, with the goal being project management by an independent AE company, is a reasonable and practical choice to support the rapid development of nuclear power in China. This approach benefits the enterprises that are ready to take part in nuclear power construction. Initially, lead AE services will be provided by foreign companies, but as Chinese design institutes participate more fully in the AE project management process, the groundwork will be laid for domestic AE companies to take a lead role in project management for nuclear power construction.
References
[1] China Nuclear Power Operation Annual Report, China Atomic Energy Authority, 2006.
[2] Plan of Nuclear Power Development for a Middle and Long Term Period (from 2005 to 2020) , THE CENTRAL PEOPLE'S GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA, http://www.gov.cn,homepage/ government affair/ department information,issued on November 2, 2007.
[3] Nuclear Power Project Management: A Guidebook, Technical Reports Series No. 279, International Atomic Energy Agency, 1988.
[4] Regulations on the Safety Regulation for Civilian Nuclear Installations of the People's Republic of China,HAF001,The State Council of THE PEOPLE'S REPUBLIC OF CHTNA,October 29,1986.
By Chen Changing and Li Huiqiang, Huazhong University of Science and Technology.
Chen Changbing
Chen Changbing, a Ph.D. graduate in engineering from Huazhong University of Science and Technology (HUST), is now an expert in the Speciality Committee of Project Management in the Ministry of Labor and Social security in China.
Li Huiqiang
Li Huiqiang is a professor at Huazhong University of Science and Technology (HUST) and president of the Green Construction Techniques and Safety of Engineering Institute of HUST. He is an expert on architectural engineering techniques for the Ministry of Construction in China, whose primary research directions include research on modern engineering management theory and application, evaluation of green construction techniques, and sustainable development.
Contact: Chen Changbing, 20 Guangshan Road, P.O. Box 74501, Wuhan, Hubei, PR. China, 430074; telephone: 86 24 81735080, fax: 86 27 81735000, email: cdl968@21cn.com.
Copyright EQES, Inc. Jan/Feb 2008
(c) 2008 Nuclear Plant Journal. Provided by ProQuest Information and Learning. All rights Reserved.
Source: Nuclear Plant Journal
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