# Presentation: 479192

## Slide 1

## Y-12 Strategic Plan – 2006

**Objectives:**
- New vision and strategic plan
- Boldness; embracing change
- Challenging goals
- Simplicity
**Process:**
- Full Leadership Team participation
- Planned workshops and assignments
- Senior Leadership Team Offsite
**Key Situational Factors:**
- Nuclear Posture Review
- Transformation of the NWC (Complex 2030 vision)
- Continuing instability and military conflict
- Global energy situation

## Vision, Mission and Core Values

**Vision**
- Internationally recognized as the Uranium Center of Excellence, the Y-12 National Security Complex consistently provides responsive, innovative, and cost-effective national security solutions to meet the needs of the United States and its allies.

-  Safety and Health
-  Integrity
-  Excellence

-  Simplicity
-  Teamwork

**Mission**
- The Y-12 National Security Complex provides manufacturing, technical, and scientific expertise to sustain a U.S. nuclear deterrent, reduce the threat from weapons of mass destruction, supply nuclear material to the Naval Reactors Program, and provide solutions to other emerging national security challenges.

**Core Values**

-  Accountability
-  Leadership

## Strategic Objectives and Champions

***1: ***Ensure the safety, health, and protection of workers, the public, and the environment.
- 	*Michelle Reichert, Env. Safety & Health*
***2: ***Ensure the protection of the Y-12 National Security Complex.
- 	*Butch Clements, Safeguards and Security*
***3: ***Acquire and sustain a highly educated, skilled, experienced and collaborative workforce.
- 	*Debbie Shecterle, Human Resouces*
***4: ***Meet our customers’ cost, schedule, and quality expectations for products and services.
- 	*Bill Reis, Defense Programs Mgmt.*

## Strategic Objectives and Champions

***5: ***Create an efficient, effective and less risk–averse enterprise through simplified business and management processes.
- 	*Scott Baker, Business Systems*
***6: ***Broaden the role of the Y-12 National Security Complex in providing solutions to national security challenges.
- 	*Randy Spickard, Natl. Security & Dev. Programs*
***7: ***Transform the site, facilities, and infrastructure to become a smaller, responsive, cost-effective enterprise.
- 	*Tom Smith, Modernization*
***8: ***Achieve national and international recognition as the Uranium Center of Excellence.
- 	*John Gertsen, Engineering*

## Strategic Plan Implementation

- Objective; responsible for implementation
- Implementation plans contain actions, responsibilities, resources, schedules, and performance metrics
- Implementation plans integrated with overall organizational commitments
- Overall implementation status tracked and reviewed quarterly by the senior Leadership Team champion assigned to each strategic management team

## Y-12’s Birds of Change

**Y-12’s Birds of Change**

**Notes:**

Why modernize Y-12?

Key component of Complex 2030

Create an agile and responsive facility that raises efficiency and productivity so that we are the best stewards of the taxpayers’ money that we can be

Continues the tradition of Y-12 being a cornerstone in the nation’s nuclear deterrent. We came through for the country in WWII and the Cold War, and we are prepared to help win the war on terrorism.

## Alternative Financing

**Alternative Financing**

**    ****Jack Case Center**

** **540,000 ft2 of new facilities built by private sector, leased to Y-12
-  Offices, medical, cafeteria, visitor center, light laboratory space
-  Groundbreaking in December 2005 with occupancy in Summer 2007

**New Hope Facility**

**Notes:**
The sprawling, three-story, 450,000 square foot Case Center will contain office space for 1,200 people, a new cafeteria, a new occupational health center laboratory space and conference space.
Employees currently housed in more than 20 separate buildings, will move into these new facilities, which will allow Y-12 to tear down a large number of obsolete, inefficient 1940’s era facilities and radically reduce the Y-12 site footprint.
The new buildings are being built with private-sector financing totaling more than $125 million and over the next 25 years this approach could save nearly $100 million in reduced operating, maintenance and renovation costs.  The two buildings, which are being treated as one project, are more than 58 percent complete and the work is slightly ahead of schedule. Construction is expected to be completed in late summer 2007.
Through late the end of, more than 250,000 man-hours had been worked with no lost time injuries.
Energy conservation measures were at the forefront of the design of both buildings. The New Hope Center and the Jack Case Center both utilize many energy conservation measures. The New Hope Center is also a LEED (Leadership in Energy and Environmental Design) Certified project, meeting all the requirements set forth by the U.S. Green Building Council.

## Y-12 Modernization: HEUMF Project

**Y-12 Modernization: HEUMF Project**

**2004**

**2006**

**2007**

**2008**

**2010**

**2005**

**May 2004**
- Earthwork
- construction

**2005**
- Facility
- construction
- begins

**July 1-Sept. 30, 2006**
- 35 wall pours

**Late 2006**
- Installation of electrical and mechanical

**2008**
- Facility
- completion

**2010**
- CD-4
- start of
- operations

**Early 2006**
- Facility
- construction
- halted

**Notes:**
By finishing the HEUMF, we are fulfilling NNSA’s desire to consolidate its HEU holdings in one place. Currently, the project is approximately 35 percent complete. 

When this $520 million project is complete, a 90 percent consolidation of NNSA’s HEU areas. We will reduce our highly protected area from 150 acres to 15 acres. We will reduce our active footprint by 50 percent by 2013

## Y-12 Modernization: UPF Project

**Y-12 Modernization: UPF Project**

**2006**

**2007**

**2008**

**2009**

**2010**

**2011**

**2012**

**2013**

**2014**

**2015**

**2016**

**2006**
- CD-1
- Submitted

**2007**
- CD-1
- Forecast
- Start
- Preliminary
- Design

**2008**
- CD-2
- Start
- Final
- Design

**2009**
- CD-3
- Start
- Con-struction

**2014**
- Startup/Readiness Activities

**2016**
- CD-4
- Start of
- Operations

**Enriched Uranium Total Cost**

**Notes:**
Since the CD-1 package was submitted to NNSA in February, the team has been hard at work on the major components of the new approach. A project assessment was conducted in April 2006 by a team of senior executives from Bechtel and BWXT.
One of the significant recommendations stemming from that assessment was to staff all key project team positions with personnel who have substantial engineering-procurement-construction experience on large, complex projects.
Toward that end, the project has new management under John Howanitz, a 25-year Bechtel employee who comes to Y-12 from the Nevada Test Site, where he served as Assistant General Manager for NTS Operations.
Proven and robust EPC systems, processes, procedures, and integrated automation and software tools are being studied and implemented as potential UPF standards for all aspects of project execution, including project management, design, quality assurance/control, procurement, construction, subcontract management, and commissioning. 
Throughout May and June the project team continued efforts to develop high-quality design criteria documentation. A large, cross-functional team worked long hours to define the design requirements for all aspects of the facility and document the information that has been learned over the last year of conceptual design effort.
The preliminary facility design criteria sections were issued on schedule to NNSA on June 1. The team then completed the preliminary process design criteria sections, which were submitted to NNSA on June 30.

## Reduction of highly protected area from 150 to 15 acres

**Where We’re Going**

**2006 **

**2020 **

**Notes:**
We will reduce our highly protected area from 150 acres to 15 acres
We will reduce our active footprint by 50% by 2013
Future production operations will be housed in 3 facilities; the 2 turtles and a proposed Consolidated Manufacturing Facility (for non-SNM production)
The 2 new Alternatively Financed facilities will replace all administrative/technical facilities on the east end of the plant