1

OPERATIONAL EXCELLENCE
THROUGH QUALIFICATION AND
GLOBAL KNOWLEDGE TRANSFER






by

Phindile M. Mooketse & William Green, P.E.







2

OPERATIONAL EXCELLENCE THROUGH QUALIFICATION
AND GLOBAL KNOWLEDGE TRANSFER

Phindile Mooketse & William Green, P.E.
Eskom, Generation, Medupi Power Station, Lephalale
GP Strategies
25 Northpointe Parkway, Suite 100, Amherst, NY 14228 USA


Abstract

This paper presents a method of successful operational excellence projects and best practice
approaches employed by GP Strategies in partnership with Eskom, Medupi Power Plant (6
units of 800MW) and other power companies around the world. These best practices have
allowed power companies to realize benefits such as improvement in plant worker
knowledge retention and skills development, improved plant and personnel safety,
reduction in operation and maintenance costs and reductions in operator preventable errors.
GP Strategies, a global performance improvement company, has worked in partnership
with numerous power companies around the world to address specific workforce-related
performance concerns within power generation organizations.

GP Strategies employs empirically proven approaches and principles of Human
Performance Improvement processes to address and resolve workforce-related concerns in
all phases of the power plant lifecycle (that is, new construction, retrofit, and sustained
operations). Eskom in turn, has been in power generation for 90 years and is now
constructing two of the first super critical fossil power plants in South Africa that are the
fourth biggest in the world. Eskoms approach to operational readiness best practices is
based on robust operator qualification and enhancement of the existing operating culture
within the fleet of 14 power plants and has joined with GP Strategies for process
improvement and global knowledge transfer.

This paper focuses on the most common workforce-related power plant concerns and
presents the concerns, the resolution approach, the obstacles to overcome and the results.
The paper also highlights recommended best practice approaches based on GP Strategies
45 plus years of experience in power generation performance improvement and Eskoms 90
years of experience in power generation practices.
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Authors
Mr. William Green, P.E.
Director, GP Strategies, Amherst, NY United States

Mr. William Green is the Director of the Energy Services Workforce Development
Businesses at GP Strategies. He has over 20 years of experience in the power generation
industry in the areas of plant operations, training, instrumentation and controls, project
management and business development. He also served eight years in the United States
Navy as a Reactor Controls Supervisor and Reactor Operator/Electronics Technician. Mr.
Green holds an MBA from the University of Wisconsin-La Crosse and a BS in Physics
from the University of Minnesota-Winona. He is a licensed Professional Engineer in the
State of Wisconsin and a Certified Project Management Professional (Project Management
Institute).

Ms. Phindile Mooketse
Plant Manager, Generation Division, Eskom South Africa
Ms. Phindile Mooketse is a Plant Manager in Eskom, Generation Division based at Medupi
Power Station. She served Eskom as Operating Group Manager at Medupi where she built
the Operating Group for operational readiness towards commercial operation. Her scope
grew from heading the Operating Group to take a lead as Plant Manager, which includes
not only the Operating Group, but also the Engineering and Maintenance Groups ramp up
to operational readiness. Her experience includes serving as metallurgist in the
metallurgical research industry; she also served as Metallurgical Process Engineer in the
stainless steel manufacturing sector. She joined the power generation industry through the
chemistry field as Chemical Services Manager within Eskom, Generation Division at
Duvha Power Station. She is not only a career woman within the power generation
industry, but also thrives on the challenges of being a mother of two and a wife.
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Introduction
Over the course of the foreseeable future, the global power generation industry faces a
significant challenge in meeting energy demands. By 2040, global electricity generation is
projected to nearly double with the most significant growth expected from developing
countries. The demand that is driving this growth, the continued short-term predominance
of fossil fuel sources in power generation and the desire to control global warming are also
forcing power companies to generate electricity in a more competitive, efficient and
reliable manner. This is requiring power companies to rapidly deploy new generation
capability and, at the same time, move their organizations towards operational excellence.

Each organization must establish a strategy for achieving operational excellence based on
clearly defined metrics that are critical for successful operation and company performance.
In general, an operationally excellent power-generating organization is one that can operate
and maintain the plant in a safe, efficient, cost-effective and reliable manner. The three
major factors that contribute to performance and operational excellence in a power plant
environment are the:
People that operate and maintain the plant
Processes instituted to govern operation and maintenance of the facility
Technology deployed and leveraged at the plant

Once the plant design has been established, the major technology decisions that impact
performance are made. The exceptions are technological improvements, which are
considered as they become available, and add-on technologies that can help maintain
design performance. However, the organizations people and processes are, and will
remain, the most significant controllable contributors in determining whether the
organization can and will achieve operational excellence.

Many challenges work against organizations striving to achieve operational excellence.
They include, but are not limited to, qualified labor shortages, loss of legacy skills and
knowledge within the organization through attrition, knowledge transfer issues due to
generational differences and rapid technological advancements. This paper focuses on
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strategies to overcome many of these challenges so that organizations can achieve
operational excellence in part through qualification and global knowledge transfer.

This paper examines methodologies recently employed at a new build project seeking to
drive operational excellence from the onset of commercial operation. These methods
employ performance improvement processes and global knowledge transfer in the design
and development of training and qualification programs to qualify competent operators to
safely, reliably and efficiently operate and maintain their power plants.

1. Methodologies Employed in Global Knowledge Transfer for Operator Excellence
Methods used for global knowledge transfer include the following:
Defining performance expectations
Defining industry best practices
Defining the future state

1.1. Defining Performance Expectations
No two power generation companies are identical; although they face similar challenges,
each operates at a specific time in the lifecycle of the company or plant, and has unique and
specific challenges that need to be identified, quantified and addressed. Each also operates
in a unique environment from a competitive perspective.

Based on these market and competitive considerations, senior leadership within the
organization typically identifies critical metrics or Key Performance Indicators (KPIs) that
are used to define the companys measure of success. They also must establish measurable
and achievable targets for these KPIs, which become the measure of success within the
organization that, in turn, drives performance expectations and operating models
throughout the organization.

1.2. Defining industry best practices
In competitive market environments, benchmarking is often employed to support
establishment of targets. In this paper, benchmarking is defined as comparison of best
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practices within the same industry to define best practices and identify areas for
improvement. Companies essentially examine the KPIs critical to success within their
industry and identify those companies that do it better than anyone else. This is classified as
best in class or the target for excellence and the goal of other competing organizations to
attain or exceed.

GP Strategies, in partnership with power-generating companies around the world, has
integrated the processes of benchmarking and assessment to drive operational excellence
with power plant operating environments. The assessment employs a systematic project
approach to:
Identify best-in-class practices within comparable organizations in the power generation
industry
Identify issues that are inhibiting or preventing the assessed from achieving best-in-
class performance in areas addressed by the assessment
Design and prioritize improvement initiatives that remove barriers and implement
processes that will enable the organization to achieve consistent and sustainable best-in-
class performance
This paper examines the results of an assessment conducted in South Africa, Eskom
Medupi Power Plant. The study identifies key, unique characteristics of the Medupi
operational readiness program; problems and concerns that drove the organization to pursue
the assessment approach; key findings of the assessment; and the solutions recommended
and employed.

1.3. Defining the future state
GP Strategies utilizes the assessment process to identify the current state of the
organization per the scope of the assessment and to define this desired future state based on
the best-in-class benchmarks and expectations of the organizations leadership. Once
defined, gaps between the two states are identified and prioritized, creating a recommended
plan for improvement and global knowledge transfer. In this case, the combination of best-
in-class benchmarks, GP Strategies experience and industry data, and the Learning
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Enterprise Operating Model defined by Eskom determined the desired future state of the
Medupi Operating Organization. Figure 1 is a model designed for the purpose of the study
of global knowledge transfer specifically between Eskom and GP Strategies as designed by
Mooketse and Green.

Figure 1: Global Knowledge Transfer

In the Medupi example, major stakeholders in the achievement of global knowledge
transfer are the Learning Enterprise, which is Medupi in this paper, GP Strategies as the
Performance Improvement Expert and the international best-in-class practices identified
from benchmark exercises. To efficiently and effectively coordinate the achievement of
performance improvement and global knowledge transfer, an improvement program must
be established with commitment from all stakeholders.

GP Strategies defines this improvement program through execution of the assessment. This
assessment is typically focused on those areas that most impact performance and is
influenced by what is already inherent to the organization prior to the assessment. The
model in Table 1, as developed by Dr. Thomas F. Gilbert, categorizes the factors that
influence human performance. The percentages attributed to each area are based on data
collected by Harold D. Stolovitch and Erica J . Keeps while performing Human
Performance research. The assessed areas are those items that GP Strategies typically
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evaluates at most power plants. GP Strategies utilizes this model to assess power-
generating plant operating organizations for best-in-class performance and improvement
opportunities from the people and process perspective.

Key Performance Area
%
Weight
Key Performance Indicators
E
N
V
I
R
O
N
M
E
N
T

Information 35%
Quality of training materials
Quality of plant operating instruction
Quality of plant reference materials
Resources 26%
Quality of training facilities
Quality of job aids
Availability and expertise of plant
experts/mentors
Incentives &
Consequences
14%
Leadership commitment to
excellence/improvement
Pay for skills programs
Career path opportunities
I
N
D
I
V
I
D
U
A
L

Knowledge & Skills 11%
Power plant fundamentals knowledge
J ob position knowledge and skill
Procedure knowledge
Capacity 8% Ability to learn
Motivation 6% Individual drive

Table 1: Factors That Influence Human Performance (Dr. Thomas F. Gilbert)

1.4. Eskom Medupi Operating Model - The Learning Enterprise
GP Strategies partnered with Medupi Power Station while Medupi was in the construction
phase of the project. This project, when completed, will be the fourth largest coal-fired
power plant in the world (at the time of compilation of this paper). Medupi is one of South
Africas national interests in which the upcoming commercial operation of the plant is of
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paramount importance to meet the countrys electricity demand. Operator readiness plays a
key role in achieving operational excellence to ensure sustained commercial operation
expectations and to alleviate pressure in the South African electricity grid.

Partnership with GP Strategies was initially driven by the unique challenges that Medupi
had to overcome during the ramp-up period to commercial operation. Those challenges
include:
Utilization of new power plant technology and a new control system in the entire
market of power plant technology
Creation of an entirely new operating organization within an absolute scarce skills
market
Training and development for novice operators with no prior work experience
Requirement to design site-specific training qualification and an established training
program to achieve competencies
Strong pressure on the company to maintain a schedule to operate the plant safely,
efficiently and reliably from the onset of commercial operation and throughout the
expected life of the plant

Medupi employed a rigorous assessment process when hiring new operators to staff the
plant. This process was put in place to ensure that chosen candidates had the capability to
learn efficiently how to operate a power plant and had the necessary psychological traits to
effectively operate in this environment. However, due to plant operator skills being
absolute scarce within South Africa, all chosen candidates had never operated a power plant
and are dominated by the generation Y demographic. These employees have the capability
and demeanor to learn the necessary skills to be successful, but they have limited
experienced resources to draw upon due to the new technologies employed at Medupi.

At all power plants in South Africa, Eskom employs a standard process for qualification for
the power plant operators within the National Qualification Framework (NQF); however,
from the Medupi perspective, this framework addresses only the fundamental generic skills
and knowledge necessary to operate the plant. Medupi-specific knowledge is a critical
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factor for operating the plant safely and efficiently, but it is not a component of the standard
qualification process within the NQF framework. To support the qualification framework
for operator competency, Medupi placed their operators at one of the Eskom plants that was
operational to gain some coal-fired power plant operating experience. This method proved
valuable from the perspective of enabling operators to gain job-related experience at a
power plant. However, these plants are not of the same size or design as Medupi and did
not address Medupis training challenges holistically.

Original Equipment Manufacturers (OEMs) were also contracted to provide training to
Medupi operators with the intent of driving operator competency. Following the initial
sessions with the main OEMs, operating leadership identified gaps and inconsistencies in
trying to merge the three interventions of qualification; NQF, on-the-job operations training
at an Eskom plant, and OEM training. Operating Fundamentals and Eskom Reference Plant
Training had occurred, but it equipped operators with only relevant competencies of the
plant they were trained at and with related experience. OEM and other third party training
was identified as ineffective in achieving Medupi-specific competencies for operational
excellence. These three interventions proved valuable in equipping operators with plant
knowledge and related experience but could not close the gap on plant-specific
competencies.


1.5. Best-in-Class Design - International Benchmark History
Medupi and GP Strategies initiated an assessment and benchmark project utilizing power
plant operations and training experts with 20-plus years of industry experience. The
assessment includes:
The collection of best-in-class benchmark information for plants of similar size and
design. In some cases, different plant designs are also considered if best-in-class
information can be leveraged to the benefit of the learning organization. For
example, in this case, nuclear training programs were benchmarked as the best-in-
class example
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Interviews with management and staff personnel to assess commitment to the
initiative, perceptions of process and personnel, level of skill and knowledge in a
particular job category (including fundamental knowledge level) and to attain buy-
in with the process
Review of all applicable processes that support the organization and execution of
the organizations mission
Review of all applicable technologies, reference materials, training program
documents, training aids and other materials that support the development of the
organizations personnel. In this instance, this included:
Power plant simulator and supporting information
Existing qualification standard
Current and planned training materials
Current and planned reference materials

The process of identifying, collecting, sorting and assessing data and the 30-plus interviews
conducted was completed in three weeks. This data was then compared to benchmark best-
in-class criteria, and two organization states were identified: a present state organization
that characterizes the organization today and how the organization will most likely operate
in the future without intervention and a future state organization that characterizes how the
organization would like to operate by employing best-in-class processes and tools to
support them. With these two states identified, a gap between the two states can then be
documented and a plan recommended for migrating the organization from the present state
to the future state.







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The actual assessment performed is proprietary to Eskom and is much too comprehensive
to include in this paper. However, a summary of selected outcomes is shown in Figure 2.


Figure 2: Summary of Assessment Results on Medupi Power Station

Medupis assessment results are somewhat typical of new construction power generation
organizations in the early stages of construction. Plant design, engineering, procurement
and construction are the priorities, and training and operating processes can often take a
backseat to these priorities. However, if these items are not addressed in a timely and
focused manner, they will severely impact the plant in meeting its operational and
efficiency goals early in plant life and, in the worst cases, can result in significant damage
to the plant and/or severe injury to personnel. GP Strategies proposed an aggressive
approach to improve the skills, knowledge and operating capabilities of the companys
operating organization. Recommendations were based on best-in-class practices as follows:

1.6. GP Strategy Empirical Methods/Principle - Performance Enhancement Expert





0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Personnel
Knowledge
Training
Support
Operator
Conduct
Simulator
Evaluation
Medupi Target Industry Norm Medupi Current
Rationale on KPI Assessed
Personnel Knowledge: Comparison
based on operation plants versus
Medupi trained personnel
Training Support: Comparison of OEM
offered training, requalification and
internal training
Operator Conduct: Comparison of
control room conduct internationally
versus Medupi current
Simulator Evaluation: Comparison on
simulator capabilities internationally
versus Medupi current

Team Training
Method
Medupi training style focused on a group training method. The
group training method was also evident during OEM training. GP
Strategies introduced training on shift to improve teamwork while
improving on-shift communication. In adoption of global
knowledge transfer, Medupi chose the GP Strategies on-shift
training method. This new on-shift training method has been in
force since J uly 2013, focusing on training teams made up of shift
manager, supervisor/senior controller and field controller.

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Equipment
& Process
Control
Use Procedures &
Conduct Pre-Task
Briefing
Monitor Critical
Parameters &
Perform
Independent
Verification
Communicate
Vital Information
Recognize and
Respond to
Abnormalities
Oversee
Maintenance,
Modification &
Testing
Record Logs &
Perform Shift
Change
Continual
Training
Continual training is termed refresher training as per Eskom norm.
This type of refresher training is based on completing a set scope
over a period. GP Strategies introduced formally planned cycles
training documented and conducted to operate commensurate with
on-shift operating. Cycles training spans a two-year period
culminated by comprehensive written exams, job performance
measures and evaluated dynamic simulation scenarios. This type of
training platform will also support Medupis plan of introducing the
fossil fuel licensed operator (which is currently only at nuclear
plants).
Operator Skill
Enhancement
The current eminent method at Medupi was based on plant
fundamentals, technical theory and practical training. GP Strategies
introduced operator skill enhancement to enforce operator conduct
without relying on operator theoretical-based competence. This
operator enhancement is called Vital Operator Skill Training
Strategy (VOSTS). This training strategy promotes a systematic
approach to equipment and operation on the topics reflected in
Figure 3: Some of these topics are covered in Eskoms processes
and are addressed through local theoretical process training;
however there was limited focus on this theory in practice.
Figure 3: Vital Operators Skill Training Strategy


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The Medupi operating organization employed GP Strategies to assist with the management
and implementation of the recommendations as described in the preceding section, with
slight modifications. Medupi placed the operating organization on shift to enhance the
training and team-building process. GP Strategies deployed training and mentoring staff to
support the development and implementation of the continuous training program. The
training program employed is a blended training program prioritized based on the areas
most vital to plant operating competency and consisting of:
E-LearningFundamental training as part of refresher training to enhance operator
insight
Medupi-specific trainingClassroom fundamentals and site-specific training,
including field walk-downs and exercises (site-specific training and competency
exercises)
Plant simulator scenario trainingSite-specific training and competency exercises
based on tasks and including evaluations (competency assessment)

1.7. Results - Global Knowledge Transfer in Practice

At the time of paper publication, we are early in the implementation phase of this
improvement initiative with limited data on improvement results. Therefore, the results are
segregated into initial phase and long-term success criteria.

1.7.1. Initial Phase
Process improvement and expansion of the global knowledge transfer process were
implemented at Medupi following the analyses of the Learning Enterprise (Medupi), best-
in-class (international benchmark) and empirical proven methods of the performance
enhancement expert (GP Strategies). The most prominent improvements implemented
worth noting are introduction of:

On-shift operating and training
Continual training platform on cycles
Adoption of vital training strategies
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On-shift operating was planned to be introduced at least three months prior to when 24/7
operations would be required at the plant. Based on GP Strategies experiences and best-in-
class practices, on-shift operating had to be introduced shortly after completion of the
assessment. On-shift operating promotes teamwork within shifts as opposed to teamwork
within the much larger operation group. This benefits shift teams for when they run the
operating plant. This strategy is most relevant to new builds in preparation for operational
readiness.

Establishment of the continual training platform creates a culture of retention and learning
following initial training and throughout the life of the plant. Additionally, it enables the
team to train on shift and it provides a blended-training approach through 14 cycles of
education. Embedded within the continual training platform is a culture of operating within
the established five principles of operating: monitor, control, approach, teamwork and
understanding. These principles together with GP Strategies training style cascade into vital
operating by design.

1.7.2. Long-Term Success Criteria
Long term, the goals of this program are the creation of competent operators and the
continued safe, efficient and reliable operation of the plant post-commission and well into
the future. By establishing best-in-class, site-specific training and qualification programs
with site-specific reference materials developed for operations and with expectations of full
participation in continual training, knowledge, skill and retention goals will be achieved
and competency will be maintained and enhanced.
As discussed earlier in this paper, the establishment and tracking of KPIs by leadership in
the Operating organization will be the true measure of success. For example,
Equivalent/Energy Availability Factor (EAF) and Equivalent Forced Outage Rate (EFOR)
are to industry accepted and benchmarked KPIs that can be used to help measure success
of this program.
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Once the units at Medupi are commissioned and begin commercial operations, Medupi
senior leadership plans to establish and meet Medupi specific KPIs based on both global
and Eskom benchmarks. The operations excellence and global knowledge transfer
initiatives are expected to be significant contributor towards meeting and exceeding these
KPIs such as unplanned failure/shutdown rate as reflected in figure 4 below. This is based
on human error related failure reduction.

Figure 4: Industry norm unplanned failure rate and Medupi forecasted unplanned failure rate

1.8. Conclusion
GP Strategies has been driving performance improvement in the energy industry for over
45 years. GP Strategies helps the power industry worldwide identify best-in-class
benchmarks, impediments organizations have in achieving best-in-class operations and
partners with them to plan and execute operational excellence programs.

At Eskoms Medupi power station, the Medupi-GP Strategies partnership is having a
positive impact. Not only have new processes been introduced and global knowledge
transfer accelerated, but the partnership is also driving a new generation of power plant
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Y1 Y3 Y5 Y7 Y9 Y11Y13Y15Y17Y19Y21Y23Y25Y27Y29Y31Y33Y35Y37Y39
U
n
p
l
a
n
n
e
d

S
h
u
t

d
o
w
n

SA Norm
Medupi as planned
Medupi with no Global Knowledge tranfer
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39
Years


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workers to excel in the operations and daily maintenance of the new, state-of-the-art power
plant.

The true measures of success will occur when Medupi achieves commercial operations. GP
Strategies looks forward to updating the industry on these results.