Nat Eng Presentation

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A BNFL Group company
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Maintaining Operational Excellence During Major
Change
Ric Pérez Sr. Vice President Nuclear Services
March 6, 2004
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Agenda

• Some Shared HistoryGrowing pains and views of
  the future
• Our EvolutionFacing the demands of change
• Making It HappenReal re-restructuring
• In Phase for the future?

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Westinghouse Today Sharpened Focus
The new Westinghouse will be the supplier of
choice in serving the worlds growing need for
energy with leading-edge nuclear technology

• 9,000 employees worldwide
• Providing technology for more than 50 of the
  worlds commercial nuclear power plants
• Long history of innovation accomplishment

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In Phase in History Westinghouse ASME
1880s-1960s George Westinghouse U.S.-Centric
Pillars of Technology Catalysts for growth of
industrial infrastructure
1960-1990s Abrupt cultural shifts Declining
industrial base Globalization Increased pressure
from markets
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Westinghouse Nuclear Corporation to Company
Then
Now

• Part of large U.S. industrial conglomerate
• World leader in development of nuclear power
• Organized around products
• Internally focused
• Mostly U.S.-based business
• 30-something workforce

• Part of integrated, European nuclear group
• Smallest of 3 global companies in nuclear
• Growing business in a flat market
• A generational transformation is under way among
  the workforce
• Becoming a customer-focused operation culture

Found ourselves in a rapidly declining nuclear
industry WE HAD TO CHANGE!
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The Road to Change Westinghouse Nuclear

• Could only take necessities
• Leading-edge technology
• World-class workforce
• Safety culture
• Had to face facts
• No new build in U.S.
• More demanding customers
• Laissez faire view toward costs

• Because Barriers Were Real
• Bad corporate image
• Ethnocentric view of world
• Internal focus
• Top-down culture

• On The Other Side
• Running a global company
• Building transparent close-knit relationships
  with customers
• Teamwork has become fundamental
• Efficient cost structure
• Rejuvenated operational processes

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How Were Getting There Real Re-Structuring

• Leadership Values Modeling
• Laser Focus on Customer and Innovation
• Clear Roles ResponsibilitiesCreating an
  inter-dependency company-wide
• Well-Defined Goalsshared with everyone, again
  and again
• Timely Line-of-SightNew tools for constant
  measurement accountability

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Playing to Win Our Nuclear Services Model
Key principle Customer-Focused Delivery
Customer
CPMs
World-class Technology
GPMs
Quality Delivery

• Built up and empowered our Project Managers the
  Team on the Field
• Developed new tools and support structure

• Designed Customer Project Manager role The
  Quarterback
• Created Global Product Manager role Coach in
  the Press Box

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Westinghouse Nuclear Services
As the Westinghouse Nuclear Services
organization, we will leverage our local
presence, global resources and capabilities, to
deliver seamless, best of class, customer-focused
solutions to the nuclear marketplace worldwide.

• Engineering Services
• Field Services
• Repair, Replacement and Automation Services

Nuclear Services 900M/p.a.
Core Goals
Develop Industry-Leading Technology and Solutions
Create Success for Our Customers
Achieve World-Class Safety Performance
Achieve Consistent Long-Term Growth
Achieve Flawless Performance
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Making it Work Sharing Ownership

• How to get everyone to live the new model
  without disrupting customer care levels?
• Build your change process and tools to offer a
  clear line-of-sight from organizational vision
  to each persons objectives
• Five core goals get engineered into relevant,
  tactical approaches for every operation, across
  the organization
• Reinforce through leadership and continuing
  investment in people
• Reward and celebrate excellence
• Measure, measure and measure again

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We Are Still on the Journey, But

• We are doing twice as much business as we were in
  1999
• Our global operating model is in place,
  featuring
• Local CPMs and PMs delivering on all continents
• Increased R D, unveiled more than 50 new
  products last year alone
• We share everythingproductivity increased by 10
  last year
• Launched Customer 1st in 2003, delivering
  systemic tools for enhancing Ease-of-Doing-Busines
  s Quality for our customers

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Parallels with ASME
Technical Stakeholders Heritage Customer
Outcomes Interdependency are Vital Generational
Shift Need for Growth

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Why Is Westinghouse Here Tonight?

• Our Pasts have been in Phase Our Futures Should
  Be As Well!
• We need a vital ASME to
• Help our employees grow
• Share global best practices
• Promote technical excellence and standards

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A BNFL Group company