EDF Cost Model Development
"The cost model allowed numerous scenarios to be quickly compared, key sensitivities to be identified and highlighted timing issues associated with benefit realisation. The model outputs and clear graphics enabled production of a robust business case essential for Executive endorsement." - Andrew Coles, Programme Manager, Lifetime Programmes & Projects, EDF Energy, Nuclear Generation.
What benefits did we deliver?
- The cost model developed by BMT Hi-Q Sigma clearly highlighted the costs and benefits of a number of scenarios;
- Information on the largest risks to the successful completion of the project are highlighted, for example, points at which the project becomes unviable and areas where EDF should concentrate effort to support a viable proposition;
- A significant number of scenarios could be mapped quickly, allowing EDF to evaluate answers to “What If” questions from sanctioning bodies;
- Informed EDFs understanding of the viability of the project and informed the investment decision to proceed.
What was the challenge?
The EDF Fuel Clad Project was complex, with a significant number of interdependent variable costs, varying with time, risk or milestone dependent. BMT Hi-Q Sigma (HQS) were needed to supply clarity and direction.
What was our solution?
BMT Hi-Q Sigma was asked to build a cost model from scratch to enable different scenarios to be modelled. The model needed to combine variable data items with a user-friendly interface, enabling the input and selection of data for each scenario.
Working with the users to understand how the work elements interacted, BMT Hi-Q Sigma was able to combine its core skills in the development of unique cost models and investment analysis, systems engineering and project management to understand and logically link diverse elements together to build a robust but flexible cost model.
BMT Hi-Q Sigma provided EDF with the tools to define the points at which costs and benefits impacted on the programme and, coupled with a risk model, define a realistic benefit realisation model. This enabled a very simple net benefit to be calculated.
The cost model was developed ground up. This:
- Allowed the modelling of fixed, user variable and time dependent elements;
- Included external business decisions e.g. business decision dates, external supplier costs;
- Delivered a report covering the output of the cost model in an easily understandable format.