The document discusses how Booz Allen Hamilton can help the nuclear power industry reduce costs while improving performance and safety. Booz Allen uses proprietary methodologies and cost modeling tools to identify key cost drivers. Their Enterprise Cost/Efficiency Transformation approach analyzes capital and operational costs to identify savings opportunities through benchmarks, zero-based budgeting, supply chain transformation, and other methods. Booz Allen cites examples of helping clients in banking and manufacturing identify hundreds of millions to billions in cost savings through similar approaches.

1. DELIVERING THE
NUCLEAR PROMISE
Reducing Cost While Improving Performance
The nuclear power industry faces a time of unprecedented
challenges and vast opportunity. Pressures to reduce greenhouse
gas emissions and hedge against the cost uncertainties associated
with fossil fuels have created renewed demand for nuclear energy.
At the same time, nuclear power faces cost pressures caused by
historically low natural gas prices and technological advancements
in traditional and renewable electricity generation technologies.
To remain competitive, nuclear operators must take aim at all
addressable costs, ensuring maintenance is optimized, taking
proactive steps to minimize unplanned outages and, where possible,
reducing administrative and other overhead costs.
As captured in the “Delivering the Nuclear Promise” released
February 2016 by the Nuclear Energy Institute (NEI), there are
multiple opportunities to reduce capital and operational spending,
while improving safety and reliability.
Booz Allen Hamilton, a leading strategy and technology consulting
firm, has a long history of helping clients transform their cost
structures. We use proprietary methodologies and advanced
cost modeling tools to help decision makers identify their most
significant cost drivers.
Cost and Efficiency Transformation
Booz Allen’s Enterprise Cost/Efficiency Transformation (ECT)
approach provides government and commercial clients
with a thorough understanding of their current cost profile
to simultaneously reduce operating costs while improving
performance. Our team has a series of capabilities to support
the nuclear power industry:
• Objective-Driven Change: Transformation framework to
drive enduring change, achieving efficiencies and performance
improvements
• Financial Analytics: Analysis of capital and operational cost
data to identify and quantify cost levers by category, department,
and program
• Enterprise Benchmarks: Measure cost, headcount,
performance, and practices with comparable companies or
organizations to quantify improvement opportunities
• Zero-Based Budget: A robust bottom-up budget process
that identifies and eliminates non-value spending and ties to the
organization’s annual budget and planning processes
• Enterprise Cost Savings: A cost savings management program
and governance structure where all employees partner in pursuing
and executing savings initiatives

2. To learn how Booz Allen Hamilton can
help your business thrive, contact:
Richard Goffi
Vice President
Tel +1 703-902-5091
goffi_richard@bah.com
Inigo Ahedo
Senior Associate
Tel +1 703-902-5331
ahedo_inigo@bah.com
Christopher Carabetta
Lead Associate
Tel +1 703-377-6561
carabetta_christopher@bah.com
www.boozallen.com
Booz Allen Hamilton has been at the forefront of strategy and technology for more than 100 years. Today, the firm provides management and technology
consulting and engineering services to leading Fortune 500 corporations, governments, and not-for-profits across the globe. Booz Allen partners with public
and private sector clients to solve their most difficult challenges through a combination of consulting, analytics, mission operations, technology, systems
delivery, cybersecurity, engineering, and innovation expertise. With international headquarters in McLean, Virginia, the firm employs about 22,600 people
globally, and had revenue of $5.41 billion for the 12 months ended March 31, 2016. To learn more, visit www.boozallen.com. (NYSE: BAH)
• Enterprise Cost/Data Analytics & Modeling: Track, model, and analyze actual cost
performance, validate cost savings initiatives, and adjust budget baseline and performance
• Supply Chain Transformation: Improve efficiency and drive cost down through
strategic sourcing and Lean Six Sigma in logistics, distribution, inventory, and procurement
• Infrastructure Maintenance Analysis: Evaluate and improve planning, efficiency,
and effectiveness of preventive and corrective maintenance actions, as well as capital
investment decisions to lower overall life-cycle cost
• IT Transformation: Develop/Re-energize strategy for network architecture, hardware,
software and how data is stored and accessed across the firm
Enterprise Benchmarks to Size
and Target Savings Opportunities
Benchmarking can provide particularly insightful understanding of the organization’s
competitive position within and across industries to identify areas with biggest opportunity
for improvement. Competitive benchmarking can lend objectivity and credibility to internal
stocktaking. Leaders need to understand the art of the possible, what others are doing,
and best practices that could be applied from within and outside of their industry. Once
leaders understand their organization’s relative positioning, they must adjust their strategy
and inspire their organizations to change and, in some cases, transform. Leaders need to
convincingly make a case for change—to create the burning platform—and to define the
way forward.
Benchmarks, along with the associated baseline, arm management with data needed to
make the case for change and justify budgets and new investment in process improvement,
additional resources, and capital expenditures.
Booz Allen has experienced benchmarking practitioners with access to proprietary
databases, detailed case studies, and a benchmarking library comprising third-party data.
In cases where sufficient data doesn’t exist, we have experience in designing and building
custom surveys, conducting primary research, recruiting participants, and generating new
knowledge and insights. We can also facilitate benchmarking consortia among competitors,
and carefully handle, clean, and anonymize data for the benefit of the study sponsors.
Client Success Stories
Booz Allen has numerous success stories where our Enterprise Cost/Efficiency
Transformation approach allowed our clients to identify and execute significant savings:
• Cost Optimization for International Financial Institution: Booz Allen baselined and
benchmarked a $7 billion banking institution to optimize costs and target $400 million in
cost reductions over 3 years. We shared common “best practices” for large-scale change
implementation in areas such as HR, shared services, IT optimization, procurement and
sourcing strategy, facility optimization, and core process improvement.
• Merger/Transformation for Cost Reduction for Government-Owned
Manufacturing Enterprise: Booz Allen is partnering in the execution of the merger
and transformation of two manufacturing sites with an annual budget of over $1.8 billion.
Booz Allen developed a comprehensive cost and staffing baseline and benchmarking
and best practices analysis that allowed identification of a comprehensive and detailed
roadmap to achieve over $3 billion in targeted cost savings over 10 years.