THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700
rodwelch@pacbell.net


S U M M A R Y


DIARY: March 16, 1999 10:01 AM Tuesday; Rod Welch

History of "cost savings" efforts on Broadwater Dam project.

1...Summary/Objective
2...Seems like key events are...
.....1...Explanation of SDS and Welch methods to save money...
.....2...Sletten objects to Welch methods for saving money on 880907.
.....3...Tudor objects to good management practice...
.....4...Contractors failed to do CPM planning to save money on 880831.
.....5...Welch clarifies how to "save" money on 880925.
.....6...Sletten received $1M, 10 times more than shown by evidence, on
.....7...SDS terminated on 890324 as "overkill" - avoided cost $100K+,
.....9...DNRC "can't keep head above water" fixing mistakes by


..............
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CONTACTS 
0201 - Dep Natrl Recrs & Consrvtn                                                                                                                                     O-00000395 0102
020101 - Mr. Wayne Wetzel; Deputy Director

SUBJECTS
Case Study Broadwater Lessons Learned
Examples of Need for SDS
Broadwater Dam Case Study
Background for Case Study
Broadwater Dam Case Study Using Bad Management to Save Time and Money
Broadwater Dam Quandry on the Snake River DNRC Saves Cost of Good Ma

1008 -
1008 -    ..
1009 - Summary/Objective
1010 -
101001 - Follow up ref SDS 41 0000, ref SDS 40 0000.
101002 -
101003 - On 970827 Wayne considered doing a case study on Broadwater for
101004 - lessons learned. ref SDS 29 3136
101005 -
101006 -     [On 990323 sent Wayne a letter summarizing "lessons learned."
101007 -     ref SDS 43 0001
101009 -  ..
101010 - What do the lessons from Broadwater say about Communication Metrics
101011 - being a "gold plated" system that is "overkill" which clients will not
101012 - pay to support, as reported by Tudor on 890324? ref SDS 11 6894
101013 -
101014 -     [On 010725 received comments from Wayne, ref SDS 45 0001, and
101015 -     developed leadership issues, lessons learned. ref SDS 45 YZ4M
101017 -  ..
101018 - Do these lessons support scientific research reviewed on 990303 about
101019 - adding "intelligence" to management? ref SDS 42 6120
101021 -  ..
101022 - We have a series of case histories where SDS is terminated because it
101023 - enables good management, which is rejected as "unnecessary," then
101024 - significant folly ensues.  Can these histories be used constructively?
101026 -  ..
101027 - On 941228 PG&E cancelled abruptly. ref SDS 28 9954
101029 -  ..
101030 - On 981027 analysis revealed a...
101031 -
101032 -                      "Miracle" on Market Street"
101033 -
101034 - ... where free service and luck enabled management to realize savings,
101035 - despite persistant efforts to avoid being helped, ref SDS 38 7315
101037 -  ..
101038 - Broadwater Dam case study presents a....
101039 -
101040 -                     "Quandry on the Snake River"
101041 -
101043 -  ..
101044 - Seems like key events are...
101045 -
101046 -         [On 010725 list key leadership issues. ref SDS 45 YZ4M
101047 -
101049 -          ..
101050 -     1.  Explanation of SDS and Welch methods to save money...
101051 -
101052 -         a.  Meeting with Clyde Earnest on 880815. ref SDS 1 7301
101053 -
101054 -         b.  Meeting with Wayne on 880907. ref SDS 4 6006
101056 -              ..
101057 -         c.  Meeting with Jeff on 880908. ref SDS 5 4920
101059 -          ..
101060 -     2.  Sletten objects to Welch methods for saving money on 880907.
101061 -         ref SDS 3 3402
101063 -          ..
101064 -     3.  Tudor objects to good management practice...
101065 -
101066 -         a.  Project management understaffed, 890810. ref SDS 12 3915
101067 -
101068 -         b.  Voith unreliable on 880915. ref SDS 6 EM7I
101069 -
101070 -         c.  Engineering, scheduling waived on 880921. ref SDS 7 8526
101072 -              ..
101073 -         d.  Engineering management waived, cascading result from point
101074 -             7, see 911114. ref SDS 19 3843
101075 -             ..
101076 -         e.  Independent Test Engineer waived for $20K, cascading
101077 -             result of point 7. see 911116. ref SDS 20 9630
101079 -          ..
101080 -     4.  Contractors failed to do CPM planning to save money on 880831.
101081 -         ref SDS 2 4829  Tudor rejects advice on 880921. ref SDS 7 4896
101083 -          ..
101084 -     5.  Welch clarifies how to "save" money on 880925.
101085 -         ref SDS 8 2475
101087 -          ..
101088 -     6.  Sletten received $1M, 10 times more than shown by evidence, on
101089 -         890317. ref SDS 10 8594
101091 -          ..
101092 -     7.  SDS terminated on 890324 as "overkill" - avoided cost $100K+,
101093 -         plus emotional turmoil of using good management. ref SDS 11
101094 -         6399
101096 -          ..
101097 -     8.  DNRC was forced to perform engineering management that
101098 -         Tudor failed to carry out, resulting in acceleration that
101099 -         compounded complexity of communication which caused continual
101100 -         mistakes using meetings, calls, and email...
101101 -
101102 -         a.  On 911004 DNRC reported the plant had been inspected and
101103 -             found to comply with requirements. ref SDS 13 3394
101105 -              ..
101106 -             On 911109 plant had not been inspected nor found to comply
101107 -             with requirements.  DNRC staff reported a contract had
101108 -             been let to perform this work; however, the contract did
101109 -             not specify that scope. ref SDS 14 3333
101111 -              ..
101112 -             On 911114 discovered that in 1987 Tudor waived Voith's
101113 -             submittal requirements without notice to DNRC. ref SDS 19
101114 -             3843
101116 -              ..
101117 -             On 911116 discovered in 1988 Engineer failed to review and
101118 -             approve Voith shop drawings, to save time and money,
101119 -             without notice to DNRC. ref SDS 19 3843
101121 -              ..
101122 -             On 911125 report on plant did not address compliance with
101123 -             design requirements. ref SDS 21 0958
101125 -              ..
101126 -         b.  On 911105 DNRC advised that Tudor never recommended
101127 -             replacing the speed increaser, nor analysed costs of
101128 -             replacement in relation to retrofit, and DNRC provided an
101129 -             incomplete document that seemed to support that
101130 -             conclusion. ref SDS 18 2572 and ref SDS 18 0735
101132 -              ..
101133 -             On 920120 review of entire document showed Tudor had
101134 -             provided professional analysis on replacing the speed
101135 -             increaser. ref SDS 22 8851
101136 -             ..
101137 -             On 920123 DNRC counsel and an executive maintained
101138 -             at a meeting that Tudor's recommendation is not supported
101139 -             by adequate engineering analysis, and should therefore be
101140 -             ignored, as unfounded. ref SDS 23 9054
101142 -              ..
101143 -             On 920124 DNRC executive disclosed opinion was based on
101144 -             reviewing only Tudor's summary page, and not supporting
101145 -             analysis. ref SDS 24 4476
101147 -              ..
101148 -         c.  On 911021 DNRC reported Voith instructed that the plant be
101149 -             operated at half-capacity to mitigate damage of vibration
101150 -             due to defective work by Voith. ref SDS 16 0001
101152 -              ..
101153 -             On 911022 evidence showed Voith did not issue instructions
101154 -             on plant operations, and that DNRC needed to make a demand
101155 -             for instructions to mitigate damage. ref SDS 17 0001
101157 -          ..
101158 -     9.  DNRC "can't keep head above water" fixing mistakes by
101159 -         Voith and Tudor.  SDS unfair and unnecessary intrusion on
101160 -         management getting things done, reported on 920210.
101161 -         ref SDS 26 8400
101163 -          ..
101164 -         Lookout in Crows Nest" seeing danger ahead is not welcome
101165 -         news.  On 920128 DNRC Director reivewed challenge of using
101166 -         good management consistently, " ref SDS 25 1199
101168 -          ..
101169 -         DNRC may be out $2M+ on Voith issues, plus lost revenue from
101170 -         lost power production over the past 10 years.
101172 -          ..
101173 -         On 940820 impact of management reviewed. ref SDS 27 5588
101174 -
101175 -            [On 001207 too many people having too many problems cause
101176 -            productivity, earnings and stock prices to fall.
101177 -            ref SDS 44 V54M
101178 -
101179 -            [On 010725 Wayne explained social pressures to avoid using
101180 -            because good management is not fun, fast and easy; people
101181 -            don't like to work on small problems; it seems like
101182 -            overkill, ref SDS 45 02EW, therefore Communication Manager
101183 -            is needed to implement SDS. ref SDS 45 YZ4M
101184 -
101185 -
101186 -
101187 -
101188 -
101189 -
101190 -
101191 -
101192 -
101193 -
101194 -
101195 -
1012 -
Distribution. . . . See "CONTACTS"