Join the UK Nuclear Renaissance. Procurement & Quality Process
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1 Join the UK Nuclear Renaissance Procurement & Quality Process 1 AREVA NP UK Supplier Day, March 16th Birmingham EPR is a trademark of the AREVA Group 1
2 The Process: AREVA Supply Chain Strategy Didier David AREVA Production Purchasing Vice President 2 AREVA NP 2
3 UK nuclear new build is an opportunity for the UK supply chain To deliver multiple EPR new builds in UK, AREVA needs a strong UK supply chain Start UK, then go global as an AREVA supplier 3 AREVA NP 3
4 AREVA has a vision to share with more suppliers A new generation of suppliers for a new generation of reactor Purchasing Strategy AREVA continuously seeks to enrich, develop and optimize its worldwide panel of supplier partners in order to select the most competitive solutions with respect to both technical and financial requirements. Long-term partnerships will be developed with selected suppliers in order to Respond to local requirements DOMESTIC PROJECTS Offer competitive solutions worldwide to our customers INTERNATIONAL PROJECTS 4 AREVA NP 4
5 The AREVA Purchasing organization One face to suppliers A Corporate interface (Commodity Manager) Vision and strategy Supplier development & continuous improvement New business opportunities A Project interface (UK Project Procurement Manager) Specific project-related business = UK Supply Chain a supplier customer partnership relationship 5 AREVA NP 5
6 The AREVA UK purchasing organization UK AREVA dedicated team is in charge of all aspects of procurement from tender phase to the beginning of the warranty period in particular Suppliers selection Orders Follow up of deliveries (Expediting) Purchasing in UK project ensures that equipment or services are bought on time, within a defined budget, according to quality on technical specs, in respect of contractual obligations towards the final client 6 AREVA NP 6
7 Involve suppliers in a continuous improvement approach Stimulate supplier creativity with contracts stipulating quality, cost and delivery objectives Encourage active supplier participation in codevelopment initiatives Implement Sustainable Development Declaration for suppliers Develop and formalize long-term partnerships with written agreements 7 AREVA NP 7
8 AREVA Purchasing Scope of Supply»8 AREVA NP»8
9 AREVA Scope of supply: NI»Areva Scope of supply: NI 9 AREVA NP 9
10 EPR Project - Scope of supply EPR New Plants General Scope Sharing NI/TI AREVA is managing the scope related to Nuclear Island System Design, Concept Design, Basic Design, Detail Design Layout, all planning activities Procurement of all mechanical equipment (incl. piping), all electrical and I&C equipment, HVAC-equipment Installation of all equipment and commissioning as well as overall coordination of Plant commissioning BNI might be in customer s Scope (EDF) Turbine Island is managed by a partner (could be in a Consortium) Civil Works could be managed by Partners There are various Project Schemes which could be applied creating several potential Customers for UK Suppliers! 10 AREVA NP 10
11 Main activities for NI scope Design services Fabrication and delivery of materials (equipment, components) Erection & commissioning on the NPP site Project management and associated activities Identification of potential supplier partners as early as possible 11 AREVA NP 11
12 AREVA NP Quality Management Specification for the Supply chain In AREVA NP QA prescription to its suppliers: a graded approach For safety related product/services (mainly Class 1 & Class 2): Compliance with ISO additions based upon IAEA GS-R For non safety related product/services but important for installation (Class 3 & NC impacting schedule, cost, availability): Compliance with ISO For all products/services attention is drawn to: Environmental program (ISO14001) Safety program (OHSAS 18001) 12 AREVA NP 12
13 Procurement Methodology Definition of the request for tender file Qualification of potential suppliers (Approved Vendor List) Consultation and selection of Suppliers Definition of the contract to the selected Supplier(s) Implementation of the contract by the Supplier Delivery of the product manufactured by the Supplier to our Customer 13 AREVA NP 13
14 Typical Procurement Expediting Process 3 types of information to be followed up General data (from procurement activities) Dates (from Time Schedule) Performance indicators 4 consecutive phases for procurement of equipment Phase 1 Phase 2 Phase 3 Phase 4 Time Delivery of requisition Purchase Order passed Start of manufacturing Delivery to site 14 AREVA NP 14
15 How to become an EPR UK supplier: Respect Sustainable Development Sign AREVA Sustainable Development Charter Target the right product Supplier should have the required technical capabilities With the right quality requirement Supplier & product should be qualified At the right cost Supplier should be competitive Be on-time Supplier should have a proven reputation for on-time delivery Be able to supply a fleet of EPR reactors The Supplier should have project management capabilities for the scope of supply 15 AREVA NP 15
16 EPR reactor Scope of Equipment Supplies & Erection Services»16 AREVA NP»16
17 Scope of External Procurement (1) Mechanical Equipment Fuel Handling Equipment Polar Crane All Pumps (excluding Main Coolant Pump) All Valves All Pressure Vessels (excluding Pressurizer and RPV) All Heat Exchangers (excluding Steam Generators) All Filters / Process Components All Waste Components Fire Fighting Equipment Physical Plant Protection Equipment Special Devices, e.g. Filter Changing Machine, Multi-Stud Tensioning Device, Core Catcher, Airlocks, Liner, etc.) 17 AREVA NP 17
18 Scope of External Procurement (2) Piping and Support Materials Supplies All piping material (excluding Primary Loop) All fittings, forgings, elbows, flanges, compensators All support material incl. steel structures Piping prefabrication and installation works (including design for layout, detailed isometrics and spooling) 18 AREVA NP 18
19 Scope of External Procurement (3) Heating / Ventilation / Air Conditioning (HVAC) Refrigeration Units / Chillers Containment Isolation Dampers Gas-Tight Dampers, Isolation Dampers, Non-Return Dampers Fire Dampers/Smoke Relief Dampers Fans (Ventilators) Heaters, Air Heating Unit, Humidifiers Silencers Filters Other HVAC-Equipment (Blast Valves, Black Box Systems) Waste Management Equipment (starting from Conceptual Design, provided by AREVA including Installation) 19 AREVA NP 19
20 Scope of External Procurement (4) Components for Electrical Equipment Diesel Generators (EDG and SBO) MV-Switchgears, LV-Switchgears Batteries, UPS Containment Cable Penetrations Transformers, AC/DC Converters, DC/AC Inverters Cables (LOCA Cables and Non-LOCA Cables) Cable Trays including Support Structures Cable Seals, Junction Boxes Building Technology Equipment for complete electrical infrastructure Installation Services for all Electrical Equipment 20 AREVA NP 20
21 Scope of External Procurement (5) Components for I&C Equipment I&C equipment will be procured externally: All Radiation Monitoring Systems Dosimetry Equipment Physical Health Stationary Equipment Sensors & Instrument Tubing Instrumentation Sensors (Flow, level, pressure, temperature, chemical, ) Instrumentation Tubing Instrumentation Frames 21 AREVA NP 21
22 Scope of External Procurement (6) Electrical Infrastructure including systems such as: Telephone, LAN/WAN, Intercommunication Systems Public Address & Alarm Systems Clock Systems CCTV Systems Lighting Systems and small power systems Fire Alarm systems and fire damper control And Electrical Physical Protection Systems such as: Specific Power Supply Intercommunications CCTV Access Control Security Alarms and associated control stations & desks 22 AREVA NP 22
23 UK Orders & How to start process Majority POs starting / 2010 to be qualified Next steps: RFI in Q2/2009 Suppliers Selection Pre assessment visits 23 AREVA NP 23
24 Nuclear Quality Supplier Qualification Process Thierry Zumbihl Vice President, Quality-Plants Sector 24 AREVA NP 24
25 Quality requirements in UK HSE requirements are expressed in the Safety Assessment Principles (2006 edition - revision1) Leadership and management for safety (SAP MS.1) quality management system shall be used to ensure that safety is being maintained and improved reference to international standards HSE expectations are QA arrangements from licensees and vendors to cover IAEA GS-R-3 and ISO-9001 requirements graded approach = application of controls proportional to safety significance The IAEA safety guide GS-R-3 = The Management System for Facilities and Activities released in AREVA NP 25
26 AREVA NP Quality organization: international approach adapted to UK expectations The AREVA NP quality system is based on international nuclear quality standard (IAEA GS-R-3) industry consensus quality standard (ISO-9001) graded application General AREVA NP quality approach covers UK requirements and regulator expectations addresses requirements in most of the countries global market 26 AREVA NP 26
27 How do these requirements apply to component and service suppliers? 27 AREVA NP 27
28 AREVA NP Quality requirements Quality requirements based on component or service importance to safety 28 AREVA NP 28
29 Nuclear quality specific requirements Defined in a generic AREVA NP specification (Q-N-100) Complement ISO-9001 requirements Nuclear specific requirements (examples) Activities important for safety: refer to activities performed during purchase order performance and where failure may lead to a non-conformance regarding requirements linked to safety notified by AREVA NP. Safety Culture: measures are required from the supplier management system to promote and support a strong safety culture. 29 AREVA NP 29
30 Nuclear quality specific requirements Nuclear specific requirements (examples) Grading the application of the quality management system: for the performance of the purchase order, identification of the activities important for safety Documentation: a quality management plan is required from the supplier Control of the design documentation: Design/Engineering activities are verified by individuals competent and other than those who carried them out Inspection: inspection is carried out by individuals competent and not involved in carrying out the activity. The conditions of this inspection are described and justified Purchasing: the purchasing data are verified by individuals competent and other than those who prepared them 30 AREVA NP 30
31 Qualification of the suppliers How to proceed?»areva NP»31 AREVA NP 31
32 Purpose of supplier qualification process Why? To assess the capability of a supplier to fulfill AREVA requirements applicable to products and services for nuclear power plants A prerequisite to product qualification and for placing purchase order Part of a global process involving technical, commercial, financial and quality 32 AREVA NP 32
33 Quality supplier qualification process (new suppliers) STEP 1»Pre-selection Review based on supplier s answer to our questionnaire STEP 2»On-site assessment Assessment by AREVA NP QA team STEP 3»Supplier s Improvement measures Supplier proposes improvement action plan STEP 4»Review by AREVA NP Implementation reviewed by AREVA NP Approved vendor list TOTAL DURATION : 6 to 12 Months for safety grade qualification 33 AREVA NP 33
34 A cooperative attitude AREVA NP offers support to the supplier during qualification process Provides materials for employees awareness and training Organization of advanced technical training Assessment with identification of improvement axis 34 AREVA NP 34
35 Summary Success is in your hands Company management commitment Disseminate safety culture to employees No compromise on quality requirements Relation based on trust and transparency For further questions contact us: 35 AREVA NP»35
36 AREVA NP Equipment / Supplier Qualification Process Yves Robin Senior Sourcing Manager 36 AREVA NP 36
37 Table of contents The Nuclear Island Context A search to match Equipment & Supplier A set of specifications A reference to Codes & Standards The Qualification Process A need for project risk management A successful experience A running process 37 AREVA NP 37
38 The context Safe and reliable NPPs worldwide require the selection of the right match of Equipment and Supplier Nuclear Island Equipment, Some for safety related systems Some non related to safety functions Nuclear Island Suppliers Quality management ability is a pre-requisite Capability to design and manufacture equipment Capacity to supply on time Competitiveness AREVA qualification process is structured to secure a match between Equipment and a Supplier for long term & worldwide partnership 38 AREVA NP 38
39 Equipment specifications Technical Codes & Standards: ASME, RCCM, KTA Pumps Valves etc. Piping Vessels/Exchangers Table of Contents Introduction 1. Scope 2. Definitions 3. Documentation 4. Design 5. Materials 6. Manufacturing 7. Operability 8. Requirements for Auxiliary Systems, Venting, Drains, Integral Supports Quality Requirements With modulation according to Safety Class and National Regulations - Quality Management - Documentation - Inspection 39 AREVA NP 39
40 Quality requirements Rules depend upon the safety level and public safety impact of the equipment: International IAEA rules National laws Owner s own Quality & Inspection requirements AREVA s QM requirements & Surveillance requirements of detailed design and manufacturing Surveillance intensity of AREVA depends on The safety level and complexity of the equipment The experience of the supplier and feedback of previous contracts 40 AREVA NP 40
41 Codes & Standards: RCC-M or ASME III RCC-M Code ASME Code Section 1 Nuclear Island Components Section III A General requirements NCA B Class 1 components NB C Class 2 components NC D Class 3 components ND E Small components None G Core support structures NG H Supports NF J Storage tanks NC/ND P Containment penetrations NE Z Technical appendices Appendices Section 2 Materials Section II Section 3 Examination methods Section V Section 4 Welding Section IX (Qualifications) Section 5 Fabrication Various parts of Sect. III 41 AREVA NP 41
42 General view for EPR Reactor Codes and Standards selection Classification EPR Reactor Global Application Class 1 ASME Sect.III NB+ RCC-M Sect. I Subs. B Class 2 ASME + Sect. III NC ASME + Sect. III NC or RCC-M Subs. C + : supplemented when needed Class 3 ASME Sect. III ND+ Harmonized Standards PED 97/23 EC or ASME Sect. VIII div.1 or National Industrial Standards Plus specific requirements Nuclear codes optional NC Harmonized Standards: EN 13445, 13480, National Industrial Standards: ASME VIII, AD-M, BS, CODAP, 42 AREVA NP 42
43 Codes for mechanical components of EPR Nuclear Island For the main primary system components (Class 1): the first EPR TM units (OL3, FA3, TSN1&2) are RCCM and will be ASME III in US for UK it will have to be agreed with both clients and Regulator For the majority of all other equipment (Class 2, 3 and Non Classified): AREVA current practice is to open its specifications to the possible alternatives: ASME or RCCM or European Standards 43 AREVA NP 43
44 Table of contents The Nuclear Island Context A search to match Equipment and Supplier A set of specifications A reference to Codes & Standards The Qualification Process A need for project risk management A successful experience A running process 44 AREVA NP 44
45 Qualification: a need for project risk management Component technology and safety AREVA NSSS components Qualified suppliers key components Qualified suppliers standard design components growing project risk Qualified suppliers & new design New supplier & standard design New supplier & new design Supplier experience / New design 45 AREVA NP 45
46 AREVA NP Qualification Process Description Criteria for the qualification of Suppliers Technical capabilities in design and engineering to achieve successfully the requirements for a given scope of supply Quality management ability Project management capability Financial soundness and long term company stability Value charter 46 AREVA NP 46
47 AREVA NP Qualification Process Description Steps March Sourcing April 2009 No-Go Go Timescale No-Go 2. Preselection Go 3. Prequalification No-Go Go 4. Qualification 2011/2012 Approved Vendor List 47 AREVA NP 47
48 AREVA NP Qualification Process Description Qualification feedback experience Success factors: General Management commitment Employees safety culture & mobilization Quality Assurance + Quality Control internal surveillance & follow-up Management of Sub-contracts Management of non-conformance in trustworthy atmosphere: SAFETY CULTURE Responsibilities & authority of the Supplier Project manager Supplier proactive participation during the qualification process creates Customer Confidence 48 AREVA NP 48
49 Conclusion Supplier Qualification helps set up trustworthy and long term relationships between all the actors in the Supply Chain Such proven confidence is the best asset for the safety and success of the Nuclear Industry Thank you for your attention 49 AREVA NP 49
50 Conclusion Laurent-Olivier Coudeyre UK Supply Chain Coordinator 50 AREVA NP 50
51 UK nuclear new build is an opportunity for the UK supply chain To deliver multiple EPR new builds in UK, AREVA needs a strong UK supply chain We Need You! Start UK, then go global as an AREVA supplier 51 AREVA NP 51
52 Next Milestones: Project: By Spring, which Clients & Sites By Autumn, which Vendors By Christmas, which Consortia Supply Chain: RFI starting Q2/2009 Suppliers Selection Pre assessment visits On-going process 52 AREVA NP 52
53 UK contact with AREVA Purchasing Dedicated website Meet the AREVA purchasers 53 AREVA NP 53
54 54 AREVA NP 54
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