Subject: Supplier Quality Program Audit Report



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Supplier Audit Report F-6.3-4 Rev. 3. Westinghouse Nuclear Services P.O. Box 355 Pittsburgh, PA 15230-0355 USA To: Mark Kumar, Facility Quality Manager Letter #: GSQG-09-0172 Date: June 11, 2009 Audit No: WES-2009-236/ NIAC 14136 Team Members: Dave Ivak, Auditor Jim Sloan, Technical Specialist, Terry Casteel, Observer Subject: Supplier Quality Program Audit Report Qualified Products/Services/Material: Pressure Transmitters, Indicators, Switches Audit Results The results of the audit performed at Cameron on June 8-10, 2009 and described below were discussed with Mark Kumar, Chuck Rogers, Francie Rodriguez, Mark Larson, and Jim Geer at the exit meeting held on June 10, 2009. Specifics of the audit findings are detailed below. Responses to the Findings/SCARs are due by July15, 2009 Audit Summary Audit Scope: The scope of this audit was to verify compliance to the applicable quality program requirements identified in Assessment Plan Letter # GSQG-09-0118, and implementation of the quality program, as documented in the Cameron Nuclear Quality Program Manual, NQPM-200, Rev. 1, dated 6/01/09. Audit Conduct: 1. The audit was conducted at the City of Industry, California facility utilizing NIAC ABCD Checklist, Rev. 7, dated 11/7/08. 2. The opening meeting was held on June 8, 2009 with the City of Industry site management team including Mark Kumar, Facility QA Manager and Francie Rodriguez, Plant Manager, to review the audit scope and the activities to be accomplished. 3. The audit team reviewed the quality program to ensure compliance with the quality program requirements. The Nuclear QA Manual describing their compliance with 10CFR50(B) and NQA-1-1994 was recently completed. As a result, there are some elements of the program

that have not been implemented and they are identified in a Supplier Corrective Action Request to track their completion. 4. The audit team sampled in-process activities, completed documents, and a demonstration job to verify the implementation of the quality program. There have been no safety related products produced under the existing QA system. 5. The exit meeting was held on June 10, 2009 with site management team and Chuck Rogers, Division Quality and Safety Manager. Effectiveness of Audited Program: The quality program was reviewed to determine the level of compliance to nuclear industry standards. Except as identified in the referenced findings, and the program elements that could not be verified due to incomplete implementation, the elements audited were effectively implemented. The status of for Westinghouse procurements will be approved with restrictions and approved requiring corrective action. Each NIAC member receiving this report, considering its procurements and applications, must make its own determination of supplier approval status. Effectiveness of Previous Corrective Action: Due to the nature and scope, the previous Supplier Corrective Action Requests were closed without completion but were considered in the performance of this audit. Findings: The audit resulted in 3 findings which were discussed with Mark Kumar and Chuck Rogers at the exit meeting and are detailed on the attached Supplier Corrective Action Request(s) (SCAR) 09-166-M010 through 09-166-M012. Procurement Restrictions: Surveillance and oversight is required until unverified elements of the program have been determined to be effectively implemented. I would like to thank all Cameron personnel and specifically Mark Kumar, Facility QA Manager, Chuck Rogers, Division Quality and Safety Manager, and Mark Larson, Nuclear Design Engineer for their cooperation and hospitality during the audit. Should you have any questions please call me at 724-953-5647 or email at crosbyba (Qwestinghouse.com. Very truly yours, 4M~ B.A. C sby Lead Auditor Page 2 of 7

cc: Westinghouse Distribution: Marvin Munn Jake Schmader Russ Sheffer Steve Johnston Jeff Johns Bud Ferry Jim Sloan John Papai Mike Laubham Art Trozzi Terry Casteel Michelle Merwin Dave Ivak Dennis Skeers NIAC Member Distribution: Dick Mack, Manager of Supplier Assessment, NIAC Representative GE-Hitachi Nuclear Energy, Wilmington, NC Page 3 of 7

CONTACTS AND ATTENDANCE LIST AUDIT NO. ENTRANCE MEETING DATE: AUDIT DATES: EXIT MEETING DATE: WES-2009-236 June 8,2009 June 8, 2009 - June 10, 2009 Julne 10, 2009 Francie Rodri uez Mark Kumar Jim Geer Mark Larson Cia on Timbs Cameron COL Don Bar er X Tom Rhoide Barbara Hamilton X Chuck Ro ers Cameron Houston X Charles Doe X X Brett Crosb Westin house GSa X X Dave Ivak Westin house GSa X X Ter Casteel Westin house GSa Page 4 of 7

SUPPLIER CORRECTIVE ACTION REQUEST (SCAR) CAR NO.: 09-166-M010 To: Attn: Mr. Mark Kumar, Facility Quality Assurance Manager From: NPP - Global Supplier Quality Cranberry Township, PA Referenced Documents I Requirements: 1 OCFR50 Appendix B Criteria 2 - QA Program 1 OCFR50 Appendix B Criteria 9 - Control of Processes 1 OCFR50 Appendix B Criteria 18 - Audits Description of Deficiency: has recently completed defining the QA program that wil be used to provide Basic Components for the nuclear industry. Although, the program is fully defined, there are elements of the program that have not been fully implemented and were not demonstrated at the time of the audit. This Corrective Action Request wil document and track these open issues and the plan for completion. These elements include: - Training of affected personnel in accordance with the new training procedure. - Documenting Qualification of Inspection and Test Personnel in accordance with the new procedure. - Complete the qualification of the Bellows Welding process. - Implement the Internal Audit Schedule. Response Due July 15, 2009 1) What was the cause of the deficiency? 2) Does this deficiency have generic impact relative to other products, services, procedures, processes or systems? 3) What action has been taken to resolve the deficiency? 4) What action has or wil be taken to prevent recurrence? 5) When will the above actions be completed? 6) Could the deficiency create a substantial safety hazard in a delivered basic component? (If yes, you are required to further evaluate this deficiency for 10CFR21 reportability.) Reported By: Brett A. Crosby Date: June 12 2009 Page 5 of 7

SUPPLIER CORRECTIVE ACTION REQUEST (SCAR) CAR NO.: 09-166-M011 To: Attn: Mr. Mark Kumar, Facility Quality Assurance Manager From: NPP - Global Supplier Qualiy Cranberry Township, PA Referenced Documents I Requirements: 1 OCFR50 Appendix B Criteria 7 - Control of Purchased Material, Items, and Services EPRI NP-5652 as endorsed by NRC GL 89-02 10CFR21 definitions Description of Deficiency: has recently completed defining the QA program that will be used to provide Basic Components for the nuclear industry. Section 7 of NQPM-200 does not clearly define supplier qualification options and methods of acceptance based on NRC requirements, the suppliers QA system, and the ability to confirm critical characteristics through receipt inspections and tests. Response Due July 15, 2009 1) What was the cause of the deficiency? 2) Does this deficiency have generic impact relative to other product, services, procedures, processes or systems? 3) What action has been taken to resolve the deficiency? 4) What action has or will be taken to prevent recurrence? 5) When will the above actions be completed? 6) Could the deficiency create a substantial safety hazard in a delivered basic component? (If yes, you are required to further evaluate this deficiency for 10CFR21 reportability.) Reported By: Brett A. Crosby Date: June 12 2009 Page 6 of 7

SUPPLIER CORRECTIVE ACTION REQUEST (SCAR) CAR NO.: 09-166-M012 To: Attn: Mr. Mark Kumar, Facility Quality Assurance Manager From: NPP - Global Supplier Quality Cranberry Township, PA Referenced Documents I Requirements: 1 OCFR50 Appendix B Criteria 3 - Design Control 1 OCFR50 Appendix B Criteria 11 - Test Control NQA-1 Subpart 2.7 - Software Control Description of Deficiency: has recently completed defining the QA program that will be used to provide Basic Components for the nuclear industry. Section 3 & Section 11 of NQPM-200 do not clearly define software controls for software used in design and automated acceptance testing. Response Due July 15, 2009 1) What was the cause of the deficiency? 2) Does this deficiency have generic impact relative to other products, services, procedures, processes or systems? 3) What action has been taken to resolve the deficiency? 4) What action has or will be taken to prevent recurrence? 5) When will the above actions be completed? 6) Could the deficiency create a substantial safety hazard in a delivered basic component? (If yes, you are required to further evaluate this deficiency for 10CFR21 reportability.) Reported By: Brett A. Crosby Date: June 12 2009 Page 7 of 7