Obsolescence Program Implementation

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1 Obsolescence Program Implementation Jornada Tecnica 2010 TECNATOM 9 de Junio 2010 S.S. Reyes, Madrid, Spain Marc Tannenbaum, EPRI Project Manager

2 Thank You Thanks for the providing EPRI with the opportunity to present via webcast Marc Tannenbaum Project Manager 2

3 Topical Summary EPRI Guidance on Obsolescence Current and Recent nuclear supply chain projects at EPRI 3

4 Obsolescence Management A Proactive Approach (12/2007) Program Ownership and Development (11/2008) Program Implementation (12/2009) 4

5 Obsolescence Guidance Webpage available to PKMK POMs Members and EPRI Obsolescence Management, A Proactive Approach December 2007 Program Ownership and Development November 2008 Program Implementation and Lessons Learned December 2009 Ability to statistically understand the problem and find common obsolescence issues > 20% of equipment is obsolete in US Plants Key Steps: Identification Prioritization Execution Available Tools Building a business case: Basic Program Process Program Ownership Organizations and Processes Involved Very early identification Current program synopses Available Tools 5 Implementation Detailed Process Guidance Prioritization Lessons Learned Precursors to obsolescence Available Tools

6 Industry Obsolescence Statistics (Source of data: PKMJ POMS Database-May

7 U.S. Fleet Obsolescence Data 22% of identifiable equipment is obsolete 35% indeterminate (not enough information on model) 22% unidentifiable (plant info system data) 15% partial but recognizable part/model numbers 41% Currently Supported (not obsolete) (Source of data: PKMJ POMS Database-August 2009) We are beginning to know which equipment is obsolete... What is the next step? 7

8 Proactive Obsolescence Management: Program Implementation and Lessons Learned Obsolescence Issues still exist, including emergent (unplanned) issues Some programs remain islands not integrated with existing processes limited to a participation by a single plant organization Difficult to prioritize Impact of obsolescence on daily work is unclear No funding available to develop proactive solutions A programmatic approach is necessary to truly progress from our predominantly reactive modus operandi 8

9 Proactive Obsolescence Management: Program Implementation and Lessons Learned focuses on program implementation including integration Detailed obsolescence process Process steps who and how Challenges and Lessons learned How to prioritize issues How to get funding Product Number

10 Proactive Obsolescence Management: Program Implementation and Lessons Learned Product Development Surveyed Nuclear Utility Obsolescence Group (NUOG) Steering Committee members to determine best in breed obsolescence programs to benchmark Mature DTE Energy, Fermi Recently Implemented Exelon, Peach Bottom Pioneer FirstEnergy Prioritization and Vendor Contact Product Number

11 Proactive Obsolescence Management: Program Implementation and Lessons Learned Key Challenges for an Obsolescence Program Personnel with the right experience and expertise Competition for funding Proactive solutions may be viewed as low priority Integration obsolescence into daily plant work 11

12 Three Basic Elements to Addressing Obsolescence Identify Obsolescence Issues An issue may involve multiple parts or equipment Issues can be logically grouped by manufacturer, equipment type, etc. Prioritize Obsolescence Issues Equipment Criticality Anticipated need for replacements System Health Develop Replacement Solutions Equivalency Evaluations Design Changes Replacement Hardware Solutions 12

13 Eight Major Process Elements 1. Collect Equipment and Part Data 2. Determine Vendor Support for Equipment and Parts Organizations Interfaces Identify Obsolescence Issues Prioritize Obsolescence Issues Implement Solutions for Obsolescence Issues Available Resources 3. Identify Obsolete Equipment and Parts 4. Create an Early Warning Tracking System 5. Implement Enhanced Processes to Flag Issues 6. Rank and Prioritize Issues 7. Obtain Funding and Develop Solutions 8. Monitor Program Performance 13

14 1. Collect Equipment and Part Data Baseline list of equipment installed in the plant Manufacturer and Model number Original Equipment Supplier versus Original Equipment Manufacturer The amount of missing or inaccurate data may be surprising Several organizations may be involved, including Information Technology 14

15 2. Determine Vendor Support for Equipment and Parts Determine Vendor Support for Equip & Parts 2 If the vendor still supports replacements for the equipment, it is not considered obsolete Systematically contact vendors to determine if they still support each model Program must be continuous Vendors may discontinue support at any time Commercial product called Proactive Management Obsolescence System (POMS) accomplishes this in the U.S. Only one U.S. fleet does not use POMS EPRI does not endorse organizations or products such as PKMJ or POMS. Contact information is included for informational purposes only 15

16 3. Identify Obsolete Equipment and Parts Identify Obsolete Equipment & Parts 3 Once equipment is identified as obsolete, it s this information should be available to plant personnel Flags in plant information systems Equipment lists and data Spare part stock codes Obsolesce can be considered when making decisions about maintenance, stocking levels, repair versus replace, etc. Helps enable prioritization of known obsolete equipment 16

17 4. Early Warning Tracking Early Warning Tracking 4 Monitor precursors to obsolescence Develop automated reports to identify Change in price Increase in lead-time Available Stock These early warning indicators can be used to identify equipment and items that are likely to be obsolete in the future Almost obsolete items can be ordered before they become unavailable 17

18 5. Implement Enhanced Processes to Flag Issues Incorporate obsolescence status into daily work activities and decisions Guidance for reporting information back to obsolescence program owner Assist with prioritization May prompt different actions For example Pre-job brief for obsolete equipment may discuss its status and special considerations. Might prompt for additional information about equipment condition to be collected and reported back to program owner 18

19 6. Rank and Prioritize Issues Rank and Prioritize Issues 6 Logically group obsolescence issues (manufacturer, equipment type, etc.) Use a ranking system to identify the priority of all obsolescence issues Integrate obsolescence issues into the plant health reports to assist in prioritizing Commercial products can help build a ranking system 19

20 Rank & Prioritize Issues Identify high priority issues that can complete for available funding Obsolescence Value Ranking Schemes Parameters Weighting Factors Point Options (Unique to Organization) 20

21 7. Obtain Funding and Develop Solutions Incorporate obsolescence considerations into established funding mechanisms like Plant Health Committees A dedicated budget ensures work can begin on the highest priority issues Obtain Funding and Develop Solutions 7 Replacement solutions may be developed by various plant organizations Procurement Engineering Design Engineering Supply Chain Management support of program is key to obtaining proper funding for obsolescence solutions 21

22 8. Monitor Performance Continuous Improvement using corrective action system Establish performance indicators to see if impact from the program justifies the expense Preventive Maintenance deferrals Work Schedule Stability System health downgrades due to obsolescence 22

23 Take Away Effective obsolescence programs involve input and participation from various plant organizations. A process must be in place that permits proactive solution development projects to compete for funding (e.g. at the plant health committee level) Metrics should be established to monitor the effectiveness of the obsolescence program and provide a basis for continued support 23

24 Other EPRI Procurement and Supply Chain Products 2010 (in progress) Receipt Inspection computer-based training Counterfeit and Fraudulent Item computer-based training Counterfeit and Fraudulent Item database , Considerations for Developing a Critical Spare Parts Program , Counterfeit, Fraudulent and Substandard Items, Mitigating the Increasing Risk , Inventory computer-based training 24

25 Other EPRI Procurement and Supply Chain Products , Impact of Procured Item Quality on Nuclear Plant Generating Asset Economic Performance , Obsolescence Management, Program Development , Replacements for Obsolete ASCO Red Hat Series Solenoid Valves, Generic Equivalency Evaluations for ASCO 8262 and 8345 Series Valves , Information for Use in Conducting Audits of Supplier Commercial Grade Item Dedication Programs , Technical Specialist Training for Audits and Surveys (computer based) , Obsolescence Management, A Proactive Approach , Procured Item Quality, Initial Findings 25

26 Other Products Located under Procurement Engineering Products in , Plant Support Engineering: 2010 Completed Product List 26

27 Questions? 27