Technical Meeting on Managing Obsolescence, Spare Parts and Replacement in Operating Nuclear Power Plants
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1 Technical Meeting on Managing Obsolescence, Spare Parts and Replacement in Operating Nuclear Power Plants Shanghai, China 6 9 June 2017 Ref. No: I2-TM A. Background Information Information Sheet Spare part availability impacts the operation and safety aspects because a lack of the necessary parts can result in unplanned plant transients. Similarly spare parts inventory impacts the commercial aspects as both a threat (excessive spare parts inventory) and an opportunity (minimizing down time). Because of past spare part procurement and level setting practices, excess inventories have accumulated at many nuclear power plants(npps). In addition, less than optimal coordination between maintenance work planning and scheduling often leads to inefficiencies in the material supply process, both in labour utilization and increased cost of procured materials. A typical nuclear power plant warehouse has to stocked items, many of which look very similar, but have very different technical specifications. NPPs are made up of thousands of components and subcomponents, the manufacturing and technical support of which require a deep and diverse supplier base. Reducing inventories and procured material costs, and improving procurement and material management process efficiency while maintaining adequate availability of needed materials can significantly contribute to a reduction in operation and maintenance costs. Having a robust supply chain and efficient procurement processes contributes to the successful construction of new NPPs, as well as to the long term operation of existing NPPs. However, a successful inventory management process, while decreasing total cost, may actually increase the volatility of those costs. Rather than maintaining a higher, more constant level of investment in parts, the NPPs allows inventory investment to fluctuate. In the standard inventory management models of finance,
2 Page 2 there are two competing equations. The costs of holding inventory go down if less inventory is stored, while the ordering or procurement costs go up if more inventory is stored. The optimization problem balances these two equations to define the optimal level of inventory that minimizes cost, while providing a certain confidence level that needed spares will be there when needed. In recent years, counterfeit, fraudulent and substandard item (CFSI) issues also have challenged the nuclear industry. In some cases, NPPs were shut down until such issues could be adequately addressed. B. Objectives The meeting has the following objectives: Share experiences and lessons learned in addressing inventory control of spare parts and obsolescence management associated with the construction and operation of nuclear power plants; Collect information from Member States for use in developing a draft IAEA Technical Document (TECDOC) on inventory control of spare parts and obsolescence management for nuclear power plants. The TECDOC will expand upon information contained in the IAEA publication entitled Procurement Engineering and Supply Chain Guidelines in Support of Operation and Maintenance of Nuclear Facilities (IAEA Nuclear Energy Series No. NP T 3.21), which is on related subjects. C. Expected Outputs The following outputs will result from the meeting: Collect information from Member States for use in developing a draft IAEA TECDOC on inventory management and obsolescence management for NPPs. This new TECDOC is currently under development via a consultancy process; The following topics will be presented and share experiences and lessons learned with respect to inventory and supplier management for the operation and construction of NPPs: Methods nuclear facilities use to segment and categorize inventory; Spare parts stocking strategies and associated maintenance strategies; Methods to manage supplier oversight with a global supply chain; Methods to minimize the carrying costs associates of facility inventory; The impacts of globalization, obsolescence, life extensions, commercial grade dedication and premature shutdowns on inventory control methods and costs; Elements of inventory optimization process. D. Target Audience and Conditions of Participation Participation is solicited from Member State representatives who are involved in supply chain or procurement functions associated with NPPs in operation or under construction. These might include individuals involved with contract administration, contract management, contract technical oversight, procurement engineering, inspection, parts planning, expediting, material receipt, warehousing, inventory analysis, and investment recovery. Individuals with specific knowledge of inventory control management.
3 Participants at the meeting will be expected to: Page 3 Give a summary presentation regarding current processes, standards, and experience related to mmethodologies for inventory management in NPPs; Actively participate in the dialogue at the meeting; and Provide any other input useful to the IAEA s activities on this topic. Participants should complete the attached Participation Form (Form A) as soon as possible and send it to the competent national authority (Ministry of Foreign Affairs or National Atomic Energy Authority) for transmission to the IAEA Secretariat via the established official channels to arrive no later than 7 April The designation of a participant will be accepted only if forwarded by the Government of an IAEA Member State or by an organization invited to participate. The IAEA reserves the right to limit participation due to limitations imposed by the available facilities. E. Visas Designated participants who require a visa to enter China should submit the necessary application to the nearest diplomatic or consular representative of China as soon as possible. F. Expenditure The costs of the meeting are to be borne by the IAEA. There is no registration fee. Travel and subsistence expenses of participants will not be borne by the IAEA. The IAEA has, however, limited funds at its disposal to help meet the cost of attendance of certain participants. Such assistance may be offered upon specific request to no more than two participants per country provided that, in the IAEA s view, the participant(s) on whose behalf assistance is requested will make an important contribution to the meeting. The designation of individuals directly involved in relevant consultancy activities at the IAEA (i.e. in relation to the preparation of the new procurement guidelines publication that will be covered at the meeting) is encouraged. The application for financial support should be made at the time of designating the participant(s), using Form C. G. Abstracts and Papers Papers will be selected on the basis of abstracts and will be processed on receipt. Any individual requiring early confirmation of acceptance of their presentation is therefore encouraged to submit his/her abstract as soon as possible. The abstract should be in A4 page not exceeding 500 words and should be sent electronically to the Scientific Secretary, Mr Ki-Sig Kang ( K.S.Kang@iaea.org) not later than 5 May Authors will be notified upon the acceptance by 12 May Those authors whose papers are accepted should submit the original of their full-length papers to Mr Ki-Sig Kang before the start of the meeting. The abstract should be included on the first page of the paper. The manuscript should be typed, single spaced on the A4 format (21 cm by 29.7 cm) or the letter size format (8.5 inch by 11 inch) in Times New Roman font size 11 or 12 point, and should include original illustrations and black and white glossy prints of all photographs. The paper should be about 12 typed pages (including Figures). The author s name(s) should be given on the first page of the paper as follows:
4 Page 4 TITLE OF PAPER By Mr John No Name*, Mr George Young**, Mr Willy Spring*** * Position and Address ** Position and Address *** Position and Address ABSTRACT Based on abstract provided previously, but to include major conclusions. KEY WORDS Include a list of keywords at bottom of first page. H. Working Language The working language of the meeting will be English. An overhead projector and a device for showing computer-based presentations will be provided in the meeting room. If there are any special needs, please contact Mr LIU, Tongyao ( t.y.liu@snerdi.com.cn ) at an early stage. Time for the presentation of the papers will be limited to 25 minutes in order to have sufficient time for discussion. I. Local Arrangements and Organization The meeting will be held in Shanghai Nuclear Engineering Research & Design Institute (SNERDI) in Shanghai, China and will start at 9.30 on Tuesday, 6 June 2017, and end at on Friday, 9 June State Nuclear Power Technology Corporation (SNPTC) Shanghai Nuclear Engineering Research and Design Institute (SNERDI) P.O. Box Hong Cao Road SHANGHAI CHINA The SNERDI Contact Person is: Mr LIU, Tongyao Deputy Director, President's Office Shanghai Nuclear Engineering Research & Design Institute (SNERDI) P.O. Box Hong Cao Road SHANGHAI CHINA Tel: Fax: t.y.liu@snerdi.com.cn The meeting agenda and local details, together with information on local arrangements, will be sent to designated participants once the completed Participation Forms have been received.
5 J. IAEA Secretariat Page 5 International Atomic Energy Agency (IAEA) Wagramer Straße 5 P.O. Box Vienna Austria The IAEA Scientific Secretary for the meeting is: Mr KANG, Ki-Sig Division of Nuclear Power Department of Nuclear Energy International Atomic Energy Agency Vienna International Centre PO Box VIENNA AUSTRIA Tel.: Fax: K.S.Kang@iaea.org The IAEA Administrative Secretary for the meeting is: Ms Inessa Kovalenko Division of Nuclear Power Department of Nuclear Energy International Atomic Energy Agency Vienna International Centre PO Box VIENNA AUSTRIA Tel.: Fax: I.kovalenko@iaea.org Subsequent correspondence on scientific matters should be sent to the Scientific Secretary and correspondence on other matters related to the meeting to the Administrative Secretary.
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