IAEA Procurement Engineering and Supply Chain Activities John Moore Division of Nuclear Power

Transcription

1 IAEA Procurement Engineering and Supply Chain Activities John Moore Division of Nuclear Power Vienna, September 8-10, 2014 (Technical Meeting TM-47114)

2 Topics IAEA documents related to procurement engineering and supply chain issues o GS-R-3 (July,2006) o GS-G-3.1(July,2006) o GS-G-3.5 (September,2009) o NS-G-2.12 (January,2009) o IAEA-TECDOC-919 (December,1996) o IAEA-TECDOC-1169 (August,2000) o NP-T-2.7 (February,2012) New document under development NP-T

3 IAEA Published Documents Related to Procurement S R No.GS-R-3 The Management System for Facilities and Activities S G No.GS-G-3.1 Application of the Management System for Facilities and Activities No.GS-G-3.5 The Management System for Nuclear Installations No.NS-G-2.12 Ageing Management for Nuclear Power Plants T E C D O C TECDOC-919 Management of procurement activities in a nuclear installation TECDOC-1169 Managing suspect and counterfeit items in the nuclear industry No.NP-T-2.7 Project Management in NPP Construction : Guidelines and Experience 3

4 Safety Requirement No.GS-R-3 The Management System for Facilities and Activities(1) Structure: 1. Introduction (July,2006) 2. Management system (MS) general requirements, including safety culture, grading and documentation 3. Management Responsibility responsibilities of senior management for development and implementation of a MS 4. Resource Management 4

5 Safety Requirement No.GS-R-3 The Management System for Facilities and Activities(2) (July,2006) 5. Process Implementation requirements for organization processes specification, development and management and for generic processes of MS Purchasing Suppliers of products shall be selected on basis of specified criteria and performance shall be evaluated Purchasing requirements shall be developed and specified in procurement documents. Evidence that products meet requirements shall be available to the organization before product is used Requirements for reporting & resolution of non-conformances shall be specified in procurement documents. 6. Measurement, Assessment, Improvement requirements for measuring, assessing and improving the MS Non-conformances and corrective and preventive actions Products and processes shall be identified, segregated, controlled, recorded and reported. Impact of non-conformances shall be evaluated. Concessions granted to allow acceptance of a non-conforming product or process shall be authorized. Potential non-conformances that could detract from organization s performance shall be identified. 5

6 Safety Guide (1) No.GS-G-3.1 Application of the Management System For Facilities and Activities (July,2006) 1. Introduction 2. Management System An integrated MS General Safety culture Grading application of requirements Documentation 3. Management Responsibility Management commitment Satisfaction of interested parties Organizational policies Planning Responsibility and authority for MS 4. Resource Management Provision of resources Human resources Infrastructure and working environment 5.Process Implementation Developing processes Process management Generic MS processes 6. Measurement, Assessment, and Improvement Monitoring and measurement Self-assessment Independent assessment Review Non-conformances and corrective and preventive actions 6

7 Safety Guide(1) No.GS-G-3.1 Application of the Management System For Facilities and Activities(2) (July,2006) Procurement principles 1. Suppliers capable of delivering acceptable items; 2. Procured items meet established requirements & perform as specified; 3. Procurement requirements & verification activities are carried out to extent and rigour commensurate with a graded approach based on items importance to safe and reliable operation; 4. Suppliers continue to provide acceptable items after initial selection. A typical procurement process Procurement documents requirements Scope of work Technical requirements Training requirements Inspection and testing requirements Access to the supplier s facilities Identification of standards applicable to MS Document requirements 7 From Appendix III.

8 Safety Guide (2) No.GS-G-3.5 The Management System for Nuclear Installations (September,2009) Adds to GS-G-3.1 Generic MS processes Control of documents Control of products Measuring & test equipment Control of records Purchasing Commercial grade products Communication Managing org. change 8

9 Safety Guide (3) No.NS-G-2.12 Ageing Management for Nuclear Power Plants MANAGING OBSOLESCENCE 1.Obsolescence (non-physical ageing) occurs when SSCs become out of date compared to current technology, knowledge, standards and regulations or when documentation becomes out of date. 2. Pay attention to management of obsolescence of technology. (January,2009) 3. Some obsolescence management activities require review and updating of NPP documentation (safety analysis report, operational limits and conditions, emergency plan, radiation protection programme and operating procedures) 9

10 Technical Report(1) TECDOC-919 Management of procurement activities in a nuclear installation (December,1996) Procurement planning Specification of technical requirements Specification of management Activities required of suppliers Selection of prospective suppliers Control of procurement documents Assessment of tenders and award of contract Performance of work Acceptance by nuclear installation Closure of supply contract & assessing performance Model of three levels of management: Level Senior management Line management Line supervisor (or person doing the work) Responsibilities setting policy and strategy, provision of resources/manpower, etc. organizing and deploying manpower and resources; defining management systems/procedures, etc implementing systems/procedures; supervising work and ensuring compliance with requirements, etc., 10

11 Technical Report(2) TECDOC-1169 Managing suspect and counterfeit items in the nuclear industry (August,2000) 1. Introduction 2. Management 3. Performance 4. Assessment 5. Symptoms 6. Examples and lessons learned 11

12 Technical Report(3) No.NP-T-2.7 Project Management in NPP Construction : Guidelines and Experience (February,2012) Major areas: 1. Introduction 2. Construction management preparatory phase Planning, organization, engineering and licensing, risk and construction infrastructure. 3. Construction management construction phase (after concrete pouring) Manufacturing and erection, site management, construction work packages, quality management, project schedule control. 4. Construction management commissioning Turn over approaches from construction team to commissioning. 5. Construction management issues and lessons Significant challenges and events related to construction 6. Conclusions and recommendations Development of procurement plan The split package approach The turnkey approach Contractual Approaches The multicontract approach 12

13 Brief Summary Previous documents provide good background on steps required for specifying and ordering material, with a focus on internal procurement processes, responsibilities, and interfaces. They require additions or supplements to more fully deal with recent issues such as. computersecurity, obsolescence, reverse engineering etc. 13

14 New IAEA Procurement Guidelines (NP-T-3.21) 14

15 NP-T-3.21 Procurement engineering & supply chain guidelines Main sections: Introduction; Management systems for procurement; Procurement process; Service procurement; Lessons learned for nuclear; Software and items containing software; Counterfeit, fraudulent and sub-standard items Proactive actions for new facilities 15

16 Procurement Process Define what is needed Need identification Establishing requirements Potential procurement scenarios & supplier selection Defining acceptance criteria and methods Get it Bidding, evaluation, & PO placement Contract execution, component fabrication & source surveillance Packaging and transportation Expediting Acceptance and receipt Use it Repair, refurbish, and return to stock Item installation or use Disposing unused material Contract closeout Take corrective action Non conformance control and supplier feedback 16

17 Need Identification Service demand (short term & long term) Modifications and Major Projects (parts and services) Procurement Demand Strategic spare parts Autoreplenishment of stock Maintenance (needed and contingency parts) 17

18 Establishing requirements TECHNICAL Fit, form and function Performance requirements Codes and standards QUALITY Management system requirements Inspections and tests Documents to be submitted COMMERCIAL Price Guarantees, warrantees, incentives, insurance ADMINISTRATIVE Bidding process, format, inquiry handling Team Effort Needed (design, purchasing, finance, legal, admin., end users, and vendors). 18

19 Procurement Scenarios Safety Related Supplier MS Commercial Grade Dedicated, Operating Org. MS Operating Org. MS (not CGI) Augmented Quality No specific requirements Not Safety Related 19

20 Supplier Identification Identification, qualification, and audit steps required; Industry encouraging standardization and sharing of audits; Other industries (e.g. aerospace) a potential model? 20

21 Acceptance criteria and methods Defined measurements, inspections, or test results that can be objectively verified; At least one acceptance criteria to address each safety function; Provide reasonable assurance the item meets all technical and quality requirements. 21

22 Bidding and evaluation Establish quotes (open tendering versus selective tendering); Bidding and selection of supplier; Negotiation with supplier; Preparation and placement of PO. 22

23 Contract execution & supplier feedback Kick off meeting recommended; Monitoring methods (periodic conference calls, status reports, earned value reporting, quality audits, source surveillance etc.) Supplier direction and feedback Formal comment & disposition process; Staff need to understand implications of direction versus advice / questioning; Develop supplier metrics. 23

24 Packaging and transport Dependent on method and duration of transportation, intermediate inspection points (e.g. customs checkpoints or transfer points to other methods of transport), and potential for damage or loss. Issues with point of ownership transfer, insurance, logistics, and risk management need to be addressed. 24

25 Acceptance and receipt Confirm received item or service meets acceptance criteria; Can involve factory acceptance tests, warehouse receipt inspections (RI), site acceptance tests, and commissioning. RI is a key quality hold point, where non-conforming items can be detected. 25

26 Storage and warehousing Labelling and tracking; Storage conditions (main warehouse and temporary); Shelf life and in-storage maintenance; Inventory management; Transfers (field, other utilities etc.) 26

27 Installation and Use Track item to end use location (uses UTCs or other unique identification system)! Will make recalls or non-conformance evaluations much easier! 27

28 Repair, return to stock, refurbish, disposal Repairs or returns should look similar to incoming receipt inspections. Disposal risks include conversion to counterfeit item or loss of company reputation (if disposed inappropriately). 28

29 Non-conformance control & supplier feedback Key element of procurement process; Need to actively manage suppliers and provide them with directed, relevant feedback. Supplier metrics, scorecards; Senior management reviews for key suppliers; Especially important for services - perceptions can lead to conflict or impressions that all is well. 29

30 Services Supply Increasingly important within nuclear industry (cost drivers making it more common); Especially important for newcomers (dependent on main vendor as provider); Service providers in house staff in both capability and motivation (whether well-intentioned or not; need to understand strengths and weaknesses of both) Needs more active involvement of operating organization intelligent customer role is recommended. 30

31 Procurement Engineering function Link between traditional design and supply chain organizations. Main duties are to: Establish requirements; Establish acceptance criteria; Perform Item equivalency evaluations; Manage / perform commercial grade dedications. 31

32 Obsolescence and Modernization A big issue in traditional nuclear markets; Suppliers consolidating and losing quality programmes; Approaches include: Hoarding stock; Subsidizing companies; Reverse engineering; Pooling inventory; Modernization modifications (e.g. digital CRs, analogue controller replacements etc.); Proactive programmes. 32

33 Software purchasing Difficult to buy older analogue equipment; Software / digital industry has short lifetimes and frequent code revisions; Computer security (cyber-security) increasingly a concern; Need specialized staff to develop requirements and assess purchases. 33

34 Counterfeit and fraudulent items Becoming more prevalent in general industry; Nuclear has few instances reported outside of US; Unlikely to be confined to US; Are you really checking? 34

35 New Facility Proactive Actions Don t repeat the past! You don t want a configuration restoration project to run! Ensure you contract for and receive the following data: Equipment technical / purchasing specifications; Design information including design bills of materials with clear manufacturer, model, part numbers and descriptions; Equipment bills of material and spare parts information for equipment (piece-part information and ordering information) ; Populate an enterprise database system during design and use it during construction and commissioning. 35

36 New Facility Proactive Actions (2) Perform single failure analysis to minimize single points of vulnerability for economic reasons; Develop preventative maintenance strategies to maintain critical spares for SR or critical equipment. Develop contacts within your technology / fleet to share/pool inventory and audit reports, and support standardization efforts. 36

37 Thank You for Your Participation COMMENTS/QUESTIONS? IAEA Nuclear Energy News available 37