Supplier Fair Windsor-Essex

Transcription

1 Supplier Fair Windsor-Essex April 29 th 2015 Claudio Caruso Director, Global Procurement Strategies 1

2 A WORLD LEADER Founded in 1911, SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure. From offices in over 50 countries, SNC-Lavalin s 45,000 employees provide EPC and EPCM services to clients in a variety of industry sectors, including mining and metallurgy, oil and gas, environment and water, infrastructure and clean power. SNC-Lavalin can also combine these services with its financing and operations and maintenance capabilities to provide complete end-to-end project solutions. 2

3 AT A GLANCE End-to-End Service Provider Multidisciplinary, integrated solutions across all sectors Total project capabilities from start to finish Customized cutting-edge solutions to meet client needs Cost-effective, timely and sustainable operations Highly Skilled Global Labour Force 45,000 employees Speaking some 60 languages Representing approximately 80 nationalities 2014 Revenues $8.2 billion 2014 Backlog $12.3 billion Trading as SNC TSX 3

4 AT A GLANCE Local Execution, Global Know-How Active in more than 100 countries International network established for almost 50 years Offices across Canada and in over 50 countries Industry Leader Tenth place on ENR s Top 225 International Design Firms by Revenue (2014) Eighth on ENR s Top 150 Global Design Firms (2014) An ENR Top 200 Environmental Firm (2013) Platinum Elite provider on ReNew Canada s Top 100 Canada s Biggest Infrastructure Projects (2014) 4

5 STRATEGIC VISION The company has based its strategic vision on a three-pronged approach: Sectors, geography and service mix. Focusing on this strategic vision ensures continued growth and success by serving the needs of our clients, employees, shareholders and communities. 5

6 ETHICS AND COMPLIANCE At SNC-Lavalin, we have set a clear goal: to become the global benchmark in ethics and compliance against which other companies measure themselves. We have woven ethical business practices into the fabric of the way we do business, and transparency into the way we report to our stakeholders. Initiatives launched include: Anti-corruption manual New policy governing engagements with business partners Appointment of compliance officers An Amnesty Program Third-party validation Compliance Risk Assessment integration House of Policies standardization and governance Personal Compliance Training for key employees 6

7 STRATEGY KEY MARKETS Our four key markets are Infrastructure, Oil & Gas, Mining & Metallurgy and Power. By consolidating our operating units into these four sectors, we have improved market focus and efficiency, and enhanced teamwork. 7

8 STRATEGY KEY GEOGRAPHIES North America Europe Continued growth focus Middle East and Africa Asia Pacific Latin America New growth focus Continued growth focus 8

9 STRATEGY KEY SERVICES We are one of very few firms with expertise at scale in engineering, construction, procurement, financing & asset management, and operations & maintenance. Engineering Construction Procurement Financing & Asset Management Operations & Maintenance 9

10 SNC LAVALIN PROCUREMENT 10

11 INTRODUCTION Vision and Mission Our vision is to deliver excellence through innovative procurement solutions while respecting Quality, Cost and Schedule constraints in an evolving sourcing market. Our mission is to contribute to our clients success by delivering high quality performance in the definition and execution of procurement strategies, and by defining and implementing best in class processes, technology and practices. 11

12 INTRODUCTION Value-Added Services Our process management approach emphasizes a coordinated procurement model and complimentary role definition for corporate, divisional, and project procurement execution around the world. This enables SNC-Lavalin to operate as a unified supply management organization capable of successfully delivering strategic, operational, and transactional procurement benefits to our clients. Project Procurement Disciplines Procurement Management Contract Administration Purchasing Material Management Logistics Quality Surveillance & Inspection Expediting Bidding / Award Supply/ Definition Execution Delivery Construction Close-out Fabrication 12

13 SPEND Total: 39.6B ( ) Geography Purchase Type Process Equipment Electrical & Bulks Structural & Steel Construction Equip. Piping & Valves HVAC & Ventillation Rotating Equipment 13

14 SNC LAVALIN GLOBAL SUPPLY CHAIN 14

15 SNC LAVALIN GLOBAL SUPPLY CHAIN Procurement Key Controls SNC-Lavalin is committed to ensure the highest Ethical, Social and Environmental standards are applied by All Employees, Suppliers, Sub-Contractors and Business Partners. To support this commitment, Global Procurement develops the Policies, Standard Operating Procedures, Processes, Methodologies and Procurement strategies to ensure financial and operational controls are compliant and working effectively. Supplier Qualification Bidder Identification Sole Source Justification/Bid Waiver Bank Guarantees & Letters of Credit Commitments with Suppliers and Sub-Contractors Recommendation to Purchase Awards with Suppliers and Sub-Contractors 3-Way/4-Way Match and Invoice Management Supplier Performance Management 15

16 SNC LAVALIN GLOBAL SUPPLY CHAIN Systems & Tools PM+: Project Management System GPS: Global Procurement System Smartplant Entreprise Project Lifecycle Integrated Solution Pre-Award Phase Post-Award Phase Central Repository for Supplier Profiling and Qualification E-Sourcing/E-RFX Bidding Cycle Management Supplier Performance Management Compliance, KPI`s, Spend and Analytics 16

17 SNC LAVALIN GLOBAL SUPPLY CHAIN Supplier Registration SNC-Lavalin seeks to develop and maintain a strong and competent Local, Regional and Global Supplier base able to support its continuous need for various quality Goods and Services world-wide. If you are interested in supplying goods or providing services to our company and our projects, you must Register by selecting the Register link located in the Suppliers section of our Corporate website. 17

18 SNC LAVALIN GLOBAL SUPPLY CHAIN Supplier Qualification Process All proposals and quotations are evaluated considering the competiveness of the pricing, the quality of the Goods and Services, the overall Supplier capabilities, in addition to any factors which contribute to the total cost of ownership (TCO) of the Goods or Services. 18

19 SNC LAVALIN GLOBAL SUPPLY CHAIN Supplier Development Programs & Strategic Sourcing As sourcing markets evolve, programs such as Certification, Supplier of Choice (SoC) and Strategic Supplier Alliance are designed to support our vision to deliver excellence through innovative Strategic Sourcing. Global Procurement Supplier Development Programs are designed to provide our Supplier Network with the opportunity to progress and attain a Certified, Supplier of Choice (SoC), or Strategic Supplier Alliance status. 19

20 SNC LAVALIN GLOBAL SUPPLY CHAIN Supplier Relationship Management Category Managers work with the project procurement teams and use GPS to gather supplier performance data in support Supplier Development Programs overall Supplier Relationship Management. Sound business relations with our Global Supplier network are essential in order to maintain reliable sources of supply and quality goods and services for our clients. 20

21 Supplier Fair Windsor-Essex April 29 th 2015 Rick Norris Director, Procurement-Nuclear Power 21

22 POWER Power Our areas of activity include hydro, thermal and nuclear power generation, energy from waste, green energy solutions, and transmission and distribution projects. We offer end-to-end project services including front-end engineering design (FEED) for project feasibility, detailed design, construction, commissioning and operation of power facilities. We also offer unique expertise in the application of information technologies and in telecommunications and network design. 22

23 POWER - NUCLEAR CANDU reactors supply approximately 50 per cent of Ontario s electricity and 16 per cent of Canada s overall electricity requirements. Internationally, they are an important component of clean air energy programs on four continents with over 22,000 megawatts of installed capacity. (China, Romania, South Korea, Argentina, Canada). Our lines of business in general terms are Life Extension, Candu Services and New Builds. SNC-Lavalin purchase of Candu Energy Inc. in Full Integration of Candu Energy Inc. and SNC-Lavalin Nuclear Inc. end of Combined SNC-Lavalin Nuclear Group formed. 23

24 POWER - NUCLEAR Argentina: Embalse Life Extension & Atucha 3 New Build Argentina currently has 3 reactors in service, including one CANDU 6 unit in operation at Embalse. A project for the Life Extension of the Embalse CANDU 6 is underway. The reactor shutdown is scheduled to occur by the end of In 2013, the Argentine government announced that the next nuclear project at the Atucha site would be a CANDU project. The technical community in Argentina is very supportive of a CANDU new build. China and Argentina have signed an agreement for the Chinese financing of the Atucha 3 CANDU new build project. This will be a single unit CANDU 6 station, with SNC-Lavalin performing supply and procurement of key equipment. SNC-Lavalin is engaged in on-going discussions and commercial negotiations with both Argentina s state utility, NA-SA, and China National Nuclear Corporation (CNNC) for the delivery of this project. Pre-project work is expected to begin by the end of

25 POWER - NUCLEAR Romania: Cernavoda 3/4 New Build SNC-Lavalin (formerly AECL) has been active in Romania since the early 1980s and is a major contributor to the nuclear infrastructure in the Romanian market. The two CANDU units (1&2) at the Cernavoda site provide approximately 20% of the country s electricity. The current model envisions CGN becoming a majority shareholder in the project in partnership with Romanian State utility SNN and in a delivery consortium with SNC-Lavalin for the project. The division of responsibility for the project has been established, with SNC-Lavalin providing NSP Engineering and Procurement. This is a major opportunity for the Canadian supply chain. In the fall of 2014, CGN was officially accepted as the majority investor and is currently in negotiations with the Romanian state utility, SNN, on key terms. The agreement is to be signed in May. Once the agreement is complete, CGN will begin a funded pre-project program. 25

26 POWER - NUCLEAR United Kingdom: EC6 CANMOX New Build The UK government has made a major commitment to a nuclear new build program to grow its nuclear energy capacity in light of its planned reduction of dependence on fossil fuels. The UK is also interested in dispositioning its stockpile of civilian Plutonium through use in nuclear power plants. SNC-Lavalin completed a contract from the UK Nuclear Decommissioning Authority (NDA) to study the technical and commercial feasibility of burning the UK s Pu stockpile in Enhanced CANDU 6 (EC6) units. The project would see a 2 to 4 unit EC6 CANMOX plant built with an associated fuel fabrication facility. The NDA views the CANMOX-ready EC6 option favourably. The CANDU technology was identified as one of the 3 options for Pu disposition. A technology decision will be made after the UK election in May 2015, at which point the NDA will move into a procurement phase. 26

27 POWER - NUCLEAR China: AFCR New Build China is the world s largest market for nuclear technology, with a projected capacity of 150 GWe by China currently operates two CANDU units at the Qinshan nuclear plant. These units are among the top performing reactors in China. SNC-Lavalin and China National Nuclear Corporation (CNNC) are engaged in the joint development of the Advanced Fuel Cycle CANDU (AFCR) reactor. This technology is meant to work in synergy with China s growing LWR fleet, using LWR spent fuel to power CANDU reactors at a ratio of 4 to 1. SNC-Lavalin and CNNC have signed a Framework Joint Venture agreement in November 2014 to develop the technology further. A Chinese Expert Panel in 2014 made a recommendation to the Chinese government to begin deployment of AFCRs in China in order to re-use China s spent LWR fuel and decrease its need for new uranium. Development of AFCR technology establishes a path for CANDU New Build in China and the potential of export into third markets. 27

28 POWER - NUCLEAR Other Markets & Opportunities India: The conclusion of the NCA between Canada and India paves the way for new market opportunities in India to support its large PHWR fleet. SNC-Lavalin is positioned to re-engage with the market to explore opportunities. Poland: SNC-Lavalin welcomed Poland s largest utility, PGE, to Canada to discuss its first NPP project in SNC-Lavalin has continued discussions with PGE and remains engaged and interested in the program. LWR Market Opportunities United States: Small presence in the US based on niche products and capabilities. Expansion in the market with local office, partnerships and acquisition envisioned for France: Exploring opportunities (LWR Services, Decommissioning) in the market in partnership with French companies. 28

29 POWER - NUCLEAR Ontario, Canada: Darlington NPP Life Extension The definition phase of the Darlington RFR project is underway. The scope currently underway is design and manufacturing of retube tools, execution planning, and the procurement of permanent reactor components for Unit 2. The definition phase will be completed in 2015, leading to the execution phase starting in Ontario, Canada: Bruce NPP Life Extension Bruce Power s recent announcement regarding its asset management and life extension program for the remaining Bruce units creates a significant opportunity for SNC-Lavalin to provide technology and engineering services to the project. The asset management phase will provide opportunities for engineering support services leading to the retube of Unit 4 in 2017 and Unit 3 in

30 SUPPLIER QUALIFICATION Only suppliers deemed capable of delivering goods and services meeting Candu s technical and Quality Assurance requirements are issued Requests of Quotation/Proposal. Suppliers of Nuclear or Non Nuclear Pressure Retaining equipment and material must hold a valid Certificate of Authorization for the scope from a Provincial Authorized Inspection Agency such as TSSA in Ontario or the American Society of Mechanical Engineers (ASME). This is required for bidding as well as for any subsequent contracting of work. Suppliers of goods other than Pressure Retaining equipment and material are initially screened for their acceptability to bid ( Qualified to Bid )and later audited for their acceptability ( Qualified for Award )before placing a Purchase Order. 30

31 QUALIFYING TO BID Suppliers must be registered on SNC-Lavalin Nuclear s Qualified Suppliers Database under the category Qualified to Bid. Only bids received from suppliers on the Qualified Suppliers Database (QSD) are evaluated. A preliminary assessment of the supplier s QA Program is made by SNC-Lavalin Nuclear s Quality Assurance before placing the supplier on the QSD. The preliminary assessment of the supplier s QA program will include verification of the supplier s third party certificates that are relevant to the nuclear industry. These include ASME or TSSA Certificates of Authorization for pressure boundary items and ISO 9001, Z299 or NQA-1 certificates issued by recognized registration authorities. The preliminary assessment may also include review of the supplier s Quality Assurance Manual. In addition to the QA Program review, the supplier s technical capability is also assessed by Candu Engineering. This is typically done by requiring the supplier to submit a technical questionnaire or by reviewing the supplier s reference material demonstrating its ability to furnish the required product or services. 31

32 QUALIFYING TO AWARD Only those suppliers entered on Candu s Qualified Supplier Database as Qualified to Award may be used by Candu s Procurement Department to place a Purchase Order. All new suppliers must be audited and accepted by Candu Quality Assurance in order to be placed on Candu s QSD under the designation Qualified to Award. Suppliers that are already on Candu s QSD will remain on the QSD provided that an audit of their Quality System implementation is performed at least once every 3 years. 32

33 NUCLEAR QUALITY ASSURANCE Nuclear Quality Assurance shares the same fundamental requirements of Quality Assurance as other industry but there are a number of significant differences. Common elements include focus on planning to assure high quality ( Measure twice, cut once ) and implementing a Quality Management System per ISO Additional requirements of nuclear Quality Assurance include the requirement to maintain independence of Quality Assurance function from Production function, need to obtain customer acceptance of Inspection and Test Plans before work begins, in-depth requirements on Design Verification, validation and verification requirement for analytical software, full traceability of product and processes, auditing of sub-suppliers where required and requirement to review sub-suppliers design output documents and process documents using qualified personnel. 33

34 NUCLEAR CULTURE Nuclear industry demands that full disclosure is made of safety related deficiencies after the product is shipped. Emphasis is on planning and on prevention. Tools to minimize human errors are used extensively. These include 3 Way Communication, Self Checking, Questioning Attitude, Pre-Job Briefing, Post Job Review and Procedure Use and Adherence to list a few. 34

35 WE CARE embodies SNC-Lavalin s key corporate values and beliefs. It is the cornerstone of everything we do as a company. Health and safety, employees, the environment, communities and quality: these values all influence the decisions we make every day. And importantly, they guide us in how we serve our clients and therefore affect how we are perceived by our external partners. WE CARE is integral to the way we perform on a daily basis. It is both a responsibility and a source of satisfaction and pride by providing such important standards to all we do. WE CARE about the health and safety of our employees, of those who work under our care, and of the people our projects serve. WE CARE about our employees, their personal growth, career development and general well-being. WE CARE about the communities where we live and work and their sustainable development, and we commit to fulfilling our responsibilities as a global citizen. WE CARE about the environment and about conducting our business in an environmentally responsible manner. WE CARE about the quality of our work. WE CARE about being world-class in matters of governance and ethics & compliance for our shareholders, clients and employees. 35