How to face higher quality expectations for the global nuclear supply chain

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1 Nuclear Science and Technology Symposium How to face higher quality expectations for the global nuclear supply chain Helsinki, 3 November 2016 Stephane GALOPIN stephane.galopin@fr.bureauveritas.com

2 Nuclear quality and safety: what is at stake? Nuclear new build projects are more and more complex and the internationalization of the supply chains reinforces this complexity due to: Technologies Health & Safety requirements Multi-regulatory frameworks Digitalization Approximately 10 consolidated technology vendors offer technology & services across much of the nuclear fuel cycle Regulatory requirements National regulation, CE Marking, nuclear framework etc. International standards To enhance customer satisfaction : ISO (+ISO 14001, OHSAS etc.) To achieve and enhance safety : IAEA GS-R part 2 Codes & standards for design, manufacturing, construction and maintenance Ex. (QA/QC) : ASME NQA-1, RCC-M section 1, GOST R All ongoing nuclear projects worldwide have to face this complexity 2

3 New challenges for New Build projects Main challenge is the continuous optimization of the performance of the supply chain in a context of globalization and strong competition New comers and emerging markets: Asia, Middle East, Eastern Europe New design based on adapted/improved existing technologies or disruptive innovation Economies of scale resulting from vertical integration and export strategies State-backed financing solutions increasing cost pressure Preference for domestic players (or local-foreign JV) stressing need for localization All actors of the supply chain are key contributors to achieve these challenges (operators, manufacturers, suppliers, nuclear safety authorities, ) Increasing internationalization: systems and components designed and manufactured worldwide and submitted to regulation of installation country Strong commitments regarding cost & schedule Global cooperations between nuclear safety authorities worldwide 3

4 TIC: Bureau Veritas nuclear core business Testing Inspection Certification employees offices & laboratories 140 countries 4

5 Lessons learnt from current projects 5

6 Lesson #1: Improve Qualification of Suppliers The supplier qualification process is the first step of Supplier Management Minimum requirements concerning safety, economic, environmental and social performance standards as well as basic business criteria required by the customer Basic QMS certification pre-requisites: ISO 9001, ISO 14001, OHSAS 18001, ASME NQA-1 (/10 CFR 50 appendix B), IAEA GS-R-3/GS-R Part 2 Additional requirements from local regulations: Ex: Finland, YVL A.3 Management system for a Nuclear Facility, 629: Suppliers of safety-significant products shall have in place a management system that is appropriately certified or independently evaluated by a third party. Ex: Russia, regulatory act RD Conditions for supply of imported components, items and materials for nuclear facilities Ex: France, Ministerial order related to General technical regulations applicable to basic nuclear installations (7th february 2012): Monitoring of the accomplishment by an outside contractor of activities important for protection must be ensured by the licensee itself ( ) Ex: South Africa, position paper PP : General requirements for the monitoring and measurement programme to be fulfilled by the applicant and its suppliers are provided in RD-0034, 11.1 Monitoring and Measurement. This requires an audit and/or inspection plan or quality plan to be developed and submitted to the National Nuclear Regulator (NNR). 6

7 Lesson #2: Towards harmonization of quality standards Two major nuclear references + Industrial experience feedback from recent constructions & projects GS-R-3:2006 SPECIFIC REQUIREMENTS NQA Integration of ISO 9001: Organization context - Risk based thinking - Enlarged compatibility with services - Safety Culture - Classification of items and activities - Grading the application of quality requirements - Competence and qualification of human resources - Provisions for commercial grade items and for counterfeit, fraudulent or suspect items added to = Integrated in ISO 9001:2008 structure, as an industry consensual quality management standard Publication in

8 Lesson #3: Develop suppliers quality expertise Support suppliers to achieve the level of excellence in terms of Quality/Safety, Cost and Delivery performance Nuclear safety Technical and regulatory training: reactor technology, applicable codes, norms, regulation Management of contractual requirements and technical specifications: make sure contracts and quality specifications clearly express what is expected from the supplier in terms of management of its own supply chain Support nuclear supply chain to understand, translate (in operational documents and processes) and implement quality requirements (technical assistance) Develop global partnerships within nuclear industry to share and implement best practices Risk Management, Project Management and continuous improvement to increase reliability and achieve sustainable top delivery performance (example: digitalization) QA/QC processes and documentation (internal or outsourced) Monitoring from procurement till shipping (oversight & inspection) 8

9 Lesson #4: Products conformity assessment Example: Third Party regulatory inspections of pressure equipment and systems Finland: Olkiluoto 3 France: Flamanville 3, replacement steam generators UK: Magnox & Sellafield Decommissioning activities Russia: Welding data books and Welders Qualification China: Pressure Equipment Directive Independent conformity assessment through Third Party increase expectation level and confidence in the quality of the nuclear supply chain (manufacturer, operator, authorities, public) Consider demonstration of conformity as a key integrated process supporting design, manufacturing and assembly processes 9

10 Lesson #5: Close cooperation with nuclear safety authority Historical recognition from worldwide Nuclear Safety and Radiation authorities ASN (France) STUK (Finland) ONR (United Kingdom) TAEK (Turkey) RTN (Russia) KA Care (Saudi Arabia) NRC (USA) ARN (Argentina) NNR (South Africa) SSM (Sweden) 10

11 Lesson #6: Develop local partnerships 11

12 Conclusions Independent Third Party has become a strong support to New Build programs International supply chain and new comers No more preferred technologies Suppliers now need to master several technologies, several codes and several regulations but the Quality Management fundamentals remain the same For NPP operators, this means: A more competitive supply chain: Opportunities to qualify new suppliers with an existing experience and lessons learned from other nuclear technologies A need to localize competences, skills and resources. and potential growing costs generated by multiple certification schemes Added value of independent Third Party: bridge the gaps between regulations, technologies and stakeholders to support daily business challenges 12

13 - Copyright Bureau Veritas Titre 13

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