Managing the supply chain: Challenges and Overcoming in Korean nuclear industry TM on Topical Issues in the Development of Nuclear Power Infrastructure 4-7 February 2014, Vienna, Austria International Cooperation Team Technology Policy & Strategy Department Korea Hydro & Nuclear Power Co.(KHNP)
The Table of Contents Supply Chain in Nuclear Industry Challenges and overcoming
Supply Chain in Nuclear Industry
Status of NPPs in Korea Operation 23 Units 20,716MW Construction 5 Units 6,600MW Planning 6 Units 8,400MW Seoul : 5 th & 6 th New site Samcheok Hanul NPP Operation : 6 units Construction : 2 units Planning : 2 units Yeongdeok Operation : 6 units Hanbit NPP Wolsong NPP Kori NPP Operation : 5 units Construction : 1 units Operation : 6 units Construction : 2 units Planning : 4 units 2
5 Electricity Mix Source : KEPCO(Dec.2013) 20,716MW 138,784GWh Others (11.4%) (23.8%) Coal (28.2%) Others (3.5%) Oil (5.8%) (27.0%) Oil (8.5%) Gas (28.0%) Gas (24.7%) Coal (39.0%) Others: Hydroelectric, Renewable, etc. Others: Hydroelectric, Renewable, etc. Nuclear power is used as a base load
6 31 Operating Plants Kori 1,2,3,4 / Shin-Kori 1,2 Hanbit 1,2,3,4,5,6 Wolsung 1,2,3,4 / Shin-Wolsung 1 Hanul 1,2,3,4,5,6
7 Construction Plan KOREA Construction Planning Shin-Kori Aug. 2014 Sep. 2014 Dec. 2019 Dec. 2020 Dec. 2023 Dec. 2024 Shin-Kori 3 Shin-Kori 4 Shin-Kori 5 Shin-Kori 6 Shin-Kori 7 Shin-Kori 8 APR1400 APR1400 APR1400 APR1400 APR+ APR+ Shin-Hanul Apr. 2017 Apr. 2018 Jun. 2021 Jun. 2022 Shin-Hanul 1 Shin-Hanul 2 Shin-Hanul 3 Shin-Hanul 4 APR1400 APR1400 APR1400 APR1400 Shin-Wolsong Jul. 2014 Shin-Wolsong 2 OPR1000 UAE May 2017 May 2018 May 2019 May 2020 UAE 1 UAE 2 UAE 3 UAE 4 APR1400 APR1400 APR1400 APR1400 4
National Networking for NPPs Nuclear R&D Institute R&D of Nuclear technology Development of new technology Regulatory Authority Licensing & inspecting NPP Regulatory guide Utilities Operation and maintenance Construction management Fundamental for industries Government & KHNP Nuclear policy and promotion Planning of nuclear Power Enactment of Nuclear Power Industries Construction, design & A/E Manufacturing of component and equipment Manufacturing of nuclear fuel Universities Society & Associations Education in Nuclear Engineering Education in Science & Engineering B.S., M.S., Phd of Nuclear Engineering Korea Nuclear Society(KNS) Korea Atomic Industrial Forum(KAIF) Korea Nuclear Energy Promotion Agency
Supply Chain for NPPs
Organization for Project Management KHNP NSSC A/E Equipment Supply Construction Start-Up NSSS T/G FUEL BOP KEPCO E&C DOOSAN DOOSAN KNF DOMESTIC & FOREIGN CONSTRUCTORS KHNP NSSC: Nuclear Safety and Security Commission KEPCO E&C : KEPCO Engineering & Construction DOOSAN : DOOSAN Heavy Industries Co. KNF : Korea Nuclear Fuel Co. CONSTRUCTORS : HYUNDAI, DAEWOO, SAMSUNG, DOOSAN, DAELIM, etc.
Challenges and overcoming
Challenges in the Nuclear Industry Fukushima Accident Safety Culture Issue Counterfeit Certificates Corruption Scandals
Safety Culture Issue Cover-up of SBO at Kori #1 Event Station Blackout for 12 minutes in a cold shutdown in Feb. 2012 Not to report the loss of power and classify an emergency Safety Culture Breach Decision by the station manager not to report and instead to delete record of the event Prevention measures 24 Hours Monitoring System by the regulatory body Reinforcement of safety culture and reporting system IAEA s Expert Mission to review the SBO Safety culture advisory service by foreign third party
Counterfeit Quality Certificates CGID Issue In November 2012, KHNP confirmed that some suppliers had supplied items by falsifying the foreign dedication entities' quality certificates for Commercial Grade Items Dedication(CGID), such as fuse, relay, diode, etc.
Counterfeit Quality Certificates CGID Issue KHNP shut down Hanbit #5, 6 to replace the components with the forged quality certificates NSSC formed the government-civilian joint investigation team which investigated falsification of certificates of the items supplied to KHNP Comprehensive inspections expanded to all Q-class QVD(Quality Verification Document) of the items supplied to KHNP over the past 10 years for all of the Korean NPPs while investigating certificates for CGID All parts with falsified certificates were replaced and NSSC gave permission for the restart of the NPPs after safety check in January 2013
Counterfeit Quality Certificates CGID Issue KHNP 1 Purchase Order Supplier Forged 2 Request for Dedication 3 Notification of Result Dedication Entity 4 Delivery KHNP
Counterfeit Quality Certificates EQ Issue In May 2013, It was found that the falsification of equipment qualification(eq) certificates of control cables supplied to Shin-Kori #1, 2, 3,4 and Shin-Wolsong #1, 2 Safety function verification in severe environment such as LOCA, Fire, Melting accident, etc. Test results in the EQ were falsified by local certified testing institutes. KHNP immediately shut down affected NPPs to replace related parts NSSC s investigation was expanded to all NPPs certificates for EQ The component with falsified certificates were replaced or retested. NSSC permit restart of the plants in January 2014
Counterfeit Quality Certificates EQ Issue Tolerated KHNP 1 Purchase Order Testing Institutes Verification Agency 4 Request for Verification 5 Approval of Result Supplier 2 Request for Qualification 3 Notification of Result Testing Institutes Forged 6 Delivery KHNP
Counterfeit Quality Certificates EQ Issue
Counterfeit Quality Certificates EQ Issue
Counterfeit Quality Certificates Scope Counterfeit Items CGID QVD EQ Forged Quality Certificate Reuse of past Certificates Issue of Fraudulent Certificates Changing Test Results Changing Test Results Changing Test Condition (Boric Solution Normal water) Changing Test Report of Laboratory by Supplier buzzer, diode, transformer power supplier, switch, fuse relay, rectifier, magnetic contactor pressure gauge, blower pully, fan, motor pump, bushing, nut, bolt heater, tool set sleeve, actuator filter, valve disk control switch module control rod position transmitter radiation monitoring sensor AHU 600V control cable fuel tank
Corruption Scandals in supply chain The investigation began after a tip-off from a citizen in September 2011 Prosecutor's Office launched investigation on corruption related to nuclear power plant items Vendor, test institute, verification agency, and KHNP has been implicated The main cause was the disadvantage when the supply was delayed Prosecutor's Office and NSSC collaborated in reviewing the safety of nuclear power plants and confirmed that there was no item directly related to safety As a result of the investigation, 97 persons were prosecuted on a charge of corruption
Prevention measures 1 Strengthening quality control, 2 Improving procurement system 3 Eradicating corrupt relationships in supply chain Strengthening quality control system Establishment of a procedure for monitoring quality control by a third party Reinforcement of legal liability of quality accreditation organizations Introduction of NPP equipment certification management institution, etc. Improving procurement system Strengthening Independence of procurement department in KHNP Enhancement of bidding system transparency Organizing a committee to improve NPP procurement, etc. Eradicating corrupt relationship Prohibiting the re-employment of retirees in nuclear related companies Hiring outside personnel in KHNP, etc.
lessons learned Not to be overconfident and complacency Excellent performance of NPP operation for long period of time Export of a NPP at the first time in Korea s nuclear history To be transparent and open in quality and procurement activities Nuclear industry is easy to be closed due to the nature To encourage anonymous reporting The counterfeits and scandals was revealed by an anonymous tip-off To cooperate with international agencies, WANO, IAEA and foreign companies IAEA Expert Mission, WANO Corporate Review, Third party inspection
Strategy to overcome Public Trust Restoration & High Performance Safety First Policy Safety culture Equipment Reliability Engineering Competency Innovation Organization Personnel management Corporate culture Integral System Quality control Procurement system Corruption prevention
Thank You! Korea Hydro & Nuclear Power Co.(KHNP)