Join the UK Nuclear Renaissance

Procurement & Quality Process

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UK Supplier Day, March 16th Birmingham

EPR is a trademark of the AREVA Group

The Process: AREVA Supply Chain Strategy

Didier David AREVA Production Purchasing Vice President

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UK nuclear new build is an opportunity for the UK supply chain

To deliver multiple EPR new builds in UK, AREVA needs a strong UK supply chain Start UK, then go global as an AREVA supplier

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AREVA has a vision to share with more suppliers

A new generation of suppliers for a new generation of reactor Purchasing Strategy
AREVA continuously seeks to enrich, develop and optimize its worldwide panel of supplier partners in order to select the most competitive solutions with respect to both technical and financial requirements. Long-term partnerships will be developed with selected suppliers in order to Respond to local requirements
DOMESTIC PROJECTS

Offer competitive solutions worldwide to our customers

INTERNATIONAL PROJECTS
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The AREVA Purchasing organization One face to suppliers

A Corporate interface (Commodity Manager) Vision and strategy Supplier development & continuous improvement New business opportunities A Project interface (UK Project Procurement Manager) Specific project-related business = UK Supply Chain

a supplier customer partnership relationship

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The AREVA UK purchasing organization

UK AREVA dedicated team is in charge of all aspects of procurement from tender phase to the beginning of the warranty period in particular Suppliers selection Orders Follow up of deliveries (Expediting) Purchasing in UK project ensures that equipment or services are bought on time, within a defined budget, according to quality on technical specs, in respect of contractual obligations towards the final client
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Involve suppliers in a continuous improvement approach

Stimulate supplier creativity with contracts stipulating quality, cost and delivery objectives Encourage active supplier participation in codevelopment initiatives Implement Sustainable Development Declaration for suppliers Develop and formalize long-term partnerships with written agreements

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AREVA Purchasing Scope of Supply

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AREVA Scope of supply: NI

Areva

Scope of supply: NI

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EPR Project - Scope of supply

EPR New Plants General Scope Sharing NI/TI
AREVA is managing the scope related to Nuclear Island
System Design, Concept Design, Basic Design, Detail Design Layout, all planning activities Procurement of all mechanical equipment (incl. piping), all electrical and I&C equipment, HVAC-equipment Installation of all equipment and commissioning as well as overall coordination of Plant commissioning BNI might be in customers Scope (EDF)

Turbine Island is managed by a partner (could be in a Consortium) Civil Works could be managed by Partners

There are various Project Schemes which could be applied creating several potential Customers for UK Suppliers!
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Main activities for NI scope

Design services

Fabrication and delivery of materials (equipment, components)

Erection & commissioning on the NPP site

Project management and associated activities Identification of potential supplier partners as early as possible
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AREVA NP Quality Management Specification for the Supply chain

In AREVA NP QA prescription to its suppliers: a graded approach
For safety related product/services (mainly Class 1 & Class 2): Compliance with ISO9001-2000 + additions based upon IAEA GS-R-3 2006

For non safety related product/services but important for installation (Class 3 & NC impacting schedule, cost, availability): Compliance with ISO9001-2000

For all products/services attention is drawn to:

Environmental program (ISO14001) Safety program (OHSAS 18001)

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Procurement Methodology
Definition of the request for tender file Qualification of potential suppliers (Approved Vendor List)

Consultation and selection of Suppliers

Definition of the contract to the selected Supplier(s) Implementation of the contract by the Supplier Delivery of the product manufactured by the Supplier to our Customer
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Typical Procurement Expediting Process

3 types of information to be followed up
General data (from procurement activities) Dates (from Time Schedule) Performance indicators

4 consecutive phases for procurement of equipment

Phase 1

Phase 2

Phase 3

Phase 4 Time

Delivery of requisition Purchase Order passed Start of manufacturing Delivery to site

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How to become an EPR UK supplier:

Respect Sustainable Development

Sign AREVA Sustainable Development Charter

Target the right product

Supplier should have the required technical capabilities

With the right quality requirement

Supplier & product should be qualified

At the right cost

Supplier should be competitive

Be on-time
Supplier should have a proven reputation for on-time delivery

Be able to supply a fleet of EPR reactors

The Supplier should have project management capabilities for the scope of supply
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EPR reactor Scope of Equipment Supplies & Erection Services

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Scope of External Procurement (1)

Mechanical Equipment
Fuel Handling Equipment Polar Crane All Pumps (excluding Main Coolant Pump) All Valves All Pressure Vessels (excluding Pressurizer and RPV) All Heat Exchangers (excluding Steam Generators) All Filters / Process Components All Waste Components Fire Fighting Equipment Physical Plant Protection Equipment Special Devices, e.g. Filter Changing Machine, Multi-Stud Tensioning Device, Core Catcher, Airlocks, Liner, etc.)
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Scope of External Procurement (2)

Piping and Support Materials Supplies

All piping material (excluding Primary Loop) All fittings, forgings, elbows, flanges, compensators All support material incl. steel structures Piping prefabrication and installation works (including design for layout, detailed isometrics and spooling)

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Scope of External Procurement (3)

Heating / Ventilation / Air Conditioning (HVAC)
Refrigeration Units / Chillers Containment Isolation Dampers Gas-Tight Dampers, Isolation Dampers, Non-Return Dampers Fire Dampers/Smoke Relief Dampers Fans (Ventilators) Heaters, Air Heating Unit, Humidifiers Silencers Filters Other HVAC-Equipment (Blast Valves, Black Box Systems)

Waste Management Equipment (starting from Conceptual Design, provided by AREVA including Installation)

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Scope of External Procurement (4)

Components for Electrical Equipment
Diesel Generators (EDG and SBO) MV-Switchgears, LV-Switchgears Batteries, UPS Containment Cable Penetrations Transformers, AC/DC Converters, DC/AC Inverters Cables (LOCA Cables and Non-LOCA Cables) Cable Trays including Support Structures Cable Seals, Junction Boxes Building Technology Equipment for complete electrical infrastructure

Installation Services for all Electrical Equipment

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Scope of External Procurement (5)

Components for I&C Equipment

I&C equipment will be procured externally: All Radiation Monitoring Systems Dosimetry Equipment Physical Health Stationary Equipment

Sensors & Instrument Tubing

Instrumentation Sensors (Flow, level, pressure, temperature, chemical,) Instrumentation Tubing Instrumentation Frames

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Scope of External Procurement (6)

Electrical Infrastructure including systems such as:
Telephone, LAN/WAN, Intercommunication Systems Public Address & Alarm Systems Clock Systems CCTV Systems Lighting Systems and small power systems Fire Alarm systems and fire damper control And Electrical Physical Protection Systems such as:
Specific Power Supply Intercommunications CCTV Access Control Security Alarms and associated control stations & desks
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UK Orders & How to start process

Majority POs starting 2012 2009 / 2010 to be qualified

Next steps: RFI in Q2/2009 Suppliers Selection Pre assessment visits

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Nuclear Quality Supplier Qualification Process

Thierry Zumbihl Vice President, Quality-Plants Sector

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Quality requirements in UK

HSE requirements are expressed in the Safety Assessment Principles (2006 edition - revision1)
Leadership and management for safety (SAP MS.1) quality management system shall be used to ensure that safety is being maintained and improved reference to international standards

HSE expectations are

QA arrangements from licensees and vendors to cover IAEA GS-R-3 and ISO-9001 requirements graded approach = application of controls proportional to safety significance
The IAEA safety guide GS-R-3 = The Management System for Facilities and Activities released in 2006
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AREVA NP Quality organization: international approach adapted to UK expectations

The AREVA NP quality system is based on

international nuclear quality standard (IAEA GS-R-3) industry consensus quality standard (ISO-9001) graded application

General AREVA NP quality approach

covers UK requirements and regulator expectations addresses requirements in most of the countries global market

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How do these requirements apply to component and service suppliers?

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AREVA NP Quality requirements

Quality requirements based on component or service importance to safety

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Nuclear quality specific requirements

Defined in a generic AREVA NP specification (Q-N-100) Complement ISO-9001 requirements Nuclear specific requirements (examples)

Activities important for safety: refer to activities performed

during purchase order performance and where failure may lead to a non-conformance regarding requirements linked to safety notified by AREVA NP.

Safety Culture: measures are required from the supplier

management system to promote and support a strong safety culture.

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Nuclear quality specific requirements

Nuclear specific requirements (examples)

Grading the application of the quality management system: for the performance of the purchase order, identification of the activities important for safety Documentation: a quality management plan is required from the supplier Control of the design documentation: Design/Engineering activities are verified by individuals competent and other than those who carried them out Inspection: inspection is carried out by individuals competent and not involved in carrying out the activity. The conditions of this inspection are described and justified Purchasing: the purchasing data are verified by individuals competent and other than those who prepared them
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Qualification of the suppliers How to proceed ?

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Purpose of supplier qualification process

Why?
To assess the capability of a supplier to fulfill AREVA requirements applicable to products and services for nuclear power plants

A prerequisite
to product qualification and for placing purchase order

Part of a global process involving technical, commercial, financial and quality

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Quality supplier qualification process (new suppliers)

STEP 1

Pre-selection Pre-selection

Review based on suppliers answer to our questionnaire Assessment by AREVA NP QA team Supplier proposes improvement action plan

STEP 2

assessment assessment

On-site On-site

STEP 3

Improvement Improvement measures measures

Suppliers Suppliers

STEP 4

Review by Review by
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Implementation reviewed by AREVA NP

TOTAL DURATION : 6 to 12 Months for safety grade qualification
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Approved vendor list

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A cooperative attitude

AREVA NP offers support to the supplier during qualification process

Provides materials for employees awareness and training Organization of advanced technical training Assessment with identification of improvement axis

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Summary

Success is in your hands

Company management commitment Disseminate safety culture to employees No compromise on quality requirements Relation based on trust and transparency

For further questions contact us: epr.uksupplychain@areva.com

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AREVA NP Equipment / Supplier Qualification Process

Yves Robin Senior Sourcing Manager

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Table of contents

The Nuclear Island Context

A search to match Equipment & Supplier A set of specifications A reference to Codes & Standards

The Qualification Process

A need for project risk management A successful experience A running process

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The context
Safe and reliable NPPs worldwide require the selection of the right match of Equipment and Supplier

Nuclear Island Equipment,

Some for safety related systems Some non related to safety functions

Nuclear Island Suppliers

Quality management ability is a pre-requisite Capability to design and manufacture equipment Capacity to supply on time Competitiveness AREVA qualification process is structured to secure a match between Equipment and a Supplier for long term & worldwide partnership
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Equipment specifications

etc. Piping Vessels/Exchangers Pumps Valves Table of Contents

Quality Quality Requirements Requirements

With modulation With modulation according to Safety according to Safety Class and National Class and National Regulations Regulations -- Quality Management Quality Management -- Documentation Documentation -- Inspection Inspection

Technical Technical Codes & Codes & Standards: Standards:

ASME, RCCM, ASME, RCCM, KTA KTA

Introduction 1. Scope 2. Definitions 3. Documentation 4. Design 5. Materials 6. Manufacturing 7. Operability 8. Requirements for Auxiliary Systems, Venting, Drains, Integral Supports

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Quality requirements
Rules depend upon the safety level and public safety impact of the equipment:
International IAEA rules National laws Owners own Quality & Inspection requirements AREVAs QM requirements & Surveillance requirements of detailed design and manufacturing

Surveillance intensity of AREVA depends on

The safety level and complexity of the equipment The experience of the supplier and feedback of previous contracts

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Codes & Standards: RCC-M or ASME III

RCC-M Code
Section 1
A B C D E G H J P Z

ASME Code
Section III

Nuclear Island Components

General requirements Class 1 components Class 2 components Class 3 components Small components Core support structures Supports Storage tanks Containment penetrations Technical appendices

Section 2 Section 3 Section 4 Section 5

Materials Examination methods Welding Fabrication

NCA NB NC ND None NG NF NC/ND 3800-3900 NE Appendices

Section II Section V Section IX (Qualifications) Various parts of Sect. III

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General view for EPR Reactor Codes and Standards selection

EPR Reactor Global Application

Classification
ASME Sect.III NB+ ASME+ Sect. III NC RCC-M Sect. I Subs. B supplemented when needed
+:

Class 1

Class 2

ASME+ Sect. III NC or RCC-M Subs. C

Class 3

ASME Sect. III ND+

Harmonized Standards PED 97/23 EC

or ASME

Sect. VIII Industrial div.1 Standards

or National

Plus specific requirements Nuclear codes optional

NC
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Harmonized Standards: EN 13445, 13480, National Industrial Standards: ASME VIII, AD-M, BS, CODAP,
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Codes for mechanical components of EPR Nuclear Island

For the main primary system components (Class 1):

the first EPRTM units (OL3, FA3, TSN1&2) are RCCM and will be ASME III in US for UK it will have to be agreed with both clients and Regulator

For the majority of all other equipment (Class 2, 3 and Non Classified):
AREVA current practice is to open its specifications to the possible alternatives: ASME or RCCM or European Standards
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Table of contents

The Nuclear Island Context

A search to match Equipment and Supplier A set of specifications A reference to Codes & Standards

The Qualification Process

A need for project risk management A successful experience A running process

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Qualification: a need for project risk management

Component technology and safety

AREVA NSSS components

Qualified suppliers key components

g in ow gr
Qualified suppliers & new design

ct e oj pr

isk r

Qualified suppliers standard design components

New supplier & standard design

New supplier & new design

Supplier experience / New design

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AREVA NP Qualification Process Description Criteria for the qualification of Suppliers

Technical capabilities in design and engineering to achieve successfully the requirements for a given scope of supply Quality management ability Project management capability Financial soundness and long term company stability Value charter

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AREVA NP Qualification Process Description

Steps

March 2009
1.Sourcing 1.Sourcing

April 2009

No-Go
Go

Timescale

2. Pre2. Preselection selection

No-Go
Go

3. Pre3. Prequalification qualification

No-Go
Go

4. 4. Qualification Qualification

2011/2012
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Approved Vendor List

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AREVA NP Qualification Process Description

Qualification feedback experience

Success factors:
General Management commitment Employees safety culture & mobilization Quality Assurance + Quality Control internal surveillance & follow-up Management of Sub-contracts Management of non-conformance in trustworthy atmosphere: SAFETY CULTURE Responsibilities & authority of the Supplier Project manager Supplier proactive participation during the qualification process creates Customer Confidence
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Conclusion

Supplier Qualification helps set up trustworthy and long term relationships between all the actors in the Supply Chain Such proven confidence is the best asset for the safety and success of the Nuclear Industry Thank you for your attention

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Conclusion
Laurent-Olivier Coudeyre UK Supply Chain Coordinator

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UK nuclear new build is an opportunity for the UK supply chain To deliver multiple EPR new builds in UK, AREVA needs a strong UK supply chain

We Need You!
Start UK, then go global as an AREVA supplier

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Next Milestones:

Project:

By Spring, which Clients & Sites By Autumn, which Vendors By Christmas, which Consortia

Supply Chain: RFI starting Q2/2009 Suppliers Selection Pre assessment visits

On-going process

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UK contact with AREVA Purchasing

Dedicated website
http://suppliers.areva.com/UK_supply_chain_EPR

epr.uksupplychain@areva.com Meet the AREVA purchasers

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