managing contractors’ working activity at · pdf filemanaging contractors’ working...

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MANAGING CONTRACTORS’ WORKING ACTIVITY

AT NPP SITE

08-10 September, 2014, Vienna, Austria

Armenian NPP Andranik Ghazaryan

ASSESSMENT AND SELECTION OF SUPPLIERS

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Background

The ANPP is located in the Ararat valley,

Republic of Armenia, 35km far from Yerevan,

the capital of the country and very close, about

7km, to Metsamor town.

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Shutdown and restart of the ANPP

When 12 years had passed since the Unit 1

commissioning the ANPP was shutdown after

disastrous earthquake occurred on December 7,

1988, at northern part of the Republic of

Armenia.

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Shutdown and restart of the ANPP

Despite of all difficulties the implementation of a number of

organizational and technical activities allowed to bring closer the

plant safety to the standard and technical requirements existing at

that time.

On 08.11.1995 the ANPP Unit 2 was commissioned. The Unit 1

is in long shutdown condition. The service life of Unit 2 expires

in 2016.

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Assessment of Suppliers

The assessment of suppliers is performed aimed at ensuring that

for supply to the ANPP only the suppliers whose capabilities to

provide compliance of products with the established requirements

have been fairly assessed, documented and supervised will be

admitted.

The products to be used at the ANPP could be supplied by a

vendor which was assessed and a positive "Decision on a

Supplier" was accepted in this regard (Form 1).

There are Reference Book of Suppliers and List of Suppliers

(Form 2) at ANPP which are kept and regularly updated.

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FORM 1

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HAND-BOOK FORM OF THE ANPP SUPPLIERS

1. Number;

2. Supplier name and address;

3. Dealer name and address;

4. Short description of "Products" to be supplied;

5. Subdivision responsible for assessment;

6. Type of planned assessment;

7. Module letter of the method of planned assessment;

8. Planned date;

9. Module letter of the method of actual assessment;

10. Actual date of assessment;

11. Decision on supplier (indicate "Approve" or "Reject");

12. Deadline of the next assessment;

13. Type of the next assessment.

№ Supplier Official

representati

ves

(dealers,

distributors)

Products Responsible

subdivision Type of

planned

assessment

Method of

planned

assessment

Planned

date

Method of

fact

assessment

Actual

date Decision Deadline of

the next

assessment

Type of

the next

assessm

ent

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

FORM 2

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Types of Supplier Assessments

The following types of supplier assessments are applied

at ANPP:

- initial;

- regular;

- repeated;

- extraordinary;

- temporary.

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Initial Assessment is done for every supplier and potential supplier regardless of availability of earlier concluded contracts and history of previous supplies to ANPP. Also, the suppliers which haven’t performed any supply for more than 3 years shall pass this type of assessment.

Regular Assessment is done in regard to the suppliers who passed successfully the initial assessment and maintain contractual relations (continuous or regularly resumed).

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Repeated Assessment is done provided availability of negative results of initial or regular assessment. It is aimed at checking implementation of corrective or preventive actions based on the results of previous assessment. In case when the results of the repeated assessment are negative no contract is concluded with the supplier or if contractual relations are set already then the contract cancellation is considered. There were no such cases for the whole period of logistics group activity.

Extraordinary Assessment is done in case of identification of significant violations of specified product quality requirements. Decision on extraordinary assessment is also made when significant changes that could impact product quality, i.e., company reorganization, change of property form, technology, etc., happen.

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Temporary Assessment is done when the planned

assessment of supplier with required method is

impossible due to insufficient resources and time, and

caused risk to ANPP from undue product supply

excesses risk from failed comprehensive assessment.

Temporary assessment is performed according to

simplified procedure, compared with the required

one, based on product safety significance for ANPP.

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Methods of Supplier Assessment

The method of assessment is selected from the following modules or their combinations:

module А - analysis of information about supplier’s products;

module В - check of supplier’s documentation;

module С - audit of supplier’s quality system.

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The Module А is applied to any supplier in case of initial assessment. Analysis shall be performed for the areas of:

- product safety significance for the ANPP (Module А-1);

- information about the supplier (Module А-2).

Module А-1. Safety significance, reliability and operation efficiency for the ANPP is comprehensively assessed, including:

- specification of the supplier’s all product types suggested to the ANPP;

- the ANPP technological systems where the products will be used;

- safety category to be met by the products;

- potential safety and reliability impact in case when the products don’t refer to any of the specified safety categories;

- impact of potential product deficiencies on the ANPP operating conditions;

- technical perfection, reliability, serviceability and other indicators of the product;

- availability of other suppliers capable to manufacture these products;

- approximate cost of the products.

Module А-2. Maximum amount of proofs for supplier’s capability to meet the specified requirements is assessed.

The Module А-2 includes:

- collection and analysis of information about previous supplies to the ANPP, data on the products operational indicators and all known incompatibilities;

- the supplier request of information on supply to other customers;

- other suppliers’ request of information about that supplier;

- study of licences, product compatibility certifications or fair proofs for their receipt.

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Module B includes:

- development and agreement of the request to be submitted to the supplier in

compliance with the recommendations provided in Form 3;

- cooperation with the supplier to clarify the reply to the request;

- review of the quality guideline and other documentation provided by the supplier

in reply to the request;

- request of additional information and documents, if needed;

- review of information to identify incompliance.

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RECOMMENDATIONS ON ISSUING A REQUEST TO THE

SUPPLIER FOR PROVIDING INFORMATION

1. Policy in the field of quality.

2. Guidelines on quality.

3. In absence of Guidelines on quality:

– organizational structure of enterprise specifying the number of employees in subdivisions influencing the quality;

– description of management representative’s authorities in the area of quality;

– list of enterprise standards or methods on quality management;

– regulation or other document specifying the procedure of staff knowledge examination;

– regulation or other document specifying procedure of accounting reclamations and claims to production quality, implementing activities on elimination of identified defects and their prevention;

– subjects of performed quality audits and approved annual plan of audits.

4. List of codes and standards on nuclear and radiation safety, the requirements of which are taken into consideration by the supplier during development and manufacturing of products for NPP.

5. Information about the availability of managers, engineering staff and experts who passed nuclear and radiation safety codes and standards knowledge check.

6. Titles, numbers and validity date of licences, certificates, permissions to perform activities/manufacture products issued in a manner foreseen by the legislation in force (including ANRA documents and others).

7. List of main suppliers.

FORM 3

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Module C. The supplier manufacturing (providing) several types of

products important to NPP safety is evaluated according to this module.

The quality system audit may include assessment of condition and

efficiency of the supplier’s complete quality system performance or its

separate components performance.

The quality system audit (external audit) is conducted to gain fair proofs

about supplier’s quality system availability and its effective performance in

compliance with the requirements of international and state procurement

standards in force and with the requirements of ANPP as a customer.

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Selection of Suppliers

One of the principal factors in NPP equipment, logistics, components supply is the supply planning. As a result of planning, means of supply, sequence of operations, stages and dates of completing respective operations are determined. Planning envisages a set of procurement operations:

-preparation, review, dissemination of procurement documents and control of changes in them;

- selection of suppliers;

- assessing proposal on procurement and concluding contracts;

-customer’s assessment of the supplier’s readiness to fulfill the commitments assumed;

- review of the supplier’s activity by the customer;

- control of goods acceptance;

- control of documentation on quality assurance;

- audit of procurement programs.

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After summary requests are issued and approved, order specifications for each type of equipment or spare parts were prepared, and order letters were sent to the above-mentioned factories requesting to provide proposals of costs, procurement terms, payment conditions etc.

Following the receipt of the proposals from vendors, contracts on supply of equipment and spare parts required for ANPP were concluded.

Prior to signing the draft contract, it was agreed with relevant authorities.

The contract entered into force from the moment of its being signed by the vendor and the General Director of ANPP. In the course of carrying out their commitments on the contract the material security team members were supervising progress of contracts, were having correspondence with suppliers.

The products delivered to ANPP underwent acceptance test which was implemented by Technical Control and Metal Diagnostics Department.

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On a particular stage of activity a demand was set forth to establish purchase subject characteristics in the absence of which it was impossible to conclude contracts. Moreover, for the logistics purchased in RA a tender was to be announced, according to the results of which the Board established by the General Director’s order made a decision to conclude a contract with this or that organization that participated in the tender.

During that period the task of issuing summary requests for logistics on operation and maintenance was also assigned to MPPD material security team. Equipment and spare parts were purchased from known vendors without announcing a tender, via concluding contracts directly, taking into consideration the results of their previous activities on meeting contract commitments.

A strong point in favor of these companies was also the fact that the equipment operated at the plant was manufactured by them, and the spare parts to it were purchased from them, respectively.

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Since January 01, 2009 a new "Purchase Procedure" has been put into force.

After annual equipment, spare parts and logistics requests according to areas (operation and maintenance) are submitted by subdivisions, the material security team prepares characteristics of subjects of purchase with a monthly purchase schedule for the current year proceeding from which the subjects of purchase are presented at the tender.

"The Procedure" determines the following types of tenders depending on the cost of the goods purchased: open, simplified, negotiable.

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By the order of the General Director a Tender Board has been established which reviews the tender participation requests submitted by vendors. Considering the results of the reviews the Board makes a decision to conclude a contract with this or that vendor.

After the contract is signed, everything goes on according to the known pattern: supervision of the progress of contract execution, delivery to ANPP, acceptance test. In view of difficulties with procurement of the goods to the RA, contracts are concluded on CPT or CIP terms, delivery to Yerevan by air.

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THANK YOU FOR ATTENTION!

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