the quality and capability challenge facing the nuclear ... · the quality and capability challenge...

The Quality and Capability Challenge facing the Nuclear Industry

Greg KASER Staff Director

Technical Meeting to share experiences and lessons learned from the application

of different management system standards International Atomic Energy Agency, Vienna

15-19 December 2014

IAEA Technical Meeting on applying different management system standards

Greg Kaser

1. About WNA

2. An International Industry

3. Three Challenges:

• Design standardization

• Capability

• Quality

4. VOCS Task Force

• Supplier Forum

• Vision

• Next steps

2

Outline of Presentation


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1. About WNA

Providing Public Information and News

Nuclear Fuel Market and Supply Chain

Enabling Industry Contacts and Cooperation

Representation in Key International Forums

174 member companies • Utilities • Technology Vendors • Original equipment

manufacturers (OEMs) • Professional services


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WNA Overview


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WNA Working Groups

Sustainable Used

Fuel Management


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• Trade in components for new Nuclear Power Plants has the potential to reach US$26 billion a year.

• Trade in radioactive chemical elements (including uranium) is US$13 billion a year.

2. Trade in Nuclear Goods & Services

Total Value of Planned Build* US$ 1.2 trillion to 2030

Estimated Value of International Procurement

US$ 575 billion

• Reactors currently under construction in China, India, UAE, USA, etc. have an aggregate project value of approx. US$ 232 billion.

WNA Estimates


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Market Size – Under Construction and Projected

New reactors & investment by 2030

North America

Under construction: 5

Projected: 7

Total Value: $ 90 bn

Latin America


Projected: 1


South Asia


Projected: 21


CIS


Projected: 26


Africa


Projected: 2


East Asia


Projected: 103


West Asia


Projected: 14


Southeast Asia


Projected: 4


Europe (EEA)


Projected: 19


. .

.

. .

.

. . .

.

.

. . .

. .

Based on WNA Reference Scenario

.

.

Total


Projected: 197

$1,196 bn


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Reactors to be dismantled by 2030

North America

Planned

Dismantlement: 4

Total Value: $ 5 bn

Latin America

Planned

Dismantlement: 0

Total Value: $ 0 bn

Europe (EEA)#

Planned

Dismantlement: 56


South Asia

Planned

Dismantlement: 0

Total Value: $ 0 bn

Former Soviet Union

Planned

Dismantlement: 3

Total Value: $ 2 bn

East Asia*

Planned

Dismantlement: 16


West Asia

Planned

Dismantlement: 0

Total Value: $ 0 bn

Africa

Planned

Dismantlement: 0

Total Value: $ 0 bn

Southeast Asia

Planned

Dismantlement: 0

Total Value: $ 0 bn

$95 billion * 75% in Japan

Market Size – Decommissioning (US$ billion)

# 45% in Germany


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• WTO and regional free trade areas (e.g. EU, NAFTA) recognize the importance of standardization for: • Open markets;

• Economic integration;

• Mobility of capital, goods and services;

• Interoperability.

• The nuclear industry used to be national, but now it is international!

• It is necessary to review the application of national technical regulations to ensure that these do not represent technical barriers to trade.

• At the same time, we cannot permit a perception that “safety will be compromised” – look at the controversy over TTIP!

9

International Standards for an International Industry


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3. Three Industry Challenges

• Ensuring that the costs and benefits of nuclear power are competitive with other generating sources means addressing:

• Capital costs

• Operating costs

• WNA is working on three challenges:

• Design standardisation

• Quality

• Capability

Design

Standardisation

Capability

Quality

How can nuclear power stay competitive?


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• Erosion of capability.

• Staff lost to retirement or redundancy.

• Too few nuclear-related orders to have made it less worthwhile to invest in upgrading their nuclear capability.

• Suppliers are not at the same level: some new entrants are still learning - even qualified suppliers are not delivering fully.

• Different total quality management systems.

• High cost of enhanced Quality Control is a deterrent to market entry.

11

Background


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Knowledge Transfer

Oversight Product

Realization

12

Addressing the Capability Challenge Getting it done

Customer focus & compliance

Planning (resources, risk, requirements, etc.)

Control of processes, design, etc.

Review & verification

Delivery & post-delivery support

Collate good practice

Develop guidance

Gain buy-in

Train to upgrade skills

Indoctrinate

Qualify

Inspectors can provide guidance as well as audit suppliers’ systems and processes


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The nuclear safety and quality management system specifies requirements, standards and guidance on activities or processes. The system is evolving as a result of IAEA, ISO and ASME reviews.

13

Nuclear Quality Standards: Gap Analysis

13

Regulation & Licensing

Quality Management

Product Realization

Measurement, Analysis & Improvement

Knowledge Management & Supplier Education

ISO 9001

10 CFR

50

???

NQA1

G S R

Pts1 & 2

NSQ 100


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Potential Solutions to the Quality Challenge

Strengthen product realization/ conformity assessment processes along the supply chain:

• Quality assurance (QA): focus on an organization’s quality management system (QMS), e.g.

• IAEA GSR Part 2 (revision of GS-R-3: 2006) requirements on leadership & management for safety – “safety culture”

• ASME NQA-1: 2008 (links to US Federal Code 10 CFR 50 Appendix B)

• ISO 9001: 2008 + NSQ-100: 2011 (promoted by NQSA)

N.B. WNA does not expect ASME NQA-1 standard to be superseded where this is the relevant standard


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• Quality control (QC): focus on the product or process of production.

• Industry consensus on “critical manufacturing processes” (aka “special processes”)

• Oversight (surveillance) of critical manufacturing processes

• Advanced product quality planning

• Reducing non-conformances

• Learning from each other

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Potential Solutions to the Quality Challenge


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“Industries where safety and quality are

shared goals” (PRI)

• Nadcap – formerly the

National Aerospace & Defence Contractors Accreditation Program

• SAE AS-9100 standard

for aerospace

• TPG – Transportation &

Power Generation Accreditation Program (with GE Transportation)

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Example from Aerospace: Nadcap

TECHNICAL CHECKLIST CRITERIA

PROCESS

EVALUATION/ IMPROVEMENT

CORRECTIVE

ACTIONS AS REQUIRED

PROCESS SURVEILLANCE

RESULTS

PROCESS SURVEILLANCE CONDUCTED

SME QUALIFICATION &

SELECTION INDUSTRY

EXPERTS

MANAGE ALL

KEY STEPS


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Aerospace Industry - IAQG Model IAQG is the International Aerospace Quality Group

• a cooperative global organization with more than 70 member companies (26 Voting member Companies)

• Formed in December 1998 (founding member companies: Boeing, Rolls-Royce, GE, Aerospatiale, Zodiac)

• began with company QA reps and evolved to include supply chain management subject matter experts/leaders

IAQG’s Mission • establish prevention oriented practices and processes

• standardize requirements, providing process guidelines and spreading best practices

• introduce a culture of quality as early as possible in the value stream thus reducing cost of poor quality

• establish and maintain dynamic cooperation between international aviation, space and defense companies


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4. VOCS Task Force Vendor Oversight and Control of Suppliers

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Terms of Reference: • Develop a concept for an industry-wide approach to strengthening the

capability of companies and organizations supplying the civil nuclear industry to provide goods and services that meet the quality requirements of the nuclear industry more reliably and predictably.

• Develop a framework for a common

process of supplier approval, oversight and quality control that enhances industry efficiency and effectiveness in meeting regulatory requirements and promotes the public good through continual enhancement of the safety and security of nuclear installations.


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WNA Supplier Forum: London 9 Sept 2014

• Understanding contractual requirements Can we move beyond a transactional approach?

• Improving the oversight of suppliers Can we learn from each other?

Can we learn from other industries?

• Fostering a nuclear safety culture What does this mean in practice for suppliers?

• Supplier skill levels and development How do suppliers demonstrate that their personnel are suitably qualified and

capable?

• Successful order fulfillment How can you know what you don’t know except by making mistakes?

Is there a better (and less expensive) way?


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Suppliers said that there is a lack of consistency in the approach of Tier 1 Vendors (their customers):

• Interpretation of codes and standards;

• Explaining why a component is important for safety

• Evaluating and overseeing critical manufacturing processes

There should be:

• A strategic, collaborative and integrated approach to procurement;

• Better integration of procurement and QA functions;

• More explanation of what safety culture means in practice.

Feedback from WNA Supplier Forum


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WNA Survey of Suppliers: Themes

• Lack of consistency: From customer to customer

From regulator of one country to a regulator of another country

For a clear understanding of terminology (seems cultural primarily)

• Inconsistencies that arise from cultural differences: Some instructions have different priority and the reasons are not fully

understood or appreciated

• Unclear direction from the customer to the supplier: Purchase information is confusing or incomplete

• Schedule pressures: Many times created by the customer (not responding timely and not

getting the supplier involved soon enough in the process)


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WNA Survey of Suppliers: Themes • Customer responsiveness to make changes and corrections

Supplier expectations of customer timeliness is different than reality

Customer is not able to understand the supplier’s request for clarification and may rely on obsolete specifications

• Inconsistent interpretation of: Technical codes

Safety classification and grading

Critical manufacturing processes (“special processes”)

• Customer takes for granted that the supplier understands the specification and requirements There is no confirmation until there is a problem

• Good practice exists in other industries Aerospace, rail, …

N.B. Some suppliers work in several regulated industries


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Knowledge Transfer

Oversight Product

Realization

Addressing the Capability Challenge Getting it done

Customer focus & compliance

Planning (resources, risk, requirements, etc.)

Control of processes, design, etc.

Review & verification

Delivery & post-delivery support

Collate good practice

Develop guidance

Gain buy-in

Train to upgrade skills

Indoctrinate

Qualify

There has to be a mechanism to effect knowledge transfer along the supply chain


Greg Kaser

• A common and clear understanding of the quality requirements leading to fewer non-conformances and reduced re-work

• A common core of standards and process guidance

• Reduced supplier certification and oversight costs

• A global supply chain offering best-in-class quality and performance

• Better focus on quality control issues and critical processes

• Option for commercial-grade dedication

• Improved overall competitiveness

• Industry-wide continual improvement, lesson-learning and dialogue

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VOCS Vision


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Benefits will be generated along the following dimensions:

• Safety and reliability of structures, systems and components

• Confidence building among regulators and stakeholders

• Resilience to risks to disruption along the supply chain

• Economy in the use of industry resources

• Efficiency in the quality assurance process

• Environmental benefits from reduced wastage, pollution and energy usage

Benefits are incremental – building up bit-by-bit – and synergistic – by building off each other.

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Where will the value of strengthened vendor oversight arise?


Greg Kaser

• Deepen our understanding of the gaps in product realization.

• Collaboration with the Nuclear Quality Standard Association (NQSA) on developing the NSQ-100 quality management standard.

• Pilot audits with suppliers to develop a common consistent audit checklist and guidance linked to NSQ-100.

• Expand the conversation to:

• Licensees (operators); met the Nuclear Procurement Issues Committee in April 2014;

• Regulators; met OECD-NEA MDEP in November 2014;

• Follow-up the WNA Supplier Forum of September 2014.

• Scoping out an industry-managed of supplier oversight & quality control.

26

Next Steps

NUPIC


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World Nuclear Association

Thank you: Greg KASER WNA London [email protected] www.world-nuclear.org

the quality and capability challenge facing the nuclear ... · the quality and capability challenge...

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