Quality Assurance of Nuclear Suppliers Seminar on Nuclear New Build 30 th April, 2010, Tallinn MHL

2 Global expert in consulting and engineering We offer our clients in-depth industry expertise, innovative solutions and lifecycle engagement projects annually employees in 49 countries Project experience in more than 100 countries

33 Pöyry group - Five business groups Core operations are based on five know-how clusters (c) grafikdienst.com EnergyWater & Environment Forest IndustryConstruction Services Transportation

4 Pöyry works as a global network company Pöyry’s office network - Competence centres for Nuclear Energy Switzerland / Zurich (Headquarters – Nuclear Energy) Energy markets Project & company organisation Project development Infrastructure development Major power plant technology & development Finland / Helsinki Project & company organisation Project development Information & communication technology Environmental impact Site evaluation Major power plant technology & development Pöyry offices Competence centre for nuclear energy UK / Horsham Reactor technology Reprocessing technology Waste management & decommissioning technology Safety assessment & licensing Germany / Mannheim Reactor technology Waste management & decommissioning technology Safety review Detailed engineering

5 Sales and personnel according to the new business structure Net sales by business group* Personnel by business group* * Pro forma, 2009

66 Clear definition of technical interfaces and contractual limits are key for the management of Split Package/EPCM or Multiple package/AE structures Nuclear Island Nuclear steam supply system (NSSS) Balance of Nuclear Island Emergency Diesel System Rotating Equipment Thermal Power System Balance of Thermal System Electrical Nuclear Island Overall Overall Control System Reactor Containment Strcuture Main Steam System Fuel systems NSSS auxiliaries Waste systems Steam Turbine Generator Cooling Water/Steam Cycle Other BOP Electrical Thermal Power System Electrical (general) Civil & Steel Structures Nuclear Island Civil & Steel Structures Thermal Power System Civil & Steel Structures (general) Structure of nuclear power plant and interfaces Generally contracted as single package to vendors Subject to splitting into several or multiple packages – Employment of EPCM Contractor or Architect Engineer

7 Differences between NPP and conventional plant projects and related personal experiences The main requirements concerning conventional and NPP projects deal with LICENSING, SAFETY and QUALITY matters in addition to PROJECT MGT. Nuclear SAFETY requirements Conventional SAFETY requirements CORPORATE & Project ORGANIZATION ”There shall be utilized advanced quality management and advanced safety culture when implementing NPP plants”. What is specific to NPP projects? Nuclear LICENSING requirements Conventional QUALITY requirements Convent. LICENSING requirements Nuclear QUALITY requirements Project Management NOTE: Classifications set requirement levels for each NPP items.

Pohjonen, 23rd October

10 Permitting procedures for a nuclear plant in Finland Other clarifications to be appended to the decision-in-principle application EIA programme DECISION-IN-PRINCIPLE Pursuant to the Nuclear Energy Act Preliminary safety assessment from the Radiation and Nuclear Safety Authority Approval from the location municipality Decision-in-principle from the Government Ratification from the Parliament LAND USE PLANNING National Land Use Guidelines Regional Land Use Plan Local Master plan Local Detailed plan Construction license pursuant to the Nuclear Energy Act from the Government Permits pursuant to the Environmental Protection Act Construction of the plant and infrastructure Building permit Permits pursuant to the Water Act Operation license pursuant to the Nuclear Energy Act from the Government Commissioning of the power plant Monitoring and potential renewal of permits EIA report

11 Basis in legislation Main requirements for quality management of NPP project participants are given in Finnish Legislation, Nuclear Energy Act, Nuclear Energy Decree and Decisions of the Council of State Guide YVL 1.4 gives the general requirements for the management system linked with quality and safety management. Quality Assurance of Nuclear Suppliers

12 Extract from Decision of the Council of State on the general regulations for the safety of nuclear power plants - Quality assurance Advanced quality assurance programmes shall be employed in all activities which affect safety and relate to the design, construction and operation of a nuclear power plant. Quality Assurance of Nuclear Suppliers

13 The basic principle is an advanced quality management system which contains also the nuclear quality requirements. The Owner and Vendor shall include the requirements of an advanced quality management to their subsuppliers in their contracts The plant Vendor, Owner and STUK will monitor the performance of quality system of suppliers and that their activities are according the set requirements. QUALITY MANAGEMENT OF SUPPLIERS Quality Assurance of Nuclear Suppliers

14 REGULATORY BACKGROUND YVL GUIDE 1.4 (1991) REFERS TO: Advanced Quality Assurance (referring to IAEA Code 50- C-Q / IAEA safety standard GS-R-3) Safety culture (referring to IAEA No. 75-INSAG-4) QUALITY MANAGEMENT OF SUPPLIERS Quality Assurance of Nuclear Suppliers

15 REGULATORY BACKGROUND ACCORDING TO THE NUCLEAR ENERGY ACT 990/1987 The manufacturer, inspection organisation or testing organisation of pressure equipment shall have an advanced quality system. An advanced quality management system is required whenever the activities are connected to the products classified as safety class 1-3. QUALITY MANAGEMENT OF SUPPLIERS Quality Assurance of Nuclear Suppliers

16 REQUIREMENT ON SAFETY CULTURE The licensee and other organizations affecting the safety of the NPP shall documents their commitment to high safety culture. ISO 9001: Competence, awareness and training -the organization shall provide training IAEA Code 50-C-Q presents - that personnel shall be trained to understand the safety consequences of their activities According to guide YVL 1.4 -when designing and constructing a nuclear power plant an advanced safety culture shall be maintained QUALITY MANAGEMENT OF SUPPLIERS Quality Assurance of Nuclear Suppliers

17 REQUIREMENTS ON QUALITY MANAGEMENT Based on experiences, an example of an advanced quality management system might be based on the standard ISO 9001 supplemented with the requirements presented in IAEA’s Quality Code 50-C-Q (regulatory requirement in reg. guide YVL 1.4) and recommendations presented in Safety Guides 50-SG- Q1-Q14... QUALITY MANAGEMENT OF SUPPLIERS Quality Assurance of Nuclear Suppliers

18 QUALITY MANAGEMENT SYSTEMS Quality management systems of conventional subcontractors are generally based only on standard ISO 9001 or equivalent. Therefore the systems do not meet the IAEA’s Safety Standards on quality management for NPP relevant deleiveries. QUALITY MANAGEMENT OF SUPPLIERS Quality Assurance of Nuclear Suppliers

19 When companies want to be prepared for coming NPP projects and develop their capabilities, one good assist could be the following: Study all the requirements for NPP licensing, permitting and approval in relevant international, national and local regulations. Conduct a self assesment or third party evaluation of your status against all the important matters and criteria. Perform a development program to improve your company’s processes, procedures, machinery and personnel to be good enough for NPP projects. PREPARING FOR NPP PROJECT Quality Assurance of Nuclear Suppliers

20 International Organization for StandardizationInternational Accreditation Forum Date:5 June 2009 ISO 9001 Auditing Practices Group Guidance on: XXX One aid for supporting development and self evaluation of Corporate quality management capabilities for a NPP project Is to use e.g. help of Guides of ISO 9001 Auditing Practices Group. Include nuclear quality and safety in your quality management system. PREPARING FOR NPP PROJECT Quality Assurance of Nuclear Suppliers

Assesment of Supplier’s NPP project capabilities Development of Supplier’s NPP project capabilities REGULATIONS & REQUIREMENTS CONCLUSIONS & DECISIONS READYNESS FOR QUALIFIED SUPPLIER NPP PROJECTNOW

Quality Assurance of Nuclear Suppliers SAFETY AUTHORITY OWNER VENDOR SUPPLIERSUBSUPPLIER REGULATIONS; DIRECTIVES, AGREEMENTS, LAWS, DEGREES, DECISIONS OF STATE COUNCIL, GUIDES, RULES, PERMITS, APPROVALS, ETC Markings: Contract/ Quality Mgt System/ Plans, etc Quality policy, programs, plans, procedures, systems, tools, etc Supplier approval, Auditing & Control Test & Inspections, Doc’t approvals, Qualification req’s +REQUIREMENTS & INSTRUCTIONS +PERMITS & APPROVALS +NORMS & STANDARDS Note: QMS shall be advanced and e.g specificly manage well all set requirements, Documentations and configuration.

23 Pöyry Finland Oy, Energy Process Map Management Processes Business Processes Continuous Improvement Processes Marketing and Sales EPC Projects Advisory and Consulting Projects Measurement Services EPCM Projects Strategy Process Resource Management Employment Process Financial ManagementCompetence Management Document Management Proposal Process Risk and Quality Management OE/AE Projects Nuclear Projects

24 Pöyry‘s Consulting and Engineering Services cover the entire life-cycle of nuclear energy. Development & Pre-Construction Project implementation Assets OperationDecommissioning Project Strategy & Organisation Financial modelling ICT studies & solutions Stakeholder management & public consultation Siting Studies Reactor technology studies Infrastructure studies & solutions Decommissioning, waste management & fuel strategies Environmental impact assessment Fuel studies (Pre- )Feasibility studies Conceptual & Basic Engineering Tender documentation & bid evaluation Safety assessment & licensing support (to Owner’s and Regulators) Consulting to Lenders Project management Project controlling Design review Supervision of construction & commissioning Quality Assurance & Quality Control Shop Inspections & Expediting Site & Construction supervision Commissioning supervision Safety assessment & licensing support Detailed and site engineering for vendors Safety assessment for regulators Consulting to Lenders Engineering and supervision of back-fitting/upgrades Power uprate studies Organisation review and design Operational optimization studies Life extension studies Alternative fuel studies Waste characterisation & inventory studies Decommissioning studies Safety assessment & licensing support Safety assessment for regulators Consulting to Lenders Detailed decommissioning studies & engineering Supervision of decommissioning and dismantling operations Waste treatment & packaging studies & engineering Waste repository studies & engineering Waste characterisation & inventory studies Safety assessment & licensing support Safety assessment for regulators