Building Equipment Supply Chain for GEN Ⅲ NP May 2014 , Shanghai, China Outline 1. Mission & Vision 2. Status & Capacity 3. Experience & Lessons 2 2 Mission & Vision – Constructing the first 4 AP1000 projects in the world – AP1000 Technology Transferred & Equipment Localization – R&D CAP1400 & Building Demonstration Project – Equipment support , as Bond & Bridge – Aiming to develop GEN III NP Equipment supply chains Nuclear Equipment for the whole world 3 3 Mission & Vision • Vision of GEN III nuclear equipment supply chains – To cultivate an equipment supply team with core technology & competitiveness – To develop a joint team with design & manufacturing – To support global AP/CAP units with qualified equipments 4 4 Outline 1. Mission & Vision 2. Status & Capacity 3. Experience & Lessons 5 5 Status & Capacity Since 2009, an ever-growing qualified suppliers team has been developed, based on which the construction rate for 6~8 AP/CAP units each year could be supported. Major features of Supply Chains • Holistic Manufacturing Capability • Adequate Technical Support • Thorough Quality Control • Win-Win Cooperation Mode Qualified suppliers of SNPTC 6 6 Status & Capacity —Holistic Manufacturing Capacity NSSS Aux & Materials NI CI Chinese Foreign Forging, Casting & Pipe CFHI CNEG CISRI Baosteel Jiuli Special Material THM Yingliu Group Ansteel …… Doosan JSW pumps and valves in NI HPC SEC-KSB CNNC-SUFA Dalian Dagao Shentong Valve Kaiquan Pump Shanghai Apolo …… EMD Fisher Holistic Equipment supply chain of SNPTC Main NSSS Equipment Main CI Equipment other aux equipment CFHI CNEG HEC- HI SEN DFHI BSIC SNPEMC Hailu HI…… HEC DEC SEC Hua Rui HI TYHI Dalian Baoyuan Shangshang Cable SANY …… Doosan ENSA / / 7 Status & Capacity —Holistic Manufacturing Capacity Cultivating local suppliers – Average localization ratio for SM & HY : 55% – First localized RV, SG, RVI and CRDM will be delivered this year. – Other localized main NSSS Equipments have been already delivered. – Localization Ratio for CAP1400 Demo Project: >80% 8 8 Status & Capacity —Holistic Manufacturing Capacity Complementary Resources: 2~5 qualified suppliers for each Key Equipment ● Delivered ● Manufacturing ● Developing 9 9 Status & Capacity —Adequate Technical Support Overall Technical Support for every step, offered by Design Institute Specification & Parameter R&D Testing & Verification Design Internal & External Review, issued after every step finished Prototype & EQ Requirement for some key Equipment 10 10 Status & Capacity —Adequate Technical Support Testing & Verification based on Calculation & Analysis Capacity of Calculation & Testing has been completely possessed Testing & Verification Design & Analysis 11 11 Status and Capacity ——Thorough Quality Control Quality Assurance System of Suppliers’ • Constantly Enhanced Nuclear Safety Consciousness – Nuclear Safety Culture has been Publicized & Educated – Human Performance Tools of WEC have been promoted • QA System Established – Based on NQA-1 & HAF, Inspections performed periodically – Important criterion for qualified suppliers evaluation • The way for Local Supplier to establish QA system, which meet WEC’s requirement – Joint Venture between SNPTC & WEC – First Stage QA System Review for HQC & THM finished 12 12 Status and Capacity ——Thorough Quality Control Quality control for Products Process Documents Review Product Manufacturing Quality Plan Point Selection, Surveillance & Witness Staged Quality Inspection Testing & Final Quality Inspection 13 13 Status and Capacity ——Win-Win Cooperation Mode for Owners for Suppliers • Strictly Controlled Quality • Reasonable Price • Ensure Delivery Date • TT for Enhancement • Joint R&D Team for improvement • Seeking New Chance Altogether 14 14 Outline 1. Mission & Vision 2. Status & Capacity 3. Experience & Lessons a. Cultivation for Local Qualified Suppliers b. Dynamic Management of Supply Chain 15 15 Experience & Lessons One of the Most important foundation for GEN III Nuclear Supply Chain is Cultivation for Local Qualified Suppliers Following Contents will be shared – Why Localization – Essential Stages of Localization – Mode of Localization – Experience on Localization 16 16 Experience and Lessons – Cultivation of Local Suppliers Why Localization? Industrial Development Requirement from GOV. To promote transformation To upgrade the additional value and technology content of Industrial Products. Demands on local nuclear development More Reliable Supplier Recourse & Reduced Construction Cost One integrated part of global nuclear equipment chain Positive complementary for capacity 17 17 Experience and Lessons – Cultivation of Local Suppliers Essential Stages for Localization Self-Reliance Stage Localization Stage •Machining based on existed Design •To form Manufacturing Capacity •Independent Design, Improving & Upgrading •To form R&D and Design Capacity 18 18 Experience and Lessons – Cultivation of Local Suppliers Mode of Localization——Learning, Practicing & Upgrading Upgrading Practicing Learning • Joint R&D & improving tech capacity • Breakthroughs one by one • Supply for nuclear projects & anneal work teams • Be subject to oversight and inspection by WEC • Organizing TT and learning existing advanced technology • Learning from international advanced enterprises to upgrade Hardware 19 19 Experience and Lessons – Cultivation of Local Suppliers Learning——Upgrade of Technical Capability • Organizing Technology Transfer – Transferors: 6 international advanced enterprises including WEC Consortium, EMD, Doosan, SPX, etc. – Transferee: 13 groups consisting of over 30 local enterprises, including CFHI, CNEG, HEC, DEC, SEC, SBN, SUFA, etc. – Work Mode: Document/Software, Technical Service (in-class/in-service training, consultation/supporting service) • 81,000 TT Files/Software • 317,000 man-hours Manufacturing Technical Service • 17,000 man-hours Design Technical Service 20 20 Experience and Lessons – Cultivation of Local Suppliers Learning ——Upgrade of Hardware • • Over 30 billion Strategic Investigation, in Shanghai, Dalian, Qinhuangdao & Guangzhou Key equipment capability catches up with that of international advanced Factories. 21 21 Experience and Lessons – Cultivation of Local Suppliers Practicing——Supply for AP1000 SM & HY Projects • Gradually increase the localization ratio based on manufacturing difficulties and local industrial bases. SM1 HY1 SM2 HY2 DOOSAN,NEWINGTON EMD,SPX,PCC,PaR 72.25% 71.77% Etc. 44.43% 31.47% CFHI, CNEG, HEC, DEC, SEC, SNPEMC, BH Heavy, TY Heavy,DHI, SBN, SUFA, etc 22 22 Experience and Lessons – Cultivation of Local Suppliers Practicing——Supply for AP1000 SM & HY Projects • Procurement Mode – Key equipment procurement by category (A1、A2、B……) – Procuring A1 by WEC, A2 by JPMO with the technical support and Inspections from WEC • Control Method – By Qualified Supplier Management System, reviewing QA capability – Compliance with ASME requirements 23 23 Experience and Lessons – Cultivation of Local Suppliers Upgrading——Joint R&D Teams Joint R&D Teams, from Uni., Research & Design Institute & Factories Feedback Communication R & D Design Theoretical Verification Test Design Optimized Capture of Design Connotation Manufacture Process Improvement Understanding of Design Requirement Equipment Operational Performance & Reliability24Improved 24 Experience and Lessons – Cultivation of Local Suppliers Upgrading——Joint R&D Teams • By over 30 R&D subjects and based on AP1000, research and innovate • Several Breakthroughs and achievements, support CAP1400 Integrative Forged RV Head with Quickloc SG Tubesheet in Holes SG U-Tubes, 290km long, Processing, 110mm thicker over 10 verification tests Heavy Trailer Crane, Capable for 3600 Ton Long Impeller for Turbine (1828mm) DN450 Squib Valve Prototype Test CAP1400 Generator Stator, over 650 ton 25 25 Experience and Lessons – Cultivation of Local Suppliers Guidance & Support from Government Trust and Support from Owners Activeness from Suppliers Cultivation of Local Suppliers Improvement of “Soft” Capacity Market-oriented 26 26 Experience and Lessons – Dynamic Management of Supply Chain Qualified Supplier’s Management – Quantitative Assessment Index Audit Surveillance Assessment Qualification Management Once per year for important suppliers, with special surveillance when necessary Decided based on safety classification, importance, technical capacity of Equipment & materials Quality, Technology, delivery & Transportation, Schedule, Installation, Acceptance, Services, etc. Effective for 3 years, after that re-qualification was needed 27 27 Experience and Lessons – Dynamic Management of Supply Chain Communication, Complementary & Competition • Experience Exchange, regularly or any time necessary – Experience on Manufacturing technology and quality management – Joint discussion and resolution for faced problems • Keeping over 2 suppliers capable for each key equipment available – Deploy internal complementary resources to make reasonable risk control – Orderly competition among manufacturers of the same type equipment 28 28 Closing Comments • SNPTC will always work together with suppliers to provide qualified equipment for GEN III NP construction. • SNPTC warmly welcomes and sincerely hopes numbers of excellent suppliers to join our qualified suppliers system and become an important part of GEN III NP equipment supply chain. • Forward together and contribute to global GEN III NP development. 29 29