DRDL - LC17 Management Arrangements
- Site: Devonport
- IR number: 17-156
- Date: November 2017
- LC numbers: 17
Purpose of Intervention
This was a planned inspection of the supply chain management arrangements at Devonport Royal Dockyard Limited (DRDL) nuclear licensed site.
Interventions Carried Out by ONR
I carried out a planned compliance inspection against Licence Condition 17 (LC17) ‘management systems' focussing on the supply chain management arrangements. The objective of the intervention was to determine the adequacy of DRDL's supply chain management arrangements and their deployment against the regulatory expectations set out in NS-TAST-GD-077 ‘Supply Chain Management Arrangements for the Procurement of Nuclear Safety Related Items or Services' (TAG 77). I was satisfied that the objective set for this inspection has been achieved.
The intervention was performed in line with ONR’s guidance requirements (as described in our technical inspection guides) in the areas inspected.
Key Findings, Inspector's Opinions and Reasons for Judgements Made
I found that DRDL's compliance with LC17 management systems for the areas inspected was adequate. (IIS Rating Green) however I noted that there is significant improvement activity for the Naval Marine business, of which DRDL is a constituent part, relating to the supply chain which ONR will monitor through routine Level 4 meetings with the supply chain team.
My key findings are given below:
- I found that there is a comprehensive strategy in place for supply chain management for Babcock Naval Marine which is linked to the ‘Naval Marine Focus' business plan. The strategy is led by the Naval Marine Supply Chain Director who sits on the Board and who reports directly to the Managing Director (MD). The previous purchasing function is being transitioned to a supply chain management function. Governance and project management disciplines have been put in place for the transition, which although not yet complete has the support of senior management. ONR will monitor progress on this plan going forward.
- I was satisfied from the discussions and evidence presented that the supply chain management arrangements address the regulatory expectations identified in TAG 77. I did however note two opportunities for improvement relating to a clearer documentation of intelligent customer capability and more coordinated arrangements for capturing supply chain operating experience. These were accepted by DRDL and ONR will monitor how these are addressed going forward.
- I was satisfied that there are well documented arrangements for identifying suppliers and managing the interface with them which considers the nuclear safety risk, the value of the work being undertaken and the commensurate level of oversight and assurance required. The categorisation scheme for quality and suppliers considers nuclear implicated items and services.
- I was content that DRDL that DRDL have an appropriate procedural framework for controlling their supply chain and that the examples provided confirmed that they were complying with these arrangements.
Conclusion of Intervention
It is my judgement based on the discussions and supporting evidence provided that DRDL's supply chain management arrangements and their deployment are adequate (IIS Rating Green) and aligned with the regulatory expectations of TAG 77. I note the on-going rationalisation and improvement plans which will be monitored by ONR going forward. No formal actions have been raised; however a number of recommendations are made to carry the engagement forward.
The following recommendations are made:
- ONR to establish a programme of Level 4 Meetings between ONR and the DRDL supply chain team to discuss and progress relevant supply chain issues.
- DRDL to forward a copy of their improvement plan to ONR, showing dates and milestones, for discussion at the Level 4 meetings.
- DRDL to consider the following opportunities for improvement:
- Clearly document the intelligent customer function.
- Develop a common and consistent process for managing supply chain related OPEX.
- ONR to develop an intervention plan through the Level 4 meetings to test DRDL's supply chain management arrangements more extensively.