To evaluate the adequate deployment of Rolls-Royce Civil Nuclear UK [RRCN UK] arrangements to manage their supply chain when considering relevant good practice, including 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 carried out this inspection to determine the adequacy of RRCN UK supply chain management arrangements, and how these were aligned with relevant good practice including the expectations set out in TAG 77. The scope of the inspection covered a programme of work related to the RRCN UK’s supply of 42 Shell and Tube Heat Exchangers [HX] for the Balance of Nuclear Island [BNI] at Hinkley Point C. [RR Contract Number UK 6351]
I am satisfied that the principal objectives set for this inspection have been achieved.
The intervention was performed in line with ONR's guidance requirements (as described in our technical inspection guides) in the areas inspected.
No safety system inspection was undertaken. Hence this is not applicable.
Overall, based on the presentations, observations, sample of evidence provided and discussions over the course of the intervention, I was satisfied that RRCN UK were adequately deploying their supply chain management arrangements. However, it should be recognised the inspection was carried out in the relatively early stages in the programme of work. ONR may consider a follow up inspection at a mutually agreed date with RRCN UK to further test the implementation of the arrangements. A number of minor shortfalls were identified and communicated to RRCN UK who agreed to provide a formal response. A level 4 regulatory issue will be raised to track progress through to closure.
RRCN UK have developed a strategy for delivery of the Heat Exchangers [HX] which includes the supply make/buy options, supply chain requirements, capability, qualification and supply chain mapping. The document is supported by technical specifications, Project Management Plan, Contract Quality Assurance Plan [CQAP], Follow up Documents [FUD’s] such as inspection and test plans, and a list of required documents.
There was a good level of collaborative engagements, governance and flow down of customer [NNB GenCo] requirements between RRCN UK and their sub tier suppliers; demonstrated by the examples provided by RRCN UK during the inspection for procurement specifications and follow up documents such as inspection and test plans, OPEX learning, nuclear safety culture and Counterfeit, Fraudulent, and Suspect Items [CFSI].
RRCN UK arrangements for supply chain management, and processes for governance, planning, project control, reporting and managing change were adequately demonstrated.
I have concluded that based on the discussions and the evidence provided on the 9th and 10th January 2019 that RRCN UK had adequately deployed its supply chain management arrangements. Based on the samples provided, the company demonstrated alignment between their customer requirements and the procurement specifications RRCN UK had placed on their suppliers. These arrangements were part of RRCN UK Management System [RRMS], and were adequately incorporated into the project management and delivery processes.
It is my judgement that RRCN UK supply chain management arrangements are adequately deployed and align with relevant good practice, and regulatory expectations described in TAG 77. I have assigned an IIS rating of Green.
Minor shortfalls were identified during the intervention that RRCN UK accepted during the closing meeting. A level 4 regulatory issue will be raised in accordance with ONR internal guidance and processes to track how RRCN UK will address the minor shortfalls. See notes 1 and 2 below.