Westinghouse and the AP1000 ® Westinghouse and the AP1000 ®

Westinghouse Non-Proprietary Class 3
© 2010 Westinghouse Electric Company LLC. All Rights Reserved.
Westinghouse and the AP1000 ®
Offering Great Opportunity for the Czech Republic
Aziz Dag
Vice-President,
Vice
President Marketing & Sales
Westinghouse - Europe, Middle East & Africa Region
Tim Drouin
Director, Supply Chain Management
g
– Nuclear Power Plants
Westinghouse
Ostrava Machinery Conference: 20-21 April 2011
1
Westinghouse
g
is the Only
y Company
p y Solely
y Focused on
Commercial Nuclear Technology
Nearly
y 50 percent
p
of the nuclear p
power p
plants in operation
p
worldwide,
and nearly 60 percent in the United States, are based on
Westinghouse technology
● Th
The AP1000 iis th
the ttechnology
h l
off choice
h i ffor more th
than h
half
lf off th
the new plants
l t
identified in the U.S.
● The only certified Generation III+ technology by the US Nuclear Regulatory
C
Commission
i i (NRC)
● First Generation III+ plants under construction in China and US
2
Our Business Today:
F
Four
P d t Lines
Product
Li
– Regionally
R i
ll D
Delivered
li
d
Nuclear Services
Nuclear Power Plants
Focused on operating plant
success through reliable
operation, maximized power
p and better (shorter,
(
,
output
more predictable) outages
Specializing in the technology
of new nuclear power plants
and component manufacturing
Nuclear Fuel
A single-source fuel provider
for PWR, BWR, VVER, AGR
and Magnox reactors worldwide
Nuclear Automation
Instrumentation and control
systems to enhance the
reliability of nuclear plant
y systems
y
control and safety
3
Potential Westinghouse Projects Span the Globe
4
AP1000® International Projects
China projects are under construction and on-schedule for 2013
● Four AP1000 Nuclear
Power Plants are currently
under construction
¾ 2 Units in Sanmen,
Zhejiang Province
¾ 2 Units in Haiyang,
Shandong
g Province
● First two units operational
in 2013 and 2014
First unit at Sanmen is on-schedule for 2013
5
AP1000 International Projects
The first four AP1000 U.S. units are under construction
Six AP1000 units under contract - the first nuclear plant contracts in the
U.S. in 30 years. Eight additional AP1000 units planned
14 Combined Construction
and Operating License
applications submitted to
the U.S. NRC using AP1000
Bellefonte
Tennessee Valley Authority
2 AP1000s
Harris – Progress
E
Energy
2 AP1000s
WS Lee – Duke
Energy
2 AP1000s
VC Summer –
SCE&G/Santee
Cooper
2 AP100s
Vogtle – Southern Co
2 AP1000s
South Texas Project
2 Toshiba ABWRs
Turkey
Point
FPL
2 AP1000s
Levy County
Progress Energy
2 AP1000s
6
The Pillars of the Nuclear Renaissance
AP1000 answers stakeholder needs for new-build
onom
mic
Eco
Resp
ponsib
bility
In
nheren
nt
Safety
S
y
E
Energ
y
Securitty
The Nuclear Renaissance
Reduction of risk forms the foundation of all three pillars
7
7
AP1000: Designed for Greater Certainty
Built on the pillars of the nuclear renaissance
•
•
•
•
Passive Safety utilizes natural
forces such as gravity-gravity results in
less material, maintenance and
operation costs
•
No need for operator action for at
least 72 hours
•
No need for external power or
external supplies of cooling water
Modular design drives faster,
predictable construction schedule
NRC-licensed
NRC
li
dd
design
i reduces
d
licensing risk
1,100 MWe easily supports existing
grid infrastructure
Result:
¾ Greater Levels of Safety and Quality
¾Reduced Construction Time, Greater Schedule Certainty, and Lower Costs
8
AP1000: Designed for Greater Certainty
How AP1000 Reduces Project Risk
9
AP1000: Designed for Greater Certainty
Simplification Means the Smallest Nuclear Footprint
E l ti
Evolutionary
PWR
AP1000
AP1000
*Colors represent the 4 independent safety trains
10
AP1000: A Renaissance in Plant Design
Less Equipment, Less Maintenance, and Less Risk
70% of AP1000 components are non-safety related
11
T pical Project Socio
Typical
Socio-Economic
Economic Impact
Project Construction Staffing - Including Module Fabrication
2500
Eq
q Pers
2000
1500
Unit 2
Unit 1
1000
Site Devel & Modules
500
73
67
61
55
49
43
37
31
25
19
13
7
1
0
Months
Up to 2,000 direct jobs with additional ripple-effect to economy
12
Westinghouse Non-Proprietary Class 3
© 2010 Westinghouse Electric Company LLC. All Rights Reserved.
S ppl Chain Management
Supply
Tim Drouin
13
S ppl Chain Vision / Goals
Supply
Supply Base as a partner with Westinghouse in
th AP1000 Integrated
the
I t
t d Global
Gl b l Supply
S
l Chain
Ch i network
t
k
•Safety
•Nuclear
Nuclear
•Personnel
•Quality
Quality
•Optimization of Cost & Delivery
•Lowest
Lowest landed cost
•Schedule Certainty
•Standardization
Standardization
14
© 2010 Westinghouse Electric Company LLC. All Rights Reserved.
SCM Organization Integrated
S
Supply
l Ch
Chain
i
NPP
SCM
Vice President
Demand Planning &
Business
Development
Plan
Primary Equipment
Program &
Sourcing
Auxiliary / BOP
Equipment
Program & Sourcing
Source
I&C
Programs &
Engineering
Make
Transportation &
Logistics
Deliver
15
WEC Supplier Expectations
●
●
●
●
●
●
●
●
●
●
An unwavering commitment to quality and safety
Value the prevention of errors
Own and proactively solve problems
Aggressive
gg ess e a
and
dp
predictable
ed c ab e in terms
e so
of de
delivery
ey
Able and willing to share in the risk for future business as demand grows
Utilize lessons learned for continuous improvement
Teamwork
Optimization of Cost & Delivery - Lowest landed cost
Schedule Attainment
Make local suppliers competitive
16
Supply Chain Development is Critical
Westinghouse thinks “global” but acts “local”
z
Buy Where We Build
Build™ localized
supply chain approach to projects
z
Use currentlyy available local/regional
g
suppliers consistent with the fleet build-out
schedule
z
Develop upgraded documentation
documentation, training
and skills needed in partnership with the local
regulator/government
z
Expand capabilities consistent with
market growth, both locally and across
Westinghouse global projects
This approach will be used in the Czech Republic for
European projects such as those in the United Kingdom
17
A Substantial Role for Czech Industryy
For Czech, European, and Global Projects
Westinghouse understands that Czech industry provides
a strong base for manufacturing and supplying:
¾ Precision-machined components
¾ Instrumentation and control components
¾ Nuclear island p
primary
y components
p
Westinghouse is in the process of developing a number of Czech
companies as major equipment suppliers for its global supply base.
18
Westinghouse
g
is Committed to Czech Industry
y
Building on an existing 20-year relationship
Westinghouse has a long and rich historical relationship
with Czech industry that dates to the completion of
Temelin 1 and 2:
¾ I&C Energo, a.s.
¾ ZAT a.s.
¾ SKODA JS a.s.
¾ OSC, a.s.
¾ UJV Rez, a.s.
¾ Energovyzkum
E
k
¾ Vitkovice
¾ Energoproject Praha
¾ ARIS, a.s.
¾ ABEGU, a.s.
¾ Regula, a.s.
¾ SKODA Praha
¾ AFRAS Energo s.r.o.
¾ EGV Brno
¾ VUJE Trnava
¾ Skoda Power
This experience provides an invaluable understanding of Czech
capabilities and forms the foundation for today’s potential supply base
19
Westinghouse is Committed to Czech Industry
● Construction represents a large portion of any
AP1000 project
● For over 12 months, Westinghouse has been engaged
in an extensive in-country process of evaluating
Czech constructors
g
is conducting
g extensive on-site
● Westinghouse
investigations and qualification reviews to evaluate
Czech constructors
This process is on-going
20
Typical AP1000 Cost Allocation
By type and equipment breakdown
Construction Mgmt
6%
Proj Mgmt,
Mgmt
Engineering
6%
Implicit
p
Localization
E le c tr ic a l
5%
P ip in g /V a lv e s
7%
Site Construction
41%
Equipment
43%
Transportation/Other
4%
C t Allocation
Cost
All
ti
H e a v y C o m p o n e n ts
(T G , R V , S G )
39%
M e c h a n ic a l
38%
I& C
11%
Equipment
breakdown
21
Examples of equipment required
(Qty per reactor unit)
Category
Valves
Pumps (non-RCP)
Tanks
Heat Exchangers
Safety-related
700
Non-safety
4700
0
3
1
45
42
30
Fewer Nuclear grade (Safety-related) components provides more diversity
within supply base
22
AP1000 Locali
Localization
ation Opport
Opportunities
nities
● NSSS & BOP Valves:
● Metallic Conduit
● Pumps & Compressors
● HVAC Duct
● Heat Exchangers & Condensers
● Air Handling Units, HVAC Fans
● Tanks & Accumulators
● Batteries
● Switchgear, MCCs, Panels
● Instruments
● Forgings
F i
● Modules
M d l
● NSSS Piping
● Concrete
● BOP Piping
● Rebar
● Cable
● Formwork
● Cable Tray
● Structural Steel
Most Equipment and Commodities are non-safety class
23
Potential Scenario for Temelin
Ti li
Timeline of Purchase Order Placement
fP h
O d Pl
t
24
*~2 years of development work before Major Equipment PO’s are placed
SCM Portal –
htt //
https://supply.westinghousenuclear.com
l
ti h
l
25
Supplier Identification Processes
Business Development Fuels Sourcing Customers Services
Logistics
Demand Planning
S
Supplier
li Symposiums
S
i
I t
Internet
t
Complete Supplier Evaluation Form
WEC
(Supplier Web site)
Identify component /commodity/criteria
Supplier Engineering
(G
(Global
Supplier
S
Website))
Supplier Engineering
Supplier Identification
Determine top rank
Safety Related
26
Sourcing Groups
Validation Process
Audit
Selected
Suppliers
Qualified
Supplier List
(QSL)
Sourcing Groups
Action Plan to QSL/ASL
Audit Team (Sourcing Lead,
Lead Quality,
Quality
Supplier
Engineering, Finance, Engineering, Project
Delivery)
Approved
Supplier List
(ASL)
Non-Safety
Non
Safety
S
Supply Evaluation Process
l E l ti P
ASL Indoctrination
NDA Signing / ASL
Initial “Quality” Assessment
Quote Preparation
Quote Issuance
Supplier Equipment Discussion
Quote Review / Delivery
Task Owner Process Drivers
• Gaps
• Capacity
• Sole Source
• Supplier Performance
• Localization
• FOAK
• Strategic, MOU
• Cost Reduction
ASL / Supply Development (SD)
ASL / Quality
Sourcing
Sourcing
Sourcing / SD
Sourcing, Engineering and Quality
Inputs / Outputs
‐ Website
‐ Supplier Supplier
Sympos
‐ Supplier Visits/VOC
27
ASL / SD / Supplier
‐ Supplier Register
‐ Signed NDA
‐ Sourcing Alignment ‐ Desk Top p
Audit
‐ Quality Review
‐ Audit
‐ Meetings
‐ Generic T&C
‐ Quote Q
Package
‐ Response Date
‐ Etc.
‐ Via E‐room
‐ Phone Calls
Ph
C ll
‐ VACPIC Input VACPIC I
‐ Visits
‐ VACPIC Output to Pricing
‐ Knowledge Sharing
AP1000 Q lit A
AP1000 Quality Assurance Program
P
● Westinghouse QMS meets:
Westinghouse QMS meets:
– 10CFR50 App. B (USNRC)
– NQA‐1, 1994 Edition
NQA‐1 1994 Edition
– ISO‐9001
● Referenced in AP1000 Design Referenced in AP1000 Design
Certification
g
● Basis for current Westinghouse supply globally
28
Supplier Qualification Audit Process
Select
candidate
supplier
Issue audit
plan and
scope
Supplier
response /
corrective actions
On-site audit
(using formal
checklist)
Issue
formal audit
report
On-site
verification of
corrective actions
Place
Supplier on
QSL
29
Westinghouse is Committed to Czech Industry
Westinghouse will continue to develop Czech suppliers
throughout the tender process.
Commercial, “off-the-shelf,” non-safety components provide
large opportunity for localization of AP1000 scope:
¾ More non
non-safety
safety class equipment inherent in the design
¾ Construction commodities
¾ All will be investigated later in the process as tender release
approaches and sub contractor scopes are identified
Potential commodity and non-safety commercial equipment suppliers
will be evaluated consistent with the timescale of the tender
30
Summary
● Westinghouse projects are on-going
on going and on-schedule
on schedule in
China and the United States
● AP1000
AP1000’s
s reduction of risk directly supports the three
pillars of the nuclear renaissance
● AP1000’s simplified
p
design
g means less safety-related
y
equipment and greater ability to localize content
● Westinghouse has a successful 20-year history in Czech
Republic
● Strong engagement and extensive work ongoing in Czech
R
Republic
bli with
ith major
j equipment
i
t suppliers
li
and
d constructors
t
t
31
First AP1000 in the World:
Thank
Th k you!!
On Schedule for 2013.
32