Transformations Underway at Cameco Doug Jensen Manager, Cobourg - - PowerPoint PPT Presentation

Transformations Underway at Cameco

Doug Jensen Manager, Cobourg Operations – Cameco Fuel Manufacturing Jean-Pierre (J.P.) Pascoli Manager, Maintenance and Reliability – Port Hope Conversion Facility

Safety Moment

No job is so important that we cannot take the time to do it safely

Wiring warnings Faulty wiring and other electrical problems cause many home fires each year - some of them resulting in death or injury. These are signs of electrical hazards:

• Flickering lights
• Hot electrical outlets
• The smell of electrical insulation burning
• Repeated tripping of a circuit breaker indicating the circuit is
• verloaded
• Loose connections such as outlets into which plugs do not fit snugly
• Defective, damaged or worn plugs, extension cords and lights.
• Extension cords running under carpets and rugs where they can
• verheat and become damaged.

The Nuclear Fuel Cycle and Cameco‟s Businesses

Cameco Vision

To be a dominant nuclear energy company producing uranium fuel and generating clean electricity

Our Values

• Safety and Environment
• People
• Integrity
• Excellence

Our Measures of Success

• A safe, healthy and rewarding

workplace

• A clean environment
• Supportive communities
• Outstanding financial performance

Fuel Services Division

Blind River refinery Port Hope conversion facility Cameco Fuel Manufacturing

Port Hope Conversion Facility

• Cameco‟s UF6 conversion facility is one of only two such plants in

North America, and one of only four in the western world UF6 UO2

Conversion Facility Production

UF6 Production

• Converts UO3 from Blind River to UF6 for enrichment and

light-water power reactor use outside Canada

• Licensed to convert 12.5 M kg of uranium into UF6 per year,

all for export

• One UF6 cylinder provides enough fuel to power a city of

90,000 people for one year

UO2 Production

• Western world's only commercial supplier of natural

uranium dioxide (UO2) conversion services needed to produce fuel for CANDU nuclear reactors

• Licensed to produce 2.8 M kg of UO2 per year and runs

24 hour/3-5 day campaigns

• Provides the uranium products used to fuel approx. 50%
• f all power generated in Ontario, 15% of all in Canada
• Customers in Canada, US, Korea and Japan

Cameco Fuel Manufacturing

Fuel Supply

• Canada

– Ontario Power Generation – New Brunswick Power – Bruce Power – Hydro-Quebec

• China
• South Korea
• Romania
• Argentina

CFM today

• CANDU Reactor Fuel

– over 1,500,000 CANDU fuel bundles produced at the Port Hope facility – current fuel supply to Bruce Power and Hydro-Quebec

• Reactor Components

– CFM manufactures more components for use within the CANDU reactor than any

• ther company in the world
• Quality Assurance

– ISO 9001:2008 – CSA Z299.1-85 – 10CFR50 Appendix B – N285.0 / ASME Section III / NQA-1

CFM Manufacturing Process

CFM Transformation to Manufacturing Excellence

• Why Change? CFM has been in operation since the 1950‟s

producing a stable product in a stable market.

• Early 2009 – CFM at a critical juncture

– Increasing stakeholder expectations  Regulators  Customers  Shareholders – Loss of focus in core operations – New management team – lots of energy; no baggage

Lean tools were the obvious choice.

CFM Manufacturing Excellence Program

• Basis is lean manufacturing – principles and tools

– Start with the customer

 Start any improvement with the customer in mind (external and internal)

– Focus on Waste elimination

 Systemically identify and eliminate waste (or non-value adding activities that the customer will not pay for) The Zen of Lean (taken from “The Lean Manager”)

– “When you first study lean, it‟s all about the tools. Which is fair enough because you‟ve got to get into the problem somehow. Then, when you‟ve studied lean for years, you realize that it‟s not about the tools, but about “management attitude.” – “… but then when you finally get it, you realize it‟s all about the tools in the end. Not the tools in themselves, but how you apply the tools to get results.”

CFM Manufacturing Excellence Program

• Not a sprint to the finish:

– Multi-faceted – Multi year

• Culture change effort
• Bias towards results

– Alignment and Communication – Problem Solving and Focused Improvement – Better data; better decisions – 5S and workplace organization – Two Key Pillars: People development AND Business Process Improvement

Leadership Commitment

Align the Organization

Corporate Objectives Site Objectives Individual Objectives

Key Performance Indicators

Turning the Organization Upside Down

Managers Supervisors & Support Operators Managers Operators

Who has to change the most?

Supervisors & Support

First who, then what…

• Focusing on the “improvement layer”

– Several changes made to ensure that leadership, focus and skill sets are appropriate for accelerating our rate of improvement

• Maintenance:

– Appointment of two full time maintenance planners – Additional temporary resources to transition data into SAP

• Operations:

– Appointment of two full time Manufacturing Excellence coordinators to help steer the change effort

• Reactor Components

– Separated resources away from dual roles and created financial accountability for each project on its own.

People Before Parts

• All senior managers read and

participated in chapter by chapter review/discussion in 2010.

• Concepts revisited for 2011
• bjectives setting
• „Book Club‟ approach repeated

with all supervisory staff in 2011.

• All Supervisors and Managers

enrolled in SME Lean Bronze Certification program for 2014

• completion. Support provided

through:

– „Book club‟ sessions – In-class training

Manufacturing Excellence has two main

• bjectives

Stabilize Throughput Improve Customer Confidence Top Level KPIs Good Bundles per day (PH) Good Tubes per day (CB) Top Level KPIs First Time Yield - Bundles (PH) First Time Yield -Tubes (CB) Internally Focused Improved cost and level of engagement Externally Focused Improved quality and process consistency

Improve Throughput Improve Customer Confidence Reduce Unplanned Downtime Reduce defect levels and process variability Make the

• rganization

more effective Strengthen Quality Management Systems

Understand manufacturing process constraints; baseline OEE for each process area Establish & track downtime and defect codes for each process area Establish effective equipment maintenance program Deploy process improvement teams Define next generation system for shop floor data management

Manufacturing Excellence - Overview

Strategies Initiatives Objectives

Improve Throughput Improve Customer Confidence Reduce Unplanned Downtime Make the

• rganization

more effective Reduce defect levels and process variability Strengthen Quality Management Systems

Implement lean toolbox and conduct lean principles training Establish effective top-down and bottom-up communications mechanisms Build supervisor capabilities and effectiveness Elevate operator, maintenance and process analyst capabilities Improve Root Cause Analysis capabilities Design next generation shop scheduling protocols (pull based) Improve tracking and communication

• f cost drivers

Manufacturing Excellence Overview

Strategies Initiatives Objectives

Improve Throughput Improve Customer Confidence Reduce Unplanned Downtime Make the

• rganization

more effective Reduce defect levels and process variability Strengthen Quality Management Systems

Standardize Defect database and pareto causes Strengthen Corrective Action process; implement CIRS Establish Phase 1 of electronic document management Begin structuring an IMS that ties together CSA Z299 ,ISO 9001, 14001 and 18001 Jointly develop and deploy a set

• f supplier performance

measurement KPIs

Manufacturing Excellence Overview

Strategies Initiatives Objectives

Visibility = Accountability

CFM PLT System – Operator Screen

Establishing a Maintenance Program

Major Accomplishments and Milestones

Establish

• rganization

Establish logical hierarchy for assets Identify all assets Added two maintenance planning positions Prior to identification: PH-517, CB-256; Total- 773 After walk-downs: PH-719, CB-657; Total- 1378 Identify critical asset information Establish equipment significance (high, medium, low) Load all equipment data into system (MP2, now SAP) Evaluate quality

• f existing PM

procedures for assets More than 50% missing or incomplete Establish all business processes for the Maintenance program Establish appropriate PM instructions for all assets Establish spares and inventory management program Train and deploy Complete In Process or planned

Workplace organization – lead by example

• Initiative kicked-off in 2010, using offices and shared spaces

– Training Courses Developed – Managers, supervisors, production support staff – Built into site objectives and each employee‟s performance

• bjectives
• Rationale: shop floor buy-in created by walking the talk
• Several lab areas were the next focus
• Selected shop floor areas chosen as focused improvement events

were undertaken – UT area in Cobourg underwent significant changes to support standardized work and waste elimination/ identification

• “Sustain” Audits of office areas continue.

Office standards and self-audit tracking sheets

Supervisor Standardized Work

• Weekly Checksheet

– Divided into Start of Shift, Daily, End of Shift and Weekly Tasks. – Form is submitted to co-ordinator / manager at week‟s end for quality check. – KPI tracked monthly for completion of forms

Bundle Manufacturing

Next Generation Technology

• Extensive automation of bundle assembly processes

– Pellet loading through final inspection

• Most significant investment in the facility in decades

Loading Kitting Weld Prep

WIP WIP WIP WIP WIP

E C W E P W Inspect Pack

FG

Current Process Weld Prep

WIP WIP

Loading ECW EPW Kitting Inspect Pack Future Process

Operations Improvement Landscape

• Highlight & contain major

issues and barriers to success

• Build consistency (people &

process)

• Begin eliminating problems
• Begin managing

performance

STABILIZE STANDARDIZE OPTIMIZE

• All operations have clear,

repeatable standardized work

• Build capability & skills
• Maintain & improve levels of

consistency

• Drive performance

improvement through effective performance management

• Continually improve process

efficiency and effectiveness

• Build flexibility (people & process)
• Develop continuous improvement

mindset

• Determine next level of

performance improvement

• Drive performance using stretch

goals & objectives

Performance Time

Operational Reliability at Port Hope Conversion Facility

Operational Reliability

• Assessment (gap analysis) in 2008
• Program started in fall 2010. Still on-going.
• Objective

– Put in place processes, people, procedures and culture to enable the Port Hope facility to 1. Enable consistent production at the designated license capacity 2. Attain greater efficiencies in order to achieve reduced unit manufacturing costs regardless of annual budgeted volume

2008 LCE Assessment Findings for Port Hope

MATERIALS MANAGEMENT PREVENTIVE / PREDICTIVE MAINTENANCE SCHEDULING & COORDINATION WORK CONTROL

PROCESSES

FACILITIES & EQUIPMENT WORK MEASUREMENT WORK PLANNING TRAINING ORGANIZATIONAL STRUCTURE SUPERVISION

EAMS

OPTIMIZATION

MANAGEMENT REPORTING BUDGETING & COST CONTROL CONFIGURATION MANAGEMENT EQUIPMENT HISTORY AUDITS RELIABILITY ENGINEERING

SUSTAINABILITY

OPERATOR CARE PROCUREMENT EQUIPMENT & PROCESS DESIGN MANAGEMENT COMMITMENT PLANT PARTNERSHIPS

PRINCIPLES

ORGANIZATIONAL BEHAVIOR MASTER PLAN OBJECTIVES & GOALS GOVERNING PRINCIPLES STATUS ASSESSMENT

CULTURE

PERFORMANCE MANAGEMENT LOSS ELIMINATION

Reactive

0.000 to 0.399

Reactive

0.000 to 0.399

Emerging

0.400 to 0.549

Emerging

0.400 to 0.549

Proactive

0.550 to 0.749

Proactive

0.550 to 0.749

Excellence

0.750 to 1.000

Excellence

0.750 to 1.000

.313

Assessment opportunity themes

• Lack of an overall plan (looking forward)
• Ineffective communication

– Silos between Operations, Maintenance, & Engineering

• Lack of clear and/or embraced work processes
• Lack of clear roles, responsibilities and accountabilities
• Lack of effective metrics/KPIs (Key Performance Indicators)
• Low employee involvement and/or engagement
• Not operating reliably (fire fighting/reactive environment)

– High operating costs due to lack of reliability – Won‟t meet future demands – Lack of regulator and public confidence

• Partner with proven specialists - LCE
• Cameco „owned‟ project –

– Employ in-house resources for majority of work – Drives ownership & accountability

• Create four main focus groups (teams)
• Supplementary special teams

– Reliability Action team (Quick Wins) – RBAM (Risk Based Asset Management – LCE SMEs) – HR/Culture change management team

• Site Steering Team

– Leadership, engagement, sponsorship, review, approval, & direction when required

• Corporate Support Team

– Removing corporate roadblocks, direction when required

Project Methodology

Key Activities for Focus Teams

• Team charters with scope
• „As-Is‟ process definition, review, and

critique

• „To-Be‟ process definition
• Performance metrics definition and

implementation

• Training development and

implementation

• Communication and Engagement

activities

• Work Identification (notifications)
• Planning of work operations and tasks
• Acquisitioning (ordering, reserving) of parts, materials,

and services

• Scheduling of work (weekly, daily)
• Staging of parts at job site
• Permitting (clearances)
• Execution of work
• Feedback and close-out

Focus Team Spotlight

• Material Master processes (new, change/delete)
• Purchasing of parts, materials, and services
• Receiving of parts and materials
• Inspection of parts
• Issuing parts and materials
• Kitting of parts
• Repair and replace processes
• Returning to inventory and/or vendor
• Obsolescence program (Inventory Reduction)

Focus Team Spotlight

• Asset (equipment) importance ranking
• Asset identification, entry and management in SAP
• Asset control strategies

– Maintenance strategy – Operating strategy

• Root-Cause analysis (RCA) of equipment failures
• PM (Preventive Maintenance) Optimisation
• Failure prevention
• Loss elimination

Focus Team Spotlight

• Operator Care Rounds (Health monitoring)
• Production loss tracking (accounting)
• Production loss action log
• 5S support

Focus Team Spotlight

RBAM Activities

Asset (Equipment)

Importance Ranking completed

EAM/CMMS asset hierarchy

review & clean-up completed

Regulatory PM Review

completed

Simplified FMEAs completed

White Paper Fair 2011

Work Management: Planning & Scheduling

• Standardized

processes and tools for planners

• Performance

indicators

• Improved efficiency
• Better work quality

Materials Management: Kitting

• Parts prepared for tradespeople
• Reduced time spent getting parts
• Reduced time spent looking for

lost parts.

• Just in time delivery

Production Loss Tracking

• Now running

in all 4 areas

• f UF6 plant.
• Large TV

screen in control room provides visibility to all who enter.

• Now part of

morning meeting.

Production Loss Tracking in Action

New monitor

Production Loss Tracking in Action

Production Area

From: 11 10 01 To: 11 10 31

Pareto Chart Results Table

Hour % 1 9.0 26% 2 9.0 26% 3 5.0 15% 4 3.0 9% 5 3.0 9% 6 2.0 6% 7 2.0 6% 8 1.0 3% 9 0.0 0% 10 0.0 0% Others 0.0 Total (all events) 34.0

UF6

Rank Equipment Number & Description Primary Cause Production Loss 402GD002 - Disperser 402JD019 - Feed Screw Conveyor 402GD014 - Disperser 402GD005 - Disperser 402JD015 - Feed Screw Conveyor 402JD017 - Disperser 402FE007 - Feed Hopper & Dust Line 403EA004 - Cold Trap

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 3 4 5 6 7 8 9 10

Downtime (hour)

• Recommended

actions developed for Top 3 issues for each process area.

8:00 11:00 14:00 17:00 Task MIN MAX Units 20:00 23:00 2:00 5:00 H2 Room VISUAL inspection of H2 room & mezzanine H2 Blowers STATUS: On Std By Maint. On Std By Maint. 301GB01 301GB02 CHECK status of switches & valve position (OPEN / CLOSED) INSPECT belt condition, unusual noise (whine or squealing) CHECK VFD for errors (fault lights, or flashing) H2 Filter STATUS: On Std By Purge Air Dry Maint. On Std By Purge Air Dry Maint. 301FD03 301FD04 301FD07 CHECK valve position (ON – online) (OFF – offline) CHECK differential pressure 0.5 8 kPa VERIFY ON line and OFF line Header. (North or South) VERIFY rupture disks - one ON-LINE, other carseal CLOSED CHECK H2 Scrub: level, KOH, N2, Flush seal pot, pH, water flow H2 Scrubber pumps STATUS: On Std By On Std By INSPECT pump 401GA22 / piping INSPECT pump 401GA17 / piping (typically on standby) CHECK Rectifier cooling water Outlet water TEMP n/a 37 C Rectifier cooling water pumps STATUS: On Std By Maint. On Std By Maint.

*

502GA03

*

502GA04 CHECK Rectifier Tank Level (502FB02) - Target 75% 45 90 % VERIFY strainers using temperature gauge 37 C CHECK MCC's for equipment modicon bypass Heat exchangers STATUS: On Std By Maint. Leaks On Std By Maint. Leaks 502EA01 502EA02 important

Operator Care Checklist Cell Room

Document #

Corrective Action / Comments

Revision #: 0

Limits first round last round first round last round first round first round last round Second Floor Cell Room last round first round last round

Process Implementation Tracker

Port Hope - Process Implementation Tracker

17-Oct-12 UF6 UO2 Power House Work Management (WM)

1

2 2 2

2

2 2 2

3

2 2 2

4

2 2 2

5

3 3 3

6

3 3 3

7

3 3 3

8

3 3 3

9

2 2 2

10

2 2 2 40% 40% 40%

Reliability Engineering (RE)

1

3 3 3

2

3 3 3

3

2 2 2

4

2 2 2

5

2 2 2

6

2 2 2

7

3 3 3

8

2 2 2

9

3 3 3 44% 44% 44% Asset Revision Daily Work Scheduling Procedure Content Review % Complete (Green Status) Asset Maintenance Strategy Development Planned Work Approval Unplanned Work Execution Work Planning Work Scheduling Loss Elimination Process Asset Enrty Process Asset Importance Ranking Asset Control Strategy Development Work Order Close Out Asset Operating Strategy % Complete (Green Status) MP Optimization Process Work Identification Process Planned Work Execution Job Plan / Task List Labour Estimating

Training has started but not all personnel have been trained on new processes OR Training not yet initiated All personnel in the area have been trained on the new processes. Processes have been implemented across the area Audit Indicates ~50% compliance to processes All personnel in the area have been trained on the new processes. Processes have been implemented across the area Audit indicates ~85% compliance to processes AND KPI's are being observed to validate the new processes All Traiing complete Audit indicates ~95% compliance to processes KPIs are in use for these processes Training plans are integrated with SOPs for future employees

Weekly KPI Dashboard

36 37 38 39 40 41

'12/Sep/02 '12/Sep/09 '12/Sep/16 '12/Sep/23 '12/Sep/30 '12/Oct/07

Performance Indicator UoM Target

'12/Sep/08 '12/Sep/15 '12/Sep/22 '12/Sep/29 '12/Oct/06 '12/Oct/13

Plant Performance UF6 OEE % 67% n/a 10% 35% 64% 61% 71% 48% UF6 Uptime % 95% 0% 53% 73% 98% 95% 99% 70% UF6 Rate % 70% 0% 19% 48% 65% 65% 72% 45% UF6 Weekly Production tU 206 31 109 198 189 220 125 UF6 Quality % 99.9% n/a 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% Operations Improvement UF6 Oper Rounds Compliance % 85% 100% 99% 100% 100% 100% 100% 100% UF6 PM Compliance % 85% n/a n/a 36% 100% 100% 50% 72% Work Management Emergency/Unplanned Work % 15% 21% 27% 23% 19% 22% 23% 23%

• Maint. Schedule Compliance

% 85% 82% 78% 89% 90% 88% 91% 86% UF6 Mech Crew % 85% 91% 78% 84% 84% 89% 91% 86% Central Mech (UO2) Crew % 85% 79% 45% 77% 84% 84% 93% 77% E&I Crew % 85% 79% 94% 97% 98% 90% 90% 91%

• Maint. PM Compliance

% 85% 82% 88% 92% 89% 87% 82% 87% UF6 Mech Crew % 85% 91% 90% 54% 50% 100% 63% 75% Central Mech (UO2) Crew % 85% 72% 95% 99% 86% 89% 75% 86% E&I Crew % 85% 58% 77% 92% 100% 100% 97% 87%

• Maint. Backlog - Total

wks 8.0 7.8 7.8 8.0 8.0 8.1 8.1 8.0 'Ready' Backlog wks 4.0 3.9 3.9 4.5 4.5 4.3 4.3 4.2 Materials Management Stock Outs # 3 3 1.0 Kitting Issues (problems reported) # 0.0

6-wk Trend 1-wk Chg 6-wk Avg

PHCF WEEKLY ROLLING DASHBOARD

As of October 17, 2012 Cal Week # / Week Beginning & Ending

Crew-specific KPI boards

Change Management

• Communication &

Engagement Updates in bi-weekly supervisory

bulletins

PIE quizzes issued Communication blitzes conducted. Several change management

assessments conducted (ADKAR)

Change management meetings

with supervisors

Communication boards refreshed

every 3 weeks

White Paper Fair

• Partnership Agreements
• UF6 Production & Maintenance partnership agreement
• UF6 Production & Tech Services partnership agreement
• Maintenance & Engineering partnership agreement

Communication Boards

Communication Boards in the field

Summary

• Major initiative for Port Hope Conversion Facility
• Employee owned – through participation
• Unsuccessful without senior management support
• Change management strategies imperative

– Establish the „why‟ – Communicate early and often  Blitzes, bulletin boards, meetings, etc. – Coaching and auditing for sustainment

• What gets measured gets managed
• Not a „project‟ but a never ending journey

– Many continuous improvement opportunities being discovered as processes are put through their paces

Questions?