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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


  1. 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

  2. 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 overloaded • 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 overheat and become damaged.

  3. The Nuclear Fuel Cycle and Cameco‟s Businesses

  4. 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

  5. Fuel Services Division Port Hope conversion facility Blind River refinery Cameco Fuel Manufacturing

  6. Port Hope Conversion Facility ● Cameco ‟ s UF 6 conversion facility is one of only two such plants in North America, and one of only four in the western world UO 2 UF 6

  7. Conversion Facility Production UF 6 Production ● Converts UO 3 from Blind River to UF 6 for enrichment and light-water power reactor use outside Canada ● Licensed to convert 12.5 M kg of uranium into UF 6 per year, all for export ● One UF 6 cylinder provides enough fuel to power a city of 90,000 people for one year UO 2 Production ● Western world's only commercial supplier of natural uranium dioxide (UO 2 ) conversion services needed to produce fuel for CANDU nuclear reactors ● Licensed to produce 2.8 M kg of UO 2 per year and runs 24 hour/3-5 day campaigns ● Provides the uranium products used to fuel approx. 50% of all power generated in Ontario, 15% of all in Canada ● Customers in Canada, US, Korea and Japan

  8. Cameco Fuel Manufacturing Fuel Supply ● Canada – Ontario Power Generation – New Brunswick Power – Bruce Power – Hydro-Quebec ● China ● South Korea ● Romania ● Argentina

  9. 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 other company in the world ● Quality Assurance – ISO 9001:2008 – CSA Z299.1-85 – 10CFR50 Appendix B – N285.0 / ASME Section III / NQA-1

  10. CFM Manufacturing Process

  11. 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.

  12. 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.”

  13. 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

  14. Leadership Commitment Align the Organization Corporate Objectives Site Objectives Individual Objectives Key Performance Indicators

  15. Turning the Organization Upside Down Managers Supervisors & Support Operators Operators Supervisors & Support Who has to change the most? Managers

  16. 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.

  17. People Before Parts ● All senior managers read and participated in chapter by chapter review/discussion in 2010. ● Concepts revisited for 2011 objectives 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

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

  19. Manufacturing Excellence - Overview Objectives Strategies Initiatives Reduce Unplanned Understand manufacturing Downtime process constraints; baseline OEE Improve for each process area Throughput Reduce defect Establish & track downtime and levels and defect codes for each process process area variability Establish effective equipment Make the maintenance program organization Improve Deploy process improvement more effective teams Customer Confidence Strengthen Define next generation system for Quality shop floor data management Management Systems

  20. Manufacturing Excellence Overview Objectives Strategies Initiatives Implement lean toolbox and conduct lean principles training Reduce Unplanned Establish effective top-down and Downtime bottom-up communications Improve mechanisms Throughput Reduce defect levels and Build supervisor capabilities and effectiveness process variability Elevate operator, maintenance and process analyst capabilities Make the organization Improve Root Cause Analysis Improve capabilities more effective Customer Design next generation shop Confidence Strengthen scheduling protocols (pull based) Quality Management Improve tracking and communication Systems of cost drivers

  21. Manufacturing Excellence Overview Objectives Strategies Initiatives Reduce Unplanned Standardize Defect database and Downtime Improve pareto causes Throughput Reduce defect Strengthen Corrective Action levels and process; implement CIRS process variability Establish Phase 1 of electronic document management Make the Begin structuring an IMS that ties organization together CSA Z299 ,ISO 9001, Improve more effective 14001 and 18001 Customer Confidence Jointly develop and deploy a set Strengthen of supplier performance Quality measurement KPIs Management Systems

  22. Visibility = Accountability

  23. CFM PLT System – Operator Screen

  24. Establishing a Maintenance Program Major Accomplishments and Milestones Establish Load all Establish logical Identify critical equipment Establish Identify all equipment data hierarchy for asset significance organization assets into system assets information (high, medium, (MP2, now SAP) low) Added two Prior to identification: maintenance PH-517, CB-256; Total- 773 planning After walk-downs: positions PH-719, CB-657; Total- 1378 Evaluate quality Establish Establish all Establish spares of existing PM appropriate PM business processes and inventory Train and deploy procedures for instructions for for the Maintenance management assets all assets program program More than 50% missing or incomplete In Process or Complete planned

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