Cameco Corporation

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
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.
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
UO2
UF6
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%
of 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
other 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
Operators
Supervisors
& Support
Who has to change the most?
Managers
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
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
Manufacturing Excellence has two main
objectives
Stabilize
Throughput
Improve
Customer
Confidence
Internally Focused
Improved cost
and level of
engagement
Externally Focused
Improved quality
and process
consistency
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)
Manufacturing Excellence - Overview
Objectives
Improve
Throughput
Improve
Customer
Confidence
Strategies
Reduce
Unplanned
Downtime
Reduce defect
levels and
process
variability
Make the
organization
more effective
Strengthen
Quality
Management
Systems
Initiatives
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
Objectives
Improve
Throughput
Improve
Customer
Confidence
Strategies
Reduce
Unplanned
Downtime
Reduce defect
levels and
process
variability
Make the
organization
more effective
Strengthen
Quality
Management
Systems
Initiatives
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
of cost drivers
Manufacturing Excellence Overview
Objectives
Improve
Throughput
Improve
Customer
Confidence
Strategies
Reduce
Unplanned
Downtime
Reduce defect
levels and
process
variability
Make the
organization
more effective
Strengthen
Quality
Management
Systems
Initiatives
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
of supplier performance
measurement KPIs
Visibility = Accountability
CFM PLT System – Operator Screen
Establishing a Maintenance Program
Major Accomplishments and Milestones
Establish
organization
Added two
maintenance
planning
positions
Evaluate quality
of existing PM
procedures for
assets
Establish logical
hierarchy for
assets
Identify critical
asset
information
Identify all
assets
Establish
equipment
significance
(high, medium,
low)
Prior to identification:
PH-517, CB-256; Total- 773
After walk-downs:
PH-719, CB-657; Total- 1378
Establish
appropriate PM
instructions for
all assets
Establish all
business processes
for the Maintenance
program
Establish spares
and inventory
management
program
More than 50%
missing or
incomplete
Complete
In Process or
planned
Train and deploy
Load all
equipment data
into system
(MP2, now SAP)
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
objectives
● 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
Pack
Inspect
FG
EPW
WIP
ECW
WIP
WIP
WIP
Current
Process
Loading
WIP
Kitting
Weld Prep
Future
Process
Weld Prep
Pack
Inspect
WIP
EPW
ECW
Loading
Kitting
WIP
Performance
Operations Improvement Landscape
OPTIMIZE
STANDARDIZE
STABILIZE
Time
• Highlight & contain major
issues and barriers to
success
• All operations have clear,
repeatable standardized
work
• Continually improve process
efficiency and effectiveness
• Build consistency (people &
process)
• Build capability & skills
• Develop continuous improvement
mindset
• Begin eliminating problems
• Begin managing
performance
• Maintain & improve levels of
consistency
• Drive performance
improvement through
effective performance
management
• Build flexibility (people & process)
• Determine next level of
performance improvement
• Drive performance using stretch
goals & objectives
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
SUSTAINABILITY
RELIABILITY ENGINEERING
EQUIPMENT
HISTORY
AUDITS
CONFIGURATION
MANAGEMENT
BUDGETING & COST
CONTROL
MANAGEMENT
REPORTING
OPTIMIZATION
EAMS
SUPERVISION
ORGANIZATIONAL
STRUCTURE
TRAINING
WORK PLANNING WORK MEASUREMENT LOSS ELIMINATION
FACILITIES &
EQUIPMENT
PROCESSES
WORK CONTROL
SCHEDULING &
COORDINATION
OPERATOR CARE
EQUIPMENT & PROCESS
DESIGN
PREVENTIVE /
PREDICTIVE
MAINTENANCE
PROCUREMENT
MATERIALS
MANAGEMENT
CULTURE
STATUS ASSESSMENT
GOVERNING PRINCIPLES
OBJECTIVES & GOALS
MASTER PLAN
ORGANIZATIONAL
BEHAVIOR
PERFORMANCE
MANAGEMENT
PRINCIPLES
PLANT PARTNERSHIPS
Reactive
0.000 to 0.399
MANAGEMENT COMMITMENT
.313
Emerging
0.400 to 0.549
Proactive
0.550 to 0.749
Excellence
0.750 to 1.000
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
Project Methodology
● 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
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
Focus Team Spotlight
● 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
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
of 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
●Recommended
actions developed
for Top 3 issues
for each process
area.
From: 11 10 01
UF6
To: 11 10 31
Pareto Chart
10
Downtime (hour)
Production
Loss Tracking
in Action
Production Area
100%
9
90%
8
80%
7
70%
6
60%
5
50%
4
40%
3
30%
2
20%
1
10%
0
0%
Results Table
Rank Equipment Number & Description
1
2
3
4
5
6
7
8
9
10
Primary Cause
402GD002 - Disperser
402JD019 - Feed Screw Conveyor
402GD014 - Disperser
402GD005 - Disperser
402JD015 - Feed Screw Conveyor
402JD017 - Disperser
402FE007 - Feed Hopper & Dust Line
403EA004 - Cold Trap
Others
Total (all events)
Production Loss
Hour
%
9.0
26%
9.0
26%
5.0
15%
3.0
9%
3.0
9%
2.0
6%
2.0
6%
1.0
3%
0.0
0%
0.0
0%
0.0
34.0
26%
53%
68%
76%
85%
91%
97%
100%
100%
100%
important
Operator Care Checklist
Cell Room
Document #
Revision #: 0
Limits
Task
MIN
MAX
Units
On
Std By
Maint.
On
Std By
Purge
0.5
8
kPa
On
Std By
CHECK Rectifier cooling water Outlet water TEMP
n/a
37
C
Rectifier cooling water pumps STATUS:
On
Std By
Maint.
45
90
%
37
C
Std By
Maint.
8:00
11:00
14:00
17:00
20:00
23:00
2:00
5:00
Corrective Action / Comments
H2 Room
301GB02
Std By
Maint.
last round
301GB01
On
Air Dry Maint.
On
Std By
Purge
Air Dry Maint.
On
Std By
On
Std By
Maint.
last round
H2 Blowers STATUS:
first round
VISUAL inspection of H2 room & mezzanine
On
Std By
Maint.
Leaks
CHECK status of switches & valve position (OPEN / CLOSED)
INSPECT belt condition, unusual noise (whine or squealing)
301FD04
301FD07
CHECK valve position (ON – online) (OFF – offline)
CHECK differential pressure
VERIFY ON line and OFF line Header. (North or South)
VERIFY rupture disks - one ON-LINE, other carseal CLOSED
INSPECT pump 401GA17 / piping (typically on standby)
last round
INSPECT pump 401GA22 / piping
first round
CHECK H2 Scrub: level, KOH, N2, Flush seal pot, pH, water flow
H2 Scrubber pumps STATUS:
*
502GA03
*
502GA04
CHECK Rectifier Tank Level (502FB02) - Target 75%
VERIFY strainers using temperature gauge
first round
Second Floor Cell Room
502EA01
502EA02
*
VERIFY that HF & N2 line purging is NOT OPEN at same time
CHECK HF purge meters & HF piping joints
On
Leaks
last round
Heat exchangers STATUS:
first round
CHECK MCC's for equipment modicon bypass
last round
301FD03
first round
CHECK VFD for errors (fault lights, or flashing)
H2 Filter STATUS:
Process Implementation Tracker
Port Hope - Process Implementation Tracker
17-Oct-12
UF6
UO2
Power
House
Work Management (WM)
1
Work Identification Process
2
2
2
2
Planned Work Approval
2
2
2
3
Unplanned Work Execution
2
2
2
4
Planned Work Execution
2
2
2
5
Work Planning
3
3
3
6
Work Scheduling
3
3
3
7
Daily Work Scheduling
3
3
8
Labour Estimating
3
3
9
Job Plan / Task List
2
2
10
Work Order Close Out
2
2
40%
40%
Asset Enrty Process
3
3
2
Asset Importance Ranking
3
3
3
Asset Control Strategy Development
2
2
4
Asset Maintenance Strategy Development
2
2
5
Asset Operating Strategy
2
2
6
Loss Elimination Process
2
2
7
MP Optimization Process
3
3
8
Procedure Content Review
2
2
2
9
Asset Revision
3
3
3
44%
44%
44%
% Complete (Green Status)
3
Training has started but not all personnel have been trained on new
3 OR Training not yet initiated
processes
2
2 in the area have been trained on the new processes.
All personnel
Processes
have been implemented across the area
40%
Audit Indicates ~50% compliance to processes
Reliability Engineering (RE)
1
% Complete (Green Status)
3
All personnel in the area have been trained on the new processes.
3 have been implemented across the area
Processes
Audit indicates
~85% compliance to processes
2
AND KPI's are being observed to validate the new processes
2
All Traiing2complete
Audit indicates ~95% compliance to processes
2
KPIs are in use for these processes
Training plans
3 are integrated with SOPs for future employees
Weekly KPI Dashboard
PHCF WEEKLY ROLLING DASHBOARD
As of October 17, 2012
Cal Week # / Week Beginning & Ending
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
1-wk
Chg
6-wk
Avg
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%
UF6 Uptime
%
95%
UF6 Rate
%
70%
UF6 Weekly Production tU
206
UF6 Quality
% 99.9%
Operations Improvement
UF6 Oper Rounds Compliance
%
85%
UF6 PM Compliance
%
85%
Work Management
Emergency/Unplanned Work
%
15%
Maint. Schedule Compliance
%
85%
UF6 Mech Crew %
85%
Central Mech (UO2) Crew %
85%
E&I Crew %
85%
Maint. PM Compliance
%
85%
UF6 Mech Crew %
85%
Central Mech (UO2) Crew %
85%
E&I Crew %
85%
Maint. Backlog - Total
wks
8.0
'Ready' Backlog wks
4.0
Materials Management
Stock Outs
#
0
Kitting Issues (problems reported)
#
0
n/a
0%
0%
0
n/a
10%
53%
19%
31
99.9%
35%
73%
48%
109
99.9%
64%
98%
65%
198
99.9%
61%
95%
65%
189
99.9%
71%
99%
72%
220
99.9%
48%
70%
45%
125
99.9%
100%
n/a
99%
n/a
100%
36%
100%
100%
100%
100%
100%
50%
100%
72%
21%
82%
91%
79%
79%
82%
91%
72%
58%
7.8
3.9
27%
78%
78%
45%
94%
88%
90%
95%
77%
7.8
3.9
23%
89%
84%
77%
97%
92%
54%
99%
92%
8.0
4.5
19%
90%
84%
84%
98%
89%
50%
86%
100%
8.0
4.5
22%
88%
89%
84%
90%
87%
100%
89%
100%
8.1
4.3
23%
91%
91%
93%
90%
82%
63%
75%
97%
8.1
4.3
23%
86%
86%
77%
91%
87%
75%
86%
87%
8.0
4.2
0
0
0
0
3
0
0
0
0
0
3
0
1.0
0.0
6-wk
Trend
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?