Nuclear Special Interest – Supply
Chain Quality Group
30 April 2009
David Magrath
Head of Procurement & Major Subcontracts
Date: April 2009 2
Presentation Content
Supply Chain Goals
Some Facts & Figures
Supplier Chain Quality
Management
Continuous Improvement
Progress
Date: April 2009 3
Supply Chain Goals
Best in Class Contractor Safety Record
Continuous Improvement of supply chain quality
Competitive and vibrant supply chain
Forecast accuracy and Procurement Planning
Supply chain help to drive savings, innovation and efficiency
Focus on COTS to reduce cost and inventory
Collaborative Relationships
Supply chain synergies across the NDA estate through
Date: April 2009 4
How Much We Spent and Where
Sellafield Limited spent 56.2% of annual site budget with the supply chain
Supply Chain Expenditure £m
0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Ex p e ndi tu re £m
Procurement Transactions
• Total Procurement Transactions – 50,000 per annum
• Warehouse Receipts – 20,000 per annum
• Invoices – 50,000 per annum
• Purchase Card 8% of total transactions
• Procurement Purchase Order 12% of total transactions
Date: April 2009 6
Date: April 2009 7
Quality Procedure for buying goods & services
•
Procedure reference SSP 9.02.
•
Combines the activities for the procurement of goods
& services into one place.
•
To assist the Plant Demander in complying with
necessary requirements.
•
Identifies responsibilities.
The procurement process flow map
Purpose Responsibilities Training Records Definitions Abbreviations References History Feedback Or der using Purc hase Card3 PC Holder Place Devolved Demand 4 SAP Demander Receipt Goods/Servic es 5 SAP CA SAP Receipter Process Purchase Requisition 11 Contracting Officer
Manage the Contract
12 Contracting Officer Demand Identified Route 4 - Purchase Requisition Contract Placed
Sec ure Local Approvals
2
Real Demander
Route 1 - Purc hase Card
Categorise Demand
1
Real Demander
Route 2 - Dev olved Demand
Route 3 New Inventory Managed Item
needed
Raise New SAP Material Master 6 Material Specifier Raise SAP Reservation 7 SAP Demander Issue Against Reservation 9 SAP MM (Order on Demand) Proces s Invoic e 10 Finance Officer Receipt Receipt Supplier Payment Supplier Invoice MRP Operations 8 SAP
Rais e new MM for tender only
requisition
Stocked item
Date: April 2009 9
Problem Statement
As part of the Sellafield BIP & overall continuous
Improvement the following areas were identified for further
development:
Clarity of processes
Awareness & SQEP of Process Users
Date: April 2009 10
Improvement Aims
An Acquisition process that better supports business delivery and
is:
User friendly and easily accessible
Has safety and quality fully integrated
Key user roles clearly defined with responsibilities understood
Fully trained individuals in all key roles based on a competency
matrix
Measures in place to track performance and to act as an
enabler for future process efficiency improvements
Date: April 2009 11
Project Governance
EHSQ Design Commercial Operations
Commercial Director
Workstream 1: SSP 9.02 Review
Workstream 2: Voice of the customer
Workstream 3: Communication & Training
Workstream 4: Measures
Workstream 5: Global Supply Chain Risk
Date: April 2009 12
Key Work streams
Work has been focussed on the most significant and key work streams:
– Stakeholder Analysis and Communication
– Delivery of Training modules
– Improvements in control measures for the Acquisition
processes
– Arrangements to mitigate the Global Supply Chain risk
Date: April 2009 13
Progress on Key Work Streams
Stakeholder Analysis and Communications
• Stakeholder analysis completed
• Draft Communications plan in place to be presented to Steering group for
approval in May
• Feed into the training strategy
Delivery of Training Modules
• Training strategy completed
• Endorsement planned for Q1
• Commence active engagement in training, competency and Awareness
requirements
Global Supply Chain Risk
Date: April 2009 14
Progress on Key work streams (cont..)
• Improvements in control measures for the Acquisition
processes
– Introduced new dashboard for acquisition processes
– Demander information, Transaction process data, Supplier
quality data all incorporated.
– Events & feedback information monitored (ATLAS
information)
– System piloted and now operational
– Regular review - now considering measures for the front
Date: April 2009 16
Improvement Key Milestones
Project Definition and Blue Print
Jan 2009
Steering Group Established
Jan 2009
SSP 9.02 drafted and issued for comment
Nov 2008 Project Status Review Jan 2009 SSP User Training Commence July 2009 SSP Use r Workshop Feb 2009 SSP 9.02 Training Strategy Approval May 2009 SSP 9.02 Revision Commence Sep 2009 Global supply Chain
Risk – Implementation Complete July 2009 Process Measurement Dashboard -Operational Feb 2009 SSP User Tools and Guidance available June 2009
Date: April 2009 17
Improvement Issues/Risks
•
Scale of programme and change management
requirements
•
Integration of programmes
•
The right resources to deliver improvements
Date: April 2009 18
Further Contacts
Procurement Team contact details are available @
Date: April 2009 19
