closing the feedback loop, in the end it is a people thing!

Paul de JongManaging Director Urenco Nederland B.V.May 30, 2006

Closing the feedback loop,Closing the feedback loop,

in the end it is a in the end it is a people thing!people thing!

2Paul de Jong / OECD Conference Cologne - May 30, 2006

Content

• Structure operations Urenco

• Stakeholders

• Urenco management system

• Closing the feedback loop

• Cultural aspects


The Urenco Role

“The establishment of joint industrial enterprises to build plants for the enrichment of uranium by the gas centrifuge process,

to operate such plants and exploit that process on a commercial basis”


Company Structure

UEC ETC

Urenco Capenhurst LtdUrenco Nederland BV

Urenco Deutschland GmbH

NEF New MexicoAlmelo NLCapenhurst UK

Jülich D

Urenco’s operations is organised around two distinct business activities:

UEC: Enrichment of uraniumowns the enrichment plants and the nuclear licences to operate and provides enrichment services to its customer

ETC: Supply of technologyis the owner of the centrifuge technology and sells and constructs centrifuge enrichment plants for its customers

URENCO PROPRIETARY


The Urenco stakeholders

It starts with stakeholders, needs and expectations!

• Urenco is in a long term nuclear business which has to be reflected in the operational performance

• We have to keep all direct and indirect Urenco stakeholders (long term) satisfied

the society

the customersthe employees

the shareholders

the regulator


Principles Management System

PLANPLAN

ACTACT DODO

CHECKCHECK

Therefore we continuously have to improve,

we use the PLAN – DO – CHECK – ACT approach!


Management System: Plan phase (1)

Requirements stakeholders

What do we want to achieve?

Risk management

Imp

rove

me

nts

fr

om

ch

eck

an

d a

ct

ph

ase

Do

Risk control reduction

Business planLong-term operational plans

− Technical − Personnel− Quality− Safety− Environment− Security− Safeguards

Vision, mission and valuesStrategy and policy


Urenco’s Vision & Mission

Vision:

• We believe the Future needs nuclear power to meet the demand for sustainable global energy

Mission:

• Enriching the Future is our commitment, through the global deployment of our nuclear products, services and technology to support sustainable nuclear energy


Urenco’s Values

Safety

- We will operate to the highest standards of safety, environmental and security requirements

Integrity

- We will conduct all our relationships with honesty, fairness and respect

Flexibility

- We will be responsive to the market to best meet our customers’ needs through the flexible deployment of our skills

Development

- We are committed to the sustainable growth of our business through the continuous development of our employees, services and products

Profitability

- We are committed to making profits to secure our future and reward our shareholders and employees


Management System: Plan phase (2)

Requirements stakeholders

What do we want to achieve?

Risk management

Imp

rove

me

nts

fr

om

ch

eck

an

d a

ct

ph

ase

Do

Risk control mitigation

Business plan TargetsLong-term operational plans

− Technical − Personnel− Quality− Safety− Environment− Security− Safeguards

Vision, mission and valuesStrategy and policy


Risk Assessment

Consequence

Area

Insignificant

(1)

Minor

(2)

Moderate

(3)

Major

(4)

Catastrophic

(5)

Financial impact € 0 – 10k p.a. € 10k – 500k p.a. € 500k – 10M p.a. € 10M - € 100M p.a. > € 100M p.a.

On time delivery 1 to 3 deliveries per year which require the delivery

schedule with the fabricator to be adjusted,

no impact on the customer

1 to 3 deliveries per year where product is not

available on due date, but available for transport within 3 to 5 days, no

impact on the customer

Missing 1 to 3 product deliveries to the customer per year, which can be rectified

within 2 weeks

Missing up to 5 product deliveries to the customer per

year, which can not be rectified within 2 weeks

Missing 6 or more product deliveries to the customer per

year, which can not be rectified within 4 weeks

Quality Process outage without damage

Process error corrected before delivery

Single minor delivery requirements are not met

Single major delivery requirements are not met

Repeatedly major delivery requirements are not met

Health and Safety People are frightened.

No casualties

Accidents without permanent injury

Accident with lasting effects Death whilst company business

Multiple deaths whilst company business

Environment Contamination immediately contained

On-site environmental contamination contained after prolonged effort

On-site environmental contamination contained with outside assistants

Off-site environmental contamination contained with outside assistants

Off-site environmental contamination with detrimental effects

Security and

Safeguards

Minor infringement of arrangements

Correctable errors Unreliable systems Legal or regulatory non compliance

Major breach of safeguards and security treaty

Reputation Letters to local/industry press

Series of articles in local/industry press

Extended negative local/industry media coverage

Short term (inter)national negative media coverage

Extensive negative (inter)national media coverage

Effort An event, the impact of which can be absorbed through normal activity

An event, the consequences of which can be absorbed but management effort is required to minimize the impact

A significant event which can be managed under normal circumstances

A critical event which with proper management can be endured

A disaster with potential to lead to collapse of the business


•Likelihood

•Likely • Almost certain

Consolidation net risk matrixes

•Likelihood

•Likely•Possible•Unlikely•Rare

• In

sig

nif

ica n

t• M

ino

r• M

od

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ajo

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ic

• Almost certain

49 13

13

7

2

115

10 14

128 6

4

9

1

3

13

7

2

11

5

10

14

12

8

6

KeyCritical

Important

Moderate

Low

xx

xx

Gross risk

Net risk

1515

• Im

pact

UD UCL UNL

•Likelihood


• In

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KeyCritical

Important

Moderate

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xx

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Gross risk

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KeyCritical

Important

Moderate

Low

xx

xx

Gross risk

Net risk

1515

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pact

•Possible•Unlikely•Rare

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KeyCritical

Important

Moderate

Low

xx

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Gross risk

Net risk

1515

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Marlow

•Likelihood


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KeyCritical

Important

Moderate

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xx

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Gross risk

Net risk

1515

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pact

•Likelihood

•Likely•Possible•Unlikely •Almost certain

Logistics

•Likelihood

•Likely•Possible•Unlikely •Almost certain

Material Handling

•Rare

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Enrichment

Consolidated risk matrix


Management System: Do phase

From plan phase

Check

Execute according to plans

How are we going to achieve that? Deliver within specification according to planningSecure (nuclear) licence & law

Annual (short term) plans− Agreed delivery planning− Budget − Quality− Safety− Environment

Imp

rove

me

nts

fro

m c

hec

k a

nd

act

ph

ase


Yearly planning of the MT diary


Management System: Check phase (1)

Measure and Monitor

Analyse data and correctnon-conformances

Risks determination & evaluation

Execute audits & inspections

Management Review

Act

Imp

rove

me

nts

fro

m c

hec

k a

nd

act

ph

aseMonitor by plant-walk around

Internal ReportsManagement reportsContinual improvement planQuality reportSafety reportEnvironmental reportReview report law & regulations

External ReportsVROM/KFD operational reportVROM discharge air/waterSafeguards Euratom/IAEA


Management System: Check phase (2)

Measure and Monitor

Analyse data and correctnon conformances

Risks determination & evaluation

Execute audits & inspections

Management Review

Act

Imp

rove

me

nts

fro

m c

hec

k a

nd

act

ph

ase

Stakeholder satisfaction Mission, vision and values Strategy and policy Audits and inspections Licences, law and regulations Continual improvement Effectiveness of Management System

Risk areas: Operational Safety & Environment Security

Customers Internal audits and KEMA audits KFD, Safeguards and local inspections Accountants and tax authorities


Management System: Act phase

Take and follow up corrective and preventive measures

Improve continuously

Registers Unwanted events Audits, inspections & exercises Safety

Continual improvement plan

From check phase

Imp

rove

me

nts

fr

om

ch

eck

an

d a

ct

ph

ase


Unwanted Events Register


Continual improvement plans

Central Local


Closing the feedback loop

Functional specification

Plant Operations

Plantdesign

Plantconstruction

Plantcommissioning

Maintenancemaster plan

Maintain and modify

PLANPLAN

ACTACT DODO

CHECKCHECK

Long-termtechnical

plan

Analyse plant behaviour


Satisfy stakeholders: What does it really mean?

• Short and long term security of supply

• We always need to deliver the customer the agreed product within specification according to planning

• Against competitive production costs

• Under the highest possible security and safety standards with respect to people (neighbours and employees) and environment


Cultural aspects

• Of course we need to have quality manuals, continuous improvement plans, ISO-certificates, etc.

• But for reaching the highest possible standards it is my conviction that it is necessary to set the right culture and to have a high level of employee training & motivation


Setting the right culture: HR-policy

• We are continuously increasing the training level of our employees

• Example shift personnel: we hire up to BSc-level, we continuously train them in-house and we certify them

• We do our bests to continuously keep them fit for their jobs- understanding - awareness - ownership - enthusiasm

• With our remuneration policy we reward our employess for their performance


Housekeeping:the first step to safety and quality!

• Have a vision how to organise the site infrastructure• Keep the site infrastructure and buildings clean • Encourage the employees to organise their workplace

- what do you really need at your workplace?- give equipment, tools and materials a place of their own- keep workplaces clean- standardise for the site- maintain the standard reached

• Show your people the benefits this takes time• Be around by management walk around!

We may not be at

the top yet …..

but looking down we are closer to the top then to

the valley!

Questions?

closing the feedback loop, in the end it is a people thing!

Documents

enrichment services

long term nuclear business

plan phase

risk management improvements

enrichment of uranium

nuclear products

nuclear licences

future needs nuclear