Auditing the supply chain

Our supplier audit procedures are in place to ensure that legal, regulatory and contractual requirements are met and to confirm that the supplier has the required abilities to produce products or services it is contracted to. 

Auditing is one of the methods that are used to ensure suppliers’ capability to deliver high-quality products that meet the requirements. Fennovoima’s audits cover all the safety significant suppliers of the Hanhikivi 1 project supply chain. Fennovoima conducted 41 audits of its own and the plant suppliers’ supply chain in 2016. 

The plant supplier performs its own audits of its sub-suppliers within the whole supply chain of the Hanhikivi 1 project. In addition to Fennovoima and the plant supplier, in different phases of the Hanhikivi 1 project, audits and inspections can be conducted by sub-suppliers, third parties or the Finnish Nuclear and Radiation Authority (STUK), if any audit is regarded necessary within the scope of work. STUK always has the authority to participate in these audits according to its own decision. Requirements to perform audits and assessments are referred to in the YVL guides.

Methods for auditing include:

  • Interviewing auditee personnel
  • Assessing documentation
  • Assessing records
  • Observing activities and processes
  • Observing physical conditions

Sometimes non-conformities, which mean ways of action and procedures that do not meet the set demands and standards, are perceived in inspections and audits. In such cases, Fennovoima can refer to the legal and regulatory requirements, and to the contractual terms and conditions to point out the non-conformities in order to demand corrective actions.

In non-conformity situations, the subcontractors must be able to prove that corrections and corrective actions have been addressed on the agreed schedule before the operation can acceptably continue. If corrective actions for a critical non-conformity are not performed effectively, the supplier related to the project is to be suspended and it may result in withdrawal of the supplier approval.

Audits cover the safety significant suppliers

Fennovoima’s audits cover the whole supply chain of the safety significant suppliers according to graded approach. During 2016, the main focus of the implemented audits was on the management system, safety culture and it security. Most of the remarks identified in the supplier audits were related to the flow of information. Specific safety culture audits of the supply chain were started in 2016.

Fennovoima also audited the EHS and OHS management systems of the plant supplier RAOS Project and its main contractor Titan-2. In addition, we participated as an observer in all audits that were conducted by the plant supplier.

New focus areas in 2017

During 2017, we will focus on clarifying the EPC agreement requirements and YVL Nuclear Safety Guides to the suppliers. Also, our self-assessment method will be further developed.

As the manufacturing of components critical for nuclear safety will begin in 2017, this will impact the scope of audits. Based on the non-conformity analysis of previous audits, more emphasis will be given to nuclear safety culture, requirements management, configuration management and the design review process in future audits.

As a new procedure, compliance audits will be implemented into the audit processes to monitor the implementation level and the compliance with the Compliance and Ethics Program within our own organization and the supply chain.