Site or Business area

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Site or Business area
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"Production Operations, the Organisation and its
Supply Chain Requirements"
Date 2nd December 2008
Production Operations
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Vision for the Sellafield Site

• The SLC and its people will achieve the NDA
  mission through safe, sustainable, world class
  performance and effective partnering with
  stakeholders to become the site and workforce of
  choice for potential new missions

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Production Operations Vision

• Within Production Operations we will operate all
  our facilities aspiring to achieve admiration and
  respect, as in alignment with the Sellafield site
  Standards and Expectations.
• The Production Operations forward direction
  directly supports the Sellafield vision by
  embracing the concepts of operational excellence
  and acceleration in order to make sustained
  towards successfully meeting and exceeding
  directorate plans.

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Production Operations Plants
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Production Operations

• The Production Operations Directorate plays a key
  role within the totality of activities undertaken
  within the Sellafield Site and have
  responsibility for
• Magnox Reprocessing Operations (Magnox)
• High Level Waste Plants (HLWP)
• Site Effluent and Encapsulation Plants (EEP)
• Low Level Waste and Plutonium Contaminated waste
  compaction facilities (Waste Plants)
• Engineering (Asset Management Projects,
  Engineering approach, Outages)

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Production Operations Scale of Portfolio

• The total Lifetime plan value for Production
  Operations is approx 13bn across all areas

• The Annual Baseline Plan value for Production
  Operations for 2008/09 is approx 324m across

• Currently approx 35 of that funding is targeted
  at the supply chain

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Broad Brush Breakdown of 2008/09 Budget into
Types of Spend
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Key Acquisition Strategies
Key acquisition strategies In support of the
135m spend for Production Operations include
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Procurement Planning

• Production Operations converts the acquisition
  strategies into a Procurement Plan
• Items captured by the Procurement Plan Include
• Sole Source and IT Procurements over 25k
• One off procurements over 90k
• Re-competition of existing and additions to
  Framework Agreement capability

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Procurement Planning
The total value of the Production Operations
Procurement Plan is approx. 140m

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Procurement Planning
The 2009/10 Procurement Plan for Production
Operations is approx 54m
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Top Procurements for Prod Ops and CRO

• Top Procurements by value in plan
• 1. Store Breakdown Facility 25.4M Jun 09
• 2. Defuelling Replacement Machine (Calder)
  11.6M Sep 09
• 3. Crane Replacement (Calder) 5.3M Sep 09
• 4. AGRIS Plant Mods (Thorp) 3M Nov 09
• 5. HAST POCO 1.5M May 09
• 6. VPS MGG 1.3M Apr 09
• Procurement out now or very soon
• 1. Task Delivery Framework
• 2. Control System Framework
• 3. 3m Boxes

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Top Procurements for Prod Ops and CRO

• Two of our major framework contracts are also due
  to be re-competed within the coming financial
  years
• MDDH First 1 of contract approved by NDA
  taking end of contract to Nov 09, possibility of
  another 1 to Nov 10. However, SL will start the
  re-competition process in FY 09/10.
• MDSW Possibility of 1 to extend to Apr 10,
  then another 1 to Apr 11. The competition
  process would start in 10/11.
• Although these contracts are site wide,
  Production Operations will have a major input in
  to their scope and specification.

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Key Focus for Production Operations moving forward

• Specifically support delivery of the project and
  asset care portfolio by Develop Strategic Supply
  Chain arrangements that
• Provide alignment of Production Operations
  Directorate requirements with supply chain
  capability
• Create opportunity for longer term relationships
  to drive improvement and cost / schedule
  reduction
• Deliver focus on NDA / Sellafield Ltd and
  Production Operations Directorate priorities
• Encourage early supplier engagement
• Offer flexibility in terms of approach to
  delivery

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Key Contacts

• Elaine Simpson - Commercial Manager Production
  Operations Tel [phone]
• Darren Humes - Assistant Commercial Manager
  Tel 019467